“Apple will likely report a 2Q15 beat to consensus EPS of $2.14 this coming Monday on strong revenue growth (up 24% from last year) and margin trends (41.0% vs. 39.3% last year),” Neil Cybart writes for Above Avalon.
“While recent iPhone sales share in the U.S. and Europe appear slightly ahead of previous years, strong sales in China will be the primary driver behind 35% growth in iPhone unit sales,” Cybart writes. “In addition to earnings, Apple is expected to announce an updated capital return program.”
“The Mac and iPad are becoming less of a factor for earnings as those two product categories now represent a smaller percentage of Apple’s overall business,” Cybart writes. “It will be difficult to get Apple Watch sales expectations from guidance, but management may give commentary on how the Watch launch is proceeding.”
Read more in the full article here.
Related article:
Apple to release Q215 earnings, webcast live conference call on April 27th – March 31, 2015
Oh no! AAPL is doomed or something. iPad sales aren’t twice as high as last year. The company is closing its doors and there will be massive layoffs. Sell your stock. AAPL is only making a few billion more than last month. Android is winning somehow or something.
Yet another analyst.
Apple should just report total revenues for iOS devices and stop being so granular. Just hurts them as analysts focus on lower iPad sales when they want AAPL to go down.
I wonder if Apple 3Q will blow away analysts guess’ with the Apple Watch.
Why is this report so late in the month? It must be taking longer to count all the cash. 🙂
Samsucker will post better results! One Dollar more than Apple results and One more unit sold than Apple results. Just wait and see!
I always love seeing Apple’s earnings results and remembering back to times when we thought a mere $30 million profit was great. That’s a microscopic drop in the bucket now. I especially loved the day when I worked at Apple when Steve Jobs sent an email to us all to let us know that Apple had just exceeded the market value of Dell. The email was lighthearted but there was a slight gloating tone to the email. No matter how great Apple’s results are, some “analyst” will always try to predict some kind of doom for one or more of Apple’s products. It will be the same this next Monday.
The smartphone market continues to grow:
Today, AT&T reported slightly more smartphones were sold year over year during the March quarter, but what surprised me was two-thirds went with the Next Plan. This is the plan where users upgrade their phone every year, instead of every two years. This trend should continue.
I also listened to the Qualcomm call and they expect sales of 3G and 4G devices to reach 1.6 billion units in calendar 2015. This is up to 17 perecent higher than 2014. They claim only 8 percent of all device connections are LTE and believe up to 1.19 billion LTE devices will be shipped in 2015.
Based on this data and other metrics, I’m expecting very healthy guidance for this quarter.
The AT&T Next plan does not “require” that you upgrade your phone every year, or ever. You do have that option, but doing so requires that you give up your old phone to get the new one. But if you make all the payments through the duration of your plan (typically 18 or 24 months), then you can enjoy a few months or years with no installment payments on your bill, or start a new Next plan for a new phone. And the old phone is yours to keep, sell, give away… whatever you want.
So, while not guaranteeing that everyone on a Next plan will upgrade every year, more people will be eligible to do so, which should contribute to a few more sales every year.
I’m a fan of Next. It’s basically an interest-free loan for the full price of the phone, payable in monthly installments. And if you want to upgrade every year, it’s sort of like leasing a car… you’re always making payments, but you always have the latest model if you want.
Thank you for the clarification. Verizon has a similar plan and this is the first year I’m on it. I had the 5 and now the 6 Plus. The fingerprint reader is flawless and game play is spectacular on the 6 Plus. When the 5s was released I wasn’t too upset that my contract was every two years because the device was basically the same form factor, but after reading about how good the fingerprint reader operated and seeing the game play on the 5s I decided to get yearly iPhone upgrades. Now, I get to witness the newest Apple magic every few months and that makes me happy.
I waited to buy the 5S because of the Next Plan. Its a rent to own plan so that after 2 years the price per unit for access goes down to $15. Since we typically get a new phone every 3 years, the cost over that period goes from $7500 to $5000 for 3 people. Plus the data is 4X more than we used to get and have free hotspot.
The Next Plan is still expensive IMHO but going in the right direction.