As consumers cut down on other purchases due to inflation, Apple on Thursday (July 28) reported profit and sales that were above Wall Street projections. The company also managed parts shortages better than expected. Immediately after the results were announced, shares increased by 3.2%.

According to Refinitiv statistics, Apple reported revenue and profit for the quarter ended June 25 of US$83.0 billion and US$1.20 per share, exceeding projections of US$82.8 billion and US$1.16 per share.

During an investor call, Apple is anticipated to provide a forecast for the current fiscal fourth quarter; nevertheless, Chief Financial Officer Luca Maestri told Reuters that there had been no slowdown in iPhone demand. However, Maestri noted that the weak economy is harming sales of accessories, household goods, and advertising.

We know we'll be able to navigate that because we have a very broad portfolio, he continued. Although the effect has been lessening, Maestri indicated that part shortages will continue to restrict sales of the Mac and iPad.

Investors are keeping a close eye on Apple as economic signs deteriorate. The devoted and generally wealthy customer base of the iPhone manufacturer has historically helped it weather downturns better than other consumer brands.

While sales of iPhones and iPads above forecasts, Wall Street targets for revenue from services, Mac computers, and accessories were missed, and sales in the significant China market decreased by 1%.

Many businesses, like Apple, that earn significant overseas revenue are being negatively impacted by the increasing U.S. dollar since they are receiving less money back when they convert it. Apple predicted that the current quarter's sales will decline by 6% as a result of currency fluctuations.

Supply chain problems caused by COVID-19 lockdowns in China, which have affected the manufacture of select Apple products like iPads and Macs, are among the most recent economic woes. Given the challenging economic environment, Apple, like many of its competitors in the tech sector, is reportedly limiting hiring and reducing spending.

Apple shares closed Thursday down around 11% year to date, significantly less than the S&P 500 index as a whole and also less than other manufacturers of consumer electronics like Sonos Inc. and Samsung Electronics Co.

It will serve as a crucial test to determine whether Apple's years-long efforts to expand its clientele outside the iPhone have been successful.

After two years of sluggish sales in the Greater China region, roughly a fifth of Apple's sales in its most recent fiscal year came from that area. However, Apple is currently dealing with a slowing of China's overall economic growth, where its fiscal third-quarter sales of US$14.6 billion were down 1%.