Asymco

Asymmetric Intelligence

smartphone

  1. IDC: Apple Grows 33.3% in China as Market Declines 3.3% in Q1 2026

    Nota Bene

    Counterpoint says 20% and -4%

    China smartphone shipments fell 3.3% in Q1 2026 to 69M units, with Huawei and Apple driving premium demand despite rising costs and supply constraints.

    Source: IDC

    Separately, CounterPoint research reports;

    China’s smartphone shipments declined 4% YoY in Q1 2026, as memory shortages disrupted supply and drove up costs across OEMs.

    Huawei led the market in Q1, supported by its domestic supply chain advantages and stable pricing. As a result, the brand recorded its highest-ever quarterly share in China since Q4 2020.

    Apple delivered the strongest growth among the top six brands, and it is widely seen as best positioned to navigate the memory crunch.

    NB: Both researchers say Apple share in China is about 19%, nearly tied with Huawei at 20%…

  2. iPhone vs Android Switching Rates

    Nota Bene · 3 comments

    Bitchin' ain't Switching

    SellCell’s Smartphone Loyalty Survey 2026 shows iPhone and Android loyalty at record highs, but Android users still switch more.

    Key findings

    iPhone loyalty stands at 96.4%, up from 91.9% in 2021

    iPhone switching stands at 3.6%

    Android loyalty stands at 86.4%, with switching at 13.6%

    Android users are nearly four times more likely to switch than iPhone users

    Samsung loyalty stands at 90.1%, up from 74% in 2021

    Samsung switching stands at 9.9%

    Google loyalty stands at 86.8%, up from 65.2% in 2021

    Google switching stands at 13.2%

    The loyalty gap between iPhone and Android now stands at 10 percentage points

    Price and value are the biggest drivers of switching

    Technology is the second biggest driver

    Overall, loyalty has increased across all major brands since 2021

    Source: SellCell.com Blog

    NB: I did a deep dive into the data and came up with graph above. The original report shows intention numbers which seem quite high. For instance, the net switching rate between iOS and Android is 10% in favor of Apple. This would imply that the entire user base would flip in 10 years. It would also imply...

    As time goes on and saturation is reached (near 5 billion active smartphones) then the churn will imply that Android will eventually become a net user loser.

    That probably won't happen before 2030. When saturation does happen however, I will be watching to see if Apple chooses a different strategy to accelerate switching similar to what it is doing with the MacBook Neo at a time of PC market saturation.

    The lesson here is that switching intention surveys showing a net 10% churn rate don't mean that the actual switching rate is net 10%. The intention to switch is a sentiment but actual switching is often more difficult than a wish to do so.

    I think actual net churn is 1.7% of the base each year. That's still 100 million a year. For now it seems Apple is happy to maintain that rate.

  3. Asymco One: Mobile Computing

    Research · 2 comments

    As you know, as we crossed into 2001, the great crash occurred.

    Ben Thompson • 25:05
    Yep. And suddenly a job offer from a big phone company sounds pretty great.

    Horace Dediu • 25:09
    Yeah, but the crash occurred and it impacted my startup because I couldn't raise money anymore. And that's why I'm throwing in the towel. I'll take this idea to Nokia and build it inside of this company. So for the first year, I worked out of the U.S. and then they invited me to come to Finland. And I fell in love with it, not to mention finding someone to fall in love with. Yeah, I'm still here.

    So we created an internal venture called media distribution. And it struggled for a couple of years. We partnered with a publishing company here in Finland that is the biggest newspaper and magazine company. And we worked with them. 9-11 happened. We worked with them throughout that period to test this idea of distributing content on phones. That's how I met my wife. She was working for the publishing firm. Remember when Apple News launched? I forget how many years ago it was already. It was five, six years ago. [My wife] texted me during the keynote. She goes, "you realize that's what we were working on together in 2001?"

    It was called Project Melissa. Project Melissa was this idea of Apple News today. And that was [our project] 20 years earlier. That just goes to show you the story of my life. I was doing search 10 years before Google existed. I was doing e-books 10 years before Amazon launched the Kindle. I was doing smartphones and media distribution on smartphones 20 years before Apple showed how it's done.

    So my problem has been that I see things happening or see where things are going, but way too early. And that's why one of the theses I have over time is the idea that the difference between a futurist and a billionaire is knowing when one thing happens. So it's not about knowing what's going to happen. A lot of people are very good at that.

    Ben Thompson • 27:31
    Including Nokia, to your point.

