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Tag Archive for ‘KGI Securities’

Thoughts on a Potential Echo Competitor

Rumors of an Apple-made Echo competitor have been around for nearly as long as Amazon has been selling their voice assistant devices. Last year, The Information claimed that Apple had been working on a Siri-powered smart speaker since 2015. Here we are, a year after The Information’s piece, and the current crop of rumors are pointing toward this year’s WWDC as a possible announcement venue.

Ming-Chi Kuo, writing for KGI Securities, as quoted by MacRumors:

We believe there is an over 50% chance that Apple will announce its first home AI product at WWDC in June and start selling in the [second half of 2017] in order to compete with the new Amazon Echo models to be launched […]

We expect Apple’s first home AI product will have excellent acoustics performance (one woofer + seven tweeters) and computing power (similar to iPhone 6/6S AP). Therefore the product is likely to be positioned for: (i) the high-end market; (ii) better entertainment experience; and (iii) higher price than Amazon Echo.

I think it’s worth pointing out that Kuo believes Apple’s Echo competitor will be positioned to compete with “the new Amazon Echo models to be launched”. Just eight days after KGI Securities published this note to investors, Amazon unveiled the Echo Show — a new smart speaker device with a built-in display. Perhaps this is the device that Apple is aiming to compete with.

Adding fuel to the fire, Phil Schiller, in an interview with Gadget360, was asked about the Amazon Echo and Google Home. He wouldn’t speak to either device specifically, instead choosing to discuss the category as a whole. While Schiller did admit that there were times when an entirely voice-controlled interface was useful, he emphasized the importance of a display for many tasks:

First of all, there is a lot of talk in the industry about voice-driven assistants and we believe deeply in voice-driven assistants that’s why invest in Siri, but there is interest in a voice-only assistant, where there is no screen, and we think it’s important to that there are times when it’s convenient to simply use your voice when you are not able to use the screen. For example, if you’re driving [and] you want Siri to work for you without having to look at the screen, that’s the best thing. Or maybe you’re across the room, and you want to ask Siri to change the song you were listening to – you don’t have to walk over and back [and you can use Siri instead].

So there’s many moments where a voice assistant is really beneficial, but that doesn’t mean you’d never want a screen. So the idea of not having a screen, I don’t think suits many situations.

If Apple plans to announce a Siri-powered smart speaker at WWDC — and I think they will — it has to feature a touch screen display. And in an attempt to one-up Amazon’s Echo Show, I believe Apple’s Siri-powered device will feature a fully-functional version of iOS that’s capable of running all of the same software as the iPad or iPhone. One of Apple’s greatest strengths is the iOS ecosystem — a never-ending supply of developers building some of the most innovative software of our time.

A touch screen device that’s built on iOS seems like a no-brainer, but the bigger question is, what will the Siri-powered speaker actually look like? Will it be similar to Amazon’s Echo Show — an iMac-like iOS device? Or will it be two components — a dock with high-quality speakers and beam-forming microphones alongside an iPad Mini-sized tablet.

I would prefer Apple to favor versatility and portability in their design and opt for a Siri-speaker with multiple components. Give me a device that, when docked, can be fully operated by voice — for use while cooking or doing dishes — but can also be removed from the dock and carried into the dining room for light reading while I enjoy a cup of coffee.

I want the ability to browse for recipes on the tablet’s touchscreen while I’m streaming podcasts from my iPhone to the device’s speaker dock. I want to use my voice to start playback of the latest episode of Silicon Valley and have that viewing reflected in the TV app on my Apple TV and iPad. I want a an Echo-competitor that feels fully entrenched in Apple’s ecosystem — something that syncs with my iCloud account, can run all of the same applications as my iPhone and iPad, and leverages services like FaceTime, the TV app, and iMessages.

I think this is something Apple can deliver. Maybe they can’t do everything in 1.0. But if they can ship a sizable portion of these features by the end of the year, I’ll be the first in line to buy one.

Apple May Announce Amazon Echo Competitor at WWDC ➝

Joe Rossignol, writing for MacRumors:

Apple’s widely rumored Siri-based smart speaker and home hub has an “over 50 percent chance” of being announced at WWDC, scheduled for June 5-9, according to often-reliable Apple analyst Ming-Chi Kuo of KGI Securities.

