87: Unchartable Tidbits
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From Relay FM, this is Upgrade, episode number 87.
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Today's show is kindly brought to you by Squarespace, MailRoute, and Pingdom.
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My name is Myke Hurley, and I am joined by...
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Senor Jason Snell.
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Hi Myke, how's it going?
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Good, how are you?
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Good, you know, it's Monday morning.
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It's for me, so I'm waking up. I'm getting into it, but I'm glad to be here to start
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my week with you.
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David: Thank you. It's always a pleasure, sir. And in our tradition of continuing to
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advance the medium, we are going to be today having some guest follow-ups. So we have Mr.
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Scott McNulty with us today.
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It's afternoon here in Philadelphia, but...
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Adam, yes. Happy lunchtime to you.
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We, yeah, so Scott was on a couple weeks ago, and we were talking about the Kindle Oasis,
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we couldn't actually give any hands-on perspective about it because it had, like we did when
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we talked to Serenity for an entire episode about the Apple Pencil and she didn't have
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one. We did an entire episode about the Kindle Oasis and we didn't have it, but we have them
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now, and so I thought that this would be a good way to start is with some follow-up with
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guests about the Kindle Oasis. So Scott, oh this is a question Myke, "Who doesn't care
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about Kindles, this is a question he's prepared for us. So Myke, why don't you ask your question
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as an expert. Scott, do you like it? These are the hard-hitting
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questions that I was not prepared for. This is the kind of journalism you can only
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get on upgrade. The Kindle Oasis, I do like it. It is once
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again, generally I have this thing where the most recent Kindle is my favorite Kindle,
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I think that that streak continues with the Kindle Oasis.
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- Yeah, which is a good sign, right?
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That they're making things better in some ways.
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I like it too.
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I was really, I was skeptical of this one.
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I don't know what about it, the idea that it was this,
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well, they're doing the Apple thing,
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if we're gonna make it thinner and lighter,
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and you have to get it with a case.
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And then I opened the box,
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and I was kind of shocked at how small it was.
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Like I have in my mind, like what,
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how big a Kindle should be and it was a lot smaller than that and the case, I pulled the
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case out of its little slip that it was in and I thought this is it, it's so tiny, was
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there a mistake? Where's the actual case? Because it's all very small and thin and light
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in a way that I didn't expect. I don't know what your reactions were when you picked it
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- I was surprised by the size of it. I have trouble visualizing sizes so I can read the
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specs and I can see a picture with someone's hand next to it that still is meaningless to me until
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I'm actually can see it with my my own eyes and and hold it with my own hands and it is surprisingly
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small and the screen is the same size so that's great um and it's also very light especially when
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you don't have the cover on it uh although I think with the cover it's still not very heavy
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it's certainly yeah maybe maybe a tiny bit heavier than my voyage although I can't really
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discern the difference um but yeah and I was also pleasantly surprised to see in the little package
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that the cover and the Kindle came in two different boxes
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in the same little box.
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So that led me to believe that perhaps in the future
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you can buy just the Oasis or just the cover.
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But that's just me assuming that maybe
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that's what that means.
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But it could just mean it's easier to ship things that way.
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I don't know.
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- There's a certain weirdness in offering a product
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that comes with another product.
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Like it's very strange to me.
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You buy the Kindle and it comes with the battery case.
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It feels like it's an option that they give you.
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It's kind of strange.
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- Yeah, although, so here's one thing
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that I noticed in using it.
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Because they've made the main Kindle
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so much lighter and thinner,
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I think they've done away with some of the battery.
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It's hard for me to tell,
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but the battery seems to drain on it
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when it's not attached to the case pretty fast,
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like faster than I'm used to with a Kindle and I'm wondering if this was why they bundled
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it all together is that they it's like yeah well on its own we really took a hit to battery
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life but if you've always got the case around then the case will supplement that battery
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life and give you back an extended range of it because I don't know if you notice this
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Scott but it felt to me like every time I checked when I was just reading on the Kindle
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without the battery cover attached like I could see it over like the course of a day
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I could see the battery percentage go down, which never really happened on my older Kindles.
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Oh, I think that's totally true and totally why they have the battery cover at all in their quest
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to make it super thin and super light, which they have achieved. Good job, Amazon. They had to,
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one assumes, squish everything into the little, I'll call it the Kindle hump on the side. I don't
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think Amazon calls it that. And so it has a smaller battery in the main device, and so it
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it doesn't last as long also something I didn't realize but which Amazon makes doesn't hide it
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this Kindle doesn't have auto brightness with the voyage so the voyage will automatically dim or
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brighten the screen based on the the light in the room which is a feature I really liked but I and
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I didn't realize how much I liked it until I was using a Kindle that does not have it which the
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Oasis does not have and I think that also impacts the battery usage especially for me because I keep
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it bright probably more than I should and then you know it goes through the battery.
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Yeah it uh it obviously I took out a sensor probably in order to make it thinner and lighter
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they took out that light sensor. I never liked that feature because I would always find it
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adjusting the light at a weird time when I'd be like no why are you getting dim? Brighter now,
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brighter! Well it did have the problem where you would cover the sensor with your finger and then
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it would be like you're in a completely dark room let me crank the brightness really down.
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Yeah, yeah, exactly. But, you know, it's, I just, when they announced it, I rolled my
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eyes at the whole idea of, "Oh, thinner and lighter, do we really need that?" But having
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picked it up, like, the first time I picked it up, I was like, "Oh, I see it now." Like,
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I get it. Because although you would never call the Kindle Voyage or the Paperwhite,
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like, a big, heavy device, they're small, this is, like, it feels appreciably different.
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Like, in a way, the Voyage didn't feel appreciably different from the Paperwhite, it was a little
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bit different, but it was super subtle. The Oasis is remarkably thinner and lighter, and
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even with the case on it feels compact, but with the case off, it's a pleasure. It's a
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really nice thing. When I picked it up for the first time I thought, "Oh, I'm not sending
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this back. That's never going to happen. This is a keeper because it's so pleasant to hold
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and it's got the physical page turn buttons which they they finally went back to and on
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the pictures it was unclear unlike I don't trust Amazon anymore I think about some of
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this stuff because they took those buttons off it's like when they put them back and
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they were just silkscreen things that you squeezed and it vibrated I was like alright
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well we'll see if those are physical page turn buttons they're actual things you depress
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them they depress the page turns it's you know I know it's not rocket science but they
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did a good job with that they feel good to turn the pages.
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- And one of the things that I didn't think would impact
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my usage all that much,
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but it has totally made this device even better for me
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is the automatic flipping of the screen.
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So when you move it from one hand to another
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and it just automatically switches a small thing,
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but it's just like fantastic
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'cause the buttons are always in the right place.
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- Yeah, every iOS device has had an accelerometer
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to determine the orientation of the device
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and no Kindle has had it.
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And for this, because they only have the page turn buttons on the one side, it's especially
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important that they have the ability for you to flip the orientation.
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I found that I actually prefer it in my left hand, which means that it would be upside
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down, I think, in terms of how you would orient it.
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And it doesn't matter, right?
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And if I want to switch to the other hand to turn the pages, I just flip it over and
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It auto-rotates, which is, again, a feature that seems very basic but was not present
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So it's good to see that they finally did it.
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And the Kindle OS had rotation built into it.
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It just did not auto-rotate.
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So you could go into a menu and move it around, but that was just a pain.
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So having that auto-rotate is super great.
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And I like the cover itself.
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I didn't think I would like the cover all that much.
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I mean, I thought I'd like the battery part of it, and I do.
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I actually like the I don't know if it's real leather or not but I like it feels
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like a book when you're holding it it does it's a it the leather though it's
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super thin one of the problem I had with a lot of leather cases in the old they
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like I had a leather Kindle case at one point and it was it was thick and weighty
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and this is super thin it actually reminded me of kind of like the like the
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Apple watch leather watch bands where they're they're leather but they're
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of they're almost like papery thin and and sort of lightly textured and it's a
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little bit like that and then the battery on the back you know it's not
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one of these big wraparound cases it's like a battery that is the shape of the
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of the indentation that's not the Kindle hump the non hump portion I believe they
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call it and it just magnetically attaches so at that point it's it's a
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you know a bigger device with a with a little battery and and it extends the
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battery life. And I think one of the ways they want you to use this is, the main Kindle
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has enough battery life that you can just carry it around without the case on it, but
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they'll figure you'll have the case around, and at some point you'll store it in the case,
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at which point the battery will just top up the battery on the device. And another funny
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thing is you can't charge the case. The case charges through the Kindle, and the micro
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USB port is on the Kindle, which I also thought was interesting, because I thought, well maybe
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you just leave the battery case charging somewhere while you're out, but that's not how it works
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Although I do, that's how I am, they've made it very easy to take it off with, you know,
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magnets and all that, so I've been just ripping it off and leaving it by my bedside table,
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the cover, and walking around and reading on my Kindle, and then when it's time to go
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to sleep, I put it back in, and I don't even bother to plug in the USB thing because it's
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just charging off of the battery case, so that's kind of cool.
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Yeah, I like that, and that means that your device itself is basically always charged
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once it's spent some time in the case, and you just have to remember every so often to
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charge it with the case. So they move the battery. It's an interesting idea, and it's
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a little bit kludgy, but I get why they did it, the idea of moving some of the battery
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weight and size out of the device itself, but into this kind of convenient product that's
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by its side, but it also explains why they are sold together because I think people would
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probably notice how much less battery there is in the main device if they didn't.
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>> Yeah, I think Amazon says it's something like two weeks without the cover, which is
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ridiculously short amount of time for a Kindle.
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>> Yeah, and I imagine that if you have -- that's if you keep the brightness down and have Wi-Fi
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>> And you read, like, for 30 minutes a day or something like that, so.
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There are a lot of asterisks next to that two week window.
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- Lies about batteries, lots of lies about batteries.
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- And another very small thing that I like,
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obviously the face of the Kindle,
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there's not a lot of room there,
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but they took off all of the Kindle branding
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on the face of it.
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So it's just a frame, a black frame
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without a little Kindle logo at the bottom.
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Actually, I don't think it has a Kindle logo anywhere on it,
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even on the battery case, but it has a couple of Amazon logos
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but so it's not distracting you.
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Yeah, no, I really like that, that there's nothing on the face, the bezels are a lot
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smaller, the screen is the same as on the Voyage, but I like it, I think the backlighting,
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or the sidelighting, whatever, is good. I read a book on it this weekend, and yeah,
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it's really pleasant, but it's funny, it's one of those things where you kind of almost
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have to hold it in your hands to get why it costs so much more than the Paperwhite, and
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why that might be worth it for some people. It's a nice case and it's a nice device and
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I definitely agree. When we talked about the Voyage Scot last year, I remember being very
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much kind of on the fence about it. I decided to keep it, but I thought about even sending
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it back because I didn't think it was that much better than the Paperwhite and I kept
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recommending to people, "Just get the Paperwhite. The Paperwhite's really good." I don't think
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that the Oasis is just slightly better than the Voyage of the Paperwhite. I'd say it's
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better. It's really nice. I still wouldn't recommend that most people buy it because
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it is a lot more expensive. You could buy like three Paperwhites for the cost of the
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Oasis. So I would recommend doing that and reading three books at once instead for most
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people. But it's a really nice piece of hardware. It's just, you know, it's probably not what,
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know if you're a Kindle addict like me and that could be a new podcast Myke
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take notes the Kindle addict like me and like Scott but you know but right Scott
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I mean the paper what's a really nice product and at 99 or like a hundred
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bucks it's a pretty great deal too yeah and I think the so the paper white kind
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of redefined what a Kindle was when it came out and compared to all the other
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kindles you thought oh this is what they were trying to get at and I think while
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the voyage redefined, you know, it refined what the Paperwhite was doing.
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It didn't really, it wasn't as great a leap forward.
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Whereas I think the Oasis is once again, another thing they're getting even
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closer to what they're trying to do.
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And if you, like you said, Jason, if you have the money and you are really into
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Kindles, the Oasis is the Kindle you should get.
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If you just want to read a couple of books a year, probably spending $300 on a
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single use device is not the best use of your money. But who am I to tell you what to do
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with your money?
