Apple's Q4 Earnings: Chinese Market Drives Record Revenue Surge

As Apple prepares to release its Q4 fiscal earnings on Thursday, expectations are high for a robust performance driven by strong sales in the Chinese market. Analysts anticipate Apple's earnings per share to reach $1.60, with net profits of $24.24 billion, marking over a 5% increase compared to the previous year. Revenues are projected to hit $94.46 billion, also growing by over 5% and marking the largest quarterly increase in two years.

iPhone sales are expected to rebound with a growth of 3.8%, reversing prior declines. Meanwhile, iPad sales are forecasted to increase by 10.1% to $7.09 billion, following a previous strong quarter propelled by the launch of enhanced iPad models. The services sector is predicted to see a 13.3% revenue boost, slightly lower than last quarter's growth.

The Chinese market continues to be a key driver for Apple, with expected revenues of $16.08 billion, growing by over 6%. This growth signifies Apple's successful recovery in the Chinese smartphone market, where its market share recently elevated to the second position after the new iPhone launch.

Despite the delayed introduction of Apple Intelligence, which may impact future quarters, analysts remain optimistic about the current quarter's performance. They cite strong iPhone sales projections, particularly for the Pro and Pro Max models, which saw increased popularity among Chinese consumers.

Investors will additionally focus on Apple's announcements regarding its AI developments during the earnings call, as these innovations could influence the anticipated upgrade cycle. However, some analysts caution that the AI enhancements may not significantly drive immediate iPhone sales growth, suggesting a moderate effect from the initial AI rollout.

Apple's stock has risen by approximately 21.23% year-to-date, outpacing the S&P 500. Analysts have a positive long-term outlook on the company's stock performance, buoyed by anticipation of a substantial upgrade cycle and continued strong sales momentum.