Apple surpasses expectations as tech companies struggle in slow economy

theguardian.com:

Apple reported higher-than-expected profit and sales as demand for iPhones holds steady even amid inflation and the challenges of an economic slowdown.

Sales and profit for the quarter were $83bn and $1.20 a share, according to Apple, surpassing Wall Street expectations.The report is a positive sign for the company, which earlier this year lost its status as the most valuable company in the world to the oil giant Saudi Aramco. The company’s shares rose by 2.6% after hours in response to the news.

Tim Cook, Apple’s CEO, described the quarter as a reflection of the company’s “resilience and optimism” and said it managed to achieve better than expected results despite supply constraints and the effects of the company suspending sales in Russia.

There has been no slowdown in demand for iPhones, Apple’s CFO, Luca Maestri, told Reuters. Apple reported iPhone sales were $40.7bn, up about 3% from a year earlier and well ahead of the overall global smartphone market. The company’s loyal and affluent customer base has in the past allowed it to weather economic dips better than some other companies.

But the slowing economy is hurting sales of advertising, accessories and home products, Maestri said.

“Fortunately, we have a very broad portfolio, so we know we’re going to be able to navigate that,” he said.

Parts shortages will continue to limit Mac and iPad sales, Maestri said, though the impact has been easing.

“As a largely hardware company, Apple is arguably more directly exposed to supply chain issues than the other tech giants reporting earnings this week, but it also has a growing services business that is an important part of its diversification strategy, so it has flex in its model,” Tom Johnson, the global chief digital officer at