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The world’s most valuable companies posted quarterly revenue growth on Thursday, announcing strong iPhone demand boosted total revenues by 8% to $90.1 billion in the three months to September We just finished our fiscal year. The company reports that profits rose nearly 1% to his $20.7 billion.
iPhone sales increased 10% in the quarter through September to $42.6 billion, slowing significantly from the 47% increase reported in the same period last year. Signature products account for about half of the company’s total sales. Apple’s earnings beat analysts’ expectations, but the company’s stock fell about 1% to $143.38 in after-hours trading. Stocks fell 3% before the market closed.
Some Wall Street analysts point to Apple as a safe haven for investors as the economy slows. In a year when smartphone sales shrunk, the iPhone expanded and took market share. The company’s other businesses, including the App Store, Apple Watch, and AirPods, are growing, but not as big as iPhone sales.
Other analysts are not convinced. They see the economic slowdown affecting the company’s two largest markets, the United States and China, and worry that Apple could slip into recession. They predict iPhone business will slow in the same way that Mac and iPad sales have declined as students and employees return to classrooms and offices.
“Apple is people,” said Bernstein Research analyst Toni Sacconaghi. “Not surprisingly, even this great consumer brand is not immune to economic headwinds. “