Apple (Nasdaq; AAPL) trotted out updates for the software and hardware that will be in consumers' hands as early as this fall at its Worldwide Developers Conference this week. The annual conference typically gives some perspective on where the company is headed. But this time, there was no blockbuster news, and investors reacted cooly. Apple shares closed at $571.17 after the news on Monday, down from last Friday's close of $580.32
Perhaps if the company had announced a shiny, all-new iPhone, investors might have gone on a feeding frenzy. However, amid the new MacBook tweaks and a new desktop operating system, there were a few other points worth noting.
Siri, the voice-activated personal assistant integrated into the iPhone 4S and iPad, has been upgraded to let users launch apps as well as update Facebook (Nasdaq: FB) and Twitter by speaking out loud. Further, Apple plans to introduce an Eyes Free mode for Siri that would let users take control of their iPhones through voice controls only.
Siri and its Eyes Free system will also be integrated, when used with iOS mobile devices, into certain cars. Eyes Free will let users compose and hear text messages and make calls just by saying so. In theory that would help keep drivers focused on the road rather than fumbling with their iPhones.
"That's part of building up the ecosystem," says Stephen Baker, vice president of industry analysis with market research firm NPD Group. "When you have high presence in a very large install base, you have the opportunity to jump into adjacent product categories."
He says Apple, dating back to the iPod, has been building on the trend of putting devices in cars. "Voice, over time, is going to be incredibly important in car electronics. Safety issues demand that everybody looks at different usage methodology than touch screens while operating cars."
Geography has also become more significant for Apple with a new map app that includes audible driving directions and a 3D view feature. The map app also includes search info such as Yelp (NYSE: YELP) ratings and reviews of local businesses. This native app will replace Google Maps on Apple's mobile devices. That may sound like competition for Google (Nasdaq: GOOG), but it may be a little early to draw battle lines.
Baker believes a head-to-head comparison of a new product with a veteran platform is not warranted. "You've got to start somewhere. There's always a gradual build of technology."
The fight is intensifying, however, where mobile devices and computers intersect. Baker says while Microsoft (Nasdaq: MSFT), to some extent, wants to differentiate the desktop and tablet experience of Windows 8 from smartphone platforms, Apple aims to make iPad and iPhone environments more comparable while maintaining some distinctiveness from desktops. "A big reason for that is looking to your strengths. If you're Apple you're going to lead with iOS because iPhone and the iPad are your strong, flagship products."
The influence of mobile devices is hard to ignore though, as desktop computers evolve. "They're clearly moving to bring more of the iOS [mobile] mentality into the desktop operating system," Baker says. "However they are going to make sure they are clearly defined as different products."
I see this as just the natural move for Apple and any phone maker, with all the issues that come up in the US with texting and driving and talking and driving it only makes sense for phone makers to work with car makers and intergrate this technology. Given Apple's eye for design I think they will more than likely put out a very nice finished product.
Maps, Voice control, blah, blah, are these somethings every smart phone can do? Under Jobs, we are flooded with real innovations. Under Cook, it is so hard to find a real one.
I have not ruled Cook out yet. Just doubt Apple can drag along like this while all the Android manufacturers are coming out exciting new product every six months.
@telecomfreq, the integration is important, to certain extend. My friend once received a htc special made phone for Porsche. He tossed it to the garbage can once he found it too hard to use
@Value Hiker, I think this is where Apple will shine. they have always been known for very refined design of thier products. If that holds true under Cook then we should see something that blows all other systems we have seen out of the water. If not and Cook can not hold the company to the same standards that Jobs once did then it might very well be a sad offering.
When it comes down to it, I think there is a market for this kind of technology, it just has to be something that is user friendly and feels native to use.
I agree that Apple's product is generally more polished than most android counterparts. Maybe Samsung Galaxy S is an exception. Galaxy S series were as good as iPhones if not better. Between Galaxy S2 and iPhone 4S, I will not hesitate to choose Galaxy S2. The S3 just came out, it will be interesting to see how it will compete with next iPhone (5?)
If the hardware design has major drawbacks (3.5" screen, no LTE), how can Apple keep regular users happy by polishing software alone, it is really beyond my understanding.
Lots of Chinese companies can make similar smart phones with lower cost as similiar as iPhone or Samsung phones (hardware wise), but they can't compete with iPhone or Samsung phones at all. The difference is on software and service. Samsung can now make a very good phone now, sometimes their hardware is even better. But their software is still not that good, not that user friendly comparing to iPhones.
I love Android system, I like all open source systems. I even spend quite some time to develop for Android systems. Unfortunately no app or smart phone can compete with iPhone or iPad yet. I admire what Apple engineers achieved.
Maybe one day we can catch up and even make a better smart device.
I have to agree with you, right now the playing field is somewhat level for hardware, but software is where the innovation is happening, and that is where companies are setting themself apart from the rest.
@mInvestor, actually most chinese companies can NOT make the top-notch smart phone cheaper than Samsung and Apple. Due the duo-play of smart phone world. Apple and Samsung controls the lion's share of the OEM market. Many time they manufactured their own components. Any manufacuter without their orders are doomed, recently examples are: OVTI, SNDK, and GLW. These companies were slaughtered by losing or not having Samsung/Apple's orders.
In addition to the huge volume advantage for Samsung and Apple, they also set up their manufacturing in China now. Local Chinese small players are suffering big time like Nokia, and RIMM.
Tim Cook may not be an innovator, but he is a real supply chain genius.
Nokia just annouced to cut 10,000 jobs worldwide, and shut down facilities in German and Canada. Several exec were also replaced. Looks like a big restructure.
The battle in this field is getting more "exciting".
@Value, I dont think so. Many android based mobiles like Samsung are planning for its own OS (named as Bada OS) because google bought motorola hardware unit. So this will act in favour of nokia because nokia has one of the best hardware features available in the market.
Tim Cook may not be an innovator, but he is a real supply chain genius.
@Value, true I agree with your opinion. Many people were doubting about Apples success under the leadership of Tim Cook. But he has done excellent job and has helped Apple to retain its top position.
The S3 justcame out, it will be interesting to see how it will compete with next iPhone (5?)
@Value, its hard to compare the S3 to iPhone5 because iPhone5 is still rumour. I think Samsung S3 is big hit among users because already 10+ million users have placed pre-orders.
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