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Speaker 1: You're listening to take the stof with Kathleen on Bloomberg Radio. Apple.
Speaker 1: The shares of Apple so far this year have increased
Speaker 1: just two point seven percent. Right now, the shares of
Speaker 1: Apple are hired by sixty one cents, a hundred and
Speaker 1: eight dollars and nine cents. Well, what could drive the
Speaker 1: share price of Apple higher? Well, how about an even
Speaker 1: more amazing new iPhone. Here to tell us more, John Butler,
Speaker 1: senior Telecom Services and Equipment analysts for Bloomberg Intelligence. You
Speaker 1: can follow John on Twitter at John Underscore Butler twenty
Speaker 1: five because he's only years old. And just to mention
Speaker 1: that Blumeric Intelligence of course providing real time research, unique
Speaker 1: information and context on a variety of industries as well
Speaker 1: as markets and other government factors that affect businesses. Our
Speaker 1: terminal customers can access this function at b I Go
Speaker 1: John Butler, Go app Bowl And a new iPhone. Yeah,
Speaker 1: so we do. We have a new iPhone coming hopefully
Speaker 1: in September. They never announced an official day, but there
Speaker 1: are September Company when it comes to uh to the
Speaker 1: iPhone launches. And what's interesting this year PIM is the
Speaker 1: iPhone seven is going to be another soft upgrade. And
Speaker 1: what I mean by that is Apple has a long
Speaker 1: history of every two years doing a major forklift upgrade
Speaker 1: on the hardware and then on the off years doing
Speaker 1: a feature upgrade. We got a feature upgrade last year
Speaker 1: with the iPhone six ass and so everyone's hearing that
Speaker 1: the iPhone seven upgrade is going to be a little soft.
Speaker 1: It's not going to be that major forklift upgrade. But
Speaker 1: if you run down some of the features, they're interesting
Speaker 1: to me. You know, they're going to come out with
Speaker 1: a dual camera system, which is going to improve low
Speaker 1: light shots and hopefully provide for some three D shooting
Speaker 1: on video. They're taking away the headphone jack were We're
Speaker 1: going to get to that in just a second, right,
Speaker 1: because I'm gonna press you on this one, all right.
Speaker 1: So it's got a dual camera, and then it's changing
Speaker 1: the home but the home but the home button is
Speaker 1: now going to be tactic. In other words, it's when
Speaker 1: you hit it, it's gonna vibrate when you hit it.
Speaker 1: Today it actually has to click. You have to depress it,
Speaker 1: and there's it hasn't been problematic, but it's prone to breaking.
Speaker 1: And so you know, there are kids where you can
Speaker 1: fix your home button by taking apart your I phone
Speaker 1: and putting in a new part. But have you ever
Speaker 1: noticed that when you do that, there are these other
Speaker 1: little parts that remain on the table after you back together,
Speaker 1: and to happen, it happens with all of us. I
Speaker 1: take it to the genius bar. I think that's not
Speaker 1: not a bad idea. Okay, so our Apple new phones.
Speaker 1: Let's let's just let's continue down the path here, because
Speaker 1: from the business angle, this may or may not be great,
Speaker 1: depends how the market receives it. But you mentioned something interesting,
Speaker 1: which is that there are many people who will now
Speaker 1: upgrade not to this new seven, but they will be
Speaker 1: upgrading to the six. And there's an incentive, a financial
Speaker 1: incentive for that to happen to right, So we were
Speaker 1: we were talking about that before the spot um and
Speaker 1: I think we're gonna see it's gonna be a very
Speaker 1: interesting year for that reason. The iPhone success was a
Speaker 1: very good device. It didn't get a lot of takers
Speaker 1: because people are on these new financing plans. We're now
Speaker 1: coming to a period where the advent of those plans
Speaker 1: was two years ago. So you've got people with your
Speaker 1: two year old phones who are off the financing plans,
Speaker 1: are coming off the plans, so there are suddenly paying
Speaker 1: nothing for their device and they can re up their
Speaker 1: financing plan and get a new device. Do they want
Speaker 1: the headphone jack? Do they not want the headphone jack?
Speaker 1: For a lot of people, I think they're perfectly satisfied
Speaker 1: with the older model. Apple will typically price and older
Speaker 1: generation phone if they keep it on the market down
Speaker 1: about a hundred dollars, so on a relative basis, I
Speaker 1: anticipate it's going to be cheaper than the iPhone seven,
Speaker 1: So we may get one of those years again because
Speaker 1: of this soft upgrade of the seven itself. It might
Speaker 1: be a mixed bag for them. You may get a
Speaker 1: lot of people like myself who opt for the older
Speaker 1: generation phone, maybe a hundred You get a hundred dollars
Speaker 1: off and I get to keep my old accessories. If
Speaker 1: they do away with that headphone jack. Um, what's up
Speaker 1: with that? What what they're getting? The note that I
Speaker 1: read says that they are that they might know this
Speaker 1: all speculations, but if they got rid of the standard
Speaker 1: headphone jack, then uh, it would be to add to
Speaker 1: use that space for battery, for battery and speaking the
Speaker 1: speaker right in the phone. How are you going to
Speaker 1: connect your headphones? Is just gonna all be bluetooth? Bluetooth. Um.
Speaker 1: There's a rumor also that you'll be able to connect
Speaker 1: through a FireWire port in the bottom much you know,
Speaker 1: with the current connector that you have now on the ice.
Speaker 1: For everybody that has all those old FireWire cords and cables,
Speaker 1: don't necessarily throw them away. You might be able to reuse.
Speaker 1: You might be able to reuse them, but you don't
Speaker 1: have headphones with that connector. So I think the iPhone
Speaker 1: seven is going to require people to go out and
Speaker 1: buy new headphones, which, as we discussed, could benefit Beats
Speaker 1: which is now on by Apple. Uh they make bluetooth headphones.
Speaker 1: Um again, if if the wire line headphones, two cameras,
Speaker 1: uh speak, speakers, speakers, better processor, hopefully a better battery.
Speaker 1: I haven't seen a lot of talk about that, but
Speaker 1: the bigger iPhone, the iPhone Success Plus and the six
Speaker 1: plus have had battery life issues. So you know, I
Speaker 1: see a lot of people with those phones carrying around
Speaker 1: those external battery ports that you can plug into and
Speaker 1: give a little extra juice at the end of the day,
Speaker 1: and they have been to be using though the actual
Speaker 1: connector that is used in Android. Yeah, alright, I'm glad
Speaker 1: you're able to keep up with it all. John, Thank
Speaker 1: you very much. John, Butler. He is our senior Telecom
Speaker 1: Services and Equipment analyst for us here at Bloomberg Intelligence.
Speaker 1: You can follow John on Twitter at John underscore Butler.
Speaker 1: He's been telling us all about Apple and the potential
Speaker 1: of its new phones. This is taking stock. I'm pim Fox.
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