The Talk Show

00:00:00 ◼   ► Matthew pans arena welcome welcome back [TS]

00:00:01 ◼   ► to the show [TS]

00:00:03 ◼   ► thank you sir thanks for having me Wow [TS]

00:00:05 ◼   ► to tough week to have a show there's no [TS]

00:00:07 ◼   ► news it [TS]

00:00:11 ◼   ► yeah we was all just is headed there go [TS]

00:00:14 ◼   ► on vacation man yeah it's been like that [TS]

00:00:19 ◼   ► every day so we are recording on tuesday [TS]

00:00:23 ◼   ► the 31st so we are literally talking [TS]

00:00:25 ◼   ► like two hours after Apple posted [TS]

00:00:28 ◼   ► quarterly results so we can actually do [TS]

00:00:30 ◼   ► like a new show it's like we're like on [TS]

00:00:33 ◼   ► on CNN or something talking about [TS]

00:00:35 ◼   ► breaking news it right at this week's [TS]

00:00:38 ◼   ► news today or whatever yesterday [TS]

00:00:40 ◼   ► yesterday summarizing the quarterly [TS]

00:00:45 ◼   ► results [TS]

00:00:46 ◼   ► I think it's time I my summary is more [TS]

00:00:50 ◼   ► or less iphone went back to growth which [TS]

00:00:54 ◼   ► was contrary to some predictions that [TS]

00:00:57 ◼   ► that that last year's dip was was the [TS]

00:01:00 ◼   ► sign that that we reached pic pki phone [TS]

00:01:03 ◼   ► people say he's got more iphones last [TS]

00:01:05 ◼   ► quarter than they've ever sold in any [TS]

00:01:07 ◼   ► quarter including the two year ago1 when [TS]

00:01:09 ◼   ► their sales went bananas because of the [TS]

00:01:11 ◼   ► iphone 6 and 6 plus my ipad sales are [TS]

00:01:17 ◼   ► down a little bit year-over-year but [TS]

00:01:20 ◼   ► they're reasonably saying well last year [TS]

00:01:22 ◼   ► they came out with the brand new iPad [TS]

00:01:23 ◼   ► pro this year there were no new ipads in [TS]

00:01:25 ◼   ► holiday quarter and they're still [TS]

00:01:27 ◼   ► respectable 13 million mac sales were up [TS]

00:01:30 ◼   ► a little [TS]

00:01:31 ◼   ► rebounding I think showing such good [TS]

00:01:34 ◼   ► signs of probably the the new macbook [TS]

00:01:37 ◼   ► pro sales being pretty good who Apple [TS]

00:01:41 ◼   ► watch they don't break those out but on [TS]

00:01:43 ◼   ► the conference call it sounded to me [TS]

00:01:45 ◼   ► reading the summary that they said it [TS]

00:01:47 ◼   ► was a record-breaking quarter and that [TS]

00:01:50 ◼   ► makes sense because it's a holiday [TS]

00:01:51 ◼   ► quarter and I think that it's if if they [TS]

00:01:54 ◼   ► did break those watch sales out i think [TS]

00:01:56 ◼   ► the holiday quarter is going to be a [TS]

00:01:58 ◼   ► huge spike just like in the old days the [TS]

00:02:00 ◼   ► way ipod tour and then last but not [TS]

00:02:03 ◼   ► least services apples favorite word of [TS]

00:02:06 ◼   ► the last two years is up at a fair [TS]

00:02:09 ◼   ► summary [TS]

00:02:11 ◼   ► yeah I think so I mean I think there's [TS]

00:02:13 ◼   ► some question [TS]

00:02:13 ◼   ► about that other category in like the [TS]

00:02:16 ◼   ► overall other category there was there [TS]

00:02:18 ◼   ► was a dipping growth but right that was [TS]

00:02:21 ◼   ► like the general consensus is the watch [TS]

00:02:23 ◼   ► did find in the quarter right i mean [TS]

00:02:26 ◼   ► it's pretty much the only watch doing [TS]

00:02:28 ◼   ► anywhere near decent right now so it's [TS]

00:02:30 ◼   ► not too hard to to say that [TS]

00:02:33 ◼   ► yeah it seems to me like I mean there's [TS]

00:02:36 ◼   ► a lot of I mean this is a little off [TS]

00:02:38 ◼   ► topic of apples quarter but it that on [TS]

00:02:40 ◼   ► point with the watch that i'm starting [TS]

00:02:43 ◼   ► to see some serious repeated pessimism [TS]

00:02:46 ◼   ► about Fitbit that fit i think might be [TS]

00:02:50 ◼   ► in today as a company might be in [TS]

00:02:52 ◼   ► trouble [TS]

00:02:53 ◼   ► yes yeah I think that's pretty clear [TS]

00:02:55 ◼   ► from what we've been hearing so far I [TS]

00:02:58 ◼   ► think that there's a significant change [TS]

00:03:00 ◼   ► in direction how you refer to here in [TS]

00:03:02 ◼   ► Silicon Valley as a pivot we're coming [TS]

00:03:06 ◼   ► for them by gathers they they are [TS]

00:03:08 ◼   ► definitely and I don't think anybody [TS]

00:03:10 ◼   ► really thinks that it's completely about [TS]

00:03:13 ◼   ► the products and i think there's plenty [TS]

00:03:14 ◼   ► of quality issues they've had over the [TS]

00:03:16 ◼   ► years and they've never been you know [TS]

00:03:19 ◼   ► super highly rated as far as durability [TS]

00:03:22 ◼   ► and longevity and quality and they had a [TS]

00:03:24 ◼   ► couple of like actual real problems with [TS]

00:03:26 ◼   ► quality but i think it's just a tough [TS]

00:03:28 ◼   ► category and they just didn't quite [TS]

00:03:30 ◼   ► figure it out you know [TS]

00:03:32 ◼   ► yeah it's just it it's okay [TS]

00:03:35 ◼   ► they recruited you know they stand up [TS]

00:03:37 ◼   ► they stand alone as the only independent [TS]

00:03:40 ◼   ► company that's making fitness trackers [TS]

00:03:43 ◼   ► that that is worth even talking about [TS]

00:03:45 ◼   ► but it doesn't seem like they got it [TS]

00:03:47 ◼   ► over the hump and it's i think in [TS]

00:03:49 ◼   ► particular Apple watch is is doing them [TS]

00:03:52 ◼   ► in that [TS]

00:03:53 ◼   ► yeah I mean there's a heavy market in [TS]

00:03:55 ◼   ► this casual market of people who want to [TS]

00:03:57 ◼   ► spend like let's say somewhere around [TS]

00:03:59 ◼   ► two three hundred dollars to track their [TS]

00:04:01 ◼   ► fitness it seems to me like Apple watch [TS]

00:04:03 ◼   ► is starting to get real attraction [TS]

00:04:07 ◼   ► outside the early adopters you know [TS]

00:04:09 ◼   ► market and I i think it's that fits [TS]

00:04:11 ◼   ► expense [TS]

00:04:13 ◼   ► yeah aiden is sort of the you know you [TS]

00:04:17 ◼   ► bought a phone they used to be I mean [TS]

00:04:19 ◼   ► maybe what 45 years ago you bought a [TS]

00:04:21 ◼   ► phone make phone calls and maybe write [TS]

00:04:22 ◼   ► text messages and you got all these apps [TS]

00:04:24 ◼   ► with it you know you also the stuff and [TS]

00:04:26 ◼   ► then you come to love [TS]

00:04:27 ◼   ► and pretty soon you're not making phone [TS]

00:04:29 ◼   ► calls at all your texting everybody with [TS]

00:04:30 ◼   ► you know messenger or whatever but I [TS]

00:04:33 ◼   ► think it's the same kind of concept you [TS]

00:04:35 ◼   ► know so people are saying hey you know [TS]

00:04:36 ◼   ► now the price is getting to where I [TS]

00:04:39 ◼   ► don't mind spending tuner box getting [TS]

00:04:41 ◼   ► this thing and getting all these other [TS]

00:04:42 ◼   ► things with it but it's a great you know [TS]

00:04:44 ◼   ► so solid fitness tracker that you can do [TS]

00:04:46 ◼   ► all these things so yeah have category [TS]

00:04:49 ◼   ► and yes you mentioned a fit you know was [TS]

00:04:52 ◼   ► traveling alone on the backs of that one [TS]

00:04:54 ◼   ► pnl right right so if you break out the [TS]

00:04:56 ◼   ► Apple watches a business especially that [TS]

00:04:58 ◼   ► first launched quarter when it launched [TS]

00:05:00 ◼   ► I mean that stuff takes ramp time you [TS]

00:05:03 ◼   ► know and when it's you're relying on [TS]

00:05:05 ◼   ► yourself in your own revenues and [TS]

00:05:06 ◼   ► whatever you know venture capital [TS]

00:05:08 ◼   ► obviously you have you don't have [TS]

00:05:10 ◼   ► infinite runway [TS]

00:05:12 ◼   ► yeah you know yeah and i think i will [TS]

00:05:15 ◼   ► come back to this it on another topic in [TS]

00:05:18 ◼   ► a bit but I i I'm as guilty of it [TS]

00:05:22 ◼   ► well maybe not has anybody but I know [TS]

00:05:24 ◼   ► I'm guilty of it and I think others who [TS]

00:05:27 ◼   ► write about technology are seriously [TS]

00:05:30 ◼   ► guilty of being to show too focused on [TS]

00:05:34 ◼   ► the short term and not realizing how [TS]

00:05:36 ◼   ► long some things need to really get [TS]

00:05:41 ◼   ► mainstream acceptance you know like just [TS]

00:05:43 ◼   ► smartphones period you know it's like [TS]

00:05:45 ◼   ► remember that the what was the initial [TS]

00:05:47 ◼   ► goal it was like 10 million iphones in [TS]

00:05:50 ◼   ► the first year of sales something like [TS]

00:05:52 ◼   ► that and and there would you know they [TS]

00:05:57 ◼   ► made it but it's like if you think about [TS]

00:05:59 ◼   ► that now they sold 78 million phones in [TS]

00:06:02 ◼   ► three months [TS]

00:06:03 ◼   ► this last one order and whereas that you [TS]

00:06:05 ◼   ► know back when it first came out 10 [TS]

00:06:07 ◼   ► years ago it was you know we're hoping [TS]

00:06:09 ◼   ► for 10 million in 12 months it it takes [TS]

00:06:13 ◼   ► a long time you know and a part of it is [TS]

00:06:15 ◼   ► just the simple common sense and I mean [TS]

00:06:17 ◼   ► other people have written about it but [TS]

00:06:18 ◼   ► just there are people like me who will [TS]

00:06:21 ◼   ► go and buy an iphone on the day it comes [TS]

00:06:23 ◼   ► out but most people even if they were [TS]

00:06:26 ◼   ► curious and i still remember it with the [TS]

00:06:27 ◼   ► original iphone where like people on the [TS]

00:06:29 ◼   ► street would see me using it and they [TS]

00:06:31 ◼   ► would say right without knowing who I am [TS]

00:06:32 ◼   ► they would just say that iphone right [TS]

00:06:35 ◼   ► and they were obviously aware of it [TS]

00:06:38 ◼   ► they probably have one now but the it [TS]

00:06:40 ◼   ► took years for them to be comfortable to [TS]

00:06:42 ◼   ► say okay i'll get one because I've you [TS]

00:06:44 ◼   ► know it there's like a comfort factor of [TS]

00:06:46 ◼   ► Noah and I think the watches on that [TS]

00:06:48 ◼   ► trajectory [TS]

00:06:49 ◼   ► mmm yeah i think so I mean I think I've [TS]

00:06:53 ◼   ► definitely had it right now it's it's [TS]

00:06:57 ◼   ► exited that phase for me it's not like [TS]

00:06:59 ◼   ► people see it on my wrist and go you [TS]

00:07:01 ◼   ► know like oh my god is an Apple watch [TS]

00:07:02 ◼   ► what the dude say is oh you know I'm [TS]

00:07:06 ◼   ► thinking like it are used to using it [TS]

00:07:07 ◼   ► tonight which is an interesting way to [TS]

00:07:09 ◼   ► phrase it right and i think that that's [TS]

00:07:11 ◼   ► partially from the narrative you know I [TS]

00:07:15 ◼   ► guess you could call it media narrative [TS]

00:07:16 ◼   ► or whatever [TS]

00:07:17 ◼   ► hmm that the watch isn't all that useful [TS]

00:07:21 ◼   ► long-term that there's initial the [TS]

00:07:23 ◼   ► initial wave of like oh hey a book [TS]

00:07:25 ◼   ► around and then eventually get tired of [TS]

00:07:27 ◼   ► it and put it away and I definitely know [TS]

00:07:28 ◼   ► that there are plenty of people that [TS]

00:07:29 ◼   ► don't wear those anymore whatever right [TS]

00:07:31 ◼   ► there's gonna be that with any gadget [TS]

00:07:33 ◼   ► doesn't fit either what the company [TS]

00:07:36 ◼   ► tried to sell you it was or what you [TS]

00:07:39 ◼   ► know whatever their success or failure [TS]

00:07:41 ◼   ► and communicating what it was was or [TS]

00:07:43 ◼   ► your own vision of what how it would fit [TS]

00:07:45 ◼   ► into your life didn't quite match up [TS]

00:07:46 ◼   ► with how it actually did right and so I [TS]

00:07:49 ◼   ► think that we've exited that phase and [TS]

