The Talk Show

00:00:00 ◼   ► uh so how are you it's been a while like [TS]

00:00:03 ◼   ► I have a lot to cover because I my last [TS]

00:00:06 ◼   ► episode was the Lisa Jackson episode so [TS]

00:00:07 ◼   ► it wasn't really news related so it's [TS]

00:00:09 ◼   ► there's a lot on the agenda [TS]

00:00:11 ◼   ► um trying to think of more even where to [TS]

00:00:14 ◼   ► start I guess we could start with board [TS]

00:00:16 ◼   ► early results I don't know um I know I [TS]

00:00:20 ◼   ► mean well I just wrote a big piece but [TS]

00:00:24 ◼   ► about iPhone sales in China but I I [TS]

00:00:27 ◼   ► don't know I don't think it's a major I [TS]

00:00:28 ◼   ► don't think the quarterly results this [TS]

00:00:30 ◼   ► time were all that bad or good you know [TS]

00:00:35 ◼   ► I think long story short my take on them [TS]

00:00:37 ◼   ► is that there was a pretty good quarter [TS]

00:00:38 ◼   ► everywhere except China and it was sales [TS]

00:00:41 ◼   ► iPhone sales continuing to slide in [TS]

00:00:43 ◼   ► China turned a pretty good quarter into [TS]

00:00:45 ◼   ► an ok quarter where yeah they flat you [TS]

00:00:49 ◼   ► know glad I think is a great word to [TS]

00:00:50 ◼   ► describe it and there were two things [TS]

00:00:52 ◼   ► that Tim Cook said that really stood out [TS]

00:00:53 ◼   ► to me and one was when they're talking [TS]

00:00:56 ◼   ► about new customer acquisition that the [TS]

00:00:57 ◼   ► rate of switchers from Android to iPhone [TS]

00:00:59 ◼   ► was up everywhere when you discounted [TS]

00:01:02 ◼   ► China yeah which is a different story [TS]

00:01:04 ◼   ► than they used to tell but that's a big [TS]

00:01:06 ◼   ► that's a big but because part of what I [TS]

00:01:10 ◼   ► wrote about today based on a very good [TS]

00:01:13 ◼   ► column by friend of the show Ben [TS]

00:01:14 ◼   ► Thompson with some market research [TS]

00:01:17 ◼   ► there's two at least two two pieces of [TS]

00:01:20 ◼   ► market research one from China and [TS]

00:01:22 ◼   ► another from UBS analyst that was that [TS]

00:01:26 ◼   ► came out last year show that in China [TS]

00:01:30 ◼   ► there's a lot less a lot lower retention [TS]

00:01:33 ◼   ► rate meaning when an i somebody who [TS]

00:01:36 ◼   ► already owns an iphone goes to buy a new [TS]

00:01:37 ◼   ► phone do they buy another iPhone or do [TS]

00:01:39 ◼   ► they switch to another brand that's [TS]

00:01:41 ◼   ► retention rate and its really pretty [TS]

00:01:43 ◼   ► considered in the West it's pretty [TS]

00:01:45 ◼   ► consistently in the mid to high 80s in [TS]

00:01:47 ◼   ► the u.s. in the UK and Germany it's you [TS]

00:01:49 ◼   ► know for two or three years now it's [TS]

00:01:52 ◼   ► very consistently 8485 Germany's even a [TS]

00:01:55 ◼   ► little higher 88 89 Japan is a little [TS]

00:01:58 ◼   ► lower like mid 70s but pretty flat year [TS]

00:02:01 ◼   ► to year but in China it went from like [TS]

00:02:04 ◼   ► Western levels in the 80s like a couple [TS]

00:02:07 ◼   ► years ago to around 50 percent now which [TS]

00:02:09 ◼   ► is not good from Apple's perspective [TS]

00:02:12 ◼   ► then I say very different [TS]

00:02:14 ◼   ► than what they spoke about previously if [TS]

00:02:16 ◼   ► you flash back a couple years when they [TS]

00:02:18 ◼   ► were talking about the lack of low [TS]

00:02:19 ◼   ► entry-level pricing on iPhones one of [TS]

00:02:21 ◼   ► the things that Apple said is they [TS]

00:02:22 ◼   ► didn't need to be your first phone if [TS]

00:02:24 ◼   ► all you wanted was the cheapest phone if [TS]

00:02:26 ◼   ► cheapness was your primary feature that [TS]

00:02:28 ◼   ► was great but it wasn't a feature they [TS]

00:02:29 ◼   ► were competing on and they would count [TS]

00:02:31 ◼   ► on the fact that you would get into [TS]

00:02:32 ◼   ► smart phones and then if you wanted a [TS]

00:02:33 ◼   ► better phone experience you'd upgrade to [TS]

00:02:35 ◼   ► an iPhone and a lot of people did that [TS]

00:02:37 ◼   ► either for status or for iOS for iOS [TS]

00:02:39 ◼   ► apps but that's not that's no longer the [TS]

00:02:42 ◼   ► case in China there is still the status [TS]

00:02:43 ◼   ► symbol implement but has been pointed [TS]

00:02:45 ◼   ► out the the platform layer has shifted [TS]

00:02:47 ◼   ► from base operating system to messaging [TS]

00:02:49 ◼   ► yeah and especially it's particularly [TS]

00:02:51 ◼   ► this app WeChat which is I think only in [TS]

00:02:55 ◼   ► China I don't know or at least it's [TS]

00:02:56 ◼   ► really only a sensation in China but [TS]

00:02:58 ◼   ► it's you know truly staggering numbers [TS]

00:03:00 ◼   ► for it's a four year old comfort or a [TS]

00:03:01 ◼   ► four year old app from another company [TS]

00:03:03 ◼   ► but it's I don't 900 million monthly [TS]

00:03:06 ◼   ► active users something like that and I [TS]

00:03:10 ◼   ► don't want to go too I'll put it linked [TS]

00:03:12 ◼   ► I swear to god in the show notes at [TS]

00:03:17 ◼   ► least in my article which has a link to [TS]

00:03:18 ◼   ► the to the post from a woman named [TS]

00:03:20 ◼   ► Connie Chen at the Anderson Horowitz [TS]

00:03:26 ◼   ► explaining more or less for you know [TS]

00:03:29 ◼   ► here what is WeChat and why you know why [TS]

00:03:31 ◼   ► is it a sensation in China and long [TS]

00:03:33 ◼   ► story short it's sort of like an OS and [TS]

00:03:35 ◼   ► a in an app where it's a messaging app [TS]

00:03:38 ◼   ► but you can do so much stuff you can pay [TS]

00:03:42 ◼   ► free it's like you know like an Apple [TS]

00:03:44 ◼   ► pay type competitor where you can go [TS]

00:03:46 ◼   ► into a store and use WeChat to pay for [TS]

00:03:47 ◼   ► the lunch while you're in line and you [TS]

00:03:51 ◼   ► know like Ben has said that in China [TS]

00:03:53 ◼   ► it's it makes you look like a rube if [TS]

00:03:56 ◼   ► you pay with cash everybody else is [TS]

00:03:57 ◼   ► paying with WeChat just all sorts of [TS]

00:04:00 ◼   ► stuff you can buy stuff it's a shopping [TS]

00:04:02 ◼   ► app it's you know that all sorts of [TS]

00:04:04 ◼   ► companies that would like to be on the [TS]

00:04:06 ◼   ► WeChat platform set up their own like [TS]

00:04:10 ◼   ► authorized account it's like a special [TS]

00:04:11 ◼   ► account status that opens up a bunch of [TS]

00:04:14 ◼   ► ABA API so you can have a programmatic [TS]

00:04:16 ◼   ► back-end so other WeChat users can when [TS]

00:04:19 ◼   ► they're chatting with you know you know [TS]

00:04:23 ◼   ► Rene and John incorporated we can sell [TS]

00:04:26 ◼   ► them t-shirts or sneakers or whatever [TS]

00:04:27 ◼   ► right [TS]

00:04:27 ◼   ► that we chat up yeah [TS]

00:04:31 ◼   ► and messaging is fragmented so it [TS]

00:04:33 ◼   ► doesn't really you don't have to own [TS]

00:04:34 ◼   ► messaging everywhere as long as you in [TS]

00:04:35 ◼   ► the China market with WeChat you're fine [TS]

00:04:37 ◼   ► the Japanese market with line it's [TS]

00:04:38 ◼   ► almost like people who are such casual [TS]

00:04:40 ◼   ► computer users that all they ever uses [TS]

00:04:42 ◼   ► Facebook it makes no difference in them [TS]

00:04:44 ◼   ► if they're on a Mac or a Windows PC or a [TS]

00:04:45 ◼   ► library terminal or anything their [TS]

00:04:47 ◼   ► entire computing experience is Facebook [TS]

00:04:49 ◼   ► and it makes it easy to migrate right my [TS]

00:04:50 ◼   ► argument and I've said this you know [TS]

00:04:52 ◼   ► I've always thought this and I still [TS]

00:04:54 ◼   ► believe it's always been true and always [TS]

00:04:55 ◼   ► will be true is that in the in the basic [TS]

00:04:59 ◼   ► apples model is selling nice hardware [TS]

00:05:02 ◼   ► differentiated by proprietary software [TS]

00:05:04 ◼   ► that's also nice but it's the software [TS]

00:05:07 ◼   ► part is more important than the hardware [TS]

00:05:09 ◼   ► part because that's what makes people [TS]

00:05:14 ◼   ► sticky to the platform you know and so [TS]

00:05:17 ◼   ► like a Mac user and I you know I've put [TS]

00:05:19 ◼   ► this forth before I think you would [TS]

00:05:21 ◼   ► agree with Allah I just love it as a [TS]

00:05:22 ◼   ► thought experiment but would you rather [TS]

00:05:24 ◼   ► use Apple's OS on competing hard on some [TS]

00:05:29 ◼   ► other hardware ah or would you rather [TS]

00:05:32 ◼   ► use some other hardware platform that's [TS]

00:05:39 ◼   ► running right some other hardware [TS]

00:05:40 ◼   ► platform running Apple's OS would you [TS]

00:05:42 ◼   ► rather use Apple's hardware running the [TS]

00:05:43 ◼   ► other OS so for example would you rather [TS]

00:05:45 ◼   ► have like I would rather have a Google [TS]

00:05:47 ◼   ► pixel that runs iOS hypothetically since [TS]

00:05:50 ◼   ► that's not really possible instead of [TS]

00:05:52 ◼   ► say an iPhone 7 that's running Android a [TS]

00:05:55 ◼   ► totally and I think is easy to see [TS]

00:05:57 ◼   ► because there are other companies that [TS]

00:05:58 ◼   ► can manufacture beautiful hardware and [TS]

00:06:00 ◼   ► there in fact the suppliers of a lot of [TS]

00:06:01 ◼   ► Apple's components so we know they can [TS]

00:06:03 ◼   ► make really good components but no one [TS]

00:06:05 ◼   ► else has proven they can make really [TS]

00:06:06 ◼   ► good software yet that's a much more [TS]

00:06:07 ◼   ► rarer skill right and and with the iOS [TS]

00:06:10 ◼   ► example it's a real hypothetical because [TS]

00:06:12 ◼   ► I don't even think it's possible I [TS]

00:06:14 ◼   ► really think that there there's [TS]

00:06:15 ◼   ► technical aspects of like the you know [TS]

00:06:18 ◼   ► the secure Enclave and stuff like that [TS]

00:06:20 ◼   ► that would keep something from my [TS]

00:06:21 ◼   ► message from working like in my [TS]

00:06:22 ◼   ► hypothetical example I'd have everything [TS]

00:06:24 ◼   ► you know my iMessage would work my [TS]

00:06:26 ◼   ► iCloud ID would work on this pixel [TS]

00:06:29 ◼   ► running iOS but I would rather have that [TS]

00:06:31 ◼   ► even though I do in the abstract prefer [TS]

00:06:33 ◼   ► an iPhone 7 over [TS]

00:06:35 ◼   ► the Google pixel which is the the latest [TS]

00:06:37 ◼   ► Android phone that I'm most familiar [TS]

00:06:38 ◼   ► with and which I have to say is actually [TS]

00:06:40 ◼   ► you know the nicest Android phone I've [TS]

00:06:42 ◼   ► ever I ever saw it versus the other way [TS]

00:06:46 ◼   ► around [TS]

00:06:47 ◼   ► it would drive me not have to use [TS]

00:06:48 ◼   ► Qualcomm scrappy processors instead of [TS]

00:06:49 ◼   ► the a series but you can look at it yeah [TS]

00:06:51 ◼   ► I could live with it it's you know it's [TS]

00:06:53 ◼   ► fast enough [TS]

00:06:54 ◼   ► you know III peg it you know if you look [TS]

00:06:56 ◼   ► at the specs it's they're like somewhere [TS]

00:06:57 ◼   ► on 18 months to 24 months behind [TS]

00:06:59 ◼   ► I mean I'd still you know I would rather [TS]

00:07:01 ◼   ► use a two year old iPhone 6 then use you [TS]

00:07:06 ◼   ► know cutting-edge Android because the [TS]

00:07:07 ◼   ► platform is most important to me it's [TS]

00:07:09 ◼   ► just my mind is warped around it it's [TS]

00:07:11 ◼   ► part of the way I think about how to do [TS]

00:07:13 ◼   ► stuff on the phone and whenever I pose [TS]

00:07:17 ◼   ► that question you know and I with [TS]

00:07:19 ◼   ► computers it's actually is possible [TS]

00:07:20 ◼   ► because you could create you can create [TS]

00:07:22 ◼   ► a hackintosh that that works although [TS]

00:07:24 ◼   ► there's still as things like iMessage [TS]

