KeyBanc Expects Better Than Average Hardware Growth for Apple Q1
One of the folks at one of the banks has been eyeing credit and debit card transactions, and seeing good things for Apple. On Tuesday, Benzinga wrote up part of a note from KeyBanc Capital Markets analyst Brandon Nispel. He’s had a look at his firm’s Key First-Look Data, or KFLD. That “consists of spending data from over 1.8 million unique KeyBank credit card and debit card customers in the U.S. but not international figures,” according to the report. And that shows serious buying over the holidays.
Apple CFO Luca Maestri set strong expectations for the holiday-quarter. On the last earnings call, he said the company expected every category except for iPad to beat revenue for the same quarter a year earlier. And yet, Benzinga says the Street’s expecting “a below-typical seasonal growth quarter” due to tough compares with the holiday-quarter of 2020. Checking transaction statements, Nispel’s siding with Maestri. Looking at the KMFDM… I’m sorry, the KLF? Anyway - the info he’s seen indicates an “18% sequential growth in the fourth quarter, stronger than the previous three-year average of 13%,” according to the report. "For the quarter,” wrote the analyst, “the data tells us we should expect slightly better than historical growth for Hardware in the upcoming quarter.”
It’s not just about how Apple did, though. Nispel sees the anticipated holiday numbers as a good sign for things to come. The analyst says the sales have led to “increased confidence that despite supply constraints, Apple's U.S. hardware growth should remain strong…”
KeyBanc has an “Overweight” rating on Apple shares. The firm’s price target on the shares is $191.
Sacconaghi Stays Underwater with New AAPL Price Target of $170
An Apple analyst of note raised his price target on Apple shares on Tuesday. Not sure why he’s an Apple analyst of note at this point. His targets have been trailing Apple’s share price for years and they pretty much still are. I am referring, of course, to Bernstein Research analyst Toni Sacconaghi.
The Fly ran the shortest of blurbs on Sacconaghi’s move. Quoting half of it:
The analyst believes Apple benefited significantly from the pandemic, and sees risk of more muted earnings growth over the next few years.
He missed the pandemic growth, for what it’s worth. He’s holding his “Market Perform” rating on Apple shares. He did up his price target though. It was $132. It is now $170. Apple shares closed Tuesday at $175.08.
Foxconn iPhone Plant in India Starts Process of Reopening
Foxconn’s problem iPhone factory in India is set to open up again. You remember the one - scene of some serious food poisoning, which led to hospitalizations, which led to protests, which led to arrests, all of which led to Apple investigating the factory, which led to the company finding overcrowded living quarters, toilets with no running water, and - according to one village-level administrator, “no safeguards to prevent COVID-19 infections,” all of which led to Apple putting the plant on probation. An Apple spokesperson said at the time that the company was “working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented,” and “rapidly” was apparently the key word. Well, a key word. Hopefully “corrective” was the key word.
Fingers crossed. 9 to 5 Mac cites a Reuters report that says, after two-weeks dark, the Foxconn facility is firing up again today. Not that everything is hunky-dory. The plant is still on probation as far as Apple’s concerned. The Reuters report says reopening will go slow, with no more than 100 folks back in action. Full tilt, the plant employs about 17,000 people. The piece has Apple saying in a statement that workers “will start to return gradually as soon as [Apple is] certain [its] standards are being met in every dormitory and dining area,” hence the hundred-people to start back. Someone said to know something about something tells Reuters, it could take the plant “more than two months to resume full production.” For its part, Foxconn is quoted in the piece, saying:
We have implemented a range of corrective actions to ensure this cannot happen again and a rigorous monitoring system to ensure workers can raise any concerns they may have, including anonymously.
Confusion Continues Around EE, T-Mobile, and Private Relay Problems
Following up on T-Mobile and others blocking the use of Private Relay here in the states and in the UK - no they’re not say (checks notes) people on Twitter. It seems CRAZY to base something like this on people on Twitter, but they seem to be what we have now.
