by Apple Inc. (NASDAQ: AAPL) reported its fiscal third-quarter results on Tuesday, beating analyst expectations on the top and bottom lines. However, the company’s iPhone revenue came in below expectations, as supply chain constraints continued to weigh on the business.
The Cupertino, California-based tech giant reported earnings of $1.52 per share on revenue of $97.3 billion, compared to analyst expectations of $1.43 per share on revenue of $94.1 billion.
The company’s iPhone revenue came in at $47.9 billion, down from $50.5 billion in the year-ago quarter. This was the first time that iPhone revenue has declined year-over-year since the second quarter of 2016.
Apple CEO Tim Cook attributed the decline in iPhone revenue to supply chain constraints, which have been a major issue for the company in recent months. However, he also said that the company is “very confident” in the long-term prospects of the iPhone business.
Other areas of Apple’s business performed well in the quarter. Mac revenue rose 16% year-over-year to $10.9 billion, while iPad revenue rose 7% to $7.3 billion. Services revenue also rose 19% to $19.5 billion.
Overall, Apple’s Q3 earnings were solid, but the company’s iPhone business continues to be under pressure from supply chain constraints. The company expects these constraints to continue into the fourth quarter, but it is confident that its long-term growth prospects remain strong.
Here are some additional details about the story:
- Apple’s iPhone revenue declined for the first time since Q2 2016.
- The company’s Mac and iPad businesses performed well in the quarter.
- Services revenue rose 19% year-over-year.
- Apple expects supply chain constraints to continue into Q4.
