US Senators Call for Common Charging Port for Electronics
21 JUNE 2022 - While the UK won’t follow the EU down the “one port to charge them all” path, a few lawmakers say the US should. A couple of weeks ago the European Union announced a deal to make USB-C the single charger type for smartphones and most other electronics sold across the region. The unified port plan is set to go into effect for small devices like phones, tablets, and e-readers by 2024, with bigger items like laptops getting a bit more time. Having Brexited, the UK doesn’t have to do what the EU says, and said it would not in this case. But Apple Insider says a handful of US Senators have written to the US Commerce Department urging this country along a similar path, if not the exact same path.
Democratic Senators Ed Markey and Elizabeth Warren, along with Independent Senator Bernie Sanders, have sent a letter to Commerce Secretary Gina Raimondo urging an action similar to that taken by the EU for the US. The letter leans hard on environmental concerns, cost concerns, and petty annoyances tied to proprietary plugs for various vendors, as well as moves from one connection type to another. There is one thing the letter sort of misses, though. Quoting one small portion:
Innovation should benefit consumers. It should not come at their expense, saddle them with incompatible accessories, and compel them to purchase different charging equipment for each device they own.
It seems likely that most companies would argue that changing connector types does come with benefits for consumers, from size to efficiency to functionality. I saw someone ask a couple of years ago, “what if laws like this had gone into effect when USB-A was what we had?” While the concerns raised in the letter are real, the proposal may miss the intricacies of the working tech space. And that may be why the senators have not suggested a particular port. “In contrast to the Europe strategy,” says Apple Insider, “the US senators are not necessarily calling for USB-C to be the standard.” Rather, the letter says:
We urge you to coordinate with offices and agencies across the Department of Commerce to develop a comprehensive plan that will protect both consumers and the environment by addressing the lack of a common U.S. charging standard.
Would’ve been neat if they’d addressed the innovation part, too.
iOS 16 Offers Release from CAPTCHA
21 JUNE 2022 - iOS 16 may free you from CAPTCHA. You know that thing where you go to log into a site and to prove you’re a human human you have to decipher squiggly text or click all of the squares that picture traffic lights or bicycles? That’s called CAPTCHA and iOS 16 is sick of it. According to a piece from MacRumors:
When enabled, Apple says iCloud will automatically and privately verify your device and Apple ID account in the background, eliminating the need for apps and websites to present you with a CAPTCHA verification prompt.
When enabled a couple of ways. First iOS, iPadOS, and macOS users will need to enable the bypass under Apple ID in Settings. Of course, it has to be enabled by websites and applications as well.
Relying on Private Access Tokens, the implementation isn’t just about convenience. MacRumors says:
This new system will offer a better user experience for tasks such as signing into or creating an account, with improved user privacy and accessibility compared to CAPTCHAs.
AR, VR, MR, and the Rest of the Rs
Analyst Sees Apple AR Glasses in Late 2024
21 JUNE 2022 - When speaking of Apple’s AR/VR/MR plans, it’s easy to get the products mixed up, largely because we don’t actually know if any of them are real. Plenty of reason to believe, though nothing has been confirmed. With that in mind, rumor today around Apple’s AR Glasses, not to be confused with Apple’s mixed-reality headset. The latest rumor and speculation have Apple’s mixed-reality thing hugging our heads by this time next year. As for the augmented reality glasses, Haitong Intl Tech Research analyst Jeff Pu is looking to look through those in late 2024. That is according to a research note he wrote, as seen by 9 to 5 Mac. The site has the analyst indicating:
…Apple AR Glass has entered the design development, with a prototype to be ready by the end of this year and mass production in the second half of 2024.
A Virtual Look Ahead
The lines between VR and AR get kind of blurry, hence the need for the whole MR thing. If you want an idea of where we’re virtually headed, Facebook founder and Meta-human Mark Zuckerberg seems to have teased some amazing technology on Monday. An article I read said they were talking about stuff we won’t see fully for about a decade, though steps are being taken toward it. We’re talking photo-realistic presentations of participants in realtime. It’s like they’re there but they’re not. Or… will be? VentureBeat has an in-depth article on the presentation. Engadget has a quicker take. Either seems likely to blow your mind. They also help to explain why we can’t have whatever mixed-reality thing Apple’s going to come up with five-years-ago already.
