Assessing phone sales, preparing for an earnings report, and again with all beta versions of the operating system.
Evaluate phone sales
Corning Notes Q3 Drop for smartphones, tablets and laptops
Another sign of slowing smartphone sales. AppleInsider Apple supplier Corning reported earnings for the September quarter on Tuesday. The company omitted Wall Street expectations, thanks to “a 14% year-over-year decline in smartphone sales volume and a 17% drop in tablet and laptop glass orders.” That was for the September quarter. For the remainder of 2022, Corning CEO Wendell Weeks was quoted as saying:
We now expect smartphones to decline 12% for the year, and we expect demand for laptops and tablets to decline 15%… We expect the year-over-year decline in smartphones, laptops and tablets to be larger in the second half than in the first half.
What does this mean for Apple? Not surprisingly, Corning doesn’t break out sales for specific customers. that leaves AppleInsider leaning on the likes of “analysts of J. P. Morgan, cowY Morgan Stanley…” While budget-conscious phone sales may lack luster, the aforementioned analysts think “premium smartphones like the iPhone 14 Pro and iPhone 14 Pro Max are doing very well.”
JP Morgan takes aim at iPhone share among US carriers
Speaking of analysts… apple 3.0 has run part of a note Samik Chatterjee, JP Morgan analyst. He and his crew took a look at Wave7 Research data for US traders in September. The note is positive, although not without a bit of confusion. First, the decidedly Okay news from Apple’s point of view:
- “iPhone share across all three carriers improved significantly” once iPhone 14 lineup launched
- …despite limited inventory for the Pro models, the mix is clearly better as the iPhone 14 Pro is becoming a clear leader within the portfolio, relative to more balanced preferences between the Pro and base model in the past.
As for the bits of confusion:
- “The absolute share of iPhones is recording a lower level than in September 2021 after the launch of the iPhone 13,” according to the analyst.
- …the lack of differentiation for base iPhone 14 models and the lack of inventory of Pro models are cited as the main reasons why certain stores expect lower sales of iPhone 14 than iPhone 13.
apple 3.0 he suggests that part of the reason the 14’s market share has declined “is that more customers can order their phones directly from Apple.” The site lists that as some carrier information, though it’s unclear if it’s from Chatterjee’s note or other sources. In any case, the analyst remains interested in Apple. He has an “Overweight” rating on the company’s stock and a $200 price target.
Evercore: Apple TV+ price increase is carefully timed”
Us the week started with Evercore analyst Amit Daryanani saying that Apple would raise the price of its streaming video service, Apple TV+, at some point, you know, once it had live sports and a lot more content. The next day Apple raised the price of the service for a couple of dollars. Now, an analyst says the increase highlights the success of the service. That analyst, Amit Daryanani of Evercore.
Referring to the note with which we started the week, the analyst says “the increase in prices is added to [his firm’s] belief that Apple is organically creating the best premium streaming service in its class.” While the previous note had indicated that he didn’t think Apple had enough content to raise the price yet, he now think the increase is:
…timed carefully as Apple recently released the critically acclaimed second season of Acapulco, and over the next 6-9 months we look forward to new seasons of some of its biggest shows, including Ted Lasso, Severance and Mythic Quest.
Plus, it’s still cheaper than Netflix, HBO, and Hulu, so…you know…
Daryanani goes on to say:
Apple has done a good job of building out their content library, but in the next 3-5 years they should become much more competitive in terms of available content, as long as they can maintain their impressive hit rate.
Net/Net: The increase follows similar moves from other streams and supports that Apple is organically building the next HBO.
Daryanani is rated “outperforming” Apple stock. Your target price for the stock is $190.
Wedbush: “directional comment” key for Apple’s quarterly call
Activity on the financial front can feel like a day that ends in a “Y”, although this week has a little more urgency. That’s because this week, Apple is reporting figures for the fourth quarter of its fiscal year 2022, also known as the September quarter. Offering your opinion before those numbers is Wedbush Analyst Daniel Ives. apple 3.0 ran part of the note he wrote.
