Excerpts from the notes I've seen. More as they come in.
Katy Huberty, Morgan Stanley: Innovation Engine at Full Throttle. What incrementally surprised us was twofold – first, that Apple introduced a new M2 SoC for the Mac - our checks were unclear on timing of the M2 introduction - and second, that in addition to the new MacBook Air, Apple upgraded the 13” MacBook Pro (2nd best-selling laptop in the world) to now include the M2 design. Importantly, what we didn’t hear today was: 1) any meaningful privacy update that could hinder tracking by third-party applications/websites, and 2) any sneak peak of partnerships or potential features that would be included in Apple’s anticipated 2023 AR/VR headset or underlying operating system (realityOS). Nevertheless, today’s WWDC keynote once again brought out what we believe is the most compelling characteristic of the company – Apple’s deep focus on in-house hardware and software innovation combined with an increasing set of features that allows Apple’s platform of products and services to function more uniformly, ultimately providing an unmatched, and unreplicable, user experience. Overweight. $195.
Daniel Ives, Wedbush: Thoughts on WWDC Takeaways; M2 Chip Front and Center. The highlight of yesterday's WWDC event at Apple Park was clearly some major enhancements on iOS 16 with the text editing features, iPhone lock screen, and Safety Check enhancements. In addition, Apple announced the Apple Pay Later which will allow users to spread the cost of a purchase into four payments over six weeks without pay interest or fees. This is a smart strategic move for Apple to make given the opportunity in the space on the finance front and further penetrate the golden installed base of Cupertino over the coming years... Clearly the biggest announcement of the day was unveiling two new MacBook models using Apple's new and innovative M2 chip which Apple claims will be 18% faster than the previous generation M1 chip. This just shows Apple beating Intel and other chip companies at its own game, while being able to release new products in the midst of the biggest supply chain crisis in modern history as Cook & Co. further flex their muscles. Outperform. $200.
Wamsi Mohan, BofA Securities: Keynote focuses on new Silicon, OS updates. The WWDC 2022 keynote saw Apple launch the M2 chip which is based on 5nm technology and is focused on power efficient performance. Apple announced new Macbook Air and Macbook Pro laptops that incorporate the new chip. In addition, Apple announced iOS 16, macOS Ventura, iPadOS 16, and watchOS 9. We liked the fact that Apple is maintaining its focus on semiconductors. And the OS and application enhancements and features will continue to keep Apple devices an integral part of users’ lives. Shares were slightly down 1% intra-day heading into the event, but were mostly flat post-event, which is in-line with the performance seen during prior WWDC events. Buy. $200.
Amit Daryanani, Evercore: Top "6" Takeaway's from WWDC: Silicon, Sports, and Wallet. 1) The new M2 silicon will replace the extremely successful M1 and deliver significant performance updates in a similar power package as Apple continues to focus on prioritizing battery life (18 hours of video playback on the new MacBook Pro). 2) Apple is adding live sports scores and standings to Apple News which will effectively make the News app a competitor to popular sports scores apps like ESPN and CBS Sports. This likely won’t get much attention but we think it is meaningful as News is one of the only platforms where Apple sells advertising space, and we continue to think Live Sports is a sizable opportunity. 3) New MacBook Air and Pro models leverage the M2 chip to improve performance with a focus on battery life and graphics (gaming applications highlighted). 4) Apple Car Play remains an underappreciated platform and the new changes signal greater integration with the real time operating systems used by automakers. This will expand Car Play to all the information displays in the vehicles rather than just the infotainment screen. 5) Wallet continues to expand beyond Apple Pay to become a true replacement for a physical wallet with new functionality that enables digital ID cards as well as digital swipe cards for office building/home access. 6) The MATTER smart home standard will be officially launched, enabling interoperability between Apple smart devices and other major manufactures (Google, Amazon, etc). Net/net: The event announced features that should accelerate numerous growth vectors including Apple Pay, Apple Sports, and Apple Car while also building upon Apple’s best in class operating systems and silicon. Outperform. $210.
Martin Yang, Oppenheimer: Gaming and Auto Up, Privacy Down. Yesterday, Apple kicked off WWDC22 with a series of new product announcements for its hardware and software. Relatively to the past two years, gaming and automotive (CarPlay) are taking incrementally more air time whereas Apple scaled back discussion on user privacy control. Apple's not expanding Private Relay to in-app traffic in iOS16 provided near-term relief for mobile adtech ecosystem. We believe Apple's warmer approach to gaming makes sense for its more unified hardware (powered by Apple Silicon) and future content ambition (mixed reality), but it will be years before Mac/ iPad become viable for most developers due to lack of support for Apple's proprietary graphic API called Metal. Outperform. $190.
Gene Munster, Loup Ventures: The Virtues of Integrated Hardware-Software On Display. The announcement that stood out most was the upcoming overhaul of CarPlay that expands Apple's control beyond maps and media into root vehicle features that power the entire instrument cluster. The screen escapes from the center console to the entire panel of the front car. Some of the partnerships mentioned: LandRover, Mercedes Benz, Porsche, Nissan, Ford, Lincoln, Audi, Jaguar, Acura, Volvo, Honda, Infiniti and Polestar. The UI is, from our vantage point, equally to more visually appealing than that of Tesla.
Ben Thompson, Stratechery: Apple WWDC: I’ve often noted that I always pay close attention to what a chief executive has to say at the beginning of their keynotes — particularly for their developer conferences — as it often lays out the overall strategic direction for the company. CEO Tim Cook, though, didn’t really say anything at all, and handed things off to Senior Vice President of Software Engineering and traditional WWDC emcee Craig Federighi for a CGI-transport through Apple Park and a dive into iOS. That was the pattern throughout: cutesy CGI Craig, and a completely disconnected launch into another part of Apple’s operating system family. This is, of course, how Apple has long organized WWDC: iPhone OS, iPad OS, macOS, etc., each get their own section of the keynote. What was striking about yesterday’s keynote, though, was that these divisions seemed like arbitrary placeholders for the unveiling of cross-platform features.