Institutions Predict Apple May Deliver Another Strong Quarterly Report
JPMorgan's latest preview analysis of Apple's earnings shows that with the imbalance between iPhone supply and demand largely easing, Apple's upcoming quarterly results are expected to be strong again, but profit margins and cost pressures will be key factors influencing market sentiment. In this preview report seen by Apple-related media, JPMorgan points out that investors already have a clear expectation of the sales performance of the current generation of iPhones, and the focus is now shifting from revenue to profitability, especially changes on the cost side.
JPMorgan predicts that Apple's revenue for the fiscal quarter ending in March will be approximately $112.7 billion, higher than general market expectations, with the main increase coming from the sales performance of the iPhone 17 series. At the same time, the Mac product line is also expected to contribute to growth, benefiting from recent product updates and stable upgrade demand.
China's performance is one of the important reasons supporting these optimistic expectations. Data shows that Apple's iPhone sales in China increased by 20% year-on-year in the first quarter of 2026, a growth rate exceeding that of local competitors including Huawei and Xiaomi. Strong market demand for the iPhone 17 series, coupled with promotional activities and government subsidies, jointly drove sales growth. Despite continued fierce competition locally, the current sales cycle shows that Apple is regaining momentum in this key strategic market.
With demand relatively clear, investors' attention is shifting to profit margins. The report points out that memory prices are currently the main source of pressure, with rising NAND and DRAM costs increasing component spending and accounting for a larger proportion of the overall material cost of the iPhone. Analysts believe that Apple will rely more on its own economies of scale, supply agreements, and inventory strategies to hedge against related cost pressures. At the same time, continued optimization of other component costs and efficiency gains from vertical integration are also expected to offset some of the price increases.
JPMorgan expects that under the combined effect of these factors, Apple's overall gross margin is still expected to remain around the midpoint of the company's guidance range, even as the external cost environment is tightening significantly. For investors, a stable gross margin curve is more likely to soothe market sentiment than another "better-than-expected" revenue performance.
Pricing strategy is also seen as an important part of maintaining balance. JPMorgan expects Apple to make a moderate increase in iPhone prices, by about the mid-single-digit percentage, equivalent to an average increase of about $50 per unit. This move is intended to hedge against some cost pressures without significantly suppressing demand, especially in markets where price sensitivity remains high.
Regarding the guidance for the June quarter, analysts generally expect Apple to continue to signal continued growth. Revenue is expected to increase by approximately 10% to 12% year-on-year, while gross margin may decline slightly, in line with seasonal trends.
In addition to the results themselves, management changes are also a key focus of external attention. According to previous announcements, John Ternus is expected to officially take over as Apple's CEO later in 2026, while current CEO Tim Cook will transition to the role of Executive Chairman of the company. Analysts expect that management will provide some explanation of the impact of this power transition on the company's strategy during the upcoming earnings conference call. The market generally expects Apple to continue "continuity" rather than a major shift in strategic direction, but the execution performance of management during the succession period will be subject to closer scrutiny.
On the eve of the earnings release, the market's core question about Apple is no longer focused on "whether demand exists," but rather on whether the company can maintain profit margins and smoothly complete the management transition in the face of rising costs. In the eyes of outsiders, even if this is a strong quarter, what truly determines the attitude of the capital market may be the performance of the profit margin curve and the performance of the old and new leadership on the same stage.
Apple plans to release its quarterly financial results for the quarter ending March 31, 2026, on April 30, 2026, and hold its customary conference call later that day. At that time, the company will disclose detailed operating performance for the second fiscal quarter of this year, and the executive team will interpret and respond to business progress, strategic priorities, and analyst concerns.