Credit Suisse Positive Headed Into iPhone 14 “Far Out” Event
07 SEPTEMBER 2022 - I argued yesterday that it seems all Apple has to do to make iPhone 14 a success is make and release an iPhone 14. Credit Suisse analyst Shannon Cross seems to agree. Barron’s (via Apple News+) ran a piece Tuesday highlighting a note she wrote. Likening this year’s iPhone to an “S” model year, she says hardware changes will be minimal, which will be fine. Citing Counterpoint Research data showing iPhone controlling over half of the U.S. smartphone market, the report says:
Cross sees the strong product usage driven by high customer satisfaction and retention, market share shift from other phones, and increased 5G adoption.
As for what Apple will announce today, she basically thinks the Pro end of the line will get exclusive features, more advanced silicon, a better camera, and better battery performance. She goes on to say that “base models will likely be positioned to support margins, using the A15 platform and other components from legacy models…”
The thing for which she’s on the lookout is whether price increases prompted by macroeconomic issues in “areas like India and others” will negatively impact iPhone adoption in those areas. Watching but not worrying, it seems. Cross used her note to reiterate her “Outperform” rating on Apple shares. Her price target on the shares is $201.
New Apple Hardware Meets the Wobbly Macro
iPhone 14: The Phone That Saves Christmas?
07 SEPTEMBER 2022 - While most are not expecting huge changes for iPhone 14, there are sizable expectations for it. A headline from CNET says, “iPhone 14 Will Be the Only Bright Spot in a Bummer Holiday-Shopping Season.” But - you know… no pressure. With an anticipated price range of $700 - $1,700, the piece says:
iPhones historically have good sales, but it's an exception and not a guarantee. The reality is that the economic situation makes it hard to guess whether consumers will embrace Apple's phones, and while there's enthusiasm among some people for the device, it's unclear whether that can overcome the dour feelings everyone seems to have.
JP Morgan: Wobbly Macro May Weaken Wearable
Some say items like iPhone will take a hit, according to CNET. Still, others indicate that big ticket items like iPhone will sell well, with fewer little things to go along with. Take Apple Watch, for example. A note from JP Morgan indicates that the wearable may suffer, even as iPhone soars. Apple Insider has the firm saying:
Pricing is a key watch-point in a tough macro [economy] which comprises inflationary pressures and pull back in consumer spending… but we believe it matters more for Wearables which are considered more discretionary purchases relative to iPhone by consumers.
With all of the ongoing belt-tightening, JP Morgan expects a few moves from Apple to keep iPhone sales humming. Those include fairly aggressive trade-in offers and a push for buy-now-pay-later (BNPL) options. Quoting the firm again:
…there are numerous credit card based alternatives for paying for iPhone purchases in installments, but the average consumer still remains largely unaware of the BNPL plans. We expect a broader roll-out of BNPL as well as a greater focus on it with consumers can help with both switchers and upgraders.
What Else Can We Worry About?
Pulling back a tiny bit, JP Morgan is up on Apple overall, though the firm’s note does have an asterisk or two. Points on which to keep an eye:
…overall "economic conditions or shifting consumer demand could cause greater than expected deceleration or contraction" in the smartphone market
There’s risk in foreign markets, ranging tariffs to local competitors undercutting iPhone on price
Also, Tim Cook’s gonna retire someday. That said, his exit is only a “modest risk” compared to Jobs’ departure over a decade ago, according to the firm, which sees “a strong group of executives to support business performance without disruptions.”
JP Morgan has a positive rating on Apple shares. The firm’s price target on the shares is $200.
Brazil Bans Sale of iPhones without Power Bricks
07 SEPTEMBER 2022 - As Apple preps to intro new iPhones, the sale of old ones has been banned in one country. 9 to 5 Mac says Brazil has suspended sales of iPhones without a power brick. Apple stopped including the wall-warts with the introduction of iPhone 12 back in 2020, citing environmental concerns.
Now a report from the Brazilian publication g1 has the government there fining Apple $2.3M for not including a way to charge the phones it sells. Additionally, the country’s Justice Ministry has called for:
…cancellation of registration of iPhone brand smartphones introduced on the market from the iPhone 12 model, and immediate suspension of supply of all iPhone-branded smartphones, regardless of model or generation unaccompanied by the power brick…
9 to 5 Mac says Apple has not commented on the matter.
