“Apple’s 4Q16 earnings release is set within a dynamic environment. Expectations are on the rise. Wall Street is now calling for the iPhone to return to sales growth in 2017,” Neil Cybart writes for Seeking Alpha. “In addition, there are very early signs of light at the end of the iPad sales tunnel. However, given severe iPhone and Apple Watch supply shortages following last month’s product launches, 4Q16 numbers won’t provide the clearest answers for judging Apple’s performance improvement. Instead, a greater than usual amount of attention will be focused on management’s earnings conference call and 1Q17 revenue guidance.”

“Management’s revenue guidance provided this past July implied approximately 43 million iPhone unit sales in 4Q16. This number would reflect weaker iPhone 6s and 6s Plus sales in July and August, continued robust iPhone SE sales, and the initial round of iPhone 7 shipments in September,” Cybart writes. “While a sales number closer to 40 million units would raise questions, Wall Street will be much more interested in management’s commentary regarding 1Q17 iPhone sales.”

Mac, Apple Watch, iPad and Apple’s Q117 guidance discussed in the full article here.

MacDailyNews Note: Apple’s conference call to discuss Q416 results is scheduled for Tuesday, October 25, 2016, at 2pm PDT / 5pm EDT. The company will announce results that day after market close, typically right around 1:30pm PDT / 4:30pm EDT. As always, we’ll bring your the results as soon as they are available (simply check our home page at 4:30pm EDT on October 25th) and we plan to cover the conference call with live notes as usual. That link will appear on our home page around 4:45pm EDT earnings day.

On July 26, 2016, Apple provided the following guidance for Q316:
• revenue between $45.5 billion and $47.5 billion
• gross margin between 37.5 percent and 38 percent
• operating expenses between $6.05 billion and $6.15 billion
• other income/(expense) of $350 million
• tax rate of 25.5 percent

Apple Q4 earnings, due October 25th, expected to reveal first annual revenue decline since 2001 – October 24, 2016
Apple to release Q416 earnings, webcast live conference call on October 25th – October 21, 2016