What to expect from Apple’s second quarter results on 4 May

The market will be hoping for a better trading period than its first quarter decline

Consumer electronics giant Apple (APPL) reports its second quarter earnings on 4 May with expectations set at subdued levels. Group earnings are forecast to be lower year-on-year as the company battles a difficult macroeconomic backdrop.

In February the company posted its first annual drop in quarterly revenue for three-and-a-half years thanks to supply chain disruptions in China. There will be hopes of an improvement on this front in the latest period thanks to the lifting of Covid restrictions in the world’s second largest economy, also an important market for Apple.

There will be a focus on the company’s new tie-up with Goldman Sachs (GS:NYSE), which is offering a competitive rate on a freshly launched savings product only available to customers with an Apple credit card. Being a bigger playing in the money channel could add another string to Apple’s bow.

Services are an increasingly important part of the Apple story, as it derives repeatable and predictable revenue from an installed base of more than two billion handsets. Its current offering includes Apple TV, iTunes, the App Store and Apple Pay. Revenue from this area has been growing fast, nearly doubling from $10.9 billion in the final three months of 2018 to $20.8 billion in the final three months of 2022. [TS]

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