00:07:26 ◼   ► still you know has problems and stuff [TS]

00:07:27 ◼   ► like that because there's security you [TS]

00:07:29 ◼   ► know it's not perfect hackintosh just [TS]

00:07:31 ◼   ► don't work perfectly but they do work [TS]

00:07:34 ◼   ► I'd rather have a hackintosh I gotta [TS]

00:07:36 ◼   ► think pad running Mac OS 10 then [TS]

00:07:39 ◼   ► anything Windows you name it Chrome or [TS]

00:07:42 ◼   ► whatever whatever else a desktop PC [TS]

00:07:45 ◼   ► operating system I could have running on [TS]

00:07:46 ◼   ► a MacBook yeah absolutely the same but I [TS]

00:07:50 ◼   ► have heard I know there are people that [TS]

00:07:51 ◼   ► probably listening to the show right now [TS]

00:07:53 ◼   ► I've heard from them whenever I bring [TS]

00:07:54 ◼   ► this up because I do think it's an [TS]

00:07:55 ◼   ► interesting hypothetical question um [TS]

00:07:57 ◼   ► there are definitely people who I hear [TS]

00:07:59 ◼   ► from who you know read read my stuff or [TS]

00:08:02 ◼   ► listen to the show and say no I you know [TS]

00:08:03 ◼   ► used Windows forever but switched to a [TS]

00:08:06 ◼   ► MacBook just because of the hardware and [TS]

00:08:09 ◼   ► in a lot of times I'll say like and you [TS]

00:08:11 ◼   ► know not just the way it looks but I [TS]

00:08:12 ◼   ► just got sick of the fact like I wanted [TS]

00:08:14 ◼   ► a laptop that just when I opened it up [TS]

00:08:16 ◼   ► it turns on when I close it it shuts its [TS]

00:08:18 ◼   ► networks trackpad Works trackpad working [TS]

00:08:21 ◼   ► is a huge thing and I know Joe and a [TS]

00:08:24 ◼   ► stern friend of the show is often she's [TS]

00:08:25 ◼   ► like the the absolute queen of trackpad [TS]

00:08:31 ◼   ► judgements like she's got the ranking in [TS]

00:08:32 ◼   ► her head of him every single trackpad [TS]

00:08:34 ◼   ► quality in the whole market and I [TS]

00:08:36 ◼   ► totally trust her judgment on trackpad [TS]

00:08:38 ◼   ► quality that's a huge one but the people [TS]

00:08:43 ◼   ► who say that they switched like that a [TS]

00:08:44 ◼   ► lot of times say but that's the only [TS]

00:08:45 ◼   ► reason and that they're you know for [TS]

00:08:47 ◼   ► example very comments and [TS]

00:08:48 ◼   ► my audience at least are like web [TS]

00:08:50 ◼   ► developers whose entire life revolves [TS]

00:08:53 ◼   ► around Chrome a text editor in a [TS]

00:08:56 ◼   ► terminal window and any you know so [TS]

00:08:59 ◼   ► somebody like that if that's your life [TS]

00:09:00 ◼   ► if your life is just Google Chrome a [TS]

00:09:03 ◼   ► text editor and a terminal you can [TS]

00:09:05 ◼   ► easily switch to some other brand of [TS]

00:09:08 ◼   ► laptop running another operating system [TS]

00:09:09 ◼   ► you know because those things are [TS]

00:09:11 ◼   ► available on every platform yeah [TS]

00:09:14 ◼   ► absolutely same as a Facebook example [TS]

00:09:16 ◼   ► it's just your entire environment is [TS]

00:09:17 ◼   ► abstracted away from your computer right [TS]

00:09:19 ◼   ► well that's why I think Facebook is such [TS]

00:09:21 ◼   ► a not really a threat to Apple but like [TS]

00:09:25 ◼   ► a direct threat but certainly looms [TS]

00:09:27 ◼   ► large as and an indirect threat you know [TS]

00:09:34 ◼   ► like somebody like it's far more of a [TS]

00:09:36 ◼   ► threat Facebook is far more threatening [TS]

00:09:38 ◼   ► to Apple then to me at least then say [TS]

00:09:41 ◼   ► Samsung even though you would think [TS]

00:09:43 ◼   ► Samsung would be the one who's the [TS]

00:09:46 ◼   ► threat because they do the same thing [TS]

00:09:47 ◼   ► they make $700 cell phones that when [TS]

00:09:52 ◼   ► somebody goes into a store to decide [TS]

00:09:53 ◼   ► what to buy they're only going to buy [TS]

00:09:54 ◼   ► one whereas I feel like Apple has it [TS]

00:10:00 ◼   ► it's successfully as in-app has always [TS]

00:10:03 ◼   ► been or at least has been for 20 years [TS]

00:10:05 ◼   ► in a position where the quality of their [TS]

00:10:07 ◼   ► products are enough that they don't [TS]

00:10:09 ◼   ► really have to worry about somebody else [TS]

00:10:10 ◼   ► who also sells nice things because [TS]

00:10:12 ◼   ► they've got the software platform to [TS]

00:10:14 ◼   ► differentiate themselves the problem [TS]

00:10:17 ◼   ► with something like facebook is that [TS]

00:10:18 ◼   ► Facebook in a way is sort of like the [TS]

00:10:20 ◼   ► WeChat of the West where you know if [TS]

00:10:24 ◼   ► it's the most used app and it from a lot [TS]

00:10:27 ◼   ► of people it is and it does all the same [TS]

00:10:30 ◼   ► things in mostly the same ways on iOS [TS]

00:10:33 ◼   ► and Android it's a lot easier for [TS]

00:10:36 ◼   ► somebody to switch from an iPhone to [TS]

00:10:38 ◼   ► Android if their most important app just [TS]

00:10:41 ◼   ► works exactly the same way and lets them [TS]

00:10:43 ◼   ► do all the same things and it's [TS]

00:10:45 ◼   ► interesting because the web arguably [TS]

00:10:46 ◼   ► helped Apple at a time when they were [TS]

00:10:48 ◼   ► very far behind in terms of just market [TS]

00:10:50 ◼   ► share and and mine share with PC but the [TS]

00:10:53 ◼   ► web let them it compete you could just [TS]

00:10:56 ◼   ► have a web browser and you would have [TS]

00:10:57 ◼   ► access to all these things and it did [TS]

00:10:58 ◼   ► ease the the transition back to Mac but [TS]

00:11:01 ◼   ► it goes that door goes both [TS]

00:11:02 ◼   ► and it can let people write you this [TS]

00:11:04 ◼   ► quickly so let them in right it was it [TS]

00:11:06 ◼   ► that sort of cross-platform parody that [TS]

00:11:11 ◼   ► the web created was helpful to Apple [TS]

00:11:14 ◼   ► when Apple was struggling but it's [TS]

00:11:17 ◼   ► detrimental to Apple [TS]

00:11:19 ◼   ► now that Apple's in a position of [TS]

00:11:21 ◼   ► strength and it's interesting because [TS]

00:11:22 ◼   ► there's different layers of abstraction [TS]

00:11:23 ◼   ► where Facebook abstracts away a lot of [TS]

00:11:25 ◼   ► the operating system and you're just [TS]

00:11:26 ◼   ► interfacing because for a normal person [TS]

00:11:27 ◼   ► the interface is the app and the [TS]

00:11:29 ◼   ► interface is the hardware it's the face [TS]

00:11:30 ◼   ► that they literally the face that they [TS]

00:11:32 ◼   ► see and they work with and you can [TS]

00:11:33 ◼   ► change all the plumbing behind it and [TS]

00:11:35 ◼   ► they may not notice but if you change [TS]

00:11:36 ◼   ► one button on an interface you'll get [TS]

00:11:38 ◼   ► complaints or you know people will tell [TS]

00:11:40 ◼   ► you about it and there's voicemail [TS]

00:11:43 ◼   ► assistance to where you use Siri for [TS]

00:11:44 ◼   ► example which totally disintermediate [TS]

00:11:46 ◼   ► schoo --gel and all they see is query is [TS]

00:11:47 ◼   ► coming from Apple and it's really regard [TS]

00:11:49 ◼   ► Apple could switch the plumbing for that [TS]

00:11:51 ◼   ► and then Alexa inter mediate things and [TS]

00:11:53 ◼   ► it's almost like this battle for who can [TS]

00:11:55 ◼   ► be the final point of the user interface [TS]

00:11:56 ◼   ► and that's the experience that becomes [TS]

00:11:58 ◼   ► sticky right and you know and Facebook [TS]

00:12:01 ◼   ► is doing which had some other things you [TS]

00:12:02 ◼   ► know with messenger and stuff where [TS]

00:12:03 ◼   ► there's sort of apps within apps and [TS]

00:12:06 ◼   ► it's sort of this sort of it's a sort of [TS]

00:12:07 ◼   ► thing that Apple it's in its in its way [TS]

00:12:11 ◼   ► has tried to discourage in the App Store [TS]

00:12:13 ◼   ► all along right like they were never [TS]

00:12:17 ◼   ► going to allow say it's part of the [TS]

00:12:21 ◼   ► whole flash thing in the early years [TS]

00:12:22 ◼   ► when that was contentious and when adobe [TS]

00:12:24 ◼   ► first had a sort of flash to native iOS [TS]

00:12:28 ◼   ► development chain and Apple like put the [TS]

00:12:32 ◼   ► kibosh on it it was sort of you know [TS]

00:12:36 ◼   ► what I'm sure they're it strategically [TS]

00:12:38 ◼   ► there were multiple reasons but one of [TS]

00:12:39 ◼   ► them was they were never going to allow [TS]

00:12:41 ◼   ► something like an Adobe app that when [TS]

00:12:43 ◼   ► you open the app gives you like a [TS]

00:12:45 ◼   ► secondary homepage of flash based games [TS]

00:12:47 ◼   ► that you can play right you can't have [TS]

00:12:49 ◼   ► an app store within the App Store except [TS]

00:12:52 ◼   ► that if you already have a certain [TS]

00:12:55 ◼   ► momentum and size and importance like [TS]

00:12:59 ◼   ► Facebook and like WeChat has in China [TS]

00:13:01 ◼   ► you can kind of get away from it you [TS]

00:13:04 ◼   ► know get away with it because Apple [TS]

00:13:05 ◼   ► can't really afford they can't say we're [TS]

00:13:07 ◼   ► not going to allow we chat on the iPhone [TS]

00:13:09 ◼   ► in China and they can't say we're not [TS]

00:13:11 ◼   ► going to allow Facebook on the iPhone [TS]

00:13:13 ◼   ► yeah people just buy something else at [TS]

00:13:16 ◼   ► that point [TS]

00:13:16 ◼   ► right but so you know they even talk [TS]

00:13:18 ◼   ► about apps like you know Facebook has [TS]

00:13:20 ◼   ► things they call apps that you can have [TS]

00:13:22 ◼   ► within messenger and like if you and I [TS]

00:13:24 ◼   ► started a new chat app and came out with [TS]

00:13:27 ◼   ► it and we said that there were apps you [TS]

00:13:30 ◼   ► could have within the app it would not [TS]

00:13:31 ◼   ► it would not make it through approval [TS]

00:13:34 ◼   ► that in the iOS App Store our probably [TS]

00:13:38 ◼   ► wouldn't um it's just something that [TS]

00:13:41 ◼   ► some you know a company like Facebook [TS]

00:13:43 ◼   ► that has that sort of what would you [TS]

00:13:46 ◼   ► call it stature yeah well it also blurs [TS]

00:13:48 ◼   ► the web services line because like Apple [TS]

00:13:49 ◼   ► wouldn't blink with just like you go to [TS]

00:13:51 ◼   ► google.com and there's your Gmail and [TS]

00:13:52 ◼   ► your Google Calendar those are just [TS]

00:13:53 ◼   ► normal web experiences and they've done [TS]

00:13:56 ◼   ► that they but they've packaged those [TS]

00:13:57 ◼   ► things up inside chat clients or inside [TS]

00:13:59 ◼   ► social networks instead of having them [TS]

00:14:01 ◼   ► as a bunch of standalone URLs and that [TS]

00:14:03 ◼   ► gives a very different experience and [TS]

00:14:04 ◼   ► pull you a lot more compelling [TS]

00:14:05 ◼   ► experience right and you know one of the [TS]

00:14:08 ◼   ► ways that Facebook is sort of [TS]

00:14:09 ◼   ► threatening to Apple is in theory like I [TS]

00:14:12 ◼   ► don't think this would happen I think [TS]

00:14:13 ◼   ► it's you know so far it's actually more [TS]

00:14:16 ◼   ► likely the other way around [TS]

00:14:17 ◼   ► where something like you know Facebook's [TS]

00:14:19 ◼   ► subsidiary Instagram was iOS only four [TS]

00:14:22 ◼   ► years before it came out for for Android [TS]

00:14:25 ◼   ► but if in theory Facebook somehow got [TS]

00:14:30 ◼   ► better it was a better experience on [TS]

00:14:32 ◼   ► Android than it is on the iPhone that's [TS]

00:14:34 ◼   ► a threat to Apple if people's favorite [TS]

00:14:37 ◼   ► app and most used app is Facebook and [TS]

00:14:39 ◼   ► word spreads around that oh but you [TS]

00:14:40 ◼   ► can't do the cool new x y&z that all [TS]

00:14:44 ◼   ► your friends who have Android phones are [TS]

00:14:45 ◼   ► doing on Facebook unless you get an [TS]

00:14:46 ◼   ► Android phone like that's Facebook is so [TS]

00:14:49 ◼   ► big and so popular that if something [TS]

00:14:50 ◼   ► like that happened hypothetically that's [TS]

00:14:53 ◼   ► a problem for Apple yeah I don't want to [TS]

