00:00:00 ◼ ► I feel like you've been on the show many times but it's like a long stretch now [<a href="https://overcast.fm/+BtuzXUdtY/0">TS</a>]
00:00:03 ◼ ► remember not the sort of with the with the new gig and still was getting [<a href="https://overcast.fm/+BtuzXUdtY/3">TS</a>]
00:00:08 ◼ ► getting and giving the schedule in order but I feel pretty good about it now but [<a href="https://overcast.fm/+BtuzXUdtY/8">TS</a>]
00:00:13 ◼ ► unfortunately I have to do sort of last minute things like a of an opening today [<a href="https://overcast.fm/+BtuzXUdtY/13">TS</a>]
00:00:17 ◼ ► so we can do it it's it's settled then I mean it's weird you work now we're [<a href="https://overcast.fm/+BtuzXUdtY/17">TS</a>]
00:00:21 ◼ ► officially work for Google Ventures right yeah there was a holy shit [<a href="https://overcast.fm/+BtuzXUdtY/21">TS</a>]
00:00:27 ◼ ► announcement yes in a way I guess but it's not that weird where were you know [<a href="https://overcast.fm/+BtuzXUdtY/27">TS</a>]
00:00:36 ◼ ► pretty well sequestered away from from Google itself but I can go over there [<a href="https://overcast.fm/+BtuzXUdtY/36">TS</a>]
00:00:40 ◼ ► whenever I want to hang out which is sort of interesting but yeah i mean you [<a href="https://overcast.fm/+BtuzXUdtY/40">TS</a>]
00:00:47 ◼ ► know day today my job is pretty much the same as it has been for the past two [<a href="https://overcast.fm/+BtuzXUdtY/47">TS</a>]
00:00:51 ◼ ► years which is just sort of being around San Francisco and meeting up with her [<a href="https://overcast.fm/+BtuzXUdtY/51">TS</a>]
00:00:55 ◼ ► trainers here right in trying to scope out good ideas and CNN you know I need [<a href="https://overcast.fm/+BtuzXUdtY/55">TS</a>]
00:01:01 ◼ ► to go but still has that word Google and it it does which is both beneficial and [<a href="https://overcast.fm/+BtuzXUdtY/61">TS</a>]
00:01:10 ◼ ► you know it's it's it's detrimental but it's it can be a little bit of a [<a href="https://overcast.fm/+BtuzXUdtY/70">TS</a>]
00:01:17 ◼ ► discussion sometimes when you're talking with specially early-stage entrepreneurs [<a href="https://overcast.fm/+BtuzXUdtY/77">TS</a>]
00:01:20 ◼ ► who are worried that if they take you know if they take money from Google [<a href="https://overcast.fm/+BtuzXUdtY/80">TS</a>]
00:01:24 ◼ ► Ventures at me you know stop them from doing a day to deal with Facebook or [<a href="https://overcast.fm/+BtuzXUdtY/84">TS</a>]
00:01:29 ◼ ► something like that right that that's not the case of course you know we we [<a href="https://overcast.fm/+BtuzXUdtY/89">TS</a>]
00:01:34 ◼ ► invested a lot of things that are actually competitive with what Google [<a href="https://overcast.fm/+BtuzXUdtY/94">TS</a>]
00:01:36 ◼ ► itself is doing and you know that's our our mandate is really to go up there and [<a href="https://overcast.fm/+BtuzXUdtY/96">TS</a>]
00:01:41 ◼ ► find the best stuff regardless of what it is [<a href="https://overcast.fm/+BtuzXUdtY/101">TS</a>]
00:01:44 ◼ ► yeah that's a very googly mindset in a good way [<a href="https://overcast.fm/+BtuzXUdtY/104">TS</a>]
00:01:48 ◼ ► yeah yeah definitely so it's been good the sort of try everything and see what [<a href="https://overcast.fm/+BtuzXUdtY/108">TS</a>]
00:01:57 ◼ ► so you had a piece and and you know and again just like with your previous game [<a href="https://overcast.fm/+BtuzXUdtY/117">TS</a>]
00:02:05 ◼ ► you're still writing at TechCrunch still still raining Paris lemon but you had a [<a href="https://overcast.fm/+BtuzXUdtY/125">TS</a>]
00:02:09 ◼ ► great piece this week Jeff Bezos and Amazon yeah so right [<a href="https://overcast.fm/+BtuzXUdtY/129">TS</a>]
00:02:16 ◼ ► writing is also sort of an interesting thing for me now because again I just [<a href="https://overcast.fm/+BtuzXUdtY/136">TS</a>]
00:02:20 ◼ ► have to sort of do it when I have free time in my day which is hard to do it's [<a href="https://overcast.fm/+BtuzXUdtY/140">TS</a>]
00:02:25 ◼ ► a lot harder than I could have imagined it was going from being a full-time [<a href="https://overcast.fm/+BtuzXUdtY/145">TS</a>]
00:02:29 ◼ ► writer to sort of a part-time writer it's it's it wasn't as easy of a [<a href="https://overcast.fm/+BtuzXUdtY/149">TS</a>]
00:02:35 ◼ ► transition cause I used to be I was just one of those people who I never really [<a href="https://overcast.fm/+BtuzXUdtY/155">TS</a>]
00:02:38 ◼ ► got writer's block and i could just write about whatever sort of any topic [<a href="https://overcast.fm/+BtuzXUdtY/158">TS</a>]
00:02:42 ◼ ► just go on and on and on about it and it was really just sort of trying to rein [<a href="https://overcast.fm/+BtuzXUdtY/162">TS</a>]
00:02:46 ◼ ► in thoughts and make it a coherent piece but now when you're doing the day-to-day [<a href="https://overcast.fm/+BtuzXUdtY/166">TS</a>]
00:02:51 ◼ ► stuff of of going from meeting to meeting its right to think about you [<a href="https://overcast.fm/+BtuzXUdtY/171">TS</a>]
00:02:55 ◼ ► know the the future of these different on startups and then you try to go back [<a href="https://overcast.fm/+BtuzXUdtY/175">TS</a>]
00:02:59 ◼ ► in certain to write and think about big picture of things it's it's not as easy [<a href="https://overcast.fm/+BtuzXUdtY/179">TS</a>]
00:03:04 ◼ ► as it is a imagined it would be which is which is definitely something I've [<a href="https://overcast.fm/+BtuzXUdtY/184">TS</a>]
00:03:08 ◼ ► struggled with but when they're so when there's news like this happens to this [<a href="https://overcast.fm/+BtuzXUdtY/188">TS</a>]
00:03:12 ◼ ► you know this was a surprise to everyone Jeff Bezos buying the washington post it [<a href="https://overcast.fm/+BtuzXUdtY/192">TS</a>]
00:03:18 ◼ ► hits whatever time it was in a midday a few days couple days ago and it's [<a href="https://overcast.fm/+BtuzXUdtY/198">TS</a>]
00:03:25 ◼ ► something like that where I start to feel like you know my old self again [<a href="https://overcast.fm/+BtuzXUdtY/205">TS</a>]
00:03:28 ◼ ► because they just like so many thoughts about that and that's so interesting and [<a href="https://overcast.fm/+BtuzXUdtY/208">TS</a>]
00:03:31 ◼ ► fascinating and and so instead of kind of opening up you know WordPress or [<a href="https://overcast.fm/+BtuzXUdtY/211">TS</a>]
00:03:36 ◼ ► whatever and said I immediately now go to Twitter to start reading about it and [<a href="https://overcast.fm/+BtuzXUdtY/216">TS</a>]
00:03:40 ◼ ► then sort of the the back and forth their sort of gets me ideas as to what [<a href="https://overcast.fm/+BtuzXUdtY/220">TS</a>]
00:03:44 ◼ ► what I should write about and so for this particular topic it wasn't so much [<a href="https://overcast.fm/+BtuzXUdtY/224">TS</a>]
00:03:48 ◼ ► about Jeff Bezos barring washington post because i dont really know the backstory [<a href="https://overcast.fm/+BtuzXUdtY/228">TS</a>]
00:03:53 ◼ ► of that I don't know I don't actually know why he did that I think it's it's [<a href="https://overcast.fm/+BtuzXUdtY/233">TS</a>]
00:03:56 ◼ ► fascinating that it could be a disaster could be great I don't really know but I [<a href="https://overcast.fm/+BtuzXUdtY/236">TS</a>]
00:04:01 ◼ ► i realize that like so many people you know we can to starkly making the the [<a href="https://overcast.fm/+BtuzXUdtY/241">TS</a>]
00:04:05 ◼ ► references to Amazon's overall business model of course an abandoned by [<a href="https://overcast.fm/+BtuzXUdtY/245">TS</a>]
00:04:10 ◼ ► washington Post exhausted but the same idea where Jeff Bezos is a great honor [<a href="https://overcast.fm/+BtuzXUdtY/250">TS</a>]
00:04:14 ◼ ► because he doesn't care about profits and I even made that joke too and it's [<a href="https://overcast.fm/+BtuzXUdtY/254">TS</a>]
00:04:17 ◼ ► like but people like really get into that and so I thought that there would [<a href="https://overcast.fm/+BtuzXUdtY/257">TS</a>]
00:04:21 ◼ ► be a good in business to start writing about sort of my change in mentality [<a href="https://overcast.fm/+BtuzXUdtY/261">TS</a>]
00:04:25 ◼ ► about Amazon I guess over the past year [<a href="https://overcast.fm/+BtuzXUdtY/265">TS</a>]
00:04:28 ◼ ► yeah I'm right behind you really on that I think used in your piece I really [<a href="https://overcast.fm/+BtuzXUdtY/268">TS</a>]
00:04:34 ◼ ► liked it and it kind of clicked for me because it it's like I said I was behind [<a href="https://overcast.fm/+BtuzXUdtY/274">TS</a>]
00:04:39 ◼ ► you on this where I was sort of having the same thoughts but hadn't put them [<a href="https://overcast.fm/+BtuzXUdtY/279">TS</a>]
00:04:44 ◼ ► together and I thought your piece put it together in the same connected the same [<a href="https://overcast.fm/+BtuzXUdtY/284">TS</a>]
00:04:49 ◼ ► thoughts in my head that that it didn't float around yeah thank you I think I [<a href="https://overcast.fm/+BtuzXUdtY/289">TS</a>]
00:04:56 ◼ ► think we've all been under no I don't want to speak for everyone but for me in [<a href="https://overcast.fm/+BtuzXUdtY/296">TS</a>]
00:05:00 ◼ ► particular obviously a lot of us read a lot about a fuller have in the past and [<a href="https://overcast.fm/+BtuzXUdtY/300">TS</a>]
00:05:04 ◼ ► there's a way of thinking about Apple that is that is different than a lot of [<a href="https://overcast.fm/+BtuzXUdtY/304">TS</a>]
00:05:08 ◼ ► companies of course is as you know better than anyone but there's also a [<a href="https://overcast.fm/+BtuzXUdtY/308">TS</a>]
00:05:14 ◼ ► feeling there can be an issue with that because Apple in many ways is very [<a href="https://overcast.fm/+BtuzXUdtY/314">TS</a>]
00:05:19 ◼ ► straightforward when it comes to business right they they make they make [<a href="https://overcast.fm/+BtuzXUdtY/319">TS</a>]
00:05:23 ◼ ► products that they want to sell for money at a profit and that earns them a [<a href="https://overcast.fm/+BtuzXUdtY/323">TS</a>]
00:05:28 ◼ ► lot of money and that's great of course it's more nuanced and that they've lot [<a href="https://overcast.fm/+BtuzXUdtY/328">TS</a>]
00:05:31 ◼ ► of other businesses have iTunes and its etcetera etcetera but you know just [<a href="https://overcast.fm/+BtuzXUdtY/331">TS</a>]
00:05:35 ◼ ► looking at a high level picture it's pretty straightforward what Apple does [<a href="https://overcast.fm/+BtuzXUdtY/335">TS</a>]
00:05:38 ◼ ► and I think Amazon is not straightforward at all and that's why a [<a href="https://overcast.fm/+BtuzXUdtY/338">TS</a>]
00:05:43 ◼ ► lot of us were very confused as to like how is this company you know not only [<a href="https://overcast.fm/+BtuzXUdtY/343">TS</a>]
00:05:47 ◼ ► continuing to do well but to thrive certainly in the in the stock market and [<a href="https://overcast.fm/+BtuzXUdtY/347">TS</a>]
00:05:50 ◼ ► we can argue you know whether that's a meaningful metrics are not but you know [<a href="https://overcast.fm/+BtuzXUdtY/350">TS</a>]
00:05:55 ◼ ► it's it's a bit confusing when you look at it first [<a href="https://overcast.fm/+BtuzXUdtY/355">TS</a>]
00:05:57 ◼ ► yeah and I think I I've said this many times over the years that in a lot of [<a href="https://overcast.fm/+BtuzXUdtY/357">TS</a>]
00:06:01 ◼ ► ways especially as a business Apple is so simple even though they're they're [<a href="https://overcast.fm/+BtuzXUdtY/361">TS</a>]
00:06:07 ◼ ► literally the biggest company in the world or second exon [<a href="https://overcast.fm/+BtuzXUdtY/367">TS</a>]
00:06:11 ◼ ► never but you know certainly you know massive corporate entity by any measure [<a href="https://overcast.fm/+BtuzXUdtY/371">TS</a>]
00:06:17 ◼ ► but they're actually fundamentally simple as a business like you said they [<a href="https://overcast.fm/+BtuzXUdtY/377">TS</a>]
00:06:20 ◼ ► make products that people buy and do it for a profit you know set a price that [<a href="https://overcast.fm/+BtuzXUdtY/380">TS</a>]
00:06:27 ◼ ► people are willing to pay that significantly higher than the cost it [<a href="https://overcast.fm/+BtuzXUdtY/387">TS</a>]
00:06:30 ◼ ► takes to make the product and it it stands out they stand out in technology [<a href="https://overcast.fm/+BtuzXUdtY/390">TS</a>]
00:06:36 ◼ ► because there aren't a lot of other companies making computer type devices [<a href="https://overcast.fm/+BtuzXUdtY/396">TS</a>]
00:06:43 ◼ ► that that keep its so simple and that do it so successfully but in other [<a href="https://overcast.fm/+BtuzXUdtY/403">TS</a>]
00:06:48 ◼ ► businesses it you know it's as old as the way business is always have worked [<a href="https://overcast.fm/+BtuzXUdtY/408">TS</a>]
00:06:54 ◼ ► right especially with the luxury brands like you know that's that's the good [<a href="https://overcast.fm/+BtuzXUdtY/414">TS</a>]
00:06:58 ◼ ► analogy of you know like a luxury car maker luxury watchmaker they're selling [<a href="https://overcast.fm/+BtuzXUdtY/418">TS</a>]
00:07:03 ◼ ► their selling things more expensively than you can get another version of a [<a href="https://overcast.fm/+BtuzXUdtY/423">TS</a>]
00:07:10 ◼ ► similar product but they're doing it with quality and so people are willing [<a href="https://overcast.fm/+BtuzXUdtY/430">TS</a>]
00:07:14 ◼ ► to pay for quality right you know or like you know and and the luxury thing [<a href="https://overcast.fm/+BtuzXUdtY/434">TS</a>]
00:07:19 ◼ ► can be a little distracting because a lot of time to start thinking about you [<a href="https://overcast.fm/+BtuzXUdtY/439">TS</a>]
00:07:23 ◼ ► know like retail they're often compared to Tiffany and company because of the [<a href="https://overcast.fm/+BtuzXUdtY/443">TS</a>]
00:07:28 ◼ ► profit as revenue per square foot and that's a little bit off-putting because [<a href="https://overcast.fm/+BtuzXUdtY/448">TS</a>]
00:07:33 ◼ ► Tiffany sell stuff that very few people by I mean Apple you know it's this weird [<a href="https://overcast.fm/+BtuzXUdtY/453">TS</a>]
00:07:41 ◼ ► affordable luxury it's like mass-market luxury [<a href="https://overcast.fm/+BtuzXUdtY/461">TS</a>]
00:07:44 ◼ ► maybe good maybe I don't think maybe a good comparison be like Nike where you [<a href="https://overcast.fm/+BtuzXUdtY/464">TS</a>]
00:07:50 ◼ ► know Nike sneakers cost more than average sneakers but they're not on you [<a href="https://overcast.fm/+BtuzXUdtY/470">TS</a>]
00:07:57 ◼ ► know almost anybody you know very very many people can and do by Nike sneakers [<a href="https://overcast.fm/+BtuzXUdtY/477">TS</a>]
00:08:02 ◼ ► yeah that's that's good thought I actually I would be interested to know [<a href="https://overcast.fm/+BtuzXUdtY/482">TS</a>]
00:08:06 ◼ ► what the margins are on on Nike shoes I have no idea I assume you're right [<a href="https://overcast.fm/+BtuzXUdtY/486">TS</a>]
00:08:11 ◼ ► though that they're making a pretty healthy margin selling the shoes market [<a href="https://overcast.fm/+BtuzXUdtY/491">TS</a>]
00:08:17 ◼ ► you know like New Balance or something and yeah that's that's a good way to [<a href="https://overcast.fm/+BtuzXUdtY/497">TS</a>]
00:08:22 ◼ ► think about it you know and then there's you know there's certainly you know they [<a href="https://overcast.fm/+BtuzXUdtY/502">TS</a>]
00:08:26 ◼ ► probably much like Apple you know marketshare wiser not a majority most [<a href="https://overcast.fm/+BtuzXUdtY/506">TS</a>]
00:08:32 ◼ ► seekers are denied him in most people probably despite discount sneakers just [<a href="https://overcast.fm/+BtuzXUdtY/512">TS</a>]
00:08:36 ◼ ► by counting all six billion people on the planet but what shoes are on there [<a href="https://overcast.fm/+BtuzXUdtY/516">TS</a>]
00:08:41 ◼ ► right but it is it's a simple business and Amazon and and and the other parts [<a href="https://overcast.fm/+BtuzXUdtY/521">TS</a>]
00:08:47 ◼ ► of Apple's business stuff like iTunes and stuff like that which is not quite [<a href="https://overcast.fm/+BtuzXUdtY/527">TS</a>]
00:08:51 ◼ ► as simple as make a product sell it for a profit is not a significant part of [<a href="https://overcast.fm/+BtuzXUdtY/531">TS</a>]
00:08:57 ◼ ► Apple's business yea though it is interesting that it was a few quarters [<a href="https://overcast.fm/+BtuzXUdtY/537">TS</a>]
00:09:02 ◼ ► ago it happen right that iTunes pass iTunes revenue I think past Mac revenues [<a href="https://overcast.fm/+BtuzXUdtY/542">TS</a>]
00:09:09 ◼ ► at right is that it is now possible I think overall stuff including absolutely [<a href="https://overcast.fm/+BtuzXUdtY/549">TS</a>]
00:09:14 ◼ ► everything right something like that yeah but I still think it's up in the [<a href="https://overcast.fm/+BtuzXUdtY/554">TS</a>]
00:09:19 ◼ ► air and they don't break it down i mean it's you know they're fairly open in [<a href="https://overcast.fm/+BtuzXUdtY/559">TS</a>]
00:09:22 ◼ ► their financials compared to most other companies but they still don't break a [<a href="https://overcast.fm/+BtuzXUdtY/562">TS</a>]
00:09:25 ◼ ► lot of stuff down but I think like horse did you as has made the case that he [<a href="https://overcast.fm/+BtuzXUdtY/565">TS</a>]
00:09:29 ◼ ► thinks that iTunes even though the revenues varied gotten very high it's [<a href="https://overcast.fm/+BtuzXUdtY/569">TS</a>]
00:09:33 ◼ ► still effectively a breakeven business right which I think yeah and and so we [<a href="https://overcast.fm/+BtuzXUdtY/573">TS</a>]
00:09:39 ◼ ► can talk about you know obviously horace had a happy sort of countering which I [<a href="https://overcast.fm/+BtuzXUdtY/579">TS</a>]
00:09:44 ◼ ► found interesting and i felt like you get mad at me last night on and on [<a href="https://overcast.fm/+BtuzXUdtY/584">TS</a>]
00:09:48 ◼ ► Twitter when I sort of said you know well I don't really understand what he's [<a href="https://overcast.fm/+BtuzXUdtY/588">TS</a>]
00:09:52 ◼ ► going after but you know I'm going to debate it with you on this podcast and [<a href="https://overcast.fm/+BtuzXUdtY/592">TS</a>]
00:09:55 ◼ ► so he's certain responded he thought that he thought that using quotes like [<a href="https://overcast.fm/+BtuzXUdtY/595">TS</a>]
00:10:00 ◼ ► anti Apple was was suggesting that I was sort of making fun of his his stance [<a href="https://overcast.fm/+BtuzXUdtY/600">TS</a>]
00:10:06 ◼ ► which wasn't really his stance which was my stance and there's some confusion [<a href="https://overcast.fm/+BtuzXUdtY/606">TS</a>]
00:10:09 ◼ ► there but I usually do think that Amazon in many ways the anti Apple and he he [<a href="https://overcast.fm/+BtuzXUdtY/609">TS</a>]
00:10:14 ◼ ► does not at all it seems like he thinks it's not that that cut and dry that [<a href="https://overcast.fm/+BtuzXUdtY/614">TS</a>]
00:10:18 ◼ ► there's I think you know not to go too deep into what his thinking is on this [<a href="https://overcast.fm/+BtuzXUdtY/618">TS</a>]
00:10:25 ◼ ► cuz he should speak to their himself but [<a href="https://overcast.fm/+BtuzXUdtY/625">TS</a>]
00:10:27 ◼ ► from reading his post my sense is that he feels like it won't be as easy for [<a href="https://overcast.fm/+BtuzXUdtY/627">TS</a>]
00:10:32 ◼ ► Amazon to flip the switch and turn to a profitable company which was sort of one [<a href="https://overcast.fm/+BtuzXUdtY/632">TS</a>]
00:10:40 ◼ ► yeah I think it just it it it's not a disagreement fundamentally I think it's [<a href="https://overcast.fm/+BtuzXUdtY/640">TS</a>]
00:10:46 ◼ ► in disagreement over what aspects of the company you want to say opposite each [<a href="https://overcast.fm/+BtuzXUdtY/646">TS</a>]
00:10:50 ◼ ► other yeah that's that's right you know and if you just look at the desire to [<a href="https://overcast.fm/+BtuzXUdtY/650">TS</a>]
00:10:58 ◼ ► agro hopefully a growing profit each quarter they are opposite as Apple's [<a href="https://overcast.fm/+BtuzXUdtY/658">TS</a>]
00:11:07 ◼ ► a large profit each quarter and in the long run you know have that profit [<a href="https://overcast.fm/+BtuzXUdtY/667">TS</a>]
00:11:11 ◼ ► continued it stretch whereas amazon has never really endeavored to do that right [<a href="https://overcast.fm/+BtuzXUdtY/671">TS</a>]
00:11:17 ◼ ► but you know I think we're we're overthinking this in some ways I believe [<a href="https://overcast.fm/+BtuzXUdtY/677">TS</a>]
00:11:23 ◼ ► Apple again straightforward business Amazon seemingly not so straightforward [<a href="https://overcast.fm/+BtuzXUdtY/683">TS</a>]
00:11:29 ◼ ► but it's also like if you if you go back and read the Jeff Bezos shareholder [<a href="https://overcast.fm/+BtuzXUdtY/689">TS</a>]
00:11:34 ◼ ► letters from the beginning sort of in the late nineties right when they when [<a href="https://overcast.fm/+BtuzXUdtY/694">TS</a>]
00:11:38 ◼ ► there's a lot of interesting stuff in there because you know he basically lays [<a href="https://overcast.fm/+BtuzXUdtY/698">TS</a>]
00:11:43 ◼ ► out his vision for the company in in the most high level terms in that like you [<a href="https://overcast.fm/+BtuzXUdtY/703">TS</a>]
00:11:50 ◼ ► know they're they're going to sell things you know it low as lower prices [<a href="https://overcast.fm/+BtuzXUdtY/710">TS</a>]
00:11:55 ◼ ► they can to you know to benefit the customers and they realize that this [<a href="https://overcast.fm/+BtuzXUdtY/715">TS</a>]
00:11:58 ◼ ► will sort of hurts their their margins in her and hurt their potential profit [<a href="https://overcast.fm/+BtuzXUdtY/718">TS</a>]
