Analysts anticipate Apple to present a fourth consecutive decline in quarterly revenue when it reveals its earnings on Thursday afternoon. Predictions have estimated that their revenue will total $89.28 billion, a drop of approximately 1% compared to the same quarter in the prior year.
Analysts are anticipating that Apple will report its fourth consecutive quarterly revenue decline with $89.28 billion in sales at the end of Thursday. Market shares of the tech giant have risen by 32.5% this year, but investors are interested in seeing growth occurring again. The December quarter, being Apple's biggest of the year, is expected to be at $122.97 billion, signifying a 5% increase from the same time in 2022. On the other hand, Apple warned in August that they expect sales from their Mac and iPad divisions to experience a "double digit" percentage decrease due to unfavorable comparisons and a strong dollar. As of now, analysts such as Erik Woodring and Samik Chatterjee have noted that the demand for the iPhone 15 Series in China has been declining and global consumer spending has been less than expected.
An analysis of smartphone sales by a market research firm has revealed that iPhone 15 had a slow start in China this year. This has prompted Wall Street analysts tracking Apple to express concern that Huawei’s renewed competition in the company's third-largest market may be impacting the iPhone’s competitiveness. Deepwater Asset Management founder Gene Munster commented on CNBC earlier that he believed the iPhone would have a dull performance in China in the September quarter. Opinions vary on whether the Huawei challenge is a temporary or ongoing issue. Martin Yang of Oppenheimer noted in a report that Huawei’s presence may be a headwind for Apple in 2021. Some assessments of the premium Huawei device have indicated that it is technically inferior, proclaiming that the pressure from Huawei is likely to ebb off in the future fiscal year. News of China’s government banning foreign technology in offices has rocked investors and raised the possibility of Chinese citizens shunning Apple due to a mix of patriotism and potential government regulations. Citi analyst Atif Malik noted in a statement that the unexpected launch of Huawei’s Mate 60 Pro alongside the ban on foreign phones has led to worries among investors concerning Apple’s market share in China.
Investors in other regions are interested to find out if the iPhone 15 is selling as well as in past years. Analysts refer to the success of each year's iPhone sales as the "cycle." The upgrades that the new iPhones have include a light titanium body, a longer telephoto lens, and a USB-C charging port. Tim Long from Barclays commented, "We are in the camp that [iPhone 15] is not a good cycle on demand weakness and elongation of replacement cycles." Analysts are monitoring shipment times on Apple's site and third-party estimations for iPhone sales, but they would like to have more information from Tim Cook, Apple's CEO, on the sales results or Apple's unofficial guidance for the December quarter. Besides, some analysts are indicating that it may be hard to acquire some of the pricier "Pro" models, which may cause some sales to be delayed until the January quarter. Woodring, a Morgan Stanley analyst, is taking a wary approach to the December quarter given the possible supply shortages and customers' fickle spending, expecting Apple to provide revenue predictions that are below normal seasonality and consensus expectations.
Analysts are predicting a 26% decline in sales for Apple's Mac division this quarter with an estimated $8.5 billion. The company has tried to inject fresh energy into the business with the release of new MacBooks with chips as of October 30. Despite this, the services division appears to be a bright spot, with an estimated $21.42 billion in revenue anticipated, representing an 11% year-over-year increase. Wall Street is expecting the company to report $89.28 billion total revenue and $1.39 per share earnings. Furthermore, they anticipate the following from Apple's product lines: iPhone revenue will reach $44 billion, iPad revenue at $6.14 billion, Mac revenue at $8.5 billion, other products at $9.4 billion, and services at $21.42 billion. Nevertheless, the Google trial in Washington DC casts some uncertainty on the reported $19 billion per year that Google pays Apple to be the default search engine on iPhones.
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