It’s essential for investors to note that Apple has always targeted the premium segment for its iPhone and allowed Android to corner the less-profitable budget segment. So, I don’t expect Apple’s hardware strategy for its MR device to be significantly different to protect Apple’s highly prized profitability margins. Meta Platforms could have a lead in the lower-end segment, but Apple’s market leadership in the consumer ecosystem could see it making more profits than Meta….
Apple likely sees the importance and urgency of defining the potential ‘post-iPhone era’. The rapid diffusion of the power of generative AI could help players like Microsoft make a comeback in defining a ‘platform shift’ that could be detrimental to Apple’s gatekeeper ambitions…. However, Stratechery‘s Ben Thompson reminded investors that Apple remains well-poised to benefit from the open-source generative AI community.
Apple bears should not understate the significant moat of Apple’s consumer ecosystem. Nvidia CEO Jensen Huang’s recent commencement speech at a graduation ceremony suggests why Apple’s massive installed base proffers it such a critical lead over Microsoft, Amazon or Meta….
From ‘Apple: Big Launch Coming, And It Might Not Flop’, Seeking Alpha