Key takeaways from Apple’s ‘Time Flies’ event

On Tuesday, Apple held their first major product event of this launch season. The company unveiled Apple Watch Series 6 and Apple Watch SE, two new iPad models, and Apple Fitness+, the first fitness experience built for Apple Watch that brings significant developments in health and wellness features to iPhone, iPad, and Apple TV. From innovative chip developments with A14 Bionic to new apps and software, and the debut of Apple One subscription plans, Apple had a slew of significant reveals.

Apple Park
Apple Park in Cupertino, California

Bill Maurer for Seeking Alpha:

Ignoring the iPad for a minute, yesterday was all about Apple’s product diversification and the future of technology. The Apple Watch has been a tremendous hit over the years, helping to grow the wearables/other segment quite dramatically. The Services segment has also grown nicely, and the new bundle and Fitness+ program fit into the strategy perfectly.

Apple sells premium products, and thus it can charge a premium price. Even when the company launches a new version of a device that doesn’t have many major upgrades, it usually can hold its pricing power. This week’s event certainly showed that with the iPad lineup…

The big upgrade in this year’s 8th generation model was the A12 Bionic processor, which is a lot better than the A10 chipset found in the 7th generation model. However, Apple was able to keep the same base storage (32GB) as well as front/back cameras as the last three generations, and yet the price still starts at $329… On a similar note, Apple kept 64GB as the base storage in the new 4th generation iPad Air. There remains a clear distinction between the Regular (32GB), Air (64GB), and Pro (128GB) models in terms of storage. The new Air got a much better chipset as well, plus a larger screen and a better main camera. However, Apple actually increased the price of this tablet version, going to $599 as compared to the $499 start for the previous generation.

MacDailyNews Take: Apple’s event yesterday was a nice appetizer for the big event – the world’s first 5G-capable iPhones – coming in just a few weeks.

4 Comments

  1. Investors saw the event as a flop but I’m not entirely sure why. They think Apple trying to only reach current customers through upgrades isn’t enough. They believe Apple should find ways to capture an entirely new group of customers. Apple would have to come out with new product categories but their line-up already has plenty of products to attract repeat customers. I’m not sure how Apple is supposed to achieve double-digit revenue and earnings growth at this point, but I’m guessing big investors think Apple should be able to do so. I’m scratching my head over investor expectations as I’m not sure if they’re based on reality. Apple’s customer base numbers are already rather huge, so I would think just repeat upgrades in all their product categories would be enough to satisfy investors. However, that doesn’t appear to be the case.

    I honestly didn’t think the event would produce a negative effect on the stock because most of what happened at the event had already been known in advance unless investors were expecting some “one more thing” product.

    I don’t have any complaints with Apple. I just like to try to figure out what the results of an Apple event will have on the stock price and this time I was wrong by just a small amount.

  2. “Investors saw the event as a flop but I’m not entirely sure why. They think Apple trying to only reach current customers through upgrades isn’t enough.“

    You answered your own question. More incremental upgrades and nothing Earth shattering and certainly don’t mean any disrespect.

    We have heard for years the vast pipeline under Cook that has not materialized and he gave up mentioning it years ago for good reason…

    1. Snowballs trickling in the sun.

      Like Ping for example.

      Or horrible Pantsuit Ahrendts store design.

      Or Apple TV, last in marketshare.

      Or the hot selling iMac Pro and Mac Pro, both priced out of the market — and the pathetic fumbling with bad laptop keyboards and sealed thermal nightmare designs as the Mac continues to be an also-ran in world usage rates.

      Or the iPhone 5C, Mac mini, and more recent rehashes of 3+ year old hardware designs. Thrilling! New iPad colors, wow!

      Or iWork apps, which have taken the world by storm. True defacto standards that only Apple could have made, just like ALAC, Quicktime, and other tech that never went anywhere under Apple mismanagement.

      Danox thinks everything Apple does is solid gold. He seems to forget that Apple is now moving towards being just another a services company no more exciting than Netflix or Comcast.

      But you can brag about how you pay your monthly Apple subscription with an Apple/Goldman credit card if it makes you happy.

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