Apple’s Slowdown Eases, but Sluggish Demand Hurts Results

“Apple’s results suggest to us that the company is navigating a challenging macroeconomic environment well,” said Tom Forte, an analyst with D.A. Davidson. Still, he said, Big Tech’s collective financial results served as a reminder that the economy is not yet out of the woods.

Apple made $51.3 billion from iPhone sales, up 1.5 percent from a year ago. Demand for iPhones and other products in China was down slightly from a year earlier, but revenue of $17.8 billion outpaced investor expectations as China continued its rebound from long pandemic lockdowns. Emerging markets like South Asia, India, Latin America and the Middle East powered iPhone demand, Luca Maestri, Apple’s chief financial officer, said on a call with investors.

Tim Cook, Apple’s chief executive, said on the call that the company’s supply of iPhones had recovered after various issues, many related to the pandemic.

“If you step back and look at how we performed over the last three years on supply chain, despite this parade of horribles, if you will, between the pandemic and the chip shortages and macroeconomic factors, the supply chain has been incredibly resilient,” he said.

Customers’ interest in Apple products other than the iPhone slumped in the quarter. Revenue from iPads fell nearly 13 percent and Mac revenue dropped 31 percent. Mr. Cook said the slowdowns came from economic challenges and difficult comparisons with a high-demand quarter last year.