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Jon on CNBC: Apple has Stopped Innovating

2016-07-28
Redinger from TechnoBuffalo and angelo Zeno as well from S&P global market intelligence guys John what you know again apples still talking about revenue declines and and that sort of thing on the year but what do you make of the results you know I can talk about apples product line and where they're at and Apple right now is very reminiscent of blackberry formerly rim from eight years ago a company resting on their laurels that seems to have stopped innovating several years ago if you look at Apple's flagship 15-inch MacBook Pro that's using a processor that is three generations old even current gen iPhones barely can keep up with what Samsung and LG are offering I'm not overly optimistic on Apple's next-gen product offerings John this job that job I'll take it for a moment I got a pushback against the idea that Apple's not innovating and is like blackberry of yesterday here the problem with blackberry wasn't that it didn't pick up the latest chip fast enough off the shelf you just have to pick it up off the shelf from Intel in order to slap it into a laptop that's easy the problems that they misjudged the entire direction of what consumers wanted they didn't prepare themselves to deliver apps they didn't prepare themselves to deliver touchscreens and it's not clear at this point you can make it argument about virtual reality or something like that it's not clear at this point that Apple is fundamentally misjudging what people want from mobile technology I think it's too soon to say that are they behind perhaps in artificial intelligence in BOTS and that sort of thing perhaps but at WWDC they announced a lot of technology a lot of software hinted at a lot of services that could very well be in line with what's been talked about by the likes of Google and Facebook and Amazon so I don't think we're quite there yet so John Breton so allow me allow me to counter that for a moment I was at WWDC as well and apples certainly not going anywhere they're the culmination of the reputation that's where a lot of their intrinsic value is but quarter-over-quarter that refuge reputation is diminishing taking things that they're not in like 360 and virtual reality completely out of the equation the highest resolution Apple phone right now is 1080p you've got 2 k 4k phones out Apple is even touching that things like fast charge and wireless charging Apple doesn't offer that consumers are seeing competitors offer those things for generations and generations and till apple offers cutting-edge specs to match their pretty solid operating system I think they're gonna see customers start so Matt we just heard from Qualcomm that the premium end of the smartphone market is languishing wow it's the lower end that's doing well Apple clearly made a good call in coming out with the iPhone se when they did it's not just a matter of throwing whatever feature out there you've got to get the right features because yeah wireless charging might be exciting to folks in North America but that's not where people are buying phones right now and they're not buying them on that particular spec so to make sure I follow you're suggesting that Apple focuses on the lower end of the spectrum completely going the opposite direction they've done since their inception of their history based on one iPhone se model which they had one good quarter of let's see how that does for another year when you have other ninety nine any cost coming out with features doesn't make you a success you have to come out with the right features at the right price point at the right time and I think part of the challenge with Apple is they're so big we think about all these things that they could be doing and wouldn't it be great but if you do a bunch of stuff and it's the wrong stuff there's a cost to dismantling that and then going ahead and doing the right thing so I've been it's been okay anybody but you can't just throw the stuff at the wall yeah and there's also a cost of not adding these features that consumers are hearing about certainly the low end of the spectrum I get emerging markets I can understand but the people that are buying that five to come to other iPhone which I believe is what most people were buying there's an expectation of features at that price point and if you want to take apples entire product line with iPhones and based it on just one of the iPhone se I think that's a bit short-sighted Apple's bread and butter is still that iPhone 6 and the iPhone 6s
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