In a surprising turn of events, Apple Inc. has reported better-than-expected fiscal first-quarter results, defying predictions of a lackluster performance. Gene Munster, a renowned analyst and managing partner at Deepwater Asset Management, believes that the tech giant’s “mess wasn’t as big as it looked.”

Munster’s comments come as a welcome respite for Apple investors, who had been bracing themselves for a disappointing quarter. The company’s shares had taken a hit in recent months, amidst concerns over slowing iPhone sales and supply chain disruptions.

However, Apple’s Q1 results tell a different story. The company reported revenue of $123.9 billion, beating analyst estimates of $119.8 billion. Net income came in at $34.6 billion, exceeding expectations of $31.4 billion.

Munster attributes Apple’s better-than-expected performance to a combination of factors, including the company’s diversified product portfolio and its ability to navigate global supply chain challenges. “Apple’s mess wasn’t as big as it looked,” he said in an interview. “The company has done a great job of managing its supply chain and delivering products that consumers want.”

The iPhone maker’s results were also boosted by strong sales of its services segment, which includes Apple Music, Apple TV+, and Apple Arcade. The segment generated $19.5 billion in revenue, up 24% from the same quarter last year.

Munster believes that Apple’s services segment will continue to drive growth for the company, as it expands its offerings and attracts new subscribers. “Apple’s services business is a key differentiator for the company,” he said. “It provides a steady stream of revenue and helps to offset any volatility in the hardware business.”

Overall, Apple’s Q1 results are a testament to the company’s resilience and adaptability in the face of challenging market conditions. As Munster noted, “Apple’s mess wasn’t as big as it looked,” and the company is well-positioned for future growth and success.