Factors Setting The Tone For Apple's (AAPL) Q1 Earnings

Zacks Investment Research | Jan 23, 2019 10:04PM ET

Apple (NASDAQ:AAPL) is set to release first-quarter fiscal 2019 earnings on Jan 29.

The company’s fortunes are tied to iPhone, which is by far its biggest revenue contributor. The device accounted for 59.1% of net sales in the last reported quarter, when the company sold 46.89 million units of iPhone.

Although unit shipment growth was flat, segment revenues were 20% higher. This was primarily due to 28.3% boost in iPhone ASP, which was $793 in the quarter.

However, given the saturated developed markets and declining demand for iPhone in Greater China, strong ASP growth might not be enough to drive the top line in the to-be-reported quarter. The Zacks Consensus Estimate for ASP currently stands at $794.

Notably, Apple cut its guidance on Jan 2, blaming China’s slowing economy and fewer upgrades to its flagship device. China accounts for almost one third of the company’s sales. The consensus mark for revenues from China is $17.13 billion.

Apple Inc. Price and EPS Surprise

Zacks Investment Research

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Written By: Zacks Investment Research

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