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Yeah, well, our friend Dan Morin bought a Paperwhite and I think he was in that moment
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like, "Oh, geez, they're going to announce new Kindles, but this is probably, now that
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they cut the price on this, this is probably worth it for me." And I think he made a good
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decision, I think, for him. And for most people, I think, if you want to get into the Kindles,
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I would not recommend that $60 low-end Kindle. But the Paperwhite that lights itself and
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has a good clear screen on it is and you know and no page turn buttons or anything but you
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use the tab on the touch screen to turn the page and it's a very good product.
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Yeah and now Amazon is selling that entry level $60 Kindle which no one should buy,
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the Paperwhite which most people should buy, the Voyage which at this point I don't think
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anyone should buy and I'm not quite sure why Amazon is still selling it and the Oasis which
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you should buy if you were in the market for a Voyage because the Voyage is a lot more
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expensive than the Paperwhite so just spend a little bit more and get an even better Kindle.
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Yeah, the Voyage almost feels like Paperwhite 2 or Paperwhite 3, whatever it is, because
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I think there have been two generations of Paperwhite, and I wonder if over time that's
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what will happen is either it will go away or it will be the, you know, it will replace
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the Paperwhite and they'll keep cutting the price on it, but I'm not clear kind of why
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the Voyage needs to exist with the Paperwhite, because they're so similar now, and there's
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this other product that's so clearly above them. Oh, a couple other things I wanted to
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mention one is uh it doesn't let you rotate horizontally which uh except with
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uh through the menus but i actually think that this this thing is so thin
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and light that there's probably there probably people who would who would hold
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it like horizontally and read that way um and you could do it i haven't tried
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it i it's a little bit strange but uh but
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you you could you could do that if you wanted to if people are into fonts it
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has a new font uh amazon ember uh which i guess is uh
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sans-serif. I can never remember what serif or sans-serif is, but it's one of those.
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CB; It's either sans or yeah, no, it's a sans-serif font. But they had Booker Lee,
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which is the serif font, and now they've got Ember, which is a sans-serif font that they did,
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along with their other... I don't love their typography. We said that a couple weeks ago,
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but it's fine. It's fine. I still wish you could turn off justification,
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force justification. But they've improved their typography some, and it's still
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worth. I love reading books on my Kindle so I'm happy to have it.
00:16:43
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I have some thoughts about this actually because listening to you guys here.
00:16:48
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Welcome back Myke. Hi how you doing? Nice to see you.
00:16:51
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Do you like your Kindle Oasis Myke? I absolutely love it. It's almost like a
00:16:55
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mirage. I'm very confused about this product especially hearing you talk about it because
00:17:03
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What it seems like Amazon have done is make the Kindle better by just kind of cutting
00:17:08
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it in half and giving you both pieces, but you seem really happy, both of you, about
00:17:13
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the fact that that's happened.
00:17:14
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It just seems very strange.
00:17:15
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It's like, we're going to take the battery life and the thickness out of the Kindle,
00:17:19
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put it into a case, give you the case, and then you think that we've solved the thickness
00:17:26
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It just seems very strange to me.
00:17:28
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I'm not saying that you guys are wrong, but it seems like a very peculiar approach that
00:17:32
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I'm not sure many other companies could get away with.
00:17:34
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Like if Apple came out and said,
00:17:37
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the iPhone is now as thin as a piece of paper,
00:17:40
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and it's great, it will last a couple of hours,
00:17:42
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and you just need to put this battery case on it
00:17:44
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►
that we're gonna give you,
00:17:45
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and then you can get the regular day's charge out of it.
00:17:47
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- Well, I think there's two very different use cases
00:17:50
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with a phone and a book reader, right?
00:17:52
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And I think that the weight of,
00:17:55
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my phone does not need to be any lighter or thinner,
00:17:58
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I'm sure it will be,
00:17:59
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►
but I think that I'm holding in one hand
00:18:02
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for hours at a time while I'm trying to read
00:18:05
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needs to be as light as it can be.
00:18:07
◼
►
And I think that's what Amazon is going towards.
00:18:10
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►
And I put it down at night, right, so it doesn't matter.
00:18:13
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I'm not gonna use it for those several hours.
00:18:15
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►
Whereas my phone, I might use,
00:18:17
◼
►
like it might wake me up or something, I don't know.
00:18:19
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►
My phone often does.
00:18:20
◼
►
My Kindle never wakes me up.
00:18:22
◼
►
So two points to the Kindle.
00:18:24
◼
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- I mean, this is what I mean about like the fact
00:18:26
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that maybe Amazon's the only company
00:18:28
◼
►
who could get away with this, right,
00:18:30
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because of the product that they make.
00:18:32
◼
►
- Right, I think the e-reader market can get away with it
00:18:37
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'cause it's a very different device
00:18:38
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that's doing a different thing.
00:18:39
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Like if it was, if Amazon's Fire tablets,
00:18:41
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they did the same thing,
00:18:42
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I don't think they would be as successful with that.
00:18:45
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Although I don't know if they're being all that successful
00:18:47
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with their Fire tablets or not, but yeah,
00:18:50
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I think it's just a very different class of device.
00:18:53
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- I don't think the Kindle use cases is the same,
00:18:56
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►
like Scott said, as the phone,
00:18:58
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because I think the Kindle Oasis without the battery cover will be good for you to read
00:19:03
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►
all day. Like, I think it would be good to read all day. I think the difference is, maybe
00:19:07
◼
►
the old one you could read all weekend and into the next week without ever plugging it
00:19:13
◼
►
in and it wouldn't be a problem with Wi-Fi turned on. And this one, you know, after a
00:19:17
◼
►
day, day and a half, maybe you would need to plug it in. So, the equivalent for a phone
00:19:23
◼
►
would be, imagine you've got a phone that runs for five days without being plugged in.
00:19:28
◼
►
That doesn't exist, but imagine it. Just dream about it. And then imagine that Apple says,
00:19:34
◼
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"Hey, what we're going to do is we're going to pare it back to one day, but also sell
00:19:40
◼
►
this really nifty battery case that makes it a little heavier that will give you the
00:19:42
◼
►
full five or six or eight day experience." That's sort of what Amazon's doing here. It's
00:19:47
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►
like at some point they've they kind of had battery to give I guess I would say
00:19:51
◼
►
and so they get they gave it and said okay here here we made it thinner and
00:19:57
◼
►
lighter it'll get you through you know a couple of days you didn't need a week or
00:20:02
◼
►
two of battery life all the time on just the device but we also had this case
00:20:07
◼
►
that will recharge you so it's it's a little bit different because the the use
00:20:11
◼
►
case is different because the kindles have had way longer battery life than
00:20:15
◼
►
than an iPhone has ever had.
00:20:17
◼
►
- So if you plug the Kindle into the case,
00:20:19
◼
►
it charges the Kindle as well as give extra battery life.
00:20:23
◼
►
- Correct. - Yeah.
00:20:24
◼
►
- Yeah, it charges it back up.
00:20:25
◼
►
Like if you leave it even in for like an hour in the case,
00:20:28
◼
►
and then you pick it up again,
00:20:29
◼
►
it's back to being basically full.
00:20:31
◼
►
- It's very interesting.
00:20:33
◼
►
- Yeah, and I think the other thing that I would say is,
00:20:35
◼
►
this isn't just like, even with the case on it,
00:20:37
◼
►
it's just not just like one of the older Kindles,
00:20:40
◼
►
because they have reduced the bezel
00:20:41
◼
►
around most of the edges,
00:20:43
◼
►
and then added to it on the one side
00:20:44
◼
►
give you that kind of grippable area. And so it does feel like it's pushing, like Scott
00:20:49
◼
►
was alluding to, pushing toward Amazon's vision for what the Kindle ultimately is, which is
00:20:55
◼
►
that it should disappear. Like that's really what they've said, Jeff Bezos has said that,
00:20:58
◼
►
that the goal is to disappear, you're just in the reading experience, it's all about
00:21:02
◼
►
the words on the page. And the OASIS, because it's that much thinner and lighter, it is
00:21:07
◼
►
sort of like getting to that point where it's starting to vanish. And it's a nice piece
00:21:13
◼
►
of hardware I think they did a good job like with the case on it feels like this little
00:21:17
◼
►
tiny compact almost like a notebook or something like a little digest that you would that you
00:21:22
◼
►
would carry around and like a like a field notes kind of thing almost and I like the
00:21:27
◼
►
feel of it too even with the case on it it feels compact in a way that the other ones
00:21:31
◼
►
didn't. The only things that I miss about my Kindle Voyage are the auto brightness thing
00:21:36
◼
►
which I already talked about and the cover that I had for that which was the Amazon origami
00:21:41
◼
►
thing which would make it into a little stand so I would have to, when I was like eating
00:21:45
◼
►
my lunch I wouldn't have to hold up my Kindle like a savage but now I'm back to holding
00:21:49
◼
►
up my Kindle.
00:21:50
◼
►
Now I just rest it against like a copper so it's so light I rest it against a feather
00:21:54
◼
►
and it's fine.
00:21:56
◼
►
>> The other thing that's weird about this and like what you've mentioned Scott and kind
00:21:59
◼
►
of talking about the previous Kindles as well, Amazon seemed to not really mind too much
00:22:04
◼
►
about giving features and then taking them away when a product is replaced.
00:22:09
◼
►
It's also a very strange way of doing this stuff.
00:22:12
◼
►
Like, oh, we have a new even better Kindle.
00:22:15
◼
►
It has some additional features
00:22:16
◼
►
and so we've also taken some away as well.
00:22:18
◼
►
There aren't a lot of companies that do that.
00:22:20
◼
►
- You could argue that Apple used to be more like that
00:22:23
◼
►
and now that Apple has become more successful,
00:22:25
◼
►
it's harder for Apple to take things away from their large,
00:22:29
◼
►
not that they won't do it, but that it makes it harder.
00:22:31
◼
►
And Amazon with this product seems very much in that space
00:22:35
◼
►
of being like, you know, an artist.
00:22:38
◼
►
is like, "No, you don't get that anymore. We have moved on. We've made a decision, and
00:22:41
◼
►
here's the new thing." And then the buttons are gone. Just deal with it, the buttons are
00:22:45
◼
►
- The buttons are back.
00:22:46
◼
►
- Yeah, and now they're back because I think they heard from people that the... And it
00:22:51
◼
►
was a weird case where they took the buttons off entirely, and it was just touchscreen,
00:22:54
◼
►
and then they're like, "Well, we'll bring back these funny buttons that aren't buttons."
00:22:58
◼
►
And then they're like, "Okay, fine, buttons. Here you go. You get your buttons back."
00:23:01
◼
►
- I'm happy now.
00:23:02
◼
►
- Yeah, I am. Although, I wanted to throw out one other thing, which is that the Kittle
00:23:07
◼
►
Oasis is $290, which is pricey. It is given that the Paperwhite's $100. But the thing
00:23:15
◼
►
that really actually bugs me about it is they're still doing their thing where it's $290 with
00:23:22
◼
►
special offers, and if you want to turn the ads off, it's another $20. And since everything
00:23:27
◼
►
comes with the case, that means that by default, unless you pay the extra $20 when you open
00:23:31
◼
►
the case, it wakes up to show you an ad, but you still have to swipe in order to get to
00:23:36
◼
►
your book. And for $100, I feel like that's an okay thing to do. At $290, I think there
00:23:46
◼
►
should be no ads. I think having everybody have to pay $310 in order to remove the Amazon
00:23:53
◼
►
ads from the screen and have the experience that when you open the cover, the book just
00:23:58
◼
►
appears. I think at some point, Amazon should kind of cut it off and say, "This, you can
00:24:04
◼
►
cheap out by $20 in order to not see ads is kind of unbecoming of a product in this price
00:24:11
◼
►
range but that's what they did.
00:24:13
◼
►
That jump should be a lot bigger.
00:24:15
◼
►
Oh yeah, you think so?
00:24:16
◼
►
If they're going to do it, right?
00:24:18
◼
►
The gap between those prices should be way, way bigger.
