Apple's Quarterly Report: Critical Data for Investors

Apple (AAPL) is set to announce its fourth-quarter earnings on Thursday evening. This report will provide investors and analysts with insights into the sales performance of the company's latest iPhones. The data becomes even more significant, especially after Apple reached a market value of $4 trillion.

According to Counterpoint Research, iPhone 17 sales saw a 14% increase in the first 10 days compared to iPhone 16 sales in the U.S. and China. The iPhone 17 series comes with several innovations and improvements over the iPhone 16. Notably, design enhancements are prominent in the iPhone 17 Pro and Pro Max. Additionally, Apple introduced the new iPhone Air model, which replaces the iPhone Plus model with a thinner and lighter design.

Apple also unveiled its new MacBook Pro and iPad Pro models powered by the M5 chip, along with new Apple Watch and AirPods. Furthermore, the Vision Pro was released with the updated M5 chip for users.

For this quarter, Apple's earnings per share is expected to be $1.77, with revenue estimated at $102.1 billion. Last year, these figures were $1.64 and $94.9 billion, respectively.

Apple's iPhone revenue for this quarter is projected to be $49.3 billion, marking a 6.7% increase compared to last year's $46.2 billion. However, the fourth quarter captures only a small fraction of iPhone 17 sales, as the phones were released only a few weeks before the end of the fiscal period. Nonetheless, any revenue generated will provide guidance for the following year.

Apple's second-largest business segment, services revenue, is expected to reach $28.2 billion, reflecting a 12% year-over-year increase. Revenue from the iPad and Mac segments is forecasted to be $7 billion and $8.6 billion, respectively. Wearables revenue is expected to decline by 4.5% this quarter to $8.6 billion.

Apple's revenue from China is anticipated to rise by 9% to $16.4 billion. However, while Counterpoint notes that iPhone sales have increased year-over-year, Jefferies analyst Edison Lee expresses that the momentum is slowing down.

Lee stated in a note to investors, "Our tracking shows reduced delivery times across all models and markets, with a few exceptions." Delivery times refer to the period between ordering an iPhone model and its delivery. When demand for products exceeds expectations, delivery times are extended. Short delivery times indicate that iPhone sales are within or below expectations.

Lee added, “The delivery time for the iPhone 17 Pro has nearly ended, and the delivery time for the iPhone Air in China has also dropped to nearly zero. The base model still shows the strongest delivery time trend. The resale prices for iPhone 17 Pro have become discounted, and the premium for the 17 Pro Max has largely disappeared. However, industry checks suggest that growth in China is accelerating, which challenges our negative outlook.”