Apple Closed the Mac Price Umbrella, Is There an iPhone Price Umbrella?, Three Reasons Why Neo Will Likely Succeed
Happy Friday. In thinking through this week’s events and our three updates, there is a discussion to be had that will help to connect our talking points and a few different subjects. Let’s have that discussion in today’s update.
Apple Closed the Mac Price Umbrella
One reason why the MacBook Neo is such an intriguing Apple product from a strategy perspective is it addresses what had been the long-standing Mac price umbrella.
For years, Apple’s Mac portables line had a starting price in excess of $899 to $999. This provided a substantial amount of space for the Windows Brigade to not just survive but thrive. The Mac was pinned to represent a
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Play Me Some Music, Siri (AVALON Podcast)
In the 37th episode of the AVALON podcast, Neil discussed the following topics/subjects:
What's on the Agenda (the bulk of the discussion modeled after Apple’s Monday morning meetings)
Apple News curation bias follow-up.
Spotify earnings.
Apple Music strategy.
How AI may impact the music industry (including Spotify and Apple Music).
A key difference between Apple Music and Spotify.
Why Spotify's strategy is problematic.
Where Apple will take Apple Music.
Apple Music as an antidote to AI.
Apple Music risk factors.
Antitrust risk and Apple v. Spotify.
Lighting Round (two topics two minutes each)
Apple Partners with IMAX for F1.
MLS Season 4 is here.
Give Me a Break (something ridiculous that jumped out at me)
Citrini Research’s viral Substack post and vibe laundering.
Tell Me More (something intriguing that has my attention)
Why so many tech companies fail at M&A.
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You Can Curate the News for Me (AVALON Podcast)
In the 36th episode of the AVALON podcast, Neil discussed the following topics/subjects:
What's on the Agenda (the bulk of the discussion modeled after Apple’s Monday morning meetings)
Apple News curation bias alleged.
How the bias allegations contain holes.
Apple News is gaining power.
Why Apple News is a proxy for Apple's broader services play.
Lighting Round (two topics two minutes each)
Google releases YouTube app for Apple Vision Pro.
Apple is holding an “experience” on March 4th in a few cities.
Give Me a Break (something ridiculous that jumped out at me)
Tech companies treating their quarterly earnings releases as product launches aimed at retail investors.
Tell Me More (something intriguing that has my attention)
Revisiting smart glasses vs. headsets product strategy.
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Choose a monthly subscription or go with annual to save. (Charges can be expensed by your employer as the podcast is filled with analysis and research. If you need paid invoice receipts, go with the annual plan.)
Upon signup, you will receive a welcome email with directions for getting the AVALON podcast in your player. This episode will then automatically appear in your podcast player. AVALON can be listened to in Apple Podcasts and various third-party podcast players including Pocket Casts, Overcast, and Castro.
Already an AVALON subscriber? The episode “You Can Curate the News for Me” is in your podcast player.
If you previously subscribed to AVALON and need assistant adding the podcast to your podcast player, look for the welcome email (from “Neil Cybart via Transistor”) that was sent to when signing up.
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Wall Street Is Beginning to Panic About Big Tech Capex (Inside Orchard)
Over the past few years, a periodic topic that we have talked about in these essays has revolved around Wall Street’s evolving attitude to AI mania. On again, off again jitters found with AI-related capital expenditures (capex) in 2023 and 2024 led to an attempt to separate perceived AI winners from losers in the back half of 2025. While this winners versus losers mentality still stands as certain tech stocks continue to outperform, there is evidence of Wall Street once again becoming nervous about AI’s impact on Big Tech capex. The stakes are much higher this time around with feelings of panic beginning to circulate in the air.
Despite reporting all-around good results for the fourth quarter, Wall Street just didn’t have much appetite for “Mag 7” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) shares. Management commentary pointing to continued huge jumps in AI capex for 2026 offset what were genuinely strong revenue trends for many companies. The Mag 7 is looking to spend nearly $700 billion on capex in 2026, up from $400 billion in 2025. We can assume the vast majority of that increase is driven by AI-related investments. This year-over-year capex growth came in notably higher than expectations.
While Wall Street has shown prior bouts of hesitation when it comes to AI capex, this time is different. The magnitude of the AI spending
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Apple Unveils MacBook Neo, Neo as a Mac Inflection Point, The Windows Brigade Is Doomed
Happy Thursday. Today's update will be dedicated to the big story from Wednesday: Apple unveiling an all-new $599 MacBook. For tomorrow's update, we will look at a few broader themes found throughout this week's Apple product unveilings.
