Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

<ul>
<li>Key iPhone components suppliers' share prices have substantially underperformed Apple, particularly Largan Precision, Genius Electronic Optical, and Zhen Ding.</li>
<li>There are reasons for iPhone 16 upgrade optimism. We also note that key suppliers failed to rally with Apple shares post-Fed rate cut.</li>
<li>Apple suppliers' 2025E forecasts haven't fallen much so far, despite the negative stock market reaction. If negative iPhone 16 reports prove exaggerated, Largan, Genius, and Zhen Ding could rebound.</li>
</ul>


Key iPhone components suppliers' share prices have substantially underperformed Apple, particularly Largan Precision, Genius Electronic Optical, and Zhen Ding.
There are reasons for iPhone 16 upgrade optimism. We also note that key suppliers failed to rally with Apple shares post-Fed rate cut.
Apple suppliers' 2025E forecasts haven't fallen much so far, despite the negative stock market reaction. If negative iPhone 16 reports prove exaggerated, Largan, Genius, and Zhen Ding could rebound.


Apple Supply Chain Monitor: Key IPhone Suppliers Didn't Rally With Apple; Opportunity for Rebound?

US-EU Index Rebalances / Quantitative Researcher, Ortex

Dimitris Ioannidis

US-EU Index Rebalances / Quantitative Researcher

Global Financial Data and Analytics Platform

Ortex

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Event-Driven

<ul>
<li>Free float is forecasted to increase from ~94% to 100% in S&amp;P 500 and other US and Global indices after <a href="https://www.smartkarma.com/entities/berkshire-hathaway-inc-cl-a" target="_blank" data-smartkarma-citation="entities:1044:1" rel="noopener">Berkshire</a> halved its stake in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> .</li>
<li>Forecasted demand from S&amp;P 500 and S&amp;P TMI is 164.2m shares, $37.1bn and 3.0 ADV at the close of 20 September 2024.</li>
<li>Materialization of the free float increase is uncertain due to debatable strategic shareholder classification. ETF ratios and current free float improve the confidence of the forecast. </li>
</ul>


Free float is forecasted to increase from ~94% to 100% in S&amp;P 500 and other US and Global indices after Berkshire halved its stake in Apple (AAPL US) .
Forecasted demand from S&amp;P 500 and S&amp;P TMI is 164.2m shares, $37.1bn and 3.0 ADV at the close of 20 September 2024.
Materialization of the free float increase is uncertain due to debatable strategic shareholder classification. ETF ratios and current free float improve the confidence of the forecast. 


Apple (AAPL): Berkshire’s Sell-Off Triggers $37bn Demand from S&P 500

Podcast On the Business of Semiconductors, The Circuit

The Circuit

Podcast On the Business of Semiconductors

A Podcast On the Business of Semiconductors. With Jay Goldberg and Ben Bajarin

<ul><li>Apple's latest iPhone release received mixed reviews, with some finding it to be a ho-hum upgrade</li><li>The base level iPhone 16 was seen as having more significant improvements compared to previous models</li><li>There is a shift in Apple's strategy to attract more users to upgrade to the base model iPhone 16, potentially increasing sales volume but leading to a drop in average selling price</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Apple's latest iPhone release received mixed reviews, with some finding it to be a ho-hum upgradeThe base level iPhone 16 was seen as having more significant improvements compared to previous modelsThere is a shift in Apple's strategy to attract more users to upgrade to the base model iPhone 16, potentially increasing sales volume but leading to a drop in average selling priceThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>TSLA/1211 HK/LI/1810 HK/NIO/XPEV: The General Manager of Tesla's Shanghai factory resigned to join an electric car company facing production capacity bottlenecks, possibly because FSD had no hope of entering China.(///////////)</li>
<li>1211HK/LI/NIO/XPEV:In the 50th week of 2024, the market generally rose and sprint towards the end of the year.It will be difficult for NIO to achieve its guidance in the Q4(///////)</li>
<li>1810 HK/AAPL US/6753 JP: Xiaomi to expand offline network in Japan (+/-/-)</li>
</ul>


TSLA/1211 HK/LI/1810 HK/NIO/XPEV: The General Manager of Tesla's Shanghai factory resigned to join an electric car company facing production capacity bottlenecks, possibly because FSD had no hope of entering China.(///////////)
1211HK/LI/NIO/XPEV:In the 50th week of 2024, the market generally rose and sprint towards the end of the year.It will be difficult for NIO to achieve its guidance in the Q4(///////)
1810 HK/AAPL US/6753 JP: Xiaomi to expand offline network in Japan (+/-/-)


