In 2007, Steve Jobs stood on a stage and held up a sleek, black rectangle. “An iPod, a phone, and an internet communicator,” he said to a crowd that didn’t yet grasp the magnitude of what was about to happen.
The iPhone wasn’t just three devices in one—it was a revolution still unfolding.
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Apple announced a preview of Apple Intelligence this summer. This AI feature is designed to enhance Siri, auto-generate emails and images, and organize notifications. The functions will be available on Apple's latest iPhone 16s.
“I love the emerging world,” Tim Cook says in an interview with the Wall Street Journal. “I love the idea for a bunch of people to feel like tomorrow is better than today—the dream, the belief that you’re going to stand on your parents’ shoulders.”
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The full suite of Apple Intelligence is expected to come out later this month.
However, some at Apple believe the company is more than two years behind industry leaders in generative AI, according to Bloomberg's Mark Gurman, who reports that OpenAI’s ChatGPT is 25% more accurate than Apple’s Siri and can answer 30% more questions.
What to expect for Apple’s Q4 earnings
Apple (AAPL) announced its fiscal third-quarter results on August 1, covering the period through June 29.
The company reported earnings of $1.40 per share, beating the consensus estimate of $1.35. Revenue totaled $85.78 billion, a 4.9% year-over-year increase, exceeding expectations of $84.53 billion and setting a new third-quarter record.
Apple's iPhone business remains a strong cornerstone of its revenue. The segment generated $39.30 billion in revenue in its latest quarter, down 1% from last year but exceeding the $38.81 billion forecast, accounting for about 46% of Apple's total sales.
Apple claimed a 15.8% share of the market in the first quarter of 2024, while its long time competitor, Samsung, ranked first with a market share of 18.9%, according to Statista’s August report.
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Statista also reports that Apple has consistently seen an increase in smartphone shipments during the fourth quarter of each year since 2011.
Apple will announce its fiscal Q4 earnings on Oct. 31 after the market closes. The report will cover the quarter ending in September 2024.
Analysts expect earnings per share of $1.54, and the number for the same quarter last year was $1.46, according to Zacks Investment Research.
Apple's Q3 iPhone shipments stronger than expected, analyst estimates
Loop Capital has revised its Q3 iPhone revenue forecast for Apple, citing stronger-than-anticipated iPhone shipments, thelfy.com reported.
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The firm raised its iPhone revenue estimate to $49.3 billion from $48.6 billion and increased its unit sales forecast to 53.5 million from 52.5 million.
According to Loop Capital’s research, the iPhone supply chain is performing better than initially forecasted, reflecting resilient demand amid a highly competitive smartphone market.
However, the firm also noted that Apple’s implied 33-times 2026 earnings multiple is on the higher end of the post-COVID range of 20-35 times, suggesting that Apple’s stock could be at a premium relative to its historical valuation levels.
Loop Capital maintained its buy rating on Apple shares, along with a price target of $300.
Meanwhile, JPMorgan has noted a shift in iPhone 16 lead times, now tracking in line with those of the iPhone 15 series. Lead times are the waiting period from order placement to delivery.
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JPMorgan reports that lead times for Apple's iPhone 16 Pro models have started to decrease across all regions after remaining stable for about four weeks. Meanwhile, the base model delivery times have slightly increased.
Initially, the iPhone 16's average delivery times were shorter than the iPhone 15’s, but by week six, they were back in line with the iPhone 15’s delivery patterns, "providing more reassurance around recovery in demand momentum following the initial weeks post-launch," the analyst tells investors in a research note.
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