Apple's earnings a bright spot amid tech sector gloom

STORY: Apple surprised Wall Street on Thursday (October 27) with better-than-expected revenue and profits – one of the few bright spots in a tech sector hit by spending cutbacks due to inflation.

Apple’s fiscal fourth quarter was saved by its oldest technology – its Mac computers – while its star, the iPhone, stumbled.

Overall, the tech giant said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion.

Mac sales of $11.5 billion were far ahead of analyst estimates.

And though iPhone sales were not as strong as some analysts expected, they were still a record for the September quarter, and topped the company’s own forecast, according to Apple Chief Financial Officer Luca Maestri.

By contrast, Canalys data shows, the overall global smartphone market dropped 9% for the just-ended quarter – a third straight decline this year.

Apple's results showed some resilience in the face of a weak economy and strong U.S. dollar that has led to disastrous reports from many tech companies.

In the China market, which has experienced a sharp economic slowdown, Apple reported fourth-quarter sales of $15.5 billion.

That’s a gain from the previous quarter of nearly $1 billion dollars.