Gene Munster, Deepwater Asset Management managing partner, joins CNBC’s “Squawk Box” to discuss the takeaways from Apple and other Big Tech earnings, the health of the mega-cap stocks, and that Apple’s growing installed active base of over 2 billion active devices is where investors should be focusing, meaning Apple Services, not just on the company’s hardware sales.
Apple’s installed base reached an all-time high across all geographic segments, driven by a June quarter record for iPhone switchers and high new-to rates in Mac, iPad and Watch, coupled with very high levels of customer satisfaction and loyalty.
MacDailyNews Take: In Q323, Apple set an all-time revenue record in Services driven by more than one billion paid subscriptions. Apple’s Services revenue reached $21.2 billion and saw a sequential acceleration to an 8% year-over-year increase, better than the company expected. Apple set an all-time revenue record for total services and in a number of categories, including Apple TV+ AppleCare, iCloud, and Apple Card. Apple promises “updates coming later this year to make Services more powerful, more useful, and more fun than ever.”
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Apple investors are a stubborn bunch. They only seem to be interested in iPhone unit sales and Apple can’t convince them otherwise. On the other hand, Mark Zuckerberg was able to convince investors that Meta became an A.I. company practically overnight and investors believed him and the stock is continuing to climb like a rocket. Maybe Apple needs a spokesperson that knows how to talk to investors to convince them that an active subscriber base and Services are equally or more important than iPhone unit sales.