00:14:55 ◼   ► real it'll get the whole App Store thing [TS]

00:14:56 ◼   ► but when you look at it if you look at [TS]

00:14:57 ◼   ► the App Store you look at Google Play [TS]

00:14:58 ◼   ► for example Google play's offers [TS]

00:15:00 ◼   ► freedoms and features that a lot of App [TS]

00:15:02 ◼   ► Store developers have been wanting for [TS]

00:15:03 ◼   ► years but you can't really point to [TS]

00:15:05 ◼   ► those two things on Google Play and say [TS]

00:15:07 ◼   ► those are apps that aren't those are [TS]

00:15:08 ◼   ► transformative apps that are simply not [TS]

00:15:10 ◼   ► possible an iPhone you can get snapchat [TS]

00:15:12 ◼   ► an iPhone you can get uber on iPhone but [TS]

00:15:14 ◼   ► if there was ever a case where an app [TS]

00:15:15 ◼   ► could only exist on Android because the [TS]

00:15:17 ◼   ► policies or capabilities of Google Play [TS]

00:15:19 ◼   ► and the Android ecosystem we're such to [TS]

00:15:21 ◼   ► make it so that would I think be the [TS]

00:15:23 ◼   ► only thing that could really change [TS]

00:15:24 ◼   ► Apple's outlook on how all that thing on [TS]

00:15:26 ◼   ► how iOS and the App Store works right if [TS]

00:15:29 ◼   ► you really think about it [TS]

00:15:30 ◼   ► it's apples uh they have control over [TS]

00:15:38 ◼   ► the AppStore that the software vendors [TS]

00:15:42 ◼   ► haven't had previously over their [TS]

00:15:44 ◼   ► platforms right that they didn't have [TS]

00:15:46 ◼   ► over the Mac because you could you know [TS]

00:15:47 ◼   ► you can install any app you want on the [TS]

00:15:50 ◼   ► Mac and so technically yes they could [TS]

00:15:54 ◼   ► ban anything but practically speaking [TS]

00:15:55 ◼   ► they don't really have they have lots of [TS]

00:15:58 ◼   ► control but they don't really have total [TS]

00:15:59 ◼   ► control like there's only so far that [TS]

00:16:01 ◼   ► they can push Facebook on if Facebook is [TS]

00:16:04 ◼   ► doing shady stuff behind the scenes like [TS]

00:16:06 ◼   ► they have in the past like when I use [TS]

00:16:08 ◼   ► the audio api Zoar right what yeah you [TS]

00:16:11 ◼   ► know like they you know that was one of [TS]

00:16:13 ◼   ► them like where where in the over the [TS]

00:16:15 ◼   ► years when you look and say well why in [TS]

00:16:16 ◼   ► the world is Facebook doing so much in [TS]

00:16:18 ◼   ► the background and how are they doing it [TS]

00:16:19 ◼   ► with there's rules of you know that apps [TS]

00:16:23 ◼   ► get killed in the background and [TS]

00:16:24 ◼   ► Facebook at one point one of the things [TS]

00:16:26 ◼   ► they did it is they they were playing if [TS]

00:16:30 ◼   ► there was an API so that an app that's [TS]

00:16:32 ◼   ► playing audio can keep playing it in the [TS]

00:16:34 ◼   ► background indefinitely and it won't get [TS]

00:16:35 ◼   ► killed because if you let's say playing [TS]

00:16:37 ◼   ► a podcast and you're not you're doing [TS]

00:16:40 ◼   ► other things on your phone like you're [TS]

00:16:41 ◼   ► going through email and browsing the web [TS]

00:16:43 ◼   ► while you're listening to the podcast [TS]

00:16:44 ◼   ► you don't want your podcast player to [TS]

00:16:46 ◼   ► get killed by iOS because it's [TS]

00:16:47 ◼   ► quote-unquote in the background because [TS]

00:16:49 ◼   ► you're you're getting something from it [TS]

00:16:50 ◼   ► it's playing audio so Facebook use that [TS]

00:16:54 ◼   ► API to play completely silent audio [TS]

00:16:57 ◼   ► track so that they could keep going in [TS]

00:17:00 ◼   ► the background while they do other [TS]

00:17:02 ◼   ► things like waiting for notifications [TS]

00:17:04 ◼   ► and whatever else that are doing it is [TS]

00:17:07 ◼   ► almost as egregious as when they had to [TS]

00:17:08 ◼   ► hamburger buttons on both sides of the [TS]

00:17:09 ◼   ► app all right I'd say that this was [TS]

00:17:12 ◼   ► worse I do hamburger buttons don't run [TS]

00:17:14 ◼   ► your battery down but it so in this [TS]

00:17:15 ◼   ► problem still exists like I think was a [TS]

00:17:17 ◼   ► month ago people started complaining [TS]

00:17:18 ◼   ► about the same issue with Pokemon go and [TS]

00:17:20 ◼   ► I started investigating and if you go it [TS]

00:17:21 ◼   ► says we're like two or three hours on [TS]

00:17:23 ◼   ► the background audio which is not [TS]

00:17:25 ◼   ► something that any rat app besides a [TS]

00:17:27 ◼   ► streaming client to ever present all [TS]

00:17:29 ◼   ► right you should get jettisoned [TS]

00:17:30 ◼   ► immediately right and so Facebook can [TS]

00:17:33 ◼   ► get away with stuff like that in a way [TS]

00:17:35 ◼   ► that other companies can't the other [TS]

00:17:37 ◼   ► good example of that I mean I don't want [TS]

00:17:38 ◼   ► to tie too many stories together it's [TS]

00:17:40 ◼   ► but while we're on it is the [TS]

00:17:43 ◼   ► a story that came out of a few weeks ago [TS]

00:17:45 ◼   ► about uber yeah getting caught by Apple [TS]

00:17:51 ◼   ► we could save that though maybe we [TS]

00:17:53 ◼   ► should save that forever from the Zurich [TS]

00:17:55 ◼   ► so anyway iPhone in China what else what [TS]

00:17:57 ◼   ► else we have to say about that well I [TS]

00:18:00 ◼   ► think just beyond China is that Tim Cook [TS]

00:18:01 ◼   ► used the same sort of wording when he [TS]

00:18:03 ◼   ► spoke about iPad and said that you know [TS]

00:18:05 ◼   ► I large screen iPads were up sales of [TS]

00:18:09 ◼   ► all our screen iPads were up when [TS]

00:18:10 ◼   ► overall iPad sales were down again and [TS]

00:18:12 ◼   ► that sort of was pointing the finger [TS]

00:18:14 ◼   ► right at the iPad Mini yeah I think so [TS]

00:18:16 ◼   ► that I think the reading between the [TS]

00:18:19 ◼   ► lines on that that is a good that did [TS]

00:18:21 ◼   ► strike me to reading between the lines [TS]

00:18:22 ◼   ► on that and also looking at the revenue [TS]

00:18:25 ◼   ► number yeah which wasn't really up [TS]

00:18:28 ◼   ► either like like for example for the Mac [TS]

00:18:34 ◼   ► sales unit sales were up 4% good [TS]

00:18:37 ◼   ► year-over-year from the same three [TS]

00:18:38 ◼   ► months last year but revenue is up 14% [TS]

00:18:41 ◼   ► yeah so 4% units 14% revenue that tells [TS]

00:18:47 ◼   ► me that the new MacBook Pros are selling [TS]

00:18:50 ◼   ► pretty well yeah because that's the only [TS]

00:18:52 ◼   ► thing that's new in the lineup and the [TS]

00:18:55 ◼   ► ASP s are higher on those models and the [TS]

00:18:57 ◼   ► ASP s are higher on those models and so [TS]

00:18:59 ◼   ► you know that it's you know if you're if [TS]

00:19:02 ◼   ► there's any concern out there that the [TS]

00:19:04 ◼   ► sort of mixed reviews those MacBook Pros [TS]

00:19:06 ◼   ► got it doesn't seem like it's had an [TS]

00:19:07 ◼   ► adverse effect on sales seems like the [TS]

00:19:09 ◼   ► opposite that they're actually proving [TS]

00:19:10 ◼   ► to be pretty popular because they've [TS]

00:19:12 ◼   ► driven the revenue per unit up but with [TS]

00:19:17 ◼   ► the iPad with them saying and again you [TS]

00:19:19 ◼   ► know it those those analyst calls are [TS]

00:19:22 ◼   ► you know they can't lie on them or else [TS]

00:19:25 ◼   ► they're committing securities fraud like [TS]

00:19:27 ◼   ► they're very very careful I mean you [TS]

00:19:29 ◼   ► know because you got you read the [TS]

00:19:30 ◼   ► transcript and read every word I mean [TS]

00:19:32 ◼   ► it's not loosey-goosey talk no and they [TS]

00:19:35 ◼   ► are well prepared they have every fact [TS]

00:19:37 ◼   ► in front of them before they get on that [TS]

00:19:38 ◼   ► microphone right so if they say I mean [TS]

00:19:42 ◼   ► again they don't they you know in the [TS]

00:19:45 ◼   ► actual PDF data document for the [TS]

00:19:47 ◼   ► quarterly numbers they they give you [TS]

00:19:50 ◼   ► units per product line like just for [TS]

00:19:53 ◼   ► iPad and their revenue for the product [TS]

00:19:55 ◼   ► line and that's it and so the [TS]

00:19:56 ◼   ► they don't break down in the old days [TS]

00:19:58 ◼   ► like ten years ago they used to break [TS]

00:20:00 ◼   ► down like for example Mac sales by [TS]

00:20:02 ◼   ► desktop and notebook but they don't have [TS]

00:20:05 ◼   ► any breakdown like that for iPads like [TS]

00:20:06 ◼   ► between big and small but if they say on [TS]

00:20:08 ◼   ► the call the big ones are up it but they [TS]

00:20:11 ◼   ► must be up all right like it's either [TS]

00:20:13 ◼   ► that or they're committing securities [TS]

00:20:14 ◼   ► fraud but given that that everything was [TS]

00:20:17 ◼   ► still down that must mean that iPad Mini [TS]

00:20:19 ◼   ► sales have just dropped off the face of [TS]

00:20:21 ◼   ► the earth which makes sense given the [TS]

00:20:22 ◼   ► event of the larger phones and the lack [TS]

00:20:25 ◼   ► of updates to the iPad Mini platform [TS]

00:20:26 ◼   ► yeah I'd sort of a chicken and egg [TS]

00:20:28 ◼   ► question for me is it are they not even [TS]

00:20:32 ◼   ► updating the iPad Mini because people [TS]

00:20:35 ◼   ► aren't buying the iPad Mini or people [TS]

00:20:36 ◼   ► not buying the iPad Mini because they [TS]

00:20:38 ◼   ► haven't updated the iPad Mini in a while [TS]

00:20:39 ◼   ► this is this is a bit of a tangent but I [TS]

00:20:41 ◼   ► went to a mutual friend of ours sort of [TS]

00:20:43 ◼   ► potted us about Mac OS server the other [TS]

00:20:46 ◼   ► day so I went to pick up a Mac Mini so [TS]

00:20:48 ◼   ► that we can write a series of articles [TS]

00:20:49 ◼   ► and I more about the benefits of Mac OS [TS]

00:20:50 ◼   ► server and I went to the Apple store I [TS]

00:20:53 ◼   ► bought it took it home and it was [TS]

00:20:55 ◼   ► running L cap much I mean that to me [TS]

00:20:59 ◼   ► shows is not a huge turnover rate on Mac [TS]

00:21:01 ◼   ► minis we talked about how Mac Mini is a [TS]

00:21:03 ◼   ► languishing product it's the same [TS]

00:21:04 ◼   ► chicken and the egg problem but that [TS]

00:21:05 ◼   ► sort of gave me an indicator about how [TS]

00:21:07 ◼   ► few Mac minis might actually be moving [TS]

00:21:09 ◼   ► it's pretty telling uh [TS]

00:21:18 ◼   ► so trying ELQ be funny if it opened it [TS]

00:21:23 ◼   ► up and it was running like tiger or [TS]

00:21:25 ◼   ► something like oh that'd be great right [TS]

00:21:26 ◼   ► sky lady old office telling us it's like [TS]

00:21:30 ◼   ► how old is this uh PowerPC ABS uh trying [TS]

00:21:36 ◼   ► to think anything else from the [TS]

00:21:37 ◼   ► quarterly results services are way up [TS]

00:21:40 ◼   ► which is as is predicted I mean they've [TS]

00:21:43 ◼   ► been saying this for a while that hey [TS]

00:21:45 ◼   ► we're you know we're hell-bent on [TS]

00:21:47 ◼   ► services and it's showing in the results [TS]

00:21:52 ◼   ► and it's repeatable revenue from the [TS]

00:21:53 ◼   ► same customer base though it's sort of [TS]

00:21:55 ◼   ► the revenue that Wall Street likes [TS]

00:21:56 ◼   ► because you like we saw in China you [TS]

00:21:58 ◼   ► can't guarantee someone's going to buy [TS]

00:21:59 ◼   ► the next iPhone but are they're paying [TS]

00:22:00 ◼   ► you subscription revenue you have a [TS]

00:22:02 ◼   ► certain amount of period you can look [TS]

00:22:03 ◼   ► forward to that revenue well and I think [TS]

00:22:05 ◼   ► I think the other thing that and it ties [TS]

00:22:07 ◼   ► into by arguing [TS]

00:22:09 ◼   ► on the software being more important [TS]

00:22:10 ◼   ► than the hardware in terms of not in any [TS]

00:22:14 ◼   ► particular quarter but in the long run [TS]

00:22:16 ◼   ► of having a loyal customer base that [TS]

00:22:19 ◼   ► when they go to replace their blank [TS]

