Cupertino, CA – Apple Inc. is set to announce its second-quarter earnings for 2024 on May 2, and industry analysts are bracing for some less-than-stellar numbers. Predictions point to a noticeable drop in revenue, marking one of the tech giant's challenging periods in recent years.
According to consensus estimates from Yahoo Finance, Apple's revenue is expected to fall to between $82.32 billion and $86.15 billion, a decline of approximately 5.1% compared to the same quarter last year. This anticipated dip is largely attributed to global economic pressures, including reduced consumer spending and ongoing challenges in key markets such as China.
Despite the lukewarm forecast, there are some highlights in Apple's report. The company's services sector continues to shine, with analysts expecting robust growth that could help offset the downturn in product sales. Additionally, the recent launch of the Apple Vision Pro and updates to the M3 Apple Silicon MacBook Air range are generating interest, though their impact on this quarter's revenue might be limited.
Analysts from major financial institutions are taking a cautious approach. JP Morgan notes potential downsides but suggests that any negative adjustments might be milder than feared. On the other hand, Wedbush remains optimistic about Apple's future, citing pent-up iPhone demand and upcoming innovations in artificial intelligence as potential growth drivers later in the year.
As the tech world watches closely, Apple's management is expected to address these challenges head-on during their earnings call, providing insights into their strategies for navigating current market conditions and fueling future growth.
