Will Apple drop hints about the next iPhone in tonight's earnings? (The 3:59, Ep. 434)
Will Apple drop hints about the next iPhone in tonight's earnings? (The 3:59, Ep. 434)
2018-07-31
welcome to the 359 I'm Roger Chang I'm
Ben Fox ribbon apple Post is fiscal
third quarter results tonight and we're
actually just looking for clues about
the next iPhone I could I don't really
care about the results and if that just
us not because we're seeing that even
Wall Street doesn't really care that
much ultimately this is that weird
period you know it's after the last
iPhone launches before the next one's
about to launch so everyone's sort of
like this is the kind of dead period for
Apple mm-hmm what we're really looking
for our potential hints on the
conference call
you know apples typically mum when it
comes to new products but you know Tim
Cook and and some of their executives
have dropped hints in the past so we're
hoping we make some sort of confirmation
that you know we're looking at three new
iPhones potentially so the expectation
would be that like you know the CEO
would say something along the lines off
we're really excited about our future
roadmap or we're really excited about
like I don't know sometimes he even
mentions Lee virtual-reality
you're right he drops you talked about
VR talks about a are he you know he
might drop a hint about how many iPhones
are how many new products we might see
it's a bit of a wishful thinking thing
but who knows yeah Nintendo meanwhile
continues to rake in the dough thanks to
its switch in 3ds unit while unit sales
slipped for the switch just just barely
video game sales rose 121 percent over a
year ago
I wish we had Alfre here to talk about
smash and his love for smash but clearly
the switch is still it's still got a lot
of momentum behind it look the switch is
ahead and it's one of those products
that doesn't really seem to make sense
on paper or even when you look at it the
first time Nintendo lab oh when I first
heard about it I was like this is a
stupid idea
and they've proved me wrong lab oh by
the way has sold 1.3 nine million units
it was so-so my cardboard its cardboard
that you fold my nephew has lab oh and
it's kind of addictive and it's kind of
fun and they make it really like goofy
and enjoyable and Nintendo has obviously
done a really good job of
differentiating in the market for
decades
by being goofy ER and more fun whereas
like Microsoft and Sony their games are
like so many of them are
dark shooter game look there are
hardcore games that the graphics are
better the experience is more immersive
they're definitely for hardcore gamers
the switch has appealed to a broader
base just like the original we did
really appeal to a broader base of users
the idea of going mobile which we kind
of laughed at initially is actually
pretty smart like he seed tons of people
in the subway in the Train yeah plenty
we say yeah and it's way more effective
than Super Mario run which was like the
other mobile effort right I played that
for a while and wasn't that into it
you mean Super Mario run anyway lastly
movie pass just got a little bit worse
the company announced today that would
raise its $9.99 monthly fee to 1495 as
well as limit access to new major
release movies during the first two
weeks of the run that makes this thing
pretty worthless right no that's not
that bad what do you wait so if you I
mean like Mission Impossible came out
this past weekend you couldn't watch it
you're limited you you'd have to wait
two weeks before you could actually
watch the film I guess I'm not at all
surprised no no the whole setup was too
good to be true
I knew there was a shoe that was gonna
drop at some point right it's just like
I I think they were alike losing money
so quickly yeah they're they're
basically their business model a lot
them to lose more money as they grew
customers it's like the opposite of what
you should be doing yeah they're like
they're like oh movie industry you guys
are so stodgy and old we figured out a
brilliant way that just give things away
for free that's literally the plot of an
episode of Silicon Valley
yeah like their Pizza app thing they
were losing money on that but they were
growing customers so it's all good I
think people still love movie pass maybe
less oh now so we'll see if the cult
excitement for them I have to imagine
people are gonna want to log off with
movie pass at this point so and again
the AMC offers its own alternative now
so if nothing else at least movie pass
spurred the movie industry to or the
theater industry to make some changes
yeah I have more the story should sound
CNET I'm Roger Chang I'm Ben Fox Ruben
I feel sitting
all right as always thanks everybody for
joining us for the recording of the 359
audio podcast for one it's Mario all
right thank you you know what guys don't
change me it's a cyber bullying Mario's
it's not cyber bullying when I'm in the
same room as you okay that's true
so so technically in the same room we
had to look it was kind of business it
don't ruin the illusion for everybody
out there watching sorry so it's time to
go ahead and submit questions in comics
about today's stories and topics at hand
I just love that you made the comment
