EU Passes DMA and DSA
08 JULY 2022 - The EU’s DMA and DSA have passed, in theory. Apple Insider highlights a report from India’s Economic Times laying out the legislation.
The DMA (Digital Markets Act) is the one that would bar Apple from self-preferential treatment in searches. In other words, if someone searches the App Store for Music, Apple would be barred from listing Apple Music above Spotify or Deezer or whatever other music streamers are left. It would also require Apple to let users uninstall pre-installed apps, make certain functions (like iMessage) interoperable with similar, third-party apps, and - the big one - require open access to third-party app stores.
As for the other one, Apple Insider says the DSA (Digital Services Act):
…limits how companies can use any user data they collect for commercial activities and forces platforms to police user content to eliminate false information and hate speech…
Though passed through the EU’s governing body, the piece says the acts still have to be ratified by the 27 countries that make up the union. Assuming that happens, as most assume it will, both acts will go into effect around January 2024.
iOS 16 Beta Adds Awards for Apple Fitness+
08 JULY 2022 - For you fitness freaks and completionists out there, news of a whole new set of virtual awards coming to Apple’s ecosystem. A piece from MacRumors says the third-beta of iOS 16 has revealed activity awards specific to Apple Fitness+. Currently, the piece explains:
…activity awards are earned by completing specific challenges, such as hitting a new Move ring record, having a perfect exercise week, or reaching 100 Move goals. The awards can be achieved both with and without Fitness+ workouts…
In iOS 16 though, Fitness+ users will get special awards tied specifically to Fitness+. The site says it’s seen awards in the beta for numbers of workouts, workout streaks, best workouts, and so on. If you’re a Fitness+ user bummed about having to start over, you shouldn’t. MacRumors says:
The awards are available retrospectively for completed Fitness+ workouts that have met an award's criteria, but users may not see the new awards on their devices until they complete their next Fitness+ workout.
Apple TV+ Series “Black Bird” Draws Critical Acclaim Ahead of Premier
08 JULY 2022 - There’s a creepy new drama on Apple TV+, and it is drawing praise. The Mac Observer says “Black Bird” is set to begin its run today - Friday 8 July. If you’ve lost track, past reports say:
Inspired by actual events, when [a] high school football hero and decorated policeman’s son (…) is sentenced to 10 years in a minimum security prison, he is given the choice of a lifetime — enter a maximum-security prison for the criminally insane and befriend [a] suspected serial killer (…), or stay where he is and serve his full sentence with no possibility of parole.
They want him to do that so he can get a confession from the killer before the killer can get out on a technicality, it seems.
The show is notable for a couple of reasons. First - It likely represents the last television role for Ray Liotta. The actor, best known for his portrayal of gangster Henry Hill in Goodfellas, passed away in May. The other notable note: Critics are really into “Black Bird.” Hours before its premier, the latest Apple series had a critics score on RottenTomatoes of 97%.
The first two episodes hit today. Be warned - looks creepy. If you want to know what you’re getting into before you get into it, you can catch the trailer below.
Apple TV+ Picks Up 53 HCA Awards Nominations
08 JULY 2022 - awards season is over! Long live awards season!
It seems like only yesterday every award available was going to the movie CODA. So… you know… time to do TV. Apple issued a press release Thursday, announcing 53 Hollywood Critics Association Awards nominations - nearly half of which went to two shows. According to the release:
Apple TV+ (…) was recognized as the most nominated streaming service by the Hollywood Critics Association, scoring a record 53 nominations, with “Severance” and “Ted Lasso” leading the Best Drama and Best Comedy Streaming categories, respectively, with 12 nominations each.
Plenty of categories wherein Apple TV+ shows and their actors will be going head-to-head.
“The Morning Show,” “Pachinko,” and “Severance” are each up for Best Streaming Series, Drama
“The Afterparty,” “Dickinson,” “Schmigadoon!,” and “Ted Lasso” are each up for Best Streaming Series, Comedy
“Acapulco” and “Pachinko” are both up for Best International Series
Over 20 actors and actresses from Apple TV+ series are facing off in various categories
And, just like Captain America, I could do this all day. But I’m not gonna. 53 nominations. Seriously.
