Apple Earnings Could Tell A COVID-19 Tale Of Consumer Spending

Apple Earnings Could Tell A COVID-19 Tale Of Consumer Spending

Getty Images





Getty Images





Key Takeaways:







Company guidance, estimates on iPhone 12 release date could set the tone

Analysts offering widely differing views on Q3 earnings expectations

Store closures affect not only sales but also service revenue





If investors judge the value of Apple (AAPL



AAPL

) on its stock movement alone, the Cupertino, California, juggernaut looks to be a clear winner, with shares having advanced over 65% since bottoming out in March.



But investors know a company with the size and market capitalization power of AAPL“”tapping an astonishing $1.6 trillion as of July 24“”has many arms that stretch in myriad ways through product upgrade and innovation to regulatory issues in the U.S. and abroad. That makes putting together a pre-earnings rundown for the consumer tech juggernaut a tough task.





It becomes even more difficult when considering the potential impact of a COVID-19 "second wave" that may or may not manifest itself in the fall. Many companies have pulled guidance altogether, while some have offered up "cautious“ or "qualified“ forecasts. AAPL, however, was among the first U.S. companies to warn of the potential impact of