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All that actually matters today is Apple’s (AAPL) earnings report.

I’m well mindful that lots of will dismiss such a recommendation of supreme relevance as nothing greater than poppycock from an unabashed fanboy.

As you’ll remember, I started banging the table to purchase shares in January 2014 as well as have been issuing tips ever since.

And the stats back me up.

Without Apple, tech industry profits would in fact contract 6 % this quarter, according to FactSet. But with Apple, they’re expected to expand 0.2%.

It’s additionally worth noting that Apple was the largest factor to S&P 500 revenues growth in the 4th quarter of 2014 and also the second-largest contributor in the initial quarter of 2015. As well as it represents 17 % of the S&P 500’s gains this year.

Whether we have shares or not, we require to pay interest. Apple is going to influence the velocity of the tech market, the wider market and also, then, our portfolios.

With that in mind, below are both vital numbers you should concentrate on when Apple records results after the Closing Bell today.

iPhone Units and ASPs

How lots of Apple Watch devices sold? Exists any hope of iPad sales rebounding? Exactly how rapid is Apple Pay obtaining grip? Is Apple Songs on track to topple Spotify?

Count on experts consuming over any type of insights that help respond to these concerns. Although they matter in the long run – especially if Apple ever stands a possibility of cresting the $1-trillion market cap threshold – they do not today.

Instead, it’s about the apple iphone, the main driver of Apple’s success and also, by extension, its share price.

In the first fifty percent of budgetary 2015, the famous product represented 69 % of Apple’s sales. That functions out to regarding $3.45 of every $5 in complete sales.

Now, consensus estimations call for Apple to offer 49.4 million iPhones, standing for a 40 % year-over-year growth rate.

However, KGI Stocks’ Ming-Chi Kuo – probably one of the most exact Apple analyst on Commercial – forecasts the tech huge shipped near to 54.2 million iPhones. That would certainly exercise to an eye-popping 54 % growth rate.

The essential degree for me is 50 million. Any sort of number above it should be a solid adequate beat to spark a rally. The higher the number, the stronger the rally.

The 2nd number to maintain an eye on is the typical marketing price (ASP) for an iPhone.

The agreement price quote asks for an apple iphone ASP of $636, which represents a 2 % boost over last year’s worldwide average, according to Technique Analytics.

However, I’m convinced it’s visiting sign in higher.

‘Customers appear to have come to be comfortable with the much bigger display,’ states Josh Lowitz, Partner and also Co-founder of Customer Intelligence Study Allies (CIRP).

That implies a lot more consumers are buying higher-margin, larger iPhones. And also based upon the most up to date CIRP study, the boost appears substantial sufficient to favorably affect ASPs.

In the June quarter, 29 % of brand-new apple iphone purchases were for an apple iphone 6 Plus, up from 22 % last quarter.

UBS expert Steven Milunovich believes that would equate right into the second-highest apple iphone ASP ever before at $660. (The high-water mark is $687, attacked during Apple’s record-smashing monetary 2014 fourth quarter.)

The higher the apple iphone ASP, the even more earnings Apple makes. And because share costs ultimately follow earnings, a surprise to the upside on ASPs could push Apple’s stock even higher.

Remember, if you’re a financier, you should be rooting for such an outcome, provided Apple’s effect on both the technology market and the S&P 500.

Thankfully, we will not need to hesitate lengthy to discover. Apple launches outcomes after the bell, and also administration’s teleconference starts at 5:00 p.m. Eastern time.

In instance you’re interested, here’s a run-through of consensus expert approximates for the other key quarterly numbers:

  • Revenue: $49.3 billion
  • Earnings Per Share: $1.80
  • Gross Margin: 39.5%
  • Revenue Guidance (Q4): $51.1 billion