Apple

Apple’s annual developer conference starts next Monday, June 4th. Consistent with past WWDC’s, announcements will be software heavy. Most notably a preview of iOS 12 and the upcoming MacOS. We expect Monday’s keynote to be highlighted by extending the reach…

The New York Times reported that Apple has signed a deal with Volkswagen to manufacture electric T6 Transporter vans outfitted with Apple’s autonomous sensor suite to be used as self-driving shuttles for employees. This is significant because it plays into…

According to Bloomberg, of the 54 projects they have tracked since Tesla’s inception, Musk has been late on 21 (or 40%). These continual misses fuel an inaccurate narrative that the company can’t execute and may not survive. In our view,…

Optionality around new product and service categories is the 4th and final pillar to our Apple as a Service thesis. We expect a stable iPhone business (part 1), a growing Services segment (part 2), and capital returns (part 3) to…

Apple’s capital return framework is the 3rd of 4 pillars to our Apple as a Service thesis. It’s understood that Apple is committed to a $100B capital return over an undefined number of years. What’s not understood is that the…

Apple Services is the 2nd of 4 pillars to our Apple as a Service thesis. It consists of the App Store, Apple Music, iCloud, iTunes, Licensing/Google, Apple Care, and Apple Pay. Critical to Services visibility is stable iPhone growth, which…

Our perspective that the iPhone will be a stable business for the next few years will be the most controversial of the four pillars to our Apple as a Service thesis. Based on the size of the active iPhone install…

We’re entering a new paradigm related to investing in Apple defined by 4 key themes that we call ‘Apple as a Service.’ Greater visibility in the iPhone business (62% of revenue), albeit at a 0-5% growth rate. This stability is…

Shares of AAPL were up ~4% in the aftermarket because investors had been expecting below-consensus guidance, but the company guided in line to slight upside for the Jun-18 quarter. (revenue guidance of $51.5-$53.5B vs. the Street at $51.5B) The iPhone business…

Apple reports on Tuesday, May 1st. Here’s what we expect: Modest risk (about 3%) to the Street’s Jun-18 revenue estimate based on negative comments from two suppliers. Jun-18 revenue guidance of $48-$51B vs. Street at $52.2B. The company to announce an…

Apple has been criticized for not doing enough in AI. Two recent announcements show the company is closing the gap. In the past two weeks, the company has announced the hiring of Google’s AI head, and an AI partnership with…

Apple has hired John Giannandrea who formerly served as Google’s head of AI and Search. Given the industry’s shortage of AI talent, Giannandrea brings expertise along with credibility, critical in recruiting. Giannandrea will likely be working on AI-powered interfaces that…