Porsche Teases Race App for Vision Pro, Apple’s Growing Interest With Motorsports, The Apple and Formula 1 Rumor
Happy Wednesday.
One quick follow-up to yesterday’s discussion regarding Apple’s blockbusters. The stated box office figures for “Napoleon,” “Killers of the Flower Moon,” and “Argylle” do not flow completely to Apple. Accordingly, Apple needed more than $250M ($700M+ production and marketing budget - $470M box office) in movie rentals, sales, and Apple TV+ to financially breakeven on the films. As we discussed, some of the lofty spending can be attributed to Apple wanting good looks at awards.
For today’s update, we turn to the auto space where Tim Cook had a surprise role to play in Porsche’s newest electric car unveiling.
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Apple and Netflix Come up Short at Oscars, Apple’s Blockbusters Gamble, The Theatrical Release Question Lingers
Following the Oscars this past Sunday, today’s update will have a movie theme. We discuss Apple and Netflix coming up short at this year’s Oscars. The discussion then turns to Apple’s gamble with blockbusters at the movie theater ("Killers of the Flower Moon," "Napoleon," and "Argylle"). We also look at a lingering industry question found with theatrical releases.
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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 Reinstates Epic Games’ EU Developer Account, The European Commission’s Dilemma, Why Apple Should Remain in the EU
Hello everyone. Welcome to a new week.
Approximately 13 hours after publishing last Thursday’s update, which came out late at night ET, we received news that Apple had reinstated Epic Games Sweden’s Apple Developer Account in the EU. This created another fiasco on social media, including Epic Games co-founder and CEO Tim Sweeney going after me on X (Twitter) for last Thursday's update.
In today’s update, we will take a closer look at the situation. The discussion will address a few points that appear to be circulating on social media.
Let’s jump in.
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Apple Terminates Epic Games’ New EU Developer Account, Apple's Calculations, Apple’s Correct Decision
Hello everyone. We didn’t get too far from our European Commission discussion before being pulled back in with yet another controversy involving Apple and Epic Games.
Let’s jump right in.
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Apple Unveils Updated MacBook Air, Apple Positions MacBook Air as AI Laptop, MacBook Air and Productivity
Hello everyone. We continue to tackle Apple news items. Next up: The updated MacBook Air. Apple unveiled the new computers on Monday. There were a few things in the press release that jumped out at me. Let's jump right in.
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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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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 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.
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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.
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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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.
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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.
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.
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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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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.
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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.
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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.
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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.
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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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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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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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