Apple Inc’s sales for the holiday quarter beat estimates thanks to high demand over iPhones and growing subscribers despite chip shortage, as it said that it has been relaxing costs for over $ 6 billion in revenue.

In , Apple shares surged around five percent, erasing half of their year's losses.

According to analysts, the iPhone maker, which has the world's greatest market capitalization, has handled supply-chain problems including plant shutdowns and shipment delays caused by the pandemic better than any of its top competitors.

Almost the holiday quarter, more customers wanted iPhones, iPads, and other gadgets than Apple had to offer, losing the company over $6 billion in sales, or exactly what it had predicted. Apple, on the other hand, which is many part suppliers' largest customer, leveraged its purchasing clout to compel those manufacturers to ship enough devices to fuel record sales in the iPhone, Mac, and wearables and accessories divisions.

Chip shortages, according to Apple, are primarily hurting older models of the company's devices, and have impacted iPad sales in particular.

Apple's booming service subscription sales, including music, TV, and fitness, are also helping to cushion the pain of low device supply. The business announced that it now had 785 million paying users across at least seven subscription offers, up 40 million from the previous quarter and assuaging investor concerns about rivals such as Netflix Inc. halting growth.

iPad sales declined 14% to $7.25 billion, vs analyst expectations of $8.2 billion, confirming industry concerns that the tablets would be given poor priority for any rare parts. All of the other main segments outperformed Wall Street expectations.

Apple's revenue from Mac computers increased by 25 percent to $10.9 billion. Wearables and accessories sales increased 13 percent to $14.7 billion, including the company's new AirTag monitoring device. Revenue from services increased by 24 percent to $19.5 billion.

Apple's overall fiscal first-quarter revenue was $123.9 billion, up 11 percent from the previous year and higher than the $118.7 billion predicted by analysts. Profit was $34.6 billion, or $2.10 per share, compared to $31 billion and $1.89 per share expected by analysts.