Strong iPhone 12 sales and services expected to drive growth at Apple

Strong sales of 5G iPhones and services such as the App Store, Apple One, Apple Music, Apple TV+, Apple Arcade, etc. are expected to drive growth at Apple, which reports Q321 results on Tuesday.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Stephen Nellis for Reuters:

Analysts expect Apple’s services sales to rise 24.1% to $16.33 billion, more than a fifth of its expected overall sales of $73.30 billion, according to IBES data from Refinitiv as of July 26…

Analysts expect the company to see a boom in iPhone sales for its fiscal third quarter, with sales rising 28.7% to $34 billion, according to Refinitiv data as of July 26, by far the largest single contributor to sales.

J.P. Morgan analyst Samik Chatterjee wrote in a note last week that Apple’s services business growth has driven a structural shift a higher valuation for the company, with shares trading near 30 times earnings. As recently as 2019, shares consistently traded at less than 20 times earnings as investors remained cautious about the company’s heavy dependence on iPhone sales.

MacDailyNews Take: It will be interesting to see if Apple provides guidance for Q4, but we expect them to continue using COVID-19 uncertainty to skip that once again. Perhaps, as it hasn’t hurt and the analysts still gin up Apple estimates regardless, the company should do away with providing guidance altogether.

As always, we will have the results for you as soon as they are released, right around 1:30pm PDT / 4:30pm EDT. Just check our homepage on that date at that time.

The company will also conduct a conference call with analysts to discuss third fiscal quarter results is scheduled for Tuesday, July 27, 2021 at 2:00pm PDT / 5:00pm EDT. We will also cover the Apple Q321 conference call with live notes. Visit check our homepage on that date around 1:45 pm PDT / 4:45 pm EDT for the link.

3 Comments

  1. How will inflation, rising food and durable goods prices, record high gas prices and falling salaries drive growth at Apple (and elsewhere)? I can’t imagine it will help.

  2. One star? Yeah, me too. I would prefer a higher salary, lower gas prices, lower food prices, a lower price on the new water heater I need before fall and lower inflation. But, it is what it is. At least we are defunding police, opening the southern border, Harris could replace Biden at any moment, and mean Trump is gone. Whew! Good thing!

    Now back to iPhone 12 sales and services driving growth at Apple…

  3. Will new energy laws drive or dampen sales of any high end Macs? Dell can no longer ship some gaming rigs to California, Colorado, Hawaii, Oregon, Vermont and Washington due to tighter regulations. Here in CA, the new regulations make sense as we sometimes don’t have enough power to keep the lights on, so we don’t need unnecessarily power hungry computers using up our insufficient and unreliable supply of green power.

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