Apple Anticipates Growth with Rising iPhone Sales Before Q4 Results
As Apple Inc. prepares to disclose its quarterly results, expectations are high for strong iPhone sales. The company’s latest iPhone 17 lineup, launched on September 19, 2023, has already shown promising early demand.
Apple’s Q4 Anticipations
Wall Street analysts predict that Apple’s growth will continue, driven primarily by its new iPhone offerings. The latest iPhones feature enhanced displays, increased storage capacities, and faster processors, which have captivated consumers in vital markets, including the United States and China.
Quarterly Revenue Projections
- Expected revenue for the September quarter: $102.17 billion
- Projected increase from last year: 7.6%
- Projected earnings per share: $1.77
- Estimated iPhone sales: $50 billion, up 8.6% year-over-year
Analysts believe these figures set a record for Apple’s quarterly iPhone sales. Early data from research firm Counterpoint reveals that sales of the iPhone 17 in its first 10 days surpassed those of its predecessor by 14% in both the U.S. and China, with particular demand for the Pro versions. However, the pricing and features of the iPhone 17 Air have attracted limited interest.
Stock Performance and Market Capitalization
In the third quarter, Apple shares surged 24%, marking the company’s best performance in over two years. Additionally, Apple achieved a significant milestone, becoming the third company in history to reach a market valuation of $4 trillion. Despite this growth, Apple still trails behind other major tech firms known as the “Magnificent Seven,” mainly due to a slower introduction of new AI features.
Future Outlook and Challenges
Analysts expect Apple’s earnings per share to potentially more than double by 2030, supported by emerging product categories such as AI-integrated eyewear and smart home devices. Nevertheless, industry experts caution that Apple must expedite its AI initiatives to keep pace with rivals like Samsung Electronics, which has successfully integrated AI capabilities into its products.
- Bank of America analyst Wamsi Mohan has set a buy rating on Apple with a price target of $320, up from $270.
- Challenges: Retaining top AI talent and clarifying AI strategies.
- AI-powered Siri rollout postponed until 2026.
Investor Sentiment Ahead of Earnings
As Apple approaches the critical holiday season, it is expected to reveal fresh insights regarding iPhone 17 Pro sales. This will likely be accompanied by updated guidance for the important December quarter.
Analyst Jacob Bourne from eMarketer notes, “Apple is riding high into earnings with better-than-expected iPhone 17 sales.” However, he also emphasizes that uncertainties surrounding Apple’s AI direction remain a consideration for investors.
Analyst Consensus on AAPL Stock
The consensus rating for AAPL stock continues to be a Moderate Buy among analysts. As of now, the average price target stands at $264.07, indicating a slight potential downside from the current valuation.
As the holiday season approaches, Apple’s robust iPhone demand positions the company to regain momentum, while it simultaneously works to clarify its ambitions in AI technology.