earlier that oh what did you say about
Nintendo and like the switch sounding
like a bad idea on paper yes and then
their answer was like okay here's a
bunch of paper
here's cardboard yes sorry boys pay for
this cardboard play videogames with it
yeah no but it's it's I've spent a
little bit of time with Nintendo Lab oh
I played like this like fishing game
fishing game yes someone who spends well
not as much anymore spend time you know
with model kits and things like that
like I appreciated that the fact that
you can you take this cardboard could
fold you actually construct your own
video game accessory that was kind of
cool like so yeah it was it seemed like
a ridiculous idea for labo in particular
but like the more I thought about it
more like this is actually really
brilliant yeah it's just for Nintendo
and and not to be like too much of a
debbie downer on this one is is that the
Wii U was another one of these concepts
that was different and interesting but
didn't work so the switch is a success
obviously the 3ds has continued to do
well but Nintendo has to keep finding
ways to innovate because it kind of
represents a different part of the video
game market so what comes next is gonna
be the big question for them but
ultimately right now they're sending
very pretty yeah I think the what comes
next question they have sometimes with
this answer it because the switch has
some decent runway
while and so and they just you know what
they did with good games right the the
first year of games is probably like one
of the best video game lineups yeah
first year video game I was ever for a
console yeah they had Odyssey right had
the wild yeah the Zelda game the Zelda
game I was afraid of mispronouncing the
Zelda game too I'm like all right it's
all de Zelda I'm from Philly
oh but going back to what you were
asking me earlier about movie past yeah
I don't have a movie pass by movie
passes one of those interesting things
where if you have a card you like to
show it off like one of our interns says
yeah one of our interns got a venmo
debit card and it's one of those things
where they know a few people have it
yeah yeah so a few people have it that
they're like check it out you sure like
having a be watchin you sure they
weren't just showing to you cuz you're
like the e-commerce to them oh god that
might be one of the reasons but either
way I think movie paths like I'd be
really surprised if the internet came up
to me it was like hey check out my venmo
delicacy if it happens after the show
I'm not sure anyway let's get to
questions yes Ryan with any questions
how about we talked about Nintendo first
just since it's all fresh in our
memories I'm a Nintendo switch guy I'm a
late adopter but I received one as a
gift earlier this year I absolutely love
it it makes my otherwise miserable
commute go lightning fast so I am stoked
to see that it's doing well it's I mean
it makes us all forget about the Wii U
was a good thing let's talk to while
syringe Joyce says since Alfred is
absent is there any hype for Dragon Ball
Fighters e coming to the switch in
September it's got to be the next
headline I myself have seen a lot of
pre-emptive buzz from some of my
favorite gaming YouTube channels
floating around out there
Roger you and I have talked about anime
a lot in the past are you a Dragonball Z
guy uh yeah I mean I I watched it when I
was younger I totally played the game
once with Joey and he killed me so I
found the game a little too maybe I'm
just getting old but the game was like
way too fast pace and frenetic for me I
couldn't really figure yeah what was
going on as I was getting my butt kicked
also I think it was on a play
station control and I'm an Xbox guy so
it was kind of hard - this is pretty
funny games wrapped around a controller
it was I kind of felt like it was very
similar to like Street Fighter in like
the way the character and I do like I
mean I appreciate because I recognize
most of the characters aside from the
the new super anime I did appreciate
like how many characters they jammed
into that game it was kind and they all
they seemed to play differently yes I
don't know it's hard for me to really
figure it out since again I was just
choose again but I I played Alfred and
oh geez yeah I can't do that yeah he
absolutely crushed me if you win you
play Alfred he just sorta have to like I
would probably request that he have a
blindfold on or something some sort of
handicap cuz he would destroy me
no he eventually felt bad for me because
I was crying very good at pity this is
one of my strong suits
but yeah I'm I'm not I'm not personally
looking forward to Dragon Ball Z
firefighter Z on the switch just because
it's been out there but I'm sure there
are a lot of folks who are so kudos to
you Matthew Dodgers asking if he should
invest in Nintendo once again first time
since game cube that's exactly how it
went for me
I loved my Gamecube still do still
somehow kickin and everyone in the chats
telling that you're good ass which I
would agree with that I am no authority
to endorse this is not some kind of paid
sponsorship it's literally the only
thing that keeps me sane in the morning
before I have to come and do this