00:12:02 ◼ ► but from time to time you know when he said this they will have to sort of [<a href="https://overcast.fm/+BtuzXUdtY/722">TS</a>]
00:12:08 ◼ ► again to flip the switch but but more or less that that the check and i think is [<a href="https://overcast.fm/+BtuzXUdtY/728">TS</a>]
00:12:14 ◼ ► what he would say they're gonna check in to make sure that they can actually [<a href="https://overcast.fm/+BtuzXUdtY/734">TS</a>]
00:12:17 ◼ ► still make a profit when they need to and the problem now is that we haven't [<a href="https://overcast.fm/+BtuzXUdtY/737">TS</a>]
00:12:24 ◼ ► like this last quarter Amazon actually lost money they you know they posted a [<a href="https://overcast.fm/+BtuzXUdtY/744">TS</a>]
00:12:30 ◼ ► loss for the quarter and previously it's been very small profits if any certainly [<a href="https://overcast.fm/+BtuzXUdtY/750">TS</a>]
00:12:36 ◼ ► compared to Apple I mean we're talking about [<a href="https://overcast.fm/+BtuzXUdtY/756">TS</a>]
00:12:38 ◼ ► a single-digit millions tens of millions while Apple's making you know [<a href="https://overcast.fm/+BtuzXUdtY/758">TS</a>]
00:12:42 ◼ ► double-digit billions in some quarters in profit and so Amazon actually lost [<a href="https://overcast.fm/+BtuzXUdtY/762">TS</a>]
00:12:47 ◼ ► money last quarter and so so we're trying to figure out how are they ever [<a href="https://overcast.fm/+BtuzXUdtY/767">TS</a>]
00:12:55 ◼ ► going to be able to make a profit but again you know many not not even that [<a href="https://overcast.fm/+BtuzXUdtY/775">TS</a>]
00:12:59 ◼ ► long ago several years ago they were making some you know pretty good profits [<a href="https://overcast.fm/+BtuzXUdtY/779">TS</a>]
00:13:03 ◼ ► off of much less revenue that they're at now the revenue of course keeps growing [<a href="https://overcast.fm/+BtuzXUdtY/783">TS</a>]
00:13:06 ◼ ► over time and you know to go back to her spine he thinks that it's going to be [<a href="https://overcast.fm/+BtuzXUdtY/786">TS</a>]
00:13:11 ◼ ► hard to flip the switch and they do i do agree with the overall sense that it [<a href="https://overcast.fm/+BtuzXUdtY/791">TS</a>]
00:13:15 ◼ ► that it could be hard just because you don't know what's coming down the road [<a href="https://overcast.fm/+BtuzXUdtY/795">TS</a>]
00:13:19 ◼ ► there could be there could be a competitor that that comes around in the [<a href="https://overcast.fm/+BtuzXUdtY/799">TS</a>]
00:13:23 ◼ ► buzz phrase but disrupts app Amazon and they won't they want to see that coming [<a href="https://overcast.fm/+BtuzXUdtY/803">TS</a>]
00:13:28 ◼ ► and they're they're so focused on building out that they're they're not [<a href="https://overcast.fm/+BtuzXUdtY/808">TS</a>]
00:13:33 ◼ ► focused on the right things but I do think that that severely downplays some [<a href="https://overcast.fm/+BtuzXUdtY/813">TS</a>]
00:13:40 ◼ ► of the innovation that that Amazon could do I think a good example of that is is [<a href="https://overcast.fm/+BtuzXUdtY/820">TS</a>]
00:13:44 ◼ ► like what they've done with Amazon Prime so like they now have a lot of people [<a href="https://overcast.fm/+BtuzXUdtY/824">TS</a>]
00:13:48 ◼ ► paying a recurring fee a yearly fee for products and like when you just think [<a href="https://overcast.fm/+BtuzXUdtY/828">TS</a>]
00:13:53 ◼ ► about it think about their business if people are paying for something that [<a href="https://overcast.fm/+BtuzXUdtY/833">TS</a>]
00:13:57 ◼ ► razor thin margin you know of course that doesn't seem like the best business [<a href="https://overcast.fm/+BtuzXUdtY/837">TS</a>]
00:14:01 ◼ ► to be in from a profit perspective but they have all these people paying Amazon [<a href="https://overcast.fm/+BtuzXUdtY/841">TS</a>]
00:14:05 ◼ ► Prime which is sort of interesting because that has you know that while not [<a href="https://overcast.fm/+BtuzXUdtY/845">TS</a>]
00:14:10 ◼ ► infinite margins you can assume that that has very good margins I don't know [<a href="https://overcast.fm/+BtuzXUdtY/850">TS</a>]
00:14:15 ◼ ► though because I i mean i'm i'm a prime subscriber I guess you call a [<a href="https://overcast.fm/+BtuzXUdtY/855">TS</a>]
00:14:20 ◼ ► subscription yeah but I can't help but think that over the course of a year I [<a href="https://overcast.fm/+BtuzXUdtY/860">TS</a>]
00:14:25 ◼ ► make my crime pays 800 bucks I don't think it's eighty 80 in nato that sounds [<a href="https://overcast.fm/+BtuzXUdtY/865">TS</a>]
00:14:36 ◼ ► about right but I think that we get more than [<a href="https://overcast.fm/+BtuzXUdtY/876">TS</a>]
00:14:39 ◼ ► $100 worth of shipping out of it well and so this is another thing when when [<a href="https://overcast.fm/+BtuzXUdtY/879">TS</a>]
00:14:45 ◼ ► you're at the scale that Amazon is at you know shipping costs are relative so [<a href="https://overcast.fm/+BtuzXUdtY/885">TS</a>]
00:14:51 ◼ ► Amazon is building infrastructure out to build these warehouses all over and now [<a href="https://overcast.fm/+BtuzXUdtY/891">TS</a>]
00:14:54 ◼ ► now that they had their shit nude the new taxes in place for Internet taxing [<a href="https://overcast.fm/+BtuzXUdtY/894">TS</a>]
00:14:58 ◼ ► they can actually build warehouses in somewhere like California where they [<a href="https://overcast.fm/+BtuzXUdtY/898">TS</a>]
00:15:01 ◼ ► couldn't before right because you couldn't have a a physical you couldn't [<a href="https://overcast.fm/+BtuzXUdtY/901">TS</a>]
00:15:05 ◼ ► have any physical space in California [<a href="https://overcast.fm/+BtuzXUdtY/905">TS</a>]
00:15:07 ◼ ► otherwise they would have made you collect sales tax there and so now that [<a href="https://overcast.fm/+BtuzXUdtY/907">TS</a>]
00:15:10 ◼ ► that they you know they've come to an agreement that they are going to collect [<a href="https://overcast.fm/+BtuzXUdtY/910">TS</a>]
00:15:13 ◼ ► sales tax over the internet now amazonas starting to build warehouses all over [<a href="https://overcast.fm/+BtuzXUdtY/913">TS</a>]
00:15:16 ◼ ► the place they did they didn't have before and so when they when they do [<a href="https://overcast.fm/+BtuzXUdtY/916">TS</a>]
00:15:20 ◼ ► things like build a brand new warehouse right outside of San Francisco they can [<a href="https://overcast.fm/+BtuzXUdtY/920">TS</a>]
00:15:25 ◼ ► you know the cost of delivering to San Francisco of course goes way down and so [<a href="https://overcast.fm/+BtuzXUdtY/925">TS</a>]
00:15:31 ◼ ► Amazon explain I do think that you're right that that there are a lot of [<a href="https://overcast.fm/+BtuzXUdtY/931">TS</a>]
00:15:35 ◼ ► people and certainly your power you know a power user of Amazon Prime and I am [<a href="https://overcast.fm/+BtuzXUdtY/935">TS</a>]
00:15:39 ◼ ► too and there are a lot of people who are probably the margins aren't as good [<a href="https://overcast.fm/+BtuzXUdtY/939">TS</a>]
00:15:44 ◼ ► for Amazon Amazon Prime but I do I would imagine that there's a lot of people who [<a href="https://overcast.fm/+BtuzXUdtY/944">TS</a>]
00:15:47 ◼ ► buy you know a couple things here and there making you know quite a bit of a [<a href="https://overcast.fm/+BtuzXUdtY/947">TS</a>]
00:15:51 ◼ ► substantial came from that I'll do stupid things I'll do things can I know [<a href="https://overcast.fm/+BtuzXUdtY/951">TS</a>]
00:15:57 ◼ ► its Amazon and so I know I don't feel bad for them I don't feel like i'm [<a href="https://overcast.fm/+BtuzXUdtY/957">TS</a>]
00:16:00 ◼ ► taking advantage of them but it was like a mom-and-pop business I would never do [<a href="https://overcast.fm/+BtuzXUdtY/960">TS</a>]
00:16:04 ◼ ► like it if it was just like a small business that happened to offer the same [<a href="https://overcast.fm/+BtuzXUdtY/964">TS</a>]
00:16:09 ◼ ► shipping offers that Amazon does I wouldn't do it like last week or two ago [<a href="https://overcast.fm/+BtuzXUdtY/969">TS</a>]
00:16:17 ◼ ► I bought a little tiny screwdriver just I just needed a real blast size [<a href="https://overcast.fm/+BtuzXUdtY/977">TS</a>]
00:16:26 ◼ ► screwdriver and I so I bought one on Amazon for like three dollars and had it [<a href="https://overcast.fm/+BtuzXUdtY/986">TS</a>]
00:16:33 ◼ ► sent to me on Prime shipping for free I mean I mean like it's like super low [<a href="https://overcast.fm/+BtuzXUdtY/993">TS</a>]
00:16:39 ◼ ► cost I mean yeah I would never do that if it was like a small business would [<a href="https://overcast.fm/+BtuzXUdtY/999">TS</a>]
00:16:46 ◼ ► and waited till I needed you know three or four things back together and nets [<a href="https://overcast.fm/+BtuzXUdtY/1006">TS</a>]
00:16:52 ◼ ► and then i dont ridiculous right it sounds like ridiculous that Amazon would [<a href="https://overcast.fm/+BtuzXUdtY/1012">TS</a>]
00:16:55 ◼ ► would in any way allow you to order a $3 thing and let you get you do not pay [<a href="https://overcast.fm/+BtuzXUdtY/1015">TS</a>]
00:17:00 ◼ ► shipping for it but at the same time at the same time because of the scale [<a href="https://overcast.fm/+BtuzXUdtY/1020">TS</a>]
00:17:05 ◼ ► Amazon operates at they probably have you know say a thousand trucks going [<a href="https://overcast.fm/+BtuzXUdtY/1025">TS</a>]
00:17:09 ◼ ► going around to your area you know any any given week or something and they [<a href="https://overcast.fm/+BtuzXUdtY/1029">TS</a>]
00:17:16 ◼ ► just happen to have extra space on it so because you're using the Prime thing [<a href="https://overcast.fm/+BtuzXUdtY/1036">TS</a>]
00:17:19 ◼ ► you're not doing overnight which of course you have to pay extra for you [<a href="https://overcast.fm/+BtuzXUdtY/1039">TS</a>]
00:17:23 ◼ ► know they'll be able to find room on one of those trucks that's just on [<a href="https://overcast.fm/+BtuzXUdtY/1043">TS</a>]
00:17:26 ◼ ► unutilized rate right I would probably be be surprised at how maybe how [<a href="https://overcast.fm/+BtuzXUdtY/1046">TS</a>]
00:17:34 ◼ ► efficient they're shipping is and how little it does set them back to me for [<a href="https://overcast.fm/+BtuzXUdtY/1054">TS</a>]
00:17:39 ◼ ► free and remember that they you know with the purchase of Kievan they've been [<a href="https://overcast.fm/+BtuzXUdtY/1059">TS</a>]
00:17:43 ◼ ► doing some other things they'd there this is all a lot of these processes is [<a href="https://overcast.fm/+BtuzXUdtY/1063">TS</a>]
00:17:46 ◼ ► completely automated now where they just have robots going around their [<a href="https://overcast.fm/+BtuzXUdtY/1066">TS</a>]
00:17:49 ◼ ► warehouses and and picking up your mini screwdriver and and putting it in a [<a href="https://overcast.fm/+BtuzXUdtY/1069">TS</a>]
00:17:53 ◼ ► truck and that's it and there's no you know there's there's very little human [<a href="https://overcast.fm/+BtuzXUdtY/1073">TS</a>]
00:17:56 ◼ ► costs and you know their their business is pretty interesting at the scale and [<a href="https://overcast.fm/+BtuzXUdtY/1076">TS</a>]
00:18:02 ◼ ► you know and I have to admit I've always thought that point of prime I mean it [<a href="https://overcast.fm/+BtuzXUdtY/1082">TS</a>]
00:18:06 ◼ ► may be there for some people it actually is very profitable because they pay the [<a href="https://overcast.fm/+BtuzXUdtY/1086">TS</a>]
00:18:10 ◼ ► 80 bucks and they don't use up 80 bucks worth of prime services right in a year [<a href="https://overcast.fm/+BtuzXUdtY/1090">TS</a>]
00:18:17 ◼ ► and so that's just free money for him but I've always thought it was a way to [<a href="https://overcast.fm/+BtuzXUdtY/1097">TS</a>]
00:18:21 ◼ ► sort of encouraged loyalty that there's like you know once you pay for prime you [<a href="https://overcast.fm/+BtuzXUdtY/1101">TS</a>]
00:18:26 ◼ ► feel like 10 me to look at Amazon first because I know I can get Prime shipping [<a href="https://overcast.fm/+BtuzXUdtY/1106">TS</a>]
00:18:31 ◼ ► yep and I i do think that that's right I would imagine you know I just bought a [<a href="https://overcast.fm/+BtuzXUdtY/1111">TS</a>]
00:18:35 ◼ ► Samsung Panasonic supplied no idea what the actual margins are on that but I do [<a href="https://overcast.fm/+BtuzXUdtY/1115">TS</a>]
00:18:40 ◼ ► think you're you're probably right in that they view it [<a href="https://overcast.fm/+BtuzXUdtY/1120">TS</a>]
00:18:43 ◼ ► well maybe not a loss leader and I do think like office certain people they're [<a href="https://overcast.fm/+BtuzXUdtY/1123">TS</a>]
00:18:48 ◼ ► probably making a pretty good profit off of that but they do view it as a way to [<a href="https://overcast.fm/+BtuzXUdtY/1128">TS</a>]
00:18:52 ◼ ► just keep people coming back and keep people buying more using him as far as [<a href="https://overcast.fm/+BtuzXUdtY/1132">TS</a>]
00:18:57 ◼ ► I've always said that was the point [<a href="https://overcast.fm/+BtuzXUdtY/1137">TS</a>]
00:18:58 ◼ ► of like the way that like Sam's Club or forget some of the other big-box [<a href="https://overcast.fm/+BtuzXUdtY/1138">TS</a>]
00:19:04 ◼ ► retailers were you have to be a quote unquote member ready to be a member [<a href="https://overcast.fm/+BtuzXUdtY/1144">TS</a>]
00:19:08 ◼ ► eases pay 25 bucks a year or something like that but I've always thought it was [<a href="https://overcast.fm/+BtuzXUdtY/1148">TS</a>]
00:19:13 ◼ ► you know sure the membership fees are are nice but I don't think that Sam's [<a href="https://overcast.fm/+BtuzXUdtY/1153">TS</a>]
00:19:18 ◼ ► Club runs on membership fees I've always just thought that there's like a [<a href="https://overcast.fm/+BtuzXUdtY/1158">TS</a>]
00:19:22 ◼ ► psychology to it where once you remember and you have paid you feel like one [<a href="https://overcast.fm/+BtuzXUdtY/1162">TS</a>]
00:19:26 ◼ ► telephone gonna buy toilet paper I'm gonna go to Sam's Club because i've you [<a href="https://overcast.fm/+BtuzXUdtY/1166">TS</a>]
00:19:30 ◼ ► yeah right and thats so that you know that that plays into the idea that that [<a href="https://overcast.fm/+BtuzXUdtY/1170">TS</a>]
00:19:36 ◼ ► Amazon's business at least at first I think Amazon again is super complicated [<a href="https://overcast.fm/+BtuzXUdtY/1176">TS</a>]
00:19:41 ◼ ► because they're doing so many things I mean we've even talked about like AWS [<a href="https://overcast.fm/+BtuzXUdtY/1181">TS</a>]
00:19:44 ◼ ► and and and sort of their digital services which are which are really [<a href="https://overcast.fm/+BtuzXUdtY/1184">TS</a>]
00:19:48 ◼ ► fascinating but from the beginning of Amazon Chris asserted selling books but [<a href="https://overcast.fm/+BtuzXUdtY/1188">TS</a>]
00:19:52 ◼ ► even when they're just trying to sell sort of everything online you know of [<a href="https://overcast.fm/+BtuzXUdtY/1192">TS</a>]
00:19:56 ◼ ► course everyone recognizes that what they're trying to go after his basically [<a href="https://overcast.fm/+BtuzXUdtY/1196">TS</a>]
00:19:59 ◼ ► Walmart where wal-mart has an insane amount of revenue and relatively low [<a href="https://overcast.fm/+BtuzXUdtY/1199">TS</a>]
00:20:05 ◼ ► profit compared to that but that doesn't matter because the revenue is so high [<a href="https://overcast.fm/+BtuzXUdtY/1205">TS</a>]
00:20:09 ◼ ► that the profit is also high even though the margins are so bad that so Amazon by [<a href="https://overcast.fm/+BtuzXUdtY/1209">TS</a>]
00:20:13 ◼ ► doing things like Amazon Prime and keeping people coming back in just [<a href="https://overcast.fm/+BtuzXUdtY/1213">TS</a>]
00:20:17 ◼ ► keepin on using the revenue profits will go up the thing that of course we're [<a href="https://overcast.fm/+BtuzXUdtY/1217">TS</a>]
00:20:23 ◼ ► talking about now is the fact that the profits are going up because they're [<a href="https://overcast.fm/+BtuzXUdtY/1223">TS</a>]
00:20:26 ◼ ► spending so much of this money on other things are let's take a timeout couple [<a href="https://overcast.fm/+BtuzXUdtY/1226">TS</a>]
00:20:31 ◼ ► sponsors shows get one out of the way and then we'll keep going on and I want [<a href="https://overcast.fm/+BtuzXUdtY/1231">TS</a>]
00:20:35 ◼ ► to thank our first sponsored Squarespace longtime friends of the show [<a href="https://overcast.fm/+BtuzXUdtY/1235">TS</a>]
00:20:40 ◼ ► Squarespace you know of course is the all-in-one platform that makes it fast [<a href="https://overcast.fm/+BtuzXUdtY/1240">TS</a>]
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00:20:49 ◼ ► you can go there with with the order order code [<a href="https://overcast.fm/+BtuzXUdtY/1249">TS</a>]
00:21:00 ◼ ► 2008 talk show and then the digital age and you'll save 10% just go to [<a href="https://overcast.fm/+BtuzXUdtY/1260">TS</a>]
00:21:05 ◼ ► Squarespace no more funny URLs just go to Squarespace and square space.com and [<a href="https://overcast.fm/+BtuzXUdtY/1265">TS</a>]
00:21:11 ◼ ► you can find out more with that code they're constantly improving their [<a href="https://overcast.fm/+BtuzXUdtY/1271">TS</a>]
00:21:15 ◼ ► platform with new features new designs that are support their support is [<a href="https://overcast.fm/+BtuzXUdtY/1275">TS</a>]
00:21:20 ◼ ► incredible 24 hours I don't know how they do it 24 hours seven days a week [<a href="https://overcast.fm/+BtuzXUdtY/1280">TS</a>]
00:21:24 ◼ ► they've even won awards for their customer support something called a gold [<a href="https://overcast.fm/+BtuzXUdtY/1284">TS</a>]
00:21:30 ◼ ► Stevie Award they just got what is it what is a caustic cost starts at just [<a href="https://overcast.fm/+BtuzXUdtY/1290">TS</a>]
00:21:35 ◼ ► eight bucks a month and that includes a FREE domain name if you sign up for a [<a href="https://overcast.fm/+BtuzXUdtY/1295">TS</a>]
00:21:39 ◼ ► year they have over 20 templates to choose from their beautiful their [<a href="https://overcast.fm/+BtuzXUdtY/1299">TS</a>]
00:21:44 ◼ ► templates have won awards they just won a Webby Award this year for their their [<a href="https://overcast.fm/+BtuzXUdtY/1304">TS</a>]
00:21:49 ◼ ► template design so go to Squarespace dot com find out more and use the code talk [<a href="https://overcast.fm/+BtuzXUdtY/1309">TS</a>]
00:21:55 ◼ ► show eight and you'll save 10% back to Amazon and profit so my summary and this [<a href="https://overcast.fm/+BtuzXUdtY/1315">TS</a>]
00:22:12 ◼ ► was I hadn't had this thought until I read your piece but my summary is there [<a href="https://overcast.fm/+BtuzXUdtY/1332">TS</a>]
00:22:16 ◼ ► Dave Bezos has said Amazon up from investor perspective that that profits [<a href="https://overcast.fm/+BtuzXUdtY/1336">TS</a>]
00:22:23 ◼ ► are sort of like a will of the west and that's always investors believe in [<a href="https://overcast.fm/+BtuzXUdtY/1343">TS</a>]
00:22:28 ◼ ► Amazon or Amazon investors certainly do and the revenue growth is certainly [<a href="https://overcast.fm/+BtuzXUdtY/1348">TS</a>]
00:22:35 ◼ ► there right it's it's you know maybe one quarter over another there been dips but [<a href="https://overcast.fm/+BtuzXUdtY/1355">TS</a>]
00:22:39 ◼ ► a pretty steady pace since the company was founded in 1994 revenues have grown [<a href="https://overcast.fm/+BtuzXUdtY/1359">TS</a>]
00:22:45 ◼ ► at a remarkable rate Lake you know it used to behave Amazon might someday be a [<a href="https://overcast.fm/+BtuzXUdtY/1365">TS</a>]
00:22:52 ◼ ► major retailer on the scale of like wal-mart and target and no physical [<a href="https://overcast.fm/+BtuzXUdtY/1372">TS</a>]
00:22:58 ◼ ► world retailers like that and you know in the nineties some people thought that [<a href="https://overcast.fm/+BtuzXUdtY/1378">TS</a>]
00:23:02 ◼ ► was not some people truly thought hey come on to buy stuff on [<a href="https://overcast.fm/+BtuzXUdtY/1382">TS</a>]
00:23:06 ◼ ► but normal gonna buy stuff online it that's totally turned out to be true and [<a href="https://overcast.fm/+BtuzXUdtY/1386">TS</a>]
00:23:12 ◼ ► so that's sort of investor faith from a long time ago has panned out the revenue [<a href="https://overcast.fm/+BtuzXUdtY/1392">TS</a>]
00:23:17 ◼ ► growth is there but I think Bezos I think they want to put words in your [<a href="https://overcast.fm/+BtuzXUdtY/1397">TS</a>]
00:23:22 ◼ ► mouth but I think this is the point you're sort of making his basis is sort [<a href="https://overcast.fm/+BtuzXUdtY/1402">TS</a>]
00:23:25 ◼ ► of set up the expectation that profits never have to come now they only have [<a href="https://overcast.fm/+BtuzXUdtY/1405">TS</a>]
00:23:31 ◼ ► two potentially come in the foreseeable future right and I do so this is why I [<a href="https://overcast.fm/+BtuzXUdtY/1411">TS</a>]
00:23:40 ◼ ► think basis is sort of what do you think he's business genius certainly but I [<a href="https://overcast.fm/+BtuzXUdtY/1420">TS</a>]
00:23:46 ◼ ► think he's sort of underappreciated and I think that's what we're seeing with [<a href="https://overcast.fm/+BtuzXUdtY/1426">TS</a>]
00:23:49 ◼ ► the washington post up like what would you do this and maybe he doesn't have a [<a href="https://overcast.fm/+BtuzXUdtY/1429">TS</a>]
00:23:53 ◼ ► plan for us to put again I don't know but you know when people are sort of [<a href="https://overcast.fm/+BtuzXUdtY/1433">TS</a>]
00:23:56 ◼ ► saying like like crazy guy who just doesn't care about profits by as well I [<a href="https://overcast.fm/+BtuzXUdtY/1436">TS</a>]