00:24:21
◼
►
Yeah, it's not like the special offers aren't bad but I think from a usability standpoint
00:24:26
◼
►
like if you're going to have a device with a cover that is this magnetic cover that automatically
00:24:30
◼
►
wakes and sleeps the screen just like an iPad Smart Cover would be, the special offers really
00:24:35
◼
►
get in the way. They kind of wreck that experience by having the special offers in the way. And
00:24:43
◼
►
now every single one of these devices right now is shipping with that cover, which means
00:24:47
◼
►
they're all getting the special offers in the way unless they pay $20. And yeah, you're
00:24:52
◼
►
right Myke, maybe you put special offers in and you offer this for $250 and it's a $50
00:24:56
◼
►
dollar or sixty dollar savings then that's a little bit different experience but
00:25:00
◼
►
for the twenty dollars with a with a two hundred ninety dollar product it seems
00:25:03
◼
►
like a miscalculation to me. On the other end of this as well it's very surprising
00:25:08
◼
►
to me that there isn't yet a free Kindle with a Prime subscription. Well I I think
00:25:15
◼
►
free is hard right because because if you give something away people get it
00:25:20
◼
►
and not actually want to use it and they do want to I mean the the base Kindle at
00:25:24
◼
►
$60 is getting perilously close. Yeah exactly. And I do wonder if you know they do a special
00:25:31
◼
►
for Prime members at some point where it's $20 or something like that. I think we're gonna get there
00:25:35
◼
►
where it's nearly free, not quite free, but nearly free for them. Right and they do have a the Kindle
00:25:41
◼
►
Fire 7-inch is $40. So you know for $20 less you get a tablet that has a Kindle app on it.
00:25:48
◼
►
It's not obviously if you're gonna get a Kindle E-ink Kindle they are better for reading but.
00:25:53
◼
►
Yeah, see, those prices are why I think it's surprising they haven't done free. Because
00:25:59
◼
►
for those devices, they're basically free, right? It's just strange for them, they don't
00:26:05
◼
►
just say, "Hey, if you want one, let us know and we'll send you one."
00:26:09
◼
►
They always seem to send me one, but it's not free.
00:26:12
◼
►
Yeah. Yeah, it's, I mean, I think free, making any product free, you're going to get a lot
00:26:18
◼
►
of people who get it because it's free and then don't use it. And if you're taking a
00:26:22
◼
►
a loss on it, then there's no point in doing that. I think they do want to make money or
00:26:26
◼
►
at least break even and then have the upside of selling you things. So like when they did
00:26:30
◼
►
the Fire TV stick for $29 or something like that, I think that was one of those cases
00:26:35
◼
►
where that's sort of pushing it where some people bought Chromecast and Fire TV sticks
00:26:40
◼
►
with unclear about whether they would ever use them just because it seemed like an irresistible
00:26:46
◼
►
price. And you know, if you're Amazon below a certain point, it doesn't make sense for
00:26:51
◼
►
you to give them away because you're not going to get that money back because people are
00:26:55
◼
►
just going to get them and then not use them as well as you need them to. So, you know,
00:27:00
◼
►
free I don't know, although you're right, prime membership, if you're a prime member
00:27:04
◼
►
saying you basically are eligible to get a free Fire tablet or Kindle once every two
00:27:08
◼
►
years at this base level and we'll be happy to send it to you as a thank you, maybe that
00:27:14
◼
►
will happen sometime. I'm a little surprised they haven't experimented with that as part
00:27:18
◼
►
of the membership deal.
00:27:19
◼
►
- Yeah, I mean, when I say free, I mean,
00:27:21
◼
►
free for Prime members, not like--
00:27:23
◼
►
- Yeah, free with your paid subscription.
00:27:25
◼
►
- Yeah, yeah.
00:27:26
◼
►
- Or they could do what they do with the dash buttons, right?
00:27:29
◼
►
You pay them $5, but that turns into a credit
00:27:32
◼
►
for your first dash order.
00:27:35
◼
►
So it's kind of like a deposit.
00:27:38
◼
►
And it makes you try it out, right?
00:27:39
◼
►
It makes you wanna use it.
00:27:41
◼
►
And then you find out whether you like it or not.
00:27:43
◼
►
That's all I've got about the Oasis,
00:27:44
◼
►
except to say, yeah, I like it.
00:27:46
◼
►
And I would not recommend it for most people
00:27:47
◼
►
because it is the high end and it's got a high price, but it's a nice product. They're
00:27:52
◼
►
not wrong in saying it's a premium product at that premium price. It's very nice. Most
00:28:00
◼
►
people should probably just buy the Paperwhite, but it's a really nice product. I'm very happy
00:28:03
◼
►
with it. It's really quite pleasant. It is better than I thought it would be, and I thought
00:28:08
◼
►
it would be pretty good. Alright, I think that's it for our guest follow-up. Scott,
00:28:15
◼
►
Thank you so much for taking time out of your work day to do some guest FU about the Kindle.
00:28:22
◼
►
>> My pleasure. Anytime you need me, just turn on the Kindle sign and I will appear.
00:28:27
◼
►
>> Yes, we'll shine the Kindle signal and Scott will appear.
00:28:31
◼
►
>> Thank you to Mr. McNulty for joining us today and let's take a quick break and then
00:28:34
◼
►
we actually have some other follow up to get into, Jason.
00:28:37
◼
►
>> That's just between me and you and of course the listeners too. This week's episode is
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your first invoice. Pingdom is focused on making the web faster and more reliable for
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everyone who has a site. They do this by offering powerful and easy to use tools and services.
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For example, if you are a user of Pingdom, monitoring the availability and performance
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Let's get back in to our follow up.
00:30:51
◼
►
So we had a great email from Ryan who was talking to us about a potential reason for
00:30:57
◼
►
the Apple car and its existence from what we were talking about last week.
00:31:01
◼
►
Ryan said "Wouldn't designing a car be like the ultimate challenge for Johnny Ive?
00:31:06
◼
►
Surely he would jump at the chance to want to do this and might be kind of helping spearhead
00:31:10
◼
►
the project.
00:31:11
◼
►
For him to do to cars what he did for phones, computer design and things like that would
00:31:17
◼
►
kind of put him, as Ryan says, in the Mount Rushmore of design. After his hand in designing
00:31:23
◼
►
the new Apple Campus, quite literally the car is the only thing he has left.
00:31:28
◼
►
Well, that's probably true, although you're not going to hire hundreds of people, thousands
00:31:36
◼
►
of people, and spend a billion dollars just because you want to keep Johnny Ive engaged.
00:31:41
◼
►
No way, but I mean, he might be there helping push it forward, right?
00:31:45
◼
►
Sure, sure. And he's probably, if he's involved in this, I would assume he would be involved
00:31:49
◼
►
with this, and then he's probably working with a team of designers who have some background.
00:31:53
◼
►
I know that he loves cars and drives a Bentley and all of these things. Bentley, by the way,
00:32:00
◼
►
so I'm not a car guy, but I see pictures of Bentleys. I'm like, "Wow, that's one ugly
00:32:04
◼
►
car." But okay.
00:32:05
◼
►
I don't like Bentleys either.
00:32:06
◼
►
Yeah, they seem really horrendously ugly to me, but Johnny Ive likes them, so okay. Sorry,
00:32:11
◼
►
these Bitly owners out there, I'm sorry, I like to apologize, but I don't like them,
00:32:18
◼
►
they're ugly. So, yeah, I don't know, I mean, sure, I'm sure Johnny Ive would love this.
00:32:24
◼
►
Although Ryan also says after the new Apple Campus, the car's the only thing left, I don't
00:32:29
◼
►
think Johnny Ive designed the Apple Campus, I think there was a world-famous architect
00:32:32
◼
►
who designed the new Apple Campus. Well, he's had a big hand in it, though, right? I'm sure,
00:32:36
◼
►
and the materials on the inside and all that, I'm sure he's been involved, right, but it's,
00:32:39
◼
►
I think not at the level like he designs hardware.
00:32:42
◼
►
Yeah, because I think that that profile kind of spoke about him really being involved in
00:32:47
◼
►
Like, was it in New York Times or something?
00:32:50
◼
►
Do you remember that big, big Johnny Iov profile?
00:32:54
◼
►
I think that's where that might have come from, whether it's true or not, like, as to
00:32:58
◼
►
how much involvement he actually had, but they were really kind of talking about that.
00:33:04
◼
►
I'm sure, but he's like, you know, he's part, he's one of the clients, you know, he's the
00:33:09
◼
►
but there's an architecture firm that's building the thing and I don't I think
00:33:12
◼
►
it's but that probably a lot of what Johnny Ive does these days is at that
00:33:16
◼
►
level of remove where he's you know he's looking at the big picture of a lot of
00:33:20
◼
►
stuff and then maybe he's diving into very specific things and perhaps the car
00:33:24
◼
►
is a place for him to play I feel like I feel like the design of the shape of the
00:33:29
◼
►
car while I don't want to say it's not important to Apple doing a car but I
00:33:34
◼
►
I think I would say it's not the most difficult thing
00:33:39
◼
►
about Apple doing a car.
00:33:40
◼
►
So yeah, I guess I would say to Ryan, yeah,
00:33:45
◼
►
it's interesting to think about Johnny Ive doing this
00:33:47
◼
►
and having it be an interesting challenge
00:33:48
◼
►
to keep him engaged at Apple.
00:33:50
◼
►
I don't dispute that.
00:33:53
◼
►
I just, that's about as far as I'd go.
00:33:57
◼
►
I think in the grand scheme of things,
00:33:59
◼
►
it's not really an important aspect of the story
00:34:03
◼
►
and it's not the hardest thing that they have to do
00:34:05
◼
►
about like how it looks.
00:34:07
◼
►
I think I'm intrigued to think of what an Apple designed car
00:34:10
◼
►
might actually look like inside and out.
00:34:12
◼
►
That intrigues me, but I feel like there's just so much more
00:34:17
◼
►
to the story than just that,
00:34:18
◼
►
that that's sort of how I approach it.
00:34:21
◼
►
- You wrote a big review thing about USB interfaces
00:34:26
◼
►
for audio work.
00:34:31
◼
►
Can you talk a little bit about this and why you did it?
00:34:34
◼
►
Yeah, I tried to deal with the fact that we have...
00:34:39
◼
►
I get a lot of questions about like what microphone should I use?
00:34:42
◼
►
Like I'm a podcaster and I'm looking for a better microphone, what microphone
00:34:45
◼
►
should I use? And
00:34:46
◼
►
we've talked a lot about, you know, there are USB microphones where you have a microphone, you
00:34:50
◼
►
plug it into your computer and you use that.
00:34:53
◼
►
The like Blue Yeti is one of those and there are a bunch of those.
00:34:56
◼
►
And then there are the XLR microphones which are traditional,
00:35:00
◼
►
more traditional microphones, they've got a big thick cable, and then you plug those
00:35:04
◼
►
into a USB interface, and that is what goes to the computer and converts the audio signal
00:35:09
◼
►
into something that's a digital signal that the computer can understand. And I didn't
00:35:14
◼
►
have enough experience with the low-cost audio interfaces to make any recommendations there,
00:35:19
◼
►
so I bought like five of them that were $150-ish or below and tested them and basically came
00:35:27
◼
►
up with a recommendation of what I thought the right one to buy is if you are looking
00:35:34
◼
►
to go to an XLR, a low-cost XLR interface right now. And the Tascam USB 2x2 for, I think
00:35:42
◼
►
it was a Streeting at 119 when I wrote the story, is the one that I like the best. It's
00:35:47
◼
►
super kind of heavy industrial feeling, which I don't love the design of it, but I feel
00:35:53
◼
►
like it's the best in terms of the it and the Presonus Audio Box 2 were
00:36:02
◼
►
the best in terms of the sound quality and the Tascam has the headphone jack on
00:36:07
◼
►
the front and the Presonus has the headphone jack on the back which I do
00:36:11
◼
►
not understand and so for me I feel like that was enough to kind of like nudge
00:36:16
◼
►
plus the Presonus was was a lot more it was like $50 more so the Tascam is the
00:36:21
◼
►
one that I like the best but I feel like right now, oh and I use those microphones that Marco
00:36:26
◼
►
really likes that are the $20 knockoffs of the Shure microphones and I found that one
00:36:31
◼
►
of the problems with them is that they're really prone to interference if you get it
00:36:34
◼
►
near a source of interference so if you're like...