hellhole let's speculate though what do
we ever think Nintendo is gonna go for K
that's one thing for it's like very
serious gamers it's that to hold up yeah
yeah it's I mean they don't have to
right now I feel like they've they've
had they've they're on this like
incredibly strong run and they haven't
needed to go on they haven't needed to
like hit the same marks as all the other
console makers in terms of like graphics
and sound so 4k I don't I'm assuming
they'll get to eventually but it's it's
not a priority yeah at this point it
doesn't really lean into their strong
suits which is you know stuff that's
cartoony like I haven't spent that much
time with breath of the wild and like
that one looks a lot nicer than Odyssey
Odyssey is disregarded it doesn't need
four camo
exactly
it's a gorgeous game regardless I'm
knee-deep in breath of the wild right
now myself and I'm so far I'm totally
addicted and I was never a big zelda
game or growing up so that's a that's a
gift for me from CERN joy which
company's financial report was more on
the positive and shows that has
reemerged
in competitiveness nintendo or AMD oh
did you see these results no I haven't
seen AMD's results specifically but
serene joy is right that AMD was
basically left 4 dead years ago and then
has somehow been able to resurrect
itself
amid like you know just basically a
surge in chips in general they also
benefit from all the the cryptocurrency
modules that more in video I'm not sure
but like anybody that does GPUs right
now like is getting an upswing for a
variety of reasons crypto cookie I know
Intel had been sort of you know they
were dominant and they had like the the
superior process for a long time but
last couple years AMD has had some
fairly stellar products right they've
done much better and yeah they were they
were just kind of like flagging and
limping along and it's been interesting
to see how they've really like surged
ahead I mean like I don't cover chips
anymore but they were a real non play or
three years ago when I was covering
chips oh yeah meanwhile Qualcomm not
doing so great but in terms of I mean I
can't speak for Amy's results I will say
like Nintendo's results were strong and
shows that still has a lot of momentum
there's they won over a lot of I think
both old and new users or fans with the
switch come in from mark dybul I'm glad
durability is a focus nowadays paying
$1,000 for a super-thin technology is
just so doable its thickness with a $20
case just as an appealing I'm with you
110 percent and I think most everybody's
with you 110% on that we'll see if they
ever figure out the batteries but for
now yeah it's nice seeing so much effort
being put into Gorilla Glass and being
that that is from my stomping grounds
it's kind of nice to see the Commerce
come out of there too
Oh morning Gordon yawning it old Goodell
Corning yeah the whole like smudge-proof
super-strong glass thing I mean they're
still like not unbreak them and there
you can still break them but yes it's
nice to see that that's just this show
is like reminding me of my old beat-up
recording and yeah but yeah like the
recording folks have a lot of you know
very important documents and and studies
to show like hey this is this is how
much stronger our classes and this is
how much work we put into it but
literally any Corning story that I ever
wrote the comments would get overwhelmed
by people being like yeah well my phone
broke yeah morning Gorilla Glass stinks
so like it's not invincible and somebody
will eventually drop their phone and
break it so yes still be careful
here's another one from sprack 'full who
says they're hoping that they're going
to do something soon with the Mac air
can't afford the pro at least upgrade
the processor we we've been talking
about this since the last air came out I
don't know why Apple's not answering the
call on this one I know we're supposed
to be talking about the phone but this
isn't not related
what the hell Apple where's our next air
yeah well I don't they they still sell
them that's the thing like they're
they're still people are still buying
Mac heirs without any upgrade so I feel
like they they're busy kind of pushing
folks to the higher-end models that are
upgraded but you know if you have if you
want one you can still buy like it's
it's such a low priority for them like
they're you know they've talked about
the Mac Pro upgrades they've done
obviously the MacBook upgrades but the
error is just it's like frustratingly
just there and I don't think it'll
eventually happen it's really the last
thing that Apple did really really well
and they don't need to replace right
away but it couldn't hurt him either
well that's the thing like it costs
money to redesign or to add or upgrade
parts and if they can self-existing one
that's like definitely way way too old
and continue to generate the same
profits that they're generating like
one day right like people were so buying
them if they're not there buying the
more expensive mac books which are
higher margins anyways so I think
ultimately it's a business case they
it's just not a priority like it's yeah
you put over you bring up a good point
to is that with older parts for the
