Interested in computer hardware stocks? If so, you might want to think about adding Apple Inc. (NASDAQ:$AAPL) to your investment portfolio. Shares of the Cupertino, California-based company have increased 44% this year according to Q4 fiscal earnings, and why? Mostly because of the anticipation for the iPhone X. Whether or not that rally will continue depends entirely on what Apple expects sales of the device this upcoming holiday season.
That’s one of the many questions analysts and investors will be asking when Apple posts their fiscal Q4 results after the closing bell on Thursday.
Heres are 3 things Wall Street will be looking for when Apple reports their earnings:
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What’s Going on With China?
In Q3, Apple reported that Greater China was the company’s only major region to see a revenue decline. However, investors are hopeful that the iPhone X – otherwise referred to as the iPhone 10 – will be popular amongst Chinese consumers, increasing revenue from the region in future quarters.
“During our recent China Tech Tour, we uncovered positive vibes around the iPhone X,” Drexel Hamilton analyst Brian White wrote in a note. “With this iPhone cycle ramping, we believe Apple’s sales cycle in Greater China could turn positive on a quarterly basis in the first half of the fiscal year 2018.”
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What Impact will the iPhone X Have?
Seeing as the iPhone X has a number of new features, including 3-D facial recognition, the device is already extremely popular. However, due to production delays, there might be a limited number of the device in the crucial holiday quarter. So, the question is: if there aren’t enough iPhone X models for sale, will people purchase an Android or Samsung instead?
On Thursday, Apple will discuss this question in depth when it forecasts revenue and gross profit margins for the three months through December.
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Will the iPhone 8 Make Any Waves?
Most people are fixated on the iPhone X, so the iPhone 8 is more of an afterthought. Because of this, analysts forecast the demand for the 8 to be pretty tame. In fact, some are even hoping for sales to be low because that means more customers are waiting for the pricier iPhone X.
Featured Image: depositphotos/Vividrange
