Apple’s Q2 2021 earnings will deal with iPhone 12 gross sales, world chip scarcity

Apple (AAPL) is ready to report its Q2 2021 earnings after the closing bell on Wednesday. Whereas analysts are calling for the tech big to beat income expectations, Apple will face questions on how its enterprise can be affected by the worldwide chip scarcity and elevated COVID-19 vaccinations.

Right here’s what Wall Road expects from the quarter versus how Apple carried out in Q2 final 12 months.

  • Income: $77.3 billion anticipated versus $58.3 billion in Q2 2020

  • Earnings per share: $0.99 anticipated versus $2.55 in Q2 2020

  • iPhone income: $41.5 billion anticipated versus $28.9 billion in Q2 2020

  • iPad income: $5.6 billion anticipated versus $4.3 billion in Q2 2020

  • Mac income: $6.8 billion anticipated versus $5.3 billion in Q2 2020

Apple continues to be using excessive on the gross sales of its iPhone 12, which it launched in September 2020. The primary iPhone to supply 5G mobile connectivity, the iPhone 12 has been an enormous success for the corporate to date. In Q1 2021, the corporate’s income was up 21% year-over-year powered by iPhone gross sales, and Q2 isn’t anticipated to be any completely different.

Apple CEO Tim Cook dinner delivers his keynote deal with on the Worldwide Builders Convention in San Francisco, California June 8, 2015. REUTERS/Robert Galbraith

“We predict the iPhone 12 supercycle theme to be entrance and middle on Wednesday after the bell when Cupertino delivers one other robust upside March quarter primarily based on our evaluation,” Wedbush analyst Dan Ives wrote in a analysis observe forward of the earnings report.

However with vaccines rolling out to all Individuals over 16, and states easing pandemic restrictions, the sturdy gross sales from Apple’s Mac and iPad segments may decelerate, Goldman Sachs’ Rod Corridor wrote in his personal observe.

“In our opinion, present excessive ranges of each iPad and Mac demand are unlikely to be sustainable because the world re-opens, so one other beat pushed extra by these areas might not be sufficient to drive the shares additional,” Corridor stated.

Apple, like different tech firms, has benefited from stay-at-home orders that drove gross sales of its laptops, desktops, and iPad, as employees and college students wanted units to remain related.

Apple can be persevering with to maneuver ahead with its plan to ditch Intel (INTC) as its main chip supplier in favor of its personal Arm-based M1 chips. The corporate launched its first MacBook Air, MacBook Professional, and Mac mini powered by M1 processors in November 2020, spurring progress within the section, and earlier this month, Apple debuted its new M1-powered iMac and iPad Execs.

The most important darkish cloud hanging over Apple and different client tech firms is the continuing world chip scarcity, which may final into 2022.

The concern for Apple is {that a} lack of accessible semiconductors may gradual the corporate’s capacity to get merchandise constructed and into customers’ fingers. To this point, Apple has fared properly, however a long-term slowdown in chip availability may ding its income going ahead.

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