WEBVTT - Technology Special: Apple's Wonderlust Event 0:00:01.680 --> 0:00:02.520 From Mahart. 0:00:02.520 --> 0:00:06.960 We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.320 --> 0:00:11.360 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.680 --> 0:00:27.720 I'm Caroline Heidel, Bloomberg's Well's I caught us in New 0:00:27.800 --> 0:00:31.720 York and Amed Ludlow here in Cupertino, Apple Campus the 0:00:31.840 --> 0:00:33.320 Steve Jobs Theater behind me. 0:00:33.720 --> 0:00:37.760 This carr is a special Bloomberg Technology and everything iPhone 0:00:37.800 --> 0:00:39.680 at Apple's wonder last event and. 0:00:39.760 --> 0:00:44.600 Everything change of cords and everything focus on AirPods on 0:00:44.680 --> 0:00:46.479 the watch as well. We have got so much to 0:00:46.560 --> 0:00:48.640 drive forward as well as some of those headwinds when 0:00:48.680 --> 0:00:50.440 it comes to China, when it comes to supply chain, 0:00:50.479 --> 0:00:52.479 when it comes to those all important chips that I 0:00:52.600 --> 0:00:55.120 know you love so much. And we've got the perfect 0:00:55.160 --> 0:00:56.720 person to be setting us up into all of this. 0:00:56.760 --> 0:01:00.440 Bloomberg's Tom Charles joins us for really ready what we 0:01:00.520 --> 0:01:03.360 anticipate Margham and just comes out with really a fully 0:01:03.440 --> 0:01:06.480 fledged view of what we're going to be delivered. The 0:01:06.560 --> 0:01:09.240 point is how much importance this is to an investor 0:01:09.280 --> 0:01:09.920 based Tom. 0:01:10.440 --> 0:01:13.959 Yeah, this is a huge moment for Apple, this company. 0:01:14.040 --> 0:01:17.560 There's been a lot of anticipation for this event. But 0:01:17.720 --> 0:01:20.800 this year it's particularly high, and that's for a couple 0:01:20.880 --> 0:01:24.040 of reasons. One, we expect this to be a major 0:01:24.240 --> 0:01:28.440 upgrade in a lot of areas, camera chip. This is 0:01:28.760 --> 0:01:33.600 Apple's most important device, and they are going for the 0:01:33.680 --> 0:01:34.360 gusto here. 0:01:34.840 --> 0:01:37.080 There is a lot of upgrades, there's a lot of changes. 0:01:37.360 --> 0:01:38.160 This is a major one. 0:01:38.240 --> 0:01:41.560 This is not incremental. So in that regard, this is 0:01:41.680 --> 0:01:46.720 hugely important. And remember the backdrop here is a decline 0:01:47.040 --> 0:01:52.800 in global smartphone demand and that's something that Apple is 0:01:52.880 --> 0:01:54.720 really having to fight against. 0:01:56.440 --> 0:01:58.600 I think we're having a few technical issues at the moment, Tom, 0:01:58.640 --> 0:01:59.920 but I just want to drive it home with you 0:02:00.040 --> 0:02:02.760 a little bit more in terms of what we understand 0:02:02.840 --> 0:02:05.240 the power of the iPhone. We understand the two hundred 0:02:05.280 --> 0:02:07.760 billion dollars it brings in terms of revenue per year. 0:02:08.200 --> 0:02:11.520 I'm interested in, ultimately, with a price point that may 0:02:11.639 --> 0:02:16.079 well rise, how much can they really ensure a consumer 0:02:16.120 --> 0:02:19.760 will go there? Tom Ah, I think we've lost Tom 0:02:19.880 --> 0:02:23.480 Giles unfortunately. But Ed, I think at the moment in Kubatino, 0:02:23.560 --> 0:02:25.440 there's going to be a lot of excitement, a lot 0:02:25.480 --> 0:02:28.840 of people waiting with baited breath for the upgrades, and 0:02:28.919 --> 0:02:30.919 we've got a perfect guest to be sort of driving 0:02:31.000 --> 0:02:31.960 that conversation forward. 0:02:32.520 --> 0:02:35.200 Yeah, and hey, I'll remind our audience there's a reason 0:02:35.240 --> 0:02:38.120 Apple pre records this presentation and then plays it out 0:02:38.200 --> 0:02:41.640 later to get rid of those technical issues. Absolutely delighted 0:02:41.720 --> 0:02:44.160 to be joined here at Apple campus by a net 0:02:44.280 --> 0:02:47.600 Zimmerman Gartner analyst. And you know, atte we've gone through 0:02:47.639 --> 0:02:50.280 all the specs we're expecting, lots of focus on the 0:02:50.360 --> 0:02:54.760 higher end pro and promacs, updated silicon, updated camera. 