Apple profit declines nearly 11%

By Clare Duffy, CNN Business

    (CNN) -- Even the world's most valuable tech company isn't immune to the more challenging global economic climate.

Apple on Thursday reported its profits declined by nearly 11% in the three months ending in June from the same period a year ago as the company works through an economic downturn and supply chain disruptions in China due to the country's zero-Covid policy.

The iPhone giant reported revenue of $83 billion, up 2% from the same period in the prior year. Although it was the highest revenue figure the company has posted during its fiscal third quarter, it marked a significant slowdown in growth from its 36% year-over-year revenue increase in the year prior.

Sales in Greater China, once one of the company's most promising regions, dipped by about 1% during the quarter.

Still, Apple exceeded Wall Street's expectations for both its sales and profits. Shares of Apple rose nearly 4% in after-hours trading Thursday following the results.

"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment," Apple CFO Luca Maestri said in a statement.

Apple's results come as a number of tech companies have struggled to maintain strong growth in the face of rising inflation and interest rates, fears of a looming recession and the fallout from the ongoing war in Ukraine.

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