Tantalizing, fascinating, and frustrating reads.
Capaldi and Jumbo to Headline Series “Criminal Record” for Apple TV+
Apple TV+ announced a series order for “Criminal Record,” starring Peter Capaldi and Cush Jumbo.
21 JUNE 2022 - News of a new series for Apple TV+. The Cupertino-streamer issued a press release Monday, announcing an eight-episode order for “Criminal Record.” According to the release:
“Criminal Record” is a powerful, character-driven thriller set in the heart of contemporary London. An anonymous phone call draws two brilliant detectives into a confrontation over an old murder case – one a young woman in the early stages of her career, the other a well-connected man determined to protect his legacy.
The young woman will be played by Cush Jumbo, who you may know from the series “The Good Wife” and its spinoff series “The Good Fight.” The well-connected man will be played by Peter Capaldi, known for “Doctor Who,” “The Thick of It,” “The Hour,” The Suicide Squad, and the list goes on. The release says the series “touches on issues of race, institutional failure, and the quest to find common ground in a polarized Britain.” No word on a premier date.
Apple Towson Town Center Forms First Apple Store Union
Apple Towson Tone Center - Image via Apple
20 JUNE 2022 - The first Apple Store to unionize is now officially a thing. The Wall Street Journal (via Apple News+) says Apple Towson Town Center outside of Baltimore, MD formed “the first union of Apple retail employees in the U.S.” in a 65 to 33 vote. The Apple Coalition of Organized Retail Employees (Apple CORE) voted to join the International Association of Machinists and Aerospace Workers (IAM). IAM’s international president, Robert Martinez Jr., was quoted in the Journal, saying:
I applaud the courage displayed by CORE members at the Apple store in Towson for achieving this historic victory… They made a huge sacrifice for thousands of Apple employees across the nation who had all eyes on this election.
Martinez also asked Apple CEO Tim Cook to move quickly on a contract for the workers, adding that the vote “shows the growing demand for unions at Apple stores and different industries across our nation.”
Apple declined to comment for the Journal piece.
Bernstein Research Bearish on Apple #InThisEconomy
Image via CNBC on YouTube
20 JUNE 2022 - “Why Bernstein’s Toni Sacconaghi is bearish on Apple in a recession,” is the headline from an Apple 3.0 post. I know what you’re thinking: “Because it’s a day that ends in ‘y’ and his name is Toni Sacconaghi.” His thinking is more reasoned than that, though he’s been so wrong for so long about Apple, it’s hard not to read hope into his words. On the other hand, a broken clock is right twice a day, and this may be Mr. Sacconaghi’s time.
Hey, maybe I should tell you what he said.
He’s worried about the economy. He likes the sort of recurring revenue seen by big business players like IBM and HP Enterprise #InThisEconomy, while transactional plays like Apple and HP leave him a bit cold at the moment. “We continue to rate DELL and HPE outperform,” wrote Sacconaghi, adding, “We see risk/reward on AAPL and HPQ as neutral to potentially negative…” Quoting his note:
Bulls argue that Apple’s premium price positioning make it less vulnerable to a recession, while bears assert that Apple over-earned last year amid the pandemic, and profits will invariably mean-revert over the next few years. We lean more towards sentiment in the latter camp, and see risk-reward on the shares as neutral to modestly negative.
But he’s been so wrong for so long about Apple. Apple 3.0’s Philip Elmer-DeWitt thinks the number of people practically addicted to buying the latest iPhone may represent more “recurring” revenue than Sacconaghi allows. One also wonders whether the analyst is seriously factoring in Apple’s Services side, including growth in ad revenue for Apple and its growing number of subscriptions.
I’m not saying Sacconaghi’s wrong. But it’s worth remembering how long he’s been so wrong about Apple. Also worth remembering - it’s a day that ends in ‘y’ and his name is Toni Sacconaghi.
