Apple Q1 Earnings: Analyst Downgrades Amid iPhone Sales Concerns
Summary:
Apple (AAPL) is set to report its first-quarter earnings on Thursday, with analysts predicting lower-than-expected results due to concerns over iPhone sales. Apple Intelligence, the company's AI platform, has failed to meet initial expectations for driving iPhone upgrades. Despite analysts' concerns, Apple is expected to post revenue and earnings growth, driven by its iPhone, Services, and Greater China segments.
Key Points:
* iPhone market share fell 1% year-over-year in Q4, despite overall smartphone shipments increasing by 3%.
* Apple's Apple Intelligence updates have not significantly driven iPhone upgrade cycles.
* Apple is projected to report $2.35 EPS on $124.1 billion in revenue, surpassing last year's figures.
* Greater China revenue is expected to grow despite previous declines.
* Apple is expected to release several new products, including an iPhone SE, iPads, and MacBook Airs, to boost revenue.
* Over the last 12 months, Apple shares have grown by 24%, underperforming Microsoft (MSFT) and Nvidia (NVDA).
Impact on Investors:
Investors should monitor Apple's earnings report for insights into the performance of its iPhone, Services, and Greater China segments. The company's ability to address concerns over iPhone sales and drive AI innovation will be crucial for future growth.