According to a new report, Apple’s earnings for the September quarter are slightly stronger than Wall Street’s expectations. The launch of the iPhone 14 lineup will be factored into the tech giant’s third-quarter earnings. Now, analysts have started looking ahead at what they can expect from Apple’s earnings in the upcoming holiday quarter.
Apple’s earnings in Q4 are expected to be in line with Wall Street’s predictions
In a note to investors (via AppleInsider), investment bank Cowen predicts that the Cupertino tech giant will slightly surpass Wall Street’s expectations for the third quarter of 2022. However, in reference to the upcoming holiday quarter, Cowen expects that Apple’s earnings will be in line with guidance.
Apple’s new iPhone 14 Pro and Pro Max are expected to continue experiencing strong demand from consumers since they offer an updated experience. On the other hand, the base models in the iPhone 14 lineup, specifically the iPhone 14 Plus, could negatively impact Apple’s earnings. Since its launch, the device has seen disappointing sales.
It has been reported numerous times that Apple has asked suppliers to increase production of iPhone 14 Pro models. Most recently, a report claimed that the tech giant cut back iPhone 14 Plus production since its demand continues to fall flat in comparison to the iPhone 14 Pro.
As for shipments, Cowen predicts that the Cupertino tech company will ship 51 million iPhones in the third quarter. As for the upcoming quarter, shipments are expected to be in the 80 million range, specifically, 82 million. The previous prediction for this quarter was 83 million.
Sales for other hardware are expected to be strong. Cowen predicts that sales of iPad and Mac will see double-digit percentage growth year-over-year. The company recently announced two new iPads: the iPad Pro with M2 and the 10th-generation iPad.
Apple’s Services saw 12% growth in the June quarter, generating a record $19.6 billion. Apple services include the App Store, iCloud, Apple Music, AppleCare, and payment Services. Cowen predicts an +11% increase year-over-year in revenue for services in Q4, driven by the holidays.