Bernstein Research has a “Market Perform” or Neutral rating on Apple shares (for now, anyway). The firm’s price target on the shares is $170.
Morgan Stanley Dropped Apple Target to $185 (Katy Huberty Did Not)
Image via TipRanks
20 JUNE 2022 - A follow-up to a story I brought you recently. Midweek last week The Fly ran a report saying that Morgan Stanley analyst Katy Huberty had dropped her firm’s price target on Apple shares from $195 to $185. The piece had Huberty saying that #InThisEconomy, consumer spending was starting to weaken - even at the high end. The Fly said:
Huberty added that the risks of a pullback at even the high-end consumer space are rising, and that a majority of survey respondents expect to reduce spending in the next six months due to inflationary pressures.
It’s all true, except for one thing: The note was not written by Huberty, the analyst tasked with following Apple for Morgan Stanley. A piece over the weekend from Apple 3.0 says it was actually written by Morgan Stanley analyst Erik Woodring. Woodring’s LinkedIn profile lists him as Executive Director, Technology Hardware Equity Research at Morgan Stanley. TipRanks gives Woodring has a success rate of 53%. The same site gives Huberty a success rate of 59%.
It’s worth noting - it wasn’t the person who follows Apple specifically for the firm that lowered the firm’s price target. Of course, that does not negate the thinking in the note. Even if the Apple engine is purring like a kitten, if the road’s closed or there’s a detour, there’s a decent chance the journey will be slowed.
Morgan Stanley still has an “Overweight” rating on Apple shares. The firm’s price target on the shares is the aforementioned $185.
UK and Europe Show Strain #InThisEconomy
20 JUNE 2022 - Worries expressed by Wall Street are showing up in numbers from the UK and Europe. Two notes of note - one on smartphone sales and another on music subscriptions.
Counterpoint: Smartphone Sales Slump in Europe
Smartphone shipments in Europe did not have a good first quarter, according to Counterpoint Research. By that firm’s reckoning, the 12% year-on-year drop for the March-quarter yielded the lowest shipments since the first-quarter of 2013.
What was the issue? You name it. Counterpoint says:
The decline was caused by a number of factors, including ongoing component shortages, COVID-19 related lockdowns in China, deteriorating economic conditions and the onset of the Russo-Ukraine war.
Counterpoint Associate Director Jan Stryjak was quoted in the piece saying:
…existing issues such as COVID-19 and component shortages have been exacerbated by new economic and geopolitical challenges. Rising inflation levels across the region are impacting consumer spending, while Samsung and Apple, Russia’s first and third ranked smartphone vendors, halted all shipments into Europe’s largest market in early March 2022.
While those two make up about half of smartphone shipments to Russia, Counterpoint says:
…their combined shipments in Russia account for only 6% of total European smartphone shipments. The consequences of their withdrawal are, therefore, still relatively small on a regional scale. However, the impact of the war may develop wider ramifications if it leads to a drop in availability of raw materials, a rise in prices, further inflationary pressure and/or other vendors withdrawing from Russia.
Turning to specific vendors, Counterpoint says four of the top-five vendors saw shipments fall last quarter, though of the four that fell, Apple fell least:
First place Samsung saw shipments drop 16% y-o-y
Second place Apple saw shipments drop 6%
Third place Xiaomi saw shipments plummet 36%
Fourth place OPPO saw shipments drop 8%
Fifth place realme kept on growing, with y-o-y shipments up 67%
Kantar: UK Saw 1MM Music Subs Cancelled in Q1
On the music score (see what I did there?), the folks at Kantar Research say the first-quarter saw one million people in the United Kingdom cancel music subscription services. That’s according to a piece from Apple Insider. While several reasons were cited for the cancellations, including “technical difficulties, limited selection of music,” and too many ads, the biggest reason given was a need to save money. Quoting Kantar:
With inflation rising to 9% in the United Kingdom and further rises in the cost of living expected, the rising cancellation rates of music subscriptions is evidence that British households are starting to prioritise the spending of their disposable income.
