Thanks to the COVID-19 pandemic, the second quarter’s market-wide – and Apple’s – earnings are expected to be rough, but how rough?
Whereas only the final month of the first quarter of 2020 was crimped by coronavirus lockdowns in the United States, the entire three-month stretch we just wrapped up has been mired by the pandemic.
The outbreak has proven particularly problematic for the United States tech industry, including big-name companies like HP and Apple. Lockdown measures in China late last year not only cut consumers’ access to consumer-tech goods like the Apple iPhone, getting technological components and goods out of China was also a struggle.
Things may not be as disastrous for the technology sector in the second quarter as the headlines would suggest, though. Challenges still abound to be sure, but there’s one decided bright spot to help offset broad weakness… A whole slew of people all over the world were forced to start working from home during Q2, but weren’t equipped to do so. They bought what personal computers they could from an industry that wasn’t quite ready for the surge. Indeed, it’s impressive that PC makers were able to supply the numbers they could at all, even if that swell in demand will be short-lived…
Don’t misread the message. Solid computer sales won’t translate into a heroic second calendar quarter for Apple. Mac sales account for less than one-tenth of the company’s revenue, and the COVID-19 overhang remains palpable. Still, every little bit helps when things are as tough as they are right now – even for Apple.
MacDailyNews Take: Apple will report fiscal Q320 earnings for the three months ending in June on Thursday July 30th after market close (we’ll have Apple’s results for you that day right around 4:30pm EDT / 1:3pm PDT, as usual). Apple analysts’ consensus currently expect $2 earnings per share on revenue of $51.5 billion.