Apple expected to report higher revenue in earnings release Thursday

Apple is anticipated to announce revenue growth when it releases its fiscal third-quarter earnings report on Thursday. The company is likely benefiting from increased iPhone sales in China, driven by aggressive discounts, and strong iPad performance due to a recent design refresh. These factors are expected to contribute to a positive financial outcome for the quarter.
Aditya Soni for Reuters:
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Sales of the iPhone, which account for nearly half of Apple’s revenue, are expected to have decreased by 2.2% in the three months ended June, a big improvement from the 10.5% decline in the second quarter, according to LSEG data.
Analysts said the worst may be over for the iPhone.
They expect a strong upgrade cycle for the iPhone 16 series likely to come in September after Apple said in June it was gearing up to introduce AI features across its devices.
“The company’s fate is turning around in the region,” said CFRA Research analyst Angelo Zino, adding that Apple’s AI plans should appeal to customers in the feature-sensitive market.
After lagging rivals Microsoft and Alphabet’s Google in the AI race for months, Cupertino, California-based Apple unveiled plans to bring OpenAI’s ChatGPT to its devices and burnish its suite of apps including Siri with new “Apple Intelligence” technology.
“Apple’s AI strategy announcements were very well received globally and helped improve the declining consumer perception of the brand and generate excitement,” said Nabila Popal, research director with IDC’s Worldwide Tracker team. “I won’t be surprised if there was a spike in iPhone 15 Pro and Pro Max models in the April-June quarter – that are Apple Intelligence ready.”

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MacDailyNews Take: Expect strong, double-digit Services revenue growth.
MacDailyNews Note: Apple is scheduled to release fiscal third quarter results and business updates on Thursday, August 1, 2024, after market close, right around at 1:30 p.m. PT / 4:00 p.m. ET. As always, we’ll have the results for you as soon as they are release. The company will hold a conference call with analysts thirty minutes later at 2:00 p.m. PT / 5:00 p.m. ET, which we’ll cover with live notes as usual.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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