Everyone knew this would be a rough quarterly earnings report, but the question was how rough. Faced with broader economic headwinds and a slowdown in the smartphone market, Apple reported its second straight quarterly sales decline. Still, the company managed to beat Wall Street forecasts, thanks to better-than-expected iPhone revenue.
Apple itself does not issue formal guidance ahead of earnings, a move implemented and maintained since the early days of the pandemic. Apple sold $51.3 billion worth of iPhones for the second quarter, exceeding the $48.8 billion expected for the quarter. Category growth amounted to just 2% in the quarter, but it’s still considered a win.
“We are pleased to report an all-time record for Services and a record for the March quarter for iPhone despite the challenging macroeconomic environment, and our installed base of active devices hitting an all-time high,” Tim Cook said in a statement. “We continue to invest for the long term and lead with our values, including making great progress towards building carbon neutral products and supply chains by 2030.”
The smartphone market in general has stagnated and started to contract due to financial concerns and various factors limiting demand. Apple certainly hasn’t been immune to such tensions, but the company is believed to have benefited from the boast of supply chain fixes.
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