Amenity Analytics offers an innovative new model to text mining, combining machine learning with a rules-based approach. While rule composition serves as the foundation for our NLP technology, our solution employs full parsing; reducing the number of rules needed and is a profound improvement upon traditional rules-based models.
Apple released a detailed update in its negative pre-announcement in early January, and that has been followed by a slew of cautious commentary on China throughout the technology sector. We used our text analytics platform to look beyond the rehashed China discussion and uncovered 3 takeaways worth exploring.
The market may be relieved by the absence of new negatives vs the negative pre-announcement, but Amenity’s NLP platform still flags Apple’s FY1Q earnings call as the most negative in the last 8 quarters. The Amenity Score of the call was 30, roughly 50% below Apple’s 8-quarter average:
China stole the headlines, but arguably the more systemic issue is the slowing pace of iPhone upgrades in the developed markets. The topic was addressed in Q&A, with acknowledgment that pricing is an issue and no specific plan for reversing the trend:
Earnings calls are never one-sided, so we looked for the incremental positives from this otherwise disappointing quarter. Wearables stood out, with demand being strong enough that Apple is hitting supply constraints:
What is the sentiment in the market around wearables? For a broader view we use Amenity Viewer's Query Insights feature and find consistently positive commentary on wearables this quarter:
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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