Apple Has One-Day Left to Challenge Union Vote at Towson Store
Apple Towson Town Center - Image via Apple
24 JUNE 2022 - It seems that Apple can still challenge the union vote that passed recently at one of its stores. Last weekend, employees at Apple Towson Town Center opted to form a union. Now, a piece from Yahoo Finance says the Cupertino-company has until today (Friday 24 June) to challenge the vote, though it sounds like experts speaking to the site would advise against it.
The problem seems to be the margin - too big in favor. “The final vote tally showed 65 of the store’s 112 eligible workers in favor of unionization, and 33 against,” according to the report. Cornell professor and labor expert Ileen DeVault says fighting those numbers would not look good for Apple. Not that they won’t try. As Yahoo Finance points out, “most losing employers do…” Still, Michael Oswalt - labor lawyer and law professor at Wayne State Law School, tells the site:
I would hope that after a multi-week campaign, where Apple had a chance to express its views to its employees in one-on-one, group, and large settings, at any and all times during the workday, the company would recognize that its workers are in favor of collective bargaining and respect that decision by negotiating a contract…
Not that everyone is in agreement. The piece has Michael Duff, a professor at University of Wyoming College of Law, saying challenging the union vote still makes business sense for Apple. He tells Yahoo Finance that, while the National Labor Relations Board can “order” Apple to take a specific action, there’s nothing to actually enforce the order, except for rulings from a court. That would, of course, take time, and any ruling Apple doesn’t like it could simply appeal. Meanwhile challenges lead to delays and delays often frustrate workers enough that they give up on the whole union idea.
All of that said, Duff figures the current labor shortage might keep Apple from standing in the proposed union’s way. As for what Apple will do, a short amount of time will tell. When reached by Yahoo Finance, “Apple declined to comment on whether it would challenge the outcome.”
Apple TV+ Posts Schedule for Friday Night Baseball for July
24 JUNE 2022 - If you’re a fan of the sportsball, Apple TV+ has posted its schedule for Friday Night Baseball for the merry, merry month of… July. That schedule (thanks to the good people at The Mac Observer) is as follows:
Friday, July 1
Texas Rangers at New York Mets
7 p.m. ET
Los Angeles Angels at Houston Astros
8 p.m. ET
Friday, July 8
Pittsburgh Pirates at Milwaukee Brewers
8 p.m. ET
Toronto Blue Jays at Seattle Mariners
10 p.m. ET
Friday, July 15
Pittsburgh Pirates at Colorado Rockies
8:30 p.m. ET
Arizona Diamondbacks at San Diego Padres
9:30 p.m. ET
Friday, July 22
Chicago Cubs at Philadelphia Phillies
7 p.m. ET
Cleveland Guardians at Chicago White Sox
8 p.m. ET
Friday, July 29
Detroit Tigers at Toronto Blue Jays
7 p.m. ET
Chicago Cubs at San Francisco Giants
10 p.m. ET
Morning Show’s Leder Scores Overall Deal with Apple TV+
Mimi Leder - Image via IMDB
24 JUNE 2022 - Apple TV+ has signed another big TV and movie-type to an overall deal. Variety says the Cupertino-streamer has signed a multi-year agreement with Mimi Leder.
It is a solid get. Leder has directed such films as On the Basis of Sex, The Peacemaker, and Pay It Forward. She’s directed on such TV series as “The Leftovers,” “Shameless,” “Nashville,” and “The West Wing.” Really though, we probably could have started and stopped with “The Morning Show.” Leder has directed a few episodes of that and serves as one of the executive producers for the Apple flagship drama.
Variety says the new deal gives Apple “a first-look on streaming features, as well as an exclusive deal for series developed by Leder.” She joins an impressive group sporting Apple overalls, including CODA director Siân Heder, activist Malala Yousafzai, Jon Stewart, Idris Elba, Alfonso Cuaron, Julia Louis-Dreyfus, and others.
Apple TV+ Orders Series Based on Unfinished Edith Wharton Novel
Image via Amazon
24 JUNE 2022 - In a desperate play to capture the young, hip, teenage viewing public, Apple TV+ is making a series based on the final novel written by Edith Wharton.
