Apple balked at publishing a forecast for the next quarter on Thursday.
The market launch of the iPhone 12 comes at an uncertain time.
According to a professional, Apple may still be dealing with supply chain issues.
Apple Inc. (NASDAQ: AAPL) announced its fourth quarter results on Thursday afternoon, which may have disappointed investors, but the company received carte blanche as the full launch of the iPhone 12 is imminent. In a less lenient move, however, Apple was reluctant to make a forward-looking forecast.
Looking back on Apple’s similar financial fourth quarter last year, the earnings report benefited from the launch of the then new iPhone 11, said daring Fireball founder John Gruber in CNBC’s “Squawk Alley”. Specifically, all the different iPhone 11 models were launched on September 20, and the 10 sales days before the end of the quarter can have a major impact on Apple’s financial performance.
Here is a full summary of Apple’s earnings report from Thursday.
This year, however, none of the new iPhone 12 models were launched before the end of the financial quarter.
Apple may have refrained from issuing guidance because the new iPhone Mini and Pro will not go on sale before November 6, he said. Coupled with uncertainty about whether Apple will be able to produce enough phones to keep up with the pent-up demand, the company refrained from issuing a guidance.
Meanwhile, Apple’s global supply chain remains a “question mark” as COVID 19 infection rates rise in certain parts of the world. The reason for the suspicion of underlying problems is based on the fact that the Apple Watch is sold out until December, so there is a good reason not to assume that the company is working at 100%.
Apple may not even know for itself how many new iPhone devices it can physically manufacture and sell in the quarter, Gruber said. The company may not even know the sales mix of demand.
Apple’s new iPhone 12 also features 5G technology, but for many people it could be useless, as it is up to individual networks to offer 5G services to their customers. The introduction of next-generation 5G networks over the years is a catalyst that will help drive demand for new devices over the years.
Google’s growth story
In connection with Apple’s profit report, it was found that around 20% of Apple’s service business comes from Google alone. Google pays Apple several billion dollars annually, making its search engine the default option in Apple devices.
Recent regulatory problems with Google further unsettle Apple’s prospects, Gruber said. It is difficult to say whether the deal will be closed through the US Department of Justice.
A realistic outcome would be that Apple would offer its users multiple search options before they can choose Google, he said.