Apple will be reporting its financials for the third quarter of fiscal 2012 on July 24. Here are some insights into what to expect from the consumer electronics giant this earnings season.
The iPhone 4S was launched last October and drove Apple’s revenue growth for the following two quarters. However, as consumers gear up for the launch of the next iPhone — the iPhone 5 — in October 2012, iPhone sales in the last quarter are expected to be relatively lower.
Apple always offers low guidance numbers, and then positively surprises analysts with better actual figures. However, it will be difficult for it to beat Wall Street consensus analyst estimates, given a slowdown in iPhone sales as well as a general macroeconomic weakness in China and Europe.
Since the iPhone accounts for a major portion of Apple’s overall profits, this will probably lead to significantly lower revenue numbers compared to last quarter.
The iPad 3 has been seeing some crazy sales numbers since its launch in March. This will be the first full quarter since the launch of the tablet, and we expect the revenue growth to be driven primarily by the launch of the iPad 3.
The iPad’s launch in China, particularly, could drive a huge jump in revenues.
Estimates suggest that Apple sold nearly 29 million iPhones in the June quarter, down from 35 million in the March quarter. However, it is expected to have sold around 15 million iPads this quarter, which could potentially compensate for the fall in iPhone sales.
The coming year is going to be very eventful for Apple, as it launches the next iPhone in October, possibly the iPad Mini before the end of the year, as well as the next version of the iPad in March 2013.
Apple will also have sold a ton of Macs, iPods and other auxiliary stuff, and will also generate some revenue from iTunes and the App Store, but that is insignificant compared to its iPhone and iPad sales.
Analyst expectations point to estimated revenue of $37.2 billion in Q3 FY12, with earnings per share of $10.35.