The report of Apple’s 3rd quarter earnings that came out on Tuesday, had primarily talked about the upcoming iPhone.
Apple gives small hints about their next iPhone at the time of earnings calls, without giving too many details away. The CEO, Tim Cook from time to time, makes comments that Apple has expectations of an exciting fall but that’s all about it. The financial analysts read between the lines to make an estimate as to many devices, Apple could think of selling in the quarter ending in the month of September, which generally includes the first two weeks of the sales of their new iPhone.
This basically means that when the fiscal third quarter comes by, covering the three months that end in June, Apple gets a pass. It turns out to be Apple’s smallest in terms of the contribution towards annual sales. By the time, the period comes to an end in June; the newest iPhones from Apple would already be nine months old. The iPhone 8 and iPhone 8 Plus phones had got introduced in the month of September 2017.
At the time of this quarter, people do not line up any longer at Apple Stores but they tend to wait for the next set of phones, which are likely to hit the market in the month of September. In 2017, the iPhone X got launched in the month of November, which was just two months later than the normal. The customers of Apple either want the latest as well as the greatest phones or they are ready to buy the old models at much lower prices.
Tim Cook has been putting in all the efforts to expand the reach beyond the iPhone but Apple still continues to get most of their revenue from the popular smartphone. The second quarter saw the company selling 52.2 million iPhones, thereby accounting for 62% of sales.
The analysts estimate with regard to the third quarter earnings, which Apple is set to report on Tuesday, that the company had sold 41.8 million iPhones, with the projected sales around $52.3 billion, an increase of 15 percent from the previous year.