Apple's third quarter results could hold the key to iPhone 12 launch date

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Apple's third quarter results could hold the key to iPhone 12 launch date
<div>Apple will announce its&nbsp;fiscal third-quarter results tomorrow and analysts believe that if it issues guidance for the&nbsp;fiscal fourth quarter, it could hold the clues to the <a href="https://www.phonearena.com/reviews/Apple-iPhone-12-Review_id4893" target="_blank" title="Apple iPhone 12 Review" class="previewtooltip" data-id="4893" data-type="review">iPhone 12</a> launch date, according to <a href="https://www.businessinsider.com/apple-q3-earnings-preview-analysts-look-to-iphone-12-launch-2020-7" target="_blank">Business Insider</a>.</div><div><br>Due to the impact of the COVID-19 pandemic, revenue is expected to fall by&nbsp;$2 billion in the third quarter. The company's sales were also affected in its <a href="https://www.phonearena.com/news/iPhone-revenue-under-expectations_id124292" target="_blank" title="Apple reports lower iPhone sales than expected for the fiscal second quarter" class="previewtooltip" data-id="124292" data-type="article">fiscal second-quarter</a> because of the outbreak and the wearables and services wing were the silver lining. The iPhone maker did not&nbsp;issue guidance for the fiscal third-quarter when it revealed&nbsp;second-quarter earnings because of the uncertainties posed by the coronavirus.</div><div><br>According to the estimates of Wall Street analysts, Apple will post&nbsp;revenue of&nbsp;$52.1 billion, nearly a 3 percent year-on-year decrease. Services are expected to remain a bright spot. Demand for some products might have gone up too because of&nbsp;remote work and learning.</div><div><br></div><h2>Tomorrow's call will be more about what's to come</h2><div><br>Overall, analysts are not too concerned about the&nbsp;third-quarter results and have branded it a&nbsp;"throwaway quarter."&nbsp;</div><div><br></div><div>Instead, tomorrow's results are more about the upcoming iPhone 12. Industry insiders have been looking forward to the first 5G iPhone for a long time and this is what makes this year so important. Although Apple is unlikely to confirm its first <a href="https://www.phonearena.com/5g" target="_blank">5G</a>-enabled smartphone during the earnings call, analysts are hoping to guess the <a href="https://www.phonearena.com/news/apple-iphone-12-pro-max-5g-watch-series-6-ipad-8-pre-order-shipment-date-leak_id126173" target="_blank" title="Possible iPhone 12/Pro 5G and Apple Watch Series 6 pre-order and shipment dates leak" class="previewtooltip" data-id="126173" data-type="article">launch date</a> based on whether the company issues&nbsp;guidance for the next quarter.&nbsp;</div><div><br>Since the past few months, we have been listening to varied reports about the <a href="https://www.phonearena.com/news/5g-iphone-12-line-september-8th-unveiling_id126161" target="_blank" title="Red hot rumor calls for September 8th unveiling of the 5G iPhone 12 models, AirPower, more" class="previewtooltip" data-id="126161" data-type="article">launch of the iPhone 12</a>, with some leaks <a href="https://www.phonearena.com/news/disappointing-battery-capacity-for-some-5g-iphone-12-models_id126100" target="_blank" title="Latest rumors for 5G Apple iPhone 12 series: November release, decline in battery capacities, more" class="previewtooltip" data-id="126100" data-type="article">hinting at a delay</a>. Some of the rumors had alleged that the coronavirus-related restrictions have disrupted the manufacturing process.</div><div><br>So, tomorrow, investors would want to find out if the handset is still on track and that the company is still making products.</div><div><br>If the Cupertino giant issues guidance that's low, it would be an indication that the iPhone 12 is getting delayed. On the other hand, if the guidance is seasonally higher when compared to the last few quarters, it would be a sign that the launch plans have not been disrupted because of the virus.</div><div><br></div><div>RBC Capital Markets' Muller said:</div><div><br></div><div></div><div><br></div><div>Per most estimates, the iPhone 12 announcement will take place between&nbsp;mid-to-late September and October. It remains to be seen if all the models will go on sale at the time.&nbsp;</div><div><br><h2>Is iPhone 12 the next big thing after the iPhone 6?</h2></div><div><br>Before the coronavirus struck, Apple was reportedly hoping that the iPhone 12 would start a <a href="https://www.phonearena.com/news/Apple-iPhone-12-Pro-sales-forecasts-2020_id120631" target="_blank" title="The iPhone 12 and 5G might lead to a huge sales super cycle for Apple" class="previewtooltip" data-id="120631" data-type="article">super cycle</a>. Although most analysts believe this could still happen, some have <a href="https://www.phonearena.com/news/no-super-cycle-for-redesigned-5g-iphone-says-analyst_id125819" target="_blank" title="Despite redesign and 5G, this analyst doesn't see a super-cycle starting for the Apple iPhone" class="previewtooltip" data-id="125819" data-type="article">cast their doubts</a>. So, Apple's expectations for the next quarter will also help analysts determine whether the company still has high hopes for its new lineup.&nbsp;</div><div><br>A&nbsp;<a href="https://www.phonearena.com/news/apple-about-to-enjoy-iphone-supercycle-with-release-of-5g-models_id122702" target="_blank" title="Analyst says 5G supercycle could lead to record breaking iPhone sales" class="previewtooltip" data-id="122702" data-type="article">5G supercycle</a> will also help the manufacturer offset any pandemic-fueled impact on other units. Overall, market watchers seem quite optimistic about the iPhone 12 and believe it will be the most important product cycle Apple has seen since the release of the iPhone 6 in 2014.</div><div><br></div><div>According to&nbsp;Wedbush Securities analyst Dan Ives:</div><div><br></div><div></div><div><br></div><div>Previously, the<a href="https://www.phonearena.com/news/Morgan-Stanley-iPhone-8-may-be-delayed-pushing-an-upgrade-super-cycle-to-2018_id96124" target="_blank" title="Morgan Stanley: iPhone 8 may be delayed, pushing an upgrade super cycle to 2018" class="previewtooltip" data-id="96124" data-type="article"> iPhone 8</a> and <a href="https://www.phonearena.com/news/Analyst-sees-no-supercycle-for-Apple-but-predicts-strong-iPhone-X-sales_id98392" target="_blank" title="Analyst sees no supercycle for Apple, but predicts strong iPhone X sales" class="previewtooltip" data-id="98392" data-type="article">iPhone X</a> were expected to replicate the success of the iPhone 6 but that didn't happen. The ground seems ripe for the iPhone 12 though. Apparently,&nbsp;350 million out of the current installed base of 925 million <a href="https://www.phonearena.com/news/Although-Apple-is-getting-back-on-its-feet-dont-expect-iPhone-12-before-November_id124583" target="_blank" title="Although Apple is said to be getting back on its feet, don’t expect the iPhone 12 before November" class="previewtooltip" data-id="124583" data-type="article">are up for an upgrade</a>, and this could surely help drive demand. Another thing that could work in Apple's favor is iPhone 12's price, <a href="https://www.phonearena.com/news/iPhone-12-H2-2020-sales-prediction_id126233" target="_blank" title="Apple iPhone 12 price will be key to sales growth in H2 2020: report" class="previewtooltip" data-id="126233" data-type="article">provided</a> it starts at $649, and not $749 <a href="https://www.phonearena.com/news/apple-iphone-12-5g-pricing-speculation-oled-display-missing-accesories_id125825" target="_blank" title="Apple's base iPhone 12 5G model might be pricier than you expected" class="previewtooltip" data-id="125825" data-type="article">as reported recently</a>.</div>

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