Apple sold slightly fewer iPhones than expected, but Tim Cook says the economy isn't yet affecting sales – bucking the Big Tech bad-news trend
- Apple proved not all tech companies are created equal.
- The company beat quarterly earnings and revenue expectations, unlike Amazon, Meta, and Alphabet.
Apple sold slightly fewer iPhones than expected, but overall the company proved that not all tech companies are created equally during the current economic slowdown.
Apple beat Wall Street's expectations for earnings and revenue, unlike big tech companies Meta, Alphabet, and Amazon, which all plunged on disappointing quarterly results.
One weak spot: iPhone sales. The company reported that it sold $42.6 billion worth of iPhones for its 4th quarter, less than the $43.4 billion that Apple watchers were expecting.
However, CEO Tim Cook said demand was not to blame.
"Customer demand was strong and better than we expected would anticipate it to be," he said on Apple's quarterly earnings call.
Cook attributed the lag in iPhone sales partly to supply chain issues.
"In terms of the iPhone 14 Pro and the 14 Pro Max, it's still very early, but since the beginning, we've been constrained... and we continue to be constrained today, so we're working very hard to fulfill the demand," he said.
Apple's stronger-than-expected quarterly results may be a bright spot for investors amid an economic slowdown.
"Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," said Luca Maestri, Apple's CFO, in the company's quarterly earnings release.
Shares of Apple were up nearly 1% in recent after-hours trading.
- Budget Impact: 10 stocks that stand to gain from FM’s announcements
- Budget to boost confidence of global investors and rating agencies on the India story
- Budget 2023-24: All you need to know about FM’s announcements on personal tax
- It's Sitharaman's shortest-ever budget speech, during which PM thumped his desk 124 times
- Some of Adani Group's debt funded capex projects are discretionary, can be deferred: ICRA