Apple Inc. AAPL may be able to end its streak of year-over-year revenue declines in the December quarter, according to Bloomberg columnist Mark Gurman.
A Holiday Quarter To Cherish? After three straight quarters of revenue drop, Apple could see growth in the upcoming holiday quarter thanks to a better supply chain and favorable comparisons with last year’s slow shopping season, Gurman said in his latest Power On newsletter on Sunday.
The current consensus for the December quarter revenue is $123.5 billion, compared to last year’s $117.2 billion. Gurman believes that assuming Apple doesn’t encounter supply chain disruptions or sales issues in China, the company should easily surpass last year’s revenue.
So-so Product Launches: According to Gurman, this year has been relatively quiet for Apple in terms of product releases. He noted that the company introduced refreshed processors for the MacBook Pro and Mac mini, as well as a new HomePod speaker without any significant new features. The major product launches in June, including the M2-based 15-inch MacBook Airs, Mac Studios, and Mac Pros, received mixed reviews.
Gurman also mentioned that while the Vision Pro was introduced in June, it won’t be available for sale until early next year and is not expected to have a significant impact on Apple’s financials for several years. Regarding the recent “Wonderlust” launch event, Gurman stated that the new Apple Watches are similar to last year’s versions, with only minor updates in terms of performance and features.
High-end iPhones, Supply Chain – The Highlights: Gurman highlighted the iPhone 15 Pro and Pro Max as the major standout products, featuring slimmer bezels, improved cameras, and an A17 Pro chip that enhances the gaming experience. He also noted that the titanium design brings improvements in durability and weight, which could drive sales this fall. Preorder data suggests strong demand for these high-end iPhones.
Gurman believes that Apple’s smoother supply chain, with no signs of manufacturing issues so far, is likely contributing to the company’s positive performance. Last year, Apple faced manufacturing disruptions due to COVID-19 lockdowns at its major supplier in China.
Larger Changes Ahead: Gurman predicts that while Apple’s product lineup for 2023 will help meet financial targets for this holiday period, the real changes are planned for 2024. He emphasizes that Apple needs to ensure customer loyalty with its interim products until the larger changes arrive. Despite the modest updates in 2023, Gurman believes that the latest devices will likely meet this goal.
Apple’s stock closed down 0.42% at $175.01 on Friday, according to Benzinga Pro data.
