Apple Pal (AAPL) is set to report fourth-quarter earnings after the market closed on Thursday. Following the unveiling of the company’s highly anticipated 5G-enabled smartphone earlier this month, these results are set to be eclipsed by the tech giant’s outlook for the current quarter and next year.
Here are the key results expected from Apple’s report based on consensus estimates compiled by Bloomberg.
Apple’s service offerings, such as Apple Plus News, Apple Plus TV + and iCloud, account for a growing share of the company’s overall sales and are expected to grow again in the fourth quarter. Consensus analysts expect service revenue to reach .8 13.87 billion, up from 13 13.16 billion in the third quarter and 12 12.5 billion in the fourth quarter of last year.
Given the increase in demand for these products during the epidemic, computer and wearable revenue is also expected to increase in the last quarter and 2019. The company also launched new versions of the iPad and Apple Plus in September, before the end of the fourth quarter.
Revenue from the iPhone, however, declined in the fourth quarter of this year compared to the same period compared to 2019, with consumers waiting for the release of the next pay-per-view of iPhone devices. Apple unveiled the iPhone 12 and iPhone 12 Pro – the first suite of 5G-enabled handsets from the company so far – at an event in early October or about a month later, usually releasing its new phones every year due to interruptions. Nationwide epidemic.
“The September quarter is a major event for investors, with demand growth for the iPhone 12 projected for the holiday quarter and the rest in 2021,” wrote Dan Ives, an analyst at Wadbush Securities, which rated Apple’s stock as outperforming. In a note. “We expect some directional commentary from Cook around the pre-order demand for the iPhone 12, which, based on our analysis, tracks more than 2x of its predecessor the iPhone 11 so far, coming out the door.”
Ives added that he believes about 350 million of the 950 million iPhones installed worldwide are currently in the “upgrade opportunity window”, which could lead to an “unprecedented” round of iPhone-buying for the tech company this year.
Promotional activity around the iPhone 12 has also been more aggressive than in previous cycles, likely to boost sales during the epidemic. Carriers, including AT&T, T-Mobile and Verizon (the parent company of Yahoo Finance), have many trades to encourage customers to switch to new handsets. -Offer credit.
Speaking of Apple’s stock, Wall Street can predict the success of the iPhone 12 launch by early next year, when more data becomes available on its debut. That could serve as a near-term pullback for stock appreciation, according to at least one analyst.
“Combined with the elevated valuation, we believe that the shares are likely to remain in the range until investors receive clarification about the initial success of the iPhone 12 launch.” . “However, with additional data points expected by the end of 2020, we believe that investors generally reserve judgment on success until the company reports its December results in late January / early February 2021. “
Apple Pal’s stock has risen 53% year-over-year, surpassing the S&P 500’s only 1.8% growth.
The post will be updated with Apple Pal’s financial fourth quarter results after the market closes on Thursday.
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Emily McCormick is a Yahoo Finance reporter. Follow her on Twitter: @emily_mcck
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