Apple reported record quarterly revenue of $124 billion on Thursday, despite a global chip shortage and the shifting effects of a pandemic that weighed on other major tech players.

The better-than-expected results signaled that the technology boom of the coronavirus era may not be over, even as slowing growth overshadows companies such as lifestyle champion Netflix.

“We set records in both developed and emerging markets and saw revenue growth across all product categories except for the iPad, which we said would be in limited supply”, CEO Tim Cook told analysts.

Smartphone sales reached $71 billion, helped by strong demand for the iPhone 13 lineup, especially in China.

Overall, the tech giant posted a net profit of $34.6 billion in the first quarter, up from $28.7 billion in the same quarter last year, according to its earnings report.

The supply chain disruption that disrupted manufacturing and delivery of products to consumers hasn’t disappeared, but Apple said it expects less of an impact in the coming months.”” There are some encouraging signs,” Cook added.

The semiconductor problem – caused by a range of factors including a surge in demand following the COVID-19 pandemic and virus-related disruptions in chip production – has affected industries around the world, from tech giants to car manufacturers.

“It’s worth noting that Apple is known for its supply chain prowess, and many are wondering what actions Apple has taken and will take to better position itself this calendar year, and to what extent they could hurt margins,” said Scott Kessler of analyst firm Third Bridge.

Apple became the first U.S. company to reach a market value of $3 trillion, briefly reaching that mark in early January, the latest demonstration of the tech industry’s pandemic strength.

In a sign that Apple is still capable of selling lots of phones, it reclaimed the title of smartphone sales leader in China after a six-year hiatus, recording a record market share in the final quarter of 2021 as U.S. sanctions hit rival Huawei.

Thanks to a surge in sales between October and December, the iPhone maker accounted for 23 percent of the highly competitive market, according to a report by analyst firm Counterpoint released on Wednesday.

This put the US giant on top for the first time since the last three months of 2015, surpassing China’s Vivo.

The App Store also posted record quarterly revenue as Apple generated more than $19 billion from selling services and software to users of its coveted devices.

The record App Store revenue comes amid Apple’s defense against accusations that its control of the online store amounts to a monopoly.

However, incremental moves towards personal living will not benefit the business and the company expects growth to “slow”.

“This is due to a more difficult (comparison) as higher levels of blocking around the world last year led to an increase in the use of digital content and services,” Chief Financial Officer Luca Maestri told analysts.