Everyone is worried about Apple iPhone 14 sales. Here’s why

Everyone is worried about Apple iPhone 14 sales. Here’s why

When you think of Apple, you probably think of the iPhone. Or maybe a Mac. When you think of an Apple bank account, you explode in Over $179 billion in cash And marketable stock, you’d probably imagine a pile of money bigger than anything you’ve seen in cartoons or in the movies. On Thursday, Apple will likely take on a new role as well, as a leader in our volatile economy.

The Cupertino, Calif., tech giant is set to release a financial report for its fourth fiscal quarter this Thursday, releasing details about its revenue and profit between July and September. It’s not the months that cover the most important holiday shopping season, as Apple typically generates more sales than the total economic output of many countries. But it will include two weeks of sales for its newly released iPhone 14the most recent Apple Watch and promoted AirPods Pro like that.

The report may also be a sign of the health of the global economy. Surveys show that many people are increasingly convinced that the world has entered into a range Painful stagnation that may last for a long time. Meanwhile, lawmakers and business leaders are struggling to combat pesky inflation, now above 8%Central Russia The ongoing war on UkraineWhich Help artificially raise energy prices.

The tech industry, once a bright spot in the economy, is starting to feel the pinch. Google native alphabet publishing Weaker-than-expected third-quarter earnings Tuesday, driven in part by issues such as foreign exchange rates and low spending from advertisers. Last week, Snapchat manufacturer Snapchat reported similar difficulties to investors, and posted a slowdown in sales growth that scared investors.

Device makers may not perform better. Global smartphone shipments are expected to decline by more than 6% this year to 1.27 billion units As market researcher IDC said, “record inflation, geopolitical tensions and other macroeconomic challenges have significantly reduced consumer demand.”

Coins on the table with the signs of mathematical formulas

A shaky global economy may lead to poor holiday shopping.

Sarah Teo / CNET

Analysts, on average, seem convinced that Apple may beat the trend. The company expected earnings of $1.27 per share, up about 2% from the same period last year, according to an analyst average. Surveys published by Yahoo Finance. That would translate to $88.9 billion in sales, up about 7% from last year.

Even so, analysts warn, quirks have been mixed up in the financial calendar Alarming early holiday shopping trendsIt asks more questions than answers.

“We are concerned that Apple may have been benefiting from Covid, amid work/learning from home and strong consumer spending, which could reverse, particularly with changing consumer spending priorities,” Bernstein Research analyst Tony Sakunagi wrote in a letter to investors last week. .

The key, he said, is what Apple will say about iPhone 14 sales so far. “Investors should expect Apple to be optimistic about the iPhone 14, but it may or may not necessarily reflect the eventual success of this cycle.”

An Apple spokesperson did not respond to a request for comment ahead of the company’s earnings.

Tim Cook at Apple iPhone 14

Analysts will listen closely to what Apple CEO Tim Cook (right) has to say about how demand for the iPhone is shaping up.

James Martin / CNET

All about the iPhone

Investors and industry watchers always seem nervous about Apple’s iPhone sales. after every thing, This unique production line It represented more than half of the company’s $365 billion in sales last year. It’s no surprise, then, that industry watchers are watching with alarm for any potential signs of how to sell.

In any given week, there seems to be new word about high or low demand, and Change manufacturing plans response. This time, rumors indicate that The most expensive iPhone 14 ProStarting at $999, it performs better than its cheaper cousins, The $799 for iPhone 14 And the $899 for iPhone 14 Plus.

“We continue to expect strong iPhone results despite concerns about iPhone production cuts,” Evercore ISI analyst Amit Darianani wrote in a note Monday, adding that his team’s research and surveys indicate strong demand.

Part of the reason some industry watchers are more optimistic about Apple is that, as Cowen Equity Research analysts said, more expensive “premium” smartphones haven’t seen as much demand as other cheaper products.

Although Apple may end up with a data point in the debate over the health of the global economy, Morgan Stanley analysts said they don’t expect much from anything that Apple says Thursday will “calm” any fears of a spending slump between consumers.

Apple executives will answer questions from analysts at A publicly broadcast group call Shortly after the company released earnings on Thursday afternoon.

#worried #Apple #iPhone #sales #Heres

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
سيتات آورج 2022 سيتات آورج 2022