Apple TV+ Buys “Cha Cha Real Smooth” at Sundance for $15 Million
Image via Sundance Film Festival
Apple TV+ has dropped a bit of bank at Sundance. Apple Insider says Apple’s TV arm has spent $15 million at the virtual festival for writer/director Cooper Raiff's Cha Cha Real Smooth.
The film showed during the festival - so it’s done. “In the can,” if you will, not “in production.” That could mean a quick premier on Apple TV+, though that wasn’t the way last year. During last year’s Sundance in January 2021, Apple bought the finished film CODA. It didn’t hit the streamer until August, though. While CODA cost $10 million more than Cha Cha Real Smooth, Apple Insider says the $15 million Apple spent was the biggest deal brokered during Sundance this year.
Apple TV+ Titles Nab Four Producers Guild Award Nominations
If it’s a day that ends in “Y,” it must be time for more award nominations for Apple TV+. The Mac Observer says the Cupertino-streamer is up for four Producers Guild Awards. Funny thing about the Producers Guild Awards, some of them have their own names. Or, some categories are named after a famous producer. And the Apple TV+ nominees are:
CODA – Darryl F. Zanuck Award for Outstanding Producer of Theatrical Motion Pictures
Come From Away – Award for Outstanding Producer of Televised or Streamed Motion Pictures
The Morning Show – Norman Felton Award for Outstanding Producer of Episodic Television, Drama
Ted Lasso – Danny Thomas Award for Outstanding Producer of Episodic Television, Comedy
The Producers Guild Awards will take place on Saturday 19 March, which I’m pretty sure is around the time the next awards season begins.
Apple’s Many Channels Celebrate Black History Month
Image via Apple
February is Black History Month, and Apple is focusing its many channels to celebrate the time. The Cupertino-company issued a press release last week, announcing several initiatives.
On Apple Music, episodes of the show “The Message” on the station Apple Music 1 will have Ebro Darden and guests contextualizing “contemporary issues around Black health and wellness,” and highlighting cultural achievements and contributions of Black people. Lots of playlists and music programming to check out as well, throughout the month.
Apple Fitness+ “will feature new workouts that pay tribute to Black History Month, including playlists dedicated to celebrating Black artists…” There will also be a couple of special meditations, dedicated episodes of “Time to Walk,” and “Time to Run,” and the Unity Challenge, about which I told you last week. That’s the one that awards animated stickers for Messages and a virtual medallion for closing your Move ring seven days in a row.
The company is apparently curating a special section of Apple Podcasts, dedicated to Black history. Similarly, Apple says Apple Books “is focusing on Black health and wellness by highlighting authors (…) who tackle these multidimensional themes.” The company says the “App Store is spotlighting a full range of apps that are enabling Black health and wellness in all areas of life, from financial to physical and mental well-being,” including Black-owned apps like Irth and AllTrails. Apple Maps is using its curated Guides to help people learn about locations significant to Black history, as well as find Black-owned businesses. The Apple TV App will feature “guest-curated collections by prominent Black creators and stars.” Apple News will highlight work by Black journalists.
And would it be a thing without something to sell? According to the press release:
Apple is launching a special edition Apple Watch Black Unity Braided Solo Loop and matching Unity Lights watch face inspired by Afrofuturism, a philosophy that explores the Black experience through a narrative of science, technology, and self-empowerment.
The Unity Lights watch face is beautiful. It’s available for Apple Watch Series 4 and later, and it’s free. Apple has similarly inspired wallpapers for iPhone, iPad, and the Mac available at apple.com/watch.
The Black Unity Braided Solo Loop is far from free. It’ll run buyers $99. Sales start Tuesday 1 February “in select Apple Store locations,” according to the release. They are also available to order now on Apple’s site.
Another Record Breaking Quarter for Apple
Image by Oskars Zvejs from Pixabay
What is your superlative of choice? Banner? Stellar? Cugat? Whatever your favorite, take it and apply it to Apple’s first-quarter fiscal year 2022 numbers. In its press release on December-quarter earnings, Apple claimed another “all-time revenue record.” In the process, the company blew past and bowled over Wall Street expectations. The Street had expected revenue of $118.3 billion. Apple delivered revenue of $123.9 billion, up 11% from the same quarter a year earlier. Wall Street had been looking for Gross Margin of 40.5%. Apple delivered 43.8%. The Street was looking for earnings-per-share of $1.89. Apple delivered earnings-per-share of $2.10.
