Reading Between the Lines of Apple’s 4Q24 Earnings Q&A With Analysts
Hello everyone. We will return to reviewing Apple’s 4Q24 earnings.
Here’s what we have discussed so far:
Last Friday: Big picture thoughts / comparing Apple’s results to my expectations.
Monday: Focus on revenue growth.
Tuesday: Focus on Apple Services.
Thursday: Examine Apple’s earnings call with analysts
After today’s update, our Apple earnings review will be nearly complete.
Reading Between the Lines of Apple’s 4Q24 Earnings Q&A With Analysts
After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over my response to the exchange. Let’s go beyond what was talked about on the call with the 12th installment of reading between the lines of Apple's earnings Q&A with analysts.
NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Luca”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, Motley Fool offers a written transcript here.
Apple Intelligence
Q (Goldman Sachs): What Apple Intelligence feedback have you received from users and developers? Is Apple Intelligence driving iPhone sales?
Cook: There is interest for Apple Intelligence. In the first three days, 18.1 adoption is twice as fast as 17.1 adoption last year. There is going to be a “very strong” drumbeat to launches and releases from now into 2025.
My response: Out of 18 analyst questions asked on Apple’s 4Q24 call, seven (40%) had to do with Apple Intelligence. On one level, the interest is understandable as Apple has been talking up Apple Intelligence since it was unveiled in June.
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The Redesigned Mac Mini, The Setup Facing Apple Ahead of 4Q24 Earnings
Hello everyone. Today's update will kick off with new Apple product news, followed by the start of our Apple 4Q24 earnings preview. The earnings talk will flow into tomorrow’s update.
Let’s jump right in.
The Redesigned Mac Mini
Day 2 of Apple’s Mac week was all about the Mac mini (and M4 Pro chip).
Before we get to the device, Apple’s strategy of breaking up its Mac announcements into multiple days is striking me as a good one.
Each announcement is getting much more play on social media versus combining the announcements into one event or update. Such a strategy won’t work though for in-person Apple events when various products announcements are combined to take advantage of the press being on site. For non-event releases that involve multiple products, breaking up the news into individual announcements, complete with taped presentations, makes sense to me. We will see if this is something that Apple will look to replicate in the future.
As for the updated Mac mini, you can tell
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Above Avalon Membership
Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
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An audio version of the newsletter is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-ons.