Apple Unveils iPhone 14 and Satellite Capabilities

and AirPods, focusing on health, safety and satellite connectivity. And there was one big surprise the price of the bottom of the line iPhone unchanged despite the worst inflation in decades. We are going to give you the full download, but first I want to get a look with Apple bringing Carolina Milan as of creative Strategies. Who's here with me at Apple headquarters inside the Steve jobs the for the first time in a few years. Actually, um, how significant

do you think these upgrades are? And key are people going to buy these new devices with increasing inflation higher than you know it's been in forty years. I think it's been interesting to see that the focus today has been on real pain points that consumer have and also hit on the key drivers that you see consumer talk more and more about. Which is better life, is a better display, is a better camera with low light conditions.

You saw that, and you saw out Tim Cook opened devent today talking about the value of each product and then the magic that the three products that we were here for today bring together. And I think that's what you have when you're thinking about upgrading. You might have one of these products that are older than another and you want to get into the cycle so that you can take better advantage of the new features, but also

feel that magic that Cook was talking about. Well, I wonder if the most significant announcement was the price of that you know, lowest tier iPhone fourteen and it being the same as the iPhone thirteen was last year. Yeah, the price are the same is a good and depending where you're looking at it right that we have seen some of the consumer electronic companies bringing their prices up earlier in the year because of the inflation. Others we

kept on the same. I think what was interesting to maybe sweeten a little bit that price point is the deals for the trade ins that you've seen Apple mentioned through the careers in the US and directly from Apple eight hundred two thou dollars depending on what model you've traded in. So let's talk about the the other things. Satellite connectivity. I know that was a really big deal and how significant is that going to be in terms

of driving more people to buy these phones. I don't know that the satellite is necessarily a purchased driver per se, but I think is that extra peace of mind the same way as you think about insurance, Right, you have it, you have to purchase it. You hope you'll never use it, but you know that is bear in case you need it.

And it's the same with the feature of car crash detection as an example piece of mind for you know, parents with new drivers coming on feature that is both on the watch end, on the phone all the way to the you know, throughout the portfolio. So the safety was an extra, if you like, pillar on what Apple built today across the portfolio. All right, let's talk about the Apple Watch. Ultra significant pricing news there as well, very much undercutting garment at the high end on the market.

They called this watch your dive computer. It can go forty below the surface of the ocean. I mean, it seems pretty cool, but how big a market is there for a niche rugged smart watch. The reality is that you have the core people that would have a garment, and then you have the wanna be and the market for the wanna be, you know, the ones that wish but it could do an iron then, but they can't.

It's considerable, right, And I think what was smart about the design is that despite the size that is so large, is very lightweight and so you know, I have a small risk like you do, and and it looks humongous on the risk, but it's not heavy. So I think they've done a good job in trying from a style perspective to appeal to a broader market. And they could have price if they wanted to, but they did not. So what are you looking for in terms of the numbers.

I spoke with Tim Cook at the end of earnings last quarter and he said they do expect revenue to accelerate in the September quarter. Of course, we know that new iPhones are going to go on sale a week before the quarter end, so they can get some additional uh boost there. You know, how much of a difference is that going to make? And could it give the

the global economy kind of a little morale boost? If Apple is able to you know, beat or even meet expectations, I think you have three lines that will contribute to that boost. Right, you have the iPhone, and it's interesting that they picked at different times of the release for the iPhone getting into October as well, so you have

that caring through to the next quarter. But you also have something like Airport Airports Pro that at two fifty World drive a lot of upgrades, so there's a lot of different price point there that will help the bottom line. Um and as I said, is the magic of the three coming together. The air pads were kind of a sleeper hit when they came out, and it's been a long time. A lot of people have been waiting for

an upgrade, you know. Was also said today that a lot of people lose the air parts as they're gonna spend two hundred fifty dollars on something that is, yes, beloved, but also easy to misplace. Well, uh speak for an experience. I've a teenager that always loses them, so I feel I feel that pain. It made it easier about to find them today, fair enough, right, so you can find the case and you can find each individual AirPod in

an easier way. And I think the silly thing of the emoji engraving speaks also to that popularity where you have households, where you have multiple airports that lived together, and that will make it easier for the consumers to spot which one is mine. And again with all of these products, we talked about new chips faster, clearly you know, big tech upgrades, even though we might not necessarily see them as as consumers at Carolina Milan as of creative strategies.

