Apple will announce its Q1 2022 earning reports this Thursday. Multiple analysts suggest that the company will present strong earnings despite supply constraints. Reuters says Apple was “buoyed by strong iPhone 13 sales globally, sales in China, and continued growth in Mac shipments,” according to several analysts. With that, the company is likely to announce it had a great quarter.
The publication also rounds up some predictions made by other analysts. For example, Nicole Peng of Canalys believes Apple will reach its highest market share in China since the company entered the market in 2008.
Not only that, but analysts also predict Apple will have a stronger growth compared to competitors, as the company was able to better handle the supply constraints.
Investment firm Wedbush Securities forecasts record iPhone sales of more than 40 million units during the holiday period from Black Friday to Christmas. Morgan Stanley estimates total holiday quarter iPhone shipments at 83 million, representing a 4% increase from the previous year.
Wall Street analysts expect Apple to post about $118.7 billion in revenue, representing 6.48% year-over-year growth, and quarterly earnings per share of $1.89, according to Eikon data as of Tuesday.
Even though Apple is expecting another record quarter, its stocks continue to fall this week as the US Federal Reserve is expected to raise interest rates in order to slow inflation, as well as end pandemic stimulus measures. This would mean consumers have less disposable income, as well as making it more expensive for companies to borrow to fund future product development.
“Since Apple has many customized components going into the iPhones, Macs, Apple Watch and others and the scale (volume and price) at which it procures, Apple has been able to lock-in suppliers’ capacities to timely produce those parts with lesser delays,” said Neil Shah of Counterpoint Research.
The Q1 2022 call will be held at 2:00 p.m. PDT/5:00 p.m. EDT with Apple releasing its full earnings report 30 minutes before that. The call will include a question-and-answer section with Apple CEO Tim Cook and CFO Luca Maestri.
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- Apple supply constraints continue ahead of Q1 2022 earnings report on Thursday