Apple’s earnings: The iPhone maker is weathering the economic downturn better than the tech giants

New York
CNN business

Apple beat Wall Street analysts’ expectations for sales and revenue that ended in September, despite a bruising earnings season for tech companies and concerns that demand for its newest iPhones may have been weaker than expected.

The tech giant posted sales of more than $90 billion in the fourth quarter, up 8% from the same period last year. Profits reached 20.7 billion dollars, a gain of less than 1% compared to the year-ago quarter.

“Our September quarter results continue to demonstrate our ability to execute effectively despite a challenging and volatile macroeconomic environment,” Apple CEO Luca Maestri said in a statement.

Shares of Apple ( AAPL ) fell more than 1% in after-hours trading Thursday following the report.

Apple’s product segment sales rose 9% year over year to nearly $71 trillion, a decline from the previous year’s growth rate but not unexpected. As consumers grapple with high inflation and fears of a possible recession and, outside the United States, an unusually strong dollar, there have been questions about how successful Apple would be in convincing users to upgrade their device.

On a call with analysts following the report, CEO Tim Cook said the company posted record revenue for the iPhone in the September quarter.

The company’s services segment, which includes paid subscriptions to products such as Apple TV+ and Apple Music, had $19.2 billion in sales, up nearly 5% from the year-ago quarter, down from a year-ago growth rate. The services segment is seen as an increasingly important unit for the company, designed to offset slowing growth in parts of its hardware business.

“Like other major technology companies, Apple is also suffering the negative impact of a worsening macro backdrop and ongoing supply chain issues, although it has done a better job of navigating through the difficult environment,” said analyst Jesse Cohen. statement