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1. Telcos – selling phones

Looking for a new phone? This is your moment. There are some sharp trade-in deals in Australia coming up to the launch of the new Apple iPhone from Telstra, Optus and Vodafone. Apple is hoping it’s first round of intelligence can drive a replacement cycle in phones to drive profitability.

Early data from US brokers suggests lead times are low indicating either slightly less demand or a bigger supply chain build by Apple. iPhone 16 Pro Max lead times are currently around 23 days creating a bit of excitement with the tech heads.

Source: Telstra (September 2024)

2. Mobile & AI

T-Mobile (US) announced a deal with OpenAI to build a platform based on T-Mobile data sets.

  • Some of the benefits expected include:
  • Call centre replacement.
  • Preventing subscriber losses based on predicting churn behaviour (perhaps logging in to check bill details).
  • Quickly accessing data on billing and network performance for a customer to head off issues in the future.

OpenAI have promised not to use corporate data to train their broader models, a key point of contention among all data owners.

Source: Llama 3.1 using prompt ‘call centre staff picture’ (September 2024)

3. Travel remains HIGH on the agenda

Multiple data points this week suggest travel remains high on the agenda:

  • Low cost European airline Ryanair said August / September was much better than May, June and July.
  • UBS released a quarterly survey of 1,000 Australians suggesting we are looking to travel more. Almost as much as straight after lockdown.
  • Those with high incomes showed the greatest increase in travel intentions.

Source: UBS (September 2024)

Disclaimer

This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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