Consensus is around $102.6 billion in revenue for the December quarter; however, some analysts think Apple's holiday quarter could do even better than that.
Morgan Stanley's Katy Huberty expects double digit year over year growth for all five of Apple's revenue segments.
Overall, our December quarter revenue of $108.2B is 5% above consensus (we are ahead of consensus in every segment but Services), while our EPS of $1.50 is 7% above consensus (Exhibit 1). We expect demand strength to continue and our FY21 revenue and EPS estimates are both 5% above consensus. Given positioning into the quarter is muted after the rotation out of high quality stocks over the past several months, we expect strong follow through post-earnings and are buyers into the print.
Huberty expects iPhone demand to remain strong this year and forecasts 220 million shipments. March quarter iPhone builds are already signalling a good year, coming in at 50 million, up 39% year over year. Additionally, Taiwanese supply chain partners are recording three consecutive months of accelerating year over year sales growth.
Apple closed at an all time high today of $139.07 (2.34T market cap) ahead of its earnings report on Wednesday, January 27. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.