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The biggest of the Big Tech companies will be in the spotlight Thursday as Apple (NASDAQ:AAPL) is set to deliver its fiscal third-quarter results after the close of trading.
Analysts currently estimate Apple (AAPL) will post a profit of $1.15 a share on $82.97B in revenue for quarter that ended in June. During the same period a year ago, Apple (AAPL) earned $1.30 a share on sales of $81.4B.
Needless to say, the iPhone will get a lot of attention from investors and analysts. While Apple (AAPL) has made services a major area of its focus of late, the iPhone still makes up more than half of Apple’s (AAPL) quarterly revenue, and remains the company’s engine driver. But, supply issues have hovered over the tech sector for months, and the market for mobile phones may be headed for a sales slowdown, especially among consumers.
Evidence of that came from Qualcomm (QCOM), which on Wednesday said its mobile handset business had performed well, but also gave a weaker-than-expected quarterly outlook that raised concerns about consumers’ possibly tightening their belts when it comes to buying new smartphones in the months ahead.
Dan Ives, of Wedbush Securities, said in a research note that he believes demand for the iPhone is “holding up slightly better than expected” despite supplies issues that continue to affect the tech sectors. But, Ives added that Wall Street “ultimately is looking past [the] June [quarter] numbers to the September and December quarters” and what Apple has planned for the expected iPhone 14.
Ives added that Apple’s (AAPL) services business likely performed well during the quarter, should add $80B to the company’s sales this year, and should “grow at a steady ‘double digit’ clip into 2023.”
And, when it comes down to it, Ives said Apple (AAPL) can always count on the strength of “an unparalleled installed base” of 1B iPhones worldwide and 1.8B iOS devices that “continues to remain Apple’s unique advantage over other technology stalwarts.” Ives also estimates that almost 25% of those 1B iPhones haven’t been upgraded in more than three years, which sets the company up for a potentially huge buying cycle with its upcoming iPhone 14.
Meanwhile, Apple (AAPL) reportedly recently lured a top executive from Lamborghini to come to Apple (AAPL) and help direct its electric vehicle efforts.