If you want to see all of Apple’s noms, they are available on the news site for Apple TV+. “The Hollywood Critics Association Awards will be presented at The Beverly Hilton in Los Angeles on August 14,” according to the release.
M2 MacBook Air Goes Up for Order Friday 8 July
Detail of M2 MacBook Air - via Apple
07 JULY 2022 - If you’re planning to buy one of Apple’s upcoming, M2-powered MacBook Airs, you may have plans for tomorrow. Apple issued a press release Wednesday saying that the new machine will go on order tomorrow - Friday 8 July, with shipments and (one assumes limited) in-store availability set for the following Friday 15 July.
Available in midnight, starlight, silver, and space gray, the off-the-rack machine will run buyers $1,199. Education pricing starts at $1,099. Online orders start this Friday at 8am EDT/5am PDT.
Morgan Stanley: China Slowed App Store Revenue Growth in June
07 JULY 2022 - The App Store’s still growing, though that growth has slowed. That’s the top line from Morgan Stanley analyst Katy Huberty, not Morgan Stanley analyst Eric Woodring. Apple 3.0 ran part of a note she wrote. According to that, the issue is China, while the problem is missed expectations. Here’s what happened: For the month of June, App Store revenue grew 9% or more year-on-year in “6 of the App Store’s 10 largest markets.” And yet, as a whole, growth in the App Store was only up 2.5%.
Because, China. According to the analyst, “App Store net revenue growth in China inflected to [a] 6% Y/Y [decline] in the month of June…” That accounted “for more than 100% of the total App Store deceleration in June vs. May,” according to the note.
That was unexpected. And - of course - the unexpected tends to mess with expectations. For example, for the June-quarter, Morgan Stanley had been expecting App Store revenue growth of 6%. They’re now expecting 5% - a miss of about $67M on someone’s part.
Worth watching, though not a huge source of worry, it seems. Morgan Stanley maintains an “Overweight” rating on Apple shares. The firm’s price target on the shares is $185.
Evercore Sees Modest Apple Beat for June-Quarter
07 JULY 2022 - Even less worried than the folks at Morgan Stanley is Evercore analyst Amit Daryanani. Apple 3.0 ran part of a note he wrote, wherein he predicted a “modest” beat by Apple for the June-quarter. That’s a beat of Wall Street expectations, not any stated by Apple. As it’s done since March of 2020, Apple declined to offer guidance for the most recent quarter thanks to #TheseTimesInWhichWeLive.
Of course, last quarter is very last quarter. The way Daryanani sees it:
The bigger focus will be Sept-qtr guide that we suspect could qualitatively be below current expectations given a challenging f/x environment and evolving macro situation.
[Whispers] He’s talking about war. And inflation.
Five factors he sees figuring in:
Weak Chinese smartphone data (-9%),
App Store deceleration to ~4% growth,
Micron and others flagging weakness in smartphone/PC demand.
Foxconn Update was a key positive data point with Foxconn reporting strong June sales (+30%) and raising its full year guidance,
F/X dynamics – we estimate f/x could be a 100bps headwind to model going forward vs. initial expectations.
Bottom line, Daryanani says he and his:
…are relatively neutral this quarter as we think Apple is contending with numerous headwinds, but these risks should be adequately understood and reflected in expectations.
Neutral for the quarter, but still positive on the stock. Evercore has an “Outperform” rating on Apple shares. The firm’s price target on the shares is $180.
Remind Me to Make a Call…
And thus begins the parade of guessing. Estimating. Eh, somewhere between guessing and estimating. Apple has set earnings for the June-quarter - the third-quarter of fiscal year 2022 - for Thursday 28 July. Numbers will go out after the close of trading - 4:30 EDT/1:30PDT. Half-an-hour later, Apple will host its call with financial analysts. That’ll be streamed live on Apple’s investor page. It’ll also be available to replay there for a couple of weeks. Apple will make the call available as a podcast soon after, though that’ll also only be available for a couple of weeks. You can also keep it right here - where lights high and low will be hit within hours of all of it.