    Horace Dediu • 27:33
    Nokia, science fiction writers, Elon Musk, a lot of people predict this. But getting the timing right is where the money is made. And so that was one of those lessons I learned.

    Ben Thompson • 27:45
    Well, when you talk about the publishing and Nokia and the reading and all those sorts of things, what it makes me think of is when the iPhone comes along in 2007, And I'm very curious to get your perspective on what that was like inside Nokia when the iPhone launches.

    Horace Dediu • 27:59
    I'll tell you exactly.

    Ben Thompson • 28:00
    But before I get there, but to this publishing point specifically, the key bit was the Internet was permissionless in terms of producing content. Like, it's great that you met your wife, but the fact that you needed to be in a situation where you could meet your wife was actually the reason why it wasn't going to happen. Because if you have to make a deal to do everything, it's just never going to get there. Whereas if you can just surf the Internet, the real Internet, and no one needs to do anything to adapt to it, suddenly you get it all for free. And then you get the virtual cycle going where they're making stuff for you. And that was sort of the, that's the timing bit is like the, the external structure around what you're doing.

    Horace Dediu • 28:41
    Yeah, it's, it's, it's complex and it's multi-causal and you're right. It's multiple, the reasons why things happen the way they are. And it's just not foreseeable. The internet was, and by the way, the thing that really caused the project to fail and be abandoned--this media distribution side note-- it was the fixation on DRM.

    DRM actually killed a lot of great businesses with content ideas back in the day, whether it was music or video or textual. It was people just obsessed about protecting it before they obsessed about distributing it and making it great. And this is why when iTunes came along, even though there were some circumstances there with being on a Mac and not on the PC, that the publishers finally said, why don't we go ahead with this?

    So long story there. But as far as what Nokia was doing, after four years of doing this startup inside of Nokia that did not work out, I got into the job of strategy analysis and competitive analysis. So they asked me to do Microsoft.

    Microsoft was the biggest worry for everyone because they had intentions of being in the phone business. They made no secret about it. They had prototypes. They were working with competitors to Nokia. [Intending to] give them the operating system so that [for instance] Samsung running Microsoft [Mobile]. That was the effort.

    They were pushing on all fronts. Nokia was holding out and saying "we've got our own operating system" and so on. So they gave me this job because every other competitor was hardware. All the analysts were covering hardware. I was the only guy who was covering a software company.

    And in doing that, I was also sort of nibbling at Apple a little bit because the iPod had come out. The iPod was doing amazing, but it wasn't a phone product. And I was kind of looking at it a little bit.

    Now Christensen comes back in the picture, because his book had taken off. He had already written the second book, which is The Innovator Solution. And I was like, hang on a second, a lot of stuff that I read in the book, and I remember back from my days at school, applies to Apple here because they're doing a lot of interesting things with being disruptive as the case may be.

    Nokia itself had been disruptive in its early years. But I'm focused on Microsoft. And my point was that we can fight this battle and win, but we got to be very careful. And there's a lot of twists and turns there, but I took it upon myself also to understand what's going to happen with this media product from Apple.

    And then I began to write a few internal notes because nobody was covering Apple. This is interesting and important. Imagine you have a team of a dozen analysts, you could put them on multiple jobs, assign people to multiple problems. No one thought that Apple was a problem to be looked at, even part time. No, there was nothing interesting about it.

    And part of that had to do with the fact that [Nokia perceived that Apple had been] one foot in the grave already in the 90s. And now they were this little toy media company. They didn't really have scale. Phones were on the orders of billions of users already. And this iPod was in the tens of millions, maybe a hundred million. So it was orders of magnitude. There was no real worry there.

    But I was really annoyed at this thing. And I started building a model. I remember distinctly opening a spreadsheet, looking at research reports and thinking to myself, let's look at the history of the iPod, how it's growing. And I started to match that to the Razr, which was the most viral product at the time, the Motorola Razr.

    Even Nokia was jealous about this thing. At that time, [Motorola] had cumulative sales of 50 million, which was considered way too scary. (And BlackBerry was another one, by the way.) So I'm doing this and I'm like, hang on a second, what if they do a phone and it's a combination of the Razr and the iPod, could that resonate? And I just put it out there. I said, it's possible. And there was a rumor of the iPhone coming out.

    Ben Thompson • 33:31
    So Apple did do a Motorola Razr with iTunes functionality. Did that actually end up, because that was a flop. And did that actually make people not as like more relaxed?

