Resilient iPhone demand helps Apple beat Wall Street expectations

·1-min read
A new Lockdown Mode tool will be rolled out in the autumn as part of software updates for the iPhone, iPad and Mac computers (Kirsty O’Connor/PA) (PA Wire)
A new Lockdown Mode tool will be rolled out in the autumn as part of software updates for the iPhone, iPad and Mac computers (Kirsty O’Connor/PA) (PA Wire)

Warning signs of a looming recession have done nothing to quell rampant consumer demand for the latest iPhones, the finance officer of Apple has said, after the company sailed past Wall Street expectations to post third-quarter revenues of $83 billion.

CFO Luca Maestri reassured investors that it was navigating parts shortages that had hampered sales of its iPad tablets and Mac computers, but warned sales of accessories were starting to dip, while revenue had fallen 1% in China. Apple shares grew 3.2% in after-market trading.

Hargreaves Lansdown analyst Sophie Lund-Yates said: “For all the challenges, Apple has shown remarkable resilience, with sales of $83bn leaving little room for critics, and the group’s position shouldn’t be underplayed.

“Apple’s used to having loyal customers handed to it on a platter, and while the company silver is still looking polished, there is some graft required to keep it that way.”

Meanwhile Amazon shares shot up 13% in extended trading after the firm posted results that surpassed analyst expectations, reporting revenue growth of 7.1% in the quarter to June. The company said it expected continued growth in the third quarter, thanks in part to collecting more in fees from its Prime subscription service after pushing up prices. Monthly Prime fees are set to rise by £1 to £8.99 in the UK from September, the first hike since 2014.

Amazon made a loss of $2 billion, led by a $3.9 billion write down in the value of its investment in electric car business Rivian.

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