Apple iPhone sales inch up, bolstering results amid shaky economy

Apple Inc's results beat expectations on Thursday, showing off the tech giant's resilience in a slowing global economy thanks to better-than-expected iPhone sales and notable inroads in India and other newer markets, Azernews reports citing Reuters.

Shares of the largest U.S. company by market value rose 2% after Apple exceeded Wall Street's expectations for revenue and profit for the April 1 quarter. The company's results contrast with disappointing figures out of big chipmakers due to a slower-than-expected rebound in China's economic growth.

Apple executives on Thursday said gross profit margins for the current quarter would be better than forecast despite an expected dip in revenue as supply-chain issues have improved.

Apple said sales for its fiscal second quarter ended April 1 fell 2.5% to $94.8 billion, ahead of expectations for a 4.4% decline, according to Refinitiv data. Profit was flat at $1.52 per share, compared with estimates of $1.43 per share.

IPhone sales were up 1.5% to $51.3 billion, besting expectations for a 3.3% drop even as consumers and businesses tightened up spending due to rising inflation. Global smartphone shipments fell 13% during the first three months of 2023, according to research firm Canalys, which said Apple gained market share against Android rivals.

Chief Financial Officer Luca Maestri said Apple's gross margin will be between 44% and 44.5%, above estimates of 43.7%, according to Refinitiv data. But he also said Apple's revenue will likely decline slightly. Analysts were expecting a 2.1% increase to $84.7 billion for the company's June-ending fiscal third quarter.

Apple's stock has outperformed most of Wall Street in 2023, up 28% year-to-date. Investors see the company as a defensive play during a time of economic uncertainty.

Apple raised its dividend to 24 cents a share, up from 23 cents a share a year ago. The board authorized a $90 billion share repurchase program, same as a year ago.