What you need to know
- Apple is due to hold its Q2 earnings call on Thursday.
- Analysts predict Apple's revenue will have fallen.
- Apple has already previously stated it will not meet previous guidance.
A Reuters report has revealed analysts expect Apple to report around a 6% loss in revenue for Q2.
While China, which accounts for roughly 15% of Apple's revenue, appears to be a rare bright spot, investors will be keen to get a picture of global demand when the Cupertino, California-headquartered company reports second-quarter results on Thursday.
The iPhone maker has shut retail stores in the United States and Europe following the COVID-19 outbreak, and China is the only major market where it has been able to reopen all shops.
According to the report, analysts expect Apple "to report a 6% drop in revenue and an 11% fall in net income in its fiscal second quarter." Linda Sui of Strategy Analytics expects iPhone shipments in 2020 to be down 2%, compared to "double-digit" declines at some Chinese firms.
Another analyst, Krish Sankar of Cowen said that Apple's Services segment "should remain resilient" thanks to work-from-home and global social distancing. Despite the fact that consumer demand "is expected to be muted" thanks to the global pandemic, Evercore's Amit Daryanani noted that "Apple is better positioned than most to experience a rapid recovery in a post COVID" world, noting that demand is expected to be "pushed out, not canceled." Apple's brand new iPhone is likely going to spur demand for Apple's iPhone moving through the rest of the year.
Apple is due to announces its Q2 2020 results at its earnings call on Thursday, April 30 at 2 pm ET.