macbook air even though it's a cheaper
device they get better profitability and
if they upgraded it added some new parts
into it just you know even a holy bunny
even put money into R&D right like
they're they're clearly not putting that
much money into the air research yeah I
hadn't thought about that
you're right that it's it's ultimately
that's a dollars and cents type of thing
they look at it and say we can make
money off of this product at $999 but if
we upgraded you know we would make less
it was yeah poor guys and you know
really apples hurting these days yeah
they should they deserve anything like
that either by generates 160 percent of
this revenue I think and then a bulk of
the rest of the revenues coming from
services and like the Mac and the the
whole computer line accessories it's a
lot smaller now than it was in the past
so it's just it's not a priority that's
not where they're putting their
resources yeah the other point too is is
that with the iPhone 10 there were so
many concerns going into last quarter
that the iPhone 10 wasn't gonna do well
there were all these like you know
signals and flags from suppliers and
then ultimately they still ended up
doing really really well so well I mean
really really well is I think a
subjective term cuz I think people were
expecting they kept using the term
supercycle right everyone was gonna go
and upgrade to this new iPhone 10 and
that that didn't happen like the results
were good but they weren't I think as
amazing as people were expecting hmm and
so I think we're gonna see it more the
same like they look they their results
are so killer they sold like 50 plus
million iPhones last quarter you
probably see a similar number this
quarter in those are numbers that any
other company would kill to have but for
Apple they kind of live on this
different standard mmm-hmm Roger you're
rocking the iPhone 10 right I I am what
has been your takeaway from it we're
over a year into it right has it been
that long I've come
it's been about half year okay yeah I
came out in November I believe I think I
got mine late November working at Cena
is a black hole I have no idea so what
is your takeaway then so far and what do
we speculate maybe is the the things are
they're going to learn from the iPhone
10 and the iPhone 8 but mostly the
iPhone 10 that's going to push forward
what the velence do we think we're going
to see and what the hell are we going to
call the next one iPhone x1 oh god
please don't
X - 1 don't like a final fantasy type
naming scheme X - 2 I don't know anyways
horrible I don't know what they're gonna
call it in terms of what I'd like to see
I mean I would say the the facial
recognition thing isn't isn't super
reliable it's far less reliable than
touch ID was in terms of like getting
getting you on to the home screen faster
when it works it works fine but it
doesn't work all the time it doesn't
work when you're like horizontal mode
there's there's certain things that you
can do like with touch screen you just
you can touch it when you're when your
phone's in the pocket pull it out of
your pocket the majority at the home
screen I mean it's not gonna happen at
least this year but I'd love to see them
bring back the fingerprint reader in the
display you know I was down in San Diego
a couple weeks ago to look at their in
display fingerprint reader worked
incredibly well and it's integrated
welcome its Qualcomm's I also I also
took a look at these so the optical one
that that's in the Huawei Porsche mate
phone that worked pretty well - and and
doesn't take away from the need to have
like bezel or anything so I'd love to
see that it's not gonna happen I know
it's not gonna happen but I would love
to see the fingerprint reader come back
as just a second alternative because the
facial ID thing face ID doesn't work as
consistently like as I would like that
being said how soon do you expect to see
it and like an Android phone cuz like
they're already in Android phones okay
so it is in the hallway what about like
a flex huawei sorry Huawei what about
what about like a flagship Samsung phone
so the the technology that I saw a
Qualcomm two weeks ago you should check
out the story look
the link in the YouTube posts that is
most likely going to end up in the the
Samsung Galaxy S 10 Samsung has declined
to comment Qualcomm won't comment on it
but it seems very very likely the CEO
the mobile CEO of Samsung has hinted at
what's known as ultrasonic technology
for a fingerprint reader and that's the
technology that Qualcomm was was showing
off when I was down San Diego two weeks
ago so if we were to see that happen
that would be in March yeah which is
usually when they release it yeah we're
March ok yep all right so lightning
round you say February or March what
about this September are we gonna see
anything to September I mean we'll
definitely see something from Apple in
terms of iPhone in just a few I think
next week we're gonna see if the Galaxy
Note 9 so we'll have a lineup a fairly
big phones coming out in terms of like
fingerprint reader stuff that's that's
probably next year but well I'm sure
we'll see some innovations from Apple
also they probably expecting to see the
pixel 3 right that's right sometimes