00:22:21 ◼   ► whether it's their watch or whether it's [TS]

00:22:23 ◼   ► their phone or whether it's their laptop [TS]

00:22:25 ◼   ► if they've already got an Apple one [TS]

00:22:27 ◼   ► they're going to buy another Apple one [TS]

00:22:29 ◼   ► yeah and to have the services revenue is [TS]

00:22:34 ◼   ► the sign that they're creating new ways [TS]

00:22:36 ◼   ► that make more stickiness in that regard [TS]

00:22:39 ◼   ► yeah I mean it's good in both directions [TS]

00:22:41 ◼   ► too and I think they've even said this [TS]

00:22:42 ◼   ► on the call is that you not in these [TS]

00:22:44 ◼   ► terms though is that you can either [TS]

00:22:45 ◼   ► double your amount of customers or you [TS]

00:22:47 ◼   ► can double the amount of revenue you get [TS]

00:22:48 ◼   ► from your customers and both of them [TS]

00:22:49 ◼   ► result in substantial increases and as [TS]

00:22:51 ◼   ► Apple starts to reach those those big [TS]

00:22:53 ◼   ► numbers where it's really hard to start [TS]

00:22:55 ◼   ► opening up new iPhone markets you've got [TS]

00:22:56 ◼   ► Verizon you've got international [TS]

00:22:57 ◼   ► carriers you've got China Mobile getting [TS]

00:22:59 ◼   ► people on to higher revenue streams with [TS]

00:23:01 ◼   ► things like subscription services just [TS]

00:23:02 ◼   ► creates more value from each customer [TS]

00:23:04 ◼   ► all right and I think it's important too [TS]

00:23:06 ◼   ► because Apple is if Apple is Apple [TS]

00:23:09 ◼   ► they're never going to they're never [TS]

00:23:12 ◼   ► going to have market share like monopoly [TS]

00:23:14 ◼   ► market share of these products because [TS]

00:23:16 ◼   ► they're just they just does it's just [TS]

00:23:18 ◼   ► not what Apple does is make products [TS]

00:23:19 ◼   ► that are so low-priced [TS]

00:23:22 ◼   ► as to you know take over the commodity [TS]

00:23:25 ◼   ► level market I mean it just it wouldn't [TS]

00:23:27 ◼   ► an Apple that tried to do that would no [TS]

00:23:29 ◼   ► longer be recognizable as the Apple we [TS]

00:23:31 ◼   ► know there's certain markets they just [TS]

00:23:33 ◼   ► choose not to compete in right and you [TS]

00:23:35 ◼   ► know it's you know whatever percentage [TS]

00:23:37 ◼   ► of the PC market they have four five six [TS]

00:23:40 ◼   ► 10% whatever you want to call it you [TS]

00:23:42 ◼   ► know their market of the phone you know [TS]

00:23:45 ◼   ► is higher than significantly higher than [TS]

00:23:47 ◼   ► that but it still is a minority and not [TS]

00:23:50 ◼   ► even close to 50% it's you know even in [TS]

00:23:53 ◼   ► the most popular iPhone countries it's [TS]

00:23:55 ◼   ► you know 20% something like that is [TS]

00:23:57 ◼   ► where we see the differential between [TS]

00:23:59 ◼   ► the market share and their profit share [TS]

00:24:00 ◼   ► right and you know being able to get [TS]

00:24:02 ◼   ► more money out of the existing customers [TS]

00:24:04 ◼   ► is a path to growth that is it lets them [TS]

00:24:08 ◼   ► still be Apple there was one other thing [TS]

00:24:10 ◼   ► that I thought was really interesting [TS]

00:24:11 ◼   ► and that's when he was talking about [TS]

00:24:12 ◼   ► Apple watch and they still won't give [TS]

00:24:14 ◼   ► numbers they did the Amazon like thing [TS]

00:24:15 ◼   ► where they said we had almost twice the [TS]

00:24:17 ◼   ► amount of sales as last year so X was [TS]

00:24:19 ◼   ► last year this was 2x but then Tim Cook [TS]

00:24:21 ◼   ► said that if you take Apple watch [TS]

00:24:22 ◼   ► you combine it with air pods and with [TS]

00:24:24 ◼   ► beats although it wasn't specific which [TS]

00:24:26 ◼   ► beats products just two w one or all of [TS]

00:24:27 ◼   ► them that might be halogen 500 company [TS]

00:24:30 ◼   ► yeah my guess is this there's a large [TS]

00:24:31 ◼   ► amount of beats money in there it makes [TS]

00:24:33 ◼   ► a fortune 500 company yeah yeah well [TS]

00:24:39 ◼   ► let's take a break and we'll come back [TS]

00:24:40 ◼   ► to that cuz I have some comments on them [TS]

00:24:42 ◼   ► the watch but let me take a break and [TS]

00:24:46 ◼   ► thank our first sponsor it's a good [TS]

00:24:48 ◼   ► friend of ours you know [TS]

00:24:50 ◼   ► Squarespace Squarespace is the place to [TS]

00:24:54 ◼   ► go if you need to make a new website I [TS]

00:24:56 ◼   ► say this all the time they sponsored the [TS]

00:24:58 ◼   ► show for a long time I'm telling you [TS]

00:25:01 ◼   ► right now next time you have an idea for [TS]

00:25:02 ◼   ► a website any kind of website any [TS]

00:25:05 ◼   ► project that needs a website a podcast a [TS]

00:25:07 ◼   ► store try it at Squarespace first you [TS]

00:25:11 ◼   ► will be if you haven't recently or never [TS]

00:25:14 ◼   ► have you will be surprised at how easy [TS]

00:25:16 ◼   ► and flexible Squarespace is to create a [TS]

00:25:18 ◼   ► website how non totally non-technical [TS]

00:25:21 ◼   ► you have to be you just do it right [TS]

00:25:24 ◼   ► there in the website you see the website [TS]

00:25:26 ◼   ► you pick from a template it looks like [TS]

00:25:29 ◼   ► it you see it right there on your screen [TS]

00:25:30 ◼   ► and then if you want to move elements [TS]

00:25:32 ◼   ► around you just drag them around if you [TS]

00:25:35 ◼   ► are technically savvy enough to want to [TS]

00:25:37 ◼   ► put your own JavaScript in or do some [TS]

00:25:39 ◼   ► modify the CSS or something like that [TS]

00:25:41 ◼   ► you can do it you would be surprised [TS]

00:25:44 ◼   ► here's the other thing too because part [TS]

00:25:46 ◼   ► of the easiness of using Squarespace is [TS]

00:25:47 ◼   ► this ability to pick templates and they [TS]

00:25:49 ◼   ► have so many of them from different [TS]

00:25:50 ◼   ► types of sites and have a [TS]

00:25:51 ◼   ► professional-looking website but I hear [TS]

00:25:54 ◼   ► that if I hear that if I'm listening to [TS]

00:25:56 ◼   ► this show and I hear that my thought [TS]

00:25:57 ◼   ► turns to well I don't want to have a [TS]

00:25:59 ◼   ► cookie cutter site that looks like [TS]

00:26:00 ◼   ► everybody else's like say back in the [TS]

00:26:03 ◼   ► day when you'd get like a blogspot blog [TS]

00:26:06 ◼   ► and you'd know it was a blogspot blog [TS]

00:26:08 ◼   ► because they were like two or three [TS]

00:26:09 ◼   ► templates to choose from and everybody [TS]

00:26:11 ◼   ► had one of those Squarespace has so many [TS]

00:26:13 ◼   ► templates to choose from and the [TS]

00:26:14 ◼   ► templates they have you can modify them [TS]

00:26:16 ◼   ► so easily to customize them to your own [TS]

00:26:18 ◼   ► brand that you don't even know when [TS]

00:26:20 ◼   ► you're on a Squarespace site it's [TS]

00:26:21 ◼   ► unbelievable to me how many sites when [TS]

00:26:23 ◼   ► you start poking around and looking in [TS]

00:26:25 ◼   ► the source code and you see that it's [TS]

00:26:26 ◼   ► Squarespace site you're like wow I never [TS]

00:26:28 ◼   ► would have guessed that because it looks [TS]

00:26:29 ◼   ► so uniquely branded to this restaurant [TS]

00:26:33 ◼   ► or a clothing company or whatever it is [TS]

00:26:36 ◼   ► you're trying to make so next time you [TS]

00:26:39 ◼   ► make a website build it with Squarespace [TS]

00:26:41 ◼   ► and use the code Gruber my last name and [TS]

00:26:44 ◼   ► when you pay you will save 10% off your [TS]

00:26:48 ◼   ► first order remember that next time you [TS]

00:26:49 ◼   ► need to make a website so I I sometimes [TS]

00:26:54 ◼   ► I worry that I repeat myself too often [TS]

00:26:56 ◼   ► Renae that I've got like three or four [TS]

00:26:59 ◼   ► columns and I just can't keep writing [TS]

00:27:00 ◼   ► them all over and over again but the one [TS]

00:27:03 ◼   ► I just wrote a couple weeks ago was some [TS]

00:27:06 ◼   ► I forget the guys name but somebody [TS]

00:27:07 ◼   ► wrote a column that the Apple watch [TS]

00:27:09 ◼   ► hasn't changed Apple it hasn't done [TS]

00:27:11 ◼   ► anything for Apple at all and I think if [TS]

00:27:15 ◼   ► you read between the lines of his [TS]

00:27:16 ◼   ► argument it's that it is more or less [TS]

00:27:18 ◼   ► that it the I Apple watch is nowhere [TS]

00:27:21 ◼   ► near I phone size product and probably [TS]

00:27:24 ◼   ► never will be and therefore it's it's [TS]

00:27:26 ◼   ► meaningless to Apple or close to [TS]

00:27:28 ◼   ► meaningless and I just think that's such [TS]

00:27:32 ◼   ► a wrong way to look at it it's like [TS]

00:27:34 ◼   ► there's there really might there might [TS]

00:27:36 ◼   ► never be another iPhone size product in [TS]

00:27:38 ◼   ► any industry let alone Apple like Apple [TS]

00:27:40 ◼   ► may not ever have an iPhone size hit it [TS]

00:27:43 ◼   ► may well be that no other company has an [TS]

00:27:45 ◼   ► iPhone size hit in terms of just how [TS]

00:27:48 ◼   ► much money and how many people around [TS]

00:27:50 ◼   ► the world the market size is and so I [TS]

00:27:54 ◼   ► ain't judged by that nothing Apple ever [TS]

00:27:57 ◼   ► does will succeed by that merit and I [TS]

00:28:00 ◼   ► think if Apple internally took that [TS]

00:28:02 ◼   ► mindset it would paralyze the company [TS]

00:28:03 ◼   ► yeah yeah I mean i phone creates more [TS]

00:28:07 ◼   ► profit than companies that have [TS]

00:28:08 ◼   ► oligopoly control over scarce fossil [TS]

00:28:10 ◼   ► fuel resources and people forget that [TS]

00:28:12 ◼   ► perspective and they create this false [TS]

00:28:14 ◼   ► equivalency where everything for Apple [TS]

00:28:16 ◼   ► has to be measured by the success of [TS]

00:28:18 ◼   ► iPhone and then everything is seemed to [TS]

00:28:19 ◼   ► be lacking where for other companies you [TS]

00:28:21 ◼   ► could sell three surface books and it's [TS]

00:28:23 ◼   ► a rousing success you get 19 articles [TS]

00:28:25 ◼   ► out of that when we saw that I think I [TS]

00:28:27 ◼   ► forget if it was Neil Seibert or Ben [TS]

00:28:29 ◼   ► Benedict Evans who tweeted that based on [TS]

00:28:32 ◼   ► their metrics Apple watch vastly outsold [TS]

00:28:35 ◼   ► by it was a factor of two or three [TS]

00:28:37 ◼   ► Amazon's Alexa echo product and yet [TS]

00:28:41 ◼   ► people were telling how great and [TS]

00:28:42 ◼   ► transformative echo was and what a [TS]

00:28:44 ◼   ► dismal failure Apple watch was and it [TS]

00:28:45 ◼   ► was [TS]

00:28:46 ◼   ► lutely out of whack with anything [TS]

00:28:47 ◼   ► assembling any resemblance to facts [TS]

00:28:49 ◼   ► right it's it's graded on such a bizarre [TS]

00:28:52 ◼   ► curve and it's a perfect example because [TS]

00:28:54 ◼   ► Alexa like every other Amazon product [TS]

00:28:59 ◼   ► the echo doesn't get numbers reported [TS]

00:29:01 ◼   ► and Apple watch gets a Bezos curve of [TS]

00:29:04 ◼   ► twice as much as ever [TS]

00:29:07 ◼   ► yeah this games really important [TS]

00:29:09 ◼   ► technology you can kind of at least with [TS]

00:29:11 ◼   ► Apple watch it's in that other category [TS]

00:29:13 ◼   ► and you can there is a revenue number [TS]

00:29:15 ◼   ► for the you know the it's like the [TS]

00:29:18 ◼   ► headphones and beats and Apple TV and [TS]

00:29:26 ◼   ► Apple watch yeah [TS]

00:29:28 ◼   ► and given a Apple TV is almost certainly [TS]

00:29:33 ◼   ► pretty static that Gator hasn't been an [TS]

00:29:35 ◼   ► update there hasn't been a big [TS]

00:29:37 ◼   ► promotional push there hasn't been a big [TS]

00:29:38 ◼   ► change you know since the fall 2015 when [TS]

00:29:41 ◼   ► the current Apple Apple TV came out so [TS]

00:29:44 ◼   ► you know I it's pretty reasonable to [TS]

00:29:46 ◼   ► assume Apple TV is flat at best earpods [TS]

