Apple's iPhone 16 line should convince a lot of consumers to upgrade, says Creative Strategies CEO

Published: Sep 09, 2024 Duration: 00:05:44 Category: News & Politics

Tags : Breaking News money World News us news financial news news channel stock market stocks business news CNBC news station finance stock cable cable news finance news money tips stock market news Closing Bell Overtime

Trending searches: apple stock

>>> WELCOME BACK. FRIDAY HERE ON "OVERTIME", I WALKED YOU THROUGH SOME THINGS SUPER CYCLES HAVE HAD IN COMMON TO HANDICAP WHETHER WE'LL GET ONE THIS TIME OR NOT. THERE ARE THREE CATEGORIES. NEW NETWORK AND AI CAPE TBLTS LIKE WITH THE iPHONE 4S FACETIME AND GEOGRAPHIC EXPANSION LIKE WHEN THE CHINA ROLLOUT ACCELERATED, AND IMPROVED SCREEN AND CAMERA FEATURES WITH THE iPHONE 6, 10 AND 12. LET'S LOOK AT HOW THE 16 SCORES. NETWORK AND AI, YES, PHOTOS, STORIES, AI VIDEO, MOMENTS SEARCHED WE SAW THERE, THERE'S EVEN AI TO CREATE VIDEO OUT OF THE PHOTOS AND VIDEOS IN YOUR LIBRARY. AND SIRI IS ENHANCED NOW WITH GENERATIVE AI. WHAT ABOUT GLOBAL EXPANSION? NO. APPLE INTELLIGENCE FOR NON-ENGLISH LANGUAGES A LOT OF THEM COMING NEXT YEAR, PARTICULARLY INDIA AND CHINA ARE IMPORTANT BECAUSE THEY HAVE HUGE POPULATIONS. AND THE SATELLITE COMMUNICATIONS FEATURES AREN'T GOING TO BE AVAILABLE IN CHINA AND INDIA INITIALLY. HOW ABOUT SCREEN AND CAMERA? YES, YOU HAVE THIS NEW BUTTON FOR CAMERA CONTROL. YOU CAN SEARCH FOR TAKING A PICTURE OF A DOG AND IT WILL TELL YOU WHAT KIND OF DOG IT IS. ALSO THE CAMERA ITSELF HAS BEEN IMPROVED WITH MACROCAPABILITIES BEING ABLE TO GET CLOSE. AND THERE'S A BIGGER BATTERY ON THE PHONE OVERALL. LARGER DISPLAY AS WELL ON THE PRO MODEL, SLIGHTLY LARGER, BUT STILL LARGER IN THIS REDESIGN. 2 OUT OF 3. HOW DOES THAT FAIR? LET'S TALK MORE ABOUT IT WITH OUR NEXT GUEST JOINING US NOW IS BEN BAHRON. YOU'RE AT THE EVENT. WE LOOKED THROUGH WHEN WE HAD SUPERCYCLES IN THE PAST. WE'RE NOT GOING TO HIT IT IN 2024. DOES IT LOOK POSSIBLE EVEN LIKELY IN 2025? >> I THINK YOU HIT ON ALL THE RIGHT POINTS. THE DYNAMICS THAT LED TO THE LAST SUPERCYCLE, WHICH INCLUDED A GOOD PORTION OF UPGRADES BEING PULLED FORWARD. IT'S REALLY JUST A FPHENOMENON HAVE A HARD TIME BELIEVING WE'RE GOING TO SEE AGAIN. THE ONE REALITY IS THEY HAVE A VERY AGEING INSTALLED BASE. THE BIG QUESTION THE LAST FEW YEARS HAS BEEN WHEN IS A GOOD PORTION OF BASE THAT'S ON FOUR AND FIVE-YEAR-OLD JOINS GOING TO UPGRADE WHEN THEY HAVEN'T FELT THE NEED. AND I THINK THAT WITHIN THE iPHONE 16 LINE, THEY HAVE OFFERED ENOUGH VALUE THAT I THINK