Apple said on Thursday that amid inflationary pressure and a weakening global economy, iPhone sales and revenue from services drove quarterly results that above projections.
In the first three months of this year, the Silicon Valley giant earned a profit of $24 billion on $94.8 billion in sales.
Tim Cook, the CEO of Apple, stated in a statement on the company’s financial results, “Despite the difficult macroeconomic environment, we are pleased to report an all-time record in services and a March quarter record for iPhone.”
According to financial reports, sales of iPhones totaled $51.3 billion in the quarter, surpassing those from the same time last year.
Analysts said that this was caused, at least in part, by China’s reopening after a protracted period of restrictive trade policies that hindered economic growth.
Even though Apple’s entry into India has garnered attention, China continues to be an important market and supplier for the iPhone manufacturer.
Apple’s intricate supply chain was severely impacted by the years of Chinese government-related closures, and it is only now that things are starting to normalize.
Despite the period’s overall sales reduction, which was to be anticipated, Apple’s shares increased by nearly 1% in after-market trading.
Mac sales decreased to around $7.2 billion as global economic hardship affected the whole personal computer industry.
According to research organizations IDC and Canalys, shipments of Apple Mac computers, which are in the premium market sector, decreased by more than 40% during the quarter.
Although iPhones have historically been the backbone of Apple’s business model, the company has prioritized increasing revenue from content and services offered to users of its devices.
Contrary to predictions that demand for streaming entertainment would decline with the end of limited life due to the covid epidemic, Apple reported revenue from services at $20.91 billion.