0:02:55.240 --> 0:02:58.280 For you, what is most important to return Apple to growth? 0:03:00.320 --> 0:03:02.679 Yeah, So I mean at the moment, of course, is 0:03:02.680 --> 0:03:05.080 still a little bit of speculation what we will see. 0:03:05.160 --> 0:03:08.000 And I think there's going to be some kind of 0:03:08.040 --> 0:03:11.640 feature that we haven't heard about yet because it's called wonderlust, right, 0:03:11.720 --> 0:03:14.440 so that the event so wonder or emerging in the 0:03:14.480 --> 0:03:19.480 word wonder with wanderlust, which means literally translated to be 0:03:20.600 --> 0:03:22.639 the desire to travel. And I think we all have 0:03:22.760 --> 0:03:27.359 this desire to travel since the pandemic, and that we 0:03:27.440 --> 0:03:29.679 have most of it behind us. So I think there's 0:03:29.720 --> 0:03:33.880 going to be something around, you know, certain sensors that 0:03:34.360 --> 0:03:40.200 will make workout and traveling and just moving around even 0:03:40.240 --> 0:03:44.400 more precise and more accurate and more yeah, engaging basically, 0:03:44.520 --> 0:03:45.840 So I think there's there's going to be a lot 0:03:45.960 --> 0:03:48.920 of around new precise sensors and these kind of things. 0:03:49.000 --> 0:03:51.200 The event is underway and in the early stages they're 0:03:51.240 --> 0:03:54.840 sharing video with people using older generation of iPhone, older 0:03:54.920 --> 0:03:55.920 generation of the watch. 0:03:55.960 --> 0:03:59.160 In the real world, the iPhone seems to be everything. 0:03:59.360 --> 0:04:02.720 Just explain to or alreadience how important the refresh cycle 0:04:02.840 --> 0:04:06.040 is for Apple every new generation of iPhone that they release. 0:04:06.640 --> 0:04:11.160 Yeah, So Apple targets obviously different user groups. So one 0:04:11.280 --> 0:04:15.160 user group is the early adopters that usually upgrade their 0:04:15.200 --> 0:04:17.840 phone maybe every two years and sometimes even every year. 0:04:18.279 --> 0:04:21.320 So that is usually the group that they target with 0:04:21.360 --> 0:04:24.520 their very high end devices. But then you also have 0:04:24.600 --> 0:04:26.680 a very loyal user group that is more in the 0:04:26.720 --> 0:04:29.720 mid range and maybe more on the budget side that 0:04:30.360 --> 0:04:33.960 sometimes you know, they upgrade only after five years, you know, 0:04:34.040 --> 0:04:36.240 as long as the you know, you can upgrade the 0:04:36.360 --> 0:04:40.920 operating system and and I think especially it's gonna be 0:04:41.760 --> 0:04:44.200 or this event is usually around the higher end in 0:04:44.240 --> 0:04:48.960 the mid range type of devices and the users and 0:04:49.279 --> 0:04:51.880 for for those users that maybe wait a little bit 0:04:51.920 --> 0:04:56.760 longer for for upgrading. Apple also has some some interesting 0:04:57.200 --> 0:05:01.920 price offers, usually with with those you know that's come 0:05:02.160 --> 0:05:04.960 or that have been introduced earlier in the year so 0:05:06.080 --> 0:05:08.680 or last year maybe even so all of this will 0:05:08.720 --> 0:05:13.080 be important. It's the whole thing about Apple targeting these 0:05:13.120 --> 0:05:17.360 different user groups, but also really paying attention to these 0:05:17.440 --> 0:05:20.000 different segments and try to make them happy. 0:05:20.120 --> 0:05:24.240 Yes, you are watching Bloomberg Technology special coverage of Apple's 0:05:24.279 --> 0:05:28.799 wonder last event. We're expecting iPhone fifteen and net zimmermun 0:05:28.839 --> 0:05:31.840 Gardner analyst with me and in the early stages the 0:05:31.920 --> 0:05:35.080 presentation started a couple of minutes in. They've been talking 0:05:35.200 --> 0:05:39.960 about how Apple devices help consumers and users in medical 0:05:40.040 --> 0:05:43.760 emergency situations. At the beginning of our conversation you mentioned 0:05:43.880 --> 0:05:46.840 censor technology. We know that there are some updates to 0:05:46.920 --> 0:05:50.760 watch coming, but talk about that healthcare segment and indeed 0:05:51.040 --> 0:05:53.279 the emergency case scenario with Apple. 