Apple beats sales forecast with big bumps in iPhones and services | Tech News

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Apple’s sales rose 19% in the Americas and rose by single digits in Europe and China.

Apple Inc on Thursday reported record fiscal second-quarter sales and profits that beat Wall Street estimates as it dealt with chip shortages and consumers bought new iPhones.

Sales increased 19% in the Americas and increased by single digits in Europe and China.

Apple shares rose about 3% in after-hours trading.

The Silicon Valley-based iPhone maker, which is the world’s largest company by market capitalization, aims to maintain strong demand for the iPhone and other hardware while increasing sales of services, including music and video subscriptions.

The latest results show that he is making progress on both objectives.

Apple Chief Financial Officer Luca Maestri said in a statement “continued strong demand for our products” and record service sales.

Apple’s overall fiscal second-quarter revenue was $97.3 billion, up 8.6% from a year ago and above analysts’ average estimate of $93.89 billion. dollars, according to data from Refinitiv.

Apple had warned that less favorable exchange rates and different product launch schedules compared to previous quarters would reduce sales growth.

Quarterly worldwide phone sales revenue was $50.6 billion, up 5.5% from a year ago, and above the average estimate of $47.88 billion. Services, Apple’s second largest segment after iPhones, increased sales 17% to $19.8 billion, narrowly beating the average estimate of $19.71 billion.

Earnings were $25 billion, or $1.52 per share, and easily beat analysts’ expectations of $23.2 billion and $1.43 per share.

Apple also announced a 5% increase in its dividend to $0.23 per share and board approval to buy back another $90 billion in stock.

Investors braced for lower consumer spending on tech gadgets and services as the war in Ukraine and other factors drive up the cost of oil, food and other basic commodities.

Some consumers have also invested more money in travel and entertainment outside the home as COVID-19 outbreaks become less deadly, eating away at home technology budgets.

Remote work has also reduced the need for expensive, high-end phones and upgrades as people travel less.

But remote work has benefited other businesses.

iPad sales fell 2% to $7.65 billion and were still above analysts’ average estimate of $7.14 billion.

Mac computer revenue rose 14.7% to $10.4 billion from estimates of $9.25 billion.

Sales of wearables, home speakers and accessories rose 12% to $8.8 billion from estimates of $9.05 billion.

But new lockdowns in China and Taiwan, where many parts and iPhones are produced, could bring new supply and demand hurdles in the current quarter.

The service industry is vulnerable to antitrust sanctions in the United States, the Netherlands, South Korea, South Africa, and many other countries that question whether the company’s fees are too high.

Apple said it now has 825 million paying subscribers on its at least seven subscription plans, up 40 million from 785 million last quarter. Its growth comes as competitors such as Netflix Inc report subscriber losses.

Social unrest could also affect Apple. More than 70% of more than 100 eligible workers at an Apple store in Atlanta last week backed an election demand to become the company’s first U.S. store to unionize.

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