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by JakeSc 5451 days ago
I saw that - the revenue projection for next quarter is $3.5b less than revenue for this quarter.

I don't understand this. Are there any rules for making accurate revenue projections?

2 comments

There is no rule that subsequent quarter revenue should be higher than the prior quarter. [For e.g. the holiday quarter is generally the highest revenue yielding one for consumer electronics companies]. That said, Apple generally sets the expectations way low. The street knows that. They figure out a higher number (based on the past) and make that their expectation and price the stock as such. The interesting thing though is that Apple has been beating that higher expectation as well.
I'm sure not going to buy an iPhone or iPad right now, given the heavily-rumored launch of the next-gen models in late Q3. That could be why they're sandbagging the revenue projections.
There's never a bad time to buy an Apple product since the resale value is so high.