This year, the "main event" won't be Apple's earnings, wrote Barclays analyst Tim Long, it's what Apple says about the September quarter, which is nearly one-third over.Apple CEO Tim Cook attends the annual developer conference event at the company's headquarters in Cupertino, California, U.S., June 10, 2024.
Investors will be keen to hear how Apple CEO Tim Cook talks about Apple Intelligence, its long-awaited artificial intelligence play that uses the company's own chips in servers and devices, instead of expensive. It isn't likely to be material to Apple's bottom line yet, but could boost "late cycle" demand for high-end iPhone 15 models that can run the service, Long wrote., which have been skyrocketing at rivals as they assemble massive server farms for AI.
"The revenue upside, in turn drives our expectations for EPS upside, which is likely to lead to consensus revisions for full-year earnings, and partly ease investor concerns around a premium valuation multiple," Chatterjee wrote.