0:05:53.680 --> 0:05:53.880 Yeah. 0:05:54.600 --> 0:06:00.640 So at WWDC we saw some really interesting developments with 0:06:00.800 --> 0:06:05.400 iOS and and the ability to you know, there to 0:06:05.640 --> 0:06:09.320 to support people with their physical health but also with 0:06:09.440 --> 0:06:12.359 their mental health. Right and and so we're we're seeing 0:06:12.760 --> 0:06:18.280 Apple expanding significantly into different areas. So it's yeah, it's 0:06:18.279 --> 0:06:21.800 it's about our behavior, our health, our mental health or 0:06:21.880 --> 0:06:25.280 physical health. That will I think, you know, as part 0:06:25.320 --> 0:06:28.240 of our everyday life and we need to embrace it 0:06:28.320 --> 0:06:32.520 and we need to or we can use specifically the 0:06:32.839 --> 0:06:36.040 Apple devices to support us in our journey for health. 0:06:36.680 --> 0:06:39.040 I can confirm that Tim Cook is now speaking on 0:06:39.160 --> 0:06:41.280 stage and he said that he's going to be talking 0:06:41.320 --> 0:06:45.080 about Apple Watch and iPhone not really surprising. One thing 0:06:45.160 --> 0:06:48.560 that's going to impact consumers everywhere is the move to USBC. 0:06:49.440 --> 0:06:52.640 It's a European Union mandate deadline end of twenty twenty four. 0:06:52.960 --> 0:06:55.600 What effect will the hat for Apple switching to USBC. 0:06:56.920 --> 0:06:57.840 It has a big. 0:06:57.800 --> 0:07:03.400 Effect on Apple because they obviously had to make technical 0:07:03.480 --> 0:07:07.120 and physical changes to the design and to you know, 0:07:07.560 --> 0:07:11.280 basically to the entire roadmap of devices that will be coming. 0:07:11.600 --> 0:07:14.640 And there will be more on top of that will 0:07:14.680 --> 0:07:19.160 be made or changes will be made because the use 0:07:19.200 --> 0:07:23.040 also looking for better repair ability of devices, so on 0:07:23.160 --> 0:07:27.360 Apple has to invest in new designs to make those 0:07:27.640 --> 0:07:31.880 devices more repair able and also make mix spare parts available, 0:07:32.000 --> 0:07:35.560 make it affordable available to users so you can do 0:07:35.680 --> 0:07:38.160 your do your own repair if you want these kind 0:07:38.200 --> 0:07:41.640 of things. And but that impacts Apple and the entire 0:07:41.680 --> 0:07:43.600 industry really Tim Cook is. 0:07:43.640 --> 0:07:47.440 Using these early stages to talk about WWDC Dune, the 0:07:47.640 --> 0:07:49.800 M two chip Ultra chip that went into the fifteen 0:07:49.840 --> 0:07:53.040 inch MacBook Air, Mac Studio Mac Pro, basically saying the 0:07:53.120 --> 0:07:56.360 feedback in response has been fantastic. We will see if 0:07:56.400 --> 0:07:58.840 the feedback or response is as good for this next 0:07:58.960 --> 0:08:00.200 generation of. 0:08:01.720 --> 0:08:03.320 iPhone, which is what we will. 0:08:03.640 --> 0:08:06.520 Focus on most net Zimmermum Gartner. And it's so good 0:08:06.520 --> 0:08:09.440 to have you here in real time during this Apple 0:08:09.480 --> 0:08:10.240 Wonderlust event. 0:08:10.320 --> 0:08:11.600 Caroline back to you in New York. 0:08:11.880 --> 0:08:14.480 I know, so great to have the on the feeling 0:08:14.640 --> 0:08:17.160 sense of this moment. And actually we're hearing from Tim 0:08:17.200 --> 0:08:19.440 Cook as well, saying, look, Apple is still on track 0:08:19.800 --> 0:08:22.520 to ship its Vision Pro in early twenty twenty four. 0:08:23.120 --> 0:08:26.240 Now we are still anticipating the announcements regarding the Watch, 0:08:26.400 --> 0:08:28.200 the AirPods, the new ways in which are going to 0:08:28.200 --> 0:08:30.560 be charging them through the USB, and indeed what we're 0:08:30.600 --> 0:08:32.720 waiting on the iPhone fifteen range. But let's go back 0:08:32.720 --> 0:08:36.200 to Tom Giles, of course, and Tom, this is about 0:08:36.640 --> 0:08:40.040 consumer or, but it's also about investor reality, and at 0:08:40.080 --> 0:08:42.280 this moment they've got plenty of headwinds. We're worried about 0:08:42.360 --> 0:08:45.360 Chinese consumer, we're worried about supply chain as well. How 0:08:45.440 --> 0:08:47.559 do you think they managed to tackle or offset that 0:08:47.720 --> 0:08:48.720 narrative at this moment. 