Six takeaways in a note to Loup Ventures subscribers posted Wednesday:
- Expect “new services” this year. Healthcare, periodicals and a streaming video service (Munster expects Apple to spend $1.4 billion on original video content this year).
- The China trade war is moving towards resolution. Cook: “I think a deal is very possible. And I’ve heard some very encouraging words.”
- iPhone trade-in bonuses will likely continue. Munster: “In our view, Apple is doubling down on trade-ins as a demand generation tool.”
- Revenue from wearables is already over 50% more than iPod was at its peak. Munster: “It implies Apple Watch is about 5% of sales growing revenue at 45% y/y and AirPods is about 1% of sales growing revenue at 87% y/y.”
- India is now just under 1% of total sales. Munster: Growth in India will be supported by two initiatives: 1. producing iPhones in India; 2. opening new retail stores in the country.
- On the Qualcomm litigation: Cook suggests Qualcomm unlawfully discriminates against Apple by charging “exorbitant” prices. Apple refuses to pay these prices and believes they have the legal upper hand.
My take: Munster got more out of that interview than I did.