Apple’s iPhone May 12 generated a record quarter of $ 100 billion

In total, the company Cupertino, California, could generate more than $ 100 billion in quarterly sales for the first time. Apple will announce the results on Wednesday for the three months ended December, the fiscal first quarter. Analysts polled by FactSet expect earnings to rise 8% to $ 24 billion and earnings per share to $ 1.41.

The results come during the biggest week for corporate earnings this quarter and on the same day Tesla Inc.

on Facebook Inc.

it is also expected to make a record profit. Investors will be looking for signs from Tesla CEO Tim Cook, Elon Musk, and Facebook CEO Mark Zuckerberg of signs that technology stocks may continue to drive record growth in the S&P 500.

Apple shares rose 81% in 2020 and rose about 8% this year until Tuesday this year due to investors’ enthusiasm for the latest iPhone and increased spending on products from consumers who work, go to school and seek entertainment while sitting at home. It is one of a number of technology companies whose outstanding performance contrasts with the millions of Americans who are out of work amid the global pandemic.

The holiday quarter is always a meticulous period for Apple, which accounts for about 30% of its annual sales. This time, however, with the arrival of the iPhone 12, it takes greater emphasis that some analysts and investors would have a record boom, similar to the launch of the first big-screen iPhone in 2014. However, the bet was called into question with the spread of the coronavirus last year.

The initial outbreak in China delayed production of the flagship phone and delayed its launch until October from its typical debut in September. Some versions of the new phone only shipped to customers in November, reducing the number of weeks Apple typically has in the period to capture sales before Christmas.

These delays have created some uncertainty about how strongly a period Apple could report. “There is one line of thinking that the iPhone units may be on the low side due to the delayed launch and some supply constraints,” said Mark Stoeckle, CEO of Adams Funds, which sees Apple as its biggest stake. “Although we consider it a possibility, the iPhone 12 will be very successful in 2021.”

Katy Huberty, an analyst at Morgan Stanley, is one of the more bullish, calling the iPhone introduction last week in a comment to investors ‘Apple’s most successful product launch in the last five years.’

Despite the delay, analysts on average predict revenue to rise 12% to $ 102.8 billion from a year ago. While Apple is no longer breaking unit sales, analysts say revenue is likely to be helped by demand for the higher-end models of the new smartphone.

For the iPhone 12, Apple introduced four versions of the series, including a new mini version with a starting price of $ 699, which was the same cost as the larger iPhone 11 a year earlier. The iPhone 12 of a comparable size costs about $ 100 more expensive than its predecessor, and the largest and most expensive iPhone 12 Max starts at $ 1,099.

In the US, the average retail price of the iPhone rose to $ 873 from $ 809 a year ago, driven by buyers moving to the more expensive versions, according to a customer survey by Consumer Intelligence Research Partners LLC. The improvement in pricing follows a trend among Mr. Cook to increase the average selling price of iPhones, and push more profit out of the devices as unit sales fell from a peak of 231 million in fiscal 2015.

According to analysts, iPhone revenue would have risen 6.3% to $ 59.5 billion in the past quarter. The growth may pale in comparison to other parts of Apple, which helped improve results last year amid declining iPhone sales. Analysts predict sales increases of 21% for the Mac series and 23% for iPads. Another meticulous measure is the results of Apple’s service business, which has become increasingly important over the past few years.

Investors on Wednesday will look for signs that the new iPhone has legs. Analysts predict that sales will rise to $ 74 billion in the current quarter, up nearly 30% from a year ago. Normally, an accurate portion of Apple’s quarterly reporting is its sales guidance, but such predictions were scrapped last year amid the uncertainty surrounding Covid-19. Apple has not said when it will return to such disclosures.

The potential for the quarter from October to December has long excited analysts and investors that the pent-up demand for a technologically improved iPhone would spur an increase in purchases. The latest iPhone has access to the next generation cellular network, called 5G, which promises faster internet speeds.

Mobile service providers have been using the arrival of a 5G iPhone to try and rob new customers. But it is unclear if that happens. Verizon Communications Inc.,

the largest U.S. mobile phone provider, on Tuesday reported fourth-quarter results showing fewer new customers than analysts had expected. Managers, however, said they remain optimistic about the year ahead.

The lack of killer new apps to take advantage of the 5G speed and a limited network has raised questions among some analysts about the true importance of the feature as a selling point for the expensive new phones.

Of the iPhone buyers in the Consumer Intelligence survey, only seven mentioned 5G. Most said they were motivated to buy the new iPhone due to issues with their previous phone or due to general motivation surrounding the upgrade.

(Dow Jones & Co., publisher of The Wall Street Journal, has a commercial agreement to deliver news via Apple services.)

Write to Tim Higgins by [email protected]