Abhinav Davuluri: Apple is set to announce its second-quarter results on Tuesday, April 30, and we are looking forward to hearing updates on three specific topics that should be top-of-mind for investors, including:
- Health of iPhone business, particularly in China
- Ongoing progress of Services growth strategy
- More granularity into new areas such as TV and news services
We anticipate Apple has stabilized its iPhone business in China, particularly via price cuts, and we look forward to hearing management dissect the services segment to better understand the numerous moving parts, including the App Store, Apple Pay, cloud services, and paid subscriptions. Finally, the firm's much-anticipated video streaming service was announced at its March 25 event, albeit without pricing details, and we expect management to provide additional updates on the offering. That said, we don't see Apple's variant threatening established services such as Netflix or Hulu anytime soon.
Shares have rallied quite nicely year to date since bottoming at the start of 2019 and are hovering around our fair value estimate of $200 per share for the narrow-moat tech titan.