Skip to main content

The context you need, when you need it

When news breaks, you need to understand what actually matters — and what to do about it. At Vox, our mission to help you make sense of the world has never been more vital. But we can’t do it on our own.

We rely on readers like you to fund our journalism. Will you support our work and become a Vox Member today?

Join now

Apple is about to tell us if it expects to start growing again

The company is no doubt getting some boost from Samsung’s Galaxy Note 7 woes, but will it be enough?

Apple

After two consecutive quarters of declining sales, Apple investors will be scouring the company’s earnings report on Tuesday for signs of a return to growth.

An end to the decline would appear to hinge on sales of the all-important iPhone.

Apple is clearly benefiting from Samsung’s Galaxy Note 7 problems, but it remains unclear just how many Note 7 buyers are gravitating to the iPhone rather than choosing a Galaxy S7 or other Android device.

T-Mobile operating chief Mike Sievert told Recode on Monday that it was too soon to say just how much Apple is gaining at Samsung’s expense.

“Because you are talking about a lot of customers, all things are happening,” Sievert said. “We are very delighted a lot of them are staying with the Galaxy family.”

Of course, it’s not just about those who had plunked down for a Note 7 before the phone was recalled. Just as important is how the issue weighs on those buying a new phone this holiday season as well as those in the market next year.

The other big factor is supply. Sievert said T-Mobile remains constrained on Apple products, though it expects to catch up to demand by November. That’s fairly similar to last year’s iPhone 6s, but less of a shortage than it saw in 2014 with the debut of the iPhone 6.

Overall, analysts are expecting Apple to post $47 billion in revenue, down from $51.5 billion a year ago, and earnings of $1.65 per share.

Apple will benefit in the December quarter from an extra week of sales; however, a year ago the company got a $548 million payment from Samsung related to the company’s ongoing patent dispute. All in all, the net impact should be a $1 billion benefit to Apple’s December sales, according to Piper Jaffray.

Here are some other metrics to watch, with the consensus forecast, according to Piper Jaffray.

  • September quarter revenue: $47 billion
  • September per-share earnings: $1.65
  • September iPhone sales: 45 million
  • September Mac sales: 5 million
  • September iPad sales: 8.5-9 million.
  • December quarter revenue guidance: $75 billion

It’s a busy week for Apple beyond the earnings report. It’s due to launch new Macs at an event in Cupertino on Thursday.

Another question is just when we’ll see Apple’s AirPod wireless headphones, which were promised for this month. It’s getting late in the month, so there could be an issue — or Apple could just announce availability sometime in the next five days.

This article originally appeared on Recode.net.

More in Technology

Podcasts
Are humanoid robots all hype?Are humanoid robots all hype?
Podcast
Podcasts

AI is making them better — but they’re not going to be doing your chores anytime soon.

By Avishay Artsy and Sean Rameswaram
Future Perfect
The old tech that could help stop the next airborne pandemicThe old tech that could help stop the next airborne pandemic
Future Perfect

Glycol vapors, explained.

By Shayna Korol
Future Perfect
Elon Musk could lose his case against OpenAI — and still get what he wantsElon Musk could lose his case against OpenAI — and still get what he wants
Future Perfect

It’s not about who wins. It’s about the dirty laundry you air along the way.

By Sara Herschander
Life
Why banning kids from AI isn’t the answerWhy banning kids from AI isn’t the answer
Life

What kids really need in the age of artificial intelligence.

By Anna North
Culture
Anthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque messAnthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque mess
Culture

“Your AI monster ate all our work. Now you’re trying to pay us off with this piece of garbage that doesn’t work.”

By Constance Grady
Future Perfect
Some deaf children are hearing again because of a new gene therapySome deaf children are hearing again because of a new gene therapy
Future Perfect

A medical field that almost died is quietly fixing one disease at a time.

By Bryan Walsh