While 2017 isn’t over, Time magazine has already published the list of its “25 Best Inventions of 2017.” Now you’ve probably read about this already, but a little explanation is in store.

 

So after the iPhone X was first announced, the critics lambasted Apple for being late to the party with some of its important features. Take OLED displays, which have already appeared on Android smartphones. It’s important to note that Samsung makes the iPhone X’s display. Whatever you think about Samsung’s penchant for stealing ideas from other companies, it certainly has the chops to build the parts tech companies need, such as displays, memory and other components.

 

Facial recognition is also nothing new, and Face ID was attacked for being insecure and slow even before the critics had a product to evaluate. So even though reviewers, including Consumer Reports, have praised Face ID, there were complaints about privacy and other matters. The difference is that, for the most part, Apple made it work pretty much as advertised. Yes, I know about the problems with twins and some other exceptions.

 

The TrueDepth camera that allows Face ID to work is something altogether new and different from the rest of the pack. You can expect the competition is working full time to somehow reverse engineer this technology.

 

Apple also did away with the Home button, and rather than replacing it with a virtual alternative, which would probably have been the simplest scheme, they devised new iOS 11 gestures to allow you to bypass a physical or virtual button and still get things done. I grant it’s a bit of a learning curve, and it might be confusing to switch back to an iOS device with a Home button, such as an iPad. In the end, you expect the Home button to vanish from those products too as they inherit edge-to-edge displays.

 

When you add all this and other design factors together, it’s no wonder the iPhone X was included among those 25 products.

 

Yes, the Time magazine piece concedes that “some of these features first arrived on devices from Samsung and LG.” But clearly Apple made them work better, which is why it was rated “A Smarter Smartphone.” This is in keeping with Apple’s penchant to take features that originated elsewhere and improve and simplify them.

 

Other top-rated inventions include “Stronger, Safer Football Helmets” and “Guilt-Free Ice Cream.” If you’re dieting, the latter, Halo Top ice cream, touts from 240 to 360 calories per pint. This is in the range of a single slice of pizza from Pizza Hut and Little Caesars, but can you imagine getting a whole pie of decent size with so few calories?

 

Then there’s a sideways elevator! I’m serious, and this is something written about over the years in sci-fi stories. I know I mentioned it in one of my novels.

 

Along with being declared “smarter,” the story about the iPhone X is accompanied by interviews from Apple hardware chief Dan Riccio, and chief design officer Sir. Jonathan Ive.

While those interviews have been quoted elsewhere, call me jaded enough to regard some of the statements about Apple’s design process as corporate spin. Apple only wants you to know of its successes, and how it understood when to drop old features in a product and embrace something new.

 

An example is the headphone jack that was removed from iPhones last year to mixed reaction from customers and critics. We don’t talk about it all that much this year, and Android fans don’t have much of an argument to make in light of the fact that Pixel 2 phones from Google also ship without headphone jacks.

 

This is part of Apple’s DNA, to know when it’s time to remove old features and move on. You can date that practice back to the arrival of the very first iMac in 1998. Apple ditched SCSI, ADB and other peripheral ports, and eliminated the floppy drive. Instead, they embraced USB which, up till then, hadn’t done much on the Windows platform.

 

It took a few years before we no longer relied on floppies, and, with adapters aplenty, you could still use many of those old peripherals until it was time to move on.

 

So today it’s headphone jacks, though they may still exist on the iPad and on Macs for a while. The Home button is clearly on the chopping block, if only to keep the iOS interface consistent among all products. Face ID is also destined to replace Touch ID, perhaps as early as next year, so in that respect the new features on the iPhone X serve as a harbinger of things to come.

Indeed, some day there may not even be a Face ID to unlock your device. Maybe Apple will have an embedded EEG and read your brainwaves instead. While there may be hacker tricks to get around Face ID and Touch ID, brainwaves?

 

No, I have no inside information about Apple’s future plans. Consider my suggestion about brainwaves to be nothing more than a random idea.

 

But Apple is a company known to seek newer and better ways to do things, and ditching old, obsolete features, or features the company deems obsolete.

 

The critics may complain that the iPhone X doesn’t do much that’s original, that perhaps it didn’t deserve the accolades it received from Time. The apparent success of the iPhone X, and how it influences future smartphone designs, though, will probably demonstrate again that the critics are dead wrong about Apple and its abilities to innovate.

 

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Gene Steinberg is a guest contributor to GCN news. His views and opinions, if expressed, are his own. Gene hosts The Tech Night Owl LIVE - broadcast on Saturday from 9:00pm - Midnight (CST), and The Paracast - broadcast on Sunday from 3:00am - 6:00am (CST). Both shows nationally syndicated through GCNlive. Gene’s Tech Night Owl Newsletter is a weekly information service of Making The Impossible, Inc. -- Copyright © 1999-2017. Click here to subscribe to Tech Night Owl Newsletter. This article was originally published at Technightowl.com -- reprinted with permission.

