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Did Apple's earnings blow you away? (The 3:59, Ep. 172)

2017-02-01
hey welcome to febuary it's the first day of februari in the illustrious year of 2017 and we are here with episode 172 of the 359 podcast starring Ben Fox Rubin and Roger 10 good morning everybody what is on the docket for today morning morning uh no surprise room talking about Apple yeah again yes bye everybody bye everybody wait initiate your Apple hate comment there you go now Apple Blueway expectations with earnings there's there's no such thing as phone 14 I guess people just can't get enough of the iphone record sales will get there we'll go get there maybe not this quarter but we'll also well Saban amazon and their new air cargo hub and why we should care I hope this just means that my cat stuff faster yes all right yeah and lastly we'll be talking about Nintendo and whether or not super mario run ran away with our hearts stick around everybody it's gonna be a lively one yep as always if you have any questions leave in the comment section Brian will pick up the best and we will answer them in four minutes or less all right do it stick around we'll get this recording out of the way and we'll see you guys in the chat shout at the tile and shout out the Kenya shoutout to everybody joining us from all around the world this morning and we'll talk to you in just three minutes and 59 seconds from 32 welcome to the 359 when we talk about the top tech news of the day another other crap we throw why did I screw that up hey you know what going man man's looking at me weird dad you threw me up all right let me just do that again work it sorry guys it's only been in three two welcome to the 359 when we talk about the top tech news of the day all the other crap you want to throw in I'm Roger Cheng I'm Ben Fox Rubin so much for iphone fatigue despite the fact that the iphone 7 looks pretty much like the previous two models customers couldn't get enough apple sold 70.3 million iphones snapping a three-quarter streak of declines like the bigger iphone 7 plus was particularly popular and really the numbers are just staggering here 18 dollars in profit 70.4 billion in revenue uh wow it's the blowout records records record yeah yeah and it is pretty impressive it's not utterly surprising i remember with the iphone 6 everybody was like falling off of their chairs because the numbers were like absolutely outrageous so that continues to be there really really big blockbuster quarter but this is still sorry the huge jump was absolutely attributed the fact that it was a big leap from iphone 5s 26 right nigger phone new design new features uh they weren't there wasn't that huge upgrade with the success to the seven right and yet yet they still sold a ton of them uh and and they continued to show some some pretty strong strength I up what is it profits were actually a little bit down because I think you're decorating expenses were higher yes but on a per-share basis actually still still and we are getting business wonky get pretty wonky but from an earnings on a per-share basis they did extremely well they they actually topped expectations and topped records so overall really good year and serve it's not just the iphone right services services the services business I've been paying attention to that's been a bright spot for them services include applecare iTunes and that's been growing I pretty is excessively yeah Apple music Apple pay also it was up eighteen percent year-over-year in the past quarter and this is while the ipad sales continue to really be sinking so yeah this is pay attention there's been you know there's always this talk of the the three legs right words iPhone Mac iPad it looks like actually my service gay yeah it looks like with iPad syncing with no one really caring about ipad Jenny more services sort of picked up the slack so no ya go good for them next amazon planes to build out its first-ever air cargo hub in kentucky spending 1.5 billion dollars to make it this shows that they're really ambitious about expanding their shipping and logistics good news for you Roger this means you're going to get stuff even faster than before that's why you should care about yeah how's that how's that affect me like is it does that mean that uh I'm gonna get more options for prime or like I think the idea fast even faster than two days if if anything it'll at least ensure that things won't slow down amazon continues to have this problem where they just have mountains and mountains and mountains of more stuff that's getting shipped two day shipping through prime that's like this they're they're blockbuster service and to make sure that they're you know going to keep going with that they need to do something like this also we wanted to get to nintendo they said super mario run had 78 million downloads but a mere five percent of users coughed up the ten bucks to get the full version of the game that's well below yeah what the company expected they got my ten bucks they got mine too yeah but think of it is it's sort of a one-time pop right like I don't play that game anymore I don't know anyone who does so if they were hoping for new users to keep trying i don't know if that's really the case right because it sort of everyone sort of moved on to the next game yeah yeah I guess so they they still made 53 million dollars from it but it's not like a one-time bump right like right not like people are gonna keep paying the planet oh no but we'll we'll see if they keep you know as they build out their mobile portfolio maybe they'll that'll keep expanding i I hope they do but yeah there wasn't it wasn't as much as I think they were a big they definitely make slick games I do hope they continue with their mobile initiative super was good but it did have a shelf life to it yeah all right for more of these stories check us out on cnet i'm roger cheng I'm Ben Fox Rubin thanks for listening and thanks to everybody for sticking around in the chat we're gonna jump right in because Matthew in the chat has said nothing apple has done has blown me away for quite a while yes he's not alone sounds like he's been listening to the podcast because we certainly would agree with that as far as innovation is concerned we've we've heard from a lot of you know long time Microsoft people that they really like a lot of like what Microsoft has been doing lately related to innovation and and yeah like what would have they died i brought this up on twitter yesterday it turned out to be a bit of a controversial