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Apple is gearing up to unveil its second fiscal quarter earnings post-market close, with investors treading cautiously amidst concerns over sales growth and market performance. Despite Apple’s projection of sales similar to last year’s $94.84 billion, analysts are bracing for flat iPhone sales.
Here’s a breakdown of the expectations from analysts for Apple’s second fiscal quarter:
- Earnings per share: $1.50
- Revenue: $90.01 billion
Here’s the estimated performance of Apple’s business segments for the March quarter:
- iPhone revenue: $46.00 billion
- Mac revenue: $6.86 billion
- iPad revenue: $5.91 billion
- Wearables, home, and accessories revenue: $8.08 billion
- Services revenue: $23.27 billion
Additionally, analysts are closely monitoring Apple’s forecast for the current quarter, with projections of approximately $83.23 billion in sales, marking a 1.8% annual growth. However, concerns linger regarding weakening demand for the iPhone 15 and the broader market trend in China.
In China, Apple’s third-largest market, sales witnessed a 13% decline in the previous quarter, raising concerns about deteriorating market conditions. Increased competition from local players like Huawei, coupled with reports of Chinese government agencies discouraging the use of foreign devices, has added to the uncertainty surrounding Apple’s performance in the region.
Analysts remain cautious, attributing the current weak cycle in China to cyclical rather than structural factors. Conflicting data points on iPhone demand in China further contribute to the ambiguity surrounding Apple’s outlook.
While expectations for the quarter are subdued, investors are eagerly awaiting Apple’s assessment of the current quarter’s prospects, which could sway market sentiment. Additionally, updates on Apple’s capital return plans, including share buybacks, are anticipated during the earnings call.
Despite the challenges, analysts retain optimism about Apple’s long-term prospects, citing historical volatility in the region and the potential for recovery in strong iPhone cycles.
