Apple's holiday guidance to be in focus during Q4 results

What happened

Apple reports quarterly results on Monday, and investors will focus on its holiday-quarter outlook as the folding iPhone Duo launches this month. Wall Street expects profit of $1.98 per share on revenue of $113.32B, a rise of 10.6%.

Confirmed

Global impact / market context

Apple's guidance shapes expectations for holiday iPhone sales, which drive a large share of its revenue. A weak forecast could signal that higher memory costs, which means prices for memory chips, are squeezing profit per sale and making devices less affordable for buyers.

Analyst inference

Apple previously gave a weak forecast in July, citing supply constraints and higher memory costs, which spooked some investors. A decline in global smartphone shipments adds pressure on makers, and rising component costs have pushed Apple to raise prices, which can reduce demand from price-sensitive consumers.

Analyst inference

What to watch

1. Wall Street expects earnings per share of $1.98 on revenue of $113.32B, implying a rise of 10.6% during the quarter, so the actual figures will be compared with these estimates. Confirmed
2. Watch Apple's December-quarter guidance for signs that higher memory costs, which means chip prices, are already pressuring profit per sale, or whether management says that pressure is delayed. Analyst inference
3. Analysts say the market will want to hear more about the memory cost problem expected to show up next year, so look for comments on costs landing in the March 2027 quarter. Proposed

Evidence

• seekingalpha.com