Everyone knew this would be a rough quarterly report, but the question was how rough. Faced with broader economic headwinds and a slowing smartphone market, Apple reported its second consecutive quarterly revenue decline. Still, the company managed to beat Wall Street’s forecasts thanks to better-than-expected iPhone revenue.
Apple itself does not issue formal guidance in advance of earnings, a move that has been implemented and enforced since the early days of the pandemic. Apple sold $51.3 billion worth of iPhones in the second quarter, surpassing the $48.8 billion expected for the quarter. The category grew just 2% for the quarter, but is still considered a win.
“We are pleased to report a record services and quarterly record for iPhone in March despite the challenging macroeconomic environment, and that our installed base of active devices reached an all-time high,” Tim Cook said in a release. “We continue to invest for the long term and lead with our values, which include making major strides toward building carbon-neutral products and supply chains by 2030.”
The broader smartphone market has stagnated and started to contract due to financial concerns and various factors limiting demand. Apple certainly hasn’t been immune to such tensions, but the company is believed to have benefited from the boast of supply chain corrections.