Apple reports record revenue and profit but expects greater hit from Russia-Ukraine war | Business Newsletter

Apple reported record revenue and profit for the second quarter of its fiscal year but warned that it expected a bigger hit given the impact of Russia’s war in Ukraine.

The world’s most valuable listed company reported January-March revenue of $97.3 billion – $3 billion higher than analysts’ expectations and up nearly 9% year-over-year. last.

Just over $50 billion of that came from iPhone sales, while services, including music and video subscriptions, contributed a record $20 billion.

Shares of the iPhone maker were up 3% in after-hours trading – having jumped 4.5% in regular trades earlier in the day in anticipation of a strong market despite some major headwinds. .

Apple stock in recent months has been particularly sensitive to COVID production shutdowns in China and chip shortages – also linked to pandemic disruptions – as global supply fails to meet high demand.

It has taken a toll on chip-dependent industries from carmakers to game console makers over the past year.

Still, Apple’s stock has outperformed the tech-wide Nasdaq index as its quarterly numbers rarely disappoint, with demand for its core iPhone remaining strong despite the downturns. trouble behind the scenes.

Analysts expressed concern that soaring inflation could hamper sales growth, and Apple’s chief financial officer said he expected pressure on consumer budgets in the current quarter. , because of war-induced inflation globally.

He also noted, in an interview with Reuters, that it had suffered a business impact from the company’s withdrawal from the Russian market but declined to specify the extent of the impact and acknowledged the number would increase in the quarter. current third.

On the topic of supply chain disruptions, he said the iPad has suffered the worst — describing it as “very substantial,” with sales falling year-over-year.

Second-quarter net income – a measure of pre-tax profit – hit $25 billion, and Apple rewarded shareholders with a 5% dividend increase while the board also approved a $90 billion more stock buyback. .