Apple’s Q3 profit slips, but results exceed analysts’ projections
The Hindu
In spite of supply chain issues and inflation, Apple profit declined by 10% while revenue edged up 2%
Apple’s profit slipped during the past quarter, but the world’s largest technology company fared better than many of its peers.
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Despite manufacturing headaches and inflation pressures that have vexed a wide range of businesses, Apple profit declined by 10% while revenue edged up 2%. Both figures were better than analysts projected.
Additionally, Apple CEO Tim Cook noted “a new doubling of revenue in India,” which was a record for the country. Brazil, Vietnam, and Indonesia also saw double digit growth, according to Mr. Cook. The new MacBook Air powered by the M2 chip and the 13-inch MacBook Pro boosted the company’s global popularity this quarter. However, Mr. Cook stressed that the iPhone was the “engine” of Apple’s India market.
The results for the April-June period weren’t a huge surprise. That’s because Apple had already warned that its revenue would be depressed by as much as $8 billion because of supply chain problems that have been compounded by pandemic-related shutdowns in Chinese factories that make iPhones and other Apple products.
That scenario played out as expected. In Apple’s fiscal third quarter, earnings fell to $19.4 billion, or $1.20 per share, while revenue edged up to nearly $83 billion.
The positive surprise helped boost Apple’s stock price by 4% in extended trading after the numbers came out.