Apple – Back to basics

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Hardware innovation made exciting with software functionality.

• Apple returned to what it does best in making innovations in the user experience that are enabled by the new hardware upgrades that it has launched in its new products.

iPad Pro

• The iPad Pro was by far the most interesting product launched at the event as Apple inches closer towards being able to replace more of the laptop’s functions.
• The device sports a 13inch screen and a 3^rd generation A9X processor that is 70% faster than the A8 at CPU tasks and 90% faster when it comes to graphics processing.
• What really makes this product is the accessories that have been launched with it, both of which follow in Surface Pro 3’s footsteps:
  • First. Apple Pencil which is a stylus that offers by far the most realistic drawing and painting experience seen on a digital device to date.
  • The stylus is also very accurate and enables a range of functions and interactivity that were not really practical before.
  • The stylus comes at an acceptable $99.
  • Second. A new cover that also doubles as a keyboard very much like the Surface.
  • This device comes at an eye watering $169 leading me to think that it has to offer a truly great typing experience to justify that price.
  • The device is also limiting in that it has to be connected to the iPad Pro to function which limits its usability.
• The one thing that is still missing from this product is mouse support and if that is included in future releases of iOS9, this would take a big step in replacing the laptop altogether.
• Microsoft was a surprise act showing how Office works on the iPad Pro which speaks volumes with regards to how Microsoft’s ecosystem strategy has really been taken to heart.
• Office on iPad has been improved but the precision of a mouse and the full Office apps are still required before one can really label this as a laptop replacement.
• The iPad Pro is expensive starting at $799 and going up well above $1000 for the top model.
• This will give comfort to the Ultrabook makers and the Surface team who will have been somewhat concerned about being undercut on price.
• This device is still far from replacing the laptop but it is getting closer.

Apple TV

• A new version of the Apple TV has been launched with a custom version of iOS and a new remote that makes interaction with the media easier and more enjoyable.
• Apple’s vision for TV is that the future will all be about apps and has designed the product in this regard.
• To be honest, it could hardly have said anything else as this way TV fits into all of its other products rather than having to design a whole new experience from scratch.
• However, users have become used to apps and there is no reason why consuming TV through apps might not become the norm.
• This is especially the case as the TV market is fragmenting and several subscriptions will increasingly be required to ensure that the user has access to everything.
• Apple has added nice new functionality using Siri as the engine for content discovery as well as information discovery and retrieval while watching or listening.
• Apple has also added gaming, shopping and browsing through specialised third party apps in the App Store.
• However, it is clear that this is no replacement for a PlayStation or an Xbox as the games discussed and demonstrated clearly fall into the casual gaming segment.
• Casual gaming on TVs has been a disaster to date but Apple has done what it does best to the user experience and perhaps this will drive the inclusion of TV with the phone and the tablet into the casual gaming experience.
• Apple TV comes at a reasonable price at $199 for the 64GB version.

iPhone 6S and 6S+

• The new iPhones sport higher resolution cameras (12MP), 4K video, the new A9 processor, tougher cover glass and the first time inclusion of pressure sensitivity to the touch interface.
• This is nice upgrade but what was most interesting was the innovations in the user experience that Apple has created as a result of this hardware upgrade.
• Most interesting is what Apple calls peek and pop which allows a soft press to give the user a preview of a message, photo, or what is happening in an app and then a harder press to launch the previewed content or function.
• This has been implemented everywhere in iOS9 to good effect creating a nice upgrade to the user experience that is unusual in the S version of the iPhone.
• Pricing remains the same with availability in several countries on September 25 and 130 countries by the end of the year.

Apple Watch

• This was by far the most disappointing update with a few new colours announced, 3 straps from Hermes and an update to Apple Watch OS2.
• The functionality upgrade was incremental and the presentation was stilted and halting.
• It was almost as if the chap presenting the upgrades was not sure why he was there.
• This continues to support my position on this device as an experiment and one that has massively underperformed market expectations.
• That magic spark of genius that makes the user want to go out and buy an Apple device is completely absent from this device and I think that it will continue to be niche at best.

Take Home Message

• This was a much better day for Apple than I had expected.
• The highlights were:
  • The iPad Pro which inches Apple closer to having a genuine laptop replacement although it is still quite far off.
  • The use of force touch to great effect in the new iPhone 6S and 6S+
  • The integration of voice, touch and Siri to substantially improve on the Apple TV’s user experience.
• I think that Apple has done enough to keep itself ahead in the smartphone game but I still think that the big upgrade cycle to the iPhone 6 generation is coming to an end.
• The iPhone 6S keeps Apple looking fresh but it is not about to unleash another leg of revenue growth.
• Hence, slower growth is likely to be the outlook but on that basis the shares are not unfairly valued.
• I still prefer Microsoft for the ecosystem whose hardware innovation has earned some serious respect with Apple mimicking the concept behind two of its devices (type cover and stylus).