Oppenheimer Loves the Watch

Oppenheimer is out with a new piece of equity research on Apple Inc that focuses on the potential of the watch. They think “we’re at the inflection point of the next stage of computing” just as we were when the iPhone launched in 2007 to take down the personal computer. Oppy takes on early critics of the Apple Watch by explaining that it’s not about what wearables are to us today (a novelty), it’s about what they could (will?) be to us tomorrow. 

Below, Andrew Uerkwitz and Martin Yang remind us about how some of Apple’s last few paradigm-shifting products were originally recieved:

***

Rarely does the general public get Apple products right at first sight, before their actual shipment. Looking back at Apple’s first generation product launches (iPod, iPhone, and iPad), one thing becomes clear: each product begged the question: what does it do?

Below are some reviews/quotes that followed the product announcements.

First iPod (announced in October 2001):

“Clearly Apple is following Sony’s lead by integrating consumer electronics devices into its marketing strategy, but Apple lacks the richness of Sony’s product offering. And introducing new consumer products right now is risky, especially if they cannot be priced attractively…” (Technology Business Research, October 2001)

First iPhone (announced in January 2007):

“The keyboard more or less requires “faith” in the word auto-correction, an Apple rep likened it to using The Force, and while all three reviewers were able to get up to speed sooner or later, it’s most certainly agreed that this is no BlackBerry- killer.” (Engadget, review of other journalist’s iPhone reviews, June 2007) 

“Five hundred dollars? Fully subsidized? With a plan? That is the most expensive phone in the world. And it doesn’t appeal to business customers because it doesn’t have a keyboard, which makes it not a very good email machine.” (Steve Ballmer, 2007)

First iPad (announced in January 2010):

”This time around the Next Big Thing is called an iPad. It’s basically an oversize iPod Touch… Jobs and his team kept using words like “breakthrough” and “magical”, but the iPad is neither, at least not right now…At the very least, we had hoped a tablet from Apple would do something new, something we’ve never seen before. That’s not the case…” (Newsweek, January 2010)

Not that we think we get it right all the time—but in this report, we attempt to at least “think different”. We believe all products are built to solve problems, some obvious, some less so. When a problem is less obvious, designers need to ask the right questions and correctly frame the problem, then find a solution. The reason opinions are divided on the Watch, is that it solves both existing problems (time-keeping, fitness tracking) and problems we don’t know exist (new ways to connect to people and potentially to other devices). It’s this second question that Apple tends to get right, and early reviews tend not to answer.

***

Josh here – Yesterday, the first reviews of the product started to hit the interwebs. Here’s a roundup of what everyone thinks:

Apple Watch review round-up (Techradar)

And here’s the New York Times technology thought leader-in-chief Farhad Manjoo on whether or not the watch will be revolutionary:

 

Source:

Watch Apple Change Computing, Again
Oppenheimer – April 9th 2015

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. DevOps Companies commented on Dec 01

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  2. rbc login canada commented on Dec 04

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  3. patek philippe replica commented on Jan 14

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  4. rolex podr��bka commented on Jan 16

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  5. rolex replica commented on Jan 20

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  6. mt5-china.club commented on Jan 22

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]

  7. repliki zegarków szwajcarskich commented on Jan 23

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2015/04/09/oppenheimer-loves-the-watch/ […]