In Monday’s update, we talked about Apple’s fixed income investment portfolio. The discussion led to a few incoming questions from members, which we will address in today’s update. We then turn to Neil’s thought on Apple Music Classical and Apple’s broader strategy for Apple Music. There are key differences between how Apple is approaching music streaming and the strategy at play with iTunes. We also compare the strategies of Apple Music and Spotify.

Hello everyone.

One clarification regarding Meta’s new round of layoffs. The 10,000 layoffs that Zuckerberg just announced don’t include 5,000 open positions that will be left open. Accordingly, Zuckerberg is on track to cut 25% of Meta’s workforce. In yesterday’s update, a 20% percentage was referenced. It’s an even more startling figure that reflects Meta has become bloated and is now trying to resize itself to respond more quickly to market developments. My expectation is that once Zuckerberg has concluded his efficiently reset, Meta will again look to add to its ranks.

Let’s jump into today’s update.

Q&A About Apple’s Investment Portfolio

In Monday’s update, we talked about Apple’s fixed income investment portfolio. The discussion led to a few incoming questions from members, which we will address below.

Given how rates have risen over the past year or so, do you see Apple returning to the bond market to raise funds to pay off maturing bonds or do you think they would use cash for these payouts? or a mix of both?

My expectation is for Apple to slow the pace of debt issuance. As existing debt rolls off – Apple has about $11B that comes due in FY2023 – management won’t look to replenish the debt with new debt 1 for 1. With that being said,

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