Excerpts from the notes I've seen. More as they come in.
Katy Huberty, Morgan Stanley: A PEEK Into New Ecosystem Expanding Products. While many of these products won't necessarily move the needle on a standalone basis (difficult to do for a >$365B revenue company), they will collectively represent tens of millions of incremental product shipments that will help Apple maintain industry-leading retention rates, attract new users (Apple added more new users to the iPhone lineup this fall than in any of the past 5 launches), and grow both hardware and services spend per user. Overweight. $210.
Samik Chatterjee, J.P. Morgan: Peek Performance Event Leads to TAM Expansion for Products and Services. Apple’s latest product announcement (“Peek Performance”) was a diverse event that trended in-line with expectations in relation to iPhone SE 3 and iPad Air upgrades, while besting our expectations for Apple TV+ with the introduction of live sports as well as for the iPhone 13 and iPhone 13 Pro with new color variants. The launch of the mid-tier 5G enabled iPhone SE 3 and the introduction of live sports will both expand the addressable TAM for Apple in products and services, while the launch of new color variants with iPhone 13 will support a better than seasonal volume performance before the launch of iPhone 14 and address seasonality challenges Apple has traditionally faced from the yearly update to the iPhone lineup. Overweight. $210.
Wamsi Mohan, BofA: Enhancing the power of Apple silicon. Apple’s event today was about showcasing the power of Apple Silicon and seamless integration of hardware and software. Apple announced the M1 Ultra, the latest chip in the M1 lineup, which features UltraFusion, a new packaging architecture that interconnects the die of two M1 Max chips to create a system on a Chip (SoC) with higher performance and better power efficiency. Apple announced the Mac Studio desktop which can be configured with either the M1 Max or M1 Ultra chips. Together with the 27-inch 5K Retina Studio Display, we see the system as a powerful tool for musicians, 3D artists, App developers, photographers and videographers. Buy. $215.
Chris Caso, Raymond James: 5G iPhone SE and M1-Powered iPad Launches; M1 Ultra CPU Introduction. The new iPhone SE is notable since it’s the SE model iPhone to feature 5G connectivity, though we expect that to be more impactful to Apple’s component suppliers (due to additional content) than it is to Apple itself. Apple also introduced new iPads and Macs based on variants of its M1 silicon. We think the lineup of M1-powered devices demonstrates the competitive advantage derived from Apple’s internal CPU efforts, since these CPUs offer higher performance and lower power consumption vs. CPUs available from merchant suppliers, and Apple is now able to customize those offerings for different products. Outperform.
Gene Munster, Loup Ventures: "Peek Performance" Underscores Years of Apple's Peek Performance. Apple hosted its "Peek Performance" event featuring two upgraded products (iPhone SE with 5G and a new iPad Air) and two new products (Mac Studio and Studio Display). I estimate that the new products will account for 5-10% of Apple's revenue over the next year. More importantly, the event is another reminder that Apple is the gold standard at getting it done. Since 2018, they've hosted 4 product events per year. Apple has been at its most prolific despite multiple headwinds that have sidetracked the product development efforts of most companies. As long as Apple can keep upgrading the current products, launch new products and services, and enter new product categories, shares of AAPL will continue to rise.
Amit Daryanani, Evercore: New Products In Time For Return To Office. The iPhone SE features the latest Apple A15 chip at a more affordable price point ($429). Apple did not spend much time highlighting the phones 5G capability, which could indicate this has not been a major selling point. It did spend a lot of time comparing it to the iPhone 8, likely hoping to convince customers to upgrade from 3+ year old phones – we think a likely scenario in emerging markets. Outperform. $210.
Daniel Ives, Wedbush: iPhone SE Front and Center -- Another Demand Driver. Taking its Apple Silicon even further Apple today also announced M1 Ultra, a new M1 chip which is 7x faster than an M1 chip-a staggering technology achievement that is another shot across the board at chip stalwarts such as Intel as Apple beats chip companies at their own game on the desktop front. These Ultra chips will initially be part of a new Mac Studio and Studio Display desktop product for core power users. Mac Studio will have four Thunderbolt 4 ports in the back and looks like two Mac Minis stacked in machined slick looking aluminum that is 2.5x faster than the iMac 27-inch model. There will be 64GB of memory with the M1 Max and 128GB of memory with the M1 Ultra chip. The Max model will be priced at $1,999 and the Ultra at $3,999. Outperform. $200.