3.8%, BLACKBERRY NOT BAD, UP
10.6%.
WE’VE GOT TO GET TO THIS APPLE
STORY THAT JUST WRAPPED UP.
TIM COOK CAME OUT TO A VIRTUAL
AUDIENCE OF MEMOJI’S THAT HE
INTRODUCED BUT HE DIDN’T ADDRESS
THE ELEPHANT IN THE ROOM, THE
APPLE CEO AT THE WORLDWIDE
DEVELOPER CONFERENCE MADE NO
MENTION TO ITS KEY AUDIENCE
ABOUT ITS PRACTICES AND
COMMISSIONS THEY CHARGE HIS KEY
AUDIENCE.
THE DEVELOPERS, BUT APPLE DID
LAUNCH THE LATEST VERSION OF IOS
, AND UPDATES TO SOFTWARE
THAT RUNS ON APPLE IPHONES, IPAD
S AND OTHER DEVICES.
OF COURSE IT’S A WEEK-LONG
WORLDWIDE DEVELOPERS CONFERENCE
BUT LET’S BRING IN SENIOR
RESEARCH ANALYST DAN FLACK, AND
JOHN MEYER.
JOHN BY THE WAY HAS DEVELOPED
WHAT, 40, WHERE ARE YOU NOW?
>> A LITTLE OVER 40.
LIZ: 40 APPS, JOHN FOR APPLE?
>> WELL I HAVEN’T DEVELOPED IN
A WHILE, SO YOU KNOW, THAT ALL
STOPS A NUMBER OF YEARS AGO.
I’VE BEEN RUNNING COMPANIES THE
LAST FEW YEARS, SO THAT
STOPPED BACK I GUESS IN 2016 OR
SO.
LIZ: WELL YEAH, THAT WOULD SPEAK
TO THE FACT THAT APP DEVELOPMENT
CAN BE VERY LUCRATIVE WITH OR
WITHOUT THE 30% COMMISSION.
JOHN, I WILL START WITH YOU.
TIM COOK DID NOT EVEN GIVE A NOD
TO THE 30% COMMISSION, BUFFETS
BOOK CEO MARK ZUCKERBERG DID,
ONE HOUR BEFORE THE WORLDWIDE
DEVELOPER CONFERENCE STARTED.
HE PUT UP THIS , WAS IT A
FACEBOOK, IT WAS LIKE YEAH, HE
DOESN’T REALLY TWEET, BUT THAT’S
RIGHT.
HERE WE GO TO HELP MORE CREATORS
MAKE A LIVING ON OUR PLATFORMS,
WE’RE GOING TO KEEP PAID ONLINE
EVENTS, IN OUR UPCOMING
INDEPENDENT NEWS PRODUCTS FREE
FOR CREATORS UNTIL 2023 AND WHEN
WE DO INTRODUCE A REVENUE SHARE,
IT WILL BE LESS THAN THE 30%
THAT APPLE TAKES.
YOU THINK THAT’S GOING TO HAVE
ANY SORT OF MAGNETIC EFFECT OF
DRAWING PEOPLE AWAY FROM APPLE’S
APP STORE?
>> I MEAN, I THINK IT’S A
HILARIOUS JAB AT APPLE.
I DON’T THINK IT’S THAT
MEANINGFUL, CONSIDERING THAT
AGAIN FACEBOOK MAKES MOST OF
THEIR MONEY ON AD REVENUE AND
TRACKING USER DATA NOT
NECESSARILY DEVELOPERS AND APPS
BUT IT DOES, IT’S A HUGE
CONTRAST.
I MEAN, IT IS A MONUMENTAL
CONTRAST BETWEEN MARK ZUCKERBERG
AND BEFORE THIS DEVELOPER
CONFERENCE PUTTING THIS
STATEMENT OUT AND THEN
APPLE NOT MENTIONING DEVELOPERS
AT ALL IN THIS EVENT,
CONSIDERING EVERYTHING GOING ON
WITH EPIC, EVERYTHING NOW GOING
ON WITH FACEBOOK AND PRIVACY,
NOT ONE MENTION, AND I THINK
IT’S A HUGE DIFFERENCE, TO BE
HONEST, BETWEEN THE STEVE JOBS
ERA AND THE TIM COOK ERA.
I THINK THE STEVE JOBS ERA THERE
WOULD HAVE BEEN AT LEAST A FIVE
TO 10 MINUTE SECTION THAT WAS
JUST A ONE-TO-ONE BETWEEN HIM
AND THE DEVELOPERS, RUNNING DOWN
WHY THEY ARE MAKING THESE
CHOICES IN TERMS OF PRICING AND
COMMISSIONS AND SO ON, SO IT WAS
A BIT STRANGE NOT TO MENTION
THAT.
