
Tech Brew Ride Home Wed. 05/01 - Apple’s Earnings Were Bad, But Investors Rejoiced
May 1, 2019
Despite disappointing earnings, Apple saw investor cheer, fueled by growth in their services sector. Andreessen Horowitz is revolutionizing its investment strategy while former Google CEO Eric Schmidt exits Alphabet's board after 18 impactful years. Hulu celebrates a surge in subscribers, positioning itself against major competitors. Meanwhile, Facebook's F8 event highlights privacy-enhancing innovations as the tech giant grapples with the balance between profitability and user safety.
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Apple's Shift to Services
- Apple's Q2 2019 earnings showed declining revenue, particularly in iPhone sales.
- However, investors were pleased with the growth of Apple's services revenue, indicating a shift in focus.
Apple as a Subscription Business
- Dave Gerard suggests viewing Apple as a subscription business, with iPhones as the key acquisition tool.
- He predicts subscription numbers will become more important than iPhone sales.
A16Z's Expansion
- Andreessen Horowitz (A16Z) closed two new funds, totaling $2.75 billion, bringing their total to almost $10 billion.
- This move aligns with their strategy to expand into public markets, other VC funds, and cryptocurrencies.







