Many people in the United States have, despite its widespread availability throughout the spring and summer. Now, as we head into fall, coronavirus cases and deaths are increasing in the United States, and, apparently, Apple too.
The tech giant has already told employees it is delaying plans to return to the office until October at the earliest, mirroring the moves of 2020 when companies began to change their schedules in response to deteriorating conditions. Apple was one of the first big companies to warn of disruption from the coronavirus in February of last year, a full month before the World Health Organization declared the pandemic and governments around the world entire start to set up blockages.
On Tuesday, it could take another more public step when CEO Tim Cook will inevitably be asked questions about the pandemic by Wall Street analysts following the release of the company’s fiscal third quarter results. And more eyes than usual can be fixed on Cook as he speaks.
Apple’s fiscal third quarter, which falls in the spring months ending in June, is typically the last earnings release before the company announces its next line of iPhones. But around the same time last year, Cook & Co. warned investors that the iPhone would be delayed “a few weeks” after its typical September launch. There is good reason to believe that Apple could repeat its performance, given the combination of worsening cases of the coronavirus around the world and warnings from major chip buyers and makers that product shortages could end. ‘extend over a year or more.
“We still have a long way to go,” Pat Gelsinger, director of chipmaking giant Intel, told the Wall Street Journal last week.
Apple still expects to report $ 1 in earnings per share, according to analyst polls released by Yahoo. That would be a 50% jump from the same period a year ago, with nearly $ 73 billion in revenue.
But bigger questions remain about the coronavirus and the potential disruption it could cause.
Trace a path
While Apple’s short-term plans may change due to COVID-19, analysts say they are closely monitoring its latest iPads, Mac computers, and subscription efforts. For years, Apple’s fate has been linked to the iPhone, which typically accounts for about half of the company’s annual revenue. But in 2019, Apple started rolling out new subscription services, including its $ 5-per-month Apple TV Plus for movies and TV, the $ 5-per-month Apple Arcade for games, and the year-round. last, Apple Fitness Plus workout classes for $ 10 per month.
Each received positive reviews, topped by Apple TV Plus which won 35 Emmy nominations earlier this month, led by its breakout sports comedy Ted Lasso.
Apple’s subscriptions increased to nearly half of the company’s overall services business, adding to its already popular music and movie store business, App Store and iTunes. “We believe the trends in services may look more like a recurring revenue stream with less seasonal volatility in the years to come,” Cowen analysts wrote in a report to investors earlier this month.
The latest iPads and Mac computers are also getting positive feedback. CNET editor Scott Stein said Apple’s M1 chips are “a leap forward” and “dripping with power.” And consumers are buying so many devices that Apple has said it struggles to keep them in stock.
Apple said it doesn’t know how long it will struggle to meet demand, but it expects to be “limited to supply and not to demand” for the foreseeable future. Loup Ventures analyst Gene Munster said in a blog post that he expects Apple to catch up with demand by the fall, “which leads us to believe that the best days are yet to come for Mac and iPad ”.
In the meantime, the broader answers on the coronavirus are still unclear. The federal government continues to advocate for vaccines and a potentialIn the coming months. “The vaccine is free, safe and effective,” President Joe Biden said in June. Apple CEO Cook’s anxiety for the future may be that someone is still listening.