At CES 2019, Samsung announced something that nobody quite expected, Apple's Siri, AirPlay 2, and iTunes movies will be available on Samsung's Smart TVs.

[Samsung] will offer iTunes Movies and TV Shows and Apple AirPlay 2 support on 2019 Samsung Smart TV models beginning this spring. Support on 2018 Samsung Smart TVs will be made available via firmware update.

With Samsung Smart TVs getting support for AirPlay 2, users will be able to play their videos, movies, music, podcasts, and show photos on their Samsung Smart TVs without needing any additional hardware.

Also from the Samsung press release

iTunes Movies and TV Shows app will debut only on Samsung Smart TVs in more than 100 countries. AirPlay 2 support will be available on Samsung Smart TVs in 190 countries worldwide.

Apple has also updated their ≤a href="https://www.apple.com/airplay">AirPlay page with some additional information.

AirPlay 2–enabled TVs. Now that’s smart.

Leading TV manufacturers are integrating AirPlay 2 directly into their TVs, so now you can effortlessly share or mirror almost anything from your iOS device or Mac directly to your AirPlay 2–enabled smart TV. You can even play music on the TV and sync it with other AirPlay 2–compatible speakers anywhere in your home.

Control it all with a tap.

Use the remote that’s always with you — your iPhone. Convenient built-in controls appear in apps, on the Lock screen, and in Control Center. So you can easily play, pause, fast-forward, rewind, and adjust the volume on your TV.

Put Siri in charge of your TV.

With AirPlay 2 and HomeKit, you can use Siri on your iPhone to send a video to your TV.1 Better yet, ask Siri to play a specific show in a specific room.

It should be no surprise that Apple's Remote app will work with Smart TVs for controlling the software. It should be noted that the Samsung TVs will be apps on the TV. If users already have an existing iTunes library, they will be able to browse their collection, rent, and purchase iTunes movies right from the iTunes Movies and TV Shows app on their Samsung TV.

All of these features are coming soon. The fact that Apple is partnering with a television manufacturer does support that Apple is trying to become a services company. Along with this, it may also indicate that the video strategy for Apple will be shifting to offering video on more than just its own hardware. We do not know this for sure, but time will tell.

If you are in the market for a new television and you want to be able to integrate your existing AirPlay 2 items with your TV, the new Samsung TVs may be worth looking at.

Sources Apple and Samsung.

Today Tim Cook sent a letter to investors. The letter contains some adjustment to their first quarter guidance for 2019. At the last investor call, in October, Apple issued guidance of $89 to $93 billion in revenue and grow margins of between 38 and 38.5 percent. This has been reduced to $84 billion in revenue, with gross margins of approximately 38 percent.

The adjustment is $5 billion less than the low end of their projection, and a full $9 billion below the high-end of their estimate. This range is 5.6% to 9.6% less than the overall guidance. There is no doubt about it, it is bad news. How bad this will ultimately be, will only be told in time.

This is not the first time that Apple has issued this type of guidance, but it is not done often. The last time this type of guidance was given was in June 2002.

In 2002, Apple's reduction was given at $1.4 billion to $1.45 billion. This was down from $1.6 billion. This was a reduction of 9.38% to 12.5%. So, on the bright side, this year's revenue reduction is actually better, even though the revenue is more than 50 times greater. Let us look at the reasons for this decline.

The Reasons

Apple provided a few reasons as to why they believe their initial guidance was off.

Staggered iPhone Launches

The iPhone X came out later than the iPhone XS and iPhone XS Max, so Apple indicates that it was difficult to determine how much of an impact this would have on quarterly revenue.

Foreign Exchange rates

A stronger U.S. Dollar means that devices purchases are more expensive in other countries, which will impact revenue.

The larger number of new products

Apple has indicated that the larger number products to sell lead to supply constraints for some products, like the Apple Watch Series 4 and the iPad Pro. Along with these, the AirPods and MacBook Air were also constrained. A supply constraint means that Apple could not sell more of the products, because they could not manufacture enough to meet demand. These supply constraints were throughout the quarter. The AirPods and Apple Watch are still supply constrained.

Emerging Market Sales

According to Apple, this is the biggest factor. In particular, revenue Greater China. To quote the letter

In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad.

In Q1 2018, revenue was $88.3 Billion. The revised guidance given is $84 billion in revenue. The difference between these two is $4.3 billion. So the statement above, to me, reads that Apple lost more than $4.3 billion in revenue in Greater China. The reasons provided are that China's Gross Domestic Product, or GDP, has had its lowest growth in quite a while.

Positives

Not all of the information in the investor note is doom and gloom. The install base of Apple devices is 100 million more than in 2018, meaning it is currently 1.4 billion devices, because the install base in Q1 2018 was 1.3 billion.

Another positive is that revenue outside of iPhone is up 19%, which is definitely a good thing as Apple tries to become a services company. Speaking of services, services alone generated $10.8 billion in revenue, and all regions saw growth. Wearable revenue grew 50%. This is fueled by Apple Watch and AirPods.

Closing Thoughts

There will likely be a lot of takes from this investor note. It is not surprising that Apple would add some positivity to the note, in addition to the reduced guidance provided. A single quarter where guidance is reduced will not break Apple. Apple has over $130 billion of cash on hand, so Apple will be fine overall.

There is one thing to keep in mind. As stated within the letter,

While it will be a number of weeks before we complete and report our final results, we wanted to get some preliminary information to you now. Our final results may differ somewhat from these preliminary estimates.

This means that we could see better, or worse, results when Apple provides its final results at their quarterly conference call. The conference call will be on January 29th, 2019. As one last note, starting with this quarter, Apple will not be providing unit numbers for any of their products.

Source: apple.com