An Apple vs. Qualcomm Refresher, Apple Extends Qualcomm Supplier Agreement, The WSJ’s Apple Modem Hit Piece
Hello everyone. Today's update will be dedicated to discussing the latest developments in the ongoing feud between Apple and Qualcomm.
We begin with a refresher on how the two companies got to where they are today regarding their multi-year license and chipset supply agreement.
The discussion then turns to Neil’s thoughts on the WSJ’s strange article about Apple’s modem efforts.
Let's jump right in.
An Apple vs. Qualcomm Refresher
(The following snippet was from the November 17th, 2021 daily update. Check out the full update here.)
With the exception of the iPhone 11 line, Qualcomm has supplied modems for at least one flagship iPhone model each year going back to 2011. Before 2011, Apple relied on Infineon chips. (Intel later acquired Infineon’s baseband chip business.) The switch to Qualcomm from Infineon was due to Apple needing a CDMA network-equipped modem for iPhone.
In 2016, Apple shocked many by including Intel modems in iPhone 7 units that used non-CDMA networks (AT&T and T-Mobile). The move was a precursor to Apple suing Qualcomm in 2017, accusing the company of a variety of things. In a nutshell, Apple went after Qualcomm’s business model, not just a few patents, or recovering missing rebates. Apple had been in a weak position, dependent on Qualcomm for its chips with little to no recourse unless it was willing to risk its iPhone and iPad businesses. Intel gave Apple the leverage to go after Qualcomm.
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Amazon’s Product Event, Missing Amazon Buzz
The update goes over Neil’s thoughts on Amazon’s product event at HQ2 in Virginia.
Hello everyone.
Following Apple’s product event last week, Amazon and Microsoft held their respective fall product events this week. Today’s update will be focused on Amazon’s event. We will cover Microsoft’s event next week.
Let’s jump right in.
Amazon’s Product Event
Heading into Amazon’s event (video here), expectations were muted. Back in August, David Limp, who has been overseeing Amazon’s consumer gadget strategy for years, announced he was leaving the company.
Late last year, Amazon announced that it was refocusing its HW efforts as part of a broader expense reduction initiative that impacted the entire company. Said another way, CEO Andy Jassy was going to adjust Limp’s portfolio. It wasn’t likely that Amazon would announce products this week that would shock and awe.
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iPhone 15 and 15 Pro Pre-orders in China, Tim Cook’s Very Strong Interview With CBS News
We begin with a closer look at how iPhone 15 and 15 Pro pre-orders have been trending in China. The discussion then turns to Tim Cook’s interview with CBS News and why Neil thought the interview was so strong for Cook.
Happy Wednesday. Let’s jump right into today’s update.
iPhone 15 and 15 Pro Pre-orders in China
Two weeks ago, the rumor about China banning government workers from using iPhones spread like wildfire. This led to broader questions about how the new flagship iPhones would be received in China.
There is some follow-up to go over regarding the iPhone “ban” in China.
A spokesperson for the Chinese Foreign Ministry said there is no ban on government workers from using iPhones. Here is the full quote: “China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's. But recently we did notice a lot of media exposure of security incidents related to Apple's phones. The Chinese government attaches great importance to information and cyber security and treats both domestic and foreign companies as equals."
Presumably, the "security incidents related to Apple's phones" comment is referring to the Pegasus spyware issue. However, Apple addressed that with an iOS update. Even then, the statement doesn't match what was found in the various reports about this ban.
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iPhone 15 and 15 Pro Pre-orders Observations, Microsoft HW Chief Jumps Ship, Revisiting the Gadget Recession
We kick things off with Neil’s thoughts on iPhone 15 and 15 Pro pre-orders. The discussion then turns to Panos Panay leaving Microsoft to lead Amazon’s HW efforts.
Hello everyone.
One quick follow-up to yesterday’s update.
In terms of Apple Watch Ultra, one member wondered if the collection’s case size will be a limiting factor when it comes to unit sales mix. Would a majority of Apple Watch buyers go for a 49 mm case?
It is a fair question.
