What to Expect From Apple's Third-Quarter Earnings Report

The transcript discusses Apple's product cycle, market challenges, and competitive pressures, particularly in China. It highlights the impact of the iPhone SE on Apple's pricing strategy and market positioning. The discussion also covers the popularity of Pokémon Go and its effect on Apple's app sales. Expectations for the iPhone 7 and future products like the Apple Watch 2 and a potential Apple car are also explored, along with regulatory issues in China.

What is one of the main reasons for the lower sales in the third quarter of last year?

• Higher production costs

• Introduction of a new iPhone model

• Increased competition in the US

• Product cycle timing

How has the iPhone SE affected Apple's pricing strategy?

• It has had no impact on pricing

• It has decreased the average sales price

• It has led to higher sales in Europe

• It has increased the average sales price

What is a significant challenge Apple faces in the Chinese market?

• Limited distribution channels

• Lack of brand recognition

• High import taxes

• Strong local competition

What unexpected success has benefited Apple recently?

• A successful marketing campaign

• A new partnership with a tech company

• A popular app, Pokémon Go

• A new iPhone model

What feature is expected in the next Apple Watch model?

• Lower price

• New design

• Direct cellular connectivity

• Improved battery life