Wedbush Securities Firm Expects Apple Q3 2023 to Report Higher iPhone Revenue

Apple is expected to release its upcoming fiscal third-quarter earnings report which is going to drop on August 3. Ahead of this, Wedbush, a security firm, calls that there would be a demand for more iPhones in China which could result in higher iPhone revenue for the reported quarter.

Apple Q3 2023 Earnings Report Expected to Happen Soon with iPhone Revenue Expected to Lead

According to the story by Phone Arena, the Wedbush security firm has positive expectations for the upcoming Q3 2023 earnings report by Apple. In just a few days, the security firm expects the company to report good iPhone revenue.

As seen on Apple Insider, Wedbush issued a report to its client describing their expectations to be including a "clear uptick in demand" for the iPhone when it comes to China. This could potentially allow the company to come up with better iPhone revenue for the third fiscal quarter despite the global smartphone market being "choppy."

This comes as China is regarded as the largest smartphone market in the whole world because of the calendar second quarter. A certain report said that the 10.4 million iPhone units that were sold in China happened through April until June.

It was noted that this number was just a million units less compared to the number of smartphones that were shipped out by two other massive companies, Oppo and Vivo. When it came to the end of Q2, the market share of Apple in China was at 16%, which was behind Vivo and Oppo, which owned 18%.

Apple iPhone Revenue Expected to Result in More for the Company as Services Demand Could Also Improve

Wedbush also announced that Apple has been able to pick up 3 points when it comes to China's market share for smartphones in the span of the last 12 months. It was noted that the security firm highlighted how the demand for the iPhone 14 remains strong despite being late part of the cycle.

A major reason for the expectations was due to the "overall upgrade activity" which happens despite being five weeks away of the upcoming iPhone 15 line to be revealed. It was noted that 25% of active iPhone users was mostly due to get an upgrade when it comes to helping the device continue when it came to seeing steady demand around the world.

It was also noted that Wedbush would say that through the addition of 100 million new iPhone units would be added to the number of active users over the span of 18 months. This would result in the demand growing for Services like Apple Music, App Store, and other Apple services.

This would include Apple News+, the Apple Card, Apple Care, Fitness, and iCloud as well as other services. It was noted that the Wedbush values the Services unit based on parts value at $1.3 billion to $1.4 billion. As noted on the Apple Investor Relations page, the FY 23 Q3 reports will happen on August 3 at 5PM ET.