Over 1 million subscriptions were cancelled in the last quarter, which has also seen the highest level of consumers citing they want to save money as the reason they want to cancel their subscription, at 37%.
Off-the-Rack 13-Inch M2 MacBook Pro Still Available for Friday 24 June
M2 13-Inch MacBook Pro - Image via Apple
20 JUNE 2022 - Pre-orders for the M2-powered 13-inch MacBook Pro went live on Friday. If you’re a McDonald’s person - one who will simply take what they give you, you can still have it by Friday. If you’re more Burger King - you know, have it your way, that’s going to take a little time.
As of this writing, both of the off-the-rack configurations are still available for delivery this Friday 24 June. That’s either an M2-powered, 13-inch MacBook Pro with an 8-Core CPU, 10-Core GPU, 8GB Unified Memory, and 256GB SSD Storage for $1,299 or an M2-powered, 13-inch MacBook Pro with an 8-Core CPU, 10-Core GPU, 8GB Unified Memory and 512GB SSD Storage for $1,499. Changing anything about the hardware changes everything, though. Adding 16GB Unified Memory to either machine pushes delivery to 6 July through 8 July. Move that to 24GB Unified Memory and you are waiting until 4 August through 11 August. Adding extra storage also adds a couple of weeks, shifting delivery from this Friday to 6 July through 8 July.
Different combinations yield different delivery dates, by the way. If you’ve got your heart set on certain specs or getting one by a certain time, best to head to Apple’s online store and play with the selectors. Or you can try ending the week at the Mall. Apple’s press release on the machine’s availability says it “will be in select Apple Store locations and Apple Authorized Resellers” this Friday 24 June.
Apple Dual USB-C Port 35W Charger Available to Order
Image via Apple
20 JUNE 2022 - Along with the new M2-powered MacBook Pro units, Apple’s latest chargers are available to order. A piece from MacRumors says Apple’s 35W Chargers with dual USB-C ports have gone up for order, and can be had super soon. Checking Sunday evening, I could have ordered and picked one up today at my local Apple store. I also could have had one delivered today if I’d been willing to spend $9.00 above the purchase price, while free delivery would have had me waiting until Thursday 23 June. That was for either the standard version or the compact size. Worth noting: The compact edition is only available in Canada, China, Japan, Mexico, the Philippines, Taiwan, Thailand, and the U.S.
Wedbush Sees MLS as Stop on the Road to NFL for Apple
17 JUNE 2022 - Wedbush analyst Daniel Ives is seriously stoked over Apple’s deal with Major League Soccer. Earlier this week the two organizations announced a deal that’ll make the Apple TV app the home for Major League Soccer for ten-seasons, from 2023 through 2032. And Mr. Ives thinks we’re just in early innings as far as Apple’s sports plans.
A Yahoo Finance piece (via AOL, which I seriously didn’t know was still a thing…) has the Wedbush analyst saying:
They're doubling down on live sports content, and that's a big strategy for Cupertino on the content front… MLB, now MLS, that's just the start of what we see as much more aggressive content initiatives with the NFL Sunday Ticket being front and center.
Ives seems to see Amazon in Apple’s crosshairs. The report says the Prime Video proprietor:
…will start streaming Thursday Night Football this fall. On top of paying hundreds of millions to broadcasters, the company is shelling out $1 billion per season for the exclusive rights.
But NFL Sunday Ticket is the big ticket, and Ives thinks Apple will go for it. According to the analyst:
There's been a clear DNA change within Apple the last 18 months about live sports content… They recognize they have to be aggressive because of what Amazon has done with Thursday Night Football.
“…with live sports,” the analyst says, “there’s a huge window for them to expand.”
Tip Ranks lists Ives’ rating on Apple shares a “Buy.” His price target on the shares is $200.
Apple Releases macOS Monterey Build Specifically for M2 Macs
17 JUNE 2022 - By the time you get this, there’s a good chance that the M2-powered 13-inch MacBook Pro will be available to buy. While folks won’t be able to handle the machine until a week from now, the operating system for the laptop is already out. No, I don’t mean macOS Monterey, though - in fairness - that is out. I’m talking about the version of Monterey Apple released yesterday with next week’s machine in mind.
