Science and Technology Desk: Tech giant Apple is going to release the third quarter (July-September) earnings report.

Apple

Tech giant Apple is going to release its third quarter (July-September) earnings report today. The company expects the July-September quarter to be the highest in two years. After the release of the iPhone 16 series last September, Apple cited strong demand for the device in China as one of the reasons for this growth. News Reuters.

Apple says a positive iPhone earnings report in the third quarter of this year will give investors an idea of ​​demand for the iPhone 16. The said devices are revealed at the end of Apple's fourth quarter (July-September). As a result, the report will focus on what the senior officials of the company are saying about the first quarter of the new financial year. There are concerns that if the company takes too long to release its artificial intelligence (AI) features, it could undermine the much-anticipated AI-led 'super-cycle' of iPhone sales. According to technologists, Apple is still lagging behind in AI, as competitors like Samsung and Microsoft are rapidly rolling out new applications, driving demand for generative AI.

The term AI-led super-cycle refers to a period where increased interest and demand for AI technology can significantly boost sales. Investors and analysts want to know whether Apple plans to accelerate the introduction of AI features to capitalize on potential demand.

A few weeks after the launch of the iPhone 16, Apple began releasing the new AI features in English in a limited form to US customers. However, the features are not available on iPhones in key markets like Europe and China. But Apple faces competition from big companies like Huawei, Vivo, Xiaomi and Honor in the Chinese market. However, Apple has released some features on Mac computers for European Union (EU) users and plans to expand its range in April.

The company forecast sales growth of 3.8 percent in the quarter ended September, based on estimates by London Stock Exchange Group (LSEG) analysts. Analysts expect this growth to break the trend of declining iPhone sales for two quarters. In this regard, investment research firm Bernstein analyst Tony Sacconaghi said, 'How strong the demand for the iPhone 16 will be is most important both in the quarter ending in December and in the next fiscal year (2025).'

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According to LSEG, Apple's revenue will grow 5.7 percent in the July-September period and revenue in Greater China will increase 6.6 percent. According to Reuters, at this time, some iPhone models were available at a 10 percent discount on the online platform PinDuoDuo before the official release. PinDuoDuo is also not an Apple authorized retailer, so Apple cannot control its prices. In the Chinese market, the 16 series and lower iPhone prices helped Apple gain the second-largest market share in the three months to September, according to IDC data.

Meanwhile, at the same time, the sales of the iPad increased by 10.1 percent to reach 7.09 billion dollars, the technologists expect.