MacRumors

Earlier this week we reported on a bug in Apple's macOS Image Capture app that adds empty data to photos when imported from iOS devices, potentially eating up gigabytes of disk storage needlessly. Today, we're hearing that the bug in macOS 10.14.6 and later is a lot more extensive than was initially believed.

NeoFinder developer Norbert Doerner, who originally discovered the bug, informed MacRumors that the same issue affects nearly all Mac apps that import photos from cameras and iOS devices, including Adobe Lightroom, Affinity Photo, PhaseOne Media Pro, and Apple's legacy iPhoto and Aperture apps.

The reason is said to be because the bug is located inside Apple's ImageCaptureCore framework, which is a part of macOS that all developers must use to connect to digital cameras. The only app that isn't affected is said to be Apple's Photos app, which uses other undocumented APIs to talk to iOS devices.

Essentially, the pervasive Mac bug causes HEIC files imported from iOS devices and converted to JPG to contain more than 1.5MB of empty data appended to the end of each file, increasing the file size and eating up storage. As an example, Doerner said he discovered more than 12,000 JPG files in his own photo library containing this extra unwanted data, resulting in over 20GB of wasted disk space.

Apple is apparently aware of the bug, but until a patch arrives, one short term workaround for future transfers is to prevent your iPhone or iPad from using the HEIF format when taking photos: To do so, launch the Settings app, select Camera -> Formats and check Most Compatible.

For users with large existing photo libraries, Doerner has suggested using a new beta version of the third-party utility Graphic Converter, which includes an option to remove the unwanted empty data from the JPEG files.

Alternatively, media asset management app NeoFinder is itself being updated on Monday to include a tool that can find and eliminate the unwanted data in JPG files. NeoFinder for Mac costs $39.99 and a free trial is available to download on the developers' website.

Downloads of iPad apps surged in the first quarter of this year, driven by an increase in use and adoption of the device amid widespread stay-at-home orders.

First-time downloads of iPad-specific apps surpassed 1.1 billion worldwide in Q1 2020, according to data compiled by Sensor Tower. It marks the first year-on-year growth since the fourth quarter of 2013 and a 40 percent increase from Q1 2019.

Based on the data, the vast majority of app installs in the first quarter were in the Games and Entertainment category, followed by education apps, which reached a record 105 million worldwide.

The previous best quarter for Education apps was Q1 2013 when they reached 91 million, indicating the impact of at-home schooling during the health crisis.

In addition, quarterly global consumer spending in ‌iPad‌ apps reportedly saw the largest year-on-year increase since Q4 2014 at 16 percent and crossed the $2 billion threshold for the first quarter ever. About 76 percent of that money, approximately $1.6 billion, was spent on games.

As for iPhone, app installs grew 24 percent year on year last quarter, compared to 40 percent growth on ‌iPad‌, partly owing to the ‌iPad‌'s increased suitability as a laptop stand-in at home, particularly for younger students, notes Sensor Tower.

Apple may be planning to introduce interest-free Apple Card payment plans for devices other than the iPhone, Apple CEO Tim Cook said during today's earnings call covering the second fiscal quarter of 2020.

In the Q&A portion of the call, Cook was asked about the potential for deferred payments or product bundles with the ‌Apple Card‌, and he had this to say:

As you know, we launched the payment plan earlier on Apple Card for iPhone. We're working on that for other products and you'll see something on that shortly.

Apple in December introduced a 24-month interest-free iPhone installment plan for ‌Apple Card‌ owners. The plan lets ‌Apple Card‌ users purchase a new iPhone with the ‌Apple Card‌ and pay for it over a 24-month period with zero interest, while also getting 3 percent Daily Cash back for the purchase.

Monthly iPhone payments are bundled into ‌Apple Card‌'s Monthly Installments, with each month's installment included in the minimum payment amount. Installments are not subject to interest unless there's an outstanding balance beyond the 24-month payment grace period.

