Apple Event – Incremental innovation

Apple takes no risks with its launches.

• The event is back to its usual time but while the production quality of the event was better than ever, the products themselves only inched forward which I think will not have users rushing out to replace the devices they purchased last year or even the year before.
• This, of course, is caveated by mobile operators who are very keen to see users on their new 5G networks and who may very well continue to incentivise upgrades.
• Almost all of the incremental improvements involved were related to screens and cameras but also this year’s processors which push the internals forward somewhat.
  • iPhone 13: Each iPhone 12 model was updated to four iPhone 13 variants where the cameras got a little bit better and the screens became brighter with a smaller notch and faster refresh rate.
  • The batteries are generally a little bit bigger to support the higher refresh rate and the improved performance.
  • Hence, the devices are a little bit thicker than last year to accommodate the larger battery and the camera bump is also somewhat more pronounced.
  • Apple also inched forward its photographic software offering a new cinematic mode with dynamic depth of field and macro photography.
  • Prices remain unchanged which will keep Apple exactly where it is in the market.
  • Apple Watch: Series 7 has 20% more screen area than Series 6 achieved by making the bezels smaller.
  • The device is also more ergonomic with wider curves that also extend to the edge of the screen.
  • However, the real features that I have been hoping for which are blood pressure and blood glucose monitoring are still missing.
  • This is no fault of Apple’s as getting estimates of these two key characteristics is fiendishly difficult to get right when one only uses green light to measure them.
  • iPad: probably represented the most significant update with the base model greatly updated while remaining at the same relatively low (in Apple terms) price of $329.
  • I think that this makes the entry iPad a strong contender for consideration against even cheaper rivals given its higher specification and the higher quality iOS ecosystem that comes with it.
• The net result is that these announcements were enough to keep Apple in its current position.
• No risks were taken but the updates that were made were enough to keep Apple as the one to beat in flagship smartphones.
• This is exactly the mindset that will sink the company when the tectonic shift away from the smartphone comes.
• Apple will be unwilling to risk its huge legacy business to focus on something else and, as such, the company is at risk of repeating Nokia’s experience.
• It will take a great leader to avoid this fate and I think that Tim Cook’s has largely been a caretaker since the retirement of Steve Jobs.
• Fortunately, I think this time is still far off meaning that Apple can continue to chug along, incrementally updating its products and treading water.
• This is not the stuff that Apple’s valuation is demanding which is why I continue not to favour it despite its apparent safety and stability.