So transparent.
The Cupertino-streamer issued a press release Thursday, announcing an eight-episode series order for the show. Though it currently has no title, it’ll be based on the Pulitzer Prize-winning author’s unfinished final novel The Buccaneers. Describing the story, Apple says:
Girls with money, men with power. New money, old secrets. A group of fun-loving young American girls explode into the tightly corseted London season of the 1870s, kicking off an Anglo-American culture clash as the land of the stiff upper lip is infiltrated by a refreshing disregard for centuries of tradition. Sent to secure husbands and titles, the buccaneers’ hearts are set on much more than that, and saying “I do” is just the beginning…
I’ve only read a few novels by Wharton, though I am a fan. Ethan Frome is wonderful, though needlessly tragic. And The Age of Innocence, also wonderful, though also needlessly tragic. And the novella “False Dawn…” So wonderful… and… needlessly… You know I’m starting to sense a theme.
No word on when the series will premier, though the press release says it’s already in production. I gotta say, I’m really looking forward to seeing the buccancostumes.
Like their big buccanhats…
Apple TV+ Outs Trailer for Third Season of “Trying”
24 JUNE 2022 - One of Apple’s earliest comedies is giving it another go soon. The Cupertino-company issued a press release Thursday, teasing the third season of “Trying.” This is the one about the couple in the UK who were first trying to have a baby, then trying to adopt. Having successfully adopted, it seems, they are now trying to be parents.
While the show’s return is still about a month away, Apple has pushed out a trailer for the upcoming season. Seasons one and two of “Trying” are available to stream now on Apple TV+. The first two-episodes of the third season hit on Friday 22 July. Between now and then, you can catch the season-three trailer below.
WSJ: Recession Not Baked-In to Apple Share Price
23 JUNE 2022 - Earlier this week, Wedbush analyst Daniel Ives made the case that tech stocks are oversold and that a mild recession is already baked-in Apple shares at their current levels. “No it isn’t,” indicates a piece from The Wall Street Journal (Via Apple News+), citing the thinking of Bernstein Research analyst Toni Sacconaghi. The Journal’s Dan Gallagher sounds bearish on the market in general, making him particularly so on Apple. The way he sees it, the current price of Apple shares:
…reflects a steadfast belief that gadget buyers won’t be hanging up on the iPhone—still Apple’s most dominant product—or the company’s other devices in the event of a sharp global economic downturn that a growing number of experts and chief executives are projecting. The company has indeed managed through recessions in the past, though the past two happened to coincide with product launches that ultimately remade the company once focused on niche computers. Apple launched its first iPod digital music player in late 2001 in the midst of the recession sparked by the first dot-com bust, while the first iPhone launched in 2007 right before the global financial crisis ushered in the last major recession.
This sounds like a job for a mixed-reality headset, but what do I know? As for the other stuff Apple’s doing, “what other stuff?” seems to be his rebuttal. Quoting the post again:
…hardware still accounts for more than 80% of [Apple’s] total revenue. Even the services side has a large transactional component from categories such as App Store downloads. Toni Sacconaghi of Bernstein estimates that less than 10% of Apple’s revenue is recurring—the least among big tech hardware makers.
“Still just an iPhone company” definitely sounds like somebody who’s been reading Sacconaghi. Not that they are wrong, necessarily. As Yogi Berra might say, “we won’t know until we know.”
The Sate of iPhone Play Today
Meet Morgan Stanley Analyst Erik Woodring
23 JUNE 2022 - While worry around Apple and iPhone looms on the horizon for some, the current iPhone picture looks pretty good. We heard earlier this week about a rebound for May iPhone sales in China. UBS analyst David Vogt wrote to investors that “iPhone shipments increased ~13% YoY and ~155% month-over-month as Apple took material share” in the Middle Kingdom.
Though the note on his note did not say so, he was apparently looking at numbers from the China Academy for Information and Communications Technology (CAICT). I say so because a note from Morgan Stanley, parts of which were posted by Apple 3.0, show similar numbers, citing CAICT as their source. Basically, that organization posts numbers from domestic phone sales and imported phone sales. Since the only imported phones that sell in any real volume in China are made by Apple, a rise in imported phones tends to be equated to a rise in iPhone sales. Thus Morgan Stanley showing a rise of 14% for iPhone versus UBS’ roughly 13% iPhone rise.
