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Apple’s Profit Falls By 11 Pct, Still Beats Market Expectations

Apple’s Profit Falls By 11 Pct, Still Beats Market Expectations

Apple's Profit Falls By 11 Pct, Still Beats Market Expectations

Tech giant Apple saw its profit decline by 11% in the quarter ending June compared to the same period a year ago, with the ongoing economic downturn, supply chain disruptions, and strict lockdowns in China taking a toll on its business.

The company generated $83 billion in revenue for the quarter, up 2% compared to the same quarter last year. While that’s the highest figure the company has ever posted for the third quarter, it represents a considerable slowdown from its 36% year-over-year revenue growth from last year.

That being said, the company exceeded analysts’ expectations for both profit and sales, with the number of active devices reaching an all-time high across all geographies and product categories.

Apple’s revenue from its services business grew by 12% for the quarter to $19.6 billion, which was slightly lower than the $19.7 billion analysts were expecting. The growth was powered by an increase in its base of paid subscribers, which grew more than five-fold to 860 million, up from 160 million the year before.

Given the tumultuous market conditions, the company declined to share guidance for the current quarter. However, it expects an acceleration in its revenue growth around September as long as macroeconomic factors and Covid-related challenges do not worsen the situation.

“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment,” Apple’s Chief Financial Officer Luca Maestri said. “During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”

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