Thank you so much, thanks for joining us. Good to see all right coming up? Apple seems to have supply chain issues under control. Will that keep up through the holiday rash? M it's rising global tensions? We will discuss this is Bloomberg. Apple seems to have managed supply bottleneckt spirt by the pandemic, but now it has to navigate the Chips Act and a new policy designed to boost US production of tech product that includes approval for certain

semiconductor exports to countries of concern, including China. I want to bring in CFRE, a equity analyst, Angelo Zeno. Now for more so, Angela. First of all, let's talk about the supply chain management for this new slate of products. Is Apple going to be able to get all of these new iPhones and watches and air pods to people who want them in time for the holidays. I mean, as far as getting it in time for the holidays, yes,

we think so. Um. Yeah, I think it's interesting that clearly the timing of this event clearly being on September seven, and the actual UM launch of the phones, right, I mean you were talking September six, case, I believe is when shipman start um pretty much a week earlier than

we had previously anticipated. To be honest with you, UM, I think that in itself should tell you that they're absolutely managing the supply constraints that you know, maybe they had to content with more severely earlier that year, in a much better situation, so they should be better positioned here over the next couple of months, um than others out there. Now, I will say this, um, as far as UM these phones are concerned, I mean, it is

more supplied driven than demand driven. In terms of expectations for the September quarter. We do expect them to be supplied constraints to some extent here over the next couple of weeks. And I think it's really interesting with how they kind of land, uh kind of uh put the launch of these phones right. So, we have the phone four phones four devices will be available UM at the end of next week, where the other one will be

UM in October. So that will help them also better navigate the constraints and put more emphasis on those pro devices, which of course our higher price and better margins. So interestingly, when you look at the Apple website and the shipping times, a lot of those times have come down, which is sort of our gauge of you know, how much trouble are they having, you know, making all of these products

and getting them to customers. The iPhone, mac iPad, you know, all pretty much coming you know, when you want them to come. One of the biggest pain points going to be though over the next few months. I mean, we've seen various chip companies continuing to struggle as we look at their earnings, and you know, what is it about Apple if they're not having these issues? Yeah, well so i'd say as far as you know issue, I'd say

they they're much better position than others out there. And the biggest reason is, you know, they are the largest kind of UM you know, purchaser of semiconductor UM goods out there on kind of a pure play basis, right, I Mean, if you take out samsull and which kind of UM you know, utilize this kind of their own semi can you know, their own smartphones demands to kind of feed their own business. That's not necessarily the taste

here UM with Apple. Apple kind of outsources all their semi conductor needs out there, so they have significant needs out there and because of that, UM, they definitely get kind of their first in line in order to kind of get those good UM. At the end of the day, though, we kind of look ahead here in terms of where the supply constraints continue to be most er. It's definitely at this more trailing edge technology node. It's more yer kind of UM you know, your microprocessors, that are your

micro controllers and what have you of the world. Then UM, Apple does need to purchase those type of UM components. But UM again they are in better position than others out there to UM get those orders fulfilled. Obviously, we know how interconnected Apple supply chain is with China. They've they've been trying to diversify that and it likely won't be so intertwined in years to come, but that's still the case for now. How will rising global tension impact Apple?

How will the Chips Act come into play. So, you know, I think longer term, you know, clearly Apple does want to further diversified its supply chain, and they clearly are looking to do so. We think kind of, um, their emphasis is absolutely going to be more so in India than other regions of the world. Rightfully so, because when you actually think about where the demand upside could potentially come from from Apple here over the next decade, I

think India is a big reason. Um, if you are a bowl on apple from the natural natural wealth effect that will take place in India over the next ten twenty years. So it makes takes a lot of sense for Apple to start kind of um expanding into that geographic region. But that being said, Apple remains very well

positioned within China. We don't necessarily actually expect them to um, you know, shut down any type of production out there, to be honest with you, as more and more chips companies out there kind of evolved within China, exactly a possibility um where Apple could potentially use their local semiconduct their manufacturing industry as well. But that's being said, I mean, we do expect them to continue to um look for ways to expand and further diversify outside of China, but

