The Little Guy(s)

ByDon

You know I am a rabid Boston Celtics fan, and I have been since I was a child listening to games on my transistor radio, searching for the gravely voice of Johnny Most. These days our All-Star and team leader is Isiah Thomas who NBA hall of famer, Tommy Heinsohn, always refers to as the “little guy”. We have been thinking of changing our dog, Max’s name to the little guy as a result.

It was little iPhone and little iPad Pro day at the Apple event. Apple introduced the 4-inch iPhone SE and the iPad Pro 9.7-inch tablet. In other hardware announcements, there were new watch bands for the Apple Watch and a new Lightning to USB 3 camera adapter. The original iPad Air is now discontinued and the iPad Air 2 with a more limited selection becomes the entry-level 9.7-inch iPad.

I have gotten used to the size of my iPhone 6 but there are many people that want a smaller iPhone. Having a big iPhone 6 or 6+ sticking out of your back pocket is an invitation to theft and they do get a big bulky in the front pocket of your jeans. The iPhone SE uses the iPhone 5 form factor, with a 4-inch screen and aluminum case. The iPhone SE is not crimping on power though, as it meets almost all of the specifications of the iPhone 6s. It fails to match up to the current iPhone lineup only in the lack of the 3D Touch technology, the Taptic Engine that provides feedback you can feel, and slower wireless networking. It’s either $399 or $499, with 16 GB or 64 GB of storage, and comes in the same four colors, Silver, Space Gray, Gold and Rose Gold. We have found that most cases for the iPhone 5 should work with the iPhone SE. These are shipping on March 31.

The 12.9-inch iPad Pro, introduced last year with the Apple Pencil and Smart Keyboard, has enjoyed some moderate acceptance as a productivity device. I can see how for some, it might be their only device. And for artists, architects and others the iPad Pro is a digital drawing board like no other. But it is 12.9 inches and that is just a bit large for some. Apple introduced the 9.7-inch iPad Pro to meet this need, which meets or exceeds many of the larger model’s specs.

For instance, the smaller model’s screen can display more colors and adjusts its white balance to match the ambient light in the room. Its cameras are notably better — the rear camera is 12 megapixels instead of 8 and has a True Tone flash, while the front camera is 5 megapixels instead of 1.2 and can use the screen as a flash. Plus, the new iPad Pro can record 4K video instead of just 1080p. I assume we will see these upgrades to the 12.9 inch iPad Pro in the future but the smaller version is a powerhouse.

The 9.7-inch iPad Pro’s A9X chip is somewhat slower, it has half the RAM, and its Lightning port transfers data at only USB 2 speeds. But if the size is right for you, prices start at $599 for 32 GB of storage and go up to $899 for 256 GB. It will be shipping on March 31 in four colors: silver, gold, space gray, and rose gold. Cases and accessories designed to fit the iPad Air 2 should work with the 9.7-inch iPad Pro. We have our orders in with Apple and should have stock by the launch date. I think this new iPad Pro is going to be the iPad of choice for a lot of people.

Apple also introduced the $39 Lightning to USB3 camera adapter. It is much more than a camera adapter though and opens the Lightning port to a lot of USB devices. With the Lightning to USB 3 Camera Adapter, it’s easy to transfer photos and videos from your high-resolution digital camera to your iPad Pro.
If you connect with a USB Power Adapter, you can connect USB peripherals like hubs, ethernet adapters, audio/MIDI interfaces, and card readers for CompactFlash, SD, microSD, and more. This is a new and important step by Apple in making the Lightning port much more versatile.

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    This week I’ve been testing out some of the new features on the Apple TV and a bit on the new watchOS. You can now get an Apple Watch for $299.99. The release of watchOS 2.2 was a minor bump in improvements, including the ability to pair more than one Apple Watch to one iPhone, additional browsing options in Maps, improvements to tracking your pulse and a few other minor updates. Unlike past revisions and improvements to the watchOS this one has left me feeling a little underwhelmed. While the software updates weren’t particularly robust, I was excited to see that the Apple Watch now has even more watch bands to choose from. I’ve had my watch for about six months now and have noticed its getting a bit dingy, so now might be a good time to get another band! There are new sport band colors to choose from including a bold new yellow and a new woven nylon option. For those seeking a more traditional style band, the woven nylon might be just what you are looking for, this band features a standard watch buckle style clasp.