Though Cook did not divulge much information, Apple could introduce similar payment plan options for other products such as iPads and Macs, which are particularly popular right now as people work and learn from their homes.

During the pandemic, Apple has also introduced an ‌Apple Card‌ Assistance Program that allows ‌Apple Card‌ holders to skip their March and April payments without incurring interest charges for that billing cycle.

During today's earnings call covering the second fiscal quarter of 2020, Apple CEO Tim Cook provided some insight on what we can expect from Apple in terms of new products during the global health crisis.

Cook said that Apple is continuing to operate, and that Apple employees are getting used to working from home. "In some areas of the company, some people may be even more productive," he said. "In some areas, not as productive. It's mixed depending on what the roles are."

Cook said that Apple employees have their heads down and are working as usual.

New products are our lifeblood. We're continuing to work. [...] As you can tell from what we did this quarter despite the environment, we have our head down and are working because we know our customers want the products that we've got. They're even more important in these times.

Cook was also asked about potential developments in health, and he said that it's an area that Apple was already working on, referencing features like ECG in the Apple Watch.

You can bet that we're looking at other areas. We were already doing this - we see it as an area of huge opportunity for the company and a way for us to help a lot of people. You will see us continue on that. I wouldn't say that the health door has opened wider, I would say that it was already opened fairly wide.

On the topic of Apple's supply chain and how well it's situated to launch traditional fall products, Cook said that people should focus on the fact that Apple's products are made everywhere rather than focusing just on the final assembly of the manufacturing process, which tends to get more attention.

We have to conclude that if you look at the shock to the supply chain that took place this quarter, for it to come back up this quickly really demonstrates that it's durable and resilient. I feel good about where we are. That said, we're always looking at tweaks, it's just not something we talk about.

Cook went on to say that Apple is going to "look to see" what can be learned from this situation and how that could be used to enact change after Apple gets "totally out of this."

Cook also commented on payment plans for iPhone on Apple Card, and said that Apple is "working on that for other products" and that we'll see something on that topic shortly.

As for current products, when asked if customers were favoring lower cost products, Cook said that he hasn't seen that. Apple has had strong customer response to the iPhone SE, its most affordable iPhone, but he said that those customers wanted a smaller form factor with the latest technology or are coming from Android as opposed to "buying down." Sales of the top-of-the-line iPad Pro have also been strong.

Rumors suggest that Apple has a number of products set to launch later in 2020, ranging from new MacBook Pro models and iMacs to four new iPhones this fall.

Apple in early April tapped its engineers and supplier companies to construct face shields for medical workers around the world, and Apple has now shipped a total of 7.5 million face shields.

Apple CEO Tim Cook announced the news during today's earnings call covering the second fiscal quarter of 2020. Apple is continuing to construct and ship one million face shields each week.

Cook also said that Apple's COVID-19 screening app has been downloaded more than two million times, and the web version of the site has been accessed by 3 million unique visitors. Apple's U.S. COVID-19 app was developed in partnership with the CDC, FEMA, and the White House Coronavirus Task Force.

In addition to constructing and shipping face masks, Apple has sourced and donated more than 20 million N95 masks to healthcare workers around the world, which are critical for those who are exposed to COVID-19 on a daily basis.

Apple has also donated millions of dollars to various causes dedicated to cutting down on the spread of COVID-19, and has developed an exposure notification API that public health authorities will be able to adopt to create apps that will help track coronavirus exposure.

Apple today announced financial results for the second fiscal quarter of 2020, which corresponds to the first calendar quarter of the year.

For the quarter, Apple posted revenue of $58.3 billion and net quarterly profit of $11.2 billion, or $2.55 per diluted share, compared to revenue of $58.0 billion and net quarterly profit of $11.6 billion, or $2.46 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 38.4 percent, compared to 37.6 percent in the year-ago quarter, with international sales accounting for 62 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.82 per share, up from $0.77. The dividend is payable on May 14 to shareholders of record as of May 11.

