Last March, analysts and tech bloggers dumped out arrogant contempt over Apple's latest product introduction. This year, those new offerings helped save Apple's Q2 earnings and are projected to bolster its June quarter performance despite the pandemic.
While Apple is not offering earnings guidance for its third fiscal quarter of 2020, company CFO Luca Maestri said he expects revenues from iPhone, wearables and certain services to suffer a sequential decline in the coming June quarter.
It did seem as if 2019 became Apple's Year of Services — not only did it launch so many new ones in splashy events, it also shunted major hardware announcements off into sidelined press releases. We'll have to see how Apple handles hardware in 2020, but this much is certain — Apple is not done with services.
While the coronavirus is still having a big impact on China iPhone production, and the smartphone market as a whole, Morgan Stanley sees the impacts as mostly timing problems for Apple, and are buyers, maintaining a $368 stock price target.
Apple CEO Tim Cook reported multiple all-time records for the company's services, from the App Store to Apple Pay. He said Apple is "thrilled" about Apple Card's success, and that Apple has plans for all its services.
Following the publication of its first fiscal quarter of 2020 results, encompassing the holiday quarter, Apple provided additional detail surrounding the particulars of the report during an hour-long conference call.