Apple Invests in Corning, Garmin 1Q17 Wearables Sales
Today's Above Avalon email includes the following stories:
- Apple Invests in Corning
- Garmin 1Q17 Wearables Sales
We begin today's email with my thoughts on Apple investing $200M in Corning. We discuss Apple's history with Corning and why Apple is investing in the company. We also go over the Apple/Corning press conference from last week, in which Apple COO Jeff Williams spoke. There were a number of takeaways from the event. The email then turns to Garmin's 1Q17 earnings. In what may come as a surprise to most people, Garmin has become a leading wearables company. We go over the company's financials in order to derive Garmin wrist wearables sales for 1Q17. We then go over a few reasons why I think Garmin and Fossil are similar to each other when it comes to competing against Apple Watch in the wearables space.
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Microsoft Unveils Surface Laptop, Wall Street's Latest Apple Bear Case, Apple Wearables are Underestimated
Today's Above Avalon email includes the following stories:
- Microsoft Unveils Surface Laptop
- Wall Street's Latest Apple Bear Case
- Apple Wearables are Underestimated
We begin today's email with my thoughts on Microsoft's Surface Laptop. We go over Microsoft's sales pitch for the product and how much of a competitive threat it poses to Mac. The discussion then turns to how Apple's valuation surpassing $800B is breeding the latest Apple bear case involving the company being unable to stay on top of Wall Street. We go over the bear case in detail. The discussion concludes by focusing on Apple wearables. We discuss why I think the product category is being underestimated and how wearables play a key role in Apple's future.
These stories are available for Above Avalon members. To continue reading, click here.
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Fossil Seeing Strong Smartwatch Demand, Snap Discloses Spectacles Sales, Thursday Q&A
Today's Above Avalon email includes the following stories:
- Fossil Seeing Strong Smartwatch Demand
- Snap Discloses Spectacles Sales
- Thursday Q&A
We begin today's email with my thoughts and observations on Fossil's 1Q17 earnings. The clothing and accessories company had quite a bit to say about the smartwatch market. We also go over my estimate for the number of smartwatches Fossil sold during 1Q17 and it how it compares to other wrist wearables companies. The discussion then turns to Snap's 1Q17 earnings. We go over the company's Spectacles (sunglasses with a camera) sales, and the best way to judge how Spectacles are performing. We end the email with the latest installment of member Q&A, and I answer the following questions from Above Avalon members:
- Should Apple own more of their manufacturing, instead of relying on third parties?
- What have I heard about the Apple Watch including blood monitoring functionality?
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Amazon Unveils Echo Show, The Echo Show Is a Step Backwards, Echo Show vs. Apple Watch
Today's Above Avalon email includes the following stories:
- Amazon Unveils Echo Show
- The Echo Show Is a Step Backwards
- Echo Show vs. Apple Watch
We begin today's email with my thoughts and observations on the Echo Show, Amazon's new 7-inch tablet speaker powered by Alexa. The discussion turns to Amazon's strategy behind Echo Show and why I think the product ends up being a step backwards when it comes to removing barriers between technology and the user. The email then turns to why the Echo Show is not like Apple Watch in terms of reducing smartphone friction. We discuss how Echo Show is the complete opposite of Apple Watch.
These stories are available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 10-Q Takeaways, Phil Schiller Discusses Hot Button Issues, Amazon Video Coming to Apple TV
Today's Above Avalon email includes the following stories:
- Apple 2Q17 10-Q Takeaways
- Phil Schiller Discusses Hot Button Issues
- Amazon Video Coming to Apple TV
We begin today's email with my thoughts on Apple's 2Q17 10-Q filing. The discussion includes nine financial items found in the filing. We then turn to Apple SVP Phil Schiller's recent interview in India. He discussed a few controversial topics including App Store economics and voice-driven assistants. The email concludes with my thoughts on Amazon getting ready to introduce an Amazon Video app for Apple TV. We go over Amazon's motivation behind the move, including a look at the changing streaming media market.
