Gene Munster, Brian BakerIndia Is Starting to Help Apple Diversify Its ProductionApple's dependency on China keeps investors up at night. Today Deepwater estimates that 40-45% of Apple's overall revenue is manufactured in China, and expects that to decline to 25-30% in five years. We believe half of the decline will be the direct result of production moving to India.Read more Apple
Gene Munster, Brian BakeriPhone 15 Upgrade Experience Underscores Apple Is a Consumer Staples CompanyApple excels at making consumer tech easy to use. The most recent example is the streamlined iPhone setup experience. Doing the little things right is why consumers who own one Apple product purchase additional products, locking those users in as lifelong customers.Read more Apple
Gene MunsteriPhone 15 Is Enough to Return Apple to GrowthApple’s fall hardware event featured the new iPhone 15 family and updates to Apple Watch at prices unchanged from a year ago. While most of these updates were incremental, they’re enough to attract the 400m iPhone owners with phones more than 4 years old, which should return Apple to revenue growth in the December quarter. Most impressive was the addition of spatial photo and video capability on iPhone 15 Pro models, which lays the foundation for Vision Pro demand, due out early next year.Read more Apple, Spatial Computing
Doug ClintonWhat a Venture Win Looks LikeWe met with a prospective LP recently to talk about investing in a specific company. This LP had a successful business career in a traditional industry where operating profits are the bar, so he had a hard time getting his…Read more Philosophy, Startup , Venture Capital
Doug ClintonAI is AwfulAI Reality Black Mirrors Fiction Imagine Netflix made a TV show about how you were a terrible person. It captures all the moments where you were kind of a dirtbag. It recreates other events throughout your day that cast you…Read more Artificial Intelligence
Gene MunsterApple’s App Store Is an Important Part of Its Profitability — And It’s Not ChangingThe Supreme Court rules that Apple does not have give developers the option to steer payments outside of the App Store. That means that status quo of the App Store business model which should generate about 20% of the company's operating income this year is intact. The ruling also keeps Apple one step ahead in Washington's pursuit of big tech regulation. Read more Apple
Doug ClintonThe Things AI Won’t ChangeHuman Nature Doesn’t Change In a world facing rapid change from AI, it’s the things that won’t change that you want to build on and invest in. That’s the classic perspective from Jeff Bezos. He famously told The Harvard Business…Read more Artificial Intelligence
Gene MunsterApple Setting up for Faster Growth in DecemberShares of AAPL traded down 2% after posting what was essentially an in-line June quarter. Guidance for September calls for a 1% y/y decline in revenue compared to expectations of 1% growth. Those details water down the most important dynamic of the quarter: the installed base of active devices hit an all-time record. That means Apple's ecosystem is expanding which is key for long term investors. This growing base should power revenue growth acceleration in December and for full year 2024. Read more Apple
Doug ClintonWhat Would You Pay for Personalized AI?Last week, we talked about the trillion-dollar opportunity in Personal AI. As a reminder, a Personal AI is “a chief of staff for your life…a scheduler, an organizer, an advocate, a buyer, a booker,” per Mustafa Suleyman, Inflection AI’s CEO. More than…Read more Artificial Intelligence
Doug ClintonA Trillion Dollar Market: Personal AIThe next installment in our AI series is an exploration of what we expect to be one of the biggest areas of AI in 3-5 years: Personal AI. It has the potential to create a trillion-dollar company. Maybe more than…Read more Artificial Intelligence