LIZ: I DON’T WANT TO GIVE ALL OF
THE OXYGEN TO FACEBOOK BUT DAN,
WE’VE GOT APPLE SHARES DOWN A
HALF A PERCENT, BUFFETS BOOK
STOCK IS UP 2%.
AS YOU MOVE FACEBOOK ASIDE FOR
THE MOMENT, WE DO HAVE TO
LOOK AT THE FACT THAT APPLE
SHARES HAVE BEEN TREADING WATER.
ITS BEEN VERY MUCH A SIDEWAYS
BET HERE.
WHAT FORCES IT TO EVENTUALLY
BREAK OUT TO ONE SIDE OR THE
OTHER?
>> LIZ, I THINK IT’S GOING TO
BE EXECUTION ON THEIR PRODUCT
CYCLES AND CONTINUING TO BROADEN
THE PLATFORM.
WE’VE OBVIOUSLY SEEN GOOD GROWTH
IN AREAS LIKE SERVICES AND WEAR
ABLES.
I THINK THAT WILL ULTIMATELY BE
KEY TO CREATING SHAREHOLDER
VALUE AND IF WE LOOK AT THE
DEVELOPER COMMUNITY AND
CERTAINLY WHAT WE SAW TODAY,
FIRST APPLE PAID OVER
230 BILLION TO DEVELOPERS SINCE
OPENING THE STORE AND THE
MAJORITY OF APPS ARE FREE,
BUT I THINK WHAT’S IMPORTANT IS
THEIR ABILITY TO CONTINUE TO
EMPOWER THE DEVELOPERS, TO
CREATE ON TOP OF THEIR PLATFORM
WITH TECHNOLOGIES SUCH AS
AUGMENTED REALITY.
THAT WAS SHINING THROUGH TODAY
AND SO THAT AND THE PRODUCT
CYCLES I THINK ARE KEY TO
DRIVING SHAREHOLDER RETURNS OVER
THE NEXT COUPLE OF YEARS, FOR
APPLE.
LIZ: YEAH, I WOULD SAY DON’T
COUNT ON APPLE.
IT’S SUCH A LAYERING ON PROCESS
AND THEY ARE A VERY STICKY
BUSINESS MODEL THAT’S
UNBELIEVABLE.
JOHN LET’S TALK ABOUT SOME OF
THE THINGS THAT THEY UNVEILED
HERE.
WE COULD PICK ANY NUMBER OF
AREAS THAT APPLE COULD VERY WELL
BE TRYING TO PUT OUT OF
BUSINESS.
I DON’T CARE IF IT’S ZOOM WITH
SHARE PLAY OR , YOU KNOW, ALL
OF THIS STUFF THAT YOU CAN NOW
EDIT IN YOUR PHOTOS PUTTING
WEDDING VIDEO MAKERS OUT OF
BUSINESS, BUT YOU’VE GOT TO TELL
ME WHAT JUMPED OUT AT YOU HERE.
WITH SHARE PLAY, THEY’VE REALLY
FOCUSED A LOT ON THE PEOPLE AND
BRINGING THEM TOGETHER, THE GRID
PICTURE THAT WE HAVE ON SCREEN,
DOES THIS MAKE ZOOM NERVOUS?
>> OH, IT’S HUGE.
I MEAN, I WAS JUST CONDUCTING A
MASSIVE , YOU KNOW, KEY STUDY
AMONGST TEENAGERS AND WE WERE
FINDING OUT THAT FOR TEENAGERS
JUST APPLE IN THE MESSAGES APP,
YOU KNOW, A YEAR OR TWO AGO,
ADDING THE FUNCTIONS TO RESPOND
TO TEXT WITH LIKE A QUESTION
MARK OR EXCLAMATION POINT, THAT
, ACCORDING TO THEM, WAS A
HUGE CULTURAL CHANGE AND SO NOW
THESE FEATURES FOR MESSAGES AND
FACE TIME THAT ALLOW YOU TO
INTERACT WITH YOUR FAMILY, YOUR
FRIENDS AND SCREEN SHARE WITH
THEM AND WATCH MOVIES TOGETHER,
OR NOW YOU COULD DO FACE TIME
ACROSS DIFFERENT PLATFORMS LIKE
ANDROID OR EVEN THE WEB, IT’S A
REALLY INCREDIBLE NEW, I’D SAY,
CULTURAL STEP FORWARD BECAUSE
WHEN APPLE MAKES THESE
ADVANCEMENTS ON THE IPHONE, YOU
CAN CALL THESE THINGS LITTLE
FEATURES, BUT THEY FUNDAMENTALLY
CHANGE THE WAY YOU INTERACT WITH
YOUR FAMILY AND FRIENDS ON A
DAY-TO-DAY BASIS AND WHEN APPLE
DOES THESE THINGS, THE LITTLE
TUNE-UPS, THEY’RE HUGE.
