{"id":3642,"date":"2023-05-03T10:07:21","date_gmt":"2023-05-03T14:07:21","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/how-will-apples-earnings-trend-as-idevice-sales-slow\/"},"modified":"2023-05-03T10:07:22","modified_gmt":"2023-05-03T14:07:22","slug":"how-will-apples-earnings-trend-as-idevice-sales-slow","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=3642","title":{"rendered":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow"},"content":{"rendered":"
\n

Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for computing devices and headwinds in the digital services business. We estimate that Apple\u2019s revenue will come in at about $93 billion for the quarter, roughly in line with consensus estimates and about 4% lower compared to last year. We estimate that earnings will stand at close to $1.45 per share, compared to a consensus of $1.43 per share. So what are some of the trends that are likely to drive Apple\u2019s results? See our interactive dashboard analysis on Apple Earnings Preview<\/strong> for more details on how Apple\u2019s revenues and earnings are likely to trend for the quarter.<\/p>\n

We expect to see slower sales of iPhones, amid economic concerns and weaker consumer spending. However, this could be partially offset by improved availability of the flagship iPhone Pro devices, which remained undersupplied through the holiday quarter. Apple\u2019s other computing devices are also likely to see slower sales. While the iPad could see demand cool versus last year, as the remote working and learning trend seen through the Covid-19 pandemic tapers off. Mac sales are expected to see a more severe slump. For perspective, IDC estimates that Apple\u2019s Mac sales declined by close to 40.5% in Q1 2023. However, this could be offset, in part, by sales of pricier devices such as the Macbook Pros and the all-new Macbook Air.<\/p>\n

We will be closely watching the performance of Apple\u2019s services business. Services sales have slowed down meaningfully, with revenue growing by just 6.4% in Q1 FY\u201923 and by about 5% in Q4 FY\u201922, compared to double-digit levels in the year-ago quarter. This is concerning, given that services are very lucrative, with segment gross margins typically standing at over 70%. The decline is likely being led by the AppStore, with people spending less on gaming and apps as Covid-19 eases.<\/p>\n

So is Apple stock a buy ahead of earnings? While Apple stock could move slightly higher if it beats earnings, we believe the stock is fundamentally overvalued at current levels of about $170 per share. The stock trades at about 28x forward earnings, which we believe is high, given that Apple\u2019s earnings are poised to contract this year per consensus estimates, with revenue growth projected to remain slow over the next year as well. We value Apple at about $160 per share, about 5% below the market price. See our analysis of Apple Valuation<\/strong> for more details on what\u2019s driving our price estimate for Apple and how it compares with peers.<\/p>\n

<\/fbs-ad><\/p>\n

What if you\u2019re looking for a more balanced portfolio instead? Our high-quality portfolio<\/strong> and multi-strategy portfolio<\/strong> have beaten the market consistently since the end of 2016.<\/p>\n

Invest with Trefis <\/strong>Market Beating Portfolios<\/strong><\/p>\n

See all Trefis <\/strong>Price Estimates<\/strong><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for computing devices and headwinds in the digital services business. We estimate that Apple\u2019s revenue will come in at about $93 billion for the quarter, roughly in line with […]<\/p>\n","protected":false},"author":1,"featured_media":3643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-3642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"\nHow Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=3642\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=3642\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-03T14:07:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-03T14:07:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683122841_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3642#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3642\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow\",\"datePublished\":\"2023-05-03T14:07:21+00:00\",\"dateModified\":\"2023-05-03T14:07:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3642\"},\"wordCount\":482,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=3642#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3642\",\"url\":\"https:\/\/ifintechworld.com\/?p=3642\",\"name\":\"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-03T14:07:21+00:00\",\"dateModified\":\"2023-05-03T14:07:22+00:00\",\"description\":\"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3642#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=3642\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3642#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld","description":"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=3642","og_locale":"en_US","og_type":"article","og_title":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld","og_description":"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for","og_url":"https:\/\/ifintechworld.com\/?p=3642","og_site_name":"iFintechWorld","article_published_time":"2023-05-03T14:07:21+00:00","article_modified_time":"2023-05-03T14:07:22+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683122841_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=3642#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=3642"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow","datePublished":"2023-05-03T14:07:21+00:00","dateModified":"2023-05-03T14:07:22+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=3642"},"wordCount":482,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=3642#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=3642","url":"https:\/\/ifintechworld.com\/?p=3642","name":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-03T14:07:21+00:00","dateModified":"2023-05-03T14:07:22+00:00","description":"Apple is slated to report its Q2 FY\u201923 results on May 4, reporting on a quarter that likely saw the company\u2019s sales contract amid weaker demand for","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=3642#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=3642"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=3642#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"How Will Apple\u2019s Earnings Trend As IDevice Sales Slow"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3642"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3642\/revisions"}],"predecessor-version":[{"id":3644,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3642\/revisions\/3644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/3643"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}