Apple Q3 performance to outperform Q2 despite COVID19

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Apple is set to release its Q3 earnings on Thursday, July 30th, the first real test for the company to how it’s handled the COVD19 pandemic. The companies Q2 earnings shocked many analysts as it reported better than expected sales in hardware, and increased growth with its digital services. Whether the company will shock analysts again remains unknown.

Going into Q3, one analyst, desperately seeking attention is downplaying Apple’s strength. According to them, Apple will not recover from COVID19, and the iPhone 12 launch will not be a “supercycle” moment for Apple.

On the other hand, today respected investment bank Morgan Stanely weighed in on what it expects Apple will announce during its Q3 calls. According to the bank, Apple will do better in Q3 despite COVID19 thanks to better-than-expected hardware sales.

June quarter results likely to outperform consensus estimates on the back of better than expected hardware sell-in. We currently forecast June quarter revenue and EPS of $55.1B and $2.18, 7% and 8% above current consensus estimates, respectively, on the back of stronger than expected intra-quarter data points across nearly all Product segments. We currently forecast $24.1B and $4.9B of iPhone and iPad revenue, respectively, in the June quarter vs. consensus of $22.4B and $4.9B,” Katy L. Huberty, equity analyst at Morgan Stanley said.


The bank expects total revenue of $55.1 billion, $24.1 billion, and $4.9 billion from iPhone and iPad sales respectively. The current consensus is $22.4 billion and $4.9 billion. The bank says that Apple services such as Apple Music, Apple TV+, Apple Arcade, and others will bring I $13.4 billion in revenue, up 5% from what the bank expected in June.

Apple Terminal will be providing live coverage of Apple’s Q3 earnings results here on and Twitter @AppleTerminal.

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Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.