EU Fines Apple $2B for Not Giving Spotify a Free Pass, The European Commission’s Missing Logic, Apple’s Response
Hello everyone. Today’s update will be focused on the European Commission fining Apple $2B for its App Store anti-steering provision. There’s quite a bit to discuss. Let’s jump right in.
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Apple Adds Dozens of Licensed Movies to Apple TV+, More Signs of Apple TV+ Momentum, Apple Video Revenue Drivers
Hello everyone. Happy Monday. It's already turning into a busy week for Apple. Today's update will be focused on several Apple TV+ developments and Apple’s broader video play.
Let’s jump right in.
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Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.
Wall Street’s Muted Reaction to Project Titan, Where Does CarPlay Stand?, Apple’s Growth Prospects
Hello everyone. Happy Leap Day.
There are a few follow-ups to yesterday’s Project Titan discussion. We will begin with Wall Street’s reaction to Apple halting Project Titan. Our attention will then turn to Apple CarPlay and Apple’s remaining growth prospects.
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Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
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An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.
Apple Halts Project Titan, A Warning Sign for EVs, Apple and Moonshots
Hello everyone.
Over the past 10 years, Above Avalon has followed nearly every Project Titan twist and turn. It would not surprise me to learn that Above Avalon was responsible for more words written about Project Titan than any other publication.
Today’s update will be dedicated to news of Apple halting Project Titan.
Let’s jump right in.
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Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.
Samsung “Unveils” Galaxy Ring at MWC, Dispelling the Apple Ring Rumor, My Skepticism Regarding an Apple Smart Ring
Multiple outlets are reporting Apple will be winding down Project Titan. There is plenty to talk about. We will cover it all tomorrow. For today’s update, we will focus on another rumored product that likely won’t see a release anytime soon: an Apple smart ring.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.
Walmart Buys Vizio, Walmart vs. Amazon, Revisiting the Roku Story
We go over my thoughts on Walmart buying Vizio. The discussion includes a closer look at the Walmart vs. Amazon competitive battle. We also revisit Roku’s strategy and the massive holes in the company’s story.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Apple Announces First Immersive Video for Sports, Vision Pro and Apple Immersive Video, Why Is Apple Sports iPhone-Only?
Happy Thursday. In today’s update, our discussion will begin with the new Apple Immersive Video format found on Apple Vision Pro. There is then one follow-up regarding the new Apple Sports app.
One quick item: I have been using Apple Vision Pro for roughly a week. Zeiss Optical Inserts arrived just a few days ago. My plan is to use the device for some time, naturally see where it fits into my live, before publishing something along the lines of in-depth review or report. In more than a few ways, the initial round of reviews came across as rushed. When we talk about Apple Vision Pro in this update, my perspective is based on actually using the device for some time, and not just the two pre-launch demos.
Let's jump right in.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Apple Launches Apple Sports App, Apple Sports vs. Competing Apps, Apple Sports and The Big Picture
Hello everyone. It feels good to get back in the swing of things after a little time off. We will dedicate today’s update to discussing a new app that Apple just launched: Sports.
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Microsoft Earnings, Peloton Earnings
In today’s update, we will wrap up our Big Tech earnings reviews with Microsoft. We will then conclude the discussion with a look at Peloton earnings.
To set the scene, Microsoft and Peloton are in some ways complete opposites. Microsoft has been reporting some of the cleanest, all-around solid earnings releases in Big Tech. Peloton is in the most precarious of positions in terms of companies that we check in on from time to time. It’s been six months since we looked at Peloton’s earnings.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Alphabet Earnings, Amazon Earnings
Monday’s update concluded with the following:
“Meta has reported more than $38B of operating losses on its AR/VR efforts. The company needs products like Quest 3 and Ray-Ban Meta to do well and generate revenue to reduce pressure on what are mounting losses.”
There is more to say about the mounting losses in Meta’s Reality Labs and why I think generating some revenue is important. We will focus on that topic today. Our Big Tech earnings reviews will continue tomorrow.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Thoughts on How Zuckerberg Can Monetize Meta Reality Labs
Monday’s update concluded with the following:
“Meta has reported more than $38B of operating losses on its AR/VR efforts. The company needs products like Quest 3 and Ray-Ban Meta to do well and generate revenue to reduce pressure on what are mounting losses.”
