Apple should deliver another of its trademark mic drops in the September quarter, led by the iPhone and Mac.

One area of concern is the services segment, as the end of the pandemic tailwinds and a strong dollar should push growth to historic lows.

I maintain my long-term stance that AAPL is a great stock to have in the portfolio, especially if bought 18% below all-time highs.

Tech earnings week is finally here, and Apple's (NASDAQ:AAPL) highly anticipated fiscal Q4 report will be released on October 27, after the closing bell. On average, analysts expect revenue growth to reach a timid 7%, but on top of last year's impressive 29% increase in the comparable period. EPS of $1.27 would be barely an improvement YOY — but again, against very tough comps.

I believe that Apple will report another of its trademark mic drops in the September quarter. When many fear for deceleration in economic activity and an eventual softening in consumer discretionary spending, worries that I believe to be very well justified, CEO Tim Cook and company will likely prove that Apple can still sustain strong demand with a compelling product portfolio and the power of its brand.

iPhone and Mac will carry Apple's Q4...

It should not be a surprise that Apple's fiscal Q4 results will depend largely on the iPhone. While the handheld devices were once thought by some experts to be in their mature-to-declining life cycle, COVID-19 at least (and maybe other factors, including the 5G transition) helped to breathe life into the product category. The iPhone accounted for 52% of Apple's revenues in fiscal 2021, and the number should climb to 54% this year.

Research company Canalyshas already previewed the story in the smartphone space in calendar Q3 (see chart below): "harsh business conditions" caused by "the gloomy economic outlook" and lingering supply chain constraints have resulted in a decline of nearly 10% in device shipments globally, which could have been worse if not for aggressive discounting. But Apple seems very much immune to these challenges. Canalys estimates that iPhone shipments increased in calendar Q3 instead, to the tune of almost 10%.