The transcript is a discussion between Dan Ives, a CNBC contributor, and Malcolm Etd Rherid, a CIC Wealth contributor, about Apple's upcoming iPhone 15 and Apple Watch Series 9. They discuss the potential impact of these releases on the company's stock price and growth prospects.
Ives notes that Apple's stock has been selling off before the event and after the announcement. He attributes this to concerns about the company's growth, particularly in China. However, he sees the announcement as a "flex the muscles" moment for Apple, showing more pricing power and control.
He also discusses the decision not to increase the price of the Pro Max model, which he views as a sign of confidence in Apple's strategy. He believes this could be a positive development for the company, particularly if it leads to share gains in China and a resurgence in services revenue.
Rherid, on the other hand, questions whether the new iPhone and Apple Watch will be enough to reverse the declining trends in iPhone revenues. He also points out that while the devices are expected to generate new revenue, it's unclear if they will be enough to drive significant share gains.
In response, Ives argues that the combination of single-digit growth and rising ASP could lead to a significant increase in Apple's revenue. He predicts that in a year, Apple's services could reach a trillion in revenue.
However, the discussion also touches on the challenges facing Apple. Despite the potential growth in services, Ives acknowledges that the iPhone continues to be a crucial part of Apple's revenue mix. He also notes that shareholders are hoping for more than just a new iPhone and Apple Watch.
In conclusion, both Ives and Rherid agree that the monetization of Cupertino has just begun, and they look forward to the middle stages of this growth.
1. The event took place in Cupertino, California.
2. The new iPhone 15 and Apple Watch Series 9 were announced to be released on the 22nd of September.
3. Dan Ives, a CNBC contributor, covered the event.
4. The stock has been selling off into the event and selling off on the backside too.
5. The iPhone is a pro on time, set to be released on the 22nd of September.
6. The price increase shows more pricing power from a chip perspective.
7. This is viewed as another share game.
8. Three straight quarters of year over year revenue declines, year over year iPhone has declined.
9. Services are starting to uptick to double-digit growth.
10. 25% of the install base did not upgrade in four-plus years.
11. There is an expected increase of a hundred bucks, not just for the Pro Max.
12. The Pro Max price increase is a rebalancing act for Cupertino, especially given the macro.
13. This shows more and more confidence in terms of what they're doing and ultimately controlling it.
14. The services business as stated is a Fortune 50 company all by itself.
15. They've proven $10 billion in deposits with the Goldman Sachs partnership, the Apple savings accounts.
16. There's tons of opportunity to take share from traditional banks.
17. It's one of the markets they can disrupt as the size they are, $2.8 trillion or whatever.