Its new Watch and iPads were AAPL's focus yesterday, but we raise our PT and estimates on bundled services and Apple Silicon. We believe Wall Street often underestimates the value of APPL's clever marketing decisions, like the Apple One mega-bundle.
In this report we calculate that bundles add 2x-4x to AAPL's upside vs stand-alone competitors. Price bundling typically offers services at a lower price than if purchased individually. For example, the Apple One Premier plan is $25/month cheaper than buying each service individually. SPOT is calling on regulators to stop the Apple One bundle roll-out because bundling has such powerful lock-in economics. In every new device, Apple Silicon drives more differentiated attributes, which improves on-ramps into AAPL's ecosystem and elevates its pricing power.