Apple Still Thriving Even As Profit Dipped For Its 3rd Quarter

Apple’s profit slipped during the past quarter, but the world’s largest technology company is holding up better than many of its peers as the economy teeters on the edge of a recession, Michael Liedtke reported for the Associated Press (AP).

Photo Insert: iPhone sales climbed, despite inflation hovering at its highest rate in more than 40 years, a development that caused consumers to rein in their spending on a variety of discretionary items.

While grappling with manufacturing headaches and inflation pressures that have vexed a wide range of businesses, Apple saw its profit for the April-June period decline by 10% while revenue edged up 2%. Both figures were better than analysts projected.

The results announced Thursday for Apple’s fiscal third quarter weren’t a shock. That’s because Apple had already warned that its revenue would be depressed by as much as $8 billion because of supply chain problems that have been compounded by pandemic-related shutdowns in Chinese factories that make iPhones and other Apple products.

That scenario played out as expected in Apple’s fiscal third quarter. Earnings fell to $19.4 billion, or $1.20 per share, while revenue edged up to nearly $83 billion. The positive surprise helped boost Apple’s stock price by 3% in extended trading after the numbers came out.

“The quarter shows that amid all this volatility in tech, Apple remains a fortress,” said Edward Jones analyst Logan Purk.

Apple’s results were propelled by the iPhone, which posted a 3% gain in sales from the same time last year. Analysts had predicted a slight decline because of supply chain issues and the release of a new model this fall. It marked the seventh consecutive quarter that iPhone sales have risen.

The demand for iPhones underscores the appeal of a device that has helped has established Apple as the world’s most powerful tech company during the past 15 years.

The device’s sales climbed, despite inflation hovering at its highest rate in more than 40 years, a development that caused consumers to rein in their spending on a variety of discretionary items.

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