Apple Balance Sheet: iPhone 17 Period and Investment Expectations

Be Prepared for Apple's Earnings Report

Apple will announce its earnings after the market closes on January 29, and investors will focus on this data to evaluate the reality of the iPhone 17 super cycle. Consensus expectations are concentrated at $138.4 billion in revenue and $2.67 earnings per share. However, how the record revenue expectations will be affected by rising memory costs and other challenges is a question of interest.

Chinese Market and Service Revenues

Especially the signs of recovery in the Chinese market stand out as an important part of Apple’s growth story. Additionally, service revenues are expected to exceed $30 billion on a quarterly basis. Apple's artificial intelligence strategy and its partnership with Google on Gemini could have an impact on the company's long-term valuation.

Market Expectations and Revenue Growth

The market expects Apple to achieve record revenue growth in this quarter, showing double-digit growth. The projected revenue of $138.4 billion promises an increase of over 11% compared to the same period last year. However, the most noteworthy aspect will be the effect of this revenue growth on profitability. Investors will closely monitor management's forecasts for 2026.

iPhone 17 and Transformation in the Chinese Market

The new upgrade cycle starting with the iPhone 17 is seen as the main story supporting Apple's valuation. Strong demand for the iPhone 17 Pro and market share gains in China are among the key factors that will determine the direction of the stock price.

Role of the Service Segment

Despite fluctuations in hardware sales, Apple's service segment continues to be a significant source of profit. It is expected that the App Store and other services will grow by 14% annually, surpassing $30 billion. This situation plays a critical role in enhancing Apple’s profitability.

Artificial Intelligence Strategies and Market Reactions

Apple’s artificial intelligence strategy is of great importance to investors. Its partnership with Google and the update of Siri are central to the company's long-term plans. However, rising memory costs and potential margin pressure in the market will be closely monitored by investors.

Conclusion

Apple's upcoming earnings report and the following periods will determine the market's reaction. The balance between the company's strong revenue expectations and increasing costs will continue to be the focus of investors.