Apple in Peril? Do the Q2 Results Signal America's Largest Company is in Financial Turmoil?

No

Apple's March Press Event: The Highlights

Today Apple held a press event which saw the release of a new iPhone, iPad and more. Here is a summary of the details:

- Tim Cook started by talking about Apple's 40th birthday on April 1st, and discussed the ongoing security case in the US

- Lisa Jackson talked about Apple and the environment, and their ambition to use 100% renewable energy. To date 93% of worldwide facilities run on renewables and 100% in the US (people may question the purpose of this presentation but this is a big aspect of the Apple brand)

- Jeff Williams presented update on HealthKit, used in the iPhone, iPod and Apple Watch. He showed how medical research can be improved by HealthKit due to the large number of participants. He also announced CareKit, which helps to monitor patients, especially those recovering from treatments/operations

- Tim Cook reported that Apple Watch is the top selling smartwatch, and introduced new woven bands, plus new sports bands. There are also new black Milanese Loop and new leather bands

- The price of the Apple Watch also dropped to $299

- On Apple TV, from today you will be able to organise apps into folders, enter text through dictation and view Live Photos

- Greg Joswiak introduced the new low end 4" iPhone- the iPhone SE. It comes with the A9 chip, 12MP camera, ApplePay, better battery life, Live Photos. It is twice as fast as the 5s.

- iPhone SE begins at $399 (16GB) or $499 (64GB) and starts to ship by the end of March

- iOS 9.3 is due out later today and includes Night Shift to help with use at night, Touch ID to protect Notes, Health update, top stories section to Apple News, improved CarPlay support, plus Education app for classrooms

- Phil Schiller introduced the new 9.7" iPad Pro. It weighs less than 1lb, comes with an A9X chip, new speakers, 12MP camera with support for 4K video and Live Phots, plus it works with a new Apple smart keyboard and Apple Pencil

- iPad Pro 9.7" prices: 32GB: $599, 128GB: $749, 256GB $899. The iPad Air 2 stays around but drops in price

- Tim Cook ended by saying he expects Apple to move to their new campus in 2017 and so this was the last event held in the Apple Town Hall venue

This event was not a blockbuster- and was never intended to be. It was an incremental update of the iPhone and iPad lines, along with formally launching the new tvOS and iOS updates. The next event will be WWDC, probably followed by an iPhone 7 launch in the Autumn.

Reflections on the Apple Watch

Having used an Apple Watch for about 10 months now it has become part of my daily life. I still wear and use it, but maybe what I do on the Watch may be very different to what I might have expected at the start:  

What I like:

1/ Notifications: for me the Watch is a Notifications device. When it buzzes I know I can turn my wrist and see what's happening. I know who has emailed or texted even if I don't have time to read the full message.  This way I know if I need to act on something (problem with the kids' pickups etc) or if I can deal with it later. Just knowing what and who is so helpful, especially when I am teaching for a few hours and don't have time to take a call or compose a full reply.

2/ Rapid responses: the point above leads on to the responses.  I love the ability to fire back a quick reply, such as "on my way" or "will call later".  This can be done with the turn of the wrist, tap to reply and then selecting from the pre-set responses. Simple, quick and relatively non-intrusive when you are working with other people (certainly compared to unlocking the phone and typing in front of them!!). 

3/ Comfort: I forget I am wearing the Watch.  The standard rubber sports strap is so comfortable that I forget it is on my wrist, something which did not happen in the past with conventional watches. I always disliked leather straps and gave up wearing a watch a fews years ago before the Apple Watch came out. The only time I notice the Watch on my wrist is when I start to do a job in the garden or lifting boxes- then it gets in the way and I take it off.  The Apple Watch is not the thinnest watch out there and can get knocked. In fact I cracked the edge of the screen in the first month, but thankfully the Watch has held together and it has not been an issue.

4/ Activity: ok I do tend to ignore a lot of the "stand" and exercise notifications from the Watch these days, but I do like to look back at how many kilometres I have completed or the number of steps I have (or haven't) taken in any given day. It does make me conscious of the need to exercise and that's not a bad thing!

5/ Calls: being able to see a call on your wrist when your iPhone is zipped up in the coat pocket somewhere else in the house is cool- and the ability to take that quick call or reply with a text is amazing.

