Apple’s Profit Is Down Nearly 11%.

Even the most valuable technology corporation in the world is not safe from the increasingly difficult conditions of the global economy.
Apple (AAPL) reported on Thursday that its profits fell by nearly 11 percent in the three months ending in June compared to the same period a year ago. This comes as the company works through an economic slowdown and supply chain disruptions in China as a result of the country’s zero-Covid policy. Apple’s quarterly report was released on Thursday.
The company that makes the iPhone reported revenue of $83 billion, representing a 2% increase compared to the same period in the previous year. Despite the fact that it was the biggest sales figure the company has ever achieved during its fiscal third quarter, it indicated a substantial slowdown in growth as compared to the previous year’s 36 percent year-over-year gain in revenue.

The company’s sales in Greater China, which was once considered to be one of the most promising markets for the business, decreased by approximately one percent during the quarter.

Despite this, Apple was able to outperform Wall Street’s forecasts for both its sales and its profits.

After the results were announced on Thursday, the stock of Apple rose nearly 4 percent in trading that took place after regular market hours.
According to the company, its installed base of active devices reached all-time highs in each product category throughout the course of the quarter. Apple’s quarterly sales from its services, which are a critical component of the company’s strategy for future growth, increased by 12 percent to $19.6 billion, which was slightly below the $19.7 billion analysts had expected to see from those sales.
During a conference call with investors and analysts on Thursday, Apple CFO Luca Maestri stated that the business now has more than 860 million paid subscriptions across all of its various services. This represents an increase of 160 million from the same time last year.

Maestri noted in a statement that accompanied the findings that “our June quarter results continued to illustrate our ability to manage our business efficiently despite the challenging operating environment.”
Apple’s results come at a time when a number of other technology companies have struggled to maintain strong growth in the face of rising inflation and interest rates, fears of an impending recession, and the fallout from the ongoing war in Ukraine. Apple’s results are particularly noteworthy because they come at a time when the tech industry as a whole has struggled to maintain strong growth.

Because of the unpredictability of the economic climate, the company did not provide any guidance regarding revenue for the current quarter.

On the other hand, according to Maestri, Apple anticipates that its year-over-year revenue growth will pick up speed in the September quarter compared to the June quarter. This, of course, is predicated on the assumption that neither the macroeconomic situation nor the impacts related to Covid will get any worse. He noted that there is an expectation that supply limitations will be less severe than they were during the quarter ending in June.

Maestri also mentioned the efforts that the company is making to make it simpler for customers to acquire the company’s products. These efforts include the global expansion of the company’s trade-in and payment installment plan programs.
In light of the current state of the economy, Apple CEO Tim Cook has stated that the company intends to “continue to hire people and invest in specific areas,” but that it will do so in a “more deliberate” manner.

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