There is more to say about the mounting losses in Meta’s Reality Labs and why I think generating some revenue is important. We will focus on that topic today. Our Big Tech earnings reviews will continue tomorrow.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Meta 4Q23 Earnings, Estimating Meta Quest 3 Sales, Ray-Ban Meta and AI
There are several Big Tech earnings reports for CY4Q23 worth going over. For those of you who recently became Above Avalon members, my approach to covering Big Tech earnings is twofold:
Assess how Apple competitors are doing from a financial/business perspective. This will involve looking at revenue growth metrics, cash flow generation, etc. Given major differences in business models, the metrics will need to be put into proper prospective.
Look for developments that shine light on competitive dynamics that stand to impact Apple. This may include everything from advertising to hardware.
Today’s update will be dedicated to Meta, a company that is turning into one of Apple’s most direct competitors.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Disney FY1Q24 Earnings, Disney Buys Minority Stake in Epic Games, Disney, Warner Bros. Discovery, and Fox Announce New Sports App
Today's update will have a Disney focus with the company announcing earnings and two new business initiatives.
Heading into earnings earlier this week, Disney CEO Bob Iger and the board were facing some of the strongest pressure to date from activist shareholders looking to get Disney board seats – and eventually kick Iger out. The pressure served as the backdrop for what was a news-packed earnings release from Disney.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Apple 1Q24 10-Q Takeaways, Apple Balance Sheet Observations
Today’s update will wrap up Neil’s 1Q24 earnings preview. We will examine Apple’s 1Q24 10-Q filing and the latest balance sheet trends. Here’s what we have covered so far on the Apple earnings front:
Feb 2nd: Big picture takeaway, Apple’s 1Q24 numbers (vs. my expectations), 2Q24 guidance.
Feb 5th: Looking through 1Q24 numbers to examine Apple’s ecosystem growth.
Feb 6th: Analyzing Apple’s earnings call with analysts.
Today: Examining the 10-Q and balance sheet developments.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Reading Between the Lines of Apple’s 1Q24 Earnings Q&A With Analysts
In today’s update, we will focus on Apple’s 1Q24 earnings Q&A session with analysts.
After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over Neil’s response to the exchange. Let’s go beyond what was talked about on the call with the ninth installment of reading between the lines of Apple's earnings Q&A with analysts.
NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Luca”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, Seeking Alpha offers a written transcript here.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Apple’s Installed Base Growth, Apple's Paid Subscriptions Growth, A More Effective Apple Growth Narrative for Wall Street
Last Friday’s update kicked off our Apple 1Q24 earnings review. When it comes to Apple’s financial story, trends are tracking close to Neil’s expectations. For today, we will take a closer look at one takeaway from earnings: Apple’s ecosystem growth.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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Initial Thoughts on Apple’s 1Q24 Results, Apple’s 1Q24: By the Numbers, Parsing Apple’s 2Q24 Guidance
Apple’s 1Q24 earnings call was jam-packed with information. Unlike the average earnings call from Big Tech, Apple’s calls contain useful commentary and tidbits. More time will be needed to go through the disclosures, including the installed base information.
For today, we will look at the big picture from earnings, how the reported figures compared to my estimates, and Apple’s 2Q24 guidance.
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Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
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My 1Q24 Apple Estimates, Expectations for 2Q24 Guidance, My Updated Apple Earnings Model
Apple reports FY1Q24 earnings on Thursday. Today’s update contains the second half of Neil’s earnings preview. The first half is available here. The update begins with Neil’s granular financial estimates. The discussion includes qualitative explanations for estimates related to Apple’s product categories. We then look at Neil’s expectations for what Apple will say about guidance (FY2Q24). We conclude with Neil’s updated Apple earnings model and how the model has changed over the past three months. Access to Neil’s Apple earnings model is a benefit associated with Above Avalon membership at no additional cost.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Preparing for Apple’s 1Q24 Earnings Release
Apple reports FY1Q24 earnings (results from October to December) on Thursday. Today's update will begin our preparation for Apple's earnings as we go over Neil’s broader thoughts heading into Apple’s earnings.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Apple Unveils Plan for Digital Markets Act, The Spotify Boost Act, Apple Changes Game Streaming Policy
This is shaping up to be a busy week. Apple reports earnings on Thursday. We will begin preparing for earnings tomorrow (Tuesday). For today's update, we will focus on Apple's plan for the Digital Markets Act (DMA). The discussion includes why Neil thinks the DMA should be renamed the Spotify Boost Act. We conclude with a noteworthy change in how Apple will treat game streaming services in the App Store.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.