 

Published in News & Information

Let me get to the basics first: Apple’s fourth fiscal quarter financials were a blowout by any reasonable estimate. Up until the announcement, it was believed by many that iPhone 8 sales weren’t so good. Reports that iPhone sales in China were up by a decent margin were taken seriously, however, but regarded as only temporary.

 

The assumption has been that people held off buying new iPhones until the iPhone X was due to arrive. With reports of various and sundry production delays, it was questionable whether there’d be enough supplies on hand to meet demand. It even seemed to be a self-fulfilling prophecy, what with shipping estimates slipping to five or six weeks minutes after preorders went live; however, there are now reports that units are shipping ahead of estimates, and that shipping delays in some countries, including the U.S., have gone down to three or four weeks. So maybe things are getting better.

 

But lots of things were better than analysts expected.

 

Quarterly revenue climbed 12 percent, to $52.6 billion, a record for that quarter. Net income rose to $10.7 billion, or $2.07 a share, compared to $9 billion, or $1.67 a share, last year. Analysts estimated revenue at $50.8 billion. Beat the Street doesn’t begin to tell the story.

 

Despite skepticism about the success of the iPhone 8, Apple reported sales of 46.7 million units, up 2.6 percent from the year-ago quarter. Analysts expected sales to hit the 46.5 million mark. All this despite the pent-up demand for the iPhone X that couldn’t be filled until this quarter.

But that’s not all.

 

After many quarters of falling sales, the iPad may be on a roll. Sales hit 10.3 million units, up 11 percent from last year. This is the second straight quarter of rising iPad sales, no doubt influenced by the 10.5-inch iPad Pro, introduced at the June Worldwide Developers Conference. According to the NPD Group, the iPad had a 54% share of the tablet market in the U.S for that quarter.

 

Does that mean that iPad sales are destined to soar once again? Well, it’s a start, and perhaps the new multitasking features in iOS 11 are giving Apple’s tablet a new lease on life.

I was particularly interested in Mac sales, though, because two industry surveys didn’t come close to estimating the results accurately.

 

It begins with those published reports of falling sales, or, at best, a slight increase over last year. Gartner claimed that Apple sold 4.61 million Macs for the September quarter, a drop of 5.6%, a little more than the average for PC companies. IDC estimated sales of 4.9 million, an increase of just 0.3%.

 

The reality was something altogether different.

 

So Apple reported sales of 5.4 million Macs, representing an increase of 10% from the previous year. In its quarterly conference call with financial analysts, Apple said fiscal 2017 delivered the highest Mac revenue, ever, and September quarter sales were the best ever for Apple’s fourth fiscal quarter. Educational market sales reportedly grew by double digits compared to the year-ago quarter, despite the competition of cheap gear, such as Google Chromebooks.

 

Clearly Gartner and IDC, both of whom have undercounted Mac sales before, need to evaluate their survey methods, because they failed big time on these estimates. Then again, IDC once suggested that Windows Phone was destined to supplant the iPhone in the smartphone race.

 

The Apple Watch is also doing well, with unit sales up 50% for the third consecutive quarter. It’s reportedly the best selling smartwatch on Earth, but wouldn’t it be nice if Apple consented to deliver exact sales, as they do with other products? Despite the fact that Apple is required by law to deliver accurate numbers, the skeptics will assume there’s some measure of corporate spin around.

 

In fact, I see more and more of them on the hands of people who travel with me on my ride sharing gigs. I’m still happy with my $12.88 Walmart watch, though, which is now on its third battery. Maybe some day.

 

As far as the iPhone X is concerned, the positives come from CEO Tim Cook, who says that demand  is “very strong.” He also reported improved production, saying, “we’re really happy that we’re able to increase week by week by what we’re outputting, and we’re going to get as many of them as possible to customers as soon as possible.”

 

The fact that waiting times are dropping does indicate that production may actually begin to match demand by the end of the year, or shortly thereafter, meaning there will be reasonably plentiful supplies for the holidays. That appears to explain Apple’s optimistic guidance for the quarter, with estimated revenues between $84 billion and $87 billion, and gross margins between 38 and 38.5 percent. Thus it’ll be the company’s best quarter ever.

 

In other notes culled from the conference call, the highly profitable services business grew 40%, and Apple’s sales have doubled in India. The company’s cash hoard soared to $268 billion, an increase of $7.4 billion over the previous quarter.

 

Clearly Wall Street is impressed, with Apple’s stock reaching $173.38, an increase of $5.27, in after hours trading.

 

Peace,

 

Gene Steinberg

 

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Gene Steinberg is a guest contributor to GCN news. His views and opinions, if expressed, are his own. Gene hosts The Tech Night Owl LIVE - broadcast on Saturday from 9:00pm - Midnight (CST), and The Paracast - broadcast on Sunday from 3:00am - 6:00am (CST). Both shows nationally syndicated through GCNlive. Gene’s Tech Night Owl Newsletter is a weekly information service of Making The Impossible, Inc. -- Copyright © 1999-2017. Click here to subscribe to Tech Night Owl Newsletter. This article was originally published at Technightowl.com -- reprinted with permission.

Published in News & Information

So let’s put this all together now: Apple allegedly sells higher-priced gear than the competition, yet puts significant restrictions on the use of these devices. You have to accept Apple’s ecosystem — make that walled garden — in order to buy Apple.

