The 2020 COVID-19 downturn may prove to be a positive for Apple, longtime analyst Gene Munster writes in a note to clients seen by AppleInsider.
William Gallagher for AppleInsider:
Munster advises that he expects Apple’s earnings to be down by 10% compared to the June quarter last year. Noting that Apple has not issued guidance, he says the results will prompt investor debate, but that the underlying figures are positive for Apple now — and especially for the future.
“[The] 2020 downturn may prove to be a positive for the company, given Apple’s financial strength, anchored by what we expect is $180B in cash,” he says, “which will be used to retain and acquire talent and technologies that will advance their agenda.”
That agenda includes pressing ahead with its planned products and Munster argues that the “powerful trends” Apple is following will run through the next decade. Specifically, he sees “5G driving both an upgrade cycle and trailing benefits from what the technology enables.”
He also expects to see “software services continuing to penetrate new industries,” and Apple TV+ “original content and streaming entertainment increasing share of media consumption.” Alongside these, Apple’s current health and wearables will become increasingly significant, and Apple Pay will continue to grow.
Much more in the full article here.
MacDailyNews Take: Munster also highlights many additional elements that bode for a bright future for Apple, following the COVID-19 downturn, including AR smartglasses, autonomous vehicles, digital health, working/learning from home, services, etc.