When it comes to Apple's third-quarter earnings report on Tuesday, the only thing that really matters is what it says about the next iPhone.
And while Apple does not give many ̵
This means that Apple will receive a badge in the third quarter covering the three months in June. It's Apple's smallest in terms of annual sales. When the period ends in June, Apple's latest iPhones are already nine months old. Example: The iPhone 8 and iPhone 8 Plus were launched in September 2017.
During the quarter, people are no longer standing in line at the Apple stores, waiting for the next cell phones, probably in September. Last year, the iPhone X appeared in November, a few months later than normal. Apple customers want to buy the latest and best – or the older models at cheaper prices. History has shown that when Apple introduces a new iPhone, it lowers the prices of its previous models.
Third Quarter Tax Results "should not be a surprise to investors as they surprise iPhone units, gross margins, or services," said Sanford C. Bernstein analyst Toni Sacconaghi. "With the next-generation iPhones, investors' focus has shifted to the demand for iPhones in fiscal year 19."
Apple commented on the earnings report.
Cook has made an effort to expand beyond the iPhone, but Apple still gets most of its money from the popular smartphone. In the second quarter, 52.2 million iPhones were sold, which corresponds to 62 percent of sales. (Services, Macs and iPads and "other products" such as AirPods contributed to other sales). But Apple surprised almost everyone this quarter with strong results, despite fears that the slowing demand for smartphones would finally overtake the company in Cupertino, California.
At the time, Apple noted that its iPhone X, which was in stores on November 3, was the best-selling device, even though it was the most expensive phone Apple ever made. The 5.8-inch device starts at $ 999 or $ 300 more than the 4.7-inch iPhone 8 and $ 200 more than the 5.5-inch iPhone 8 Plus.
With the iPhone X, Apple redesigned its popular smartphone for the first time in three years and released the Home button to expand the touchscreen and add a new FaceID technology. It prophesied the iPhone X as "the future" of mobile. "Analysts predicted that it would drive a" supercycle "that would liven up the excitement in the sluggish smartphone market as global demand worsens as people stick to their devices for longer. It's not quite so, but sales is also not quite faltering, as some have feared.
For the third quarter, which Apple will report on Tuesday after market close, analysts estimate the company, according to Sacconaghi with 41.8 million iPhones. 03 million in the same quarter of 2017.
According to Yahoo Finance, sales are expected to increase 15 percent year-over-year to $ 52.3 billion, with earnings expected to rise from $ 1.67 to $ 2.18]. Apple is expected in September Introducing three new iPhones, including the option for a model that is significantly larger than the iPhone X, and another that is much cheaper.
But smartphones are not beautiful ll growing bus more for Apple. The "iPhone will be a stable business," noted Loup Ventures Gene Munster rather than the company's largest growth driver. Sales will not rise quarterly, as in the past, but they will increase by about 5 percent, he said, as consumers are constantly replacing their phones.
With so many people having iPhones, Apple's service business – which includes the App Store, Apple Music and iCloud – is likely to take a big step forward. In the second quarter, Apple's revenue increased 31 percent to $ 9.19 billion, while sales of iPhone units rose only 2.8 percent.
"We have the best pipeline of products and services we have ever had," Cook said during the second quarter. Call May 1.
Tuesday can give us the first insight on how big this pipeline really is.
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