Apple Earnings Call For Q1 2013, Last Minute Predictions

Apple Earnings Call for Q1 2013: Last Minute Predictions

Apple is set to announce its financial results for the first quarter of fiscal year 2013 on Wednesday, January 23, at 2 p.m. PT / 5 p.m. ET. The company has already issued a guidance of $52 billion in revenue and $11 billion in profit, but analysts and investors are eager to see how the company performed in the holiday season, especially with the launch of several new products, such as the iPhone 5, iPad mini, iPad 4, iMac, and iPod touch.

Here are some of the key metrics and expectations to watch for in the earnings call:

iPhone sales: The iPhone is Apple's most important product, accounting for more than half of its revenue and profit. The company sold a record 47.8 million iPhones in Q1 2013, up from 37 million a year ago and 26.9 million in the previous quarter. Analysts expect Apple to report similar or slightly higher numbers this time, as the iPhone 5 was available in more countries and carriers than before. However, some reports have suggested that Apple cut its orders for iPhone components due to weaker-than-expected demand, which could indicate a slowdown in sales growth.

iPad sales: The iPad is Apple's second-largest product category, and the company introduced two new models in Q1 2013: the iPad mini and the iPad 4. The company sold a record 22.9 million iPads in Q1 2013, up from 15.4 million a year ago and 14 million in the previous quarter. Analysts expect Apple to report similar or slightly higher numbers this time, as the iPad mini was in high demand and sold out quickly in many markets. However, some analysts also believe that the iPad mini cannibalized sales of the larger iPad, which could affect Apple's margins and average selling price.

Mac sales: The Mac is Apple's third-largest product category, and the company refreshed its iMac line in Q1 2013 with thinner designs and faster processors. However, the new iMacs faced production delays and limited availability, which affected Mac sales negatively. The company sold 4.1 million Macs in Q1 2013, down from 5.2 million a year ago and 4.9 million in the previous quarter. Analysts expect Apple to report lower or flat Mac sales this time, as the supply constraints continued to impact sales.

iPod sales: The iPod is Apple's oldest product category, and the company updated its iPod touch and iPod nano models in Q1 2013 with new designs and features. However, the iPod market has been declining for years, as consumers shift to smartphones and tablets for their music needs. The company sold 12.7 million iPods in Q1 2013, down from 15.4 million a year ago and 5.3 million in the previous quarter. Analysts expect Apple to report lower or flat iPod sales this time, as the iPod segment continues to shrink.

Revenue and profit: The revenue and profit numbers are the bottom line for Apple's performance, and they reflect how well the company manages its costs, margins, pricing, and product mix. The company reported a record $54.5 billion in revenue and $13.1 billion in profit in Q1 2013, up from $46.3 billion and $13 billion a year ago and $36 billion and $8.2 billion in the previous quarter. Analysts expect Apple to report slightly higher or lower revenue and profit this time, depending on how they estimate iPhone and iPad sales and margins.

Apple's earnings call will be streamed live on its website at https://www.apple.com/investor/earnings-call/. Stay tuned for more coverage and analysis of Apple's financial results. aa16f39245