India will be the key there. I don't know how much of an impact kind of the chip sacks will have um within the US, but I think only time will help. The big question remains how many people are going to upgrade these upgrade their devices in the middle of a downturn, when they're already paying more for everything else. How significant do you think the pricing that we heard today the Apple Watch Ultra seven nine, the new iPhone fourteen at seven the same price it was last year

as the iPhone thirteen, that that seems to be pretty significant. Yes, I mean it looks that. I actually I thought there was a possibility they could have raised the prices on some of those pro devices, but I'm kind of happy that they didn't, to be honest with you, when you kind of look um an Apple here. First off, our forecast for the upcoming cycle here in terms of the iPhone fourteen cycle is actually no growth in terms on

the unit side of things. However, we do expect average selling prices to increase about three at least recent and that's going to just be the actual improving mix. I mean, clearly they're ditching the the mini out there UM adding the six point seven inch um plub device, and then you know just just what they've been now on the pro side of things relative to what they've done with the two standard devices. I think that's a big enough gaps where you could potentially seem more consumers kind of

gravitate out there UM towards the pro devices. At least for the September quarter and December quarter. UM, we remain very optimistic in terms of UM units. We were about two to three percent above the street. We do get a little bit more concerned on the macro side of things as we go with some marching tune quarters and the Psycolosten. All right, Angelo's you know, c fr, I thank you for giving us the big picture of you

appreciate it. Shairs on Twitter jumping in Wednesday session after a Delaware judge told Elon Musk, no, we can't delay this trial with Twitter. Of course, Ellen trying to walk away from that forty four billion dollar deal. Bloomberg's at Ludlow here with all the deep tales and kind of a big loss for Musk here, meaning he won't have as much time to pull together some additional discovery. What is this signal from the judge? Yeah, best day for Twitter shares since mid July. The idea being that a

Brisker schedule timeline for trial favors Twitter. Most analysts, including our Bloomberg Intelligence litigation team, would say that that Brisker said, you'll boost the odds that Twitter will be able to enforce the original deal terms, which is, you know, m a fifty four twenty centers share valuing Twitter at fort four billion. And Judge Kathleen st Jude McCormick basically said that she couldn't delay the trial by even four weeks.

Remember must team, we're asking for December because if she did, then it could bring harm to Twitter's business that she couldn't justify. So one win for Elon Musk is that he can use the complaints of this whistleblower, which recently

emerge to an extent explain. Yeah. So this is Peter Zako, who filed a whistleblower complaint on auguste basically saying that Twitter had security deficiencies making its platform vulnerable to hackers, and in this complaint that he'd been told by a senior Twitter executive that there was a spots issue that Now, what the judge is saying is that incrementally the must team can go out as part of discovery ahead of trial to include some of that information that was in

the August whistle blur filing in their legal armory, so to speak. But again it all comes down to Musk having to prove the same impact, the same legal point that he has had to all along, which is material adverse effect. And again Street analysts, Bloomberg Intelligence, this Gation analysts see this being a Twitter's favorite at this point. All right, lad blow, thank you Meantime, on Tuesday night, Alphabet's CEO Sundar Pachai defended the company in response to

claims that it is anti competitive. At the CODE conference. He also commented on Google's decision to remove former President Trump's truth social app from the app store. Bloom looks Alex Barnka was in the room for Purchi's remarks. She joins us, Now, so Alex, let's start on the anti competitive accusations. You know, not a surprise that he defended Alphabet and Google's position there, But what do you make

of how he did it? Yeah, Emily, he brought it up at basically every turn sendor was on stage for about forty five minutes, and whether he was talking about the ad market, about commerce, about competition with TikTok, he brought it back to this argument that their company, that Alphabet is not anti competitive, that in fact, there is a lot of competition on the market now. It is

a timely argument for him to be making. Just last month, our colleagues reported, based on their sourcing that the d o J maybe bringing another anti competition suit against Google on their ad business. You'll remember that there's already a suit out there from the d J alleging the company dominates the search market. So it seems like anti trust is definitely on the mind of Alphabet CEO, and he really wanted to remind us that, you know, they have

rivals out there in the market as well. Meantime, he gave some detail, more detail and I think we would expect about their decision to remove Trump's Truth social app from the Google Play Store. Tell us what I had to say, Yeah, that's right, he pointing to kind of what it's coming down to for removing it right now,

which is content moderation. He kind of talked at length that the Google play Store has standards for what they expect the apps on UM on that platform to kind of participate in when it comes to content moderation, and said that it seems like they are looking at that

more closely. He also pointed out that the Google play Store did bring on Parlor recently, so UM, there has been movement there for some of these platforms that seem to be friendlier to Trump or allow Trump on the platform in terms of getting them into the play Store, but for truth social that content moderation peace and making sure that they can kind of abide by the standards that Google expects seems to be the breaking point at

