Apple will be releasing their June quarterly earnings report tomorrow after the market closes, and will be answering questions from investors. Of course, investors are eager to know how Apple did, and expectations for this quarter are fairly high. But even more important for many is the guidance Apple will give regarding the September quarter. Wall Street always wants to know not only how Apple did, but how it expects to do in the coming quarter. And if, as everyone is expecting, Apple begins selling the iPhone 6 in September, that will certainly affect Apple's earnings forecast for the September quarter. So Apple's guidance should give a clue regarding what we'll see and when. Of course, Apple never explicitly says what's coming. If the guidance is especially high, it could mean we'll get something in addition to the iPhone 6 before the end of September.
In any case, market analysts are generally expecting that Apple will have strong earnings this past quarter, with many even suggesting Apple could report a record June quarter. One reason expectations are high is that analysts suspect that iPhone 5s sales have continued to be strong. Indications of this include the fact that sales of other devices have been tepid. In addition, increasing availability of LTE in some international markets, such as China, has likely led to increased sales. Also, in recent months Apple has expanded into many more markets.
Generally Wall Street is expecting Apple to have sold 35 to 36 million iPhones in the June quarter, compared to their record quarterly sales of 31 million a year ago. However, they also expect weaker sales of the iPad, with an average estimate of 14.4 million units compared to 14.6 million a year ago. But their estimates vary widely, ranging from 12.6 million to 16 million, so one gets the feeling they really have little idea what to expect. What are reasons for a possible decline? People tend to keep their iPads longer, and also there's a lot of competition in the market now. Plus, most people who want a tablet computer now have one, so the device is no longer a new category.
Of course, these overall high expectations create pressure on Apple. If Apple has a strong quarter, but less than the Street is expecting, the stock will likely fall.
For more information on what to expect, check out this informative article on CNET.