0:08:49.760 --> 0:08:53.000 Yeah, and don't forget they've also got Huawei in the mix, 0:08:53.120 --> 0:08:56.000 Juahwei out with a new phone with a new operating 0:08:56.160 --> 0:09:01.160 system and gathering a lot of momentum behind. So there's 0:09:01.200 --> 0:09:04.520 a lot that they have to do here today to 0:09:04.720 --> 0:09:07.240 prove that this is a really special upgrade. As we 0:09:07.320 --> 0:09:11.560 were talking about earlier, this isn't your average instance where 0:09:11.880 --> 0:09:14.760 they're adding a few things. They're iterating around the edges. 0:09:15.040 --> 0:09:18.040 There are some substantial changes. If you talk to Mark German, 0:09:18.120 --> 0:09:21.520 he will tell you that this is a major set 0:09:21.600 --> 0:09:24.360 of upgrades, and that's what Apple is doing to really 0:09:24.480 --> 0:09:29.400 take the attention off the competitive threat, the pressure from 0:09:29.480 --> 0:09:32.959 the Chinese government on using the iPhone in that country, 0:09:33.480 --> 0:09:34.400 the pressure from. 0:09:34.320 --> 0:09:35.920 Huawei, all of it. 0:09:36.559 --> 0:09:39.400 This is Tim Cook's moment to take your attention off 0:09:39.440 --> 0:09:42.080 of that and show once again that we're adding really 0:09:42.160 --> 0:09:45.839 special features to the iPhone. The faster chip again, this 0:09:46.040 --> 0:09:49.960 telephoto lens with the camera that's letting you take these 0:09:50.160 --> 0:09:52.800 up close, these up close photos. 0:09:53.120 --> 0:09:55.920 With the iPhone, things you can't do with other devices. 0:09:56.320 --> 0:09:59.120 This is his moment to remind people we're doing things 0:09:59.160 --> 0:10:02.120 that are really special with this camera, and it's. 0:10:02.040 --> 0:10:05.800 Really important because it makes up half of the company's revenue. 0:10:06.040 --> 0:10:09.160 And to be fair like, analysts still seem convinced by 0:10:09.280 --> 0:10:10.960 all of that. At the moment, Tom I'm looking at 0:10:11.000 --> 0:10:13.480 thirty five by ratings. That's two thirds of all the 0:10:13.520 --> 0:10:15.840 ans out there rate this stock a buy. And in fact, 0:10:15.840 --> 0:10:18.679 there's still about fifteen percent upside potential if you're looking 0:10:18.720 --> 0:10:21.360 at a price target consensus of two hundred and four. 0:10:21.880 --> 0:10:23.959 But we have had this sort of knock. 0:10:23.840 --> 0:10:26.480 To the overall market capitalization of Apple over the last 0:10:26.520 --> 0:10:30.240 few training days. And ultimately, how important is the fact 0:10:30.280 --> 0:10:32.080 that they can nudge us up on a price point. 0:10:32.200 --> 0:10:33.960 How resilient does the US. 0:10:33.840 --> 0:10:35.160 Consumer need to be at this moment? 0:10:36.040 --> 0:10:36.880 Yeah, definitely. 0:10:37.040 --> 0:10:39.600 I mean Apple has to walk a really fine line 0:10:39.679 --> 0:10:42.040 right with the way they price this device. And that's 0:10:42.080 --> 0:10:44.959 why they've got multiple devices that are going to be 0:10:45.040 --> 0:10:48.079 getting upgrades today. And exactly where are they going to 0:10:48.120 --> 0:10:50.959 tinker with pricing? How much do they add those high 0:10:51.080 --> 0:10:52.120 end features. 0:10:51.760 --> 0:10:54.280 To the lower end devices? All of those things. 