the moment. Meantime, he talked about his goal to make Google more productive, which is really significant given how massive that company is. Does that mean layoffs? Uh potentially um, it seemed like yesterday he talked about UM finding kind of product productivity games. He gave some examples UM past examples like having multiple music applications on different sides of

alphabets platforms and combining those into one. He also talked about things like teams that have perhaps three managers as the decision maker UH when there should only be one, and that slows things down, so perhaps you don't need

that many people. But for Google, look, they are struggling like the rest of the ad driven businesses out there in big tech, so he's absolutely looking to efficiencies and it sounds like right now, um, they're going through kind of a holistic process of figuring out where they have duplications in the business that they can narrow down and where perhaps the business should be moving faster with fewer voices to make sure that it is hitting those productivity goals.

All right, Alex Barnka for us, I know you'll be back at code later tonight, only looking for your dispatches. Welcome back to Little More Technology. I'm emily changing Coppuccino where Apple just unveiled a new line of products. Let's talk about it all with Marabel Lopez, founder and principal analyst of Lopez Research. Good to see you back here

in person. You know, I thought it was interesting. They obviously unveiled you know, a ton of new things today, some features geared for everyone and some geared towards more niche users, whether it's you know, an outdoor enthusiast or there was also a focus on um women's health. What stood outmost to you. What I thought was interesting is we're at a real mature state of the market right now.

We have to do some things that are definitely for a niche market, like the outdoor enthusiasts, But you still wanted every release to make sure that there's something for everybody. So we had crash detection in the watch, We had temperature sensors for women's health. We had satellite which is in all of the iPhone fourteen so that anybody can have emergency calling. So it was really that balance of things that were very specific, like you can have a

dive computer on your watch. That word multiple times dive computer cycle. I mean, what arrange? How let's talk about the every day that and you know women are half the population. How compelling are some of these women's health features in terms of convincing a new audience to upgrade. We want this watch to be for everything, right, if you're going to wear this every day, then you wanted

to really do things of matter in your life. And nothing is more important to women at certain points in their life than being able to understand what's happening with their menstrual cycles. So I think that they really hit a curve that that makes sense for a broad percentage of the populace. They also double down on the privacy features there, because obviously we're talking about really personal information.

Privacy has been Apple and Tim Cook's big thing. You know, they've continually said, you know, we are doing this better than anyone else. We are protecting you and your data. How important is that in terms of the marketing. I think one of the things that we're seeing is really a bifurcation of those that care about privacy and those that don't. Does have monetize you with your data? And those that are saying, O, hey, this is really about

you buying the product and it's your information. And I think no one is excelling at that message better than Apple right now. But Apple is also building out its own advertising business, right is there some will I? Um, we don't know yet, is the short answer, because we don't know exactly what type of data they're going to collect with, what they're gonna do with it, or what the privacy constraints are around it. But it's clear that

everybody wants advertising dollars. So let's talk about the outdoor enthusiasts and and and I mean, first of all the video was just absolutely amazing and all the different deserts and uh, you know, snow covered mountaintops. They went to um But how how how big a driver do you think this this will be? I mean, they obviously did undercut the garment watched, the high end garment watch significantly. Absolutely. I look at this very similar to how the Mac

was theoretically designed for creatives. The watch is now also an outdoor enthusiast specialty. You don't need a dive computer, you don't need a garment watch if you are a triathlete or anybody frankly that just really wanted all day battery life and to be out there and to know it was going to work. I think they struck a chord. These were complaints that had been in the marketplace, and

now they've addressed them. So, you know, let's talk about what this means over the longer term, because you know, Apple's revenue now comes from the iPhone. But you're not going to buy an Apple watch or AirPods if you don't have an iPhone. So are you seeing Apple becoming even more reliant on the iPhone or still less reliant on the iPhone? I think the world is reliant on smartphones, so that iPhone absolutely has to have features that sell it because it drags the entire ecosystem with it and

that's not going to change. So what are you look at when you when you look out over the holidays and you know, potentially a very busy quarter, but customers under pressure. You know, they're paying more for gas and groceries and literally everything, though you know, iPhone staying at the same price. Thank you Apple, um are what do you think this upgrade cycle is really going to look like in a downturn? I think the grade cycle is going to be contentious and people have to make choices

