“We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030,” said CEO Tim Cook.
Updated at 4:43 pm EST
Apple Inc. (AAPL) – Get Apple Inc. Report posted stronger-than-expected second quarter earnings Wednesday as the world’s biggest tech company managed to navigate a slowdown in China demand alongside the ongoing disruption in global supply chains.
Apple earned more than $59.6 billion for the three months ending in March, the group’s fiscal second quarter, as revenues rose 8.6% from last year to $97.28 billion, comfortably topping analysts’ estimates of $93.9 billion. Apple said iPhone revenues rose 5.5% from last year to $50.57 billion, just ahead of the $48.5 billion Street forecast
Bottom line earnings were pegged at $1.52 per share, up 8.6% from the same period last year and firmly ahead of the Street consensus forecast of $1.40 per share.
Greater China revenues, Apple said, rose 3.4% from last year to $18.34 billion, while overall services revenues rose 17.3% to $19.82 billion as the company’s installed base of devices topped 1.88 billion.
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said CEO Tim Cook. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”
Apple shares were marked 2.2% in pre-market trading immediately following the earnings release to indicate a Friday opening bell price of $167.15 each.
Net sales for the Mac were up 14.7% to $10.44 billion, while wearable, home and accessories sales, which include the AppleWatch, edged 0.33% higher to $8.81 billion. Supply chain constraints pulled iPad revenues 2% lower to $7.65 billion.
Late last month, the Nikkei business newspaper reported that slowing demand, surging inflation and supply chain disruptions have combined to trigger a potential 20% cut in iPhone SE production, a level that translates to between 2 million and 3 million units next quarter.
Cuts in the low-cost 5G enabled smartphone, which was unveiled only weeks ago, will also be paired with a 10 million unit reduction in AirPod production and a trimming of units for the new iPhone 13 suite of handsets, Nikkei reported.
