The power of the Mac and iPhone 13 could turn Apple into a record-breaking gaming experience

AppleInsider is supported by its readers, and as an Amazon Associate and affiliate partner, AppleInsider can earn revenue on qualifying purchases. These affiliate links do not affect our editorial content. Morgan Stanley analyst Katy Huberty believes Apple will beat Wall Street expectations for the second quarter, but expects a cautious trend going forward due to COVID fears.

In a note seen by AppleInsider, Morgan analyst Stanley Katy Huberty has broken Apple’s second quarter and is expecting another blockbuster earnings report for Apple. Without sharing specific numbers, it pointed to the iPhone 13 and Mac sales worldwide in the quarter, which is said to be a weak performance of the iPad and the App Store revenue over the quarter.

Huberty believes the demand for the iPhone 13 is stronger than expected by the March quarter, with global attention growing, with an annual decline in Chinese domestic shipments. It estimates that international iPhone shipments increased by 10% year over year, with a 28% decline from Kannada vendors. His channel checks for US speculation that the iPhone 13 family is the best-selling smartphone model of all three, with the iPhone 13 itself winning the crown of best selling model. As a result, Huberty has increased its market cap for the iPhone, which sold in the quarter, to $ 878, up from its previous estimate of $ 848.

Throughout the March quarter, Huberty also saw the iPad and wearable retail sales from retail chains coming down lower than expected. As such, he said the average sales price was down 3% to $ 610 per sale for the iPad, meaning he expects the iPad revenue to hit $ 7.1 billion. It expects a similar decline in wearables instead of its previous estimates to $ 9.1 billion – which is also 16% year-over-year.

But, any weaknesses in wearables or iPads are more than offset by Mac, he believes. Mentioning the IDC data, Mac shipments are said to be in the area of ​​7.2 million units, up 5% year over year, well ahead of its previous estimate of 6.0 million. This should lead to $ 9.5 billion in Mac sales for the quarter, which would mean the second consecutive quarter of Mac revenue forecast above and sales performance.

Morgan Stanley’s Apple Services revenue has been revised down by 3% to $ 19.7 billion. Huberty believes this comes from the revenue of the App Store less than we expected, especially in January. While estimating that the App Store growth and revenue growth in March, it will not be enough to counter that weak January and February.

Despite the decline, Huberty expects retail revenue to accelerate in the second half of Apple’s 2022. fiscal year. %, year-over-year. Overall, Huberty is expecting a quarterback record. It expects Apple to report $ 94.0 billion in revenue for the quarter. However, Wall Street estimates for the quarter are well below $ 90 billion. In the second quarter of 2021, Apple posted $ 89.6 billion in revenue over the quarter and $ 23.6 billion in revenue.

As the third quarter of 2022 expires, Huberty expects $ 83.3 billion in revenue for the quarter, instead of the current $ 86.7 billion revenue target. The review below is primarily due to the unexpected effect of COVID locks in China. “With this schedule, we do not believe that investors need to be aggressive ahead of the quarter,” Huberty wrote. However, we will continue to buy shares on any weakness as we expect Apple to excel in a more challenging market, similar to performance in previous economic periods. ”

Huberty also expects Apple to announce another $ 80 billion consumer purchase license, based on historical trends. $ 0.94 per share is expected as well.

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