Apple shares down after a flat Christmas predicted
Fiscal fourth quarter earnings at Apple beat analyst expectations with gross margins coming in better than forecast.
Earnings per share came in at $1.46 against an expected $1.39 with revenues of $89.5 billion against analysts’ forecasts of $89.28 billion. iPhone revenue came in inline at $43.81 billion. However, overall sales fell for the fourth quarter in a row with every hardware business outside of the iPhone declining year over year, with big drops in the iPad and Mac segments. But it was gross margins at 45.2% vs. 44.5% expected which was the initial reason why there was a brief rise in shares. Then came the drop as Apple signalled the company may not return to growth over the Christmas/New Year period.
(AI Video Transcript)
Apple's Q4 earnings
Apple is set to reveal their financial results for the fourth quarter, and experts predict that their earnings will be $1.39 per share, showing a 7.7% increase from last year. Additionally, their revenue is expected to rise by 1% to nearly $90 billion. Investors will be closely watching how Apple's products and services perform.
While the sales of Apple's hardware products, like the iPhone, may continue to struggle in China, which makes up a significant portion of their revenue, it is believed that their services segment will make up for any decline in product sales. In fact, the revenue from Apple's services is projected to increase by 11.4% in the third quarter of 2023, compared to the previous quarter's growth of 8.2%.
Apple share price
Before the market opens today, Apple shares are priced at $174.82. Due to recent developments, it is expected that the stock will open higher on Wall Street. If you're interested in trading Apple shares, you can do so on the IG.com platform starting at 9 o'clock UK time. It's worth noting that trading can also take place after the market closes this evening, following the release of the fourth quarter financial results.
Apple's products and services
In simpler terms, Apple is about to announce how well they did in the last quarter, and it's predicted that they made more money compared to the previous year. Investors will be paying attention to how well Apple's products and services sold. Although their hardware products might not have done as well in China, their services are expected to make up for it. So, even if one part of their business is struggling, another part is doing great. Before the market opened today, Apple shares were worth $174.82, and they are expected to increase in value.
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