0:10:54.360 --> 0:10:56.480 This is the kind of thing that Apple spends a 0:10:56.600 --> 0:11:01.040 lot of time thinking about very strategically, and they do. 0:11:01.280 --> 0:11:04.040 They tend to be very smart about it, not loading 0:11:04.120 --> 0:11:06.400 too much into the lower end devices so that they 0:11:06.440 --> 0:11:08.520 can still sell them at a little bit of a 0:11:08.559 --> 0:11:11.160 discount to the higher end devices. How do they keep 0:11:11.520 --> 0:11:13.559 those margins going in the right direction, and if you 0:11:13.600 --> 0:11:16.840 look at their gross margins, they're going in the right direction. 0:11:17.080 --> 0:11:20.600 So how does Apple do this, particularly at a time 0:11:20.720 --> 0:11:25.200 when you're seeing overall demand for smartphones globally dropping off. 0:11:25.440 --> 0:11:28.760 Q two was a really tough quarter, both for the 0:11:28.880 --> 0:11:34.360 iOS that's Apple and Android that's the Google operating system 0:11:34.440 --> 0:11:37.520 that's in so many global devices. But something that Apple 0:11:37.600 --> 0:11:40.360 did in the second quarter was they weathered the storm 0:11:40.960 --> 0:11:43.960 better than Android. And that's what Tim Cook really wants 0:11:44.000 --> 0:11:46.440 to see Apple continue to do going forward. 0:11:47.280 --> 0:11:50.040 Well, we'll have so much more from Tim Cook, from you, Tom, 0:11:50.120 --> 0:11:53.040 We thank you so much all regarding this big unveil 0:11:53.080 --> 0:11:55.280 where we understand that it is official. The S nine 0:11:55.640 --> 0:11:58.160 of the watch has arrived, and indeed it's got an 0:11:58.240 --> 0:12:00.120 S nine chips, so we're going to have some they 0:12:00.160 --> 0:12:03.480 call major performance improvements overall. We understand that the CEO, 0:12:03.600 --> 0:12:06.400 Jeff Williams is on the stage at the moment, introducing 0:12:06.440 --> 0:12:08.720 this next generation of the Apple Watch, and it's scouting 0:12:08.760 --> 0:12:12.560 an improved performance overall, including the new chip and calling 0:12:12.559 --> 0:12:15.439 it the most powerful Apple Watch chip to date. Now 0:12:15.559 --> 0:12:17.679 we're going to be talking so much about the intricacies 0:12:17.720 --> 0:12:19.559 of this announcement with Ray Wang. He's a CEO and 0:12:19.559 --> 0:12:22.880 principle analyst of Constellation Research. His take what is being 0:12:22.880 --> 0:12:25.800 announced at the Apple event is over in Kubertino. That's 0:12:25.840 --> 0:12:28.600 where r Ed Ludlow is too. This is Blue meg technology, 0:12:48.160 --> 0:12:48.520 all right. 0:12:48.679 --> 0:12:51.280 The latest headlines coming out of this Apple Wonderlust event 0:12:51.440 --> 0:12:54.480 center on the next generation Apple Watch, the S nine 0:12:54.920 --> 0:12:57.719 or nine series, with an updated piece of Silicon S 0:12:57.880 --> 0:13:02.000 nine chip, thirty percent more powerful GPU CARO. In terms 0:13:02.040 --> 0:13:04.559 of some of the things that this manifests itself with 0:13:04.880 --> 0:13:08.880 dictation twenty five percent more accurate, eighteen hours of battery life, 0:13:09.080 --> 0:13:11.400 two ways of looking at it. That's all day battery life, 0:13:11.400 --> 0:13:14.640 although Mark German posting in the Bloomberg Top Live blog 0:13:14.920 --> 0:13:18.160 that is basically the same as prior generations. Also, the 0:13:18.240 --> 0:13:21.040 ability to engage with Siri directly to the watch without 0:13:21.120 --> 0:13:23.040 latency in a more secure method. 0:13:23.120 --> 0:13:25.280 That's what they're leaning on with this latest watch. 