In addition to the increase in the dividend payment, Apple says it has authorized another $50 billion for share repurchases.

Apple in mid-February announced that it would not meet its previously announced financial guidance of $63–$67 billion in revenue for the March quarter due to the impact of the COVID-19 coronavirus, which at that time largely involved production and demand issues in China.

Apple did not issue revised guidance at the time, and the coronavirus epidemic of course quickly spread around the world, resulting in even more challenges for Apple as it closed its retail stores, told most of its employees to work from home, and experienced reduced consumer demand for many products amid economic uncertainty.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Tim Cook, Apple’s CEO. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”

Apple did not offer any guidance for the third quarter of fiscal 2020.

Apple will provide live streaming of its fiscal Q2 2020 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Apple earnings call recap ahead...

1:42 pm: Apple's stock price bounced briefly higher in after-hours trading following the earnings release, but has settled back to around its closing price for the regular session of the day.

1:57 pm: Apple has not provided revenue guidance for Q3 2020 amid the COVID-19 pandemic.

2:01 pm: Apple's earnings call should begin momentarily...

2:02 pm: Apple CEO Tim Cook and Apple CFO Luca Maestri participating in the call as usual.

2:04 pm: Tim: Good afternoon everyone. Thanks for joining us today. Hope you're staying safe and well. Apple today reports $58.3B revenue. Most challenging environment we've ever operated our business... we're proud to say Apple grew during the quarter.

2:04 pm: Tim: Apple is contending with COVID-19 since January. How we responded, what we've been inspired to do, tells a great story about Apple's durability. Also speaks to Apple's unmatched capacity to be creative, to always think long term, and forge ahead...

2:06 pm: Tim: Apple launched new products while sourcing masks and face shields for healthcare workers.

2:06 pm: Tim: Apple News reached 125M monthly active users. COVID-19 special coverage.

2:07 pm: Tim: We let customers skip Apple Card payments in March and April.

2:08 pm: Tim: Apple launched a COVID-19 symptom checking website and app. App has been installed ~2M times, website has had ~3M unique visitors.

2:09 pm: Tim: Apple has modified operations where appropriate, including retail stores. We're compensating retail employees normally despite store closures.

2:09 pm: Tim: While we felt some temporary supply constraints in February, production was back to usual by late March.

2:10 pm: Tim: Teachers are relying on our products/tech. We're deploying major orders of iPads in school districts around the world. Ontario, Canada; NYC; etc.

2:10 pm: Tim: Free 90-day trials for Final Cut Pro X and Logic Pro X.

2:11 pm: Tim: Medical professionals using Apple Watch to treat patients safely from a distance. ECG measurements for example.

2:12 pm: Tim: I don't think I can recall a quarter where I've been prouder of what we do/how we do it.

2:13 pm: Tim: We withdrew our Q2 2020 revenue guidance in February... during last three weeks of quarter, as virus spread globally and social distancing measures put in place worldwide, we saw downward pressure on demand. We will not be issuing guidance for the coming quarter.

2:15 pm: Tim: We can't say how many chapters are in this book for sure, but we can say the ending will be a good one.

2:15 pm: Tim: I hand things off to Luca.

2:16 pm: Luca: Revenue was $58.3B, up 1% YoY despite extreme circumstances of COVID-19 and FX headwinds.

2:16 pm: Luca: Installed base of active devices reached all-time high in all geographic segments.

2:17 pm: Luca: Services had strong 17% YoY growth. $13.3B revenue from services.

2:17 pm: Luca: 38.4% gross margin, flat sequentially.

2:17 pm: Luca: Products gross margin was 30.3%, decreasing 380 basis points sequentially due to loss of leverage and unfavorable mix. More pronounced drop due to COVID-19.

2:17 pm: Luca: 65.4% gross margin for services.