00:29:50 ◼   ► is a little hard to gauge for this [TS]

00:29:51 ◼   ► quarter because they're obviously [TS]

00:29:52 ◼   ► popular enough that they're backordered [TS]

00:29:55 ◼   ► but there's something strange yeah it's [TS]

00:29:56 ◼   ► hard to connect just how constrained [TS]

00:30:00 ◼   ► they are and I think you pointed out [TS]

00:30:02 ◼   ► that they're not sold at a huge margin [TS]

00:30:04 ◼   ► there right sold as cheaply as possible [TS]

00:30:06 ◼   ► well the revenue number though might be [TS]

00:30:08 ◼   ► big because they don't you know they're [TS]

00:30:09 ◼   ► not going to break that down by profit [TS]

00:30:10 ◼   ► but I have reason to believe that [TS]

00:30:12 ◼   ► they're theirs they're not a big [TS]

00:30:13 ◼   ► moneymaker at this point and it makes [TS]

00:30:16 ◼   ► sense that obviously it must be hard to [TS]

00:30:18 ◼   ► make because the you know that's four [TS]

00:30:20 ◼   ► months in and there's still six weeks [TS]

00:30:21 ◼   ► out if you go to order them as an aside [TS]

00:30:24 ◼   ► on that for anybody looking to buy our [TS]

00:30:26 ◼   ► pods I've every wrote about that on [TS]

00:30:28 ◼   ► during fireball a couple times recently [TS]

00:30:30 ◼   ► and a couple people have written to me [TS]

00:30:31 ◼   ► and said that they scored earpods [TS]

00:30:35 ◼   ► it on the fly recently from like 18 t [TS]

00:30:40 ◼   ► stores they're like Verizon stores that [TS]

00:30:43 ◼   ► there's they're they're showing up if [TS]

00:30:45 ◼   ► you're you know if you really want them [TS]

00:30:47 ◼   ► and you don't want to wait six weeks [TS]

00:30:48 ◼   ► try-try stores like AT&T and Best Buy [TS]

00:30:50 ◼   ► and stuff like that and you might just [TS]

00:30:52 ◼   ► get lucky and get them before you would [TS]

00:30:54 ◼   ► if you place an order at Apple comm so [TS]

00:30:56 ◼   ► that's my my tip for anybody out there [TS]

00:30:57 ◼   ► looking for airport [TS]

00:30:59 ◼   ► but you know I I think it but the [TS]

00:31:01 ◼   ► numbers from those that Apple reported [TS]

00:31:03 ◼   ► another backup you know the idea that [TS]

00:31:05 ◼   ► Apple watch is selling pretty well and [TS]

00:31:08 ◼   ► personally I mean this is obviously very [TS]

00:31:10 ◼   ► unscientific but personally I see more I [TS]

00:31:15 ◼   ► see more and more Apple watches on real [TS]

00:31:16 ◼   ► people out in the streets than ever [TS]

00:31:18 ◼   ► before I see a lot an awful lot of them [TS]

00:31:20 ◼   ► I went to the deli the other day just to [TS]

00:31:23 ◼   ► order a Montreal smoked meat sandwich [TS]

00:31:24 ◼   ► and the waiter was wearing an Apple [TS]

00:31:26 ◼   ► watch and I asked him highlight and he [TS]

00:31:27 ◼   ► said best thing in the world well I'll [TS]

00:31:28 ◼   ► have our phones with us when we work but [TS]

00:31:30 ◼   ► I can still check my text messages on my [TS]

00:31:31 ◼   ► Apple watch now there's a big [TS]

00:31:34 ◼   ► construction project across the street [TS]

00:31:36 ◼   ► from from my house and I just I noticed [TS]

00:31:39 ◼   ► the other day that the guy who controls [TS]

00:31:41 ◼   ► the crane is wearing an Apple watch and [TS]

00:31:45 ◼   ► I thought that you know it might be the [TS]

00:31:46 ◼   ► same that that might be the exact reason [TS]

00:31:49 ◼   ► for that is you know that he you know [TS]

00:31:51 ◼   ► while he's doing this he can't have his [TS]

00:31:52 ◼   ► phone out but he if he glances at his [TS]

00:31:55 ◼   ► wrist he can see you know text [TS]

00:31:56 ◼   ► notifications I don't know but just [TS]

00:31:58 ◼   ► seems you know I see him all the time I [TS]

00:32:00 ◼   ► see a lawful autumn it backs up daily [TS]

00:32:02 ◼   ► and again not like it's as popular as [TS]

00:32:03 ◼   ► the iPhone but nothing is really [TS]

00:32:06 ◼   ► literally but I sure see him a lot I [TS]

00:32:09 ◼   ► really do it does a subset of important [TS]

00:32:12 ◼   ► brief tasks for you in a way that saves [TS]

00:32:14 ◼   ► you having to go to your iPhone the same [TS]

00:32:15 ◼   ► way your iPhone does a subset a really [TS]

00:32:17 ◼   ► important task that stays you having to [TS]

00:32:18 ◼   ► go to your Mac yeah but why is that [TS]

00:32:20 ◼   ► important those are to you while we're [TS]

00:32:21 ◼   ► talking about Apple watch we can tie in [TS]

00:32:23 ◼   ► the other what story from this week [TS]

00:32:24 ◼   ► where Apple Insider discovered that a [TS]

00:32:29 ◼   ► couple of big-name apps iPhone apps have [TS]

00:32:32 ◼   ► dropped their Apple watch counterparts [TS]

00:32:34 ◼   ► was it Amazon eBay and yet the one up to [TS]

00:32:38 ◼   ► me was most telling was Google Maps yeah [TS]

00:32:41 ◼   ► I have to admit when I first heard this [TS]

00:32:42 ◼   ► story my guess and I checked into it but [TS]

00:32:44 ◼   ► I couldn't get an answer was that it [TS]

00:32:46 ◼   ► happened at the same time they launched [TS]

00:32:47 ◼   ► their iMessage app I just thought they [TS]

00:32:48 ◼   ► screwed up something in their bundle and [TS]

00:32:50 ◼   ► enabled the iMessage app and disabled [TS]

00:32:51 ◼   ► the Apple watch app by accident and I [TS]

00:32:54 ◼   ► don't know if that's true or they're [TS]

00:32:55 ◼   ► going to be updating it for our watch OS [TS]

00:32:56 ◼   ► four or whatever but their state their [TS]

00:32:57 ◼   ► subsequent statement made it sound like [TS]

00:32:59 ◼   ► it was it was returning it was not a [TS]

00:33:00 ◼   ► deliberate removal well the but the [TS]

00:33:03 ◼   ► telling part is that it it seemingly [TS]

00:33:05 ◼   ► happened weeks ago and nobody really [TS]

00:33:07 ◼   ► noticed a smartie noticed right away and [TS]

00:33:09 ◼   ► she's like what's happening here and [TS]

00:33:11 ◼   ► started looking into it but you [TS]

00:33:12 ◼   ► wasn't huge story now I just think [TS]

00:33:15 ◼   ► though I really do I think and I think [TS]

00:33:17 ◼   ► it's you know I think the emphasis that [TS]

00:33:19 ◼   ► Apple I think Apple is fully aware of [TS]

00:33:21 ◼   ► this based on what they worked on for [TS]

00:33:24 ◼   ► iOS 3 and what how they build it that [TS]

00:33:29 ◼   ► even with the iPhone it was true that [TS]

00:33:32 ◼   ► they'd you know they certainly obviously [TS]

00:33:33 ◼   ► at the outset didn't see how much a how [TS]

00:33:36 ◼   ► big a deal it would be there be an app [TS]

00:33:38 ◼   ► platform they might have had the inkling [TS]

00:33:41 ◼   ► but it certainly you know and I think [TS]

00:33:43 ◼   ► it's played out in ways that that even [TS]

00:33:46 ◼   ► they couldn't foresee I don't think [TS]

00:33:48 ◼   ► Apple would have predicted in 2007 that [TS]

00:33:50 ◼   ► the iPhone would become the most [TS]

00:33:52 ◼   ► important and popular camera in the [TS]

00:33:54 ◼   ► world it you know it's you don't know [TS]

00:33:57 ◼   ► you know and I feel like they rolled out [TS]

00:33:59 ◼   ► the Apple watch and obviously I think [TS]

00:34:02 ◼   ► initially thought that apps were going [TS]

00:34:04 ◼   ► to be a bigger part of what might make [TS]

00:34:06 ◼   ► it popular and in real use in even their [TS]

00:34:10 ◼   ► own use like not just surveying users [TS]

00:34:12 ◼   ► but I think you know Apple people using [TS]

00:34:15 ◼   ► the watch themselves that the health [TS]

00:34:17 ◼   ► tracking and the using it as a [TS]

00:34:21 ◼   ► notifications input and output device [TS]

00:34:25 ◼   ► are far more important than the app [TS]

00:34:29 ◼   ► story I think that's absolutely true [TS]

00:34:31 ◼   ► it's almost like they over compensated [TS]

00:34:33 ◼   ► for the lack of an app store at launch [TS]

00:34:34 ◼   ► for iPhone by making sure no matter what [TS]

00:34:36 ◼   ► happens or how poorly it performed they [TS]

00:34:38 ◼   ► had one available for Apple watch and [TS]

00:34:39 ◼   ► almost the the heartbreaking part about [TS]

00:34:42 ◼   ► that is if they launched it at the same [TS]

00:34:44 ◼   ► time that extensibility was launched and [TS]

00:34:46 ◼   ► extensibility was one of the [TS]

00:34:47 ◼   ► technologies that allowed them to have [TS]

00:34:48 ◼   ► apps on the Apple watch but they at the [TS]

00:34:50 ◼   ► same time that like a you've written [TS]

00:34:51 ◼   ► this really well like what HTTP what web [TS]

00:34:55 ◼   ► services were to websites where they [TS]

00:34:57 ◼   ► basically didn't need a website anymore [TS]

00:34:58 ◼   ► you could just provide an API extensions [TS]

00:35:00 ◼   ► were like that to apps you didn't [TS]

00:35:01 ◼   ► necessarily need a binary blob on the [TS]

00:35:03 ◼   ► same device you could have features and [TS]

00:35:05 ◼   ► functionality that could be on the same [TS]

00:35:06 ◼   ► device but what could be projected or [TS]

00:35:08 ◼   ► surfaced in many different places in [TS]

00:35:10 ◼   ► many different ways and they had that [TS]

00:35:12 ◼   ► with Apple watch but instead they sort [TS]

00:35:14 ◼   ► of took this mentality of binary blobs [TS]

00:35:16 ◼   ► where you had to have an app on a [TS]

00:35:17 ◼   ► carousel screen that you could tap with [TS]

00:35:18 ◼   ► your finger to launch and we've seen [TS]

00:35:20 ◼   ► them move away from that but I think in [TS]

00:35:22 ◼   ► hindsight we're going to see that the [TS]

00:35:23 ◼   ► app the watch has to be a [TS]

00:35:25 ◼   ► function uh so a feature device and not [TS]

00:35:28 ◼   ► an app device yeah and I think you know [TS]

00:35:31 ◼   ► it and it I played around I don't want [TS]

00:35:34 ◼   ► to he's a friend and I appreciate the [TS]

00:35:37 ◼   ► feature but Marco Arment has worked on a [TS]

00:35:39 ◼   ► much improved watch app for overcast and [TS]

00:35:43 ◼   ► I know that he spent an awful lot of [TS]

00:35:46 ◼   ► time in the last few months on it and it [TS]

00:35:50 ◼   ► shipped recently and then over the [TS]

00:35:52 ◼   ► weekend I thought well I was I was was [TS]

00:35:54 ◼   ► gonna go for a run and I thought yeah I [TS]

00:35:56 ◼   ► in theory I would love to go with just [TS]

00:35:58 ◼   ► my watch and air pods um and not have to [TS]

00:36:03 ◼   ► figure out a way to carry my phone [TS]

00:36:06 ◼   ► because there's just no great way I've [TS]

00:36:09 ◼   ► got some kind of like belt like thing [TS]

00:36:10 ◼   ► that I put underneath my shirt where I [TS]

00:36:12 ◼   ► can strap it in [TS]

00:36:13 ◼   ► but I'd you know I don't want to run [TS]

00:36:14 ◼   ► with it in my pockets I don't like using [TS]

00:36:16 ◼   ► an armband there's no good way to go [TS]

00:36:18 ◼   ► with a phone um so I thought well I'm [TS]

00:36:20 ◼   ► participer fect head I'm not just trying [TS]

00:36:22 ◼   ► this watch app of overcast out I'm you [TS]

00:36:26 ◼   ► know I actually actually want this [TS]

00:36:29 ◼   ► feature I would love to do this and it [TS]

00:36:31 ◼   ► was absolutely horrible it's just [TS]

00:36:33 ◼   ► terrible it was hard to get it was hard [TS]

00:36:34 ◼   ► to get it installed on the watch in the [TS]

00:36:36 ◼   ► first place which shouldn't be the case [TS]

00:36:37 ◼   ► it was like that from the watch app on [TS]

00:36:41 ◼   ► the phone it said installing and it just [TS]

00:36:43 ◼   ► said installing dot dot forever and then [TS]

00:36:47 ◼   ► once it was installed getting an audio [TS]

00:36:49 ◼   ► it's like getting audio from the phone [TS]

00:36:51 ◼   ► to the watch takes forever and even once [TS]

00:36:54 ◼   ► it did and I got a I got a podcast over [TS]

00:36:56 ◼   ► there to listen to and I went to play I [TS]

00:36:58 ◼   ► got my air pod sync to it the audio was [TS]

00:37:01 ◼   ► like whisper quiet and and I'd you know [TS]

