Markets hope for relief in Apple margins
AAPL•Investors are looking to Apple’s results for margin relief, with analysts forecasting revenue of about $113 billion and earnings per share of $2.00. Gross margins are seen at 47% to 48%, while investors will also seek guidance on iPhone 18 sales.
1. Apple results in focus
Nasdaq futures rose modestly in Asia after last week’s declines, as investors looked ahead to Apple’s results. Analysts forecast revenue of around $113 billion, up 11% from a year earlier, and earnings per share of $2.00. Gross margins are expected to be 47% to 48%, with rising equipment costs, particularly for chips and memory, a focus for investors. Investors will also seek guidance on iPhone 18 sales; pre-orders began in mid-October.
2. Technology and political risks
AMD results are due later in the week after its shares fell almost 11% on Friday, while Intel shares dropped 28% following a disappointing outlook. The US midterms could add uncertainty, as a Democratic win could bring more opposition to data centres and calls for AI controls. A fight over spending authority and the debt limit is also expected, with Treasury set to announce its quarterly refunding this week.
3. Oil and economic data
Oil prices were down almost 3% on the day, though Brent futures remained above $100 a barrel through April. Talks involving Iranian and Qatari mediators were continuing as tankers faced attacks in the Gulf, and reports said the US had told Middle Eastern allies to expect a renewed strike on Iran after the midterms. Monday’s scheduled data included German retail sales, EU PMIs, US ISM and construction spending.
