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.
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.