Apple Seeks to End Revenue Decline Streak in Upcoming Earnings Report

Apple Inc. is aiming to halt a notable sequence of revenue slumps this coming Thursday. Over the previous four quarters, the tech giant has recorded decreases in revenue, sparking curiosity about whether this trend might continue into a fifth quarter.

Analysts predict a tight outcome but anticipate a slight increase in Apple's revenue for the holiday season, with expectations averaging around $118 billion — a modest 0.7% rise from the $117.2 billion reported in the prior year.

Several factors contribute to the uncertainty surrounding Apple's performance, such as China's economic challenges and a temporary halt in Apple Watch sales due to a patent conflict. While a number of analysts forecast growth, others suggest the possibility of a further decline.

Apple's Revenue History and Forecasts

Since FactSet began recording quarterly data in 1998, Apple has never experienced five consecutive quarters of year-over-year revenue drops. Hence, this upcoming report could either make or break this two-decade trend.

The strength of iPhone sales, particularly in the Chinese market, remains a focal point for Wall Street. Despite growing competition and nationalism favoring domestic brands, Apple managed to emerge as the top smartphone seller in China over the past year.

Some analysts, like UBS's David Vogt, suggest there could be an ascent in Apple's overall revenue for the December quarter, brought on by increased iPhone inventory in China. However, this could pose risks for the subsequent March quarter. On the other hand, Evercore ISI's Amit Daryanani signifies potential for modest outperformance in December's results and for the March quarter's guidance.

Broader Insights and New Products

Investors are not only keen on iPhone dynamics but also on Apple's latest releases, such as the Vision Pro mixed-reality headset, which could reflect Apple's innovative edge. Despite the recent preorder launch, this product did not contribute to the past quarter's earnings and Apple is known for not disclosing sales figures for its newer devices.

As Apple's shares have slightly depreciated this year, in contrast to a gain in the S&P 500, the upcoming earnings call is eagerly awaited for signs of resilience or further concern.

Apple, Earnings, iPhone