00:24:02 ◼ ► think that I mean when you look at his history right he worked on Wall Street [<a href="https://overcast.fm/+BtuzXUdtY/1442">TS</a>]
00:24:06 ◼ ► he understands how this works maybe better than most other CEOs do because [<a href="https://overcast.fm/+BtuzXUdtY/1446">TS</a>]
00:24:11 ◼ ► they don't have that experience wherever he didn't start he didn't start until he [<a href="https://overcast.fm/+BtuzXUdtY/1451">TS</a>]
00:24:13 ◼ ► was thirty hedge fund announced twenty right to hedge funds so he totally [<a href="https://overcast.fm/+BtuzXUdtY/1453">TS</a>]
00:24:18 ◼ ► understands are you can assume that he totally understands wall street and so I [<a href="https://overcast.fm/+BtuzXUdtY/1458">TS</a>]
00:24:22 ◼ ► think what we've been seeing the past two years which is really interesting [<a href="https://overcast.fm/+BtuzXUdtY/1462">TS</a>]
00:24:25 ◼ ► when compared to Apple AAPL has just done profits so much so so good of [<a href="https://overcast.fm/+BtuzXUdtY/1465">TS</a>]
00:24:32 ◼ ► business they the profits you know that what the one the couple quarters of it [<a href="https://overcast.fm/+BtuzXUdtY/1472">TS</a>]
00:24:36 ◼ ► thirteen billion dollars and the only thing to that's comparable to that or [<a href="https://overcast.fm/+BtuzXUdtY/1476">TS</a>]
00:24:40 ◼ ► the oil companies right i mean this is that's amazing and it's not even though [<a href="https://overcast.fm/+BtuzXUdtY/1480">TS</a>]
00:24:43 ◼ ► companies often don't do that well it's like there's there's three best quarters [<a href="https://overcast.fm/+BtuzXUdtY/1483">TS</a>]
00:24:47 ◼ ► stack up against Apple's best quarters now and so does profits are huge and [<a href="https://overcast.fm/+BtuzXUdtY/1487">TS</a>]
00:24:54 ◼ ► while they were showing those giant profits and the profit growth more [<a href="https://overcast.fm/+BtuzXUdtY/1494">TS</a>]
00:24:58 ◼ ► importantly and the revenue growth while she was loving Apple pushed the stock up [<a href="https://overcast.fm/+BtuzXUdtY/1498">TS</a>]
00:25:02 ◼ ► to 700 past seven hundred dollars a share right now that the growth is [<a href="https://overcast.fm/+BtuzXUdtY/1502">TS</a>]
00:25:08 ◼ ► slowing even if the profits are still pretty good you know I forget what it [<a href="https://overcast.fm/+BtuzXUdtY/1508">TS</a>]
00:25:11 ◼ ► was last quarter eight billion or something like that I mean it's still [<a href="https://overcast.fm/+BtuzXUdtY/1511">TS</a>]
00:25:15 ◼ ► the growth is no longer there and [<a href="https://overcast.fm/+BtuzXUdtY/1515">TS</a>]
00:25:19 ◼ ► the problem and and sort of one of the points and I made it in my post which i [<a href="https://overcast.fm/+BtuzXUdtY/1519">TS</a>]
00:25:23 ◼ ► think people just don't really think about it so obviously people don't think [<a href="https://overcast.fm/+BtuzXUdtY/1523">TS</a>]
00:25:29 ◼ ► Apple's problem with wall street is that they're looking for future potential and [<a href="https://overcast.fm/+BtuzXUdtY/1529">TS</a>]
00:25:33 ◼ ► the fact that the iPhone was such an incredibly good business and still is [<a href="https://overcast.fm/+BtuzXUdtY/1533">TS</a>]
00:25:38 ◼ ► for Apple that it's gonna be almost impossible I think for them to find a [<a href="https://overcast.fm/+BtuzXUdtY/1538">TS</a>]
00:25:42 ◼ ► business that's similar to that maybe I'm wrong I hope I am I hope that you [<a href="https://overcast.fm/+BtuzXUdtY/1542">TS</a>]
00:25:46 ◼ ► know they come out with with some kind of crazy new device that no one is [<a href="https://overcast.fm/+BtuzXUdtY/1546">TS</a>]
00:25:50 ◼ ► thinking about but I think even with like you know the rumored television [<a href="https://overcast.fm/+BtuzXUdtY/1550">TS</a>]
00:25:54 ◼ ► stuff and in the watch I think that they'll be hard-pressed to get the sort [<a href="https://overcast.fm/+BtuzXUdtY/1554">TS</a>]
00:25:59 ◼ ► of profits that they do offer the iPhone because of the way the unique market [<a href="https://overcast.fm/+BtuzXUdtY/1559">TS</a>]
00:26:04 ◼ ► that iPhones in the smartphone market especially the subsidized and [<a href="https://overcast.fm/+BtuzXUdtY/1564">TS</a>]
00:26:08 ◼ ► unsubsidized markets where they're getting paid so much money up front for [<a href="https://overcast.fm/+BtuzXUdtY/1568">TS</a>]
00:26:12 ◼ ► these devices and so that's going to naturally if you can't get another [<a href="https://overcast.fm/+BtuzXUdtY/1572">TS</a>]
00:26:18 ◼ ► iPhone like product the the growth is naturally going to come down and so you [<a href="https://overcast.fm/+BtuzXUdtY/1578">TS</a>]
00:26:23 ◼ ► know when people talk about has Apple you can maybe make an argument that they [<a href="https://overcast.fm/+BtuzXUdtY/1583">TS</a>]
00:26:27 ◼ ► have in terms of revenue and profit growth just because the iPhone was such [<a href="https://overcast.fm/+BtuzXUdtY/1587">TS</a>]
00:26:33 ◼ ► Amazon is the opposite right where those is playing this way and and and just go [<a href="https://overcast.fm/+BtuzXUdtY/1593">TS</a>]
00:26:39 ◼ ► back to Apple for a second so so Tim Cook you know that the operator he [<a href="https://overcast.fm/+BtuzXUdtY/1599">TS</a>]
00:26:43 ◼ ► understands how to make the the machine as well oiled as possible and as soon as [<a href="https://overcast.fm/+BtuzXUdtY/1603">TS</a>]
00:26:47 ◼ ► he took over 44 steve Jobs was found that both on an interim basis and then [<a href="https://overcast.fm/+BtuzXUdtY/1607">TS</a>]
00:26:52 ◼ ► you know people don't give him credit but the stock went crazy you know after [<a href="https://overcast.fm/+BtuzXUdtY/1612">TS</a>]
00:26:57 ◼ ► after Jobs passed away and and cook is is the CEO and the man in charge that's [<a href="https://overcast.fm/+BtuzXUdtY/1617">TS</a>]
00:27:01 ◼ ► what it do the run up to $700 Sharon Apple sort of hit its peak and then you [<a href="https://overcast.fm/+BtuzXUdtY/1621">TS</a>]
00:27:06 ◼ ► know everyone talks now like oh my god he's lost so much value but he created a [<a href="https://overcast.fm/+BtuzXUdtY/1626">TS</a>]
00:27:09 ◼ ► lot of that was under him that that value was created and so pesos though is [<a href="https://overcast.fm/+BtuzXUdtY/1629">TS</a>]
00:27:16 ◼ ► playing at the the the opposite way we're rather than focus on [<a href="https://overcast.fm/+BtuzXUdtY/1636">TS</a>]
00:27:20 ◼ ► the profit you know of course you want revenue growth especially in the [<a href="https://overcast.fm/+BtuzXUdtY/1640">TS</a>]
00:27:25 ◼ ► business Amazon is in but rather than than focus on the profit in showing [<a href="https://overcast.fm/+BtuzXUdtY/1645">TS</a>]
00:27:29 ◼ ► investors what you know showing him your hand basically he's focused on trying to [<a href="https://overcast.fm/+BtuzXUdtY/1649">TS</a>]
00:27:35 ◼ ► trying to ground that revenue that that profit into the into the ground and make [<a href="https://overcast.fm/+BtuzXUdtY/1655">TS</a>]
00:27:42 ◼ ► yeah I totally agree and I and it's you know Matt Iglesias who rides on [<a href="https://overcast.fm/+BtuzXUdtY/1662">TS</a>]
00:27:48 ◼ ► economics its slate has has commented on Amazon several times as well as his [<a href="https://overcast.fm/+BtuzXUdtY/1668">TS</a>]
00:27:52 ◼ ► phrasing that he called them that effectively that they run like a [<a href="https://overcast.fm/+BtuzXUdtY/1672">TS</a>]
00:27:57 ◼ ► charitable charitable foundation for the benefit of consumers rate at which which [<a href="https://overcast.fm/+BtuzXUdtY/1677">TS</a>]
00:28:03 ◼ ► is funny I mean that's a really funny way to think about it and and I used to [<a href="https://overcast.fm/+BtuzXUdtY/1683">TS</a>]
00:28:06 ◼ ► totally agree with that but you also remember that Amazon Amazons business [<a href="https://overcast.fm/+BtuzXUdtY/1686">TS</a>]
00:28:11 ◼ ► and in anything was eugene way he used to work at at Amazon pointed this out in [<a href="https://overcast.fm/+BtuzXUdtY/1691">TS</a>]
00:28:16 ◼ ► a really good way a few months ago remember that Amazon because of the [<a href="https://overcast.fm/+BtuzXUdtY/1696">TS</a>]
00:28:21 ◼ ► business there and they have cash constantly flowing in and yet they don't [<a href="https://overcast.fm/+BtuzXUdtY/1701">TS</a>]
00:28:26 ◼ ► have to actually pay for things necessarily right away so they have the [<a href="https://overcast.fm/+BtuzXUdtY/1706">TS</a>]
00:28:30 ◼ ► day of the sort of interesting buffer that other companies do not have and [<a href="https://overcast.fm/+BtuzXUdtY/1710">TS</a>]
00:28:35 ◼ ► that's why when you talk about free cash flow in like how Amazon could possibly [<a href="https://overcast.fm/+BtuzXUdtY/1715">TS</a>]
00:28:38 ◼ ► keep operating in and bring in money when they're losing money it's because [<a href="https://overcast.fm/+BtuzXUdtY/1718">TS</a>]
00:28:42 ◼ ► their business is is unlike sort of any other where they actually do constantly [<a href="https://overcast.fm/+BtuzXUdtY/1722">TS</a>]
00:28:48 ◼ ► have a flow of cash coming in and if that dried up they would be yeah yeah [<a href="https://overcast.fm/+BtuzXUdtY/1728">TS</a>]
00:28:53 ◼ ► there would be there would be a problem but that's not a drying up certainly [<a href="https://overcast.fm/+BtuzXUdtY/1733">TS</a>]
00:28:56 ◼ ► things like you like Amazon Prime are probably hoping that were people just [<a href="https://overcast.fm/+BtuzXUdtY/1736">TS</a>]
00:28:59 ◼ ► keep buying stuff and so they have this cash that they can use for things where [<a href="https://overcast.fm/+BtuzXUdtY/1739">TS</a>]
00:29:02 ◼ ► they don't need to focus solely on making a profit there's the classic [<a href="https://overcast.fm/+BtuzXUdtY/1742">TS</a>]
00:29:09 ◼ ► eighties Saturday Night Live a commercial for the first union change [<a href="https://overcast.fm/+BtuzXUdtY/1749">TS</a>]
00:29:17 ◼ ► bank I do remember this is Kevin Nealon [<a href="https://overcast.fm/+BtuzXUdtY/1757">TS</a>]
00:29:21 ◼ ► in the gist of it was it a bank where all they do is make change [<a href="https://overcast.fm/+BtuzXUdtY/1761">TS</a>]
00:29:25 ◼ ► and they're like hey you can come in with a dollar bill and if you want [<a href="https://overcast.fm/+BtuzXUdtY/1765">TS</a>]
00:29:29 ◼ ► twenty nichols will give you 20 nichols' you want ten dimes you can get ten times [<a href="https://overcast.fm/+BtuzXUdtY/1769">TS</a>]
00:29:34 ◼ ► you want half nichols have times we can make that happen and it was funny and [<a href="https://overcast.fm/+BtuzXUdtY/1774">TS</a>]
00:29:39 ◼ ► then you know the punch line was people say how do you turn a profit [<a href="https://overcast.fm/+BtuzXUdtY/1779">TS</a>]
00:29:46 ◼ ► how do you make money right right and that it's funny and that i think is sort [<a href="https://overcast.fm/+BtuzXUdtY/1786">TS</a>]
00:29:54 ◼ ► of been the the knee jerk and it has been mined the knock against Amazon you [<a href="https://overcast.fm/+BtuzXUdtY/1794">TS</a>]
00:29:59 ◼ ► know that you know if you're breaking even there is no profit but it did you [<a href="https://overcast.fm/+BtuzXUdtY/1799">TS</a>]
00:30:04 ◼ ► could actually turn a profit as a change bank if you can hold the money before [<a href="https://overcast.fm/+BtuzXUdtY/1804">TS</a>]
00:30:09 ◼ ► giving them their change right now and that's why you know I think Amazon [<a href="https://overcast.fm/+BtuzXUdtY/1809">TS</a>]
00:30:13 ◼ ► wasn't that the PCR citing from the guy who worked at the date they hold some of [<a href="https://overcast.fm/+BtuzXUdtY/1813">TS</a>]
00:30:17 ◼ ► that money for up to 90 days right that they only have to pay like the book [<a href="https://overcast.fm/+BtuzXUdtY/1817">TS</a>]
00:30:21 ◼ ► distributors I give you buy a book they pay at the end of the quarter and the [<a href="https://overcast.fm/+BtuzXUdtY/1821">TS</a>]
00:30:25 ◼ ► time they've helped them money and they can earn interest on it do it do you [<a href="https://overcast.fm/+BtuzXUdtY/1825">TS</a>]
00:30:28 ◼ ► know do you actually can make money as a change bank if you have money for 90 [<a href="https://overcast.fm/+BtuzXUdtY/1828">TS</a>]
00:30:33 ◼ ► days right it's it's an interesting way to think about it is like maybe maybe [<a href="https://overcast.fm/+BtuzXUdtY/1833">TS</a>]
00:30:37 ◼ ► more simplified way that like you know someone just on a day-to-day can think [<a href="https://overcast.fm/+BtuzXUdtY/1837">TS</a>]
00:30:41 ◼ ► about it like imagine that your you pay a you have to pay a down payment on your [<a href="https://overcast.fm/+BtuzXUdtY/1841">TS</a>]
00:30:48 ◼ ► on your renter you have to pay basically a holding fee or whatever to to get an [<a href="https://overcast.fm/+BtuzXUdtY/1848">TS</a>]
00:30:54 ◼ ► apartment right and see you give that to your landlord in your landlord then has [<a href="https://overcast.fm/+BtuzXUdtY/1854">TS</a>]
00:30:58 ◼ ► that money he could put it in a in his checking account and he's earning [<a href="https://overcast.fm/+BtuzXUdtY/1858">TS</a>]
00:31:02 ◼ ► interest on that money so it's like your money is being used to make him more [<a href="https://overcast.fm/+BtuzXUdtY/1862">TS</a>]
00:31:07 ◼ ► money because eventually he's going to give that money to back that you [<a href="https://overcast.fm/+BtuzXUdtY/1867">TS</a>]
00:31:10 ◼ ► treasure apartment or whatever but he is earning money off of the money that [<a href="https://overcast.fm/+BtuzXUdtY/1870">TS</a>]
00:31:15 ◼ ► you've given in so there's so there's the interest component of it which I do [<a href="https://overcast.fm/+BtuzXUdtY/1875">TS</a>]
00:31:19 ◼ ► actually don't know how much Amazon doesn't that I assume that there that [<a href="https://overcast.fm/+BtuzXUdtY/1879">TS</a>]
00:31:23 ◼ ► they have you know somebody invested in making interest off of that but yes and [<a href="https://overcast.fm/+BtuzXUdtY/1883">TS</a>]
00:31:26 ◼ ► then there's also the free cash flow component where they're just they can [<a href="https://overcast.fm/+BtuzXUdtY/1886">TS</a>]
00:31:29 ◼ ► hold onto this money and use it for whatever they want to use it for until [<a href="https://overcast.fm/+BtuzXUdtY/1889">TS</a>]
00:31:33 ◼ ► they have to to to pay it ninety days later but at that point they already [<a href="https://overcast.fm/+BtuzXUdtY/1893">TS</a>]
00:31:38 ◼ ► their money that has come in for the same purpose so it's [<a href="https://overcast.fm/+BtuzXUdtY/1898">TS</a>]
00:31:46 ◼ ► I know that this is this is this is fairly complex in this took me a little [<a href="https://overcast.fm/+BtuzXUdtY/1906">TS</a>]
00:31:49 ◼ ► while to understand how exactly this could possibly work is it almost seems [<a href="https://overcast.fm/+BtuzXUdtY/1909">TS</a>]
00:31:53 ◼ ► like it's such an interesting idea that it seems like a scam right where it's [<a href="https://overcast.fm/+BtuzXUdtY/1913">TS</a>]
00:31:57 ◼ ► like they don't actually they're they're not selling something and getting money [<a href="https://overcast.fm/+BtuzXUdtY/1917">TS</a>]
00:32:03 ◼ ► and then distributing it the rather there's they're selling something [<a href="https://overcast.fm/+BtuzXUdtY/1923">TS</a>]
00:32:06 ◼ ► they're getting the money and then they're distributing what they already [<a href="https://overcast.fm/+BtuzXUdtY/1926">TS</a>]
00:32:11 ◼ ► took the last money for right it's like it's a pretty complex idea but this is [<a href="https://overcast.fm/+BtuzXUdtY/1931">TS</a>]
00:32:17 ◼ ► this is sort of the genius of basis that he realized that you could do this and [<a href="https://overcast.fm/+BtuzXUdtY/1937">TS</a>]
00:32:21 ◼ ► certainly that's not at all of Amazon's business they have many different you [<a href="https://overcast.fm/+BtuzXUdtY/1941">TS</a>]
00:32:24 ◼ ► know AWS and stuff where they were they can't do this kind of stuff but in in [<a href="https://overcast.fm/+BtuzXUdtY/1944">TS</a>]
00:32:28 ◼ ► the retail side of things there are there are some interesting ways that [<a href="https://overcast.fm/+BtuzXUdtY/1948">TS</a>]
00:32:33 ◼ ► they can that they can make money out of seemingly having no profit right yeah [<a href="https://overcast.fm/+BtuzXUdtY/1953">TS</a>]
00:32:40 ◼ ► it's totally interesting I isn't the story with AWS that day wasn't like [<a href="https://overcast.fm/+BtuzXUdtY/1960">TS</a>]
00:32:46 ◼ ► they've really I mean who knows how many you know you have to take their public [<a href="https://overcast.fm/+BtuzXUdtY/1966">TS</a>]
00:32:49 ◼ ► statements with a grain of salt I guess because maybe there won't be a little [<a href="https://overcast.fm/+BtuzXUdtY/1969">TS</a>]
00:32:53 ◼ ► cagey about what they say publicly but publicly they've said more or less that [<a href="https://overcast.fm/+BtuzXUdtY/1973">TS</a>]
00:32:57 ◼ ► they've built up a lot of infrastructure so that they could handle their peak [<a href="https://overcast.fm/+BtuzXUdtY/1977">TS</a>]
00:33:03 ◼ ► traffic which affect you know for Amazon right retailer is like holidays you know [<a href="https://overcast.fm/+BtuzXUdtY/1983">TS</a>]
00:33:07 ◼ ► like giving night and the day after Thanksgiving and stuff like that so they [<a href="https://overcast.fm/+BtuzXUdtY/1987">TS</a>]
00:33:11 ◼ ► want to be able to handle that they don't want the site to crash [<a href="https://overcast.fm/+BtuzXUdtY/1991">TS</a>]
00:33:14 ◼ ► on Monday the day after Thanksgiving when everybody's trying to order and so [<a href="https://overcast.fm/+BtuzXUdtY/1994">TS</a>]
00:33:19 ◼ ► they've filled out an infrastructure to handle that level of traffic smoothly [<a href="https://overcast.fm/+BtuzXUdtY/1999">TS</a>]
00:33:23 ◼ ► but then you know three hundred and fifty five days a year they don't need [<a href="https://overcast.fm/+BtuzXUdtY/2003">TS</a>]
00:33:28 ◼ ► it right it's sitting there unused and said it will why don't we sell it to [<a href="https://overcast.fm/+BtuzXUdtY/2008">TS</a>]
00:33:33 ◼ ► people other people take advantages yeah I think you're right in that that was [<a href="https://overcast.fm/+BtuzXUdtY/2013">TS</a>]
00:33:38 ◼ ► the initial impetus behind how they do it I don't actually know that their full [<a href="https://overcast.fm/+BtuzXUdtY/2018">TS</a>]
00:33:41 ◼ ► story but I think that that I believe that that's right but but now I imagine [<a href="https://overcast.fm/+BtuzXUdtY/2021">TS</a>]
00:33:46 ◼ ► that they realize that this is actually pretty big business and so we should [<a href="https://overcast.fm/+BtuzXUdtY/2026">TS</a>]
00:33:49 ◼ ► just have these sort of we should just run this is as a separate business aside [<a href="https://overcast.fm/+BtuzXUdtY/2029">TS</a>]
00:33:53 ◼ ► from having having the same excess inventory of storage for win her sick of [<a href="https://overcast.fm/+BtuzXUdtY/2033">TS</a>]
00:34:00 ◼ ► a city for women it's not a holiday season and I think that they do not [<a href="https://overcast.fm/+BtuzXUdtY/2040">TS</a>]
00:34:04 ◼ ► recognize how big of a business this this actually is anything about yeah you [<a href="https://overcast.fm/+BtuzXUdtY/2044">TS</a>]
00:34:08 ◼ ► know you always talk to me with startups I mean the number of them that are built [<a href="https://overcast.fm/+BtuzXUdtY/2048">TS</a>]
00:34:13 ◼ ► on top of Amazon's cloud infrastructure is amazing I mean I don't know what the [<a href="https://overcast.fm/+BtuzXUdtY/2053">TS</a>]
00:34:18 ◼ ► you know the actual percentages but I it's it's way over 50% for me at least [<a href="https://overcast.fm/+BtuzXUdtY/2058">TS</a>]
00:34:24 ◼ ► in startups in San Francisco that it that are built on top of Amazon in some [<a href="https://overcast.fm/+BtuzXUdtY/2064">TS</a>]
00:34:27 ◼ ► way at least and that that's pretty incredible when you think about that and [<a href="https://overcast.fm/+BtuzXUdtY/2067">TS</a>]
00:34:33 ◼ ► when you if if they can keep doing that you know there there's already there's [<a href="https://overcast.fm/+BtuzXUdtY/2073">TS</a>]
00:34:37 ◼ ► big businesses that are built on top of Amazon I don't know if Instagram is [<a href="https://overcast.fm/+BtuzXUdtY/2077">TS</a>]
00:34:40 ◼ ► still using Amazon for for their picture hosting they were and I don't know if [<a href="https://overcast.fm/+BtuzXUdtY/2080">TS</a>]
00:34:46 ◼ ► they've moved over to Facebook's infrastructure sense but it's no [<a href="https://overcast.fm/+BtuzXUdtY/2086">TS</a>]
00:34:49 ◼ ► guarantee that they have and they may still be using Amazon to host all their [<a href="https://overcast.fm/+BtuzXUdtY/2089">TS</a>]
00:34:53 ◼ ► images member when when they first announced iCloud and people sort of [<a href="https://overcast.fm/+BtuzXUdtY/2093">TS</a>]
00:34:58 ◼ ► poked around and and it ended up it was like a retard hodge podge on the back [<a href="https://overcast.fm/+BtuzXUdtY/2098">TS</a>]
00:35:04 ◼ ► end where it had built some of it and it was in Apple datacenters but they were [<a href="https://overcast.fm/+BtuzXUdtY/2104">TS</a>]
00:35:07 ◼ ► also using Windows cloud I know they're using Microsoft for some of it yeah I [<a href="https://overcast.fm/+BtuzXUdtY/2107">TS</a>]
00:35:18 ◼ ► think I think they may have been [<a href="https://overcast.fm/+BtuzXUdtY/2118">TS</a>]
00:35:20 ◼ ► I think Apple is using them in there you know nobody's more security but that's [<a href="https://overcast.fm/+BtuzXUdtY/2120">TS</a>]