Last month’s uptick for iPhone in China had UBS indicating that possible weakened iPhone sales were less of a worry. Now, Morgan Stanley analyst Erik Woodring is saying the same. Quoting Woodring:
…these strong May iPhone results help make up for the weakness in April and reflect the fact that Apple is the most sought after premium smartphone brand in China.
Also, Woodring’s the new analyst on Apple for Morgan Stanley. According to Apple 3.0, “Katy Huberty has moved into a management role.” The site has the firm saying that Huberty “is still involved with Apple coverage as it transitions over to Erik.”
Morgan Stanley has an “Overweight” rating on Apple shares. The firm’s price target on the shares is $185.
Counterpoint: iPhone Topped Global Smartphone Sales in April
When you’re looking at the top smartphone makers on Earth, it’s practically a two-horse race. At least it was a couple of months ago. Counterpoint Research hit this week with global smartphone sales for the month of April. According to the firm, five of the top-ten smartphones sold in April were made by Apple, four were made by Samsung, and one - the tenth-most popular phone - was made by Xiaomi (see chart above).
Running down the list:
iPhone 13
iPhone 13 Pro Max
iPhone 13 Pro
iPhone 12
Samsung Galaxy S22 Ultra 5G
Samsung Galaxy A13
iPhone SE 2022
Samsung Galaxy A03 Core
Samsung Galaxy A53 5G
10.Xiaomi Redmi Note 11 LTE
Impressive as the list is for Apple and Samsung, Counterpoint points out that the top-10 models only account for about 20% of April’s total smartphone market. The firm also notes the growth of 5G on the list. In April of last year only four phones in the top-10 were 5G enabled. This year, that number is up to seven - not overly surprising considering all five of Apple’s phones on the top-ten sport and support 5G.
Notable in its absence is iPhone 13 mini. Counterpoint did not note that, though I did and do. Not that smaller and less expensive iPhones don’t have their place. On the seventh-place iPhone SE, Counterpoint says:
The recently launched iPhone SE 2022 saw triple-digit MoM growth, entering the top 10 list. The model has done particularly well in Japan where it topped the sales chart for April and captured 18% of the nation’s smartphone market share.
Evercore Pleasantly Surprised by Apple Services Survey
23 JUNE 2022 - While Bernstein’s Sacconaghi and The Wall Street Journal’s Gallagher may pooh-pooh Apple’s Services side, Evercore analyst Amit Daryanani sees a lot happening in it. Apple 3.0 ran part of a note he wrote Wednesday, wherein he said a recent survey of over 3,000 smartphone users “surprised to the upside…” Paraphrasing some of his key points:
Services ARPU [Average Revenue Per User] in the US is ~$108, better than Evercore’s global estimate of $81, though he does point out that people from the US spend like people from the US.
He and his expect Average Revenue Per User to grow at a 17% Compound annual growth rate through FY26, with “plenty of runway” for Services like Apple Music, Apple TV+, Apple Arcade, and so on.
While Apple Pay adoption is “still low relative to international markets,” Evercore thinks products like Apple Card and Apple Pay Later will boost that.
Apple TV (one assumes he means Apple TV+) stands to pick up more users/subscribers as Apple adds sports offerings.
Evercore expects AppleCare to keep growing if/as the cost of Apple gear moves higher.
If there was any negative in his takeaways, it was tied to Apple Music. Quoting that point:
Music – while music adoption remains respectable at 22%, it’s notable that more iPhone users prefer SPOT (28%) vs. Apple Music (22%). Shifting this via. bundling could be beneficial for AAPL…
Mostly though, the survey was more positive than the firm expected, increasing the team’s “confidence that Apple can continue to grow the [Services] business at a mid-teens rate.”
Evercore has an “Outperform” rating on Apple shares. The firm’s price target on the shares is $210.
