Apple company. , an American multinational technology company specializing in the design, manufacture and sale of smartphones (iPhone), personal computers (Mac), tablets (iPad), wearable devices and accessories (Apple Watch, AirPods, Apple Beats), televisions (Apple TV) and other types of services related (iCloud, digital content stores, streaming services, licensing), Q2 2023 earnings results 4y May (Thursday)And after Market close. What awaits this group with the largest market capitalization of over $2.6 trillion?
Figure 1: Revenue of Apple Inc. By product category. source: Mac rumors
In the previous quarter, Apple recorded its sales revenue The biggest decline since 2016more than before -5% compared to the same period last year. This was too Sales are down year-on-year Since 2019. By product categoryMac lower revenue, -28.66% (r / y) to $7.74 billion; iPhone Revenue decline -8.17% (r / y) to $65.78Bmainly affected by production issues in China (less likely to happen again such as Apple is slowly reducing its manufacturing activity in China); Other products Revenue decline -8.3% (r / y) to $13.48 billion; IPAD The only product category that posted positive gains was, up +29.66% (r / y) to $9.4 billion; services Revenue soared +6.4% (r / y) to $20.77B. The less favorable sales result was related to the challenging macro environment and the still strong dollar. Net profit was down -13.3% (r / y) to $30 billion.
positively, Apple Inc notable 2 billion active users on all of its products, up from 1.8 billion as reported in January last year. Continued improvement in global reach may indicate better monetization of old and new customers through its products and services in the future.
In addition, the company may continue to see more positive penetrations from its services category, after achieving record revenue despite the challenging environment. Recently, the company introduced the payment feature namely Apple Pay at a later time which allows its users in the United States to Divide purchases into four batcheswith without advantage And Do not incur any additional fees. Other benefits include multiple payments to different merchants in a single transaction, easy order tracking and secure merchant codes.
Day 17y In April, the company announced that it would be collaborating with Goldman Sachs on the show For Apple Card users, a savings account with an 4.15%APY. It is said that the rate is 10 times higher than the national average! Users will be able to easily set up the account, build savings directly and seamlessly, track the account balance and interest earned at any time, and even get unlimited daily cashback of up to 3%.
fig.2: Apple.Inc sales report vs. analyst expectations. source: CNN Business
The consensus estimate for sales stood at $92.9 billionsignificantly -20.73% from the previous quarter, and down -4.52% From the same period last year.
fig.3: Apple.Inc’s EPS report versus analyst expectations. source: CNN Business
On the other hand, EPS is expected to increase $1.43under -23.94% from the previous quarter, and down -5.92% From the same period last year.
the Management expressed a pessimistic view for the next quarter, including a double-digit decrease in Mac and iPad sales compared to the same period last year; iPhone sales may also decline but at a less deteriorating rate.
Technical Analysis:
#apple (AAPL.s) The share price pared most of its losses incurred in the latter half of 2022 since making gains in early January of this year, hitting its lowest level during the year at $124.17 (a level not seen since June 2021). The asset rebounded strongly in Q1 2023 and is now trading within a rising wedge pattern. $170 (78.6% of France, extending from the high of January 22 to the low of January 23), and the upper line of the rising wedge acts as the nearest resistance. A successful break above these levels could see the bulls continue to test the Q3 high of last year ($176.14) – $177followed by a January 22 summit, at $182.87. On the other hand, the lower border of the rising wedge is the nearest support. A break below this line may indicate a halt to the bullish momentum, and may test the stock price $160.50 (FR 61.8%), followed by $153.50 (FR 50.0%) and the dynamic support 100 day SMA.
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Larence Chang
Market analyst
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