MacRumors says Apple on Thursday “released a new build of macOS Monterey 12.4 that's designed for the upcoming M2 Macs…” No point looking for it yourself. Since it is for M2-powered machines and since nobody has those, it will not show up as an update for you.
So why’s it out? My guess is people actually do have it. Hands on reviews will likely be posted mid-week next week, ahead of next Friday’s release. You don’t want them reviewing on janky software.
Or maybe somebody just finished early.
Orders start (or started) today at 5AM Pacific/8AM Eastern. The new machines “will begin arriving to customers, and will be in select Apple Store locations and Apple Authorized Resellers, on Friday, June 24,” according to Apple.
Apple Makes Three More Stock Apps Removable in iOS 16
17 JUNE 2022 - It looks like iOS 16 will let users nix three more of Apple’s pre-installed apps. It was back in 2016 with the arrival of iOS 10 that Apple started letting people pluck apps it had installed off of their iPhones and iPads. The number that could be removed then was 24. The number has barely budged in the ensuing years - currently standing at 27, though a piece from iDownloadBlog says it’s about to rise to 30. According to the report:
If your iPhone, iPad or Apple Watch is powered by iOS 16, iPadOS 16 or watchOS 9, you’ll be able to uninstall these three stock apps that you couldn’t before:
- Clock
- Find My
- Fitness
If you’d heard something about being able to remove the Camera app as well, you can apparently scratch that. Despite the confusion, iDownloadBlog says users will be able to remove the Camera app from the home screen, but not pull it off the phone.
Just because you can pull stock apps off the devices doesn’t mean you should. Things might get weird in a couple of ways. For example, removing the Contacts app doesn’t actually remove your contacts. “According to Apple,” according to iDownloadBlog, “‘all of your contact information will remain in the Phone app’ because other apps like Messages, Mail, FaceTime and more may use it.” Going weird in another way, the piece says “because some apps provide services to other parts of iOS, uninstalling them may result in a loss of functionality.”
But, you know, you do you. If you’re wondering which Apple apps you’ll be able to give the old heave-ho, here you go:
Activity
Apple Books
Calculator
Calendar
Clock
Compass
Contacts
FaceTime
Files
Find My
Fitness
Home
iTunes Store
Mail
Maps
Measure
Music
News
Notes
Podcasts
Reminders
Shortcuts
Stocks
Tips
Translate
TV
Videos
Voice Memos
Watch
Weather
Five-Years Later, a New Batterygate Suit is Filed in UK
17 JUNE 2022 - The thing that would not die: A piece from Engadget says Apple is being sued over “Batterygate.”
Roughly five-ears ago, Apple copped to intentionally slowing the performance of some of its older phones. Apple said it did that to keep units with failing batteries from going crashy-crashelson. Detractors argued the real reason Apple did it was to trick people into upgrading to newer devices.
Now, seriously five-years later, consumer rights campaigner Justin Gutmann has brought suit against Apple at the Competition Appeals Tribunal in the United Kingdom. Citing a report from The Guardian, Engadget says:
Gutmann argued that Apple didn't disclose that it was going to deliberately throttle users' phone before it did so and that the company didn't give them the option to disable the setting.
The piece has Gutmann arguing that, “Apple introduced the slowdown feature to disguise the fact that older batteries could no longer cope with new OS updates.” Quoting the campaigner:
Instead of doing the honourable and legal thing by their customers and offering a free [battery] replacement, repair service or compensation, Apple instead misled people by concealing a tool in software updates that slowed their devices by up to 58 percent…
He’s not suing on behalf of people who replaced their phones or paid full-price to replace their batteries. Rather, the piece has him suing on behalf of anyone in the UK who purchased an affected iPhone. That’s anyone in the country who bought an iPhone 6 through iPhone X. If it loses, Apple could end up paying as much as “£750 million to over 25 million people,” according to the report.
