Apple

On 3-11 Apple just unvieled a concert experience with their Apple Vision Pro, proving to millions that they are holding the best technology currently in the market. It may be over-priced but with the technology and security features, it is a Must Have.

Apple Inc. (AAPL) has demonstrated robust performance, with its stock appreciating by approximately 30% in 2024, surpassing the S&P 500's 7% gain.

This narrative is primarily based on Ben Thompson's (Stratechery) view that Apple has transitioned from being a product-driven company to a services-oriented one. While the iPhone remains central to Apple's business, hardware differentiation has plateaued.

Key Takeaways Over-reliance on new market penetration could prove to be unfruitful, while the world continues to grapple with cost-of-living pressures. Poor emerging market strategy could lead to failure in India and South America due to prohibitive costs.

Key Takeaways Apple will dominate thanks to brand, installed user base, and ecosystem of products More revenue from Services will increase gross and net margins Apple Silicon is paving the way for it to gain market share in the PC space More parts being developed in-house should increase product margins Biggest risks are manufacturing challenges and reliance on emerging markets growth (India) Catalysts Apple’s Brand leads to sticky revenues and increasing installed device base Apple has become more than a tech hardware and software company, it has become a lifestyle product. It has embedded itself into the lives of billions of people around the world, many of whom say they couldn’t live without their iPhone.

Extremely sticky Apple Ecosystem · Due to the strength of the company, it started to produce more products and provide more service associated with its iconic product, iPhone. Once its customer got hock onto its eco-system, it is extremely hard for them to leave its eco-system.

Key Takeaways Expansion of Apple Intelligence internationally and in emerging markets like India could boost iPhone sales and offset regional headwinds. Growth in Services and AI-focused products may shift towards higher-margin offerings, positively impacting net margins and overall earnings.