00:36:37
◼
►
- A cell phone or something.
00:36:38
◼
►
- Or a computer, right? And like if you're right next to the computer with those microphones
00:36:42
◼
►
they put out, they're very noisy in the way that the Shure microphones aren't and so yes
00:36:49
◼
►
you could get a Tascam in one of those pile cheap microphones and if you're in the right
00:36:54
◼
►
place and you've got your cables positioned so that they're not going over a power source
00:36:59
◼
►
or something and draining the interference, you could get a fairly good sounding, cheap
00:37:04
◼
►
setup for about $140, $130. You gotta buy some cables and stuff. That all said, it still
00:37:11
◼
►
feels to me like your best option is something like the Audio-Technica ATR2100, which is
00:37:19
◼
►
a USB mic that also is an XLR mic if you want it to be.
00:37:23
◼
►
All the links for these are in the review, by the way, which will be in the show notes.
00:37:27
◼
►
Yeah, and it's, you know, that one is a relatively inexpensive microphone that is about 60 bucks
00:37:35
◼
►
and it's a USB microphone and it repels sound that, unless you're very close to it, it really
00:37:41
◼
►
shuts down like echoes and things aren't picked up you've got to be very close to
00:37:45
◼
►
it when you talk through it but you know you should be that you should do that
00:37:49
◼
►
anyway that's what it's for is for you being close to it and talking and being
00:37:52
◼
►
on a podcast so I've got one of those here I'm going to spend a little more
00:37:56
◼
►
time with that one too so I can I can see for myself but from from everything
00:38:00
◼
►
that everybody I've talked to who's used it a lot that seems to be the best the
00:38:04
◼
►
best buy so the XLR stuff it's really for like people who want to record
00:38:07
◼
►
multiple microphones at once or have you know have them be more flexible about
00:38:16
◼
►
being able to plug them into sound boards or remote recordings plus
00:38:21
◼
►
attached to a computer but I'd say for most people regular old people who are
00:38:25
◼
►
doing podcasts a little bit a USB mic like the Audio-Technica mic is probably
00:38:30
◼
►
the best bet. I've recommended the Yeti over the years but the Audio-Technica
00:38:33
◼
►
mic is cheaper and I think it I think it from everything I've heard again I need
00:38:37
◼
►
to spend more time with it myself. It seems to sound better and it's cheaper and it's
00:38:40
◼
►
more reliable. The only thing that's got going against it is it doesn't seem to have a mute.
00:38:46
◼
►
It doesn't have a mute button on it, so you have to kind of like mute Skype or something
00:38:50
◼
►
like that, but for most people that's not a big deal.
00:38:52
◼
►
One thing I don't like about the Tascam is that a lot of the settings are in software.
00:39:00
◼
►
Yeah there are, I mentioned that, it's not a lot, but there are some preferences basically
00:39:04
◼
►
that you have to open up like a little control panel and check the box in order to set it
00:39:08
◼
►
instead of having it be like on the very expensive ones that we have there are dip switches that
00:39:14
◼
►
are for all the settings so you never have to have any software you don't have to have
00:39:17
◼
►
any software on the task cam to record but if you want to like tell it to monitor and
00:39:22
◼
►
stereo instead of mono through the headphones you actually do have to launch a piece of
00:39:25
◼
►
software and check a box and then close the piece of software but most of it's not like
00:39:30
◼
►
that. But still I feel like that one is again for 120 bucks, that's a pretty good deal
00:39:38
◼
►
and you live with some of the downsides of that.
00:39:40
◼
►
Yeah, I mean look if I'm paying $120 then like if the software dies after two years
00:39:45
◼
►
and I can't change sentence anymore like I've not blown a lot of money. Like if I was you
00:39:49
◼
►
know something like the USB pre which we use which is what like 600 bucks if that was software
00:39:54
◼
►
configurable, I would never buy it. But I, you know, it's just a bit like, "I really
00:40:01
◼
►
wish that this wasn't the case." You know? Like, it's just like, I really would much
00:40:05
◼
►
prefer to have all of the settings be physical as opposed to software.
00:40:09
◼
►
Yeah, I agree. I definitely agree. And it's harder to get that on a cheap piece of…
00:40:17
◼
►
One thing I will say is, I'm not a fan. I had somebody recommend another one of these
00:40:21
◼
►
things that's you know it's sort of like a next generation mixer and it's got a
00:40:24
◼
►
screen and it's got special software and I tried one of those and I don't like
00:40:29
◼
►
them like more more special software I you shouldn't have to install custom
00:40:34
◼
►
special software in order to get your mixer to work and in fact what you're
00:40:38
◼
►
doing there we had this happen to Macworld where twice our mixer basically
00:40:42
◼
►
was fine and we couldn't use it anymore because we had to stop updating our
00:40:48
◼
►
hardware and software or it would stop working and that's not cool where like
00:40:53
◼
►
the developer the the builder of the hardware keeps the software up to date
00:40:58
◼
►
for a couple of years and then there's an OS update that breaks it and the
00:41:01
◼
►
hardware manufacturers like sorry and that doesn't happen when it's just a
00:41:06
◼
►
kind of a vanilla USB device that you plug in and it just works with the
00:41:10
◼
►
software and doesn't require your special stuff in order to function so
00:41:15
◼
►
Yeah, anyway, I know this is really insider-y, but I actually, I had just this weekend I
00:41:19
◼
►
was talking to somebody about like, what's my podcast set up and, you know, what should
00:41:22
◼
►
I buy and things like that.
00:41:24
◼
►
So I decided that I, that was an area that Marco Arment didn't kind of go too far down
00:41:28
◼
►
into when he did his big microphone roundup.
00:41:30
◼
►
And so I kind of wanted to do it just so I could say, you know, basically the Tascam is
00:41:36
◼
►
good, the Presonus is good, and I didn't like the Focusrite Scarlett's and, you know, there
00:41:43
◼
►
was another one that was okay. Just so I can start down that path of being able to say
00:41:48
◼
►
that with some authority instead of it being like, well I hear that this one's okay, but
00:41:53
◼
►
I don't actually know.
00:41:55
◼
►
Yeah, this is a good resource to have. I think that it's interesting to do the lower price
00:42:01
◼
►
stuff because I do really feel like, at least just from me being in and around this all
00:42:06
◼
►
day, that more people wanted to get involved in this, like people wanted to start blogs.
00:42:10
◼
►
I'm starting to feel that kind of enthusiast, like I have a thing that I like to talk about
00:42:16
◼
►
and I want to do this and I don't want to spend too much money but I want to make it
00:42:20
◼
►
sound good. You know?
00:42:21
◼
►
>> Yeah, they don't want to spend hundreds of dollars, but some people it's like, yeah,
00:42:26
◼
►
but I also don't want it to sound bad. So, you know, you have to kind of balance that.
00:42:31
◼
►
I think right now, like I said, I think that maybe the Audio-Technica mic, 60 bucks with
00:42:35
◼
►
a really good microphone that's a USB microphone, that might be a good place for people to start.
00:42:41
◼
►
But definitely I get that sense. And I've said this before, you know, a few years ago
00:42:45
◼
►
I did a panel at a science fiction convention about podcasting and it really struck me that
00:42:49
◼
►
the people there really were excited about podcasting, but they were not like a $30 microphone,
00:42:55
◼
►
they're like, that's kind of pricey. Like these are people with not a lot of money to
00:42:59
◼
►
spend on technology. So that was a good perspective to have for all the talk of
00:43:05
◼
►
spending, you know, we as professional podcasters might decide to spend $800
00:43:09
◼
►
on microphones and a mixer and all of that, but I think it's really important
00:43:13
◼
►
to try and find that product. Like Marco's number one and two products are
00:43:17
◼
►
like these $600 microphones that require a multi-hundred dollar USB
00:43:21
◼
►
interface to work. And it's like, that's great, but you know, that's for a tiny
00:43:26
◼
►
percentage of the audience and the bigger percentage is going to be people who are on
00:43:30
◼
►
a budget and they want something that sounds good that isn't going to break the bank and
00:43:34
◼
►
so that's what I'm trying to look at is you know in that price range you know 150 and
00:43:39
◼
►
below what is there.
00:43:41
◼
►
Yeah I mean me and you got to the levels that we're at right now after many years of using
00:43:46
◼
►
cheaper microphones.
00:43:48
◼
►
Totally yeah.
00:43:49
◼
►
Right so like this it's just a progression if you if you become really serious about
00:43:53
◼
►
it. Not necessarily like, "Oh, it's a business for you," but it's something that you consider
00:43:57
◼
►
to be... you end up getting very serious about as time goes on. As with any kind of hobby,
00:44:03
◼
►
really, you'll start spending more and more money on it. And that's when you can go to
00:44:06
◼
►
get something like the Neumann KMS 105, which is what I use now, and I love it. But even
00:44:12
◼
►
then, like, that was a... it was even a big step for me, because, boy, it weren't cheap.
00:44:17
◼
►
But this microphone for me is absolutely fantastic.
00:44:22
◼
►
that this is what you do all day, right?
00:44:24
◼
►
- Exactly, like the first time I heard it,
00:44:26
◼
►
I was like, oh wow, that's my voice,
00:44:27
◼
►
that's how my voice sounds.
00:44:29
◼
►
And this is the microphone that's been the closest
00:44:31
◼
►
to be able to reproduce the way that I hear myself
00:44:34
◼
►
and that's why I love it.
00:44:35
◼
►
All right, so, there's something that I wanted
00:44:40
◼
►
to just bring up because me and you spoke about this
00:44:42
◼
►
a long time ago.
00:44:44
◼
►
Dropbox seems to be announcing and trialing out
00:44:49
◼
►
something called Dropbox Infinite.
00:44:52
◼
►
Now I can't for the life of me work out if this is going to be something that's available
00:44:56
◼
►
for everyone or just for business.
00:44:59
◼
►
I feel like it's going to be available for everyone and basically what it is, is it's
00:45:03
◼
►
making Dropbox on desktop computers a little bit more like Dropbox on mobile.
00:45:10
◼
►
So on iPhone apps and Android apps you see kind of placeholders for your files which
00:45:15
◼
►
you can then click and access and it will download the data from Dropbox and now they're
00:45:20
◼
►
looking at trying to do this on desktop as well so you'll be able to save for
00:45:24
◼
►
maybe specific files and specific folders. I don't want that 20 gigabyte
00:45:30
◼
►
file always taking up hard drive space unless I need it and then you can go and
00:45:35
◼
►
grab it. So this is something that me and you spoke about a long time ago
00:45:39
◼
►
which is like I have a one terabyte Dropbox account and I don't have any
00:45:43
◼
►
machine that has a terabyte of data on it so I can never fill it up and this is
00:45:47
◼
►
now hopefully going to be what can solve that problem.
00:45:50
◼
►
Yeah, I wrote about this on Six Colors too. It's interesting, they announced it at a business
00:45:56
◼
►
conference that doesn't necessarily mean that it's only a business feature, also that they're
00:46:01
◼
►
testing it with their, they had like a weird phrase for it, like their, what do they call
00:46:07
◼
►
them, sponsor customers, I don't even know what that is, but yeah, my feeling is this
00:46:16
◼
►
has to be part of their core product eventually. Maybe it's not there for free users, although
00:46:21
◼
►
even there I think you could argue that it probably should be. The idea here is too fundamental
00:46:26
◼
►
to how Dropbox works. The idea that you can see everything on your Dropbox and then choose
00:46:33
◼
►
what syncs and doesn't sync into your hard drive space, or maybe even choose the maximum
00:46:39
◼
►
out of Dropbox space to take up and have it sort of cache things on the fly down
00:46:46
◼
►
the road. So I think those are all important features and they're key to
00:46:52
◼
►
the fundamentals of Dropbox. It means you don't have to fish around in the
00:46:56
◼
►
selective syncing button in the settings in order to say "Oh no, that giant folder,
00:47:02
◼
►
I don't want it." Because the truth is, yeah, our hard drives, I've got a
00:47:07
◼
►
terabyte hard drive on my iMac, an SSD, and it doesn't, it's not, it can't fit that.