2:18 pm: Luca: Reported tax rate was 14.4% for quarter.

2:18 pm: Luca: Net income $11.2B. EPS of $2.55, up 4%.

2:18 pm: Luca: iPhone revenue of $29B, down 7% YoY. iPhone supply and demand were both affected by COVID-19 at some point during quarter.

2:19 pm: Luca: While we did see a slight elongation in our replacement cycle towards end of quarter, active installed base of iPhone reached all-time high.

2:20 pm: Luca: Well on our way of doubling our FY16 services revenue during FY20.

2:21 pm: Luca: Customer engagement in our ecosystem continues to grow strongly. Transacting and paid accounts reached new all-time high during March quarter. Paid accounts increased double-digits in all of Apple's geographic segments. >515M paid subscriptions. Up 125M YoY.

2:22 pm: Luca: Target of 600M paid subscriptions before end of calendar 2020.

2:22 pm: Luca: Apple Watch continues to extend its reach. Over 75% of customers purchasing Apple Watch around the world during the quarter were new to the product.

2:22 pm: Luca: Mac revenue was $5.4B. iPad revenue was $4.4B.

2:23 pm: Luca: Towards end of quarter, new iPad Pro launched. LiDAR Scanner for AR. Also a new MacBook Air with significantly improved performance at a lower price. We're very pleased with customer interest in both products.

2:24 pm: Luca: Enterprise markets have been working remotely... we've been helping transition our customers.

2:25 pm: Luca: Leading grocers around the world offer Apple Pay so customers can use contactless payments. As stores shift to become fulfillment centers for online orders, companies are leveraging apps.

2:26 pm: Luca: Our liquidity has not been an issue for us during this highly unusual financial market situation. Ended the quarter with $193B in cash + marketable securities. Net cash was $83B at end of quarter.

2:26 pm: Luca: Apple repurchased 64.7M AAPL shares during quarter.

2:27 pm: Luca: I'd like to provide color on June quarter. As Tim mentioned, given lack of visibility and certainty in near term, we will not be issuing guidance. Based on what we've seen in April and how we think things might play out, would like to provide insight on headwind/tailwinds.

2:27 pm: Luca: USD has appreciated recently against most currencies around the world. We expect this to impact our revenue by more than $1.5B on a YoY basis.

2:28 pm: Luca: iPhone and Wearables, we expect YoY revenue performance to worsen in June quarter relative to March quarter. ‌iPad‌ and Mac, we expect YoY revenue performance to improve.

2:30 pm: Luca: We are in the midst of developing our most exciting pipeline of products and services ever, while contributing over $350B to the US economy over five years.

2:30 pm: Luca: Our board has authorized $50B for share repurchases in addition to $40B remaining over current share repurchase plan. Board also authorized a 6% increase in quarterly dividend. 82 cent dividend payable on May 14, 2020 to shareholders of record as of May 11, 2020.

2:31 pm: Q&A session.

2:31 pm: Shannon Cross, Cross Research: Tim you talked about seeing some improvement in second half of April... can you talk more about that?

2:32 pm: Tim: If you look at China, we were having a really good January. Lockdowns started towards end of January. February we saw a steep decline in demand. We closed our stores in February. As lockdown completed in second half of February, we began to open stores on a staggered basis. From a demand point of view, we saw improvement in March over February. If you look where we are today, we've seen further improvement in April compared to March. That's China.

2:34 pm: Tim: If you look at the rest of the world, we were doing great in January. First 5 weeks of the quarter. We do believe that we were headed towards top end of our quarterly guidance. The next 5 weeks were spent reacting and getting supply chain back up in full force. The rest of world happened in March, shelter-in-place etc, last 3 weeks of quarter we saw sharp decline in demand. Early April started like the end of March, but in second half of April we've seen an uptick across the board. Not just related to a certain region or product.

2:34 pm: Tim: Part of it is due to our new products, part of it is due to stimulus programs taking effect in April, part of it is customers purchasing more devices to work from home...

