In the last three months of 2020, Apple Inc launched its flagship iPhone 12 weeks later than the normal iPhone debut and closed some of its stores due to the pandemic.
However, according to IBES Refinitiv on Jan.26, Wall Street is still expecting record quarterly earnings from its Cupertino, California company’s Signature when it reports first-quarter tax revenue on Wednesday with an estimated $ 59.8 billion. Apple topped the numbers and probably overshadowed its record $ 61.58 billion in iPhone sales in the first quarter of fiscal 2018.
Analysts have significantly increased the timing of the iPhone 12 lineup, which has a new look, 5G connectivity for cellular data, and new models at the top and bottom of the size range.
“They have an extremely good understanding of what their refresh cycle looks like and when waves are possible and whey they are not,” said Ben Bajarin, head of consumer technologies at Creative Strategies. “Every bit of data across China and Europe has shown that not only was the installed base getting older, but people were not refreshing. I think (Apple) knew it would be a heavy refresh cycle.”
Analysts also expect a large number of Mac sales of $ 8.69 billion, according to data from Refinitiv on 26 January, thanks in part to the introduction of models with the first central processor chip for their laptops and desktops that Apple itself designed it. “Overall, analysts expect $ 103.28 billion in sales and earnings per share of $ 1.41 for Apple’s first fiscal quarter.”
A “super cycle” of growth in iPhone sales after several more modest years is nothing new for Apple – the company’s previous boom came after it announced the iPhone X, with a new design. During previous cycles, Apple’s shares were generally traded at lower price /profit rates than its rivals, due to Apple’s dependence on the iPhone.
But those rates increased last year, and Bernstein analyst Toni Sacconaghi wondered how far they can go.
“At 33x consensus (fiscal year 2021 earnings per share), and buyside expectations above the Street’s, we struggle to see case for material outperformance in (Apple), absent a surprise product announcement or migration to a bundled hardware subscription model,” he wrote in a note to clients. More