Apple predicts faster sales growth despite glum economy

STORY: Apple's posted a strong outlook for months ahead despite the slumping economy.

On Thursday they said a shortage in parts and disruptions to the supply chain were letting up, and demand for iPhones showed no signs of slowing down - despite consumers shutting their wallets.

The iPhone is the company's biggest source of revenue.

Phone sales in the fiscal third quarter rose 3% when Wall Street was expecting a 3% decline.

Meanwhile, the overall global smartphone market dropped 9% in the last quarter according to Canalys data.

Apple's loyal and relatively affluent customer base has let it weather spending dips better than other brands in the past.

But the company did offer some caution.

Chief Financial Officer Luca Maestri said the glum economy has hit sales of advertising, accessories and home products, and sales of its services grew slower than expected.

Like many companies that generate substantial revenue overseas, Apple is getting less cash back when converted - no thanks to a rising U.S. dollar.

The company also said currency fluctuations slashed sales by 3% in the quarter to June, and is expected to do more damage in the next.

Business took a hit after the company left Russia earlier this year after the conflict in Ukraine began.

And Chinese consumers in lockdown also limited sales.

Finally Apple, like many of its tech industry peers, is hiring less - and cutting costs given the tough economic climate.

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