0:13:25.480 --> 0:13:28.280 Yeah, more effective use and point. Also, integration with a 0:13:28.360 --> 0:13:30.720 home pod is an interesting one as well. But overall 0:13:31.040 --> 0:13:33.960 new gesture control being integrated, they've got to be pushing 0:13:34.400 --> 0:13:37.040 really the way in which they're standing out from a 0:13:37.120 --> 0:13:40.240 crowded space when it comes to connected devices, the way 0:13:40.280 --> 0:13:42.679 in which we measure our healthhead because well many have 0:13:42.760 --> 0:13:45.480 been getting into the rings the watches of other variations too. 0:13:47.559 --> 0:13:49.960 Yeah, something really cool they've just announced with this latest 0:13:50.000 --> 0:13:53.439 generation Watch series nine has gesture control, So with a 0:13:53.520 --> 0:13:57.760 one handed gesture you can engage with the watch called 0:13:57.880 --> 0:13:58.960 it's called double tap. 0:13:59.320 --> 0:14:00.960 So I don't know how needle. 0:14:00.760 --> 0:14:03.040 Moving that is, right, the ability to waive at one's 0:14:03.080 --> 0:14:05.120 wrists and watch, but we will find out because there 0:14:05.200 --> 0:14:07.839 is somebody who definitely has a stronger perspective on this 0:14:07.960 --> 0:14:11.679 than Ui, and that is Ray Wang, Consolation CEO and 0:14:11.760 --> 0:14:12.760 principal analysts. 0:14:13.080 --> 0:14:14.479 Good to see you here in Cupatino. 0:14:14.760 --> 0:14:17.480 Based on what I've just reported for you on the 0:14:17.520 --> 0:14:19.680 Apple Watch Series nine, what do you make of that? 0:14:19.760 --> 0:14:21.640 As quick reaction, Yeah, welcome to the hometown. 0:14:21.680 --> 0:14:23.880 Like corup Patino, I think the really important thing that's 0:14:23.920 --> 0:14:26.920 going on here is the important piece that they're going 0:14:26.960 --> 0:14:29.120 from silicon to chip, and they're using their silicon to 0:14:29.280 --> 0:14:31.360 manage the batter life, using the silicon to handle the 0:14:31.440 --> 0:14:34.440 AI capabilities, and all those are really important, especially when 0:14:34.440 --> 0:14:36.720 you think about what Apple's known for. They have full 0:14:36.840 --> 0:14:39.840 control of their ecosystem and that starts with the silicon, 0:14:39.920 --> 0:14:42.240 and so they're showcasing that on the watch, and of 0:14:42.320 --> 0:14:43.760 course I think we're all waiting to see if there 0:14:43.760 --> 0:14:46.200 are other things that are going to be monitored, right, 0:14:46.280 --> 0:14:48.600 other health indicators that I think would drive other people 0:14:48.680 --> 0:14:50.400 to go to the Ultra and of course to the 0:14:50.480 --> 0:14:51.240 Series nine watch. 0:14:51.440 --> 0:14:53.680 Yeah, the expectation is that we would have two size 0:14:53.760 --> 0:14:56.440 variants of Series nine, one new variant of the Ultra. 0:14:57.040 --> 0:15:00.680 These are the early exchanges of this event. Apple Wonderlus 0:15:00.760 --> 0:15:03.200 is underway behind us in the Steve Jobs Theater, and 0:15:03.320 --> 0:15:06.480 you're right, we're waiting for four variants of the iPhone fifteen. 0:15:07.160 --> 0:15:10.760 How important is it that the hardware upgrades on the 0:15:10.840 --> 0:15:14.240 pro side are substantive to drive an upgrade cycle. 0:15:14.560 --> 0:15:16.320 Well, when we look at the entire upgrade cycle, we're 0:15:16.320 --> 0:15:19.000 talking about a billion iPhones that need to get five 0:15:19.120 --> 0:15:21.120 G right, and it's been happening over the next three years, 0:15:21.720 --> 0:15:23.960 and so as we're moving those in that supercycle. The 0:15:24.000 --> 0:15:27.320 big piece is really is a tolefootal lens potentially enough 0:15:27.400 --> 0:15:29.520 to get you there. The USBC got to do it 0:15:29.560 --> 0:15:32.600 because there's a regulatory requirement. Is it also going to 0:15:32.640 --> 0:15:34.560 be something around? Is it a battery life? 0:15:34.640 --> 0:15:35.360 Is this a feature? 0:15:35.520 --> 0:15:37.440 Is it a service that's going to take people to 0:15:37.520 --> 0:15:39.920 that next level of using the iPhone? But the chips 0:15:39.960 --> 0:15:42.480 make a big difference. The battery life makes a big difference, 0:15:42.640 --> 0:15:46.640 and potentially a forty eight megapixel camera may make that difference. 