00:35:29 ◼ ► pretty tellin ya and it's in that that brings up something that's that's sort [<a href="https://overcast.fm/+BtuzXUdtY/2129">TS</a>]
00:35:33 ◼ ► of some people have have sort of said in response to 20 this Apple and Amazon [<a href="https://overcast.fm/+BtuzXUdtY/2133">TS</a>]
00:35:38 ◼ ► argument it's like so obviously we had the the dead center is down all hits [<a href="https://overcast.fm/+BtuzXUdtY/2138">TS</a>]
00:35:42 ◼ ► high right it was supposedly hacked or whatever but they also they've had it [<a href="https://overcast.fm/+BtuzXUdtY/2142">TS</a>]
00:35:46 ◼ ► was down again yesterday briefly and of course had a lot of issues with with [<a href="https://overcast.fm/+BtuzXUdtY/2146">TS</a>]
00:35:51 ◼ ► various things I message and in all kinds of services iCloud just being down [<a href="https://overcast.fm/+BtuzXUdtY/2151">TS</a>]
00:35:55 ◼ ► so why doesn't Apple take a page from Amazon's book and just spend a sliver of [<a href="https://overcast.fm/+BtuzXUdtY/2155">TS</a>]
00:36:02 ◼ ► their hundred and fifty billion dollars or whatever it is in cash and just go [<a href="https://overcast.fm/+BtuzXUdtY/2162">TS</a>]
00:36:06 ◼ ► crazy on on building out the the infrastructure and so I think the [<a href="https://overcast.fm/+BtuzXUdtY/2166">TS</a>]
00:36:10 ◼ ► argument there is that like you have to assume that they're doing they're doing [<a href="https://overcast.fm/+BtuzXUdtY/2170">TS</a>]
00:36:14 ◼ ► that right I mean I don't know what are your thoughts on that Lake people get so [<a href="https://overcast.fm/+BtuzXUdtY/2174">TS</a>]
00:36:18 ◼ ► frustrated about this and assume that that Apple is like so obsessive about [<a href="https://overcast.fm/+BtuzXUdtY/2178">TS</a>]
00:36:23 ◼ ► holding onto their cash that they don't want to spend it even when there's a [<a href="https://overcast.fm/+BtuzXUdtY/2183">TS</a>]
00:36:26 ◼ ► very obvious thing that they should spend it on I have to assume that [<a href="https://overcast.fm/+BtuzXUdtY/2186">TS</a>]
00:36:29 ◼ ► they're not doing that that we don't know the whole picture like maybe they [<a href="https://overcast.fm/+BtuzXUdtY/2189">TS</a>]
00:36:33 ◼ ► just don't maybe they can't build it fast enough maybe they're spending as [<a href="https://overcast.fm/+BtuzXUdtY/2193">TS</a>]
00:36:35 ◼ ► many billions as they can to do it but they just can't do it at quite a pace [<a href="https://overcast.fm/+BtuzXUdtY/2195">TS</a>]
00:36:39 ◼ ► that they want and need to you yeah that's a good question but with data [<a href="https://overcast.fm/+BtuzXUdtY/2199">TS</a>]
00:36:46 ◼ ► centers they can't keep them secret because they're a man I don't think that [<a href="https://overcast.fm/+BtuzXUdtY/2206">TS</a>]
00:36:51 ◼ ► they can I mean I guess it would depend where you build it but you know like the [<a href="https://overcast.fm/+BtuzXUdtY/2211">TS</a>]
00:36:53 ◼ ► big one in north carolina I mean it's not a secret I mean everybody knows [<a href="https://overcast.fm/+BtuzXUdtY/2213">TS</a>]
00:36:57 ◼ ► where it is and because they're so big like to build a data center that is [<a href="https://overcast.fm/+BtuzXUdtY/2217">TS</a>]
00:37:02 ◼ ► significant to Apple's needs that you know just what just happened to have [<a href="https://overcast.fm/+BtuzXUdtY/2222">TS</a>]
00:37:09 ◼ ► some sort of significant impact on the services they provide is a huge [<a href="https://overcast.fm/+BtuzXUdtY/2229">TS</a>]
00:37:14 ◼ ► undertaking and therefore it requires you know deals you know the whole reason [<a href="https://overcast.fm/+BtuzXUdtY/2234">TS</a>]
00:37:19 ◼ ► I went to North Carolina's the deals from the government [<a href="https://overcast.fm/+BtuzXUdtY/2239">TS</a>]
00:37:22 ◼ ► right tax breaks tax breaks and whatever zoning permits I guess and stuff like [<a href="https://overcast.fm/+BtuzXUdtY/2242">TS</a>]
00:37:28 ◼ ► that that it's not secret because all that stuff you know when you're [<a href="https://overcast.fm/+BtuzXUdtY/2248">TS</a>]
00:37:33 ◼ ► negotiating with the government is all you know has to be out in the open right [<a href="https://overcast.fm/+BtuzXUdtY/2253">TS</a>]
00:37:37 ◼ ► so you know to my knowledge there's not a lot of brick-and-mortar building out [<a href="https://overcast.fm/+BtuzXUdtY/2257">TS</a>]
00:37:44 ◼ ► of of data centers on that Apple's undergoing so I what else could a [<a href="https://overcast.fm/+BtuzXUdtY/2264">TS</a>]
00:37:51 ◼ ► senator Mian well so you know i mean certainly they have to be spending money [<a href="https://overcast.fm/+BtuzXUdtY/2271">TS</a>]
00:37:55 ◼ ► on infrastructure for components right i mean you know there's always talk that [<a href="https://overcast.fm/+BtuzXUdtY/2275">TS</a>]
00:38:01 ◼ ► they've debt while they work with third parties overseas and they built a lot of [<a href="https://overcast.fm/+BtuzXUdtY/2281">TS</a>]
00:38:05 ◼ ► factories for them in sort of built built the infrastructure needed to do a [<a href="https://overcast.fm/+BtuzXUdtY/2285">TS</a>]
00:38:10 ◼ ► lot of what they're doing which is customized and so they're certainly [<a href="https://overcast.fm/+BtuzXUdtY/2290">TS</a>]
00:38:13 ◼ ► spending money on that but it is crazy if they're not spending as much as they [<a href="https://overcast.fm/+BtuzXUdtY/2293">TS</a>]
00:38:19 ◼ ► possibly can on the on the database the data warehouses because everyone knows [<a href="https://overcast.fm/+BtuzXUdtY/2299">TS</a>]
00:38:26 ◼ ► that this is such a problem for them and we see it on it on an almost daily basis [<a href="https://overcast.fm/+BtuzXUdtY/2306">TS</a>]
00:38:29 ◼ ► now and so you know what are they holding onto that money for a net that [<a href="https://overcast.fm/+BtuzXUdtY/2309">TS</a>]
00:38:33 ◼ ► that sort of goes back to again the argument between Amazon and Apple and [<a href="https://overcast.fm/+BtuzXUdtY/2313">TS</a>]
00:38:38 ◼ ► answer the wall street component of it of course Apple started going under fire [<a href="https://overcast.fm/+BtuzXUdtY/2318">TS</a>]
00:38:42 ◼ ► when they when they passed a hundred billion dollars in cash that was [<a href="https://overcast.fm/+BtuzXUdtY/2322">TS</a>]
00:38:47 ◼ ► overseas as we know but you know there there were activist shareholders who are [<a href="https://overcast.fm/+BtuzXUdtY/2327">TS</a>]
00:38:51 ◼ ► rising up and saying you need to distribute this money and they are of [<a href="https://overcast.fm/+BtuzXUdtY/2331">TS</a>]
00:38:54 ◼ ► course now but Amazon doesn't have that problem again because they just aren't [<a href="https://overcast.fm/+BtuzXUdtY/2334">TS</a>]
00:38:59 ◼ ► you know posting these these giants amount of profit and holding on all this [<a href="https://overcast.fm/+BtuzXUdtY/2339">TS</a>]
00:39:03 ◼ ► case I think they do have plenty of several billions I don't know what the [<a href="https://overcast.fm/+BtuzXUdtY/2343">TS</a>]
00:39:06 ◼ ► number is that they actually hold in cash but it's nowhere near what Apple is [<a href="https://overcast.fm/+BtuzXUdtY/2346">TS</a>]
00:39:09 ◼ ► holding and so why exactly is Apple holding onto this you know they say it's [<a href="https://overcast.fm/+BtuzXUdtY/2349">TS</a>]
00:39:13 ◼ ► for for future considerations are you know for defensive purposes but they're [<a href="https://overcast.fm/+BtuzXUdtY/2353">TS</a>]
00:39:18 ◼ ► really not doing anything for it so was it you know you start to wonder at least [<a href="https://overcast.fm/+BtuzXUdtY/2358">TS</a>]
00:39:22 ◼ ► I'm starting to wonder was it a miscalculation to actually build up this [<a href="https://overcast.fm/+BtuzXUdtY/2362">TS</a>]
00:39:27 ◼ ► started asking these hordes of money yes I also feel like they you know I'm not I [<a href="https://overcast.fm/+BtuzXUdtY/2367">TS</a>]
00:39:34 ◼ ► i dont know I don't work for the SEC so I might be off base here but the money [<a href="https://overcast.fm/+BtuzXUdtY/2374">TS</a>]
00:39:38 ◼ ► that they have quote unquote in the bank [<a href="https://overcast.fm/+BtuzXUdtY/2378">TS</a>]
00:39:41 ◼ ► the profits from past 10 years that they're sitting on if they'd spent a [<a href="https://overcast.fm/+BtuzXUdtY/2381">TS</a>]
00:39:46 ◼ ► huge chunk of it in the next like two quarters to build out like another [<a href="https://overcast.fm/+BtuzXUdtY/2386">TS</a>]
00:39:57 ◼ ► doesn't matter where they'd still have to account for that in those quarters [<a href="https://overcast.fm/+BtuzXUdtY/2397">TS</a>]
00:40:01 ◼ ► right so that's not just because they have the money in the bank doesn't mean [<a href="https://overcast.fm/+BtuzXUdtY/2401">TS</a>]
00:40:05 ◼ ► that they don't it wouldn't have an impact on their quarterly earnings [<a href="https://overcast.fm/+BtuzXUdtY/2405">TS</a>]
00:40:09 ◼ ► right-o it would and it would just look bad [<a href="https://overcast.fm/+BtuzXUdtY/2409">TS</a>]
00:40:13 ◼ ► investor wise if if their profit for like two orders from now [<a href="https://overcast.fm/+BtuzXUdtY/2413">TS</a>]
00:40:21 ◼ ► was way lower than it would have been if they hadn't made this massive up-front [<a href="https://overcast.fm/+BtuzXUdtY/2421">TS</a>]
00:40:25 ◼ ► capital expenditure they can explain it in people who are paying attention could [<a href="https://overcast.fm/+BtuzXUdtY/2425">TS</a>]
00:40:31 ◼ ► listen to them and say look this is you know we were doing this for this reason [<a href="https://overcast.fm/+BtuzXUdtY/2431">TS</a>]
00:40:34 ◼ ► and it you know it's in our best interest going forward but we all know [<a href="https://overcast.fm/+BtuzXUdtY/2434">TS</a>]
00:40:39 ◼ ► that people don't really listen to the actually explanations they just CEO [<a href="https://overcast.fm/+BtuzXUdtY/2439">TS</a>]
00:40:43 ◼ ► Apple made you know turned lower than they were expected to you know there [<a href="https://overcast.fm/+BtuzXUdtY/2443">TS</a>]
00:40:47 ◼ ► must be going under and again that just goes back to my thought on why basis is [<a href="https://overcast.fm/+BtuzXUdtY/2447">TS</a>]
00:40:53 ◼ ► a genius with this you know I won't call it manipulation but it's it's the way [<a href="https://overcast.fm/+BtuzXUdtY/2453">TS</a>]
00:40:58 ◼ ► that he's he's playing it right where he doesn't have to worry about spending a [<a href="https://overcast.fm/+BtuzXUdtY/2458">TS</a>]
00:41:03 ◼ ► billion dollars one quarter on a datacenter because that bill like the [<a href="https://overcast.fm/+BtuzXUdtY/2463">TS</a>]
00:41:08 ◼ ► investors aren't used to seeing that billion anyway and they think they'll [<a href="https://overcast.fm/+BtuzXUdtY/2468">TS</a>]
00:41:11 ◼ ► see that billion down the road somewhere as a result they think you'll see two XE [<a href="https://overcast.fm/+BtuzXUdtY/2471">TS</a>]
00:41:15 ◼ ► billion down the road as a result of him sending this billion right now right [<a href="https://overcast.fm/+BtuzXUdtY/2475">TS</a>]
00:41:19 ◼ ► maybe oversimplifying but I see it's the way he's set them up from an investor [<a href="https://overcast.fm/+BtuzXUdtY/2479">TS</a>]
00:41:25 ◼ ► perspective that really does contrast with Apple rebels and never really ever [<a href="https://overcast.fm/+BtuzXUdtY/2485">TS</a>]
00:41:30 ◼ ► even in the old days when they were relatively a small company [<a href="https://overcast.fm/+BtuzXUdtY/2490">TS</a>]
00:41:34 ◼ ► has never been held in high regard by Wall Street right now the stock I think [<a href="https://overcast.fm/+BtuzXUdtY/2494">TS</a>]
00:41:41 ◼ ► has long been was old days long undervalued because they were [<a href="https://overcast.fm/+BtuzXUdtY/2501">TS</a>]
00:41:47 ◼ ► misunderstood company and the company was never really set up to make [<a href="https://overcast.fm/+BtuzXUdtY/2507">TS</a>]
00:41:52 ◼ ► investors happier you know it was always about the product it was always the [<a href="https://overcast.fm/+BtuzXUdtY/2512">TS</a>]
00:41:57 ◼ ► company has always been set up to make great products great experiences and and [<a href="https://overcast.fm/+BtuzXUdtY/2517">TS</a>]
00:42:02 ◼ ► everything else is secondary whereas I think pesos is experience it's like [<a href="https://overcast.fm/+BtuzXUdtY/2522">TS</a>]
00:42:07 ◼ ► what's coming with what's becoming clear to me is that he set the company up in a [<a href="https://overcast.fm/+BtuzXUdtY/2527">TS</a>]
00:42:12 ◼ ► way that it's always been set up to make investors happy or satisfied you know [<a href="https://overcast.fm/+BtuzXUdtY/2532">TS</a>]
00:42:18 ◼ ► that it's not a coincidence not like the way matt Yglesias put it it's almost [<a href="https://overcast.fm/+BtuzXUdtY/2538">TS</a>]
00:42:25 ◼ ► like investors are delusional you know to support its crazy that they support [<a href="https://overcast.fm/+BtuzXUdtY/2545">TS</a>]
00:42:31 ◼ ► Amazon's lack of profitability quarter after quarter whereas I think the truth [<a href="https://overcast.fm/+BtuzXUdtY/2551">TS</a>]
00:42:40 ◼ ► yeah and again I go back to the earlier point where you know basis is obviously [<a href="https://overcast.fm/+BtuzXUdtY/2560">TS</a>]
00:42:46 ◼ ► aware of this because he's put it in the shareholder letters it's like we at some [<a href="https://overcast.fm/+BtuzXUdtY/2566">TS</a>]
00:42:50 ◼ ► point we realize we recognize that we need to turn a profit [<a href="https://overcast.fm/+BtuzXUdtY/2570">TS</a>]
00:42:54 ◼ ► eventually and we're gonna do that down the road you know we may have to check [<a href="https://overcast.fm/+BtuzXUdtY/2574">TS</a>]
00:42:57 ◼ ► in from time to time to make sure that we can do that and maybe that means just [<a href="https://overcast.fm/+BtuzXUdtY/2577">TS</a>]
00:43:01 ◼ ► not spending billions of dollars on infrastructure costs in a one-quarter [<a href="https://overcast.fm/+BtuzXUdtY/2581">TS</a>]
00:43:04 ◼ ► something like that then all of a sudden a show like you know like a five hundred [<a href="https://overcast.fm/+BtuzXUdtY/2584">TS</a>]
00:43:08 ◼ ► million dollar two billion dollar profit of a sudden and then then the very next [<a href="https://overcast.fm/+BtuzXUdtY/2588">TS</a>]
00:43:12 ◼ ► quarter they go right back to building out again and so maybe they do do that [<a href="https://overcast.fm/+BtuzXUdtY/2592">TS</a>]
00:43:14 ◼ ► sometime in the next couple of years or something like that I don't know if [<a href="https://overcast.fm/+BtuzXUdtY/2594">TS</a>]
00:43:19 ◼ ► they're not showing any signs that they're going to do that but yeah I [<a href="https://overcast.fm/+BtuzXUdtY/2599">TS</a>]
00:43:23 ◼ ► think I think you're right that that basis is just playing this sort of thing [<a href="https://overcast.fm/+BtuzXUdtY/2603">TS</a>]
00:43:28 ◼ ► this perfectly that everything is in the future and everything is going to going [<a href="https://overcast.fm/+BtuzXUdtY/2608">TS</a>]
00:43:35 ◼ ► to be going to be rosy at some point but what really is the point is to go back [<a href="https://overcast.fm/+BtuzXUdtY/2615">TS</a>]
00:43:39 ◼ ► to the to the to the idea of what Apple is doing with their money what is the [<a href="https://overcast.fm/+BtuzXUdtY/2619">TS</a>]
00:43:42 ◼ ► point of caring all these profits if you know when you get beyond a certain point [<a href="https://overcast.fm/+BtuzXUdtY/2622">TS</a>]
00:43:46 ◼ ► I mean Apple couldn't buy enough companies nor were they want to because [<a href="https://overcast.fm/+BtuzXUdtY/2626">TS</a>]
00:43:50 ◼ ► it would be a disaster if they spent a hundred billion dollars buying companies [<a href="https://overcast.fm/+BtuzXUdtY/2630">TS</a>]
00:43:52 ◼ ► they're not gonna do that there there are you know probably investing in [<a href="https://overcast.fm/+BtuzXUdtY/2632">TS</a>]
00:43:57 ◼ ► infrastructure as much as they feel comfortable with so they clearly have [<a href="https://overcast.fm/+BtuzXUdtY/2637">TS</a>]
00:44:01 ◼ ► more money than they need for that and so what is the point at the end of the [<a href="https://overcast.fm/+BtuzXUdtY/2641">TS</a>]
00:44:05 ◼ ► day of having all these massive profits beyond it kinda having a major headache [<a href="https://overcast.fm/+BtuzXUdtY/2645">TS</a>]
00:44:09 ◼ ► I mean it's good if if the economy turns that's what that's one argument right [<a href="https://overcast.fm/+BtuzXUdtY/2649">TS</a>]
00:44:13 ◼ ► like you know if the if the economy goes bad again Apple doesn't necessarily have [<a href="https://overcast.fm/+BtuzXUdtY/2653">TS</a>]
00:44:18 ◼ ► to change anything they're doing because they have so much money and they could [<a href="https://overcast.fm/+BtuzXUdtY/2658">TS</a>]
00:44:22 ◼ ► sort of dip into that but Amazon seem to whether you know the last downturn [<a href="https://overcast.fm/+BtuzXUdtY/2662">TS</a>]
00:44:28 ◼ ► perfectly fine I don't know you know what their numbers exactly word then but [<a href="https://overcast.fm/+BtuzXUdtY/2668">TS</a>]
00:44:32 ◼ ► certainly you know they are not going well and I think that's that's the other [<a href="https://overcast.fm/+BtuzXUdtY/2672">TS</a>]
00:44:38 ◼ ► that's another thing that to me through at least threw me off that Amazon is [<a href="https://overcast.fm/+BtuzXUdtY/2678">TS</a>]
00:44:42 ◼ ► that my first impression of Amazon was was formed in the go-go dot com nineties [<a href="https://overcast.fm/+BtuzXUdtY/2682">TS</a>]
00:44:48 ◼ ► right and I i mean I was an early Amazon user but I memorable an Amazon with just [<a href="https://overcast.fm/+BtuzXUdtY/2688">TS</a>]
00:44:53 ◼ ► a bookstore and they were you know had crazy customer service and it and it was [<a href="https://overcast.fm/+BtuzXUdtY/2693">TS</a>]
00:44:58 ◼ ► free shipping for everybody and crazy low prices on the books and they had [<a href="https://overcast.fm/+BtuzXUdtY/2698">TS</a>]
00:45:03 ◼ ► just amazing customer service like if you wanted to send a book back you just [<a href="https://overcast.fm/+BtuzXUdtY/2703">TS</a>]
00:45:07 ◼ ► pay for the shipping to send it back just like a lot of form on the website [<a href="https://overcast.fm/+BtuzXUdtY/2707">TS</a>]
00:45:11 ◼ ► and they'd be like your print this out and UPS guy I'll pick the book up [<a href="https://overcast.fm/+BtuzXUdtY/2711">TS</a>]
00:45:15 ◼ ► tomorrow you know or whatever it is you bought one day started selling more [<a href="https://overcast.fm/+BtuzXUdtY/2715">TS</a>]
00:45:18 ◼ ► stuff right and but the bottom line is that they ran did that run up in the mid [<a href="https://overcast.fm/+BtuzXUdtY/2718">TS</a>]
00:45:25 ◼ ► to end of the nineties they were they were running a real they were losing [<a href="https://overcast.fm/+BtuzXUdtY/2725">TS</a>]
00:45:30 ◼ ► money quarter after quarter after quarter right in a typical dot com [<a href="https://overcast.fm/+BtuzXUdtY/2730">TS</a>]
00:45:35 ◼ ► mindset lots and lots of dot coms had that same I did lose money to build [<a href="https://overcast.fm/+BtuzXUdtY/2735">TS</a>]
00:45:40 ◼ ► market sharon's blah blah blah something well blah blah blah something to happen [<a href="https://overcast.fm/+BtuzXUdtY/2740">TS</a>]
00:45:46 ◼ ► they did kind of turn it around and so yeah they don't make big profits and a [<a href="https://overcast.fm/+BtuzXUdtY/2746">TS</a>]
00:45:52 ◼ ► quarter and sometimes they lose a little sometimes they they make a little but [<a href="https://overcast.fm/+BtuzXUdtY/2752">TS</a>]
00:45:56 ◼ ► it's not at all that it's not at all like it was in the nineties when they [<a href="https://overcast.fm/+BtuzXUdtY/2756">TS</a>]
00:46:03 ◼ ► were burning money they're not be right money right and even you know I brought [<a href="https://overcast.fm/+BtuzXUdtY/2763">TS</a>]
00:46:09 ◼ ► this up briefly in the peaceful lake it's funny that they you know Amazon [<a href="https://overcast.fm/+BtuzXUdtY/2769">TS</a>]
00:46:12 ◼ ► invested in things like pets.com which of course you know is one of the great [<a href="https://overcast.fm/+BtuzXUdtY/2772">TS</a>]
00:46:15 ◼ ► dot com flame outs and even more recently they invest in LivingSocial [<a href="https://overcast.fm/+BtuzXUdtY/2775">TS</a>]
00:46:20 ◼ ► which is they've had to write down their investment and so they're still sticking [<a href="https://overcast.fm/+BtuzXUdtY/2780">TS</a>]
00:46:25 ◼ ► some risks and you know making sort of crazy bets but in the nineties pets [<a href="https://overcast.fm/+BtuzXUdtY/2785">TS</a>]
00:46:28 ◼ ► upcoming was total disaster while they were losing money and they still don't [<a href="https://overcast.fm/+BtuzXUdtY/2788">TS</a>]
00:46:32 ◼ ► go under now we have LivingSocial thing is a total disaster but they're able to [<a href="https://overcast.fm/+BtuzXUdtY/2792">TS</a>]
00:46:38 ◼ ► easily withstand something like that it doesn't even really make it did you know [<a href="https://overcast.fm/+BtuzXUdtY/2798">TS</a>]
00:46:42 ◼ ► they did lose whatever that was a few quarters good that they wrote it down [<a href="https://overcast.fm/+BtuzXUdtY/2802">TS</a>]
00:46:45 ◼ ► you know they posted some some losses but you know investors still don't mind [<a href="https://overcast.fm/+BtuzXUdtY/2805">TS</a>]
00:46:50 ◼ ► it's like they they trust Amazon because the amazon has lived through kind of [<a href="https://overcast.fm/+BtuzXUdtY/2810">TS</a>]