Evercore: Apple Store Sees First Ever Month of Declining Revenue
07 SEPTEMBER 2022 - In July, Evercore analyst Amit Daryanani tracked the first month of no growth for the App Store. Now, he’s tracked the first month of App Store decline. According to a note he wrote last month, “The App Store did not grow in July, the first month without growth since the Store’s inception.” Now a new note highlighted by Apple 3.0 has the analyst saying:
App Store revenue declined in August for the first time since the Store’s inception. (…) The slowdown is most notable in Japan and China where revenue was down double digits while the US (+9%) has held up better.
No cause for freakout, in his estimation. According to the note:
The slowdown should be well understood by investors as the App Store grew only 5% in the Jun-qtr and Apple guidance indicated Services growth should decelerate further in the Sept-qtr.
Going forward, Daryanani says:
App Store revenue will likely remain flat or in decline until we begin to see improving conditions in China. We expect other components of the Services business to pick up the slack over the long-term and Apple looks to have derisked the near-term with cautious guidance.
Daryanani has an “Outperform” rating on Apple shares. His price target on the shares is $180.
Financial Times: Experts Question Apple Ad Moves in Wake of Tracking Changes
Image by Lisa Johnson from Pixabay
07 SEPTEMBER 2022 - Do you ever do a story on your daily podcast, just so you can say “nailed it”?
Last Thursday I did a piece on a Marketwatch story that said that site had “found two recent job postings from Apple that suggest the company is looking to build out its burgeoning adtech team with folks who specialize in working with small businesses.” Marketwacth said Apple was/is looking to serve the small businesses hurt by the cratering of Facebook advertising. Those ended up being not so great once Apple made Facebook ask users whether it was cool to track their online activity, rather than just doing so secretly.
I said a week ago that the hires seemed likely to prompt cries of hypocrisy against Apple, and accusations that the company killed Facebook’s ad business to bolster its own. And now, please allow me to say, nailed it. A piece from the Financial Times comes to us under the headline, “Apple plans to double its digital advertising business workforce,” with the sub-header, “Move comes just 18 months after tech giant introduced privacy changes that disrupted market.” The piece quotes one ad-guy saying:
Building new ad systems to effectively compete with incumbents with tens of thousands of employees and 10 to 20 years of maturity would normally be an impossible task… Unless you were somehow able to disadvantage those competitors on your platform.
Meanwhile, the piece has another ad-guy saying:
…Apple was being “Machiavellian” and “brilliant” by adopting privacy rules that forced rivals to rebuild their ad infrastructure, simultaneously creating an opening for itself to fill the void.
“They could build out (their advertising business) dramatically (and) the ‘air cover’ is they are protecting the consumer’s privacy,” he said.
Nailed it.
To be fair, the Financial Times piece circles close to Mike Peterson’s Apple Insider editorial I mentioned last week. That’s the one that says “Apple has never been against advertising — it's against invasive data collection.” Quoting the Financial Times:
Apple has never been against advertising per se. Company founder Steve Jobs even tried to launch an in-app ads business in 2010 so iPhone apps could stay free. What [Apple CEO Tim] Cook is against is how personal information is bought and sold by opaque third parties without iPhone users giving consent.
Still, Apple setting the rules for how ads should work, and then expanding into that very area, strikes many observers as problematic.
Nailed it.
Two Trainers Depart Apple Fitness+
Dustin Brown on Instagram
07 SEPTEMBER 2022 - A couple of Apple Fitness+ trainers are hitting the exit. MacRumors has word of the departure of Fitness+ yoga trainer Dustin Brown, as well as core and strength trainer Betina Gozo.
In a post on Instagram, Brown said he was following and listening to his heart and moving back to Australia. That means his “time at Apple Fitness+ is coming to an end,” according to the instructor.
Gozo also took to Instagram to share news of her departure. Offering no reason for the change, Gozo simply said she was “sad to share that [her] time on the Fitness+ trainer team is coming to an end.”
Betina Gozo on Instagram
Apple Is Going “Far Out” Today
07 SEPTEMBER 2022 - I know you’re not likely to forget, but I will remind you anyway: Today is the thing - Apple’s in-person, “Far Out” media event that you don’t need to go anywhere to see.