00:47:14
◼
►
It's like, it can't fit just my Dropbox folder because it's got the rest of it that it has to,
00:47:20
◼
►
it has to deal with. I don't know, and I take it back, I don't even have the terabyte, I have
00:47:24
◼
►
the half terabyte. I have the 500 gigabyte storage. So I literally can't on any of my
00:47:30
◼
►
devices except for my server in my house, sync my Dropbox entirely. So this is cool because you can
00:47:36
◼
►
can say, you know, sync these files or even double click on a file and it syncs
00:47:42
◼
►
over and then opens. So it's smart and I went down there's a hacker news thread
00:47:49
◼
►
from somebody who used to work at Dropbox who said that it's a very smart
00:47:53
◼
►
feature that he thought that it was even at the command line level it does the
00:47:58
◼
►
right thing so it's you know they put a lot of work into this and it works on
00:48:03
◼
►
Mac and Windows to have it be that you basically your files are there on
00:48:08
◼
►
demand and you can also set them to be there at all times if you are going to
00:48:12
◼
►
go offline. I think it's the right thing to do for Dropbox because they are
00:48:16
◼
►
making all of this, you know, if you pay for Dropbox even as an individual you
00:48:20
◼
►
get a terabyte of storage and you probably can't use it all locally nor
00:48:24
◼
►
should you need to use it all locally. Like I'm going to review the
00:48:28
◼
►
MacBook and I set it up with Dropbox so I could get a lot of my files and it
00:48:31
◼
►
wants to download my Dropbox. I have to like check a bunch of boxes like no no no no no
00:48:37
◼
►
don't download any of these things it still wants to download a huge amount of data. I
00:48:41
◼
►
would much rather be able to turn Dropbox on on that computer and have it see my Dropbox
00:48:45
◼
►
but not download anything until I tell it to. That's a much better experience. So I
00:48:50
◼
►
hope Dropbox rolls this out not just for its business customers but for everybody certainly
00:48:55
◼
►
for all of its paying customers because I think it just makes the metaphor of the product
00:49:01
◼
►
in line with reality of devices today.
00:49:04
◼
►
Plus, calling it infinite is so genius. What a fantastic brand name. I just love that.
00:49:10
◼
►
It's perfect.
00:49:11
◼
►
Project Infinite.
00:49:12
◼
►
Yeah, it's the—and I had the terabyte conundrum, was what I had been talking about. So Project
00:49:15
◼
►
Infinite has solved the terabyte conundrum.
00:49:18
◼
►
Sounds very scientific.
00:49:19
◼
►
Yeah. Oh yeah. It's all science.
00:49:21
◼
►
Should we take a break?
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◼
►
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00:51:34
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Alright so it's been a few days since the Outlast Apple results came out and usually
00:51:39
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on this show I don't know if it really gets in there often because it usually comes out
00:51:43
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like the day after and the week goes by and it's like okay everyone made a bunch of money
00:51:47
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congratulations yay but this one wasn't so much like that no I me and Federico had a
00:51:57
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had a long conversation on connected about this right in which I really felt a lot of
00:52:03
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what you were talking about but maybe we should actually have a conversation about it too
00:52:08
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too, because your take, I, I, when I was reading your articles, the many thousands of words
00:52:13
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that you've written about the last Apple results, I was feeling quite a conflict in
00:52:18
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you, which you can correct me if I'm wrong, because there was, you know, there is the
00:52:24
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whole argument which kind of frustrates me of, "Oh, but you know, they made so much
00:52:30
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money so it was not too bad, it was actually really great." But then on the other side
00:52:35
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of it there's also the fact that like this is the first time in 13 years where the numbers
00:52:39
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are down and you know no matter how you want to place it Apple decides that they want to
00:52:45
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be in the Wall Street world. They participate in it you know they are a public company you
00:52:51
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know they made the decision and they pay everybody attention.
00:52:54
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Yeah like 40 years ago they made the decision. Yeah but they go ahead and they pay the attention
00:52:59
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that they need to everyone and they have the conference calls and stuff right?
00:53:02
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They have to. They have to do it. They're a public company. That's just how it is.
00:53:06
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Right. But what I'm saying is that they are involved in that scenario.
00:53:10
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So they are in that world and that is part of it. And they play to it and they do what
00:53:15
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they need to do to try and help. They definitely don't ignore the share price. They make decisions
00:53:21
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and do things to try and influence that, I'm sure, because they're a public company.
00:53:26
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So the fact that the results have changed and that they're now down year on year, which
00:53:31
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is the first time it's happened in 13 years, has made this result and then the next ones
00:53:37
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Well, I think, you know, writing about Apple, one of the challenges is there's so much stupid
00:53:44
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stuff that's written about Apple that it's problematic to get around, yeah, there are
00:53:56
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the knee-jerk reactions like I mentioned this on maybe on the Six Colors podcast,
00:54:01
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I mentioned that there was a Colbert report, or not report, right, the Late Show with Stephen
00:54:06
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Colbert. Stephen Colbert played a video about, his monologue was about the Apple results last week
00:54:11
◼
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at one point. It was just kind of mind-boggling to think about it. And he's a big Apple guy,
00:54:16
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he's got all the devices, he's had a video at the keynote, all those things, right? But the local
00:54:22
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news broadcast that they played was Apple releases its worst results, its worst
00:54:29
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corporate results in 13 years or something. And that's the challenge
00:54:34
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about this story. It's not technically inaccurate. It's wrong. That is the
00:54:39
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wrong statement because that is making it about second level, it's
00:54:45
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about growth, right? No, actually Apple released its what, fifth most profitable
00:54:50
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quarter. Ah, I see what you're saying. Yeah. Eighth most profitable quarter. It's their
00:54:55
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worst result in like six quarters in terms of profit, in terms of revenue. The only thing
00:55:02
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it's the worst in 13 years is year-over-year growth. And this is the challenge of writing
00:55:10
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about this, right? Or talking about it. How do you define that? And if you define it by
00:55:16
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way Wall Street defines it, which is perfectly valid, and this is part of the challenge that
00:55:22
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I feel and that you probably sense, is I don't like it when people who should know better say
00:55:30
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it's totally unfair that Apple's stock price goes down after they report their earnings because they
00:55:35
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made a lot of money. And this year, you know, it happens all the time, but it certainly happened
00:55:40
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this quarter. That really bothers me because, come on, this is how Wall Street works. The
00:55:46
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expectations of where the company is going are built into the stock price already. They
00:55:50
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have given guidance. People know what the results are going to be and then Wall Street is reacting
00:55:56
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to future growth, future ways to make money with this company because you put your money into it
00:56:00
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and you want to see it grow. Now, what I would say is that that distorts our view of businesses.
00:56:10
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So it's a little bit of both. Like, it's so easy to be like that local news reporter and just say
00:56:16
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Apple had its worst quarter in 13 years. And it's just not true. Investors are unhappy with Apple's
00:56:25
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least amount of growth, or in this case, negative growth of shrinkage year over year in 13 years.
00:56:33
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But that is so specific. And I think if that's your mark of whether something was good or not,
00:56:39
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you are really deep down in a distorted view of the world. Now if you're an investor, if
00:56:48
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you're an institutional investor, if you're a Wall Street person, then that's how you
00:56:52
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view the world because you're viewing it through that lens. But you know what, most people
00:56:55
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aren't, and I think it's misleading. So I think when you want to understand what we
00:57:01
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saw, you need to look at all of it. You need to look at the fact that yes, all of Apple's
00:57:05
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products were receiving last quarter year over year. Absolutely true. Do not
00:57:10
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soft pedal it. It's going to get worse or at least continue to be bad. That's one
00:57:15
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of the things I said to end one of the pieces I wrote last week.
00:57:19
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Their guidance is down next quarter too, right? I mean 2016 is going to be down
00:57:24
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every quarter from 2015 for Apple. That's just how it's going to be. It's
00:57:29
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interesting to wonder why and look at the story Apple's telling, which is that
00:57:34
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the uptake on the 6 was huge and the uptake on the 6s is sort of like a little
00:57:41
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better than the 5s which means perhaps what we're really seeing here is an
00:57:47
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aberration because the 6 was such a huge hit because there was so much pent-up
00:57:51
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►
enthusiasm for a big Apple phone that drove sales of the 6 and that if you
00:57:59
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take the six out of the equation entirely, sort of delete 2015, then 2016 seems like
00:58:06
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a reasonable follow-on of slow growth from 2014. But 2015 was this aberrant success,
00:58:13
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and if everything you measure is year over year, guess what? That was the mountaintop.
00:58:19
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Even if you keep growing from here slowly, year over year you're going to look terrible.
00:58:24
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So I'm not saying that they're going to continue growing, they could shrink, and that's part
00:58:29
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of the fear I think that drives some of the stock price stuff. But, you know, so there's
00:58:35
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a lot going on here, I guess, and it's complicated, because what I don't want to do is say, "No,
00:58:39
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no, everything's going to be fine, Apple's great, it doesn't matter." Because, to your
00:58:44
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point, this is the game that they're playing, and they have written—their success that
00:58:48
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they've been writing has not just been about profits and revenue, it has also been about
00:58:52
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growth. And you can't suddenly say, "Well, it's really just about profits and revenue."
00:58:57
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Yeah. Yeah. You can't ignore the fact that for the last... How many years was it again?
00:59:04
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You can't ignore for the fact that for the last 13 years, we've all been like, "Look
00:59:07
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how great we're doing!" And then when this happens, it's like, "Oh, no, but it's not
00:59:12
◼
►
about that anymore." Because we've all been so excited to see those graphs go up.
00:59:16
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►
It's one of the dimensions of Apple's success that has stopped. And you can't say, "Now
00:59:28
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it doesn't matter," and it was really about the other two. That said, you also can't say
00:59:33
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it's the only one that matters. Well, you can, and if you're a Wall Street investor,
00:59:37
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you can. I would argue that most people should not do that, right? Because I actually think
00:59:41
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corrosive if the endless quest for growth as the only thing that's valuable destroys
00:59:47
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companies with great profitable businesses that could potentially jeopardize those businesses
00:59:54
◼
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because they need to find the next growth thing. And that's one of my worries about Apple is that
00:59:58
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Apple is going to get so concerned with growth that they're going to lose focus even more over
01:00:05
◼
►
their core products because they've got to find the next big thing, whether it's a car or something
01:00:09
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►
else, right? That worries me a little bit. But, you know, so I think it's healthy to say, "Look,
01:00:16
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►
Apple is very profitable and has huge revenue. And the only way that we're concerned about this is
01:00:23
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►
because 2015 was so good. And by pre-2015 Apple standards, this quarter was actually quite good.
01:00:30
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It's just that last year was so good that this year doesn't look as good." And I think
01:00:38
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►
think it's that's complicated, right? That's not a "it was great, it was terrible, everything's
01:00:42
◼
►
going to be fine, everything is awful," right? It's not either of those things. It's kind
01:00:46
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►
of in the middle. And so it's a challenge. And I know people on both sides of those arguments
01:00:52
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►
are also up in arms and trying to find, you know, find people who are behaving the other
01:00:57
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►
way and attack them too. I got a little of that. I wrote a piece for iMore on Friday
01:01:02
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►
that was like literally, if you take the iPhone out of the equation, what's happening with
01:01:07
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Apple's other businesses. And the whole goal of it was to say, "Let's not lose sight because
01:01:12
◼
►
the graph is so huge on the iPhone, and we've lost the scale of what the Mac business does
01:01:17
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►
where it chugs along making Starbucks profits every year, essentially."
01:01:25
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►
Also that profit number, that's something that people bring up a lot, and that's another
01:01:29
◼
►
thing that kind of frustrates me. "Oh, even in a down quarter they make more profit than
01:01:34
◼
►
next company. But like it's all relative though, you know? Like, I know that people
01:01:39
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►
are like, "Oh, why are we ignoring the fact that they've made so much profit?" But,
01:01:43
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"I've made so much profit for so long that now it's kind of just the number." Right?
01:01:48
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Yeah, I mean, but in the end, I, as, you know, your profit is what keeps you afloat, is that
01:01:57
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they're making a profit. I don't have a profit. I mean, profits, like I said, revenue
01:02:01
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►
is important, profit is important, and growth is important. They're all important. And they
01:02:05
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►
have hit a bump on growth, but they're still profitable. And that's, you know, it leads,
01:02:11
◼
►
I think one of the issues is it can lead to a narrative that like Apple's in trouble,
01:02:15
◼
►
which is funny because Apple's not in trouble. Apple has really shown no signs of trouble.