topic like i made the point that last year if you looked at some of the companies that did try to go on a limb with innovation LG motorola with sort of modular phones those phones in do very well Apple comes in basically takes the same body you know as in a bunch of new upgraded internal parts but specially the same phone and it does it does gangbusters right right so what does that say for our army were constantly talking about the need for innovation the need for innovation and new things but people like familiarity pole like they're both what they don't listen to your customers or pundits apparently i mean like we'll see how long that lasts right that whether that's familiarity lasted that that kind of that factor will people like tolerate the fact that it's the same phone year after year yeah and what it probably won't be obviously i think apple is gonna have a big big upgrade for the iphone 8 or iphone extra wherever the hell and there are a lot of very obvious upgrades that they could do a lot of the rumors that we're hearing about that it's just like the entire front of it is going to be an all glass yeah display they're gonna get rid of the the home button so there are quite a few things that i think fans would would really be excited about but even that are cheaper sounds underwhelming it's like ooh was but i think that would make the phone look really interesting and you would get a much bigger screen it's better in the size on bone as of late okay job but it's so kind of like hmm you know what the interesting argument i think people would like like go crazy if they see you on the call demotius that car call out to the chat would you be excited about that all glad i think no I think that's gonna be the trend for this year you're seeing it with what we've seen with the leeks with LG I think Samsung's kind of rumor to do the same thing everyone's we saw with the Xiaomi me mix already yeah the big trend this year will be kind of ditching the home by the physical home Bon the front and getting bigger glass rounded glass that seems to be for whatever reason people really obsessed or the manufacturers are really obsessed with like the rounded glass screen I don't know if that really makes a huge Samsung started off with and now we're not girls not the edge that's knowledge it's just sort of like a round glass screen like with rounded edges that's it then so like the idea of it sort of creates it's like seamless look to the bezel like an infinity pool something like that bitch I tell you I tell you what Apple's been innovating they're counting books oh yeah oh yeah they're uh hey the process just keep going up higher and higher and that's coming from a couple of people who are slightly underwhelmed hey Matthew also says he's interested to see what they're gonna do with the next watch yeah I think that that's gonna cut make a watch that's gonna come sooner you know what the Tim actually Tim Cook made us a lot of positive comments basically saying like record sales an Apple watch couldn't make enough of those things for the holiday season I'm always got to go when they don't actually provide the number i know III record David they sold five instead of four last year I I've certainly seen a lot more Apple watches out there yeah we're like you know regular people that aren't like super tech obsessed definite during the holidays Lee I saw like a handful my relatives had them these are non techie people they had their Apple watches they were using it like normal so it's it's starting to get out there yeah it is you know what I'm actually seeing a lot more of like surprisingly are the air pods as we say the gear s3 yeah nobody no you see and it's partly because the air pods are you know this new look so yeah very easy to identify yeah I axial it like actually I see some guy on the train yesterday I was like yo you've gotta earpods what do you think of them and he was like I just got them today sorry I can't tell you anything yet I was like final oh I know what if you asked in tomorrow everybody lost them don't worry I can't get you to be an applecare aagam so back in the chat david says if they put an all glass display in I'm ditching my SE for an eight okay and following up phone King says yes all glass 5.8 inch screen so I don't think it's gonna be all glass like it's it's almost physically impossible but I'm willing to bet there's gonna be like a thin very thin frame around it it'll look I think it'll look nice but it's not gonna be like this I think that's a manufacturing flaw if they try to truly make it all glass you're just all glass brought ya for trouble so this is also still gonna put a case on it this is this is also more speculative but with the iphone 7 obviously this is the biggest quarter that they always have is their first quarter yeah but what is going to happen in the next three quarters for the previous year they those sales kept thinking even though their first quarter last year was better than the one before that so first quarter is always good but we have to pay attention what happens the rest of the year if especially not has to go ahead I definitely think we're gonna see a repeat of last year where sales will decline year-over-year just because yeah everyone hears the rumors about this super awesome new iphone that's coming out and that was the same expectation that was built in last year I'm in a baby iphone 7 but this year this year I mean even Apple has sort of telegraph like this is the big upgrade this is the big 10 year ago anybody that can wait we'll probably get so your night Anna see so so there is still again this is all a lot of this depends on upgrade cycles right people it's not like I can go turn around just go and buy an iphone right now like I'm on yeah if I'm like most people I'm on a contract or some sort of two year program that allows me to upgrade after that time so I can upgrade now anyways that's why sales tend to drop you'll see come for fiscal first-quarter for Apple or the the holiday quarter for us people are gonna have their contracts up and they're gonna start our great regardless of whether or not the phone is the end-all be-all it's just this awesome all glass miracle or could just be just you know like they're making the same yeah i could just be so your song people buy it people will upgrade because they're kind of locked in right they're like well i have an iphone i'm using my iphone i mean this new one isn't that new but this one's getting old so I'm gonna upgrade right yeah right after two years you're gonna want to upgrade