00:46:55 ◼ ► some seemingly impossible things to live through like you were saying in the in [<a href="https://overcast.fm/+BtuzXUdtY/2815">TS</a>]
00:46:59 ◼ ► the sort of the dot-com bubble and you said like basis has been upfront about [<a href="https://overcast.fm/+BtuzXUdtY/2819">TS</a>]
00:47:05 ◼ ► you know he has been you know I Amazon investors are getting exactly what they [<a href="https://overcast.fm/+BtuzXUdtY/2825">TS</a>]
00:47:10 ◼ ► were promised yeah you know but maybe someday there gonna need to turn a [<a href="https://overcast.fm/+BtuzXUdtY/2830">TS</a>]
00:47:14 ◼ ► profit I mean you have to assume that they will it it becomes like it just [<a href="https://overcast.fm/+BtuzXUdtY/2834">TS</a>]
00:47:19 ◼ ► becomes a very weird thing and I would have thought I think I like two years [<a href="https://overcast.fm/+BtuzXUdtY/2839">TS</a>]
00:47:22 ◼ ► ago I think at some point they will have to show profit right like winter I don't [<a href="https://overcast.fm/+BtuzXUdtY/2842">TS</a>]
00:47:29 ◼ ► get it this is madness when are they ever going to actually show a profit [<a href="https://overcast.fm/+BtuzXUdtY/2849">TS</a>]
00:47:33 ◼ ► again are meaningful profit again and you know investors just the stock has [<a href="https://overcast.fm/+BtuzXUdtY/2853">TS</a>]
00:47:38 ◼ ► passed $300 whatever and and they show no signs of slowing down so I don't know [<a href="https://overcast.fm/+BtuzXUdtY/2858">TS</a>]
00:47:43 ◼ ► actually win win that is that they have to do that and basil seems like he's a [<a href="https://overcast.fm/+BtuzXUdtY/2863">TS</a>]
00:47:47 ◼ ► step ahead and that he does know when they'll have to do that [<a href="https://overcast.fm/+BtuzXUdtY/2867">TS</a>]
00:47:50 ◼ ► and I don't know when that is and maybe it's her but I think that it will be [<a href="https://overcast.fm/+BtuzXUdtY/2870">TS</a>]
00:47:55 ◼ ► sometime relatively soon I have to believe that I think so let me take a [<a href="https://overcast.fm/+BtuzXUdtY/2875">TS</a>]
00:48:00 ◼ ► break here and thank our second sponsor second sponsor back from last week is 10 [<a href="https://overcast.fm/+BtuzXUdtY/2880">TS</a>]
00:48:05 ◼ ► tiang and what's tempting is an OBS mobile service no contracts no overage [<a href="https://overcast.fm/+BtuzXUdtY/2885">TS</a>]
00:48:15 ◼ ► penalties they have a bunch of great plans you pick the one that fits the [<a href="https://overcast.fm/+BtuzXUdtY/2895">TS</a>]
00:48:20 ◼ ► right size for you to go over they just move you up to the next year and you pay [<a href="https://overcast.fm/+BtuzXUdtY/2900">TS</a>]
00:48:25 ◼ ► that for the month you were under if you don't use as much voice or data or [<a href="https://overcast.fm/+BtuzXUdtY/2905">TS</a>]
00:48:30 ◼ ► whatever you've signed up for they'll move you down to that here so that you [<a href="https://overcast.fm/+BtuzXUdtY/2910">TS</a>]
00:48:35 ◼ ► save money they have an online calculator go to the website at [<a href="https://overcast.fm/+BtuzXUdtY/2915">TS</a>]
00:48:41 ◼ ► talk-show . 10.com that way don't know you came here from the show even online [<a href="https://overcast.fm/+BtuzXUdtY/2921">TS</a>]
00:48:49 ◼ ► calculator and it's amazing you do you pump in what you're paying now for [<a href="https://overcast.fm/+BtuzXUdtY/2929">TS</a>]
00:48:55 ◼ ► Verizon or AT&T or whatever it is [<a href="https://overcast.fm/+BtuzXUdtY/2935">TS</a>]
00:48:57 ◼ ► sign up do tell them how much data you use how much Voice use and they'll tell [<a href="https://overcast.fm/+BtuzXUdtY/2937">TS</a>]
00:49:03 ◼ ► you how much you'll save per month and if you're using something like AT&T or [<a href="https://overcast.fm/+BtuzXUdtY/2943">TS</a>]
00:49:07 ◼ ► Verizon I I think it's almost guaranteed you gonna say it's kind of amazing when [<a href="https://overcast.fm/+BtuzXUdtY/2947">TS</a>]
00:49:13 ◼ ► you sit there is a catch the catches they don't have the iPhone right now [<a href="https://overcast.fm/+BtuzXUdtY/2953">TS</a>]
00:49:17 ◼ ► that's obviously going to effect a significant number of people listen to [<a href="https://overcast.fm/+BtuzXUdtY/2957">TS</a>]
00:49:21 ◼ ► the show but there's also a lot of people like John Siracusa out there who [<a href="https://overcast.fm/+BtuzXUdtY/2961">TS</a>]
00:49:26 ◼ ► don't have an iPhone don't want to spend the money on $120 a month iPhone plan [<a href="https://overcast.fm/+BtuzXUdtY/2966">TS</a>]
00:49:31 ◼ ► and if that's you I would seriously suggest looking at 10 there an MVNO that [<a href="https://overcast.fm/+BtuzXUdtY/2971">TS</a>]
00:49:36 ◼ ► build on the Sprint network so it's got great coverage all over the country [<a href="https://overcast.fm/+BtuzXUdtY/2976">TS</a>]
00:49:40 ◼ ► whole bunch of great features great support from the same parent company [<a href="https://overcast.fm/+BtuzXUdtY/2980">TS</a>]
00:49:44 ◼ ► that does however the great great domain registrar and like I said last week [<a href="https://overcast.fm/+BtuzXUdtY/2984">TS</a>]
00:49:52 ◼ ► domain registration is notoriously as scummy business however has a great [<a href="https://overcast.fm/+BtuzXUdtY/2992">TS</a>]
00:49:59 ◼ ► mobile services exact same way mobile service is notorious for all sorts of [<a href="https://overcast.fm/+BtuzXUdtY/2999">TS</a>]
00:50:03 ◼ ► hidden charges and overage fees and wow I signed up for $100 a month plan in my [<a href="https://overcast.fm/+BtuzXUdtY/3003">TS</a>]
00:50:08 ◼ ► bill is a hundred and fifty how'd that happen is the complete opposite totally [<a href="https://overcast.fm/+BtuzXUdtY/3008">TS</a>]
00:50:15 ◼ ► great support unbelievable prices so again check them out at talk-show dot [<a href="https://overcast.fm/+BtuzXUdtY/3015">TS</a>]
00:50:20 ◼ ► dot com you'll be surprised at how much money you can see and you can see also [<a href="https://overcast.fm/+BtuzXUdtY/3020">TS</a>]
00:50:28 ◼ ► you can sign up to be notified when they when they do support the iPhone which [<a href="https://overcast.fm/+BtuzXUdtY/3028">TS</a>]
00:50:32 ◼ ► they're working on so boris did you in His peace following up on on Amazon I [<a href="https://overcast.fm/+BtuzXUdtY/3032">TS</a>]
00:50:41 ◼ ► think he focused a lot on the idea of flipping the switch which would be sort [<a href="https://overcast.fm/+BtuzXUdtY/3041">TS</a>]
00:50:46 ◼ ► of switching from breaking into suddenly making big profits I think if there's [<a href="https://overcast.fm/+BtuzXUdtY/3046">TS</a>]
00:50:51 ◼ ► anything I liked his piece of that he made a lot of great pieces Island it up [<a href="https://overcast.fm/+BtuzXUdtY/3051">TS</a>]
00:50:54 ◼ ► but I think maybe flipping the switch is the wrong notion I think it's maybe a [<a href="https://overcast.fm/+BtuzXUdtY/3054">TS</a>]
00:50:59 ◼ ► little bit more like turning this pick it up a little bit you know and yes [<a href="https://overcast.fm/+BtuzXUdtY/3059">TS</a>]
00:51:04 ◼ ► order or the opposite turning the spigot down on the expenditures that they have [<a href="https://overcast.fm/+BtuzXUdtY/3064">TS</a>]
00:51:09 ◼ ► right right it's it's not flipping a switch and suddenly piles of profit [<a href="https://overcast.fm/+BtuzXUdtY/3069">TS</a>]
00:51:16 ◼ ► I think it's turning dials little downturn this little downturn this [<a href="https://overcast.fm/+BtuzXUdtY/3076">TS</a>]
00:51:20 ◼ ► little up you know maybe raised prices just a little maybe decrease [<a href="https://overcast.fm/+BtuzXUdtY/3080">TS</a>]
00:51:27 ◼ ► expenditures on you know capital in ventures expenditures a little bit and [<a href="https://overcast.fm/+BtuzXUdtY/3087">TS</a>]
00:51:32 ◼ ► all of a sudden you know the little better profits turn into a little bit [<a href="https://overcast.fm/+BtuzXUdtY/3092">TS</a>]
00:51:37 ◼ ► more profits suddenly turned into more profits turned into more profits quarter [<a href="https://overcast.fm/+BtuzXUdtY/3097">TS</a>]
00:51:40 ◼ ► after quarter and it's you know or you know like water boiling on the stove you [<a href="https://overcast.fm/+BtuzXUdtY/3100">TS</a>]
00:51:48 ◼ ► know it doesn't just go from cold to hot but eventually it is very hot [<a href="https://overcast.fm/+BtuzXUdtY/3108">TS</a>]
00:51:51 ◼ ► yeah I think I guess there was one of my main problems with horses post was just [<a href="https://overcast.fm/+BtuzXUdtY/3111">TS</a>]
00:51:59 ◼ ► that it seems like to me that he was trying to squeeze Amazon into a easy to [<a href="https://overcast.fm/+BtuzXUdtY/3119">TS</a>]
00:52:07 ◼ ► and Apple business model right where at some point Amazon will have to flip a [<a href="https://overcast.fm/+BtuzXUdtY/3127">TS</a>]
00:52:14 ◼ ► switch meaning turn up the cost I assume of the goods they sell it to make it [<a href="https://overcast.fm/+BtuzXUdtY/3134">TS</a>]
00:52:22 ◼ ► better margins and then to to make better profits what I think he's [<a href="https://overcast.fm/+BtuzXUdtY/3142">TS</a>]
00:52:26 ◼ ► discounting is the fact that they can instead just not spend as much money on [<a href="https://overcast.fm/+BtuzXUdtY/3146">TS</a>]
00:52:30 ◼ ► dated warehouses or things of that nature and the fact that Amazon is in [<a href="https://overcast.fm/+BtuzXUdtY/3150">TS</a>]
00:52:36 ◼ ► there in an increasing number of businesses remember we talked about AWS [<a href="https://overcast.fm/+BtuzXUdtY/3156">TS</a>]
00:52:40 ◼ ► there now getting into this sort of the web threat FreshDirect stuff right where [<a href="https://overcast.fm/+BtuzXUdtY/3160">TS</a>]
00:52:47 ◼ ► they're doing sort of grocery deliveries and I don't know I don't know what the [<a href="https://overcast.fm/+BtuzXUdtY/3167">TS</a>]
00:52:50 ◼ ► margins are on that they're probably not very great but still that's a that's [<a href="https://overcast.fm/+BtuzXUdtY/3170">TS</a>]
00:52:53 ◼ ► another new business that they're getting into and we haven't even talked [<a href="https://overcast.fm/+BtuzXUdtY/3173">TS</a>]
00:52:55 ◼ ► about things like where they could potentially you know they could get into [<a href="https://overcast.fm/+BtuzXUdtY/3175">TS</a>]
00:53:00 ◼ ► the advertising business more certainly they have a lot of interesting user data [<a href="https://overcast.fm/+BtuzXUdtY/3180">TS</a>]
00:53:04 ◼ ► and they have all those credit cards on file they could get more into the in-app [<a href="https://overcast.fm/+BtuzXUdtY/3184">TS</a>]
00:53:08 ◼ ► purchase stuff certainly they already have their own app store they're just [<a href="https://overcast.fm/+BtuzXUdtY/3188">TS</a>]
00:53:12 ◼ ► doing a lot of stuff that i think is is is totally discounted in the notion that [<a href="https://overcast.fm/+BtuzXUdtY/3192">TS</a>]
00:53:17 ◼ ► Amazon is still just the one company that sort of you go to buy anything [<a href="https://overcast.fm/+BtuzXUdtY/3197">TS</a>]
00:53:21 ◼ ► online there's so many different things now so I don't think that it's just a [<a href="https://overcast.fm/+BtuzXUdtY/3201">TS</a>]
00:53:24 ◼ ► matter of flipping a switch I think you're right it's turning [<a href="https://overcast.fm/+BtuzXUdtY/3204">TS</a>]
00:53:27 ◼ ► just tweaking nozzles for all of these different businesses that they have that [<a href="https://overcast.fm/+BtuzXUdtY/3207">TS</a>]
00:53:30 ◼ ► that is the way that if they do eventually decide that they want to show [<a href="https://overcast.fm/+BtuzXUdtY/3210">TS</a>]
00:53:34 ◼ ► profits again at least for a little bit that's how they're going to do it [<a href="https://overcast.fm/+BtuzXUdtY/3214">TS</a>]
00:53:42 ◼ ► backtrack a little bit and like you said you were talking about like the almost [<a href="https://overcast.fm/+BtuzXUdtY/3222">TS</a>]
00:53:48 ◼ ► the perfect storm that the iPhone was for Apple may be one of the reasons [<a href="https://overcast.fm/+BtuzXUdtY/3228">TS</a>]
00:53:55 ◼ ► they've amassed so much cash is that they deserve [<a href="https://overcast.fm/+BtuzXUdtY/3235">TS</a>]
00:53:59 ◼ ► it's almost a surprise to them that the iPhone turned into such a success [<a href="https://overcast.fm/+BtuzXUdtY/3239">TS</a>]
00:54:05 ◼ ► yeah and that three years later that all of that technology software and hardware [<a href="https://overcast.fm/+BtuzXUdtY/3245">TS</a>]
00:54:11 ◼ ► that the iPhone was gave them the perfect opportunity to do the iPad and [<a href="https://overcast.fm/+BtuzXUdtY/3251">TS</a>]
00:54:18 ◼ ► start suddenly after all these years taking massive chunk of the PC industry [<a href="https://overcast.fm/+BtuzXUdtY/3258">TS</a>]
00:54:27 ◼ ► has faced as the years have gone by that this is what has happened is that the [<a href="https://overcast.fm/+BtuzXUdtY/3267">TS</a>]
00:54:32 ◼ ► iPad and tablets in general have have overrun just completely almost overrun [<a href="https://overcast.fm/+BtuzXUdtY/3272">TS</a>]
00:54:39 ◼ ► the sub thousand dollar portable computer market [<a href="https://overcast.fm/+BtuzXUdtY/3279">TS</a>]
00:54:44 ◼ ► yes i think thats I think that you're the first point is definitely right [<a href="https://overcast.fm/+BtuzXUdtY/3284">TS</a>]
00:54:49 ◼ ► where I would imagine that they were surprised at how good the business could [<a href="https://overcast.fm/+BtuzXUdtY/3289">TS</a>]
00:54:54 ◼ ► be because you know they were they were entering a new space jobs you know [<a href="https://overcast.fm/+BtuzXUdtY/3294">TS</a>]
00:54:59 ◼ ► famously said what was what percentage did he want to get like five percent or [<a href="https://overcast.fm/+BtuzXUdtY/3299">TS</a>]
00:55:05 ◼ ► of the of the smartphone million and one percent of the phone market one percent [<a href="https://overcast.fm/+BtuzXUdtY/3305">TS</a>]
00:55:09 ◼ ► of the overall vote phone market or so and by the way while Nokia and some [<a href="https://overcast.fm/+BtuzXUdtY/3309">TS</a>]
00:55:14 ◼ ► other ones had hit great businesses at that point they were nowhere near the [<a href="https://overcast.fm/+BtuzXUdtY/3314">TS</a>]
00:55:17 ◼ ► business that the iPhone is from you know that the carrier at least in the [<a href="https://overcast.fm/+BtuzXUdtY/3317">TS</a>]
00:55:22 ◼ ► you s carrier market where where these things are subsidizing the money gets [<a href="https://overcast.fm/+BtuzXUdtY/3322">TS</a>]
00:55:26 ◼ ► paid up front to Apple and so it's almost like they were it really was the [<a href="https://overcast.fm/+BtuzXUdtY/3326">TS</a>]
00:55:33 ◼ ► Tim Cook was taking over Tim Cook had its streamlined the art of making you [<a href="https://overcast.fm/+BtuzXUdtY/3333">TS</a>]
00:55:39 ◼ ► know beautiful products that people want for a relatively inexpensive you know [<a href="https://overcast.fm/+BtuzXUdtY/3339">TS</a>]
00:55:46 ◼ ► manufacturing write the thing is we we talked about you know I am making [<a href="https://overcast.fm/+BtuzXUdtY/3346">TS</a>]
00:55:51 ◼ ► premium products and so most of the time when you make a premium product you know [<a href="https://overcast.fm/+BtuzXUdtY/3351">TS</a>]
00:55:55 ◼ ► the the problem at a very high level I know this isn't the way that it always [<a href="https://overcast.fm/+BtuzXUdtY/3355">TS</a>]
00:55:59 ◼ ► is but the thing is it it it costs more because it costs more to make great but [<a href="https://overcast.fm/+BtuzXUdtY/3359">TS</a>]
00:56:04 ◼ ► Apple cats so streamlined it getting at getting good at making things like the [<a href="https://overcast.fm/+BtuzXUdtY/3364">TS</a>]
00:56:08 ◼ ► iPhone where it's like they could make this this this thing is so much higher [<a href="https://overcast.fm/+BtuzXUdtY/3368">TS</a>]
00:56:12 ◼ ► quality than everything else they could almost make it the same cost of their [<a href="https://overcast.fm/+BtuzXUdtY/3372">TS</a>]
00:56:15 ◼ ► rivals making these these decidedly less quality phones and so that along with [<a href="https://overcast.fm/+BtuzXUdtY/3375">TS</a>]
00:56:21 ◼ ► the fact that the smartphone market you know Apple timed it perfectly that it [<a href="https://overcast.fm/+BtuzXUdtY/3381">TS</a>]
00:56:25 ◼ ► took off and with the with the sort of the carrier subsidy model already in [<a href="https://overcast.fm/+BtuzXUdtY/3385">TS</a>]
00:56:29 ◼ ► place and I think the carrier sort of underestimated sort of how big something [<a href="https://overcast.fm/+BtuzXUdtY/3389">TS</a>]
00:56:35 ◼ ► like the iPhone and Android phones would would become it really was the perfect [<a href="https://overcast.fm/+BtuzXUdtY/3395">TS</a>]
00:56:40 ◼ ► storm in making this like the absolute perfect product that I don't think that [<a href="https://overcast.fm/+BtuzXUdtY/3400">TS</a>]
00:56:44 ◼ ► anyone can really match again at least anytime soon in terms of just how much [<a href="https://overcast.fm/+BtuzXUdtY/3404">TS</a>]
00:56:50 ◼ ► profit making off of that and think about what Apple's margins used to be [<a href="https://overcast.fm/+BtuzXUdtY/3410">TS</a>]
00:56:55 ◼ ► and then remembered like a few quarters ago when they got up to it was like 42 [<a href="https://overcast.fm/+BtuzXUdtY/3415">TS</a>]
00:57:01 ◼ ► loser like software margins for a hardware company which is crazy [<a href="https://overcast.fm/+BtuzXUdtY/3421">TS</a>]
00:57:05 ◼ ► significantly higher than Microsoft's in Google's which is crazy because of [<a href="https://overcast.fm/+BtuzXUdtY/3425">TS</a>]
00:57:10 ◼ ► Microsoft and Google are primarily overwhelmingly software companies right [<a href="https://overcast.fm/+BtuzXUdtY/3430">TS</a>]
00:57:15 ◼ ► right yeah I'm so I you know I think you're right there with me where I am [<a href="https://overcast.fm/+BtuzXUdtY/3435">TS</a>]
00:57:20 ◼ ► really have no almost zero down i mean you know nothing certain but I have [<a href="https://overcast.fm/+BtuzXUdtY/3440">TS</a>]
00:57:25 ◼ ► zeroed out that innovation is far from over a couples should be good for the [<a href="https://overcast.fm/+BtuzXUdtY/3445">TS</a>]
00:57:30 ◼ ► decades to come in terms of coming up with new products [<a href="https://overcast.fm/+BtuzXUdtY/3450">TS</a>]
00:57:34 ◼ ► in new categories I don't know that they'll ever come up with a new product [<a href="https://overcast.fm/+BtuzXUdtY/3454">TS</a>]
00:57:39 ◼ ► in a new category that of the massive profitability as as the iPhone and iPad [<a href="https://overcast.fm/+BtuzXUdtY/3459">TS</a>]
00:57:45 ◼ ► because you know I just think about the size of the market it almost everybody [<a href="https://overcast.fm/+BtuzXUdtY/3465">TS</a>]
00:57:52 ◼ ► on the planet is gonna have a mobile phone and certainly you know there's a [<a href="https://overcast.fm/+BtuzXUdtY/3472">TS</a>]
00:57:57 ◼ ► huge huge chunk of of the world that can't even dream of buying a $700 phone [<a href="https://overcast.fm/+BtuzXUdtY/3477">TS</a>]
00:58:06 ◼ ► but it doesn't matter to Apple in all for just talking about profitability and [<a href="https://overcast.fm/+BtuzXUdtY/3486">TS</a>]
00:58:11 ◼ ► revenue you know I'm not saying those people no matter but their money doesn't [<a href="https://overcast.fm/+BtuzXUdtY/3491">TS</a>]
00:58:15 ◼ ► matter because if they don't have the money it's irrelevant but in terms of [<a href="https://overcast.fm/+BtuzXUdtY/3495">TS</a>]
00:58:19 ◼ ► the people who could in theory by a $700 so it's it's almost everybody who has [<a href="https://overcast.fm/+BtuzXUdtY/3499">TS</a>]
00:58:29 ◼ ► money is going to at least consider yourself it's a massive market it's a [<a href="https://overcast.fm/+BtuzXUdtY/3509">TS</a>]
00:58:35 ◼ ► very expensive product I think in the grand scheme of things you know $700 [<a href="https://overcast.fm/+BtuzXUdtY/3515">TS</a>]
00:58:40 ◼ ► foner 67 $800 tablet these are expensive things in the grand scheme of things I [<a href="https://overcast.fm/+BtuzXUdtY/3520">TS</a>]
00:58:46 ◼ ► mean compare and contrast with the iPod which really didn't take off until it [<a href="https://overcast.fm/+BtuzXUdtY/3526">TS</a>]
00:58:51 ◼ ► hit like the 199 markers so I mean even then it's expensive for a music player [<a href="https://overcast.fm/+BtuzXUdtY/3531">TS</a>]
00:58:57 ◼ ► and at the end the flip side of what you're saying which is exactly right is [<a href="https://overcast.fm/+BtuzXUdtY/3537">TS</a>]
00:59:03 ◼ ► that the iPhone didn't take off in a meaningful way either until it got down [<a href="https://overcast.fm/+BtuzXUdtY/3543">TS</a>]
00:59:07 ◼ ► $299 because it was subsidized and there's no other there's just no other [<a href="https://overcast.fm/+BtuzXUdtY/3547">TS</a>]
00:59:13 ◼ ► business that's like that right there's not gonna be some some weird entity [<a href="https://overcast.fm/+BtuzXUdtY/3553">TS</a>]
00:59:17 ◼ ► that's not Apple that's going to pay Apple to lower the price of their [<a href="https://overcast.fm/+BtuzXUdtY/3557">TS</a>]
00:59:21 ◼ ► products and in terms of Apple not maybe not knowing quite what they were getting [<a href="https://overcast.fm/+BtuzXUdtY/3561">TS</a>]
00:59:25 ◼ ► into at the outset I think the thing that they knew that they had was they [<a href="https://overcast.fm/+BtuzXUdtY/3565">TS</a>]
00:59:30 ◼ ► had an amazing device right i mean as everybody knows you know the one product [<a href="https://overcast.fm/+BtuzXUdtY/3570">TS</a>]
