Here's what Wall Street expects from Apple's Q 2 2021 earnings

3 minutes
Here's what Wall Street expects from Apple's Q 2 2021 earnings

On Tuesday, Apple is expected to report Q 2 2021 earnings after the closing bell on Monday.While analysts are calling for Apple to beat the revenue expectations, the tech giant will face questions about how its business will be affected by the global chip shortage and the increased COVID 19 vaccinations.

Here's what Wall Street expects in the quarter versus how Apple did in Q2 last year.

Apple remains high on the sales of its iPad 12, which it launched in September 2020.The first iPhone to offer 5 G cellular connectivity has so far been a massive success for the company so far.In Q1 2021, the Company's revenue was 21% year over year, owned by iPhone sales, and Q 2 isn't predicted to be any different.

Wedbush analyst Dan Ives wrote in a research note ahead of the earnings report : 'We are expecting the iPhone 12 supercycle theme to be front and center on Wednesday when Cupertino returns another strong March quarter of upside based on our analysis.

But with vaccines rolling out to all Americans over 16 and states easing pandemic restrictions, the robust sales from Apple's Mac and iPad segments could slow down, wrote Goldman Sachs Rod Hall in his own note.

'In our opinion, current high levels of both iPad and mac demand are unlikely to be sustainable if the world is re-opens, so one beat that is driven more by these areas may not be enough to drive shares further, Hall said.

Like other tech companies, Apple benefited from Stay At Home orders that drove sales of its laptops, desktops and iPad, as workers and students needed tablets to stay connected to the web.

Apple is also continuing to move with its plan to ditch Intel as its primary chip provider in favour of its own Arm-based M1 chips.The company debuted its first MacBook Air, MacBook Pro and Mac Mini powered by M1 - processors in November 2020, which stimulated growth in the segment, and earlier this month, Apple debuted its new M 1 - powered iMac and iPadiPad Pros.

The biggest dark cloud hanging over Apple and other tech companies is the ongoing global chip shortage, which could last until 2022.

The fear of Apple is that a lack of available semiconductors may slow the company's ability to get products built into consumers' hands.Apple has fared so far well, but a long-term slowdown in the chip availability could affect its revenue going forward.

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