0:15:46.880 --> 0:15:48.120 I want to go back to the watch for just 0:15:48.160 --> 0:15:51.360 a second. Some other information. Is the series nine, let's 0:15:51.400 --> 0:15:55.440 call it the base model has double the brightness two 0:15:55.520 --> 0:15:58.440 thousand nits. That goes back to the last generation of Ultra. 0:15:59.160 --> 0:16:01.000 What is the strategy do you see there from Apple? 0:16:01.040 --> 0:16:04.000 They're basically taking last year's tech and putting it into 0:16:04.040 --> 0:16:05.200 this year's base models. 0:16:05.600 --> 0:16:06.440 Yeah, we're seeing things. 0:16:06.480 --> 0:16:08.560 If you want the Pro or the Ultra, you want 0:16:08.600 --> 0:16:10.520 the top level, you'll pay a little bit more for 0:16:10.600 --> 0:16:12.080 the new chip, and then you're going to see that 0:16:12.160 --> 0:16:15.080 gradation come into different markets. Let's take India for example, 0:16:15.160 --> 0:16:17.320 right the big talk about India. You might have different 0:16:17.360 --> 0:16:20.520 price points given where the demographics and the socioeconomics are, 0:16:20.960 --> 0:16:23.000 you'll have a different price point in the UK, of course, 0:16:23.080 --> 0:16:24.400 and you have a different price point if you're in 0:16:24.400 --> 0:16:24.920 the Middle East. 0:16:25.120 --> 0:16:25.240 Right. 0:16:25.320 --> 0:16:28.320 Remember, Apple is at the heart a luxury brand, and 0:16:28.400 --> 0:16:31.320 because it's a luxury brand, that's what's driving that capability. 0:16:31.520 --> 0:16:34.720 Right now, onstage Apple, we're talking about their environmental goals 0:16:34.800 --> 0:16:37.760 and the progress they've made and sustainability and materials. 0:16:38.240 --> 0:16:40.040 Is that an important factor for you? 0:16:40.560 --> 0:16:41.320 It's important for. 0:16:41.400 --> 0:16:43.720 Me, especially when we think about circular economy and we 0:16:43.800 --> 0:16:46.280 think about how much energy is required to create a device, 0:16:46.440 --> 0:16:49.000 how you bring that back into it. Apple's been a leader, 0:16:49.160 --> 0:16:51.960 especially in sustainability and some of those ESJ goles, and 0:16:52.040 --> 0:16:54.320 it goes from not not just you know, the battery, 0:16:54.440 --> 0:16:57.160 but it's also the materials and the recycling process. I've 0:16:57.240 --> 0:16:59.000 probably turned in and maybe you as well turned in 0:16:59.080 --> 0:17:00.200 a couple of phones in the fact. 0:17:00.400 --> 0:17:00.760 To do that. 0:17:01.000 --> 0:17:04.480 So Okay, forget what we've reported and what we think 0:17:04.680 --> 0:17:07.200 is coming. What do you want to see in these 0:17:07.280 --> 0:17:09.600 higher end iPhone fifteen Pro and promacs. 0:17:09.880 --> 0:17:12.360 Yeah, I think people are looking for better features, They're 0:17:12.359 --> 0:17:14.800 looking for experiences. For example, the ability to tie these 0:17:14.840 --> 0:17:18.159 to more devices. They're looking for the eventual integration between 0:17:18.280 --> 0:17:21.960 mac os iOS and watch os and then of course 0:17:22.119 --> 0:17:23.680 you know they're trying to figure out, hey, maybe there's 0:17:23.680 --> 0:17:25.840 a sneak peek into vision Pro and what's going to 0:17:25.920 --> 0:17:28.480 take us into Vision Pro as the replacement for the 0:17:28.560 --> 0:17:33.640 Mac Like that integration has always been an Apple fans dream, 0:17:33.760 --> 0:17:35.359 right to be able to bring all those things together. 0:17:35.920 --> 0:17:39.240 Ray Wang, Constellation Research CEO and principle analyst, joining us 0:17:39.280 --> 0:17:41.600 in real time Caroline here in Kubatino. 0:17:41.720 --> 0:17:43.600 The Apple event is underway and. 0:17:43.720 --> 0:17:47.040 Is underway, and there's a focus on the environment, on sustainability, 0:17:47.119 --> 0:17:49.080 and we understand the latest headline is it's going to 0:17:49.119 --> 0:17:52.520 be phasing out its lever from its iPhone cases and 0:17:52.640 --> 0:17:55.280 many had taken that queue from well moves over at 0:17:55.320 --> 0:17:57.600 ames of Late. Coming up, we're going to have so 0:17:57.760 --> 0:17:59.840 much more coming for you the analysis from Apple. Thomas 0:18:00.119 --> 0:18:02.400 and he's vice president in principal analyst over at Forester 0:18:02.480 --> 0:18:04.680 Research is going to be joining the show live from 0:18:04.720 --> 0:18:05.880 Cupertino from New York. 0:18:05.920 --> 0:18:06.800 We've got it all covered. 