Recapping what we heard earlier this week, four carriers in Europe wrote to the European Commission asking the Commission to block Apple’s implementation of Private Relay. Meant to keep carriers from scoping the sites a user visits, targeting them with ads, and selling their info - the carriers argued that Apple’s Private Relay could undermine Europe’s “digital sovereignty” and make the carriers own networks not run as efficiently. While T-Mobile was among the carriers asking permission “over there,” a piece from 9 to 5 Mac said it appeared that carriers such as T-Mobile and EE had “already started blocking Private Relay usage when connected to cellular data” in the UK, and that T-Mobile was also starting that process here in the states. Affected users were reportedly getting a message, saying:
Your cellular plan doesn’t support iCloud Private Relay. With Private Relay turned off, this network can monitor your internet activity, and your IP address is not hidden from known trackers or websites.
For its part, T-Mobile said that was not blocking Private Relay, and that the only customers blocked from using service were the ones who’d applied some sort of content filtering service through the carrier.
We take you now to the digital town hall/screaming match that is the Twitterverse. Shaun Jenks on Twitter replied to the 9 to 5 Mac piece, pointing out that T-Mobile actually hasn’t been a thing in the UK for about 10-years, so they can’t really be blocking things in the UK. That prompted a response from Kindred98, who piled onto 9 to 5 Mac, saying, “FYI: not sure where 9to5 get their info from, but EE doesn’t block it.”
“Au contraire, mon frère,” replied Mr. Jenks, saying:
Well they do for some. Same as Vodafone does for some but works fine for me. However I don’t think it’s the carriers doing this. I think it’s to do with IP Tracking settings in the cellular data section of settings.
“Not that they are likely to tell the truth,” put in Kindred98, “but EE support tells me it’s fully supported + even has a guide on how to use it.”
What led me to that whole exchange was a comment from Bloomberg’s Mark Gurman - apparently quoting T-Mobile here in the states. They’re said by Gurman to have said:
Overnight our team identified that in the 15.2 iOS release, some device settings default to the feature being toggled off. We have shared this with Apple. This is not specific to T-Mobile. Again though, we have not broadly blocked iCloud Private
Gurman then directed followers to Monday’s 9 to 5 Mac piece for more information, though that had not been updated since the T-Mobile statement about content filtering. It would have been really neat of Mr. Gurman to elaborate - like indicating which feature defaulted to being toggled off. MacRumors thinks it knows. They read Gurman’s statement as T-Mobile indicating that something in iOS 15.2 is toggling Private Relay off. But wouldn’t that just leave a toggled switch, rather than a message that says “your carrier doesn’t play that way”?
It’d be really cool if Apple would say something about all of this. I’ve reached to to them, though pennies tossed in a fountain have yielded more concrete responses than I’ve ever gotten from Apple.
Reports Have Apple Testing Danish and Norwegian on HomePod mini
Image via Apple
It seems Sweden’s not the only new land being eyed for HomePod mini. I told you earlier this week of reports of test units being sent to Swedes, with the obvious conclusion being that Apple’s sorta-smart speaker will be offered there in the foreseeable future. Well there may be plenty more where that came from. Or, where it’s going. Or in the same general vicinity.
MacRumors says it’s hearing of tests underway for Danish and Norwegian, in addition to the aforementioned Swedish testing. “Based on these reports,” the piece says:
…it’s likely that Apple is planning to launch the HomePod mini in several Nordic countries this year, including Sweden, Denmark, and Norway. Siri already supports Swedish, Danish, and Norwegian on iOS, but Apple is still testing these languages on the HomePod mini to ensure it provides the best experience possible.
The site sees releases in Belgium, the Netherlands, Russia, and Switzerland as probable as well. MacRumors points out that “the speaker gained support for languages spoken in those countries as part of a software update released in December.”
Beats Fit Pro Hitting Canada, Europe, and Japan by End of January
Image via BeatsByDre.com
More concrete than the anticipated HomePod mini expansion, news that Beats Fit Pro are hitting new markets in the next couple of weeks. Seen by many as a worthy competitor to Apple’s own AirPods, a piece from Engadget says:
Beats Fit Pro have most of the key features found in Apple’s third-generation AirPods, including hands-free Siri, Adaptive EQ and spatial audio with head tracking. Beats added active noise cancellation (ANC), as well as a flexible wingtip designed to keep the Fit Pro in your ears during workouts.
