If the reports are true, Apple ($AAPL) will be testing out a new strategy for its all-important fall hardware event. Traditionally, this year would be what's come to be known in Apple parlance as a "mid-cycle" upgrade year: some feature and processor refreshing, but no major overhauls of its core iPhone, iPad, and MacBook lines.
But reading the tea leaves from a Bloomberg report published Thursday, Apple's plans this year go further than what would be typical of a mid-cycle refresh.
In addition to iPad and MacBook refreshes, Apple plans to unveil three new iPhones, according to Bloomberg, including a "Pro" line to replace the XS. The upgraded iPhone Pro will reportedly include a major overhaul to the camera to include a third, wide-angle sensor that will essentially take three photos and use A.I. to stitch them together into one image. Samsung has made huge strides in its phone camera tech, and the Galaxy S10's ultrawide camera is increasingly seen as the smartphone camera to beat.
The new line of iPhones are said to also include reverse wireless charging, enhanced Face ID, increased water-resistance, faster chips for A.R. ー though no 5G capability.
Dan Ives, managing director of equity research for Wedbush Securities and a full-time Apple watcher, told Cheddar that Apple is leaning into the mid-upgrade cycle in a bid to offer just enough new features to convince customers who may be on the fence about upgrading to pull the trigger.
"Apple realizes there's 350 million iPhones in upgrade opportunity," Ives said. "That's what the focus is going to be."
After a disastrous holiday quarter last year, a successful fall hardware launch needs to show investors that Apple is still capable of driving demand for iPhone even in off years, especially overseas. Ives said he expects Apple could sell 75 million to 80 million new iPhones in the first few months, but it will be dependent on China, which accounts for 20 percent of the iPhone upgrade market.
"This will not be successful if iPhone demand in China has not shown growth," he said.
Apple is taking a calculated risk by not waiting until 2020, when it has said it expects to be able to provide 5G technology in new devices. The hope, according to Ives, is that the average iPhone user, who hasn't purchased a new device in three years, will be swayed by the camera technology and faster processor that are expected to be revealed in the next month. "I do not believe many can wait until 5G," Ives said.
It will be a busy fall for the Cupertino-based company. Apple's subscription streaming service TV+, rumored to be priced at $10/month, is also expected to launch before the holidays. Ives is more bullish than some on the success of TV+, predicting it could reach 100 million consumers in three to four years. "But they're going to need more content," he said. "They significantly have to step up their game." Ives predicts Apple will ink major acquisition deals with big studios in the coming years when it becomes apparent it can't possibly produce enough high-end content on its own to catch up to Disney, HBO, or Netflix.
The record-breaking success of "Squid Game" on Netflix has many media companies competing to produce, stream, and invest in new content from South Korea. Netflix has spent half a billion dollars on developing Korean content this year, and other streaming services are taking note. Seth Schachner, managing director at StratAmericas and digital business executive, joins Cheddar News to discuss.
Airlines had to ground 2,500 flights in the U.S. on Tuesday, with bad weather and workers out with COVID-19 blamed as the main culprits. Scott Keyes, founder of ScottsCheapFlights.com and author of "Take More Vacations," joined Cheddar News Wrap to discuss how the surge from the omicron variant has been creating havoc in the air travel industry. Keyes noted that a lack of personnel from pilots to gate agents had been exacerbated by the coronavirus, an issue also disrupting labor markets throughout the economy. "Add to that the fact that travel has rebounded far quicker than many analysts and experts predicted, this is why I think you're seeing so many airlines caught a bit flat-footed in having to pare back the schedules they had set months ago," he said.
Barstool Sports CEO Erika Nardini joined Cheddar's Kristen Scholer to discuss plans for the future even as COVID-19 upended Barstool's sponsorship of the Arizona Bowl featuring the Boise State Broncos and the Central Michigan Chippewas due to the spreading omicron variant. "In our case as a company, coronavirus has been a big boom for us," she noted. "We've been able to create a lot of new programming, launch a lot of different personalities, and frankly take share from traditional media, and that's what we've done the entire pandemic." While she admitted to taking a hit on the canceled Bowl game, live events aren't completely off the table for Barstool in 2022. Nardini also talked about potential sports betting expansion following its partnership with Penn National Gaming.
Interest in the concept of the metaverse is heating up as more companies get on board, and Cathy Hackl, CEO of Futures Intelligence Group, a metaverse-focused consultancy, joined Cheddar to talk about trends to watch out for in 2022 and what it will take for it to be more than just a buzzword. Hackl noted that businesses likely will have to consider big technology upgrades in the upcoming year in order to keep up. "We're going to need new levels of computing power to be able to enable shared virtual experiences, both in VR but also in augmented reality," she said.
Stocks closed near session highs today amid a rebound from sell-offs fueled by fears of the Omicron COVID-19 variant. 1879 Advisors Vice Chairman Jim Bruderman joined Cheddar News' Closing Bell to discuss the markets' close and new economic data out today.
Small businesses in Washington, DC, are getting a visibility boost through the non-profit Grow Golden. The initiative connects local entrepreneurs with empty storefronts to establish pop-up shops in the heart of the DC business district, called the Golden Triangle. Cheddar's Arielle Hixson spoke with the small business owners about their experience building exposure through the program during the holiday season.
Home flipping is turning into a competitive space and a less profitable one according to the property database ATTOM. Todd Teta, chief product officer at ATTOM Data Solutions, joined Cheddar to break down key findings of the report, why the home-flipping market is raking in fewer returns, and what he thinks may have been behind real estate marketplace Zillow withdrawing from the business.
The metaverse took the world by storm in 2021 and it is just the beginning of the virtual universe. Consumers are jumping on board and companies like Meta and Roblox are already taking advantage. Entrepreneur Andrew Duplessie joined Cheddar to discuss how the metaverse will impact the future of socialization and business. "If I'm doing anything right now, I'm building an app, I'm jumping into that ecosystem, and I'm testing it. I'm seeing what people think," he said.
