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Apple is gaining muscle and improving its income in the context of the crisis

  • October 28, 2022
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Manzana is showing signs of greater resilience in the face of the harsh and convulsive economic context we live in, with the iPhone apparently weathering the downpour better

Manzana is showing signs of greater resilience in the face of the harsh and convulsive economic context we live in, with the iPhone apparently weathering the downpour better than its rivals, and Apple Silicon-powered MacBooks gaining ground from competition anchored in a formula that’s beginning to smell more of the past than presence.

The Cupertino giant’s good progress was boosted after it reported yesterday that its sales and profits beat Wall Street targets, one of the few positive messages in a technology sector that, at least for now, has been falling sharply in the face of context such as high inflation and weakness of the euro.

While yes, Apple is showing more resilience, largely due to its core audience, that doesn’t mean it’s completely immune, as forecasts for next Christmas season have been downgraded and it has acknowledged it will suffer a slowdown in the final quarter of the calendar year 2022. The corporation hasn’t released numbers, but it’s a scenario that shouldn’t surprise anyone at this point.

Despite the wind not quite blowing their way, Apple announced quarterly revenue rose 8% to $90.1 billion, beating estimates of $88.9 billion. Net income was $1.29 per share, above the forecast of $1.27.

If we are more specific about the products, and perhaps to the surprise of many, revenue from the sale of devices iPhone missed expectations in fiscal fourth quarter, with revenue of $42.6 billion versus forecast of $43.21 billion. Part of the slowdown that Apple is predicting is certainly related to the fact that the iPhone 14 is selling much less than expected.

The iPad is another product that fared slightly worse than expected, with the company’s revenue at $7.2 billion versus a forecast of $7.94 billion, while the results Macs seem to better reflect what IDC revealed a few weeks ago, with sales of 11.5 billion which are above the forecast of 9.36 billion.

Services play a very important role in the digital world dominated by the Internet, and Apple clearly has a place in this sector. Here, the Cupertino giant reported an increase in sales to 19.2 billion dollars, but this amount is below the estimate of 20.1 billion. China, a very large market that is not experiencing its best period, reported revenue of $15.5 billion in the fourth fiscal quarter, clearly beating the forecast of $14.6 billion.

As we can see, Apple is not immune to the crisis, but at least for now it is doing much better than the vast majority of its competitors, who are preparing for a context in which their sales are very likely to go down.

Source: Muy Computer

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