Date: 10/31/2024, After Market Close
IntroductionAs the world’s biggest company, worth $3.5 trillion, Apple’s (AAPL) Q4 earnings are a big deal for the tech world and broader market. Investors are looking at revenue growth, new AI features for iPhones, and how Apple is holding up against competition in China. Let’s dive into what to watch for in this upcoming report.
Apple’s FundamentalsApple’s Q4 earnings are expected to be solid, with an 8.9% increase in earnings and a 5.38% boost in revenue compared to last year. Gross margins are estimated to be a healthy 46.02%, just slightly up from last year’s 45.17%. The iPhone is still Apple’s big moneymaker, making up nearly two-thirds of revenue last quarter, with this quarter’s iPhone sales expected to reach $44.91 billion. There’s also some action in Apple’s Services and iPad segments, which are both set to show steady growth.
Apple Intelligence Roll OutApple’s latest AI features just released for the iPhone, and the big question is if this new tech will spark a jump in iPhone sales. Rolling out right on time for the holiday season, these updates could help drive demand for the iPhone 16 as customers start exploring the new capabilities. Investors are keeping an eye out to see how much these upgrades excite consumers and boost Apple’s sales in the near term.
iPhone and ChinaApple’s holding its ground in China, but competition is heating up with brands like Huawei and Vivo gaining traction. Apple is the second-largest smartphone player in the region, with a 15.6% market share according to IDC market intelligence, and this quarter’s iPhone shipments are expected to reach over 50 million units. With Singles Day—a major shopping event in China—right around the corner, Apple has a chance to strengthen its position and capture a nice sales boost in this critical market.
Q4 Earnings EstimatesAdjusted EPS: $1.59Q4 ’23 EPS: $1.46Q4 Revenue EstimatesRevenue: $94.31BQ4 ’23 Revenue: $89.50B
*Estimates and Data retrieved from Bloomberg 10/15/2024 More By This Author:Speed Bumps Along The Bitcoin Adoption Curve
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