00:07:52 ◼   ► now we're in a phase where the people [TS]

00:07:53 ◼   ► that are still wearing it are advocating [TS]

00:07:56 ◼   ► in ways that are more specific [TS]

00:07:58 ◼   ► they're like yes i love it because x y [TS]

00:08:00 ◼   ► know right it's not like oh yes i love [TS]

00:08:02 ◼   ► it and then like what do you like about [TS]

00:08:04 ◼   ► it wow look at all these things and this [TS]

00:08:05 ◼   ► thing and that they don't think we're [TS]

00:08:07 ◼   ► out of that you were into these are the [TS]

00:08:09 ◼   ► practical benefits it offers me [TS]

00:08:11 ◼   ► oh yeah I have all my calendar stuff on [TS]

00:08:13 ◼   ► there like that's enough for most people [TS]

00:08:14 ◼   ► or I have you know it's a great fitness [TS]

00:08:16 ◼   ► tracker you know I go to the gym every [TS]

00:08:19 ◼   ► day all right I cycle or swim or you [TS]

00:08:21 ◼   ► know etc etc people are figuring out the [TS]

00:08:23 ◼   ► things that work for them and so it's [TS]

00:08:26 ◼   ► it's more about the precise benefits on [TS]

00:08:29 ◼   ► an individual basis versus the entire [TS]

00:08:32 ◼   ► you know bolus of benefits that could [TS]

00:08:35 ◼   ► theoretically apply to you you know and [TS]

00:08:38 ◼   ► i think that that that could be where [TS]

00:08:40 ◼   ► the sustained growth is coming from [TS]

00:08:42 ◼   ► versus the initial wave of who knows [TS]

00:08:44 ◼   ► yeah it's also true that [TS]

00:08:46 ◼   ► I mean we knew this this isn't something [TS]

00:08:48 ◼   ► we needed that to hear from tim cook on [TS]

00:08:50 ◼   ► the conference call today with you could [TS]

00:08:52 ◼   ► tell just by going to the apple store [TS]

00:08:53 ◼   ► and trying to buy an Apple watch that [TS]

00:08:55 ◼   ► they were backordered foremost last [TS]

00:08:57 ◼   ► square or still are i think that you [TS]

00:09:01 ◼   ► know they could make them fast enough [TS]

00:09:02 ◼   ► which is a good sign I guess [TS]

00:09:05 ◼   ► yeah i mean i think initially you know [TS]

00:09:09 ◼   ► you never know whether they just didn't [TS]

00:09:10 ◼   ► know how many to make or what or whether [TS]

00:09:13 ◼   ► they didn't know what the right mix was [TS]

00:09:15 ◼   ► right there [TS]

00:09:16 ◼   ► additionally there was a lot more people [TS]

00:09:17 ◼   ► buying steel then maybe they thought and [TS]

00:09:20 ◼   ► so there was no sin credibly hard to get [TS]

00:09:22 ◼   ► steel ones for a long time but now I [TS]

00:09:24 ◼   ► think they're getting the mix figured [TS]

00:09:25 ◼   ► out so if they have that makes figured [TS]

00:09:27 ◼   ► out that eliminates that and now you are [TS]

00:09:30 ◼   ► looking at [TS]

00:09:30 ◼   ► yeah they're just having a hard time [TS]

00:09:32 ◼   ► keeping up with in which theoretically [TS]

00:09:33 ◼   ► should be a good thing [TS]

00:09:35 ◼   ► on the flip side they're keeping up with [TS]

00:09:37 ◼   ► it so there are selling as many as they [TS]

00:09:39 ◼   ► could [TS]

00:09:39 ◼   ► which is you know not great for your [TS]

00:09:41 ◼   ► shareholders or whatever you want to [TS]

00:09:42 ◼   ► call it now with iphone sales rebounding [TS]

00:09:47 ◼   ► and actually growing and breaking a [TS]

00:09:49 ◼   ► record it did even with that even saying [TS]

00:09:53 ◼   ► it to record it's clear it's it's a few [TS]

00:09:57 ◼   ► fractions of a percentage you know I [TS]

00:09:59 ◼   ► think I think it's 78 million they sold [TS]

00:10:00 ◼   ► in 12 years ago that was the previous [TS]

00:10:02 ◼   ► record was like 74 million phones or [TS]

00:10:05 ◼   ► something like that so the e the years [TS]

00:10:08 ◼   ► of raw fifty percent growth [TS]

00:10:10 ◼   ► year-over-year are over and i think that [TS]

00:10:13 ◼   ► you know common sense would tell you why [TS]

00:10:15 ◼   ► it's because the smartphone is sort of a [TS]

00:10:17 ◼   ► at a saturated product I mean not that [TS]

00:10:20 ◼   ► there's no room for growth and in [TS]

00:10:21 ◼   ► certain markets but for the most part [TS]

00:10:23 ◼   ► over the last 10 years we've reached the [TS]

00:10:25 ◼   ► point where almost everybody who might [TS]

00:10:29 ◼   ► get a smartphone has a smartphone right [TS]

00:10:33 ◼   ► well i mean i think it looks like there [TS]

00:10:37 ◼   ► was a decline in China but every other [TS]

00:10:40 ◼   ► market grew yeah which is that's pretty [TS]

00:10:44 ◼   ► solid [TS]

00:10:45 ◼   ► I mean China is its own Beast you know [TS]

00:10:47 ◼   ► it's incredibly difficult to do business [TS]

00:10:48 ◼   ► there as Apple has found over the years [TS]

00:10:50 ◼   ► you know and we only know the public [TS]

00:10:52 ◼   ► stuff we don't know that many challenges [TS]

00:10:55 ◼   ► they come up against with the government [TS]

00:10:57 ◼   ► and everything else that don't quite [TS]

00:10:59 ◼   ► make it to the page [TS]

00:11:00 ◼   ► but outside of that every other region [TS]

00:11:03 ◼   ► was growing and I think that people [TS]

00:11:05 ◼   ► think of saturation and replacement [TS]

00:11:08 ◼   ► cycles and things like that the people [TS]

00:11:11 ◼   ► that do you think of those things are [TS]

00:11:13 ◼   ► not eat they're not communicating it [TS]

00:11:16 ◼   ► well or I should say that they [TS]

00:11:17 ◼   ► communicated fine in there in their vain [TS]

00:11:19 ◼   ► but it's hard to characterize those [TS]

00:11:23 ◼   ► things and turn them into very human you [TS]

00:11:26 ◼   ► know sentences or or ideas or concepts [TS]

00:11:29 ◼   ► for people that can help them understand [TS]

00:11:32 ◼   ► where the growth is coming from and [TS]

00:11:33 ◼   ► whether sustained growth will come from [TS]

00:11:35 ◼   ► because it's like you could say hey you [TS]

00:11:37 ◼   ► know ever every ex years people are [TS]

00:11:39 ◼   ► going to replace their iphone and that [TS]

00:11:41 ◼   ► changes based on you know major design [TS]

00:11:43 ◼   ► changes right sort of major design [TS]

00:11:45 ◼   ► change here the replacement cycle may be [TS]

00:11:47 ◼   ► lowered by thirty percent and then you [TS]

00:11:49 ◼   ► can also go to like you know there's new [TS]

00:11:52 ◼   ► people being born so people are turning [TS]

00:11:54 ◼   ► what 12 13 or 14 now that were you know [TS]

00:11:59 ◼   ► just born when the iphone came out and [TS]

00:12:02 ◼   ► they're getting phone so we're getting [TS]

00:12:03 ◼   ► into like the first wave of like I don't [TS]

00:12:07 ◼   ► new iphone consumers first-generation my [TS]

00:12:10 ◼   ► phone consumers so there are lots of [TS]

00:12:12 ◼   ► factors it's a very like liquid thing [TS]

00:12:14 ◼   ► and everybody treats it like oh yeah [TS]

00:12:16 ◼   ► everybody has a phone one at you know [TS]

00:12:17 ◼   ► has won once once that's it but i think [TS]

00:12:20 ◼   ► apple is looking at growth in terms of [TS]

00:12:22 ◼   ► all of these variables and and the [TS]

00:12:24 ◼   ► projections show you know revenue [TS]

00:12:26 ◼   ► projection guidance wise you know it's [TS]

00:12:28 ◼   ► like 51 I guess 253 billion something [TS]

00:12:31 ◼   ► like that you know that they're [TS]

00:12:32 ◼   ► projecting which is not crazy high but [TS]

00:12:36 ◼   ► not like by any means and so I think [TS]

00:12:37 ◼   ► that you know I think that they feel [TS]

00:12:39 ◼   ► that they've got the growth out there [TS]

00:12:41 ◼   ► yeah in those pockets and I think that I [TS]

00:12:46 ◼   ► i think a lot of people thought you know [TS]

00:12:50 ◼   ► long story short last year for the [TS]

00:12:52 ◼   ► calendar year [TS]

00:12:53 ◼   ► iphone sales were down year-over-year [TS]

00:12:55 ◼   ► the success seemingly didn't sell as or [TS]

00:12:59 ◼   ► didn't sell as well as the six and i say [TS]

00:13:03 ◼   ► that my only hesitation in saying that [TS]

00:13:05 ◼   ► is is my presumption that most iphone [TS]

00:13:07 ◼   ► sold our the the new you know the [TS]

00:13:10 ◼   ► top-of-the-line new model and because [TS]

00:13:12 ◼   ► you don't know that they don't break [TS]

00:13:13 ◼   ► that [TS]

00:13:13 ◼   ► down for competitive reasons so in [TS]

00:13:15 ◼   ► theory right you know they could have [TS]

00:13:17 ◼   ► sold you know the iphone SE could [TS]

00:13:19 ◼   ► secretly be the best selling iphone but [TS]

00:13:21 ◼   ► anecdotally it certainly seems that that [TS]

00:13:24 ◼   ► doesn't seem the way most people by the [TS]

00:13:26 ◼   ► the best 1i think some people saw last [TS]

00:13:31 ◼   ► year's slight dip and thought you know [TS]

00:13:33 ◼   ► whether it was just to be dramatic and [TS]

00:13:36 ◼   ► you know make clickbait predictions but [TS]

00:13:40 ◼   ► you know so does the beginning of a [TS]

00:13:41 ◼   ► trend as opposed to the counter-argument [TS]

00:13:44 ◼   ► was just that it looks like a dip [TS]

00:13:46 ◼   ► because the six was such an outlier in [TS]

00:13:50 ◼   ► terms of their having been so much [TS]

00:13:52 ◼   ► pent-up demand for a quote unquote [TS]

00:13:54 ◼   ► bigger iphone who and I think this you [TS]

00:13:59 ◼   ► know the numbers they just announced for [TS]

00:14:01 ◼   ► the iphone 7 certainly back that up that [TS]

00:14:03 ◼   ► it's it was just an outlier [TS]

00:14:05 ◼   ► yeah i think so i think the plus I guess [TS]

00:14:09 ◼   ► Tim said on the call that the iphone 7 [TS]

00:14:12 ◼   ► plus was the highest portion in was a [TS]

00:14:14 ◼   ► higher portion of the mix that fast [TS]

00:14:16 ◼   ► yeah so that you know people are getting [TS]

00:14:19 ◼   ► acclimated to the larger phones that [TS]

00:14:21 ◼   ► increases their profit margins obviously [TS]

00:14:24 ◼   ► because the larger phones don't cost [TS]

00:14:25 ◼   ► them you know whatever percent learn her [TS]

00:14:28 ◼   ► whatever percent more to make it [TS]

00:14:30 ◼   ► increases their asp their average [TS]

00:14:32 ◼   ► selling price which is always a guidance [TS]

00:14:34 ◼   ► point that like analysts love to look at [TS]

00:14:36 ◼   ► because it means that for every every [TS]

00:14:39 ◼   ► amount of ounce of effort they put into [TS]

00:14:40 ◼   ► marketing or whatever the case may be [TS]

00:14:42 ◼   ► the return is higher [TS]

00:14:44 ◼   ► you know because you get the individual [TS]

00:14:46 ◼   ► unit that's a higher higher price and it [TS]

00:14:48 ◼   ► really cost you roughly the same amount [TS]

00:14:50 ◼   ► to sell that as it does anything else [TS]

00:14:52 ◼   ► you know it's like growing a tall tree [TS]

00:14:54 ◼   ► versus a short tree and they're both [TS]

00:14:56 ◼   ► trees right now so there's there's a [TS]

00:14:58 ◼   ► definite like positivity around that I [TS]

00:15:02 ◼   ► think I've been seeing that the bigger [TS]

00:15:04 ◼   ► phones are people love them they're [TS]

00:15:06 ◼   ► taking them up and they're they're [TS]

00:15:09 ◼   ► buying more than ever it is interesting [TS]

00:15:11 ◼   ► and you know i think apple is pretty [TS]

00:15:14 ◼   ► good at this stuff but it's always [TS]

00:15:16 ◼   ► interesting to see them admit that they [TS]

00:15:18 ◼   ► don't that their their estimates were [TS]

00:15:20 ◼   ► off and it's you know like you said that [TS]

00:15:23 ◼   ► they've admitted that the the mix of the [TS]

00:15:25 ◼   ► plus to the non plus 7 even know that [TS]

00:15:27 ◼   ► regular iphone 7 they said was the [TS]

00:15:29 ◼   ► best-selling model the plus sold better [TS]

00:15:32 ◼   ► this year than it has a guest in the [TS]

00:15:34 ◼   ► previous two years and write that is a [TS]