Looking at Apple’s numbers, sales were up in every region Apple tracks except Japan. In the Americas they came in at $51.4 billion, up from last year’s $46.3 billion. Sales in Europe landed at $29.7 billion, up from last year’s $27.3. Sales in China hit $25.8 billion, up from last year’s $21.3. That slip I mentioned in Japan saw sales fall to $7.1 billion from last year’s $8.3 billion. As for the rest of the Asia Pacific region, sales came in at $9.8 billion, up from last year’s $8.2 billion.
Looking at product categories, iPhone saw sales of $71.6 billion, up 9% from the $65.6 billion seen in the same quarter a year earlier. Both Apple CEO Tim Cool and CFO Luca Maestri named that an all-time revenue record for the device. Crazy customer satisfaction as well. The latest from 451 Research shows satisfaction in the States at 98%.
The Mac saw sales of $10.8 billion last quarter, up 25% from the $8.7 billion grabbed for the same quarter a year earlier. Cook and Maestri also listed that as an all time revenue record for the category. The execs said December-quarter sales saw a record number of people upgrading from older Macs. During the Q&A with analysts, CEO Cook indicated that those upgrades are very much BECAUSE of Apple’s M1 processor. The execs also mentioned a time or two that the last six-quarters have been the best six-quarters in the Mac’s history.
Sales of iPad were down, which Apple had said would be the case. Supply constraints drove those down 14% from $8.4 billion a year earlier to last quarter’s $7.2 billion. Whether despite or because of the shortage, Apple said that demand for the tablet was strong across all models. The company also indicated that half of iPad buyers last quarter were new to the product.
The “and the rest” category of Wearables, Home, and Accessories saw sales of $14.7 billion, up 13% from the $13 billion seen the same quarter a year earlier. Say it with them - that represented an all-time revenue record for the category.
And the category Services set an all-time revenue record, performing better than Apple expected, according to CEO Cook. Sales came in at $19.5 billion, up 24% from the $15.7 billion in sales seen in the same quarter a year earlier. That was driven by all-time record revenues for cloud, music, video, advertising, and payments, as well as a December-quarter record for the App Store.
Paid subscriptions are still going crazy. Apple’s currently serving over 785-million paid subs across its services platforms. That includes Apple’s own services, like Apple Music, and third-party services, like the 98-VOD services to which I seem to be subscribed. In the last year, paid subscriptions have grown by 165-million, according to the company.
A crazy number of subscriptions, powered by a crazy number of devices. Apple says the number of active devices with Apple logos is now in the neighborhood of 1.8-billion units.
Even Retail had a remarkable quarter, despite the occasional closure due to #TheseTimesInWhichWeLive. It was that segment’s highest performing quarter in Apple’s history. Retail also saw the highest customer satisfaction in Apple’s history, prompting Apple’s CEO to shoutout the folks who made that possible.
As has been the way for a couple of years now, Apple did not provide financial guidance for the current quarter, though CFO Maestri did offer “directional insights,” based on the assumption that the world’s not gonna get any worse. Feels like tempting fate, but whatever. According to the CFO:
Apple expects to see year-over-year revenue growth and to set a March-quarter revenue record
The company expects constraints to ease in the supply chain
While revenue will grow, that growth is expected to slow for a couple of reasons - those being foreign exchange headwinds and a tough compare. Last quarter was the first full quarter of sales for iPhone 13. A year ago, the March-quarter was the first full quarter of sales for iPhone 12. That later launch last year led to heavier iPhone sales in the March-quarter, and there’s your tough comparison.
Services revenue is expected to grow, but that growth will also slow, driven by fewer lockdowns this year than last.
Gross Margin is indicated (though not guided) to be 42.5% to 43.5%.
Capping the prepared remarks, Apple’s CFO said the company’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. That goes out on 10 February to shareholders of record as of 7 February.
Questions & Answers with Analysts & Apple
After Apple’s prepared remarks on the Q1FY2022 Earnings call, it was time for Q&A with financial folk.