between what they're going to buy. You know, in some cases this is going to be are you gonna have eater? Are you're gonna have an iPhone? But having said that, that's morphone is so critical to what people do in their lives that they'll choose a smartphone oversight a PC something. So I think that there's still great opportunity for the fourth quarter to be a great quarter for Apple. Alright, Maria Lopez Lopez Research, good to have you back here

on the show. Than thank you for stopping by. Let you cool off, all right, coming up, we're gonna talk a little bit more about those satellites and just how game changing that new technology can potentially be. The ability to send s O S messages without cell service details next, this is Bloomberg. Unlike stationary cell towers, communications satellites are hundreds of miles above the Earth and flying it over

fifteen thousand miles per hour. To connect to these satellites need to be outside with a clear view of the sky and the band with all limited that even sending a text message is a technical challenge. Typically, the only way to tap into such a network is with an expensive device that uses a bulky external antenna. We knew that approach just wouldn't work for iPhone, so we invented

another way. We designed and build custom components and specific software so that iPhone fourteen antennas can connect with satellite's unique frequencies. There's one stock that went wild during the iPhone fourteen unveiling, and it was an Apple Blue works at Ludlow back now with a look at global Star,

very important partner at global Star Global staff. Fifty minutes into the Apple presentation, global Star is down six and the stock is halted pending News on stage in Cubatino, where you r M they discussing the satellite text capabilities of the latest generation of iPhone. A few minutes later, the stop begins training again. You see that on the right hand side of your screen it jumps from a decline of six to a gain of forty one before

ultimately closing down one point to Now. There have been rumors for almost a year the Global Star war partner with Apple to be the satellite operator, which is confirmed now in that regulatory filing. Apple is going to pay Global Star fees to provide this service. But a Global Star this is a big win. This is a tiny company three point seven billion dollar market cap, sales in the hundreds and millions of dollars each year. But for them, this is a really big win. Big win Indean and

putting a lot of speculation to resk. Thank you, and I want to talk more about Apple's new satellite connectivity um and bring in Chris Quality, the founder of Quilty Analytics, which works exclusively in the satellite and space industry. This is something because I know that you've been following for a very long time, and on stage today Apple talked about how this took years to put to practice hardware, software, infrastructure innovation. Just how significant is it that Apple um

says they can now pull this off. Well, I think it's a good innovation form. I think it's also a first step. The services was announced today is a fairly limited, uh you know, worst case scenario. Good to have as a background technology. But if you've been watching the broader industry landscape, there's lots of things happening with satellite phone connectivity, and other companies including SpaceX and T Mobile just last week or two weeks ago that announced the service. That's

a substantially more viable service. Companies like a Ridium that are working with handset manufacturers A S T Space Mobile Link and supposedly Android and Google are coming out with satellite phone connectivity also. So let's talk about the T Mobile and SpaceX example. What do they offer that Apple does not. Well, the fundamental difference here that really matters

is the spectrum. In the case of the Apple announcement, they are using dedicated satellite only spectrum, which means Apple has to put, as they said, specific hardware, antennas and chips to work with that satellite only hardware. Uh spectrum in the case of Global what SpaceX is doing the T mobile or a s T working with Vota Phone and a T and T. They're actually using the carrier spectrum, so there's no change that needs to be made made to the device itself. All the work will be done

by the satellite. In the case of a company like a s T, they're building one of the largest satellites, certainly one of the most powerful satellites out there, in order to do the work that the handset can't because the handset has no modifications made to it. So if this is a good first step, as you say, what do you imagine the second and third step might be. Yeah. So clearly this is an opening salvo by Apple. It provides a basic level of service, can probably draw some

extra interest in the iPhone fourteen. But I think given what's happening in the broader landscape, if Apple is serious about this, they would have to look at potentially building a satellite constellation of their own. Perhaps not a surprise that Global Star does have a filing for over three thousand satellites to potentially launch, and they'd have to build satellites unlike the current second gen or recently ordered third gen satellites that have a much bigger antenna, much more power,

and are optimized for working with that consumer handset. So let's play this out a little bit. Do you imagine that someday Apple might be interested in building a competitor to starlink for example, UM, I would say not exactly Starlink. Starlink's main purpose is broadband, and uh, you know that's non Apple's game, at least potentially here in the neryor term.