If this is announced at WWDC, I hope it will come alongside a robust Siri SDK that will allow developers to extend Siri’s functionality in ways that aren’t possible today. It would also be nice if it could function as a Wi-Fi router, replacing the AirPort Express.

And I still like John Gruber’s idea from last year, Apple should call it the Hi-Fi.

Ming-Chi Kuo: Apple Planning 10.5-Inch iPad Pro ➝

Eric Slivka, writing for MacRumors:

According to Kuo, Apple is aiming to introduce a new 10.5-inch iPad Pro model next year to go along with a 12.9-inch iPad Pro 2 and a “low-cost” 9.7-inch iPad model. Kuo makes no mention about the fate of the current 7.9-inch iPad mini, although many have assumed that model may be phased out as the recent 5.5-inch iPhone “Plus” models have helped lessen demand for Apple’s smallest tablet.

John Gruber thinks we’ll see a new aspect ratio for the iPad — because of how close the 9.7-inch size is to this rumored 10.5-inch device. But I’m not so sure. Apple currently sells the 11.6-inch MacBook Air alongside the 12-inch MacBook. Both of them feature the same aspect ratio — why would the iPad be any different?

Update: Apologies for the oversight, Ravi Gupta points out, on Twitter, that the 11.6-inch Air and the 12-inch MacBook do have different aspect ratios. Sounds like Gruber might be right after all.

Ming-Chi Kuo Publishes Note on Apple’s Notebook Plans ➝

He’s predicting MacBook Pro updates — with Touch ID, an OLED display touch bar to replace the function keys, and a new thin and light design — and a new 13-inch MacBook that will further relegate the MacBook Air to the entry-level position.

Next Apple Watch Will Be Mostly Internal Upgrades ➝

Neil Hughes, writing for AppleInsider:

The KGI Securities analyst dished details on the next-generation Apple Watch in a research note issued on Monday, a copy of which was obtained by AppleInsider. Kuo claims that the 2016 Apple Watch will feature “spec improvements with limited changes to form factor design.”

Those expecting a new look for the Apple Watch, such as a thinner profile, will have to wait until the company’s anticipated 2017 upgrade, he said. This year’s model is expected to be much like the iPhone tick-tock upgrade schedule, with an “s” update focusing on the internal components rather than the external design.

This shouldn’t come as much a surprise, this is how Apple develops all of their products.

Ming-Chi Kuo: New 4-inch iPhone in Early 2016 ➝

Neil Hughes, writing for AppleInsider:

The KGI Securities analyst, who has a strong track record in predicting Apple’s future product plans, believes Apple’s new 4-inch iPhone will resemble an upgraded iPhone 5s. The handset will come in a metal casing, and will feature identical camera specifications to the current entry-level iPhone, he said.

But in a key specification upgrade, Kuo said the new 4-inch iPhone will boast an A9 processor, as well as near-field communications technology for Apple Pay. He expects the device will cost between $400 and $500, with the goal of reaching emerging markets and consumers looking for a more affordable iPhone.

Apple Predicted to Launch New 4-Inch iPhone in Early 2016 ➝

Eric Slivka, writing for MacRumors:

KGI Securities analyst Ming-Chi Kuo has released a new research report outlining his expectations for Apple’s 2016 iPhone launches, including several interesting tidbits about the upcoming devices.

First, Kuo believes Apple still has a new 4-inch iPhone in the works that “resembles an upgraded iPhone 5s”. The device is said to be targeted for launch in the first half of next year and will come equipped with an A9 processor.

Although Kuo doesn’t expect the new 4-inch device to feature 3D Touch, I couldn’t be happier to hear that Apple isn’t abandoning the smaller form factor. My fiancée is still using her two year old iPhone 5s and has been holding out hope that Apple will introduce a modern 4-inch iPhone for her to upgrade to.

Kuo claims the device is targeted for the first half of next year — if I was forced to guess, I’d say we’ll probably see it in March or April.

Next Year’s iPhone Thickness Likely to Approach iPod Touch ➝

Ming-Chi Kuo has a pretty good track record for Apple predictions and this is exactly the sort of upgrade Apple likes to do for their “tock” iPhone announcements.