Apple warned that supply problems would cost the company $4 billion to $8 billion in the current quarter after announcing record-setting fiscal second-quarter revenue and profit.
Apple Inc announced record fiscal second-quarter revenue and profit on Thursday, above Wall Street expectations as the company dealt with processor shortages and consumers rushed to buy new iPhones.
In the Americas, sales increased by 19 percent, whereas in Europe and China, sales increased by single digits.
The iPhone maker, which is the world’s most valuable corporation by market capitalization, is hoping to retain strong demand for the iPhone and other devices while increasing revenue from services including as music and video subscriptions.
It is making progress on both aims, according to the most recent results.
In a statement, Apple Chief Financial Officer Luca Maestri acknowledged “continuing robust demand for our products” as well as a new high for service sales despite renewed concerns that supply-chain problems will hamper the tech industry.
According to Refinitiv statistics, Apple’s overall fiscal second-quarter revenue was $97.3 billion, up 8.6% from the previous year and higher than analysts’ average expectation of $93.89 billion.
Read more: Apple Posts Record Quarterly Earnings as iPhone Sales Surge
Apple had indicated that lower foreign currency rates and various product launch timings from previous quarters would stifle sales growth.
Global phone sales income for the quarter totaled $50.6 billion, up 5.5 percent from a year ago and ahead of the average estimate of $47.88 billion. After iPhones, Apple’s second-largest category, services, grew 17 percent to $19.8 billion, slightly topping the average forecast of $19.71 billion.
The company’s profit of $25 billion, or $1.52 per share, considerably beyond analysts’ projections of $23.2 billion and $1.43 per share.
Apple also announced a 5% dividend increase to $0.23 per share, as well as board authority to buy back an additional $90 billion in stock.
As the situation in Ukraine and other circumstances push up the price of oil, food, and other essentials with the anticipated supply-chain problems, investors have been anticipating for a reduction in consumer spending on computer products and services.
As COVID-19 outbreaks have gotten less fatal, some consumers have spent more money on travel and recreation outside of their homes, depleting home technology budgets.
Because people commute less, remote work has reduced the demand for expensive, high-end phones and upgrades.
Other businesses, though, have benefited from remote labour.
iPad sales decreased 2% to $7.65 billion, but were still more than experts’ average expectation of $7.14 billion.
Mac computer revenue increased 14.7 percent to $10.4 billion, beating analyst expectations of $9.25 billion.
Wearables, home speakers, and accessories sales increased by 12% to $8.8 billion, compared to $9.05 billion expected.
However, new supply and demand problems in China and Taiwan, where many parts and iPhones are made, could pose fresh challenges in the current quarter.