Apple avoids global microchip crunch with $124bn record sales

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Apple has shrugged off a global chip shortage to post record sales and profits as demand for its iPhones hit new highs.

The world’s most valuable company said quarterly revenues had climbed by 11pc to $124bn (£93bn). Profits were up 20pc to $34.6bn, also an all-time high in what is typically Apple’s most lucrative part of the year.

However, sales growth was at its slowest since the early months of the pandemic, and revenue from the iPhone, its most important product, rose by 9pc, compared to double-digit increases in previous quarters.

The figures suggest the pandemic boom in sales of gadgets and digital goods such as apps and cloud storage may be losing steam.

Apple’s services business, made of the App Store, Apple Pay and entertainment ventures such as music and video streaming, grew by 23pc.

IPad sales were down 16pc, while those of Mac computers were up 25pc. Accessories such as the Apple Watch and AirPods rose 13pc.

Tim Cook, chief executive, said: “This quarter’s record results were made possible by our most innovative lineup of products and services ever.”

Apple became the first company in history to hit a $3 trillion valuation earlier this year, but a tech slump has pushed shares down by more than 11pc so far in 2022.

As sales of the company’s stalwart products have started to level off, investors are turning their attention to a new generation of products.

Analysts expect the company to release a virtual reality headset this year, and the company has also been rumoured to enter the car market with its own electric vehicle later in the decade.

Apple is facing increasing regulatory pressure, particularly over the fees it charges app developers for selling through its App Store. Countries including South Korea and the Netherlands have outlined plans to restrict its fees.

The slowdown in iPhone growth is likely to be attributed to the latest model, the iPhone 13, boasting few major upgrades on the previous iPhone 12 lineup.