Apple’s digital services businesses fueled top-line growth in the first three months of 2022, as overall the tech giant handily topped analyst projections despite supply-chain challenges.
The services segment — which includes the App Store, Apple Music, Apple TV+, iCloud and other subscription businesses — notched a record $19.8 billion in sales, up 17%.
Sales of iPhones, Apple’s biggest product line, were $50.6 billion in the period, up 5.4%, a slowdown compared with a nearly 66% boom in the year-ago quarter. Overall, the company reported $97.3 billion, up 9% year over year and a record for a March quarter, and quarterly earnings per diluted share of $1.52.
Overall, Wall Street expected revenue of $93.89 billion and EPS of $1.43, per Refinitiv. Analysts had pegged Apple’s services coming in at $19.7 billion for the quarter ended March 26, Apple’s second quarter of fiscal 2022.
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” CEO Tim Cook said in announcing the results.
With a market cap of more than $2.6 trillion, Apple is the most valuable company in the world.
On Thursday, Apple said its board authorized an increase of $90 billion to Apple’s existing share buyback program. The board also declared a cash dividend of 23 cents per share, an increase of 5%, payable on May 12.
(Pictured above: Tim Cook arrives at the Vanity Fair Oscar Party on March 27)