1
00:00:01,680 --> 00:00:02,520
Speaker 1: From Mahart.

2
00:00:02,520 --> 00:00:06,960
Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN.

3
00:00:07,320 --> 00:00:11,360
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

4
00:00:25,680 --> 00:00:27,720
Speaker 3: I'm Caroline Heidel, Bloomberg's Well's I caught us in New

5
00:00:27,800 --> 00:00:31,720
Speaker 3: York and Amed Ludlow here in Cupertino, Apple Campus the

6
00:00:31,840 --> 00:00:33,320
Speaker 3: Steve Jobs Theater behind me.

7
00:00:33,720 --> 00:00:37,760
Speaker 4: This carr is a special Bloomberg Technology and everything iPhone

8
00:00:37,800 --> 00:00:39,680
Speaker 4: at Apple's wonder last event and.

9
00:00:39,760 --> 00:00:44,600
Speaker 3: Everything change of cords and everything focus on AirPods on

10
00:00:44,680 --> 00:00:46,479
Speaker 3: the watch as well. We have got so much to

11
00:00:46,560 --> 00:00:48,640
Speaker 3: drive forward as well as some of those headwinds when

12
00:00:48,680 --> 00:00:50,440
Speaker 3: it comes to China, when it comes to supply chain,

13
00:00:50,479 --> 00:00:52,479
Speaker 3: when it comes to those all important chips that I

14
00:00:52,600 --> 00:00:55,120
Speaker 3: know you love so much. And we've got the perfect

15
00:00:55,160 --> 00:00:56,720
Speaker 3: person to be setting us up into all of this.

16
00:00:56,760 --> 00:01:00,440
Speaker 3: Bloomberg's Tom Charles joins us for really ready what we

17
00:01:00,520 --> 00:01:03,360
Speaker 3: anticipate Margham and just comes out with really a fully

18
00:01:03,440 --> 00:01:06,480
Speaker 3: fledged view of what we're going to be delivered. The

19
00:01:06,560 --> 00:01:09,240
Speaker 3: point is how much importance this is to an investor

20
00:01:09,280 --> 00:01:09,920
Speaker 3: based Tom.

21
00:01:10,440 --> 00:01:13,959
Speaker 5: Yeah, this is a huge moment for Apple, this company.

22
00:01:14,040 --> 00:01:17,560
Speaker 5: There's been a lot of anticipation for this event. But

23
00:01:17,720 --> 00:01:20,800
Speaker 5: this year it's particularly high, and that's for a couple

24
00:01:20,880 --> 00:01:24,040
Speaker 5: of reasons. One, we expect this to be a major

25
00:01:24,240 --> 00:01:28,440
Speaker 5: upgrade in a lot of areas, camera chip. This is

26
00:01:28,760 --> 00:01:33,600
Speaker 5: Apple's most important device, and they are going for the

27
00:01:33,680 --> 00:01:34,360
Speaker 5: gusto here.

28
00:01:34,840 --> 00:01:37,080
Speaker 2: There is a lot of upgrades, there's a lot of changes.

29
00:01:37,360 --> 00:01:38,160
Speaker 2: This is a major one.

30
00:01:38,240 --> 00:01:41,560
Speaker 5: This is not incremental. So in that regard, this is

31
00:01:41,680 --> 00:01:46,720
Speaker 5: hugely important. And remember the backdrop here is a decline

32
00:01:47,040 --> 00:01:52,800
Speaker 5: in global smartphone demand and that's something that Apple is

33
00:01:52,880 --> 00:01:54,720
Speaker 5: really having to fight against.

34
00:01:56,440 --> 00:01:58,600
Speaker 3: I think we're having a few technical issues at the moment, Tom,

35
00:01:58,640 --> 00:01:59,920
Speaker 3: but I just want to drive it home with you

36
00:02:00,040 --> 00:02:02,760
Speaker 3: a little bit more in terms of what we understand

37
00:02:02,840 --> 00:02:05,240
Speaker 3: the power of the iPhone. We understand the two hundred

38
00:02:05,280 --> 00:02:07,760
Speaker 3: billion dollars it brings in terms of revenue per year.

39
00:02:08,200 --> 00:02:11,520
Speaker 3: I'm interested in, ultimately, with a price point that may

40
00:02:11,639 --> 00:02:16,079
Speaker 3: well rise, how much can they really ensure a consumer

41
00:02:16,120 --> 00:02:19,760
Speaker 3: will go there? Tom Ah, I think we've lost Tom

42
00:02:19,880 --> 00:02:23,480
Speaker 3: Giles unfortunately. But Ed, I think at the moment in Kubatino,

43
00:02:23,560 --> 00:02:25,440
Speaker 3: there's going to be a lot of excitement, a lot

44
00:02:25,480 --> 00:02:28,840
Speaker 3: of people waiting with baited breath for the upgrades, and

45
00:02:28,919 --> 00:02:30,919
Speaker 3: we've got a perfect guest to be sort of driving

46
00:02:31,000 --> 00:02:31,960
Speaker 3: that conversation forward.

47
00:02:32,520 --> 00:02:35,200
Speaker 4: Yeah, and hey, I'll remind our audience there's a reason

48
00:02:35,240 --> 00:02:38,120
Speaker 4: Apple pre records this presentation and then plays it out

49
00:02:38,200 --> 00:02:41,640
Speaker 4: later to get rid of those technical issues. Absolutely delighted

50
00:02:41,720 --> 00:02:44,160
Speaker 4: to be joined here at Apple campus by a net

51
00:02:44,280 --> 00:02:47,600
Speaker 4: Zimmerman Gartner analyst. And you know, atte we've gone through

52
00:02:47,639 --> 00:02:50,280
Speaker 4: all the specs we're expecting, lots of focus on the

53
00:02:50,360 --> 00:02:54,760
Speaker 4: higher end pro and promacs, updated silicon, updated camera.

54
00:02:55,240 --> 00:02:58,280
Speaker 6: For you, what is most important to return Apple to growth?

