Apple’s second-quarter performance forecast has sparked concern in the market. Analyst Mohan’s latest research report indicates that Apple will reveal its financial report for the quarter on August 3. While the information might meet Wall Street’s expectations, it is projected that the company’s revenue will amount to $80.7 billion, with earnings per share of $1.17, slightly below the market’s anticipated figures. Despite Apple’s management warning about the impact of currency fluctuations on revenue, Mohan believes the actual effect might be limited.
Looking ahead to the third quarter, Mohan expresses apprehension about Apple’s performance. Sources suggest that the launch of the new iPhone, tentatively named iPhone 15 Series, may face delays, pushing its release to the fourth quarter, which could adversely affect Apple’s third-quarter performance. Considering the driving factors of exchange rate fluctuations in the fourth quarter, Mohan predicts that Apple’s revenue in Q3 might only reach approximately $87.1 billion, significantly below the consensus forecast of Wall Street analysts.
Additionally, analysts foresee a year-over-year decline in sales for Apple’s hardware division during the second quarter, mainly due to potential delays in new iPhone releases and the high base set by Mac computer sales. This decline in product revenue is expected to continue into the third quarter. Mohan estimates iPhone sales in the third quarter to be around 48 million units, lower than the previous market forecast.
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Despite these concerns, Mohan has increased his price target for Apple to $210 while maintaining a Neutral rating. As Apple’s second-quarter financial report is imminent, investors are closely monitoring the company’s performance. Apple has a strong reputation for innovation. It has a vast user base and significant brand influence. Expect growth in performance amid the global market’s recovery.
