“Apple Inc.’s shares have taken a beating, falling 11 percent since the last earnings report in October on concerns that iPhone sales may have suddenly dropped off,” Adam Satariano reports for Bloomberg. “Results due Tuesday will give investors a closer look at whether that slump was justified—or a long-awaited signal that the stock is poised for a rally.”
“The smartphone accounted for 66 percent of Apple’s revenue last year, up from 50 percent three years ago,” Satariano reports. “Given Apple’s dependence on the iPhone, any hint that sales might slow—especially in China—spooks investors.”
“According to several analysts, Apple has cut orders to its suppliers for phone components, indicating the Cupertino, California-based company may not sell as many handsets in early 2016 as originally anticipated,” Satariano reports. “The question for Apple stakeholders is whether the iPhone production drop is any different from years past. Apple’s sales always fall precipitously after the holiday shopping quarter as customers begin waiting for new products, which are typically released around September. That puts the focus squarely on Apple’s outlook for the first three months of 2016.”
Read more in the full article here.
MacDailyNews Take: Yup.
One thing is for sure: All eyes will be on Apple’s guidance for Q216. — MacDailyNews, January 15, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 22, 2016