    Horace Dediu • 33:46
    Because we knew that it didn't run an operating system. It didn't have a developer API, there was nothing, no hooks in it. It was just an appliance. And as such, it was like a feature phone. And that was not interesting. We had been talking and pounding the table on smartphones already since 2001. Remember, when I joined, we had a communicator. We had Symbian, Series 60. We had the interfaces. We had all picture phones, music, etc.

    Ben Thompson • 34:20
    I was a user as well.

    Horace Dediu • 34:22
    And I had done the numbers, and by 2005, people were burned out on smartphones. Because the projection was like this, but it was more like this. It wasn't growing as much as you thought it would. And so a lot of people said, especially the top management was like, "you guys are very enthusiastic about the software stuff, but it's just not working out. We're going to double down on hardware."

    So there was a lot of burnout. So, but I kept looking at the phone at Apple and I suggested, hey, what if this thing scaled anyway? Like I said "what if they could sell as many as 50 million?" That was my provocation. And people were like, dude... I was essentially taken aside and told, tone it down. First of all, you're not doing yourself any favors by being so provocative. You're just going to lose credibility. My boss, who's a great guy he just took me aside and said, just don't do that. You know, it's bad for you.

    Ben Thompson • 35:22
    And this is like 2005, 2006, around then?

    Horace Dediu • 35:25
    Well, already 2006, because the iPhone was rumored. It wasn't out, but it was like, if you're going to have iPod success and you're going to do this crap phone with Motorola, you're probably thinking, maybe they're going to do something interesting beyond that, because we knew they could, in theory, do something.

    We didn't see the touch interface, but we saw maybe like a scroll wheel or something. You know, Tony Fadell was running the thing. So, bottom line is, when it finally came out, it was January 2007. It came out and was not for sale, but it was on stage. And I was so excited. And I said, this is unbelievable.

    I remember running into the office the next day. Usually you socialize at lunch hour, sitting in the cafeteria, talking to your friends and asking them what do they think about this? And most people just said, oh, it doesn't look that interesting. aspects of it were copied. There were copies from here and there. There are other people that do touch. You know, a stylus has been around for a long time with BlackBerry also doing amazing things with keyboard and so on and so on.

    So there was a lot of cynicism and sort of not really interesting. I said, man, it's running OS X, it was running a full operating system. And I said, this is going to get developers working on it. But again, the other thing, the other head fake from Apple was that Steve Jobs said they're not going to put any apps on this thing unless Apple write them. I was anticipating far more than even was being talked about. And for that reason, it was just super frustrating. Anyway, I left in 2009. But by then, Nokia were still not following Apple.

    Ben Thompson • 37:13
    How is that possible? Like even two years on, this device is out there.

    Horace Dediu • 37:19
    Because it still didn't have distribution. And this is the thing that consumed everyone following the iPhone in the beginning. It's like they had one launch partner. It was initially Cingular, became AT&T. Don't forget that the old AT&T had nothing to do with this AT&T. It was just a rebrand of Cingular, which was a crappy, small, not very small, it was maybe second tier [operator.]

    Ben Thompson • 37:47
    Verizon didn't want to do it. Apple did this again and again. Verizon was number one.

    Horace Dediu • 37:50
    Verizon was number one. Absolutely. But Verizon was in CDMA. But the thing is that it was a crappy network and they didn't have a lot of points to sale. They didn't have distribution. and everybody said this, you need 500 network operators to saturate the global market, right?

    And how fast are you going to be able to obtain distribution was the question. And so they're so cantankerous. You know, Apple is known as being "my way or the highway."

    Verizon said no for years. Nokia was like, this is not going to fly. These guys are, if anything, they're naive. Don't forget, by the way, there's a separate story on how BlackBerry dealt with the iPhone. There's a movie about it, by the way. Everybody should watch it. But basically, everyone had the similar responses: that this is not kosher.

    This is not the way things are done in this business. It's all about relationships with operators. It's about getting shelf space. It's about getting salesmen in the store who are bribed effectively with a commission to tell you what to buy, effectively yank the phone out of your hands and give you another one. So this was a very dirty business at the street level.

    Ben Thompson • 39:19
    So do you know what was the first what was the first article of mine that I think you ever linked to? It was about precisely. No, no, you don't need to know. I know because it was very formative to me. That's what I'm going to tell you. It was basically about talking about this was how distribution worked.

    And what Apple changed about the whole thing was that customers actually switched networks for the iPhone. And it was doing just sort of a traditional sort of business school analysis of and pointing out the power shifted to instead of distribution to the buyers. Basically, what I ended up writing about for 13 years now is demand mattering more than sort of the supply bit. But it was the exact same thing. That's why you linked to it. You are you are already on board with it.

