Toni Sacconaghi doubts Musk's attack on Apple has legs (video)

From "Apple's iPhone growth predicated on its ability to get users to upgrade, says Bernstein's Sacconaghi" which aired Tuesday on CNBC:

Toni Sacconaghi, Bernstein analyst, joins 'TechCheck' to discuss his thoughts on Apple's lost supply, if smartphones are getting longer life cycles and whether Elon Musk's attack on Apple's app store business model has any legs.

My take: Elon Musk makes Toni Sacconaghi sound pretty reasonable.

14 Comments

  1. Lalit Jagtap said:
    Yes, the Apples growth is driven by not only iPhone but other products and services too. Like iWatch, AirPod Pros and Apple News too.

    1
    November 30, 2022
  2. Neal Guttenberg said:
    2 things right off the bat for me. First, Sacconaghi ignores switchers as part of the reason why Apple could grow the installed base. Do we really know how big the switcher market has been for Apple? Second, he says that most people, as well as Musk, would be satisfied with 15% as the fee on App Store stuff. Musk has said that he feels that fee is 10 times too high so based on what he has said in the past, he feels 3% is the right fee. But, as Sacconaghi points out, joining gives access to 1.5 billion devices. But if he doesn’t like the fee, he could just go based on a web based solution. We could also say that we feel that 8 bucks a month is too much money to be verified by twitter, especially when it has a good deal of unsavory content and individuals.

    4
    November 30, 2022
    • John Konopka said:
      Why does Apple have ~1.5B active devices? Because for years they worked to develop a very high quality product line, and a network of stores where you can get service. As Cramer pointed out in the other video Philip posted, Apple is all about the customer. It is not an accident that they have this many users. They earned the right to charge an access fee.

      Musk said he might make his own phone to replace iPhones. That is as laughable as everything else he has said.

      2
      November 30, 2022
  3. Rodney Avilla said:
    MacRumors reported today that Musk met with Tim Cook today at the space ship. Hopefully we will get some info from the meeting.

    0
    November 30, 2022
    • Mark Visnic said:
      Musk tweeted a thank you to Tim for that reported meeting. Detente?

      0
      November 30, 2022
  4. Mark Visnic said:
    I just watched the TS video. He correctly notes that the smartphone market is mature and doesn’t invite much overall market growth but, he fumbles the ball when he says, consequently, without new smartphone users to attract, that growth depends purely on the upgrades of a stagnant (implied) installed base. There clearly is another way to grow that he utterly fails to acknowledge: Attracting android user switching. We saw it this year with the declines in low-end (android) smartphones and robust sales of high-end phones. Apple has a lot of room to grow in a mature market by taking share. How can he miss that? He can’t miss that.

    2
    November 30, 2022
  5. David Emery said:
    If Twitter drops most or all of its content moderation policies, will it still conform to Apple App Store requirements? (I hope not, as a matter of ‘App Store value’. I personally have always despised Twitter…)

    1
    November 30, 2022

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