1. The impact of the iPhone X: On Thursday, the company will shed light on this when it forecasts revenue and gross profit margins for the three months through December. Analysts predict revenue of $85 billion and a gross margin of 38.5 percent, according to data compiled by Bloomberg. If Apple forecasts higher revenue and fatter margins, that would suggest it has a lot of iPhone X devices to sell in the period. The opposite may show production issues really will make people wait.
2. The meaning of a more expensive phone: Apple likely won’t forecast ASPs for the holiday quarter, however, analysts estimate just over 80 million total iPhones will be sold in that period, with an ASP of $729, according to estimates compiled by Bloomberg.
3. China: In the third quarter, Greater China was Apple’s only major region to see a revenue decline. Analysts, however, are optimistic that the iPhone X will be a hit with Chinese consumers, boosting revenue from the region in coming quarters.
4. iPhone mix: Our bet is that Apple will address the critical iPhone X demand question and direct investors to think about iPhone X demand as similar to iPhone 8 — Gene Munster, Loup Ventures, wrote in a recent not to clients.
5. Apple’s other products
Read more in the full article here.
MacDailyNews Take: As usual, it’ll be mostly about the guidance for the all-important holiday quarter.
As for today’s results, on August 1, 2017, Apple provided the following guidance for Q417:
• revenue between $49 billion and $52 billion
• gross margin between 37.5 percent and 38 percent
• operating expenses between $6.7 billion and $6.8 billion
• other income/(expense) of $500 million
• tax rate of 25.5 percent
Apple to release Q417 earnings, webcast live conference call on November 2nd – October 3, 2017