    Horace Dediu • 40:04
    But it was also the thing that resonated for me personally. Not that I knew something about the phone. Mostly I knew how big it could get. I knew that there were billions of people, many more billions than used PCs, which was by far the most dominant influence in technology.

    Most people oriented themselves, like even Gruber and others who were Mac first and then all these accessories. But I knew the phone would be a couple of zeros more. That was number one.

    Number two, there was this problem of the incumbency, which were all the phone makers, who were so far from understanding what the software dynamics of platforms were. By the way, platform theory was developed by Microsoft. They pretty much invented the whole idea.

  4. Morgan Stanley has a stark message for investors in Apple

    Nota Bene · 1 comment

    Run for the hills

    Morgan Stanley just published survey data that makes a strong case for owning Apple stock. The firm's AlphaWise Global Smartphone Survey was released March 22. It shows iPhone upgrade intentions hitting an all-time survey high.

    The data support the bank's above-consensus iPhone forecast. Morgan Stanley keeps its overweight rating and $315 price target unchanged. The stock closed at $247.99 on March 20. That target implies roughly 27% upside from that level.

    The headline number is a blended global iPhone upgrade rate of 37%, up 2 percentage points year over year. That is the highest reading in the survey's history. The driver is China, where upgrade intentions surged 9 points year over year to reach their own all-time high in the survey.

    On the switching side, Apple's net switching rate improved to 11%. That is a five-year high. Apple was the only major smartphone brand in the survey with a positive and improving net switching rate.

    Samsung, Xiaomi, Huawei, and others were all negative. That positions Apple to gain market share in 2026 even as the overall smartphone market faces pressure.

    Together, these data points support Morgan Stanley's FY26 iPhone shipment forecast of approximately 260 million units, which sits 3% above Street consensus.

    The most surprising result in the survey may be the level of interest in a foldable iPhone. Morgan Stanley found that 27% of global iPhone owners are “extremely interested” in paying for one. In China, that figure rises to nearly 40%.

    Morgan Stanley expects Apple to more than double the global foldable smartphone market within 18 months of launch. The base case puts foldable iPhone revenue at approximately $40 billion. The bull case reaches $60 billion.

    The foldable iPhone is expected to launch in fall 2026 alongside the iPhone 18 Pro lineup. If the survey data translates to actual purchases, the FY27 revenue impact would be significant. Morgan Stanley's FY27 iPhone revenue estimate is already 14% above Street consensus. The foldable is a big reason why.

    Apple Intelligence ranked seventh globally as a reason to upgrade to an iPhone.

    Willingness to pay for Apple Intelligence fell. Respondents said they would pay approximately $8 per month for an unlimited subscription, down from roughly $9 per month in the prior year's survey.

    Morgan Stanley flagged this as a risk worth watching. AI features remain important to smartphone buyers broadly. But Apple appears to be lagging Android competitors in consumer perception of its AI capabilities.

    Morgan Stanley laid out the key variables investors should watch this year:

    iPhone upgrade cycle. Record upgrade intentions suggest the aged iPhone installed base is beginning to refresh. Replacement cycles are expected to contract by 0.2 years in 2026, which supports shipment volumes.

    Foldable launch execution. The survey demand signal is encouraging, but first-generation foldable adoption is inherently uncertain. The revenue upside is large if execution is strong.

    Memory cost impact. Unprecedented memory price inflation is expected to push global smartphone prices higher. Morgan Stanley sees this as a bigger headwind for Android competitors than for Apple, given Apple's pricing power. But the June quarter gross margin guidance will be the first real read on how Apple is managing the cost pressure.

    Apple Intelligence revamp. The 2026 Siri upgrade needs to meaningfully improve consumer perception. The current trajectory is moving in the wrong direction.

    Morgan Stanley's $315 price target is based on 8.5x EV/Sales on FY27 estimates. That implies approximately 32x FY27 EPS of $9.74. Its revenue forecast sits well above the Street even as its EPS estimate is broadly in line with consensus.

    The survey does not guarantee an upgrade supercycle. But the data points in that direction. An aged installed base, record upgrade intentions, strong switching dynamics, and a new form factor in the back half of the year make for a compelling setup.

    Morgan Stanley thinks the market is not fully pricing that in yet.

