Apple’s Third Quarter Expected To Reveal Strong Growth

On Tuesday, the results for the so-called “boring quarter” of Apple are expected to be released as many investors wait for any signs for the timing and pricing of the next generations of iPhones.

Apple is anticipated to report a revenue amounting to $52.4bn (£40bn) across its fiscal third quarter for the three months ending in June. According to consensus estimates that were collated by S&P Global Market Intelligence, the figure represents a year-on-year growth of more than 15 percent.

The springtime months are often the time when Apple records it smallest figures in terms of revenue for its prominent sellers such as the iPhone, as customers hold off on making any purchases before the largest annual product reveal of the company that is usually scheduled in September.

The iPhone made up 62 percent of the sales of the company during its second quarter. It sold 52.2m of its trademark smartphone with the latest iPhone X maintain the top spot of the sales list every week.

The net income for the quarter is somewhere at $10.9bn, with the earnings per share anticipated to be at $2.18 at a rise of 30.5 percent as compared to the same quarter last year.

The services business of Apple will also be hotly-anticipated, after Tim Cook, its chief executive, said that the tech giant is striving to double the company’s revenue in the sector by 2020.

This quarter, Apple Music, its music-streaming subscription service, is widely believed to be in a position to overtake Spotify, its rival, in terms of subscriber numbers in the United States.

The company’s so-called other products segment includes favourites such as Apple TV and the HomePod speaker. It has also experienced a massive boost in recent quarters and will be a mark of continuing performance for Apple. The segment took in $3.95bn in the second quarter of the company, at a year-on-year increase of 38 percent.

Within the same segment lies wearable technology such as AirPods and the Apple Watch, which observed an increase in sales of almost 50 percent last quarter as compared to that of last year. Apple is anticipated to release an update for both of the products this coming September, with reports of wireless charging for the earphones and a larger display size for the watch.

Last May, the tech giant announced a $100bn share buyback, as Apple tried to return some of its $145bn in cash to its investors.

The company is currently sitting at $938.7bn. Wall Street will be surely be watching to see if this quarter could finally send Apple to a trillion-dollar market valuation, making it the first company ever to be able to do so.