00:59:35 ◼ ► that Apple introduced that wasn't banned on day one [<a href="https://overcast.fm/+BtuzXUdtY/3575">TS</a>]
00:59:38 ◼ ► as you know for whatever I mean there were some people who thought they were [<a href="https://overcast.fm/+BtuzXUdtY/3578">TS</a>]
00:59:41 ◼ ► going to be a failure but nobody denied that the thing wasn't incredibly cool [<a href="https://overcast.fm/+BtuzXUdtY/3581">TS</a>]
00:59:48 ◼ ► they knew that they had a great product is amazing holy shit you have a computer [<a href="https://overcast.fm/+BtuzXUdtY/3588">TS</a>]
00:59:53 ◼ ► in your hand and it's all touching it was so smooth and everybody knew that [<a href="https://overcast.fm/+BtuzXUdtY/3593">TS</a>]
00:59:57 ◼ ► was great so they were focused on that he knew it they had a great then but [<a href="https://overcast.fm/+BtuzXUdtY/3597">TS</a>]
01:00:01 ◼ ► just think about the way that with the original iPhone in 2007 they actually [<a href="https://overcast.fm/+BtuzXUdtY/3601">TS</a>]
01:00:05 ◼ ► tried to circumvent the traditional carrier subsidy thing where you you [<a href="https://overcast.fm/+BtuzXUdtY/3605">TS</a>]
01:00:11 ◼ ► bought your to buy your iPhone on june 28 thru whatever it was [<a href="https://overcast.fm/+BtuzXUdtY/3611">TS</a>]
01:00:23 ◼ ► $4.99 we bought unsubsidized iPhone and what we've gotten turned forget our [<a href="https://overcast.fm/+BtuzXUdtY/3623">TS</a>]
01:00:34 ◼ ► monthly fee from AT&T was a little bit lower as we didn't have any kind of [<a href="https://overcast.fm/+BtuzXUdtY/3634">TS</a>]
01:00:38 ◼ ► contracting we still had contract with AT&T but we weren't buying subsidized [<a href="https://overcast.fm/+BtuzXUdtY/3638">TS</a>]
01:00:44 ◼ ► devices and I can't help but think it was because they wanted they somehow but [<a href="https://overcast.fm/+BtuzXUdtY/3644">TS</a>]
01:00:48 ◼ ► they don't want to get into that because then it would it would tie them to the [<a href="https://overcast.fm/+BtuzXUdtY/3648">TS</a>]
01:00:55 ◼ ► carriers too much yup that's exactly right and then they that what I think it [<a href="https://overcast.fm/+BtuzXUdtY/3655">TS</a>]
01:01:01 ◼ ► was the real genius was the fact that they stayed exclusive to AT&T for so [<a href="https://overcast.fm/+BtuzXUdtY/3661">TS</a>]
01:01:06 ◼ ► long and they forced the other carriers to sort of been to there will be no [<a href="https://overcast.fm/+BtuzXUdtY/3666">TS</a>]
01:01:12 ◼ ► especially because otherwise it just they would have had to make so many [<a href="https://overcast.fm/+BtuzXUdtY/3672">TS</a>]
01:01:17 ◼ ► sacrifices we would have Verizon and on the back of the phone we would have had [<a href="https://overcast.fm/+BtuzXUdtY/3677">TS</a>]
01:01:20 ◼ ► like little stickers who had all these apps installed like we see any Android [<a href="https://overcast.fm/+BtuzXUdtY/3680">TS</a>]
01:01:24 ◼ ► because you know you remember that Google tried to do the same thing with [<a href="https://overcast.fm/+BtuzXUdtY/3684">TS</a>]
01:01:28 ◼ ► the I think it was the Nexus One the original one where they tried to sell it [<a href="https://overcast.fm/+BtuzXUdtY/3688">TS</a>]
01:01:32 ◼ ► online at full price without can you could pick your carrier and it just did [<a href="https://overcast.fm/+BtuzXUdtY/3692">TS</a>]
01:01:39 ◼ ► not work same ideas didn't work for the same reason because no one's gonna pay [<a href="https://overcast.fm/+BtuzXUdtY/3699">TS</a>]
01:01:43 ◼ ► the problem was exacerbated by the fact that unlike Apple Google doesn't have [<a href="https://overcast.fm/+BtuzXUdtY/3703">TS</a>]
01:01:48 ◼ ► retail stores so like Apple's you know secrets [<a href="https://overcast.fm/+BtuzXUdtY/3708">TS</a>]
01:01:51 ◼ ► access really could you could also say why they could they could pressure the [<a href="https://overcast.fm/+BtuzXUdtY/3711">TS</a>]
01:01:54 ◼ ► carriers as much as they have those stores which moved the iPhone so they [<a href="https://overcast.fm/+BtuzXUdtY/3714">TS</a>]
01:01:58 ◼ ► don't need it really AT&T and Verizon they do that at a certain scale of [<a href="https://overcast.fm/+BtuzXUdtY/3718">TS</a>]
01:02:02 ◼ ► course because you know more people you know by them based on what carrier they [<a href="https://overcast.fm/+BtuzXUdtY/3722">TS</a>]
01:02:07 ◼ ► want but they have their backup plan which is just that will try to push them [<a href="https://overcast.fm/+BtuzXUdtY/3727">TS</a>]
01:02:10 ◼ ► in the stores and you hear that even now they're trying to ramp up the amount [<a href="https://overcast.fm/+BtuzXUdtY/3730">TS</a>]
01:02:14 ◼ ► that are sold through the stores versus through the other day other carrier [<a href="https://overcast.fm/+BtuzXUdtY/3734">TS</a>]
01:02:17 ◼ ► partners yeah I and it it just I think the African how many iPhones sold in the [<a href="https://overcast.fm/+BtuzXUdtY/3737">TS</a>]
01:02:25 ◼ ► first year but is only like a million or something like that yeah yeah if even [<a href="https://overcast.fm/+BtuzXUdtY/3745">TS</a>]
01:02:30 ◼ ► that of something small small I mean it's you know they saw like five million [<a href="https://overcast.fm/+BtuzXUdtY/3750">TS</a>]
01:02:34 ◼ ► in the opening weekend when they come out with a new one like this there was a [<a href="https://overcast.fm/+BtuzXUdtY/3754">TS</a>]
01:02:39 ◼ ► whole year like so late in the grand scheme of things that first iPhone was [<a href="https://overcast.fm/+BtuzXUdtY/3759">TS</a>]
01:02:43 ◼ ► not a hit product in in the mass market it was among people like us probably [<a href="https://overcast.fm/+BtuzXUdtY/3763">TS</a>]
01:02:48 ◼ ► listeners of the show probably you know huge number of people who listen to the [<a href="https://overcast.fm/+BtuzXUdtY/3768">TS</a>]
01:02:51 ◼ ► show probably bottomed original iPhone right but it wasn't a mass market it [<a href="https://overcast.fm/+BtuzXUdtY/3771">TS</a>]
01:02:56 ◼ ► because it was $699 $599 phone even though when you buy a subsidized for [<a href="https://overcast.fm/+BtuzXUdtY/3776">TS</a>]
01:03:03 ◼ ► $1.99 or $99 you are paying the price you pay more right to actually do pay [<a href="https://overcast.fm/+BtuzXUdtY/3783">TS</a>]
01:03:11 ◼ ► more right but it it the psychology the truth is the psychology works yep it [<a href="https://overcast.fm/+BtuzXUdtY/3791">TS</a>]
01:03:16 ◼ ► does people it feels like only buying a hundred $999 iPhone because you're [<a href="https://overcast.fm/+BtuzXUdtY/3796">TS</a>]
01:03:24 ◼ ► monthly bill that has the subsidy charged built-in baked into it that's [<a href="https://overcast.fm/+BtuzXUdtY/3804">TS</a>]
01:03:31 ◼ ► exactly right and so you know it's over now with all this talk of this this [<a href="https://overcast.fm/+BtuzXUdtY/3811">TS</a>]
01:03:34 ◼ ► cheaper iPhone which I don't know anything firsthand about but I do [<a href="https://overcast.fm/+BtuzXUdtY/3814">TS</a>]
01:03:37 ◼ ► secondhand I do think I do think that we're finally in the in the in the point [<a href="https://overcast.fm/+BtuzXUdtY/3817">TS</a>]
01:03:42 ◼ ► at the point where this is legitimate and there will be some sort of you know [<a href="https://overcast.fm/+BtuzXUdtY/3822">TS</a>]
01:03:46 ◼ ► cheaper version of the iPhone because of everything we just talked about but also [<a href="https://overcast.fm/+BtuzXUdtY/3826">TS</a>]
01:03:52 ◼ ► the fact that Apple wants to expand the market they need to have a bigger bigger [<a href="https://overcast.fm/+BtuzXUdtY/3832">TS</a>]
01:03:56 ◼ ► share of the Chinese and Indian and [<a href="https://overcast.fm/+BtuzXUdtY/3836">TS</a>]
01:03:59 ◼ ► and some other different countries where they don't have the subsidy model and so [<a href="https://overcast.fm/+BtuzXUdtY/3839">TS</a>]
01:04:03 ◼ ► that's the only way to do it and you know we'll see what the what the price [<a href="https://overcast.fm/+BtuzXUdtY/3843">TS</a>]
01:04:07 ◼ ► point ends up being of that thing with his what are the things floating around [<a href="https://overcast.fm/+BtuzXUdtY/3847">TS</a>]
01:04:09 ◼ ► now that would be like $300 or something like that unsubsidized [<a href="https://overcast.fm/+BtuzXUdtY/3849">TS</a>]
01:04:14 ◼ ► might be too much money I don't know and I don't cheap might be the wrong way to [<a href="https://overcast.fm/+BtuzXUdtY/3854">TS</a>]
01:04:19 ◼ ► look at it but i i think i think pricing wise what it's going to turn out being [<a href="https://overcast.fm/+BtuzXUdtY/3859">TS</a>]
01:04:23 ◼ ► is the thing that we've all been talking about since the fall of 2007 when the [<a href="https://overcast.fm/+BtuzXUdtY/3863">TS</a>]
01:04:28 ◼ ► first iPod Touch coming came out which is if the iPod Touch only costs three [<a href="https://overcast.fm/+BtuzXUdtY/3868">TS</a>]
01:04:34 ◼ ► hundred and fifty dollars or $300 or whatever [<a href="https://overcast.fm/+BtuzXUdtY/3874">TS</a>]
01:04:37 ◼ ► how much would it cost for them to put a cell chip in there i mean of course it [<a href="https://overcast.fm/+BtuzXUdtY/3877">TS</a>]
01:04:42 ◼ ► would make it thicker let's just assume that putting an extra extra antenna and [<a href="https://overcast.fm/+BtuzXUdtY/3882">TS</a>]
01:04:46 ◼ ► chips etcetera and to make it do [<a href="https://overcast.fm/+BtuzXUdtY/3886">TS</a>]
01:04:49 ◼ ► LTE invoice and you know but it can't be that big you know i mean that has always [<a href="https://overcast.fm/+BtuzXUdtY/3889">TS</a>]
01:04:55 ◼ ► been better than the iPhone but why could they make an iPod touch if its 350 [<a href="https://overcast.fm/+BtuzXUdtY/3895">TS</a>]
01:05:00 ◼ ► bucks why can't they make a cell phone costs and I think that's what this you [<a href="https://overcast.fm/+BtuzXUdtY/3900">TS</a>]
01:05:04 ◼ ► know lower-cost iPhone is an iPod touch that can make phone calls yet so I [<a href="https://overcast.fm/+BtuzXUdtY/3904">TS</a>]
01:05:09 ◼ ► wonder what they'll do that in the you s market where you know the the carrier [<a href="https://overcast.fm/+BtuzXUdtY/3909">TS</a>]
01:05:13 ◼ ► syst dominate certainly they got the carriers to agree to do the ala carte [<a href="https://overcast.fm/+BtuzXUdtY/3913">TS</a>]
01:05:19 ◼ ► iPad stuff originally right like where you could just you can pay one month and [<a href="https://overcast.fm/+BtuzXUdtY/3919">TS</a>]
01:05:24 ◼ ► not pay the next month and was really easy to flip on and off right there was [<a href="https://overcast.fm/+BtuzXUdtY/3924">TS</a>]
01:05:26 ◼ ► no contract I don't know how that will go over with this with this new device [<a href="https://overcast.fm/+BtuzXUdtY/3926">TS</a>]
01:05:32 ◼ ► like will will just not be available in the USA Thompson saying it has to be [<a href="https://overcast.fm/+BtuzXUdtY/3932">TS</a>]
01:05:36 ◼ ► right but there's no way that they would do it and only launched overseas know [<a href="https://overcast.fm/+BtuzXUdtY/3936">TS</a>]
01:05:39 ◼ ► let's come back to that I have some thoughts on that but let me just do the [<a href="https://overcast.fm/+BtuzXUdtY/3939">TS</a>]
01:05:43 ◼ ► final sponsor and we'll come back to them we would be a great way to finish [<a href="https://overcast.fm/+BtuzXUdtY/3943">TS</a>]
01:05:47 ◼ ► the show gonna tell you about batched geo da TCH Ji Hyo they've sponsored to [<a href="https://overcast.fm/+BtuzXUdtY/3947">TS</a>]
01:05:55 ◼ ► maybe the sponsor during fireball sometimes I confusing but I know they've [<a href="https://overcast.fm/+BtuzXUdtY/3955">TS</a>]
01:06:00 ◼ ► come back and they're great it's amazing it's fast easy way to visualize location [<a href="https://overcast.fm/+BtuzXUdtY/3960">TS</a>]
01:06:05 ◼ ► data so one thing you can do if you have like a bunch of addresses in like an [<a href="https://overcast.fm/+BtuzXUdtY/3965">TS</a>]
01:06:10 ◼ ► Excel spreadsheet just copy and paste them in too bad geo website and hit a [<a href="https://overcast.fm/+BtuzXUdtY/3970">TS</a>]
01:06:14 ◼ ► button and boom you have a map with all of those addresses on and i i tried it [<a href="https://overcast.fm/+BtuzXUdtY/3974">TS</a>]
01:06:19 ◼ ► it sounds to get that to me sounds like way too good to be true I figured that [<a href="https://overcast.fm/+BtuzXUdtY/3979">TS</a>]
01:06:23 ◼ ► after they'd spend some time putting the data in a certain way or whatever no you [<a href="https://overcast.fm/+BtuzXUdtY/3983">TS</a>]
01:06:27 ◼ ► just put addresses in hit a button and you get a map with the addresses of all [<a href="https://overcast.fm/+BtuzXUdtY/3987">TS</a>]
01:06:33 ◼ ► sorts of other things you can do to they have an easy way that you can make a [<a href="https://overcast.fm/+BtuzXUdtY/3993">TS</a>]
01:06:36 ◼ ► locator app for your website like if you have a website with locations in a [<a href="https://overcast.fm/+BtuzXUdtY/3996">TS</a>]
01:06:42 ◼ ► restaurant or something like that they have an easy way to do that thing where [<a href="https://overcast.fm/+BtuzXUdtY/4002">TS</a>]
01:06:46 ◼ ► you can find a location near you just go to their website they have fun and very [<a href="https://overcast.fm/+BtuzXUdtY/4006">TS</a>]
01:06:52 ◼ ► simple video that explains the whole product way better than I could do here [<a href="https://overcast.fm/+BtuzXUdtY/4012">TS</a>]
01:06:56 ◼ ► if you have any kind of location data wanna make maps of any kind [<a href="https://overcast.fm/+BtuzXUdtY/4016">TS</a>]
01:07:01 ◼ ► go to bad geo dot com and check out the video and it will explain the whole [<a href="https://overcast.fm/+BtuzXUdtY/4021">TS</a>]
01:07:05 ◼ ► thing it really is amazing it's a fascinating fascinating that can't [<a href="https://overcast.fm/+BtuzXUdtY/4025">TS</a>]
01:07:09 ◼ ► believe how easy it is to make to make maps with this thing so here's my [<a href="https://overcast.fm/+BtuzXUdtY/4029">TS</a>]
01:07:14 ◼ ► thought on low-cost iPhone my thought is why now [<a href="https://overcast.fm/+BtuzXUdtY/4034">TS</a>]
01:07:17 ◼ ► like they have had a low cut they did the the coverage of it has to me for [<a href="https://overcast.fm/+BtuzXUdtY/4037">TS</a>]
01:07:23 ◼ ► years been misguided because they've had a lower cost iPhone four years and years [<a href="https://overcast.fm/+BtuzXUdtY/4043">TS</a>]
01:07:29 ◼ ► ever since they started the strategy of selling the previous year's phone for [<a href="https://overcast.fm/+BtuzXUdtY/4049">TS</a>]
01:07:35 ◼ ► another year at a lower price and then they run to three levels where they had [<a href="https://overcast.fm/+BtuzXUdtY/4055">TS</a>]
01:07:39 ◼ ► 22 year old phone which is now free with a contract and then a year old phone for [<a href="https://overcast.fm/+BtuzXUdtY/4059">TS</a>]
01:07:44 ◼ ► 99 bucks and it gets lost in the tech press because the tech press doesn't [<a href="https://overcast.fm/+BtuzXUdtY/4064">TS</a>]
01:07:49 ◼ ► care about anything other than new products right it's new it's not new [<a href="https://overcast.fm/+BtuzXUdtY/4069">TS</a>]
01:07:52 ◼ ► that's so it doesn't count and somehow that spread to the business version to [<a href="https://overcast.fm/+BtuzXUdtY/4072">TS</a>]
01:07:59 ◼ ► you know like the business journalists also somehow discount the fact [<a href="https://overcast.fm/+BtuzXUdtY/4079">TS</a>]
01:08:04 ◼ ► that Apple has a pretty darn good free with contract phone right now the the [<a href="https://overcast.fm/+BtuzXUdtY/4084">TS</a>]
01:08:10 ◼ ► iPhone 4 but again the key is with contract at how much are they selling it [<a href="https://overcast.fm/+BtuzXUdtY/4090">TS</a>]
01:08:16 ◼ ► for I don't know how much are they selling it for on subspace you know I [<a href="https://overcast.fm/+BtuzXUdtY/4096">TS</a>]
01:08:20 ◼ ► honestly don't know because they don't they don't sell them any less I think [<a href="https://overcast.fm/+BtuzXUdtY/4100">TS</a>]
01:08:23 ◼ ► though I think it's still so so basically they're taking you know a $200 [<a href="https://overcast.fm/+BtuzXUdtY/4103">TS</a>]
01:08:28 ◼ ► thing down to $99 and get a free right so I think what I think not sure about [<a href="https://overcast.fm/+BtuzXUdtY/4108">TS</a>]
01:08:33 ◼ ► this but I think that they're selling it for about 450 or whatever you know it's [<a href="https://overcast.fm/+BtuzXUdtY/4113">TS</a>]
01:08:36 ◼ ► basically full price of the iPhone 5 minus $200 for that thing so I think it [<a href="https://overcast.fm/+BtuzXUdtY/4116">TS</a>]
01:08:42 ◼ ► still four hundred and fifty and I do think that that's still a non-starter in [<a href="https://overcast.fm/+BtuzXUdtY/4122">TS</a>]
01:08:47 ◼ ► some of the other countries around the world and so I don't know what the price [<a href="https://overcast.fm/+BtuzXUdtY/4127">TS</a>]
01:08:53 ◼ ► point they need to get to is I don't know if it's if it's $300 that's that's [<a href="https://overcast.fm/+BtuzXUdtY/4133">TS</a>]
01:08:58 ◼ ► what they're aiming for it maybe two hundred dollars in subsidized that they [<a href="https://overcast.fm/+BtuzXUdtY/4138">TS</a>]
01:09:02 ◼ ► need to get to to actually make it a viable thing and I don't know what kind [<a href="https://overcast.fm/+BtuzXUdtY/4142">TS</a>]
01:09:05 ◼ ► of what kind of corners they'd have to cut to do that but like you're talking [<a href="https://overcast.fm/+BtuzXUdtY/4145">TS</a>]
01:09:08 ◼ ► about how much is the cheapest iPod Touch right now it's got it's like it's [<a href="https://overcast.fm/+BtuzXUdtY/4148">TS</a>]
01:09:17 ◼ ► let's take a look 229 229 that's and that's the 16 gig one that doesn't even [<a href="https://overcast.fm/+BtuzXUdtY/4157">TS</a>]
01:09:25 ◼ ► have a camera doesn't have a rear-facing camera yes so ok so they'd like [<a href="https://overcast.fm/+BtuzXUdtY/4165">TS</a>]
01:09:31 ◼ ► basically shaved 2001 with the camera are $2.99 ok so and does it have more [<a href="https://overcast.fm/+BtuzXUdtY/4171">TS</a>]
01:09:39 ◼ ► surgeries at the same 32 and 64 akka so conceivably they could do a 16 gig sort [<a href="https://overcast.fm/+BtuzXUdtY/4179">TS</a>]
01:09:48 ◼ ► of iPod touch with cellular radio right for I don't know I don't know how much [<a href="https://overcast.fm/+BtuzXUdtY/4188">TS</a>]
01:09:53 ◼ ► it would cost 250 yeah maybe I don't know it seems like 299 is definitely [<a href="https://overcast.fm/+BtuzXUdtY/4193">TS</a>]
01:10:03 ◼ ► I would I can't help but think that the plastic back that all reports about this [<a href="https://overcast.fm/+BtuzXUdtY/4203">TS</a>]
01:10:08 ◼ ► device you know claim and which makes sense of its a point to make it cheaper [<a href="https://overcast.fm/+BtuzXUdtY/4208">TS</a>]
01:10:13 ◼ ► you know has got to be cheaper than a little or no I don't know if the [<a href="https://overcast.fm/+BtuzXUdtY/4213">TS</a>]
01:10:16 ◼ ► aluminum is that significant factor in the $300 costs but right now no I mean [<a href="https://overcast.fm/+BtuzXUdtY/4216">TS</a>]
01:10:22 ◼ ► couple sense here a couple sense there and you know you might have a $250 and [<a href="https://overcast.fm/+BtuzXUdtY/4222">TS</a>]
01:10:29 ◼ ► so i think thats good guess I think that's like it probably will be 299 try [<a href="https://overcast.fm/+BtuzXUdtY/4229">TS</a>]
01:10:35 ◼ ► that at least at first maybe they have to lower to 250 can still do that within [<a href="https://overcast.fm/+BtuzXUdtY/4235">TS</a>]
01:10:38 ◼ ► their their margins have a $250 1 to get you in the door but everybody's gonna [<a href="https://overcast.fm/+BtuzXUdtY/4238">TS</a>]
01:10:45 ◼ ► buy the 299 1 because there's some more stories right yeah but by a mean and you [<a href="https://overcast.fm/+BtuzXUdtY/4245">TS</a>]
01:10:54 ◼ ► know I don't know I don't remember what the margin on the iPod touches but it's [<a href="https://overcast.fm/+BtuzXUdtY/4254">TS</a>]
01:10:57 ◼ ► clearly not what the iPhone is and that's that's gonna be a huge problem [<a href="https://overcast.fm/+BtuzXUdtY/4257">TS</a>]
01:11:02 ◼ ► for wall street again you know where the margin later talked about a few quarters [<a href="https://overcast.fm/+BtuzXUdtY/4262">TS</a>]
01:11:07 ◼ ► ago was that forty-something percent and now all of a sudden it's gonna go below [<a href="https://overcast.fm/+BtuzXUdtY/4267">TS</a>]
01:11:10 ◼ ► you know maybe goes below 30 percent because maybe if they if they do this in [<a href="https://overcast.fm/+BtuzXUdtY/4270">TS</a>]
01:11:16 ◼ ► a successful way at any kind of meaningful volume this is just going to [<a href="https://overcast.fm/+BtuzXUdtY/4276">TS</a>]
01:11:19 ◼ ► drive down the margin and that's what that's unfortunately one of the things [<a href="https://overcast.fm/+BtuzXUdtY/4279">TS</a>]
01:11:23 ◼ ► that Wall Street will focus on and you know say like well you know the the time [<a href="https://overcast.fm/+BtuzXUdtY/4283">TS</a>]
01:11:29 ◼ ► of of riding high for Apple is is over now they're now they're going into [<a href="https://overcast.fm/+BtuzXUdtY/4289">TS</a>]
01:11:34 ◼ ► margin volume business yeah I have some serious questions about how they're [<a href="https://overcast.fm/+BtuzXUdtY/4294">TS</a>]
01:11:40 ◼ ► going to bring this one to market to because I don't know I I'm sure they'll [<a href="https://overcast.fm/+BtuzXUdtY/4300">TS</a>]