01:02:18
◼
►
The only trouble Apple is in is with investors who wanted to have a continual huge growth
01:02:25
◼
►
percentage every year, because I don't think that's going to happen. Right? And so they
01:02:29
◼
►
should be in trouble for that. And that's the other part of this is you can't soft pedal
01:02:32
◼
►
that. It's like, yeah. I mean, one of the analysts asked him, Cook, do you see this?
01:02:36
◼
►
Are you still a growth company? And he did not answer that question. He's totally sidestepped
01:02:41
◼
►
that question and said, no, no, I'm really optimistic about how great things are. And
01:02:44
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►
he didn't answer the question. And I think it's a fair question to ask, which is, you
01:02:47
◼
►
know, yeah, I know you've got room for some smart incremental smart phone growth here,
01:02:52
◼
►
but is Apple going to be a company that grows 20% year over year regularly again, or is
01:02:58
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►
Is it going to be a company that doesn't grow a whole lot, maybe a little tiny bit, but
01:03:02
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►
will continue to throw off 10, 15 billion dollars in profit every quarter?
01:03:06
◼
►
Which makes it one of the most profitable businesses in the world, but it's not growing
01:03:11
◼
►
And that's, you know, I think that's a fair question to ask.
01:03:15
◼
►
But that's different from Apple's losing money, you know, iPhone sales are in the tank.
01:03:20
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►
I think the iPhone quarter was like, again, the, if you go back five quarters or six quarters,
01:03:26
◼
►
would have been the record number of iPhones sold. It's just that last year, year and a
01:03:31
◼
►
quarter that were even higher. So it's about keeping perspective. But it's weird, right?
01:03:40
◼
►
Because it's profitable and lots of revenue, but it's not growing anymore and you got to
01:03:45
◼
►
call it that. You got to admit that that is not happening. And it's a muddy argument to
01:03:51
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►
make. There was a lot of other interesting stuff, by the way, in the numbers, which is
01:03:55
◼
►
why I wrote so many stories last week about it because you know beyond the big picture
01:03:59
◼
►
of like oh no they lost you know they they they failed to grow year over year for the
01:04:04
◼
►
first time in 13 years absolutely true there were some other interesting things in the
01:04:09
◼
►
numbers but I don't know it's it's it was a weird quarter and I think people just need
01:04:13
◼
►
to who are thinking oh well they'll turn it around next quarter they're not gonna they're
01:04:18
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►
not gonna the guidance is what it is that's one of the reasons that the stock was down
01:04:22
◼
►
is not just because of their results, because the results were within guidance. It's because
01:04:25
◼
►
their guidance for next quarter is more of the same. And traditionally that is a down
01:04:30
◼
►
quarter over the second financial quarter and they said it would be down year over year.
01:04:35
◼
►
So it's going to, you know, this, this will happen again. The gnashing of teeth will happen
01:04:40
◼
►
again in three months. So get ready. And probably in six months too.
01:04:45
◼
►
[Sigh] Still there, still with me?
01:04:49
◼
►
Yeah I am, I am. One of the things that I liked that you pointed out that I didn't really
01:04:55
◼
►
see too much of, and I know Dr. Drang wrote something about this a while ago, is if you
01:04:59
◼
►
imagine 2015 never happened there was no problem. And it really did seem that 2015 was just
01:05:06
◼
►
this year for Apple that may never happen again and you kind of would hope wouldn't
01:05:12
◼
►
happen again because it was just too much in one year right was like there
01:05:16
◼
►
was too much stuff happening. Think of the pent-up demand for a bigger
01:05:20
◼
►
iPhone. I mean bottom line the pent-up demand for a bigger iPhone. The people
01:05:24
◼
►
wanted to get a bigger iPhone whether they were using an Android phone because
01:05:28
◼
►
they wanted a bigger phone and we're like oh finally I can get an iPhone
01:05:31
◼
►
that's big or they were iPhone users are like yeah it nothing really excites me
01:05:35
◼
►
I'm gonna stick with this phone and then the big the 6 and 6 Plus come out
01:05:38
◼
►
and they're like oh yeah now is the time but for whatever reason the 6 was a huge
01:05:42
◼
►
hit and you're measuring growth that's the problem is if you have a huge hit
01:05:46
◼
►
then measuring growth the next one has to be huger and if it's not then you've just lost your growth
01:05:54
◼
►
that's that's how it works that's that's how math math works so it's a it's true dr drang wrote that
01:06:03
◼
►
piece in january too group linked to it i i was looking at it he called it right which is the
01:06:12
◼
►
you know, if you look at 2015 from Apple and thought, "Aha, look, they're accelerating again,
01:06:16
◼
►
and they're going to put this these numbers up in 2016 and 2017 and 2018, it's just going to keep on
01:06:21
◼
►
going to the stratosphere." If you thought that, you absolutely should be disappointed.
01:06:25
◼
►
I could argue that nobody should have really thought that, but that's that the fact remains,
01:06:32
◼
►
the fact remains that they're not selling iPhone 6s like they sold iPhone 6s, for whatever reason.
01:06:40
◼
►
Can we talk about the iPhone SE for a second?
01:06:42
◼
►
- Of course.
01:06:44
◼
►
- I thought this was really one of the fascinating things
01:06:47
◼
►
about the call was the iPhone SE,
01:06:52
◼
►
the call with analysts because...
01:06:54
◼
►
So when's the last time that an iPhone
01:06:57
◼
►
was like unable to be purchased because it was oversold?
01:07:01
◼
►
Like the last couple of years, they've gotten really good
01:07:03
◼
►
at making lots and lots of iPhones
01:07:05
◼
►
so that they could fill the channel.
01:07:07
◼
►
But the iPhone SE, they can't make them fast enough,
01:07:10
◼
►
which I find interesting.
01:07:12
◼
►
- I feel like there has to be qualification though,
01:07:14
◼
►
because how many did Apple expect to sell?
01:07:18
◼
►
Because if they didn't expect to sell a lot
01:07:21
◼
►
and they've sold some, then it's a different scenario, right?
01:07:23
◼
►
We don't know those numbers.
01:07:25
◼
►
- I think that's why it's interesting though,
01:07:27
◼
►
is that they cop to it in the call.
01:07:28
◼
►
They said, "We didn't expect this much demand
01:07:31
◼
►
"for the iPhone SE."
01:07:33
◼
►
So that's good.
01:07:34
◼
►
I think maybe it says as much about Apple's internal culture as it does about the iPhone SE.
01:07:41
◼
►
Right, in that they just were like, "No one wants this. This is just a placeholder product."
01:07:45
◼
►
Well, and we've heard it from people in our community too, that when we talked about the
01:07:51
◼
►
4-inch phone last year, we heard from a lot of people who were like, "Bigger is better."
01:07:57
◼
►
iPhone people are a little less than people who have more exposure to Android, but on
01:08:00
◼
►
Android side, the point of pride of having gigantic phone sizes, especially when the
01:08:07
◼
►
iPhone didn't have them, was like part of the culture. And on tech sites, you would
01:08:12
◼
►
definitely see it like bigger is better, bigger is always better. And the iPhone SE goes against
01:08:18
◼
►
that. It's not bigger. And I think people, at least some people at Apple, I suspect,
01:08:26
◼
►
fall into that trap of like, "Come on, nobody wants a small phone anymore. Everybody likes
01:08:31
◼
►
a big phone." The fact is there's an audience for the small phone. They were selling an
01:08:34
◼
►
old version of the small phone and getting like 13% of the iPhones sold were the old
01:08:39
◼
►
version of the small phone. So the fact that they admitted that they, and very specifically
01:08:45
◼
►
admitted that they misjudged demand for this phone because it was smaller, that they realize
01:08:52
◼
►
now that there was a market that they didn't, that they underestimated who wanted the smaller
01:08:58
◼
►
phone. So I think it's kind of cool because I think the iPhone SE is actually a little
01:09:04
◼
►
bit of a sleeper hit that it took Apple by surprise, that Apple was thinking maybe it
01:09:08
◼
►
was more for people who couldn't afford a more expensive phone and whether it was in
01:09:14
◼
►
an international market or whether it was even in their richer places, that it was going
01:09:19
◼
►
to be like their downscale thing because they cut the price on it and didn't realize that
01:09:23
◼
►
there was actually this whole additional market of people that was just don't want a bigger
01:09:28
◼
►
phone, which I think we all tried to tell the world about. But there's there was always
01:09:34
◼
►
skepticism about it and they and Tim Cook cop to it, which I thought was really kind
01:09:37
◼
►
of interesting. He's like, Yep, we underestimated this. And so we are an out of balance with
01:09:43
◼
►
our production. And we have to ramp up production to fulfill the need for the iPhone SE. And
01:09:48
◼
►
And I don't think that means anything beyond maybe it will be 17 or maybe even if it's
01:09:53
◼
►
they're really going good 20% of the mix of iPhones for this year. But still, I think
01:10:00
◼
►
that's really interesting that they that that product has sold better than expected and
01:10:05
◼
►
that they that they were kind of caught unaware of how many people wanted a smaller phone.
01:10:10
◼
►
So here's the other part of it then, right? We have been expecting that this will be the
01:10:16
◼
►
product that will remain for many years to replace the 5s. If the demand is this great,
01:10:21
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►
may it encourage Apple to update this phone more frequently?
01:10:26
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Tim Cynova Wouldn't surprise me. I still am imagining
01:10:30
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this is on a two-year cycle, but who knows? I think one of the challenges everybody faces,
01:10:36
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and this is another question that came up that I feel like Tim Cook didn't have a good
01:10:39
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answer to on the analyst call, is sticker shock, is the idea that people are, especially
01:10:45
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in countries like the US where we used to bury everything in a two-year
01:10:49
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contract people are seeing the actual prices of phones now and is that going
01:10:53
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to lengthen the amount of time between purchases of phones and so that's a
01:10:59
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question like do you really need a new iPhone SE every year or is every other
01:11:03
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year okay because the speed of the iPhone 6s and the features of the
01:11:08
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iPhone 6s are going to be fine in a year. No, they won't be the same as the 7
01:11:12
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but they're close enough that it'll be okay. We'll see. I mean, I think one of the great
01:11:18
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things that the SE has going for it is that price, that it's got, you know, for $399,
01:11:23
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you just get the phone and it's yours and that's free and clear. And that's a, you know,
01:11:29
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Apple needs to, without contracts in those markets, the prices matter more and you can't
01:11:36
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hide that you've been buying, "Oh, I didn't realize I've been buying a $700 phone every
01:11:40
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two years, well yeah you have, it's been in your phone bill that whole time, but now it's
01:11:44
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out right in your face and that can change buying behavior. So that may accumulate to
01:11:50
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the success of a product like the SE2. I don't know.
01:11:54
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I'll wait and see on this one. I mean, you know, we're never gonna get the numbers, but...
01:11:59
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No, we're not. Well, they might throw out one of those, you know, "Unchartable Tidbits"
01:12:04
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like they did with the saying that they sold a certain, you know, how many million four-inch
01:12:09
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iPhones did they sell in the last year when they announced the SE. That was a, we don't
01:12:13
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know, we don't know the time period exactly, you know, but they threw that out there. So
01:12:20
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they may do that again at some point with the SE to say, you know, it's actually been
01:12:23
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a very successful product. It's made up, they might even say it's made up 15% of our mix
01:12:28
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or 20% of our mix and, and that's all we'll ever hear about it, but they might, it's possible
01:12:33
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that they'll do that at some point. The other thing I wanted to mention is services just
01:12:38
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because I thought that was the another interesting thing that came up in the
01:12:40
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call is you know the last quarter they did the whole appendix and I think we
01:12:46
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talked about it here about how like hey everybody look how much money we make on
01:12:49
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services and I think the service line actually surpassed was the only product
01:12:55
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line that grew this quarter and I think services revenue like met or eclipsed
01:13:02
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Mac revenue and this is you know it's App Store and Apple music and stuff like
01:13:08
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that. Oh, they also said that their music sales have been falling, which they've never
01:13:12
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talked about before, but they talked about it in the context of Apple Music halting the
01:13:15
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fall of Apple's music revenue, which I thought was interesting. Never talk about the bad
01:13:20
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news, only talk about when the bad news is over. Apparently.
