[Financial Results Summary] Apple's increase in sales and profit also fell overtime due to China's struggle. What are the future prospects?

Sales increased 5% year over year to 85.7 billion77 million dollars, and net profit increased 8% to 21.4 billion 48 million dollarsIt was. There was an increase in sales and profit for the first time in two quarters, but sales in China fell larger than expected, and sales fell 6.5% to 14.7 billion dollars, which was lower than the 15.3 billion dollar forecast by analysts.

Apple'sSales and profit for the sixth consecutive quarter exceeded expectationsIt knocked out record high total sales and EPS recorded in the 3rd fiscal quarter, and record high service revenue and iPad revenue increased rapidly for 6 consecutive quarters, and total revenue increased more than expected, and iPhone revenue declined compared to the same period last year, but the total amount was also better than expected,It rose 1.3% temporarily outside of hours, then fell 2%I did it.

Tech journalist Mark Garman commented that while everything seems to be going well for Apple financially, the company has drastically lost the pace of technological innovation and is canceling future growth drivers such as in-house screen technology and autonomous vehicles, there is a possibility that it has missed the latest large-scale new products. “There is no revolutionary product that would change the game. Something new and revolutionary will probably be around 2027,” he said.

The sales growth rate for the fourth quarter is almost similar to the third quarter, and service sales are expected to record double-digit growth, the company's executives announced today.Artificial intelligence (AI) has become another reason for people to buy new iPhones, and there is long-term confidence in the Chinese marketIt's called.

Chief Executive Officer Tim Cook (CEO) responded to media interviews, and although iPhone sales volume decreased by about 1% in the 3rd quarter compared to the same period last year,The smartphone business grew year-on-year on a constant exchange rate basisHe said, “I look at it that way in terms of management.”

Furthermore, in the second quarter, iPhone sales reached record highs in the UK, Spain, Indonesia, the Philippines, and several other markets.

What should I focus on now?
Tech stocks were generally sluggish in July, and the Nasdaq was 0.8% negative per month. The chip index was the only other major stock index that fell.

Apple's stock price was also supported by the demonstration of the artificial intelligence software “Apple Intelligence” at the Worldwide Developers Conference (WWDC) held in June, and recorded a 5% increase. With a current market capitalization of 3 trillion 300 billion dollars, Apple is America's largest company, and its profits are critical to the future of the stock market as a whole. The financial results of Apple, a major 3C consumer goods company, reflect the soundness of the economy as a whole, and are also a clue to know private consumption intentions.

Investors' interests areManagement's outlook on sales prospects for the latest iPhone 16 series to be released in the fall、Recent trends in Apple sales in Greater Chinaand the fierce competition that the company faces,Comments on this week's beta rollout of AI features for developers, andThe scale of spending on generative AI initiativesIt's probably there.

As of early May, Apple fell 10% per year, and its stock price performance was second from the bottom of the “Mag 7,” so it is clear that subsequent progress in AI technology development is particularly important for the company to change the trend. Apple Intelligence needs at least a new model in the high-end series of iPhone 15, and a new round of iPhone sales supercycle may begin.

How do you view Wall Street?
Wall Street asked for hints at financial results briefings about when this year's iPhone 16 series will go on saleIt's there. Apple usually launches new products in September, but in the past it has been postponed to October.

Bank of America and EverCoreISI include 1 week's worth of results from the release of the new iPhone in the quarter corresponding to September,Since initial signs of demand were strong, iPhone sales began to increase compared to the same period last yearI'm watching Ru. Currently, the market predicts that iPhone sales for the fourth quarter will be 44.18 billion dollars from 43.81 billion dollars in the same period last year.

Evercore ISI says that comments on the iPhone will be an important trigger for the financial results announcement this time. “Expectations for the iPhone 16 and optimistic comments about China's stabilization are likely to increase stock prices,” he said.

Wedbush's leading tech analyst Dan Ives pointed out that there are 0.2 billion70 million iPhones that have not been replaced for 4 years or more, and stated that the supercycle caused by AI will explode demand that has accumulated in the pool.

In the market,New AI features drive Apple's entire hardware product line, led by the iPhoneAlso, there is a general view that it will be the main driving force to replace the machine upgrade “Super Cycle,” but according to some reports, there is also a view that the release of AI functions for mass consumers will be delayed until October. Also, there are concerns that investing a large amount of money in AI technology will adversely affect Apple's earnings.

In contrast to JPMorgan, who is bullish that there is a possibility that sales in the third quarter will increase compared to the same period last year, UBS Global Research analyst David Vogt sees a 6% decrease in sales in the Chinese region this quarter, and his view is more pessimistic than market expectations. He called Apple a “hold (hold),” and the target stock price “reflects Apple's tough growth outlook and unclear artificial intelligence strategy, and remains at 190 dollars.”