Over the years, one trend that we have seen is that Apple Watch case sizes have been getting larger (38 mm -> 49mm) while weight has been addressed by lighter materials. My wrist isn’t large, and the Ultra feels just as comfortable as any other Apple Watch. An even larger Apple Watch wouldn’t scare me away. Another option would be for Apple to bifurcate the Apple Watch Ultra into multiple case sizes.
iPhone 15 and 15 Pro Pre-orders Observations
This past Friday, Apple began accepting iPhone 15 and 15 Pro pre-orders. The devices go on sale on Friday. The following delivery estimates were compiled this morning. They are estimates for unlocked iPhone models. Apple has embraced an underpromise and overdeliver mantra when it comes to delivery estimates for online orders. The stated delivery dates may end up being pulled forward.
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Thoughts on Apple Product Pricing, My iPhone and Apple Watch Sales Mix Estimates, U.S. Carriers Improve iPhone Promotions
In today’s update, we go over a few topics related to the new Apple Watches and iPhones. The discussion begins with Neil’s thoughts on new Apple Watch and iPhone pricing. We then turn to Neil’s estimates for unit sales mix by Apple Watch and iPhone model. The update concludes with U.S. carriers improving their iPhone promotions.
Hello everyone. Welcome to a new week. Let’s jump right in.
Thoughts on Apple Product Pricing
At last week's product event, no major changes to Apple’s product pricing strategy were announced. There were more than a few rumors suggesting iPhone Pro pricing was going up against the board. That did not occur. Generally, Apple pricing rumors should be discounted as Apple is able to keep pricing information under wraps.
Here is entry-level pricing for each Apple Watch collection:
Apple Watch Series SE: $249 (GPS) – did not receive any updates last week
Apple Watch Series 9: $399 (GPS)
Apple Watch Ultra 2: $799 (GPS + Cellular)
We will talk more about my sales mix expectations by Apple Watch model shortly. For now, it is important to point out how Apple is sticking with
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Deconstructing Apple’s Product Event (iPhone Notes)
Hello everyone.
In today’s special Friday edition of the daily update, we will go over the iPhone portion of Apple’s product event.
In looking over my notes, there is a lot to unpack.
One member comment that is worth addressing had to do with Apple’s Mother Nature ad. Paraphrasing the member comment – how could the head of Apple’s sustainability effort say Apple’s goal was to permanently remove carbon from the atmosphere? My initial thought was that something got lost in translation between coming up with the script, storyboarding, and the final video. Apple knows it doesn't make sense to remove all carbon from the atmosphere. Instead, Apple's goal is to remove its carbon contributions. The exchange needed some clarity.
The broader point is that kind of criticism regarding the Mother Nature ad is fine while much of the other pushback that has materialized online looks unjustified.
Deconstructing Apple’s Product Event (iPhone Notes)
While the Apple Watch is a new user business, the iPhone is an upgrade business. A majority of iPhone sales are driven by customers who already own an iPhone. Along those lines, the iPhone upgrade cycle is once again stretching out. Prior to the pandemic, we saw some signs of the iPhone cycle shrinking. However, that trend has clearly reversed.
For Apple, this means that new iPhone releases target two groups:
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Deconstructing Apple’s Product Event (Apple Watch), About That Apple “Mother Nature” Video
Hello everyone. We will continue our discussion of Apple’s event with a focus on everything Apple Watch. The discussion then turns to Neil’s thoughts on what has become quite the controversial ad for Apple’s sustainability efforts.
As a reminder, there will be a special Friday edition of the daily update.
This past Tuesday, there was another successful virtual member meet-up. You can check out the discussion in the Above Avalon team in Slack (available here). If you want to add to the discussions, please do so. That is one of the key benefits found with a (written) member meet-up.
Deconstructing Apple’s Product Event (Apple Watch)
Overall / Marketing
The Apple Watch portion of Apple's presentation came across as strong. In what has become something of a trademark of Apple Watch updates, quality trumps quantity in terms of new features. The new features looked useful and add value to Apple Watch out of the gate.
