Did Apple's earnings blow you away? (The 3:59, Ep. 172)
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
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now we'll see you all tomorrow hopefully
rose screw it up as much today later
everybody
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