Apple Inc. will get a chance to give wary investors some much needed inspiration with earnings on Tuesday.
Apple shares have fallen 7 percent in the past nine trading days as ominous signals from iPhone suppliers cast a shadow over the world’s most-valuable publicly traded company. Wall Street analysts responded by further reducing estimates for iPhone sales.
When the company reports after the market closes on Tuesday, iPhone numbers and a revenue forecast will be closely watched. Apple will also likely reveal plans to return more money to shareholders, along with details on sales in China and growth in services.
Here’s a breakdown:
The iPhone is Apple’s most-important product, contributing about two-thirds of revenue. So the performance of this gadget will be scrutinized first. The company is expected to report sales of 51.9 million iPhone units from the fiscal second quarter, along with an average selling price of $740, according to average analyst forecasts compiled by Bloomberg.
For the fiscal third quarter, analysts are looking for unit sales of 39 million and an average selling price of $691.
Following Apple’s previous earnings report in February, Chief Financial Officer Luca Maestri gave rare additional guidance, telling analysts on a conference call that iPhone revenue would grow by at least 10 percent year-over-year in the current quarter.
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