Apple’s Q4 Earnings: What to Expect
As Apple prepares to release its fourth-quarter earnings report, investors are eagerly anticipating insights into the tech giant’s performance. This quarter marks the first with sales from the highly anticipated iPhone 16 launch in September.
The December Quarter: A Critical Period
The December quarter is Apple’s largest seasonal sales period, and investors will be closely watching for signals about the current iPhone sales cycle. Will Apple Intelligence, rolling out in pieces over the next few months, drive revenue growth? Analysts are already pointing to mixed signs, with some citing lackluster demand indicators and others waiting for the software release to spark interest.
iPhone Sales: A Mixed Bag
Despite no reported iPhone build cuts, analysts are characterizing iPhone demand as mixed. The rollout of Apple Intelligence features, which will add support for multiple languages next year, is expected to boost sales. However, U.S. carriers seem unexcited about an upgrade cycle, and sales in greater China, a critical market, were weak in the previous quarter.
Wearables: A Potential Bright Spot
Apple’s wearables category, including the Apple Watch and AirPods, may offer some respite. New models, such as Apple Watches with bigger screens and low-end AirPods with noise canceling, could reverse the trend of declining sales.
Revenue Growth Expectations
Analysts expect around 5.6% revenue growth, reaching approximately $95 billion in revenue, in line with Apple’s August signals. The services unit, which includes everything from subscriptions to extended warranties, is expected to continue its steady growth, rising about 14%.
A Changing of the Guard
This report will also mark the last with CFO Luca Maestri, who will step down on January 1 and be replaced by Kevan Parekh. Maestri will retain oversight of certain teams, including IT, real estate, and security.
What’s Next for Apple?
As Apple navigates the competitive landscape, investors will be watching closely for signs of growth and innovation. Will Apple Intelligence prove to be an inflection point, driving sales and revenue? Only time will tell.
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