00:15:37 ◼   ► mix of them you know then versus the [TS]

00:15:39 ◼   ► other right [TS]

00:15:40 ◼   ► I makes me wonder in particular if the [TS]

00:15:44 ◼   ► the the camera in particular I it when [TS]

00:15:49 ◼   ► it's got me right i mean yeah sure part [TS]

00:15:51 ◼   ► of it is just getting used to bigger [TS]

00:15:52 ◼   ► size for the camera has to drive like X [TS]

00:15:54 ◼   ► percent of it like I'm not I'm not [TS]

00:15:56 ◼   ► pulling out a number let's say thirty [TS]

00:15:58 ◼   ► percent of the decisions to buy that [TS]

00:16:00 ◼   ► phone [TS]

00:16:00 ◼   ► we're always got the better camera so [TS]

00:16:02 ◼   ► let's get that one right [TS]

00:16:04 ◼   ► yeah and it seems like something that it [TS]

00:16:07 ◼   ► you can see it when you're in the store [TS]

00:16:10 ◼   ► like if you go into store and you're on [TS]

00:16:12 ◼   ► the fence over whether to get an iphone [TS]

00:16:13 ◼   ► 7 or 7 plus starting this year [TS]

00:16:17 ◼   ► you can tell just by looking without [TS]

00:16:18 ◼   ► even trying the camera it looks [TS]

00:16:20 ◼   ► different right it's it's double the [TS]

00:16:22 ◼   ► size it looks like it you know you can [TS]

00:16:23 ◼   ► see that it has like optic that the [TS]

00:16:26 ◼   ► previous years that's the plus models [TS]

00:16:28 ◼   ► had the optical image stabilization with [TS]

00:16:30 ◼   ► the starting with the six it was forced [TS]

00:16:32 ◼   ► stills only in a success added it for [TS]

00:16:36 ◼   ► video that's a great feature especially [TS]

00:16:40 ◼   ► for video I mean it's it i add it's [TS]

00:16:44 ◼   ► almost unbelievable how good some of my [TS]

00:16:46 ◼   ► little home family videos come out now [TS]

00:16:48 ◼   ► uh yeah because of image stabilization [TS]

00:16:50 ◼   ► on video but you can't see it in the [TS]

00:16:56 ◼   ► store so it's just a bullet point and [TS]

00:16:58 ◼   ► everybody is I think it it you build up [TS]

00:17:02 ◼   ► an immunity to bullet points because [TS]

00:17:04 ◼   ► every time you buy anything whether it's [TS]

00:17:06 ◼   ► a car or a toaster oven [TS]

00:17:09 ◼   ► you know it everything has bullet point [TS]

00:17:11 ◼   ► yeah here's the features that your [TS]

00:17:13 ◼   ► coffee maker has 12 cups you know it has [TS]

00:17:17 ◼   ► a large coffee right makes coffee [TS]

00:17:21 ◼   ► whereas you just look at the back of the [TS]

00:17:24 ◼   ► seven plus and you could get the idea [TS]

00:17:26 ◼   ► that the camera is better on this one [TS]

00:17:29 ◼   ► than the smaller one [TS]

00:17:30 ◼   ► it seems visceral because you just look [TS]

00:17:32 ◼   ► at it I can't help but think that that [TS]

00:17:33 ◼   ► actually successfully bumped sales of [TS]

00:17:36 ◼   ► this which in turn makes me think [TS]

00:17:39 ◼   ► yeah that if you know [TS]

00:17:41 ◼   ► it they may not be done we this might [TS]

00:17:44 ◼   ► just be the start of the bigger more [TS]

00:17:46 ◼   ► expensive iPhone having tangibly better [TS]

00:17:49 ◼   ► camera technology just because it it [TS]

00:17:52 ◼   ► seems like it's proof that it can drive [TS]

00:17:53 ◼   ► sales [TS]

00:17:54 ◼   ► I think you're you're right at there are [TS]

00:17:56 ◼   ► two things I think are really driving [TS]

00:17:59 ◼   ► this i have a hundred percent agree that [TS]

00:18:01 ◼   ► the difference could actually you know [TS]

00:18:03 ◼   ► the physical difference the way it looks [TS]

00:18:05 ◼   ► could definitely make a big difference [TS]

00:18:07 ◼   ► but you're right on there in it i know [TS]

00:18:09 ◼   ► there will people be people listen to [TS]

00:18:11 ◼   ► this and they'll laugh and be like oh [TS]

00:18:13 ◼   ► yeah I do you know people just look at [TS]

00:18:15 ◼   ► the back of it and going oh yeah this [TS]

00:18:16 ◼   ► one's bigger got a bigger camera thingy [TS]

00:18:18 ◼   ► on and i'm gonna buy that but he I think [TS]

00:18:21 ◼   ► people would be shocked especially [TS]

00:18:23 ◼   ► people that listen to this show which [TS]

00:18:25 ◼   ► you know this subset of people that are [TS]

00:18:27 ◼   ► in the world that listen to the show you [TS]

00:18:30 ◼   ► know how much higher technical savvy [TS]

00:18:32 ◼   ► than average probably do a lot more [TS]

00:18:33 ◼   ► research on products and average you [TS]

00:18:36 ◼   ► know if you were doing a demographic [TS]

00:18:37 ◼   ► survey i think that none of these things [TS]

00:18:38 ◼   ► would be surprising right but i think [TS]

00:18:41 ◼   ► people underestimate very heavily how [TS]

00:18:43 ◼   ► little research people do when they go [TS]

00:18:44 ◼   ► to buy stuff in a store like they'll go [TS]

00:18:46 ◼   ► to the store to get a phone and not [TS]

00:18:49 ◼   ► having looked at a single thing online [TS]

00:18:50 ◼   ► or asked anybody or whatever and they'll [TS]

00:18:54 ◼   ► just go and they'll just like I want the [TS]

00:18:55 ◼   ► best along X or Y personal axis you know [TS]

00:18:59 ◼   ► best camera or most storage or whatever [TS]

00:19:03 ◼   ► honestly whatever most recent problem [TS]

00:19:04 ◼   ► they had is probably how they pick and [TS]

00:19:07 ◼   ► I've seen this myself I used to work in [TS]

00:19:09 ◼   ► big-box retail and you know have sold a [TS]

00:19:12 ◼   ► lot of different things over the years [TS]

00:19:13 ◼   ► but the one of the times i was selling [TS]

00:19:15 ◼   ► like digital cameras especially this is [TS]

00:19:18 ◼   ► like early in the early digital camera [TS]

00:19:20 ◼   ► is very early and you know somebody [TS]

00:19:22 ◼   ► comes in is looking like a magic against [TS]

00:19:24 ◼   ► sony mavica which one of the ones that [TS]

00:19:26 ◼   ► took the floppy disks [TS]

00:19:27 ◼   ► yeah you would throw those in there and [TS]

00:19:29 ◼   ► you know they honestly nine times outta [TS]

00:19:33 ◼   ► ten all they want is which one has the [TS]

00:19:35 ◼   ► biggest number on the box they would [TS]

00:19:37 ◼   ► literally look at the boxes and they go [TS]

00:19:38 ◼   ► all this one has 10 that one has eight [TS]

00:19:40 ◼   ► and you know well yes but the one that's [TS]

00:19:42 ◼   ► I mean if you're an honest person you [TS]

00:19:45 ◼   ► know the one that's eight that slightly [TS]

00:19:46 ◼   ► less is actually better for you because [TS]

00:19:48 ◼   ► I don't know it has this swivel thing [TS]

00:19:50 ◼   ► and you really need that for whatever [TS]

00:19:51 ◼   ► you're doing but if you don't have that [TS]

00:19:53 ◼   ► person there [TS]

00:19:54 ◼   ► that decision is getting made based on [TS]

00:19:56 ◼   ► the number on the box right [TS]

00:19:58 ◼   ► hey that's ten this was aight i'll get [TS]

00:20:00 ◼   ► the 10 right i have the money that's [TS]

00:20:01 ◼   ► fine we'll go and that i think that [TS]

00:20:03 ◼   ► people make those decisions that way a [TS]

00:20:06 ◼   ► lot more than most people think and even [TS]

00:20:08 ◼   ► though apple store employees are [TS]

00:20:11 ◼   ► theoretically better informed than your [TS]

00:20:13 ◼   ► average big-box retailer they don't have [TS]

00:20:15 ◼   ► the time Apple stores are more crowded [TS]

00:20:17 ◼   ► than ever people are making decisions [TS]

00:20:18 ◼   ► without intervention by an employee and [TS]

00:20:21 ◼   ► just asking the employee to set it up [TS]

00:20:23 ◼   ► for them and hopefully the employee [TS]

00:20:25 ◼   ► maybe intervenes at some point if they [TS]

00:20:26 ◼   ► feel it's the wrong product for them and [TS]

00:20:28 ◼   ► tries to switch the something that is [TS]

00:20:29 ◼   ► but there's no guarantees [TS]

00:20:31 ◼   ► so I think that literally the physical [TS]

00:20:33 ◼   ► difference in the camera could have make [TS]

00:20:36 ◼   ► a real big difference for people because [TS]

00:20:38 ◼   ► of those reasons and it's it seems silly [TS]

00:20:41 ◼   ► or obvious or whatever but people are [TS]

00:20:45 ◼   ► silly and obvious when they buy you know [TS]

00:20:47 ◼   ► that's just remove them and vast [TS]

00:20:48 ◼   ► majority of consumers that way and I [TS]

00:20:51 ◼   ► think it's also telling how long Apple [TS]

00:20:53 ◼   ► has stuck with the shot shot on iphone [TS]

00:20:57 ◼   ► ad campaign you know and and you know [TS]

00:21:00 ◼   ► shelter said it when he was on my show [TS]

00:21:02 ◼   ► forget it was last year that the first [TS]

00:21:05 ◼   ► time two years ago where I I think name [TS]

00:21:07 ◼   ► drop by the I asked him like dude I [TS]

00:21:11 ◼   ► think it was two years ago because i [TS]

00:21:12 ◼   ► think last year would have it was so [TS]

00:21:13 ◼   ► obvious it would it wasn't too late to [TS]

00:21:15 ◼   ► ask but I just said like it do you [TS]

00:21:18 ◼   ► consider apple one of the leading camera [TS]

00:21:21 ◼   ► companies in the world and his answer [TS]

00:21:22 ◼   ► was the leading camera company in the [TS]

00:21:24 ◼   ► world i mean threats totally how he sees [TS]

00:21:26 ◼   ► you know it the importance of the camera [TS]

00:21:29 ◼   ► on the on the phone and I really did [TS]

00:21:31 ◼   ► there's no other explanation I can think [TS]

00:21:33 ◼   ► of for why this the mix of plus 2 non [TS]

00:21:35 ◼   ► plus would grow up this year because one [TS]

00:21:38 ◼   ► of the big complaints about that the [TS]

00:21:40 ◼   ► iphone 7 is that it quote unquote looks [TS]

00:21:41 ◼   ► just like the iphone 6 and success that [TS]

00:21:43 ◼   ► it's otherwise who cares i just it seems [TS]

00:21:48 ◼   ► like the obvious [TS]

00:21:49 ◼   ► yeah and it's it's a it's a great lever [TS]

00:21:54 ◼   ► to get people to buy that bigger phone [TS]

00:21:56 ◼   ► even though they don't want the bigger [TS]

00:21:58 ◼   ► screen you know because people are often [TS]

00:22:00 ◼   ► just shocked by how large it is [TS]

00:22:02 ◼   ► physically when they hold it you know if [TS]

00:22:04 ◼   ► I had somebody if I have a7 now but like [TS]

00:22:07 ◼   ► I off [TS]

00:22:08 ◼   ► use the seven plus special traveling and [TS]

00:22:10 ◼   ► so if i had to somebody there homey and [TS]

00:22:12 ◼   ► this is big you know if they've never [TS]

00:22:13 ◼   ► used one real one but it's a testament [TS]

00:22:16 ◼   ► to how how driven by camera people are [TS]

00:22:20 ◼   ► no don't put up with that [TS]

00:22:22 ◼   ► so to speak and knowing how hard the [TS]

00:22:26 ◼   ► camera team at apple had to push to make [TS]

00:22:30 ◼   ► this thing even work right that dual [TS]

00:22:33 ◼   ► camera thing up which is a fairly it's a [TS]

00:22:35 ◼   ► really significant technical you know [TS]

00:22:37 ◼   ► achievement and it's another company had [TS]

00:22:40 ◼   ► done this I mean Apple you know they [TS]

00:22:42 ◼   ► took their own horn a lot right but it's [TS]

00:22:45 ◼   ► another company had done this they would [TS]

00:22:47 ◼   ► have to 10 times as much as it's [TS]

00:22:49 ◼   ► actually a very very very very difficult [TS]

00:22:50 ◼   ► technical problem what they achieved [TS]

00:22:52 ◼   ► here and it out of everything in the [TS]

00:22:55 ◼   ► camera the the excuse me out of [TS]

00:22:59 ◼   ► everything in the phone [TS]

00:23:01 ◼   ► the camera is really the only thing [TS]

00:23:03 ◼   ► that's pushing the processor to its [TS]

00:23:06 ◼   ► limits into its absolute peak limits [TS]

00:23:09 ◼   ► right now you know I mean you know a [TS]

00:23:11 ◼   ► game or whatever the case maybe they [TS]

00:23:12 ◼   ► know what the limits are they work [TS]

