Apple Inc. (AAPL, Financial) celebrated the 10-year anniversary of its first iPhone with several new products, including the next generation of iPhones, the Apple Watch Series 3 and new advancements for Apple TV.
The next generation of iPhones and iOS
Apple CEO Tim Cook announced the next generation of iPhones, including the iPhone 8, the iPhone 8S and the iPhone X. While the first two include wireless charging, the iPhone X represents “the biggest leap for the iPhone” according to Senior Vice President Phillip Schiller. Schiller highlighted several new features of the device at the keynote event, including a super retina display, a new way to reach the home screen and the next step in facial recognition. Known as FaceID, the new 3-D facial recognition sensor adapts to your face over time, decreasing the probability a random person can unlock your iPhone with their face.
Apple also announced a Sept. 19 launch date of iOS 11, which “sets a new standard for the world’s most advanced operating system” according to the company's website. The Cupertino, California-based consumer electronics company detailed the “redesigned experience” with new features, including a faster way to reach Apple Messages and a more powerful Siri, the iPhone’s personal assistant. Senior Vice President Craig Federighi discussed the animoji, an animated version of the emoji, during the product launch.
Other new product launches
Cook also introduced several new products, including the Apple Watch Series 3 and the 4K high-definition-range imaging feature on Apple TV. The CEO highlighted two major achievements for the Apple Watch, including a 97% customer satisfaction rate. According to Cook, the Apple Watch is now the top-selling watch in the world.
The Apple Watch, according to Chief Operating Officer Jeff Williams, facilitates a healthy lifestyle in several ways, including monitoring heart rates and tracking fitness with a new app called the “Gym Kit.” These new features, along with a built-in cellular feature, would further tailor to customers as implied by the customer-satisfaction video played during the product launch.
Conclusions
Apple remains a profitable company with operating margins and returns on equity outperforming over 97% of global competitors.
Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio) mentioned his “love for Apple” in a CNBC video on his 87th birthday. We have a thread dedicated to Apple on our GuruFocus Forum.
Disclosure: The author has no positions in the stocks mentioned.
