What happened after Apple’s earnings serves as a stark reminder that for far too long the loudest voices have been heard and the knowledge has been suffocated. Wall Street doesn’t have the lexicon to understand what’s actually happening in technology, and that goes for Google, Facebook, Amazon, Microsoft and dozens of technology and biotechnology companies (check out CMLnews to read those).
I’m going to introduce example A-1. And fear not, at the end of this article, I will introduce you to some people in the media that are excellent follows.
I am using a tweet from Carl Quintanilla (@carlquintanilla) a CNBC anchor and WSJ alum as an example. This isn’t personal at all, let’s not take this single tweet to be more than just that.
But you will find main stream media littered with similar comments and the fact is, while there is no malintent, they’re just a transparent indication that most of main stream media and Wall St. analysts simply don’t understand technology at a level beyond headlines.
A phone company. Now, more than ever .. $AAPL https://t.co/FtucJcuvAX
— Carl Quintanilla (@carlquintanilla) October 27, 2015
Josh Brown (@ReformedBroker) has said similar things surrounding the failure (?) of Apple Watch. Dozens of media outlets have said the same thing. This tweet is not singling out a man who has dedicated himself to a wonderful career.
But… YIKES! Friends, the Apple iPhone is not a phone. It’s the embodiment of a new language, a new vocabulary that Apple has brought to the social vernacular. iPhone is the control center, the digital extension of ourselves to grow the largest company in the world, with the largest earnings ever into an even larger colossus. It’s not a phone, it’s a 5oz., 2 billion transistor, networked, digital tool chest.
Here’s a fact for you that you won’t hear elsewhere. Apple’s spending in research and development (R&D) is up 73% in the last two-years. Hello? Here’s that chart (not updated for the most recent quarter yet):
When a person holds their iPhone in their hands, they aren’t holding an upgraded Ericsson flip phone from 2003. They’re holding their wallets. They’re holding their keys. They’re holding their TV remote. More Apple iPhones means more of Apple in the middle of everything we do. Here’s an image of the iPhone as a control center:
Here’s my response to Carl:
The iPhone is not a phone. Its a facility for Apple to dominate mobile pay, wearables, TV, music, Car and more. https://t.co/fOpeoW9d6N — Ophir Gottlieb (@OphirGottlieb) October 27, 2015
That’s right, Apple iPhone is the bulldozer. The iPhone is the evolution of all the “tools” that have differentiated primates since the opposable thumb.
As I said on live TV and in several reports:
Doubting Apple is OK, but doubting Apple because of obvious statements like “it’s a phone company” [] is low brow and misses everything. Friends, this is chess not checkers. Apple is ahead of us (all of us), not behind us. – Source: Apple and Google Are at War to Own the Future.
What Apple is Doing
Apple’s colossal success has been achieved through a seamless ecosystem that focuses on ease, style, and marketing. Apple reinvented itself with the iPod, and people called it an mp3 player company but of course, the iPod’s real power came from the synergy between music device <-> music store <-> control hub (apple/mac computer).
Apple is repeating history. This time the Apple iPhone is the driver, and your watch, tv, credit card and car is the synergy. Welcome to the warm, fuzzy, techno-blanket Apple will wrap its hundreds of millions users in.
This is why Carl and most of Wall Street is simply dead wrong and will likely continue to be on most things tech and biotech related: they lack the in-depth tech vocabulary to understand it.
A New Language
Apple’s new language through its iPhone communicates to its market place a vast array of products that will soon (or already do) dominate the landscape. And it sure as sh* isn’t a “phone.”
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