Apple Inc (NASDAQ:AAPL) defied analyst expectations for its fiscal 2Q, driven by strong sales of its flagship iPhone product.
The technology giant reported total revenue of $94.84 billion – down slightly from the $97.3 billion it reported in the same year-ago quarter but ahead of the $92.6 billion expected by analysts.
The iPhone set a quarterly record for sales of $51.3 billion, greater than the $50.8 billion it reported a year prior.
Apple’s Services division grew its revenue to reach $20.9 billion, but sales of Macs, iPads and wearables were all down year-over-year.
Earnings per share also beat estimates, hitting $1.52 versus the $1.43 expected for the three-month period ended April 1, 2023.
The results highlighted how consumers continue to curb their spending on non-essentials like phones, tablets, and computers amid high inflation.
“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,” said Tim Cook, Apple’s CEO in a statement.
“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.”
Shares of the company rose nearly 1% aftermarket Thursday to trade around $165.79.
“Apple shares have held up reasonably well over the last quarter and has been notable in being one of the few tech companies that hasn’t announced widespread job cuts, with the shares trading at their highest levels this year, with very little dip in the sell-off seen in March,” CMC Markets analyst Michael Hewson noted ahead of the group’s 2Q earnings release.
Separately, Apple announced it would hike its dividend another 4%, and authorized an additional $90 billion share buyback program.
Contact Angela at angela@proactiveinvestors.com
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