Apple might be about to post another better-than-expected earnings report next week driven by strong iPhones sales and Apple’s booming services business.
With Apple’s earnings call for the third fiscal quarter of 2018 slated for July 31, Guggenheim Partners analyst Robert Cihra predicts Apple will have another solid quarter of growth with 43 million iPhone units sold.
Apple’s Q3 2018 earnings
Guggenheim Partners raised its revenue estimates for Apple in Q3 up to $52.9 billion. The firm was previously predicting $52.4 billion in revenues. Average selling price on iPhones could rise 14 percent year-over-year, according to the firm’s predictions.
“Investors have not seemed overly impressed with iPhone X uptake to date,” Cihra wrote in his note obtained by AppleInsider. “But we think they ought to be much more impressed by Apple’s ability to raise ASP double-digits without impacting unit share in an otherwise no-growth smartphone market, illustrating the power of its high-end demographic and peel-off-the-top model.”
Revenue from services is expected to rise by about 28% compared to Q3 2017. Apple may rake in a total of $9.3 billion with 38% of that coming from the App Store.
Cihra predicts that the 2018 iPhone lineup will arrive in late September, which is when the company usually comes out with new iPhones. He also thinks Apple may come out with a new naming convention for the iPhone. Instead of slapping a number onto the 6.1-inch LCD iPhone, Cihra thinks Apple will call it simply “iPhone”.