Can Apple sustain its record first quarter sales?

Tech giant has promised new products this year

Apple’s iPhone 5C: the tech giant sold 51 million iPhones in the first quarter of 2014. Photograph: George Frey/Reuters

Apple will post its second quarter results after the market close this Wednesday, and investors will be all ears to see if the tech giant can sustain the momentum it had in Q1, when iPhone and iPad sales were at record highs.

The release is also expected to provide a look at Apple’s performance in the Chinese market as a result of the China mobile deal announced at the end of last year. Apple’s first-quarter earnings surpassed both analyst and the firm’s own expectations, with revenue of $57.6 billion (€41.6 billion) and net profit of $13.1 billion. The company had earnings per share of $14.50 and a gross margin of 37.9 per cent. At the time, Apple announced it had sold 51 million iPhones, 26 million iPads and 4.8 million Macs, saying the iPhone and iPad sales were all-time highs.

In January, Apple guided expected revenue of $42-44 billion and gross margin between 37 and 38 per cent for this quarter. This lacklustre guidance by the tech firm’s senior management points to flat to low-single-digit revenue growth on a year-over- year basis.

It will be interesting to see if the company makes any announcements on new products or wearable technology. The first few months of the 2014 financial year haven't been particularly full of new products, with the company instead focussing on revising its existing line-up. This is despite Apple chief executive Tim Cook promising new stuff from Apple in "both current product categories and new ones" across 2014.