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Bloomberg's Butler on Potential of New Apple iPhones (Audio) · Bloomberg Intelligence

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  Speaker 1: twenty seven. I'm Charlie Pallett, and that's a Bloomberg Business flash.
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  Speaker 1: You're listening to take the stof with Kathleen on Bloomberg Radio. Apple.
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  Speaker 1: The shares of Apple so far this year have increased
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  Speaker 1: just two point seven percent. Right now, the shares of
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  Speaker 1: Apple are hired by sixty one cents, a hundred and
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  Speaker 1: eight dollars and nine cents. Well, what could drive the
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  Speaker 1: share price of Apple higher? Well, how about an even
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  Speaker 1: more amazing new iPhone. Here to tell us more, John Butler,
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  Speaker 1: senior Telecom Services and Equipment analysts for Bloomberg Intelligence. You
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  Speaker 1: can follow John on Twitter at John Underscore Butler twenty
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  Speaker 1: five because he's only years old. And just to mention
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  Speaker 1: terminal customers can access this function at b I Go
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  Speaker 1: John Butler, Go app Bowl And a new iPhone. Yeah,
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  Speaker 1: so we do. We have a new iPhone coming hopefully
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  Speaker 1: in September. They never announced an official day, but there
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  Speaker 1: are September Company when it comes to uh to the
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  Speaker 1: iPhone launches. And what's interesting this year PIM is the
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  Speaker 1: iPhone seven is going to be another soft upgrade. And
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  Speaker 1: what I mean by that is Apple has a long
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  Speaker 1: history of every two years doing a major forklift upgrade
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  Speaker 1: on the hardware and then on the off years doing
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  Speaker 1: a feature upgrade. We got a feature upgrade last year
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  Speaker 1: with the iPhone six ass and so everyone's hearing that
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  Speaker 1: the iPhone seven upgrade is going to be a little soft.
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  Speaker 1: It's not going to be that major forklift upgrade. But
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  Speaker 1: if you run down some of the features, they're interesting
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  Speaker 1: to me. You know, they're going to come out with
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  Speaker 1: a dual camera system, which is going to improve low
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  Speaker 1: light shots and hopefully provide for some three D shooting
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  Speaker 1: on video. They're taking away the headphone jack were We're
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  Speaker 1: going to get to that in just a second, right,
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  Speaker 1: because I'm gonna press you on this one, all right.
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  Speaker 1: So it's got a dual camera, and then it's changing
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  Speaker 1: the home but the home but the home button is
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  Speaker 1: now going to be tactic. In other words, it's when
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  Speaker 1: you hit it, it's gonna vibrate when you hit it.
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  Speaker 1: Today it actually has to click. You have to depress it,
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  Speaker 1: and there's it hasn't been problematic, but it's prone to breaking.
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  Speaker 1: And so you know, there are kids where you can
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  Speaker 1: fix your home button by taking apart your I phone
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  Speaker 1: and putting in a new part. But have you ever
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  Speaker 1: noticed that when you do that, there are these other
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  Speaker 1: little parts that remain on the table after you back together,
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  Speaker 1: and to happen, it happens with all of us. I
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  Speaker 1: take it to the genius bar. I think that's not
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  Speaker 1: not a bad idea. Okay, so our Apple new phones.
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  Speaker 1: Let's let's just let's continue down the path here, because
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  Speaker 1: from the business angle, this may or may not be great,
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  Speaker 1: depends how the market receives it. But you mentioned something interesting,
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  Speaker 1: which is that there are many people who will now
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  Speaker 1: upgrade not to this new seven, but they will be
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  Speaker 1: upgrading to the six. And there's an incentive, a financial
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  Speaker 1: incentive for that to happen to right, So we were
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  Speaker 1: we were talking about that before the spot um and
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  Speaker 1: I think we're gonna see it's gonna be a very
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  Speaker 1: interesting year for that reason. The iPhone success was a
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  Speaker 1: very good device. It didn't get a lot of takers
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  Speaker 1: because people are on these new financing plans. We're now
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  Speaker 1: coming to a period where the advent of those plans
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  Speaker 1: was two years ago. So you've got people with your
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  Speaker 1: two year old phones who are off the financing plans,
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  Speaker 1: are coming off the plans, so there are suddenly paying
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  Speaker 1: nothing for their device and they can re up their
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  Speaker 1: financing plan and get a new device. Do they want
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  Speaker 1: the headphone jack? Do they not want the headphone jack?
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  Speaker 1: For a lot of people, I think they're perfectly satisfied
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  Speaker 1: with the older model. Apple will typically price and older
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  Speaker 1: generation phone if they keep it on the market down
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  Speaker 1: about a hundred dollars, so on a relative basis, I
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  Speaker 1: anticipate it's going to be cheaper than the iPhone seven,
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  Speaker 1: So we may get one of those years again because
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  Speaker 1: of this soft upgrade of the seven itself. It might
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  Speaker 1: be a mixed bag for them. You may get a
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  Speaker 1: lot of people like myself who opt for the older
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  Speaker 1: generation phone, maybe a hundred You get a hundred dollars
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  Speaker 1: off and I get to keep my old accessories. If
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  Speaker 1: they do away with that headphone jack. Um, what's up
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  Speaker 1: with that? What what they're getting? The note that I
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  Speaker 1: read says that they are that they might know this
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  Speaker 1: all speculations, but if they got rid of the standard
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  Speaker 1: headphone jack, then uh, it would be to add to
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  Speaker 1: use that space for battery, for battery and speaking the
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  Speaker 1: speaker right in the phone. How are you going to
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  Speaker 1: connect your headphones? Is just gonna all be bluetooth? Bluetooth. Um.
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  Speaker 1: There's a rumor also that you'll be able to connect
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  Speaker 1: through a FireWire port in the bottom much you know,
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  Speaker 1: with the current connector that you have now on the ice.
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  Speaker 1: For everybody that has all those old FireWire cords and cables,
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  Speaker 1: don't necessarily throw them away. You might be able to reuse.
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  Speaker 1: You might be able to reuse them, but you don't
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  Speaker 1: have headphones with that connector. So I think the iPhone
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  Speaker 1: seven is going to require people to go out and
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  Speaker 1: buy new headphones, which, as we discussed, could benefit Beats
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  Speaker 1: which is now on by Apple. Uh they make bluetooth headphones.
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  Speaker 1: Um again, if if the wire line headphones, two cameras,
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  Speaker 1: uh speak, speakers, speakers, better processor, hopefully a better battery.
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  Speaker 1: I haven't seen a lot of talk about that, but
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  Speaker 1: the bigger iPhone, the iPhone Success Plus and the six
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  Speaker 1: plus have had battery life issues. So you know, I
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  Speaker 1: see a lot of people with those phones carrying around
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  Speaker 1: those external battery ports that you can plug into and
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  Speaker 1: give a little extra juice at the end of the day,
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  Speaker 1: and they have been to be using though the actual
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  Speaker 1: connector that is used in Android. Yeah, alright, I'm glad
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  Speaker 1: you're able to keep up with it all. John, Thank
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  Speaker 1: you very much. John, Butler. He is our senior Telecom
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  Speaker 1: Services and Equipment analyst for us here at Bloomberg Intelligence.
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  Speaker 1: You can follow John on Twitter at John underscore Butler.
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  Speaker 1: He's been telling us all about Apple and the potential
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  Speaker 1: of its new phones. This is taking stock. I'm pim Fox.
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