New iPhones are as close to certain as anything can be. New Apple Watch models seem a practical certainty as well. Think there’ll be a “one more thing?” My head doubts it… but my heart… It’s the first time Apple's gathered the press in over two-years. Are they really only going to give them what they’re expecting? I’m not saying there will be one more thing. But I do hope.
10AM Pacific/1PM Eastern today - Wednesday 7 September - is when the lights go down and the show goes up. You can catch it as it happens on Apple’s Events page - Apple.com/events. It will also be streamable on YouTube. You can catch it on Apple TV if you have one, or on the Apple TV app if you’ve got that on something else. If you miss it live, it should be up as a podcast Wednesday afternoon (audio and/or video). And of course - we’ll cover whatever Apple announces right here on Thursday.
New Stats Make iPhone Look Unstoppable in U.S.
06 SEPTEMBER 2022 - Headed into new iPhone week, an absolutely insane stat from market tracker Counterpoint Research. A piece from the Financial Times has the firm saying that iPhone accounted for over half of smartphones in the U.S. last quarter. The numbers aren’t tied to sales for the quarter. Rather, Counterpoint seems to have been looking at active devices running iOS versus Android. According to the Financial Times:
This is a wider and more meaningful category than new phone shipments, which fluctuate from quarter to quarter (…)
The active installed base takes into account the millions of people brought into Apple’s ecosystem through the used phone market, as well as those who use iPhones purchased years ago.
We’ll come back to that used phone market in a bit.
How Many Gs?
As far as new phones on the near horizon, CNET ran a report Monday predicting a surprising killer feature for iPhone 14: 5G. Yes - writer Ian Sherr knows that iPhone has had 5G for a couple of years now. “But increasingly,” Sherr writes:
…data is piling up that indicates 5G wireless is becoming nearly as important in today's iPhones as battery life and storage, the two features people watch out most for when buying their phones.
The piece seems to move back and forth between “people are going to upgrade for 5G” and “people upgrading are going to get 5G anyway.” He points to the perennial assertion from Wedbush analyst Daniel Ives - that:
…about 240 million of the 1 billion iPhones being used worldwide haven't been upgraded in the past three-and-a-half years and thus aren't running on 5G networks.
They are ripe for an upgrade. That means they are likely to make the 5G leap, and soon.
Perhaps you’re thinking, “In this economy?” Well, “yes” is the thinking of Lopez Research principal Maribel Lopez. The CNET piece has her arguing:
If you're going to buy a smartphone, you're going to buy the best you can at a certain price point… People have to make serious choices when they're looking at 30% increases in food costs and doubled gasoline prices… No one, unless you need a value phone, would buy a 4G phone today…
Got Anything Less Shiny?
This looks like a job for that used phone market to which I said we’d come back. A piece from ZDNet points out that:
That second-hand market effectively creates an alternative affordable on-ramp to the Apple ecosystem for people who might otherwise buy a mid-range Android handset.
That same ZDNet piece cites numbers from CCS Insight that fold in nicely with Wedbush analyst Ives’ assertions. CCS “found that 1.3 billion phones will reach their first end-of-life in 2022.” While around half of those will end up landfill or at the back of a drawer, a growing percentage will find itself on the second-hand market. According to ZDNet, “iPhones make up over 80% of this ‘circular’ economy, thanks in part to what CCS calls the ‘high residual value’ of iPhones.”
That takes us back to Counterpoint’s count putting iOS on over half the smartphones in the U.S. Commenting on that stat, Counterpoint research director Jeff Fieldhack said:
Operating systems are like religions — never significant changes. But over the past four years the flow has consistently been Android to iOS… This is a big milestone that we could see replicated in other affluent countries across the globe.
Seeming to agree is CCS Insight analyst Ben Wood. The Financial Times piece had him saying:
It’s not that we are seeing a big year where Apple grows its market share 10 or 15 per cent, but there’s this slow burn where they quietly just grab more share every year.
Wood went on to say:
[Apple CEO Tim] Cook has taken what Jobs gave him and has built an empire out of this… Because anyone who buys an iPhone — whether it’s second-hand, third-hand, or fourth-hand — will probably give Apple some money buying apps, paying for iCloud, using Apple Music, or transacting on Apple Pay. And that’s a model that no one else, really, has been able to replicate.
Worth noting: All of that is practically independent of anything Apple does with iPhone 14 hardware. Simply introducing a new phone practically guarantees growth for iOS, which practically guarantees growth for Apple’s Services segment.