Available in the U.S. since the first week of November, Engadget says Apple will start taking orders for Beats Fit Pro in Canada and Europe on Monday 24 January. Orders are expected to start in Japan one day later - Tuesday 25 January. They’re set to ship just a few days later, plugging people’s earholes on Friday 28 January.
If you’re curious about Beats Fit Pro, by the way, The NosillaCast Podcast’s Allison Sheridan recently bought a pair to replace her AirPods Pro. You can read her thoughts on her blog at PodFeet.com.
Dr. Franziska An der Gassen Joins Apple TV+ in Germany
Image via LinkedIn
Apple TV+ has made a hire for Europe. Variety says award-winning producer Dr. Franziska An der Gassen has signed on as a creative exec for Germany, answering to the streamer’s creative director for Europe, Jay Hunt. “Throughout her 25-year career,” the piece says:
…An der Gassen has produced, developed and co-produced more than 50 films and TV series, including “Grumpy Olaf” (“Mein Freund, das Ekel”), “Mary” (“Ihr Name war Maria”), “A Matter of Size” (“Sumo – Eine Frage der Größe”),“Thailand – To Die For” (“Die Diva, Thailand und wir”), “Xmas for Beginners…”
…and that list just keeps going. No word on what exactly she’ll be doing for Apple, though with a quarter-century in the business, a case full of trophies, and a list of titles as long as your arm, my money’s on more of the same.
Apple and Imagine Entertainment Tie Up on “The Beanie Bubble”
Image via ty.com
Apple’s added a big, weird sounding film to its future plans. The Cupertino-streamer issued a press release Tuesday announcing The Beanie Bubble, apparently chronicling the late-20th century craze that was Beanie Babies. According to the release:
“The Beanie Bubble” is inspired by the story behind one of the biggest speculative crazes that blazed through American culture in the ’90s. It pulls back the curtain on the absurdities and injustices of the American Dream — particularly the female relationship to it. It’s a celebration of the women who helped power Ty Warner’s success, whose strengths and good instincts shaped and amplified the phenomenon, but whose names are not on the Beanie Babies’ heart-shaped tags.
Based on the book “The Great Beanie Baby Bubble: Mass Delusion and the Dark Side of Cute,” Zach Galifianakis, Elizabeth Banks, Sarah Snook, and Geraldine Viswanathan are set to star. Written and co-directed by “Saturday Night Live” and “Futurama’s” Kristin Gore, the other director is OK Go’s Damian Kulash. This is the first film green-lit as a result of the first-look deal between Apple and Imagine Entertainment for scripted films, according to the release.
Did I not say that the film was both big and weird sounding?
New Showrunner and Third Season Announced for “The Morning Show”
Image via Apple
“The Morning Show” is coming back for a third season, and it’s bringing a new showrunner with it. Apple issued a press release earlier this week announcing the renewal of the Jennifer Aniston/Reese Witherspoon/Billy Crudup/Mark Duplass and tons of other people drama. The new showrunner and executive producer is Charlotte Stoudt. With such shows on her CV as “Fosse/Verdon,” “Homeland,” and “House of Cards,” Stoudt’s time on “The Morning Show” starts a multi-year overall deal for scripted TV series with Apple TV+.
“The Sky Is Everywhere” Hits Apple TV+ on 11 February
The Sky Is Everywhere is almost here, according to iDownloadBlog. Based on the best-selling Jandy Nelson young-adult novel of the same name, Apple says the film tells the story of “17-year-old Lennie Walker, a radiant musical prodigy, [struggling] with overwhelming grief following the sudden loss of her older sister…” She falls in love, though that’s complicated by her relationship with her sister’s former boyfriend. “Through her vivid imagination and honest, conflicted heart,” says Apple, “Lennie navigates first love and first loss to create a song of her own.”