00:37:03 ◼   ► I mentioned this to Marco and it's [TS]

00:37:05 ◼   ► obviously not always the case and other [TS]

00:37:06 ◼   ► people are saying it happens sometimes [TS]

00:37:07 ◼   ► but he has no idea why uh it just and it [TS]

00:37:11 ◼   ► was I wasted like 45 minutes and I was [TS]

00:37:13 ◼   ► just like you know what screw it I'm [TS]

00:37:14 ◼   ► just going with my phone like I always [TS]

00:37:17 ◼   ► do it was so much better I mean it's [TS]

00:37:20 ◼   ► just it's just too finicky it's way too [TS]

00:37:22 ◼   ► finicky whereas there are other things [TS]

00:37:24 ◼   ► like do you ever use this app you ever [TS]

00:37:28 ◼   ► use the service nuzzle and use these egl [TS]

00:37:31 ◼   ► I've seen it yeah I've used it on the [TS]

00:37:32 ◼   ► iPhone it's really great it's it's a [TS]

00:37:34 ◼   ► service you sign in with your Twitter [TS]

00:37:35 ◼   ► account and what it does is [TS]

00:37:38 ◼   ► it's really really great if anybody out [TS]

00:37:41 ◼   ► there wants to try it I find a tons of [TS]

00:37:43 ◼   ► stuff that I link to wondering fireball [TS]

00:37:44 ◼   ► from it but what it does is it follows [TS]

00:37:45 ◼   ► your own the people you follow on [TS]

00:37:47 ◼   ► Twitter and when a certain threshold of [TS]

00:37:49 ◼   ► the people you follow have all tweeted [TS]

00:37:51 ◼   ► the same link or a link to the same [TS]

00:37:53 ◼   ► article it gives you a notification [TS]

00:37:54 ◼   ► about it on the assumption that if like [TS]

00:37:56 ◼   ► five people you follow have all tweeted [TS]

00:37:58 ◼   ► the same link to blank you want to know [TS]

00:38:01 ◼   ► about blank and it gives you a [TS]

00:38:02 ◼   ► notification for that and when I first [TS]

00:38:05 ◼   ► heard about it I thought that this is [TS]

00:38:08 ◼   ► going to be something that I'm going to [TS]

00:38:09 ◼   ► try and quickly get rid of because I'm [TS]

00:38:10 ◼   ► sort of sensitive to getting to I don't [TS]

00:38:12 ◼   ► want too many notifications from [TS]

00:38:13 ◼   ► anything I find out whatever algorithm [TS]

00:38:16 ◼   ► nuzzle uses to do this I mean maybe it's [TS]

00:38:19 ◼   ► super simple maybe it's just I don't [TS]

00:38:20 ◼   ► know you know just but just the idea [TS]

00:38:22 ◼   ► that if five of the people I follow on [TS]

00:38:25 ◼   ► Twitter link the same thing I want to [TS]

00:38:27 ◼   ► know about it [TS]

00:38:27 ◼   ► the ratio of interesting links to the [TS]

00:38:32 ◼   ► times they notify me is so high that I [TS]

00:38:34 ◼   ► have no interest in turning it off but [TS]

00:38:38 ◼   ► they don't even have a watch app but the [TS]

00:38:39 ◼   ► notifications go to my watch just [TS]

00:38:41 ◼   ► automatically like you don't you know [TS]

00:38:42 ◼   ► like the the only thing I would want [TS]

00:38:44 ◼   ► from them on my watch they don't even [TS]

00:38:45 ◼   ► need a watch out for because the [TS]

00:38:46 ◼   ► notifications if my phone is in my [TS]

00:38:48 ◼   ► pocket automatically go to my watch it's [TS]

00:38:51 ◼   ► I remember so Ellis was saying that when [TS]

00:38:53 ◼   ► I forget when right watch was introduced [TS]

00:38:55 ◼   ► that he and his opinion developer should [TS]

00:38:57 ◼   ► spend more time making a really awesome [TS]

00:38:58 ◼   ► notification experience and not worry [TS]

00:39:00 ◼   ► about an app at all and I got that turns [TS]

00:39:02 ◼   ► out to be candy advice right so like [TS]

00:39:04 ◼   ► nuzzle doesn't even have a watch app and [TS]

00:39:06 ◼   ► to me the watch app that they are that I [TS]

00:39:08 ◼   ► get is exactly what I want yeah and if [TS]

00:39:11 ◼   ► poor Marcos spent months working on an [TS]

00:39:13 ◼   ► advanced watch app that maybe someday [TS]

00:39:16 ◼   ► will turn into something that's actually [TS]

00:39:18 ◼   ► good and useful on like a future version [TS]

00:39:20 ◼   ► of the wot deck that maybe the [TS]

00:39:21 ◼   ► foundation will be there so that when a [TS]

00:39:23 ◼   ► watch actually gets its own LTE or [TS]

00:39:24 ◼   ► something like that it actually will be [TS]

00:39:27 ◼   ► useful but he spent all this time on it [TS]

00:39:29 ◼   ► and it's I I don't want to use it at all [TS]

00:39:31 ◼   ► even though I use overcast almost every [TS]

00:39:32 ◼   ► day yeah I've tried it I like it it has [TS]

00:39:35 ◼   ► the issues that you mentioned and I [TS]

00:39:36 ◼   ► always have my iPhone with me even if [TS]

00:39:38 ◼   ► I'm out so I haven't had the I haven't [TS]

00:39:40 ◼   ► been forced to use it but it's it's a [TS]

00:39:42 ◼   ► problem that people want solved but it [TS]

00:39:43 ◼   ► is not something that's technically [TS]

00:39:44 ◼   ► solvable right now all right like in all [TS]

00:39:46 ◼   ► honesty i if overcast didn't have a [TS]

00:39:48 ◼   ► watch app it wouldn't matter to me at [TS]

00:39:50 ◼   ► all because the only thing I ever [TS]

00:39:51 ◼   ► do I can do through the now plane anyway [TS]

00:39:53 ◼   ► yeah so I don't know it's I feel like [TS]

00:39:58 ◼   ► there's something that Apple I think [TS]

00:40:01 ◼   ► they're well aware of it that's what I [TS]

00:40:02 ◼   ► think and I think we'll see more I think [TS]

00:40:04 ◼   ► you'll see it go that way yeah I think [TS]

00:40:06 ◼   ► it's a classic example of the you know [TS]

00:40:07 ◼   ► they saw everything is a nail they had [TS]

00:40:09 ◼   ► an app store hammer and then everything [TS]

00:40:10 ◼   ► looked like an app nail to them and in [TS]

00:40:12 ◼   ► hindsight you can look back and say we [TS]

00:40:14 ◼   ► needed a different approach for this [TS]

00:40:15 ◼   ► yeah I think they recognize they have [TS]

00:40:17 ◼   ► known that for over a year and a half [TS]

00:40:18 ◼   ► which is why we saw watch it was three [TS]

00:40:20 ◼   ► and we'll see watch it was four be [TS]

00:40:21 ◼   ► different yeah yeah be interesting to [TS]

00:40:26 ◼   ► see what they do with that [TS]

00:40:27 ◼   ► anything else on quarterly results [TS]

00:40:30 ◼   ► before we move on no I mean I saw at the [TS]

00:40:34 ◼   ► same time he was a Tim Cook was on Jim [TS]

00:40:36 ◼   ► Cramer and said they don't have a watch [TS]

00:40:38 ◼   ► to lose thirty pounds right which I [TS]

00:40:39 ◼   ► don't know where that was from like and [TS]

00:40:43 ◼   ► again and Tim Cook does not strike me as [TS]

00:40:45 ◼   ► a bullshitter right now like he is I if [TS]

00:40:49 ◼   ► he says he lost thirty pounds I think he [TS]

00:40:50 ◼   ► probably lost thirty pounds but I mean [TS]

00:40:53 ◼   ► I've seen him on stage every six months [TS]

00:40:56 ◼   ► for five six years and there was never [TS]

00:41:00 ◼   ► any point where it looked like he put on [TS]

00:41:02 ◼   ► you know or put on our lost thirty [TS]

00:41:04 ◼   ► pounds yeah I mean that's but anyway my [TS]

00:41:07 ◼   ► power to him it just it was amazing um [TS]

00:41:09 ◼   ► what did they Annette it was a pretty [TS]

00:41:11 ◼   ► good interview I mean for you you know a [TS]

00:41:14 ◼   ► you know I give Jim Cramer credit for a [TS]

00:41:17 ◼   ► guy who's not really an Apple person but [TS]

00:41:20 ◼   ► rather a finance person I thought it was [TS]

00:41:23 ◼   ► a pretty informative interview I think [TS]

00:41:26 ◼   ► that this announcement of a billion 1 [TS]

00:41:27 ◼   ► billion dollar fund to promote advanced [TS]

00:41:32 ◼   ► manufacturing jobs in the u.s. is pretty [TS]

00:41:33 ◼   ► interesting that's that's wood cooking [TS]

00:41:35 ◼   ► out the details aren't out yet I think [TS]

00:41:37 ◼   ► he said to come in at the end of May um [TS]

00:41:39 ◼   ► I think so it was it was entirely I mean [TS]

00:41:46 ◼   ► it was super interesting we start to [TS]

00:41:47 ◼   ► decompose interest the relationship that [TS]

00:41:48 ◼   ► Apple has with the administration who is [TS]

00:41:50 ◼   ► heavily pro US jobs and US manufacturing [TS]

00:41:54 ◼   ► all these elements where Apple has a [TS]

00:41:56 ◼   ► massive manufacturing capacity outside [TS]

00:41:58 ◼   ► the US but also a massive amount of [TS]

00:42:00 ◼   ► money which we heard about the call as [TS]

00:42:01 ◼   ► well they want to repatriate and the [TS]

00:42:03 ◼   ► last time that happened was under the [TS]

00:42:04 ◼   ► Bush administration [TS]

00:42:05 ◼   ► this administration might be more [TS]

00:42:06 ◼   ► amenable so I think it's a very careful [TS]

00:42:08 ◼   ► balancing act right and it's a yeah we [TS]

00:42:14 ◼   ► cuz it one thing that has happened in [TS]

00:42:19 ◼   ► recent years is apples had this large [TS]

00:42:23 ◼   ► cash hoard for a long time now although [TS]

00:42:28 ◼   ► the definition of large keeps keeps [TS]

00:42:30 ◼   ► growing letting up the waistband but it [TS]

00:42:33 ◼   ► has changed even though they've sort of [TS]

00:42:35 ◼   ► capped it off now we're like it's not [TS]

00:42:37 ◼   ► really growing so much in rather however [TS]

00:42:40 ◼   ► much it would be growing they just keep [TS]

00:42:41 ◼   ► giving to the the shareholder whatever [TS]

00:42:44 ◼   ► they call it it's growing despite the [TS]

00:42:46 ◼   ► biggest give back and one of the biggest [TS]

00:42:48 ◼   ► give backs of corporate history right [TS]

00:42:49 ◼   ► but one shift that has happened though [TS]

00:42:51 ◼   ► is that their us Holdings have shrunk [TS]

00:42:53 ◼   ► and it's almost entirely overseas what [TS]

00:42:56 ◼   ► they have now is almost entirely [TS]

00:42:58 ◼   ► overseas and so for like this billion [TS]

00:43:00 ◼   ► dollar fund in in the u.s. they're going [TS]

00:43:03 ◼   ► to borrow to get the money rather than [TS]

00:43:04 ◼   ► use it because they don't really have a [TS]

00:43:06 ◼   ► bill you know they have a billion but [TS]

00:43:08 ◼   ► it's it's it I don't have it on me right [TS]

00:43:13 ◼   ► to my to my wallet over in Ireland now [TS]

00:43:17 ◼   ► very true but it'll be interesting to [TS]

00:43:20 ◼   ► see you know what comes to that and it's [TS]

00:43:22 ◼   ► you know it I don't think Apple is a and [TS]

00:43:28 ◼   ► they've been thinking about this for a [TS]

00:43:29 ◼   ► while I mean it and and you know with [TS]

00:43:32 ◼   ► the Mac Pro that was 2013 where they [TS]

00:43:34 ◼   ► announced that it would be assembled in [TS]

00:43:36 ◼   ► the US I mean so it's not like they [TS]

00:43:38 ◼   ► haven't like like all of a sudden just [TS]

00:43:40 ◼   ► with Trump in office they're now looking [TS]

00:43:42 ◼   ► to toe the line on bringing [TS]

00:43:44 ◼   ► manufacturing jobs back to the US but I [TS]

00:43:49 ◼   ► I don't think and I think if there's a [TS]

00:43:50 ◼   ► trumpian aspect to it I don't think it's [TS]

00:43:53 ◼   ► so much about toeing the line or wanting [TS]

00:43:55 ◼   ► to please the Trump administration but [TS]

00:44:00 ◼   ► more a a pragmatic let's make sure we [TS]

00:44:05 ◼   ► don't get caught flat-footed if they [TS]

00:44:07 ◼   ► start a trade war with China or do [TS]

00:44:11 ◼   ► something impose some other you know [TS]

00:44:12 ◼   ► tariffs or something like that like [TS]

00:44:14 ◼   ► let's let's be ready for anything that [TS]

00:44:16 ◼   ► might happen now that the [TS]

00:44:18 ◼   ► somebody with his temperament and his [TS]

00:44:20 ◼   ► his stated policies toward you know [TS]

00:44:22 ◼   ► overseas manufacturing jobs is in office [TS]

00:44:24 ◼   ► it's almost like pre-emptive positioning [TS]

00:44:26 ◼   ► when they bought you know stake in DD in [TS]

00:44:29 ◼   ► China you know because those there's [TS]