    Source: TheStreet

    NB: the byline: Morgan Stanley just changed the Apple conversation …

  5. Apple at 50 - Ben Thompson interviews Horace Dediu

    Podcast · 4 comments

    Ben Thompson of the Stratechery interviews Horace on the Stratechery Plus Podcast to discuss Horace's journey to become an influential tech analyst: early career in research, business school under Clayton Christensen, and his time at Nokia during the rise of the iPhone. 

    The conversation further explores Disruption Theory in the context of both smartphones and AI, why Christensen misjudged Apple, and whether AI could challenge today’s tech giants. It also marks the launch of Dediu’s new paid service Asymco One and reflects his continued conviction in Apple Inc. at its 50-year milestone.

  6. Survey shows iPhone improved retention, purchase intent, growth in services, service pricing, product mix, foldable upside

    Nota Bene · 1 comment

    Attach rates for iCloud reached about 42%, while Apple Music stood near 30%

    The iPhone ecosystem is showing signs of increased customer loyalty and steady demand, while its high-margin services business remains a key support to profitability, according to UBS analysts.

    The bank, which maintains a 'Neutral' rating on Apple with a 12-month price target of $280, cited findings from its Evidence Lab survey of roughly 4,000 iPhone users globally. The data suggests that iPhone “stickiness” continues to improve, even as replacement cycles remain relatively stable.

    UBS said the average age of iPhones in use globally was largely unchanged year-over-year at about 33 months. Outside China, device age edged slightly higher to around 38 months, a trend the analysts said could push some upgrade demand into 2027.

    At the same time, customer retention strengthened, with the global iPhone retention rate rising about 200 basis points to roughly 74%. Gains were particularly notable in the United States and China, where retention increased by 200 and 700 basis points, respectively. UBS belives that this indicates Apple is maintaining share despite a competitive smartphone market.

    Purchase intent also improved across regions, with more surveyed users indicating their next smartphone would be an iPhone. The UK recorded the largest increase, while China also saw a meaningful rise despite what UBS described as a challenging competitive backdrop.

    The report highlighted continued growth in Apple’s services ecosystem, particularly iCloud and Apple Music. Attach rates for iCloud reached about 42%, while Apple Music stood near 30%, trends UBS said should help sustain services gross margins above 75% through fiscal 2026 and 2027.

    Higher-tier iCloud usage is also increasing, even as Apple raises base storage on newer devices. Among iPhone 17 users, 77% reported subscribing to mid- to high-tier iCloud storage plans, compared with roughly 60% across the broader installed base. UBS noted that additional services uptake carries incremental gross margins of at least 90%, helping offset potential pressure from rising memory costs.

    On the hardware side, consumers are also opting for higher storage configurations. UBS wrote that 56% of iPhone 17 users purchased models with more than the base storage, up about 800 basis points year-over-year. This shift could support product margins, with incremental storage estimated to generate gross margins of around 75% on roughly one-fifth of sales.

    Looking at the installed base, UBS estimates about 68% of iPhones in use are from the 14 through 17 series, while around 40% are Pro or Pro Max models. The analysts said this premium segment could be a target market for a potential foldable iPhone, though they expect the opportunity to be relatively limited given the anticipated price range of $2,000 to $2,500.

    UBS estimates a foldable launch could result in as many as 8 million units in fiscal 2026, contributing roughly 6 million incremental iPhone shipments, or about a 2% uplift to its forecast of 251 million units.

    Source: Yahoo Finance

    NB: Neutral rating. Let's summarize the findings.

  7. Asymco Bulletin 006 - Mar 28, 2026

    Bulletin

    Asymco Bulletin is a digest of all the work we have published for the week ending Mar 28, 2026.

    Research

    The Next 50

    In Apple’s first 50 years it shipped 5.13 billion computers. This shipment total is higher than any other computer company in its first 50 years. There actually are no other PC makers that are 50 years old. But all these things were true also 40 years ago. So what are we celebrating now that we did not celebrate at Apple 40? The answer is Services, the consistency in growth in user base and the potential trajectory of growth to never-before imagine audiences. The biggest change is a change of horizons. →

    People don’t like wearing things on their faces and don’t trust those who do

    Says Neal Stephenson who first coined the term “metaverse” This revelation came soon after Meta canceled the Metaverse. Let’s look into Neal Stephenson’s mea culpa:

    When I was working at Magic Leap, and people asked me why I thought that [Metaverse] was a good idea, I would ask the rhetorical question: “do you really think that twenty years from now everyone is still going to be going around all day staring at little rectangles in their hands?” →

    The Biggest Bundle?

    The Biggest Bundle?

