What We’re Looking For in Apple’s Q1 Results

Apple will release results for the first quarter of fiscal 2023 this week. We’ll see how Apple does in the reverse current plaguing the global economy.

Here’s what to keep in mind when the results are announced on Thursday afternoon.

Hardware sales are important, but not everything

we all expect Some bad news for iPhone sales, but how bad? Supply chain issues have had some impact on availability, but in some economies there is a difference. Smartphone sales decline across the boardBut many data points tell us Apple was doing better than others.

Coming to the financial details, the recent turmoil surrounding Apple’s hardware sales (iPhone, iPad, Mac) has meant that while the company has experienced some challenges, not suffering to the same extent Competitors are seeing their real market share in all sectors rise and indeed rise.

In other words, Apple outperforms its competitors. But to what extent?

Two data points may be of interest: how many Android switchers have joined the iPhone community in the last three months, and how many large corporations/government agencies have Mac introduced?These data points represent a transformation, which in Apple Plex means an extension of faith.? As such, Apple noted that more than half of the iPads sold in Q4 2022 were aimed at people new to the platform.

can’t save your way toward recovery

While all other tech companies seem to have started layoffs, Apple’s track record during the downturn has been to keep its hard-earned employees on board rather than indulge in mass layoffs. rice field.

look, Apple didn’t hire at these rates Apple CEO Tim Cook has consistently emphasized the company’s belief in investing its way to prosperity.

Mass layoffs never look good for a global company that has made eye-popping profits for years, so Apple, like the rest of the valley (as you know), has been successful and Try to run a cloud-based service on a shoestring budget and human sweat. Or are you planning to invest for the long term?

One thing I expect is that hiring will continue to be very strategic and the cadence of product releases may change slightly.

Strategic significance of service

Arguably, the current tight financial situation is exactly what Apple’s services segment was designed to protect the company from.

Increasing your average revenue per unit is not only smart business, it’s also a great tool to provide financial stability during difficult times.

As Apple makes various content investments to enhance its services and is at risk of entering what is expected to be another multi-billion dollar market related to those media products, Apple’s The health of the service segment will be very tough. A lot in people’s minds.

Where is Apple in the supply chain shift?

We all know that Apple has a huge investment in India. At first, this seemed only to open up the world’s second largest smartphone market.However, the strategy changed and now it maximize production there.

Estimates vary, but the company is believed to be working on manufacturing the surroundings. 25% to 50% of products in India in the next few years.

I can still remember some of the ridicule when Cook started investing in India, but I doubt those people are laughing now. The burgeoning service segment and journey to India show what a highly strategic leader can achieve by working with an already phenomenally successful company.

Another question: Will Apple delay hardware introductions to lay out new manufacturing facilities to support future growth?

What will you learn about international prospects?

What does Apple’s international sales data tell us about individual markets? While we all know, UK economy crumbling under the weight of Brexitare other regions seeing a recovery? Perhaps Apple’s internationally collected data provides a changing reality of economic recovery in the post-COVID, post-global era?

China’s luxury market recover rapidly, and the Biden administration appears to be delivering solid results for the US economy. Even mainland Europe appears to be turning around despite the war in Ukraine. And in India (see above), consumer buying habits are changing in favor of luxury smartphones.

what happened now?

All of these factors combined will drive whatever guidance Apple provides over the next year. prepare something that will help raise interest next year.

Apple’s AR glasses may not sell tens of millions of units, but they definitely help maintain brand awareness.

As of this writing, Apple is expected to report earnings of around $121.5 billion at 1.95 GAAP per share (projections vary depending on who reads it). Results will arrive on Thursday after US financial markets close.

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Copyright © 2023 IDG Communications, Inc.

https://www.computerworld.com/article/3686576/what-well-be-looking-for-in-apples-q1-results.html What We’re Looking For in Apple’s Q1 Results

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