00:23:14 ◼   ► within those but most games that on [TS]

00:23:17 ◼   ► average that people play are really [TS]

00:23:19 ◼   ► pushing that hard games is probably the [TS]

00:23:21 ◼   ► number to category but above that and up [TS]

00:23:24 ◼   ► far above anything else that most people [TS]

00:23:26 ◼   ► do on their phones or most of the [TS]

00:23:28 ◼   ► capabilities of the phone which are [TS]

00:23:29 ◼   ► pretty well known by now that the camera [TS]

00:23:32 ◼   ► in that net seven-plus with its dual [TS]

00:23:35 ◼   ► lens and in twin capture and blending of [TS]

00:23:38 ◼   ► the pair of photos and all of the stuff [TS]

00:23:41 ◼   ► that it does it really is pushing very [TS]

00:23:43 ◼   ► very hard that a series chip so it's [TS]

00:23:47 ◼   ► like a leading driver of the power the [TS]

00:23:50 ◼   ► chip power that's in the phone because [TS]

00:23:53 ◼   ► that chip does and has done everything [TS]

00:23:55 ◼   ► it needs to do for most people for a [TS]

00:23:57 ◼   ► very long time you know for several [TS]

00:23:59 ◼   ► generations [TS]

00:24:00 ◼   ► yeah and so it's it's driving forward [TS]

00:24:02 ◼   ► the processing capability and power of [TS]

00:24:05 ◼   ► the phone and I think it's not driving [TS]

00:24:07 ◼   ► sales along with it and it's it was [TS]

00:24:09 ◼   ► clearly instrumental in the poor [TS]

00:24:12 ◼   ► treatment or is you know at like why you [TS]

00:24:16 ◼   ► know why did portrait mode and the [TS]

00:24:18 ◼   ► dual-mode thing ship this year I'm [TS]

00:24:21 ◼   ► part of it was I think that the camera [TS]

00:24:22 ◼   ► engineering just the camera itself took [TS]

00:24:26 ◼   ► a long time I think it's complicated and [TS]

00:24:27 ◼   ► just the the the algorithm of how are [TS]

00:24:30 ◼   ► you going to use these two lenses for [TS]

00:24:34 ◼   ► zooming and and etc etc but i think [TS]

00:24:37 ◼   ► another part of it too was that it was [TS]

00:24:38 ◼   ► coincident with the a-series chip [TS]

00:24:41 ◼   ► getting fast enough that you can do this [TS]

00:24:42 ◼   ► on the fly from what I know about how [TS]

00:24:45 ◼   ► long it took them to build this and [TS]

00:24:47 ◼   ► obviously everybody knows that it didn't [TS]

00:24:49 ◼   ► ship with the phone right [TS]

00:24:51 ◼   ► it shipped the ships of a week later [TS]

00:24:52 ◼   ► right I don't think that was true [TS]

00:24:54 ◼   ► teaching and now i think it was [TS]

00:24:56 ◼   ► necessary [TS]

00:24:57 ◼   ► yeah it was it was absolutely necessary [TS]

00:24:59 ◼   ► for them to actually make it work like [TS]

00:25:01 ◼   ► finish it and get it to work and that [TS]

00:25:04 ◼   ► doesn't happen if you've been able to do [TS]

00:25:05 ◼   ► it for a processor generation right let [TS]

00:25:07 ◼   ► you use it you know literally Matthew [TS]

00:25:10 ◼   ► bands are you know where the first [TS]

00:25:11 ◼   ► person I knew who had access to it [TS]

00:25:12 ◼   ► because you got a pre-release version of [TS]

00:25:15 ◼   ► it at least a couple of days ahead of [TS]

00:25:17 ◼   ► the beta coming out and you had like a [TS]

00:25:20 ◼   ► nice little exclusive on on techcrunch [TS]

00:25:23 ◼   ► with with adorable pictures of your your [TS]

00:25:25 ◼   ► daughter but they were really want a pic [TS]

00:25:28 ◼   ► they chose well because you're you know [TS]

00:25:30 ◼   ► you've got a background in photography [TS]

00:25:31 ◼   ► so you're not just sitting there [TS]

00:25:33 ◼   ► shooting pictures of here you know I [TS]

00:25:36 ◼   ► don't know your desk or whatever [TS]

00:25:37 ◼   ► yeah but I think you could I even when [TS]

00:25:40 ◼   ► it first came out and they let us use [TS]

00:25:42 ◼   ► the beta there were performance problems [TS]

00:25:45 ◼   ► with it that that happens been ironed [TS]

00:25:47 ◼   ► out and now it's just there is a sort of [TS]

00:25:49 ◼   ► it just works you put in portrait mode [TS]

00:25:51 ◼   ► the preview is live the phone doesn't [TS]

00:25:53 ◼   ► get hot and it just works [TS]

00:25:55 ◼   ► yeah that stuff is being iterated on as [TS]

00:25:57 ◼   ► we speak like you and I are talking [TS]

00:25:58 ◼   ► right now it's four o'clock [TS]

00:26:00 ◼   ► you know I'm sure the camera team is [TS]

00:26:02 ◼   ► still working on updates to that thing [TS]

00:26:04 ◼   ► right because it's it's a living [TS]

00:26:07 ◼   ► document you know in terms of the way [TS]

00:26:10 ◼   ► that it performs the edge detection gets [TS]

00:26:12 ◼   ► better every iteration and the the blur [TS]

00:26:14 ◼   ► effect gets more organic and more [TS]

00:26:16 ◼   ► natural you know that they're able to [TS]

00:26:18 ◼   ► push that processor via optimization [TS]

00:26:20 ◼   ► because obviously the hardware and [TS]

00:26:21 ◼   ► changed right so they are able to [TS]

00:26:23 ◼   ► optimize the process is further so [TS]

00:26:25 ◼   ► they're able to do more and more complex [TS]

00:26:26 ◼   ► calculations on that but it really is [TS]

00:26:28 ◼   ► bleeding edge stuff like there no nobody [TS]

00:26:31 ◼   ► else is pushing this hard and people [TS]

00:26:32 ◼   ► were very quick they don't want to [TS]

00:26:34 ◼   ► published that preview and then [TS]

00:26:36 ◼   ► eventually when when we did that like [TS]

00:26:38 ◼   ► the review the phone and stuff like that [TS]

00:26:40 ◼   ► we were very quick to say all you know [TS]

00:26:41 ◼   ► what this model or that model from some [TS]

00:26:43 ◼   ► other brand has been doing the years at [TS]

00:26:45 ◼   ► yada it's true that other brands have [TS]

00:26:50 ◼   ► done this show blur thing but not in [TS]

00:26:53 ◼   ► this way and not to this level of [TS]

00:26:55 ◼   ► sophistication and to be honest even [TS]

00:26:57 ◼   ► though some of the results were kind of [TS]

00:26:59 ◼   ► hinky up front you know what's gonna get [TS]

00:27:01 ◼   ► better because they're dedicated to [TS]

00:27:02 ◼   ► making it better and they have they know [TS]

00:27:04 ◼   ► this is a primary driver of purchases [TS]

00:27:07 ◼   ► whereas a lot of these other phones it [TS]

00:27:09 ◼   ► was a one-off gimmick to try and sell [TS]

00:27:11 ◼   ► phones that quarter and really is going [TS]

00:27:13 ◼   ► to get no significant updates in the [TS]

00:27:15 ◼   ► future you know and it's it's a shame [TS]

00:27:18 ◼   ► but nobody else is really driving like [TS]

00:27:19 ◼   ► that Samsung works sort of backwards [TS]

00:27:22 ◼   ► right from like oh you know what did [TS]

00:27:24 ◼   ► what do we think the market wants this [TS]

00:27:26 ◼   ► quarter [TS]

00:27:27 ◼   ► let's try to produce that and then you [TS]

00:27:29 ◼   ► know they're i'm not saying that they're [TS]

00:27:31 ◼   ► their products are not you know solid or [TS]

00:27:33 ◼   ► you know decent or whatever if they [TS]

00:27:35 ◼   ► don't explode but there isn't there is a [TS]

00:27:38 ◼   ► drive there to get that kind of stuff [TS]

00:27:41 ◼   ► right because they know that this is the [TS]

00:27:46 ◼   ► thing that people want it's not it's not [TS]

00:27:48 ◼   ► what they say they want which is more [TS]

00:27:50 ◼   ► megapixels or you know sharper images or [TS]

00:27:53 ◼   ► were these crude terms that they used to [TS]

00:27:55 ◼   ► describe it it's actually they want [TS]

00:27:57 ◼   ► their pictures look more like pictures [TS]

00:27:58 ◼   ► and that's a really nebulous thing until [TS]

00:28:00 ◼   ► you you know you sort of figure out how [TS]

00:28:02 ◼   ► to define that I think there's been a [TS]

00:28:04 ◼   ► lot of time trying to define that for [TS]

00:28:05 ◼   ► people [TS]

00:28:06 ◼   ► yeah I also think it is the clearest [TS]

00:28:11 ◼   ► path that I can think of because I I [TS]

00:28:13 ◼   ► fail and certain other forms of [TS]

00:28:15 ◼   ► imagination of how can the iphone [TS]

00:28:18 ◼   ► continue to get better and there are [TS]

00:28:22 ◼   ► some little things you know like a like [TS]

00:28:25 ◼   ► the true tone color that the ipad pro [TS]

00:28:28 ◼   ► has that would be great to eventually [TS]

00:28:30 ◼   ► have it on the iphone to there's you [TS]

00:28:32 ◼   ► know but that I can't see the display [TS]

00:28:35 ◼   ► quality quality wise getting radically [TS]

00:28:38 ◼   ► better so much so that it would that's [TS]

00:28:40 ◼   ► why you get a new phone [TS]

00:28:42 ◼   ► everybody's Reuters rumors are rampant [TS]

00:28:44 ◼   ► that the industrial design is going to [TS]

00:28:46 ◼   ► change and they're going to get rid of [TS]

00:28:47 ◼   ► the head [TS]

00:28:48 ◼   ► forehead and just sort of go from top to [TS]

00:28:50 ◼   ► bottom left to right edge-to-edge [TS]

00:28:51 ◼   ► display and visually that would be very [TS]

00:28:54 ◼   ► striking if it looks super cool then I [TS]

00:28:59 ◼   ► could see that driving sales but how [TS]

00:29:00 ◼   ► many do you know after you do that how [TS]

00:29:02 ◼   ► does it keep going [TS]

00:29:03 ◼   ► whereas the camera can continue to get [TS]

00:29:05 ◼   ► better every 12 months maybe not in a [TS]

00:29:08 ◼   ► radical way because you run up in the [TS]

00:29:10 ◼   ► limits of physics but you know and lens [TS]

00:29:13 ◼   ► optics but in a tangible way and that if [TS]

00:29:17 ◼   ► you're only if you're on like a two or [TS]

00:29:18 ◼   ► three-year upgrade cycle you can get a [TS]

00:29:20 ◼   ► radically better camera every time you [TS]

00:29:21 ◼   ► upgrade to a new phone back to me could [TS]

00:29:24 ◼   ► continue to drive sales about where we [TS]

00:29:27 ◼   ► are right now for the iphone four years [TS]

00:29:28 ◼   ► to come [TS]

00:29:29 ◼   ► yeah yeah there's there's not much else [TS]

00:29:34 ◼   ► for them to chip away at and I think [TS]

00:29:37 ◼   ► there will be new opportunities in other [TS]

00:29:40 ◼   ► categories that may even involve the [TS]

00:29:42 ◼   ► camera you know they are augmented [TS]

00:29:45 ◼   ► reality or VR whatever the case but as [TS]

00:29:47 ◼   ► far as like the on-device components [TS]

00:29:50 ◼   ► there they're pretty well along towards [TS]

00:29:53 ◼   ► a you know diminishing returns right so [TS]

00:29:57 ◼   ► yeah i agree Cameras Cameras a primary [TS]

00:30:00 ◼   ► driver they're all right let me take a [TS]

00:30:01 ◼   ► break here and thank our first sponsors [TS]

00:30:03 ◼   ► a new sponsor very excited about this [TS]

00:30:05 ◼   ► company company ministry of supply [TS]

00:30:07 ◼   ► ministry of supply makes performance [TS]

00:30:12 ◼   ► dress clothes [TS]

00:30:14 ◼   ► what does that mean well it was launched [TS]

00:30:15 ◼   ► by a bunch of a group of it former [TS]

00:30:17 ◼   ► engineers engineering students from MIT [TS]

00:30:20 ◼   ► and they make fabrics performance [TS]

00:30:25 ◼   ► fabrics the type of things that are on [TS]

00:30:27 ◼   ► like gym clothes but they use them to [TS]

00:30:29 ◼   ► make a dress clothes like stuff that [TS]

00:30:32 ◼   ► you'd wear to work [TS]

00:30:33 ◼   ► they are breathable they are flexible [TS]

00:30:36 ◼   ► they are way more comfortable totally [TS]

00:30:39 ◼   ► feel different and even less resist [TS]

00:30:42 ◼   ► they're even more resistant to wrinkles [TS]

00:30:43 ◼   ► should say less resistant more resistant [TS]

00:30:45 ◼   ► they sent me some samples they sent me a [TS]

00:30:48 ◼   ► jacket very nice jacket and a very nice [TS]

00:30:50 ◼   ► dress shirt the dress shirt is is a [TS]

00:30:52 ◼   ► really really nice feels great looks [TS]

