If you pay attention to only one earnings report a season, chances are it's this one.
Both pros and armchair investors love to hear from Apple .
But this quarter's report may be a little trickier than usual. That's because what they say about one gadget probably matters a little more.
“This time around the trade will be all about phone sales," says top trader Jon Najarian, co-founder OptionMonster.com. In other words, phone sales are the metric that should move the needle.
Wall Street estimates Apple sold about 29 million iPhones, down from 35.1 million sold in the March quarter.
Najarian tells us he'll use 24 million is his proxy - allowing for some wiggle. “If sales come in about 24 million, I’m a buyer with both hands,” he says. "I'd then look for it to test $644."
"However, if sales slow to under 24 million iPhones of all types, then I'd be negative on AAPL, looking for it to trade to $550 again."
And even though Apple usually surprises to the upside, that second scenario remains very much in the cards this season.
For example, Tony Sacconaghi, analyst with Bernstein Research, sees a reasonable chance Apple will miss expectations, due to a lull in iPhone sales. And if that's the case, a sell-off is warranted because the iPhone accounts for nearly 50 percent for Apple's revenues.
Looking at the other gadgets, Wall Street expects sales of the new iPad to be 14 million to 15 million and Macs to be about 4 million. Apple is expected to report fiscal third-quarter earnings of $10.35 a share on revenue of $37.2 billion, according to Thomson Reuters I/B/E/S.
What do you think? We want to know!