Apple Q1 Earnings Preview

  Apple Q1 Earnings Preview Apple (NASDAQ: AAPL )'s expected earnings report. There are no signs of excitement before Apple (NASDAQ: AAPL )'s expected earnings report. Stocks are underperforming and demand for its flagship iPhone is slowing in China, the company's second largest market. This situation raises doubts that the company will not be able to meet expectations. Shares, which rose more than 75 % in 2020, rose just over 1 % this year. By comparison, the tech-heavy NASDAQ rose more than 9 % over the same period. For the world's most valuable company, this cautious phase came after a period of impressive sales growth, aided by new product launches, including the iPhone 12. Quarterly sales for the period ending December 26th surpassed $ 100 billion for the first time amid expectations of a new iPhone "super cycle" where millions of current users will upgrade their aging smartphones. The latest iPhone has the ability to access the next generation 5G cellular network that promises faster internet. In the last quarter of 2020, the new iPhone helped increase sales by 57 % in China, which has a more advanced 5G network. Also The company introduced other new devices, including a recently updated Apple Watch. Apart from that, the demand for iPads and Mac computers increased due to reasons such as working from home and distance education during the coronavirus epidemic.

Apple (NASDAQ: AAPL )'s expected earnings report.

iPad, Mac Demand Growth Cannot Be Sustained Analysts at Goldman Sachs are also cautious about the earnings report. “In our view, the current high levels of demand for both iPads and Macs are unlikely to be sustainable once the world reopens,” said Rod Hall, the bank's analyst. This may not be enough to move the shares further. " Despite this short-term uncertainty, Apple's stock remains top recommendation due to the company's very attractive product mix, innovation capabilities, and expanding service business. The company looks set to remain in a good position to sustain its growth momentum as the economy accelerates and consumers upgrade their devices. The company is working on a product that will combine the TV set-top box with a HomePod speaker and enable video conferencing via TV, Bloomberg reported this month. Apple is also a great stock choice for long-term investors seeking a decent return through dividends and capital gains. With share repurchases, the value of Apple shares per capita will increase as there will be fewer outstanding shares and a higher earnings rate will be distributed among fewer stakeholders. Bottom Line Expectations for a strong hit in today's earnings bulletin are low, with signs of slowing demand for Apple products. Shares continue to maintain their long-term appeal, based on post-epidemic demand and a strong return on capital program, analysts say.

Apple (NASDAQ: AAPL )'s expected earnings report.

 

Source: investing.com

 

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