Apple share price: 3 things to expect from Q2 results

Apple stock could depend on three crucial factors.

Apple logo before Apple Q2 earnings Source: Bloomberg

Apple share price could depend on these three important factors. Investors will want these three questions answered before Apple’s Q2 earnings reports.

Can iPhone sales affect Apple's Q2 profits?

Apple’s Q2 earnings could be influenced by the sluggish sales of the iPhone. In Apple’s Q1 revenue report, chief executive officer(CEO), Tim Cook, noted that iPhone sales are declining year-over-year by 15% mainly because of slowing sales in China.

‘100% of our worldwide year-over-year revenue decline was driven by performance in Greater China,’ said Cook.

Apple also noted in its last earnings report that it would no longer report unit sales of the device. D.A. Davidson analyst, Tom Forte, said that the tech company not reporting iPhone unit sales could hinder Apple’s Q2 earnings.

‘There’s nothing good you can say about fact that they stopped reporting unit sales. Looking at our model and our projections for iPhone sales, as it pertains to the March quarter, we’re not looking for anything magical on iPhone or on China,’ said Forte.

Can the upcoming launch of new services help Apple's Q2 earnings?

While iPhone sales are down, Apple’s other services like Apple Music and Apple Pay are increasing. Apple is trying to prove that it’s more than an iPhone company with the recent unveiling of a streaming TV service. The new video on demand service will offer shows from Oprah Winfrey and debut later this year.

In addition to Apple TV+, the tech company is also preparing to launch a credit card and news subscription service to customers as well. These upcoming ventures could also provide a boost to the tech company’s services division and impact Apple’s Q2 earnings.

Forte is optimistic that investors Apple’s Q2 revenue will be positively impacted by its expansion beyond devices.

‘Investors have bought hook-line-and-sinker into the notion that services revenue is going to be a fast growing number for Apple,’ said Forte.

Could the truce with Qualcomm influence Apple's Q2 results?

Apple’s Q2 revenue could also be affected by the recent lawsuit settlement with Qualcomm over a royalty conflict. Since the two corporations reached an agreement, Qualcomm’s shares increased and Apple’s contract to use Qualcomm’s modems could also positively influence Apple’ Q2 earnings.

Investors will be watching Apple’s Q2 earnings report to see how it will be influenced by these recent major events.


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