The most valuable tech company in the world, Apple, which receives half of its sales from the iPhone, claimed that its quarterly earnings dropped one percent to $81.8 billion. To $19.88 billion, profit rose two percent.

Apple narrowly outperformed Wall Street estimates for sales and profit for the quarter, despite the fact that it did not enjoy the rapid growth that investors have grown accustomed to expecting over the years and that the sales fall was the third of its fiscal year.

Unit sales of smartphones have decreased for two years running, but Apple has spared the worst of the downturn since wealthy consumers are still purchasing expensive iPhones.

The most recent evidence that the top tech businesses have recovered from last year's collapse is Apple's financial performance. Alphabet, the parent company of Google, and Meta, the parent company of Facebook, both announced double-digit rise in profits last week. Amazon reported nearly twice the profit anticipated by Wall Street, while Microsoft on Wednesday reported a record quarterly profit thanks to a spike in cloud computing revenues.

Due to sluggish digital advertising, e-commerce, and computer sales, the tech sector struggled during much of 2022. Millions of workers were laid off by Meta, Alphabet, Microsoft, and Amazon as a result of the slump, and businesses all around Silicon Valley were forced to reduce employee perks like free laundry services.

Apple managed to escape layoffs, but it now has to cope with how much the epidemic accelerated the company. As more individuals started working from home, sales of iPads and Macs skyrocketed, but during the past year, fresh purchases of tablets and laptops have fizzled. According to the firm, iPad sales dropped 20 percent in the most recent quarter to $5.79 billion, and Mac sales dropped seven percent to $6.84 billion.

Following the company's forecast that sales in the current quarter would be similar to those in the April to June period, Apple's share price dropped by around two percent in after-hours trading. This is because double-digit drops in Mac and iPad sales were offset by sales of accelerating iPhones and software.

Sales of iPhones brought in $39.67 billion for the corporation in the June quarter, a two percent decrease from the prior year. According to technology research company Counterpoint Research, iPhone sales in China grew seven percent during the quarter despite the country's overall smartphone industry sales declining four percent to their lowest levels since 2014. As a result, Apple's sales in China increased by eight percent.