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Apple successfully surpassed Wall Street analysts’ sales and earnings forecasts for the September quarter despite a tough earnings season.
September quarter revenue overcame fears that demand for the iPhone 14 series was weaker than expected.
Apple posted revenue of over $90 billion in its fiscal fourth quarter, up 8% from the same period last year.
Earnings also reached $20.7 billion, a gain of less than 1% from the same quarter in 2021.
Luca Maestri, the company’s CFO, released a statement stating:
“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop.”
Following the report, the company’s shares fell more than 1% after hours.
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Sales from the company’s products grew 9% year-over-year to nearly $ 71 billion.
The growth indicates a decline in the growth rate from the previous year, but it was already expected.
Consumers are currently struggling with high inflation and fears of a possible recession.
Meanwhile, the significant dollar value internationally still raises doubts about the company’s success in convincing users to upgrade their devices.
Apple CEO Tim Cook said the company hit an iPhone sales record in September while on an analyst call.
Apple’s services segments reported revenue of $19.2 billion, up 5% from the year-ago quarter and down year-over-year.
The Services segment includes paid subscriptions like Apple TV+ and Apple Music.
It is a powerhouse for Apple, and it will offset slow growth in areas of Apple’s hardware business.
According to Maestri, there are more than 900 million subscriptions for paid services.
In 2021, there were only 155 million paid subscriptions.
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The tech giant raised the prices of its music and TV streaming services this week to boost sales.
Investing.com analyst Jesse Cohen released a statement on the increase, saying:
“Like other major tech companies, even Apple is suffering from the negative impact of a worsening macro backdrop and ongoing supply chain woes.”
“Though, it has done a better job of navigating through the challenging environment,” Cohen added.
Apple expects revenue growth to slow year-over-year in the December quarter, according to Luca Maestri.
He cites the US dollar’s strength and continued macroeconomic weakness as factors in slowing growth.
Apple is weathering the economic downturn better than fellow tech giants