55
00:03:00,320 --> 00:03:02,679
Speaker 1: Yeah, So I mean at the moment, of course, is

56
00:03:02,680 --> 00:03:05,080
Speaker 1: still a little bit of speculation what we will see.

57
00:03:05,160 --> 00:03:08,000
Speaker 1: And I think there's going to be some kind of

58
00:03:08,040 --> 00:03:11,640
Speaker 1: feature that we haven't heard about yet because it's called wonderlust, right,

59
00:03:11,720 --> 00:03:14,440
Speaker 1: so that the event so wonder or emerging in the

60
00:03:14,480 --> 00:03:19,480
Speaker 1: word wonder with wanderlust, which means literally translated to be

61
00:03:20,600 --> 00:03:22,639
Speaker 1: the desire to travel. And I think we all have

62
00:03:22,760 --> 00:03:27,359
Speaker 1: this desire to travel since the pandemic, and that we

63
00:03:27,440 --> 00:03:29,679
Speaker 1: have most of it behind us. So I think there's

64
00:03:29,720 --> 00:03:33,880
Speaker 1: going to be something around, you know, certain sensors that

65
00:03:34,360 --> 00:03:40,200
Speaker 1: will make workout and traveling and just moving around even

66
00:03:40,240 --> 00:03:44,400
Speaker 1: more precise and more accurate and more yeah, engaging basically,

67
00:03:44,520 --> 00:03:45,840
Speaker 1: So I think there's there's going to be a lot

68
00:03:45,960 --> 00:03:48,920
Speaker 1: of around new precise sensors and these kind of things.

69
00:03:49,000 --> 00:03:51,200
Speaker 4: The event is underway and in the early stages they're

70
00:03:51,240 --> 00:03:54,840
Speaker 4: sharing video with people using older generation of iPhone, older

71
00:03:54,920 --> 00:03:55,920
Speaker 4: generation of the watch.

72
00:03:55,960 --> 00:03:59,160
Speaker 6: In the real world, the iPhone seems to be everything.

73
00:03:59,360 --> 00:04:02,720
Speaker 4: Just explain to or alreadience how important the refresh cycle

74
00:04:02,840 --> 00:04:06,040
Speaker 4: is for Apple every new generation of iPhone that they release.

75
00:04:06,640 --> 00:04:11,160
Speaker 1: Yeah, So Apple targets obviously different user groups. So one

76
00:04:11,280 --> 00:04:15,160
Speaker 1: user group is the early adopters that usually upgrade their

77
00:04:15,200 --> 00:04:17,840
Speaker 1: phone maybe every two years and sometimes even every year.

78
00:04:18,279 --> 00:04:21,320
Speaker 1: So that is usually the group that they target with

79
00:04:21,360 --> 00:04:24,520
Speaker 1: their very high end devices. But then you also have

80
00:04:24,600 --> 00:04:26,680
Speaker 1: a very loyal user group that is more in the

81
00:04:26,720 --> 00:04:29,720
Speaker 1: mid range and maybe more on the budget side that

82
00:04:30,360 --> 00:04:33,960
Speaker 1: sometimes you know, they upgrade only after five years, you know,

83
00:04:34,040 --> 00:04:36,240
Speaker 1: as long as the you know, you can upgrade the

84
00:04:36,360 --> 00:04:40,920
Speaker 1: operating system and and I think especially it's gonna be

85
00:04:41,760 --> 00:04:44,200
Speaker 1: or this event is usually around the higher end in

86
00:04:44,240 --> 00:04:48,960
Speaker 1: the mid range type of devices and the users and

87
00:04:49,279 --> 00:04:51,880
Speaker 1: for for those users that maybe wait a little bit

88
00:04:51,920 --> 00:04:56,760
Speaker 1: longer for for upgrading. Apple also has some some interesting

89
00:04:57,200 --> 00:05:01,920
Speaker 1: price offers, usually with with those you know that's come

90
00:05:02,160 --> 00:05:04,960
Speaker 1: or that have been introduced earlier in the year so

91
00:05:06,080 --> 00:05:08,680
Speaker 1: or last year maybe even so all of this will

92
00:05:08,720 --> 00:05:13,080
Speaker 1: be important. It's the whole thing about Apple targeting these

93
00:05:13,120 --> 00:05:17,360
Speaker 1: different user groups, but also really paying attention to these

94
00:05:17,440 --> 00:05:20,000
Speaker 1: different segments and try to make them happy.

95
00:05:20,120 --> 00:05:24,240
Speaker 4: Yes, you are watching Bloomberg Technology special coverage of Apple's

96
00:05:24,279 --> 00:05:28,799
Speaker 4: wonder last event. We're expecting iPhone fifteen and net zimmermun

97
00:05:28,839 --> 00:05:31,840
Speaker 4: Gardner analyst with me and in the early stages the

98
00:05:31,920 --> 00:05:35,080
Speaker 4: presentation started a couple of minutes in. They've been talking

99
00:05:35,200 --> 00:05:39,960
Speaker 4: about how Apple devices help consumers and users in medical

100
00:05:40,040 --> 00:05:43,760
Speaker 4: emergency situations. At the beginning of our conversation you mentioned

101
00:05:43,880 --> 00:05:46,840
Speaker 4: censor technology. We know that there are some updates to

102
00:05:46,920 --> 00:05:50,760
Speaker 4: watch coming, but talk about that healthcare segment and indeed

103
00:05:51,040 --> 00:05:53,279
Speaker 4: the emergency case scenario with Apple.

104
00:05:53,680 --> 00:05:53,880
Speaker 2: Yeah.

105
00:05:54,600 --> 00:06:00,640
Speaker 1: So at WWDC we saw some really interesting developments with

106
00:06:00,800 --> 00:06:05,400
Speaker 1: iOS and and the ability to you know, there to

107
00:06:05,640 --> 00:06:09,320
Speaker 1: to support people with their physical health but also with

108
00:06:09,440 --> 00:06:12,359
Speaker 1: their mental health. Right and and so we're we're seeing

109
00:06:12,760 --> 00:06:18,280
Speaker 1: Apple expanding significantly into different areas. So it's yeah, it's

110
00:06:18,279 --> 00:06:21,800
Speaker 1: it's about our behavior, our health, our mental health or

111
00:06:21,880 --> 00:06:25,280
Speaker 1: physical health. That will I think, you know, as part

112
00:06:25,320 --> 00:06:28,240
Speaker 1: of our everyday life and we need to embrace it

113
00:06:28,320 --> 00:06:32,520
Speaker 1: and we need to or we can use specifically the

114
00:06:32,839 --> 00:06:36,040
Speaker 1: Apple devices to support us in our journey for health.

