Apple’s Q3 2020 earnings report is scheduled for Thursday after the closing bell. Analysts polled by FactSet are expecting earnings per share of $2.04 and revenue of $52.13 billion for the quarter ending June 30th.
Here are a few key themes to watch when Apple reports.
1. 5G iPhone Timing: The company typically doesn’t discuss future product launches, but may drop hints on the state of iPhone production; and if it does give September guidance, investors may be able to extrapolate information from that.
2. Antitrust Issues: Apple may offer additional commentary surrounding the scrutiny and its view on the regulatory threats.
3. iPhone SE Results: Among the bright spots in Apple’s year so fara is the strong performance of the low-budget iPhone SE. On its last earnings call, Apple told investors that the new phone had a warm reception, and early demand signals appear strong.
Apple is targeting Android users in particular with the new phone, and if successful, would lure more people into Apple’s lucrative installed base of devices. According to RBC analyst Robert Muller, details and commentary “surrounding adoption of iPhone SE and typical customer profile,” as well as the impact of the iPhone SE on Apple’s hardware margins, will be one of the key focus points on Apple’s call with investors on Thursday.
4. Services Momentum: Apple management will likely comment on what trends they saw across the growing services lineup, which includes the App Store, Apple TV+, Apple News+, Apple Arcade, Apple Card and other offerings.
MacDailyNews Take: If Apple does unexpectedly provide guidance for fiscal Q4 2020, the analysts’ consensus is $62 billion, a 3.2% year-over-year quarterly decline.
MacDailyNews Note: Apple will report fiscal Q3 2020 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). We’ll also be covering Apple’s conference call with analysts with live notes starting at 5pm on Thursday.