Ming-Chi Kuo: Latest Processors for “Pro” iPhones Only Starting This Fall
07 JULY 2022 - Interesting news/rumor reiteration around the next round of iPhones. TF International analyst Ming-Chi Kuo says Apple’s top-end processors will be reserved for Apple’s top-end phones, starting with this fall’s iPhone 14. In a Medium post, the analyst said:
The latest A16 processor will be exclusive to two iPhone 14 Pro/high-end models, significantly boosting the shipment proportion of new iPhone high-end models in 2H22 to 55-60% (vs. 40–50% in the past).
Not that his analysis is all about Apple and iPhone. Folks wanting the latest processor will end up buying iPhones with better cameras, which will end up being a bonus for manufacturers of those components. And that’ll be the way going forward, according to the analyst. Quoting the post again:
The latest processor chip will be exclusive to iPhone high-end models in the future, so a high shipment proportion of iPhone high-end models will be the norm…
I said earlier this this was news/rumor reiteration. A report back in March had the analyst saying that the two phones at the “Pro” end of the iPhone 14 line will sport Apple’s A16 processor, while phones at the consumer end will stay with the current A15.
Report: Display Maker BOE Cleared for iPhone 14 Inclusion
07 JULY 2022 - One Apple supplier appears to be out of the penalty box. Back in May we heard word that Apple had sidelined iPhone display supplier BOE. That was prompted by BOE changing the design of its OLED panels without Apple knowing.
BOE’s place in Apple’s supply chain seemed as much about leverage as supply - if not more so. BOE was only expected to produce 30-million to 40-million displays for the iPhone 14 line. While any disruption in the supply chain is serious these days, reports indicated that BOE was likely to be back in the mix, as having BOE in the loop keeps pressure on iPhone’s primary display manufacturers Samsung and LG.
T’s dotted and I’s crossed, BOE seems to be back in Apple’s good graces. A piece from iMore says:
Apple has approved OLED panels from display maker BOE which will see the company make more than 5 million iPhone 14 panels ahead of the device's release in September.
Again, not a huge amount when we’re talking iPhone. TF International analyst Ming-Chi Kuo has said he’s expecting manufacturers to take delivery of components for as many as 100-million iPhones through year’s end. Still, BOE's return should be good for parts and leverage.
Apple Seeds Third Betas of Next Operating Systems to Developers
07 JULY 2022 - No rest for the wicked - where “wicked” equals “developers.” Nothing personal, developers. It’s just a figure of speech. While we heard earlier this week that Apple had made available to dev-types the latest betas of current operating systems, work progresses on the next round of operating systems as well. To that end, a few pieces from MacRumors have Apple seeding the third betas of iOS and iPadOS 16, macOS 13 Ventura, watchOS 9, and tvOS 16 to developers.
Because they are wicked. And they get no rest.
Apple Initiatives Target State-Sponsored Spyware
07 JULY 2022 - A couple of hardcore security moves from Apple on Wednesday. Well… announced by Apple on Wednesday. The Cupertino-company issued a press release announcing a tool for potential targets of state-sponsored spyware, as well as a lot of money to study such threats.
On the announced tool, Apple says Lockdown Mode will make its way to folks this fall inside iOS 16, iPadOS 16, and macOS Ventura. According to the release:
Lockdown Mode offers an extreme, optional level of security for the very few users who, because of who they are or what they do, may be personally targeted by some of the most sophisticated digital threats, such as those from NSO Group and other private companies developing state-sponsored mercenary spyware.
Sounds like Apple’s talking human rights activists, some journalists, heads of corporations maybe. Ivan Krstić, Apple’s head of Security Engineering and Architecture, was quoted in the press release, saying:
While the vast majority of users will never be the victims of highly targeted cyberattacks, we will work tirelessly to protect the small number of users who are. That includes continuing to design defenses specifically for these users, as well as supporting researchers and organizations around the world doing critically important work in exposing mercenary companies that create these digital attacks.
Speaking of which - Apple has pledged $10 million (plus any damages it wins from its lawsuit against NSO Group) “to support organizations that investigate, expose, and prevent highly targeted cyberattacks, including those created by private companies developing state-sponsored mercenary spyware.”
Administered through the Dignity and Justice Fund, the release says the first part of the $10 million grant is expected to go out to researchers by late this year, or early 2023.