The Apple Watch is still a “new user” business with a majority of sales going to people new to the product. Apple’s target market for Apple Watch Series 9 isn’t Series 8 or even Series 7 owners but rather iPhone users who don’t wear an Apple Watch. In terms of Watch marketing,
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Apple’s September 2023 Product Event, A Different Feeling, Not Taking Anything for Granted
Hello everyone. Today’s update will be dedicated to going over the major takeaway from Apple’s iPhone and Apple Watch event/presentation. This will set the stage for talking about the more granular items tomorrow.
Apple’s September 2023 Product Event
Most of the themes that have underpinned new iPhone and Apple Watch features were on display yesterday.
Apple’s unique definition of innovation. Instead of positioning new or different as the goal, a feature’s ability to improve one’s life defines Apple’s innovation strategy. While the quantity of new iPhone and Apple Watch HW items announced yesterday won’t jump out as noteworthy, the quality stood out as value-add features that have a good chance of being adopted by tens of millions of users relatively quickly.
iPhone line bifurcation (pro vs. non-pro models). By launching features exclusively on the iPhone Pro models and then eventually bringing those features to the rest of the iPhone line, Apple can both create
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China Reportedly Extends iPhone Ban for Government Officials, Why the China Story Isn't Adding Up, The Huawei Factor
Hello everyone.
Today’s update will be dedicated to discussing the latest developments regarding China reportedly requiring more government employees not to use iPhones for work. Given how this story is still developing, we will follow up when appropriate.
Before we get to that discussion, one quick item:
Virtual Member Meet-up. As with WWDC, there will be a virtual member meet-up following Apple’s presentation. Mark your calendars. Tuesday, September 12th at 5:30 pm ET / 2:30 pm PT. The meet-up will provide an opportunity for members to have conversations in real time about everything Apple announced. In addition to participating in the discussion myself, I moderate the discussion topics. The discussions are made available afterwards for other members to read through in Slack. Any updates/changes related to the virtual meet-up will be shared in Slack, so keep an eye on that space. The meet-up will take place in the #random Slack channel (available here). If you have never joined the Above Avalon team in Slack, you can request an invite here. If you have previously been in the Slack team, your email has already been registered and you can just log in again.
China Reportedly Extends iPhone Ban for Government Officials
In an article published yesterday, here’s Yoko Kubota for the WSJ:
“China ordered officials at central government agencies not to use Apple’s iPhones and other foreign-branded devices for work or bring them into the office, people familiar with the matter said.
In recent weeks, staff were given the instructions by their superiors in workplace chat groups or meetings, the people said. The directive is the latest step in Beijing’s campaign to cut reliance on foreign technology and enhance cybersecurity, and comes as China seeks to limit flows of sensitive information outside of China’s borders.
The move by Beijing could have a chilling effect for foreign brands in China, including Apple. Apple dominates the high-end smartphone market in the country and counts China as one of its biggest markets, relying on it for about 19% of its overall revenue.
It wasn’t clear how widely the orders were being distributed, but similar messages were communicated to employees at some central government regulators…
Beijing has for years restricted government officials at some agencies from using iPhones for work, but the order has now been widened, the people said. The latest order also signals an intensified effort by Beijing to ensure its rules are strictly enforced.”
This article raised more questions than answers for me.
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Spotify 2Q23 Earnings, Spotify’s Podcasting Disappointment, Revisiting Apple Podcasts
We kick things off with Neil’s thoughts on Spotify’s earnings. The discussion then turns to the WSJ’s deep dive into Spotify’s podcasting strategy. We go over three specific problems with the strategy. The update concludes by bringing Apple Podcasts into the mix and looking at the overall podcasting space.
Hello everyone.
One follow-up to yesterday’s update. In late 2022, Apple announced $450M was being spent on U.S. infrastructure to support Emergency SOS via satellite. A majority of the funding is earmarked for Globalstar. The reimbursements that Apple will provide Globalstar for 95% of capital expenditures related to updating its satellite constellation is part of that $450M commitment.
Spotify 2Q23 Earnings
Back at the end of July, Spotify reported 2Q23 earnings. With 3Q23 nearly two-thirds over, we will keep our focus broad. The more interesting topic is found with Spotify and podcasting, which we will discuss shortly.
