Apple’s third-quarter earnings report

Apple’s third-quarter earnings report

People try to guess what will be the main topic when Apple releases the third-quarter earnings report on July 30. The results of a third-quarter which ended last month will help to understand the financial situation of the Cupertino based company. Investors and Apple fans will try to learn more about the IPhones which the company will sell in 2020. However, this won’t be an easy task that it is unlikely that Apple CEO Tim Cook will reveal any information about the next iPhone.

There will be several topics that matter to the overall performance of Apple. The recent acquisition of Intel’s modem business is a big step forward for Apple. It is hard to predict whether Cook will talk about this deal as companies will close the deal in the fourth quarter of 2019. During this conference call, two major topics most likely will be streaming services and the financial results.

According to various sources, earnings will fall due to worse than expected iPhone sales. Analysts predict that Apple’s revenue for the third quarter will be around $53.4 billion. During the same period, last year revenue was less by a quarter of a percent.  Another information is that profits also will decrease to $9.6 billion or $2.10 per share. It means that in comparison with the last year that profits will decrease by more than 16%.

Apple no longer reports the number of iPhones they sell during each quarter. It makes it more complicated to understand how the company’s best-selling products affect its financial results. Apple won’t release the official information, but various sources claim that the company sold 37 million iPhones in the quartet. If this information is accurate, it means the company’s revenue from iPhones will decrease by 11% to $26.2 billion.

Apple’s streaming servicesApple and streaming service

Apple is trying to solve the problems created by falling interest in iPhones by offering various subscription services. The company offers to its current customers as well as potential buyer’s service like Apple News+, Apple TV+, Apple Arcade, etc. The company will do its best to persuade customers that these subscription services are essential for them.

The strategy of the company is to make its paid services more lucrative to the customers. Nevertheless, it might be too early to say whether this move will compensate for the revenue lost due to the problems with iPhones.

There are other problems as well, and analysts will watch closely to identify their effects on the earnings report.  The ongoing investigation by the U.S. Department of Justice is one of the problems. Apple is also facing problems in the European Union due to the antitrust allegations.

Last but not least is the trade war between the U.S. and China. The ongoing dispute has a negative impact on Apple as customers in China are unhappy about this situation. China is a strategic market for China for two reasons. The first one is that China has the biggest smartphones markets. The second problem is that a lot of Apple products are manufactured in China.

On Tuesday, Apple will reveal the third-quarter earnings report. These reports will help to learn more about one of the most famous companies in the world.

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