    Apple TV got some updates this week and just in time for the NCAA Championship. With the latest software release for Apple TV you can now get the latest NCAA games with an added feature of having two games display on your TV side by side! In addition to being able to watch the latest games, you now have approximately 5000 apps to choose from, including new workout apps. Siri now works better when searching for content, even in the App Store, and you can access your iCloud Photo library. Starting to feel like your apps are getting too cluttered? Easily create folders by dropping app icons onto of each other just like you do on your iPhone or iPad. Dictation, another added feature that can really speak up your search process. Rather than typing through letters one at a time when searching for something specific, you can now use dictation by selecting the Siri button in the search field. I will note, you do have to be in the specific search field, you can’t just use it from the home screen. My favorite updates, one of which works with both the Apple TV and the Apple watch, is the remote app. You can now use your Apple watch to navigate through the options on the Apple TV, a feature that might seem silly to some, but with a small and easily misplaced remote this is bound to be an incredibly valuable new feature. Think the watch is too small to use for a remote? Hook up your Apple bluetooth keyboard! That’s right, you can now use your standard sized keyboard as well.

    I should note, that some of these updates, like the NCAA games, do have additional fees. More and more of us are swaying away from traditional TV and with more options coming to the Apple TV and choosing your content, we are getting closer and closer to paying for only what we want.

  • Apple Stands Up The Street

    $50.6 Billion in revenue, $10.5 Billion in net profit and $235 Billion in the bank. Let’s get one thing straight, 99.9% of the companies in the world would love to have those kind of numbers. And while this fell into the range of Apple’s forward-looking guidance, it did fall short of the expectations of the analysts.

    This was the first time in 13 years (!) that Apple posted lower year-over-year sales. Apple saw lower iPhone sales than last year at this time. However, keep in mind that was when the iPhone 6 was at its peak. Nevertheless, Apple sold 51.1 million iPhones and said they are having difficulty keeping up with the demand for the recently released iPhone 5se.

    Mac sales and iPad sales also declined as expected with Apple selling a bit over 4 million Macs and 10.25 million iPads. On the bright side, Services revenue increased 20% to almost $6 billion and “other” products which include Apple TV, Apple Watch, Beats and iPod generated $2.189 billion which is 30% growth.

    Apple’s board of directors both increased the dividend paid on Apple shares to $0.57 which is about a 10% raise and increased their share buy-back program. With Apple being so widely held, this dividend increase makes Apple one of the largest payers of dividends in the world. Since the start of their dividend and share re-purchase program, Apple has returned over $163 billion to shareholders, the majority of that being in the form of share buy-backs.

    Apple’s guidance for the current quarter which ends at the end of June also projects a year-over-year decline in revenues. They forecast sales in the range of $41-$43 billion which is also lower than analysts predicted.

    There is no sugar-coating these results which were for the most part, a miss. Forecasting demand, revenue and margin is tricky and there are a bunch of factors that enter into this calculation and a bunch more that are ready to blow up the forecast. International monetary trends, new product introductions are all a bit of a wild card.

    There is some good news hidden in the report. Apple said that the iPhone enjoys an unprecedented 95% loyalty rate, Apple Pay is seeing 1 million new users a week, 13 million people subscribe to Apple Music and Apple’s installed base is 1 billion devices and growing.

    Apple had a huge hit with the iPhone 6 and that did push sales to a peak level last year. It was an anomaly, however, and Apple’s business is still incredibly strong, just a bit more down to earth. You can’t hit home runs every time at bat! Tim Cook says the product pipeline is strong and I believe him.

    Hey, I didn’t have to come up with a new adjective to describe what Apple did to the street this quarter. That’s a fringe benefit. Putting this all into perspective is important. It is not like Apple is losing money or losing customers. In fact, the opposite is true. In three short months, they made over $10 billion in profit and sold millions and millions of iPhones, iPads and Macs! Now, if Small Dog could just do a tiny fraction of that…