Apple (NASDAQ: AAPL) reports earnings this week, and Wall Street will be watching closely. As one of the biggest companies in the world, AAPL’s results often move not just its own stock, but the entire market.
Analysts expect the company to post another solid quarter. Wall Street is looking for about $108 billion in revenue and earnings of around $1.89 a share. Those numbers would show steady growth, but investors are interested in much more than whether Apple beats expectations.
The biggest questions are simple: Are people still buying iPhones? Is Apple’s Services business growing? Is business improving in China? And what does the company have planned for AI?
The answers could determine how the stock reacts after earnings.
The iPhone Is Still the Biggest Story
The iPhone remains the most important story.
With it, investors want to know if customers are still upgrading to newer phones. If AAPL reports better-than-expected iPhone demand, investors will likely see it as a sign that the business remains healthy. If sales disappoint, it could raise concerns about future growth.
Wall Street will also pay close attention to what the company says about demand heading into the fall, when the company is expected to introduce its next generation of iPhones.
Services Continue to Grow
Apple’s Services business has become one of its biggest strengths. This part of the company includes the App Store, Apple Music, iCloud, Apple TV+, AppleCare, and other subscription services. Unlike hardware sales, Services generate recurring revenue because customers continue paying every month or every year.
Analysts expect Services to post another quarter of solid growth. If that happens, it could help make up for any weakness in iPhone sales.
China Remains a Concern
China is another key area to watch. AAPL has faced tougher competition there from local smartphone makers, while the country’s economy has slowed in recent years. If AAPL reports stronger sales in China, investors may believe the company’s business is beginning to recover.
If results remain weak, however, Wall Street could worry that Apple is losing ground in one of its largest international markets.
Artificial intelligence has become another one of the hottest things to watch with Apple.
Companies like Microsoft, NVIDIA, Google, and Meta have made AI a major part of their business plans. AAPL has taken a slower approach. During the earnings call, investors will be looking for updates on Apple Intelligence and how AI could help drive future iPhone sales.
Many analysts believe AI features could encourage customers to upgrade their phones over the next few years. Even if the company doesn’t announce major new products, investors want to hear that the company has a clear long-term strategy.
In addition, investors will pay close attention to guidance. Even if Apple beats Wall Street’s estimates, the stock could fall if management gives a cautious outlook for the months ahead.
On the other hand, if executives sound confident about iPhone demand, Services growth, and AI, investors may overlook a small miss on earnings.
What Is Expected From Apple
Wall Street expects AAPL to deliver another steady quarter., with revenue of about $108 billion in revenue and earnings of about $1.89 a share. Investors will also be paying the closest attention to four things: iPhone sales, Services growth, business in China, and Apple’s plans for artificial intelligence. If Apple shows strength in those areas and offers an upbeat outlook, the stock could respond well.
If the company disappoints on any of those key issues, investors may decide that future growth will be harder to achieve. For the company, this week’s earnings report is about more than one quarter. It’s another chance to show Wall Street that it can keep growing, even as competition increases and the technology industry changes.
