Everyone knew this would be rough quarterly earnings report, but the question was just how rough. Facing broader economic headwinds and a slowing smartphone market, Apple reported its second straight quarterly sales drop. Still, the company managed to beat Wall Street forecasts, on the strength of better-than-expected iPhone revenue.
Apple itself issue no formal guidance ahead of earnings, a move implemented and maintained since the earliest days of the pandemic. Apple sold $51.3 billion worth of iPhones for Q2, beating an expected $48.8 billion for the quarter. The category’s growth amounted to only 2% for the quarter, but it’s still being regarded as a win.
“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” Tim Cook said in a release. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”
The broader smartphone market has stagnated and begun to contract, owing to financial concerns and various factors limiting demand. Apple certainly hasn’t been immune to such stresses, but the company is believed to have benefited from a boast from supply chain corrections.