Apple AAPL became the first publicly listed U.S. company to reach $1 trillion in market value on the back of the iPhone. Now, with its fiscal fourth quarter financial results due out Thursday, November 1, let’s look at how many flagship smartphones Apple is projected to sell and how much revenue the iPhone will generate.
Apple introduced its new iPhone XR, iPhone XS, and iPhone XS Max in mid-September at its now customary launch event. Apple’s CEO Tim Cook and other executives showed off the tech giant’s latest offerings, which also featured the next generation Apple Watch, in order to hype sales before the key holiday shopping period.
Last year’s high-priced 10th anniversary iPhones, which these new models build upon, helped lift iPhone revenues despite slower unit growth. The iPhone XS Max is set to start at $1,099 and could cost up to $1,449. Therefore, the new phones should theoretically help boost Apple’s top line once again.
But Apple’s fiscal fourth quarter won’t include many new iPhone sales since it will feature the quarterly results for the period that ended on September 30. With that said, let’s see how many iPhones Apple is expected to sell and how much revenue the company is expected to make from them since the smartphone is still its most important business unit.
To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Apple’s total iPhone unit sales are projected to reach 46.954 million, based on our latest NFM estimates. This would mark less than a 1% jump from the year-ago quarter’s 46.677 million.
Luckily, the higher prices look as though they will once again boost iPhone revenues in a big way.
The tech giant’s total iPhone revenues are expected to surge roughly 23.5% from $28.846 billion in Q4 of 2017 to hit $35.651 billion this year. Apple saw its iPhone revenues pop 20% in Q3 to hit $29.906 billion. Meanwhile, third-quarter iPhone unit sales rose marginally from 41.026 million to 41.300 million.
Overall, Apple’s Q4 revenues are projected to climb by 17.1% to hit $61.55 billion, based our current Zacks Consensus Estimate. Therefore, based on our projections, iPhone revenues are expected to account for approximately 58% of Apple’s total Q4 revenues. Meanwhile, Apple is projected to see its adjusted quarterly earnings soar by 34.3% to reach $2.78 per share.
Apple has also earned a ton of positive earnings estimate revisions over the last 60 days. This positive earnings revision movement helps Apple earn a Zacks Rank #2 (Buy). Investors should also remember that Apple’s other business units, including services and “other products,” continue to shine.
Plus, Apple is ready to enter the streaming TV market to take on Netflix NFLX, Amazon AMZN, Hulu, and soon enough Disney DIS.
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