    How everyone is wrong about AI. The newspaper was an unexpected development It was not a product that anyone asked for. Like many innovations, it wasn’t an invention. It was not patented or discovered in a laboratory. It emerged as a result of the convergence of three disparate technologies: continuous roll printing presses, the telegraph, and the railroad. This convergence occurred by the 1830s, facilitated by a business model aptly named “the penny press”. Stepping back, the printing press was initially developed in the 1450s, 40 years before Columbus’ voyage. It went through numerous evolutions. The big change was moving →


    Nota Bene

    Apple, Samsung Dominate 2025 List of Highest-shipping Models Across Regions → In 2025, Apple dominated premium smartphone markets across North America, Europe, and Asia-Pacific, while Samsung excelled in entry- to mid-tier segments in Latin America and the Middle East and Africa. →

    Tim Cook: Apple just had best launch week ever for first-time Mac customers → Neo brought Apple its strongest launch week performance, presumably by attracting first-time Mac buyers, and helping customers transition out of netbooks and Windows laptops. →

    Running a data-center AI model on a MacBook

    Running a data-center AI model on a MacBook → Apple's MacBook Pro, with its unique Apple silicon architecture, could revolutionize personal AI by enabling powerful AI models to run locally without relying on cloud data centers, potentially shifting the competitive landscape in Apple's favor despite current perceptions of lagging behind in AI advancements. →

    Apple’s China smartphone sales jump 23% as overall market fell 4% to start 2026 → Apple defied market trends with a striking 23% iPhone sales surge in China, outpacing competitors despite broader smartphone shipment declines. →

    “There’s So Much Left” in iPhone: Tim Cook

    “There’s So Much Left” in iPhone: Tim Cook → Apple's relentless focus on user-centric innovation, epitomized by the ever-ascendant iPhone, underscores its enduring dominance and untapped market potential. →

    Amazon developing a new phone more than a decade after its first → Amazon's renewed attempt at a smartphone, "Transformer," aims to integrate AI and deepen Prime ecosystem ties, learning from past Fire failures by addressing trust, scale, and developer engagement challenges. →

    Mac fastest growing PC brand in India in Q4 2025 → In 2025, India's PC market soared to a record 15.9 million units, with Mac sales impressively up 24% year over year, hinting at a bright future despite looming 2026 challenges. →

    Forget Streetview, Immersion hints at what’s to come

    Forget Streetview, Immersion hints at what’s to come → "Waddle transforms visionOS into a portal of immersive exploration, where experiencing surpasses explaining." →

    How to read the MacBook Neo as bad news for the stock → "Apple's Neo success is misleadingly painted as a margin threat, ignoring cost efficiencies and manufacturing leverage." →

    Apple TV is a categorization failure

    Apple TV is a categorization failure → Apple TV, launched in 2007, struggled for 19 years as a misunderstood, underappreciated gateway to content, overshadowed by Apple's product-centric reputation. →

    Apple’s Custom Silicon Opens up Potential for a Cellular MacBook → "Apple's C1X modem not only matches Qualcomm's performance but also reshapes the economic landscape for always-connected MacBooks, hinting at a future where seamless cellular integration redefines portable computing." →

    Apple turns component crisis into competitive advantage → Apple leverages the memory crisis to aggressively capture market share from struggling Android, PC, and Chromebook competitors. →

    Survey shows record upgrade interest for iPhones → Morgan Stanley forecasts Apple as the sole major smartphone vendor to gain market share in 2026, driven by strong upgrade intent and advanced features, while Android struggles with rising costs and declining loyalty. →

    MacBook Neo Market Impact: Analysts weigh in

    MacBook Neo Market Impact: Analysts weigh in → Market analysts predict the MacBook Neo will disrupt the low-end PC market, especially in education, by leveraging Apple's higher margins and user-centric design, despite challenges from price-sensitive K-12 sectors dominated by Chromebooks. →


    World’s most respected Apple Analyst. —Macfilos

    Like what you read? Get more from Asymco One:
    full access to Asymco's research, analysis, and commentary.

    Subscribe with code BULLETIN for a discount.

    Feedback: Have questions or comments? Reach out to us at contact@asymco.com. We’d love to hear from you.

  8. Survey shows record upgrade interest for iPhones

    Nota Bene · 1 comment

    Apple the only major global smartphone vendor expected to gain share in 2026

    A new global smartphone survey from Morgan Stanley points to record iPhone upgrade intent in 2026.

