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.
E-commerce data platform Rokt is prepping for an IPO as it comes off of a $325 million Series E fundraise, and CEO Bruce Buchanan joined Cheddar to discuss the future of his company. He explained how Rokt uses data science to optimize the consumer experience with their clients and discussed the goal to go public in 2023. "We're at a size and scale now where it's important we can give liquidity to investors, we can use the public markets to attract more talent, and we can use the public markets also to go on and acquire more businesses," he said. "We think it's about time that we do list."
Rideshare company Lyft is following its competitor Uber into the food delivery market by partnering with Olo, the on-demand commerce platform, and its dispatch network. Joining Cheddar to discuss the team-up, Olo founder and CEO Noah Glass. "Consumers will be able to place orders through the same apps and websites they go to … and see delivery as an option," he said. "And Lyft is now one of the providers who may be picking up the order on behalf of the consumer and taking it from the restaurant to the consumer." Glass also stated that Olo optimizes deliveries without adding the burden of additional fees on the restaurant side.
Chloe and Halle Bailey are no strangers to hard work. The sisters got their start performing covers on YouTube and have become a force in the music industry. Since then, the two have spread their wings beyond their duo group to individual projects. Now they're coming together to face off in the LG OLED Ultimate Gaming Showdown. Chloe and Halle join Cheddar News to discuss.
Cheddar is looking back at the 12 biggest buzzwords of the year leading up to Christmas. Day 8's term is Supply Chain. Definition: (noun) a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.
Software giants Adobe and Microsoft are further partnering to build synergy between their productivity tools for the digital-first workplace. Ashley Still, the senior vice president and general manager of digital media at Adobe, talked to Cheddar about the common vision between her company and Microsoft for simplifying work. "It's really important that companies make sure that the tools and applications that employees have at their disposal make their work delightful and easier," Still said in terms of how to judge the success of the partnership.
Established more than a decade-and-a-half ago, the social news aggregation and community website Reddit, recently valued at $10 billion, is now ready to go public with a confidential filing with the SEC. Greg Martin, co-founder of Rainmaker Securities, spoke to Cheddar about one of the "original" social media companies' future prospects as a public company. "We've seen very successful IPOs from Facebook, Twitter, Pinterest, and Snapchat, in the social media arena, and Reddit is next in that line," Martin said. "So, I think it's time."
Carlo and Baker wrap up another week discussing the latest explosion in new Covid cases in the Northeast, President Biden's stalled agenda and more. Plus, Love, Hate, Ate featuring the question: why did movie dialogue get so hard to understand?
