Apple’s iPhone is already one of the most popular consumer products ever. And normally, it’s a safe bet that when Apple makes big changes to the phone’s design, as it did with the iPhone 12, sales go into overdrive. But this past year has been anything but normal.
In February, Apple warned that sales and manufacturing for its products were likely to be impacted by the coronavirus. Soon after, economies around the world slid into recession and unemployment rates soared as the pandemic upended our way of life and kept us locked down in our homes.
On Wednesday, Apple’s expected to release sales and profit data for the holiday shopping season, which typically stretches from October through December. That period was particularly busy for Apple, including the launches of its highly anticipated iPhone 12 with 5G wireless and new laptop and desktop computers. The company also expanded its services with the $10 per month Apple Fitness Plus digital health class service and its Apple One bundle pricing, offering access to its TV, music and data storage services starting at $15 per month.
Wall Street analysts on average expect that will all translate to $1.40 per share in profits on $102.76 billion in sales, according to surveys published by Yahoo Finance. That amounts to a 12% jump in profits and 16% leap in sales, compared with last year. And all this despite the crushing COVID-19 pandemic that’s still ravaging communities around the world.
“Overall, a strong iPhone year appears likely,” Bernstein analyst Toni Sacconaghi wrote in a message to investors last week. He added that the iPhone 12 Pro is still backordered in most major markets except the US and France, despite launching back in October.
If Apple does report such strong sales, it’ll likely be taken as a bellwether for the broader tech industry, whose companies have become even more powerful during the pandemic…Read more>>