[Blue Lotus Daily]:TSLA US/1211 HK/LI US/1810 HK/NIO US/XPEV US/1810 HK/AAPL US/6753 JP

AI and Global Deep Tech, Mint Finance

Uttkarsh Kohli

AI and Global Deep Tech

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>Apple’s App Store contributed to the $85.2 billion service segment revenue in 2023, with an impressive gross margin of 70.2%, making it a crucial profit driver within Apple's Services segment.</li>
<li>The restructuring splits the App Store division into two teams: one to oversee the traditional App Store, and another to manage new, legally mandated alternative app distribution channels. </li>
<li>Developers who choose to bypass the App Store may incur a substantial Core Technology Fee, potentially amounting to hundreds of thousands of dollars, reflecting the cost of maintaining Apple’s ecosystem.</li>
</ul>


Apple’s App Store contributed to the $85.2 billion service segment revenue in 2023, with an impressive gross margin of 70.2%, making it a crucial profit driver within Apple's Services segment.
The restructuring splits the App Store division into two teams: one to oversee the traditional App Store, and another to manage new, legally mandated alternative app distribution channels. 
Developers who choose to bypass the App Store may incur a substantial Core Technology Fee, potentially amounting to hundreds of thousands of dollars, reflecting the cost of maintaining Apple’s ecosystem.


Apple Restructures App Store Amid EU Regulations, Developer Dissatisfaction, and Market Pressures

United States

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Apple (AAPL US)

Apple Supply Chain Monitor: Key IPhone Suppliers Didn't Rally With Apple; Opportunity for Rebound?

iPhone suppliers' shares have lagged behind Apple's, but could revert and catch up if initial negative iPhone reports prove unfounded. Solid 2025E...

Vincent Fernando, CFA

Apple (AAPL): Berkshire’s Sell-Off Triggers $37bn Demand from S&P 500

On 20 September 2024, there were ~260m shares, ~4.4 ADV in passive fund demand based on that day’s volume and the 3-month ADTV. This verifies the...

Dimitris Ioannidis

Episode 84: Apple's Technology and AI

Overall, Apple's recent event sparked discussions about the new iPhone 16 models, the upgrade cycle, and potential impact on sales.

The Circuit

[Blue Lotus Daily]:TSLA US/1211 HK/LI US/1810 HK/NIO US/XPEV US/1810 HK/AAPL US/6753 JP

Tesla's Shanghai factory GM resigns to join electric car company facing production issues, possibly due to FSD's China entry uncertainty. Xiaomi...

Blue Lotus Research Institute

Apple Restructures App Store Amid EU Regulations, Developer Dissatisfaction, and Market Pressures

Apple restructures the App Store, responding to EU regulations. With the App Store generating $85.2B in 2023 and a 70.2% margin, this shift could...

Mint Finance

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Apple Supply Chain Monitor: Key IPhone Suppliers Didn't Rally With Apple; Opportunity for Rebound?

​iPhone suppliers' shares have lagged behind Apple's, but could revert and catch up if initial negative iPhone reports prove unfounded. Solid 2025E...

Vincent Fernando, CFA

Apple (AAPL): Berkshire’s Sell-Off Triggers $37bn Demand from S&P 500

On 20 September 2024, there were ~260m shares, ~4.4 ADV in passive fund demand based on that day’s volume and the 3-month ADTV. This verifies the...

Dimitris Ioannidis

Episode 84: Apple's Technology and AI

Overall, Apple's recent event sparked discussions about the new iPhone 16 models, the upgrade cycle, and potential impact on sales.

The Circuit

[Blue Lotus Daily]:TSLA US/1211 HK/LI US/1810 HK/NIO US/XPEV US/1810 HK/AAPL US/6753 JP

​Tesla's Shanghai factory GM resigns to join electric car company facing production issues, possibly due to FSD's China entry uncertainty. Xiaomi...

Blue Lotus Research Institute

Apple Restructures App Store Amid EU Regulations, Developer Dissatisfaction, and Market Pressures

Apple restructures the App Store, responding to EU regulations. With the App Store generating $85.2B in 2023 and a 70.2% margin, this shift could...

Mint Finance

iPhone suppliers' shares have lagged behind Apple's, but could revert and catch up if initial negative iPhone reports prove unfounded. Solid 2025E...

Tesla's Shanghai factory GM resigns to join electric car company facing production issues, possibly due to FSD's China entry uncertainty. Xiaomi...