Cult of Mac: A Review of M2 MacBook Pro Reviews
23 JUNE 2022 - The first reviews of the 13-inch M2-powered MacBook Pro are out. Cult of Mac has gathered a bunch of them. Bottom line: They like the performance and hate the form factor, as if they couldn’t have written that last part before they tried the machine. According to the Cult:
Engadget says it “seems a bit like a relic from another era.”
According to CNET, “the M2 MacBook Pro has a throwback design. Its look can be traced back more than a decade.”
And Wired harshes on the device, saying it’s “a machine that’s quite literally a processor update and nothing more.”
Points off for bulkiness, allowing for a fan that Cult of Mac argues is unnecessary. Reviewers are also upset that Apple’s Touch Bar lives to fight another day.
The M2’s a dream though, though - perhaps a confusing one? While it is faster than the M1, it is apparently not as peppy as the M1 Pro nor the M1 Max. But those are 14 and 16-inch machines. If you need small and now, this is the best Apple has to offer, according to CNET. Of course, the M2-powered 13-inch MacBook Air is due out next month. Be sure and work that into your calculations.
New OS Version Betas Out to Developers
23 JUNE 2022 - Work on the future of Apple’s ecosystem continues. 9 to 5 Mac hit with a few pieces on Wednesday, saying that the second betas of iOS 16 (and one assumes iPadOS 16), macOS 13 Ventura, watchOS 9, and tvOS 16 are available to developers. Apple will start making such betas available to its public testing program sometime in July. You can get in on that action at beta.apple.com.
Over the Air Update Brings Apple’s CarPlay to Polestar 2
Image via Polestar on Twitter
23 JUNE 2022 - A car powered by Android can now play Apple’s way. Engadget says electric vehicle-maker Polestar has made an over-the-air update available for the Polestar 2, making Apple’s “CarPlay available on the Android Automotive-based sedan.” Polestar made the announcement via Twitter, saying:
The most fun part about driving a Polestar is driving it, but there's more to it. Our latest over-the-air update for the Polestar 2 comes with Apple CarPlay, allowing Polestar owners with an iPhone to change music, use apps, and communicate through Siri or the infotainment system
VW CEO Predicts Apple Will Go with CarPlay, Not Cars
Apple teases future of CarPlay in iOS 16 during WWDC22 Keynote.
23 JUNE 2022 - At least one carmaker thinks CarPlay is about as far as Apple will go in automotive. MacRumors highlights a Reuters report that has Volkswagen CEO Herbert Diess expressing skepticism around a full-on Apple car. The piece has Diess saying, “I'm not sure if Apple will actually bring cars to the market in the end. It would be a big effort…” Rather, he thinks Apple will focus on, what the report calls, “car cockpit software…”
Certainly, Apple made a big move in that directions with its future of CarPlay tease at this month’s Worldwide Developer Conference. Writing of that, MacRumors says:
Users will be able to personalize their in-car experience by choosing different gauge cluster designs and widgets, with the new version of CarPlay effectively offering a wholly Apple-designed experience for all of a car's displays and functions.
While it’s hard to imagine carmakers giving up that level of control, Apple has said that each “will be able to retain a sense of brand identity with the new system.” While VW has not committed to employing Apple’s new CarPlay, MacRumors says two of its “sub-brands,” Audi and Porsche, do plan to put it in the dash.
UBS Sees iPhone Recovery in Weak Smartphone Market in China
22 JUNE 2022 - May was a good month for iPhone in China. That’s the word from UBS analyst David Vogt, according to a piece from investing.com.
Overall, smartphones were down 9% y-o-y. Pretty ugly considering the easy compare from May of 2021, when smartphone shipments were down 31% versus May 2020. Month-to month though, shipments were up about 16%. Vogt says “data suggests Covid lockdowns and supply chain shortages on the margin are abating…” three cheers.
Things were much better for iPhone, as stated. On that, Mr. Vogt wrote, “we estimate iPhone shipments increased ~13% YoY and ~155% month-over-month as Apple took material share…” That gave iPhone about 16% of the Middle Kingdom’s market for the month. He and his think iPhone shipments in China are down about 9% for April and May combined, way better than the broader market - estimated to be down about 23%. “As a result,” says the site:
…UBS believes its 42 million June quarter iPhone estimate should already capture the potential disruptions minimizing downside risk ahead of the tech giant’s earnings release next month.