One number about which I was very curious got talked around on Thursday, though not talked about, exactly. Remembering Apple saying on the September-quarter call that headwinds and supply constraints had hit the company to the tune of $6 billion, and remembering that Apple had said that that number would be bigger last quarter, Evercore analyst Amit Daryanani wanted to know whether he’d missed what that number ended up being last quarter, and if he did - could they repeat it?
He didn’t miss it. And they wouldn’t give it. I seriously laughed out loud hearing Apple’s CEO say-say-say what he said, without answering what AD-Rock asked. His answer:
What we've said in terms of December and March was that it was very difficult to estimate with great precision constraints. But we said that they would be more than the Q4 or more than the September quarter. And we're saying that March will be less than the December quarter. And so that's the kind of verbiage that we place around it.
He didn’t get much further with his second question, though it at least prompted a philosophical response. Daryanani wondered how Apple decides where to throw its research and development money. The basic question: How much goes to evolving current products versus revolutionizing or creating whole new industries?
Not surprisingly, Apple’s CEO would not be tricked into announcing anything new. He did say that what Apple looks for is opportunities at the intersection of hardware/software/services. Rest your heads though. Apple’s CEO says, “there's quite a bit of investment going into things that are not on the market at this point as there always are.”
Raymond James analyst Chris Caso was curious about the sustainability and repeatability of iPhone growth. It wasn’t so long ago that growth seemed over for the device. 5G may have changed that story, but how does growth continue?
CEO Cook’s answer actually seems to be 5G. The install base is at an all-time high and growing. Last quarter saw record upgrades, and switchers from Android to iPhone in the strong double digits. And, while iPhone 13 is the second 5G enabled line of iPhones, we’re still in early innings where 5G is concerned. Looking at non-5G versus 5G models (a ratio Cook was not inclined to share), he said the company still has an optimistic view on iPhone, long term.
Jeffries analyst Kyle McNeely wanted to know what really happened to iPad. Did Apple sacrifice the product last quarter to make sure there were enough iPhones to go around?
A little, but not really seemed to be CEO Cook’s answer. The tightest point has been on legacy nodes, according to Cook. That’s a supplier thing, not an Apple thing. While they might not have pressed hard on iPad for the December-quarter, the real issue was supply constraint, which will be better this quarter.
Shannon Cross of Cross Research had questions about the Mac business, specifically where Apple was aiming for further growth.
Apple’s CEO indicated that growth is - basically - hitting from all sides. The Mac set all-time revenue records in the Americas, Europe, and the rest of Asia Pacific. It also set a December-quarter revenue record for greater China. In short, it’s not limited by geography. The Mac saw a record number of upgraders. Meanwhile, 6-out-of-10 people buying Mac in China last quarter were new to the platform. “Customer satisfaction is off the charts,” according to Cook, who added:
…what I see this as is a product that will be very successful in a number of different markets, from education to business to the creative industry and in all geographic markets.
Morgan Stanley analyst Katy Huberty had questions about 10-minutes from now and 10-years down the line. After two-years of disruption, is it time to rethink the supply chain? CEO Cook says no. The biggest problem has been those pesky legacy nodes, which would have been an issue no matter where the final product was built. As for where that is, it’s a short trip from where the chips are made to actually putting them in devices and getting those out the door. As he sees it, a fundamental change is not necessary.
As for the future, Huberty wanted to know Cook’s thoughts on the metaverse and Apple’s place in it. Calling that a “big question,” Cook said Apple is always exploring new technologies and he has spoken about how exciting and interesting the metaverse is. If you don’t remember that happening, he seems to be putting his past comments on augmented reality into that mix. Pointing out that Apple has 14,000 ARKit apps in the App Store currently, Cook said Apple sees “a lot of potential in this space and [is] investing accordingly.”
P Morgan analyst Samik Chatterjee had a question about subscription numbers about Apple TV+ that Tim Cook chose not to answer. Catterjee also had a question about Apple Pay, which the CEO did entertain. Asked about the biggest opportunities for Apple Pay, Cook said that Apple Card has “a great runway ahead,” and that the growth for Apple Pay has been “stunning.” There’s still a lot of cash out there, so he still sees room for growth. What I found interesting was his insistence that he wasn’t going to answer that question with news of new products. He started the answer by saying, “putting aside any kind of thing that sits on our roadmap for a second,” and ended by saying, Apple Card and Apple Pay look good for the future “whatever else we might do.”
