Apple reports positive results despite shortages and economic fallout
Apple on Thursday reported quarterly results that topped analysts’ projections despite supply shortages, economic fallout from the Russia-Ukraine war and a comedown from the huge sales lift that technology products and service got from pandemic restrictions.
The results for the January-March period drew a picture of a still-expanding empire generating massive profits that have yielded the firm a $2.7tn market value – the largest among US companies.
That ongoing prosperity prompted Apple to announce a 5% increase in its quarterly dividend, which has been steadily rising since the company revived the payment a decade ago. Effective 12 May, Apple’s new quarterly dividend will stand at 23 cents a share – more than doubling from 10 years ago.
Even so, Apple is facing some of the same challenges confronting many other major technology companies. After enjoying a pandemic-driven boom, it’s becoming tougher to deliver the same levels of spectacular growth that drove tech-company stock prices to record highs. The crisis continues to fade away and growth on a year-to-year basis has become harder to maintain.
Apple’s most recent quarter illustrated the high hurdles the Cupertino, California, company is now trying to clear. Revenue for the period totaled $97.3bn, yet it was only 9% higher than the same time last year. It marked the first time in the last six quarters that Apple has not produced double-digit gains in year-over-year revenue growth. But the number exceeded the average revenue estimate of $94bn among analysts surveyed by FactSet Research.
Quarterly profit came in at $25 bn, or $1.52 per share, a 6% increase from the same time last year. Analysts had predicted earnings per share of $1.42.
Apple’s stock ticked up by 1% in
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