Apple says it fought through a 'challenging operating environment' to keep quarterly sales on track

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Apple says it fought through a 'challenging operating environment' to keep quarterly sales on track
The Cumberland Mall Apple Store in Atlanta, Georgia is one of three Apple stores with active union drives.REUTERS/Alyssa Pointer
  • Apple said it fought through a "challenging operating environment" to keep its sales on track for the second quarter.
  • CEO Tim Cook said the company's results "speak to Apple's constant efforts to innovate."
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Apple said Thursday it fought through a "challenging operating environment" to keep sales on track in the second quarter, but that the company plans to be more "deliberate" with spending decisions, including hiring in the coming months.

The tech giant announced that it generated more revenue from iPhones, iPad, and services (like the app store) than Wall Street expected, helping its overall sales grow to nearly $83 billion, essentially in line with Wall Street's estimates.

Shares of Apple rose 3% in recent after-hours trading.

"This quarter's record results speak to Apple's constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers," said Tim Cook, Apple's CEO, said in the company's earnings release.

Despite Apple's strong quarterly results, there were some weak spots. Revenue for Mac computers was lower than expected and saw its first revenue decline since the start of the pandemic when people rushed to purchase new at-home tech gear.

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Cook said Mac computer weakness was primarily due to lockdowns in China taking out Apple's "primary source of supply" for Mac units.

In addition, the company's wearables, home, and accessories division saw sales fall to $8.08 billion from $8.78 billion a year earlier.

Sales to Asia's most populated countries signified some of the pain: Revenue in both China and Japan were lower than in the same quarter a year ago.

Cook did not explicitly say Apple is slowing hiring amid the challenging macroeconomic environment but told CNBC, "we do see inflation in our cost structure. we see it in things like logistics and wages and certain silicon components, and we're still hiring, but we're doing it on a deliberate basis."

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