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Tim Cook

  • Apple will report its fiscal Q1 earnings on Thursday.
  • The company will likely report record quarterly revenue and healthy earnings per share.
  • But Wall Street is focused on second-quarter guidance, and in particular whether the long-awaited iPhone super cycle is still in the offing.

Apple will have a tough act to follow when it reports its earnings on Thursday, hours after a rare super blue blood moon graces the night sky.

Like eager stargazers awaiting the super moon, Apple shareholders are anxious to be dazzled by a long-anticipated “super cycle” of iPhone sales.

They may be disappointed.

In recent weeks, several Wall Street analysts have pointed to a drumbeat of worrisome reports about Apple’s component suppliers that suggest iPhone sales might slump in the first three months of the year.

Blood Moon“Recent datapoints on iPhone sales continue to point to weaker-than-expected demand for the new iPhone models,” Deutsche Bank analysts wrote in a January 29 note to clients.

Apple’s stock, which was trading near its 52-week high earlier this month, has come down about 6% over the past two weeks as the worries have mounted.

Apple is expected to post revenue growth of 11% in its recently ended fiscal Q1. But regardless of how strong of a quarter Apple puts in the bag during this past holiday sales season, Wall Street is focused squarely on Apple’s expectations for the coming year — in particular, whether the company’s new three-headed phone line-up compels a stampede of consumers to upgrade their phones and drives a sales bonanza.

Shoot the moon

iPhone X iPhone 8Many Apple watchers believed that the new iPhone design released last October, the iPhone X, would spur a large group of people holding onto older iPhones to upgrade this year, thus creating a “super cycle.”

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