Apple Stock News
Apple is set to report their second quarter earnings for the period that ended June 27th after the market closes on Tuesday. Analysts have consensus expectations for earnings of $1.79 a share and revenue of $49.31 billion, in comparison to $1.28 and $37.43 billion a year ago. This quarter is usually pretty boring and slow for analysts, but this year there is some excitement around the iPhone and the Apple Watch.
Since the iPhone 6 and 6 Plus were released, they have delivered record breaking sales and profit margins. The product accounted for nearly 70% of Apple’s revenue during the previous quarter, but the iPhone’s sales usually trail off during the second quarter. That does not appear to be the case as much this year, though, as this version has a longer tail life and Apple is expected to report another 49.4 million iPhones sold according to analysts at Fortune Magazine, a 40% increase over a year ago. This number should be watched, as its importance is vital for the company.
The other big product to look for is the Apple Watch. The new product went on sale in April and will be included in the earnings report for the first time ever this afternoon. Apple does not plan on reporting watch sales, instead lumping it in with the “Other” category, which had sales of $1.7 billion last quarter. Analysts will have to do some math to come up with a number for the wearable device, separating it from the iPod, Apple TV, and Beats accessories, but look for questions during the conference call to try to get some information from management about how many devices sold during the quarter.