00:30:56 ◼   ► great and even when i took out of the [TS]

00:30:58 ◼   ► box my wife even commented on [TS]

00:31:00 ◼   ► shirt she was like well what is that you [TS]

00:31:02 ◼   ► know because it just looks a little [TS]

00:31:04 ◼   ► different not like in terms of like [TS]

00:31:05 ◼   ► weird but just sort of like he's like a [TS]

00:31:07 ◼   ► nice Sheen to it was very very nice [TS]

00:31:09 ◼   ► they also sent me some socks just socks [TS]

00:31:11 ◼   ► and they're very comfortable socks so [TS]

00:31:16 ◼   ► here's what a is one of the examples [TS]

00:31:17 ◼   ► men's future forward dress shirt I think [TS]

00:31:20 ◼   ► that's the one they sent me it regulate [TS]

00:31:22 ◼   ► your body temperature based on your [TS]

00:31:24 ◼   ► surroundings keeps you warmer when it's [TS]

00:31:26 ◼   ► cold keeps you cooler when it's warm [TS]

00:31:28 ◼   ► there dress shots are made out of coffee [TS]

00:31:30 ◼   ► fibers that whisks wet and absorb odor [TS]

00:31:34 ◼   ► they provide extreme question and [TS]

00:31:36 ◼   ► shockingly comfortable i can vouch for [TS]

00:31:38 ◼   ► that the socks are super comfortable no [TS]

00:31:41 ◼   ► risk they offer free shipping free [TS]

00:31:43 ◼   ► returns and a wonder day no questions [TS]

00:31:45 ◼   ► asked return policy so you can buy your [TS]

00:31:49 ◼   ► clothes get your shirt find out it's the [TS]

00:31:51 ◼   ► slightly wrong sighs maybe you should [TS]

00:31:52 ◼   ► have got no one little smaller little [TS]

00:31:54 ◼   ► bigger send it back [TS]

00:31:56 ◼   ► totally free of 200 days couldn't be [TS]

00:31:58 ◼   ► better go to their website is Ministry [TS]

00:32:02 ◼   ► of supply.com / the talkshow Ministry of [TS]

00:32:08 ◼   ► supply.com / the talk show and what [TS]

00:32:12 ◼   ► they'll do if you go there is they will [TS]

00:32:15 ◼   ► send you a free pair of their moisture [TS]

00:32:17 ◼   ► wicking dress socks for free [TS]

00:32:20 ◼   ► fifteen dollar value with your first [TS]

00:32:22 ◼   ► purchase and they also have seven retail [TS]

00:32:24 ◼   ► stores including bethesda maryland [TS]

00:32:27 ◼   ► Chicago and Atlanta and you can go into [TS]

00:32:29 ◼   ► the retail stores if there's one near [TS]

00:32:31 ◼   ► you and just mention the talk show when [TS]

00:32:34 ◼   ► you checkout and you'll get that same [TS]

00:32:35 ◼   ► free pair of socks so my thanks to [TS]

00:32:38 ◼   ► Ministry of supply great great sponsor [TS]

00:32:41 ◼   ► love it really really cool stuff [TS]

00:32:43 ◼   ► what next on the on a the results front [TS]

00:32:47 ◼   ► ipad maybe ipad sales were 16 million [TS]

00:32:52 ◼   ► last year the same quarter and third [TS]

00:32:54 ◼   ► down to 13 million this quarter [TS]

00:32:55 ◼   ► I don't know what to make it up i don't [TS]

00:33:00 ◼   ► know i mean i think that i think we're [TS]

00:33:05 ◼   ► still we're still trying to find the the [TS]

00:33:09 ◼   ► replacement cycle and they and the [TS]

00:33:12 ◼   ► bottom of it you know [TS]

00:33:14 ◼   ► the what we call it the bottom the [TS]

00:33:16 ◼   ► bottom of the pencil mark [TS]

00:33:18 ◼   ► yeah but where it starts to swing back [TS]

00:33:20 ◼   ► up and people repurchase or steady [TS]

00:33:22 ◼   ► stabilizes anyway yeah i don't know i [TS]

00:33:26 ◼   ► mean i think there's two schools of [TS]

00:33:28 ◼   ► thought on this I think you could argue [TS]

00:33:29 ◼   ► that you know iPads are built really [TS]

00:33:31 ◼   ► well and they handle you know single [TS]

00:33:34 ◼   ► tasks and it's sort of like you got up [TS]

00:33:37 ◼   ► apple sold a framing hammer to someone [TS]

00:33:43 ◼   ► to hang pictures right mm so like you [TS]

00:33:47 ◼   ► video you go to the hardware store [TS]

00:33:49 ◼   ► there's five kinds of hammer there [TS]

00:33:51 ◼   ► there's a you know picture hanging [TS]

00:33:53 ◼   ► hammer which comes in a little like [TS]

00:33:55 ◼   ► plastic piano bubble pack in its got [TS]

00:34:00 ◼   ► like a few finish nails and the Hammers [TS]

00:34:02 ◼   ► like if you have anything bigger than a [TS]

00:34:04 ◼   ► teeny-tiny nail into a plaster or [TS]

00:34:07 ◼   ► whatever it just hit the head falls off [TS]

00:34:09 ◼   ► right and you go all the way up the [TS]

00:34:11 ◼   ► scale through all the different hammers [TS]

00:34:13 ◼   ► to a framing hammer framing hammer is a [TS]

00:34:15 ◼   ► hammer that like slams in 10 penny nails [TS]

00:34:18 ◼   ► to two-by-fours a two by sixes on a on a [TS]

00:34:21 ◼   ► construction lot right the framing [TS]

00:34:22 ◼   ► hammer is reinforced its got like a long [TS]

00:34:25 ◼   ► Tang thats thats you know really [TS]

00:34:27 ◼   ► thoroughly embedded in the head and when [TS]

00:34:29 ◼   ► you swing that thing paying you know it [TS]

00:34:31 ◼   ► goes it's gonna waffle head to see you [TS]

00:34:33 ◼   ► know the nail got nice and and trunk [TS]

00:34:35 ◼   ► down and you can see that you got your [TS]

00:34:37 ◼   ► imprint on that board so you know the [TS]

00:34:39 ◼   ► nails driven only home and you could [TS]

00:34:40 ◼   ► just whale away on that for ten years [TS]

00:34:42 ◼   ► need that hammer will last year eight so [TS]

00:34:44 ◼   ► apple sold people framing hammers and [TS]

00:34:48 ◼   ► they're they're having and picture [TS]

00:34:50 ◼   ► frames so you've got you know and that [TS]

00:34:55 ◼   ► ten-year-old or five year old or heck [TS]

00:34:57 ◼   ► even a teenager or adult who uses it to [TS]

00:35:01 ◼   ► browse the web and and for a variety of [TS]

00:35:03 ◼   ► different apps that don't really push [TS]

00:35:05 ◼   ► the capabilities of the ipad in any [TS]

00:35:06 ◼   ► significant way and they're like this is [TS]

00:35:09 ◼   ► fine [TS]

00:35:09 ◼   ► why can't i just keep using this because [TS]

00:35:12 ◼   ► that framing hammer is nowhere near its [TS]

00:35:13 ◼   ► limits right and i think that there's [TS]

00:35:16 ◼   ► that's one school of thought that like [TS]

00:35:18 ◼   ► you doing the ipad significantly over [TS]

00:35:20 ◼   ► built for the tasks that most people use [TS]

00:35:23 ◼   ► it for and then the other school i think [TS]

00:35:25 ◼   ► the other side of it [TS]

00:35:27 ◼   ► is Apple has not done as good a job as [TS]

00:35:30 ◼   ► it could explain to people how much they [TS]

00:35:34 ◼   ► can do with that framing hammer like [TS]

00:35:35 ◼   ► they haven't sold as a framing hammer [TS]

00:35:37 ◼   ► and so I think that there's definitely [TS]

00:35:38 ◼   ► some interesting debate to be had there [TS]

00:35:41 ◼   ► i don't even know where I fall you know [TS]

00:35:43 ◼   ► on that scale yet i am of two minds [TS]

00:35:45 ◼   ► about it but I think those are the kind [TS]

00:35:47 ◼   ► of arguments that people are having [TS]

00:35:48 ◼   ► about where the ipad is currently and [TS]

00:35:50 ◼   ► then on top of that you have this [TS]

00:35:52 ◼   ► hey we don't know how long it's gonna be [TS]

00:35:55 ◼   ► before people need to or want to replace [TS]

00:35:58 ◼   ► an ipad that they don't break right you [TS]

00:36:00 ◼   ► know ever since the ipad 2 or three or [TS]

00:36:02 ◼   ► whatever you know better i guess you'd [TS]

00:36:04 ◼   ► say it's been pretty capable [TS]

00:36:07 ◼   ► yeah so why replace it yeah i think it [TS]

00:36:10 ◼   ► starts with the ipad air [TS]

00:36:13 ◼   ► I feel like up until then it was still [TS]

00:36:16 ◼   ► improving rapidly I mean the first one [TS]

00:36:18 ◼   ► is the first one that mean you know it [TS]

00:36:20 ◼   ► was you know [TS]

00:36:22 ◼   ► Wow to tablet that people might actually [TS]

00:36:24 ◼   ► buy but it was super thick it didn't [TS]

00:36:25 ◼   ► have right now and then it got thinner [TS]

00:36:27 ◼   ► and then it got retina but the ipad 3 [TS]

00:36:30 ◼   ► that had retina actually got thicker [TS]

00:36:32 ◼   ► than the ipad 2 that was before it and [TS]

00:36:34 ◼   ► it was replaced by apple six months [TS]

00:36:36 ◼   ► after it came out which is sort of [TS]

00:36:38 ◼   ► ridiculous in hindsight just shows shows [TS]

00:36:41 ◼   ► how far they were pushing themselves to [TS]

00:36:43 ◼   ► get that retina ipad 3 out and then I [TS]

00:36:47 ◼   ► really feel like it found itself with [TS]

00:36:49 ◼   ► the ipad air where they strike the size [TS]

00:36:51 ◼   ► on the sides and it that the a-series [TS]

00:36:55 ◼   ► chips had gotten I'm sorry about that [TS]

00:36:58 ◼   ► that that launched Syria again on my [TS]

00:37:00 ◼   ► phone saying a serious [TS]

00:37:04 ◼   ► I'm sorry I apologise anybody out there [TS]

00:37:06 ◼   ► was a theory dingus was activated by it [TS]

00:37:12 ◼   ► but at it and I just feel like my my [TS]

00:37:15 ◼   ► working hypothesis on the weird [TS]

00:37:18 ◼   ► trajectory of ipad sales weird meaning [TS]

00:37:20 ◼   ► it you know at one point was like 20 [TS]

00:37:23 ◼   ► million a quarter and it was sky it was [TS]

00:37:25 ◼   ► faster [TS]

00:37:26 ◼   ► it was never above the iphone but it was [TS]

00:37:28 ◼   ► above the iphone at that date since [TS]

00:37:32 ◼   ► launch like the first ipad outsold the [TS]

00:37:35 ◼   ► first iphone the second ipad ipad 2 [TS]

00:37:37 ◼   ► outsold the iphone 3g [TS]

00:37:40 ◼   ► and you know and then it came down to [TS]

00:37:43 ◼   ► earth and my working theory on this is [TS]

00:37:45 ◼   ► simply like pretty much what you said [TS]

00:37:47 ◼   ► that it's there was this great unfilled [TS]

00:37:50 ◼   ► need Steve Jobs right that there was [TS]

00:37:52 ◼   ► this middle territory for something like [TS]

00:37:55 ◼   ► an iPad in people's lives and there was [TS]

00:37:57 ◼   ► nothing like it right the phones were [TS]

00:37:59 ◼   ► too small and laptops are you know they [TS]

00:38:04 ◼   ► are great for certain things but there [TS]

00:38:06 ◼   ► there's their impersonal enough and the [TS]

00:38:09 ◼   ► form factor is such that it you know it [TS]

00:38:12 ◼   ► creates this void that the ipad actually [TS]

00:38:15 ◼   ► does Phil but then once people got one [TS]

00:38:18 ◼   ► especially of the air vintage or later [TS]

00:38:20 ◼   ► there that's it they don't need another [TS]

00:38:21 ◼   ► one until they you know break the other [TS]

00:38:23 ◼   ► one who [TS]

00:38:25 ◼   ► yeah i mean if you look at it from the [TS]

00:38:27 ◼   ► terms of like a ADD Steve introduces the [TS]

00:38:29 ◼   ► ipad and says we think people are going [TS]

00:38:31 ◼   ► to love this people need this and that [TS]

00:38:33 ◼   ► was if you if you subscribe to the [TS]

00:38:37 ◼   ► histories of it the ipad was a goal and [TS]

00:38:40 ◼   ► the iphone was and everything that they [TS]

00:38:42 ◼   ► hit on but if you go to go back to that [TS]

00:38:46 ◼   ► and you say you have him walk onstage [TS]

00:38:49 ◼   ► and say we think that this is going to [TS]

00:38:52 ◼   ► be you know in 10 years or whatever [TS]

00:38:55 ◼   ► would what is an out doesn't end so 77 [TS]

00:38:59 ◼   ► years in seven years [TS]

00:39:00 ◼   ► this is going to be at that total of [TS]

00:39:03 ◼   ► three hundred million dollar business [TS]

00:39:04 ◼   ► for apple which is about what i pads are [TS]

00:39:06 ◼   ► maybe a little more now right people [TS]