Suit Against Apple Over Gift Card Scams Gets Go-Ahead
Image via Apple
17 JUNE 2022 - A case against Apple over gift card scams has been given a go-ahead in court. You’ve probably heard of these scams: Somebody calls a victim, claiming to be from the IRS or some other official entity. They say there’s a problem with the victim’s account - something wrong with their taxes, they’re behind in utility bills and the power’s about to be cut, law enforcement is on the way to arrest them for some reason… they freak the mark out, then tell them they can fix it by buying Apple gift-cards (store cards or iTunes) and giving the caller the info on the cards. The bad guys then use the cards, either buying goods at Apple Stores that they can turn around and resell, or buying apps on the App Store in which they have an interest, collecting 70% of the cost of the app once Apple pays out. The victims, of course, are left victimized - out however much money for which they were taken.
Did Apple do this? No. But, a piece from 9 to 5 Mac says plaintiffs in the case argue that Apple benefits from the scams and could do more to protect the victims. The report says Apple filed to have the case dismissed for a number of reasons, starting with the fact that cards sold clearly say “no refunds.” That did not wash with the judge hearing the case. According to the report:
U.S. District Judge Edward Davila dismissed some of the claims from a class of plaintiffs that said Apple aided in the fraudulent schemes, but he did say plaintiffs plausibly alleged the company did receive some of the proceeds from the fraud and failed to appropriately reimburse the victims.
“The next stage in the case will be discovery,” according to the report, “where Apple will be required to hand over relevant information about how it handles these scams.” No word in the piece on a timeline for the case.
Apple TV+ Picks Up Second Season of “Swagger”
17 JUNE 2022 - A well received Apple series is getting a second round. Apple TV+ issued a press release Thursday, saying that the series “Swagger” has been picked up for a second season. According to the release:
“Swagger” explores the world of elite youth basketball clubs, the players, their families and coaches, and “the game within the game.” Off the court, the show reveals what it’s like to grow up in America.
The show is inspired by the NBA’s Kevin Durant and his experiences in the world of youth basketball. “Swagger” creator, showrunner and director Reggie Rock Bythewood is quoted in the release, saying:
I’m excited to share more of the beautifully complicated lives of these incredible characters… In season two, they will search and discover what it means to be a champion on and off the court, and the basketball playing will continue to be groundbreaking. We are grateful to Apple TV+ for the platform.
Season one of “Swagger” is available to stream now on Apple TV+. No word on when season two will hit the stream.
Deadline: Barry Levinson and Billy Crystal Bringing “Before” to Apple TV+
Billy Crystal - Image via IMDB
17 JUNE 2022 - Apple TV+ is getting a few blasts from the past. Deadline has word of a limited series coming to the Cupertino-streamer. The piece says the series “Before” focuses on “a child psychiatrist who recently lost his wife,” and his dealings with “a troubled young boy.”
Where are the blasts from the past? In front of and behind the camera. Barry Levinson is set to direct. His work ranges from last year’s mini-series “Dopesick” to the film Bandits in the early 2000s to Bugsy in the early 90s all the way back to Diner in 1982.
Serving as executive producer and starring in the series - Billy Crystal. I don’t really need to say who Billy Crystal is, do I? City Slickers… Analyze This… When Harry Met Sally… You know he’s only done two series? “The Comedians” for FX in 2015 and “Soap,” way back in the 70s.
No clue as to when the series will land on our TVs.
Morgan Stanley Drops Apple Target to $185 on Weakened Consumer Confidence
16 JUNE 2022 - News of another lowered price target for Apple shares. I told you yesterday of Deutsche Bank analyst Sidney Ho dropping his price target on Apple due to macroeconomic concerns. Now, The Fly has Morgan Stanley analyst Katy Huberty doing the same for pretty much the same reason.
With the stock market down 22% since the start of the year, Huberty says consumer spending is staring to weaken - even at the high end. According to the report:
Huberty added that the risks of a pullback at even the high-end consumer space are rising, and that a majority of survey respondents expect to reduce spending in the next six months due to inflationary pressures.
But she still likes the stock. Huberty has an “Overweight” rating on Apple shares. She also pointed out that Apple is Morgan Stanley’s only consumer stock with an “Overweight” rating. While her price target is lower, it’s still pretty high given Apple’s current standing. She’s dropped her target from $195 to $185. That’s still a pretty steep climb. Apple closed Wednesday at $135.43.