These stories are available for Above Avalon members. To continue reading, click here.
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Apple Watch Outsells Fitbit, Fitbit Begins a Pivot, Apple Watch's Health and Fitness Detour
Today's Above Avalon email includes the following stories:
- Apple Watch Outsells Fitbit
- Fitbit Begins a Pivot
- Apple Watch's Health and Fitness Detour
We begin today's email with my thoughts on Apple Watch outselling Fitbit for the first time last quarter. After going over the sales numbers, we discuss the dramatic momentum shift in the wrist wearables space. The email then takes a closer look at Fitbit's 1Q17 earnings and the company's plan to pivot into new businesses. Fitbit no longer just wants to sell dedicated health and fitness trackers. We go over what Fitbit intends to focus on going forward and whether the company has found a viable path. The discussion concludes with a closer look at how Apple put the Apple Watch on a health and fitness detour to better compete with Fitbit. With Fitbit now imploding, there are implications as to what may happen to Apple Watch's health and fitness detour going forward.
These stories are available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Review: Details
Today's daily email includes the second half of my Apple 2Q17 earnings review. Yesterday's email was focused on the major themes (available here). Today's email goes over my full notes from Apple's earnings and conference call. We cover 29 different topics.
The full earnings review is available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Review: Major Themes
Today's Above Avalon email is focused on reviewing Apple's 2Q17 earnings. Along with a big picture overview of the quarter, the email covers five major themes from the report and conference call:
- Strong Apple Watch Results
- iPhone Growth Hard to Find
- China Unknown
- The iPad's Silver Lining
- Paid Subscription Fever Builds
The second half of the earnings review (available here) goes over my full notes from Apple's earnings and conference call. We cover 29 different topics.
The full earnings review is available for Above Avalon members. To continue reading, click here.
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"Siri Speaker" Rumors Build, The Amazon Echo Narrative Is Off-Base, Companies Abandoning Apple Watch Apps
Today's Above Avalon email includes the following stories:
- "Siri Speaker" Rumors Build
- The Amazon Echo Narrative Is Off-Base
- Companies Abandoning Apple Watch Apps
We begin today's email with my thoughts and observations on the growing number of reports about Apple being close to releasing a Siri speaker to rival Amazon Echo. The storyline found in all of these reports doesn't make sense to me. Instead, my suspicion is Apple is working on a different kind of device. The email then turns to why I think the Amazon Echo narrative found in the press is off-base when it comes to Apple needing to sell a standalone speaker to rival Amazon. The email concludes with news of some major companies abandoning their Apple Watch apps. We go over why I think caution should be used before judging Apple Watch through an iPhone lens.
These stories are available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Expectation Meters, The Jimmy Iovine Strategy, Microsoft Surface's Awful Quarter
Today's Above Avalon email includes the following stories:
- Apple 2Q17 Earnings Expectation Meters
- The Jimmy Iovine Strategy
- Microsoft Surface's Awful Quarter
We begin today's email with my 2Q17 Apple earnings expectation meters. Instead of relying on single-point sales estimates, these expectation meters contain sales ranges that can be used to judge Apple's quarterly performance. By using the expectation meters in conjunction with the earnings preview found in last week's emails, we will be all ready for tomorrow's earnings. The email then turns to Jimmy Iovine's interview with Bloomberg. Apple's near-term entertainment plans are becoming clear. We go over why I think Apple is following a Jimmy Iovine strategy for entertainment. The discussion concludes with Microsoft earnings and a focus on the Surface business. After going over the numbers, we discuss how the Microsoft Surface narrative continues to change.
These stories are available for Above Avalon members. To continue reading, click here.
