Apple-Will Strong Services Offset Weak iPhone Sales for AAPL's Q2 Earnings?

Core Viewpoint - Apple's upcoming second-quarter fiscal 2025 results are anticipated to show challenges in iPhone sales due to intense competition in China, particularly from local brands like Huawei and Xiaomi, while the Services segment is expected to continue its strong growth trajectory [1][2]. iPhone Sales - iPhone net sales for the fiscal second quarter are estimated at $46.45 billion, indicating a modest year-over-year growth of 1.1% [3]. - The delay in the launch of Apple Intelligence in key markets, including Mainland China, raises concerns about iPhone sales performance [1]. Services Segment - The Services segment is projected to achieve a low double-digit growth rate year-over-year, with net sales estimated at$ 26.76 billion, reflecting a 12.1% increase [2][3]. - The growth in Services is supported by a strong install base, with over 1 billion paid subscribers, which has more than doubled in the past four years [4][5]. Mac Sales - Mac net sales are expected to reach $7.79 billion, suggesting a year-over-year growth of 4.6% [9]. - The Mac segment has benefited from strong demand for the new M4 chip series, contributing to a 14.1% year-over-year shipment growth, with Apple holding an 8.7% market share [6][8]. iPad Sales - iPad sales are projected to increase to$ 5.92 billion, indicating a year-over-year growth of 6.5% [12]. - The introduction of the new iPad Air with the M3 chip is expected to drive sales, with previous iPad sales having increased by 15.2% year-over-year to $8.09 billion [11][12].