Apple Inc Q1 FY2014 Earnings to Surpass Analysts' Estimates
Apple Inc is set to release its earnings for Q1 2014 on Jan 27 after the closing bell. In anticipation of Apple CEO Tim Cook's earnings conference call, analysts have predicted that the iPhone and iPad maker will beat expectations.
According to Bloomberg's compilation of analyst estimates, Apple Inc's anticipated earnings per share may reach $14 or equal to $57.5 billion in revenues. If analysts turn out to be right, the Q1 FY2014 earnings would be higher than 2012's $54.5 billion. Apple has previously announced an earnings guidance of anywhere between $55 billion and $58 billion.
Meanwhile, Apple's profit may be expected to decline to continue the downward trend in the last three consecutive quarters. Analysts have predicted a $12.7 billion which will mean a full year of declining profits for Apple Inc.
China Mobile deal and iPhone sales
According to analysts' estimates, iPhone sales will receive a significant boost and reach $55 million which is higher than the $47.8 million in the same quarter of the previous year.
The higher iPhone sales may be partly attributed to Apple Inc's launch of two iPhones, the iPhone 5S and iPhone 5C in October 2013. Apple has also finally clinched the deal with China Mobile, the world's largest mobile carrier. The Cupertino-based tech giant stands to earn at least $17 million in sales or $38.7 million, if the higher end of analyst estimates is to be followed.
During the first opening weekend sales of the iPhone 5S and iPhone 5C, more than 9 million units were sold. Since the iPhone is Apple's biggest cash cow, iPhone sales will drive the company's total revenues and profits.
iPad sales growth
Aside from iPhone sales, iPad sales are expected to grow with the introduction of the iPad Air and iPad mini with retina display. iPads account for 16.5 per cent of the company's total revenue in the last quarter. Analysts expect iPad sales to be robust in Q1 FY2014 with estimates between 21 and 28 million, which is about 9 per cent higher from the year-ago quarter. Fortune's Philip Elmer-DeWitt believes Apple's iPad sales could reach 10 per cent year over year.