Spotify’s earnings were similar to those of the past few quarters. User growth is exploding higher – thanks to a ramp up in marketing and promotions – while the company treads water financially.
The following slide did a good job of summing up Spotify’s current status.
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Globalstar Signs Launch Deal With SpaceX, SpaceX on Apple’s Radar?
Hello everyone. We kick things off with Neil’s thoughts on Globalstar, the satellite operator that Apple is relying on for Emergency SOS via satellite, signing a $64M launch deal with SpaceX. The discussion then turns to answering the question: Does SpaceX’s dominance push Apple to become more hands-on with satellites? Let's jump into today's update.
Globalstar Signs Launch Deal With SpaceX
The direct-to-device satellite communications space is heating up.
Last year, Apple unveiled Emergency SOS via satellite for iPhone 14 and 14 Pro. Apple partnered with satellite operator Globalstar for the feature. Earlier this year, the two companies signed a ~$250M funding deal that boils down to Apple funding Globalstar's efforts to update its dozens of low Earth orbit (LEO) satellites in exchange for making the constellation available to Apple. Meanwhile, SpaceX is working with T-Mobile on providing cell phone users satellite service. AT&T is working with AST SpaceMobile to boost its coverage. Qualcomm has turned to Iridium with Android devices in mind.
As for Globalstar updating its constellation, here's SpaceNews:
“Globalstar has contracted SpaceX to launch Apple-backed satellites in 2025 to replenish its low Earth orbit (LEO) connectivity constellation.
The operator said in an Aug. 30 regulatory filing it will pay a total $64 million to launch the first set of satellites ordered last year from MDA, which is using Rocket Lab to supply chassis for the spacecraft.
While the company did not give further details about the launch agreement, its $327 million contract with MDA covered 17 satellites for deliveries anticipated in 2025. The manufacturing contract also includes an option for up to nine additional satellites at $11.4 million each.
Apple has agreed to reimburse Globalstar for 95% of the constellation, including manufacturing and launch costs. The smartphone giant is also lending Globalstar $252 million to help cover upfront costs.
In return, Apple would use 85% of the new network’s capacity to upgrade satellite services launched last year for its latest iPhone, which can connect with one of Globalstar’s 24 existing satellites for emergency services when cell towers are out of reach.”
Even though Globalstar relied on SpaceX to launch a satellite in mid-2022, this new deal will raise the level of awkwardness between the two companies.
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Apple Considering Supplier Shift for Vision Pro Displays, Vision Pro and China, Thursday Q&A
We kick things off with some news on the Vision Pro supply chain front. While things can certainly change between now and the Vision Pro launch next year, we are getting a better view of what appears to be a challenge manufacturing Vision Pro at scale: OLEDoS (OLED on Silicon) displays. The discussion then goes over Neil’s thoughts on Vision Pro manufacturing and assembly in China. We conclude with the latest installment of Thursday Q&A in which Neil answers the following questions from Above Avalon members:
What’s motivating Apple’s deal strategy with live sports?
Do you agree that it has become increasingly challenging to estimate installed base totals for key Apple product categories? Will Apple change its approach? Is the lack of disclosure related to antitrust issues?
Did Apple change its commentary regarding installed base figures in the last earnings call?
Apple Considering Supplier Shift for Vision Pro Displays
“When Apple dealt with Chinese manufacturers in the past, it was to buy low-level components such as small metal parts, paper boxes and batteries. For advanced parts such as displays and chips, the iPhone maker turned to firms headquartered in the U.S., Japan, South Korea and Taiwan.
Times are changing.
Apple is currently testing advanced displays made by two Chinese suppliers for possible inclusion in future models of its Vision Pro mixed-reality headsets, said two people with direct knowledge of the matter. The two suppliers, BOE Technology and SeeYa Technology, are among a crop of Chinese companies that are making high-end technologies, spurred by government policies designed to reduce China’s reliance on foreign tech while also making its homegrown firms more competitive.”