2:35 pm: Cross: Luca, you talked about puts/takes in quarter, didn't really mention operating expenses. Can you talk about op. ex.?

2:36 pm: Luca: We manage the company for the long term. We know the core of the business is innovation/product and services development. We'll continue to invest in our pipeline. We're very excited about what we have in store. We're aware of the environment and we will manage tightly. We are making new investments in new services we launched recently. We purchased baseband business from Intel and we want to develop that.

2:37 pm: Wamsi Mohan, Bank of America: We are all appreciative of Apple's contribution during this pandemic. In past downturns, we've not really seen Apple pull back from investing, you've largely maintained new product introductions... but Apple can't do much in person right now, so how should we think about the cadence of new products in upcoming quarters?

2:38 pm: Tim: We're continuing to operate. We were able to launch and ship the new iPhone SE, the Magic Keyboard for ‌iPad Pro‌, and the new ‌MacBook Air‌. Business continues. New products are our lifeblood. We're continuing to work... everyone is getting used to work from home. In some areas of the company, people may be even more productive. In some areas, not as productive. It's mixed depending on what the roles are. As you can tell from what we did this quarter despite the environment, we have our head down and are working.

2:39 pm: Mohan: I know you're doing a lot with ‌Apple Card‌, financial programs...would you consider using the strength of your balance sheet to defer payments, or offering bundles?

2:39 pm: Tim: As you know, we launched the payment plan earlier on ‌Apple Card‌ for iPhone. We're working on that for other products and you'll see something on that shortly.

2:40 pm: Tim: The trade-in programs are also fairly wide across the board... act as something great for the environment and to get entry price down. In terms of deferred payments, nothing to announce today. But access to ‌Apple Card‌ gives us more access to freedom/flexibility in US.

2:40 pm: Katy Huberty, Morgan Stanley: Tim, where do you see structural changes on back of this health crisis? New revenue streams at Apple? Past comments on health, AR, more areas of inspiration and creativity?

2:41 pm: Tim: I think there are things just from a great reminder of how important our products are for remote work. Pretty clear to me that where things will get a lot closer to normal than they are today... people are finding they can learn remotely. That trend will accelerate some. Also true about working remotely in some areas/jobs. I think we have significant solutions/products for all of those groups.

2:42 pm: Tim: On the health area, I gave some examples in my opening comments about ECG being used on Apple Watch. You can bet we're looking at other areas. We were already doing that. We viewed that area as a huge opportunity for the company and a way to help a lot of people. You will see us continue on that. I wouldn't say that the health door opened wider, it was already opened fairly wide.

2:42 pm: Huberty: $50B share repurchase authorization, any context on the thought process landing on that number? Does current landscape change Apple's view on merger & acquisition opportunities?

2:44 pm: Luca: If you look at our actual results, you see how much we actually do in terms of share repurchases. $50B is in addition to over $40B still remaining in share repurchase program. Total over $90B. Run rate for past several years is very adequate. We will provide an additional update a year from now. Nothing really has changed there. Nothing has changed on our approach for M&A. Very active over past several years. We purchase companies on a fairly regular basis to fill gaps in our portfolio, for hardware, software, and services...

2:44 pm: Amit Daryanani, Evercore: How did channel inventory look in March quarter?

2:45 pm: Tim: If you look at iPhone channel inventory during Q2, reduction of it was more than reduction in previous year. Not unusual that we reduce in Q2. If you look back, generally speaking, in first half of calendar year, we reduce channel inventories. In second half of calendar year, we raise channel inventories, I believe that will happen again this year.

2:46 pm: Daryanani: How do you view Apple's manufacturing strategy? Do you feel comfortable that supply chain is well situated to launch traditional fall products?

