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Apple is Doing Better Than Other It Firms Throughout the Recession
Despite a rough earnings season for IT firms and concerns that demand for the newest iPhones would have been less than expected, Apple managed to meet Wall Street analysts’ sales and income projections for the quarter ending in September.
During its fiscal fourth quarter, the IT behemoth reported revenues of slightly over $90 billion, an increase of 8 percent year over year. Earnings hit $20.7 billion, up less than 1 percent from the same period last year.
Apple CFO Luca Maestri stated in a statement, “Our record September quarter results continue to illustrate our ability to execute effectively in spite of a tough and turbulent macroeconomic backdrop.”
Shares of Apple (AAPL) fell by more than 1 percent in Thursday after-market trade as a result of the news.
With approximately $71 billion in sales, Apple’s products division had a 9% year-over-year increase, a slower pace of growth than in the preceding year but still within reasonable expectations. Concerns were raised regarding Apple’s ability to convince customers to update their devices in the face of rising prices, economic worries, and, outside the United States, an exceptionally strong currency. Read also: Ask Amy: Ex Is Upset Over Being Left Out of Family Wedding
CEO Tim Cook announced the record-breaking quarter during a call with analysts after the report was released.
Sales in the company’s services division, which includes Apple TV+ and Apple Music subscriptions, were $19.2 billion, up roughly 5% from the year-ago quarter but down from the preceding year. The services division’s rising significance is attributed to the fact that it was established to counteract the company’s hardware division’s sluggish expansion. According to Maestri, Apple has more than 900 million paying subscribers across all of its services, an increase of 155 million from a year earlier.
Apple increased the cost of its music and television streaming services earlier this week, a move that might ultimately benefit future sales.
Analyst Jesse Cohen of Investing.com stated, “Like other large tech businesses, even Apple is suffering from the negative impact of a worsening economic backdrop and continued supply chain issues,” albeit Apple has done a better job of maneuvering through the hard climate.
Apple did not disclose revenue forecasts for the crucial Christmas quarter. However, Maestri stated that it anticipates year-over-year sales growth to slow in the December quarter compared to the September quarter, noting the strength of the US dollar and continuing macroeconomic downturn. Read more: https://unitedfact.com/cloud-expenditure-decreases/
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