Let’s jump in.
Apple Unveils MacBook Neo
In what is the most intriguing new Apple product from a strategy perspective since Apple Vision Pro was unveiled in 2023, Apple unveiled its lowest-priced MacBook in history. At $599 ($499 education pricing), MacBook Neo is a consequential product that will likely go on to represent a new (neo = new) chapter not just for the Mac, but also for Apple.
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Thoughts on Day 2 of Apple’s Spring Product Launch, The iPad Air (M4), More on iPhone 17e and Low-End Smartphones
Hello everyone. Apple’s busy week continues with the second day of new and updated products.
One quick programming note for those of you who are also subscribed to the AVALON weekly podcast: This week’s episode will come out on Wednesday instead of the usual Tuesday.
Let’s jump into today’s update.
Thoughts on Day 2 of Apple’s Spring Product Launch
Earlier today, Apple unveiled a slew of updated products:
MacBook Air (M5) for $1,099. The price floor has been increased by $100 to reflect Apple doubling the amount of starting storage. Said another way, pricing for the 512GB storage option went down by $100 as that option for the MacBook Air (M4) had been $1,199.
M5 Pro and M5 Max chips.
MacBook Pro (M5 Pro and M5 Max) with a price floor that is $200 higher than its predecessors reflecting Apple doubling the amount of starting storage. Unlike what was found with the MacBook Air (M5), pricing for the same amount of storage last year was unchanged.
An updated Studio Display ($1,599).
An all-new 27-inch Studio Display XDR ($3,299) which is positioned as the more premium option next to the Studio Display. The $4,999 (+$999 for the stand) 32-inch Pro Display XDR is being discontinued.
AI was the major theme connecting these Mac updates. Given an increasing number of AI workflows occurring on device,
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Apple Unveils iPhone 17e, Thoughts on the iPhone 17e, Apple and Low-End Smartphones
March 2nd, 2026
By Neil Cybart
Apple Unveils iPhone 17e
Thoughts on the iPhone 17e
Apple and Low-End Smartphones
Happy Monday. Apple kicked off its busy week by unveiling the iPhone 17e and iPad Air (M4). For today’s update, we will focus on the iPhone 17e. We will look at the iPad Air (M4) tomorrow. Let’s jump in.
Apple Unveils iPhone 17e
In the years leading up to the iPhone 16e launch in 2025, older iPhones that Apple had kept in the lineup at lower prices were grabbing a declining percentage of the iPhone sales max. One factor behind that trend was iPhone upgraders holding on to their devices for longer and then buying the best iPhone available when it was time to upgrade. This trend also contributed to the iPhone Pro seeing growing sales momentum.
The iPhone SE, Apple’s most aggressive tool to date for addressing lower-priced smartphone segments, was similarly
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Netflix Drops Out of Running for Warner Bros. Discovery, Apple Signs F1 Deal With Netflix, Apple’s F1 Integration Is Unprecedented, Apple’s Busy (Upcoming) Week
February 27th, 2026
By Neil Cybart
Netflix Drops Out of Running for Warner Bros. Discovery
Apple Signs F1 Deal With Netflix
Apple’s F1 Integration Is Unprecedented
Apple’s Busy (Upcoming) Week
Hello everyone. We wrap up this week with a few stories in video streaming land. The discussion will then turn to Apple’s busy upcoming week.
Netflix Drops Out of Running for Warner Bros. Discovery
The Warner acquisition outcome that had the best odds of occurring from the beginning is once again back on top. Netflix refused to increase its Warner bid to match Paramount’s improved bid. Barring any sudden developments, Paramount will acquire Warner Bros. Discovery. The deal remains subject to regulatory approval. While someone may try to block the deal on antitrust grounds, that will be a tough hill to climb.
In some ways, this was the inevitable conclusion as Netflix was always going to have a difficult time countering two things:
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Apple to Bring Some Mac Mini Assembly to the U.S., Apple Gives WSJ Factory Tour, NYT Pushes U.S. Semiconductor Propaganda
Hello everyone. A quick update on where the schedule stands. The blizzard in Connecticut earlier this week and subsequent snow yesterday threw another winter wrench into update publication timing. The plan is to have an update out tomorrow that essentially will combine two updates into one.
Let’s jump into today’s update.
Apple to Bring Some Mac Mini Assembly to the U.S.
In a press release issued on Tuesday, here’s Apple:
“Apple today announced a significant expansion of factory operations in Houston, bringing the future production of Mac mini to the U.S. for the first time. The company will also expand advanced AI server manufacturing at the factory and provide hands-on training at its new Advanced Manufacturing Center beginning later this year. Altogether, Apple’s Houston operations will create thousands of jobs.
