Silicon Valley giant Apple will announce its first quarter earnings on May 1, with the tech company expected to see continuing revenue growth despite weaker iPhone sales.
According to consensus figures from S&P Global Market Intelligence, Apple is expected to post sales of around $61bn (£44bn), an improvement of 13 per cent year-on-year. Net income for the quarter is expected to come in at $13.7bn.
The companys guidance for the second quarter released back in February will have analysts looking for earnings of $2.69 per share, compared to $2.10 a year earlier.
Read more: Sales of new iPhone X slump as Apples older models prove more popular
However, disappointing sales of the iPhone 8 and iPhone X as well as weak results from Apple supplier TSMC in the first quarter have investors concerned that Apple's latest results may come in lower than expected.
“Like many tech stocks, Apple has retreated from its all-time highs,”said Russ Mould, investment director at AJ Bell. “Analysts are concerned that the lofty price tags and only evolutionary incremental functionality mean phone replacement cycles are getting longer.”
Read more: Apple results preview – have smartphone sales peaked?
Fears over lacklustre growth has seen the companys share price tumble eight per cent over the last week, wiping over $60bn from its valuation.
The California-based company is expecting its gross margins to remain relatively flat at around 38 per cent.
However, soaring revenues from service as well as recent tax cuts from US President Donald Trump are expected to bolster the companys results, with a drop in tax charge from 22 per cent last year to just 15 per cent this year.
According to Mould, this may help to “lessen the firms reliance on the iPhone.”
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