THE Apple Inc announced yesterday that pressures from a shortage of components are easing and that demand for iPhones is growing, even as consumers cut back on other spending. Thus, the company exceeded its expectations Wall Street predicting faster growth in its sales for the next period of time.
The price of shares Apple rose 3.5% after the positive forecast was announced.
Despite macroeconomic data indicators around the world showing a negative sign, Apple chief financial officer Luca Maestri told Reuters there was no decline in demand for handsets. iPhonewhich are also the company’s biggest img of revenue.
The sales Apple’s fiscal third-quarter smartphone sales rose 3 percent to $40.7 billion, with Wall Street bracing for a 3 percent decline. On the other hand, total global smartphone sales fell by 9% during the fiscal quarter just ended, according to available data (Canalys).
Its loyal and affluent customer base Apple helped the company weather the turbulence from declines in consumer spending better than other companies in the same industry in the past, while increased quarterly results of the company imply that a similar development will be recorded.
Runar Bjorvde, an analyst at Canalys Research, announced that “Apple in this dimension has a key dynamic that will allow it to suffer fewer consequences compared to many of its competitors.”
However, the company hinted that it is directly monitoring them developments with caution.
The negative course of the economy is affecting advertising sales, sales of technological gadgets, but also household appliances, as Maestri stated in an interview, characterizing the above categories of services and products as “points of weakness” in relation to the decline in consumer demand.
“Fortunately, we have a wide one variety of products. So, we know that we will be able to deal with the situation,” he added.
As the Athens News Agency reports, the results show that the advertising activities Apple’s products, which include the sale of ads alongside news, combined with search results in the mobile technology app store, are vulnerable to cuts in product promotion strategies, as have rivals Snap Inc and Meta Platforms Inc .
Shortages of parts and spare parts for devices will continue to be obstacles for the sales of Mac and iPad devices, Maestri said, despite the fact that the effects are diminishing. The reported shortfalls cost Apple $4 billion in the quarter ended June 25, short of estimates. Maestri said the company expects the impact to diminish further in the current fiscal quarter.
However, the Apple faces the risk of finding itself on the same path as its competitors in terms of the accumulation of unsold tablets and PCs that remain in warehouses, in the event that more consumers than the level of forecasts decide not to make the their purchases, due to rising inflation, but also interest rates.
“In terms of whether you can test for demand, you can’t really do that unless you have the necessary supply chain,” Apple CEO Tim Cook said in a statement. analysts on Thursday. “We are essentially away from the last quarter, while we have an estimate for the course of demand. But it’s an estimate.”
Invoking her economic instabilityApple made it known that it would not provide specific guidance on its revenue path, but announced that sales compared to their level a year ago should increase faster in the quarter that we are going through, against her 2% increase recorded in the quarter just ended.
Source: News Beast
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