
Apple Reports Second Quarter Results - thomasjudge
https://www.apple.com/newsroom/2020/04/apple-reports-second-quarter-results/
======
vasco
When people ask why the stock market isn't in the dumps when it feels like the
whole economy is stopped, this is why. Small business isn't on the S&P, and
out of the businesses in it, a large percentage of the market value is
concentrated on the tech giants who aren't getting nearly as affected by the
current crisis as everyone else. If they don't actually benefit from it. Still
super impressive results.

~~~
ogre_codes
Apple is doing... OK. They are still down 13% from their highs.

Boeing is trashed and announced layoffs.

GM is as well and are suspending their dividend, Ford isn't exactly happy
either, and plenty of other S&P giants.

Disney has taken a huge hit due to sports/ ESPN revenue, theme parks, and
cruise lines.

Small businesses aren't on the S&P 500, but unemployed people and small
businesses all buy from companies in the S&P 500.

Apple also happens to have a massive cash pillow to soften their fall. Nobody
else has reserves like Apple and a lot of companies have substantial debt.

The stock market hasn't quite priced in damage yet.

~~~
jaredklewis
> The stock market hasn't quite priced in damage yet.

Quite the claim. Anyone with confidence in this theory should take a short
position now and pick up their million bucks after the market “prices in the
damage.”

~~~
nscalf
That's assuming you can time it right. I've been holding puts for ~2 months,
and I went from very right to very wrong very quickly. I also fully anticipate
to be very right again as soon as the fed stops pumping trillions of dollars
into companies that were ill prepared for risk.

~~~
cheez
> I also fully anticipate to be very right again as soon as the fed stops
> pumping trillions of dollars into companies that were ill prepared for risk.

Be careful...

~~~
nscalf
I was mostly being sarcastic, but I think it's relevant to direct you to this
article (found in top 50 on HN). [https://thesoundingline.com/fed-slows-qe-
unlimited-to-just-8...](https://thesoundingline.com/fed-slows-qe-unlimited-to-
just-83-billion-a-week/).

I'm hesitant to say that they're going to stop buying, but there is at least
evidence of slowing.

~~~
cheez
I just said be careful, they can pump and release at will. You can't predict
when they will do it, it's better to wait for them to announce it and THEN
take action.

------
shakermakr
Surprised why so many people are surprised. Digital services and platforms are
booming in this current climate. We have no choice but to be consuming
content.

App downloads (30% thank you very much), Apple TV+ ($10 a month thank you very
much), Apple Music...the list goes on. That list, apart from TV+ specials, is
just revenue on the backs of other work. Others taking advantage of lockdown
to product more content. Which makes these companies more and more without
lifting a finger. And the Apple TV specials are short change. Just drive
growth.

Microsoft, Amazon, Netflix, remote tools like Mural and Zoom, all these
digital platforms offering consumer and business services are king right now.
Ad supported services are booming, the Facebooks, Googles, because we’re
consuming more ads.

It’s the cash cow of the 2010s and 2020s. Corona is only accelerating that.

~~~
vbezhenar
But ads are supposed to be paid back by customers buying real stuff. And if
they won't buy real stuff because of crisis, it just means that ads budgets
will be cut soon.

~~~
beisner
I wonder what fraction of consumption people who’ve been lost their income
during the crisis is. If 20% of the workforce is laid off, does that mean
consumption will go down 20%? Is the salary/spending power of the group who
were laid off representative of the entire workforce? Or does it skew in a
particular direction.

I ask because one explanation of the disconnect is that consumer spending in
general hasn’t actually dropped that much, it’s just moved away from in-person
small businesses.

~~~
tonyedgecombe
I know it's anecdotal but April was our lowest spending month for 20 years,
despite having plenty of cash on hand.

You can't spend much when most shops are closed and visiting the ones that are
open comes with quite a risk.

------
canada_dry
Hold onto your hats though when companies release results next quarter (in
early July).

Consumer spending is way down across the board (everything from appliances to
travel). Early indications are the stimulus checks are being saved or used to
pay off existing debt - not consuming/purchasing.

The ripple effect of this sudden drop will likely be unprecedented.

~~~
himinlomax
That's because it's not a stimulus cheque. It's an insurance payment. You
can't stimulate the economy while you're (for good reasons) shutting it down.
I don't know how it is in the US but here in France I can't even go buy an
appliance, or to the restaurant, or even get a fucking haircut.

~~~
SllX
Basically the same here with variations across different State and local
jurisdictions.

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user5994461
Bear in mind that the quarter is before the lockdown.

>>> Apple today announced financial results for its fiscal 2020 second quarter
ended March 28, 2020.

~~~
toasterlovin
China is one of Apple's largest markets, though, and they were dealing with
Coronavirus for the entire quarter.

~~~
yfzhou
Wuhan was basically shut down for the whole quarter, but the rest of China was
impacted for only a few weeks though.

The shutdown started on Jan. 23 and things were already reopening by mid-
February, and mostly back to normal in March.

[https://www.theverge.com/2020/2/13/21136648/apple-beijing-
st...](https://www.theverge.com/2020/2/13/21136648/apple-beijing-stores-
reopen-february-14th-limited-hours-coronavirus)

[https://www.theverge.com/2020/3/13/21177964/apple-stores-
chi...](https://www.theverge.com/2020/3/13/21177964/apple-stores-china-
reopened-coronavirus-covid-19)

~~~
toasterlovin
Easing lockdowns != resumption of normal economic activity.

------
Steve886
The top-line rose by 1%. International sales accounted for 62% of the
quarter’s revenue. Key highlights in four charts:
[https://news.alphastreet.com/apple-q2-2020-earnings-aapl-
sto...](https://news.alphastreet.com/apple-q2-2020-earnings-aapl-stock-charts-
highlights/)

~~~
kgwgk
> The top-line rose by 1%

0.5%, with services (+17%) and wearables/home/accessories (+23%) offsetting
the decline in iphones/ipads/macs.

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dzonga
does anyone have a good definition of services without bundling in fees paid
by google etc to be default search engine. one thing to note though, is
services is an excellent business $13bn qtr revenue, $4bn short of FB
quarterly revenue.

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Jonnston
I wonder what amazon’s report is going to look like. Only half an hour until
they release

~~~
aritraghosh007
They already did, lower earning but higher revenue. Also, AWS topped $10B/qtr
for the first time.
[https://s2.q4cdn.com/299287126/files/doc_financials/2020/Q1/...](https://s2.q4cdn.com/299287126/files/doc_financials/2020/Q1/Amazon-Q1-2020-Earnings-
Release.pdf)

------
BuyEarthAds
Apple's second-quarter revenue was $58 billion, down 5% from a year earlier;
net profit was $11.6 billion