00:39:09 ◼   ► would have been like overjoyed great 30 [TS]

00:39:11 ◼   ► million dollars uh you know that the [TS]

00:39:13 ◼   ► there's really a million units excuse my [TS]

00:39:15 ◼   ► heart three times significantly more [TS]

00:39:17 ◼   ► dollars but you know II you you look at [TS]

00:39:19 ◼   ► the amount total years old and these [TS]

00:39:22 ◼   ► these billions of dollars of you know [TS]

00:39:24 ◼   ► business that the ipad created you would [TS]

00:39:27 ◼   ► go hey that's an entire company more [TS]

00:39:29 ◼   ► than an entire company's worth of value [TS]

00:39:30 ◼   ► that you're going to create for apple [TS]

00:39:32 ◼   ► and shareholders and whatever else that [TS]

00:39:34 ◼   ► is more [TS]

00:39:35 ◼   ► that's more than great and it's only [TS]

00:39:38 ◼   ► because the iphone has been so you know [TS]

00:39:41 ◼   ► outsized popular and now we know [TS]

00:39:44 ◼   ► continues to grow that the ipad looks [TS]

00:39:47 ◼   ► poultry in comparison like it because [TS]

00:39:50 ◼   ► you had those go go early years [TS]

00:39:52 ◼   ► yeah there's at work with [TS]

00:39:54 ◼   ► a real ramp up right now fastest-selling [TS]

00:39:56 ◼   ► computer for fastest selling consumer [TS]

00:39:58 ◼   ► electronics device [TS]

00:40:00 ◼   ► I think maybe they connect beat it for a [TS]

00:40:01 ◼   ► time and then it will pass that around [TS]

00:40:03 ◼   ► don't quote me but you know one of the [TS]

00:40:05 ◼   ► fastest anyway selling consumer [TS]

00:40:06 ◼   ► electronics devices of all time and it's [TS]

00:40:09 ◼   ► just yeah the you can look at those boom [TS]

00:40:11 ◼   ► years and you go home and you know it's [TS]

00:40:14 ◼   ► now it's going down or whatever but you [TS]

00:40:17 ◼   ► know I ipad still be still sold 13 [TS]

00:40:19 ◼   ► million of those you know in the last [TS]

00:40:21 ◼   ► quarter which is crazy and if you have [TS]

00:40:23 ◼   ► still an enormous business and it it is [TS]

00:40:26 ◼   ► Apple's answer to the sub heusen dollar [TS]

00:40:30 ◼   ► computer market right like let's just [TS]

00:40:33 ◼   ► admit that the phone is a phone and even [TS]

00:40:35 ◼   ► Apple you know its smartphone is the [TS]

00:40:38 ◼   ► most important device in the computer [TS]

00:40:40 ◼   ► industry has ever come up with any even [TS]

00:40:41 ◼   ► Apple I think even as much as Apple new [TS]

00:40:43 ◼   ► with the 10 year ago introduction of the [TS]

00:40:45 ◼   ► iphone that they had something special [TS]

00:40:47 ◼   ► on their hands [TS]

00:40:48 ◼   ► I don't think they even Apple itself was [TS]

00:40:50 ◼   ► surprised at just how how useful [TS]

00:40:52 ◼   ► smartphone could be and how much we [TS]

00:40:54 ◼   ► would depend on it as are all right [TS]

00:40:56 ◼   ► primary device if you just think of the [TS]

00:40:59 ◼   ► ipad if they called it the mac pad [TS]

00:41:02 ◼   ► instead of ipad and you just counted it [TS]

00:41:04 ◼   ► with mac sales as pc i don't i don't [TS]

00:41:07 ◼   ► think that's a ridiculous comparison to [TS]

00:41:09 ◼   ► make you know that there are people who [TS]

00:41:11 ◼   ► are going to you know to gonna go drop [TS]

00:41:13 ◼   ► five hundred dollars on a portable [TS]

00:41:14 ◼   ► computer we're not going to buy a [TS]

00:41:16 ◼   ► macbook because there is no system is a [TS]

00:41:18 ◼   ► five-hundred-dollar macbook but they [TS]

00:41:19 ◼   ► might get an ipad pro or you know it an [TS]

00:41:22 ◼   ► ipad air or whatever it if you add up [TS]

00:41:27 ◼   ► you know those 13 million ipad sales to [TS]

00:41:31 ◼   ► the max five million sales that's 18 [TS]

00:41:33 ◼   ► million personal computers that apple [TS]

00:41:35 ◼   ► sold you know enough [TS]

00:41:37 ◼   ► whatever price range from ipad 2 to you [TS]

00:41:40 ◼   ► know most expensive Mac it's pretty [TS]

00:41:43 ◼   ► impressive but i do think that it's sort [TS]

00:41:46 ◼   ► of goodness i think it's already settled [TS]

00:41:48 ◼   ► into sort of a mac like static number of [TS]

00:41:51 ◼   ► how many million they can sell a quarter [TS]

00:41:53 ◼   ► you know so did the analogy the cars and [TS]

00:41:58 ◼   ► trucks analogy where the cars a you know [TS]

00:42:02 ◼   ► lightweight computer and a truck is a [TS]

00:42:05 ◼   ► desktop or wherever many people off [TS]

00:42:08 ◼   ► then view the ipad is the car and you [TS]

00:42:11 ◼   ► know that's then set the iphone aside [TS]

00:42:13 ◼   ► but i think it's interesting to read you [TS]

00:42:16 ◼   ► get a little bit and view the iphone is [TS]

00:42:18 ◼   ► the car [TS]

00:42:18 ◼   ► um you know the iphones your daily [TS]

00:42:21 ◼   ► driver right that you name me a day you [TS]

00:42:24 ◼   ► don't touch your iphone possible right [TS]

00:42:26 ◼   ► you lost it you broke it you don't touch [TS]

00:42:29 ◼   ► it other than that you touch it every [TS]

00:42:30 ◼   ► day [TS]

00:42:31 ◼   ► that's your car the desktop stays the [TS]

00:42:33 ◼   ► truck right so the question then is like [TS]

00:42:36 ◼   ► is the ipad your your utility vehicle or [TS]

00:42:44 ◼   ► is it your sports car in other words do [TS]

00:42:47 ◼   ► you like take it out on the weekends to [TS]

00:42:49 ◼   ► get work done or do you take it out on [TS]

00:42:50 ◼   ► the weekends for fun and I think that [TS]

00:42:52 ◼   ► there's there's whatever the case [TS]

00:42:54 ◼   ► whatever side of that he come down on I [TS]

00:42:56 ◼   ► think there's definitely a case to be [TS]

00:42:57 ◼   ► made for the ipad as like a a [TS]

00:42:59 ◼   ► purpose-driven device that mean you know [TS]

00:43:02 ◼   ► their whole companies built up around [TS]

00:43:04 ◼   ► revel systems and other things that are [TS]

00:43:06 ◼   ► built up around using the iPads to to [TS]

00:43:08 ◼   ► serve functions in the aid large portion [TS]

00:43:13 ◼   ► of its business is driven by [TS]

00:43:15 ◼   ► institutional sales right like schools [TS]

00:43:17 ◼   ► and other things that use the iPads in [TS]

00:43:20 ◼   ► in very specific ways and I think that [TS]

00:43:23 ◼   ► there's did the netbook arena whatever [TS]

00:43:27 ◼   ► when you remember the netbook error in [TS]

00:43:28 ◼   ► schools when everybody's like all of [TS]

00:43:30 ◼   ► this by netbooks for the kids and those [TS]

00:43:32 ◼   ► things are just so bad whatever so bad [TS]

00:43:35 ◼   ► garbage yeah garbage garbage it was at [TS]

00:43:39 ◼   ► the office it was very funny to me [TS]

00:43:41 ◼   ► because I mean my son is now in seventh [TS]

00:43:44 ◼   ► grade but as a thirteen-year-old he's [TS]

00:43:46 ◼   ► sort of like an interesting age [TS]

00:43:50 ◼   ► technology wise because you know when he [TS]

00:43:53 ◼   ► first started going to school it was and [TS]

00:43:57 ◼   ► I wasn't quite 10 years ago but you know [TS]

00:43:59 ◼   ► 2008-9 whatever school had a lot of I [TS]

00:44:04 ◼   ► don't know if they were called netbooks [TS]

00:44:05 ◼   ► but you know effectively they were [TS]

00:44:07 ◼   ► that's what a lot of the devices they [TS]

00:44:08 ◼   ► had and all the key all kids knew they [TS]

00:44:10 ◼   ► were junk like that because it and it's [TS]

00:44:13 ◼   ► so funny to me because I remember when I [TS]

00:44:14 ◼   ► was a kid getting access to any computer [TS]

00:44:16 ◼   ► in school was it was it would if it's [TS]

00:44:19 ◼   ► like all of a sudden Pope [TS]

00:44:21 ◼   ► to just pumped full of dopamine and I'm [TS]

00:44:24 ◼   ► on you know you're right and yes there [TS]

00:44:26 ◼   ► were ones that were better than others [TS]

00:44:27 ◼   ► and newer than others and there are even [TS]

00:44:30 ◼   ► that some of them some of the classes I [TS]

00:44:32 ◼   ► mean it's okay ad-hoc at the school [TS]

00:44:34 ◼   ► elementary school I went to there were [TS]

00:44:35 ◼   ► you know some teachers had like a TI 99 [TS]

00:44:37 ◼   ► for a or whatever it was called which is [TS]

00:44:39 ◼   ► a total piece of junk I mean it ran on [TS]

00:44:41 ◼   ► the little cassette tape drive but i [TS]

00:44:44 ◼   ► loved it it was just so funny to me to [TS]

00:44:46 ◼   ► see like first graders who thought that [TS]

00:44:47 ◼   ► you know didn't even want to use the [TS]

00:44:49 ◼   ► netbooks because they were such piece of [TS]

00:44:50 ◼   ► jump who write and they can it's like [TS]

00:44:55 ◼   ► they can tell anybody could tell [TS]

00:44:56 ◼   ► everybody could tell and I if you look [TS]

00:44:59 ◼   ► at the ipad that way when you look at it [TS]

00:45:01 ◼   ► like hey you know no matter what your I [TS]

00:45:05 ◼   ► mean you know there are some people that [TS]

00:45:07 ◼   ► can't afford any computer at all and [TS]

00:45:09 ◼   ► that's that's you know to be that's a [TS]

00:45:11 ◼   ► different problem a different discussion [TS]

00:45:14 ◼   ► to be had right but if you can afford a [TS]

00:45:17 ◼   ► computer the almost nearly the first [TS]

00:45:19 ◼   ► computer you could afford either [TS]

00:45:21 ◼   ► subsidized iphone or an unsubsidized [TS]

00:45:23 ◼   ► ipad right and i think that if you you [TS]

00:45:27 ◼   ► could look at like chromebox and a lot [TS]

00:45:28 ◼   ► of other things as sort of those [TS]

00:45:30 ◼   ► companies efforts to do that to lower [TS]

00:45:33 ◼   ► the barrier to get somebody to using [TS]

00:45:35 ◼   ► their computer / using the web in [TS]

00:45:38 ◼   ► Google's case using their services and [TS]

00:45:41 ◼   ► using their connected you know they're [TS]

00:45:43 ◼   ► connected services that that carry [TS]

00:45:44 ◼   ► advertising and whatever the case may be [TS]

00:45:46 ◼   ► in Apple's kc it's the same thing it's [TS]

00:45:49 ◼   ► like we want people to be into the apple [TS]

00:45:51 ◼   ► ecosystem so we can teach them about how [TS]

00:45:53 ◼   ► good Apple could be for them and and [TS]

00:45:55 ◼   ► what you know what an apple computer [TS]

00:45:57 ◼   ► feels like versus another computer and I [TS]

00:46:00 ◼   ► think the kinds a good ambassador that [TS]

00:46:01 ◼   ► way and so if it always exist if it [TS]

00:46:04 ◼   ► levels out at some point is we're not we [TS]

00:46:07 ◼   ► haven't seen any leveling out i think [TS]

00:46:08 ◼   ► that's the big question marks that [TS]

00:46:10 ◼   ► everybody is saying right now as once [TS]

00:46:12 ◼   ► the this the true replacement cycle [TS]

00:46:14 ◼   ► start to kick in and or you know Apple [TS]

00:46:17 ◼   ► finds a way to revitalize it in some [TS]

00:46:19 ◼   ► significant way where you know we can a [TS]

00:46:21 ◼   ► new spike that resets the bar and then [TS]

00:46:24 ◼   ► it's you know slopes downwards from [TS]

00:46:25 ◼   ► there as everybody adopted the new thing [TS]

00:46:27 ◼   ► whatever the case may be I think there [TS]

00:46:30 ◼   ► will be a point where it eventually [TS]

00:46:31 ◼   ► levels out and we see what kind of [TS]

00:46:34 ◼   ► business the ipad [TS]

00:46:35 ◼   ► business actually is and will be long [TS]

00:46:37 ◼   ► term I think that business will always [TS]

00:46:39 ◼   ► be characterized by its ability to you [TS]

00:46:43 ◼   ► know give people expanded computing [TS]

00:46:46 ◼   ► capabilities at far less price than a [TS]

00:46:48 ◼   ► macbook now and that's that's what it [TS]

00:46:51 ◼   ► will always be for apple and an apple [TS]

00:46:53 ◼   ► could preach about you know what it [TS]