Chatterjee didn’t ask about new products in payments, which made Cook’s “I won’t talk about new products in payments” insistence seem… odd. Then again, he might have been trying to divert from rumors about future updates allowing iPhone to take credit card payments with no need for a dongle.
While Chatterjee’s question about Apple TV+ subscriptions got the stiff arm, Piper Sandler analyst Harsh Kumar’s question about content did not. Has Apple’s emphasis on “socially responsible and healthy” content kept Apple from buying a studio when studios go up for sale? Or is that just a money decision?
Why does everybody want Apple to buy a studio? That wasn’t Cook’s answer. That’s my question. Cook’s answer was:
We don't make purely financial decisions about the content. We try to find great content that has a reason for being and we love shows like Ted Lasso and several of the other shows as well that have a reason for existing and may have a good message and may make people feel better at the end of it. But I don't feel that we've narrowed our universe of things we're selecting from. There's plenty to pick from out there, and I think that we're doing a pretty good job of it as we speak.
Have You Had Enough?
Was there more? Isn’t there always? If you just can’t get, just can’t get, just can’t get enough, you can stream a replay of the call on Apple’s Investor site. It is also available as a podcast. Grab it while you can, though. Apple only leaves the replays and podcasts up for a couple of weeks.
If you’re even more granular than that - I’m not sure whether they use a service or sit there and type feverishly, but iMore provides an invaluable service after every call. Anyway, I find it invaluable. For at least the past year - maybe more, they’ve been posting a transcript of the full call. If you want to read every word of what was said, head that way.
Apple Q1FY2022 Earnings Set for Today
Apple starts each fiscal year with a bang. That’s because the first-quarter of a given fiscal year for Apple corresponds to a calendar year’s holiday quarter. Adding a bit of weight, for over about a decade now, the December-quarter marks the first full quarter of availability for the latest round of iPhones - 2020 being a notable exception. Phones were late that year, thanks to COVID-19 disruptions. Today’s call should be a big call, is the point. That’s when Apple will discuss earnings and such for the December-quarter. Apple Insider has laid out a few expectations. According to the piece, Wall Street is looking for Apple to report:
Revenue of $118.3 billion
Gross margins of 40.5%
Earnings-per-share of $1.89.
While it was the first full quarter of iPhone 13 sales, other hardware will likely get a shoutout. Last quarter was the first full quarter of availability for Apple Watch Series 7. It also saw the introduction of the 14-inch and 16-inch MacBook Pros, powered by Apple’s own M1 Pro and M1 Max.
Expect questions and answers regarding the supply chain. You might also listen for a number bigger than “six billion.” “Back in the September quarter,” says Apple Insider:
…Apple noted that it had missed out on $6 billion of revenue because of semiconductor constraints and supply chain problems. Heading into the December quarter, Apple advised that it expected those supply headwinds could have a larger impact.
As we heard from a couple of corners on Wednesday, how Apple did last quarter is less likely to drive Apple shares in the weeks ahead than will sentiment from Apple execs. As Creative Strategies CEO Ben Bajarin posted on Twitter about tech as a whole, “Many investors need to hear management’s confidence in 2022 in order to be confident themselves.”
Are We There Yet?
And now - we watch the clock and wait. Numbers will hit Apple’s site after the close of trading at 1:30 Pacific/4:30 Eastern. The call with Apple CEO Tim Cook, Apple CFO Luca Maestri, and analysts of all stripes starts at 2PM/5PM… that fruitcake nobody wanted to be served after.
You can stream it as it happens on Apple’s Investor site. The company will make it available as a podcast soon after. Bloggers will Blog. Twitters will tweet. And we will hit highlights here, on Friday.
Apple Releases iOS 15.3 and iPadOS 15.3
Just about everything Apple makes got updates on Wednesday - updates of the bug squishing, security fixing kind. A site after my own heart, 9 to 5 Mac says Apple made iOS 15.3 available to users. I say it’s a site after my own heart because Apple actually released both iOS and iPadOS 15.3, a point the text of the article makes clear. They only mention the iOS update in the headline though. I assume that’s because they know - as do we all - that they’re really still the same operating system. But let’s not argue.
