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Apple earnings report shares news on iPhone 14 sales

Apple optimistic about iPhone 14 lineup sales
Apple optimistic about iPhone 14 lineup sales

Image source: Mac Rumors

Apple will finally reveal iPhone 14 sales after weeks of rumors about falling demand, with people expecting the lineup to flop.

September quarter earnings report

Apple released earnings results for the September quarter, including the two-week sales for the iPhone 14 line.

Despite the limited time, the company’s results and commentary for the holiday quarter provide insight into the performance of the company and its core products.

Like many other companies, Apple is currently facing an economic downturn.

Last month, Apple’s shares fell after the company abandoned plans to increase production of the iPhone 14 models.

The plans were proposed due to lower-than-expected demand.

Analysts expect the company to post revenue of $88.9 billion, up more than 6% year-over-year.

This marks a slowdown from revenue growth of 29% in the prior year’s quarter.

Apple was expected to report a flat profit from a year earlier at $20.4 billion.

Read also: Quick news: Apple will be introducing more ads on iPhones and other devices, according to reports

Sales factors

Recent Apple iPhones lack groundbreaking features and major hardware redesigns that encourage users to upgrade.

Consumers are facing high inflation this year and fear a potential recession, which makes it challenging to get them to buy a new device.

The dollar’s strength makes the devices more expensive for international consumers, which make up a significant part of Apple’s business.

Dan Morgan, a senior portfolio manager at Synovus Trust Company, issued a note to investors in which he states:

“The consumer electronics industry is headed for a period of slow growth.”

Apple no longer focuses on the number of iPhone units sold.

Now, the total sales of the product segment are the focus, complicating the demand analysis.

Read also: The Upside to Getting a New Phone From Your Carrier

Services segment

Apple watchers will likely focus on the company’s services, like paid subscriptions.

The segment is seen as the essential business unit to offset slowing growth in parts of the hardware business.

Brian White of Monness, Crespi, Hard, says services revenue growth will slow slightly to 10% year-over-year.

Changing consumer behavior could also lead to slower services.

In an earnings call for Google parent Alphabet this week, CFO Ruth Porat reveals that Google Play’s revenue was down slightly.

The decline stems from user spending on the platform and engagement in games since the first pandemic.

Earlier this week, Apple raised prices for music and TV streaming services to boost sales in the future.


Apple earnings may offer a hint about the iPhone 14’s success

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