00:46:54 ◼   ► could be for artists and what it could [TS]

00:46:56 ◼   ► be for creatives and all this other [TS]

00:46:57 ◼   ► stuff that's great [TS]

00:46:59 ◼   ► and hopefully the continued to serve [TS]

00:47:00 ◼   ► those people by pushing the capabilities [TS]

00:47:02 ◼   ► of the device but the vast majority of [TS]

00:47:04 ◼   ► sales in the category or not that that [TS]

00:47:06 ◼   ► you know there's not 13 million draw [TS]

00:47:10 ◼   ► artists buying it for pencils you know [TS]

00:47:12 ◼   ► it's just not that's not the way it [TS]

00:47:13 ◼   ► works [TS]

00:47:14 ◼   ► the the number i pointed out one of the [TS]

00:47:16 ◼   ► numbers i pointed out it was that just [TS]

00:47:18 ◼   ► looking at revenue last year ipad was [TS]

00:47:22 ◼   ► above mac and services by like little [TS]

00:47:25 ◼   ► bit for mac and about a billion dollars [TS]

00:47:28 ◼   ► in revenue for the same quarter last [TS]

00:47:29 ◼   ► year and as of this year and announce [TS]

00:47:32 ◼   ► the numbers announced today the mac did [TS]

00:47:36 ◼   ► 7.2 billion in revenue and ipad was down [TS]

00:47:40 ◼   ► to 5.5 and services were up from six [TS]

00:47:44 ◼   ► billion to 7.2 billion and again i'm not [TS]

00:47:48 ◼   ► a doom and gloom on ipad but I think it [TS]

00:47:50 ◼   ► just goes to show how the mix of the [TS]

00:47:54 ◼   ► price points that are selling at ipad [TS]

00:47:56 ◼   ► are Arlo i think that that you know and [TS]

00:47:59 ◼   ► I think ipad pro is a successful product [TS]

00:48:01 ◼   ► but i think it's going to be most [TS]

00:48:03 ◼   ► successful in years to come as it [TS]

00:48:05 ◼   ► trickles down you know the original iPad [TS]

00:48:07 ◼   ► pro trickle down to the lower price [TS]

00:48:09 ◼   ► points and I think it's clear since the [TS]

00:48:12 ◼   ► max like unit sales are just about dead [TS]

00:48:15 ◼   ► even [TS]

00:48:15 ◼   ► but the revenue was up quite a bit that [TS]

00:48:19 ◼   ► the macbook pros the new ones sold [TS]

00:48:21 ◼   ► pretty well for the first quarter and I [TS]

00:48:23 ◼   ► don't even think that that would they [TS]

00:48:24 ◼   ► weren't even out for the whole quarter [TS]

00:48:25 ◼   ► right yeah they were in when you look at [TS]

00:48:30 ◼   ► that trickle-down effect I mean look at [TS]

00:48:31 ◼   ► the ipad pro especially the larger one [TS]

00:48:34 ◼   ► and how much capability i mean it easily [TS]

00:48:38 ◼   ► at on par utility wise at least in the [TS]

00:48:43 ◼   ► specific utilities with it [TS]

00:48:46 ◼   ► week you know computers from wacom that [TS]

00:48:50 ◼   ► were several thousand dollars more [TS]

00:48:53 ◼   ► and frankly worse you know that the [TS]

00:48:57 ◼   ► missile tracking was not nearly what it [TS]

00:48:59 ◼   ► is on the ipad and the screen does not [TS]

00:49:01 ◼   ► have the color rendition and accuracy of [TS]

00:49:04 ◼   ► the ipad pro and you look at all that [TS]

00:49:06 ◼   ► and you look as that trickles down [TS]

00:49:07 ◼   ► you're going to see those pro devices [TS]

00:49:11 ◼   ► being in giving people access artists [TS]

00:49:15 ◼   ► and other Creators access to those [TS]

00:49:17 ◼   ► capabilities in ways that just were not [TS]

00:49:20 ◼   ► even heard of and I think apple doesn't [TS]

00:49:22 ◼   ► get credit for that stuff because people [TS]

00:49:24 ◼   ► want to see you know in the business in [TS]

00:49:27 ◼   ► tech writing world people want to see [TS]

00:49:29 ◼   ► those results in the new numbers and [TS]

00:49:31 ◼   ► it's like Oh every everybody must buy [TS]

00:49:33 ◼   ► that ipad pro and really drive up the [TS]

00:49:36 ◼   ► sales and price and stuff every quarter [TS]

00:49:38 ◼   ► whereas if you look at it in the Ark of [TS]

00:49:40 ◼   ► the game where it's like hey worshipping [TS]

00:49:43 ◼   ► miss now in in a year it's going to be [TS]

00:49:46 ◼   ► really affordable and we're going to [TS]

00:49:48 ◼   ► sell a lot more of them or a lot more of [TS]

00:49:50 ◼   ► devices that have their capability [TS]

00:49:52 ◼   ► whatever they're going to call them [TS]

00:49:53 ◼   ► yeah and that that arc i think is a very [TS]

00:49:56 ◼   ► interesting one and it's hard to message [TS]

00:49:58 ◼   ► right because people don't want to hear [TS]

00:50:00 ◼   ► were we're putting this thing out that [TS]

00:50:03 ◼   ► not a lot of people are gonna buy but [TS]

00:50:05 ◼   ► more people will buy later when it's [TS]

00:50:07 ◼   ► affordable they want to hear or putting [TS]

00:50:08 ◼   ► this thing out the people must buy now [TS]

00:50:10 ◼   ► yeah yeah you know right it's like [TS]

00:50:14 ◼   ► anything short of an ipad that makes [TS]

00:50:15 ◼   ► everybody just throw their old ipad in [TS]

00:50:17 ◼   ► that garbage and go get in line to buy [TS]

00:50:20 ◼   ► the new one is somehow failure but it [TS]

00:50:22 ◼   ► doesn't really work right [TS]

00:50:23 ◼   ► the only other thing I have from the [TS]

00:50:26 ◼   ► results and from the the notes of the [TS]

00:50:28 ◼   ► conference call that I read was that tim [TS]

00:50:31 ◼   ► cook pointed out that Apple pay users [TS]

00:50:33 ◼   ► are up 33 x year-over-year so that's it [TS]

00:50:37 ◼   ► really gives that's that's a very good [TS]

00:50:40 ◼   ► year for Apple pay especially since it's [TS]

00:50:42 ◼   ► what two years old now [TS]

00:50:43 ◼   ► two-and-a-half years old who uh and [TS]

00:50:46 ◼   ► again that's the other thing I had in my [TS]

00:50:48 ◼   ► notes that is sort of like hey let's all [TS]

00:50:50 ◼   ► remember that that getting people to do [TS]

00:50:52 ◼   ► something with it 22 like twenty [TS]

00:50:56 ◼   ► thirteen years hey you're going to pay [TS]

00:50:58 ◼   ► for stuff but [TS]

00:50:59 ◼   ► putting your fingerprint on a phone at [TS]

00:51:01 ◼   ► the register on your cell phone right [TS]

00:51:04 ◼   ► sounds weird right it's like different [TS]

00:51:06 ◼   ► and it's like I don't know i mean at it [TS]

00:51:08 ◼   ► I i know enough about how it works i [TS]

00:51:11 ◼   ► understand it that it's I actually [TS]

00:51:12 ◼   ► understand that it's actually more [TS]

00:51:14 ◼   ► secure than using a credit card a lot [TS]

00:51:16 ◼   ► more secure it you know if you're doing [TS]

00:51:19 ◼   ► a magnetic swipe but you know people [TS]

00:51:23 ◼   ► always have the the heebie-jeebies about [TS]

00:51:25 ◼   ► putting your credit card into the phone [TS]

00:51:26 ◼   ► or something like that i mean there is a [TS]

00:51:28 ◼   ► lot of an awful lot of people who spent [TS]

00:51:30 ◼   ► years not buying anything at all on the [TS]

00:51:32 ◼   ► web because they didn't feel like they [TS]

00:51:34 ◼   ► can trust it because it was new and [TS]

00:51:35 ◼   ► different and that's just the way humans [TS]

00:51:37 ◼   ► are hooked up for the most part that new [TS]

00:51:40 ◼   ► and different is scary and therefore you [TS]

00:51:42 ◼   ► wait so 3x growth in apple-pie guess I I [TS]

00:51:46 ◼   ► didn't see the details on where exactly [TS]

00:51:48 ◼   ► that is like how much of that is in the [TS]

00:51:49 ◼   ► US how much of it is worldwide expansion [TS]

00:51:51 ◼   ► but i feel it's one of those stories [TS]

00:51:55 ◼   ► that in terms of hey Apple hasn't done a [TS]

00:51:57 ◼   ► goddamn thing under tim cook that that [TS]

00:51:59 ◼   ► that crowd it conveniently overlooks [TS]

00:52:02 ◼   ► that it's a really solid Tim Cook Apple [TS]

00:52:06 ◼   ► era success story [TS]

00:52:08 ◼   ► yeah BTW user behavior and something [TS]

00:52:12 ◼   ► that has to do with their wallet you [TS]

00:52:13 ◼   ► know their bank account for whatever [TS]

00:52:14 ◼   ► thats did say me hard [TS]

00:52:17 ◼   ► it's insanely hard and so it is it is [TS]

00:52:19 ◼   ► encouraging to see things like that that [TS]

00:52:21 ◼   ► theoretically you know could be big bets [TS]

00:52:24 ◼   ► I mean you know when people had the [TS]

00:52:26 ◼   ► inkling that they were going to get into [TS]

00:52:28 ◼   ► payments you know people saw that as a [TS]

00:52:30 ◼   ► as a very big business for them and I [TS]

00:52:32 ◼   ► think it's still you know it already is [TS]

00:52:34 ◼   ► so somewhat of a business another [TS]

00:52:36 ◼   ► Services category and could be a much [TS]

00:52:37 ◼   ► larger business in the future especially [TS]

00:52:40 ◼   ► if you know apples able to sell apple [TS]

00:52:43 ◼   ► pay through and keep up this kind of [TS]

00:52:45 ◼   ► growth but I mean it's the hurdles you [TS]

00:52:49 ◼   ► have to overcome when you're switching [TS]

00:52:51 ◼   ► over to something like Apple pay are [TS]

00:52:53 ◼   ► crazy you know i mean you got you come [TS]

00:52:55 ◼   ► to the counter and you're gonna pay with [TS]

00:52:57 ◼   ► your phone and you're not quite sure [TS]

00:52:59 ◼   ► where to put it and you're not you know [TS]

00:53:01 ◼   ► how far away and what part of this [TS]

00:53:04 ◼   ► credit card so i put it where the credit [TS]

00:53:06 ◼   ► card goes to put it over the keypad and [TS]

00:53:08 ◼   ► put it over some weird symbol that i'm [TS]

00:53:09 ◼   ► not familiar with to put on this clear [TS]

00:53:11 ◼   ► plastic part in [TS]

00:53:12 ◼   ► and people are embarrassed didn't want [TS]

00:53:15 ◼   ► to do that if the smaller people behind [TS]

00:53:17 ◼   ► them yeah it's still so early ways it [TS]

00:53:19 ◼   ► it's still so early days that usually [TS]

00:53:22 ◼   ► like when I go to like a place that just [TS]

00:53:23 ◼   ► like I noticed that they've upgraded [TS]

00:53:25 ◼   ► their point-of-sales systems and I [TS]

00:53:28 ◼   ► either see the Apple pay logo or I see [TS]

00:53:29 ◼   ► that little wifie looking logo that [TS]

00:53:31 ◼   ► means it usually works apple pie usually [TS]

00:53:34 ◼   ► works even if they're not officially [TS]

00:53:35 ◼   ► Apple pay yet you know that it just has [TS]

00:53:38 ◼   ► contactless you know a NFC payments the [TS]

00:53:42 ◼   ► Clark usually has no idea and I'll say [TS]

00:53:44 ◼   ► like there will be like how you going to [TS]

00:53:45 ◼   ► pay out so I'm gonna try Apple pay and [TS]

00:53:46 ◼   ► they'll say what's that [TS]

00:53:48 ◼   ► I mean I've had that happen and it i'm [TS]

00:53:50 ◼   ► not afraid to do it because i know you [TS]

00:53:52 ◼   ► know i am NOT embarrassed even if it [TS]

00:53:55 ◼   ► doesn't work and be you know I am NOT [TS]

00:53:58 ◼   ► embarrassed that I might know more about [TS]

00:54:00 ◼   ► how this works than that Clark but [TS]

00:54:01 ◼   ► somebody has to go first and people are [TS]

00:54:03 ◼   ► resistant to stuff like that [TS]

00:54:05 ◼   ► here's a funny thing this is true ok i [TS]

00:54:07 ◼   ► forget if I've mentioned something to [TS]

00:54:08 ◼   ► show before now but one of the places I [TS]

00:54:10 ◼   ► go that just added a new point of sale [TS]

00:54:13 ◼   ► system that that supports Apple pay our [TS]

00:54:15 ◼   ► the the state-run liquor stores here and [TS]

00:54:19 ◼   ► in Pennsylvania and there's very [TS]

00:54:23 ◼   ► consistently it doesn't work on the [TS]

00:54:29 ◼   ► first try every single time I put my [TS]

00:54:31 ◼   ► phone there have my thumb on the sensor [TS]

00:54:33 ◼   ► and it says card not valid or something [TS]

00:54:37 ◼   ► something's not valid used card instead [TS]

