Apple Earnings Promise iPhone 6 By End Of September
Apple Inc. (NASDAQ:AAPL) released its earnings numbers for the three months through June on Tuesday evening and, though the numbers weren't exactly exciting, a very interesting piece of information was revealed. It seems that Apple is going to release the iPhone 6 before the end of September, meaning those looking for the next great smartphone should stave off upgrading for the next couple of months.
The stock market reacted pretty ambiguously to an Apple quarter that showed great iPhone sales, and better than expected profit. The dampeners came in the form of ludicrously low iPad sales and slightly lower than expected revenue. Apple managed to sell just over 13 million tablet computers in the period, a sign that the market may be in real decline. The important part of the report was, however, buried in the company's guidance for the current quarter.
iPhone 6 To Arrive Before September 27
The current quarter, which Apple records as its fourth of the 2014 fiscal year, ends on September 27. In the run up to the release of a new iPhone, sales of the previous model tend to grind to a halt as consumers put off upgrading in favor of waiting a few weeks for an even better smartphone. That means that if Apple wasn't planning on showing off the iPhone 6 in the current quarter, its revenue expectations would be much lower than analysts expected.
Apple is, however, looking for revenue of $37 to $40 billion in the current quarter. Analysts are looking for something at the upper end of that range by consensus, but the number still maps onto a period in which Apple launches the iPhone 6. The company released the iPhone 5s just a few days before the end of its fourth quarter last year and, given the non-exceptional numbers given for guidance, the same kind of window should be expected from the company heading into the iPhone 6 launch. That means a launch between September 15 and September 22 is likely.
Apple Earnings Show Little Excitement
After Apple released its earnings numbers yesterday, the company's shares barely moved in aftermarket trading. The third quarter is just about the least important for the company and, though yesterday's numbers were good, there's not usually anything to get excited about. The company showed earnings of $1.28 per share for the three month period. That's ahead of the $1.23 analysts expected from the company.
Apple sold 35.2 million units of the iPhone in the three month period, a record for the company's third quarter. Revenue came in at $37.3 billion, a little below the $38 billion that was expected from it. If there is one thing that this earnings report showed clearly, it's that the iPhone business is getting more and more valuable at the company, while everything else is becoming comparatively less valuable. The halo effect emanates from one place and one place only, and Apple shareholders are going to have to come to terms with the company's reverse pyramid structure.
Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted