Apple is poised to report its largest quarterly revenue increase in two years, driven by a surge in iPhone demand, particularly in China. This anticipated growth is a significant turnaround for the tech giant, which has faced challenges in recent years.
Apple’s overall revenue is expected to rise by 5.7% in the July-September period, marking its fiscal fourth quarter. This growth is largely attributed to the robust demand for the newly released iPhone 16 series, which hit the market just before the end of the quarter. Analysts predict a 3.8% increase in iPhone sales for the quarter, snapping a two-quarter decline.
Revenue from Greater China is projected to rise by 6.6%, making it a key driver of Apple’s overall growth. The company’s strategic pricing and promotions, including a 10% discount on the iPhone 16 Plus on platforms like Pinduoduo, have helped Apple secure the second-largest market share in China during this period.
Despite the positive outlook, Apple faces challenges, including competition from domestic brands like Huawei, Vivo, Xiaomi, and Honor. Additionally, the slow rollout of Apple Intelligence features in key markets, including China, has raised concerns about potential delays in sales boosts from AI-driven innovations.
Investors are keenly awaiting executive commentary on Apple’s fiscal first quarter, with a focus on the performance of the iPhone 16 and the impact of Apple Intelligence. The company’s ability to catch up in AI, amidst aggressive competition from Android rivals like Samsung and software competitors like Microsoft, will be crucial for sustaining growth.
