The consensus of Wall Street analysts assumes that Apple will show sales of USD 121.7 billion in the first quarter of the 2022/23 financial year, which would mean a decrease of -1.8% q/q. In pre-session trading, Apple's price is up 1%.

Today, after the session, Apple will announce the results for the first quarter of the 2022/2023 financial year, i.e. for the fourth quarter of 2022. Expectations are moderate, given the recent production problems in China.

The most interesting point in the Apple report will be how the demand for apple products is affected by a marked slowdown in consumer spending on computers, mobile phones and other electronics. There is also the issue of the weakening USD.

Apple's results this time a big puzzle

The consensus of Wall Street analysts assumes that Apple will show sales of USD 121.7 billion in the first quarter of the 2022/23 fiscal year, which would mean a decrease of -1.8% QoQ and the first quarterly decrease since 2019. Earnings are expected to be $1.95 per share, down from $2.10 a year earlier.

Recall that Apple stopped publishing preliminary results estimates at the beginning of the pandemic, and it seems unlikely that the company will resume this practice. CFO Luca However, Maestri warned in late October 2022 that the prospects for the fourth quarter do not look rosy, and Mac sales will be significantly lower year-on-year. He emphasized that revenues from services would probably increase year on year, but alarmed that the company was facing macroeconomic problems.

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The most important driver of Q4 2022 results will be iPhone sales . Meanwhile, in the fall, there were production problems with the iPhone 14 Pro and Pro Max models. Besides, the question was how the sale looked like in the face of high inflation and a weakening economy.

Wall Street analysts polled by FactSet expect iPhone revenue to be $68.3bn for the quarter, down -4.6% y/y, and Mac revenue to be $9.3bn USD (decrease by -14% y/y). iPad revenue should be $7.9 billion, up 9.6%. Revenues from wearables , home and accessories are expected to amount to USD 15.2 billion, which would mean an increase of 3.4%. Analysts predict service revenues of USD 20.5 billion, which would mean an increase of 5% y/y.

As for the regions, analysts' estimates assume a decline in sales in most regions. Interestingly, it is expected to be higher in Europe (-22%) than in China (-20%).