Apple Dodges Tech Rout, Even While Warning of Holiday Slowdown
Apple Inc. delivered just enough good news in its quarterly report Thursday to avoid the fate of most tech giants this earning season, when its peers have seen valuations plunge by hundreds of billions of dollars.
Though sales of iPhones and services were softer than expected last quarter, Apple's revenue and profit both topped analysts' estimates. The company said that growth wouldn't be as strong during the current period.
Investors found enough optimism to send shares up about half a percentage point during pre-market trading in New York on Friday. Apple dropped 3.1% to close at $144.80 in New York on Thursday.
That provided a sharp contrast with Alphabet Inc., Amazon. com Inc., Meta Platforms Inc., Microsoft Corp. and others, which all delivered gloomy earnings reports in recent days, sending their shares tumbling.
Even Apple's generally positive results raised questions for investors, who are looking for signs that the long-resilient company might finally fall victim to a slowing economy. Apple's iPhone and services sales came in just shy of projections -- sparking concerns about two areas that were expected to be strong performers. And Apple's Mac computer business will decline substantially in the holiday quarter following a sales surge driven by new models, Chief Financial Officer Luca Maestri warned on a conference call.
With loyal customers still eager to snap up its pricey products, Apple has been seen as an outlier during a punishing tech slowdown. The company also released its latest iPhone earlier in the year than usual, giving the fiscal fourth quarter a greater portion of sales from Apple's flagship device. But roaring inflation and a broader slowdown in consumer spending, particularly for personal devices,
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