This is the second scripted film co-produced by Apple and A24, the first being the Bill Murray/Rashida Jones flick On the Rocks. The Sky Is Everywhere is on Apple TV+ beginning Friday 11 February.
Apple Drops Trailer for “Suspicion” Ahead of 4 February Debut
Image via Apple
Apple has dropped a trailer and a premier date for the Uma Thurman thriller series “Suspicion.” Describing the series, a press release from Apple says:
When the son of a prominent American businesswoman (Thurman) is kidnapped from a New York hotel, the eye of suspicion quickly falls on four seemingly ordinary British citizens who were at the hotel on the night in question. As they find themselves in a trans-Atlantic cat and mouse race to evade the combined forces of the National Crime Agency and the FBI to prove their innocence, it becomes apparent that not everyone can be trusted. Who is really behind the mysterious abduction, and who is only guilty of being in the wrong place at the wrong time?
While Thurman may be the show’s biggest star, she’s not the only one. Other members of the cast include Kunal Nayyar (“The Big Bang Theory”), Noah Emmerich (“The Americans”), Georgina Campbell (“Black Mirror”), Elizabeth Henstridge (“Agents of S.H.I.E.L.D.”), and that list goes on as well.
The first two episodes of “Suspicion” hit Apple TV+ on Friday 4 February. Other episodes land one-per-week on following Fridays. Between now and then, you can catch a trailer for “Suspicion” below.
Apple Polishing Cloth Back In Stock in Online Store
Apple has first hand knowledge of something like the The Beanie Bubble. No, I’m not talking about the way iPhones and Apple Watches fly off the shelves and play hard to get. I’m talking about the Apple-branded microfiber Polishing Cloth the company introduced back in October. “Made with soft, nonabrasive material,” Apple’s description says, “the Polishing Cloth cleans any Apple display, including nano-texture glass, safely and effectively.”
Hardly sounds like a barn burner. But you know how some things just catch the public’s attention at just the right time? Pet rocks… Cabbage Patch Kids… Beanie Babies… Last fall, Apple’s $19 Polishing Cloth turned into one of those. Sales started in October and, almost immediately, the things sold out. For months. But, it’s been months, and the things are back in stock. While the Polishing Cloth does not seem to be available in stores right now, a piece from MacRumors says it is available to order from Apple’s site, with delivery promised in days, not weeks. As of this writing, ordering one from Apple’s site would have it buffing my display (nothin’ kinky) by Friday 14 January.
Apple Will Facilitate Alternative Payments Methods for South Korea App Store
Image via Apple South Korea
It looks like Apple’s fight against alternative payment methods for the App Store is over in South Korea. Apple Insider says it seems Apple’s giving in and will allow payment methods besides its own in the store. “In September,” says the report:
…South Korea passed a law that would forbid app store operators, such as Apple and Google, from requiring developers to utilize first-party payment systems for in-app purchases.
Now, the piece has Apple indicating that it will go along with the law - though how and when remain mysteries. The piece has The Korea Herald quoting a statement from Apple. That had Apple saying:
We look forward to working with the [Korea Communications Commission] and our developer community on a solution that benefits our Korean users… Apple has a great deal of respect for Korea's laws and a strong history of collaboration with the country's talented app developers. Our work will always be guided by keeping the App Store a safe and trusted place for our users to download the apps they love…
The piece indicates that Apple “will provide an alternative payment system at a reduced service charge as part of [its] compliance plans…” Again though, the hows of the thing are still unknown. “The plans did not provide a date as to when the policy would take effect,” according to Apple Insider, “nor did it disclose what the reduced service charge would be.”
Report: Apple and MLB in “Serious Talks” Over Broadcast Deal
I am not a baseball fan. Nothing against it, just not a huge fan of it. Got into football for a season or two. Got really into hockey for a while. Took an interest in boxing for about five-minutes in the mid-90s. Baseball just never grabbed my attention.
I say all of that to let you know that when I cover a baseball story, it’s not because I care about baseball. I do not. But this could be a huge story for Apple and its Services business. The New York Post ran a report Monday, saying that Apple is in “serious talks” to broadcast Major League Baseball games.