115
00:06:36,680 --> 00:06:39,040
Speaker 4: I can confirm that Tim Cook is now speaking on

116
00:06:39,160 --> 00:06:41,280
Speaker 4: stage and he said that he's going to be talking

117
00:06:41,320 --> 00:06:45,080
Speaker 4: about Apple Watch and iPhone not really surprising. One thing

118
00:06:45,160 --> 00:06:48,560
Speaker 4: that's going to impact consumers everywhere is the move to USBC.

119
00:06:49,440 --> 00:06:52,640
Speaker 4: It's a European Union mandate deadline end of twenty twenty four.

120
00:06:52,960 --> 00:06:55,600
Speaker 4: What effect will the hat for Apple switching to USBC.

121
00:06:56,920 --> 00:06:57,840
Speaker 6: It has a big.

122
00:06:57,800 --> 00:07:03,400
Speaker 1: Effect on Apple because they obviously had to make technical

123
00:07:03,480 --> 00:07:07,120
Speaker 1: and physical changes to the design and to you know,

124
00:07:07,560 --> 00:07:11,280
Speaker 1: basically to the entire roadmap of devices that will be coming.

125
00:07:11,600 --> 00:07:14,640
Speaker 1: And there will be more on top of that will

126
00:07:14,680 --> 00:07:19,160
Speaker 1: be made or changes will be made because the use

127
00:07:19,200 --> 00:07:23,040
Speaker 1: also looking for better repair ability of devices, so on

128
00:07:23,160 --> 00:07:27,360
Speaker 1: Apple has to invest in new designs to make those

129
00:07:27,640 --> 00:07:31,880
Speaker 1: devices more repair able and also make mix spare parts available,

130
00:07:32,000 --> 00:07:35,560
Speaker 1: make it affordable available to users so you can do

131
00:07:35,680 --> 00:07:38,160
Speaker 1: your do your own repair if you want these kind

132
00:07:38,200 --> 00:07:41,640
Speaker 1: of things. And but that impacts Apple and the entire

133
00:07:41,680 --> 00:07:43,600
Speaker 1: industry really Tim Cook is.

134
00:07:43,640 --> 00:07:47,440
Speaker 4: Using these early stages to talk about WWDC Dune, the

135
00:07:47,640 --> 00:07:49,800
Speaker 4: M two chip Ultra chip that went into the fifteen

136
00:07:49,840 --> 00:07:53,040
Speaker 4: inch MacBook Air, Mac Studio Mac Pro, basically saying the

137
00:07:53,120 --> 00:07:56,360
Speaker 4: feedback in response has been fantastic. We will see if

138
00:07:56,400 --> 00:07:58,840
Speaker 4: the feedback or response is as good for this next

139
00:07:58,960 --> 00:08:00,200
Speaker 4: generation of.

140
00:08:01,720 --> 00:08:03,320
Speaker 6: iPhone, which is what we will.

141
00:08:03,640 --> 00:08:06,520
Speaker 4: Focus on most net Zimmermum Gartner. And it's so good

142
00:08:06,520 --> 00:08:09,440
Speaker 4: to have you here in real time during this Apple

143
00:08:09,480 --> 00:08:10,240
Speaker 4: Wonderlust event.

144
00:08:10,320 --> 00:08:11,600
Speaker 6: Caroline back to you in New York.

145
00:08:11,880 --> 00:08:14,480
Speaker 3: I know, so great to have the on the feeling

146
00:08:14,640 --> 00:08:17,160
Speaker 3: sense of this moment. And actually we're hearing from Tim

147
00:08:17,200 --> 00:08:19,440
Speaker 3: Cook as well, saying, look, Apple is still on track

148
00:08:19,800 --> 00:08:22,520
Speaker 3: to ship its Vision Pro in early twenty twenty four.

149
00:08:23,120 --> 00:08:26,240
Speaker 3: Now we are still anticipating the announcements regarding the Watch,

150
00:08:26,400 --> 00:08:28,200
Speaker 3: the AirPods, the new ways in which are going to

151
00:08:28,200 --> 00:08:30,560
Speaker 3: be charging them through the USB, and indeed what we're

152
00:08:30,600 --> 00:08:32,720
Speaker 3: waiting on the iPhone fifteen range. But let's go back

153
00:08:32,720 --> 00:08:36,200
Speaker 3: to Tom Giles, of course, and Tom, this is about

154
00:08:36,640 --> 00:08:40,040
Speaker 3: consumer or, but it's also about investor reality, and at

155
00:08:40,080 --> 00:08:42,280
Speaker 3: this moment they've got plenty of headwinds. We're worried about

156
00:08:42,360 --> 00:08:45,360
Speaker 3: Chinese consumer, we're worried about supply chain as well. How

157
00:08:45,440 --> 00:08:47,559
Speaker 3: do you think they managed to tackle or offset that

158
00:08:47,720 --> 00:08:48,720
Speaker 3: narrative at this moment.

159
00:08:49,760 --> 00:08:53,000
Speaker 5: Yeah, and don't forget they've also got Huawei in the mix,

160
00:08:53,120 --> 00:08:56,000
Speaker 5: Juahwei out with a new phone with a new operating

161
00:08:56,160 --> 00:09:01,160
Speaker 5: system and gathering a lot of momentum behind. So there's

162
00:09:01,200 --> 00:09:04,520
Speaker 5: a lot that they have to do here today to

163
00:09:04,720 --> 00:09:07,240
Speaker 5: prove that this is a really special upgrade. As we

164
00:09:07,320 --> 00:09:11,560
Speaker 5: were talking about earlier, this isn't your average instance where

165
00:09:11,880 --> 00:09:14,760
Speaker 5: they're adding a few things. They're iterating around the edges.

