– Adjusted EPS: $2.02 expected, according to a Thomson Reuters consensus estimate
– Revenue: $53.02 billion expected, according to a Thomson Reuters consensus estimate
– iPhone unit sales: 52 million expected by FactSet consensus estimate
– Revenue guidance: $45.6 billion expected, according to a Thomson Reuters consensus estimate
Apple‘s iPhone sales not been expected to make a big leap from last year, as smartphone buying intent has fallen to a 9-year low, according to a survey of 4,075 North American consumers conducted by 451 Research and cited by UBS.
But Wall Street is counting on one key statistic to drive the company’s earnings higher later this year: 300 million iPhones may be set for an upgrade this fall, according to venture capitalist Gene Munster.
Apple is tight-lipped about its upcoming products, but analysts have predicted features like OLED displays, wireless charging, and even perhaps augmented reality could come to upcoming iPhone models — putting extra focus on the company’s research and development spending.
Services revenue
Meanwhile, Apple has invested in new content, like a Tribeca Film Festival movie, for Apple Music. It’s part of a growing source of revenue for Apple, services, which includes digital content, AppleCare, Apple Pay, licensing and other services.
Taxes and cash
Apple’s massive cash hoard could become a major windfall for the company under the new presidential administration, which campaigned to cut taxes on the repatriation of cash held overseas.
China
Apple’s biggest Asian revenue source has been under pressure, as the strength of the Hong Kong dollar dampens shopping from mainland China. Sales fell 12 percent year over year last quarter.
It’s a market where Apple faces ever-growing competition from local brands like OPPO, Vivo and Huawei. India is another growing market where Apple has to face down brands like Samsung and Xiaomi.
Warren Capital estimates that there was a nearly 2 percent decline in overall smartphone activations in China during the first quarter of this year, when companies like Xiaomi were favored.
Apple Watch and other products
Apple’s earnings report comes after Apple released a new version of its 9.7-inchiPad, and a special edition of the iPhone 7 and iPhone 7 Plus. It also added new watch bands for spring, with colors like berry, pollen, sapphire, azure, orange and red.
Macs, iPads and Watches make up a relatively small amount of Apple’s business — the company has not historically even disclosed Apple Watch sales. But it’s an area where Apple competes in the educational market with Chromebooks, and in the professional market with Microsoft’s new Surface line.