Of course, there always are, but you got ta wait to see what exactly is being unveiled. The expectations right now, though, are that we are going to see a new iphone as well as potentially updated air pods and a slate of other innovations coming from the big tech company and for more on what it might mean for the stock wan na bring on Bob odonnell a president chief, analyst tech analysis. Research joins us right now and bob i mean weve, been talking about apple kind of seeing a bit of a rebound here and a lot of enthusiasm coming back into the stock. But what are your expectations for exactly what were going to see when the big event happens tomorrow? Well, like you said zach i mean were going to see new iphones, probably the 13. Who knows. Maybe they surprise us, because they think 13 is unlucky and it becomes 14. hard to say but bottom line. Is the next generation iphone its not going to be dramatically different from the iphone 12 were going to see a few tweaks? Of course, theres always a faster chip, therell be camera improvements there typically always are. One thing in particular is a lot of people like the portrait mode for for photos supposedly were going to see a portrait mode for video as well, because the additional capabilities of the new chip. So some people will appreciate that were going to see new apple watches. As well, that actually is expected to have a redesign so its going to be a physically slightly flatter modestly larger screen, so thats going to be interesting and then supposedly a cheaper version of the airpods as well, which of course, have been spectacularly successful.
Yeah i mean i dont know if its easy or hard to maybe hone in on which one of those might be most impactful. I mean we know the apple news in terms of what we saw last week with the epic games and fortnite lawsuit, maybe taking some of the uh the juice out of the app store and why they might be so leaning heavily into that um. But at the same time, a lot of maybe skeptics out there pointing the fact that the last iphone upgrade was pretty big with 5g and getting people to really upgrade to those models. But now maybe nothing as exciting this time around so which one of those that you listed there would you be most bullish. I guess on well, you know, while i agree with you that im not convinced were going to see a huge set of innovations on the next iphone. I still you cant, ignore the fact that the iphone is so dramatically important to so many people that i think ultimately that becomes the biggest thing will we see a lot more watch up. Take sure i think the the watch continues to make nice progress and airpods have been incredibly successful, and if this is a lower cost version, thats going to extend the audience, but ultimately i still think its going to be the iphone. You know i mean the way i think about it, its you know, apples like a a pop band.
That has you know a huge hit every couple years, but they still crank out albums uh every year. Im showing my age, sorry, uh anyway, and not every album is a huge hit, but the fans still love every single one of them and theyre going to go out and buy them, because people do replace their phones every couple of years. So people who are sitting on a 9 or a 10 are going to go yeah its probably time and they dont have a 5g phone. Yet so theyre going to get it. There have been rumblings of some sort of satellite connectivity. I have my doubts. To be honest with you on that and by the way, even if it is its going to be its not really going to be a satellite phone like some people thought which would have been big its not going to be anything like that. Its going to be a more modest, if, at all, to be honest with you, i think its going to be more of a set of frequencies. That apple can use to enhance their 5g yeah or you know, theres other people, leaning into maybe some hope that ar might play a bigger role in this event or some sort of release there i mean it doesnt look like you think there will be. I i dont think so i i think were still a ways off there i mean look, you know we saw what what facebook did with those ray ban, glasses and and basically its a camera on your face, which of course is a whole separate topic of discussion, But you know thats nowhere near the ability to see it, something and you know be able to tell you what it is.
I mentioned to you right before we started. You know i was on a long road trip and there were multiple times. You know when i was looking out a window youre looking at something like gosh. I wish i knew what that was, and so you can see that theres huge opportunities for ar in all kinds of of parts of our life, but the compute necessary and the miniaturization necessary to achieve that were not there yet were going to get there and im Sure apples going to do something interesting, but not here in the fall of 2021. yeah, and the other thing too, that we always mention as kind of a headwind – and we saw this last quarter with apple – was questions around chips and the chip supply there. We continue to hear of issues in the automotive sector tied to that, but uh, as a lot of analysts will point out. Apple does have kind of the strength to flex just the sheer size of what they offer to make sure theyre prioritized. On that front, i mean, with all this innovation expected to be announced tomorrow. How are you looking at? Maybe that risk around ships as they rolled these out? Well, look. There is a a huge issue with chip supply and demand. Uh apple is one of the largest consumers of the chips made by tsmc, which is the worlds largest manufacturer of chips. But, interestingly, you know one thing: people havent really talked about: tsmc raised their prices for everybody, including apparently apple, which means theres.
A modest increase to apples. Cost of goods apple still makes a pretty hefty margin on iphones. I dont think were going to see a significant price increase if you know, and realistically probably nothing at all but theyre going to have to absorb a tiny bit more in terms of cost in terms of availability, um. The bigger concerns that ive been hearing. To be honest, with you around apple watch, some of the issues in terms of the manufacturing, the apple watch – may lead it to be a little bit delayed in terms of its release.