Apple to report earnings with concerns about 'mixed' iPhone demand.

• The iPhone 16's sales are included in Apple's final fiscal year earnings report for the first time on Thursday.
• Apple's largest seasonal sales period of the year is its December quarter, and the company signals this to investors.
• Apple's "Wearables" sales have declined for four consecutive quarters, and investors will closely scrutinize this category.

Apple reports its fourth-quarter earnings after the market closes on Thursday, marking the end of its fiscal year and the first quarter with sales from the September launch of the iPhone 16.

Here's what to expect, according to LSEG consensus estimates:

• Earnings per share: $1.53
• Revenue: $94.46 billion

Apple's December quarter sales will indicate the current iPhone sales cycle and the potential for revenue growth due to the launch of Apple Intelligence.

Apple does not provide official guidance, but typically offers forecast data points during analyst calls, indicating whether the company anticipates sales growth and how some of its product lines may perform, particularly the iPhone, which continues to account for a significant portion of Apple's sales.

To obtain information about Apple's sales and guidance, investors rely on surveys and shipping dates found on the company's website.

Some analysts are pointing to signs so far as "mixed."

Erik Woodring, a Morgan Stanley analyst, stated in a note on Oct. 22 that although they have not received any information about iPhone build cuts in their checks, after monitoring iPhone 16 demand indicators for a month, they would describe iPhone demand as mixed.

Apple Intelligence is currently being rolled out in American English and will add support for German, Italian, Korean, Chinese, French, Japanese, and Spanish in the next year. Other analysts are monitoring when the sales of Apple Intelligence will increase.

"According to D.A. Davidson analyst Gil Luria, while iPhone sales will be a topic of discussion when AAPL reports, the data suggests that there is no reason to believe an upgrade cycle has begun. This is because Apple Intelligence features, the only reason to upgrade, have not been rolled out in a significant way yet."

The major U.S. carriers, including AT&T, Verizon, and T-Mobile, have appeared unenthusiastic about the latest Apple product upgrade cycle.

John Stankey, AT&T CEO, stated on an earnings call last week that they are still waiting for the software release and its impact on consumer interest.

Apple's most recent quarterly report showed that sales in greater China were one of the weakest parts, decreasing by 6% due to increased competition from Chinese rivals.

According to Citi analyst Malif Atik, although Apple has recently launched a new iPhone, the company is still under pressure from Huawei and the competition is not expected to lessen anytime soon.

In October, Counterpoint Research informed CNBC that sales of lower-priced iPhones were robust in China.

According to a Counterpoint representative, iPhone 16 series sales in China have increased by 20% compared to iPhone 15 series sales during its first three weeks of sales last year.

Apple's "wearables" category, comprising its Apple Watch and AirPods headphones, will be closely scrutinized by investors. The quarter witnessed the release of new models for both product lines, including larger screen Apple Watches and noise-canceling low-end AirPods.

The new products may halt the four-quarter decline in Apple's wearables sales on a year-over-year basis.

According to LSEG analysts, it is predicted that the annual revenue will grow by approximately 5.6% to reach $95 billion.

In August, Apple signaled that its services unit, which includes everything from Major League Soccer subscriptions to Google search deals and extended iPhone warranties, would increase by about 14% during the quarter, continuing its steady growth.

Apple announced in August that CFO Luca Maestri will step down on January 1 and be replaced by longtime lieutenant Kevan Parekh. However, Maestri will not be leaving Apple entirely and will continue to oversee some teams, including those responsible for IT, real estate, and security.

Daniel Newman, CEO of Futurum Group, believes that the rollout of Apple Intelligence could mark a turning point.