Apple earnings

2022 - 10 - 28

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Image courtesy of "The New York Times"

Apple Earnings: iPhone Powers Growth, but Signs Point to a ... (The New York Times)

Consumers showed enthusiasm for the latest version of the phone, but the company said sales in the current quarter are not as strong.

Those troubles spread to an iPhone factory for the first time this week when [Foxconn reported](https://www.nytimes.com/2022/10/27/world/asia/chinas-latest-covid-lockdown-affects-a-major-iphone-factory.html) a Covid outbreak at its Apple assembly plant in Zhengzhou, China. They predict that the iPhone’s business will dim, just as sales of Macs and iPads have cooled as students and workers return to classrooms and offices. Apple also is navigating increasing geopolitical tensions between the United States and China. This week, it raised the monthly prices on Apple Music by $1 and Apple TV+ by $2. They see the economic slowdown buffeting the company’s two largest markets, the United States and China, and worry that Apple will be caught in the downturn. In a year when smartphone sales are contracting, the iPhone has expanded and stolen market share. Still, the biggest issue Apple faces is its supply chain. In noting the slowdown, it joined peers like Google, Amazon and Microsoft in warning that their business are being hobbled as the economy weakens. Tim Cook, Apple’s chief executive, said that the company was facing inflationary pressure on wages and device components. Though Apple’s earnings exceeded analysts’ forecasts, its shares initially fell in after-hours trading before turning around and rising more than 1 percent to $146.20. The company reported that profits rose nearly 1 percent to $20.7 billion. The signature product accounts for about half of the company’s total revenue.

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Image courtesy of "CNBC"

Apple beats but comes up light on iPhone sales and services (CNBC)

Apple beats but comes up light on iPhone sales and services · Apple reported fiscal fourth-quarter earnings on Thursday that beat Wall Street expectations on ...

$88.90 billion estimated, up 8.1% year-over-year Cook said that it was a difficult comparison because last year, Apple released new iPads in September. That business increased nearly 10% year-over-year to $9.65 billion. $90.15 billion vs. He added that the company's high-end phones, the iPhone 14 Pro, were supply constrained. Apple said it had 900 million total subscriptions, which includes subscriptions to apps through Apple's App Store. There were a few bright spots in Apple's report. Although Apple's iPhone business increased sales by over 9% on an annual basis, it came up short versus analyst expectations. He also said that services would grow year-over-year during the quarter, but would be hurt by the macroeconomic environment. "The foreign exchange headwinds were over 600 basis points for the quarter," Cook told CNBC's Steve Kovach. Cook told CNBC said it was paying less for some memory chips. Total sales in Apple's fiscal 2022 were up 8% to $394.3 billion.

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Image courtesy of "Barron's"

Apple Stock Spikes on Earnings. Why the Rally Might Not Last. (Barron's)

Apple edged out estimates in its latest quarter, but there were some troubling signs beneath the surface.

Apple closed at $155.74 on Friday. [ ](https://www.barrons.com/market-data/stocks/aapl)

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