Apple results: What to look out for

Apple will reveal its quarterly results this evening with analysts expecting flat sales. Here is what to look out for.

New Apple CEO Tim Cook introduces the new iPhone
Tim Cook is likely to be grilled on the arrival of new products Credit: Photo: GETTY

iPhone sales

The iPhone is Apple's best-selling and most profitable product, but concerns over a slowdown in demand have sent shares in the company falling since last summer. Apple is expected to reveal that sales in the third quarter of its financial year - the three months to the end of June - were 27m, roughly flat on last year.

Analysts will also be looking out for any comments chief executive Tim Cook makes on diversifying the iPhone range in a move to kickstart growth, for example by introducing a cheaper model aimed at emerging markets or by experimenting with different screen sizes.

iPad sales

Three years after its introduction, the iPad continues to be Apple's fastest-growing product, although third-quarter sales are expected to only be slightly above the same period last year - which was boosted by the arrival of the iPad 3.

After three years of Spring launches, Apple moved to an Autumn upgrade cycle last year. In November, it introduced an updated fourth-generation model as well as a smaller iPad mini.

Revenue

After years of stunning revenue growth, investors have worried that Apple's sales are stalling.

The first and second quarters of its financial year saw turnover grow by 18pc and 11pc year-on-year respectively, but the company is expected to report flat sales this time round.

Chinese sales

China has been Apple's fastest growing region over the last year, and Mr Cook expects it to overtake the US. The country was the only region to report a rise in sales between the first and second quarter, but recent concerns over the country's slowing growth may have had an effect on Apple's performance.

Apple has come under pressure to introduce a budget version of the iPhone for more price-conscious Chinese consumers.

Mac sales

Although it represents a shrinking portion of Apple's business, its Mac range has held up much more steadily than the rest of the PC industry. However, with the increasing popularity of tablets eating away at the PC market, investors will wonder how long this can be sustained.

New products

Speculation is rampant that Apple will introduce an internet-connected "iWatch" in the next year, while the company is continually rumoured to be making further moves into television.

Although the company is notoriously tight-lipped about future products, Mr Cook recently hinted that wearable technology is an area of "intense interest" and he is sure to be grilled further on the matter this evening.