Apple’s release notes for iOS 15.3 and - okay, fine - iPadOS 15.3 say it’s a bug squishing, security fixing affair. Actually they say, “iOS 15.3 includes bug fixes and security updates for your iPhone (or iPad in the case of iPadOS) and is recommended for all users.”
Probably the most prominent fix was the one tied to the IndexDB/Safari data leak issue. We talked about this one last week. What we heard then was that “WebKit's implementation of a JavaScript API called IndexDB” could reveal a users recent browsing history and even their identity. A piece from MacRumors described it, saying:
The bug allows any website that uses IndexDB for client-side data storage to access the names of IndexDB databases generated by other websites during a user's browsing session.
Install this week’s updates and you can change that “allows” to “allowed.” Apple’s security notes for the iOS/iPadOS release says without the patch, “A website may be able to track sensitive user information.” With the patch, “A cross-origin issue in the IndexDB API was addressed with improved input validation.”
While the Webkit data leaking IndexDB thing may get the most attention, it wasn’t the only serious flaw addressed. Apple’s release notes say it’s heard word that an issue tied to IOMobileFrameBuffer “may have been actively exploited.” Unpatched, the notes say “A malicious application may be able to execute arbitrary code with kernel privileges.”
Kernel Privileges, Major Pain. And I believe you both know General Mayhem.
At ease.
If those two fixes aren’t reason enough to update, iOSPadOS 15.3 patches eight more security vulnerabilities. Both updates are free. Each is available now in Settings on a given iPad, iPhone, and (one assumes) iPod touch.
Apple Releases macOS Monterey 12.2
Along with updates for the tablet computer and the computer in your pocket, Apple on Wednesday updated the things we all recognize as computers. 9 to 5 Mac says Apple has released macOS 12.2 to the people. Apple’s release note for this one says, “macOS 12.2 includes bug fixes and security updates for your Mac and is recommended for all users.” Two tweaks listed by 9 to 5 Mac include:
Improved scrolling in Safari with ProMotion in new MacBook Pro models (that had been problematic)
The arrival of a new, native Apple Music app, said by the site to be smoother, faster, and more responsive
On the security side - with so much in common under the hood, you’ll not be surprised to find that macOS 12.2 fixes the same IndexDB issue as its iPhone/iPad counterpart. It also deals with the same IOMobileFrameBuffer bugaboo. And there’s plenty more where that came from, assuming you think 11 is “plenty.” 13 security fixes total in this one, according to a separate 9 to 5 Mac piece.
macOS 12.2 is a free update. It’s available in System Preferences on compatible Macs.
Security Updates for Older Macs
For Macs that can’t make the move to Monterey, updates on the security side. Apple’s security page heralds the arrival of Safari 15.3 for macOS Big Sur and macOS Catalina. Four security fixes in that, including the IndexDB thing.
In addition to the Safari update, Apple released Security Update 2022-001 Catalina on Wednesday. Made for machines running macOS Catalina (obviously), this one comes with five security fixes. I was surprised to not see the IndexDB issue addressed, until I remembered that that’s in the Safari 15.3 update.
And sticking with ye olden Macs, Apple also released macOS Big Sur 11.6.3 on Wednesday. This one comes with seven security fixes, including the possibly “actively exploited” IOMobileFrameBuffer issue.
Universal Control Misses Wednesday’s Updates
Image via Apple
With updates for iPad and the Mac, you may wonder what’s happening with Universal Control. And you get to keep doing that. If you don’t remember, Universal Control is the feature that’s supposed to let one mouse and keyboard work across a number of Macs and iPads in close proximity. Around December’s release of iPadOS 15.2, a piece from MacRumors had Apple indicating “that Universal Control will be ‘available this spring.’” 9 to 5 Mac was kind enough to needle Apple on Wednesday, pointing out that the feature “is still nowhere to be found.”
Apple Releases watchOS 8.4
Image via Apple
Next up for the updates - Apple Insider says watchOS 8.4 has made its way to the masses. Wanna guess what it does? Do ya? According to Apple’s release note, “watchOS 8.4 includes bug fixes and important security updates…”
The company does note one fix in particular. According to Apple Insider, December’s release of watchOS 8.3 kind of borked charging for some Apple Watch units on third-party chargers. The 8.4 release note indicates that this fixes that. Come for the charging fix, stay for the security patches. Eight vulnerabilities are addressed, according to Apple’s site, including the IndexDB thing.
watchOS 8.4 is a free update. It’s available through the Watch app on an associated iPhone.