Apple Releases Full Trailer for “Luck” Ahead of 5 August Debut
07 JULY 2022 - No clue how I missed this, but the Apple Original Films/Skydance Animation movie Luck hits Apple TV+ in just under a month, and the company has released a full trailer for it. That's the part I missed. The trailer actually landed a little over a week ago. According to the trailer’s description:
…Luck is a story about Sam Greenfield: the unluckiest person in the world. Suddenly finding herself in the never-before-seen Land of Luck, she must unite with the magical creatures there to turn her luck around.
The movie hits Apple TV+ on Friday 5 August. The trailer is available below.
Arguments Over iPhone Expectations
06 JULY 2022 - J.P. Morgan analyst Samik Chatterjee has lowered his expectations for Apple, though not his target and rating. Apple 3.0 ran part of a note he wrote late last week. Right now, he seems to think everything’s fine. A year from now, everything will be fine. But that middle bit - that’s an interesting place/time with a few voices in the mix. “…beyond the near quarter,” reads part of his note:
…the headwinds drive us to lower our revenue and earnings forecasts modestly, led by lower volume expectations (iPhone 14 expected to be modestly below iPhone 13) and escalating FX headwinds.
14 Fewer Than 13?
It’s that iPhone 14 demand issue that’s raising a few voices. Late last week, 9 to 5 Mac ran a highlight of a DigiTimes report that said Apple was cutting iPhone 14 orders by 10%. Not a surprise #InThisEconomy, except the issue isn’t demand. Rather, the piece says, the problem is components. According to 9 to 5 Mac:
The issue began when Apple’s supplier TSMC had three major customers adjust their orders, worsening the semiconductor situation. With the ongoing shortages, these customers couldn’t continue with business as usual.
Disbelieving of the DigiTimes story is TF International analyst Ming-Chi Kuo. Following word of the order reduction, the analyst spoke up with a series of Twitter posts. The way he sees it, Apple is unlikely to adjust iPhone orders this far out. The company tends to let the phones out first, in his estimation, only then gauging the “actual market demand/feedback.” In a separate Twitter post, the analyst wrote:
If a supply chain issue causes a significant change in the shipment plan of the new iPhones before mass production, Apple usually postpones the orders instead of cutting them.
All of that said, he sticking with the same numbers he posted last week: components enough for 100-million iPhones with expectations that the people who put them together will put together 90-million iPhone 14s by the end of this year.
Back to the Future
Getting over the hump that is the near term, while Chatterjee doesn’t seem excited about the overall economy through the next several quarters, he’s not worried about Apple. While he seems to hint at a hardware slowdown through Apple’s fiscal year 2024 thanks to “a slower macro,” Apple shares will be fine thanks to Apple’s ability to raise prices when necessary and its ability to buy back shares.
Mr. Chatterjee has an “Overweight” rating on Apple shares. His price target on the shares is $200.
Apple Drops Top Hardware Trade-In Payouts
Image by Mediamodifier from Pixabay
06 JULY 2022 - That old grey Mac ain’t worth what it used to be. MacRumors says Apple has taken a red marker to trade-in prices on existing hardware, reducing the high-end of what they will pay out. Offering a few examples - the most Apple will pay for:
iPhone 12 Pro Max is $600, down from $650
iPhone 12 Pro: Up to$500, down from $550
iMac Pro: Up to $1350, down from $1500
iPad Pro: Up to $555, down from $655
And that list goes on. You can see it for yourself over at MacRumors.
Prices Rise for Apple Hardware in Japan
06 JULY 2022 - A correction (I guess) to a story I brought you last week. We had heard word that Apple had raised the price on iPhone in Japan. That part was correct. The part that was wrong was the part that said it was only the iPhone on which Apple had upped hardware costs. That may have been true at the time, though a piece from iDownloadBlog says prices for iPad and Apple Watch have also increased. In fact, as of the iDownloadBlog writing, the Mac seems to have been the only hardware category that hadn’t seen an increase, though the site wouldn’t be surprised to see that happen, soon.
As for why, the site cites a Nikkei Asia piece, saying:
The yen has weakened sharply since the spring. The decrease in the yen’s value was so significant that it began to sap Apple’s overseas earnings. Reacting to those changes, Apple has decided to pass on these costs to consumers and simply raised prices for its most popular products…
That’s Nikkei’s thinking, anyway. Apple seems to have said nothing about the increases, according to iDownloadBlog.
