A person enters an Apple store as Apple Inc. reports fourth quarter earnings in Washington, U.S., January 27, 2022. REUTERS/Joshua Robertswill likely report a more than 4% drop in revenue, its second straight quarterly decline, weighed down by consumers shunning non-essential purchases such as iPhones and Mac computers and slowing growth at its services business.
"Apple is seeing moderate headwinds in its hardware businesses as iPhones face modest contraction in premium device demand and the iPad and Mac businesses could be weighed down by consumer and enterprise trends," analysts at Cowen and Co said. "The reopening of China, both from the supply chain and the consumer demand standpoint, works in Apple's favor," said Tom Forte of D.A. Davidson, who expects iPhone sales there to rise.