01:13:25
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Why would Apple Music stop the fall of music sales?
01:13:30
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Well, it's music revenue.
01:13:34
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revenue. Okay. So they're encapsulating the subscription inside of that as well.
01:13:40
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At least for the purposes of this conversation where they basically said that their music
01:13:43
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revenue was going down and now it's reached what they called an inflection point so it's
01:13:48
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probably still down but has stopped its fall and they anticipate that it will go back up
01:13:52
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because Apple Music subscriptions are now offsetting the loss in iTunes sales.
01:13:58
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You know, like the services thing is where they have to go next, right? It's like you
01:14:03
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potentially, you know, with a bunch of caveats, Apple have sold iPhones to the maximum amount
01:14:09
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of people that want to buy them, right? That's kind of what the numbers would suggest, right?
01:14:13
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If the growth on the iPhone is stopping, then everybody that wants one within reason has
01:14:18
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got one. So now how do you make more money out of those people? I think that's the next
01:14:23
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question that they're looking to answer. Apple Music is one of them. Apple Video might be
01:14:28
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another one, you know, and they're gonna be maybe more stuff with the App Store, and then
01:14:33
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you can carry on from there because you have these money-making machines in people's hands,
01:14:39
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how do you squeeze the money out of them?
01:14:41
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Yeah, I mean, Apple would say that they still have room for growth, that they're seeing
01:14:45
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record numbers of Android switchers, and that there are markets that they are growing in
01:14:49
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that they have, that they, like India, where they have not been in before and that they
01:14:53
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feel like they can make an impact, and there's some skepticism among people who know that
01:14:56
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market about that but it's a yeah it the thing that I'll am intrigued by about
01:15:04
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this whole services thing is when they brought this up last time I really felt
01:15:09
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like it gave me the the heebie-jeebies a little bit made me a little concerned
01:15:16
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that what Apple was saying is we're going to nickel and dime you that we're
01:15:21
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gonna we're going to scrape even more money out of all of our existing
01:15:24
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customers and find ways to do growth there because that's all we can do now
01:15:28
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►
to find growth. We need to find growth somewhere we're desperate for it.
01:15:31
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iPhone sales are slacking off in terms of growth and so the only way
01:15:36
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we're going to grow is to just pull more money out of every single iPhone user
01:15:39
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and that leads to a bad place potentially right that leads to a place
01:15:42
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where you know what they're selling you is kind of an empty box and then you get
01:15:47
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it open and it starts asking you buy this buy this buy this other feature you
01:15:50
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know, in-app purchases for OS features or whatever, right? And that really reduces
01:15:55
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the user experience. That makes it... you know, Apple's supposed to be this
01:15:58
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maker of a premium product, you should be paying for the product and get a good
01:16:02
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product. And then if there are additional services you want that should sort of
01:16:05
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like that you should naturally flow into them and not have them throw up a big
01:16:08
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barrier that says, you know, "Nope, you really need to pay for this thing even
01:16:12
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though you thought that you should get that for free." And somebody... I've been
01:16:17
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thinking this all along but somebody else called them on it. Steve Milanovic of UBS
01:16:24
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►
asked on the phone call, "Is it a driver of earnings or is it more about creating ecosystems
01:16:30
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►
to support the hardware?" And that was a question I had, so thank you to Steve Milanovic for
01:16:37
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asking it. And Tim Cook's response was, "The most important thing is the customer experience.
01:16:43
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Overwhelmingly, the thing that drives us is to embark on services that help become part
01:16:50
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of the ecosystem, and that in doing so we've created a profitable business that grows,
01:16:54
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so we wanted to call it out. And I felt like that was exactly the response I wanted to
01:17:00
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hear, because what it was is Cook saying, "Look, no, what we're not saying is that we're
01:17:05
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going to keep cranking up services revenue by nickel and diming our customers. We haven't
01:17:09
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►
changed our philosophy there. We made this a big deal because it's growing a
01:17:14
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lot and we want to show that off, but we're not expressing a
01:17:19
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►
shift in strategy to try to squeeze more money out of our existing user base. Now
01:17:25
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►
you know, maybe they will anyway, but he said the right thing and I'm taking some
01:17:30
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►
encouragement from that because I was a little worried that this is one of those
01:17:32
◼
►
cases where, well, if Apple really is trying to drive growth, would they
01:17:36
◼
►
compromise here? Would they compromise and start making the products worse essentially
01:17:41
◼
►
unless you pay? Well I mean you know there's some grumbling in the chat room over this
01:17:46
◼
►
and I see it like if you're not an Apple music subscriber the music app really tries
01:17:51
◼
►
to make you win. Yeah I know it keeps it keeps putting it right in your face it is it's
01:17:55
◼
►
really annoying. And you know what that is? That's big company mentality you know it's
01:17:59
◼
►
like the the person who's got the target and they decide to keep prompting you about
01:18:04
◼
►
it. I mean that's why look I'm not worried I'm not running for the hills but hearing
01:18:08
◼
►
things like that and seeing things like this this is how these things tend to roll right
01:18:15
◼
►
like company needs growth company decides that they have service companies to sell service
01:18:21
◼
►
so they keep hijacking parts of their software to show service to you.
01:18:27
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►
Yeah I I mean I wouldn't have been as concerned as I was when that appendix came out if I
01:18:34
◼
►
weren't already kind of mad about the fact that they have the free 5GB for one account
01:18:39
◼
►
iCloud storage thing that they haven't changed that I think is a huge usability problem.
01:18:45
◼
►
I hear from lots of regular people who say, "Oh, I'm getting this iCloud--something's
01:18:50
◼
►
wrong with my phone, I'm getting this iCloud error, what should I do? It's telling me to
01:18:53
◼
►
pay." And it's like, they feel like they're being held hostage by their iPhone unless
01:18:56
◼
►
they pay Apple. Like, for basic backup, that should probably--Apple should probably change
01:19:03
◼
►
the way that works so that you know the average user can get by with a backup of
01:19:11
◼
►
their most important stuff without paying and then open up to like look at
01:19:15
◼
►
all the things you can do by paying for more space and they you know and they
01:19:21
◼
►
haven't they haven't gotten that together families can't share their
01:19:24
◼
►
iCloud storage space which is a problem too because I am actually paying for
01:19:29
◼
►
more iCloud storage space, but my wife's phone still tells her that she needs to
01:19:34
◼
►
pay for more backup, and I'm not going to pay Apple again for storage space that I
01:19:38
◼
►
already have, right? So she just gets those errors and I try to manage her
01:19:41
◼
►
backups or back her up to a computer. And so yeah, these things all erode the user
01:19:46
◼
►
experience, so I was glad to hear Tim Cook say that, because at the very least
01:19:50
◼
►
that implies that they're not admitting that they're doing this, or that maybe
01:19:54
◼
►
they are going to not push as hard into it as they could. But it doesn't mean
01:19:58
◼
►
that this isn't going to be an ongoing problem which is shiny shiny service
01:20:02
◼
►
revenue looks really good
01:20:04
◼
►
how do we make more of that and the answer is we get in the way of everybody
01:20:07
◼
►
who uses the music app on their iPhone and try to sell them Apple music and we
01:20:11
◼
►
get you know and we we throw up an emergency scary dialog box about failed
01:20:16
◼
►
storage that failed amounts of failed backup because of not having enough
01:20:22
◼
►
storage as a way to upsell them on iCloud storage space
01:20:25
◼
►
that's not you know that's not good user experience which is what Apple should be
01:20:31
◼
►
focused on. I don't I don't I have no problem with Apple charging for services
01:20:37
◼
►
right I mean I think that's only right and fair but it's a tough line when
01:20:42
◼
►
you're selling that a premium bit of hardware that is a tough place to draw a
01:20:46
◼
►
line of what is enough and what you know when are you nickel-and-diming somebody
01:20:52
◼
►
or when are you giving them a generous amount for their big purchase and then offering additional
01:20:58
◼
►
add-on services and in some cases they are not drawing the line in the right place and
01:21:02
◼
►
that's my concern.
01:21:03
◼
►
Yeah, like how far away is the Apple Music ad from Kindle with special authors?
01:21:08
◼
►
Well yeah, absolutely. Yeah, that's, well that's, it's funny that it's come back to
01:21:14
◼
►
that but it's the same thing, right? For a premium product, certain kinds of requests
01:21:18
◼
►
seem inappropriate and lead to a bad user experience.
01:21:23
◼
►
And I would say, yeah, in terms of the Kindle Oasis,
01:21:25
◼
►
paying $300 for an e-reader and opening the cover,
01:21:28
◼
►
your leather cover of your super thin, fancy e-reader
01:21:31
◼
►
and seeing an ad that you have to swipe
01:21:33
◼
►
every time you open the cover,
01:21:35
◼
►
I think that's a user experience problem.
01:21:37
◼
►
It's not whatever you're charging to turn that off.
01:21:41
◼
►
It's like, don't do that.
01:21:43
◼
►
Just raise your price and turn it off
01:21:45
◼
►
because your product is not,
01:21:49
◼
►
that's not appropriate for that kind of product.
01:21:52
◼
►
And so, yeah, it's gonna be a challenge for Apple
01:21:54
◼
►
because that service's revenue
01:21:55
◼
►
is certainly tantalizing, right?
01:21:56
◼
►
So we'll see where it goes.
01:21:58
◼
►
But what I didn't hear Tim Cook say was,
01:22:02
◼
►
"Oh, yeah, Steve, this is a new direction for us.
01:22:05
◼
►
"We're very excited to increase revenue per user.
01:22:08
◼
►
"We've got lots of great ideas of ways
01:22:10
◼
►
"to get more money out of our existing user base.
01:22:12
◼
►
"We really think that this is one of those assets
01:22:14
◼
►
that we can monetize in order to really reignite the growth engine.
01:22:19
◼
►
And so you can look forward in the forthcoming quarters to more announcements from Apple
01:22:23
◼
►
about ways that we'll be able to charge our existing users for more of what they need
01:22:27
◼
►
out of their iPhones.
01:22:28
◼
►
But, on the flip side, he did say this is our first solution service.
01:22:33
◼
►
You can look at that on whatever way you want to look at it.
01:22:35
◼
►
Well, I think Apple offering more subscription services if they have value and if they don't
01:22:39
◼
►
get in the way of the existing product is perfectly fine.
01:22:42
◼
►
I think that's great.
01:22:43
◼
►
But that's the trick. Yeah.
01:22:47
◼
►
This is a brave new world. It is different.
01:22:50
◼
►
It is different. And you know, you see Apple trying to figure out what's their
01:22:54
◼
►
business now. Are we gonna do
01:22:56
◼
►
cars? Are we gonna increase services revenue? How do we do all of
01:22:59
◼
►
this? And that's,
01:22:59
◼
►
again, that's why I thought that the numbers last week
01:23:03
◼
►
were interesting, not just the questions of what grew and what didn't
01:23:08
◼
►
but, and we didn't even talk about the iPad, which,
01:23:11
◼
►
You know my my my joke about the iPad figures is I feel like they haven't hit rock bottom
01:23:16
◼
►
But the iPad can now see the bottom so it'll you know it's still gonna hit bottom next quarter probably maybe but
01:23:24
◼
►
Tim Cook was optimistic
01:23:27
◼
►
Strangely optimistic as he always is about the iPad, but in this case what he said was
01:23:31
◼
►
Next quarter will be the best year-over-year compare which is you know?
01:23:35
◼
►
jargon, but of iPad
01:23:41
◼
►
But that they would still be down on units
01:23:43
◼
►
So I don't know what that means Myke other than to say that I guess what they are saying is that iPad year-over-year
01:23:50
◼
►
Revenue decline will be in single digits, which will be the best in a couple of years and that
01:23:57
◼
►
They'll they'll be down on
01:24:00
◼
►
They'll be down on units, but not way down
01:24:03
◼
►
So it's like the bleeding is stopping my imagination in that is that the iPad pros they make more money from
01:24:09
◼
►
maybe if they also count the pencils and the keyboards in there too.
