The methodology and data behind my estimates are available to Above Avalon members. (Become a member to access my full 5,400-word Apple 3Q18 earnings preview that is available here. To sign up, visit the membership page.)
Each quarter, I publish expectation meters ahead of Apple’s earnings release. Expectation meters turn single-point financial estimates into more useful ranges that aid in judging Apple’s quarterly performance.
In each expectation meter, the gray shaded area represents my expectation range. A result that falls within this range signifies that the product or variable being measured is performing as expected. A result in the green shaded area denotes strong performance and the possibility of me needing to increase my estimates going forward. Vice-versa, a result in the red shaded area has the opposite effect, potentially leading me to reduce my assumptions going forward.
I am publishing three expectations meters for Apple’s 3Q18:
- iPhone unit sales
- “Other Products” revenue
- 4Q18 revenue guidance
My 3Q18 iPhone sales expectation range is for Apple to report between 41M and 45M units. A result within this range would be viewed as expected. If Apple reports iPhone sales greater than 45M units, results would be described as strong. A sub-41M iPhone unit sales result would be considered weak and likely lead to a reassessment of my iPhone unit sales expectations going forward.