The Information’s article suffers from what has unfortunately become a norm in the Apple news sphere: narrative-based writing. A piece of reporting is wrapped in an opinion-based narrative. In this case, the new reporting is BOE Technology and SeeYa Technology working with Apple on a possible future supplier arrangement with Vision Pro in mind. The story used to wrap the reporting in is that Apple is benefiting from Chinese policies put in place to hurt the U.S. It’s quite the stretch. We will talk more about China shortly.
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Amazon Reportedly Interested in ESPN Deal, Apple Vision Pro and Live Sports Consumption, Apple Changes Scorsese Film Release
We kick things off with Neil’s thoughts on Amazon talking with Disney about a potential ESPN deal. The update goes over Disney’s motivation with ESPN, where Big Tech becomes involved, and Apple’s connection. The discussion then turns to how live sports consumption can become a major use case for Apple Vision Pro. We go over two big questions about live sports as immersive experiences. We conclude with Apple changing the theatrical release plan for “Killers of the Flower Moon.”
Hello everyone. Happy Wednesday. Apple sent invites for its next product event. September 12th at Steve Jobs Theater. New iPhones and Apple Watches are expected.
Let’s jump into today’s update.
Amazon Reportedly Interested in ESPN Deal
“Amazon has had early talks with The Walt Disney Company about working on the streaming version of ESPN it is developing, said people familiar with the matter. The tech giant could offer the service through one of its streaming offerings, helping to expand its distribution, while possibly also taking a minority stake in ESPN.
Such an arrangement could shore up ESPN’s status as the biggest force in sports media, even as declining TV viewership and advertising, combined with rising sports programming costs, have squeezed the sports channel and Disney, its majority owner. It could also reposition the tech behemoth, which has been trying to make a dent in sports streaming, as more friend than foe to ESPN. And it could weaken the sports leagues’ bargaining power.
ESPN is considering charging between $20 and $35 a month for the new streaming service, said people familiar with the matter, a potential price range that could make it the most expensive streaming service in the U.S. and add pressure on already-stagnant growth in the streaming sector."
The Information went on to say “multiple current and former Disney and ESPN insiders” value ESPN at between $25B and $35B. My first reaction was to wonder if former executives are running with ultra conservative assumptions when coming up with that $25B figure. While we don’t have a whole lot to go off of from a Disney financials perspective, my math (discussed in the July 19th update) pegged ESPN as potentially being valued at anywhere from $40B to $100B depending on one’s assumptions about future performance.
While there seems to be a throw everything against the wall and see what happens complex going on with Disney and ESPN, the crux of the situation is somewhat straightforward.
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More on Apple’s Photo of Vision Pro in a Developer Lab, EyeSight’s Visual Cues, My EyeSight Theory
Happy Tuesday.
Given incoming questions about yesterday’s update, we are going to keep the discussion going. Some members wanted to know more about what was and wasn’t shown in the following image included in Apple’s article drawing attention to the Vision Pro developer labs. Let's jump right in.
More on Apple’s Photo of Vision Pro in a Developer Lab
Following the Vision Pro unveiling at WWDC, there have been quite a few questions regarding EyeSight. Positioned as one of the device’s marquee features, EyeSight is meant to lower the personal computing barrier found with wearing a computer in front of your eyes.
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Apple Gives Sneak Peek Inside Apple Vision Pro Labs, Vision Pro Apps vs. Apple Watch Apps
Welcome to a new week. Today’s update takes us to Vision Pro land. Apple is peeling back the cover of its Apple Vision Pro developer labs. We examine Apple’s motivation for hosting the labs. The discussion then turns to key differences between early Apple Watch app development and what we see unfold with Vision Pro app development. Let’s jump right in.
Apple Gives Sneak Peek Inside Apple Vision Pro Labs
“As CEO of Flexibits, the team behind successful apps like Fantastical and Cardhop, Michael Simmons has spent more than a decade minding every last facet of his team’s work. But when he brought Fantastical to the Apple Vision Pro labs in Cupertino this summer and experienced it for the first time on the device, he felt something he wasn’t expecting.
‘It was like seeing Fantastical for the first time,’ he says. ‘It felt like I was part of the app.'
