Jul 30, 2019

Apple's Q3 earnings guidance may reveal its iPhone expectations

Ina Fried

Apple never gives much insight into what's coming next, but in issuing financial guidance for the coming quarter on Tuesday, the company will be providing at least some sense of its expectations regarding initial sales of the next iPhone.

Why it matters: The financial outlook will be for the July-to-September quarter, so its guidance will reflect only its initial expectations, given the devices usually don't go on sale until September. Also closely watched will be what Apple has to say about its business in China as well as trade tensions.

By the numbers: According to Bloomberg, Apple is expected to earn $2.10 per share on revenue of $53.36 billion.

The bottom line: Expect Apple to highlight its growing services business, while analysts will be closely watching how the all-important iPhone business is doing.

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Ina Fried

Apple's growth areas rely on its shrinking iPhone business

Apple's new iPhone-powered credit card, Apple Card, launches next month. Photo: Apple

With its latest earnings numbers, Apple proved once again that its growing services and wearables businesses can help lead the company to record financial results even as iPhone sales fall short of prior years.

Why it matters: This strategy is a creative way to manage through a maturing smartphone market, but Apple's business is arguably just as dependent on the iPhone as it has ever been, perhaps more so, because these new businesses are tied at the hip to the device.

Go deeperArrowJul 31, 2019
Ina Fried

Apple earnings top estimates even as iPhone sales sag

An iPhone with Apple's forthcoming credit card. Photo: Apple

Apple reported earnings and revenue ahead of estimates Tuesday as weakness in the iPhone business was offset with growth in wearables.

Why it matters: Apple has been leaning on those newer businesses amid weakness in the smartphone business, but it's still critical for Apple to keep customers on its mobile platform in order to build its services market.

Go deeperArrowUpdated Jul 30, 2019
Ina Fried

Apple Cards begin to arrive in customers' phones and hands

An iPhone owner using Apple Card to make a payment. Photo: Apple

Apple today begins processing the first applications from consumers to get the new Apple Card, the credit card it is debuting in conjunction with Goldman Sachs.

Why it matters: It's part of a broader push into services from Apple, but also puts the company in direct competition with the banks and credit cards already part of Apple Pay.

Go deeperArrowAug 6, 2019