Apple Q315 earnings next week: The two most important items

“On Tuesday, Apple will report third-quarter results,” Daniel Sparks writes for The Motley Fool. “The quarterly update will be an important one for investors, providing a helpful glimpse at some key areas investors are uncertain about — particularly Apple Watch and iPhone sales.”

“With the first Apple Watch deliveries beginning in April this year, the company has yet to report any meaningful information on how the Apple Watch is selling. Apple’s third fiscal quarter, which began in April, marks the first quarter including Apple Watch sales,” Sparks writes. “So, investors will likely finally get an Apple Watch unit sales figure to mull over.”

MacDailyNews Take: We wouldn’t be so sure about that:

Last October, Apple stated very clearly that they would not be reporting Apple Watch sales figures:

We’ll be creating a new reporting category called other products. This will encompass everything we report in the accessories category today, including Beats headphones and speakers, Apple TV, and peripherals and accessories for iPhone, iPad, Mac, and iPod. In addition, we’ll begin to include iPod sales in the other products category, and we will also reflect sales of Apple Watch in this line item once it begins shipping in early calendar 2015. — Nancy Paxton, Apple’s Senior Director of Investor Relations

I’m not very anxious in reporting a lot of numbers on Apple Watch… because our competitors are looking for it. – Apple CEO Tim Cook

So, make that “Apple Q315 earnings next week: The single most important item.” And, here it is:

“Can the wildly successful iPhone 6 launch keep up its impressive pace? Investors will be looking to see whether historical patterns of seasonality for iPhone unit sales will play out similarly for the company’s latest iPhone,” Sparks writes. “The consensus estimate for iPhone unit sales in Q3 is 49.4 million, according to a survey of Apple analysts by Fortune.”

Read more in the full article here.

MacDailyNews Take: Apple’s fiscal Q315 results on Tuesday will set the new all-time quarterly record for iPhone unit sales.

SEE ALSO:
Apple’s Q315 earnings preview – July 16, 2015
Analyst: Apple’s iPhone shipments expected to hit record 51 million for June quarter – July 9, 2015
Apple to release Q315 earnings, webcast live conference call on July 21st – June 29, 2015

25 Comments

    1. 93% !!??? I think you meant 93 dollars (which is still a respectable 16 percentage points, but nowhere near 93 points).

      Apparently Google exceeded Wall Street expectations in their quarterly report. I don’t think we can expect the same performance from AAPL; after all, it is already by far the largest market cap in the world, so there is no place for it to grow.

      1. Unit increments in a stock price are often referred to as points, so cashxx cannot be faulted for his statement. And Apple has unlimited upside available for growth. Just because it’s big doesn’t mean it can’t grow.

        1. I think it is just the few lazy day traders that still call them points. For indices (DOW, S&P, NASDAQ, etc), that’s what they are (points) — an arbitrary measure for a composite value, but stock prices are expressed in US dollars and professionals usually know the difference and don’t confuse the two.

          Long time ago, stock market trading was an exclusive business reserved for privileged few. In the recent decades, it has become commonplace to an extent that now even UPS truck drivers trade stocks and invest on the stock market. Many such “investors” aren’t quite proficient with the terminology…

      2. Google exceeded expectations because the bar was lowered by the powers that be. I’m not expecting Apple’s share price to jump 16% but I think it should jump at least 5% in all fairness. I definitely don’t think its fair if it’s P/E compresses while Microsoft’s and Google’s P/E expand.

        Who knows for certain that Apple can’t or won’t grow any further? They can say it might not be likely but that’s only an opinion and not fact because the future isn’t written in stone. Apple is sitting on enough reserve cash to make almost anything happen. I’m sure years ago these same people said Apple could never be worth a three-quarters of a trillion dollars, so they’ve already been proved wrong once.

  1. Apple has little choice regarding the watch numbers. If they are good, and they likely are, they’ll boast with the high numbers; if they are low, they’ll find a way to spin it (and there are plenty of ways to spin) so that they look good. Avoiding the numbers would indicate abysmally low performance.

    Cook already did say they won’t be breaking out Watch numbers, but they did break out some numbers in the past for many things that were officially bundled with other items in their quarterly results. Especially when it is something that indicates record-smashing performance…

        1. Silverhawk1 is not a childish user of emoticons. He uses them tastefully on rare occasions in a meaningful way. He uses them nothing like you do!

    1. Apple may provide a ROM number for Apple Watch sales in the quarter, perhaps even some specific such as a release weekend figure. But Apple has never released unit sales numbers just because Wall Street analysts or MDN commenters stated that it was necessary to do so in order to avoid negative assumptions/rumors.

        1. They don’t fear FUD because it doesn’t work. By now Apple is well established as a market leader and disruptor, and a money-printing machine, a design powerhouse with exceptional quality standards and high customer satisfaction. Their growth is through converting customers into loyal fans and retaining them. Negative stories about Apple can’t overcome all that. Yes, FUD does have uses in the stock market game, but Apple hasn’t seen the effect of it on their all-important customer base. If anything. It’s Apple themselves who shoot themselves in the foot from time to time, but after the smoke clears, the juggernaut just rolls on.

          1. The main reason why the stock price has been flat for the past six months is because of FUD. The thesis has been poor watch sales and December revenue will be flat YoY. There is no question this negativity and lower than it should be stock price has hurt investor confidence and employee moral.

            Google hired something like 7000 new employees over the quarer. They probably plucked quite a few Apple employees.

  2. Cook will probably say that Apple Watch sales were far above expectations and they have worked hard to catch up with demand.
    iPhones have to be 50M based on all the predictions I’ve seen.
    Personally I would love to see Mac numbers 5M or over.

    1. Apple is playing the long game. They are under no pressure to release Watch numbers beyond saying they are very happy with sales and expect them to get better year by year.

    2. Tim Cook will be called a liar because he’s not Jeff Bezos. Wall Street believes everything Jeff Bezos says because they think he’ll never be wrong. That’s simply blind faith.

      Wall Street can’t put pressure on Apple because high revenue and profits are real in the accounting books, but they can make Apple shareholders miserable where company value can be made to appear hazy. People saying Amazon has a brighter future than Apple is just ridiculous because there are too many unknown variables over time. As an example, I can assure you eight years ago, no one would have called for the complete and total collapse of Nokia but collapse it did.

      1. Amazon isn’t manufacturing anything. It isn’t under pressure to constantly innovate. Amazon buys stuff wholesale and sells to consumers at retail. Their only challenge is to refine the logistics of shipping things to consumers with minimal inventory overhead. Their only innovation is how to better refine the guessing algorithm so that their advertising gets higher conversion rates.

        Wall Street loves the predictability of Amazon’s future. They know that it has become increasingly impossible for competitors to enter Amazon’s turf and unseat them, considering their long head start and sheer size in the market. That gives Amazon Sears- and Macy’s-like stability.

        Apple could make a wrong turn in the next quarter. Hell, there are some “fans” on this site who believe Apple had already made that wrong turn with several recent launches (Watch, Music, MacBook…). And, much as most of us know that there is no chance Apple will make a wrong turn as long as Cook and Ive (and Federighi, and others) are making decisions, Wall Street simply doesn’t know this and isn’t taking any chances.

        For AMZN, Wall Street is showing faith in distant future; for AAPL, they are simply slowly recognizing past performance… Eventually, it catches up, but for us fans, it is annoying.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.