00:54:40 ◼   ► but if I just sit there and pull lift my [TS]

00:54:42 ◼   ► thumb and press it again it goes ding [TS]

00:54:44 ◼   ► and then I get the payment but how many [TS]

00:54:46 ◼   ► people would even think to try that like [TS]

00:54:48 ◼   ► did and every time every single time I [TS]

00:54:50 ◼   ► you right i just looked at the error [TS]

00:54:55 ◼   ► message and I thought well that that [TS]

00:54:56 ◼   ► error message makes no sense so I'm just [TS]

00:54:58 ◼   ► going to try again and I'd you know [TS]

00:54:59 ◼   ► didn't ask the clerk for help or [TS]

00:55:01 ◼   ► anything I just SAT I just move the [TS]

00:55:03 ◼   ► phone away moved back and now every time [TS]

00:55:04 ◼   ► I do it gets it's the same thing I [TS]

00:55:08 ◼   ► anything else on your penis penis [TS]

00:55:10 ◼   ► doesn't doesn't translate well you know [TS]

00:55:12 ◼   ► and others on earnings before my nothing [TS]

00:55:15 ◼   ► ahead [TS]

00:55:16 ◼   ► all right I let me take a break then and [TS]

00:55:19 ◼   ► thank our next concert good friends [TS]

00:55:21 ◼   ► longtime sponsor of the show audible [TS]

00:55:25 ◼   ► audible is the unmatched selection of [TS]

00:55:32 ◼   ► audio content everybody thinks of them i [TS]

00:55:35 ◼   ► always do i do I think of them is the [TS]

00:55:37 ◼   ► place you go for audiobooks and they are [TS]

00:55:40 ◼   ► the number one source in the world for [TS]

00:55:43 ◼   ► audiobooks but they really have expanded [TS]

00:55:46 ◼   ► to just audio in general they have their [TS]

00:55:49 ◼   ► own audio shows news comedy all sorts of [TS]

00:55:54 ◼   ► stuff you get a membership you go there [TS]

00:55:56 ◼   ► you can number one if you go to [TS]

00:55:57 ◼   ► audible.com / talk show you'll get a [TS]

00:56:00 ◼   ► 30-day free trial so they got 30 days [TS]

00:56:02 ◼   ► you can listen to everything you want at [TS]

00:56:04 ◼   ► audible.com / talk show but it's just [TS]

00:56:07 ◼   ► amazing how much stuff they have and [TS]

00:56:09 ◼   ► their stuff works on just about any [TS]

00:56:11 ◼   ► device that you have that can play audio [TS]

00:56:13 ◼   ► you can play audible stuff so even if [TS]

00:56:15 ◼   ► you have like an old ipod that used to [TS]

00:56:18 ◼   ► use like to workout at the gym or [TS]

00:56:19 ◼   ► something like that it doesn't have to [TS]

00:56:22 ◼   ► be like a smartphone you don't need like [TS]

00:56:23 ◼   ► a special app you can just download the [TS]

00:56:25 ◼   ► stuff to your by mac and think it over [TS]

00:56:27 ◼   ► to an old ipad or ipod or kindle or [TS]

00:56:30 ◼   ► anything like that that can play audio [TS]

00:56:32 ◼   ► and it'll work [TS]

00:56:33 ◼   ► audio content so great if you're [TS]

00:56:37 ◼   ► listening to meet sell you on audible [TS]

00:56:39 ◼   ► right now you obviously listen to all [TS]

00:56:41 ◼   ► our audio content you obviously listen [TS]

00:56:43 ◼   ► to really long podcast you probably have [TS]

00:56:46 ◼   ► more time on your commute or wherever it [TS]

00:56:49 ◼   ► is that you listen you want to fill it [TS]

00:56:51 ◼   ► with more good stuff go to audible.com / [TS]

00:56:53 ◼   ► talk show and you will find it so my [TS]

00:56:55 ◼   ► thanks to audible for sponsoring the [TS]

00:56:56 ◼   ► show remember that URL audible.com / [TS]

00:56:59 ◼   ► talk show and you'll get a 30-day free [TS]

00:57:01 ◼   ► trial if you haven't got one yet [TS]

00:57:06 ◼   ► here's some news and it's interesting [TS]

00:57:09 ◼   ► it's follow-up from last week's show I [TS]

00:57:11 ◼   ► had been Thompson on and I mentioned an [TS]

00:57:12 ◼   ► anecdote from a reader of the show and I [TS]

00:57:15 ◼   ► was a little nervous bringing it up [TS]

00:57:16 ◼   ► because i was like one reader who wrote [TS]

00:57:19 ◼   ► me this email but he convinced me it he [TS]

00:57:23 ◼   ► it really seemed like he knew what he [TS]

00:57:25 ◼   ► was talking about like it wasn't just [TS]

00:57:26 ◼   ► like he wasn't just spitting in the wind [TS]

00:57:28 ◼   ► but he bought the new LG ultra fine 5k [TS]

00:57:32 ◼   ► display the one that that Apple like [TS]

00:57:34 ◼   ► sort of code developed and it's the only [TS]

00:57:36 ◼   ► retina standalone display you can get [TS]

00:57:39 ◼   ► from apple right now is this is LG [TS]

00:57:40 ◼   ► models and he was having all sorts of [TS]

00:57:43 ◼   ► problems with it and for some reason it [TS]

00:57:46 ◼   ► occurred to him to try moving it and he [TS]

00:57:48 ◼   ► did and it turns out that moving it away [TS]

00:57:50 ◼   ► from his Wi-Fi router solve the problems [TS]

00:57:52 ◼   ► and I dimension this on the show with [TS]

00:57:54 ◼   ► Ben Thompson [TS]

00:57:55 ◼   ► well it seems like this is an actual [TS]

00:57:58 ◼   ► thing Zack hall wrote a story at 9to5 [TS]

00:58:02 ◼   ► mac person firsthand story where the [TS]

00:58:04 ◼   ► exact same thing happened with him where [TS]

00:58:07 ◼   ► he and in the problem was so bad it was [TS]

00:58:10 ◼   ► like actually crashing his macbook he [TS]

00:58:12 ◼   ► has his macbook hooked up to the 5k [TS]

00:58:14 ◼   ► display and it was like freezing is his [TS]

00:58:18 ◼   ► macbook he googled a little bit saw some [TS]

00:58:21 ◼   ► met people other people speculating [TS]

00:58:23 ◼   ► about this hey it's near a Wi-Fi router [TS]

00:58:25 ◼   ► his was near his Wi-Fi router so we [TS]

00:58:27 ◼   ► moved it to a different moved away from [TS]

00:58:29 ◼   ► from his desk and in the problems all [TS]

00:58:32 ◼   ► went away and any contacted LG and LG [TS]

00:58:35 ◼   ► said yet just don't use an air Wi-Fi [TS]

00:58:37 ◼   ► router this is crazy [TS]

00:58:42 ◼   ► I mean why would a computer ever be near [TS]

00:58:44 ◼   ► Wi-Fi around [TS]

00:58:45 ◼   ► hey it's okay i can't help but think [TS]

00:58:49 ◼   ► especially in a home office it's got to [TS]

00:58:51 ◼   ► be a frequent a common scenario you know [TS]

00:58:54 ◼   ► and anybody you know they're probably [TS]

00:58:56 ◼   ► anybody who's like lives in like a [TS]

00:58:59 ◼   ► studio apartment or something like that [TS]

00:59:01 ◼   ► I mean you may not even be able to move [TS]

00:59:02 ◼   ► it that far away you know it's kinda [TS]

00:59:05 ◼   ► crazy and it is insane [TS]

00:59:09 ◼   ► yeah i mean the just gonna be fine i [TS]

00:59:12 ◼   ► guess we know how exactly how closely [TS]

00:59:14 ◼   ► co-developed it was now [TS]

00:59:18 ◼   ► the the gist of this display i do not [TS]

00:59:21 ◼   ► have 1i have a imac here so I'm not a 5k [TS]

00:59:24 ◼   ► imax I'm not in the market for a [TS]

00:59:26 ◼   ► standalone display but I saw I've seen [TS]

00:59:27 ◼   ► the mini apple stores i saw them at the [TS]

00:59:29 ◼   ► apple event that you and I are at a [TS]

00:59:31 ◼   ► couple months ago and my impression my [TS]

00:59:35 ◼   ► first-hand impression of just looking at [TS]

00:59:37 ◼   ► it you know from a kick the tires [TS]

00:59:38 ◼   ► perspective was too gorgeous display in [TS]

00:59:42 ◼   ► a really chin see but at least [TS]

00:59:44 ◼   ► plain-looking case it doesn't it's not [TS]

00:59:48 ◼   ► an ugly i don't think they're ugly but [TS]

00:59:50 ◼   ► i'm not really not easy it's yeah yeah [TS]

00:59:52 ◼   ► it's not sexy like an apple product is [TS]

00:59:55 ◼   ► so I could be like wow that is I want [TS]

00:59:57 ◼   ► that that is gorgeous you move crazy but [TS]

00:59:59 ◼   ► the display call [TS]

00:59:59 ◼   ► the display call [TS]

01:00:00 ◼   ► all these excellent and that convenience [TS]

01:00:03 ◼   ► of just being able to plug in USB see [TS]

01:00:05 ◼   ► thunderbolt and just have it work seems [TS]

01:00:07 ◼   ► really great and but like you said it [TS]

01:00:11 ◼   ► seems pretty clear that the [TS]

01:00:12 ◼   ► collaboration with apple is not on the [TS]

01:00:15 ◼   ► enclosure so the chimpanzee the chin 0 [TS]

01:00:19 ◼   ► yeah and none of the shielding the [TS]

01:00:21 ◼   ► tenancy feeling and looking enclosure is [TS]

01:00:24 ◼   ► I've also gently shielded and and no i'm [TS]

01:00:28 ◼   ► not an expert on shielding but it seems [TS]

01:00:30 ◼   ► to me like this is this just emblematic [TS]

01:00:33 ◼   ► of why there's a practical reason beyond [TS]

01:00:37 ◼   ► just wanting to spend more money that [TS]

01:00:39 ◼   ► that a lot of us wish Apple were making [TS]

01:00:42 ◼   ► its own apple-branded 5k displays and [TS]

01:00:45 ◼   ► yeah i mean the answers that I got with [TS]

01:00:50 ◼   ► this stuff when I poked around you know [TS]

01:00:52 ◼   ► like why the heck not [TS]

01:00:53 ◼   ► you know you know is it's it's pretty [TS]

01:00:57 ◼   ► much as hard as designing an entire [TS]

01:00:58 ◼   ► system so why do it and it's late you [TS]

01:01:02 ◼   ► know we're not white doing is it's like [TS]

01:01:04 ◼   ► not that attitude that I got like who [TS]

01:01:05 ◼   ► cares it was more we have so many hours [TS]

01:01:09 ◼   ► in the day and this is like designing a [TS]

01:01:11 ◼   ► new imac so maybe we shouldn't do it [TS]

01:01:13 ◼   ► this time you know and maybe we should [TS]

01:01:15 ◼   ► put our efforts elsewhere and whatever [TS]

01:01:18 ◼   ► you could disagree or agree i'm not i'm [TS]

01:01:19 ◼   ► not a scrap i'm not saying yay or nay to [TS]

01:01:21 ◼   ► their POV but that's the that's the [TS]

01:01:24 ◼   ► input that i got and that's not through [TS]

01:01:26 ◼   ► official channels or anything so it's [TS]

01:01:27 ◼   ► not like a PR message is just a matter [TS]

01:01:30 ◼   ► of like it's really hard to build that [TS]

01:01:32 ◼   ► especially because of the the throughput [TS]

01:01:35 ◼   ► you know that you have to have to [TS]

01:01:37 ◼   ► connect to external displays and if they [TS]

01:01:39 ◼   ► wanted to do with the way that they [TS]

01:01:40 ◼   ► wanted to do it normally which probably [TS]

01:01:42 ◼   ► would have worked close to a Wi-Fi [TS]

01:01:44 ◼   ► router it would have taken them a lot of [TS]

01:01:46 ◼   ► time and money and manpower to achieve I [TS]

01:01:49 ◼   ► guess the money money is not really the [TS]

01:01:50 ◼   ► problem it's more the time and manpower [TS]

01:01:52 ◼   ► yeah you know taking something off of [TS]

01:01:55 ◼   ► mac's or another department to work on [TS]

01:01:58 ◼   ► on that or hiring people in training [TS]

01:02:01 ◼   ► them up through apple university and [TS]

01:02:03 ◼   ► blah blah blah to get you know to a [TS]

01:02:05 ◼   ► point where they are able to work on [TS]

01:02:07 ◼   ► those hardware products just they just [TS]

01:02:10 ◼   ► felt he couldn't devote the time to it I [TS]

01:02:12 ◼   ► guess I don't know [TS]

01:02:13 ◼   ► it's you know it's hard 1i you know [TS]

01:02:16 ◼   ► whether you want to fault them or not I [TS]

01:02:20 ◼   ► I don't know and obviously some people [TS]

01:02:22 ◼   ► do but for this for which is that they [TS]

01:02:26 ◼   ► have so much money how can this how can [TS]

01:02:28 ◼   ► they possibly be stretched thin on [TS]

01:02:30 ◼   ► resources and now whether that's an [TS]

01:02:32 ◼   ► actual emblematic of a problem in their [TS]

01:02:35 ◼   ► mindset that they're still at an [TS]