As usual, the Apple Keynote to introduce the Apple Watch and two new iPhones, was done with great marketing aplomb. Tell them what you are going to tell them, tell them, and then tell them what you told them works every time. Apple has it down pat. Dan Frommer over at Quartz, believes that Apple Keynotes, made not of aluminum and glass, but rather of words and pictures, are “among Apple’s most successful products”.
Also as usual, the many financial analysts are missing the point of the new products. They seem to be focused on whether the profit margin next week will be 38.1% or 38.6%. Nothing can go straight up to the moon–as we learned from Sun, Cisco, Microsoft, and many others–but Apple still has a long way up, in my opinion. The reason is not the profit margin, although surely they will remain quite profitable. The point is that they make their products easy to use, cherished by users, and they provide great customer support. Whenever I have an occasion to talk to Apple customer support, I get the feeling they really cared about my questions. One time a support rep did not know the answer to my question,and they immediately asked if I would mind if they got a colleague with more experience on the particular question to take over the call. Can you even imagine an AT&T support rep doing that?
The point about ease of use is profound. The financial analysts don’t seem to get the seamless integration that Apple offers. You take a picture with your iPhone and then you pick up your iPad to look at it. Or you visit iCloud.com to look at it. Or on your Mac. Or your friend or family member can look at it in the Photo Stream you have shared with them in iCloud. You can text a friend from your iPhone and then when you get back home to your Mac, you can continue the dialog from the desktop or on your iPad. None of these things requires knowing much. As Steve Jobs used to say, “it just works”.
The new iPhones are going to be a big hit, especially the 6 Plus. I made a mockup of the 6 and 6 Plus, compared the size to my 5S, and held the mockup in my hand to get an idea of how large it will feel. I think there is a perception that the 5.5 inch screen is too big. Some people have said the 6 Plus was an iPad mini minus. I don’t think so. People are ready for a larger screen and I think Apple nailed the optimum size with the 6 Plus. The iPhone got hundreds of millions of us hooked on the the ease-of-use of the iPhone. As we did more and more things on the iPhone, we realized that you can do just about anything on the iPhone, but a larger screen will make it easier to do those things.
The near field communication (NFC) technology in the new devices is going to enable us to pay for things without the security exposure of handing over a mag-stripe credit card. There are many skeptics about Apple Pay, but I believe it will take off. I use my iPhone to pay for coffee at Starbucks, as do many. It is very convenient. The new Apple products will extend that convenience and security at millions of retailers around the world. The credit card companies are happy because they don’t have any additional fees and the NFC approach will reduce fraud. The issuing banks will pay a small fee to Apple, but they believe they will more than make up for that with expanded e-commerce that will take place. The only thing that disappointed me in the keynote was no mention of bitcoin. I continue to believe that the major retailers will end up accepting bitcoin. I would be surprised if Apple doesn’t have some contingency plans to be able to add bitcoin support to Apple Pay.
I can’t wait to get my hands on an Apple Watch. The skeptics see the iPhone and Apple Watch as creating confusion, but they forget that all Apple devices will be part of iCloud. That means you can read a headline on the watch and then read the full story on the iPhone or iPad. Content that is on one device is on all devices. In addition to the technology features of the Apple Watch, the fashion design and many choices of bands, colors, and style will make the watch have broad appeal. I think it will be huge.
Again, no company can grow to the moon, but it is quite conceivable to me, based on this latest set of announcements, that Apple will be the first company to achieve a market capitalization of one trillion dollars.