00:44:30 ◼   ► certain volatility and that leadership [TS]

00:44:33 ◼   ► as well and it's true I think that was [TS]

00:44:36 ◼   ► back when they were doing the I factory [TS]

00:44:37 ◼   ► Series in New York Times and and that [TS]

00:44:39 ◼   ► was a big story and Apple you know [TS]

00:44:41 ◼   ► making Mac's MacBook Pro sorry Mac Pro's [TS]

00:44:44 ◼   ► in the US was a very good story for that [TS]

00:44:46 ◼   ► 2lbs you can see where this goes yeah it [TS]

00:44:50 ◼   ► will be an you know again you can say [TS]

00:44:53 ◼   ► like I saw it on CNBC after after the [TS]

00:44:58 ◼   ► Kramer thing had aired where somebody [TS]

00:45:00 ◼   ► was like you know given apples it you [TS]

00:45:04 ◼   ► know two hundred and fifty billion [TS]

00:45:05 ◼   ► dollar cash holdings and the you know [TS]

00:45:07 ◼   ► their quarterly revenue you know it's [TS]

00:45:11 ◼   ► easy to say a billion dollars isn't that [TS]

00:45:12 ◼   ► much to Apple but still a billion [TS]

00:45:14 ◼   ► dollars is a billion dollars and saying [TS]

00:45:16 ◼   ► you're going to commit a billion dollars [TS]

00:45:17 ◼   ► to assembling you know to advanced [TS]

00:45:19 ◼   ► assembly and manufacturing jobs in the [TS]

00:45:20 ◼   ► US is significant yeah I don't have $250 [TS]

00:45:24 ◼   ► you got to give $1 away still dollar you [TS]

00:45:25 ◼   ► got to give away right and it's you know [TS]

00:45:27 ◼   ► a billion there's a little different [TS]

00:45:29 ◼   ► than one dollar and it's any problem is [TS]

00:45:32 ◼   ► easy to solve provided you're not the [TS]

00:45:33 ◼   ► one in charge of solving it that's what [TS]

00:45:35 ◼   ► the media keeps forgetting I think let [TS]

00:45:41 ◼   ► me take another break here and thank our [TS]

00:45:42 ◼   ► next sponsor it's our good friends at [TS]

00:45:44 ◼   ► Casper you guys know Casper [TS]

00:45:45 ◼   ► they make obsessively engineered [TS]

00:45:48 ◼   ► mattress at a shockingly fair price we [TS]

00:45:50 ◼   ► just bought a new Casper mattress here [TS]

00:45:51 ◼   ► at the Gruber family home our son needed [TS]

00:45:54 ◼   ► a new bed got him a Casper he loves it [TS]

00:45:57 ◼   ► absolutely loves it he literally honest [TS]

00:45:59 ◼   ► to god he was mad at me that I didn't [TS]

00:46:01 ◼   ► get him one sooner it was that we were [TS]

00:46:06 ◼   ► that happy with it he's that happy with [TS]

00:46:08 ◼   ► it it's a great mattress so here's the [TS]

00:46:11 ◼   ► deal there's my favorite thing about [TS]

00:46:12 ◼   ► them they don't make you choose a type [TS]

00:46:15 ◼   ► of mattress when you need a mattress you [TS]

00:46:17 ◼   ► go there you pick a size and that's all [TS]

00:46:19 ◼   ► and then it comes to you and you open it [TS]

00:46:21 ◼   ► up and you've got a mattress how do you [TS]

00:46:24 ◼   ► ship a mattress to somebody guess what [TS]

00:46:25 ◼   ► it's the the fact that they make it out [TS]

00:46:27 ◼   ► of like this [TS]

00:46:28 ◼   ► their own custom blend of like foams it [TS]

00:46:34 ◼   ► comes in a little box little box meaning [TS]

00:46:37 ◼   ► like it might be the biggest package [TS]

00:46:39 ◼   ► that you're going to get this year [TS]

00:46:40 ◼   ► delivered to your house but for a [TS]

00:46:43 ◼   ► mattress it's a surprisingly small box [TS]

00:46:45 ◼   ► and then they have nice instructions on [TS]

00:46:47 ◼   ► the outside they tell you to bring it up [TS]

00:46:48 ◼   ► to the room where you want it first [TS]

00:46:50 ◼   ► don't open it don't open it up [TS]

00:46:52 ◼   ► downstairs go to the bedroom follow [TS]

00:46:55 ◼   ► their instructions you open it up it [TS]

00:46:56 ◼   ► sucks all the air out of the room to [TS]

00:46:58 ◼   ► fill the mattress so be careful be [TS]

00:47:00 ◼   ► careful make sure you you know take a [TS]

00:47:03 ◼   ► deep breath before you open it up and [TS]

00:47:04 ◼   ► there you go you got a mattress and it's [TS]

00:47:06 ◼   ► comfortable and it's nice it's just a [TS]

00:47:08 ◼   ► nice mattress and the price is because [TS]

00:47:10 ◼   ► they sell directly they make them right [TS]

00:47:12 ◼   ► here in the US by the way they make them [TS]

00:47:13 ◼   ► here in the US they sell them to you [TS]

00:47:15 ◼   ► directly there's no middleman there's no [TS]

00:47:17 ◼   ► markup for a retail store or anything [TS]

00:47:18 ◼   ► like that their prices blow away the [TS]

00:47:22 ◼   ► prices for premium mattresses from the [TS]

00:47:24 ◼   ► big-name mattress companies there's just [TS]

00:47:26 ◼   ► no comparison where do you go get yours [TS]

00:47:30 ◼   ► today you try it for a hundred nights in [TS]

00:47:33 ◼   ► your own home with free delivery [TS]

00:47:35 ◼   ► so you don't take my word for it that's [TS]

00:47:37 ◼   ► comfortable go buy one have it delivered [TS]

00:47:40 ◼   ► try it out you've got over three months [TS]

00:47:42 ◼   ► 100 nights and if you're not happy with [TS]

00:47:44 ◼   ► it no questions asked they will just [TS]

00:47:46 ◼   ► arrange for someone to come and get it [TS]

00:47:48 ◼   ► out of your house no questions asked go [TS]

00:47:52 ◼   ► to Casper comm slash the talk show and [TS]

00:47:54 ◼   ► use that code the talk show and you will [TS]

00:47:57 ◼   ► save 50 bucks towards any mattress put [TS]

00:48:00 ◼   ► an asterisk right here [TS]

00:48:01 ◼   ► you can't save 50 bucks on their dog [TS]

00:48:03 ◼   ► mattresses I'm sorry because the dog [TS]

00:48:05 ◼   ► mattress is only like a couple hundred [TS]

00:48:06 ◼   ► bucks but if you have a dog and you want [TS]

00:48:09 ◼   ► to get your dog a bed get them a Casper [TS]

00:48:10 ◼   ► they have an amazing amazing dog [TS]

00:48:13 ◼   ► mattress and I keep mentioning it and [TS]

00:48:14 ◼   ► readers keep saying that they bought it [TS]

00:48:16 ◼   ► for their dog and their dog won't get up [TS]

00:48:18 ◼   ► off the mattress so there you go my [TS]

00:48:20 ◼   ► thanks to Caspar makers of fine [TS]

00:48:22 ◼   ► mattresses what else happened recently [TS]

00:48:26 ◼   ► that gets this week at Microsoft had [TS]

00:48:28 ◼   ► their education event and they unveiled [TS]

00:48:29 ◼   ► two things they unveiled on the hardware [TS]

00:48:32 ◼   ► size outside their own this is their [TS]

00:48:35 ◼   ► first true laptop something that's now I [TS]

00:48:36 ◼   ► get detachable tablet type thing that [TS]

00:48:39 ◼   ► they call the surface laptop [TS]

00:48:41 ◼   ► and they unveiled an new operating [TS]

00:48:45 ◼   ► system called Windows 10 ass which do [TS]

00:48:48 ◼   ► you want to talk about first I was going [TS]

00:48:50 ◼   ► to say Joe Belfiore is new blonde hair [TS]

00:48:52 ◼   ► cut Wow he famously windows phone Joe [TS]

00:48:56 ◼   ► Belfiore who went away for a year and [TS]

00:48:58 ◼   ► decided to focus on education then came [TS]

00:48:59 ◼   ► back and is now leading this initiative [TS]

00:49:01 ◼   ► I didn't see that part of the show yeah [TS]

00:49:03 ◼   ► he was I don't think they put him on [TS]

00:49:05 ◼   ► stage which is involved that's why I hit [TS]

00:49:07 ◼   ► my person on stage yeah he was out front [TS]

00:49:09 ◼   ► beforehand I think maybe the hardware [TS]

00:49:11 ◼   ► first because we use their know we had [TS]

00:49:13 ◼   ► Daniel Rubino when my colleagues was [TS]

00:49:15 ◼   ► there Wow I watched the video but I [TS]

00:49:17 ◼   ► really only watched the video for the [TS]

00:49:18 ◼   ► 10s part I didn't watch the hardware [TS]

00:49:22 ◼   ► part so what do you want talk about [TS]

00:49:24 ◼   ► first the hardware all right let's talk [TS]

00:49:26 ◼   ► about the hardware it's so interesting [TS]

00:49:28 ◼   ► and I'm gonna start off with this [TS]

00:49:30 ◼   ► because why not it's the talk show if [TS]

00:49:33 ◼   ► this if this laptop had an Apple logo on [TS]

00:49:35 ◼   ► it I think the coverage would have been [TS]

00:49:36 ◼   ► very different [TS]

00:49:37 ◼   ► well we saw how so because this was like [TS]

00:49:41 ◼   ► there was a lot of things about this [TS]

00:49:42 ◼   ► laptop that were very Apple as like the [TS]

00:49:44 ◼   ► design looks almost identical to a [TS]

00:49:45 ◼   ► MacBook Air the price was almost [TS]

00:49:47 ◼   ► identical to a MacBook Air you know a [TS]

00:49:49 ◼   ► lot of the of the video and the language [TS]

00:49:52 ◼   ► that you used for it was very similar to [TS]

00:49:53 ◼   ► Apple it's got one port on it USB a port [TS]

00:49:56 ◼   ► instead of a USB C port but just one [TS]

00:49:58 ◼   ► port on it and it does have the surface [TS]

00:50:00 ◼   ► dock you know so you can do other things [TS]

00:50:01 ◼   ► with it but I think a lot of people who [TS]

00:50:03 ◼   ► were highly critical of Apple for doing [TS]

00:50:06 ◼   ► things like a single port MacBook or any [TS]

00:50:09 ◼   ► of a dozen decisions they made recently [TS]

00:50:11 ◼   ► were strangely silent when it came to [TS]

00:50:13 ◼   ► Microsoft making very similar moves with [TS]

00:50:14 ◼   ► his laptop yeah one port its USB a which [TS]

00:50:17 ◼   ► seems outdated and then they have a [TS]

00:50:19 ◼   ► proprietary display port right yeah and [TS]

00:50:21 ◼   ► a surface dock that to me that the [TS]

00:50:23 ◼   ► proprietary display port seems like the [TS]

00:50:25 ◼   ► weird the part that like whoa if Apple [TS]

00:50:27 ◼   ► did that that would be that that would [TS]

00:50:29 ◼   ► seem generate a lot of criticism I don't [TS]

00:50:32 ◼   ► get your you are true I wasn't even [TS]

00:50:34 ◼   ► going to bring that aspect up but [TS]

00:50:36 ◼   ► there's it how can Apple release a [TS]

00:50:38 ◼   ► laptop with one port and get like at a [TS]

00:50:41 ◼   ► month of criticism or years of criticism [TS]

00:50:44 ◼   ► people still complain about the MacBook [TS]

00:50:45 ◼   ► you know people call it the MacBook one [TS]

00:50:47 ◼   ► and then [TS]

00:50:49 ◼   ► Microsoft releases one with one port it [TS]

00:50:52 ◼   ► happens to be outdated the only other [TS]

00:50:53 ◼   ► port is a proprietary one which is an [TS]

00:50:55 ◼   ► Apple move and it gets headlines like [TS]

00:50:59 ◼   ► here's the laptop the apples apples or [TS]

00:51:02 ◼   ► Microsoft's macbook killer that Apple [TS]

00:51:05 ◼   ► can't ignore and it gets it gets funnier [TS]

00:51:07 ◼   ► after that because it is running KB Lake [TS]

00:51:09 ◼   ► which is a generation beyond what Apple [TS]

00:51:10 ◼   ► ran and there's reasons for that the [TS]

00:51:12 ◼   ► quad core version of Kaiba Lake wasn't [TS]

00:51:14 ◼   ► ready when Apple needed at the graphics [TS]

00:51:16 ◼   ► that Apple one of the more powerful [TS]

00:51:16 ◼   ► graphics were not available when Apple [TS]

00:51:18 ◼   ► wanted to put them into the MacBook Pro [TS]

00:51:19 ◼   ► and this in fact doesn't have those [TS]

00:51:21 ◼   ► sorts of graphics options so a Microsoft [TS]

00:51:23 ◼   ► made a different choice they went with a [TS]

00:51:24 ◼   ► better CPU but arguably a much worse GPU [TS]

00:51:26 ◼   ► but at the same time there's 8 gigabytes [TS]

00:51:28 ◼   ► and 16 gigabytes of RAM but the 16 [TS]

00:51:30 ◼   ► gigabyte version doesn't ship for months [TS]

00:51:32 ◼   ► and can you imagine if Apple announced [TS]

00:51:33 ◼   ► the new MacBook Pros we went to in [TS]

00:51:35 ◼   ► October and said oh by the way 16 [TS]

00:51:37 ◼   ► gigabyte versions lock in a chip for a [TS]

