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Why the Apple Watch, iPhone 11 and AirPods were the key to all-time record earnings
Apple’s first earnings report for 2020 soundly beat Wall Street’s estimates, landing it an all-time quarterly revenue record: $91.8 billion (about £70.5bn, AU$135bn).Advertisement
What’s more important than this 9% year-over-year growth are the products that drove it – the iPhone 11 and iPhone 11 Pro, the AirPods and AirPods Pro, and the Apple Watch 3 and Apple Watch 5 – and what they tell us about Apple’s strategy going forward. The company also cited ‘services’ as a key revenue booster.
Yes, officially, Apple keeps things vague, saying that “iPhone, Wearables and Services drove all-time record revenue.” But we dove into the sales numbers and put on our analyst hat on to examine Apple’s bounce back from last year’s declines.
Why is this important? If Apple shifted its strategy recently (which we think it did), it’s likely to continue down this path to maximize profits and that may mean the company will continue to release similar products in 2020 and beyond. Here’s what we found.
1. The Apple Watch 3 was too cheap to ignore
Apple cites ‘wearables’ as a key revenue driver and, to us, that translates into sales of the Apple Watch 3. Yes, the new Apple Watch 5 likely drove a chunk of revenue given its higher price, but most people didn’t need an always-on screen – they bought into the idea of an Apple Watch at a reasonable price.
The Apple Watch 3 at $199 / £199 / AU$319 became too difficult to ignore for people who’d resisted Apple’s smartwatches previously, or who were stuck with the original Apple Watch and in a dire need of an upgrade to the watchOS 6software.
Apple doesn’t break down its ‘Wearable’ sales (in fact they’re lumped into ‘Wearables, Home, and Accessories’), but the company did say it had trouble keeping up with Watch 3 demand, according to Reuters, and that the Apple Watch accounted for 75% of all wearables purchases in its latest quarter.
The winning strategy? Think about it: when the Apple Watch first launched, it cost $349 / £299 / AU$499. Almost five years later, we have a wholly better smartwatch in the Apple Watch 3, and it’s $150 cheaper than 2015’s technology. The Apple Watch finally became affordable, and that’s been a win for everyone.
2. AirPods for everyone
Apple’s AirPods – also lumped into the Wearables category – were popular this past Black Fridaybecause there were three kinds on sale at once (technically four kinds, as we often found the original AirPods 1st gen on sale ridiculously cheap).
Apple is known for expensive gadgets, but it has begun to appeal to a wider range of consumers who want to buy into the true wireless earbudsphenomenon. There’s something for nearly everyone with the AirPods without wireless charging, AirPods with wirelessly charging, and its top-of-the-line AirPods Pro.
The winning strategy? Apple continued to tout its prestige as a premium brand with its noise-canceling AirPods Pro, yet it kept in stock two other versions of the AirPods for a cheaper price – at least when it could make enough of them.
3. That iPhone 11 camera rocked
“I wish Apple would release a Pixel.” Someone actually said that to us after seeing the Google Pixel 3 camera quality in 2018. And we knew exactly what they meant. It was clear that Apple needed to play catch-up to hit a ‘super cycle’ of upgrades.
It did just that in September 2019 when the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Maxlaunched with superior cameras, matching or exceeding the photo quality of flagship Android smartphones in 2019. The Pixel 4 didn’t wow us nearly as much.
Apple introduced a triple-lens camera with the two iPhone 11 Pro models, and a photo-fixing Night Mode on all three new iPhones. We don’t take many Slofies with the front-facing camera, but Apple marketed this slow-motion video feature as if it was the next big thing. Well played.
The winning strategy? iPhone 6 holdouts, stranded without a way to upgrade to iOS 13, finally had enough reason to upgrade to the iPhone 11, which had a camera that we found performed markedly better and, importantly, looked different. That hypnotic, trypophobia-triggering iPhone Pro cameras set the stage nicely.
Apple also doggedly pushed its trade-in program to reduce the advertised iPhone 11 price, which made it seem much cheaper. In the US, carrier-subsidized iPhones at one time cost $199 (carrier plans cost more over time), and while we aren’t back to that price, consumers aren’t being alarmed by the full retail price either.
Apple Watch Series 5 has an always-on display and comes in titanium or ceramic finishes
Apple has just officially announced the next generation of the Apple Watch, the Apple Watch Series 5. The latest model is very similar to last year’s Series 4, with a similar design and size. The big new feature this year is an always-on display option so you can see the time without having to move your wrist, something that has been asked for since the Apple Watch first debuted in 2015.
Apple says the Series 5 watch maintains the prior model’s 18-hour battery life, even with the new always-on screen, thanks to a new low-temperature polysilicone and oxide display and low-power display driver. Watchfaces and workouts have been redesigned to take advantage of the new display option. The screen will be in a low-brightness mode until you move your wrist, where it will switch to full brightness in a similar fashion to how the current model turns on when your wrist is moved.
In addition to the new always-on display feature, the Apple Watch Series 5 is now available in a recycled aluminum or titanium finishes. The stainless steel and ceramic options from prior models are also available. Apple says this is the widest number of finishes ever for the Apple Watch.
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Other new features include a built-in compass and emergency calling for international countries. Interestingly, Apple did not announce first-party sleep tracking with the new model, which was something that was expected based on leaks and rumors.