01:24:14
◼
►
They might be making more money per unit on the iPad Pro, but it doesn't fill me
01:24:21
◼
►
with a lot of optimism to think that we still haven't hit the bottom of this
01:24:26
◼
►
product line. How many ways does he qualify that, right? It's like our best
01:24:31
◼
►
year-over-year comparison in terms of revenue, and then meanwhile
01:24:36
◼
►
elsewhere the guidance is yeah units will be down. So the fact that he's going that far and stretching
01:24:42
◼
►
it that far tells me that the use is still not good you know otherwise you just say like I'm
01:24:48
◼
►
bullish and it's going to be a great quarter like but he didn't say that. Yeah I mean I think I this
01:24:53
◼
►
was his his corporate way of saying we you know we think we are seeing the bottom without saying it
01:25:02
◼
►
it that way which is like this is good news but just as we said earlier that defining
01:25:09
◼
►
the worst quarter based on growth maybe is not entirely accurate I think saying that
01:25:15
◼
►
the iPad is turning it around when what they're talking about is the reducing the rate of
01:25:22
◼
►
decline also is not really turning it around right it's slowing the descent. Turning it
01:25:28
◼
►
around is increase, not slowing the bad stuff. Yeah, so like I said, I think it's still waiting
01:25:34
◼
►
to hit bottom, but you might be able to see the bottom. Like, "Oh, what's that down there?"
01:25:38
◼
►
Thump, right? They haven't thumped yet. They're just seeing like maybe there's some, a floor
01:25:44
◼
►
down there that they're gonna hit. But, you know, Cook is really good at this, because
01:25:50
◼
►
just as an aside, in a segment of the column out about mainland China, he did this incredible
01:25:56
◼
►
bit of ledger domain where he's like, "Well, we're down 26%, but in mainland China, you
01:26:01
◼
►
know, as opposed to the greater China region that we reported, we were only down 11%, and
01:26:05
◼
►
if you take a constant currency base, it's actually only 7%, and if you really look at
01:26:09
◼
►
sell-through, which is totally the most important thing that we do, it's really only down 5%,
01:26:13
◼
►
and like in three sentences, he went from, he took 26 to 11 to 7 to 5, and then I don't
01:26:18
◼
►
know where he goes from there, like, "But yeah, in terms of shiny happiness, we were
01:26:21
◼
►
up so we're up." It's like, "Kill me now, just do it." He's very good at that but I
01:26:27
◼
►
mean come on he's like that's how I mean that's why he's the CEO I suppose but
01:26:31
◼
►
you take a 26% decline and you turn it into a 5% decline in a couple of steps
01:26:35
◼
►
by redefining what what you're looking at. There was some of that this quarter
01:26:40
◼
►
too. So yeah interesting times for Apple trying to decide what it wants to be and
01:26:44
◼
►
where it goes from here while again still presiding over a machine that is
01:26:49
◼
►
generating incredibly high revenue and profits, but not really knowing where they're going
01:26:57
◼
►
next in terms of growth. It's going to be interesting to watch. And the usual suspects
01:27:02
◼
►
will still freak out and say that Apple is falling apart and it's terrible and doom,
01:27:07
◼
►
doom, doom. But it's also wrong to say everything's fine because, you know, they are at a crossroads
01:27:13
◼
►
here. So it'll be interesting to see what happens next.
01:27:15
◼
►
Let's finish up with some Ask Upgrade. Jason, who sponsors Ask Upgrade this week?
01:27:20
◼
►
Ask Upgrade this week brought to you by the good friends that we have over at MailRoute.
01:27:25
◼
►
As always, eternally, just as people in Wall Street look for growth,
01:27:30
◼
►
businesses ask IT departments to do more with less. That's just a fact of life,
01:27:35
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including important stuff like stopping spam attacks and viruses.
01:27:39
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A lot of the trusted hardware and software options have been end of life
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of life by companies that are not focused on stopping spam and virus attacks and protecting
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your email. Postini went away, MXLogic went away, but MailRoute is here and has always
01:27:54
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been here. They have been focusing, the people behind MailRoute have been focusing exclusively
01:27:57
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on protecting your email since 1997, that was a very, very long time ago, they've been
01:28:01
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doing this a long time, and so that's why you can trust them to protect your email and
01:28:06
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►
hardware against spam viruses and other attacks. You don't have to install any hardware or
01:28:10
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►
software because if you own your own domain you just change your MX records
01:28:14
◼
►
on your domain to filter your mail through mail route. So mail route servers
01:28:17
◼
►
live in the cloud they take your inbound mail including who knows what. The
01:28:22
◼
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way the mail system works it could be from anywhere, it could be bad actors trying
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That was the bell is in the bag, I guess. Everything you'd want from the people handling
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- Rajiv would like to know,
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what is the appeal of the addition
01:29:43
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of a cell radio in the Apple Watch?
01:29:45
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Wouldn't it be more cumbersome without an iPhone?
01:29:49
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- Yeah, we need to do a whole episode
01:29:52
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about the Apple Watch today
01:29:54
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and we've been putting it off,
01:29:55
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so maybe next week we'll see.
01:29:57
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But there are, you know,
01:29:59
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I think it's inevitable
01:30:00
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And I think the idea there is that the Apple Watch can count on getting data at all times,
01:30:04
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even if it can't connect to your iPhone. So I think that's... if what you're thinking
01:30:08
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is, "Why would I talk on the iPhone?" or "Talk on the watch and not the iPhone" or something
01:30:13
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►
like that, I think that's a fair point. But I think the idea here is, if you have... let's
01:30:20
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say you want to go for a run with your Apple Watch and you don't want to bring your iPhone
01:30:23
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with you and you can listen to music streamed from the Apple Watch and it'll monitor your
01:30:27
◼
►
heartbeat and it'll do all of those things which are great but what if you
01:30:32
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get a call or what if you get a text right now that stuff is turned off
01:30:37
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►
basically because unless you're near a known Wi-Fi network the Apple watch
01:30:40
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can't help you if it's not near its paired iPhone so that's the
01:30:45
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advantage is data the watch can get to the internet for data all the time and
01:30:49
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that opens up a lot for apps and it allows you to be independent from the
01:30:53
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►
iPhone it allows you to... it'll work better if it loses connection with the
01:31:01
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►
iPhone which sometimes happens even if the iPhone is around it's got a fallback
01:31:04
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►
in addition to Wi-Fi so I think there are lots of there are lots of reasons
01:31:09
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why it makes it a little more of an independent device so I think yeah in
01:31:12
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the long run the Apple watch absolutely needs access to a data network because
01:31:17
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it makes it a more independent product which makes it more useful.
01:31:21
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Paul would like to know where I store my watch bands. I just have them in my bedside table,
01:31:29
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►
in a drawer in my bedside table. I don't have anything fancy. I don't have like a watch
01:31:33
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►
band box or anything. I just have a drawer and the top drawer, they just go in there
01:31:37
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and they stay nice and snug. I recently acquired, well I actually ordered this when it came
01:31:41
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►
out, one of the royal blue nylon bands. So I have like the gold one which I just picked
01:31:48
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►
up in a store because I wanted to grab it but I got the royal blue one and I really
01:31:52
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like these nylon bands a lot a lot a lot they're very very comfortable and they're much more
01:31:56
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comfortable for me than the sport bands so two thumbs up for those if you've been thinking
01:32:01
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►
about them I now have my second one I think I'm up to like seven or something like that
01:32:05
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►
now watch bands you might have a well we'll talk more about watch bands maybe next time
01:32:09
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►
too I have a little basket on top of my armoire next to my bedside that is where the Apple
01:32:17
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►
watch bands sit. Much fancier. I have a basket and an armoire. I just have a bedside table.
01:32:23
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There's lots of junk in the basket. And Apple Watch bands. It's not an elegant solution
01:32:28
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►
but it's a place for me to dump the Apple Watch bands when I'm not using them. Brian
01:32:32
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►
wants to know, Jason I have no idea for this so I want to see if you can help me out. Alright.
01:32:36
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I want to keep the battery healthy on my Mac but keep it plugged in most of the time. Is
01:32:41
◼
►
there a way to run off the battery while still safely having it plugged in? So I'm assuming
01:32:46
◼
►
that Brian has a MacBook or a MacBook Pro that he wants to just keep plugged in, maybe
01:32:52
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►
he has it connected to a monitor or something. And the kind of the understood knowledge,
01:32:57
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►
I think, over time is that's bad for the battery. So how can Brian kind of keep his battery
01:33:03
◼
►
Well, one of the secrets of your Mac battery is that the Mac battery, my understanding
01:33:08
◼
►
is, actually does cycle a little bit when it's plugged in. Like, they will, the system
01:33:14
◼
►
it will when it gets full it will actually stop charging I believe and let
01:33:20
◼
►
it run down a little bit I know this is true for iPhones I think this is true
01:33:24
◼
►
for max too and then it will run down a little bit and then it will charge back
01:33:28
◼
►
up and the idea there is to not have it just be maxed out all the time but I
01:33:33
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►
don't think there's any way for regular users to do that if they're right in if
01:33:37
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►
there is a way so you know my recommendation is I have to say it just
01:33:40
◼
►
kind of simple is run it unplugged a little bit just I know and like every so
01:33:46
◼
►
often like not even not even every week necessarily but every so often run it
01:33:51
◼
►
unplugged and let it run down and then you know I'm not a battery expert I'm
01:33:56
◼
►
sure battery experts will write in I think Apple is aware of this is an issue
01:34:00
◼
►
and tries to do some things behind the scenes but I don't think there's
01:34:04
◼
►
something you can do to sort of like check a box and have the battery be used
01:34:09
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►
while you still get your power cord engaged. I think you have to pull the plug.
01:34:15
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►
And finally today, Gary asked that, on six colors, tea has been covered in the past and
01:34:20
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►
in the magazine stuff. I know that you and Dan have gone through tea. So Gary wants to
01:34:24
◼
►
know what my coffee ritual is, because I am a coffee drinker. So I tend now to have two
01:34:29
◼
►
coffees a day. I've gone up from one coffee a day. My morning coffee, all of my coffee
01:34:34
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Coffee is made of an Aeropress and there's a company in the UK called PACT Coffee and
01:34:42
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►
they deliver coffee to me. So it's like if you've ever heard of Tonks, it's like that
01:34:48
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but in the UK. And I like their coffee a lot, I get a bag from them every week and it's
01:34:52
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ground for me to be used in the Aeropress. And in the morning I kind of wake up, I get
01:34:59
◼
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started with some work and then after checking Twitter and email and Slack and stuff like
01:35:04
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that I go downstairs make my coffee in the morning and it makes me very happy. And then
01:35:10
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you know I tend to have coffee with milk so I'll make coffee in the Aeropress and I'll
01:35:15
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add some milk and then I will drink it from a big mug and then later on in the day usually
01:35:22
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after lunch time I will make myself an iced coffee so I'll just basically the whole scenario
01:35:27
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►
again with the Aeropress and some milk and I throw some ice in and some simple syrup
01:35:32
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and that's my second coffee of the day. That's how I run.
01:35:35
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Alright, that's good to know. I don't understand anything about it, because I don't drink coffee.
01:35:41
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That's okay though. So I just make tea, and then I drink it.
01:35:46
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And I like the coffee. You know.
01:35:49
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You're a terrible Englishman. Yeah, and you're a terrible American, so…
01:35:54
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Yeah, fair enough. High five! Woo hoo!
01:35:57
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Okay, thank you so much for listening to this week's episode of Upgrade. If you'd like
01:36:02
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►
to find our show notes head on over to relay.fm/upgrade/87.
01:36:08
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Thanks again to our sponsors, the great people over at Squarespace, MailRoute and Pingdom.
01:36:13
◼
►
If you'd like to find Jason online head on over to SixColors.com and he is @JSNELL on
01:36:21
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I am @IMYKE.
01:36:25
◼
►
Thanks again to Scott McNulty for joining us at the top of the show and most of all
01:36:28
◼
►
thank you for listening.
01:36:29
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Until next time, say goodbye Jason.
01:36:32
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[MUSIC PLAYING]