6/ Maps: once you set your route on your iPhone and start your journey, the Watch vibrates on your wrist to tell you to go left or right. This is amazing when driving and keeps my eyes on the road instead of glancing at the iPhone screen. I don't like the audio from Apple Maps and it does not work great in my car as I listen to the radio channel (I need to listen to the AUX channel to hear the Siri and Maps notices). But the wrist vibrations lead me along perfectly!

7/ Photos: I have my family photos on the Watch face and each time I look it shows me a new photo. Plus with Live Photos taken on my iPhone 6s, if i lightly tap a photo it moves. It is simply a nice touch.

8/ Battery Life: each night I charge the Watch on my bedside table. Battery life is never an issue- I have forgotten about the Watch battery as it never runs out nor does it even come close to running out.

Not so hot...

1/ Apps: ho-hum. I really don't use them. Yeah I can see my bank balance or tweet or read a news story. But I would instinctively rather do this on the iPhone or iPad. About the only app I use regularly is Apple's Remote app for my Apple TVs. The ability to control the TV from my wrist is great. But the rest of the apps... Not so sure.

2/ Apple Pay: I would use this.  But I can't. I do hope that this comes to Ireland soon as I can see myself using this all of the time instead of fumbling for credit cards from my wallet.

3/ Friends Button: I never use this. It is supposed to be a way to call up a group of frequently used contacts by pressing the button on the side and then selecting the person from your "circle".  I never use it.  Instead I go straight to the Messages app or into the Phone app. So for me this is a bit of a waste of a button on the side.

4/ Speed: at times this is awful, and possibly one of the reasons I don't use the apps. They can be excruciatingly slow to load and I tend to press the home button to quit out long before it eventually gets there! This is the poorest part of the Watch design. Also, when I receive an email with a photo in it, it is painful to scroll through as the Watch has problems handling the image. Definitely room for improvement here Apple when your get to Watch 2.0 (software and hardware!).

Overall though I love my Watch and will be using it for the foreseeable future. It has become part of my routine and I would miss it a lot if I had to give it up.

Happy Christmas!

Happy Christmas to all of our clients - and best wishes for 2016!

We will be closed until January 4th but look forward to helping out in the New Year. 

Don't forget to check out our award-winning Early Myths books for kids- great estocking fillers!

Update on Apple Press Event- iOS 9 & OS X El Capitan

Apart from new devices, Apple also announced the dates for the release of their two main operating systems-

- iOS 9 for the iPad, iPhone and iPod touch- to be released this Wednesday (September 16th)
- OS X El Capitan for Macs- to be released on September 30th
(for Apple Watch users, they also announced Watch OS 2.0, to be released on Wednesday)
Here is a quick rundown of the highlights:

iOS 9:

iOS 9 is the new operating system for your iPhone and iPad. Here are some of the new features announced.

New Notes App: Notes gets a major overhaul, allowing for checklists, images, web-links and other pieces. You can even add sketches with your finger:


Split screen: iOS 9 allows you to split your screen in two, with one app on the left and another on the right. This is great for copying and pasting between documents, or checking on emails when reading an article. It makes the iPad into even more of a multitasking device:


Battery life: Apple claim that they have improved the efficiency of iOS and they estimate that you will get one more hour of battery life after the upgrade.

Maps: in major cities, users will now be able to access transport information in Apple Maps, such as subway/underground stations and bus stops.

Picture in Picture: when watching a movie or holding a FaceTime call, you can press the Home button to scale this down into a smaller box, so you can check information in another app.


Shortcut bar: the row above the keyboard is now used for shortcut buttons, such as copy, paste, bold, italic etc. These handy buttons should help when typing longer documents:


New font: iOS 9 uses a new font for its menus and labels- this might be why it will look a bit different!

Security: users can set 6-digit passcodes in iOS 9 (instead of the older 4 digit codes).

Compatibility: any device running iOS 8 can install iOS 9; Apple have not left out any of the older models with the update.