‘Apple is deeply committed to the future of American manufacturing, and we’re proud to significantly expand our footprint in Houston with the production of Mac mini starting later this year,’ said Tim Cook, Apple’s CEO. ‘We began shipping advanced AI servers from Houston ahead of schedule, and we’re excited to accelerate that work even further.’
For more than two decades, users around the world have relied on the incredibly popular Mac mini for the tremendous power it packs into its ultra-compact design. With its next-level AI capabilities, it has become an essential tool for everyone from students and aspiring creatives to small business owners. Beginning later this year, Mac mini will be produced at a new factory on Apple’s Houston manufacturing site, doubling the campus’s footprint.”
Apple COO Sabih Khan announced this Mac mini news while giving the WSJ a tour of U.S. partner facilities (more on the tour shortly). Interestingly, Khan said that “thousands” of Mac mini units are assembled “every week.” The wording points to a Mac mini annual production rate ranging from
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Apple Partners With IMAX for F1, MLS and Apple Kick Off New Season, Apple Partners With EverPass Media
Hello everyone. What a winter we are having here in Connecticut. We can now add a blizzard to the mix. Monday's snowfall totaled 15 inches which was a little bit less than the 17 inches from just a weeks ago. It still led to a crazy Monday.
Today's update will have an Apple sports theme as we kick things off with F1 news and then turn to MLS.
Apple Partners With IMAX for F1
Here’s Motorsport:
“IMAX has announced that a select number of races will be shown live in IMAX locations across the United States in 2026.
The new fan viewing experience is part of a collaboration with Apple TV, which has taken over the broadcasting rights for the championship in the US on a multi-year deal from 2026.
‘F1 is a rapidly growing force in sports and culture in the US, and by bringing F1 on Apple TV live to IMAX theatres nationwide, we’re delivering the energy and excitement to even more screens in a truly immersive way,’ said Oliver Schusser, Apple’s vice president of music, sports, and Beats.
'We’re excited to collaborate with IMAX to expand access to F1 on Apple TV and give fans across the U.S. a powerful new way to experience the speed and spectacle that the sport delivers.’"
Details remain on the light side. For example, ticket pricing was not given. Five grands prix will be shown with distribution that will exceed at least 50 U.S. IMAX theaters. Since IMAX has 380 U.S. theaters, we can probably assume distribution will be more than 50 theaters.
It’s good that Apple is willing to think outside the box with F1 distribution. What is the point of Apple getting its hands on F1 distribution rights if the plan is just to do what other distributors have done?
Some of the business calculation at play with this IMAX partnership may be that F1 and IMAX will
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Meta Can’t Be Trusted With Smart Glasses (Inside Orchard)
Last week, the NYT published a bombshell of a report that alleged Meta was looking to add facial recognition to its Ray-Ban Meta smart glasses while civil liberty groups were preoccupied with “the political tumult in the United States.” The report also alluded to Meta possibly using accessibility as a guise to avoid backlash found with facial recognition. If the reporting is accurate, it’s bottom of the barrel awfulness that should be denounced.
Given the NYT’s unfair coverage of Apple, part of me is hesitant to believe this latest Meta story. However, the statement Meta provided the NYT and the specific allegations regarding what was found in an internal memo add credibility to the story. In addition, what is being alleged isn’t out of character for a company that has been involved in a long list of incidents involving lackluster privacy protections and secret data collection.
Consensus is being too laissez-faire with Meta’s move into smart glasses. It’s time to put tech fascination aside to state the uncomfortable truth: Meta’s broadening move into smart glasses can’t be trusted as it pertains to upholding privacy and data protections.
Meta has been dabbling in hardware for
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Apple Releases iOS 26 Adoption Figures, iOS 26 Adoption by iPhone Age, YouTube Launches Apple Vision Pro App (Finally)
Happy Friday. We will jump right into today’s update.
Apple Releases iOS 26 Adoption Figures
Last month, a fair number of Apple bloggers and writers got punked by faulty analytical data from StatCounter that showed few iPhone users had upgraded to iOS 26. Prior to the mistake being caught, the bad data led to a wave of articles infused with FUD (fear, uncertainty, and doubt). One publication’s takeaway was that iPhone users were “showing a level of hesitation toward iOS 26 that has not been seen in recent years.”
Based on new App Store disclosure from Apple, iOS 26 adoption is trending roughly in-line with adoption behavior seen in prior years.
