Apple Inc. - Special Call - NasdaqGS:AAPL

NasdaqGS:AAPL

Timothy D. Cook, CEO & Director of Apple Inc., discussed various topics during the Special Call presentation on September 12, 2018. Below is a detailed summary of his statements:

Opening Remarks

• Welcomed attendees to the Steve Jobs Theater.
• Mentioned the fun video played at the beginning of the event.
• Noted the hectic preparations leading up to significant events like this one but highlighted the excitement and magic of sharing Apple's latest innovations.

Apple's Mission and Impact

• Recalled Apple's founding mission to make computers more personal, starting with the Apple II and then the Mac.
• Emphasized how Apple has extended its mission by creating several technology categories that have profoundly impacted people's lives, such as the iPod, iPhone, iPad, and Apple Watch.
• Highlighted the transformation of the retail experience, making Apple Stores open, beautiful, and inspiring places for learning and gathering.
• Mentioned the opening of the Apple Piazza Liberty store in Milan, which revitalizes a plaza in the city center and is expected to be popular for years to come.
• Shared that Apple Stores now welcome over 500 million visitors annually, expressing gratitude for the opportunity to help customers experience and get the most out of Apple products.

iOS Milestone

• Praised iOS as the most advanced and personal mobile operating system, noting that Apple is about to ship its 2 billionth iOS device.
• Described the transformative impact of iOS on various aspects of daily life, including learning, working, entertainment, shopping, transportation, and communication.

Personal Technology Evolution

• Observed how Apple's mission has evolved from personalizing desktop technology to impacting numerous aspects of daily life.
• Announced that the focus of the event would be on two of Apple's most personal products: the Apple Watch and the iPhone.

Apple Watch

• Praised the growth and success of the Apple Watch, mentioning that it is not only the #1 smartwatch but also the #1 watch overall.
• Highlighted the Apple Watch's role in helping people stay connected, be more active, and live a healthier life.
• Introduced Jeffrey E. Williams, the Chief Operating Officer, to discuss the next generation of Apple Watch.

New Apple Watch Features

• After Jeffrey's presentation on the Apple Watch Series 4, Cook mentioned the redefinition of what a watch can do with the introduction of the new model.
• Shared a video showing how the Apple Watch inspires people worldwide to be more active.
• Stated his excitement about the Apple Watch Series 4 and its redefinition of what a watch can do.

iPhone

• Acknowledged the iPhone X as having defined the future of smartphones and becoming the #1 smartphone globally.
• Praised the 98% customer satisfaction rate of the iPhone X.
• Announced the intention to take the iPhone X to the next level with the unveiling of the most advanced iPhone ever created.

New iPhone Models

• After Phil Schiller's presentation on the iPhone Xs, Xs Max, and XR, Cook summarized the new models' key features and pricing.
• Highlighted the best lineup of iPhones to date, ranging from the iPhone 7 to the new iPhone XR, Xs, and Xs Max.
• Mentioned the availability of iOS 12 and its features, such as AR, Animoji, Memoji, Screen Time, and more.

Additional Updates

• Announced updates to the HomePod, including stereo pairs and AirPlay 2, and new features like searching for songs by lyrics and making/receiving phone calls.
• Mentioned the upcoming tvOS update with Dolby Atmos support for Apple TV 4K and the release of macOS Mojave.
• Concluded the presentation by thanking attendees and Apple employees for making the event possible.

Closing Remarks

• Invited attendees to visit the hands-on area to experience the new products.

Jeffrey E. Williams, the Chief Operating Officer of Apple Inc., discussed various aspects of the Apple Watch Series 4 during the special call on September 12, 2018. Below is a detailed summary of his presentation:

Apple Watch Series 4 Introduction

• Redesigned and Reengineered: The Apple Watch Series 4 has been completely redesigned and reengineered. Every detail has been carefully considered, and the overall design is described as beautiful.
• New Display: The watch features a stunning new display with screens pushed right to the edges and curved corners matching the shape of the watch. The screens are over 30% larger, and this has been achieved with minimal changes to the case size. The Series 4 is thinner than the Series 3, with less total volume.