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Apple Is a Design Company, Amazon Unveils Echo Look, Thursday Q&A
Today's Above Avalon email includes the following stories:
- Apple Is a Design Company
- Amazon Unveils Echo Look
- Thursday Q&A
We begin today's email by continuing the discussion kicked off in my article, "Apple Isn't a Tech Company." In particular, we go over my motivation for writing the piece, as well as how I define design. We also discuss why I think it is more appropriate for Apple to be labeled a design company instead of just a product company. The discussion then turns to Amazon unveiling the Echo Look. We go over the strategy behind the product, as well as my thoughts on data and privacy implications. We end the email with the latest installment of member Q&A, and I answer the following questions from Above Avalon members:
- Do you see a reason for Apple to continue grouping Apple Watch sales in the "Other Products" line item?
- Can Apple disrupt the energy business?
These stories are available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Preview (3Q17 Guidance, Capital Management Changes), Apple Slashes App Store Affiliate Commissions
Today's Above Avalon email includes the following stories:
- Apple 2Q17 Earnings Preview (Part 5 - 3Q17 Guidance, Capital Management Changes)
- Apple Slashes App Store Affiliate Commissions
We kick off today's email with the final two sections of my Apple 2Q17 earnings preview. (The first four sections are available here and here.) We go over my thoughts on Apple's 3Q17 guidance and upcoming changes to Apple's dividend and share buyback programs. The email then turns to Apple slashing App Store affiliate commissions. After going over the affiliate link business, we discuss the three schools of thoughts as to why Apple slashed affiliate commissions with no warning. The discussion concludes with my thoughts on the most likely reason Apple made the change.
These stories and the full earnings preview are available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Preview (iPad, Apple Watch, Mac, Services)
Today's Above Avalon email includes the following stories:
- Apple 2Q17 Earnings Preview (Part 3 - iPad)
- Apple 2Q17 Earnings Preview (Part 4 - Apple Watch, Mac, Services)
We kick off today's email with the next two sections of my Apple 2Q17 earnings preview. (The first two sections are available here.) We go over my iPad, Apple Watch, Mac, and Services estimates for 2Q17. The discussion begins by discussing my thoughts on iPad sales heading into next week's earnings report. We look at all of the moving parts that will impact sales. The email then turns to Apple Watch and the methodology used to arrive at my 2Q17 sales estimate. The discussion concludes with a look at the Mac and Services line items.
The full earnings preview is available for Above Avalon members. To continue reading, click here.
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Apple 2Q17 Earnings Preview (Setting the Scene, iPhone Estimate), The iPhone's Stronghold
Today's Above Avalon email includes the following stories:
- Apple 2Q17 Earnings Preview (Part 1 - Setting the Scene)
- Apple 2Q17 Earnings Preview (Part 2 - iPhone)
- The iPhone's Stronghold
We begin today's email with the first two parts of my Apple 2Q17 earnings preview. We discuss my thoughts on the overall environment heading into next week's earnings report. The email then turns to my iPhone unit sales estimates for 2Q17. We go over the methodology and data behind my estimate. The email concludes with a discussion of where the iPhone is selling surprisingly well and a few reasons for the strength.
The full earnings preview is available for Above Avalon members. To continue reading, click here.
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Samsung Is Being Graded on a Curve, Being Different in Tech Is Overrated, Thursday Q&A
Today's Above Avalon email includes the following stories:
- Samsung Is Being Graded on a Curve
- Being Different in Tech Is Overrated
- Thursday Q&A
We begin today's email with my thoughts on how Samsung is being graded on a curve. We use the Samsung Galaxy S8 as an example to reveal what is a growing problem within the tech community. The discussion then turns to the difference between being different versus better in technology. Apple's "Think Different" motto has ended up being grossly misinterpreted. We end the email with the latest installment of member Q&A, and I answer the following questions from Above Avalon members:
- What are some business models for Apple in cars?
- How much would an Apple Car cost?
- Where does the Apple/Qualcomm battle go from here?
These stories are available for Above Avalon members. To continue reading, click here.
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