Apple to report Q1 earnings as global smartphone sales growth slows - Yahoo Finance

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Apple (AAPL) is acceptable to merchandise its Q1 net aft the closing doorbell connected Feb. 2, and investors and analysts are looking to spot conscionable however overmuch COVID lockdowns successful China impacted iPhone income during the vacation season.

Here’s what analysts are expecting from the company, arsenic compiled by Bloomberg, compared to however Apple performed successful the aforesaid 4th past year.

Revenue: $121.1 cardinal expected versus $123.9 cardinal successful Q1 2022
Adj. Earnings per share: $1.94 expected versus $2.10 successful Q1 2022
iPhone revenue: $68.3 cardinal expected versus $71.6 cardinal successful Q1 2022
Mac revenue: $9.72 cardinal expected versus $10.8 cardinal successful Q1 2022
iPad revenue: $7.7 cardinal expected versus $7.2 cardinal successful Q1 2022
Wearables: $15.3 cardinal expected versus $14.7 cardinal successful Q1 2022
Services: $20.4 cardinal expected versus $19.5 cardinal successful Q1 2022

Apple has outperformed overmuch of its Big Tech cohort implicit the past 12 months, with shares disconnected conscionable 16% arsenic of Wednesday afternoon, compared to Microsoft (MSFT), which is disconnected 18%, and Google genitor Alphabet (GOOG, GOOGL), which is disconnected 25%. But it hasn’t been without its ain issues.

Throughout November and December, Apple faced important headwinds from COVID lockdowns and idiosyncratic protests astatine shaper Foxconn’s installation successful Zhengzhou, China. The plant, which employs 200,000 workers, produces the bulk of Apple’s iPhone 14 Pro and iPhone 14 Pro Max handsets.

The iPhone 14 Pro and iPhone 14 Pro Max, which commencement astatine $999 and $1,099, respectively, are 2 of Apple’s astir important devices. Their steeper prices assistance boost the mean iPhone selling price, driving higher revenues for the tech giant.

According to IDC’s Worldwide Quarterly Mobile Phone Tracker, shipments of Apple’s iPhone fell 14.9% year-over-year, from 85 cardinal units successful Q4 2021 to 72.3 cardinal units successful Q4 2022.

Apple CEO Tim Cook speaks during an merchandise motorboat lawsuit successful San Francisco, Wednesday, March 7, 2012. Apple is expected to uncover a caller iPad exemplary astatine Wednesday’s lawsuit successful San Francisco. (AP Photo/Jeff Chiu)

But it’s not conscionable the iPhone that’s faced trouble, though. During Apple’s Q4 net call, Apple CFO Luca Maestri said that Apple expects astir 10 percent points of antagonistic year-over-year interaction from overseas speech headwinds.

What’s more, helium said helium expects Mac gross to “decline substantially twelvemonth implicit year. Services revenue, meanwhile, is expected to grow, but look overseas speech headwinds, arsenic well.

According to UBS expert David Vogt, Apple’s 2nd 4th could besides look difficulties.

“Although we judge the marketplace is sufficiently cautious connected December 4th results, we judge determination is humble downside hazard heading into the March outlook,” helium wrote successful a caller capitalist note. “While we don't expect the resumption of elaborate guidance emblematic of Apple net anterior to Covid, we expect the commentary to beryllium cautious regarding merchandise request crossed the board.”

Despite the imaginable for slowing sales, Apple has inactive managed to debar ample standard layoffs, dissimilar its peers including Microsoft, Google, and Amazon (AMZN).

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