Apple earnings will illuminate the high-end consumer mindest

To date, Apple’s sales have remained strong, thanks in no small part to the fact that the company’s customers are well-heeled vs. the general tech consumer. When Apple reports third quarter earnings on Thursday for the quarter ended in June, it will shed light on the mindset of the high-end consumer.
Apple Park in Cupertino, California
Any signs that Apple customers are deferring Mac, iPad, and iPhone purchases due to U.S. inflation or recession fears could have implications for the U.S. and world economy as a whole.
Kif Leswing for CNBC:

The third quarter of Apple’s fiscal year is typically the company’s smallest by sales. The quarter is in the back half of the iPhone’s annual refresh cycle as investors start to look forward to the release of a new model, which boosts sales starting in late September or October.
This year, analysts and investors will be closely watching Apple’s earnings in the face of many new macroeconomic trends, including declining consumer confidence, rising interest rates, and decades-high inflation.
So far, Apple’s sales have remained strong, partially because its customers are a fairly well-off group.
Analysts polled by FactSet expect Apple to report $82.8 billion in sales… Analysts are also expecting $1.16 in earnings per share…
Investors will also be listening closely to see if Apple is signaling consumer weakness in any regions around the world.
“We believe outlook/demand commentary will be the key focus as we try to gauge the impact to Apple’s earnings in the event of a slowing consumer/macro environment,” Wells Fargo analyst Aaron Rakers said in a note. If Apple signals that demand is slowing, it would be another signal of a potential recession.

MacDailyNews Take: As we wrote last week: As always, it won’t be about “what have you done” (fiscal Q3 earnings) so much as “what will you be doing for us in the foreseeable future?” Any color that Apple provides on the July 28th conference call about the upcoming quarter (fiscal Q4) will be crucial.
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