Apple reports earnings tonight investors are going to focus on its

outlook as a critical indicator for tech not to mention capital returns and

that is the focus of today's tech check with dear Debosa.

Hey, D.

Carl, as usual, that's right, iPhone services revenue and

guidance, capital allocation.

Those will all be in focus.

But there's also a new story emerging.

Investors, they'll also be paying more attention to growth in apples installed

user base as evidence that the product flywheel is working. Consumer buys a

device, adds a service, maybe an upgrade, buys another product, more services,

rinse and repeat.

Deepwater management points to that flywheel to make the argument that Apple's

investment case is shifting.

20 years ago, it was a hardware company 10 years ago,

recurring revenue from its services unit that

became the story now they say there is a new chapter in the investment thesis

Apple will begin to be seen as a can't live without consumer Staples company and a premium one at that which could

help push the multiple higher. Key Bank echoes that thought writing for Apple it's

much more about a user growth story than a unit growth story.

The flip side though, revenue it is expected to decline,

and analysts expect a similar decline in the current quarter.

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