What to expect from Apple’s fourth quarter earnings
Apple will announce its earnings for the fourth quarter tomorrow, ahead of a new MacBook launch later in the week.
Connor Campbell, financial analyst at SpreadEx, said the earnings report "is likely to reflect the first annual iPhone sales decline in the company's history".
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Morgan Stanley analysts issued a note recently saying they are expecting Apple's revenue to fall year-on-year.
The company's revenues are cyclical, with spikes during the festive season. The analysts predicted Apple will have clocked up 44m iPhone sales in the fourth quarter – four million fewer than last year – the third quarterly fall in a row.
But, it is thought sales will rise again in the first quarter, reaching 74m.
Despite the declining sales this year, Apple did cause a stir when it released its iPhone 7 and 7 Plus in September. These smartphones were only on sale for a few weeks during the quarter, however, and Apple struggled with the launch due to stock shortages.
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In London, stormy weather on launch day kept the crowds away from the Apple store in Covent Garden and the Regent Street flagship store was closed for refurbishment.
It's a big week for Apple – on Thursday, the company will hold an event showcasing its new laptops, ready for the busy holiday season.
Samsung's recent problems with its exploding Galaxy Note 7 smartphone will also be a boost to Apple, according to Morgan Stanley. Samsung has said it is halting production of the phone, an announcement that caused Apple's share price to hit its highest point so far this year.