Apple Forecasts better sales growth despite gloomy economy

Apple Inc said on Thursday that supply shortages are easing and that demand for iPhones remains strong despite customers cutting down on other buying, helping the company beat Wall Street projections and foresee higher sales growth in the future.

The shares of the Silicon Valley the company surged 3.5% when the findings were released.

Phone sales increased 3% to $40.7 billion in the fiscal third quarter, above Wall Street’s expectation of a 3% decrease. According to Canalys statistics, the entire worldwide smartphone market fell 9 percent in the most recent quarter. In the past, Apple’s devoted and relatively affluent client base helped it to weather consumer spending falls better than other brands, and the company’s recent quarterly results indicate a similar trend unfolding.

Despite the fact that macroeconomic indications throughout the world are becoming negative, Chief Financial Officer Luca Maestri told sources that demand for iPhones, the company’s main source of income, had not slowed.

Apple issued a caution.

According to Apple’s Maestri, the collapsing economy is harming sales of advertising, accessories, and home items, which he refers to as “pockets of weakness.”

“Fortunately, we have a fairly diverse portfolio, so we’re confident we’ll be able to handle it,” he said.

Parts shortages will continue to impede Mac and iPad sales, according to Maestri, albeit the impact is lessening. They cost Apple less than $4 billion in sales in the quarter ended June 25, which was less than the company had predicted. According to Maestri, the business anticipates the hit to decrease further in the current quarter.