User Interface (UI) Enhancements

• Redesigned UI: Every part of the UI has been redesigned to take advantage of the new display. More information can be seen in apps like Maps, Photos, and Calendar.
• New Complications: New complications are introduced that look beautiful and show even more information and detail.
• Customizable Watch Faces: A brand-new watch face with up to 8 complications has been designed. Users can customize it with the things they care about, such as adding loved ones to the watch face or customizing a watch face to track different time zones.

New Features and Improvements

• Digital Crown with Haptics: The Digital Crown has been completely reengineered and now includes haptic feedback, providing a more responsive and mechanical feel.
• Speaker and Microphone: The speaker is 50% louder, which is great for phone calls and Walkie-Talkie or Siri requests. The microphone has been moved to the opposite side to reduce echo, making phone calls even clearer.
• Ceramic and Sapphire Crystal Back: The back of the watch is made entirely of black ceramic and sapphire crystal, making it beautiful and functional. Radio waves can now pass through both the front and the back, resulting in improved cellular reception.

Hardware Upgrades

• Fourth-Generation Silicon-in-Package (SiP): The Apple Watch Series 4 features a new fourth-generation silicon-in-package (SiP), which is referred to as S4. It contains a powerful new dual-core 64-bit processor and a new GPU, both custom-designed by Apple’s silicon team, delivering up to 2x faster performance.
• Accelerometer and Gyroscope: The accelerometer and gyroscope have been upgraded with twice the dynamic range and can sample motion data 8x faster. This enables new features like fall detection.

Fall Detection Feature

• Fall Detection: The Apple Watch Series 4 can detect a fall, and after detecting a fall, the watch delivers an alert. From that alert, the user can initiate an emergency call. If the watch senses the user is immobile for 1 minute, it will start the call automatically and send a message with the user’s location to emergency contacts.

Health Features

• Low Heart Rate Notification: A new feature notifies the user if their heart rate appears to be too low, which might indicate a serious health issue.
• Irregular Rhythm Notification: The watch can screen the user’s heart rhythm in the background and notify them if it detects an irregular rhythm that appears to be atrial fibrillation.
• Electrocardiogram (ECG): The Apple Watch Series 4 introduces an electrical heart sensor that allows users to take an electrocardiogram (ECG) anytime, anywhere right from their wrist. The ECG data, classifications, and noted symptoms are stored in the Health app in a PDF format that can be shared with a doctor.

Additional Details

• Battery Life: Despite all these features, the Series 4 has the same 18-hour, all-day battery life that customers enjoy on the Apple Watch. Outdoor workout time has been increased to 6 hours.
• Environmental Responsibility: The Apple Watch has been designed and manufactured in an environmentally friendly way.

Conclusion

• Availability and Pricing: The Apple Watch Series 4 will be available in three aluminum finishes: silver, gold, and space gray. Stainless steel options are also available. Pricing starts at $399 for the GPS model and $499 for the cellular model. The watch can be preordered starting Friday, and it will be available the following Friday, September 21.

Philip W. Schiller, the Former Senior VP of Worldwide Marketing & Interim VP of Communications at Apple Inc., presented details about the new iPhone Xs and iPhone XR. Here’s a detailed summary of his presentation:

iPhone Xs

• Design: Made of surgical-grade stainless steel, available in three finishes: gold, silver, and space gray. The front and back are covered with the most durable glass ever in a smartphone.
• Water Resistance: Improved to IP68, protecting the device to 2 meters for up to 30 minutes against liquids including chlorinated water, salt water, orange juice, tea, lime, and beer.
• Display: Super Retina display, an OLED display measuring 5.8 inches diagonally with 2.7 million pixels and 458 pixels per inch. It offers the highest-quality display on an iOS device.
• Size Comparison: The 5.8-inch display matches the size of the plus-size phone (iPhone 8 Plus) but in a smaller design.
• Sound: Stereo sound, better than in any previous iPhone, offering a wider stereo field and richer sound experience.
• Face ID: Faster algorithms and a faster Secure Enclave for quicker recognition.
• A12 Bionic Chip:
  • Industry's first 7-nanometer chip with 6.9 billion transistors.
  • CPU: 6-core CPU with 2 high-performance cores and 4 high-efficiency cores, running 15% faster and 40% more energy-efficient respectively.
  • GPU: Up to 50% faster than the A11, providing a significant jump in graphics performance.
  • Neural Engine: 8-core dedicated machine learning engine with smart compute system, processing 5 trillion operations per second.
• Camera:
  • Dual-camera system with a 12-megapixel wide camera and a 12-megapixel telephoto camera.
  • Smart HDR, which captures a 4-frame buffer and secondary inter frames for merging the best parts of each photo.
  • Portrait mode with improved bokeh and dynamic depth of field adjustment.
  • Higher-quality video with Smart HDR, supporting 4K video.
• Battery Life: Up to 30 minutes longer than the iPhone X.
• Networking: Gigabit-class LTE with more bands for better worldwide roaming.
• Dual SIM Capability: Dual SIM Dual Standby (DSDS) with eSIM technology, allowing two phone numbers to be active simultaneously.
• China Model: Special model with two physical SIMs for the Chinese market.

iPhone XR

• Design: Made from 7000 series aerospace-grade aluminum and more durable glass, available in six finishes: white, black, blue, coral, yellow, and (PRODUCT)RED.
• Display: 6.1-inch Liquid Retina display, the most advanced LCD in a smartphone, with 1.4 million pixels and 326 pixels per inch.
• Size Comparison: Larger display than the iPhone 8 Plus in a smaller design, fitting between the size of an 8 and an 8 Plus.
• Haptic Touch: Replaces 3D Touch with a new feature that provides tactile feedback when pressing on the screen.
• Face ID: Same TrueDepth camera system as the iPhone Xs and Xs Max, with faster algorithms and Secure Enclave.
• A12 Bionic Chip: The same 7-nanometer A12 Bionic chip as the iPhone Xs.
• Camera:
  • Single-camera system with a 12-megapixel wide-angle camera, the same as in the Xs and Xs Max.
  • Supports Smart HDR, portrait mode with advanced bokeh, and dynamic depth control.
• Battery Life: Up to 1.5 hours longer than the iPhone 8 Plus.
• Pricing and Availability: Starts at $749, less expensive than the iPhone 8 Plus. Preorders begin on October 19, with shipments starting on October 26.

Environmental Impact

• Lisa Jackson, Vice President of Environment Policy & Social Initiatives, highlighted Apple’s efforts towards sustainability, including using recycled materials in products and designing durable devices that last longer. She mentioned the use of recycled tin in the main logic board of the iPhone and the reduction of traditional plastics.

Conclusion

• Philip expressed excitement about the new iPhones and their capabilities, emphasizing Apple's commitment to delivering advanced technology to more customers.

Kaiann Drance, Senior Director of iPhone Product Marketing, discussed various aspects of the A12 Bionic chip and its applications in the new iPhones. Here’s a detailed summary of her presentation:

Kaiann Drance (Senior Director iPhone Product Marketing)

• Introduction to A12 Bionic

  • She emphasized that the A12 Bionic chip was designed specifically for iPhones, enabling incredible performance and efficient battery life.
  • She mentioned that every task on the iPhone, from unlocking with Face ID to taking photos, is powered by the chip.

• Everyday Experiences

  • She highlighted that the A12 Bionic makes everyday tasks like unlocking the phone, searching through photos, and using apps feel fast and effortless.
  • She noted that with performance updates in iOS 12, apps can launch up to 30% faster.

• Machine Learning

  • She discussed how machine learning has been used in various iPhone features, such as QuickType suggestions, Memories curation, and real-time suggestions in Maps.
  • She mentioned that the next-generation Neural Engine enables real-time machine learning, which is crucial for features like the camera, Animojis, and AR experiences.