 

It may, to some degree, be akin to joining a cult where the leaders, managed by CEO (High Priest) Tim Cook, tell you what to do, what to buy, and what to install on your devices. Well, that’s the impression some might want to convey, but it makes a lot more sense to parse these claims and see if there is any factual basis to them.

 

Of course, on the surface, they do seem a bit much. But it’s worth putting the claims through a fact-check process anyway.

 

So the first complaint is about the price, that Apple deliberately charges high prices to gouge customers. They should be charging less, and in fact competing with mainstream gear.

 

Now obviously, Apple has the right to charge what it wants. It’s up to customers to decide if the prices are fair. If not, there are other choices. What’s more, Apple does cut prices from time to time. A key example is the 27-inch iMac with 5K Retina display. Prices dropped until they were the same as the older models with regular displays.

 

For months we heard endless complaints about the thousand dollar price for what became the iPhone X. But it was then known as the iPhone 8 until, of course, the iPhone 7s became the iPhone 8.

 

Take a deep breath please!

 

The price was real, well $999 for the 64GB version is close enough. But since the Samsung Galaxy Note 8 doesn’t cost a whole lot less, well $70 less, the argument that Apple is price gouging seems a tad lame. Sure, it’s more expensive than the Samsung, but the difference is very small if you up for one of those 24-month lease/purchase deals, less than $3 per month.

 

Is the iPhone X worth a little more money? That’s up to prospective customers to decide. If not, Apple might eventually cut the prices. That’s what was done with the original iPhone in 2007.

 

Apple is also attacked for alleged high prices on product upgrades. You want to buy a MacBook upgraded to 16GB RAM, it’s $200 extra. There’s no choice, since RAM is soldered to the motherboard. On the other hand, when you compare the cost of RAM and storage upgrades at Apple with similar upgrades on gear from mainstream PC makers, such as Dell and HP, you’ll find the prices are in roughly in the same league.

 

The real complaint is that Apple only produces a few models where you can upgrade RAM yourself. Technically you can upgrade the storage on an iMac, but you really don’t want to make the attempt. And then there’s the Mac Pro, and the promise of a modular version, easy to upgrade, perhaps by next year.

What about being forced to tolerate Apple’s ecosystem?

 

Well, having products that integrate with one another, and allow you to switch from one to the other and continue your work ought to be a good thing. Similar apps and similar services mean that you can work more efficiently. No other platform can match it! Microsoft tried, but Windows Phone crashed and burned.

 

Isn’t reasonably smooth product integration supposed to be a good thing?

 

Now the walled garden means that you are limited to the App Store on all Apple gear except for the Mac. It means Apple curates the apps, and you may run up against some limits in what you can get. I have complained, for example, about not having the equivalent of Rogue Amoeba’s Audio Hijack on an iPad. It’s an app that lets you capture audio from multiple sources and save them as a single audio file. It’s essential for my radio shows.

 

Since Apple clearly wants to make iPads more useful as productive tools, and the enhanced multitasking of iOS 11 demonstrates that commitment, perhaps some of the limits for app developers will be removed going forward.

 

But limiting you to one official app resource provides a much higher level of security, and at least a basic assurance that the app will run. There are few guarantees on the Android platform with Google Play. To use an outside app source on an iOS device, it has to be jailbroken, which creates serious security vulnerabilities. Android users can sideload apps from other sources if they want.

 

So Apple’s policy probably makes more sense for most people even if some of us chafe at a few restrictions.

 

On the Mac, nothing stops you from running the apps you want, good or bad. The Mac App Store is but one resource. And you can easily run Windows with Boot Camp, and loads of different operating systems via virtual machines. All official, all supported.

 

In that sense, the Mac is far more flexible than a Windows PC. While you can hack some PCs to run the macOS, it comes with lots of babysitting to induce even simple functions to work on a Hackintosh, such as messaging. Some things never quite work without jumping through hoops.

 

The long and short of it is that users of Apple gear have lots of freedom to do what they want, the way they want. I’ve only occasionally run across restrictions in doing what I want on the Apple mobile gadgets I’ve owned, and since Apple has expanded opportunities for iOS developers, some of those restrictions may eventually go away.

 

If Apple’s pricing and ecosystem are too stifling for you, rather than complain about the company’s well-known and highly successful policies, nothing stops you from buying something else. Apple obviously cannot tell you how to spend your money.

 

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Gene Steinberg is a guest contributor to GCN news. His views and opinions, if expressed, are his own. Gene hosts The Tech Night Owl LIVE - broadcast on Saturday from 9:00pm - Midnight (CST), and The Paracast - broadcast on Sunday from 3:00am - 6:00am (CST). Both shows nationally syndicated through GCNlive. Gene’s Tech Night Owl Newsletter is a weekly information service of Making The Impossible, Inc. -- Copyright © 1999-2017. Click here to subscribe to Tech Night Owl Newsletter. This article was originally published at Technightowl.com -- reprinted with permission. 

 

 

Published in News & Information
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