Apple is expected to report its fiscal fourth quarter earnings after the bell Thursday. The September quarter is key, as investors look for Apple to lock in a strategy of boosting prices to offset slowing sales.
Here’s what Wall Street is expecting:
- Earnings: $2.78 per share, according to Refinitiv consensus estimates
- Revenue: $61.57 billion, according to Refinitiv consensus estimates
- iPhone sales: 47.5 million, according to FactSet and StreetAccount estimates
- iPhone average selling price (ASP): $750.78, according to FactSet and StreetAccount estimates
Apple has posted only modest sales growth in its flagship iPhone segment for several quarters. To compensate, it’s increased the price of the iPhone, boosting its ASP and overall profit.
For Apple’s fiscal third quarter ending in July, the company posted an ASP of $724 — a nearly 20 percent increase from the year-ago period. For the September quarter, investors will want to know that jump wasn’t a fluke.
Analyst ASP projections of $750.78, based on FactSet and StreetAccount estimates, represents a year-over-year increase of 21.5 percent. Analysts are expecting just 2 percent growth in iPhone unit sales.
A beat on ASP could signal strong sales for Apple’s highest-priced smartphone models: the iPhone XS, starting at $999, and iPhone XS Max, starting at $1,099. Both went on sale about a week before the end of the September quarter. It could also indicate that users are settling into higher device prices.
Outside the iPhone
Apple’s effort to grow revenue outside the iPhone could get a boost in the September quarter, if analyst projections are on track.
Wall Street is expecting Services revenue to top $10 billion — a year-over-year increase of 20 percent — according to FactSet and StreetAccount estimates. The catch-all category includes revenue segments like App Store sales, Apple Music subscriptions and iCloud storage.
Apple’s Other Product revenue is projected to grow by nearly 30 percent year-over-year, based on FactSet and StreetAccount estimates.
