00:00Overnight, Bloomberg reported that iPhone is still on track.
00:04Let's try and understand this.
00:06Some analysis with Anna-Maragrana of Bloomberg Intelligence.
00:09It's almost in isolation, the idea that there will be a 20th anniversary, largely glass handset.
00:16The bigger point that Jeffries was making is they want to see Apple find a mechanism to raise ASPs and
00:23maintain higher ASPs for longer.
00:25Let's start there. Why does that even matter?
00:29See, the reason it matters right now is because of higher memory prices, you will have an impact on unit
00:34shipments.
00:35Now, Apple's really gained market share over the last two quarters.
00:38And in fact, we think it's going to be this quarter as well, because it's only one of the only
00:42ones in the premium segment that has not raised iPhone prices.
00:47And that's going to most likely happen in the fall.
00:50So, you know, eventually when you raise prices for consumer devices, the shipments still go down.
00:55So, ASP increase is the single most important thing for them to continue to show iPhone segment growth rate for
01:02the next couple of years.
01:04In Mark Gurman's reporting, we don't have a price for the proposed 20th anniversary glass-centric iPhone.
01:12But I guess the logic is that that would be a premium model.
01:16It's one mechanism, along with the folding phone, to have a mix of handsets where you can command ASPs, higher
01:23ASPs.
01:24Yeah, absolutely.
01:25In fact, the foldable, if it comes out to what I think Mark has said, somewhere around $2,500 or
01:31somewhere in that range.
01:32I mean, that's a massive lift compared to whatever the basic price of $1,200 or $1,300 for a
01:38Pro Max or somewhere in that.
01:39So, I mean, you can even imagine for that audience that can buy a Pro Max, you know, you're going
01:45and getting a similar device with a much higher ASP.
01:50So, that's a big lift to that.
01:51The question really is how many of those are there in, you know, your ecosystem?
01:56Because think about it.
01:57Apple sells somewhere in the range of 220 to 240 million phones a year.
02:02I mean, how many of those could be in that category?
02:04So, I think that's a more important piece at this point.
02:07But memory price is far, far more important for Apple than anything else.
02:13What Mark reported last night is that Apple still plans to launch iPhone Pro models next year that have the
02:19glassy look, glass used on the front and back, curving into the size of the devices that have a metal
02:24band.
02:25An Apple representative declined to comment.
02:27Real quick, what did Apple get wrong in that earnings print last quarter?
02:31Was it supply chain mismanagement, misreading demand?
02:35I think it could be just a matter of that the stock has gone through a massive run.
02:40I mean, if you look at the multiple before it started to go down, it was in the low 30s
02:44where all the hyperscalers were, you know, trading in the low 20s.
02:47So, I think it's a big mismatch in terms of valuation than anything else.
02:51I think everything else they said was pretty much in line with what people were expecting and a big, big
02:56iPhone number, which is not easy to replicate, frankly, given the history of the phone being saturated around the world.
Comments