right time in September or October wow
that feels like it hasn't been very long
since the two came out I know of course
none of them have much of a turnover
anymore
bring back the headphone jack it's not
happening Google all right lightning
round so you say you like the facial
recognition is that or you you struggle
with your fake facial recognition is it
because it is flawed or is it just
difficult to adapt to no it's I think
it's sometimes just it doesn't it won't
read you correctly whether it's dark or
your face is scrunched like I noticed
when I'm in bed laying down and it
doesn't really read my face for some
reason when I'm my face is and scrunched
up against my in my chest again if
you're looking at your phone in
horizontal mode or in a port landscape
mode it won't read your face you have to
be in landscape or tread mode for it to
work you know with touch ID you just as
long as you touch that one spot you are
good to go so I felt like there were a
lot less rejections with touch ID and so
if nothing else if they improve face ID
so it's a little bit more folks a little
bit more accurate and reads a little bit
better I'd be pretty happy with that
right and this is a first-generation is
face-i and the first touch ID was not
great like it was not as reliable as it
is now it got better over subsequent
generations I can only hope the same for
face ID but the elephant in the room the
essential question we often ask is it
better than a face I'm not gonna touch
that what can I answer that yeah what
what Brian what the hell man what that's
what they marketed it as hey I guess no
seriously you've seen the damn thing the
the the oh shoot now I forgot the maker
hang on
talk amongst yourselves I gotta look
this up hey that's it how are you I'm
great I'm busy Oh see around this
question have either of you guys used
movie pass
oh we're switching switching subjects
really quickly well no I haven't no I
was tempted to get it early on but like
it happened when I like they launched
when my kid was fairly young we weren't
going to movies we weren't doing
anything so it just didn't seem like it
make sense to me like that deal back
then now would be great now them because
it'll be older and we can go a little
bit more but now the deal is like not so
great anymore it's not that attractive I
have 15 bucks and like you can't watch
the movies you want to watch for the
first two weeks I have some co-workers
that have it that like sit behind me and
then showed you the card like here's
yeah yeah yeah check it out I get that
I'm a card-carrying movie pass person
another way the way they talk about it
there they're acting like it's like a
going-out-of-business sale where they
try to load up on as many movies as they
can because they know like this door is
closing very very right and then the
whole like I know the when they start
restricting repeat viewings that was a
really big blow because I mean I
remember our colleague Restivo was
talking about how like he'd be able to
watch multiple movies over like he
watched one movie that he'd like over
and over again and it would just be a
thing like because he it was free so he
would just go how is it sustainable
you're paying $10 a month it's not
sustainable
that's what happened one movie ticket is
more than $10 a month like it's too good
to be true and good for them for
generating a lot of excitement and
interest in the market but like it's not
a business model no like I said if
else they they pushed AMC to come out
with something similar and so much more
limited much more limited and I think a
little bit more expensive but it's still
a decent deal relative to just for folks
who really want to watch movies on a you
know hire frequent basis like it's so
they at least change the industry if if
they don't actually survive at least
they've left their mark its and I
totally appreciate the fact that like
movie ticket prices have just been
creeping up yep forever you know back in
my day movie was a nickel it was
actually like a hundred years old the
truth is that I with with like a high
school student ID I would be able to get
like five dollar movies which yeah right
you know so now now remember we had
dollar theaters actually I think they
showed like older movies I'm so old
we're talking about this how are we
talking we're talking about how much
movies cause it sounds like well this
was like a Chinese real movie theater
and it ran movies that were like three
weeks four weeks old I just feel like
talking about how much movies cost when
you were younger is like my ultimate
yeah right right did you figure out what
you're looking for yeah I think that's
the Oppo find X I don't know why I
couldn't remember the name cuz the last
one was that fine seven but it's this
thing you remember they came up with
their own facial recognition and then
they decided that they were going to
call it Oh face sorry I missed that
yeah I thought you were you know that's
right those lost in translation things
that you know it's a Chinese company
it's a phone that's marketed towards the
Chinese market you know they they don't
have I mean I don't think they're
familiar with Oh face well it is like
and that's from a movie from back in the