01:11:44 ◼ ► say I'm almost like you I can't believe they wouldn't sell in the USA but in the [<a href="https://overcast.fm/+BtuzXUdtY/4304">TS</a>]
01:11:48 ◼ ► USA I don't know how they sell it [<a href="https://overcast.fm/+BtuzXUdtY/4308">TS</a>]
01:11:51 ◼ ► unsubsidized I think right so I think they would I think I think this is all [<a href="https://overcast.fm/+BtuzXUdtY/4311">TS</a>]
01:11:56 ◼ ► coming together there's a lot of pieces out there right and we're in we're [<a href="https://overcast.fm/+BtuzXUdtY/4316">TS</a>]
01:12:00 ◼ ► starting to see them starting to make sense why is Apple pushing for Apple [<a href="https://overcast.fm/+BtuzXUdtY/4320">TS</a>]
01:12:06 ◼ ► stores to sell more iPhones within the store why do they can hear certainly you [<a href="https://overcast.fm/+BtuzXUdtY/4326">TS</a>]
01:12:11 ◼ ► know they're in more control the experience you could argue and it's just [<a href="https://overcast.fm/+BtuzXUdtY/4331">TS</a>]
01:12:15 ◼ ► a better overall experience for the customer and you know they like having [<a href="https://overcast.fm/+BtuzXUdtY/4335">TS</a>]
01:12:19 ◼ ► that relationship and not having to worry about using the carrier certainly [<a href="https://overcast.fm/+BtuzXUdtY/4339">TS</a>]
01:12:22 ◼ ► that's all true but if it's also that they're they're only going to sell this [<a href="https://overcast.fm/+BtuzXUdtY/4342">TS</a>]
01:12:25 ◼ ► through the Apple stores and they want to get people in the mindset that if you [<a href="https://overcast.fm/+BtuzXUdtY/4345">TS</a>]
01:12:30 ◼ ► want to buy an iPhone you go to an Apple store you don't go to Verizon anymore [<a href="https://overcast.fm/+BtuzXUdtY/4350">TS</a>]
01:12:34 ◼ ► AT&T because and now by the way we have this lower-cost new iPhone that comes in [<a href="https://overcast.fm/+BtuzXUdtY/4354">TS</a>]
01:12:41 ◼ ► a variety of colors and it's only available exclusively at the Apple Store [<a href="https://overcast.fm/+BtuzXUdtY/4361">TS</a>]
01:12:46 ◼ ► so come on and get it and so maybe there maybe they're trying to lead into that a [<a href="https://overcast.fm/+BtuzXUdtY/4366">TS</a>]
01:12:50 ◼ ► little bit with this maybe that's interesting I hadn't thought of that but [<a href="https://overcast.fm/+BtuzXUdtY/4370">TS</a>]
01:12:54 ◼ ► that's definitely makes some sense with the again this I guess we know because [<a href="https://overcast.fm/+BtuzXUdtY/4374">TS</a>]
01:13:00 ◼ ► people who work at Apple stores have even said so that it's come down from [<a href="https://overcast.fm/+BtuzXUdtY/4380">TS</a>]
01:13:05 ◼ ► Cupertino that you know that that's the retail Apple stores are supposed to be [<a href="https://overcast.fm/+BtuzXUdtY/4385">TS</a>]
01:13:10 ◼ ► trying to sell more phones right then they had been [<a href="https://overcast.fm/+BtuzXUdtY/4390">TS</a>]
01:13:14 ◼ ► here's the other factors I've been thinking and I gotta write this up for [<a href="https://overcast.fm/+BtuzXUdtY/4394">TS</a>]
01:13:17 ◼ ► daring fireball but long story short why this year to switch to a new phone at [<a href="https://overcast.fm/+BtuzXUdtY/4397">TS</a>]
01:13:25 ◼ ► the low price point as opposed to previous years you know when they've [<a href="https://overcast.fm/+BtuzXUdtY/4405">TS</a>]
01:13:30 ◼ ► phoned and and there's a couple of technical reasons why they might wanna [<a href="https://overcast.fm/+BtuzXUdtY/4410">TS</a>]
01:13:34 ◼ ► do that now which are to me the two big ones I see are the screen to get [<a href="https://overcast.fm/+BtuzXUdtY/4414">TS</a>]
01:13:44 ◼ ► yeah four-inch screen 16 29 aspect ratio and to get everybody on do lightning [<a href="https://overcast.fm/+BtuzXUdtY/4424">TS</a>]
01:13:52 ◼ ► adapter yes that's a big thing that no one really talks about but that's still [<a href="https://overcast.fm/+BtuzXUdtY/4432">TS</a>]
01:13:58 ◼ ► a problem for them right that there's so many devices out there that are not on [<a href="https://overcast.fm/+BtuzXUdtY/4438">TS</a>]
01:14:01 ◼ ► this lightning adapter and it would be if they followed the old-time this is [<a href="https://overcast.fm/+BtuzXUdtY/4441">TS</a>]
01:14:06 ◼ ► just a theory of mine is that they're going to announce this they're gonna [<a href="https://overcast.fm/+BtuzXUdtY/4446">TS</a>]
01:14:14 ◼ ► while obviously the for the old strategy would have been that the four would go [<a href="https://overcast.fm/+BtuzXUdtY/4454">TS</a>]
01:14:19 ◼ ► out the door for a sore ass would be a free so I think that they're gonna get [<a href="https://overcast.fm/+BtuzXUdtY/4459">TS</a>]
01:14:25 ◼ ► rid of the four and the 40 S and it makes sense because it doesn't have the [<a href="https://overcast.fm/+BtuzXUdtY/4465">TS</a>]
01:14:30 ◼ ► foreign screens right that eases developer pain a bit and kind of pushes [<a href="https://overcast.fm/+BtuzXUdtY/4470">TS</a>]
01:14:36 ◼ ► everything forward especially if I don't know who your thoughts on this but if [<a href="https://overcast.fm/+BtuzXUdtY/4476">TS</a>]
01:14:40 ◼ ► you know if they do want to do a different size again slightly larger [<a href="https://overcast.fm/+BtuzXUdtY/4480">TS</a>]
01:14:45 ◼ ► than four-inch screen they have to get rid of the three and a half inch screen [<a href="https://overcast.fm/+BtuzXUdtY/4485">TS</a>]
01:14:50 ◼ ► when they do that right I would think so I don't know I mean only way I could see [<a href="https://overcast.fm/+BtuzXUdtY/4490">TS</a>]
01:14:55 ◼ ► well yeah i just i just think that they want to get rid of that I think it's [<a href="https://overcast.fm/+BtuzXUdtY/4495">TS</a>]
01:15:00 ◼ ► more about the aspect ratio than the size is in theory and the rumors are [<a href="https://overcast.fm/+BtuzXUdtY/4500">TS</a>]
01:15:04 ◼ ► that this low cost you know if that leaks or truth that cases are true it's [<a href="https://overcast.fm/+BtuzXUdtY/4504">TS</a>]
01:15:09 ◼ ► the same size as the iPhone right 55 in theory I could still see them coming out [<a href="https://overcast.fm/+BtuzXUdtY/4509">TS</a>]
01:15:16 ◼ ► with Ace physically smaller phone that maybe would have a three and a half inch [<a href="https://overcast.fm/+BtuzXUdtY/4516">TS</a>]
01:15:22 ◼ ► screen but it would be sixty-nine [<a href="https://overcast.fm/+BtuzXUdtY/4522">TS</a>]
01:15:24 ◼ ► it would be an interesting year yeah you know and then shrink the chin and [<a href="https://overcast.fm/+BtuzXUdtY/4524">TS</a>]
01:15:29 ◼ ► forehead or something like that you know make it so that the device is almost [<a href="https://overcast.fm/+BtuzXUdtY/4529">TS</a>]
01:15:33 ◼ ► just the size of the screen I can see them doing that a lot maybe three and a [<a href="https://overcast.fm/+BtuzXUdtY/4533">TS</a>]
01:15:39 ◼ ► half is too small if it keeps the aspect ratio of 3.7 or something that's [<a href="https://overcast.fm/+BtuzXUdtY/4539">TS</a>]
01:15:45 ◼ ► interesting about that you know I just expected but I wouldn't be shocked you [<a href="https://overcast.fm/+BtuzXUdtY/4545">TS</a>]
01:15:50 ◼ ► know and I think if they come out with a bigger one to address the people who [<a href="https://overcast.fm/+BtuzXUdtY/4550">TS</a>]
01:15:53 ◼ ► really do want a bigger screen again the aspect ratio I think problem certainly [<a href="https://overcast.fm/+BtuzXUdtY/4553">TS</a>]
01:15:58 ◼ ► stay the same 16 I really do think they want to get everybody on that and I [<a href="https://overcast.fm/+BtuzXUdtY/4558">TS</a>]
01:16:02 ◼ ► think getting rid of the thirty port adapter just makes sense I just feel [<a href="https://overcast.fm/+BtuzXUdtY/4562">TS</a>]
01:16:06 ◼ ► like at this point it looks just looks antiquated and so the idea of them [<a href="https://overcast.fm/+BtuzXUdtY/4566">TS</a>]
01:16:10 ◼ ► selling iphone4s for another year just seems outdated yeah I think that that's [<a href="https://overcast.fm/+BtuzXUdtY/4570">TS</a>]
01:16:17 ◼ ► that's all pretty pretty good good reasoning for why they would do it right [<a href="https://overcast.fm/+BtuzXUdtY/4577">TS</a>]
01:16:22 ◼ ► now I also wonder how much because the flying I have my old for us right here [<a href="https://overcast.fm/+BtuzXUdtY/4582">TS</a>]
01:16:27 ◼ ► in front of me because I'm using it for testing I was seven [<a href="https://overcast.fm/+BtuzXUdtY/4587">TS</a>]
01:16:32 ◼ ► it's a premium product right it's got this steel band around the side its [<a href="https://overcast.fm/+BtuzXUdtY/4592">TS</a>]
01:16:39 ◼ ► class front guard class back and it just feels premium and I you know I can't [<a href="https://overcast.fm/+BtuzXUdtY/4599">TS</a>]
01:16:45 ◼ ► help but think I don't know how big a cost of the device the premium materials [<a href="https://overcast.fm/+BtuzXUdtY/4605">TS</a>]
01:16:50 ◼ ► are but you know however much that the chips have gotten cheaper you know [<a href="https://overcast.fm/+BtuzXUdtY/4610">TS</a>]
01:16:57 ◼ ► obviously when the four s came out it was a cutting-edge mobile processor [<a href="https://overcast.fm/+BtuzXUdtY/4617">TS</a>]
01:17:01 ◼ ► cutting-edge mobile GPU and now it's you know two-year-old technology it's [<a href="https://overcast.fm/+BtuzXUdtY/4621">TS</a>]
01:17:06 ◼ ► certainly a lot cheaper but the glass-and-steel still cost the same [<a href="https://overcast.fm/+BtuzXUdtY/4626">TS</a>]
01:17:10 ◼ ► whereas if you really want to get a lower unsubsidized price I feel like [<a href="https://overcast.fm/+BtuzXUdtY/4630">TS</a>]
01:17:16 ◼ ► switching to a new material makes a lot more sense and how much do you think I [<a href="https://overcast.fm/+BtuzXUdtY/4636">TS</a>]
01:17:22 ◼ ► know it's sort of silly but it it you know it it may be silly to discount how [<a href="https://overcast.fm/+BtuzXUdtY/4642">TS</a>]
01:17:26 ◼ ► much sort of customization we we see that you know what the new Moto X right [<a href="https://overcast.fm/+BtuzXUdtY/4646">TS</a>]
01:17:30 ◼ ► where they're they're highly customized just from our perspective right and so [<a href="https://overcast.fm/+BtuzXUdtY/4650">TS</a>]
01:17:35 ◼ ► that's the rumor course with this this low-cost iPhone that they would have [<a href="https://overcast.fm/+BtuzXUdtY/4655">TS</a>]
01:17:38 ◼ ► maybe some different colors and certainly that's been the case of the [<a href="https://overcast.fm/+BtuzXUdtY/4658">TS</a>]
01:17:42 ◼ ► iPods for a long time the iPod nanos at least and so how much do you think that [<a href="https://overcast.fm/+BtuzXUdtY/4662">TS</a>]
01:17:48 ◼ ► that plays into it you think that that's important for them I guess I think it's [<a href="https://overcast.fm/+BtuzXUdtY/4668">TS</a>]
01:17:52 ◼ ► does it is starting to get old I mean I'm just gonna buy a black one but I [<a href="https://overcast.fm/+BtuzXUdtY/4672">TS</a>]
01:17:57 ◼ ► feel like it's starting to get old that you can only get in there and I'm just [<a href="https://overcast.fm/+BtuzXUdtY/4677">TS</a>]
01:18:01 ◼ ► I'm staring here right now ever since we're talking about it a few minutes ago [<a href="https://overcast.fm/+BtuzXUdtY/4681">TS</a>]
01:18:04 ◼ ► at the iPod Touch page and to me it looks more happily to have a array of [<a href="https://overcast.fm/+BtuzXUdtY/4684">TS</a>]
01:18:09 ◼ ► colors of a device and certainly with the new I was seven color palette that [<a href="https://overcast.fm/+BtuzXUdtY/4689">TS</a>]
01:18:16 ◼ ► it sort of is sort of the way they're going so here's a question I wonder I [<a href="https://overcast.fm/+BtuzXUdtY/4696">TS</a>]
01:18:22 ◼ ► and it seems like the rumors are way more about the lower-cost iPhone quote [<a href="https://overcast.fm/+BtuzXUdtY/4702">TS</a>]
01:18:26 ◼ ► unquote iPhone 5 see than the presumed iPhone 5 s new phone but if they come [<a href="https://overcast.fm/+BtuzXUdtY/4706">TS</a>]
01:18:36 ◼ ► out with the lower cost one and it comes in five colors can they still do the [<a href="https://overcast.fm/+BtuzXUdtY/4716">TS</a>]
01:18:42 ◼ ► high end one just in black and white [<a href="https://overcast.fm/+BtuzXUdtY/4722">TS</a>]
01:18:44 ◼ ► I mean presumably they want people to buy them in a preferred with they bought [<a href="https://overcast.fm/+BtuzXUdtY/4724">TS</a>]
01:18:48 ◼ ► the more expensive but I think I know can't think about what they did with the [<a href="https://overcast.fm/+BtuzXUdtY/4728">TS</a>]
01:18:54 ◼ ► regular iPod and then the iPod nanos rights of the nanos run colors the [<a href="https://overcast.fm/+BtuzXUdtY/4734">TS</a>]
01:18:59 ◼ ► iPod's remained in black and white right there are you 21 or whatever but yeah so [<a href="https://overcast.fm/+BtuzXUdtY/4739">TS</a>]
01:19:07 ◼ ► I don't know I have no idea but I would I would guess that maybe they do that [<a href="https://overcast.fm/+BtuzXUdtY/4747">TS</a>]
01:19:10 ◼ ► and then in the selling point on the higher end is you know like like you're [<a href="https://overcast.fm/+BtuzXUdtY/4750">TS</a>]
01:19:15 ◼ ► saying this is this is the premium product the city's top of the line the [<a href="https://overcast.fm/+BtuzXUdtY/4755">TS</a>]
01:19:18 ◼ ► best we can do for everything it has a faster processor more RAM which they [<a href="https://overcast.fm/+BtuzXUdtY/4758">TS</a>]
01:19:23 ◼ ► won't talk about and it may be it has you know that the fingerprint reader has [<a href="https://overcast.fm/+BtuzXUdtY/4763">TS</a>]
01:19:28 ◼ ► it been rumored and that's like that sort of the marquee differentiator of [<a href="https://overcast.fm/+BtuzXUdtY/4768">TS</a>]
01:19:34 ◼ ► like what's new about this device and have a better camera for saturday right [<a href="https://overcast.fm/+BtuzXUdtY/4774">TS</a>]
01:19:38 ◼ ► and so maybe they do just rely on that if you want this go with this if you're [<a href="https://overcast.fm/+BtuzXUdtY/4778">TS</a>]
01:19:44 ◼ ► interested in sort of personalization and fun and colors and maybe they think [<a href="https://overcast.fm/+BtuzXUdtY/4784">TS</a>]
01:19:48 ◼ ► that's more the teen market or you know some of their market that they're going [<a href="https://overcast.fm/+BtuzXUdtY/4788">TS</a>]
01:19:53 ◼ ► after maybe they think that they can differentiate those enough for it where [<a href="https://overcast.fm/+BtuzXUdtY/4793">TS</a>]
01:19:57 ◼ ► it makes sense to do that I wonder too I would love to know I don't know how who [<a href="https://overcast.fm/+BtuzXUdtY/4797">TS</a>]
01:20:01 ◼ ► who could do such a survey but I would love to know what percentage of iPhone [<a href="https://overcast.fm/+BtuzXUdtY/4801">TS</a>]
01:20:07 ◼ ► users use a case with their device yeah that would be interesting to know i you [<a href="https://overcast.fm/+BtuzXUdtY/4807">TS</a>]
01:20:12 ◼ ► know i mean I'm certainly i mean the the the the heart of the bubbles for this [<a href="https://overcast.fm/+BtuzXUdtY/4812">TS</a>]
01:20:18 ◼ ► where in you know in San Francisco it's sort of considered I i've had discussion [<a href="https://overcast.fm/+BtuzXUdtY/4818">TS</a>]
01:20:23 ◼ ► of many people search considered a full body is the case right and and in you [<a href="https://overcast.fm/+BtuzXUdtY/4823">TS</a>]
01:20:27 ◼ ► even remember the event all those years ago and attended Gatorade [<a href="https://overcast.fm/+BtuzXUdtY/4827">TS</a>]
01:20:32 ◼ ► you ask them jerry is anyone using the bumper and they all you know jobs and [<a href="https://overcast.fm/+BtuzXUdtY/4832">TS</a>]
01:20:36 ◼ ► and cooking everyone pulled out their right hands they put out their populist [<a href="https://overcast.fm/+BtuzXUdtY/4836">TS</a>]
01:20:41 ◼ ► iPhones and so I feel like it's sort of a faux pas in like in the tax year to [<a href="https://overcast.fm/+BtuzXUdtY/4841">TS</a>]
01:20:46 ◼ ► use a case I certainly don't use a case except when I'm using the Mophie to to [<a href="https://overcast.fm/+BtuzXUdtY/4846">TS</a>]
01:20:50 ◼ ► recharge it but I would bet that it's much much higher percentage use a case [<a href="https://overcast.fm/+BtuzXUdtY/4850">TS</a>]
01:20:56 ◼ ► in the day today you know regular regular world out there [<a href="https://overcast.fm/+BtuzXUdtY/4856">TS</a>]
01:21:00 ◼ ► yeah we've had the family we're down at Disney World last week and I was doing [<a href="https://overcast.fm/+BtuzXUdtY/4860">TS</a>]
01:21:08 ◼ ► two things I was caught a whole bunch of pictures of people using tablets as [<a href="https://overcast.fm/+BtuzXUdtY/4868">TS</a>]
01:21:14 ◼ ► cameras nice to say to have went to most of them overwhelmingly none surprise [<a href="https://overcast.fm/+BtuzXUdtY/4874">TS</a>]
01:21:18 ◼ ► where iPad but I saw a few obviously 16 2910 which meant that they were you know [<a href="https://overcast.fm/+BtuzXUdtY/4878">TS</a>]
01:21:25 ◼ ► Android tablets of some sort but I was also I just was looking I Drive had this [<a href="https://overcast.fm/+BtuzXUdtY/4885">TS</a>]
01:21:31 ◼ ► on my mind thinking about this plastic iPhone I was looking at people's iPhones [<a href="https://overcast.fm/+BtuzXUdtY/4891">TS</a>]
01:21:34 ◼ ► and disney world which i think is a pretty good cross-section of the whole [<a href="https://overcast.fm/+BtuzXUdtY/4894">TS</a>]
01:21:41 ◼ ► Disney World in July boy i i would guess I seventy-five eighty percent of the [<a href="https://overcast.fm/+BtuzXUdtY/4901">TS</a>]
01:21:46 ◼ ► people had him in the case really really sad that can and do you think that that [<a href="https://overcast.fm/+BtuzXUdtY/4906">TS</a>]
01:21:56 ◼ ► goes back to the idea of personalization or protecting it could be both of course [<a href="https://overcast.fm/+BtuzXUdtY/4916">TS</a>]
01:22:01 ◼ ► I think it's both because the cases that I was seeing where especially you know [<a href="https://overcast.fm/+BtuzXUdtY/4921">TS</a>]
01:22:06 ◼ ► don't think it's surprise especially the cases that women had we're very colorful [<a href="https://overcast.fm/+BtuzXUdtY/4926">TS</a>]
01:22:16 ◼ ► just everything anyway you know any almost any sort of just go and look at [<a href="https://overcast.fm/+BtuzXUdtY/4936">TS</a>]
01:22:22 ◼ ► the wall of of of cases like at the Apple store and i stood you know you see [<a href="https://overcast.fm/+BtuzXUdtY/4942">TS</a>]
01:22:28 ◼ ► somebody's brain every one of those I wonder though with the plastic if it's a [<a href="https://overcast.fm/+BtuzXUdtY/4948">TS</a>]
01:22:32 ◼ ► plastic iPhone will people see the need to buy a case for ya yeah potentially [<a href="https://overcast.fm/+BtuzXUdtY/4952">TS</a>]
01:22:38 ◼ ► not though I don't know why would I think this is one of the things will be [<a href="https://overcast.fm/+BtuzXUdtY/4958">TS</a>]
01:22:43 ◼ ► surprised about where people do anyway yeah because it's it's not like we [<a href="https://overcast.fm/+BtuzXUdtY/4963">TS</a>]
01:22:46 ◼ ► haven't had plastic I funds before we had 23 dry 3ds and I seem to recall that [<a href="https://overcast.fm/+BtuzXUdtY/4966">TS</a>]
01:22:51 ◼ ► in the real world most people put him in cases yeah they just like when I first [<a href="https://overcast.fm/+BtuzXUdtY/4971">TS</a>]
01:22:56 ◼ ► got an iPhone ridiculously I used to I insisted on getting one of those over [<a href="https://overcast.fm/+BtuzXUdtY/4976">TS</a>]
01:23:04 ◼ ► screens on the planting protector thing it's like any like I can't imagine doing [<a href="https://overcast.fm/+BtuzXUdtY/4984">TS</a>]
01:23:09 ◼ ► that right now but it was just in my head that I need to do that each time [<a href="https://overcast.fm/+BtuzXUdtY/4989">TS</a>]
01:23:13 ◼ ► like I was protecting it and so I just did that until until they start to talk [<a href="https://overcast.fm/+BtuzXUdtY/4993">TS</a>]
01:23:17 ◼ ► about whatever the allele phobic we are exactly [<a href="https://overcast.fm/+BtuzXUdtY/4997">TS</a>]
01:23:22 ◼ ► coding yeah yeah you know and I'm over the years I've always had good luck with [<a href="https://overcast.fm/+BtuzXUdtY/5002">TS</a>]
01:23:28 ◼ ► my phones not carry him in a case I've never had one shattered and neither of [<a href="https://overcast.fm/+BtuzXUdtY/5008">TS</a>]
01:23:32 ◼ ► which everyone thinks is so strange this one I guess is nine months old one tiny [<a href="https://overcast.fm/+BtuzXUdtY/5012">TS</a>]
01:23:38 ◼ ► scratch on the glass and it's only visible against like a white background [<a href="https://overcast.fm/+BtuzXUdtY/5018">TS</a>]
01:23:43 ◼ ► and only when I heard it at a certain angle it's a tiny little hairline [<a href="https://overcast.fm/+BtuzXUdtY/5023">TS</a>]
01:23:49 ◼ ► scratch a mean it's almost I would I would venture to say it the screen at [<a href="https://overcast.fm/+BtuzXUdtY/5029">TS</a>]
01:23:55 ◼ ► least is would be qualified as near mint and that's no I'm not particularly [<a href="https://overcast.fm/+BtuzXUdtY/5035">TS</a>]
01:24:00 ◼ ► careful with it but i dont I think a big part of it is the personalization I do [<a href="https://overcast.fm/+BtuzXUdtY/5040">TS</a>]
01:24:05 ◼ ► think I think people are cautious cuz I think people see that their iPhone is [<a href="https://overcast.fm/+BtuzXUdtY/5045">TS</a>]
01:24:09 ◼ ► you know a valuable thing that you carry around in your pocket [<a href="https://overcast.fm/+BtuzXUdtY/5049">TS</a>]