In other words, that 42-million expectation is unchanged. At least officially. That said, another piece on the same note from Barron’s had Vogt saying that the latest numbers increase his firm’s “confidence” that their “June forecast could be conservative.”
Does “confidence” really belong in that sentence? “I’m increasingly sure I could be wrong?” Eh…
Mr. Vogt has a “Buy” rating on Apple shares. His price target on the shares is $185.
Ericsson Sues Apple in UK Over 5G Patent Use
22 JUNE 2022 - The slugfest between Apple and Ericsson continues. iMore says the wireless tech company’s global fight against Apple has grown by one country in the past few days, with the UK added to the list. That brings the total number to six, according to the report. The fights center around 5G. “Until recently,” says the iMore piece:
…Apple had a licensing deal over 3G and 4G with [Ericsson], however when this expired [Apple] failed to reach a deal on a fresh licensing agreement that included 5G.
Kind of a big “oops” considering all of the iPhone’s now include 5G. It doesn’t sound like Apple is arguing over Ericsson’s ownership of the intellectual property, but how much they should have to pay to use it. iMore says, “Ericsson isn't seeking any kind of ban or injunction against Apple…” No calls to block the import of existing iPhones and no hinderance for phones of the future. They just need to settle on a price, or have various courts settle it for them.
No word in the report on next steps for the UK case. Apple and Ericsson are expected to meet in a US court over the same issue in 2023.
Apple Updates Pages, Numbers, and Keynote to v12.1
22 JUNE 2022 - Updates for Apple’s productivity suite on Tuesday. A piece from 9 to 5 Mac says Pages, Numbers, and Keynote each got revised to version 12.1 for the Mac, iPhone, and iPad.
The updates for Pages and Numbers are kind of dull, but what do you want? They’re a word processor and spreadsheet program respectively. Improvements listed for Pages include:
Use mail merge to quickly create personalized letters, cards, and envelopes for multiple recipients;
Select from stylish new templates for event invitations and students certificates;
Export your Pages documents as TXT files.
As for the Numbers improvement, Apple says:
Improved performance when inserting rows and columns in large tables.
If any of the three can be said to be sexy, it’s Keynote. Features listed for the update:
Add subtle movement and visual interest to your presentation with dynamic backgrounds that move continuously as you transition from slide to slide;
Select from new animated themes featuring dynamic backgrounds;
Skip or unskip all slides in a collapsed group.
All three apps are free and so are their updates. Each is available in their respective App Stores.
Nicole Kidman and Javier Bardem Married Again for Apple’s “Spellbound”
22 JUNE 2022 - Add a couple of Academy Award nominees to the animated cast of Spellbound. Variety says Nicole Kidman and Javier Bardem are joining the Skydance Animation/Apple Studios musical. According to the piece, Spellbound tells the story of Princess Ellian:
…a young royal who embarks on a daring journey to save her family and kingdom after a mysterious spell transforms them into monsters and threatens to cover [the kingdom] in darkness forever.
“West Side Story’s” Rachel Zegler will voice the princess. Kidman and Bardem will play her parents, marking their second turn as an on-screen couple. Both were nominated for Oscars for their roles as Lucille Ball and Desi Arnaz in last year’s Aaron Sorkin film Being the Ricardos.
Plenty more star-power where that came from. Other actors include John Lithgow, Nathan Lane, Jenifer Lewis, and more. Alan Menken, who penned such Disney ear-worms as “Under the Sea” and “A Whole New World” will provide songs and the film’s score. All of this under the directions of Vicky Jenson. She’s helmed such animated features as Shark Tale and Shrek.
No firm release date for Spellbound, though IMDB lists it as expected this November.
Apple TV+ Announces Original Podcast on the Unabomber
22 JUNE 2022 - The most valuable company on the planet, also one of the world’s largest tech companies, is making a podcast about a guy who thought technology was destroying society.
Seems a bit on the nose, but okay.
