Apple's Low Earnings Due to Great iPhone 5 Expectations?

3 minute read
Chris Knight avatar

This is a problem that must be good to have, as analysts think Apple may record lowish earnings this quarter due to immense user anticipation for the iPhone 5 and a late launch of the iPad 3 in China. With iPhone 5 production starting, Apple's results, out tomorrow, will likely reflect the big waiting game. 

Feeling the Pressure? 

With more reports that production of the iPhone 5 is under way in China, this time at Pegatron, Apple could be struggling to shift iPhone 4S devices as the great slow down quickens. That's not being helped by word of an early August launch that continues to filter around the world's news pages, which could potentially hamper sales.

Regardless of the validity of all these stories, traders and financial analysts all seem to expect Apple to deliver on the low side of estimates in tomorrow's quarterly earnings call. That's despite the launch of new retina MacBook Pro, continued huge iPad 3 sales, plus decent numbers on older model iPhones. 

Apple might also have to address the recent in-app purchases hack, with firm news of fixes and reassurances of improved procedures in any announcement to placate users, developers and investors. 

Learning Opportunities

Making A Better Phone

With no word on the likely mini iPad either, Apple has plenty of ammunition in its locker to deliver blockbuster quarters in the second half of the year and few will be too concerned about one slack quarter (of course, Apple could still blow all estimates away, as they are prone to doing). What investors will be asking questions about is the success of the Samsung Galaxy SIII which has sold a cracking 10 million units in less than two months. 

Does this pose a genuine threat to the concept that iPhone is "the phone to own" or are the Android and iOS camps now so entrenched that crossing over is becoming less and less likely? Some investors will be hoping for a stock price dive, so they can buy "low" (if below $600 can be classed in that way) to benefit from a spike come the next generations of devices. 

Apple fans will be looking for a major style overhaul on the new iPhone, with the larger screen all but in place and new design tweaks to lift the style-bar higher still. But, with the platform maturing, what so-far unrevealed features can Apple add in iOS 6 and demonstrate with new apps to add actual value for users, over fluffy flourishes. 

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