First up, Apple Inc., which will report its fiscal second-quarter earnings after the close Thursday. Fellow analyst firm Morningstar expects robust earnings even amid escalating trade war fears. The tech behemoth is projecting $94.68 billion in total revenue. That’s up 4.2% from last year’s net earnings, according to LSEG.
FactSet, an analytics and financial services company, projects the company’s sales in the quarter will reach a record $17 billion. This milestone marks a strong 3.6% increase from last year. The bulk of this projected increase can be attributed to growing global demand for the iPhone. This emblematic product, built in the USA, has tagged along in developing the Apple aesthetic.
Apple’s finance chief, Kevan Parekh, will be instrumental in presenting the company’s financial results. He’ll sit alongside CEO Tim Cook when they talk to analysts. They’ll analyse how Apple is doing and where it’s going, particularly looking at how it’s selling in mainland China. Fears are mounting over the waning iPhone’s attractiveness in China. The backdrop to this dynamic is the unprecedented trade war and increasing waves of Chinese nationalism.
Perhaps the thing leading analysts to speculate the most is the prospect of Apple’s strategy to mitigate the tariffs laid out by the Trump administration. Wall Street is naturally concerned about the impact these tariffs would have on Apple’s complex supply chain. They’re particularly focused on the ways that Apple might conspire to raise prices. On the first point, most observers agree that Apple probably benefited from a boom in near-shoring demand. U.S. retailers did make imports in advance of expected tariffs, increasing stock of iPhones and other products.
The company’s ability to adapt to these challenges will be critical for its performance in the Chinese market, where competition is fierce and consumer sentiment can shift rapidly. The upcoming earnings call will not only provide insights into Apple’s financial health but shed light on its strategic direction in one of the world’s largest smartphone markets.