How shall we think about Apple Intelligence from investment perspective?

For iPhone sell-in unit yoy in China, BCI weekly number turned better last week but turned weaker again this week as Huawei/Vivo/Oppo all chose to launch new product in Oct. So investors in HK are cautious. But dont throw baby in the water as: (1) for overall Apple analysis, Europe and APAC excluding China (India, Australia, wealthy in ASEAN) becoming more important., (2) Apple is one of the very few that is capable to monetize edge AI.

o   China as % of total Apple sales come down to 15-16% of, vs 17-18% a few years ago. Though unit continue declining into 2H.

o   Europe 23% -> 25-26%.

o   APAC excluding Greater China 7%-> 8% with ASEAN emerging. China's weakening creates wealth for India and ASEAN. 

In terms of investor sentiment, we understand generally investors' sentiment vary:

o   US east coast are slightly positive (geographically closer to Europe).

o   US west coast are neutral (closer to north Asia).

o   HK Japan are negative.

Hence the feedback of European and APAC ex China consumers could be more important than US consumers. This week we will see Apple Intelligence debut in American English first while December the rest English-speaking countries. We may see initial feedback soon.

That's it for this week. Any feedback feel free to contact us!