day and that phone is not yeah it's not
market in the US like you can't buy an
oppo phone here so well done man I
thought you were making a reference to
that to office yeah the office space and
I just didn't want to touch that no no
no no there was actually like a
technological story
I think ayahs is working on like top 5
about like worst names in tech I gotta
go tell them oh hey well I think I think
I as is aware of Oh face mm-hmm okay
before we wrap it up for the day from
Sur enjoy one more time do you think the
switch started a new chapter in mobile
gaming now the razor phone and the asus
rog phone have come out and games like
pub g and all the mobile stuff the
free-to-play yeah buy your way up the
chain kind of games battle royale games
do we think this is kind of a new so
what do we now like the Bronze Age for
different markets I don't know like pub
G and fortnight
I've been phenomenally successful on on
thumb I still feel like there is that
difference between the switch and one
true mobile gaming the switch it's two
hands it's a full commitment you're
you're into a like a long-running game
right like like like breath a wild right
you're committed mobile gaming is still
like it's super casual it's you know the
game plays designed to last like a
minute it's really built for like short
attention spans I feel like there are
two different things it's not this
doesn't strike me as like a different
age of mobile gaming I think this is
just there's more of it and it's it's I
don't know it's hard for me to explain
switches like this anomaly I don't think
it's like it doesn't is it foreshadows
some new way of gaming i think it's its
own thing a successful thing just like
the wii was but not not a harbinger of
like how will change the way we we play
a games remotely I think when it comes
to mobile gaming its its its own thing
it's a quick snackable experience I I
agree with everything you just said but
on top of that I would say that I like
what asus and was the other company
razor razor what they're trying to do
where they're trying to create
specialized phones they look different I
really like how the ROG looks yeah but
does anyone actually own those phones
see that's the problem but at the same
time it's like everybody always
complains about their needs to be more
selection all these phones look the same
they're all kind of blending into each
other this was at least in Italy do
something different
that there needs to be more selection
but people don't buy from fill true
that's the dilemma for a long time
rights like we complained that there's
only like one or two options and there
aren't enough there's not enough
differentiation but we all gravitate
towards one or two phones I would
typically buy an Apple or Samsung or for
some folks like a pixel phone you know
and then there's a there's sort of there
is selection when it comes to budget
phones there's a bunch of budget phones
out there but no one really cares about
them then the the moment someone steps
out and like builds a razor phone that's
built for gaming you know people don't
buy it yeah so yeah if you're really and
I don't yeah like I said I don't think
it's the like the razor phone doesn't
isn't a sign of things to come or some
Golden Age of mobile gaming you know it
helps with the mobile game experience
but people aren't buying that phone so
it doesn't really you know it doesn't
hit that anything that's a good point
yeah if you're really into gaming maybe
you're gonna take that money and put it
toward like a second console gaming
laptop a gaming laptop or I mean if
you're a hardcore in the gaming yeah
you're building a PC you're putting the
money into the graphics card in the
processing you're building out three
monitor array you know but as far as
gaming is getting gaming continuing to
get more and more into the commonplace
into the the casual hands you know the
Nintendo switch and the mobile gaming
market I think we're at least going to
see an uptick in the trend of the Battle
Royale type games as everybody and their
brother is starting to put those out
right now from fortnight and it's said
well is core to note you know he
mentioned you know the Asus phone and
the razor phone those are our Android
devices
you can't play for and I on those phones
mmm fortnight is only available in iOS
right now and there are some rumors that
the Samsung Galaxy Note now I might be
the first one to get fortnight but right
now it's not an experience on on Android
so for those kind of hardcore gamers
like folks who want to play for Knight
right now they have to use an iPhone or
you know PC or Playstation or whatever
but they can't use an Android phone
hmm all right well I think we are out of
time in fact you probably went longer
than the rail late but it's okay we're
back good conversation we are back and
thanks everybody for joining us we're
going to wrap it up for the day we'll be
back tomorrow
you want to take us on out of here yep
the 359 is available on iTunes tune in
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and the Amazon Alexa and of course Tina
calm you know calm see y'all tomorrow
tomorrow
you
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