166
00:09:15,040 --> 00:09:18,040
Speaker 5: There are some substantial changes. If you talk to Mark German,

167
00:09:18,120 --> 00:09:21,520
Speaker 5: he will tell you that this is a major set

168
00:09:21,600 --> 00:09:24,360
Speaker 5: of upgrades, and that's what Apple is doing to really

169
00:09:24,480 --> 00:09:29,400
Speaker 5: take the attention off the competitive threat, the pressure from

170
00:09:29,480 --> 00:09:32,959
Speaker 5: the Chinese government on using the iPhone in that country,

171
00:09:33,480 --> 00:09:34,400
Speaker 5: the pressure from.

172
00:09:34,320 --> 00:09:35,920
Speaker 2: Huawei, all of it.

173
00:09:36,559 --> 00:09:39,400
Speaker 5: This is Tim Cook's moment to take your attention off

174
00:09:39,440 --> 00:09:42,080
Speaker 5: of that and show once again that we're adding really

175
00:09:42,160 --> 00:09:45,839
Speaker 5: special features to the iPhone. The faster chip again, this

176
00:09:46,040 --> 00:09:49,960
Speaker 5: telephoto lens with the camera that's letting you take these

177
00:09:50,160 --> 00:09:52,800
Speaker 5: up close, these up close photos.

178
00:09:53,120 --> 00:09:55,920
Speaker 2: With the iPhone, things you can't do with other devices.

179
00:09:56,320 --> 00:09:59,120
Speaker 5: This is his moment to remind people we're doing things

180
00:09:59,160 --> 00:10:02,120
Speaker 5: that are really special with this camera, and it's.

181
00:10:02,040 --> 00:10:05,800
Speaker 2: Really important because it makes up half of the company's revenue.

182
00:10:06,040 --> 00:10:09,160
Speaker 3: And to be fair like, analysts still seem convinced by

183
00:10:09,280 --> 00:10:10,960
Speaker 3: all of that. At the moment, Tom I'm looking at

184
00:10:11,000 --> 00:10:13,480
Speaker 3: thirty five by ratings. That's two thirds of all the

185
00:10:13,520 --> 00:10:15,840
Speaker 3: ans out there rate this stock a buy. And in fact,

186
00:10:15,840 --> 00:10:18,679
Speaker 3: there's still about fifteen percent upside potential if you're looking

187
00:10:18,720 --> 00:10:21,360
Speaker 3: at a price target consensus of two hundred and four.

188
00:10:21,880 --> 00:10:23,959
Speaker 2: But we have had this sort of knock.

189
00:10:23,840 --> 00:10:26,480
Speaker 3: To the overall market capitalization of Apple over the last

190
00:10:26,520 --> 00:10:30,240
Speaker 3: few training days. And ultimately, how important is the fact

191
00:10:30,280 --> 00:10:32,080
Speaker 3: that they can nudge us up on a price point.

192
00:10:32,200 --> 00:10:33,960
Speaker 2: How resilient does the US.

193
00:10:33,840 --> 00:10:35,160
Speaker 3: Consumer need to be at this moment?

194
00:10:36,040 --> 00:10:36,880
Speaker 2: Yeah, definitely.

195
00:10:37,040 --> 00:10:39,600
Speaker 5: I mean Apple has to walk a really fine line

196
00:10:39,679 --> 00:10:42,040
Speaker 5: right with the way they price this device. And that's

197
00:10:42,080 --> 00:10:44,959
Speaker 5: why they've got multiple devices that are going to be

198
00:10:45,040 --> 00:10:48,079
Speaker 5: getting upgrades today. And exactly where are they going to

199
00:10:48,120 --> 00:10:50,959
Speaker 5: tinker with pricing? How much do they add those high

200
00:10:51,080 --> 00:10:52,120
Speaker 5: end features.

201
00:10:51,760 --> 00:10:54,280
Speaker 2: To the lower end devices? All of those things.

202
00:10:54,360 --> 00:10:56,480
Speaker 5: This is the kind of thing that Apple spends a

203
00:10:56,600 --> 00:11:01,040
Speaker 5: lot of time thinking about very strategically, and they do.

204
00:11:01,280 --> 00:11:04,040
Speaker 5: They tend to be very smart about it, not loading

205
00:11:04,120 --> 00:11:06,400
Speaker 5: too much into the lower end devices so that they

206
00:11:06,440 --> 00:11:08,520
Speaker 5: can still sell them at a little bit of a

207
00:11:08,559 --> 00:11:11,160
Speaker 5: discount to the higher end devices. How do they keep

208
00:11:11,520 --> 00:11:13,559
Speaker 5: those margins going in the right direction, and if you

209
00:11:13,600 --> 00:11:16,840
Speaker 5: look at their gross margins, they're going in the right direction.

210
00:11:17,080 --> 00:11:20,600
Speaker 5: So how does Apple do this, particularly at a time

211
00:11:20,720 --> 00:11:25,200
Speaker 5: when you're seeing overall demand for smartphones globally dropping off.

212
00:11:25,440 --> 00:11:28,760
Speaker 5: Q two was a really tough quarter, both for the

213
00:11:28,880 --> 00:11:34,360
Speaker 5: iOS that's Apple and Android that's the Google operating system

214
00:11:34,440 --> 00:11:37,520
Speaker 5: that's in so many global devices. But something that Apple

215
00:11:37,600 --> 00:11:40,360
Speaker 5: did in the second quarter was they weathered the storm

216
00:11:40,960 --> 00:11:43,960
Speaker 5: better than Android. And that's what Tim Cook really wants

217
00:11:44,000 --> 00:11:46,440
Speaker 5: to see Apple continue to do going forward.

