Apple Q4 Earnings Can Have Far-Reaching Impact on the U.S. Stock Markets

October 27th may be any other Tuesday for billions of people, but for Apple investors, industry analysts, and legions of fans, it is the day that the company will be declaring its Q4 earnings.

The Q4 earnings declaration has assumed greater significance after reports that Apple sold 13 million units of iPhone 6s and 6s plus on the first weekend of commercial availability. The sales are higher than the launch of the last version of the phone, however, one important point to note here is unlike last time, the 13 million sales figure includes China, counted among the largest markets for iPhone.

According to some analysts, iPhone 6s sales may not be as belligerent as iPhone 6 and iPhone 6 Plus, which helped the company achieve record revenues in the fourth quarter of 2014. Adding to the unnerving anticipation for Tuesday’s quarterly results are the speculations that Apple is revising its strategy, owing to lower-than-expected sales of iPhone 6s. According to an article published in USA Today, Apple’s impressive sales figure of 13 million have done nothing to boost investor morale, with the stock still down by 15.9% from their 2015 high levels.

In contrast, analysts bullish on Apple are optimistic that Apple’s Q4 results may set a new record on Nasdaq, the index dominated by U.S. tech stocks. It is in the backdrop of these optimistic and pessimistic reports that Tuesday’s earnings are so important. Any good news from a company as big as Apple can act as a catalyst for the dull market; however, if the earnings are not up to the market, the stock markets can take a further spiral downwards.

Abhishek Budholiya

Abhishek Budholiya is a tech blogger, digital marketing pro, and has contributed to numerous tech magazines. Currently, as a technology and digital branding consultant, he offers his analysis on the tech market research landscape. His forte is analysing the commercial viability of a new breakthrough, a trait you can see in his writing. When he is not ruminating about the tech world, he can be found playing table tennis or hanging out with his friends.