    The AlphaWise survey shows next-12-month upgrade rates in the U.S. and China hitting “all-time highs,” which implies replacement cycles “accelerate to a 10-year low.”

    Woodring writes that Apple is “the only major global smartphone vendor expected to gain share in 2026,” driven by “new and advanced features,” stronger device quality and broad upgrade eligibility.

    He adds that iPhone switching rates are set to reach a 5-year high, underscoring the company’s relative strength.

    By contrast, Android vendors face what Morgan Stanley calls “unprecedented memory cost inflation” that is likely to push device prices higher and “significantly dampen smartphone market demand.”

    The bank says lower brand loyalty and greater price sensitivity will leave Android “more vulnerable vs Apple.”

    As a result, Morgan Stanley cuts its 2026 global smartphone shipment forecast to 1.1 billion units, down from 1.3 billion previously, or -13% year-on-year.

    It now expects Android shipments to fall 15% year over year, compared with just a 2% decline for Apple.

    Source: Yahoo Finance

    NB: I doubt we'll see a decline for Apple. The memory costs impact has already been discussed here as beneficial to Apple...

  9. Asymco Bulletin 005 - Mar 22, 2026

    Bulletin

    Asymco Bulletin is a digest of all the work we have published for the week ending Mar 22, 2026.

    Research

    How to calibrate executive departures

    Executive exodus explicated.

    In December, the company lost AI chief John Giannandrea, its top lawyer and a key design executive in a single week. Other recent headlines: “Apple faces unprecedented executive exodus”, “Apple rocked by executive departures, with chip chief at risk of leaving next.” “Apple home devices executive leaves for Finland’s Oura” “Lisa Jackson is set to retire late January 2026, while Kate Adams will retire in late 2026”. That’s just the names we hear about. They represent senior executives. But the harsh truth is that Apple lost tens of thousands of talented developers, marketers and mangers last year.

    What's wrong with this analysis? →

    The biggest surprise of the MacBook Neo

    The biggest surprise of the MacBook Neo

    Remembering the PC market.

    Almost 10 years ago I said “Managing the Mac product line must be one of the most challenging problems at Apple. That may not be obvious given the product’s success.” I pointed out that although the company grew the Mac into a redeemed and prosperous platform, “The big change in computing has not been a growing Mac vs. declining PC. It has been a huge surge in mobile device use vs. a decline in PC use overall.” It’s time to revisit this observation. First, a status update: The Mac is in its 42nd year...

    How to read the history of the Mac and how to look at market share gains potential. Also: why the Mac has always been a cheaper alternative for buyers. →


    Nota Bene

    Apple’s China smartphone sales jump 23% as overall market fell 4% to start 2026 → Apple defied market trends with a striking 23% iPhone sales surge in China, outpacing competitors despite broader smartphone shipment declines. →

    Running a data-center AI model on a MacBook

    Running a data-center AI model on a MacBook → The article discusses how Apple's MacBook Pro, with its unique Apple silicon architecture, could revolutionize personal AI by enabling powerful AI models to run locally without relying on cloud data centers, potentially shifting the competitive landscape in Apple's favor despite current perceptions of lagging behind in AI advancements. →

    Tim Cook: Apple just had best launch week ever for first-time Mac customers

    Tim Cook: Apple just had best launch week ever for first-time Mac customers → Apple's MacBook Neo reportedly had its strongest launch week for attracting first-time Mac buyers, hinting at successful customer transitions from Windows. →

    Apple, Samsung Dominate 2025 List of Highest-shipping Models Across Regions → In 2025, Apple dominated premium smartphone markets across North America, Europe, and Asia-Pacific, while Samsung excelled in entry- to mid-tier segments in Latin America and the Middle East and Africa. →

    Apple Is Way Behind in AI—and Still Making a Fortune From It: WSJ → "Apple's billion-dollar AI distribution play highlights its retail prowess but pales against its trillion-dollar ambitions." →

    Lobster Boil

    Lobster Boil → "OpenClaw, a revolutionary open-source AI agent by Peter Steinberger, transforms personal computing by autonomously managing tasks across platforms, sparking a Mac Mini craze and hinting at a future where AI agents are integral to daily life." →

    ‘No Near-Term Catalyst,’ KeyBanc on Apple Stock

    ‘No Near-Term Catalyst,’ KeyBanc on Apple Stock → Near-term catalysts may not sway long-term investors, but if Apple's valuation seems steep, critique the pricing, not its promising 14% revenue growth forecast. →

