Apple Device Upgrading Is Improving, Apple’s Underpenetrated Services Business
Today's Above Avalon Daily update includes the following stories:
Apple Device Upgrading Is Improving
Apple’s Underpenetrated Services Business
Happy Monday. This past Friday’s update included my initial thoughts on Apple’s strong earnings and how my numbers compared to Apple’s results.
The following snippet was from Friday’s update:
“Apple’s financials are now showing the impact from management doubling down on its ecosystem via:
More frequent and substantial product updates (thanks in big part to Apple silicon). One way of getting existing users to [up]grade is launch new and exciting product updates that add genuine value to people’s workflows and lives.
Greater awareness on management’s part that Apple’s ecosystem is severely under-penetrated from a Services monetization standpoint. Apple’s AI strategy is flying under the radar with the company well-positioned to leverage its role as distributor of AI-infused apps and services to an ecosystem of 1.5B+ premium users.”
There’s much to unpack from that snippet regarding two of the major takeaways from Apple’s earnings: Improving Apple device upgrading trends and Apple's Services growth potential.
Let's jump right in.
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