JP Morgan Sees Strength for iPhone and Growth for Apple Advertising
16 JUNE 2022 - JP Morgan analyst Samik Chatterjee is on a tear this week. Before Wednesday he had published notes on Apple Music, Apple Arcade, and Apple Fitness+. Now, Apple Insider has notes on two more notes from Chat-Man - one covering today’s iPhones and another looking at the future of Apple’s advertising business.
Chatterjee Sees Strength for iPhone in the States
On the phone, the iPhone 13 line is still crushing it in his estimation. He’s got new numbers from Wave7 Research showing both the consumer and Pro sides of the 13 line selling better than their predecessors here in the states. According to the report:
The iPhone's share of the market ranked at 66% for AT&T, 60% at Verizon, and 57% at T-Mobile, respectively. That's better than in previous years, which implies a structurally higher market share for Apple's devices.
And, at least anecdotally, they’re driving switchers in droves. The piece indicates at least “73% of carrier representatives said that Apple was getting the most switchers, while only 16% said the same about Samsung.
At the same time, there were numbers to make one wonder whether folks selling smartphones actually get the whole platform thing. Switching means switching to iOS. And yet, while “73% of carrier representatives said that Apple was getting the most switchers,” Apple Insider says:
When it came to operating system switchers, 43% of representatives said they were seeing more switching happen from Android to iOS, while 51% said the overall rate of switching between the two operating systems was "about even." Only 5% said that more switchers were choosing Android over iOS.
JP Morgan Weighs Apple’s Advertising Future
For most of the week, Mr. Chatterjee has been hitting various Apple Services. Mid-week, it was advertising’s turn at the plate. He thinks Apple could make as much as $6 billion in advertising by 2025, though that might be a tough needle to thread. According to his note:
[JP Morgan forecasts] revenues amounting to $1.7 bn by FY25, if Apple were to be willing to build an audience network of third-party applications which allow Apple to manage the logistics of ad targeting and delivering to these applications, matching demand from digital advertising customers with supply of an audience…
Could Apple do that? Technically - sure. There are a couple of potential pitfalls around it though. First, there’s the court of public opinion: Users might be upset with Apple making a huge amount of money selling them to advertisers when Apple’s built a reputation on protecting them from advertisers. That said, it’s likely the public won’t notice. A bigger concern may be Johnny Law. Or, Johann Law. We heard just this week of an investigation by antitrust regulators in Germany over Apple’s implementation of App Tracking Transparency and whether it was “designed to give Apple an unfair advantage in advertising.” The ever watchful eye of regulators may stunt such a move.
Well, that just leaves $4.1 billion that’s practically guaranteed. According to Apple Insider:
…the largest share of advertising revenue for Apple will still come from Apple Search Ads. By 2025, Chatterjee believes the ad type will reach $4.1 billion in revenue. That number is actually limited by what he says is Apple prioritizing “consumer experience,” which likely amounts the company's focus on privacy and design.
Mr. Chatterjee has a positive rating on Apple shares. His price target on the shares is $200.
Pegatron Stresses Plans to Add Manufacturing Capacity Outside of China
16 JUNE 2022 - COVID-19 lockdowns in China seem to have put an idea in the heads of Pegatron execs: Maybe a few more baskets for our eggs. The Mac Observer highlights a Reuters report that has Apple’s iPhone manufacturing partner Pegatron stressing the idea at its recent annual shareholders meeting in Taipei. The piece has Pegatron’s president saying:
We faced COVID controls for two months. We couldn’t have assessed that in advance, so that makes me emphasise [sic] our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation [sic] of our production capacity.
While such expansion may take time, company execs put on a happy face for the rest of this year. That’s said to be thanks to a few factors, including the lifting of lockdowns in China, the perceived easing of COVID-19 around the world, and hopes for a healthier supply chain. Supporting that, the piece points to Foxconn, Apple’s largest iPhone partner, anticipating a more stable supply chain for the second-half of 2022.