Pricing for the Series 5 starts at $399 for GPS model and $499 for the cellular connected version. It’s available for order starting today and will be in stores starting on September 20th. Apple is also permanently dropping the price of the Series 3 to $199, matching the lowest sale price on that model we’ve seen. Last year’s Series 4 model has been dropped from the lineup.
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Source: The Verge
Apple Watch sleep tracking revealed: sleep quality, battery management, more
There’s been a lot of speculation about Apple Watch sleep tracking, especially after Apple acquired Beddit, manufacturer of the Beddit Sleep Monitor product and companion app.
Today, 9to5Mac has learned from sources inside Apple that the company is working on sleep tracking for the Apple Watch, which won’t require any special hardware to work. The new feature could be announced as early as next week when the company is expected to announce the next generation iPhones and possibly a revised Apple Watch with titanium and ceramic options.
The new feature — codenamed “Burrito” internally and called “Time in Bed tracking” — will allow users to choose to wear Apple Watch to bed. If the user has more than one Apple Watch, they can pick one to be their designated bedtime Watch.
While asleep, the Apple Watch will track the user’s quality of sleep using its multiple sensors and inputs, including the person’s movement, heart rate, and noises. Data about the user’s quality of sleep will be made available in the Health app and a new Sleep app for the Apple Watch.
One of the issues with wearing an Apple Watch during sleep is that many users choose to charge their Apple Watch at night. Apple thought about this and developed a feature that will remind users to charge their Watch beforehand so they can get through the night.
When wearing the Watch during bedtime, if the user wakes up and starts their day before their alarm goes off, it will automatically turn off the alarm. The alarm will also play only on Apple Watch, using the iPhone as a backup. There will also be an option to use a silent alarm that only vibrates the Apple Watch. The new bedtime system will enable Do Not Disturb automatically when the user goes to bed. There will also be a new complication available for sleep tracking.
It’s unclear whether the new sleep tracking features will require a new model of the Apple Watch to be announced on September 10, but given the current rumors about new watches being a minor revision, it’s likely it won’t require new hardware.
Source: 9to5mac
Apple Watch 5 may have been revealed thanks to a leaked photograph
The Apple Watch 5 is likely to land in September and yet, unlike the iPhone 11 – which has leaked extensively – we haven’t seen much of it yet. But that might be starting to change, as a leaked photo may have given us our first real look at the wearable.
Uploaded on a currently private Instagram account and shared by SlashLeaks, the image shows a close-up of the screen of an Apple Watch, complete with information on the software and model, and it’s this that makes us think it might be the Apple Watch 5.
That’s because not only is it apparently running the not-yet-released watchOS 6, but, more importantly, it has the model number A2157, which isn’t attached to any current Apple Watch.
It is however a model number that was recently filed with the Eurasian Economic Commission, as spotted by MacRumors. Being filed there suggests that it’s a real model and coming soon, so this photo could be the real deal.
Looks familiar
Having said that, the image could easily have been altered, and if it is real it doesn’t give away much, as what we can see of the design looks a lot like the Apple Watch 4.
That’s not totally surprising though, as Apple changed up the look a bit for that model, so likely wouldn’t be making any major physical changes again this year.
Indeed, rumors so far point to the possibility of new ceramic and titanium casings, but are otherwise focused on software and less visible features, such as sleep tracking and a microLED display. So even if this image is fake, it might be close to how the Apple Watch 5 will look.
We should find out for sure soon, as the new wearable is likely to be announced alongside the iPhone 11 range, which is currently rumored to land on September 10.
- Check out the best Apple Watch apps
Via Wareable
watchOS 6 assets reveal new Apple Watch models coming in titanium and ceramic cases
Apple is continuing its asset leak spree. We already saw an iPhone asset in iOS 13 beta 7 that seemingly confirmed the date of the iPhone event, and now iHelpBR has found assets that show new Apple Watch models is on the way.
The images indicate Apple is about to launch a new ceramic Apple Watch, and a new titanium Watch. Apple has sold ceramic watches in the past, but did not offer a ceramic Series 4, and titanium is a wholly new direction for Apple Watch case materials.
If you don’t recognize the imagery, the Apple Watch firmware plays an animation when the watch is first set up, which mimics the back design of the watch featuring the model name and the iconic ‘Designed by Apple in California’ signature.
The pictured assets are clearly destined for the 44mm watch screen, but iHelpBR has also found equivalent assets for the 40mm watch. This confirms what we expected; the new watches have the same chassis size as the Series 4 lineup.
At the start of the year, reliable analyst Ming-Chi Kuo said that Apple would launch a new ceramic Apple Watch this year, and these assets back that up sincerely.
Apple debuted the ceramic Apple Watch Edition line with the Series 2, offering it in a white color. For the Series 3 generation, Apple sold a gray ceramic colorway too. For the Series 4, ceramic was removed from the lineup completely.
And now it very much appears to be making a comeback, alongside a brand new titanium casing. Apple hasn’t really used titanium in any of its recent products, except for the just-released Apple Card: the physical swipe card is made of titanium. Maybe Apple thinks titanium is back in fashion, after years of glass and aluminium alloys.
It’s not clear if the stainless steel casing would be replaced by titanium, or offered alongside it. Presumably, the low-end aluminium Watch will continue to be offered for cost reasons.
The question is, though, are these new watches a general leap — Apple Watch Series 5 — or just new color and case options for the existing Apple Watch Series 4 models. It is possible that the internal components of the watch haven’t changed, and Apple is just mixing up the colors for the holiday season. Unfortunately, these assets do not tell us either way.
Source: 9to5mac