Apple Inc. battled through supply pressures to show continued revenue growth in its June quarter, with iPhone sales driving better-than-expected performance despite a surprise drop in Mac sales. Executives acknowledged on the company’s earnings call that supply constraints impacted the Mac business and continue to do so, but they expect that overall supply pressures will ease in the September quarter relative to the June quarter.
Chief Executive Tim Cook also indicated that he’s yet to see “obvious evidence of macroeconomic impact” on the iPhone business, aside from foreign-exchange impacts. Before the report, analysts were eager to learn how demand was holding up headed into the expected iPhone 14 launch in the fall. On the flip side, Cook said that the company’s wearables, home and accessories business experienced some macro impacts, as did the services business, with pressure on advertising. “Mac and iPad were so gated by supply that we didn’t have enough product to test the demand,” he added. The smartphone giant grew revenue to $83 billion from $81.4 billion in its fiscal third quarter, while analysts surveyed by FactSet had been expecting $82.8 billion. Executives at Apple warned on the last earnings call that they had expected $4 billion to $8 billion in negative impacts related to supply-chain issues during the June quarter, though Cook shared on Thursday’s call that Apple wound up slightly below that forecast. “Our June-quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment,” Chief Financial Officer Luca Maestri said in a statement. Profit fell, as Apple posted net income of $19.4 billion, or $1.20 a share, compared with $21.7 billi …