INSUBCONTINENT EXCLUSIVE:
Apple Q3 Results: Apple is is expected to announce revenue of $52.3 billion, according to analysts.When Apple reports results on Tuesday,
investors will seek insight into upcoming new iPhones and how the current flagship iPhone X is performing
They also want executives' latest thoughts on the growing trade dispute between the U.S
The Cupertino, California-based technology giant is expected to announce fiscal third-quarter revenue of $52.3 billion, according to analyst
estimates compiled by Bloomberg
That's in line with the company's recent forecast and translates to year-over-year revenue growth of about 15 percent, the strongest for
Apple's June quarter since 2015
Higher iPhone average selling prices, increased services revenue, and unit sales growth for the Apple Watch should drive the expansion,
analysts say.Apple sold about 41.8 million iPhones in the third quarter, up almost 2 percent from a year earlier, according to Toni
Sacconaghi, an analyst at Sanford C
Because of the $1,000 iPhone X starting price, analysts on average are expecting iPhone revenue to grow about 17 percent year-over-year,
Sacconaghi said in a recent note
He's looking for an average iPhone price of $690, up from $606 in the year-ago quarter.Steady sales growth like this suggests consumers are
still buying iPhones despite expectations that Apple, for the sixth year in a row, will revamp its smartphone lineup in or around
September.Investors and analysts will also be closely watching Apple's fiscal fourth-quarter outlook
This is the period when new iPhones are often unveiled
Analysts see September quarter revenue of about $59.5 billion, which would represent 15 percent year-over-year growth.Apple's fourth-quarter
forecast will give clues to when the new iPhones will debut, according to Shannon Cross of Cross Research
Last year, the iPhone X was unveiled in November, later than usual."We're looking for 3 percent growth this quarter, 1 percent growth next
quarter, and flat growth next year, leading analysts to model for the iPhone growth story coming to a close," said Gene Munster, a veteran
Apple analyst and co-founder of Loup Ventures
He sees annual iPhone unit growth of zero to 5 percent for the next several years.Apple's Services division is expected to pick up the
growth baton from iPhones
The company wants Services to be a $50 billion business in coming years, and analysts are expecting revenue from this business to top $9
billion in the fiscal third quarter, according to Bernstein research.Apple Music streaming subscriptions and App Store sales should power
Beyond that, the company's impending online video offering may bolster the division's expansion, Munster said.While Apple is expected to
report solid revenue growth, the Trump administration's simmering trade war with China looms over the company
While products like the iPhone and iPad are designed in the U.S., they are assembled in China-based factories run by the likes of Hon Hai
and Pegatron Corp.So far, Apple has not publicly been affected by tariffs, and Chief Executive Officer Tim Cook has expressed optimism about
Still, the executive told President Trump earlier this year that tariffs "were not the right approach." Analysts will likely ask the CEO
about this on Tuesday."Apple is going to have to address trade during the earnings call, especially given their extensive involvement in the
Chinese supply chain," Cross said
"My guess is that they will emphasize the investments they're making in the U.S
as that could be their best angle here."Analysts differ on iPad performance in the fiscal third quarter
Cross Research is predicting iPad unit sales of 12.1 million, while Bernstein sees 10 million
Apple rebooted its iPad strategy recently to focus on high-end Pro models and cheaper versions geared toward the education market.The
company plans new iPad Pros with iPhone X features this year
That could boost iPad sales in the fiscal fourth quarter and the upcoming holiday quarter, depending on when in 2018 the devices are
Bernstein is predicting an iPad average selling price of $440 in the fiscal fourth quarter, suggesting the cheaper models will be more
IPad Pro prices range from $649 to $1,279, while the low-cost model ranges from $329 to $559.Apple's Other Products segment, one of the
company's fastest growing, includes the Apple Watch, AirPods, HomePod, Apple TV, and accessories like the iPad's detachable keyboard
Bernstein expects revenue from the category to jump 40 percent year-over-year to $3.8 billion in the fiscal third quarter
The company is planning its first full Apple Watch redesign and new AirPods later this year, Bloomberg News has reported.(This story has not
been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