Which - as I indicated at the start - is absolutely insane.
Report: Verizon Adding Apple One Subscription to High-End Wireless Plan
06 SEPTEMBER 2022 - Another carrier appears to be adding to Apple’s Services story. I told you last week of T-Mobile adding an Apple TV+ subscription to its top-tier wireless plan. Now a piece from MacRumors says:
Verizon plans to become the first U.S. carrier to include Apple One as a free perk with an eligible plan alongside the launch of iPhone 14 models later this month…
Nothing official on that. MacRumors attributes the news to “information obtained by [the site] from a carrier source.” If it comes to pass, Verizon will be first in the U.S. and (it seems) second in the world with Apple One as an add-on. Last month we heard word that UK carrier EE was adding the Apple One individual tier to its revamped “Full Works for iPhone” wireless plan.
MacRumors: Series 7 and Series 3 of Apple Watch Dry Up on Apple Site
06 SEPTEMBER 2022 - As new Apple hardware makes its way to the world, MacRumors is tracking interesting trends in a couple of aging wearables. Not surprisingly, a couple of models appear to be drying up. The site says both Apple Watch Series 7 and Apple Watch Series 3 are in the “going, going” phase of disappearance. On the more recent watch the site says:
Apple Watch Series 7 models are currently widely unavailable from Apple's online store, with only a handful of model and watch band configurations available to order as Apple clears stock of existing models to make way for new Apple Watches [this] week.
As for the older of the two, MacRumors says, “Apple Watch Series 3 models are finally selling out on Apple's online store around the world, just days before the line is expected to be discontinued.”
All of this as Apple watchers anticipate at least a couple of new Apple Watch models at tomorrow’s “Far Out” media event. Watch watchers are looking for the introduction of Apple Watch Series 8, as well as some sort of rough-and-tumble, sports-centric, Pro model or something. We’ll find out more tomorrow.
Morgan Stanley: Institutional Investors Still Light on Apple Shares
06 SEPTEMBER 2022 - Pat Benatar sang, “Love is a Battlefield.” Morgan Stanley analyst Erik Woodring says, “Apple's stock remains a battleground…”
I don’t know. Maybe if he sang it.
Apple 3.0 ran part of a note Woodring wrote late last week. Therein he said, “Apple's stock remains a battleground amongst investors, with bulls” being all for it, and bears being all bearish. He’s also picked up where his predecessor, Katy Huberty, left off - arguing that “institutional investors are positioned neutral/negative” on Apple shares. As a reminder, the site Investopedia says:
Institutional ownership is the amount of a company’s available stock owned by mutual or pension funds, insurance companies, investment firms, private foundations, endowments or other large entities that manage funds on behalf of others.
While Huberty noted a slight uptick in institutional investment in Apple this time last year, it was still low as far as she was concerned. Now, Mr. Woodring picks up the next verse. It’s cool though. Leaves room for upside, seems to be his thinking. Quoting his note:
…we still believe that institutional investors are positioned neutral/negative, and any positive surprises on iPhone pricing, new features, carrier/channel subsidies and/or other products launched can help shares re-rate towards our $180 price target.
Mr. Woodring has an “Overweight” rating on Apple shares.
OKC Apple Store Petitions to Unionize
Apple Penn Square - Image via Apple
06 SEPTEMBER 2022 - The fight to unionize Apple Retail has turned up in the nation’s heartland. Bloomberg says employees at Apple Penn Square in Oklahoma City “petitioned Thursday to unionize their store…” The report says workers “filed a petition with the National Labor Relations Board seeking a vote on joining the Communications Workers of America union.” CWA says about 70% of the store’s eligible employees have already signed up with the union.
Apple Nabs Five Creative Arts Emmy Awards
06 SEPTEMBER 2022 - Awards don’t come in seasons anymore. They come in waves. And the next wave is upon us. Congratulations this week to “Schmigadoon!” and “Severance,” and a tactful silence for our friends in Richmond.
