Apple earnings beat Wall Street targets, but iPhone sales aren’t as strong – National

Apple Inc AAPL.O on Thursday reported sales and earnings that beat Wall Street’s targets, though iPhone sales weren’t as strong as some analysts had hoped.

Apple’s saving grace was Mac sales of $11.5 billion, a far cry from analyst estimates of $9.36 billion.

Apple’s results showed some resilience in the face of a weak economy and a strong US dollar, which has led to disastrous reports from many tech companies, although Apple’s quarter was saved by its oldest technology, desktop computers, while its star, the… iPhone, stumbled.

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Overall, Apple said quarterly revenue was up 8% to $90.1 billion, ahead of estimates of $88.9 billion, and net income came in at $1.29 per share and thus topping the median analyst estimate of $1.27 per share, according to data from Refinitiv.

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According to Refinitiv IBES, the company’s fourth-quarter phone sales rose to $42.6 billion, while Wall Street was expecting sales of $43.21 billion. In contrast, the global smartphone market as a whole fell 9% in the just-completed quarter, marking the third consecutive decline this year, according to data from Canalys.

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Luca Maestri, Apple’s chief financial officer, said iPhone sales hit a record in the September quarter, beating the company’s forecast.

“We performed better than we expected, even though exchange rates were significantly negative for us,” Maestri said.

JP Morgan analyst Samik Chatterjee had noted early weak demand for base models of the newly launched iPhone 14s but robust consumer appetite for the higher-end devices, reflecting Apple’s relatively affluent customer base. He warned that weaker consumer spending could hurt earnings next fiscal year.

Sales of Apple’s Mac computers got a boost with the launch of the redesigned MacBook Air and MacBook Pro laptops this summer. New tablets went on sale this week.

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The company reported iPad sales of $7.2 billion, compared to the median estimate of $7.94 billion.

Apple wearables like AirPods and other accessories brought in $9.7 billion in sales, slightly above Wall Street’s forecast of $9.2 billion.

“Similar to iPhones, we expect macro impacts on devices to eventually creep into the higher end,” Barclays hardware analyst Tim Long wrote ahead of the results.

Growth in the company’s services business, which has propelled sales and profits in recent years, saw revenue climb to $19.2 billion, down from the $20.10 billion estimate.

In China, which has been experiencing a severe economic downturn, Apple reported fourth-quarter revenue of $15.5 billion. That’s up from the previous quarter, when Apple reported revenue of $14.6 billion. Apple earnings beat Wall Street targets, but iPhone sales aren’t as strong – National

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