It’s not like Apple would be the exclusive home of Major League Baseball. According to the Post:
The package MLB has been attempting to sell is weekday national games that ESPN recently relinquished. ESPN will no longer have regular Monday and Wednesday games. The ESPN games were not exclusive in local markets. It is unclear at this point if Apple would be allowed to wall off these select games from regional sports network coverage or not.
The report likens the potential Apple deal to one between Amazon and the National Football League. That deal is seen by the Post as bigger than this rumored deal, since it’ll see Amazon “become the exclusive home of NFL ‘Thursday Night Football’ in the fall.” That deal apparently cost Amazon “more than a billion dollars per year,” according to the piece. It’s thought that the MLB on Apple arrangement would cost Apple less.
Both Apple and MLB declined to comment for the Post piece.
Apple Sings Praises of Apple Services
Image: Apple
If the rumored deal between Apple and Major League Baseball ends with games on Apple TV+, it would be a nice addiction to Apple’s Services business. That side of the Cupertino-company got a lot of virtual ink from Apple on Monday before the South Korea story. The company issued a very long press release, singing the praises of various services, as well as for the segment as a whole. Quoted in the release, Apple’s senior vice president of Services Eddy “the Butler” Cue, who said:
With over 745 million paid subscriptions, Apple continues to connect the world’s developers, artists, and storytellers with users across more than a billion devices, delivering powerful tools, content, and experiences that enrich their lives in profound ways every day.
Message for creatives - We are where the paying customers are.
Message for shareholders - This just keeps happening.
A piece from MacRumors picked out a few other pertinent points:
Developers selling digital goods and services have earned more than $260 billion since the App Store launched in 2008, setting a new record for yearly earnings. The figure stood at over $200 billion a year ago.
App Store customers spent more than ever before between Christmas Eve and New Year's Eve in 2021, with double-digit growth over the same year-ago period. Apple did not disclose a specific dollar amount.
As for strengthening Services, MacRumors has Apple saying that:
iPhone and Apple Watch users will be able to add their driver's license or state ID to the Wallet app in participating U.S. states later this year.
Apple Music plans to launch a dedicated classical music app later this year after acquiring classical music service Primephonic last year.
3D Apple Maps will be available in Montréal, Toronto, and Vancouver later this year.
Also - Apple’s press release says, “2021 was the year that podcasts became an undeniable global phenomenon.” I’d have argued that that happened in 2005 when Apple basically took over podcasts, only to do next to nothing with it for a decade and a half.
But why quibble?
Uber Drops Support for Apple Watch App (But Not the App Itself?)
On the same day of praise for Services and the App Store, people have noticed that one sizable app has quietly slipped off of Apple Watch. MacRumors says the app for the ride hailing service Uber no longer works for hailing rides. In fact, it sounds like it doesn’t work for anything, even though one can still add it to Apple Watch. “Curiously,” says the report:
…Uber has not removed the Uber Apple Watch app from the App Store. The app is still able to be downloaded and installed on an Apple Watch, but opening it up reveals a poorly-worded message about dropped support, ending with a sad face emoji.
“Uber is now suggesting that Apple Watch users swap over to the iPhone app to request an Uber ride,” according to MacRumors.
The Telegraph: EU Carriers Seek to Stop Private Relay
Image via Unsplash
Four wireless carriers in the EU are trying to keep Apple from implementing Private Relay. Announced last year at WWDC, Apple’s site on the subject says:
Normally when a user browses the web, basic information related to their web traffic, such as their IP address and DNS records, can be seen by network providers and the websites they visit. This information can be used to determine the user’s identity and build a profile of their location and browsing history over time. A user can then be targeted with unwanted ads and marketing campaigns, or have their data combined with additional data and sold to other companies.
Private relay is meant to stop that, which probably explains why carriers would want to stop Private Relay. Harder to monetize anonymous shopping and surfing. But, telling government agencies you want to track people so you can sell their info might be a tough sell. And so, a piece from Apple Insider says T-Mobile, Orange, Vodafone, and Telefonica have written to the European Commission asking them to block Private Relay. According to the letter (written last August but just reported on recently by The Telegraph), Apple's service “will have significant consequences in terms of undermining European digital sovereignty.”