218
00:11:47,280 --> 00:11:50,040
Speaker 3: Well, we'll have so much more from Tim Cook, from you, Tom,

219
00:11:50,120 --> 00:11:53,040
Speaker 3: We thank you so much all regarding this big unveil

220
00:11:53,080 --> 00:11:55,280
Speaker 3: where we understand that it is official. The S nine

221
00:11:55,640 --> 00:11:58,160
Speaker 3: of the watch has arrived, and indeed it's got an

222
00:11:58,240 --> 00:12:00,120
Speaker 3: S nine chips, so we're going to have some they

223
00:12:00,160 --> 00:12:03,480
Speaker 3: call major performance improvements overall. We understand that the CEO,

224
00:12:03,600 --> 00:12:06,400
Speaker 3: Jeff Williams is on the stage at the moment, introducing

225
00:12:06,440 --> 00:12:08,720
Speaker 3: this next generation of the Apple Watch, and it's scouting

226
00:12:08,760 --> 00:12:12,560
Speaker 3: an improved performance overall, including the new chip and calling

227
00:12:12,559 --> 00:12:15,439
Speaker 3: it the most powerful Apple Watch chip to date. Now

228
00:12:15,559 --> 00:12:17,679
Speaker 3: we're going to be talking so much about the intricacies

229
00:12:17,720 --> 00:12:19,559
Speaker 3: of this announcement with Ray Wang. He's a CEO and

230
00:12:19,559 --> 00:12:22,880
Speaker 3: principle analyst of Constellation Research. His take what is being

231
00:12:22,880 --> 00:12:25,800
Speaker 3: announced at the Apple event is over in Kubertino. That's

232
00:12:25,840 --> 00:12:28,600
Speaker 3: where r Ed Ludlow is too. This is Blue meg technology,

233
00:12:48,160 --> 00:12:48,520
Speaker 3: all right.

234
00:12:48,679 --> 00:12:51,280
Speaker 4: The latest headlines coming out of this Apple Wonderlust event

235
00:12:51,440 --> 00:12:54,480
Speaker 4: center on the next generation Apple Watch, the S nine

236
00:12:54,920 --> 00:12:57,719
Speaker 4: or nine series, with an updated piece of Silicon S

237
00:12:57,880 --> 00:13:02,000
Speaker 4: nine chip, thirty percent more powerful GPU CARO. In terms

238
00:13:02,040 --> 00:13:04,559
Speaker 4: of some of the things that this manifests itself with

239
00:13:04,880 --> 00:13:08,880
Speaker 4: dictation twenty five percent more accurate, eighteen hours of battery life,

240
00:13:09,080 --> 00:13:11,400
Speaker 4: two ways of looking at it. That's all day battery life,

241
00:13:11,400 --> 00:13:14,640
Speaker 4: although Mark German posting in the Bloomberg Top Live blog

242
00:13:14,920 --> 00:13:18,160
Speaker 4: that is basically the same as prior generations. Also, the

243
00:13:18,240 --> 00:13:21,040
Speaker 4: ability to engage with Siri directly to the watch without

244
00:13:21,120 --> 00:13:23,040
Speaker 4: latency in a more secure method.

245
00:13:23,120 --> 00:13:25,280
Speaker 6: That's what they're leaning on with this latest watch.

246
00:13:25,480 --> 00:13:28,280
Speaker 3: Yeah, more effective use and point. Also, integration with a

247
00:13:28,360 --> 00:13:30,720
Speaker 3: home pod is an interesting one as well. But overall

248
00:13:31,040 --> 00:13:33,960
Speaker 3: new gesture control being integrated, they've got to be pushing

249
00:13:34,400 --> 00:13:37,040
Speaker 3: really the way in which they're standing out from a

250
00:13:37,120 --> 00:13:40,240
Speaker 3: crowded space when it comes to connected devices, the way

251
00:13:40,280 --> 00:13:42,679
Speaker 3: in which we measure our healthhead because well many have

252
00:13:42,760 --> 00:13:45,480
Speaker 3: been getting into the rings the watches of other variations too.

253
00:13:47,559 --> 00:13:49,960
Speaker 4: Yeah, something really cool they've just announced with this latest

254
00:13:50,000 --> 00:13:53,439
Speaker 4: generation Watch series nine has gesture control, So with a

255
00:13:53,520 --> 00:13:57,760
Speaker 4: one handed gesture you can engage with the watch called

256
00:13:57,880 --> 00:13:58,960
Speaker 4: it's called double tap.

257
00:13:59,320 --> 00:14:00,960
Speaker 6: So I don't know how needle.

258
00:14:00,760 --> 00:14:03,040
Speaker 4: Moving that is, right, the ability to waive at one's

259
00:14:03,080 --> 00:14:05,120
Speaker 4: wrists and watch, but we will find out because there

260
00:14:05,200 --> 00:14:07,839
Speaker 4: is somebody who definitely has a stronger perspective on this

261
00:14:07,960 --> 00:14:11,679
Speaker 4: than Ui, and that is Ray Wang, Consolation CEO and

262
00:14:11,760 --> 00:14:12,760
Speaker 4: principal analysts.

263
00:14:13,080 --> 00:14:14,479
Speaker 6: Good to see you here in Cupatino.

264
00:14:14,760 --> 00:14:17,480
Speaker 4: Based on what I've just reported for you on the

265
00:14:17,520 --> 00:14:19,680
Speaker 4: Apple Watch Series nine, what do you make of that?

266
00:14:19,760 --> 00:14:21,640
Speaker 6: As quick reaction, Yeah, welcome to the hometown.

267
00:14:21,680 --> 00:14:23,880
Speaker 7: Like corup Patino, I think the really important thing that's

268
00:14:23,920 --> 00:14:26,920
Speaker 7: going on here is the important piece that they're going

269
00:14:26,960 --> 00:14:29,120
Speaker 7: from silicon to chip, and they're using their silicon to

270
00:14:29,280 --> 00:14:31,360
Speaker 7: manage the batter life, using the silicon to handle the

271
00:14:31,440 --> 00:14:34,440
Speaker 7: AI capabilities, and all those are really important, especially when

272
00:14:34,440 --> 00:14:36,720
Speaker 7: you think about what Apple's known for. They have full

273
00:14:36,840 --> 00:14:39,840
Speaker 7: control of their ecosystem and that starts with the silicon,

274
00:14:39,920 --> 00:14:42,240
Speaker 7: and so they're showcasing that on the watch, and of

275
00:14:42,320 --> 00:14:43,760
Speaker 7: course I think we're all waiting to see if there

276
00:14:43,760 --> 00:14:46,200
Speaker 7: are other things that are going to be monitored, right,

277
00:14:46,280 --> 00:14:48,600
Speaker 7: other health indicators that I think would drive other people

278
00:14:48,680 --> 00:14:50,400
Speaker 7: to go to the Ultra and of course to the

279
00:14:50,480 --> 00:14:51,240
Speaker 7: Series nine watch.

