Apple on Thursday reported record sales and earnings in the fiscal second quarter, which beat estimates of wall streetthanks to his handling of chip shortages as consumers bought new iPhones.
Sales increased 19% in the Americas and single digit percentage in Europe and China. Shares of the company rose 2.3% after the regular market close.
The manufacturer of iPhone and the world’s largest company by market capitalization, aims to keep demand high for the iPhone and other devices, while increasing sales of services such as music and video subscriptions.
The latest results show that it is making progress on both goals, as it beat sales estimates for every unit, plus accessories.
The Apple CFO Luca Maestricited in a statement “continued strong demand for our products” and record sales of services.
Apple’s global revenue in the fiscal second quarter was $97.3 billion, up 8.6% from a year ago and higher than analysts’ average estimate of $93.89 billion, according to Refinitiv data.
Apple had warned that less favorable exchange rates and different product launch schedules than in previous quarters would dampen sales growth.
Quarterly worldwide phone sales revenue was $50.6 billion, up 5.5% from a year ago, and above the median estimate of $47.88 billion.
Sales of services, Apple’s second-biggest business after iPhones, rose 17% to $19.8 billion, narrowly beating the median estimate of $19.71 billion.
Earning was $25 billion, or $1.52 a share, and far exceeded analyst expectations of $23.2 billion and $1.43 a share.
Apple also announced a 5% increase in its dividend to $0.23 per share, and the approval of an additional $90 billion share buyback.
However, new lockdowns in China and Taiwan, where many parts and iPhones are made, could bring new headwinds in terms of supply and demand in the current quarter.
Meanwhile, the services business is vulnerable to antitrust sanctions from the United States, the Netherlands, South Korea, South Africa and many other countries that are weighing whether the company’s fees are too high.
Apple said it now has 825 million paying subscribers across its at least seven subscription offerings, an increase of 40 million from 785 million last quarter.
Its growth comes as rivals like Netflix report subscriber losses.