Apple Device Upgrading Is Improving, Apple’s Underpenetrated Services Business
Today's Above Avalon Daily update includes the following stories:
Apple Device Upgrading Is Improving
Apple’s Underpenetrated Services Business
Happy Monday. This past Friday’s update included my initial thoughts on Apple’s strong earnings and how my numbers compared to Apple’s results.
The following snippet was from Friday’s update:
“Apple’s financials are now showing the impact from management doubling down on its ecosystem via:
More frequent and substantial product updates (thanks in big part to Apple silicon). One way of getting existing users to [up]grade is launch new and exciting product updates that add genuine value to people’s workflows and lives.
Greater awareness on management’s part that Apple’s ecosystem is severely under-penetrated from a Services monetization standpoint. Apple’s AI strategy is flying under the radar with the company well-positioned to leverage its role as distributor of AI-infused apps and services to an ecosystem of 1.5B+ premium users.”
There’s much to unpack from that snippet regarding two of the major takeaways from Apple’s earnings: Improving Apple device upgrading trends and Apple's Services growth potential.
Let's jump right in.
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Higher ARPU Isn’t a Bad Thing for Apple, Alexa Turns Five Years Old, Spotify Earnings
Today's Above Avalon daily update includes the following stories:
Higher ARPU Isn’t a Bad Thing for Apple
Alexa Turns Five Years Old
Spotify Earnings
We begin today’s email with my thoughts on the suggestion that rising Apple ARPU (average revenue per user) poses a risk for the company and a sign of Apple caving to Wall Street pressure. The discussion then turns to Alexa turning five and why Amazon’s digital voice assistant hasn’t been living up to the hype. We conclude with a look at Spotify 3Q19 earnings.
Above Avalon membership is required to read this daily update. Members can read the update here.
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