    Tim Cook squashes retirement rumors, says he ‘can’t imagine life without Apple’ → Tim Cook dismisses rumors of stepping down, emphasizing his enduring passion for Apple and suggesting stability through potential political changes. →

    NVIDIA’s Language Processing Units Shipments Swell 10x+ vs Previous Yr (but how do they compare to Apple Silicon volumes?) → NVIDIA's Groq investment boosts LPU forecasts to 4-5 million, yet Apple's 500 million AI chips dwarf this, hinting at centralized intelligence reminiscent of '1984.' →

    Harmful chemicals found in popular headphones → Apple's AirPods Pro 2 and JBL's Tune 720BT topped the safety charts, while budget brands like Temu raised red flags for hazardous chemical exposure. →

    When does Apple split its stock? → Apple's stock split history shows a pattern of adjusting high share prices to maintain accessibility, with splits occurring around $100-$650 thresholds, potentially hinting at a $300 minimum for future splits. →


    Asymco One gives you full access to our research, analysis, and commentary. Subscribe with code BULLETIN for a discount.

    Feedback: Have questions or comments? Reach out to us at contact@asymco.com. We’d love to hear from you.

  10. Amazon developing a new phone more than a decade after its first

    Nota Bene · 2 comments

    Who remembers the Fire?

    The latest effort, known internally as “Transformer,” is being developed within its devices and services unit, according to four people familiar with the matter. The phone is ‌seen as a potential mobile personalization device that can sync with home voice assistant Alexa and serve as a conduit to Amazon customers throughout the day, the people said.

    The initiative is the newest chapter in a years-long effort to bring ‌to market Bezos’ long-held vision of a ubiquitous voice-driven computing assistant akin to the voice-controlled computer in science fiction series “Star Trek.”

    Bezos had envisioned a smartphone that had shopping at its core and could take on Apple by offering shipping convenience and discounts through the Prime membership. Along the way, Amazon could gain a wealth of ​new data about users only available through mobile phones combined with purchase history and content preferences.

    As envisioned, the new phone’s personalization features would make buying from Amazon.com, watching Prime Video, listening to Prime Music or ordering food from partners like Grubhub easier than ever, the people said. They asked for anonymity because they were not authorized to discuss internal matters.

    A key focus of the Transformer project has been integrating artificial intelligence ‌capabilities into the device, the people said. That could eliminate the need for traditional app stores, ⁠which require downloading and registering for applications before they can be used.

    The project is being led by a year-old group within Amazon’s devices unit called ZeroOne, whose mandate ​is to create “breakthrough” gadgets, the people said. ZeroOne is led by J Allard, a former Microsoft executive involved in such devices ​as the Zune music player and Xbox gaming console.

    The head of Amazon’s devices and services unit, Panos Panay, has been working to reverse years of unprofitability in the division. That includes a forthcoming tablet that ‌will—for the first time—run Android instead of Fire OS and could sell for around $400, which Reuters was ​first to report.

    One inspiration for the new phone has been the Light Phone, two of the people said, a $700 minimalist smartphone with a camera, map, calendar and not much else, such as an app store or web browser.

    A dumbphone or feature phone could also ​help Amazon market it as a potential second handset to accompany iPhones and Samsung Galaxies already ‌in customers’ pockets, the people said. Such handsets, like the Light Phone and flip phones, accounted for 15% of global handset sales in 2025, according to Counterpoint Research.

    Source: Yahoo Finance

    NB: The problem with any new phone, whether it's from Amazon or Google or Meta or OpenAI or Trump…

  11. Qualcomm faces loss of Apple business, rated 'Underperform' by Bank of America

    Nota Bene · 3 comments

    Writing of the wall faded after years in the sun

    The analysts see Qualcomm as a leader in smartphone processors, but noted the handset chip market has matured and faces potential headwinds, including higher memory prices and a decline in business from Apple. They added that the company faces the well-known imminent ~$7 billion to $8 billion loss of Apple business.

    Apple has historically been one of Qualcomm’s largest modem customers, but the bank expects the relationship to wind down as the iPhone maker shifts to its own internally developed chips. “QCOM's modems will be completely phased out of iPhones by Fall 2027 as top customer Apple shifts to internal modems,” they wrote.

    The report also highlighted a broader trend of smartphone manufacturers investing in their own semiconductor capabilities. Samsung has reduced Qualcomm’s share of processors used in its Galaxy lineup, while Chinese smartphone maker Xiaomi has committed about $7 billion toward internal silicon research and development.

    Source: Yahoo Finance

    NB: It's not just Apple that is bailing…