Amid chip shortages_ Apple sales on right track

Global tech giant Apple sales soared in the key Christmas shopping season_ despite constraints due to a global shortage of microchips.

Sales at the iPhone giant rose 11% to a record $123.9bn (£92.6bn) in the October to December period_ beating forecasts.

Shares jumped more than 4% in after-hours trade_ as the report suggested the firm's pandemic boom is continuing.

Apple has seen purchases skyrocket during the pandemic as people spend more time online.

The firm's market value briefly hit the $3tn milestone in early January though its share price has slipped more recently amid weeks of market turmoil.

Sales boom
Executives had warned last year that the global shortage of microchips might limit its sales_ but the firm's quarterly update to investors on Thursday showed it brushing past those concerns.

Mac sales were up 12%_ while iPhone sales jumped 9%.

With few rival phones debuting in the holiday shopping season_ the iPhone 13_ which started shipping days before the quarter began_ led to worldwide phone sales revenue for Apple of $71.6bn.

Revenue from the company's services unit - which includes Apple Pay_ the App store and its TV streaming service - was up more than 23%.

The iPad_ which executives said was particularly affected by the supply issues_ was the one product that showed weakness_ with sales slipping 14%.

Demand in China_ where sales rose 20%_ propelled the firm's growth in the quarter.

Apple said profits were $34.6bn_ up 20%.

The company_ which has more than 1.8 billion active devices in the market_ has been able to put pressure on suppliers and manufacturers to produce big quantities of iPhones and other devices despite shortages brought on by the pandemic and most recently the Omicron variant.

"They've navigated the supply chain better than everybody_ and it's showing in the results_" said Ryan Reith_ who studies the smartphone market for industry tracker IDC.

Chief Financial Officer Luca Maestri said that supply constraints would decrease in the current quarter_ which ends in March.

"The level of constraint will depend a lot on other companies_ what will be the demand for chips from other companies and other industries. It's difficult for us to predict_ so we try to focus on the short term_" he said.