00:51:39 ◼   ► few months and I also think I went [TS]

00:51:42 ◼   ► through the configuration on it because [TS]

00:51:43 ◼   ► there was also some initial Twitter [TS]

00:51:46 ◼   ► feedback that I saw where it was that [TS]

00:51:48 ◼   ► that it shows how overpriced the MacBook [TS]

00:51:51 ◼   ► Pros are and I found the exact opposite [TS]

00:51:54 ◼   ► where I configured one with core i7 16 [TS]

00:51:59 ◼   ► gigs of ram and a 512 megabyte SSD and [TS]

00:52:03 ◼   ► the price was 21 99 and a MacBook with [TS]

00:52:07 ◼   ► core i7 and 16 gigs of ram and a 512 [TS]

00:52:12 ◼   ► gigabyte SSD was $21.99 the exact same [TS]

00:52:14 ◼   ► price [TS]

00:52:15 ◼   ► $21.99 for Flex John and Apple offers a [TS]

00:52:20 ◼   ► one terabyte SSD Microsoft doesn't and [TS]

00:52:23 ◼   ► Apple will let you get a 16 gigabytes of [TS]

00:52:26 ◼   ► RAM configuration in the core i5 variant [TS]

00:52:31 ◼   ► of the MacBook Pro and Microsoft doesn't [TS]

00:52:33 ◼   ► if you want to get 16 gigs of ram you've [TS]

00:52:35 ◼   ► gotta also upgrade to the core i7 and on [TS]

00:52:38 ◼   ► personally me personally I've actually [TS]

00:52:41 ◼   ► totally changed my my personal take on [TS]

00:52:47 ◼   ► but laptops were for me I think the the [TS]

00:52:52 ◼   ► I'm a podcasting from it right now I [TS]

00:52:53 ◼   ► have a 2015 or is it 2014 cheese I don't [TS]

00:52:57 ◼   ► even remember [TS]

00:52:58 ◼   ► MacBook Pro 13 inch MacBook Pro let's [TS]

00:53:01 ◼   ► see what they say I don't remember it so [TS]

00:53:04 ◼   ► I might take four years Oh mid 2014 [TS]

00:53:10 ◼   ► so yeah it's a late 2014 MacBook Pro 13 [TS]

00:53:12 ◼   ► inch one of the best computers I've ever [TS]

00:53:15 ◼   ► owned I maxed out everything when I [TS]

00:53:18 ◼   ► bought it I got like three gigahertz [TS]

00:53:21 ◼   ► Intel Core i7 I got the 16 gigs of ram [TS]

00:53:24 ◼   ► which is the most I could get and I got [TS]

00:53:25 ◼   ► the one terabyte SSD and I'm happy with [TS]

00:53:28 ◼   ► all those decisions because I've got a [TS]

00:53:30 ◼   ► couple hundred gigabytes left but way [TS]

00:53:34 ◼   ► more than 512 I'm like 700 or something [TS]

00:53:36 ◼   ► like that so I need the one terabyte was [TS]

00:53:39 ◼   ► useful to me I would lie as the biggest [TS]

00:53:42 ◼   ► thing I need because I'm lazy and I [TS]

00:53:45 ◼   ► always keep lots of Safari tabs open and [TS]

00:53:47 ◼   ► slack take slack itself even if you run [TS]

00:53:49 ◼   ► it as an app takes like a gigabyte of [TS]

00:53:52 ◼   ► RAM yeah I don't think I need a core i7 [TS]

00:53:57 ◼   ► I think and I thought this I when I was [TS]

00:54:00 ◼   ► testing I had a couple of the review [TS]

00:54:01 ◼   ► units of the the new MacBook Pros from [TS]

00:54:04 ◼   ► from October there's nothing I do a [TS]

00:54:09 ◼   ► daily day-to-day basis where having a [TS]

00:54:12 ◼   ► core i7 instead of a core i5 really [TS]

00:54:13 ◼   ► makes a difference I don't use Xcode or [TS]

00:54:16 ◼   ► if I do I do it rarely enough that the [TS]

00:54:19 ◼   ► difference in build times I'm not doing [TS]

00:54:21 ◼   ► it all day all day long we're shaving [TS]

00:54:24 ◼   ► some time off the the building run cycle [TS]

00:54:26 ◼   ► would really make a difference other [TS]

00:54:30 ◼   ► things I do that might be like batch [TS]

00:54:31 ◼   ► processing it doesn't matter to me [TS]

00:54:33 ◼   ► because it's running in the background [TS]

00:54:34 ◼   ► you know it the difference between core [TS]

00:54:37 ◼   ► i5 and core i7 performance wise isn't [TS]

00:54:39 ◼   ► meaningful to me personally and the core [TS]

00:54:41 ◼   ► i5 is going to get better battery life [TS]

00:54:42 ◼   ► and that actually is that's more [TS]

00:54:44 ◼   ► important to me so I think the next time [TS]

00:54:45 ◼   ► I get a MacBook Pro I'd get a core i5 [TS]

00:54:48 ◼   ► that would get better battery life and [TS]

00:54:50 ◼   ► it's way more than fast enough and then [TS]

00:54:53 ◼   ► just max out the SSD in the RAM and [TS]

00:54:55 ◼   ► Microsoft won't let you do that and I [TS]

00:54:57 ◼   ► find that to be a very useful [TS]

00:54:58 ◼   ► configuration I have the exact same [TS]

00:55:01 ◼   ► MacBook Pro that you have from before [TS]

00:55:02 ◼   ► the exact same configuration and I came [TS]

00:55:04 ◼   ► to the exact same conclusion about this [TS]

00:55:05 ◼   ► one and in fact I can't mention any [TS]

00:55:07 ◼   ► names but someone who knows those [TS]

00:55:09 ◼   ► chipsets inside it out just told me [TS]

00:55:10 ◼   ► point blank don't give Intel the f [TS]

00:55:11 ◼   ► your money I I really I I believe that I [TS]

00:55:17 ◼   ► really do and it's not so much that [TS]

00:55:18 ◼   ► there's anything wrong with the core i7 [TS]

00:55:20 ◼   ► but that the core i5 is just good enough [TS]

00:55:23 ◼   ► and I really do on that curve and I [TS]

00:55:26 ◼   ► think that's why Apple has wisely made [TS]

00:55:28 ◼   ► at the default even on the pros it's not [TS]

00:55:32 ◼   ► just that it's more expensive but that [TS]

00:55:33 ◼   ► it's really it's a good even for someone [TS]

00:55:35 ◼   ► with who needs a hyper you know [TS]

00:55:37 ◼   ► relatively on the scale of all of [TS]

00:55:39 ◼   ► Apple's MacBooks higher performance [TS]

00:55:41 ◼   ► model the MacBook Pro with the Core i5 [TS]

00:55:43 ◼   ► is a good one so anyways that money you [TS]

00:55:45 ◼   ► get an extra port meaning I'm just [TS]

00:55:46 ◼   ► getting one port my MacBook Pros so [TS]

00:55:48 ◼   ► anyway I do find that interesting on the [TS]

00:55:50 ◼   ► surface I'll give them kudos I don't [TS]

00:55:53 ◼   ► think it looks like a MacBook Air I [TS]

00:55:54 ◼   ► think it's obviously I think Apple is [TS]

00:55:56 ◼   ► largely defined the modern laptop in a [TS]

00:56:00 ◼   ► way that there are some basic [TS]

00:56:02 ◼   ► fundamental similarities to the MacBook [TS]

00:56:06 ◼   ► energy design [TS]

00:56:07 ◼   ► yeah the wedge design is certainly one [TS]

00:56:09 ◼   ► but I don't think that's the sort of [TS]

00:56:11 ◼   ► thing that even me as somebody who's [TS]

00:56:13 ◼   ► relatively sensitive to people ripping [TS]

00:56:14 ◼   ► off Mac books I don't think that's [TS]

00:56:16 ◼   ► something that they can that they could [TS]

00:56:17 ◼   ► lay ownership to you know it's even sort [TS]

00:56:22 ◼   ► of like Tim Cook mentioned this I think [TS]

00:56:24 ◼   ► when at the event last last year when [TS]

00:56:27 ◼   ► they the when I introduced the MacBook [TS]

00:56:29 ◼   ► Pros when they went through all of [TS]

00:56:30 ◼   ► Apple's portables from the beginning of [TS]

00:56:33 ◼   ► the I'd like from at least from the [TS]

00:56:34 ◼   ► first power book I think they skipped [TS]

00:56:36 ◼   ► the Mac portable but all the ones that [TS]

00:56:39 ◼   ► you had identifies a laptop like the Mac [TS]

00:56:41 ◼   ► portable was portable but wasn't the [TS]

00:56:42 ◼   ► laptop like it seems crazy now but Apple [TS]

00:56:46 ◼   ► was the first one who put the keyboard [TS]

00:56:48 ◼   ► back so that you have palm rests in [TS]

00:56:51 ◼   ► front all previous laptops had the keys [TS]

00:56:54 ◼   ► right up to the front of the device and [TS]

00:56:57 ◼   ► you know so the fact I just think that's [TS]

00:57:00 ◼   ► just something that when you see it [TS]

00:57:01 ◼   ► you're like oh that's an obvious way to [TS]

00:57:03 ◼   ► do it I think the no wise design yeah [TS]

00:57:04 ◼   ► right I think the wedge shape of the [TS]

00:57:06 ◼   ► MacBook Air is an obvious way to shave [TS]

00:57:08 ◼   ► weight off off a device where only some [TS]

00:57:11 ◼   ► of the components need need the full [TS]

00:57:13 ◼   ► thickness at the back and if you can [TS]

00:57:16 ◼   ► make it thinner in a front you might as [TS]

00:57:17 ◼   ► well so I don't hold that against him [TS]

00:57:19 ◼   ► like at a glance you don't look at it [TS]

00:57:21 ◼   ► and you wouldn't look at that and think [TS]

00:57:22 ◼   ► that two MacBook Air [TS]

00:57:23 ◼   ► I did but you know but I'm willing to [TS]

00:57:25 ◼   ► concede the point that you watch the [TS]

00:57:27 ◼   ► video because the video again is very [TS]

00:57:29 ◼   ► similar to Apple design language you see [TS]

00:57:30 ◼   ► that computer opening up and if you [TS]

00:57:32 ◼   ► squint a little bit you can't tell the [TS]

00:57:33 ◼   ► difference all right and they do you [TS]

00:57:34 ◼   ► know they obviously took a lot of pride [TS]

00:57:36 ◼   ► in the video and and it is Apple style [TS]

00:57:38 ◼   ► video but it's there's a lot of pride in [TS]

00:57:40 ◼   ► the internals too [TS]

00:57:41 ◼   ► yes they showed the what would you call [TS]

00:57:43 ◼   ► it the the it's obviously done in CGI [TS]

00:57:48 ◼   ► but yeah the the computer the renders [TS]

00:57:51 ◼   ► yeah coming apart that the different [TS]

00:57:53 ◼   ► parts of it are you know the little [TS]

00:57:56 ◼   ► screws and everything going in other [TS]

00:57:58 ◼   ► words do they've gotten much I mean from [TS]

00:57:59 ◼   ► for a software company they've gotten [TS]

00:58:00 ◼   ► remarkable hardware chops over the last [TS]

00:58:02 ◼   ► few years well it's funny that they've [TS]

00:58:05 ◼   ► always had a good reputation for making [TS]

00:58:06 ◼   ► like mice and keyboards right the device [TS]

00:58:09 ◼   ► that Microsoft mice and keyboards have [TS]

00:58:10 ◼   ► ever since they got into the business [TS]

00:58:11 ◼   ► have had reputation as world-class you [TS]

00:58:14 ◼   ► know but the Xbox Live not so much no [TS]

00:58:19 ◼   ► red rings and squeaky boxes right um but [TS]

00:58:23 ◼   ► yeah they you know and I I even like the [TS]

00:58:26 ◼   ► way that the I think is it the windows [TS]

00:58:28 ◼   ► logo or the Microsoft logo the four [TS]

00:58:30 ◼   ► rectangles thing the windows logo yeah [TS]

00:58:32 ◼   ► is that what it is it's you know it [TS]

00:58:34 ◼   ► looks good it's you know they've finally [TS]

00:58:35 ◼   ► gotten it to a point where it's reduced [TS]

00:58:37 ◼   ► to a real icon it was really the de [TS]

00:58:41 ◼   ► facto Microsoft logo by now so I think [TS]

00:58:43 ◼   ► they use it everywhere it they're using [TS]

00:58:45 ◼   ► a different material they've got like a [TS]

00:58:47 ◼   ► soft touch forget the name of it there's [TS]

00:58:52 ◼   ► a brand name that I wasn't familiar with [TS]

00:58:53 ◼   ► but yes settle something yeah it's some [TS]

00:58:56 ◼   ► kind of like fake leather type yeah [TS]

00:58:58 ◼   ► artificial synthetic leather what [TS]

00:59:00 ◼   ► astroturf is - grass or something um [TS]

00:59:02 ◼   ► yeah but that it's used by you know [TS]

00:59:04 ◼   ► premium luxury automakers for components [TS]

00:59:07 ◼   ► and caught you know like the dashboards [TS]

00:59:09 ◼   ► of cards or stuff like that [TS]

00:59:10 ◼   ► so supposedly a great material would be [TS]

00:59:13 ◼   ► will be interesting to see how it wears [TS]

00:59:15 ◼   ► and you might think hey well duh of [TS]

00:59:18 ◼   ► course it's going to wear well why would [TS]

00:59:19 ◼   ► they use it if it doesn't wear well but [TS]

00:59:21 ◼   ► you know then you think about the [TS]

00:59:22 ◼   ► remember the iPod touch that yep they [TS]