AAPL is reporting their Q3 Earnings on 10/20/2014 after the market close. Consensus estimates indicate that AAPL will earn $1.31 a share, an 11% increase (Year over Year). On the revenue side, analysts expect sales to rise to $39.8 billion, a 6% increase (Year over Year).


Focus Points

During Q3, Apple released the iPhone 6 and iPhone 6 Plus smartphones and immediately sold 10 million units in its first weekend. Management is extremely positive about the product launch, calling it the biggest and most successful launch ever due to its best first-month sales ever. However, there were supply concerns due to manufacturing issues, so it will be interesting if they had a negative impact on the quarter.


In conjunction with the new product releases, analysts will be focusing on the products’ impact on overall market share. The new, larger screen iPhones may be enticing new customers away from the Google smartphones.


Technical Picture

AAPL has been displaying relative strength throughout the market in correction and is forming a flat base. The stock is only 5% off its high, while the Nasdaq is currently more than 7% off its high. This is illustrated by its RS Line nears highs and a RS Rating of a 93 (out of a possible best 99).  


Best Returns,

The MarketSmith Team