Apple set for biggest revenue surge in two years powered by iPhone demand in China
Apple is poised to announce its strongest quarterly revenue growth in two years on Thursday. The company’s iPhone sales, particularly in China, have performed better than usual towards the end of the annual release cycle. Investors are eagerly awaiting the results, as they will offer early insights into the demand for the recently launched iPhone 16 series.
Reuters:
But the focus will be on executive commentary for its fiscal first quarter amid fears that releasing its Apple Intelligence features at a slow pace could dampen a much-awaited AI-led “super-cycle” for Apple’s biggest seller.
The company is playing catch-up in AI as Android smartphone rivals such as Samsung Electronics and software rivals such as Microsoft aggressively roll out applications aimed at tapping the generative AI boom. [Apple] on Monday started a limited rollout of the [Apple Intelligence] features to U.S. customers in English, weeks after the iPhone 16 went on sale.
In the September quarter, Apple is expected to report a 3.8% increase in iPhone sales, according to analysts’ estimates compiled by LSEG. That would snap two quarters of decline.
Its overall revenue is expected to rise 5.7% in the July-September period, which makes up its fiscal fourth quarter, LSEG data showed.
Revenue from Greater China is expected to rise 6.6%. Some iPhone models, including a version of the iPhone 16 Plus, had discounts of 10% on online retail platform Pinduoduo ahead of the model’s official release, according to local reports.
Sales of iPad are set to rise 10.1% to $7.09 billion after a 23.7% jump in the prior three months, powered by launches of more powerful versions of the tablet. The services business – which includes its App Store and usually outpaces growth in Apple’s devices – is expected to see a 13.3% rise in sales, a tad slower than the prior quarter.
MacDailyNews Take: The analysts’ consensus expects Apple to report revenue of $94.56 billion and EPS of $1.53. Apple’s all-time record for fiscal Q4 is $90.1 billion, set in fiscal Q222 (Q423 revenue came in at $89.5 billion).
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