Apple to report Q4 earnings after market cap touches $4 trillion
Apple (AAPL) will release its fourth quarter earnings after the bell on Thursday, giving investors and analysts their first glimpse into how well the company’s latest iPhones are selling just days after its market cap touched the $4 trillion mark.
According to Counterpoint Research, iPhone 17 sales jumped 14% compared to iPhone 16 sales in the US and China during the first 10 days of availability.
The iPhone 17 lineup includes a number of improvements over the iPhone 16, including design enhancements for the iPhone 17 Pro and Pro Max. Apple also did away with its iPhone Plus model in favor of the iPhone Air, a new entry into the iPhone family that sports a thinner, lighter design.
Apple also unveiled a new MacBook Pro and iPad Pro, both powered by the company’s M5 chip, as well as new Apple Watches and AirPods. The Vision Pro also got the upgraded M5 chip.
For the quarter, Apple is expected to report earnings per share of $1.77 on revenue of $102.1 billion, according to Bloomberg consensus estimates. That’s up from the $1.64 and $94.9 billion the company saw last year.
Read more: Live coverage of corporate earnings
Apple’s iPhone revenue is anticipated to come in at $49.3 billion, a 6.7% increase from the $46.2 billion the segment generated in Q4 2024.
Importantly, Apple’s fourth quarter accounts for a small portion of iPhone 17 sales, as the phones were only on sale for a few weeks ahead of the end of the financial period. Still, any revenue impact helps to provide guidance for the year ahead.
Services revenue, Apple’s second-largest business by revenue, is expected to bring in $28.2 billion, up 12% from last year. The iPad and Mac segments should see revenue of $7 billion and $8.6 billion, respectively. Wearables revenue is anticipated to slide 4.5% to $8.6 billion in the quarter.
Apple’s China revenue is expected to grow 9% to $16.4 billion.
While Counterpoint said iPhone sales have jumped year over year, Jefferies analyst Edison Lee said that momentum is slowing.
“Our tracking shows continued shortening in lead time in all models and markets, with only a few exceptions,” Lee wrote in an investor note. Lead time refers to the gap in time between when an iPhone is ordered and delivered.
When more customers than anticipated order phones, lead times increase as Apple works to keep up with demand. Short lead times mean iPhone sales are within or below expectations.
“The [iPhone 17 Pro’s] lead time has almost disappeared and [iPhone Air] in China also saw lead time fall to nearly zero,” Lee wrote. “The base model still shows the strongest trend in lead time. Resale premium for [17 Pro] has turned into discount, and premium for [17 Pro Max] has largely disappeared. But industry checks suggest growth in China has accelerated, which challenges our negative view.”
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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