I think the reason that they partnered with Global Star, they're probably one of the weaker players in terms of their current revenue and their their customer profile within the satellite mobile satellite spectrum industry. What they do have is a very good spectrum position, and uh if they eventually use the full aspect of that spectrum. But there is

a potential to offer a higher data rate service. Certainly nothing that would compare with the Starlink service, but you know, think of it as a three G, four G, maybe even up to a low level five G type service in the longer term. All Right, I'm fascinating to look that far out, if you will. To play on Apples onwards, Chris Quality Quilty Analytics Co. Founder. Thank you. These incredible products each offers so many great capabilities and work seamlessly

together in a way that only Apple can deliver. Making that are so from Apple CEO Tim Cook. There before we go, I want to recap the day's event. I am joined now by Bloomberg's Mark German, our resident Apple expert, and Juliasca forrest Or Research, Vice president of Principal Analysts. The're going to see you, Julie Marcot. Want to start with you because obviously you previewed so many of the things that we saw today, but there must have been

some surprises what stood out most to you? You know, leading up to the to the event, there were a lot of analysts who were expecting iPhone price likes, particularly on the iPhone Fortune, Prome Pro Max line. I had never heard that was happening, so I didn't believe it was happening. In little do we know be announced today with no price likes. Very interesting in light of inflation price increases you're seeing from Meta, from Samsung and from

other companies. However, there are so inflationary related price increases you're seeing in Europe, in India. But if you want an iPhone fourteen pro it's going to be that same now, I will not. If you look at the fine print at some of the carrier deals this year, they're not as aggressive as last year. Right, So last year you were able to upgrade from a twelve prom Max to a thirteen Promax and get like fifty bucks cash back

on top of getting that new phone. This year, that same upgrade from a thirteen Promax to a fourteen Promax, it's going to cost most people between three hundred and six d dollars. So the carrier deals not as aggressive, you know, Julie, it's almost a given every year the price of the iPhone goes out, we get a new one and the price goes out. What do you make of Apple's play here? Is this genius or not? Well? I think it's a nod to the economic headwinds that

we feel like a lot of consumers are facing. So I think it was very smart not only keeping the prices relatively flat, but you also heard Tin Coxie the word essential a lot. It's essential, it's essential, and it's only essential, but now it's essential to our health and a set to our safety. So I think it's it's smart marketing mark when it comes to the technology. You know, as you reported, we're seeing more significant upgrades than we

saw last year. But to some people, they might still look at this phone and saying looks like basically the same phone. But you know, those technological upgrades that go into you know, a new chip, thinner, faster, longer, bat battery life are so hard to do. Can you talk to us about the significance of of the inside changes that we can't see? Sure? I mean, if you're looking at the jump from the thirteen to the four team,

I'm not talking about the Pro models. I think I can sit here today and safely tell you that there is absolutely no reason for you to upgrade. There's no faster processor, the battery life is about the same. In the camera enhancements going from the thirteen to the fourteen are not that significant. But when you get to the Pro models, you are seeing major changes. Right that new notch cut out. They really turned something that's an ugly

portion of the iPhone into something that quite frankly looks awesome. Right, changing the notch into a software area where you can see when your ubers arriving, you could see your music playback, And that technology is something They've spent years developing the Apple Watch Pro. We first wrote about that about two years ago. This thing has been in development, probably in some way or another since the original Apple Watch launched

seven years ago. Talk let's talk about the car crash feature. Right, that required them to actually do car crash testing. They showed a video of that. That takes years, Right, they need to get this right. That's years of data collection and the links they go to for testing and development in terms of features like that probably go beyond what any other company in the space goes through. Right, you know,

I've dropped my phone so many times. How are they going to know that's not a car crash, Julie While you weren't going sixty miles per hour. So there's that. You're probably just standing But you know, what do you agree with there? And and what would you pick a

bone with of what Mark had to say. Yes, so I think the tech theological advancements are pretty substantial, But I think the thing is for a lot of consumers, it's just it's subtle, you know, And it's one of those things if you're just going from a thirteen to a fourteen, you're like, Okay, it's a little bit better. But if you're going from like an eleven or twelve to a fourteen, you can't really articulate it as a consumer. But at some point you're like, oh, my goodness, that's

so much better. It's so much brighter. The pictures are so much better. I had no idea. So there's a lot of things I think that are to subtle. I think a lot of the other things they did they added sensors, right, So when you add sensors, you get more data, you get more precise data. They can model more activities. Uh. Like my favorite, as I told you, is being able to track my kicksets in the pool. Right.