According to the dictionary on my Mac, the top two definitions of sovereignty are, “supreme power or authority” and “the authority of a state to govern itself or another state.” It honestly sounds like the kind of argument an intelligence agency or governing body might try. In fairness, it also sounds like the kind of argument a corporation might try, if they thought it might get them what they want. From corporations though, it sounds a bit disingenuous. “Furthermore,” the carriers went on to say:
…private relay will impair others to innovate and compete in downstream digital markets, and may negatively impact operators' ability to efficiently manage telecommunication networks.
No word on what response, if any, the EC has offered the carriers.
T-Mobile/Sprint May Be Blocking Private Relay Functionality in the U.S.
Silly, silly European carriers - asking permission to block a thing. A piece from 9 to 5 Mac indicates that T-Mobile/Sprint in the US has gotten around Private Relay by simply going around Private Relay. Actually, it sort of sounds like “Big Fuchsia” has done that both here and there. “In the UK,” says 9 to 5 Mac, “carriers including T-Mobile, EE, and others have already started blocking Private Relay usage when connected to cellular data.” Now, the site says, they’re doing that here, too. According to the report:
This means that T-Mobile and Sprint users in the United States can no longer use the privacy-preserving iCloud Private Relay feature when connected to cellular data.
When attempted, 9 to 5 Mac says the Settings app throws up an error message, explaining:
Your cellular plan doesn’t support iCloud Private Relay. With Private Relay turned off, this network can monitor your internet activity, and your IP address is not hidden from known trackers or websites.
So… your cellular plan doesn’t support you using it without them seeing what you’re doing. Once again - it used to be if you weren’t paying for it, you weren’t the customer, you were the product. Oh, what fun to be both. If you’re a T-Mobile/Sprint user who’s neither seen the message nor had any trouble surfing under Private Relay, give it a minute. According to 9 to 5 Mac:
The change does not appear to be network-wide just yet, but rather it appears T-Mobile is in the process of rolling it out. This means that some users might still be able to use iCloud Private Relay when connected to their cellular network – at least for now. The situation could also could vary based on your location or plan.
Or it could be a misunderstanding. A few hours after the initial story, 9 to 5 Mac got an update from T-Mobile. That had a spokesperson for the “uncarrier” saying:
Customers who chose plans and features with content filtering (e.g. parent controls) do not have access to the iCloud Private Relay to allow these services to work as designed. All other customers have no restrictions.
The only problem is, some of them seem to. Users who’ve reached out to 9 to 5 Mac as well as some of the site’s own staff have run into the Private Relay problem even with no content filtering enabled. They’re waiting to hear again from T-Mobile. Apple, meanwhile, does not seem to have commented on the issue.
Report: Testing Underway for HomePod in Sweden
It looks like HomePod mini is headed to Sweden in the foreseeable future. iMore says Apple has sent a few of the relatively smart speakers to testers there, ahead of an official release. The problem appears to be getting the thing to understand Swedish. According to a machine translation of a report from the Swedish-language website Teknivecka:
It all happens so that an external party that is not Apple sends out a HomePod mini to selected testers who will then integrate with Siri every day by saying a bunch of different phrases. So far, the Swedish support seems to be a couple of months away. The test has been going on for eight weeks and several of our sources say that Siri has difficulty answering several, fairly simple questions.
Well, they’re in Swedish, aren’t they?
Beats Exits Speaker Market as Apple Nixes Beats Pill+
As HomePod mini eyes other shores, Apple’s dropkicked one of its other standalone speakers. MacRumors says the Beats Pill+ Bluetooth speaker is gone daddy, gone. On the market since 2015, the piece says the unit has been pulled from Apple’s online store, though - as of this writing - there are a very few available on Amazon. “With the discontinuation of the speaker,” MacRumors says:
…the Beats line now focuses solely on headphones, and there is no longer a Beats-branded speaker option nor does Apple offer a battery-powered speaker.