AAPL
As Apple Inc. (AAPL) gears up to announce its first-quarter earnings results after the bell today, investors and analysts are closely monitoring its performance, especially its iPhone sales in crucial markets like China.
Amidst downgrades from Barclays, Piper Sandler, and Redburn Atlantic due to concerns over the iPhone 15's performance in China, Apple's stock has experienced a 3.5% decline over the past month. However, Apple's growth in services, including Apple TV+, Apple Arcade, and Apple Fitness+, remains robust, significantly contributing to its overall revenue.
Wall Street anticipates Apple to announce earnings per share (EPS) of $2.11 on revenue of $117.9 billion, as per Bloomberg. This is a potential increase from last year's EPS of $1.88 and revenue of $117.2 billion.
Despite this, revenue in Greater China, Apple's third-largest sales region, is expected to decrease from $23.9 billion to $23.5 billion, influenced by a resurgent Huawei and China's shaky economic recovery.
iPhone revenue is projected to reach $68.6 billion, an increase from last year's $65.78 billion, as per Yahoo Finance. Mac sales are also expected to improve slightly to $7.9 billion. However, iPad revenue may drop significantly, falling more than $2 billion to $7.06 billion compared to $9.4 billion the previous year. Upcoming refreshed iPads and Macs in March could boost sales in these segments.
In other areas, the Wearables, home, and accessories segment might generate $12 billion, down from last year's $13.5 billion.
The Services segment, however, is expected to rise to $23.4 billion from $20.8 billion. A key development is the launch of Apple's Vision Pro AR/VR headset, priced at $3,499, on sale on February 2. The high price tag might limit its appeal to general consumers despite its impressive features.
These earnings arrive during a difficult period for the tech giant, having seen a 4.22% decrease in its value over the past month and recently losing its title as the world's most valuable public company. With AAPL's stock fluctuating, dropping in 6 of the last 10 days, the upcoming earnings report could significantly influence its trajectory. Investors and analysts alike are keen to see how Apple navigates these challenges and seizes opportunities in the evolving tech landscape.
