On Thursday, Apple Inc. said that the problem of parts shortages is slowly clearing up, and the demand for iPhones is also strong. Both of these statements point toward strong sales growth for Apple in the near future. As a result, it is expected that the company's position in the stock market will also improve.
After the release of the results, the shares of Apple increased by 3.5%. If we look around, the macroeconomic indicators are pointing toward the negative side. However, Apple's CFO stated that the demand for iPhones is still strong and not showing any signs of slowing down.
iPhone Sales Are Around $40.7 Billion
In the third fiscal quarter, iPhone sales saw an increase of 3% and touched the value of $40.7 billion. However, Wall Street estimates were 3% by December. During the same period of time, the smartphone market in the world dropped by 9%, which further highlights the strong demand for iPhones.
It is Apple's relatively affluent and loyal customers that have allowed the company to weather the drop in the smartphone market. A closer look at the latest quarterly results of Apple shows a similar pattern of strong growth as well.
According to a research analyst, The robustness of Apple will allow it to be less affected than other smartphone companies. However, Apple is still cautious as any further slump in the smartphone market may affect it in one way or another. But Apple is firm that its broad portfolio of products and services will allow it to navigate this storm.
Based on the results, the advertising business of Apple is still vulnerable to cuts in the marketing budgets, just like the competitors such as Meta and Snapchat.
However, Apple's main revenue driver is still the iPhones which do represent a weakness - Any drop in the sales of this particular product could put a big dent in Apple's revenue.