The Creative Arts Emmys were held over the weekend, and Apple Insider says Apple snagged five. I mentioned a couple of winners, though the piece says four Apple TV+ titles shared in the five awards. And the awards went to:
“Severance” picked up two - one for Outstanding Main Title Design, and the other for Outstanding Music Composition for a Series
“Schmigadoon!” grabbed the award for Outstanding Original Music and Lyrics for the first-episode song “Corn Puddin’”
“Home Before Dark” won the award for Outstanding Motion Design
“Carpool Karaoke: The Series” picked up the award for Outstanding Short Form Comedy, Drama or Variety Series
Perhaps the biggest surprise of the night, “Ted Lasso” - nominated for 11 Creative Arts Emmys went home with none. Plenty of time, though. This awards wave is nowhere near cresting. Next up - the Primetime Emmy Awards. Apple is up for 52 of those, with 20 nominations for “Ted Lasso” alone. Those will be handed out next Monday 12 September.
BofA Analyst Issues Positive Note Ahead of “Far Out” Event
02 SEPTEMBER 2022 - New iPhones expected, have you heard? BofA analyst Wamsi Mohan has. Both Apple 3.0 and Yahoo! Finance have Mr. Mohan putting on his thinking cap where the iPhone 14 line is concerned. Apple is expected to announce that at next Wednesday’s “Far Out” media event, along with new models of Apple Watch and who knows what else? Also, who cares what else? As far as many are concerned, the event and Apple itself are all about iPhone.
As far as Mr. Mohan is concerned, next week’s event isn’t even about iPhone, but about how much the next iPhones will cost. “In our opinion,” says the analyst’s note, “iPhone pricing is the main focus item for investors followed by timing and cadence of the launch and any news on pricing/bundling.” Seriously - barely a mention of the hardware, except to say “new hardware.”
On “timing and cadence,” if iPhone 14 launches on 16 September (two Fridays after the “Far Out” event), “there would be 9 ship days in F4Q22 for the new phones…” That’s better than the two-days iPhone 13 got, according to the analyst, and more normal for iPhone releases. On “pricing,” Mohan thinks the consumer end will keep the same starting price this year as last, while Pro phones could start a few bucks higher. Quoting his note:
…with an inflationary backdrop, Apple could choose to increase the price of the Pro models (high end consumer less sensitive to price) and leave the lower end models unchanged. If Apple were to raise pro-model prices by $50, we est. a $0.20 EPS tailwind.
I said earlier that all analysts care about is iPhone, where Apple is concerned, and that all Mr. Mohan cares about is the price. I was just being glib. Not only did Mohan use Thursday’s note to reiterate is “Buy” rating on Apple shares, he also listed several reasons why he’s a fan. They include (but are not limited to):
Great expectations for iPhone upgrades in FY2023, “driven by the need for higher connectivity which will enable new AR/VR applications…”
“Higher growth in services revenues”
“Continuing strong capital returns”
Ans expectations that Apple shares will “outperform in a broader market down cycle”
He’s got a “Buy” rating on the shares, as I say. His price target on the shares is $185.
Ming-Chi Kuo: Indian iPhone 14 Production to Lag China by ~6 Weeks
02 SEPTEMBER 2022 - New iPhones expected, have you heard? TF International analyst Ming-Chi Kuo has, and he has thoughts on manufacturing - specifically, iPhone 14 manufacturing in India. It’s going to be a few weeks later than he initially thought. In early August the analyst hit Twitter with a surprise prediction, saying:
My latest survey indicates Foxconn's iPhone production site in India will ship the new 6.1” iPhone 14 almost simultaneously with China for the first time in 2H22 (India being one quarter or more behind in the past).
To his credit, he linked to that Twitter post when posting his new expectation, rather than pretending the old one never happened - points to Young MC. “[Update],” began his Twitter post on Thursday:
…The iPhone 14’s mass production schedule in India this year is still about six weeks behind China, but the gap has improved significantly. Therefore, it is reasonable to expect that India and China will be able to produce the new iPhone 15 at the same time next year.
I now take back the points awarded a moment ago for causing me to mention iPhone 15 before iPhone 14 is even announced.
Samsung Ad Mocks iPhone 14 Ahead of iPhone 14 Announcement
02 SEPTEMBER 2022 -New iPhones expected, have you heard? Samsung has, and it’s mocking the new phones already. Apple Insider writes up a 30-second spot posted by the South Korean electronics giant. It basically says that all of the innovation in smartphones rests not in the next iPhone but in phones made by Sammy. That includes the company’s “100x ‘Space Zoom,’” its 108-megapixel camera, and the fact that some of its phones fold.
