Apple Inc. is set to announce their quarterly earnings on Monday, but prior to that, its 2015 Q1 and Q2 estimates have already been given by a credible KGI analyst, Ming-Chi Kuo. While smartphones have been the buzz in the tech world for five years, Apple is one of those companies who benefit from it the most, which is evident in Kuo’s positive projections for the Cupertino colossus. Kuo forecasts that iPhone shipments will reach 58.2 million, iPads will reach 10.1 million and Macs will reach 4.5 million. Apple Watch is projected at 631,000 units.
Apple Inc. just released its first wearable device to the market on Friday, and is still enjoying the momentum of iPhone 6 sales. It is set to report second-quarter earnings when the market closes on Monday. According to Kuo’s estimate, iPhone sales will peak, but will show a decline of 21.8 percent in Q1, as well as 11.6 percent in Q2, with 51.4 million shipments. Still, the figures are not bad for the flagship. For iPads, Kuo estimates that its shipments will decrease 52.7 percent quarterly to 10.1 million units in Q1, while Q2 this year will have 28.5 percent to 7.2 million units. According to 9to5Mac, the decline of iPad sales is the fault of Apple itself, from creating the iPhone 6 Plus and the tiny MacBook, which stole its market share, plus a marketing strategy that is not as good as it was in its first year.
On the other hand, the Mac will show a significant growth, as Kuo estimates it to have 4.5 million shipments, a quarter-over-quarter decrease of 17.5 percent, but a 21.5 percent rise in Q2, which is 5.5 million, which is courtesy of the back-to-school season and the new 12-inch MacBook. The MacBook’s momentum will be stronger than the PC.
Apple Inc. 2015 Q1 and Q2 estimates are out, and will be followed by the estimates for the first hardware category product under CEO Tim Cook, the Apple Watch. Kuo said it is too early to make an estimate. He believes that most of its buyers will be Apple fanatics, and not the average consumer. While Kuo forecasted 3.8 million Apple Watches sold, it is only at 631,000 so far.
Apple Inc.’s average stock rating is overweight, with a price target of $140.18 for 12 months, as polled by 40 analysts, which shows that market capitalization will grow from $749 billion today to $816 billion. Analysts anticipate that the Cupertino tech firm will report $2.14 earnings per share, or $2.19 adjusted earnings, to mark a 24 percent year-over-year increase from its actual figures of $1.77 in the prior year period.
In terms of revenue, analysts anticipate Apple to report $55.75 billion, as per FactSet, which is up from $45.5 billion during the same period last year, a 22.1 percent increase, which is the company’s highest-ever quarterly revenue. Estimize expects $57.18 billion for Apple. Both revenue estimates are more than the company‘s internal figures.
In January, Apple Inc.’s estimated revenue was from $52 to $55 billion. Analyst Aaron Rakers of Stifel raised his estimate for the iPhone from 53.6 million quarterly to 59.6 million, in consideration of the demands in China.
The Apple Inc. 2015 Q1 and Q2 estimates are out, and Apple will have its report soon. When it comes to stock reaction, Apple enjoys a 73 percent increase over the last 12 months. In March, Apple became part of the Dow Jones Industrial Average and had it shares go up 0.7 percent to $129.47.
By Judith Aparri
Photo courtesy of Adam Fagen – Creativecommons Flickr License