280
00:14:51,440 --> 00:14:53,680
Speaker 4: Yeah, the expectation is that we would have two size

281
00:14:53,760 --> 00:14:56,440
Speaker 4: variants of Series nine, one new variant of the Ultra.

282
00:14:57,040 --> 00:15:00,680
Speaker 4: These are the early exchanges of this event. Apple Wonderlus

283
00:15:00,760 --> 00:15:03,200
Speaker 4: is underway behind us in the Steve Jobs Theater, and

284
00:15:03,320 --> 00:15:06,480
Speaker 4: you're right, we're waiting for four variants of the iPhone fifteen.

285
00:15:07,160 --> 00:15:10,760
Speaker 4: How important is it that the hardware upgrades on the

286
00:15:10,840 --> 00:15:14,240
Speaker 4: pro side are substantive to drive an upgrade cycle.

287
00:15:14,560 --> 00:15:16,320
Speaker 7: Well, when we look at the entire upgrade cycle, we're

288
00:15:16,320 --> 00:15:19,000
Speaker 7: talking about a billion iPhones that need to get five

289
00:15:19,120 --> 00:15:21,120
Speaker 7: G right, and it's been happening over the next three years,

290
00:15:21,720 --> 00:15:23,960
Speaker 7: and so as we're moving those in that supercycle. The

291
00:15:24,000 --> 00:15:27,320
Speaker 7: big piece is really is a tolefootal lens potentially enough

292
00:15:27,400 --> 00:15:29,520
Speaker 7: to get you there. The USBC got to do it

293
00:15:29,560 --> 00:15:32,600
Speaker 7: because there's a regulatory requirement. Is it also going to

294
00:15:32,640 --> 00:15:34,560
Speaker 7: be something around? Is it a battery life?

295
00:15:34,640 --> 00:15:35,360
Speaker 2: Is this a feature?

296
00:15:35,520 --> 00:15:37,440
Speaker 7: Is it a service that's going to take people to

297
00:15:37,520 --> 00:15:39,920
Speaker 7: that next level of using the iPhone? But the chips

298
00:15:39,960 --> 00:15:42,480
Speaker 7: make a big difference. The battery life makes a big difference,

299
00:15:42,640 --> 00:15:46,640
Speaker 7: and potentially a forty eight megapixel camera may make that difference.

300
00:15:46,880 --> 00:15:48,120
Speaker 4: I want to go back to the watch for just

301
00:15:48,160 --> 00:15:51,360
Speaker 4: a second. Some other information. Is the series nine, let's

302
00:15:51,400 --> 00:15:55,440
Speaker 4: call it the base model has double the brightness two

303
00:15:55,520 --> 00:15:58,440
Speaker 4: thousand nits. That goes back to the last generation of Ultra.

304
00:15:59,160 --> 00:16:01,000
Speaker 4: What is the strategy do you see there from Apple?

305
00:16:01,040 --> 00:16:04,000
Speaker 4: They're basically taking last year's tech and putting it into

306
00:16:04,040 --> 00:16:05,200
Speaker 4: this year's base models.

307
00:16:05,600 --> 00:16:06,440
Speaker 6: Yeah, we're seeing things.

308
00:16:06,480 --> 00:16:08,560
Speaker 7: If you want the Pro or the Ultra, you want

309
00:16:08,600 --> 00:16:10,520
Speaker 7: the top level, you'll pay a little bit more for

310
00:16:10,600 --> 00:16:12,080
Speaker 7: the new chip, and then you're going to see that

311
00:16:12,160 --> 00:16:15,080
Speaker 7: gradation come into different markets. Let's take India for example,

312
00:16:15,160 --> 00:16:17,320
Speaker 7: right the big talk about India. You might have different

313
00:16:17,360 --> 00:16:20,520
Speaker 7: price points given where the demographics and the socioeconomics are,

314
00:16:20,960 --> 00:16:23,000
Speaker 7: you'll have a different price point in the UK, of course,

315
00:16:23,080 --> 00:16:24,400
Speaker 7: and you have a different price point if you're in

316
00:16:24,400 --> 00:16:24,920
Speaker 7: the Middle East.

317
00:16:25,120 --> 00:16:25,240
Speaker 1: Right.

318
00:16:25,320 --> 00:16:28,320
Speaker 7: Remember, Apple is at the heart a luxury brand, and

319
00:16:28,400 --> 00:16:31,320
Speaker 7: because it's a luxury brand, that's what's driving that capability.

320
00:16:31,520 --> 00:16:34,720
Speaker 4: Right now, onstage Apple, we're talking about their environmental goals

321
00:16:34,800 --> 00:16:37,760
Speaker 4: and the progress they've made and sustainability and materials.

322
00:16:38,240 --> 00:16:40,040
Speaker 6: Is that an important factor for you?

323
00:16:40,560 --> 00:16:41,320
Speaker 2: It's important for.

324
00:16:41,400 --> 00:16:43,720
Speaker 7: Me, especially when we think about circular economy and we

325
00:16:43,800 --> 00:16:46,280
Speaker 7: think about how much energy is required to create a device,

326
00:16:46,440 --> 00:16:49,000
Speaker 7: how you bring that back into it. Apple's been a leader,

327
00:16:49,160 --> 00:16:51,960
Speaker 7: especially in sustainability and some of those ESJ goles, and

328
00:16:52,040 --> 00:16:54,320
Speaker 7: it goes from not not just you know, the battery,

329
00:16:54,440 --> 00:16:57,160
Speaker 7: but it's also the materials and the recycling process. I've

330
00:16:57,240 --> 00:16:59,000
Speaker 7: probably turned in and maybe you as well turned in

331
00:16:59,080 --> 00:17:00,200
Speaker 7: a couple of phones in the fact.