Apple issued a press release Tuesday announcing “Project Unabom,” exploring “the story of serial bomber Ted Kaczynski and what drove him to his dystopian vision…”
Featuring new original reporting from host Eric Benson (“Suspect,” “Witnessed: Borderlands”) — including access to thousands of original documents from Kaczynski’s personal papers and FBI files, exclusive interviews with his brother David Kaczynski, and the never-before-told story of the original suspects in the UNABOM case — “Project Unabom” tells the story of a nation and a family coming to grips with what was happening inside a tiny cabin in the Montana woods.
According to Wikipedia, the Unabomber Manifesto:
…contends that the Industrial Revolution began a harmful process of natural destruction brought upon by technology, whilst forcing humans to adapt to machinery, creating a sociopolitical order that suppresses human freedom and potential.
Now, you can hear his story in the car! At the park! On the toilet! All thanks to… well, you know…
There’s a trailer out for the show now. The podcast starts its eight-episode run next Monday 27 June.
Wedbush: Tech Stocks Oversold, Apple Still a Top-Pick
21 JUNE 2022 - Wedbush analyst Daniel Ives has a message for investors selling tech stocks down to the ground: Would you stop it already?!?
Apple 3.0 ran part of a note he wrote Monday, wherein the analyst argued that “tech stocks have overcorrected” and that a mild recession is already baked-in at their current levels. Not that he doesn’t get it. Quoting his note:
In what has been an absolutely brutal year for the market and especially tech stocks, the path of least resistance for investors is to stay away from any risk assets till the dark economic storm clouds clear. We clearly could be looking at a very volatile few months still ahead as the Street tries to get a gauge if inflation has started to finally peak and what type of recession now likely lies ahead into 2023… While consumer-facing tech and WFH poster childs are seeing clear softening and demand starting to dry up in the field especially around digital advertising; on the other hand enterprise cloud, cyber security, and high priority pockets of IT budgets are holding up particularly well based on our recent checks.
Where does that leave Apple? In a kind of special Apple place. Tech’s going to go two directions in his estimation. E-commerce and “digital ad plays” could take continued beatings “with fears around soft 2Q results around the corner.” Meanwhile, the strong side of tech will be “driven higher by software, semis, cyber security, and product-driven names (Apple) as part of this digital transformation…” Quoting the analyst again:
Our view in a nutshell is that tech stocks have overcorrected and especially cloud/cyber names are way oversold at current levels for investors willing to own these names on the other side [of] this storm into 2023.
Apple shares remain a top-pick for Wedbush, along with Microsoft and Salesforce. The firm’s price target on Apple shares stays at $200.
President Biden “Proud” of Apple Store Union Vote
21 JUNE 2022 - Employees at Apple Towson Town Center got a message of support from down the road on Monday. Over the weekend, that store - just outside of Baltimore, MD - became the first Apple Retail location in the U.S. to vote to unionize. The message of support came from about 60-miles down the road. 1600 Pennsylvania Avenue. The president of the United States.
MacRumors had U.S. President Joe Biden saying Monday morning that he was “proud” of the employees who’d voted to unionize. The piece had the president telling reporters that, “Workers have a right to determine under what condition they are going to work or not work…” The president went on to say that “everyone is better off, including the final product is better off,” apparently referring to unionization.
Ming-Chi Kuo: AirTag Shipments Big Enough to Warrant 2nd Generation
21 JUNE 2022 - A crazy fragment of a sentence over the weekend from TF International analyst Ming-Chi Kuo. “AirTag,” began a Twitter post from the analyst, “which has not received much attention…”
And that, to me, is the crazy part. Between the difficulty getting them initially and around the holidays, early concerns over kids swallowing AirTag batteries, and the raft of security stories tied to Apple’s device tracker, how could he possibly say AirTag “has not received much attention”? Then I realize, he’s talking about business. Money. Do-re-mi. On that side, he’s probably correct, though he thinks that’s likely to change.
AirTag is small (both physically and from a business angle), but growing (from a business angle). And it’s likely big enough to get a second-generation, as the analyst sees it. By his reckoning, Ming-Chi Kuo says Apple shipped about 20-million AirTags last year and is on track to ship ~35-million through the end of 2022. “If AirTag shipments continue to grow,” the TF International analyst says he believes “Apple will develop the 2nd generation.”