Apple Releases tvOS 15.3 and HomePod Software 15.3
To the A/V room now, where we find updates for Apple TV and HomePods of various stripes. 9 to 5 Mac says tvOS 15.3 and HomePod 15.3 both saw release midweek. The only new feature spotted for either is added multi-user support on HomePod for a couple of regions. According to the report:
Software version 15.3 adds Siri voice recognition support for up to six users in a home in English (India) and Italian (Italy). This update also includes performance and stability improvements.
All of that and security stuff, too. Apple’s security site lists nine vulnerabilities addressed in tvOS, including the IndexDB data leaking deal.
Apple Updates Beats Studio Buds Firmware
Earlier this week, Apple released a firmware update for some of its non-Apple hardware. Cult of Mac says the company updated the firmware for its Beats Studio Buds. New features include:
Instant Pairing Over iCloud - Just like AirPods, updated Beats Studio Buds will find and instantly pair with Apple devices, rather than having to be paired to each individually
A new battery status indicator - Bring your Beats Studio Buds case near your iPhone or iPad and it’ll pop-up a notification letting you know how much charge you have - again, just like AirPods
A new volume control - Users can control volume using the “b” button built into the Buds after a little configuration
Also like AirPods, users can’t force the update. It’ll come when it comes, and oh what a time that’ll b.
Skydance Animation Film “Luck” to Hit Apple TV+ in August
Image via Apple Inisder
If you like celebrity voices and animation, you’re in luck! Or, you will be this summer. A piece from Apple Insider says Luck, the first full-length feature from the Skydance Animation/Apple TV+ partnership has a release date. A piece from The Hollywood Reporter described the film about a year ago, saying:
Luck (…) centers around the unluckiest girl in the world, who after stumbling upon the never-before-seen world of good and bad luck, must join together with magical creatures to uncover a force more powerful than even luck itself.
Voice talent to include Eva Noblezada, Whoopi Goldberg, Simon Pegg, Jane Fonda and others, Luck hits Apple TV+ on Friday 5 August. Between now and then, you can make up stuff in your head, since there’s no trailer or anything like that yet.
Epic Apple TV+ Series “Pachinko” Debuts on 25 March
Image via Apple
A long anticipated, epic series hits Apple TV+ in a couple of months. The Cupertino-streamer issued a press release Wednesday, announcing a premier date for “Pachinko.” Told in English, Japanese, and Korean, the release says:
…the story begins with a forbidden love and crescendos into a sweeping saga that journeys between Korea, Japan and America to tell an unforgettable story of war and peace, love and loss, triumph and reckoning.
We first heard about this series nearly three-years ago - before Apple even announced Apple TV+. Back then, a piece from MacRumors described the book on which the series is based, saying it covers “the lives of four generations of a poor Korean immigrant family as they migrate to and establish a life in Japan.”
Apple says the the first three episodes will debut globally on Friday 25 March. Those will be “followed by new weekly installments each Friday during its eight-episode season,” ending on 29 April.
Apple Nominated for “Ted Lasso” and Commercial DGA Awards
Image Natalie Parham via Unsplash
Whatever you’re doing, stop right now and look under your seat! You get an award! And you get an award! And Apple TV+ has been nominated for more awards.
Apple Insider says the Cupertino-company has been nominated for a few DGA Awards. Given out by the Directors Guild of America (DGA), the awards “honor directors for their directorial achievement.” That is seriously from the DGA website. In fairness, they’re not writers.
The organization has nominated Apple in the TV and commercial categories. Well… in the “Ted Lasso” and commercial categories. According to Apple Insider:
There are three nominations for outstanding directorial achievement in comedy for the Apple TV+ show “Ted Lasso.” These include MJ Delaney who directed “No Weddings and a Funeral,” Erica Dunton who directed "Rainbow," and Sam Jones who directed “Beard After Hours.”
On the commercial side, “Kathryn Bigelow was nominated for the iPhone 13 Pro commercial called ‘Hollywood in Your Pocket,” according to the report. And Ian Pons Jewell was nominated for the Apple Watch commercials: “ECG,” “Sleep,” and “Apple Watch.”
DGA Award winners will be announced on Saturday 12 March.