332
00:17:00,400 --> 00:17:00,760
Speaker 1: To do that.

333
00:17:01,000 --> 00:17:04,480
Speaker 4: So Okay, forget what we've reported and what we think

334
00:17:04,680 --> 00:17:07,200
Speaker 4: is coming. What do you want to see in these

335
00:17:07,280 --> 00:17:09,600
Speaker 4: higher end iPhone fifteen Pro and promacs.

336
00:17:09,880 --> 00:17:12,360
Speaker 7: Yeah, I think people are looking for better features, They're

337
00:17:12,359 --> 00:17:14,800
Speaker 7: looking for experiences. For example, the ability to tie these

338
00:17:14,840 --> 00:17:18,159
Speaker 7: to more devices. They're looking for the eventual integration between

339
00:17:18,280 --> 00:17:21,960
Speaker 7: mac os iOS and watch os and then of course

340
00:17:22,119 --> 00:17:23,680
Speaker 7: you know they're trying to figure out, hey, maybe there's

341
00:17:23,680 --> 00:17:25,840
Speaker 7: a sneak peek into vision Pro and what's going to

342
00:17:25,920 --> 00:17:28,480
Speaker 7: take us into Vision Pro as the replacement for the

343
00:17:28,560 --> 00:17:33,640
Speaker 7: Mac Like that integration has always been an Apple fans dream,

344
00:17:33,760 --> 00:17:35,359
Speaker 7: right to be able to bring all those things together.

345
00:17:35,920 --> 00:17:39,240
Speaker 4: Ray Wang, Constellation Research CEO and principle analyst, joining us

346
00:17:39,280 --> 00:17:41,600
Speaker 4: in real time Caroline here in Kubatino.

347
00:17:41,720 --> 00:17:43,600
Speaker 6: The Apple event is underway and.

348
00:17:43,720 --> 00:17:47,040
Speaker 3: Is underway, and there's a focus on the environment, on sustainability,

349
00:17:47,119 --> 00:17:49,080
Speaker 3: and we understand the latest headline is it's going to

350
00:17:49,119 --> 00:17:52,520
Speaker 3: be phasing out its lever from its iPhone cases and

351
00:17:52,640 --> 00:17:55,280
Speaker 3: many had taken that queue from well moves over at

352
00:17:55,320 --> 00:17:57,600
Speaker 3: ames of Late. Coming up, we're going to have so

353
00:17:57,760 --> 00:17:59,840
Speaker 3: much more coming for you the analysis from Apple. Thomas

354
00:18:00,119 --> 00:18:02,400
Speaker 3: and he's vice president in principal analyst over at Forester

355
00:18:02,480 --> 00:18:04,680
Speaker 3: Research is going to be joining the show live from

356
00:18:04,720 --> 00:18:05,880
Speaker 3: Cupertino from New York.

357
00:18:05,920 --> 00:18:06,800
Speaker 6: We've got it all covered.

358
00:18:06,880 --> 00:18:24,280
Speaker 3: This is blue bag technology, and so we have the

359
00:18:24,359 --> 00:18:27,240
Speaker 3: news coming from the Apple event in Coupatino. Thick and fast.

360
00:18:27,280 --> 00:18:30,639
Speaker 3: Of course, I Watch Series nine going to be more powerful, swifter,

361
00:18:30,760 --> 00:18:33,920
Speaker 3: We're going to be having the ability to well hand gesture,

362
00:18:34,080 --> 00:18:35,800
Speaker 3: to be able to waveh fingers at it. Double tap

363
00:18:35,920 --> 00:18:38,880
Speaker 3: is what it's called intraoperability with your home pod as well.

364
00:18:39,280 --> 00:18:42,600
Speaker 3: Really this is about being faster and more powerful. We're

365
00:18:42,640 --> 00:18:46,200
Speaker 3: also seeing some more nuanced announcements around perhaps the wind

366
00:18:46,280 --> 00:18:48,400
Speaker 3: down of any leather at the moment when it comes

367
00:18:48,440 --> 00:18:51,000
Speaker 3: to being used in iPhone cases, So a push on sustainability.

368
00:18:51,040 --> 00:18:53,160
Speaker 3: But we all await the iPhone fifteen and the array

369
00:18:53,400 --> 00:18:55,600
Speaker 3: that we get there Forester Research Vice president of principal

370
00:18:55,600 --> 00:18:58,680
Speaker 3: anistad analyst Thomas Fusson is with us and Thomas, you

371
00:18:58,760 --> 00:19:00,920
Speaker 3: were expecting perhaps an ultra version of the Watch. What

372
00:19:01,160 --> 00:19:03,320
Speaker 3: more do you anticipate from the phone lineup and is

373
00:19:03,359 --> 00:19:04,320
Speaker 3: it going to be enough?

374
00:19:06,160 --> 00:19:10,639
Speaker 8: Well, I'd expect significant incremental innovation and improvement on the

375
00:19:10,760 --> 00:19:14,679
Speaker 8: lineup of the especially on the iPhone and the iPhone pros.

376
00:19:16,080 --> 00:19:19,520
Speaker 8: We've heard right now about some of the sustainability efforts.

377
00:19:19,880 --> 00:19:22,800
Speaker 8: I think what would be very disruptive is to hear

378
00:19:22,880 --> 00:19:25,879
Speaker 8: more of a device as a service offering where you

379
00:19:26,080 --> 00:19:32,359
Speaker 8: have a bundle of rware content and some circularity services recurability.

380
00:19:33,560 --> 00:19:36,080
Speaker 8: That would be a great step. I'm not sure we're

381
00:19:36,119 --> 00:19:40,000
Speaker 8: going to hear that tonight and forratunity, so is it

382
00:19:40,080 --> 00:19:43,200
Speaker 8: going to be enough? I think Apple will maintain its

383
00:19:43,359 --> 00:19:47,240
Speaker 8: leadership when it comes to smartphone innovation. The bigger question,

384
00:19:47,440 --> 00:19:50,200
Speaker 8: I think, given the economy context and we don't know yet,

385
00:19:50,840 --> 00:19:51,680
Speaker 8: is going to be around.