OS X 10.11 El Capitan:

For the Mac, OS X’s latest editon is El Capitan, named after a peak in Yosemite National Park. OS X El Capitan is a refinement on last year’s OS X Yosemite, but also brings some welcome features:
1/ as we saw with iOS 9 above, you can split your screen between two of your apps, so it is simple to move information between documents from two apps:

2/ Spotlight search has improved, and you can look for items using plain-English phrases. For example, if you type “documents I worked on last week”, your Mac works out what you need and presents the results:


3/ events and contacts- now your Apple Mail app will pick up info in your emails. It displays a strip at the top of the email message, where you can click “add" to place them in your Calendar or Contacts apps:


4/ speed! Apple have aimed to refine OS X in El Capitan, so opening apps should feel quicker and windows should open up faster.

5/ many of the changes arriving in iOS 9 are also coming to the Mac:
- new Notes app
- public transport info in Maps

6/ tiny but handy change- if you return to your Mac and it sometimes takes you a second or two to find your pointer on the screen- fear not! Under El Capitan, if you shake the pointer it zooms up on the screen for a second to attract your attention!

El Capitan (10.11) will arrive at the end of September and will run on any Mac which can already run Yosemite (10.10).

Update on Apple Press Event- New Devices:

Apple held a press event last week to introduce a number of new gadgets- here is a quick summary of what they announced:


iPhone 6s and 6s Plus:
The new iPhones come in the same shape and form as the previous iPhone 6 and 6 Plus. These models are aimed at people who are still using an iPhone 5s or earlier. Most users sign up for a two year contract and this is why iPhone 5s (or earlier) users are the target as they are now coming off those contracts. iPhone 6 users will only find marginal differences to lure them away from their current phone.
The main changes in the iPhone 6s models are as follows –
- comes with a brand-new A9 processor meaning that it is a lot faster (up to 70%) than last year's iPhones
- new 3D Touch technology which means if you press slightly harder on the screen it will bring up a pop-up menu with some different options to choose from. This is a great way to access features inside an application without having to tap through a number of screens.
- there are a number of improvements to the camera including an upgrade to a 12-megapixel sensor
- new colour- rose gold!
- faster WiFi.

Note:
- The storage options remain the same – 16, 64 and 128 GB. very few people should consider a 16 GB model as this is too small for most users.
- the new iPhones are available to order in the US and UK, but not in Ireland for another few weeks.
- in the US, Apple have launched an upgrade program in their Retail Stores. This means you can pay a monthly fee and always be on the newest iPhone- it costs around $40 per month and users get to upgrade each year to the latest equivalent model. It also comes with AppleCare+ and so gives a complete solution in a monthly fee:

iPad Pro:
The iPad Pro will be available later this year, starting in the US in November. This is a new model of iPad which is placed at the top end of the range, and will be useful for certain people who need larger screen space. The new screen is almost 13” and gives almost the same space as two iPad Airs. This is unlikely to become the mainstream model of iPad, but instead a device which will be used by professionals who need multiple applications and lots of space.

The iPad Pro can also be used with a new stylus (Apple Pencil) which will be helpful to designers and artists. The other accessory introduced is a keyboard which is built into a screen cover. This will make the iPad Pro a strong alternative to a laptop.

Apple seem to be aiming this iPad at the enterprise market. The iPad Air and iPad mini models are still available and remain unchanged.

Apple TV:
The new Apple TV opens up a whole range of new features, most notably apps and games. There will be an App Store available on the Apple TV where developers can sell a range of new apps. The look and design of the Apple TV interface has also been updated.
This positions the Apple TV as a living room multimedia device and not just for TV/Films and Music. The new remote control also acts as a game console controller.

Siri (voice-recognition) is built-in so you can ask your Apple TV questions, such as for movie suggestions, information about who stars in the film you’re watching or command it to open an app for you.
The new Apple TV will go on sale later this year.

Two other snippets:
- iOS 9 will be released this Wednesday, and will be available as a free download on your iPad and iPhone:
- the next version of OS X, "El Capitan", will be released on September 30th:

What Does Alphabet Mean for the Google Brand?

This week's news that Google is to create a new umbrella organisation called "Alphabet" raises a question about the Google brand. Splitting the Google company out into segments may well be the right corporate choice, but does it harm the values and identity of Google?

