Tuesday will see AAPL Q2 2019 revenue announced by the company, and the Wall Street consensus is that Apple will announce numbers somewhere around the midpoint of its $55-59B guidance. That would represent a year-on-year decline of around 5-6%.

The averages of four different analyst surveys show predictions ranging from $57.44B to $58.27B, with three of them coming up with $57 point something billion …

PED30 has the averages from surveys by:

  • Apple 3.0 (its own survey)
  • Visible Alpha (a consortium of banks)
  • Thomson Reuters (the most commonly-cited source)
  • Estimize (crowd-sourced)

As Philip Elmer-DeWitt notes, with Wall Street not expecting any dramatic revelations about Q2, all eyes will be on Apple’s guidance for Q3. Three of the four surveys are pessimistic, suggesting that Apple’s guidance midpoint will be anywhere from 1.39% to 2.62% lower than last year’s Q3 results. The exception is Estimize, which expects Apple to forecast a 1.39% climb in Q3 revenue.

Apple’s Q1 earnings revealed that the company badly missed its original guidance last time around, and has taken action with a view to ensuring it doesn’t do so again. As we noted earlier in the month, it has offered a series of price-cuts and trade-in deals to protect sales.

Apple also cut $50 from the price of the HomePod.

In the USA, Apple launched a ‘limited time’ trade-in deal in December of last year which is still available today. It takes the effective cost of an iPhone XR, for example, down to as little as $449.

Looking beyond AAPL Q2 2019 revenue, analysts Wedbush says that further price-cuts are likely, at least for the iPhone XR.

Ensuring existing iPhone users don’t switch to Android is, says the firm, vital to safeguard Apple’s growing Services revenue.

Apple continues to face a “code red” situation in China and the right pricing strategy around XR and future versions will be key to putting a ring fence around the core installed base in the region. With lower priced competition from all directions with Huawei/Xiaomi front and center, Apple needs to make sure they do not lose any current iPhone customers and thus speaks to the more significant price reductions on the way in the region over the coming months ahead of the next major product cycle in September.

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