• Examples of Machine Learning Applications

  • Camera: She explained how depth information is used for portrait mode and lighting, as well as in Animojis and immersive AR experiences.
  • Siri Shortcuts: She demonstrated a shortcut that could perform multiple actions like ordering coffee, providing driving directions, and playing music, all initiated with a single tap or voice command.

• Core ML Performance

  • She announced that Core ML would get up to 9 times faster and consume as little as 1/10 the energy, enabling developers to run complex neural networks more frequently and freeing up GPU resources for immersive graphics.

• Augmented Reality

  • She highlighted the iPhone Xs as the best platform for AR, mentioning that it is custom calibrated for the best AR experience.
  • She showcased an app called FishingGO that turns the user’s surroundings into an immersive marine aquarium.
  • She mentioned ARKit 2, which allows apps to access enhanced surface and object detection, persistent experiences, and multiple users.

• AR Quick Look

  • She demonstrated AR Quick Look, which allows users to view 3D objects in Safari and bring them into the real world with a tap.

• Developer Showcase

  • She introduced three developers to showcase what is possible with the A12 Bionic and iOS 12:
    • Todd Howard, Game Director of Bethesda Game Studios, presented a new game called Blades, which utilizes the CPU and GPU to deliver high-impact gameplay.
    • David Lee, CEO of NEX Team, and Steve Nash, 2x NBA MVP, demonstrated an app called HomeCourt that uses Core ML to analyze basketball shots in real-time.
    • Atli Mar Sveinsson, CEO of Directive Games, showcased a multiplayer AR game called Gallica AR, leveraging ARKit 2 and the power of the new iPhone.

• Conclusion

  • She expressed excitement about the capabilities of the A12 Bionic and the possibilities it opens up for developers and users alike.

Lisa Jackson, Vice President of Environment Policy & Social Initiatives at Apple, discussed Apple's commitment to environmental responsibility. Here’s a detailed summary of her presentation:

Environmental Commitments:

• Renewable Energy: Earlier in the year, Apple announced that it now runs on 100% renewable energy across all its facilities worldwide. This includes the new campus, which is powered by solar panels and directed biogas fuel cells. Data centers also use clean energy to support services like iMessage.

Sustainability Goals:

• Eliminating Need for New Materials: Apple aims to eliminate the need to mine new materials from the Earth. To achieve this, three key steps are necessary:
  • Transitioning to using recycled or renewable materials responsibly.
  • Ensuring products last as long as possible.
  • Recycling products properly after their lifecycle.

Material Innovations in New iPhones:

• Recycled Tin: Apple uses recycled tin in the main logic board of iPhones, including the new iPhone Xs, without compromising quality or performance. This change prevents the mining of over 10,000 tons of tin ore annually.
• Better Plastics Program: Apple is reducing its use of traditional plastics and transitioning to recycled and bio-based materials. For example, the speaker enclosure for iPhone Xs is made with 35% post-consumer recycled plastics, and the cover glass frame is made with 32% bio-based plastic, which is better for the environment and performs better.

Product Durability:

• Long-Lasting Hardware and Software: Apple designs and builds durable products that last as long as possible. This includes long-lasting hardware coupled with amazing software. Devices like the iPhone 5s can run iOS 12, ensuring they remain useful for a long time.

Reuse and Recycling Programs:

• Apple GiveBack: Customers can bring in or mail in their devices regardless of condition. If the device can be reused, Apple will give its value; otherwise, it will be recycled properly for free.
• Robot Recycling: Daisy, a robot, can disassemble nine different iPhone models, allowing for the reuse of recycled materials in future products, reducing the need to mine new materials.

Conclusion:

• Confidence in Long Lifecycle: Customers can be confident that the new iPhone Xs was designed for another long life of use. Whether through reuse or recycling, it is good for the customer and a significant win for the planet.