Tim Cook, chief executive of Apple Inc., speaks during the “First Tool-In” ceremony at the TSMC facility under construction in Phoenix, Arizona, Tuesday, December 6, 2022.
Caitlin O’Hara | Bloomberg Getty Images
Apple fiscal report of first quarter earnings after the bell. Analysts expect the iPhone maker to post its first annual revenue decline since 2019. That’s what Wall Street expects, according to Refinitiv consensus expectations.
- results: $121.19 billion
- Earnings per share: $1.94 per share
- iPhone revenue: $68.29 billion
- iPad revenue: $7.76 billion
- revenue Mac: $9.63 billion
- Other product revenue: $15.23 billion
- Service revenue: $20.67 billion
The main focus for investors is the company’s December quarter earnings. In November, Apple issued a rare warning explaining that production problems in China stemming from the Covid restrictions would result in lower-than-anticipated shipments.
The data point prompted many analysts covering the stock to cut their estimates.
Customers in many regions noticed that Apple’s shipping time for the top-of-the-range iPhone 14 Pro dropped to a month during the quarter, compared to a typical lead time of under a week, meaning the premium iPhone is a difficult Christmas gift for people. at.
Now investors are looking for two answers on Thursday: How much will Apple sell due to production problems, and will those who missed the iPhone 14 Pro in December wait until 2023 to choose one, which will effectively push sales. quarter 1 to quarter 2?
Investors may get the answer to the second question from Apple’s guidance. Apple has not provided guidance for 2020, citing uncertainty caused by the pandemic. However, Apple’s management typically provides a few data points that give analysts a sense of how the quarter will fare.
Analysts expect Apple to report sales of $98 billion in the March quarter, or year-over-year growth. If Apple’s data points show that it may be below that number, investors may question whether Apple can continue to outperform the market and whether declining consumer confidence may be hurting its business.
The smartphone market and the PC market are both in the midst of a multi-year slowdown, with sales falling in 2022. Analysts believe that Apple has done better than many of its competitors despite the fall in shipments, but if consumer confidence is eroded, the end. Apple’s premium phone and computer sales will slow down.
In addition to hardware, Apple’s service business will be the focus after the bell. Several data points in the December quarter, including Apple’s own App Store payments, suggest a slowdown in App Store growth. The App Store is one of the largest components of Apple’s services business, which is expected to achieve sales of $20.67 billion during the quarter, which will represent a growth rate of almost 6%.