They can do that with these kinds of sensors. Uh. There's other really subtle things about managing the battery, like dimming the phone. Uh, you know, the transparency, the spatial audio. There's a lot of things that are just really subtle. I think that are hard to communicate to consumers, but when consumers experience, they just have a wow effect. What's your sense of how a cult supply chain issues are going to be to manage over the next six months.

I don't you know. I would say, not being an expert in the supply chain, and you know, it seems to be impacting the world economy. But somehow Apple seems to be doing okay, and Mark you would agree with that, right, I mean, when you look at the lead times on these various products, they're not that bad, YEA. So far on the Apple which Ultra, what we're seeing is only one of the three variations is already shipping at the end of October, whereas you still get first day September

twenty three availability for two of the bands. Now, the the impact seems to be on the bands themselves, not the Watch Ultra. So if you're trying to get a watch Watch Ultra on launch day, my recommendation for you would buy any band combination just to get that watch and then worry about buying the band you want later. So clearly in terms of the production process for those bands, trying to figure out which bands are going to be more popular, uh, that's going to be you know, tougher

for Apple. Also, the Watch Ultra is one skew right on color, one finish, one screen size right, much less complex to produce when you have fear excuse, So I think they're gonna be okay on that I also think they're going to be just fine on iPhone production. Uh. The issues they had with iPad and mac supply, Uh, those seem, based on my research, probably resolved. We'll see what happens in October November when they launch new variations

for the Mac UH and the iPad Pro. Now, one thing we didn't hear much about is the mixed reality headset that you've of course been reporting on. I know you're expecting it to come next year. Unless there were some Easter eggs today that I didn't see. Did you hear anything Mark that can any more clues as to what this headset will look like. No, no easter eggs today. I know in power On we wrote the other day there would be no uh you know, reveal of this

mixed reality had set. I'm not expecting them to announce that until next year, and I think will be the year of they are and VR for Apple. Uh. No new augmented reality features on the iPhone. Nothing are related to the watch. There are some new transparency modes and some cool new audio features for the AirPods pro too announced today. It's plausible that some of that functionality will make their way into the speaker system. On the reality Probe, which is I believe will be the name of the

headset next year. But I think we're still a few months away before seeing that headset come to fruition. And what about the M word, Julie, the metaverse, what's apples play going to be today? Need one? Well, there's there is no metaverse, so Apple is not late yet, No, I think you know. More seriously, I think Apple is really good at timing the market, and what we're seeing now are some metaverse precursors, which means we've got some luxury brands selling you a Groucci purse for your avatar

and roadblocks, which is probably something more that your children play. Right, So there's some things that I prefer a real Gucci at this point, but not a real Gucci at this point. No, But I think you also, I think the you know, the notion these augmented reality glasses like we did, We're just not there with the technology yet where we can get a comfortable headset on consumers that's going to allow them with the great use case at the right pripes point.

So I think, you know, I agree with Mark. We may see some kind of a pro version announced in the next couple of years. But I believe Apple will come into the market when they feel the markets ready and they feel consumers ready. There's a good use case, and I think Apples just generally very good at timing the market. And I think it's still too early. And Mark, you've reported that they're still working through you know, hardware

software issues with that forthcoming headset. I want to end with you on comments that Tim Cook made to me around the last earnings call, uh, you know, which which aligned with your reporting that Apple is going to be spending through the downturn. That's something that they've always done. He feels like it's made them stronger on the other side, but also that they're going to be deliberate about that spending. Do you have any sense of wear Apple we'll pull back, uh,

and not quickly. Yeah. I mean, I think that you're seeing budget cuts across the company. I don't think you're seeing that happen to core areas. I think that they have enough people to launch the products they want to launch. I think you're going to see a slow down and hiring. In fact, they are doing slow down and hiring. It's very difficult right now to get hiring approval of Apple. Uh, you're going to see them spend probably about the same on research and development for the next year or so.

So just no growth there, Okay, but I'm not alarmed about the company's prospects because of this. All right, Bloomberg spark German juliosc a Forester Research. Thank you both. Couldn't think of a better way to end the show. Um, and thank you all for watching this special edition of Bloomberg Technology from Apple headquarters in Cupertino. Thursday. We've got a fun show coming up. Golden State Warriors. Andre Iguadala will be with us. If you're an Iggy fan, you

don't want to miss it. This is Bloomberg