Apple’s Q2 earnings topped Wall Street’s forecasts after revenue fell 2.5 per cent to $94.8 billion in the April 1 quarter, topping predictions of a 4.4 per cent decrease. Its profits per share were steady at $1.52, compared to $1.43 expected.
Apple’s iPhone sales surpassed expectations, increasing 1.5 per cent to $51.3 billion, exceeding the 3.3% dip predicted. Despite rising inflation and decreased consumer and corporate expenditure, Apple increased its market share relative to its Android competitors. It has made significant inroads into other markets like India.
Despite a predicted drop in revenue, Apple’s CFO, Luca Maestri, indicated that gross profit margins for the current quarter will be higher than expected. Apple’s gross margin will be between 44 per cent and 44.5 per cent, higher than the 43.7 per cent predicted.
However, Maestri expects Apple’s revenue to fall slightly, with analysts forecasting a 2.1 per cent increase to $84.7 billion for the company’s fiscal third quarter ending in June. Apple’s stock gained 2 per cent on the news, and it has outpaced the rest of Wall Street, up 28 per cent year to yet.
Apple’s performance contrasted with the dismal data of major chipmakers due to China’s slower-than-expected economic recovery. According to Canalys, worldwide smartphone shipments declined 13 per cent in the first three months of 2023, although Apple’s iPhone sales stayed stable.
The sources for this piece include an article in Reuters.