As of February 12th:
iOS 26: Installed on 66% of devices.
iOS 18: 24% of devices.
Earlier than iOS 18: 10% of devices.
For new iPhones (released within the past four years), iOS 26 adoption jumps to 74% with iOS 18 representing another 20% of devices.
Circling back to what Apple reported in prior years:
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Spotify Earnings, Something Feels off With Spotify, It's Time to Push Apple Music
Hello everyone. The initial plan was to have this update cover Spotify’s earnings along with a few other news items. However, in going through Spotify’s earnings call transcript, it quickly became apparent that a different discussion was needed. We will have that discussion today. This will free up some space in tomorrow’s update to pursue a few other topics.
Let’s jump in.
Spotify Earnings
Looking back over the past two to three years of Above Avalon Daily Spotify earnings reviews, the prevailing takeaway from our discussions was spectacular user growth offset by mediocre financials.
(As for how Spotify has been able to grow its subscriber base, we can’t underestimate the power of free, unmet demand in emerging markets, and family plan accounting.)
Spotify’s 4Q25 numbers were
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Jony Ive’s Ferrari (Inside Orchard)
Earlier this week, Ferrari took the wraps off the first byproduct of its multi-year partnership with LoveFrom, Jony Ive’s and Marc Newson’s design consultancy. In a well-orchestrated unveiling in San Francisco, catering to both tech and auto reporters, the two companies showed off the LoveFrom-designed interior of the upcoming Ferrari Luce. The auto manufacturers’ first electric car, which still has an unknown exterior that is also being designed by LoveFrom, currently does not have a launch date although pre-orders are expected in a few months.
One of the defining attributes of Jony’s design process relates to focusing on the problem trying to be solved. Given how prevalent this topic was among the press at the Ferrari Luce unveiling, it sounds like the subject was discussed by Jony. For what it’s worth, the supposed problem that Jony looked to address with the Luce was how to design an electric car that is worthy of the Ferrari brand. Jony’s answer is to
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Talking? Where We’re Going, We Don’t Need Talking (AVALON Podcast)
In the 35th episode of the AVALON podcast, Neil discussed the following topics/subjects:
What's on the Agenda (the bulk of the discussion modeled after Apple’s Monday morning meetings)
Apple’s M&A philosophy.
Apple acquires Q.
Q patents.
How Q can power a new user interface for Apple.
AI mania vs. human-centric computing.
Lighting Round (two topics two minutes each)
The Apple Music Super Bowl Halftime Show.
Why it feels inevitable that a pure play video streamer will get the Super Bowl one day.
Give Me a Break (something ridiculous that jumped out at me)
Coinbase’s ridiculous Super Bowl ad and subsequent behavior.
Tell Me More (something intriguing that has my attention)
LoveFrom, Ferrari. Jony Ive’s design vision of what an electric (Ferrari) car should be in today’s marketplace.
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Apple News Bias Alleged, FTC Warns Tim Cook, EssilorLuxottica Discloses Ray-Ban Meta Sales
Hello everyone. Let’s jump into today’s update.
Apple News Bias Alleged
Last week, MRC, a partisan website, alleged that Apple News was taking a “defiant stance against offering news from right-leaning outlets….” The website went on to cherry-pick a few headlines from what hundreds of stories curated within Apple News to say that Apple was purposely “rejecting” only “right-leaning outlets.”
Not surprisingly, the article was picked up by outlets including the New York Post and Fox News, two of the publications mentioned in MRC’s article as allegedly receiving unfair treatment from Apple. Due to the exposure generated by the outlets, the MRC report was eventually highlighted by President Trump, Elon Musk, and others on social media. Within a day, the FTC had sent a threatening letter to Tim Cook regarding the alleged Apple News bias.
AllSides, a publication that labels news sites based on their perceived political leaning, pushed out its own article based on Apple News data that they collected in October. Here’s AllSides:
“A new AllSides bias analysis found Apple News (Lean Left bias) continued its trend of publishing primarily from left-wing media outlets in 2025, displaying 2% of news articles from outlets on the right, and 50% from outlets on the left.
This is consistent with data from our 2023 analysis, when Apple News curated 1% from outlets on the right and 53% from the left.
While users can personalize which outlets appear on their Apple News app, for the purposes of this analysis, AllSides looked explicitly at Apple News’ ‘Top Stories’ and ‘Trending Stories’ sections, which are not personalized for individual users and are curated by Apple’s editors.”
AllSides published the following exhibit:
(click / tap exhibit to enlarge)
The chart caught my attention as it implied there has been no recent or sudden change in what Apple News has been doing.
