What you need to know
- Apple's Q2 earnings call will take place on Wednesday at 5 pm ET.
- Reports suggest Apple could post $76bn in revenue.
- Apple posted $58.3bn in revenue for the same quarter last year as the COVID-19 pandemic began to take hold.
Reports ahead of Apple's Q2 earnings call later today suggest the company could post $76bn in revenue.
From the Financial Times:
Apple is expected to post stellar second-quarter results with revenues of $76.6bn that will turn the standard narrative about the company on its head.In recent years the consensus take on Apple is that the iPhone maker is pushing hard into services and software because hardware sales are already saturated. For instance, customers typically hold on to a new iPhone for four years, compared to three years back in 2018, forcing Apple to find new sources of growth.
The report, noting analyst consensus says Apple's services are expected to grow again by more than 17%, just as they did last year. However, Apple is also expected to do well across all of its major product lines such that services "would be the slowest growing category of all its divisions."
Analyst estimates state total revenues "are expected to climb nearly a third to $76.6bn", with net profits "soaring 47 percent to $16.6bn." As the report notes, the results will look more flattering because of Apple's Q2 from 2020, where it posted revenues of $58bn despite many of its factories in China and all of its retail stores being closed.
Apple's iPhone, driven by the most recent iPhone 12 is expected to have a "standout quarter", with analysts reportedly projecting 42% growth to $41.2bn, in part thanks to some Christmas and New Year's sales counting in this quarter because of supply constraints.
The news follows supply chain reports this week stating Apple may cut AirPods production by up to 30% in 2021 as sales lose steam to competitors.
Apple's Q2 earnings call will take place at 5 pm ET later today, with Apple announcing its results by press release at the top of the hour.
