Apple is poised to report a revenue increase for its fiscal third quarter, with analysts forecasting a 3.3% rise. This marks a significant turnaround from the 4.3% revenue decline reported in the previous quarter. The anticipated growth is largely attributed to strategic changes in product offerings and pricing.
For the iPhone segment, Apple is expected to report a 2.2% decline in revenue, an improvement from the previous quarter’s 10.5% drop. This recovery is credited to substantial discounts on iPhones in China and a strong upcoming upgrade cycle with the iPhone 16 series.
In contrast, iPad sales are projected to surge by 14.1%, driven by the launch of new AI-focused models like the iPad Pro and an expanded iPad Air lineup. This boost signals a notable rebound for the iPad product line, which had seen sluggish demand in recent years.
Mac revenue is also expected to see a modest increase of 2.6%, reflecting stable market conditions. However, sales in the wearables and accessories segment are likely to continue their recent decline, with a projected 6% drop.
The services division is anticipated to experience robust growth, with a 13.2% increase in revenue. This segment, which includes the App Store and subscription services such as Apple TV and Music, has become a crucial part of Apple’s revenue stream, despite ongoing regulatory challenges in the European Union.
Investors will be keen to hear more about Apple’s strategies for sustaining growth, particularly in light of its AI initiatives and regulatory issues. The company’s approach to addressing competitive pressures and market trends will be a focal point of the earnings call.
