Apple earnings rise as economic gloom hits tech
Apple Inc on Thursday reported revenue and profit that topped Wall Street targets, one of the few bright spots in a tech sector battered by spending cutbacks due to inflation.
The forecast for the holiday quarter was more grim. While not providing specific numbers, Apple said revenue growth would fall below 8% in the December quarter but did not go as far as Amazon. com, whose dire holiday outlook sent its shares down 14%.
Apple shares initially dipped in after-hours trading but recovered in positive territory.
The Cupertino, California-based tech giant was saved by its oldest technology, its laptop computers, while its star, the iPhone, stumbled.
Although iPhone sales were not as strong as some analysts had targeted, they were still a record for the September quarter. Mac sales of $11.5 billion were far head of analyst estimates of $9.36 billion.
Apple's results showed some resilience in the face of a weak economy and strong U.S. dollar that has led to disastrous reports from many tech companies. Like Facebook parent Meta and Snap, Apple is seeing softness in advertising spending. Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data.
"We did better than we anticipated, in spite of the fact that foreign exchange was a significant negative for us," said Chief Financial Officer Luca Maestri.
The rising U.S. dollar has hit many companies such as Apple that generate substantial foreign revenue and are getting less cash back when they convert it. For consumers, it increases the price of new devices when bought in countries outside of the United States.
Apple's
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