October 31, Caixin News (Editor Huang Junzhi) $Apple (AAPL.US)$ Will release the performance report for the fourth quarter of the 2024 fiscal year ending September after the US stock market on Thursday (early Friday Beijing time). Wall Street currently expects apple's performance for the quarter to be very strong.

Analysts predict that Apple's fourth-quarter revenue is expected to reach $94.36 billion, an increase of over 5% year-on-year, marking the largest quarterly increase in two years; adjusted earnings per share of $1.60; net income reaching $24.24 billion, an increase of over 5% year-on-year.

It is worth mentioning that this is the first time Apple has disclosed sales data since releasing the all-new iPhone 16 series in September. Analysts generally expect iPhone sales to grow by 3.8%, reversing the decline in the previous two quarters.

Currently, Wall Street analysts are most concerned about whether Apple's efforts in artificial intelligence will pay off and drive demand for the iPhone 16, or if consumers are still adopting a wait-and-see attitude.

However, it is important to note that Apple only released the first round of "Apple Intelligence" features this week, roughly six weeks after the launch of the iPhone 16. At the same time, Apple's core AI features are expected to be released on the iPhone early next year.

Therefore, although this quarter may help gauge the initial demand for "Apple Intelligence", the delayed launch means analysts may have to wait at least until the next quarter to better understand the impact of AI on iPhone sales.

Below are Wall Street's specific views on Apple's upcoming performance report:

• Bank of America: Ignore the noise of the iPhone 16.

In recent weeks, Wall Street has shown some conflicting views on the demand for iPhone 16. Bank of America stated that investors should 'ignore the noise of the iPhone 16 and look at the impact of Apple's AI.'

Bank of America analyst Wasmi Mohan stated in the latest report: 'In each cycle, all hardware/software functions are more or less static throughout the cycle. But we believe that this cycle will be different, more dynamic, with more substantial software updates, increasing value to users.'

He mentioned that as Apple's AI capabilities become more powerful, the demand for iPhones will rise in the coming months, and the company is expected to sell 80 million new iPhones in the upcoming holiday season.

Mohan is encouraged by the slightly higher average selling price of iPhones, as it indicates that the majority of consumers continue to be attracted to the more expensive Pro models.

Bank of America rates Apple as a 'buy' with a target price of $256.

• JPMorgan: Better Than Expected Performance, But Guidance Below Expectations

JPMorgan expects Apple to report strong performance in the fourth quarter, with revenue and profits possibly exceeding expectations, but the holiday season guidance is expected to fall short of expectations, disappointing investors.

Analyst Samik Chatterjee at goldman sachs stated in a report on Monday: "Sales of the iPhone 16 series started slower than the iPhone 15, although momentum has improved in recent weeks, but sales are still slightly lower than last year."

Like many analysts on Wall Street, Chatterjee is looking for evidence that artificial intelligence features will drive a surge in iPhone sales.

jpmorgan rates Apple as "shareholding" with a target price of $265.

• Wedbush: Apple's market cap will reach $4 trillion next year.

Renowned analyst Dan Ives from the American investment bank Wedbush is optimistic about Apple's performance. He believes that as consumers upgrade their phones to access "apple asia vets" features, the iPhone is on the edge of a super cycle.

In his latest report, he wrote: "We expect the iPhone to perform strongly in the September quarter, and we also expect Apple's guidance for the quarter ending in December to be relatively optimistic. Although there have been many bears 'shouting' there lately.

Ives stated that the pessimistic views on Apple have not taken into account the 1.5 billion iPhones worldwide that are 'waiting to be updated,' nor have they considered how Apple's growing services business helps profit from its massive user base, nor have they considered that Apple could become the 'gatekeeper' of artificial intelligence technology.

Wedbush rates Apple as "outperforming the large cap", with a target stock price of $300.

• Goldman Sachs: We see upside potential in consensus.

Goldman Sachs stated in a report that the bank believes "iPhone and service business's outstanding performance will drive revenue and eps growth."

Similar to other analysts, Goldman Sachs is focusing on the impact of ai and all software functionalities that Apple will release in the coming months.

The bank's analyst, Michael Ng, said:"Although 'Apple Intelligence' has not yet become a demand-driven factor, we are encouraged by the launch of 'Apple Intelligence' functionalities."

Editor/Somer