Three things that got the team talking this week - Firetrail Investments

Weekly insights from the Trail

Three things that got the team talking this week

September 20, 2024September 27th, 2024

Feature Image

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.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Firetrail. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Firetrail.