Against Apple, in his view, are currency headwinds and “a noisy few months” from doubters. As for the former, the analyst believes that iPhone 14 sales that have tilted towards the high-end should help Apple meet (perhaps single beat) Wall Street expectations. As for the noisy skeptics, guidance and comments from Apple CEO Tim Cook May be from some comfort. Quoting his note:
While we don’t expect specific guidance for the December quarter given the macro/FX/backdrop, we think Cook’s directional comments should be positive around iPhone 14 Pro demand heading into the big holiday season.
Ives thinks Street’s expectations for the December and March quarters are surmountable, though FX headwinds could complicate that up. Ives is rated “outperform” on Apple stock. Your target price for the stock is $220.
Apple 4QFY22 earnings report due tomorrow
As mentioned a moment ago, Apple’s Q4FY22 earnings report is due this week, tomorrow to be precise. The numbers will come out via press release after the closing bell. Then at 2 pm Pacific/5 p.m. You can listen to that as it happens. on the apple site. The company will make it available as a podcast soon after. [Apple Podcasts link]. And, of course, we’ll go over the highlights on Friday, October 28.
Study: Apple Watch blood oxygen readings are comparable to medical-grade hardware
Curious how good the Apple Watch’s blood oxygen sensor is? At least one study says it’s as good as a “medical-grade device.” 9to5Mac Stand out A study published with the National Library of Medicine. “Based on the results,” according to the report, “Apple Watch Series 6 is capable of ‘reliably detecting states of reduced blood oxygen saturation’ compared to medical-grade pulse oximeters.” Compared to the medical-grade Masimo Radical-7 pulse oximeter, the study’s conclusion says that the technology used in the smartwatch “is advanced enough for indicative measurement of [peripheral blood oxygen saturation] outside the clinic.
Apple hits developers with a slew of OS betas
From the “no rest for the wicked” archive, the software’s beta parade is once again underway. Apple released updates for everything on Monday, including the debuts of macOS 13 Ventura and iPadOS 16.1. Now a piece of 9to5Mac says that the Cupertino company has released the first beta versions of iOS 16.2, iPadOS 16.2, macOS 13.1 and watchOS 9.2. Meanwhile, a piece of MacRumors says that the company has also come up with the first beta version of tvOS 16.2.
The first days, of course, but 9to5Mac is already detecting new and/or anticipated features. One piece in iOS 16.2 beta says one allows people to notify Apple when Emergency SOS is accidentally triggered. I mean… “oops, an accident” accidentally, not “been in an accident” accidentally.
On the iPad side, another report of 9to5Mac says the new beta version 16.2 adds the tablet’s anticipated Freeform collaboration app. It also brings Stage Manager external display support, depending on the piece.
Apple updates add support for retro Nintendo controllers
And finally today, if you’re a Nintendo gamer and an Apple gamer, you might have one less controller to worry about. Or some new ones to consider. New… old, anyway.
AppleInsider says this week’s updates have added support for “a couple of nostalgic Nintendo controllers”. The company apparently makes a modern Bluetooth version of the Super Nintendo Entertainment System (SNES) controller, as well as a Bluetooth model of the Nintendo 64 controller. While Apple announced support for Nintendo Switch Joy-Cons and the Nintendo Pro Controller at WWDC, this week’s updates also included support for retro-trollers. AppleInsider says now all will work to play on tvOS, macOS, iOS and iPadOS — as long as you are running the latest updates.
Today on The Mac Observer Daily Observations Podcast
Mac Geek Gab co-host Dave Hamilton and I discussed the possibility of a post-hardware Apple. Additionally, Dave has been spending time on macOS Ventura; he will tell us what he has seen and what to consider when considering an upgrade. That’s all today the daily observations podcast of the mac watcher.