Apple is about to lead Wall Street in the hunt for the iPhone 15
Apple Inc. leads Investors are on a metaphorical search every year, which should start later this week.
Wall Street will be rewarded on Thursday for listening to Apple’s corresponding earnings call
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The least exciting quadrant, as it tends to contain clues about the more interesting stretch ahead. While Apple will discuss spring sales, the consumer electronics giant is also expected to provide some sort of forecast for the current quarter — and that period often contains the two weeks or so of next-generation iPhone model sales.
Will Apple’s September quarter actually have the iPhone 15 this time? This is a key question, especially after BofA Securities recently warned that the first sales of the iPhone 15 could be held back by a few weeks due to production issues, implying that sales may not begin until the beginning of the December quarter.
See more: Waiting for iPhone 15? You may have to hold out longer than you think.
All of this brings us back to Apple’s predictions, which are hard to parse these days. Before the pandemic, Apple had been sharing numerical projections of total revenue and investors were scrambling to base the iPhone’s expected arrival date on that number. However, when the pandemic began, Apple abandoned traditional guidance and instead began giving hints about how revenues were accruing compared to recent periods.
It’s possible that Wall Street will understand a bit about Apple’s plans to launch the next iPhone when the company drops off those breadcrumbs on Thursday afternoon, although the mystery may not mean much in the long run. Apple probably won’t make the iPhone ready for sale at the end of September like it did last year, but loyalists will likely be willing to wait a few weeks to get their hands on the new device.
Hardware guidance may miss Street’s estimates due to iPhone 15 delays, according to Barclays analyst Tim Long “but it is not clear whether it matters for the stock as the bulls may expect a stronger performance (Dec quarter).”
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Of course, there are other factors that go into the September quarter outlook as well, and Wall Street will be watching the company’s comments for signs of stronger smartphone demand in general and in China when Apple reports its third-quarter financial results after Thursday’s closing bell.
“While the recovery in global smartphone demand is less than expected, the premium market (and thus Apple) appears to be less affected,” Sydney Hu, an analyst at Deutsche Bank, wrote recently.
Harsh Kumar of Piper Sandler feels market concerns about the resilience of iPhones in China but says they are “a bit overblown”.
“In our conversations, most investors feel that a soft China could pose a risk to numbers and further commentary, but we feel that Apple’s position in China is on a solid footing and that the company is likely to see only a small decline, if any.” in its iPhone sales. “We also believe that if there has been any weakness in sales from China it is likely to be easily offset by the strong sales momentum in India.”
is readingApple has an exciting $40 billion opportunity ahead of it
Analysts tracked by FactSet expect Apple to post $90.15 billion in sales for the September quarter, essentially flat with prior year levels. They also expect revenue of $81.74 billion in the June quarter, down from $82.96 billion in the same period a year earlier.
In hardware, analysts estimate $70.06 billion in revenue for the September quarter, down from $70.96 billion a year earlier. They accounted for $61.89 billion in revenue for the June quarter, down from $63.36 billion.
The FactSet consensus currently expects $44.55 billion in iPhone revenue in the September quarter, up from $42.63 billion a year earlier. The iPhone revenue forecast for the June quarter is $40.23 billion on average, down from $40.67 billion.
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