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Apple Q4’s Earnings Are A Prelude To The Holiday Quarter Forecast

Apple will report its fiscal fourth quarter earnings Thursday after the bell, and the numbers may well show depressed iPhone sales and lots of apprehension about supply and demand for the new iPhone X , which will go on sale this Friday. The company’s fourth quarter, which covers July, August, and September, typically starts an upswing in seasonal results after a drowsy Q2 and Q3, culminating in a big Q1 over the holiday season. Thomson Reuters analysts expect Apple to announce $50.79 billion in revenues for the quarter. A month ago Apple forecast between $49 billion and $52 billion. Apple reported Q4 revenues of $46.85 last year. The fourth quarter is also when the numbers start to show sales of the new phones Apple announces in September. This year, the iPhone 8, iPhone 8 Plus, and iPhone X were all announced September 12. So the Q4 results will capture some initial figures on the iPhone 8 and iPhone 8 Plus , which started shipping September 22. Keep in mind, though, those may have been depressed by people waiting to buy the fancier iPhone X, or at least read the reviews before finalizing a buying decision. Analysts polled by Estimize.com believe the company sold 48.16 million iPhones in the September-ending quarter. Analyst Neil Cybart believes that number includes sales of about 12 million iPhone 8 and iPhone 8 Plus units in the last part of September. “…There is evidence of customer demand for iPhone 8/8 Plus being down by about 30% year-over-year in comparison to the iPhone 7/7 Plus launch in 2016,” Cybart wrote in a recent brief. Holiday Sales Will Tell The Tale Apple derives two-thirds of its revenue, give or take, from iPhone sales, so its new phone releases–and consumers’ reaction to them around the world–are of supreme importance at earnings time. We’ll know a lot more about Apple’s performance when it reports earnings for its holiday quarter, the first full quarter when both the iPhone 8 models and the iPhone X will be on sale.

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Apple Q4’s Earnings Are A Prelude To The Holiday Quarter Forecast

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