Apple News relies on a few dozen former journalists to select the stories that comprise Top Stories. The selections are updated
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The AI IPO Race Is On (Inside Orchard)
SpaceX acquiring xAI may not seem related to Anthropic unveiling a controversial Super Bowl ad. However, the two developments this week speak to a financial race that is unfolding with the finish line being successful IPOs.
Anthropic unveiled a series of Claude commercials designed to throw shade against OpenAI and its recent decision to brings ads to ChatGPT. The four commercials, part of the company’s “A Time and a Place” campaign, mark Anthropic’s Super Bowl debut. I found the commercials to be humorous but depressing as they humanize just how cold and sterile chatbots are to use. My now years-old call that we need something better than chatbots is very much alive and well.
At least on social media, there were a few debates surrounding the Claude ads. Some people were uncomfortable that Anthropic took out ads to essentially advocate against ads – a line of attack that strikes me as superficial. Others didn’t like how Anthropic focused on punching a competitor rather than talking up its own product. In some ways, such debates missed the point as Anthropic already
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Apple Acquires Q, The Key Q Patent, Apple Is Developing a New User Interface
Hello everyone. Today’s update will be dedicated to Apple’s Q acquisition. At $1.6B, this is the second-largest Apple acquisition in terms of deal value. It’s a fascinating acquisition. Let’s discuss.
Apple Acquires Q
Here’s Reuters:
“Apple on Thursday said it has acquired Q.ai, an Israeli startup working on artificial intelligence technology for audio.
Apple did not disclose terms of the deal for Q.ai, which was backed by venture capital firms Matter Venture Partners, Kleiner Perkins, Spark Capital, Exor and GV, formerly known as Google Ventures. The deal valued the startup at about $1.6 billion, according to a source familiar with the matter.
Apple did not say how it will use Q.ai's technology but said the startup has worked on new applications of machine learning to help devices understand whispered speech and to enhance audio in challenging environments.
Q.ai last year filed a patent application to use "facial skin micromovements" to detect words mouthed or spoken, identify a person and assess their emotions, heart rate, respiration rate and other indicators.
Q.ai's 100 employees, including CEO Aviad Maizels and co-founders Yonatan Wexler and Avi Barliya, will join Apple, the companies said.
Maizels founded three-dimensional sensing firm PrimeSense and sold it to Apple in 2013. The PrimeSense deal eventually helped Apple move away from fingerprint sensors on its iPhones and toward facial recognition technology.”
Johny Srouji, Apple’s SVP of hardware technologies, provided the following statement to Reuters: Q “is a remarkable company that is pioneering new and creative ways to use imaging and machine learning. We’re thrilled to acquire the company, with Aviad at the helm, and are even more excited for what’s to come.”
When Apple acquired PrimeSense in 2013 for $360M, the company simply confirmed the acquisition and the provided what had been its generic "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans” M&A comment.
The Q acquisition includes technology (with accompanying patents) that have very high probabilities of being brought to market via Apple products. Apple is not going to
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Reading Between the Lines of Apple’s 1Q26 Earnings Q&A With Analysts
Happy Monday.
Today’s update will conclude our Apple 1Q26 earnings review with the latest installment of Reading Between the Lines. After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over my response to the exchange.
Let’s go beyond what was talked about on the call with the 17th installment of Reading Between the Lines of Apple's earnings Q&A with analysts.
Reading Between the Lines of Apple’s 1Q26 Earnings Q&A With Analysts
NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Parekh”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, The Motley Fool offers a written transcript here.
iPhone
Q (Morgan Stanley): What are the top factors driving iPhone strength?
Cook: It’s a combination of things – display, camera, performance, new selfie camera, design.
My response: We also can’t underestimate the degree to which
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Offering a Cup of FUD Seems Desperate (AVALON Podcast)
In the 34th episode of the AVALON podcast, Neil discussed the following topics/subjects:
What's on the Agenda (the bulk of the discussion modeled after Apple’s Monday morning meetings)
Apple 1Q26 earnings.
What's up with the FUD (fear, uncertainty and doubt) that followed Apple’s earnings?
Volatile stock price moves.
Lighting Round (two topics two minutes each)
Apple acquires Q Ltd for $1.6 billion.
Appreciation for Apple’s Stocks app.
Give Me a Break (something ridiculous that jumped out at me)
Elon Musk’s product strategy decisions at Tesla.
Tell Me More (something intriguing that has my attention)
I’m starting to get sold on sleep tracking.
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