This was Good right i mean You were hearing this a while ago and You said it was going to be good and It's good yeah i knew but i'm surprised This is far better than what i would Have expected and one comment that emily Said that really got my attention was That half the ipad buyers were new Buyers and this is exactly what i've Been saying for the last several days Please trust the power of the ecosystem Because once you buy these products you Get i mean it's like a cult you are part Of it you're gonna buy new products You're gonna buy services and that Install base is not going to well this Should be pointed out though they Refresh that ipad in a meaningful way And i pointed out because i was one of The people one of the new ipad customers Here and i had been waiting for a while Because they all the refreshes they did Were just kind of like oh they were Nothing and then they did a major one Here it was a significant one especially To the mini so the fair point is that Since you are an old apple user yeah You're going to go and buy a new apple Product If the old one you didn't like it you Didn't go out and buy another ecosystem You were part of the ecosystem and i Think that's the main thing is you stick
To the ecosystem and you don't you know Go away from it yeah the only maybe Negative spot here is wearables home and Accessories coming in lighter than Expectations so of course tim cook Continuing to talk about record numbers Across the board but there have been big Expectations for that because we thought The wearables and the new sort of health And the fitness was going to be a big Bright spot does any of that stickiness Worry you no it doesn't because you know What it'll come back the next quarter The iphone numbers are surprising i mean One would have expected with so much Exposure to china and rush so i mean Europe in general you would have Expected some software is there i'm i'm A bit surprised about that services Growth 17 I was expecting slow i mean not they had Guided to about that number but i would Have expected a little bit slower Because the app store revenue uh wasn't That high according to our estimates and Talk to us a little bit about the Buyback a 90 billion dollar increase i Mean that seems pretty par for the Course for apple See one of the things we talked about Before also that they can spend anywhere From 90 to 100 billion dollars buying Back their own stock and nothing's gonna Happen to their balance sheet they're
Not even this is this is just portion of What they're generating right now this Is not you're not even borrowing a Dollar from anywhere else right now they Have excess cash on the balance sheet And we are so far away from them being Actually what they call as a net neutral At this point I'm curious about the wearables business I mean the revenue there it's not really Growth right i mean but they still talk About this business like it's a key Component of their overall strategy why Yeah but you know it's again part of the Ecosystem you're gonna you know those The little tags or the headphones or you Know all these things just part of you Know maintaining what you already have Right just kind of keeping you tethered To that we heard from tim cook of course Talking about the streaming business i Know apple tv and nothing burger when You're talking about billions of dollars But After netflix we were really wondering Who's committed to to this business and It takes commitment are you assured that The apple tv is again keeping me in the Ecosystem is it where is the juice worth The squeeze so so this is the thing that We think now with netflix blowing up i Think it's really good for both amazon And and apple because they can spend a Lot more more on buying new content and
Creating new content without worrying About you know what investors are going To say netflix will have to worry about Giving some margin back and you they Can't bet blindly anymore than they were Before so it's going to be very Interesting of how these two companies Go out and gain some market share over The next few years is that organic Growth Yes and no they will buy some content Out there but as tim is saying you know They're going to create their own Original content and become a Differentiator so if i was say i'm going To give you an iphone subscription plan With some of these things bundled around It i mean that's that's a good thing and It keeps the platform even more stickier
