Apple might be able to get away with another weak iPhone quarter – MacDailyNews

Update font size.
Apple is set to report its fiscal second quarter earnings report this Thursday, after the closing bell, but the company may be able to skate by with another weak iPhone quarter due to its beaten down valuation.
Dan Gallagher for The Wall Street Journal:

It has been a pretty bleak year so far for Apple. The federal government is trying to break up the company’s closed-ecosystem for its App Store and—in a separate case—challenge the lucrative payments Apple gets from Google every year to make the popular search engine the default on mobile devices including the iPhone.
The company is also losing ground in China, a market that historically has accounted for about 19% of Apple’s annual revenue.
Such a bum run of news would normally be a poor setup for Apple’s stock ahead of its fiscal-second-quarter report, due Thursday afternoon. But the shares are already in a funk, down around 12% this year. That is the worst performance by far among megacap techs valued at more than $1 trillion. Microsoft, Amazon, Nvidia, Meta Platforms and Google parent Alphabet have logged a median gain of 23% for the year. More notably, the drop has put Apple’s multiple to around 25 times forward earnings, which is in line with its five-year average and down more than 16% from last summer…
That should help temper any negative reaction to what is expected to be a weak report. Analysts expect iPhone revenue to fall 10% year over year—the worst drop for that key business unit in more than three years. Revenue from all of Apple’s device segments is expected to show a year-over-year decline for the period, which would be the first time that has happened in at least a decade.
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.

MacDailyNews Take: Apple revealing – and hyping – its new AI features will fuel its stock price soon enough. In fact, if CEO Tim Cook and/or CFO Luca Maestri just mention that the company will discuss more about AI at its “Let Loose” special event on May 7th, they could reveal pretty much anything in regard to disappointing earnings and get away with it.

Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Apple shares closed up 2.5% on Monday after a longtime Apple analyst at Bernstein upgraded the stock to an “outperform” rating…
Apple’s next-gen, Pad Pro models expected to be unveiled on on Tuesday, May 7th will feature “by far the best OLED tablet panels…
Apple, the world’s king of stock buybacks, is a value-add for AAPL investors, an analyst says. The company spent a total of…
Apple’s iPadOS has been designated as a gatekeeper under the bloc’s Digital Markets Act rules by EU antitrust regulators because of its…
Bernstein analyst Toni Sacconaghi on Monday raised his rating on Apple stock to “Outperform” from “Market Perform” and reiterated…
Enter your email address to follow MacDailyNews and receive notifications of new posts by email.

The ad-supported model is broken. Contributions are now keeping us going, more than two decades on!
If half of our visitors contributed just $2/month, we’d be 100% AD-FREE!
Click or tap to Contribute.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top