That sentiment has been echoed by developers around the world. Since debuting in early August, the Apple Vision Pro labs have hosted developers and designers like Simmons in London, Munich, Shanghai, Singapore, Tokyo, and Cupertino. During the day-long lab appointment, people can test their apps, get hands-on experience, and work with Apple experts to get their questions answered. Developers can apply to attend if they have a visionOS app in active development or an existing iPadOS or iOS app they’d like to test on Apple Vision Pro.”
Included in Apple’s article is one of the first press photos, shown below, of someone wearing and presumably trying out Vision Pro. To date, ABC News has been the only news outlet allowed to film (video and picture) someone wearing Vision Pro. The Vision Pro mini-site on Apple’s webpage has a number of marketing clips/snippets of Vision Pro being worn.
Judging from the visuals shown on the headset’s outward-facing display, the wearer is fully immersed in an experience.
These developer labs have been flying under the radar this month.
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Peloton’s Ongoing Death Spiral, Sizing up the Digital Fitness Opportunity
Hello everyone. We are getting to the last few CY2Q23 earnings reports. Today’s focus: Peloton. After going over the key numbers from the quarter, we look at the broader market opportunity found with digital fitness. Let’s jump right in.
Peloton’s Ongoing Death Spiral
For the past two years, we have been closely following Peloton’s implosion. Early red flags appeared in the company’s Form S-1 filing (IPO). Jump ahead two years and growth metrics began to deteriorate when the company should have been seeing explosive growth figures.
The Peloton story eventually shifted from being a possible Apple Fitness+ competitor to offering another look into the still young digital fitness space.
Back in May, Peloton unveiled a branding pivot to focus on accessibility (to appeal to more users). New membership tiers for digital fitness classes were also announced. Both came across as not fully thought out. Peloton moved away from its premium workout branding while not moving away from premium product pricing. The result is cognitive dissonance. As for the membership tiers, they are too confusing, limiting, and expensive.
Accordingly, it doesn’t come as a surprise that Peloton’s FY4Q23 earnings had every membership-related line item show continued deterioration.
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Sonos FY3Q23 Earnings, Sonos Taking Speaker Share, Sonos vs. Apple
Happy Wednesday. For today’s update, we take a closer look at Sonos’ FY3Q23 earnings. The discussion then goes over Sonos taking market share in the speaker categories that the company competes in. We conclude with key differences/similarities between Sonos and Apple.
Let’s jump right in today’s update.
Sonos FY3Q23 Earnings
Sonos has had a very busy 2023. New speakers (Era 100 and 300), services (Sonos Pro), and partnerships (Apple Music spatial audio) have fulfilled the company’s promise of continuing to move the platform forward. However, Sonos is unable to escape the consumer electronics gadget recession. Sales promotions continue to be needed to maintain speaker sales trends.
The following exhibit shows Sonos speaker sales on a TTM (trailing twelve months) basis to remove the seasonality associated with the holidays. The sales decline is becoming more noticeable.
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Meta’s Ray-Ban Stories Sales Figures Leak, Ray-Ban Stories’ Retention Problem, Ray-Ban Stories vs. Vision Pro
Hello everyone. It’s good to be back. It looks like the news flow was relatively quiet. This will afford us time to catch up on a few items. For today’s update, we take a closer look at the WSJ’s reporting regarding Meta’s Ray-Ban Stories smart glasses. The discussion includes a broader overview of why the devices have such a poor retention problem with users.
Today’s email will focus on an update regarding the smart glasses space.
Meta’s Ray-Ban Stories Sales Figures Leak
In an article published on August 3rd, here’s the WSJ:
“The Ray-Ban smart glasses launched by Meta Platforms almost two years ago have struggled to catch on with owners, many of whom appear to be using the devices infrequently, according to internal company data.
Less than 10% of the Ray-Ban Stories purchased since the product’s launch in September 2021 are used actively by purchasers, according to a company document from February reviewed by The Wall Street Journal. Meta sold a total of 300,000 of the wearable devices through February, but the company only had about 27,000 monthly active users.
The device, an important part of Meta’s hardware strategy, allows users to take photos and listen to music with the frames of their glasses, among other features. It has experienced a 13% return rate, according to the document.
