Apple's Q4 Earnings Poised to Outshine Expectations Amidst iPhone Revival and Chinese Market Surge
1min read Apple is set to release its Q4 financial results on Thursday, and expectations are high with both revenue and profit anticipated to exceed forecasts. Wall Street analysts are optimistic, driven by strong performances in the Chinese market and the release of new iPhone models.
Analysts project Apple's Q4 earnings per share at $1.60, with a net profit of $24.24 billion, marking a 5% increase. Revenue is forecasted to reach $94.46 billion, reflecting a similar growth rate. The resurgence in iPhone sales, predicted to grow by 3.8%, signifies a recovery from prior declines. Meanwhile, iPad sales are expected to surge by 10.1%, thanks in part to new powerful models.
In terms of geographical distribution, nearly half of Apple's revenue is expected to come from the Americas, totaling $42.23 billion. The Chinese market remains robust with anticipated revenue of $16.08 billion, growing over 6% year-on-year.
The anticipation extends to Apple's service segment, projected to grow by 13.3%. However, despite the positive outlook, the delay in the rollout of Apple Intelligence features is a cautious point for investors, as its impact on future iPhone sales remains uncertain.
Concerning future models, some sector analysts have voiced concerns about the iPhone 16's slower initial sales compared to previous models. Nonetheless, the general sentiment is that Apple's Q4 results will surpass expectations, even if the first quarter of the 2025 fiscal year may face challenges.
In China, Apple's market share has seen a significant jump, ranking second in Q3 with a 15.6% share, aided by the launch of iPhone 16. The model's early sales in the region are promising, and upcoming promotions could further boost demand.
As attention turns to AI developments, investors await Apple's earnings call for insights into the technology's role in the anticipated "super cycle." Some believe AI enhancements may drive future sales, although its true impact is still up for debate.
Despite mixed signals from early iPhone 16 sales, Wall Street projects Q4 revenues to hit $94.46 billion, underlining continued optimism in Apple's financial trajectory. Shares have risen by over 21% this year, and the average 12-month analyst target price stands at $239.76, maintaining a strong "buy" sentiment among investors.
