AAPL Q4 2021 earnings will be revealed tomorrow, and analysts expect the Cupertino-based company to announce a big increase in revenue over the previous year.
This is partly due to optimism about the sale of the iPhone 13, but mostly comes down to timing…
Historically, the initial sales of the latest iPhones were made in September, which is part of Apple’s fiscal Q4 (aka calendar Q3). This was true for every launch from iPhone 5 to iPhone 8.
However, things got messier, and last year’s iPhone 12 launch was among those introduced later. The iPhone 12 and iPhone 12 Pro went on sale in October, while the mini and Pro Max were only available in November. This means that none of these sales contributed to Apple’s fiscal revenue in the fourth quarter. In contrast, the iPhone 13 went on sale on September 24, providing weekly sales in the fourth quarter.
Since that is the case, it is not surprising Yahoo Finance shows that analysts expect a huge increase in revenue, from $ 64.7 billion last year to $ 84.85 billion this year.
It also reflects a rather optimistic picture of iPhone 13 sales, especially for what is essentially the age of the S-model, albeit with some significant and valuable improvements. However, it is also clear that analysts are not quite sure what to expect, as revenue estimates range from $ 77.65 billion to $ 89.28 billion.
Analysts agree that earnings per share (EPS) will exceed one dollar, with the lowest estimate at $ 1.05 and the average at $ 1.24.
There are still concerns about the global shortage of chips, and investors will listen carefully to what the company has to say about it tomorrow. The key concern will be whether Apple’s supply chain can cope with the demand of the holiday season, says AAPL bull Daniel Ives (via CNET).
“An elephant in the room for Apple (and all other players in technology and cars) going to a conference call remains a crisis due to a lack of chips and what impact this global Rubik’s Cube logistics will have on iPhone builds and deliveries for the holiday season,” Ives wrote in a survey report last week.
But, he added, Apple has a “high-end” demand problem that outperforms supply as users continue to upgrade to the 5G wireless network, causing what analysts call a “supercycle” of upgrades. “We consider short-term problems in the supply chain as nothing but an obstacle in a multi-year supercycle,” Ives wrote.
Constant uncertainties mean Apple is likely to continue its recent trend of refusing to offer any guidance for next quarter.
As usual, the AAPL Q4 2021 earnings will be announced at 1:30 p.m. PDT, and Apple will respond with a call about earnings 30 minutes later. Of course, we will bring you all the numbers and full coverage.
Photo: Kharl Anthony Paica / Unsplash
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