Julie Ask, Vice President and Principal Analyst at Forrester Research joins the Yahoo Finance Live panel to discuss the latest in the tech industry and Apple.
- Let's keep our attention on tech right now, because Apple out with the big launch today, iPhone 12 Pro Max and iPhone 12 mini hitting stores across the world today. Apple-- right now shares are down about 4/10 of a percent.
Let's bring in Julie Ask. She is the vice president and principal analyst at Forrester Research. Julie, there's been so much anticipation into this launch. We've been talking about it all week. How do you see this shaking down for Apple? We're certainly seeing four different models for the 12-- the Max and the mini, the highest end and the low end. Where do you see the market breaking down in terms of demand?
JULIE ASK: Yeah. So I think when we look at Apple strategy, certainly there's a lot of pressure on Apple to continue to grow. And the more successful they are, the higher expectations I think the market is going to have. And so it's very important for Apple to pursue that strategy by having lower-priced devices available so they can attract more consumers.
And they've also introduced lower-priced products to all of their categories. So Apple depends on consumers owning multiple devices that come from their ecosystem, which, then, certainly supports their strategy around services and growth in services revenue as this becomes a seamless experience across all of those different devices.
So overall, it's very important to their strategy to have a broader set of products that would be like that size and cost, that appeal to more consumers, to propel their overall growth.
- And Julie, I think that's a good thing, too, here, since this is the first product launch by my account that Apple is going to be throwing these products out into the market during a pandemic. But on that--
JULIE ASK: First for all of us.
- I wonder how much-- I mean, Apple clearly has always kind of targeted a more wealthy clientele here.
JULIE ASK: Mm-hmm.
- But how much of the impact, in terms of consumer spending, might actually weigh on this product launch when you think about how it's competing against some other smartphone makers out there, too?
JULIE ASK: Well, I think, you know, Apple has always been successful at being the company that sells smartphones profitably, right? So they've always done that very well. But I think what you also see in some of their latest announcements is, OK, we have traditionally targeted affluent families. But now we're also targeting their teenagers, and we're targeting their children, with the SE versions. And so I think we're going to continue to see them do well with that strategy, in terms of extending what I would call the total base of products that are in their ecosystem out in the market.
- And speaking of that ecosystem, Julie, we did get that announcement from Apple earlier this week about their new MacBooks that are using chips that are designed in-house. It feels like increasingly, there's not a lot of distinction between these devices. You can kind of flow from a MacBook to an iPad to the phone, which, by the way, costs as much as an iPad.
JULIE ASK: It does.
- Is there a risk of cannibalization, that maybe users don't necessarily need all these devices anymore because there is so much that can be done in that one phone or in that one iPad without spending the money for a MacBook?
JULIE ASK: Yeah. So I think there's at least two sides to this story. So on one hand, yeah, I think there can be some cannibalization. If you look at your typical consumer that's mostly, let's say, communicating, consuming video, listening to music, watching TV, you know, doing email, do they necessarily need a laptop? No, they don't. They could also do that with an iPad or with a smartphone.
But on the other hand, what I was saying with that is the more devices that support the same operating system and the same set of applications, the broader the install base that you're going to get for developers, which then attracts more content and more services, which then makes the experience on any one of these devices better.
- All right. Julie, I say this as I look to my devices in front of me right now. I've got four Apple devices-- two iPhones, a MacBook, and an iPad. So I guess I just answered my own question. It's going to be interesting to see how much growth there is for all of these products.
Julie Ask joining us there from Forrester Research. Appreciate your time.
JULIE ASK: Thank you very much. Thanks for having me.