Good & Not-So-Good Reactions as Tim Cook Unveils Apple’s New Toys
The response to Apple releases has been mixed. Some wanted to go broke buying everything, some others had a big laugh
On Wednesday night, Apple unveiled a series of “innovations”to its phone, tablet and watch. The reactions so far have been mixed.
The new TV set top box that responds to voice commands and fresh iPhones that sense the pressure of a finger tap underwhelmed many social media commenters and investors.
The new 6S and 6S Plus versions of the iPhone, Apple’s biggest money maker, are the same size as the previous versions but come with a better camera, faster chips, new colors and the force-sensitive “3D Touch”.
Apple CEO Tim Cook also brought on stage an executive from onetime arch rival Microsoft Corp to illustrate the business-friendly credentials of a big new iPad, the Pro.
Apple shares have lost an average of 0.4 per cent on the day of iPhone announcements over the past three years, according to BTIG Research data.
People love to hate Apple announcements because the expectations are so high and they can never clear that bar.
– Kevin Landis, Portfolio Manager, Firsthand Technology Opportunities
Twitter Remains Vibrant as Ever
While most Twitter users seemed impressed by the revamped Apple TV, the product launch triggered a few jokes. Some others were completely disappointed.
To be fair, there were a few who REALLY wanted to get ‘em all.
The ‘Pencil’ Takes the Cake
The new iPad has an optional $99 stylus, called the “Pencil”, which amused many on social media: in 2007 Apple then-CEO Steve Jobs told a tech conference, “Yeah, nobody wants a stylus.”
Nearly 20 per cent of US broadband households already own at least one media player that streams content from the Internet, according to research firm Parks Associates.
Kevin Landis, portfolio manager of Firsthand Technology Opportunities fund, said that while he liked the updated TV product “the numbers are so small that they won’t move the needle because the iPhone is such a big business now.”
Cook began by talking about the Apple Watch. He said Apple is working with French luxury goods maker Hermes on a new watch collection, and Facebook Messenger is coming to the device.
Dave Meier, who works on several portfolios at Motley Fool Funds, said that the addition of a stylus and keyboard to the iPad Pro, which starts at $799, could lead to a “refresh cycle” that would lift incremental sales.
He was “impressed with the gumption” to bring Microsoft executives to demonstrate Office products on the new iPad, he said.
This says that the Surface might be dead and Microsoft understands that they are very good at productivity but not at hardware.
– Dave Meier, Portfolio Manager, Motley Fool Funds
It’s getting harder and harder for Apple to compete against itself.
– Bob O’Donnell, Analyst at TECHnalysis Research
Fortunately for Apple, most consumers buy smartphones under a two-year upgrade cycle, meaning the company will still likely scoop up a lot of sales, said analyst Patrick Moorhead of Moor Insights & Strategy.
The key point of reference is not how the new phone compares to the iPhone 6, it’s how it compares to the iPhone 5s.
– Patrick Moorhead, Analyst at Moor Insights & Strategy
(With inputs from Reuters)
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