2:47 pm: Tim: Our products are truly made everywhere. I would focus on that vs. one element of manufacturing process which tends to get more visibility, which is the final assembly. We have some final assembly in the United States, in China as well. I'd have to conclude that if you look at the shock to the supply chain this quarter, for it to come back up so quickly, really demonstrates that it's durable and resilient. I feel good about where we are. That said, we're always looking at tweaks, it's just not something we talk about. We view it as confidential and competitive information. We will look to see what we learned from this and what we could change after we get totally out of this.

2:50 pm: Question about services... Luca says AppleCare revenue will be impacted by Apple Stores being closed. Advertising is also a headwind, such as App Store Search Ads.

2:50 pm: Question: Have you seen any downticks in products? Lower storage, lower end products? Due to rising unemployment?

2:51 pm: Tim: I haven't seen what you're asking. I have seen a strong customer response to iPhone SE, which is our most affordable iPhone. Those customers appear to be coming from wanting a smaller form factor with the latest technology, or coming from Android. ...As opposed to "buying down."

2:52 pm: Tim: Response to our top-of-the-line new ‌iPad Pro‌ has also been strong, so not seeing what you're alluding to, at least not at this point.

2:54 pm: Question about store traffic... Tim says store traffic is back to where it was in February in China, but isn't back to pre-pandemic level.

2:55 pm: Tim: I think that people like to be out and about... they just know that now is not the time to do that.

2:56 pm: Tim says the new iPhone SE is faster than the fastest Android smartphones.

2:57 pm: Question about iPhone pricing... Tim says Apple has always been about delivering the best product at a good price. We had an SE for a while... great to bring it back, it was a beloved product. We want to give people the best deal that we can while making the best product.

2:58 pm: Question about commodity pricing... Tim says NAND pricing increased slightly in March quarter, while DRAM and displays and other commodities declined. For the June quarter, we would expect NAND and DRAM pricing to remain at historically low prices.

2:58 pm: The conference call has ended.

Intel today officially announced its lineup of 10th-generation "Comet Lake" desktop processors, which includes a number of chips that would be appropriate for the iMac. AnandTech details all 32 of the new processors in organized tables, but only a handful of the chips would make their way into the ‌iMac‌.

At the top of the list is the flagship Core i9-10900K that Intel calls the world's fastest gaming processor. The i9-10900K features 10 cores and a base frequency of 3.7 GHz, while Intel's Thermal Velocity Boost can push single-core speeds to 5.3 GHz. It's also the successor to the i9-9900K chip currently used in the highest-end ‌iMac‌ configurations, so it's likely the new chip will make its way into Apple's lineup.

The current ‌iMac‌ family, with the exception of the outdated low-end model, uses a combination of 8th- and 9th-generation "Coffee Lake" chips, all of which have natural replacements in the new Comet Lake generation.

Natural replacements for the 21.5-inch ‌iMac‌ lineup include the new Core i3-10100, Core i5-10500, and Core i7-10700, while the 27-inch iMacs would see the Core i5-10500, Core i5-10600, and Core i5-10600K, in addition to the high-end i9 option.

While these are reasonable guesses at what we might see in the next-generation ‌iMac‌, there's no guarantee that Apple will go with direct successor chips at each spot in the lineup. That's particularly true since rumors are pointing to a "substantial" refresh of the lineup with a potential redesign, including a rumored 23-inch model.

Timing for the ‌iMac‌ update remains uncertain, as the 23-inch model rumor claimed the new machine will be coming in the second half of the year, while reliable leaker "CoinX" cryptically said in March that both ‌iMac‌ and Mac mini updates would be coming "soon." The ‌Mac mini‌ update did come two weeks later, but we've yet to see anything official about new iMacs.

Intel says the new 10th-generation Comet Lake desktop chips will be available at retail and in desktop machines starting in May.

Apple has never sold a new iPhone with an OLED display for under $999, but with the iPhone 12 lineup expected to include a wider range of models, that could soon change.

iPhone 12 pricing could start at $649 this year, according to Jon Prosser of the YouTube channel Front Page Tech. Prosser says this information comes from his same source who accurately revealed the new iPhone SE's launch date.