For showing off their phones, the ad’s really not the worst. I still don’t want a folding phone, but the shots of the moon were pretty… pretty. That said: The ad mentions Apple by name once and iPhone by name once and alludes to Apple’s upcoming event. Seems kind of weak, but even that’s not the worst ploy. We wouldn’t be talking about the cool things in a Samsung phone if Samsung hadn’t mentioned Apple a couple of times.
If you want to see the ad, it’s up now on YouTube. And something really unusual for YouTube - the comments on the ad are actually kind of insightful. Or they were when I checked them Thursday afternoon.
Apple Card/Nike Promo Doubles Cash Back Through 15 October
02 SEPTEMBER 2022 - If you’re rockin’ an Apple Card and need something from Nike, now is the time of your life. A piece from 9 to 5 Mac says the the two companies are teaming on a cash back promo. “When shopping at Nike stores, online, and in-app,” the piece says, “Apple Card holders can earn an impressive 6% cash back on their purchases when using Apple Pay.”
That is double the cash back one would normally receive. While “Apple Card generally offers 1% cash back on all purchases,” according to the report, “2% on all Apple Pay purchases, and 3% on purchases made with Apple itself,” a number of outside vendors have 3% cash back offers through Apple Card. Nike is one, along with Panera Bread, Walgreens, Ace Hardware, and others.
The double your fun Apple Card/Nike promotion is on now. It runs through 15 October.
MacRumors: Several iPods to Hit Obsolete Status at End of Month
02 SEPTEMBER 2022 - I owned two iPods before iPhone came out: One of the old ones with the blue-ish screen and one of the first iPod videos. Got an iPhone and never looked back, and yet - there is something sad about the old machines being put out to pasture. And it’s about to happen again. A piece from MacRumors says - at the end of this month:
Apple will designate several iPod models, including the last iPod nano, select models of the last iPod shuffle, and models of the fifth-generation iPod touch as obsolete (…), marking the end of eligible hardware service repairs worldwide.
Tons of ‘em on eBay still. Maybe I’ll get myself one for Christmas.
Case Against Apple TV+ Series “Servant” Cleared for Jury Trial
Rupert Grint in “Servant,” now streaming on Apple TV+
02 SEPTEMBER 2022 - Unless a settlement is reached, the case against Apple and the creators of the series “Servant” will go to trial. Back in early 2020, filmmaker Francesca Gregorini sued the group, saying the the series, created by M. Night Shyamalan and Tony Basgallop, not only stole plot points from her film, The Truth About Emanual, but imitated its cinematography and production style as well. Her case was dismissed later that year, though she won an appeal of that dismissal earlier this year. Now, a piece from Apple Insider says a judge has denied Apple’s request for summary judgement. Gregorini’s attorney is quoted in the report saying, “This ruling says that Francesca's case is strong enough to make it through the gate, to be decided by a jury of one's peers.”
Southwest Pilot Nearly Cancels Flight Over AirDrop Cyberflashing
02 SEPTEMBER 2022 - Did you hear about the flight that was nearly cancelled over AirDrop? Cult of Mac has word of a Southwest pilot who warned passengers (in true dad fashion) that he would turn this plane around and nobody would go to Cabo San Lucas if whoever was sending nudes to everyone with AirDrop open didn’t knock it off.
It’s not quite as drastic as I make it sound. The plane was not in the air yet. According to the Cult:
The Southwest flight was still on the ground when passengers began to complain of receiving unwanted nudes on their iPhones via AirDrop. It got bad enough that the pilot had to step in.
A TikTok of the pilot admonishing the miscreant had him saying:
If this continues while we’re on the ground I’m gonna have to pull back to the gate, everybody’s gonna have to get off and we’re gonna have to get security involved, and your vacation is going to be ruined… So folks, whatever that AirDrop thing is, quit sending naked pictures and let’s get you to Cabo.
See? He actually did threaten to turn the plane around.
There are all kinds of reasons to not leave AirDrop open, which does not make it okay for the idiot who was being idiot to be an idiot. “It’s called cyberflashing,” according to Cult of Mac, “and can result in criminal prosecution in the United States and abroad.” That said, you can protect yourself. Go to Settings on your device, then General, then AirDrop. Once there, you’ve got three choices: Receiving Off, Contacts Only, or Everyone. Just know what you might encounter if you choose that last one.
Now let’s get you to Cabo.