Listen to What Tim Cook Says About China, Cramer Says
Apple reports earnings after the bell on Thursday.
Analysts polled by FactSet are expecting earnings of $2.04 and revenue of $52.13 billion for the quarter ending June 30.
"COVID-19 has made this one of the toughest quarters to form high-conviction expectations. But I believe financial results will be supported once again by services, as consumers continue to spend lavishly from home," said Daniel Martins, a financial researcher who writes about Apple. "The iPhone should be a story of pros and cons, with the April launch of the SE and earlier recovery in China helping to offset what should be a very weak North America market.”
The earnings come a day after the CEOs of four dominant tech firms--including Apple's Tim Cook--faced tough questions about their business practices and defended themselves against a wide range of antitrust charges and other claims by Congress.
Cook defended Apple against criticisms by lawmakers that it stifles competition through restrictive developer fees and terms. Members of the committee cited Apple internal documents suggesting that Eddy Cue, Apple's senior VP of software and services, rejected e-book apps from publisher Random House as leverage in forcing the bookseller to join its own e-book marketplace. Other documents showed Apple purportedly rejecting children's content screening apps in favor of pushing users to Apple's similar Screentime feature.
So, with the antitrust hearing in mind, what kind of risks does Apple face?
Jim Cramer tackled the question, which was asked by Martins, in a live show special focused on Apple's earnings.
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