your phone right things just in general don't run as well as I used to it's yeah in in general i have an iphone sex i put a new battery in it works just as good I don't really like whatever what is it called force touch or yeah 3d touch 3d touch forest touches for the watch or four star wars just exhausting I'm sorry I'm gonna keep this iphone 6 for now we'll see what happens in September oh poor poor phone King in the chat Apple watch with the sim card mmmmmm sorry sir I think it will happen no would have it will totally then you're gonna have to get a plan oh my god you're gonna happen will happen it's just not gonna happen right away what happened for years no no it'll happen in like a year it's not so not sooner I hope rising at Yoli would love that of everyone wants apple absolute wants to have a complete independent watch your gonna wait okay here's what its gonna happen they're gonna wait until uh CBS launches their new Star Trek show so that they can do a communicator sponsorship tie-in Oh God very nice synergy right there there we go brought to you that's why I the way as a joke joke that is not doing that i'm not paying our salaries have to clarify that once again thanks Brian wait CBS CBS is paying our salaries but Apple is not let's make that clear look the Apple II want everyone in the industry wants a sim card and watch the only problem is battery life and the size of the watch it's just too bulky right now it doesn't look great right this this is this has a sim card look kind of bulky my arms are a little frail so this looks kind of weird on me but Apple I think apples cognizant of that and I think they're waiting for the designs the technology shrink down so it can actually get it and we will get there yeah we will not worry phone can I think it's gonna be sooner than a couple years it's if not next year me even later this year meanwhile the tablets are kind of out in no man's land however interesting perspective from qui lang iPad sale is so flat because it's so good three-year-old iPad is still better than the most current android tablet that's true there's no upgrade that's the thing right it's not like an iPhone we've got which is why Apple's tearing their hair out no we need to make it crappier like it needs to break after two years is it just yet this combust basic they are gonna just start putting like miniature explosives in right and following the Sam site you see what they're doing right there trying to make it bigger they're trying to make it smaller than is like a keyboard all these features that no one cares man what is the a comparable premium tablet because as a commenter mentioned you know what other tablets are out there as far as like that top top tier up here I mean it's absolutely a little while but Alan but it's really if you wanna I mean you're gonna pay for it but if you want top-tier tablet you've got apple and that's basically when you're gonna keep it for like three four five years my experience at biggest market for tablets is your annoying kids at the dinner table mm-hmm yes but I use Amazon tablets because if they fling them across that's okay another 50 bucks and get anyone I'm not giving them and I mean yeah the other factor with ipad sales is you know the pc like windows tenants or to come back up right your people are buying laptops with touchscreens that can fold into tablet so why get an ipad mmm precisely yeah i thought that was kind of an inevitable thing right like the tablet was a fun idea but it was lacking and now that they can make the tablet itself a little more robust a little more well-rounded of the experience goes broader Ragus I don't know I like I would attract me more I like the iPad for what it is i watch movies on it a couple games browse the internet read a book yeah that's it and then I don't feel need to upgrade because the tasks are so simple yet I have one and I don't need I need I don't need to get a new one every year two or three years even when what another another premium tablet that I didn't mention is the surface but right course course it kind of fits into the laptop does that serve for me that falls and I said category of PC hybrids right right so yeah David wants to follow up with that is when do you think apple will update the ipad the ipad in general no specific lineup no proair whatever take a pic i would say they are overdue yeah i would say earlier this year when was the the big iPad pros upgrade cycle a year ago that was the year they introduced a smaller iPad pro okay and then the original iPad pro is I think the fall of the year before 2014 unless they make it like foldable and I can stick it in my pad and I'm willing to bet probably sometimes first quarter early second quarter we might see an update that watch in the ipad in the comments we gotta wrap it up soon but drop your ideas about what you think the innovations coming for the ipad and the watch might be coming down the line as this sure the phone but we've already talked about the phone and detail i'm curious to see where people will take it with the tablet and the watch we got people asking for a camera in the watch samsung tried that at first it just seems awkward I don't know Scott's Don head around the office city like he ran in my office is snapped a photo of me and it just was like the creepiest like that's not cool and you know our legacy is better remote capability so you put your phone on a tripod on the other side of the room I need to take a selfie like a quality cell Oh be able to watch yeah i'd be down for that yeah but that's like that's a nap I'm like ever that's a software upgrade new piece of work but to my knowledge that doesn't exist as of yet I maybe I don't know try that I don't I don't you just read a portion have a watch yeah no neither do i yeah only skinny arms McGee over here that's right alright let's wrap it up there but not before a special shout-out and dedication for a man in the chat Christian go on after 172 episodes of the 359 has submitted no less than a baker's dozen of I want to punch Roger Cheng in the fast hey where Christian the hero brave right stroll if I'm on the straight face well no it's you we're calling gonna high-five all right if you like day that you saw hurt here took us out on cnet com our podcasts also available on iTunes tune in stitcher SoundCloud feedburner and google play music and oh you already said cnet com we had a good rhythm by now we'll see you all tomorrow hopefully rose screw it up as much today later everybody you
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