Apple’s revenue and profit edge up despite slowing economy
Apple managed to boost both its sales and profit during a summertime quarter that depressed the fortunes of most other major tech companies, but that doesn’t necessarily mean the iPhone maker will be immune to a potential recession.
Even though Apple fared reasonably well, the July-September results released Thursday signaled that the world’s most valuable company is facing some of the same economic headwinds that hammered the profits of Microsoft and the corporate parents of both Google and Facebook.
Apple’s fiscal fourth quarter revenue rose 8% from the same time last year to $90.1 billion. That was an improvement from the scant 2% uptick in revenue during its April-June quarter when supply problems caused by pandemic-related factory shutdowns dinged its sales.
The Cupertino, California, company’s profit for the most recent quarter totaled $20.72 billion, or $1.29 per share, up by less than 1% from the same time last year.
Both the revenue and earnings per share were slightly above analyst estimates. But on the downside, sales of Apple’s most popular product, the iPhone, and another big moneymaker, and the services division, were both lower than analysts had been anticipating — a sign consumers may be cutting back amid the highest inflation in 40 years.
Apple’s shares dipped 1% in extended trading after the numbers came out, deepening a downturn that has been dragging down the high-flying stock throughout most of this year. Apple’s stock has dropped almost 20% so far in 2022.
