Apple Expected to Report Strong Summer Revenue of $50B+ as Focus Shifts to iPhone X Launch Quarter

[MacRumors]

Apple is set to report its earnings results for the fourth quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today.

The fiscal quarter reflects Apple's sales between July 2 and September 30 of 2017.

Apple provided the following guidance for its fourth quarter back on August 1:
o revenue between $49 billion and $52 billion
o gross margin between 37.5 and 38 percent
o operating expenses between $6.7 billion and $6.8 billion
o other income/expense of $500 million
o tax rate of 25.5 percentApple's guidance suggests the company will report at least its second best fourth quarter earnings results in its history.

Wall Street analysts forecast that Apple will report $50.7 billion revenue and earnings per share of $1.87, according to 29 estimates averaged by Thomson Reuters.

A quarter-by-quarter look at Apple's revenue since the 2009 fiscal year:Fourth Quarter Revenue
o 2013: $37.5B
o 2014: $42.1B
o 2015: $51.5B
o 2016: $46.9B
o 2017: $49B+

MacRumors.com compiled fourth quarter estimates from several financial institutions and analysts tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in quarterly revenue.

Apple's fourth quarter earnings results will provide the first official indication of how well the iPhone 8 and iPhone 8 are selling. The devices became available to pre-order on September 15, just over two weeks before the quarter ended, and launched in stores one week later on September 22.

Multiple reports have suggested that demand for the iPhone 8 and iPhone 8 Plus has been tepid, but that could be a side effect of pent up demand for the iPhone X. Apple staggered the release of its high-end smartphone, for which pre-orders began October 27, nearly six weeks after the iPhone 8 and iPhone 8 Plus.

The most interesting takeaway will be Apple's guidance for the quarter we're in right now, which encompasses the launch of the iPhone X and the busy holiday shopping season. Over the past year, analysts have repeatedly predicted the highly-anticipated device will drive a significant "supercycle" of upgrades.

A high guidance range would suggest that Apple expects the iPhone X to sell very well, while a lower one would suggest that either demand is lower than thought or that Apple continues to face issues with ramping up supply of the device.

In addition to iPhone sales, investors will be looking for continued growth of Apple's services category, which includes the likes of the App Store, iTunes Store, Apple Music, Apple Pay, AppleCare, and licensing fees. Apple's services revenue grew 22 percent to an all-time record of $7.3 billion last quarter.

Apple's services category has become the size of a Fortune 100 company, according to chief executive Tim Cook.

Cook and Apple's financial chief Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time. MacRumors.com will transcribe the call as it unfolds for those unable to listen.

Article Link: Apple Expected to Report Strong Summer Revenue of $50B+ as Focus Shifts to iPhone X Launch Quarter

 

[udayan81]

Apple is doomed. Only $49B

 

[Chupa Chupa]

If Apple has a beat here it will be quite impressive given how it's believed the iPhone 8 sold so slowly. It would likely mean a lot of iMacs and iPads were sold last quarter. That would be fantastic news. What I hope does not happen (as a fan, not investor) is that the services side eclipses Mac revenue. That would make me sad.

 

[calzon65]

I would assume an uptick when they are pushing $1,000 phones, but I wonder how long it will last after the initial stampede.

 

[Xavier]

The slow death of the iPod continues.

 

[Woyzeck]

Apples problems are not (yet) on the financial side - as was with Microsoft ten years ago.

 

[Glideslope]

If Apple has a beat here it will be quite impressive given how it's believed the iPhone 8 sold so slowly. It would likely mean a lot of iMacs and iPads were sold last quarter. That would be fantastic news. What I hope does not happen (as a fan, not investor) is that the services side eclipses Mac revenue. That would make me sad.

Mac revenue will be around 5.5 billion. Services will be around 7.2 billion give or take a couple hundred million. Most likely a give. It's already there.

 

[bbeagle]

The slow death of the iPod continues.

The iPod is being reborn as the Apple Watch.

 

[Winni]

Apples problems are not (yet) on the financial side - as was with Microsoft ten years ago.

Oh, well. Microsoft's problems are still not on the financial side.

 

[CB1234]

Apples problems are not (yet) on the financial side - as was with Microsoft ten years ago.

I didn’t realise Microsoft was bankrupt now!!! We always learn new things on macrumors.…

 

[Chupa Chupa]

Mac revenue will be around 5.5 billion. Services will be around 7.2 billion give or take a couple hundred million. Most likely a give. It's already there.

Yeah, just wishing maybe that the updated Macs help bridge the gap.

 

[TimeSquareDesi]

Correction:
Apple Expected to ABSORB Strong Summer Revenue of $50B+ as Focus Shifts to iPhone X Launch Quarter

 

[MLVC]

I'm just hoping they'll announce Apple Pay for the Netherlands, Germany, Belgium, Poland etc. today. Fingers crossed!

 

[mariusignorello]

The slow death of the iPod continues.

It’s already dead. The iPod touch is just an iPhone without cellular capabilities.

