CALIFORNIA: Apple Inc’s results beat expectations, showing off the tech giant’s resilience in a slowing world economy thanks to better-than-expected Apple iPhone sales and significant inroads in India and other newer markets.
According to Reuters, shares of the largest United States tech company by market value rose 2 per cent after iPhone exceeded Wall Street’s expectations for revenue and profit for the April 1 quarter. The iPhone’s results contrast with disappointing figures out of big chipmakers due to the slower-than-expected rebound in China’s economic growth.
Apple executives said gross profit margins for the current quarter were expected to be better than forecast despite an expected dip in revenue as supply-chain problems have improved.
Apple said that sales for its fiscal second quarter ended on April 1 fell 2.5 per cent to 94.8 billion dollars, ahead of expectations for a 4.4 per cent decrease, according to Refinitiv data. Profit was flat at 1.52 dollars per share, compared with 1.43 dollars per share estimates.
iPhone sales were up 1.5 per cent to 51.3 billion dollars, besting expectations for a 3.3 per cent drop even as businesses and consumers tightened up spending due to rising inflation. World smartphone shipments down 13 per cent during the first 3 months of 2023, according to research firm Canalys, which said the iPhone gained market share against Android rivals.
Luca Maestri, Chief Financial Officer, said Apple’s gross margin would be between 44 per cent and 44.5 per cent, estimates of 43.7 per cent, according to Refinitiv figure. But he said Apple’s revenue will likely decline slightly. Analysts expected a 2.1 per cent increase to 84.7 billion dollars for the company’s June-end fiscal third quarter.
iPhone stock has outperformed most of Wall Street in 2023, up 28per cent year-to-date. Investors see the Apple company as a defensive play during economic uncertainty.