THAT'S GOING TO CONVINCE A LOT OF CONSUMERS. IN YEARS PAST, WE NOTICED A SHIFT TOWARDS iPHONE PRO THAN THE BASE LEVEL. I THINK THAT MIGHT REBALANCE AGAIN THIS YEAR JUST BECAUSE OF ALL THE FEATURES AND TECHNOLOGY THAT'S PACKED INTO iPHONE 16 AND AGGRESSIVE CARRIER UPDATES. I THINK WE'LL SEE A STRONG CYCLE TO UPGRADE. PARTICULARLY, THAT'S GOING TO BENEFIT THE iPHONE 16. >> PART OF THE STORY OF THE LAST FOUR YEARS FOR THE iPHONE LINE HAS BEEN THE BROADENING OF IT. PEOPLE WERE SHOCKED WHEN THE iPHONE 10 COST $1,000. WITH US THEY ACTUALLY MANAGED TO BUILD ON THE PRO AND PRO MAX MODELS GOING ABOVE THAT. THEN THE iPHONE SE, THEY TURNED THAT INTO A VIABLE, THOUGH UNDERPOWERED, BUT VIABLE 450 ROUGHLY OFFERING AT THE LOWER END. HOW MUCH DEPENDS IN THIS SUPERCYCLE ON HOW MUCH THEY ARE ABLE TO SHIFT THAT REVENUE MORE TOWARDS THE HIGHER END OF THE LINE? THEY DON'T GIVE US A BREAK DOWN ON UNITS VERSUS REVENUE. IT'S HARDER THAN IT USED TO BE IN THE PAST. >> I THINK, OBVIOUSLY, ANALYSTS WILL DO THEIR BREAKDOWN. IF YOU FOLLOW MY LOGIC THAT YOU MIGHT SEE A STRONGER, WE'LL HAVE AN ASP DYNAMIC. WHERE IT'S SKEWED TOWARDS THE PRO. BUT I THINK YOU'RE RIGHT. A GOOD PORTION OF US SORT OF SEEING IF A SUPERCYCLE PLAYS OUT, IS A GOOD PORTION OF THE UPGRADES BEING PULLED FORWARD. UPGRADES WILL HAPPEN IN TIME. I THINK THIS MAKES A VERY ATTRACTIVE OFFERING FOR THAT VERY BASE THEY ARE SEEING. I THINK THIS IS THE STRONGEST BASE LEVEL iPHONE 16 THAT THEY HAVE LAUNCHED IN SOME TIME. I THINK THAT WILL HELP. I DON'T THINK WE'RE GOING TO SEE A DRASTIC PULLING FORWARD OF UPGRADES BASED ON THE HARDWARE. WE HAVE AN AGEING BASE. A PORTION OF THAT IS GOING TO FALL INTO THE NEXT SIX MONTHS. >> DO YOU THINK THERE'S ANY PARTICULAR ADVANTAGE TO CARRIERS IN SUBSIDIZING THE AI-ENABLED VERSION OF THIS PHONE? IT'S NOT LIKE IT'S A NETWORK UPGRADE THAT YOU'RE SUPPORTING. DOES IT MATTER IN THE CALCULOUS? >> I THINK IT DOES JUST FROM A CONTRACTUAL STANDPOINT. THERE'S ABILITIES TO LOCK IN MORE OF YOUR CUSTOMERS, EVEN IF YOU DO THAT UPGRADE. YOU'RE STILL AGREEING TO STAY WITH THAT CARRIER FOR A LONG PERIOD OF TIME. THERE MIGHT BE OTHER PRICING DYNAMICS. . THEY MIGHT SAY HERE'S AN AM WATCH. HERE'S CONNECTIVITY FOR THAT DEVICE. THEY ARE OFFERING MORE DEVICES PER PERSON. THEY ARE USING THAT TO BROADEN THEIR ECOSYSTEM AND PULL THEM IN. BUT THEY WANT LOYALTY. THEY WANT CUSTOMERS COMING AND STAYING ON THEIR NETWORK. THERE ARE ECONOMIC ADVANTAGES OVER TIME REGARDLESS OF MODEL. I'M NOT SURE THAT THE AI FEATURES DO ANYTHING TO DRIVE MORE DA TARKS BUT IT JUST CUSTOMER LOYALTY

