Apple – the iPhone making giant – is expected to post a decent increase in sales in its fiscal second quarter soon and people are looking forward to see the earnings of the iPhone maker. The iPhone sales of the U.S.-based smartphone maker declined for the first time a year ago and almost everyone was shocked then.
Wall Street expecting a rebound in sales this quarter
Wall Street is expecting a slight rebound when the tech giant finally reports its results in the fiscal second quarter of the year on Tuesday. According to investment firm Stifel Nicolaus, estimates predict an increase in sales of iPhone from 51.2 million a year ago to 52.2 million this year.
In addition to this, the revenue of the Cupertino-based iPhone maker is expected to hike up in the fiscal quarter, which ended in late March. It is the second full quarter of sales of iPhone 7 and no one is either anticipating a disaster or an amazing growth in sales. This year is the 10th anniversary of the first iPhone and people are expecting this year to be different from other past years. The market watchers and the analysts are looking for the iPhone 8 rather than thinking about the results of last quarter.
The tech company reported the highest number of sales of iPhone in its fiscal first quarter that ended in late December: 78.3 million. The U.S.-based iPhone maker introduced the Product Red iPhone 7 and 7 Plus during its second quarter. This was also the first time the tech giant introduced a ‘Red’ iPhone, which was brought to assist in funding programs that battle HIV and AIDS in sub-Saharan Africa. The tech company updated its 9.7-inch iPad Pro and boosted the storage of its cheaper iPhone SE this quarter as well.
Analysts are mostly focused of fiscal 2018: UBS analyst
UBS analyst Steven Milunovich noted in his statement, “Most investors are focused on [fiscal 2018], which means the next few reports should be less important than usual.” The tech giant did not comment ahead of its earnings report. Both iPhone 7 and iPhone 7 Plus are still quite important as the Silicon Valley giant generates most of its revenue – two-thirds of its revenue – from the iPhone.
According to Asymco analyst Horace Dediu, the tech giant tends to change the design of the iPhone every two years or so and the consumers rush to upgrade. Dediu added, “The demand is vast due to the user base and accumulated age of devices in use. If history is a guide then the next iPhone will be the best iPhone ever.”