{"id":112802,"date":"2017-09-14T10:26:34","date_gmt":"2017-09-14T14:26:34","guid":{"rendered":"http:\/\/countingpips.com\/?p=112802"},"modified":"2017-09-14T06:27:31","modified_gmt":"2017-09-14T10:27:31","slug":"iphone-x-first-look-omg-or-smh","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/iphone-x-first-look-omg-or-smh\/","title":{"rendered":"iPhone X First Look\u2026 OMG or SMH?"},"content":{"rendered":"
September 14, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"iPhone<\/p>\n

\"LouisWant to see a chart that has Tim Cook shaking in his boots?<\/p>\n

The Apple CEO would prefer that this chart didn\u2019t exist.<\/p>\n

Heck, if the chart (below) were a company, Cook would simply buy it \u2014 and let his R&D department give it a new design.<\/p>\n

So what\u2019s so scary about this dastardly chart?<\/p>\n

It shows that Americans\u2019 smartphone usage has found equilibrium.<\/p>

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According to comScore\u2019s 2017 Cross-Platform Future in Focus report, the average American adult (18+) spends two hours and 51 minutes on their smartphone every day.<\/p>\n

>> We spend an average of one hour, 56 minutes on social media.<\/p>\n

>> We take\/make an average of four phone calls, and\u2026<\/p>\n

>> We send 34 texts.<\/p>\n

Although the latest usage data set a new record, the curve is definitely flattening.<\/p>\n

See for yourself\u2026<\/p>\n

\"chart:<\/p>\n

Armed with these cautionary metrics, Tim Cook took to the stage this week and unveiled the newest iPhones.<\/p>\n

Cook\u2019s challenge was crystal clear: How will Apple\u2019s latest iPhones send the \u201cusage\u201d needle further north?<\/p>\n

It\u2019s highly unlikely that our texting\/talking habits will ever grow from here.<\/p>\n

So the answer likely lies with apps.<\/p>\n

Fact is, roughly 90% of our smartphone usage is spent on apps.<\/p>\n

Let\u2019s give the latest iPhone an \u201cOMG\u201d or \u201cSMH\u201d grade below.<\/p>\n

AR Is Key to Apple\u2019s Announcement<\/h2>\n

\"JonathanWhen it comes to smartphones, the low-hanging fruit is all gone.<\/p>\n

Phone makers have made them fast.<\/p>\n

They\u2019re all sleek and can generally withstand a good tumble.<\/p>\n

Some of them are waterproof.<\/p>\n

Heck, they\u2019ve even made them as \u201cbig\u201d as can they can be to still fit in our pockets comfortably.<\/p>\n

So how do you differentiate yourself from the rest and come out on top?<\/p>\n

Add the stuff the consumer didn\u2019t think<\/em> they needed.<\/p>\n

For instance, augmented reality capability.<\/p>\n

Not many people own an Oculus Rift or other dedicated virtual reality device compared with how many own a smartphone.<\/p>\n

But thanks to Pok\u00e9mon GO, millions of people around the world got a taste of just how powerful AR can be as they chased virtual Pok\u00e9mon down in the street.<\/p>\n

Apple has just upped the ante, boosting the processing power of the new iPhones to handle advanced AR applications.<\/p>\n

Sure, it will take some time for developers to really build out functionality.<\/p>\n

But the simple ability to point your phone at something and have it instantly interact with the environment is groundbreaking.<\/p>\n

Now with all the fancy new additions, are the iPhone 8 and X worth the added price?<\/p>\n

That depends on whom you ask. The iPhone 6 and 7 were increasingly \u201cexpensive,\u201d yet both shattered sales records.<\/p>\n

As far as virtual reality goes, Facebook\u2019s Oculus Rift on its own retails at nearly $400. And it\u2019s not even AR-ready yet.<\/p>\n

Yes, the facial recognition and wireless charging features are nifty.<\/p>\n

But if Tim Cook and co. can force mass adoption of AR through the new iPhones, and as a result squeeze out more smartphone usage\u2026 there\u2019s no telling how high Apple shares can fly.<\/p>\n

