Apple Inc recently announced its results according to which, the company beat Wall Street expectations for revenue and profit for the April 1 quarter. The company witnessed higher than expected iPhone sales, with significant growth in India and few other markets.
Share of Apple, the biggest company in the U.S. in terms of market value, surged by 2% after the results, which was in contrast to the disappointing numbers for large chip manufacturers owing to a sluggish rebound in economic growth across China. Profit for the company was at flat $1.52 per share, against projections of $1.43 per share, as per the sales information provided by Apple.
The sales for iPhone jumped around 1.5% to $51.3 billion, overcoming the expectations of a 3.3% drop mostly due to the rising inflation, which caused many businesses and consumers to tighten up their expenditure. Luca Maestri, Apple’s Chief Financial Officer, mentioned that the company’s gross margin will be between 44-44.5%, beating the estimates of 43.7% as per Refinitiv data. However, Maestri also warned that Apple’s revenues could decline slightly.
It has been noted that Apple stocks are outperforming most of the Wall Street during 2023, being 28% higher year-to-date. The company increased its dividend by 24 cents a share from 23 cents a share from last year.
According to Tim Cook, Apple’s CEO, the company record for fiscal second quarter for sales of iPhone, attributed to getting new users in emerging markets like India. He stated that supply chain problems have disappeared, as there were not material shortages during the quarter.
Apple did not witness high growth across all its product lines, with the sales of Macs falling noticeably along with iPad revenues. The company also recorded a 2.9% drop in sales in China, which was more than expected.
Source Credits: https://www.reuters.com/technology/apple-beats-revenue-profit-estimate-iphone-sales-growth-2023-05-04/