The technology giant is all set to make its earnings call tomorrow; analysts remain pessimistic.
Investors are anxiously waiting for Apple Inc. to release its earnings report for the holiday season. Analysts remain pessimistic about the financial results as they suggest that the technology giant will not be able to match or even come close to the sales of the iPhones reported in the same quarter last year. The shareholders are waiting for the million dollar question to be answered: Will the company be able to outperform its mark of 74.5 million this quarter?
Strategy Analytics along with researchers assume that the company will be report poor shipments this quarter which would be the first ever year over year decline reported by the smartphone manufacturer since 2007, when the iPhone was introduced.
The iPhone 6 and 6s have not performed comparatively well in the market; everyone would agree on that. In its effort to tap the market demand for big screens, the flagship smartphone maker has failed to give its best performance. Another reason for the poor performance of the 6 and 6s was because customers did not find any new or different features and realized that it was quite similar to the 5 series.
Apple Inc. majorly depends on the sales and performance of its iPhone as it accounts for two thirds of its revenue. This negativity can be seen in the company’s stock price; due to the demand for the product the stock has been under hot water. On Monday, Apple stock was being traded at a share price of $99.44 indicating a decline of 1.95% from a day earlier.
The latest earnings report will be the most important report that the company will release so far. The iPhone maker has seen its fair share of growth – turns out it was not there to last forever. Back in 2013 the company reported revenue generation of $57.6 billion and was expecting to report as much as $76.6 billion in revenue for the current year.
According to the estimations of financial experts, Cupertino, California based organization is expected to report revenue of $55.7 billion – the first ever decline in revenue – this could be of 4%. Because of these pessimistic predictions many investors have already sold the stock. However, the analysts, at this point say that as long as it managed to not underperform the expectations, the company should be fine.
The earnings call will be a chance for the business’s management to explain themselves and the sudden decline in the sales. Many are expecting this to be the ‘biggest event’ in the history for the technology giant. According to the analysts at Bloomberg, for the first quarter of the current fiscal year the earnings per share could be of $2.23 along with 75 million iPhone unit sales.
It could be a moment for celebration for Google Inc. if Apple reports its first year over year decline in sales as it will finally be able to take the trophy of the most valuable company. The technology corporation failed to achieve any milestones in the 2015. On the other hand, it was a shining year for the search engine giant Alphabet, Inc.
Just a few hours left to see how the Silicon Valley leader did last quarter.
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