From: Richard Kahn

From: Richard Kahn To: Jeffrey Epstein <jeevacation@gmail.cont - Subject: Fwd: Apple, Inc.: Long-awaited Mac/iPad Upgrades Date: Tue, 30 Oct 2018 17:23:10 +0000 Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York NY 10022 tel fa cell Begin forwarded message: From: "Morgan Stanley" Subject: Apple, Inc.: Long-awaited Mac/iPad Upgrades Date: October 30. 2018 at 1:19:02 PM EDT To: Reply-To: < glaMorgan Stanley Wealth Management Apple. Inc.: Long-awaited Mac/iPad Upgrades ge, Download Report EFTA01018210 Katy L. Huberty, CFA - Morgan Stanley October 30, 2018 5:15 PM GMT Earlier today, Apple unveiled a new line of iPad Pro, Macbook Air, and Mac Mini devices, which was largely in-line with investor expectations. Previous iPad events aren't typically stock moving events for Apple - shares have underperformed vs. the S&P by 30bps on the day of the event but outperformed by 30bps one week after the event - however, we view the new product line up as a positive step forward in 1) improving Apples overall ASP trajectory, 2) increasing brand loyalty, and 3) opening the door for a more comprehensive gaming experience. The refreshed products are the first to integrate some of the new technology first offered in the iPhone X, such as Face ID (iPad Pro), a new Al2X Bionic chip (iPad Pro), retina display (Macbook Air), and a new T2 security chip (Macbook Air and Mac Mini). Other improvements were mostly iterative features such as improvements in memory and storage capacity. In our view, the most impressive new feature announced was the iPad Pro's updated creative pro and gaming capabilities. Enabled by the new Al2X Bionic chip, the iPad Pro is able to deliver graphics on par with the Xbox One S, creating an experience that attempts to rival console gaming with demo of NBA 2K from Take-Two Interactive. Adobe also showcased an impressive demo of image editing in Adobe Photoshop with augmented experience in Project Aero. While Mac and iPad combined only represent 17% and 11% of FY18e revenue and gross profit, respectively, today's announcements further enhance the Apple device ecosystem and enable customers to better take advantage of Apples many Services offerings.Other Apple/ICS updates announced today include:iOS 12 was installed on more devices in the first month than any past iOS. 60% of iPhone base now uses iOS 12. Apple shipped 400M iPads to-date with more iPads sold in the last year (44.2M) than any other Notebook vendor.Active Mac installed base recently reached 100M, implying a —5 year upgrade cycle. 51% of Mac buyers are new to t This alert is sent from: Andrew Atlas. AndrewAUas@morganstanley.com You received this because you requested that you receive content and reports from: APPLE INC. Please contact your FA if you want to unsubscribe from the alerts. Disclosures: Please see the full report for risks, disclosures and other important information. Important disclosures regarding the relationship between the companies that are referenced in Morgan Stanley research and Morgan Stanley Wealth Management research are available on the Morgan Stanley Wealth Management disclosure website at httpsi/www.morganstanley.comlonline/researchdisclosures. Morgan Stanley Wealth Management Not Acting as Municipal Advisor Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be. and do not constitute, advice within the meaning of the Municipal Advisor Rule. Copyright The copyright in materials provided by Morgan Stanley is owned by Morgan Stanley & Co. LLC. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. O 2018 Morgan Stanley Smith Barney LLC. Member SIPC. EFTA01018211