Key Takeaways for Apple's Q3 2024 Earnings Report: Anticipations for Growth, iPhone Sales in China, and AI Updates
Apple (AAPL) is scheduled to report its fiscal third-quarter earnings after market close on Thursday, August 1. Investors are keenly awaiting this update to gauge the company's performance, especially focusing on iPhone sales in China and potential developments in artificial intelligence (AI).
Revenue and Earnings Expectations:
- Analysts predict Apple will report revenue of $84.39 billion, reflecting a 3.1% year-over-year increase.
- Net income is expected to reach $20.64 billion, or $1.34 per share, up from the previous year's figures.
Analyst Estimates for Q3 2024:
- Revenue: $84.39 billion (Q2 2024: $90.75 billion, Q3 2023: $81.8 billion)
- Diluted Earnings Per Share: $1.34 (Q2 2024: $1.53, Q3 2023: $1.26)
- Net Income: $20.64 billion (Q2 2024: $23.64 billion, Q3 2023: $19.88 billion)
Focus on iPhone Sales in China: Concerns over declining iPhone sales in China have affected Apple's stock, but analysts suggest that this quarter might signal the end of the downturn, with a recovery potentially on the horizon. CFRA reports increased iPhone shipments in China, partly due to pricing discounts, and anticipates the current decline as a revenue trough before the launch of the new iPhone 16.
Business Spotlight: Anticipation for iPhone 16: Apple is expected to unveil the AI-enhanced iPhone 16 in September, following its recent launch of iOS 18 and an AI collaboration with OpenAI. This new model could drive significant growth and push Apple closer to a $4 trillion market capitalization.
AI Initiatives and Market Impact: During the earnings call, Apple may provide insights into its ongoing AI projects and how these could impact the company's future. So far in 2024, Apple shares have risen approximately 13%, closing at $217.96 on Friday.