0:18:06.880 --> 0:18:24.280 This is blue bag technology, and so we have the 0:18:24.359 --> 0:18:27.240 news coming from the Apple event in Coupatino. Thick and fast. 0:18:27.280 --> 0:18:30.639 Of course, I Watch Series nine going to be more powerful, swifter, 0:18:30.760 --> 0:18:33.920 We're going to be having the ability to well hand gesture, 0:18:34.080 --> 0:18:35.800 to be able to waveh fingers at it. Double tap 0:18:35.920 --> 0:18:38.880 is what it's called intraoperability with your home pod as well. 0:18:39.280 --> 0:18:42.600 Really this is about being faster and more powerful. We're 0:18:42.640 --> 0:18:46.200 also seeing some more nuanced announcements around perhaps the wind 0:18:46.280 --> 0:18:48.400 down of any leather at the moment when it comes 0:18:48.440 --> 0:18:51.000 to being used in iPhone cases, So a push on sustainability. 0:18:51.040 --> 0:18:53.160 But we all await the iPhone fifteen and the array 0:18:53.400 --> 0:18:55.600 that we get there Forester Research Vice president of principal 0:18:55.600 --> 0:18:58.680 anistad analyst Thomas Fusson is with us and Thomas, you 0:18:58.760 --> 0:19:00.920 were expecting perhaps an ultra version of the Watch. What 0:19:01.160 --> 0:19:03.320 more do you anticipate from the phone lineup and is 0:19:03.359 --> 0:19:04.320 it going to be enough? 0:19:06.160 --> 0:19:10.639 Well, I'd expect significant incremental innovation and improvement on the 0:19:10.760 --> 0:19:14.679 lineup of the especially on the iPhone and the iPhone pros. 0:19:16.080 --> 0:19:19.520 We've heard right now about some of the sustainability efforts. 0:19:19.880 --> 0:19:22.800 I think what would be very disruptive is to hear 0:19:22.880 --> 0:19:25.879 more of a device as a service offering where you 0:19:26.080 --> 0:19:32.359 have a bundle of rware content and some circularity services recurability. 0:19:33.560 --> 0:19:36.080 That would be a great step. I'm not sure we're 0:19:36.119 --> 0:19:40.000 going to hear that tonight and forratunity, so is it 0:19:40.080 --> 0:19:43.200 going to be enough? I think Apple will maintain its 0:19:43.359 --> 0:19:47.240 leadership when it comes to smartphone innovation. The bigger question, 0:19:47.440 --> 0:19:50.200 I think, given the economy context and we don't know yet, 0:19:50.840 --> 0:19:51.680 is going to be around. 0:19:51.520 --> 0:19:56.160 Pricing precisely, and many anticipating that prices will rise, We're 0:19:56.160 --> 0:19:58.960 going to boost the average selling price. We're still focusing 0:19:59.080 --> 0:20:02.480 at the moment in ten on the environmental impact. Lisa Jackson, 0:20:02.520 --> 0:20:05.560 the EPA chief, saying about how by twenty thirty, Apple 0:20:05.600 --> 0:20:07.639 devices will be net zero in impact. That was a 0:20:07.920 --> 0:20:11.440 Tim Cook ad as well. I'm interested in really the 0:20:11.560 --> 0:20:14.639 Huawei and Chinese perspective here as well, because there's been 0:20:14.640 --> 0:20:16.840 a lot of headwinds on Apple stock of late. Do 0:20:16.920 --> 0:20:19.600 you think that the innovation is enough for Apple to 0:20:19.720 --> 0:20:22.160 fight off the homegrown innovation of a Huawei. 0:20:24.160 --> 0:20:25.919 Well, I think so. 0:20:26.000 --> 0:20:29.040 From a pure innovation standpoint. I think the bigger question 0:20:29.320 --> 0:20:32.800 is about the geopolitical context in China and the fact 0:20:32.840 --> 0:20:36.320 that the iPhone has been banned to potentially dozens of 0:20:36.400 --> 0:20:41.480 millions of employees working in public, state employees or for 0:20:41.560 --> 0:20:44.880