Apple poised to report record revenue

Apple, the world’s most valuable company, is expected to report record revenue for its September quarter, the company’s fiscal fourth quarter, ending its 2022 fiscal year.

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Apple’s current September quarter revenue record stands at $83.4 billion, set last year.

Aaron Tilley for The Wall Street Journal:

The Cupertino, Calif., company is set to announce its full-year earnings on Thursday after markets close. To date, Apple’s business has largely stayed strong in the face of broader smartphone-sales slowdowns and global economic challenges.

MacDailyNews Take: MacDailyNews Take: The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics.

Apple iPhone customers are the most recession-proof smartphone buyers.MacDailyNews, September 7, 2022

And the same goes for Mac, Apple Watch, and iPad customers.

For the quarter ended in September, Apple’s overall revenue is expected to be $88.8 billion, according to FactSet. That’s up more than 6.5% from the same quarter last year. Sales from the iPhone, which accounts for around half of the company’s overall revenue, are expected to be $43 billion, up 10.7% from the previous year.

Last month, Apple announced its latest lineup of smartphones with iPhone 14, which includes two lower priced base models as well as two premium versions of the phone with the Pro designation. Analysts are expecting weakness in the base models as consumers lean toward the Pro models, which come equipped with a significantly better camera and chips.

The latest iPhone Pro models are expected to account for 60% of overall iPhone 14 sales, according to J.P. Morgan analyst Samik Chatterjee. Previously, it was split more evenly between the base and Pro models in the iPhone 12 and 13 generations, he said.

Strong Pro sales are expected to offset potential weakness in overall iPhone sales by boosting Apple’s average selling price for the iPhone.

MacDailyNews Take: As predicted:

Apple should have been doing this prior, but it’s good to see some additional differentiation between entry-level and “Pro” iPhone which will, of course, tilt more buyers to iPhone Pro models, increasing Apple’s iPhone ASP. The expected removal of the inelegant kludge (notch) in favor of a more refined pill and hole punch design exclusively in the iPhone 14 Pro and iPhone 14 Pro Max will also help differentiate the Pro models from the non-Pro iPhones later this year, moving the mix toward higher-end iPhones.MacDailyNews, July 6, 2022

Apple iPhone mix is easily going to be the strongest ever. Do not be surprised with the reports that Apple has “cut iPhone 14 orders,” meaning iPhone 14 and iPhone 14 Plus. The company will likely be increasing iPhone 14 Pro and iPhone 14 Pro Max orders to reflect the strong mix which bodes very well, of course for Apple’s iPhone average selling price (ASP).MacDailyNews, September 14, 2022

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