WEBVTT - Bloomberg's Butler on Potential of New Apple iPhones (Audio)

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<v Speaker 1>twenty seven. I'm Charlie Pallett, and that's a Bloomberg Business flash.

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<v Speaker 1>You're listening to take the stof with Kathleen on Bloomberg Radio. Apple.

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<v Speaker 1>The shares of Apple so far this year have increased

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<v Speaker 1>just two point seven percent. Right now, the shares of

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<v Speaker 1>Apple are hired by sixty one cents, a hundred and

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<v Speaker 1>eight dollars and nine cents. Well, what could drive the

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<v Speaker 1>share price of Apple higher? Well, how about an even

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<v Speaker 1>more amazing new iPhone. Here to tell us more, John Butler,

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<v Speaker 1>senior Telecom Services and Equipment analysts for Bloomberg Intelligence. You

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<v Speaker 1>can follow John on Twitter at John Underscore Butler twenty

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<v Speaker 1>five because he's only years old. And just to mention

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<v Speaker 1>that Blumeric Intelligence of course providing real time research, unique

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<v Speaker 1>as markets and other government factors that affect businesses. Our

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<v Speaker 1>terminal customers can access this function at b I Go

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<v Speaker 1>John Butler, Go app Bowl And a new iPhone. Yeah,

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<v Speaker 1>so we do. We have a new iPhone coming hopefully

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<v Speaker 1>in September. They never announced an official day, but there

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<v Speaker 1>are September Company when it comes to uh to the

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<v Speaker 1>iPhone launches. And what's interesting this year PIM is the

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<v Speaker 1>iPhone seven is going to be another soft upgrade. And

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<v Speaker 1>what I mean by that is Apple has a long

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<v Speaker 1>history of every two years doing a major forklift upgrade

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<v Speaker 1>on the hardware and then on the off years doing

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<v Speaker 1>a feature upgrade. We got a feature upgrade last year

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<v Speaker 1>with the iPhone six ass and so everyone's hearing that

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<v Speaker 1>the iPhone seven upgrade is going to be a little soft.

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<v Speaker 1>It's not going to be that major forklift upgrade. But

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<v Speaker 1>if you run down some of the features, they're interesting

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<v Speaker 1>to me. You know, they're going to come out with

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<v Speaker 1>a dual camera system, which is going to improve low

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<v Speaker 1>light shots and hopefully provide for some three D shooting

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<v Speaker 1>on video. They're taking away the headphone jack were We're

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<v Speaker 1>going to get to that in just a second, right,

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<v Speaker 1>because I'm gonna press you on this one, all right.

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<v Speaker 1>So it's got a dual camera, and then it's changing

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<v Speaker 1>the home but the home but the home button is

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<v Speaker 1>now going to be tactic. In other words, it's when

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<v Speaker 1>you hit it, it's gonna vibrate when you hit it.

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<v Speaker 1>Today it actually has to click. You have to depress it,

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<v Speaker 1>and there's it hasn't been problematic, but it's prone to breaking.

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<v Speaker 1>And so you know, there are kids where you can

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<v Speaker 1>fix your home button by taking apart your I phone

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<v Speaker 1>and putting in a new part. But have you ever

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<v Speaker 1>noticed that when you do that, there are these other

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<v Speaker 1>little parts that remain on the table after you back together,

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<v Speaker 1>and to happen, it happens with all of us. I

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<v Speaker 1>take it to the genius bar. I think that's not

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<v Speaker 1>not a bad idea. Okay, so our Apple new phones.

