Apple’s 2H20 growth rates depend on a healthy macroeconomic recovery

New products, stimulus and remote work/learning purchases are currently boosting Apple’s sales, but a healthy macroeconomic recovery will probably have a big impact on Apple’s sales growth over the rest of 2020.

Eric Jhonsa for TheStreet’s Real Money:

macroeconomic recovery. Image: Apple CEO Tim Cook
Apple CEO Tim Cook
Apple topped depressed March quarter estimates, with iPhone revenue (though down 7% annually) beating consensus by about $900 million and Services revenue (up 17%) beating by about $500 million. The company declined to provide June quarter sales guidance, but did mention on its earnings call that it has seen an “across the board” improvement in demand during the second half of April following a “sharp decline” during much of March and early April.

It’s possible that remote work/learning purchases could remain strong for a while, given that many companies, schools and colleges appear set to reopen slowly in the coming months. Likewise, some of Apple’s services businesses, such as App Store transactions and Apple Music and iCloud storage subscriptions, should continue getting a boost from consumers spending more time at home than usual.

In the absence of ongoing stimulus boosts, a macro environment featuring high unemployment and major disruptions to industries such as travel, hospitality, auto and energy might not be a good one for discretionary tech and electronics spending — even if lower spending on things such as travel and dining/entertainment provides an indirect boost.

MacDailyNews Take: Of course, a healthy macroeconomic recovery is crucial for Apple, as it is for most people and most companies. A rising tide lifts all boats. Hopefully, the “V-shaped” recovery that President Trump said Apple CEO Tim Cook foresees will come to fruition!

Hopefully the race to a COVID-19 vaccine will be won as quickly as possible because waiting until the second half 2021 or even longer, until the first half 2022, seems untenable (although we’re sure we’ll all adjust as best we can; humans are quite adaptable when push comes to shove). Here’s to this century’s Jonas Salk!


  1. Donald J Trump is an intigral — maybe even an instigator — to the Coronavirus. Trump was told, on multiple occasions, to expect it. And now he’s denying it. And encouraging lethal solutions as a cure.

    And he’s also denying the next wave later in the year.

    How long would DJT Survive once he’s destroyed every thing

    1. Here we go again! There’s no need to invoke your Trump hatred into this article. You sound like a talking head for CNN. I know you think this is all so obvious that our President is to blame, but your smarty-pants analysis makes arguments that have already been debunked.

    2. There’s little regard for truth, facts and the cult followers are unknowing victims of ‘ Big Brother’ in the White House who spews : how great I am’ and hears and echo: yes, Masa. Souls infected. Lost lives are dismissed nonchalantly and in a callous
      manner. A sensible leader can do better than that.
      It’s jarring to hear: under the leadership, under instructions from…repeatedly by those around him
      not to do a reality check. I watched Warren Buffet: yesterday expressing his humility in admitting and listing things he doesn’t know despite being considered one of the greatest investors of all time.
      Maybe, DJT can learn a lesson. Is he capable???

  2. If Apple still sold a big monitor for a consumer-friendly price (like, way less than $4999), it would be selling like crazy right now. All these people who brought their work MacBook Pro home and are frustrated by the tiny screen.

    I’d bet a lot of people are getting the Air Display for Mac so they can use their home iMac as a big monitor for their work computer. (I got that app from the Mac App Store after getting stuck at home and can’t imagine going back to trying to work on the tiny laptop screen during this shutdown.)

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