 

[Winni]

Apple is doomed. Only $49B

As with IBM, Microsoft and many of the other big players... The problem lies not in the financial corner. It has something to do with RELEVANCE. I remember the time when the IT industry was afraid of IBM, and Microsoft was just another insignificant startup and Apple was - literally! - nowhere to be seen. Then came the rise of the PC clones and with it the rise of Microsoft. And Apple was still insignificant, because the world was now using Windows. The rise of the Internet changed all that, and then mobile gadgets turned the classic desktop into an almost irrelevant afterthought. We're now in a phase where market for mobile gadgets has matured AND saturated. It won't be long before the next big thing emerges, and the game - and with it the dominant player - will change again. In the meanwhile, companies are still buying IBM services and Microsoft Windows desktops and consumers are still buying Android and iOS smartphones and tablets. Those companies still make a ton of money. However, dominating tomorrow's technology they don't...

 

[CB1234]

As with IBM, Microsoft and many of the other big players... The problem lies not in the financial corner. It has something to do with RELEVANCE. I remember the time when the IT industry was afraid of IBM, and Microsoft was just another insignificant startup and Apple was - literally! - nowhere to be seen. Then came the rise of the PC clones and with it the rise of Microsoft. And Apple was still insignificant, because the world was now using Windows. The rise of the Internet changed all that, and then mobile gadgets turned the classic desktop into an almost irrelevant afterthought. We're now in a phase where market for mobile gadgets has matured AND saturated. It won't be long before the next big thing emerges, and the game - and with it the dominant player - will change again. In the meanwhile, companies are still buying IBM services and Microsoft Windows desktops and consumers are still buying Android and iOS smartphones and tablets. Those companies still make a ton of money. However, dominating tomorrow's technology they don't...

Change is always welcome. Let’s enjoy Apple’s products whilst they are still relevant.

No point in getting gloomy about something that may or may not happen in future.

 

[WannaGoMac]

Edit for mis-reading of expense type.

Yet we still wait for updated Mac Mini and deal with increasing amount of software bugs. Go hire more developers Apple, you can certainly afford it!

 

[yaxomoxay]

As with IBM, Microsoft and many of the other big players... The problem lies not in the financial corner. It has something to do with RELEVANCE. I remember the time when the IT industry was afraid of IBM, and Microsoft was just another insignificant startup and Apple was - literally! - nowhere to be seen. Then came the rise of the PC clones and with it the rise of Microsoft. And Apple was still insignificant, because the world was now using Windows. The rise of the Internet changed all that, and then mobile gadgets turned the classic desktop into an almost irrelevant afterthought. We're now in a phase where market for mobile gadgets has matured AND saturated. It won't be long before the next big thing emerges, and the game - and with it the dominant player - will change again. In the meanwhile, companies are still buying IBM services and Microsoft Windows desktops and consumers are still buying Android and iOS smartphones and tablets. Those companies still make a ton of money. However, dominating tomorrow's technology they don't...

And I don’t see a problem with that. If a new “Apple” takes over the market, with good products, so be it. It’s not and it shouldn’t be a religion. Sooner or later everything becomes irrelevant.
[doublepost=1509634066][/doublepost]

I didnt realize how insanely profitable Apple is until seeing these numbers. 6.8 billion expenses against around 50 billion in revenue!? Yet we still wait for updated Mac Mini and deal with increasing amount of software bugs. Go hire more developers Apple, you can certainly afford it!

6.8B in operating expenses.

 

[iPhone_X]

Next quarter is also looking better as iPhone X orders seem to be improving. Mine went from November 17-24 to November 6th this morning. It sucks to not get an iPhone on launch day, but Monday isn't bad at all considering my order took forever to go through. And as luck would have it, I'll be off work that day!

 

[djcerla]

If Apple has a beat here it will be quite impressive given how it's believed the iPhone 8 sold so slowly. It would likely mean a lot of iMacs and iPads were sold last quarter. That would be fantastic news. What I hope does not happen (as a fan, not investor) is that the services side eclipses Mac revenue. That would make me sad.

Start thinking about the iPhone as a lineup rather than a year model.

The lineup got much cheaper after the introduction of the iPhone 8, and economics laws are still in place afaik,

 

[Mac32]

The prices on Apple products are getting out of control under Tim Cook. At some point there will be a backlash, it's only a matter of time.

 

[WannaGoMac]

And I don’t see a problem with that. If a new “Apple” takes over the market, with good products, so be it. It’s not and it shouldn’t be a religion. Sooner or later everything becomes irrelevant.
[doublepost=1509634066][/doublepost]

6.8B in operating expenses.

Ooh good catch.
[doublepost=1509635054][/doublepost]

The prices on Apple products are getting out of control under Tim Cook. At some point there will be a backlash, it's only a matter of time.

I'm not so sure. They still overall provide a better experience compared to cheaper solutions.

 

[melendezest]

It is obvious that the Apple I came into in 2001 and loved for 10 years is dead as frakkin' fried chicken.

The Apple of today has nothing to offer me, and revenues makes it look like they're in a trajectory to never do so.

Yet here I am, still hoping for a bone that may never come...

 

[skillwill]

For everything every one on here (inc. myself) complains about, this is literally the only thing that matters. And as long as these are the numbers and this is what's happening, we can say iOS 11 lag this, notch that. It won't matter one jot. This is all that does.

 

[iTom17]

I'm just hoping they'll announce Apple Pay for the Netherlands, Germany, Belgium, Poland etc. today. Fingers crossed!

This please!