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<v Speaker 1>Let's let's just let's continue down the path here, because

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<v Speaker 1>from the business angle, this may or may not be great,

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<v Speaker 1>depends how the market receives it. But you mentioned something interesting,

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<v Speaker 1>which is that there are many people who will now

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<v Speaker 1>upgrade not to this new seven, but they will be

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<v Speaker 1>upgrading to the six. And there's an incentive, a financial

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<v Speaker 1>incentive for that to happen to right, So we were

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<v Speaker 1>we were talking about that before the spot um and

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<v Speaker 1>I think we're gonna see it's gonna be a very

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<v Speaker 1>interesting year for that reason. The iPhone success was a

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<v Speaker 1>very good device. It didn't get a lot of takers

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<v Speaker 1>because people are on these new financing plans. We're now

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<v Speaker 1>coming to a period where the advent of those plans

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<v Speaker 1>was two years ago. So you've got people with your

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<v Speaker 1>two year old phones who are off the financing plans,

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<v Speaker 1>are coming off the plans, so there are suddenly paying

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<v Speaker 1>nothing for their device and they can re up their

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<v Speaker 1>financing plan and get a new device. Do they want

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<v Speaker 1>the headphone jack? Do they not want the headphone jack?

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<v Speaker 1>For a lot of people, I think they're perfectly satisfied

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<v Speaker 1>with the older model. Apple will typically price and older

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<v Speaker 1>generation phone if they keep it on the market down

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<v Speaker 1>about a hundred dollars, so on a relative basis, I

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<v Speaker 1>anticipate it's going to be cheaper than the iPhone seven,

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<v Speaker 1>So we may get one of those years again because

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<v Speaker 1>of this soft upgrade of the seven itself. It might

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<v Speaker 1>be a mixed bag for them. You may get a

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<v Speaker 1>lot of people like myself who opt for the older

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<v Speaker 1>generation phone, maybe a hundred You get a hundred dollars

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<v Speaker 1>off and I get to keep my old accessories. If

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<v Speaker 1>they do away with that headphone jack. Um, what's up

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<v Speaker 1>with that? What what they're getting? The note that I

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<v Speaker 1>read says that they are that they might know this

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<v Speaker 1>all speculations, but if they got rid of the standard

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<v Speaker 1>headphone jack, then uh, it would be to add to

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<v Speaker 1>use that space for battery, for battery and speaking the

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<v Speaker 1>speaker right in the phone. How are you going to

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<v Speaker 1>connect your headphones? Is just gonna all be bluetooth? Bluetooth. Um.

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<v Speaker 1>There's a rumor also that you'll be able to connect

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<v Speaker 1>through a FireWire port in the bottom much you know,

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<v Speaker 1>with the current connector that you have now on the ice.

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<v Speaker 1>For everybody that has all those old FireWire cords and cables,

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<v Speaker 1>don't necessarily throw them away. You might be able to reuse.

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<v Speaker 1>You might be able to reuse them, but you don't

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<v Speaker 1>have headphones with that connector. So I think the iPhone

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<v Speaker 1>seven is going to require people to go out and

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<v Speaker 1>buy new headphones, which, as we discussed, could benefit Beats

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<v Speaker 1>which is now on by Apple. Uh they make bluetooth headphones.

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<v Speaker 1>Um again, if if the wire line headphones, two cameras,

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<v Speaker 1>uh speak, speakers, speakers, better processor, hopefully a better battery.

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<v Speaker 1>I haven't seen a lot of talk about that, but

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<v Speaker 1>the bigger iPhone, the iPhone Success Plus and the six

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<v Speaker 1>plus have had battery life issues. So you know, I

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<v Speaker 1>see a lot of people with those phones carrying around

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<v Speaker 1>those external battery ports that you can plug into and

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<v Speaker 1>give a little extra juice at the end of the day,

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<v Speaker 1>and they have been to be using though the actual

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<v Speaker 1>connector that is used in Android. Yeah, alright, I'm glad

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<v Speaker 1>you're able to keep up with it all. John, Thank

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<v Speaker 1>you very much. John, Butler. He is our senior Telecom

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<v Speaker 1>Services and Equipment analyst for us here at Bloomberg Intelligence.

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<v Speaker 1>You can follow John on Twitter at John underscore Butler.

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<v Speaker 1>He's been telling us all about Apple and the potential

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<v Speaker 1>of its new phones. This is taking stock. I'm pim Fox.

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<v Speaker 1>This is Bloomberg coming up on taking stock. We'll take

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<v Speaker 1>stock of Walmart paying three point three billion dollars for

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<v Speaker 1>Jet dot Com. Why are they doing it? Will it

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<v Speaker 1>be successful? That's next