My rating: OMG.<\/p>\n

The No. 1 Question We Should be Asking<\/h2>\n

\"MartinThere\u2019s no question that the iPhone X, like all Apple\u2019s innovations, is very cool.<\/p>\n

But the event raised a huge question. Even with Apple\u2019s loyal following, will buyers pay $1,000-plus for a telephone?<\/p>\n

The most exciting innovation is that the device recognizes your face and turns on automatically. The feature is called Face ID.<\/p>\n

Besides the \u201ccool factor\u201d here, the benefit is that the phone is, ideally, un-stealable. (It needs to be at that price.)<\/p>\n

Indeed, Apple claims there is a one-in-a-million chance of it recognizing the wrong face.<\/p>\n

The problem is if the phone is dirty or scratched with regular use, the device\u2019s ability to recognize your <\/em>face may drop considerably. Then you\u2019re locked out of your iPhone X. In fact, Face ID failed to function during the live demo on Tuesday.<\/p>\n

The camera is also improved. And I especially like that it can now adjust to the lighting.<\/p>\n

Yet it\u2019s important to note that this is a highly commoditized market now. The smartphone has already been around for 10 years \u2014 with worldwide sales of $344 million in the first quarter of 2017.<\/p>\n

Now, 85% of the market goes to Android phones, which come in at an average price of $220 per device.<\/p>\n

The iPhone X is thus being marketed at a 355% premium over the average smartphone\u2026 and at a 25% premium over its closest competitor, the iPhone 8.<\/p>\n

At that level, Apple\u2019s hopes for volume sales may well be disappointed. Unless next year (after its first full year of sales) is like 1999, with consumers both cash-rich and exuberant.<\/p>\n

On balance, SMH.<\/p>\n

Forget the Phone\u2026 Focus on the Watch<\/h2>\n

\"LouisThe latest batch of iPhones are innovative enough.<\/p>\n

Loyal Apple fans will keep buying. There are 93 million of them with iPhones that are at least two years old.<\/p>\n

What\u2019s more, lifelong Android users will continue to cave to the curiosity of what it\u2019s like to be on the other side of the smartphone world.<\/p>\n

Recent surveys by RBC analyst Amit Daryanani confirm that two-thirds of respondents are interested in purchasing the newest iPhone. This group includes gobs of current Android users.<\/p>\n

In other words, the latest batch of iPhones should unlock a super-cycle of sales, which promises to propel Apple shares high enough to become the first trillion-dollar market-cap company.<\/p>\n

By that metric alone, the iPhone unveiling is an OMG event. And the stock is still <\/em>a must-own.<\/p>\n

But what happens when Cook can\u2019t keep innovating enough to keep customers buying more smartphones?<\/p>\n

For the record, I\u2019d contest we\u2019re a handful of design cycles away from that day coming.<\/p>\n

Believe it or not, the answer is hiding in plain sight.<\/p>\n

Cook revealed it during the product launch event this week, too.<\/p>\n

It\u2019s the Apple Watch. Now that it\u2019s untethered from the iPhone, it\u2019s positioned to replace our phones completely. Dick Tracy, eat your heart out!<\/p>\n

Look for a massive increase in adoption rates in the coming year, including this guy.<\/p>\n

It\u2019s also augmented reality. As Jonathan pointed out, all the building blocks are being put in place on the software side to introduce consumers to AR and get them hooked.<\/p>\n

Apple\u2019s measured, methodical approach foreshadows the introduction of another new device \u2014 AR glasses. Bank on it!<\/p>\n

So when the smartphone boom finally dies, Apple\u2019s going to be perfectly positioned to sell us all not one, but two new devices.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/em><\/p>\n

The post iPhone X First Look\u2026 OMG or SMH?<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Want to see a chart that has Tim Cook shaking in his boots? The Apple CEO would prefer that this chart didn\u2019t exist. Heck, if the chart (below) were a company, Cook would simply buy it \u2014 and let his R&D department give it a new design. So what\u2019s so scary about this […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-112802","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/112802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=112802"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/112802\/revisions"}],"predecessor-version":[{"id":112810,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/112802\/revisions\/112810"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=112802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=112802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=112802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}