386
00:19:51,520 --> 00:19:56,160
Speaker 3: Pricing precisely, and many anticipating that prices will rise, We're

387
00:19:56,160 --> 00:19:58,960
Speaker 3: going to boost the average selling price. We're still focusing

388
00:19:59,080 --> 00:20:02,480
Speaker 3: at the moment in ten on the environmental impact. Lisa Jackson,

389
00:20:02,520 --> 00:20:05,560
Speaker 3: the EPA chief, saying about how by twenty thirty, Apple

390
00:20:05,600 --> 00:20:07,639
Speaker 3: devices will be net zero in impact. That was a

391
00:20:07,920 --> 00:20:11,440
Speaker 3: Tim Cook ad as well. I'm interested in really the

392
00:20:11,560 --> 00:20:14,639
Speaker 3: Huawei and Chinese perspective here as well, because there's been

393
00:20:14,640 --> 00:20:16,840
Speaker 3: a lot of headwinds on Apple stock of late. Do

394
00:20:16,920 --> 00:20:19,600
Speaker 3: you think that the innovation is enough for Apple to

395
00:20:19,720 --> 00:20:22,160
Speaker 3: fight off the homegrown innovation of a Huawei.

396
00:20:24,160 --> 00:20:25,919
Speaker 6: Well, I think so.

397
00:20:26,000 --> 00:20:29,040
Speaker 8: From a pure innovation standpoint. I think the bigger question

398
00:20:29,320 --> 00:20:32,800
Speaker 8: is about the geopolitical context in China and the fact

399
00:20:32,840 --> 00:20:36,320
Speaker 8: that the iPhone has been banned to potentially dozens of

400
00:20:36,400 --> 00:20:41,480
Speaker 8: millions of employees working in public, state employees or for

401
00:20:41,560 --> 00:20:44,880
Speaker 8: the government in China. What will be the consumer sentiment

402
00:20:44,960 --> 00:20:49,600
Speaker 8: of Chinese consumers is a very big unknown, given the

403
00:20:49,680 --> 00:20:53,240
Speaker 8: fact that the Greater China represents about a fifth of

404
00:20:53,359 --> 00:20:57,920
Speaker 8: Apple's revenue, so that might be another reason for a

405
00:20:57,960 --> 00:20:59,400
Speaker 8: potential price up tag.

406
00:20:59,440 --> 00:21:01,600
Speaker 6: In other use, we keep.

407
00:21:01,440 --> 00:21:03,360
Speaker 3: An eye on the price point and indeed, what we're

408
00:21:03,359 --> 00:21:05,040
Speaker 3: going to hear when it comes to the new phones

409
00:21:05,359 --> 00:21:08,000
Speaker 3: for us to research Vice president and principle analyst Thomas

410
00:21:08,040 --> 00:21:12,119
Speaker 3: Housson joining us on what we've so far been digesting,

411
00:21:12,280 --> 00:21:14,639
Speaker 3: and it is a focus on the environment. Lisa Jackson

412
00:21:14,680 --> 00:21:17,200
Speaker 3: I misspoke earlier, of course, was a former EPA chief

413
00:21:17,400 --> 00:21:21,000
Speaker 3: ed Apple's head of environment now really outlining the efforts

414
00:21:21,040 --> 00:21:23,560
Speaker 3: and Tim cook saying by twenty thirty Apple devices will

415
00:21:23,600 --> 00:21:26,600
Speaker 3: be and having a net zero impact. But give us

416
00:21:26,600 --> 00:21:28,560
Speaker 3: the nitty gritty on what we got from at least

417
00:21:28,600 --> 00:21:32,040
Speaker 3: connected devices and watches in particular, because many a broceed

418
00:21:32,040 --> 00:21:32,360
Speaker 3: for more.

419
00:21:33,359 --> 00:21:33,560
Speaker 6: Yeah.

420
00:21:33,640 --> 00:21:35,800
Speaker 4: Look, I think we've probably got a more substantive upgrade

421
00:21:35,840 --> 00:21:38,439
Speaker 4: to the Series nine watch, the lower base model than

422
00:21:38,440 --> 00:21:41,399
Speaker 4: we thought we'd get. New Silicon S nine chip thirty

423
00:21:41,400 --> 00:21:45,200
Speaker 4: percent breaded performance on the GPU side, but You're right though,

424
00:21:45,240 --> 00:21:47,800
Speaker 4: that real focus on the environmental side of this story.

425
00:21:47,840 --> 00:21:50,520
Speaker 4: If you take Series nine is an example, north of

426
00:21:50,640 --> 00:21:53,440
Speaker 4: eighty percent of it is made of recycled materials. That

427
00:21:53,600 --> 00:21:56,639
Speaker 4: includes some of the core metals like tungsten and copper,

428
00:21:57,480 --> 00:21:59,399
Speaker 4: you know, and the pledge from Tim Kok is that

429
00:21:59,440 --> 00:22:02,480
Speaker 4: by twenty thirty all devices will have net zero.

430
00:22:02,760 --> 00:22:04,040
Speaker 6: So it's a commitment.

431
00:22:04,080 --> 00:22:05,960
Speaker 4: But as our guests have made the point this whole show,

432
00:22:06,520 --> 00:22:09,040
Speaker 4: it's about the supply chain and how they're adjusting to that.

433
00:22:09,920 --> 00:22:12,240
Speaker 3: Well, we'll see how that titanium comes into the mix

434
00:22:12,320 --> 00:22:14,800
Speaker 3: in a moment. That's what for sorts anticipated the lineup

435
00:22:14,800 --> 00:22:17,040
Speaker 3: of phones that does have this special edition of Bloueberg

436
00:22:17,080 --> 00:22:19,520
Speaker 3: Technology Live from Coopertino and from New York.

437
00:22:19,760 --> 00:22:20,480
Speaker 2: This is Bloomberg