Interview notes include:
• It’s possible iPhone unit growth isn’t happening anymore and investors should resign themselves to that. Either way, it seems the unit sales growth of 2015 is over due to the market being saturated.
• Things that will drive apple growth going forward will be services, other devices, wearables (watch, smart glasses), and increasing ASPs (average selling price) for the iPhone.
• Higher priced iPhones have more features and benefits so it’s not as simple as just raising prices. As value increases, price increases on iPhone.
• People don’t realize just how well wearables are doing (Watch and AirPods) and services are doing really, really well.
• Apple has a tremendous captive market of active device users they can sell services to and they are becoming a more services-oriented company but are still iPhone dependent.
Listen to the podcast right here:
Full article here.
MacDailyNews Take: Yes, an important point that’s missed by many: The current generation iPhones cost more because they do more. Much more. And that technology costs money to create, implement, and scale.
And, yes, Apple is ridiculously undervalued currently. AAPL is on a deep discount sale for the holidays.