Analysts from FactSet estimate Apple will earn $10.19 a share versus $ 10.09 in same quarter a year ago. Bloomberg estimates Apple will earn $ 10.16 a share.
Apple investors will be paying close attention to the number of quarterly iPhone units Apple sells which remains their most profitable product for the company.
Historically, the second quarter is not the strongest quarter for the iPhone primarily because Apple releases their new iPhone upgrades later in the year and existing iPhone users typically wait until then before upgrading their iPhones.
Apple is expected to release the iPhone 6 in the fall of 2014.
The rumors about the new iPhone 6 include an anticipated larger screen of 4.7 and 5.5 inches, sapphire crystal screen, and a faster and more consistent A8 chip.
The 4.7 inch phone is expected to be released in September while the 5.5 inch won’t likely be available until the end of the year.
In January Apple began selling iPhones with China Mobile, the largest telephone communication company in the world with subscribers over 700 million.
China Mobile is still working to expand their 4G network.
Although China Mobile is expected to help Apple to sell more iPhones, the iPhone remains costly in China where telecommunication companies don’t offer generous subsidies with an attached contract as they do in the U.S. to help drive down the retail price.
Apple has been slow to spend their huge cash pile to become a dominant player in the lower cost smartphone market in China comp rival companies like Xiaomi Corp. or Huawei.
In September Apple’s “cheap” iPhone 5C cost $735 in China where there are approximately 1 billion mobile phone users.
IDC reports that around 40 percent of Chinese are using smartphones.
Apple has not released any new products this year and investors are waiting for more news about Apple’s plans with their iWatch and Apple T.V.
* Apple’s earning results will be posted on this site by tomorrow. Facebook is also posting their quarterly results on Wednesday.