Firstly let me mention Apple (it is compulsory on this site!). Apple's brand identity and values inform so much about what it makes, how it acts and what it says. Apple rarely call it the Apple "brand" but Jobs and now Cook frequently speaks about the Apple way and how it approaches each decision in business.  Some of the recent criticism of Apple Music focussed on how the service was confusing and possibly at times very un-Apple due to the complexity of the choices and the array of services (Apple Music, iTunes Match, iTunes Store etc). 

This also relates to other aspects of the company. John Gruber, recently discussing appointments to the Apple board, said that : "The company attributes its profound success over the last 15 years to the Apple Way — and rightly so, I say. I doubt Apple’s board would consider an outsider as CEO until and unless the company falters significantly and loses its way."

This idea of an Apple "way" is what I would call the brand. A brand identity does not stop at the product or service, but should extend into every aspect of the decision-making process. This is certainly true for a company like Apple, which is a lifestyle brand. Apple can be in multiple markets such as PCs, tablets, phones, watches, cloud computing because their entry and their success in that area is informed by the core Apple brand. Their approach to each category is informed by their central values- taking a beautifully designed product or service to the consumer and making it as easy as possibly to understand and use. Excellence in product execution, delivery and support crosses all of Apple's markets. Apple rarely enters new markets, but when it does it is because it feels it can contribute to this category but remain true to its values. 

Which leads us back to Google. Most of the income at Google comes from search. For me, Google is a science plan. In terms of its brand, it is clinical and accessible, but not loveable. Its values centre on efficiency and connectivity and when this is applied to search or maps they are highly effective. People use Google services because it is efficient and fast, not because they have a major loyalty to Google or feel close to its values. 

So when it comes to splitting out the parts which make up the current Google structure, it is rather like splitting atoms or engineering components. Many of the elements in the current Google mix sit alongside their counterparts like odd ends in a box. Google search currently sits next to Maps, Android, Docs, Glass, YouTube and Gmail. The organisation feels like a collection of odds and ends, packaged together but not sitting neatly like bricks in a home. There is no strong central brand which holds these parts together. 

It may well be argued by Google that they have brand values- I don't doubt for a second that they have spent time and money on this. But the brand identity is a lose collection of ideas- being unconventional, innovative and experimental all spring to mind. But does the customer care about this? Hardly. Cutting the existing Google into pieces and calling it Alphabet matters from a corporate point of view, but the consumer will continue to search and navigate with its products, almost unaware of any change.

In the end this is due to how the Google brand sits in the heart of the consumer- a change induces a shrug of the shoulders at best, mostly people won't even notice. Emotionally the brand is something of a blank canvas, an open toolbox for new concepts and products as time passes. Breaking these pieces apart would matter to Google if its brand had been developed in the way that Apple had; but this is not the case. 

So while Google can be split into its constituent parts and renamed as Alphabet due to the openness of its brand identity, the danger lies in that those parts can also be replaced by consumers and perish without the customer feeling any sense of loss. In the fast moving world of technology, Google relies on superior function to keep users interested. It certainly can't depend on loyalty or passion for its brand values.

The Future of iBooks

As a children's book author, I have been considering Apple's future options for iBooks and whether they would venture into the world of Windows or Android.  After all, iTunes runs on Windows PC and Apple Music will be available on Android this Autumn, so why not iBooks on other non-Apple platforms?

But when I look closer at Apple's use of iBooks, I don't see this happening. Books is an interesting side-show for Apple and it fits nicely into content-consumption on the iPad and iPhone but it's not a core business. The iBooks Store arrived with the iPad, as Apple touted the virtues of books on the iPad for consumers and in education. But it is not central to Apple's business and so does not receive the attention that say the iTunes and Apple Music stores receive.

Anyone who has interacted with the iBooks team will also know that the number of people behind iBooks is relatively small. The changes in the iBooks Store over the years have been gradual but not revolutionary.  

Instead, Apple see the iBooks app as an important piece inside iOS and OS X. The benefits of the iBooks app come as part of the operating system and the user experience on an iPad, iPhone or (recently) Mac, and launching a parallel experience for Windows and Android is not something Apple will do.  iBooks is key to iOS/OS X, which in turn is part of the user experience on an Apple device.  The message is- if you want to experience the iBooks app, buy an iPad, iPhone or Mac!

