Apple is slated to report its Q2 FY’23 results on May 4, reporting on a quarter that likely saw the company’s sales contract amid weaker demand for computing devices and headwinds in the digital services business. We estimate that Apple’s revenue will come in at about $93 billion for the quarter, roughly in line with consensus estimates and about 4% lower compared to last year. We estimate that earnings will stand at close to $1.45 per share, compared to a consensus of $1.43 per share. So what are some of the trends that are likely to drive Apple’s results? See our interactive dashboard analysis on Apple Earnings Preview for more details on how Apple’s revenues and earnings are likely to trend for the quarter.
We expect to see slower sales of iPhones, amid economic concerns and weaker consumer spending. However, this could be partially offset by improved availability of the flagship iPhone Pro devices, which remained undersupplied through the holiday quarter. Apple’s other computing devices are also likely to see slower sales. While the iPad could see demand cool versus last year, as the remote working and learning trend seen through the Covid-19 pandemic tapers off. Mac sales are expected to see a more severe slump. For perspective, IDC estimates that Apple’s Mac sales declined by close to 40.5% in Q1 2023. However, this could be offset, in part, by sales of pricier devices such as the Macbook Pros and the all-new Macbook Air.
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