Apple is an afterthought in a story about how, despite more than $1 trillion in lost market value, the FAANG will benefit from the pandemic.
From “Big Tech Could Emerge From Coronavirus Crisis Stronger Than Ever” in Tuesday’s Business Times:
Even Apple, which once appeared to be among the American companies most at risk from the coronavirus because of its dependence on Chinese factories and consumers, appears to be on good footing. Many of Apple’s factories are nearly back to normal, people are spending more time and money on its digital services, and on Wednesday it even released new gadgets.
“The largest tech companies could emerge on the other side of this much stronger,” said Daniel Ives, managing director of equity research at Wedbush Securities…
Even Apple, a company with hundreds of closed stores around the world (except now in China), is increasingly looking as if it will emerge from the pandemic in good shape.
Terry Guo, the head of Foxconn, which assembles most of the world’s iPhones for Apple, told reporters on March 12 that Foxconn’s Chinese factories were resuming production ahead of schedule and were back to normal — well ahead of expectations that would happen by the end of March.
Apple has tried to move away from its heavy reliance on device sales and toward so-called services revenue, which includes app sales and subscriptions to its music and TV services.
For that business, having much of the public in the United States and Europe stay inside is almost certainly good news. Early data shows that people are spending more time watching TV. Apple has spent billions of dollars on original programming for its Apple TV Plus service, hoping to hook people enough to pay $5 a month for it.
More time and money spent on phones is also good news for Apple and Google because they take a cut of most app sales…
“After the financial crisis in 2008, Apple emerged even stronger,” said Mr. Ives from Wedbush. “There is no reason it and the other giants can’t do the same again.”
My take: A well-reported piece with snappy soundbites from Wall Street’s most quotable Apple analyst.