Share your thoughts

Related Transcripts

CrowdStrike shares spike after first quarterly report since global outage

Category: News & Politics

We are going through it. we'll bring you those numbers. we've got them. let's get to steve kovach with those numbers. >> like you say, we're seeing the stock up nearly 5% on these numbers. we cannot compare it to estimates quite yet. eps is coming in at $1.05 adjusted and revenue coming in at... Read more

Cloud computing environment remains 'very healthy', says Goldman Sachs' Eric Sheridan

Category: News & Politics

>>> welcome back big tech and chips boosting the nasdaq and powering the remarkable turnaround in the major averages joining us now is eric sheridan who is in san francisco at the annual communacopia conference it's great to have you you led quite a number of conversations including with the heads... Read more

Peloton co-founder John Foley resigns, Karen Boone takes over as board chair

Category: News & Politics

Overseas as you mentioned. we'll see if that ends up working. thanks a lot. >>> breaking news on peloton bertha coombs has the story. >> ceo barry mccarthy announcing the company's co-founders have resigned executive chair john foley stepping down effective immediately six months after the co-founder... Read more

First private spacewalk crew Shift4 talk countdown to historic mission

Category: News & Politics

>>> nearly three years after -- made history@inspiration for space flight r, he is headed back to space. polaris is scheduled to launch august 26th and it too will be historic. the all civilian crew will spend five days in orbit inside a dragon capsule flying higher than any humans have since... Read more

Adobe CEO Shantanu Narayen: 'We had a very strong Q3 across all aspects of the business'

Category: News & Politics

7% sharing surging today. >> up some 17% just about in overtime thanks adobe shares falling in overtime after results beating on both lines. guidance though coming in short of expectations. joining us now ahead of the conference call with analysts is the adobe ceo. good to see you. strong performance... Read more

Sunnova CEO talks outlook for solar energy ahead of election

Category: News & Politics

Investments in clean energy. outperformers today include first solar, sunrun, and solar edge sunova's founder, chair, and ceo is with us not only did we see solar stocks move higher today, but in the case of your company specifically, dramatic moves in the past month, the past three months how much... Read more

We can go between markets that other airlines can't, says Breeze Airways CEO David Neeleman

Category: News & Politics

Introduction >>> welcome back. low cost airline breeze airways offering new stops, portsmouth, new hampshire and telluride, colorado. they screened a record number of passengers on july 7th topping 3 million in a day for the first time ever. joining us now is breeze airways ceo and founder david... Read more

Evercore's Daryanani: Apple Intelligence details will help determine if this will be a super cycle

Category: News & Politics

From donald trump when he bashed gary gensler, not a fan, that industry. >> gensler doesn't have a lot of fans. >>> turn back to apple, the company expected to unveil its newest watches, air pods, lot of things as well as the latest apple intelligence. joining us to discuss evercore's isi, $250... Read more

Eli Lilly's Zepbound single-dose vials will expand access to more patients: Mizuho's Jared Holz

Category: News & Politics

Last of the major american sports leagues to take this step. >> eli lilly announcing single-dose vials of its anti-obesity drug, zepbound. the company says that these will be available for self-pay for patients with an on-label subscription, and that they'll be discounted. lily says this will... Read more

The 3M debate: Jenny Harrington sells but Josh Brown stays long

Category: News & Politics

>>> we are back and we're going to have a debate because jenny just sold 3m, which, as you know, has just crushed it lately. josh owns it, is not selling. jenny, why did you sell 3m? >> so it has to do with when we owned it, why we owned it, and what its point in the portfolio was. now, remember,... Read more

Former Maryland Gov. Larry Hogan on 2024 Senate race, the national debt and working across the aisle

Category: News & Politics

Salesforce set to pop at the open. a big upside. nasdaq ahead by 47. >>> race are to the open u.s. senate seat in maryland is heating up. former republican governor larry hogan is taking on prince georges county executiveangela o ossalbrooks. former governor hogan joins us this morning and larry,... Read more

The Fed needs to make an emergency cut, says Wharton's Jeremy Siegel

Category: News & Politics

49.80 49.80 and earlier tom lee said when we see the vix peak coming down a little, that could indicate some kind of -- >> joining us is chief economist at wisdom tree, and jeremy, i hate -- you probably aren't happy to say i told you so either given, you know, what we're witnessing, but you... Read more