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Apple Posts Strong Revenue Despite the Ongoing Tech Downturn

Industry: Technology
Current: Company Performance

Apple Inc. posted record revenue in the quarter that ended September 2022
The company reported a revenue of slightly over $90 billion, an increase of 8% YoY
Apple's results showed some resiliency in the face of a weak economy and a strong US dollar, which have resulted in disappointing results from many tech-based companies

Apple Announces Strong Revenue for Q4 2022

Apple Inc. posted record revenue in the quarter that ended September 2022. The tech giant reported revenue of slightly over $90 billion, an increase of 8% from the same period in 2021. Net Profits reached $20.7 billion, a gain of less than 1% YoY. Like other major tech companies, even Apple was experiencing the adverse effects of a deteriorating macro environment and continued supply chain issues, although it has done a better job of weathering the challenging environment.

Growth Slowed in Apple's Services Business

Sales of Apple's iPhone, which continue to provide about half of the company's overall revenue, reached $42.6 billion, an increase of 9.7% YoY. Sales of Apple wearables such as AirPods and other accessories reached $9.7 billion. Sales of Macs totaled $11.5 billion. Sales from services, including revenue from the App Store and Apple TV+ were $19.2 billion, an increase of around 5% from 2021 but less than the quarter ending June 2022.

Investors are worried about slowdowns in the company's services division since it is crucial to Apple's business diversification as the iPhone develops into a more mature product. The decline in services was due to a slowdown in digital gaming and advertising and the effects of foreign exchange. Recently Apple increased the price of its Apple TV+ streaming services and Apple Music, which could increase services revenue for the current quarter.

Major Tech Companies Struggle as Economy Weakens

Apple's quarterly results follow major misses from other tech companies, such as Microsoft Corp., Alphabet Inc., and Meta Platforms Inc., all reported disappointing quarterly earnings, citing factors such as waning consumer demand for PCs or a decline in digital advertising. Samsung Electronics Co., Apple's primary opponent in the smartphone market, saw a decrease in profit as the industry-wide demand for memory chips for PCs and smartphones weakened. Amazon worsened the tech industry's woes, as its shares fell 20% after predicting a drop in holiday profits.

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