Adding iBooks to the Mac was a nice extra but it is a different experience to using it on an iPad and iPhone. iBooks is most at home on iOS and especially on the iPad, then possibly on an iPhone 6 Plus, with other platforms such as the Mac coming at the end. Putting it onto Windows or Android is a further step away from Apple's central aim here. 

In the end, while I would like to see iBooks extended out beyond iOS and OS X, I can't see it happening. With my author hat on, it would be great to reach new audiences. But as a long-time Apple observer, it goes against Apple's aims for iBooks, which is to draw more people to buy the iPad and other hardware devices.

[Note- at time of publication, the iBooks Author page still has not been updated to show that iBooks Author books can be read on an iPhone: https://www.apple.com/ibooks-author/]

WWDC Highlights

Looking back at the WWDC keynote, it is worth reflecting on what was good and what was not so great:

iOS 9: this looks like a solid upgrade. It will be free, will arrive in the late Autumn, and should help to make the iPad a more work-orientated device. The changes to the keyboard, such as new shortcuts when working with text, are very welcome. So too is the idea of the virtual trackpad. The iPad can be fiddly when working with text- my Mac is always my preferred machine for letters and documents. But these changes should help. I am typing this post on an iPad because I love its mobile capabilities which even the MacBook Air can't match. But typing does take longer on an iPad, and so anything to help is welcome. 

The multitasking features such as the split screen looks great, but it was a pity that it will only be fully available on a new iPad Air 2. My iPad Air 1 feels a bit left out, and this may well be the inventive to drive new iPad sales (reasonably Apple's intention, given how slowly people upgrade iPads).

OS X 10.11: also looks like a slick update, with a real focus on stability and bug fixes. I love when Apple do this as it helps all users and solves a few headaches for me when teaching about the Mac. 

Music: well, that was all a bit of a mess.  It has been a long time since I groaned at the style of an Apple keynote, but this was pretty bad.  It seemed chaotic, long, and without a real focus. I am also not sure that the Music app and streaming service will appeal to me. I can see how people like Spotify and Apple wish to get in on this game, but I will have to see what it is like when launched. It does not seem to be something I will be paying a monthly fee for. The three month free trial is a good hook though as I will certainly take a look.

--

Overall the keynote was way too long, and seemed to get out of control. Tim Cook started to run on and off stage towards the end and this gave the whole thing a panicked and rushed feel. It is a pity as I really liked the early part and the main iOS and OS X announcements. When it got to the Music section I nearly turned off. But overall the announcements set out an exciting set of changes for 2015-6.

WWDC 2015- What to Expect

Apple's developer conference, WWDC, is coming up next week with the keynote address on June 8th. Everyone should note that this event is geared towards developers and so some of the announcements are not focussed on consumers. Instead this event normally sets out the Apple agenda for the coming year, especially in terms of software. 

One of the main parts of this will be the announcements on iOS 9 and OS X 10.11. Apple have committed themselves to a yearly upgrade schedule, and assuming this does not change, we will be introduced to a preview of the next versions. Expect to see information on items like CarPlay and HomeKit too, both aimed at the developer community. Showing off the new operating systems is key to working with the developer community. 

However we are also likely to see the launch of two other item- the first is the revised iTunes and Beats Music service. Ever since Apple purchased Beats in 2014 it has been expected that we would see a revised service from Apple, including a music streaming service. It may be that we see this announced at WWDC but this could also come later in the year, which was traditionally the event when iPods, iPads or iPhones are launched. I expect to see an announcement at WWDC if Apple can get agreements in place with the record labels. 

Apple TV will also be updated- the announcement earlier this year that the price of the current Apple TVs had dropped to a new low seemed to be a very strong hint of new hardware to come. A new Apple TV would also sit nicely next to a Beats music announcement, with a deal with other TV network operators likely. Apple announced a deal with HBO in March. 

Don't expect much change in terms of Macs; the laptops have been updated recently. I expect the iMacs to be revised later this year and so one possibility is news on revised Mac Pros, something which might be appreciated by some developers. 

Another intriguing piece of info would be the Watch OS- will Apple show off changes to Watch OS and announce new features? I expect to see Apple announce changes to attract high quality Watch apps and because this is the year of the Watch and Apple will be promoting these new features in the Christmas buying season. 

Overall is is likely to be a tech-heavy keynote, setting out the software and a few hardware bits for the rest of 2015. 

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