01:24:13 ◼ ► so it's certainly part of it but I think the customization and personalization is [<a href="https://overcast.fm/+BtuzXUdtY/5053">TS</a>]
01:24:17 ◼ ► a huge part of it yeah I mean and and the fact that Apple carries so many [<a href="https://overcast.fm/+BtuzXUdtY/5057">TS</a>]
01:24:22 ◼ ► cases in their stores like you were saying says that they recognize that too [<a href="https://overcast.fm/+BtuzXUdtY/5062">TS</a>]
01:24:28 ◼ ► totaling so it's wrapped up I will say this though just one more thing on the [<a href="https://overcast.fm/+BtuzXUdtY/5068">TS</a>]
01:24:33 ◼ ► future and what's coming up you know next year or two from Apple just tossing [<a href="https://overcast.fm/+BtuzXUdtY/5073">TS</a>]
01:24:38 ◼ ► it out there like I know that the watch the iWatch is certainly one that a lot [<a href="https://overcast.fm/+BtuzXUdtY/5078">TS</a>]
01:24:41 ◼ ► of people are you know seemed almost expect in a business week and others [<a href="https://overcast.fm/+BtuzXUdtY/5081">TS</a>]
01:24:46 ◼ ► have literally reported that there are people working on it right I just don't [<a href="https://overcast.fm/+BtuzXUdtY/5086">TS</a>]
01:24:51 ◼ ► see like finding it back in with your thing about this you know another iPhone [<a href="https://overcast.fm/+BtuzXUdtY/5091">TS</a>]
01:24:54 ◼ ► size hit I just don't see how anything that you wear on your rest no matter [<a href="https://overcast.fm/+BtuzXUdtY/5094">TS</a>]
01:25:00 ◼ ► could possibly grow into an iPhone sized business cuz I don't see how it could [<a href="https://overcast.fm/+BtuzXUdtY/5100">TS</a>]
01:25:04 ◼ ► possibly cost more than 200 bucks like no I don't think anybody is going to buy [<a href="https://overcast.fm/+BtuzXUdtY/5104">TS</a>]
01:25:09 ◼ ► if it costs as much as an iPhone which is six seven eight hundred dollars some [<a href="https://overcast.fm/+BtuzXUdtY/5109">TS</a>]
01:25:14 ◼ ► people would buy it but nowhere near as many people would buy it is who bought [<a href="https://overcast.fm/+BtuzXUdtY/5114">TS</a>]
01:25:18 ◼ ► an iPhone so it wouldn't be couldn't even at the same prices the iPhone [<a href="https://overcast.fm/+BtuzXUdtY/5118">TS</a>]
01:25:21 ◼ ► wouldn't make nearly the amount of money the outcome does it matter how cold it [<a href="https://overcast.fm/+BtuzXUdtY/5121">TS</a>]
01:25:26 ◼ ► and if it's a hundred and fifty bucks then there's no waiting to there's no [<a href="https://overcast.fm/+BtuzXUdtY/5126">TS</a>]
01:25:30 ◼ ► way for you know even if everybody who bought an iPhone but one which would be [<a href="https://overcast.fm/+BtuzXUdtY/5130">TS</a>]
01:25:36 ◼ ► it wouldn't make it nearly as much money as it doesn't cost us want to watch can [<a href="https://overcast.fm/+BtuzXUdtY/5136">TS</a>]
01:25:40 ◼ ► can be the iPhone financial I totally agree and this this has been sort of an [<a href="https://overcast.fm/+BtuzXUdtY/5140">TS</a>]
01:25:45 ◼ ► interesting discussion just amongst watch people right because it's like [<a href="https://overcast.fm/+BtuzXUdtY/5145">TS</a>]
01:25:48 ◼ ► watches are considered for many people a premium product you know you can buy [<a href="https://overcast.fm/+BtuzXUdtY/5148">TS</a>]
01:25:53 ◼ ► watch that's that's tens of thousands of dollars and many people buy watches that [<a href="https://overcast.fm/+BtuzXUdtY/5153">TS</a>]
01:25:58 ◼ ► are least several hundred dollars if not a thousand dollars but that's a premium [<a href="https://overcast.fm/+BtuzXUdtY/5158">TS</a>]
01:26:03 ◼ ► product and could Apple potentially tap that market I don't know I think that [<a href="https://overcast.fm/+BtuzXUdtY/5163">TS</a>]
01:26:08 ◼ ► this watch I think it's it's almost like an away a misnomer to call the watch [<a href="https://overcast.fm/+BtuzXUdtY/5168">TS</a>]
01:26:11 ◼ ► right it's it's going to be something that that lives on your wrist and is [<a href="https://overcast.fm/+BtuzXUdtY/5171">TS</a>]
01:26:16 ◼ ► doing all different kinds of things beyond telling time it will make it may [<a href="https://overcast.fm/+BtuzXUdtY/5176">TS</a>]
01:26:20 ◼ ► look like a watch but it's really going to be a screen that's on your wrist a [<a href="https://overcast.fm/+BtuzXUdtY/5180">TS</a>]
01:26:24 ◼ ► screen and a monitor for different health things or whatever [<a href="https://overcast.fm/+BtuzXUdtY/5184">TS</a>]
01:26:26 ◼ ► that that resides on your wrist the computer on your wrist it's fun to watch [<a href="https://overcast.fm/+BtuzXUdtY/5186">TS</a>]
01:26:30 ◼ ► and so I think I think that they'll have problems trying to go after you know [<a href="https://overcast.fm/+BtuzXUdtY/5190">TS</a>]
01:26:35 ◼ ► that the nice watches of the world [<a href="https://overcast.fm/+BtuzXUdtY/5195">TS</a>]
01:26:38 ◼ ► certainly because the design will have to be different than than what those are [<a href="https://overcast.fm/+BtuzXUdtY/5198">TS</a>]
01:26:42 ◼ ► of course and so I do think you're right I think that they'll probably do you [<a href="https://overcast.fm/+BtuzXUdtY/5202">TS</a>]
01:26:47 ◼ ► know $200 $300 price point at most for something like that and the lead singer [<a href="https://overcast.fm/+BtuzXUdtY/5207">TS</a>]
01:26:55 ◼ ► heard on that you never know for sure but I it's a ways out still like we're [<a href="https://overcast.fm/+BtuzXUdtY/5215">TS</a>]
01:27:01 ◼ ► yeah I think there's a to go into rumor rumor central here but the let the [<a href="https://overcast.fm/+BtuzXUdtY/5221">TS</a>]
01:27:08 ◼ ► latest things like I've heard that some sort of television product not the not [<a href="https://overcast.fm/+BtuzXUdtY/5228">TS</a>]
01:27:15 ◼ ► some not necessarily a television screen but something and could be coming as [<a href="https://overcast.fm/+BtuzXUdtY/5235">TS</a>]
01:27:20 ◼ ► soon as as soon as this November and I think there's there's some surprises [<a href="https://overcast.fm/+BtuzXUdtY/5240">TS</a>]
01:27:26 ◼ ► there about about what it could actually be and I don't know this for sure yet [<a href="https://overcast.fm/+BtuzXUdtY/5246">TS</a>]
01:27:29 ◼ ► but there's been whispers about and I have something to write anything about [<a href="https://overcast.fm/+BtuzXUdtY/5249">TS</a>]
01:27:33 ◼ ► it but it's just there's with Chris out there that that the interaction with it [<a href="https://overcast.fm/+BtuzXUdtY/5253">TS</a>]
01:27:38 ◼ ► could be like the interesting thing people talk about voice but I think that [<a href="https://overcast.fm/+BtuzXUdtY/5258">TS</a>]
01:27:41 ◼ ► that's that might be out the window and there might be something some new way to [<a href="https://overcast.fm/+BtuzXUdtY/5261">TS</a>]
01:27:44 ◼ ► interact with whatever this thing is just think price and that's a way that [<a href="https://overcast.fm/+BtuzXUdtY/5264">TS</a>]
01:27:48 ◼ ► both in a way both of those mythical products are are like the iPhone maybe [<a href="https://overcast.fm/+BtuzXUdtY/5268">TS</a>]
01:27:53 ◼ ► and to your point about though watch not really being a watch and not really [<a href="https://overcast.fm/+BtuzXUdtY/5273">TS</a>]
01:27:58 ◼ ► competing with Seiko and Rolex or something like that [<a href="https://overcast.fm/+BtuzXUdtY/5278">TS</a>]
01:28:03 ◼ ► it wouldn't be any more of a watch than the iPhone is just a phone radio exactly [<a href="https://overcast.fm/+BtuzXUdtY/5283">TS</a>]
01:28:08 ◼ ► really about putting a tiny laptop in your pocket pocket it was a computer not [<a href="https://overcast.fm/+BtuzXUdtY/5288">TS</a>]
01:28:14 ◼ ► a phone just happen to also make phone calls I think the right to be the same [<a href="https://overcast.fm/+BtuzXUdtY/5294">TS</a>]
01:28:18 ◼ ► way and that's that's that's the mistake one of the main mistakes people make [<a href="https://overcast.fm/+BtuzXUdtY/5298">TS</a>]
01:28:21 ◼ ► about happened i think is that like they think like oh they're gonna go after [<a href="https://overcast.fm/+BtuzXUdtY/5301">TS</a>]
01:28:24 ◼ ► going to go after the phone category they're gonna go after the television [<a href="https://overcast.fm/+BtuzXUdtY/5304">TS</a>]
01:28:27 ◼ ► category they're gonna go after the watch category both the way that they [<a href="https://overcast.fm/+BtuzXUdtY/5307">TS</a>]
01:28:30 ◼ ► think about it is they're not going after any specific like category being [<a href="https://overcast.fm/+BtuzXUdtY/5310">TS</a>]
01:28:35 ◼ ► pigeonholed into going after something because if they do that that's going to [<a href="https://overcast.fm/+BtuzXUdtY/5315">TS</a>]
01:28:39 ◼ ► be a failure of a product it's just something they're trying to like certain [<a href="https://overcast.fm/+BtuzXUdtY/5319">TS</a>]
01:28:42 ◼ ► extend what people already know and make it slightly better the only way that [<a href="https://overcast.fm/+BtuzXUdtY/5322">TS</a>]
01:28:45 ◼ ► Apple succeeds at all these things that make it so much better that people have [<a href="https://overcast.fm/+BtuzXUdtY/5325">TS</a>]
01:28:48 ◼ ► to buy this this new thing that isn't that isn't just to watch it's not just [<a href="https://overcast.fm/+BtuzXUdtY/5328">TS</a>]
01:28:52 ◼ ► the phone and it's not just a television yeah and I think your point on the TV [<a href="https://overcast.fm/+BtuzXUdtY/5332">TS</a>]
01:28:56 ◼ ► and the interaction model that's really the key to the iPhone's success was dead [<a href="https://overcast.fm/+BtuzXUdtY/5336">TS</a>]
01:29:01 ◼ ► everybody's idea prior to the iPhone 4 how to make a more computer II [<a href="https://overcast.fm/+BtuzXUdtY/5341">TS</a>]
01:29:06 ◼ ► smartphone was bad more and more buttons and lots of buttons and keyboards and [<a href="https://overcast.fm/+BtuzXUdtY/5346">TS</a>]
01:29:12 ◼ ► wheels and it's the interaction model that was really the breakthrough with [<a href="https://overcast.fm/+BtuzXUdtY/5352">TS</a>]
01:29:16 ◼ ► the iPhone where it's no we're gonna get rid of all the buttons except for one [<a href="https://overcast.fm/+BtuzXUdtY/5356">TS</a>]
01:29:19 ◼ ► and you just touch stuff on screen and we're gonna do it on software and I feel [<a href="https://overcast.fm/+BtuzXUdtY/5359">TS</a>]
01:29:24 ◼ ► like there's I don't know what it is you know I'm terrible at pled conceiving [<a href="https://overcast.fm/+BtuzXUdtY/5364">TS</a>]
01:29:29 ◼ ► ideas like that but I do think that's maybe where the future of Apple TV is i [<a href="https://overcast.fm/+BtuzXUdtY/5369">TS</a>]
01:29:33 ◼ ► think is right now if there's one thing that's the most disappointing that Apple [<a href="https://overcast.fm/+BtuzXUdtY/5373">TS</a>]
01:29:35 ◼ ► TV is that it still is just the interaction model is infrared remote [<a href="https://overcast.fm/+BtuzXUdtY/5375">TS</a>]
01:29:41 ◼ ► with up down left right yes right and you know they're trying to date just [<a href="https://overcast.fm/+BtuzXUdtY/5381">TS</a>]
01:29:45 ◼ ► started doing you to thinking right with the so you can use your phone for it but [<a href="https://overcast.fm/+BtuzXUdtY/5385">TS</a>]
01:29:50 ◼ ► I still think that there's there's gonna be a different way whether it's whether [<a href="https://overcast.fm/+BtuzXUdtY/5390">TS</a>]
01:29:54 ◼ ► it's touch your movement or something there's going to be a way that they that [<a href="https://overcast.fm/+BtuzXUdtY/5394">TS</a>]
01:29:57 ◼ ► they break ya break the mold of the way that you interact [<a href="https://overcast.fm/+BtuzXUdtY/5397">TS</a>]
01:29:57 ◼ ► they break ya break the mold of the way that you interact [<a href="https://overcast.fm/+BtuzXUdtY/5397">TS</a>]
01:30:00 ◼ ► right I think that the breakthrough has to be more me maybe it's still a remote [<a href="https://overcast.fm/+BtuzXUdtY/5400">TS</a>]
01:30:03 ◼ ► of some sort I don't know how I get a bad idea of magic but it's got to be [<a href="https://overcast.fm/+BtuzXUdtY/5403">TS</a>]
01:30:07 ◼ ► more than just switching from infrared the Bluetooth it's gotta be you know [<a href="https://overcast.fm/+BtuzXUdtY/5407">TS</a>]
01:30:11 ◼ ► there's got to be some kind of potential great leap forward in the interaction [<a href="https://overcast.fm/+BtuzXUdtY/5411">TS</a>]
01:30:15 ◼ ► yep that's another one to know where I just don't see how it could make as much [<a href="https://overcast.fm/+BtuzXUdtY/5415">TS</a>]
01:30:19 ◼ ► money as the iPhone yeah I mean so Apple TV as it is currently made up is it does [<a href="https://overcast.fm/+BtuzXUdtY/5419">TS</a>]
01:30:27 ◼ ► what it says is doing very well right and it's it's because it's $99 and you [<a href="https://overcast.fm/+BtuzXUdtY/5427">TS</a>]
01:30:32 ◼ ► know the most compelling thing about this new chrome casting is it a $35 like [<a href="https://overcast.fm/+BtuzXUdtY/5432">TS</a>]
01:30:35 ◼ ► these are things that are sort of no-brainers to buy because they're so [<a href="https://overcast.fm/+BtuzXUdtY/5435">TS</a>]
01:30:38 ◼ ► cheap the television you know everyone's focusing on an actual television i mean [<a href="https://overcast.fm/+BtuzXUdtY/5438">TS</a>]
01:30:44 ◼ ► that would sell for a it would have to sell for at least a couple thousand [<a href="https://overcast.fm/+BtuzXUdtY/5444">TS</a>]
01:30:47 ◼ ► dollars and that's you know if if they do that the TV market is just so [<a href="https://overcast.fm/+BtuzXUdtY/5447">TS</a>]
01:30:54 ◼ ► different than what the phone market is going to subsidize it and I guess in [<a href="https://overcast.fm/+BtuzXUdtY/5454">TS</a>]
01:31:00 ◼ ► theory you could maybe they can work out a deal in Comcast's sub to subsidize its [<a href="https://overcast.fm/+BtuzXUdtY/5460">TS</a>]
01:31:04 ◼ ► interesting interesting but they're not really in the business I don't know it [<a href="https://overcast.fm/+BtuzXUdtY/5464">TS</a>]
01:31:08 ◼ ► would be shocking to me if that's what it turned out to be but you know I guess [<a href="https://overcast.fm/+BtuzXUdtY/5468">TS</a>]
01:31:13 ◼ ► it's possible but it's the only way that if it is in fact a thousand $2,000 TV [<a href="https://overcast.fm/+BtuzXUdtY/5473">TS</a>]
01:31:18 ◼ ► said that's the only way it would work at scale would be to somehow figure out [<a href="https://overcast.fm/+BtuzXUdtY/5478">TS</a>]
01:31:23 ◼ ► a way to sell it subsidized because normal people aren't going to replace [<a href="https://overcast.fm/+BtuzXUdtY/5483">TS</a>]
01:31:26 ◼ ► their TV just cuz Apple came out with a TV right and if they do by the one first [<a href="https://overcast.fm/+BtuzXUdtY/5486">TS</a>]
01:31:32 ◼ ► appt this first Apple theoretical television it would be you know what's [<a href="https://overcast.fm/+BtuzXUdtY/5492">TS</a>]
01:31:36 ◼ ► gonna be five years until they buy another one they're not gonna upgrade [<a href="https://overcast.fm/+BtuzXUdtY/5496">TS</a>]
01:31:39 ◼ ► every year and they're they're not gonna get every two years [<a href="https://overcast.fm/+BtuzXUdtY/5499">TS</a>]
01:31:41 ◼ ► one of the other ways that the phone market with such a perfect opportunity [<a href="https://overcast.fm/+BtuzXUdtY/5501">TS</a>]
01:31:44 ◼ ► is that people even before Apple got in we're already sort of in the habit of [<a href="https://overcast.fm/+BtuzXUdtY/5504">TS</a>]
01:31:49 ◼ ► getting a new one every two to three years [<a href="https://overcast.fm/+BtuzXUdtY/5509">TS</a>]
01:31:51 ◼ ► yea and yea and getting a new TV is a hassle would be a hassle you know you [<a href="https://overcast.fm/+BtuzXUdtY/5511">TS</a>]
01:31:55 ◼ ► mounted or or its just a heavy clunky think 22 to move in and out of your [<a href="https://overcast.fm/+BtuzXUdtY/5515">TS</a>]
01:32:00 ◼ ► living room and the set you know the same selling points don't work like [<a href="https://overcast.fm/+BtuzXUdtY/5520">TS</a>]
01:32:04 ◼ ► people upgrade to the new iPhone because it has a better camera often [<a href="https://overcast.fm/+BtuzXUdtY/5524">TS</a>]
01:32:07 ◼ ► you know there is no such thing in itself television you can upgrade you [<a href="https://overcast.fm/+BtuzXUdtY/5527">TS</a>]
01:32:12 ◼ ► can upgrade your cell phone on a whim real yeah he can't do that with UTV know [<a href="https://overcast.fm/+BtuzXUdtY/5532">TS</a>]
01:32:18 ◼ ► and so yeah I don't know I would be surprised if if there's some sort of [<a href="https://overcast.fm/+BtuzXUdtY/5538">TS</a>]
01:32:27 ◼ ► actual screen television anytime soon I would look for something more akin to [<a href="https://overcast.fm/+BtuzXUdtY/5547">TS</a>]
01:32:34 ◼ ► what we already have with a different thoughts around it and you know the app [<a href="https://overcast.fm/+BtuzXUdtY/5554">TS</a>]
01:32:38 ◼ ► that model is just there for the taking and they're going to destroy that right [<a href="https://overcast.fm/+BtuzXUdtY/5558">TS</a>]
01:32:42 ◼ ► but I just don't see it as being an iPhone sized business and I feel like [<a href="https://overcast.fm/+BtuzXUdtY/5562">TS</a>]
01:32:45 ◼ ► that they might run into problems with the Investor Relations I mean could you [<a href="https://overcast.fm/+BtuzXUdtY/5565">TS</a>]
01:32:51 ◼ ► can you think of anything in the world that would be an iPhone sized business I [<a href="https://overcast.fm/+BtuzXUdtY/5571">TS</a>]
01:32:55 ◼ ► keep making the joke that they would have to get into the oil business to do [<a href="https://overcast.fm/+BtuzXUdtY/5575">TS</a>]
01:32:58 ◼ ► something like that or or cars I don't know I mean I know and I'm sorry the [<a href="https://overcast.fm/+BtuzXUdtY/5578">TS</a>]
01:33:03 ◼ ► first just as a blue sky idea that what if Apple but Tesla I don't see it [<a href="https://overcast.fm/+BtuzXUdtY/5583">TS</a>]
01:33:08 ◼ ► happening but it just in theory if they did and turnout will stores into car [<a href="https://overcast.fm/+BtuzXUdtY/5588">TS</a>]
01:33:15 ◼ ► dealers potentially that seems like a big business because of cars cost twenty [<a href="https://overcast.fm/+BtuzXUdtY/5595">TS</a>]
01:33:21 ◼ ► thirty forty thousand dollars and you know you don't need a huge market share [<a href="https://overcast.fm/+BtuzXUdtY/5601">TS</a>]
01:33:25 ◼ ► to have that turn into a lot of money but that's the only thing I can think of [<a href="https://overcast.fm/+BtuzXUdtY/5605">TS</a>]
01:33:29 ◼ ► the people by that is very expensive year that I think you're right that's [<a href="https://overcast.fm/+BtuzXUdtY/5609">TS</a>]
01:33:35 ◼ ► that's one of the few things that they could do that would they would have a [<a href="https://overcast.fm/+BtuzXUdtY/5615">TS</a>]
01:33:39 ◼ ► meaningful impact on revenues and profits something of that just that size [<a href="https://overcast.fm/+BtuzXUdtY/5619">TS</a>]
01:33:44 ◼ ► so I don't know I mean and I think that the potential is there for Apple to have [<a href="https://overcast.fm/+BtuzXUdtY/5624">TS</a>]
01:33:48 ◼ ► a really healthy and he's already doing well in terms of numbers I think it go [<a href="https://overcast.fm/+BtuzXUdtY/5628">TS</a>]
01:33:54 ◼ ► I think that they could monetize it further with an app store for it I think [<a href="https://overcast.fm/+BtuzXUdtY/5634">TS</a>]
01:33:58 ◼ ► it could turn into a great little business but it just wouldn't be the [<a href="https://overcast.fm/+BtuzXUdtY/5638">TS</a>]
01:34:03 ◼ ► iPhone yet the only other the only other thing that they could do I think you're [<a href="https://overcast.fm/+BtuzXUdtY/5643">TS</a>]
01:34:08 ◼ ► a cars and then there's the unknown right there could be some new market [<a href="https://overcast.fm/+BtuzXUdtY/5648">TS</a>]
01:34:14 ◼ ► that no one thing about right now like like the very first computer that PCs [<a href="https://overcast.fm/+BtuzXUdtY/5654">TS</a>]
01:34:18 ◼ ► they would have to conceive of some entirely new market which would be [<a href="https://overcast.fm/+BtuzXUdtY/5658">TS</a>]
01:34:23 ◼ ► impossible for us to think about right now what whatever their whatever they [<a href="https://overcast.fm/+BtuzXUdtY/5663">TS</a>]
01:34:27 ◼ ► they may or may not be dreaming up but you know that that's that may be a once [<a href="https://overcast.fm/+BtuzXUdtY/5667">TS</a>]
01:34:31 ◼ ► in a lifetime thing for a company in Apple's already done it you can argue [<a href="https://overcast.fm/+BtuzXUdtY/5671">TS</a>]
01:34:35 ◼ ► they could have done it a few times right so the likelihood that they do it [<a href="https://overcast.fm/+BtuzXUdtY/5675">TS</a>]
01:34:38 ◼ ► again as is diminishing each time right [<a href="https://overcast.fm/+BtuzXUdtY/5678">TS</a>]
01:34:41 ◼ ► jet packs or something like that right [<a href="https://overcast.fm/+BtuzXUdtY/5681">TS</a>]
01:34:44 ◼ ► probe rosy the voters the jetsons robot rose is a rose roses are over [<a href="https://overcast.fm/+BtuzXUdtY/5684">TS</a>]
01:34:49 ◼ ► yeah yeah yeah something like that that's the only way thanks great show [<a href="https://overcast.fm/+BtuzXUdtY/5689">TS</a>]
01:34:54 ◼ ► oMG really appreciate the time I thought this was a great show [<a href="https://overcast.fm/+BtuzXUdtY/5694">TS</a>]
01:34:59 ◼ ► yeah good stuff thankyou very much and everybody can find out more of your [<a href="https://overcast.fm/+BtuzXUdtY/5699">TS</a>]
01:35:04 ◼ ► website Paris lemon dot com follow you on twitter everybody should follow onto [<a href="https://overcast.fm/+BtuzXUdtY/5704">TS</a>]