THEY COMPLETELY CHANGE YOUR
DAY-TO-DAY BEHAVIOR.
LIZ: I’VE GOT TO BRING UP
SOMETHING THAT CRAIG, BECAUSE
WE’RE ON FIRST NAME BASIS WITH
THESE APPLE PEOPLE.
THE SOUND THAT WE PULLED, THE
COMMENT THAT HE MADE WHERE
HE LOOPED IN A HUGE ECHOSYSTEM
OF OTHER PARTICIPANTS, LET’S
LISTEN TO WHAT HE SAID ABOUT
WHAT PEOPLE CAN DO ON SHARE PLAY
AND HOW MANY OTHER OPPORTUNITIES
AND PLATFORMS YOU CAN PULL IN AS
YOU DO IT AND THEN DANIEL
I’LL HAVE YOU COMMENT ON THAT.
>> UH-HUH.
>> WATCH BLOCKBUSTER MOVIES
WITH YOUR FRIENDS ON DISNEY PLUS
, AND HIT TV SHOWS ON HULU,
CATCH ORIGINALS FROM HBO MAX AND
SEE YOUR FRIENDS REACT LIVE TO A
BUZZER BEATER IN THE NBA APP OR
A SPEED RUN ON TWITCH, JUMP ON
TIK TOK TO WATCH THE FUNNY
VIDEOS OF THE WEEK, LEARN A NEW
SKILL WITH A FRIEND ON MASTER
CLASS AND SO MUCH MORE.
LIZ: I WOULD HAVE THOUGHT APPLE
PLUS AND DISNEY PLUS ARE AT LAGG
ERHEADS BUT DANIEL WHAT
DOES THIS TELL YOU ABOUT HOW
BROADENING THE VIEW TIM COOK HAS
ABOUT THIS COMPANY, AND WHAT IT
MEANS FOR ALL OF THE STOCKS OF
THOSE THAT HAVE BEEN MENTIONED.
>> LIZ, I THINK THE
ANNOUNCEMENTS THAT WE SAW
TODAY SPECIFICALLY WHAT YOU
HIGHLIGHTED THERE REALLY SHOWS
THE FACT THAT APPLE CAN’T DO ALL
OF THIS ALONE.
IT NEEDS TO ENABLE AND EMPOWER
PARTNERS LIKE DISNEY, IT NEEDS
TO MAKE SURE THEY’RE SUCCESSFUL
AS WELL ON THE APPLE PLATFORM.
THAT’S A KEY PART OF THE STORY
THAT I THINK AT TIMES GETS OVER
LOOKED AND IF YOU THINK
ABOUT PULLING THOSE SERVICES
TOGETHER AND INTEGRATING THE
HARDWARE AND THE SOFTWARE
WITH IT TO DELIVER GREAT OUTCOME
S, CLEARLY MEDIA OR
SPORTS AS WE TALKED ABOUT IS
IMPORTANT, HEALTHCARE, THE APPLE
HEART STUDY, AND REALLY BRINGING
BENEFITS TO USER’S LIVES ACROSS
A VARIETY OF DIFFERENT AREAS,
THAT’S WHAT’S IMPORTANT IN MY
VIEW.
IT’S ABOUT EMPOWERING OTHERS.
LIZ: SOMEBODY FLEXING THEIR
MUSCLE HERE, AND IT LOOKS LIKE
APPLE BECAUSE ALL OF THESE NAMES
, AT&T, AMAZON, WALT DISNEY
, OBVIOUSLY, AND THE REST,
ARE MOVING SLIGHTLY LOWER.
JOHN MEYER, DAN FLAX, GREAT TO
SEE YOU AND AGAIN WE CAN’T SEE
APPLE BREAKING OUT DOWN
ABOUT HALF A PERCENT BUT WE’LL
SEE WHAT OTHER NEWS THIS
WORLDWIDE DEVELOPERS
CONFERENCE BRINGS US THANK YOU,