Analysts project that Apple’s iPhone sales declined in the company’s June quarter, driven in part by supply shortages and quixotic COVID shutdowns in China.
Tim Higgins for The Wall Street Journal:
A question for many investors Thursday when Apple reports fiscal third-quarter results is whether a strong dollar, inflationary fears, chip shortages and Covid-19 precautions in China will wreck what many are betting could still beat last year’s record performance.
Analysts, on average, are predicting the Cupertino, Calif., company will report profit falling to $18.9 billion, a 13% decline from a year ago and the worst quarter since the July-through-September quarter in 2020 ahead of the 5G iPhone launch. On a per share basis, profit is seen falling to $1.16 from $1.30, according to the average estimates of analysts surveyed by FactSet. They expect revenue may have risen just 1.7% to $82.8 billion.
In late 2020, Apple introduced iPhones with 5G capabilities that were touted as offering faster internet speeds to improve gaming and downloads, helping spark renewed interest in the gadget and fueling a record fiscal 2021 profit of $94.7 billion. Analysts are predicting iPhone profit for fiscal 2022, which ends in September, will be near $100 billion after a strong first half.
Strong digital-services and Mac computer sales are likely to have offset an expected 2.5% decline in iPhone revenue in the fiscal third quarter, according to analysts.
MacDailyNews Take: How will Apple ever be able to survive on a mere $100 billion in 2022 iPhone profits alone (not counting profits on Macs, iPads, accessories, subscriptions, etc.)?
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My son Hunter will get this CCP Shutdown Issue resolved with his China Comrades !
Boom .. they beat the consensus! and had record revenue!