The largest two iPhone quarters of each year have the largest hurdles due to the dynamics created by covid and the 5G launch last year.
The biggest hurdle is likely the FQ2 numbers where Apple grew revenues 5% last year to $50.6 billion from the FQ2'21 quarter where sales surged 66% to $47.9 billion. For FQ1'22, Apple saw iPhone sales balloon to $71.6 billion, up 9% from the $65.6 billion the prior FQ1. Consumers wanting a new iPhone typically wait until after the launch pushing most of the sales into the FQ1 holiday period. The current FQ4 sales aren't meaningful to the Apple story considering the iPhone launch is always so late in the quarter with around a week worth of sales included in the September quarter. The combination with some covid pull forward demand created a scenario where Apple will have a very difficult time topping iPhone sales from the last year no matter how spectacular the technology improvements to the new smartphone lineup. IPhone sales got a huge boost from last year with the delay of iPhone 12 sales into FY21 and the inclusion of the 5G chip the following year. The smartphone continues to evolve, but the improvements in this model aren't revolutionary like the 5G chip included in the iPhone 13 version from last year. The new iPhone is purported to include camera updates, improved sensors and larger batteries improving processor performance. Investors shouldn't assume that any price hikes are necessarily going to drop to the bottomline with the iPhone 14 Pro models expected to start with 256GB of storage. However, some indications suggest Apple might be required to raise prices in order to cover higher storage costs. With Apple not expected to sell more units this holiday season, the market has latched onto hopes the tech giant will successfully raise prices by up to $100.Īnalyst Wamsi Mohan has speculated that a $50 hike to the Pro-model would provide a $0.20 tailwind to EPS. The iPhone continues to generate 50% of total sales and outshines all other products and Services by a long shot. Though, the company isn't expected to announce the new mixed reality headset in a huge disappointment. As well, the tech giant could announce new versions of the Apple Watch and a new AirPods Pro product. iPhone 14 Launch EventĪpple is expected to announce an iPhone 14 lineup of four models (Pro, Pro Max, Max, and base model). My investment thesis remains negative on the stock due to valuation and the event to unlikely include the announcement of new key AR/VR products. The event typically occurs in early September, allowing Apple to release the latest smartphone prior to the end of the FY, allowing for sales to easily flow during the holiday period. On September 7, Apple ( NASDAQ: AAPL) plans to host the annual event to announce the new iPhone, amongst other products. Seremin/iStock Editorial via Getty Images