Apple shares moved higher in pre-market trading ahead of its fourth quarter earnings after the closing bell, with investors likely focused on the tech giant’s outlook for holiday sales of its signature iPhone…
Apple is likely to post its fourth consecutive quarterly revenue decline after the close of trading, with analysts looking for an overall sales tally of $89.284 billion, with stronger, high-margin services sales powering a 7.7% increase in its bottom line, which is forecast to come in at $1.39 per share.
Key to the update, however, will be Apple’s holiday quarter outlook for sales of the iPhone 15, which launch in late September and thus will only have a minimal impact on the group’s fiscal fourth quarter sales.
“The elephant in the room this quarter is clearly China demand around iPhone 15 units which appears to have slowed the last month after coming out of the gates strong with pre-order activity,” said Wedbush analyst Dan Ives, who carries an ‘outperform’ rating with a $300 [recte $240] price target on Apple stock.
“To this point, we believe Cook will have a generally positive tone on the call around China iPhone demand for the December quarter despite massively negative Street sentiment building around the Cupertino story,” he added. “In a nutshell, we believe over 100 million iPhones in China alone are in the window of an upgrade opportunity and that remains the golden goose on this cycle for Apple.”
