Even the most valuable tech corporation in the world is not immune to the increasingly difficult global economic environment. Apple’s announced on Thursday that its profits for the three months ending in June were down roughly 11% from the same period a year earlier as the firm deals with the global economic slump and supply chain problems in China brought on by the nation’s zero-Covid policy. The market leader in iPhones announced sales of $83 billion, an increase of 2% from the same period in the previous year. Although it was the company’s third quarter’s biggest sales number ever, it represented a noticeable deceleration in growth from the previous quarter’s 36 percent year-over-year revenue gain.
In contrast to the generally depressing earnings season for IT businesses, Amazon and Apple’s announced positive numbers. Inflation at levels not seen in decades, increasing interest rates, and other macroeconomic challenges all weighed on the operations of Facebook parent company Meta, Alphabet, and Microsoft, which all announced poor profits for the quarter. Wall Street applauded Amazon’s earnings report, with one analyst referring to the e-commerce giant as “a port in the macro storm” since so far it seems as though it is weathering many of the challenges facing its tech counterparts.
According to Apple’s CFO Luca Maestri, the business now has more than 860 million paid subscriptions across its different services, an increase of 160 million over the previous year. Apple’s earnings come at a time when other IT firms have battled to maintain rapid growth in the face of rising prices and interest rates, worries about an impending recession, and the effects of the ongoing war in Ukraine.
Due to the present state of the economy, the firm chose not to provide revenue forecast for the upcoming quarter. Nevertheless, Maestri stated that Apple’s anticipates its year-over-year revenue growth to pick up speed in the September quarter compared to the June quarter, given the macroeconomic environment and its effects from Covid do not get worse. Additionally, he said that supply restrictions are anticipated to be less severe than they were in the June quarter.