9 to 5 Mac: Apple Shares Down Due to Market Conditions, Not Performance
One Month AAPL Chart from Apple Stock App
January has been an ugly month for Apple shares. Remember earlier this month when shares were flirting with $183? They closed yesterday just under $160. U-G-L-Y, but they have an alibi. Quoting a piece from 9 to 5 Mac:
The large slide in the value of AAPL stock this month has less to do with the company itself, and more to do with macroeconomic factors around the economy as a whole, and the tech sector in particular.
The US Federal Reserve is expected to raise interest rates in order to slow inflation, as well as ending pandemic stimulus measures. This would mean consumers have less disposable income, as well as making it more expensive for companies to borrow to fund future product development.
Stellar results are still expected when Apple reports Q1FY2022 earnings on Thursday, though that may do little to boost shares since, did I mention, macroeconomic factors dragging the shares down? 9 to 5 Mac says:
Investors will be keen to hear what [Apple] CEO Tim Cook has to say about the current quarter, but the company has declined to offer guidance of late due to the supply chain and other pandemic uncertainties, and this is unlikely to change when Apple reveals its holiday quarter earnings on Thursday.
Creative Strategies CEO and Principal Analyst Ben Bajarin posted a similar sentiment on Twitter about tech as a whole, saying:
Management commentary around earrings/guidance is going to be more impactful for investor models than this Q earnings numbers on their own.
Many investors need to hear managements confidence in 2022 in order to be confident themselves.
“Shhhh! Listen…”
Such statements may come tomorrow when Apple reports earnings for the holiday-quarter - the first quarter of fiscal year 2022. After that, it’s questions and answers with financial analysts. You can listen in live on Apple’s Investor site. The call will show up as a podcast soon after. We’ll hit highlights here on Friday.
US Dept. of Commerce Calls for Domestic Plants as Chip Shortages Continue
Apple is expected to address supply constraints during Thursday’s Q1 Earnings Call. Those expectations were likely heightened on Tuesday. CNET ran a piece that had the U.S. government warning that the chip shortage persists and will for a while. A report from the US Department of Commerce says even with chip plants running at 90% output or greater, demand is still outstripping supply. The agency estimates “that demand was as much as 17% higher in 2021 than in 2019,” according to CNET.
The solution, according to the Department, is to build more capacity and build it in the U.S. CNET quotes a statement from Secretary of Commerce Gina Raimondo, saying:
The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible… With sky-rocketing demand and full utilization of existing manufacturing facilities, it's clear the only solution to solve this crisis in the long-term is to rebuild our domestic manufacturing capabilities.
Apple’s Updated Personal Safety User Guide Adds Section on AirTag
Image via Apple
Since their introduction, there has been a lot of concern about potential hazards around AirTag. While the device is great at finding lost or stolen items, it can be (and has been, by some accounts) used to track or stalk individuals without their knowledge. Now, Apple wants to make people more knowledgable. MacRumors says the Cupertino-company shared an updated Personal Safety User Guide on Tuesday. The piece has Apple saying that the guide “serves as a resource for anyone who is concerned about or experiencing technology-enabled abuse, stalking, or harassment…” It now includes a section for AirTag.
While a lot of it may not be news to experienced Apple users, MacRumors suggests giving it a once over anyway. The piece says the guide addresses such topics as “controlling who can access your location, blocking unknown sign-in attempts, avoiding fraudulent requests to share info, setting up two-factor authentication, managing privacy settings, and more.”
Administrators Added to AppleCare Replacement Device Class Action Suit
Image via Apple
Apple’s settlement over “like new” replacement devices has entered a new phase. Apple Insider says the company’s $95 million settlement over replacing devices under AppleCare with refurbished equipment now has case administrators.
The lawsuit started in 2016, covering class participants who bought AppleCare or AppleCare+ for an iPhone and iPad as far back as July of 2012. The report says plaintiffs argued that the “refurbished or remanufactured devices offered by Apple as replacements were not functionally the same as new products.” While it admitted no wrongdoing, Apple was willing to pay $95 million to make the whole thing go away.
“Although the settlement has received preliminary approval,” MacRumors says “a final hearing is slated for April 27, 2022.” While Class members won't get any payments before that, the piece says administrators are “contacting customers who may be eligible for a payout.”