Apple (NASDAQ:AAPL) headed into its fiscal 2021 very first quarter with expectations which are high from investors

Apple (NASDAQ:AAPL) headed into its fiscal 2021 first quarter with expectations which are high from investors. The highlight of Apple’s quarter was the launch of the iPhone 12, the tech titan’s first 5G smartphone. Investors anticipated excellent sales as wireless carriers push their 5G networks and build excitement around the new iPhones. All signs suggest Apple’s delivered on those expectations.

Here are 3 of the most noteworthy advancements bolstering Apple’s stock heading into its earnings report later this month.

1. You still have to wait around forever to get an iPhone twelve Pro
It has been approximately two weeks since Apple introduced the iPhone 12 Pro, and customers purchasing nowadays still have to hold back up to three days for shipping and delivery. Which may as well be for decades in the age of next-day delivery. By comparison, it took just six weeks for iPhone 11 interest to reach equilibrium with supply last year, according to Credit Suisse analyst Matthew Cabral. The Apple iPhone twelve Pro seen from an angle.

The standard iPhone 12 and also the iPhone 12 Mini are a lot more being sold both in-store and for immediate delivery. Which hints Apple should see a better average selling price (ASP) for the iPhone when it announces its first quarter benefits.

Apple is reportedly ramping up production for the iPhone twelve in the earliest half of 2021. Coupled with other things suggesting very strong iPhone sales for the quarter, the taller ASP should lead to iPhone revenue significantly outperforming. And considering iPhone accounts for 50 % of revenue, and generally closer to 60 % in the first quarter, that should have a meaningful influence on its revenue versus expectations.

2. Suppliers are publishing big revenue numbers
Apple’s biggest iPhone assembler, Foxconn, announced record revenue for the month of December. The Taiwanese company, which trades as Hon Hai Precision, reported sales of 713.8 billion New Taiwan dollars (about $25.5 billion) for December, and quarterly revenue of NT$2 trillion. That beat expectations of NT$1.8 trillion, as reported by Bloomberg.

Foxconn’s outperformance is in addition in line with the greater-than-expected need for the iPhone twelve Pro. The business is the premium supplier of the high end devices.

Meanwhile, Dialog Semiconductor raised the fourth-quarter revenue outlook of its from a range of $380 million to $430 million to between $436 million and $441 million, Barron’s reports. The chipmaker cited increased need for 5G chips as the primary reason. Considering Apple accounts for the majority of its revenue, it is a pretty good bet those potato chips are going in iPhone 12s.

And in late December, Wedbush analyst Daniel Ives said his Asia source chain checks “have now exceeded even our’ bull case scenario'” in a note to investors.

3. New records in the App Store
Apple reported record gross sales for the App Store of its in the annual brand new year of its update. In the week between Christmas Eve and New Year’s Eve, iOS users spent $1.8 billion in the App Store. That’s up 27 % from year which is previous, and an acceleration from the 16 % growth of sales in the same time in 2019. The company even recorded $540 million in sales on New Year’s Day, up almost 40 % from last year. Those numbers indicate a great deal of new iPhones under the tree this year.

It also bodes well for Apple’s all important services segment — its highest-margin and fastest-growing business. The App Store is actually Apple’s most profitable service, generating gross earnings well above the subscription services of its as Apple Music or Apple TV. So outperformance on that front must lead to better-than-expected earnings.

Morgan Stanley analyst Katy Huberty notes, “If we maintain the rest of our December quarter Apple Services forecast unchanged, the latest App Store data would imply December quarter Services revenue of $14.84 [billion]… 40 [basis points] in advance of consensus at $14.78 [billion].” It is quite possible, however, that stronger App Store sales are a good indication of stronger sales of Apple’s other services.

It looks as the iPhone supercycle may be a reality this year based on the early results we have noticed as well as other hints at need which is strong. And that’ll bolster Apple’s whole company — as well as the FAANG stock — in the event it reports its complete results on Jan. twenty seven.

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