Apple Offering $50 Gift Card with Online Purchase of Apple TV in US
Apple TV 4K and Remote - Image via Apple
06 JULY 2022 - Apple’s running a decent discount on Apple TV - that’s the hardware, not the streaming service Apple TV+. Cult of Mac says the Cupertino-company “is bundling a $50 gift card” with the purchase of an Apple TV 4K or Apple TV HD in the US. The deal is online-only, according to the report, and only through next Thursday 14 July.
Not a bad deal, though every article I’ve seen about the offer comes with a big reason one might not want to hit the “buy” button. According to the Cult:
[Apple] is likely running this campaign to clear the existing Apple TV inventory before debuting a new model later this year. Rumors indicate the next Apple TV could feature a more powerful A14 chip and 4GB RAM.
Mac Studio Turns Up in Apple Refurbished Store
06 JULY 2022 - An interesting find in Apple’s Refurbished Store. MacRumors ran a piece late last week saying that refurbished Mac Studio models had turned up among Apple’s “like new” offerings. At the time, the piece says, models included:
…one with the M1 Max chip (10-core CPU and 24-core GPU) for $1,799 (down from $1,999 brand new) and one with the M1 Ultra chip (20-core CPU and 48-core GPU) for $3,599 (down from $3,999 brand new).
They were available in Canada, the UK, the US, and “select” European countries. They are not available as of this writing, but the refurbished store’s a funny place, with inventory ebbing and flowing. There’s a place in the refurbished store for Mac Studio. If one sounds cool to you - be on the lookout.
Fifth Betas of Current Apple OSes Out to Developers
06 JULY 2022 - The OS update tango continues. A couple of pieces from Apple Insider tracked the progress on Tuesday. One had Apple seeding the fifth betas of iOS, iPadOS, and tvOS 15.6 to developers, along with watchOS 8.7. The other had Apple hitting dev-types with the fifth beta of macOS Monterey 12.5. If they’re not out to Apple’s public testing program today, I will not eat my hat. But I will be moved to utter such old timey phrases as “land o’ goshen” and “well, don’t that beat all…”
Free Beats Flex Earphone for New Apple Music Student Subscribers
Beats Flex - Image via Apple
06 JULY 2022 - On the heels of a recent price hike, news of a new gift for new subscribers to the Apple Music student plan. We heard last week of a price rise for students in Canada, the UK, and the US. Prices went up a buck-a-month in the North American countries - from $4.99 to $5.99, while in the UK they ticked up a pound, moving from £4.99 to £5.99.
This will likely not remove the sting from that, with Canadians getting doubly hosed. A piece from Cult of Mac says:
Apple is giving new Apple Music student subscribers free Beats Flex earphones worth $69.99. The offer is only for eligible students in the United States and the U.K.
More like Canada high and dry, amiright?
Terms don’t sound too onerous. According to the Cult:
You need to make the first monthly payment to become eligible to get the Beats Flex earphones. They cannot be redeemed during the initial one-month trial period.
Because, duh. Folks taking advantage will get an email within 30-days of eligibility. Happy listening.
Tim Cook Reportedly Headed to Sun Valley This Week
Mornings in Sun Valley - From the Flickr stream of Thomas Hawk
06 JULY 2022 - Word on the street has Tim Cook headed to the mountains this week. Apple Insider highlights a Deadline report that has Apple’s CEO making his way to the annual Allen & Co Sun Valley media retreat. For those not familiar, the piece says:
Investment bank Allen & Co has been hosting a Sun Valley media retreat for 40 years, only missing 2020 because of the coronavirus. Leaders of major media outfits attend the mix of social event and conference, and the retreat is known for being where significant mergers are first discussed.
Execs from Sony, Fox, Warner Bros, and Paramount will be in attendance. Others expected include Tesla’s Elon Musk, Facebook’s Mark Zuckerberg, Amazon's Andy Jassy, and Google's Sundar Pichai. One imagine’s Apple’s head of Services Eddy “the Butler” Cue will be there as well. Apple Insider says Cook and Cue have both hit the retreat since 2019.