The Making of the iPhone

Everybody today takes the current smartphone for granted. It is the way it is because it is so logical to do it this way. Momentum scrolling of lists, with a bounce at the end, making a call with music playing, different software keyboards, etc etc etc.

Yet the original design of a computer in your pocket was anything but simple. This video from Wall Street Journal [link] briefly tells the story of the process.


Apple’s New ARKit – Early Demos


A few weeks ago, Apple held its Developers Conference (WWDC) opening with the keynote address where Tim Cook and friends introduced new features of their line of products. While many focused on the iPad Pro, the new iOS and Mac OS features or the HomePod speaker, for the long term, the real news for the investor is the Augmented Reality (AR) capabilities introduced (and the related Machine Learning).

In an earlier article I explained the importance of Augmented Reality as well as some of the technical details that make it so difficult.

The ARKit is an Applications Programming Interface (API) – a tool kit to help developers to write applications. With ARKit in particular – a tremendous amount of power is built in under the hood. Imagine if in order to drive a car you first had to build one from scratch – I mean starting with a block of aluminium to mill out the block and head, etc. This is what this API does for you – it gives you a car to drive. You can paint it and modify it and carry in it what you please. But the body and engine and electric systems are

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Apple, has been accused for a long time of not innovating. This goes back to the time of Steve Jobs when a certain group of people lived in a reality-warp that denied anything positive out of Apple. It continues now in the oft repeated meme: “Since Steve has gone, Apple no longer knows how to innovate.”screen-shot-2017-02-19-at-1-41-55-pm

It amuses me that this usually comes from analysts or writers who – for the most part – themselves have never created anything of value themselves. Typically,t
hey  know little of the creative process, and even less about technology. Oh sure, they know technological products, but next to nothing about how they work – that is, nothing about neither the physical hardware nor the software systems that drive the gadgets they critique. In short, they could not tell a bit from a case statement, and have never created even a simple electronic product.


3 Main problems – unrealistic expectations


Note 7: Why Keepers Are Fools

Note 7: Why Keepers Are Fools

In another post on this topic, I discussed the human psychology that likely led to Samsung’s exploding battery problems. Here I will discuss another example of that psychological tendency in a related phenomenon – the Note 7 “keepers.”

As wild as it sounds, there are some people who have decided to keep their Note 7, in spite of the recall. Again, this gives us a great look into human psychology. What we see here is a case of:

  • “I want this so how can I justify it?”


Philosopher William James once penned that Logic is what one wants to believe. Now this was part of a much longer discussion on the topic that qualified this, but this case shows it beautifully.

Perhaps the strongest proponent of this is that of Mashable contributor Josh Dickey. Here we see a great example of using pseudo-logic to justify a truly illogical choice because he wants to keep his Note 7.

In a post he argues:

can we take a math break for a second?

Because when you do that, owning this supposed ticking time bomb is still statistically less dangerous than the act of getting in your car…


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Understanding Apple: Three Keys To Stock Price – 3. Looking Ahead

Apple  share price has been slammed recently, falling as low as $92.43 last Wednesday. The question for investors is whether this downward trend will continue, if the price will remain range bound as it has for over a year, or if share prices will reverse and continue to appreciate.

I have identified three key factors in the future value of Apple stock. The first article focused on iPhone sales which many see as leveling off in growth, or even declining in the current year. Since this product currently accounts for well over 60% of Apple’s income, this would clearly affect performance. Fears over this are what drove the price down.

The second post focused on how the Services and Other Products categories – particularly the new Apple Watch – will likely drive moderate growth.

In this post we will examine what may be the most important influence on Apple stock price:

  • Apple’s forward guidance for the March quarter

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Apple Fears Laid To Rest, Free To Rise

Apple’s latest earnings results handily beat Wall street estimates.

This is in contrast to many predictions of a major slowdown in iPhone sales which account for 63% of total revenue.

While recent events have led to a temporary retraction, I believe that the last quarter’s earning showing continued growth has relieved some of the negative pressure on the stock, and recent news of holiday sales will only add to this.


Elsewhere, I have provided a recap of the quarterly earnings.

December Quarter

For some, the more important element was the outlook for the upcoming quarter. The company guided for revenue between $75.5 billion and $77.5 billion, which is in line with analysts’ estimates.

  • The big point here is that this posits continued revenue growth, although modest, over last year’s $74.6 billion.

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