Apple’s second-quarter fiscal report for 2024, scheduled to be disclosed on May 2nd, is expected to highlight the organization’s strengths in a dynamic personal computer market and the sustained expansion of its services division.
Apple Experienced A Higher Shipment
According to IDC, the personal computer industry recovered in the first quarter of 2024, representing a 1.5% increase from the previous year. Lenovo, HP, Dell Technologies, and Apple occupied the top four positions in terms of shipments, boasting market shares of 23%, 20.1%, 15.5%, and 8.1%, respectively.
Dell encountered a marginal contraction, whereas Lenovo and HP witnessed expansion. On the other hand, Apple possessed the most robust growth rate of 14.6%, partially attributed to the surge in demand for its updated MacBook Pro and iMac models.
Even with this expansion, fierce market competition is anticipated to decrease Apple’s Mac revenues by 15.9% annually during the second quarter of its fiscal year.
Apple’s Key Revenue Generator
The uptake of the App Store, Apple TV+, Apple Music, Apple Arcade, Apple News+, and Apple Card is anticipated to propel the growth of Apple’s Services division. As Services accounted for 19.3% of sales in the initial quarter of fiscal year 2024, it has emerged as an indispensable source of revenue for the organization.
Early in the year 2012, the aggregate count of paid subscribers for Apple’s Services portfolio surpassed one billion. This upward trend is presumed to have continued throughout the second quarter.
APPL Earnings Projection
The projected revenues for Services for the second quarter of fiscal year 2024 are valued at $23.07 billion, indicating a year-over-year growth of 10.3%. Nevertheless, it is anticipated that iPad and Wearables, Home, & Accessories will generate lower revenues.
iPad revenues are anticipated to decrease by 22.2% annually to $5.19 billion, whereas Wearables, Home & Accessories revenues will decrease by 5.4% to $8.29 billion.
Apple Stock (AAPL) Technical Analysis
In the daily chart of AAPL, the current price trades sideways, suggesting strong investor activity before forming an impulsive wave. As of now, the price has found support at the 165.79 level, from where a bullish recovery has come.
In the higher timeframe, there has been bearish pressure for four consecutive months, suggesting pressure on bulls. Moreover, the recent weekly outlook shows ongoing bearish pressure, which needs a valid recovery before anticipating bulls.
The highest activity level since January 2023 is at 172.88, which is above the current price, suggesting ongoing bearish pressure in the market. Moreover, the 14-day RSI shows neutral momentum by reaching the 50.00 level, while the MACD Histogram is bullish.
Based on AAPL’s daily outlook, a bullish continuation needs a valid breakout with a daily candle above the 178.60 resistance level before aiming for the 200.00 psychological line.
On the other hand, a continued selling pressure with a daily candle below the 165.79 support level could extend the loss towards the 143.85 level.
