When Apple Inc. reports results on Tuesday, investors will seek insight into upcoming new iPhones and how the current flagship iPhone X is performing. They also want executives’ latest thoughts on the growing trade dispute between the U.S. and China.
The Cupertino, California-based technology giant is expected to announce fiscal third-quarter revenue of $52.3 billion, according to analyst estimates compiled by Bloomberg. That’s in line with the company’s recent forecast and translates to year-over-year revenue growth of about 15 percent, the strongest for Apple’s June quarter since 2015. Higher iPhone average selling prices, increased services revenue, and unit sales growth for the Apple Watch should drive the expansion, analysts say.
Apple sold about 41.8 million iPhones in the third quarter, up almost 2 percent from a year earlier, according to Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co. Because of the $1,000 iPhone X starting price, analysts on average are expecting iPhone revenue to grow about 17 percent year-over-year, Sacconaghi said in a recent note. He’s looking for an average iPhone price of $690, up from $606 in the year-ago quarter.
Steady sales growth like this suggests consumers are still buying iPhones despite expectations that Apple, for the sixth year in a row, will revamp its smartphone lineup in or around September.
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