Apple share price: 3 things to expect from Q2 results
Apple stock could depend on three crucial factors.
Apple share price could depend on these three important factors. Investors will want these three questions answered before Apple’s Q2 earnings reports.
Can iPhone sales affect Apple's Q2 profits?
Apple’s Q2 earnings could be influenced by the sluggish sales of the iPhone. In Apple’s Q1 revenue report, chief executive officer(CEO), Tim Cook, noted that iPhone sales are declining year-over-year by 15% mainly because of slowing sales in China.
‘100% of our worldwide year-over-year revenue decline was driven by performance in Greater China,’ said Cook.
Apple also noted in its last earnings report that it would no longer report unit sales of the device. D.A. Davidson analyst, Tom Forte, said that the tech company not reporting iPhone unit sales could hinder Apple’s Q2 earnings.
‘There’s nothing good you can say about fact that they stopped reporting unit sales. Looking at our model and our projections for iPhone sales, as it pertains to the March quarter, we’re not looking for anything magical on iPhone or on China,’ said Forte.
Can the upcoming launch of new services help Apple's Q2 earnings?
While iPhone sales are down, Apple’s other services like Apple Music and Apple Pay are increasing. Apple is trying to prove that it’s more than an iPhone company with the recent unveiling of a streaming TV service. The new video on demand service will offer shows from Oprah Winfrey and debut later this year.
In addition to Apple TV+, the tech company is also preparing to launch a credit card and news subscription service to customers as well. These upcoming ventures could also provide a boost to the tech company’s services division and impact Apple’s Q2 earnings.
Forte is optimistic that investors Apple’s Q2 revenue will be positively impacted by its expansion beyond devices.
‘Investors have bought hook-line-and-sinker into the notion that services revenue is going to be a fast growing number for Apple,’ said Forte.
Could the truce with Qualcomm influence Apple's Q2 results?
Apple’s Q2 revenue could also be affected by the recent lawsuit settlement with Qualcomm over a royalty conflict. Since the two corporations reached an agreement, Qualcomm’s shares increased and Apple’s contract to use Qualcomm’s modems could also positively influence Apple’ Q2 earnings.
Investors will be watching Apple’s Q2 earnings report to see how it will be influenced by these recent major events.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