Among the top drivers of poor user experience were issues with connectivity, problems with some of the hardware features including battery life, inability for users to import media from the devices, issues with the audio on the product and problems with voice commands for the smart glasses, according to the document.”
Meta released Ray-Ban Stories in September 2021 as the world was still engulfed in the pandemic. Travel and work patterns were disrupted while leisure activities hadn’t returned to normal. After an initial burst of media exposure, the buzz surrounding Stories quickly evaporated. There was good reason to assume the product wasn’t selling well.
We now have what appears to be our answer. With a $299 starting price, Meta sold 300,000 pairs of Stories in 18 months or so. That isn’t good. We aren’t talking about a HW start-up trying to get in front of consumers.
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Apple Launches “Pay the Apple Way” Marketing Campaign, Apple and the Pac-12 Implosion
Hello everyone. For today’s update, we look at Apple’s new Apple Pay marketing push. The discussion then turns to craziness in the sports world as Apple finds itself at the center of the Pac-12 implosion.
Let’s jump right in.
Apple Launches “Pay the Apple Way” Marketing Campaign
“Apple is doubling down on its fintech ambitions with ‘Pay the Apple Way,’ spotlighting the no-hassle framework of its Pay feature via an expansive campaign that could help market additional payment tools from the company that were unveiled earlier this year. Among the new features is a high-yield savings account for Apple Card users, announced in April, which has since reached over $10 billion in deposits. Apple also began rolling out its buy now, pay later program in March.
‘Pay the Apple Way’ is meant to present a solution to the inconveniences of traditional money-dealing like carrying around a bulky wallet, struggling to find the right card and feeling concerned about privacy. Apple is flexing the ease of its Pay feature, which allows payments to be made directly from an Apple device, with a DOOH [digital out-of-home] experience that’s being billed as both dynamic and immersive, per release details. The ads will appear across prominent street and mall placements in London, Birmingham and Manchester in the UK along with Atlanta and Dallas in the U.S., touting straight-forward messages like ‘Your watch is your wallet’ and ‘Pay the secure way.’”
In addition to the physical marketing (examples shown below), Apple is also spending money on video advertisements and social media with Apple Pay campaigns on X and TikTok.
This marketing campaign comes as society returns to pre-pandemic behavior in terms of leisure, travel, and spending time out and about. The value found with mobile payments increases as people spend more time out of the home.
Apple Pay adoption among merchants has not been an issue outside the U.S. given the proliferation of contactless payments. In the U.S., after years of work to improve merchant adoption, digital payments like Apple Pay are on the verge of finally being described as widely accepted.
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Emergency SOS via Satellite Used During Hawaii Wildfires, Defining Apple Innovation, Apple Savings Hits $10 Billion in Deposits
Hello everyone. For today’s update, we will look at two stories that popped up on my radar over the weekend. The discussion begins with Emergency SOS via satellite. The service was used to save a family during the Hawaii wildfires. We look at the service in terms of Apple’s innovation definition. The update then turns to Apple flexing some Apple Pay PR muscle by disclosing the amount of Apple Savings deposits.
Emergency SOS via Satellite Used During Hawaii Wildfires
News out of Maui continues to worsen as the death toll from last week’s wildfires climbs. As stories of narrowing escapes emerge, one grabbed quite a bit of attention on X (formerly Twitter).
Michael Miraflor detailed how a family of five was trapped by the fires but was able to use an iPhone 14 model to get rescued. With cell phone service down, Emergency SOS via satellite was used. Emergency SOS via satellite is a relatively new service available on the iPhone 14 family. Apple is partnering with satellite operator Globalstar for the feature.
There are a few things worth pointing out from the exchange.
The longer messages detailing five people trapped in a white van may have been partially written based on the series of multiple choice questions that the caller is asked when dialing for help using Emergency SOS via satellite. The following tweet appears to show some answers to the question. (The messages were sent to the caller’s emergency contact in real time).
The questions are meant to get the most important and relevant information from the caller in as concise of a message as possible (to reduce the time it takes the message to send). Once messages reach ground stations, they are routed to emergency call centers that can receive text messages or relay centers set up by Apple where trained workers are in communication with emergency responders on the ground.
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