Analysts predict Apple will announce a jump in revenue when it reveals the financial results for the June quarter Thursday. The iPhone-maker has reported very few revenue increases in the past 18 months, so this is cause for excitement among investors.
Positive expectations helped keep Apple the world’s most valuable publicly traded company for almost three weeks now.
Apple in the financial doldrums
During 2023’s December quarter, Apple revenue increased 2% year over year. That’s the only quarterly revenue increase the company has enjoyed since September quarter of 2022. It dropped the other five quarters.
That’s because the Apple is still recovering from the heady days of the pandemic, when people forced to work or attend school from home snapped up computers in huge numbers. In 2021, the company saw quarterly revenue YOY growth as high at 54%.
The entire computer market has been sluggish since then, as consumers have seen little need to replace PCs, phones ands tablets bought only a few years ago during the pandemic. Especially since so many returned to the office and classroom.
However, the slowdown might be ending.
Apple Q3 2024 results could be a turnaround
Analysts expect a 3% annual increase in revenue to be the highlight of Apple’s June quarter financial report, according to data compiled by Visible Alpha. The prediction for net income is $24.6 million, a 7% YoY increase.
Apple “won back some customers in China with big iPhone discounts and sold more high-margin iPads thanks to a refreshed design,” reported Reuters.
The 2024 iPad Pro and iPad Air launched during Apple’s June quarter, and new high-end tablets usually bring a rush of revenue for Apple. Analysts think revenue from the company’s closely watched services segment (the App Store, Apple Music, etc.) grew 13%.
Still, most analysts think global iPhone sales dropped 2%. And if Apple’s Q3 2024 revenue comes up short of analyst’s expectations, the company’s stock price could take a tumble.
To be clear, Apple turned a profit last quarter. It always brings in hefty sums for investors. The only question is, how much profit? And does it justify a stock price in the stratosphere?
Looking ahead to AI
A company’s future is at least as important as its past. After Apple announces the financial results for the June quarter Thursday, CEO Tim Cook will hold a conference call with investors during which he’ll take questions. Many of these likely will focus on Apple’s plans for artificial intelligence.
Many analysts predict that the AI features dubbed Apple Intelligence will bring a spike in iPhone sales. Apple’s AI software only supports the two iPhone 15 Pro versions and no previous ones at all. All the upcoming 2024 iPhones will be able to handle it, so many of the people interested in Apple Intelligence will need a new iPhone 16. Investors on Thursday’s call surely will try to get Apple’s chief executive to speculate on how AI will affect future iPhone sales.
Excitement about AI helped push the AAPL share price up 34% in value since mid-April. That’s given Cupertino a market capitalization of $3.4 trillion, more than any other publicly traded company.
