By Yasin Ebrahim

Apple (NASDAQ) reported stronger-than-expected results for its fiscal first quarter. iPhone 13 sales increased after cutbacks in chip supplies.

Apple shares increased more than 5 percent in trading after hours following the announcement.

Apple reported EPS of $2.10 based on $123.95 billion in revenue. Investing.com polled analysts and predicted an EPS of $1.89 for revenue $118.68 billion.

iPhone revenues, about half the total revenue, rose from $65.60 to $71.6billion a year ago, surpassing estimates of $68.34billion.

This higher than expected figure is due to consumers who rushed for new products such as the iPhone 13 and Macbook Pro.

Revenue from Apple’s service business including Apple News, Apple TV+ and iCloud, grew to $19.52 billion from $15.76 billion, and topped estimates of $18.61 billion.

“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices,” Apple said in a statement.

Apple CEO Tim Cook spoke out following the release of the earnings reports. He praised the quarter’s growth and emphasized the importance of improving supply chain issues to help boost growth for the March quarter.

Cook spoke to CNBC about the quarterly growth, saying that they were proud of it despite the supply constraint. There is some good news, but it is not as good as the bad news. The December quarter was less than the prior quarter. However, we expect March to be worse than that quarter. That’s because of supply restrictions.

You can keep up-to date on the latest earnings reports by visiting Investing.com’s earnings calendar