Apple WWDC 2020 – Everything Arm.

Apple brings the ecosystem closer together.

• Apple released one of its more interesting updates to iOS, included some concessions to developers and confirmed the widely leaked news that it is transitioning to an in-house Arm-based architecture for the last device category still to use a 3^rd party: the mac.

iOS 14, iPad OS 14 & Apple Watch .

• These new releases were some of the most interesting I have seen for some time.
• This is because Apple did what it does best and borrowed functionalities from other platforms and ecosystems and made them better.
• For example, the addition of Widgets which has long been a feature of Android but so haphazardly implemented that they cause far more problems than they solved.
• iOS14 has an elegant implementation that looks excellent, has some innovative user experience touches and as a result is likely to be popular.
• Another example is App Clips (temporary mini-apps) which has been attempted a number of times elsewhere but never really worked well.
• Apple’s version looks like the best attempt yet to provide access to functionality on a one-off basis via a temporary download.
• Authentication and payment can be provided via Apple Sign In and Apple Pay.
• Stickers with an NFC and an Apple Proprietary QR code (which looks much better than the ordinary ones) can be placed at places of business or equipment to trigger the enabling App Clip.
• Other enhancements including sleep tracking, new workouts as well as better control over tracking by advertisers rounded out what I think is an update that keeps iOS fresh, relevant and most importantly, comfortably ahead of Android.

Developer love and support.

• Apple has reacted to growing criticism of its App Store practices (see here) by making two small concessions to developers.
  • First, challenge: Developers will be able to challenge the policies that they have issues with as well as appeal decisions by moderators which to date have been final.
  • Second, no delay to updates: Historically, Apple has held a gun to developers’ heads when they have needed to make an update to their app by blocking the update until the developer caves-in to its demands.
  • This has been a good way of exerting pressure on developers to obey rules that they do not agree with.
  • Updates will now not be delayed while the dispute resolution process runs.
• I think that these represent small concessions to developers but do not come close to the kind of freedoms and choice that some developers are after.
• This is because while there is a dispute resolution process, the ultimate arbiter will be Apple meaning that in reality not much will change.
• Apple will still be holding a gun to the developer’s head, but it will not be quite so obvious as it has been in the past.
• There is still a long way to go with this and I think at the end of the day, Apple will end up cutting its revenue share because the App Store delivers far more value to Apple than the 7% of EBIT that it generates in monetary terms (see here).

Mac silicon.

• Apple announced one of the worst kept secrets in its history (I suspect deliberately leaked) by announcing that the mac will be joining the rest of its devices by moving to Apple’s own custom silicon.
• This involves both the CPU and the GPU based on Arm and will first appear on new macs launched by the end of 2020.
• The key message here was “performance per watt” and Apple spent quite some time hammering this home.
• Reading between the lines, this means that macs, where battery life is crucial (laptops), will be migrating first with the hugely powerful desktop macs coming later.
• This makes complete sense because it is here where the benefit of an Arm processor will be most recognised.
• It also further indicates that Apple has not yet cracked how to emulate the very high performance that the top of the line Intel and AMD chips can provide which is crucial for its very high-end desktop macs.
• Apple also said that it still had some Intel-based designs in development and so I suspect that the pro desktop line has another design cycle to go before it makes the transition.
• The other issue is software compatibility and Apple has made a big effort to ensure that this goes as smoothly as possible.
• It has brought back Rosetta (used in the transition from power PC to Intel) as well as other tools to ensure the transition is as seamless as possible.
• Apple estimates that it should not take developers more than a day or two to port their apps over to the new architecture and that Microsoft and Adobe are already well into the process.
• This move has the effect of bringing its devices even closer together as apps will run soon be able to run natively everywhere which will enhance the cross-device appeal.
• However, this is a big move and it needs to go smoothly if Apple wants to leave Intel completely behind and complete its verticalisation strategy.
• Apple has already done this twice and I think it has a very good chance at making this work well.

Take-Home Message

• This is one of the better upgrades I have seen for some time and it is encouraging to see Apple playing to its strengths.
• This means that the iOS user experience is going to take a noticeable step forward with the release of iOS14.
• This combined with the move to custom silicon in the mac ties the ecosystem more tightly together which will further its appeal to the fan base.
• Android’s updates, by comparison, are humdrum and most commentators (including me) can’t remember what changes are being made in the next version.
• Apple holds its crown but the underlying market outlook is not great for smartphones this year and so Apple is becoming an expensive stock.
• I would not hold it but then I am not holding anything.