Power On: The Economy Catches up to Apple

The transcript discusses Apple's vulnerability to economic factors like inflation and interest rates, and its expected flat third-quarter earnings compared to last year's growth. Analysts predict revenue around $82 billion, with significant contributions from iPhone sales and services. Despite impressive numbers, concerns about growth persist due to COVID-related shutdowns in China and the chip shortage. Apple plans to slow hiring and spending amid recession fears. However, the company has ambitious product plans for late 2022 and 2023, including new iPhones, Apple Watches, and a mixed reality headset.

What external economic factors are making Apple vulnerable?

• Rising inflation and interest rates

• Decreasing global demand

• Increasing competition from Android

• Technological advancements

How much revenue is Apple expected to generate from iPhone sales?

• $7 billion

• $39 billion

• $20 billion

• $8.8 billion

What is one of the reasons for Apple's expected revenue hit in the third quarter?

• Rising labor costs

• New product launches

• COVID-related shutdowns in China

• Increased marketing expenses

What action is Apple planning due to recession concerns?

• Slow hiring and spending

• Expand into new markets

• Increase production

• Launch new products early

Which new product is Apple planning to release by the end of 2022?

• A virtual assistant device

• A mixed reality headset

• A new gaming console

• A new line of smart TVs