Apple Q1 Earnings Preview: iPhone Sales Face Scrutiny Amidst AI Push
Key Metrics:
* Earnings Per Share (EPS): Est. $2.35
* Revenue: Est. $124.1B
* iPhone Segment Revenue: Est. $71B
* Services Segment Revenue: Est. $26B
* Greater China Revenue: Est. $21.5B
Apple Intelligence and iPhone Sales:
* Apple's AI platform, Apple Intelligence, faces scrutiny for its impact on iPhone sales.
* Analysts express concerns that Apple Intelligence has not significantly boosted upgrades to the iPhone 16 series.
* Apple plans to continue releasing AI updates, but hardware upgrades remain a stronger selling point.
Financial Performance Expectations:
* Q1 revenue expected to rise 3.8% YoY to $124.1B.
* EPS projected to increase by 7.8% YoY to $2.35.
Product Pipeline and Growth Drivers:
* New products planned for release, including an entry-level iPhone SE, iPads, and MacBook Airs.
* Strong growth expected in iPhone, Services, and Greater China segments.
Industry Comparison:
* Apple shares have gained 24% over the past year, comparable to Google's 27%.
* Meta and Nvidia have outperformed, with gains of 69% and 102%, respectively.
* Microsoft has lagged behind, rising only 8%.
Additional Insights:
* China remains a challenge for Apple, with sales declining in recent years.
* Apple Intelligence aims to drive long-term iPhone growth.
* Hardware upgrades continue to be a key factor in consumer purchasing decisions.