The prices would be as follows:

• 5.4-inch iPhone 12: $649
• 6.1-inch iPhone 12: $749
• 6.1-inch iPhone 12 Pro: $999
• 6.7-inch iPhone 12 Pro Max: $1,099

All four models are expected to feature OLED displays and 5G support, as analyst Ming-Chi Kuo has previously claimed. The less expensive 5.4-inch and 6.1-inch models are said to have dual-lens rear cameras, while the more expensive 6.1-inch model and 6.7-inch models are expected to have triple-lens rear cameras with a LiDAR Scanner.

Even if these prices are merely educated guesses, it is reasonable to assume that Apple will finally offer an OLED-based iPhone for less than $999 this year. Given its smaller size and lower pricing, the 5.4-inch iPhone could easily become one of Apple's best selling iPhone models ever, especially during these uncertain times.

Apple is expected to unveil its iPhone 12 lineup in September, although at least one model might not become available to order until October or November.

Apple will report its financial results for the second quarter of its 2020 fiscal year at 1:30 p.m. Pacific Time today, providing a first look at how the company's sales have been affected by the global health crisis.

On February 17, Apple announced that it no longer expected to meet its March quarter revenue guidance due to COVID-19's impact on the iPhone supply chain and demand for its products in China. The virus has since become a global pandemic, with all Apple Stores outside of China and Korea remaining closed.

Apple's letter to shareholders at the time:

Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter…

Apple had forecasted revenue between $63 billion and $67 billion for the quarter, which ran December 29 through March 28. On average, analysts now expect that figure to be approximately $54.5 billion, down six percent from $58 billion in the year-ago quarter.

The second quarter encompassed the launch of new iPad Pro and MacBook Air models, which became available to order on March 18.

Apple CEO Tim Cook and Apple CFO Luca Maestri will review the financial results on a conference call at 2:00 p.m. Pacific Time, with a live stream on Apple's website. MacRumors will be providing detailed coverage of the remarks.

Global smartphone production could see a record fall of up to 16.5 percent in the second quarter of this year, according to the latest research by TrendForce.

Global production for 2Q20 is now estimated to register another YoY drop of 16.5% to 287 million units, the largest decline on record for a given quarter. TrendForce forecasts total yearly production volume of 1.24 billion units, an 11.3% decrease YoY.

Worldwide smartphone production for the first quarter reportedly fell by 10 percent year on year to around 280 million units, the lowest in five years, due to disruptions across the supply chain caused by the global health crisis.

Prior to the crisis, TrendForce had expected Apple to once again reach yearly production of 200 million units, owing to the release of the new iPhone SE, four new models in the fall, and the phasing out of the popular iPhone 6s series by the seasonal smartphone replacement cycle.

However, iPhone production fell by 8.7 percent year on year in the first quarter, reaching 37.9 million units, due to labor and material shortages following the post-Lunar New Year work resumption, which saw Apple ranked in third place in the global market.

Apple's recent launch of the low-priced iPhone SE is expected to see it stay relatively close to 1Q 2020 figures, reaching 36 million units. The higher price of Apple's next-generation flagship iPhones is said to be an ongoing concern, however, given that Apple's main smartphone sales are in Europe and the U.S., both of which are still grappling with the health crisis.

Apple is expected to offer four flagship iPhones in three different sizes later this year: A 5.4-inch ‌‌iPhone‌‌, a 6.7-inch ‌‌iPhone‌‌, and two 6.1-inch iPhones. One 6.1-inch model and the 6.7-inch model will be higher-end iPhones, while the other 6.1-inch ‌‌iPhone‌‌ and the 5.4-inch ‌‌iPhone‌‌ will be lower-end models and successors to the ‌iPhone 11‌. Apple is expected to launch the new models in the fall.