Apple (NASDAQ: AAPL) is scheduled to report its quarterly earnings later this week, and analysts generally expect the iPhone and iPad vendor to post relatively stable results as it gears up for the release of new products later this year.
According to a survey of financial analysts conducted by Fortune, Apple will post revenues of around $43.5 billion for the quarter, or right in the middle of the company's forecast. However, Apple is expected to post sales of around 38 million iPhones, which is largely in line with what the company sold last year. This is causing concern among investors who believe Apple should be increasing its year-over-year iPhone sales.
Interestingly, analysts also believe Apple will report iPad shipments of just 19 million, which would represent a slight dip compared to the company's results in the same quarter a year ago.
Although little growth is expected from Apple during its current quarter, investors are hoping the company will be able to expand sales in the second half of this year with redesigned iPhones and possibly a new product like an iWatch. And those products could significantly increase Apple's revenues.
Indeed, Jefferies analyst Peter Misek wrote last week that: "Our checks indicate Apple has started negotiating with carriers on a $100 iPhone 6 price increase. The initial response has been no, but there seems to be an admission that there is no other game-changing device this year."
According to a wide range of rumors and reports, Apple will release two different iPhones later this year, one with a 4.5-inch screen and another with a 5.5-inch screen. Apple's current iPhones have a 4-inch screen.
The new, bigger iPhones could help Apple cash in on consumer demand for phones with bigger screens--and according to Misek, Apple could charge a premium for the larger gadgets. Pacific Crest analyst Andy Hargreaves said he believes Apple has "latent pricing power that is likely to exploit during the iPhone 6 product cycle," reported ZDNet.
Apple is also reportedly at work on a smart watch device, likely dubbed the iWatch, that could put the company into a new market.
Apple will likely factor those new products into its revenue guidance for future quarters--thus, all eyes will be on Apple's guidance when the company posts financial results Wednesday.
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