The iPhone maker said revenue rose 2 percent from a year ago to $83 billion, slightly above analysts’ forecasts of $82.8 billion, according to Refinitiv. Apple in April had warned of up to $8 billion in delays related to supply and manufacturing issues for the quarter. But finance chief Luca Maestri told the Financial Times that it ended up being less than $4 billion and should improve in the current quarter. “The supply situation is improving,” he said. “The big question mark, as always, is potential Covid restrictions, but in the current environment, if nothing changes, we expect supply restrictions to be less than what we saw in June.” Earnings per share for the quarter fell 8 percent to $1.20, beating forecasts for $1.15. Net profit fell 10% to $19.4 billion, beating forecasts for $19 billion. Apple shares, which have fallen about 13.6 percent year-to-date amid a broader tech sell-off, rebounded 3 percent in after-hours trading. “Credit must be given to [chief executive Tim] Cook for the way he’s led this company over the last couple of years,” said Paolo Pescatore, analyst at PP Foresight. “The company is very well positioned to weather any storm, unlike any other.” Apple’s most important product is thriving, executives said. Its iPhone sales, which accounted for 49 percent of total revenue, rose 3 percent to $40.7 billion. Cook said the June quarter saw a “record” number of people switching iPhones from Android. “On the iPhone, we haven’t seen any sign of weakness in demand from the macro environment other than the currency,” Maestri said. “We think demand continues to be very strong, but we don’t have enough supply to meet that demand.” Maestri noted that Apple generated nearly $23 billion in operating cash flow and returned more than $28 billion to shareholders through dividends and share buybacks. Apple’s “installed device base” — which includes iPhones, iPads and other hardware — hit an all-time high for “all major product categories,” Maestri said, though he declined to give a specific number. In January, this figure totaled 1.8 billion. That helped boost revenue in Apple Services — a high-margin division that houses the App Store and digital media purchases — 12 percent to $19.6 billion, slightly below expectations for $19.7 billion. The number of people who pay recurring subscriptions to Apple for its range of services is 860 million, according to Apple, up by 160 million in the last 12 months.

Mac revenue fell 10 percent to $7.4 billion from a year ago. iPad sales also fell 2 percent to $7.2 billion, and wearable devices such as the Apple Watch and AirPods fell 8 percent to $8 billion. Cook lamented “a cocktail of headwinds” holding back wearables, including a stronger dollar, supply constraints and Apple’s decision to pull out of Russia. Apple also reported a “slowdown” in its advertising business, days after investors were disappointed by Meta, Snap, Twitter and YouTube. Bernstein analysts previously warned that revenue estimates for fiscal 2023 could be too high if the broader economy continues to contract. “Apple is consumer-focused and highly transactional, with less than 10 percent of its revenue and earnings recurring — meaning it could be vulnerable to a downturn,” they wrote.