Two admirals, a coxswain, and a guy with a steering wheel

During tech earnings weeks, the Vergecast team discusses the performance of various tech companies beyond just the numbers. They focus on product developments and company strategies. For instance, Apple, often referred to as a "fruit company" in a playful manner, reported a decline in iPhone sales for the first time in 13 years. Despite the company's earlier warnings of disappointing results, the team noted that the sales figure was still better than some had anticipated. The Vergecast team doesn't focus on stocks or personal investments but uses earnings reports as an opportunity to evaluate the health and direction of tech companies.

Apple's sales and revenue were down for the last quarter, leading to low expectations, but they managed to beat those expectations and see a stock jump due to increased sales of more expensive products like the iPad Pro. Despite this, Apple is approaching the release of a new iPhone with low expectations and rumors of design changes. The smartphone market is seen as largely dominated by Apple and Google, with Apple selling a significant number of iPhones, even if sales are not growing at the same rate as before. Samsung, on the other hand, has seen strong sales of the S7 and record profits, potentially due to the success of the S7 Edge and the sales of Gear VR headsets. Overall, the market for smartphones is evolving, with companies focusing on innovation and new features to keep consumers interested and buying new devices.

The recent surge in Samsung phone sales might not be a sign of a global smartphone market rebound, but rather consumers waiting for the right design and aesthetic before upgrading. The new Samsung design, including their understated font, has been well-received. Apple is also rumored to release an iPhone SE2 and a potential MacBook Pro SE, but the significance of these potential releases remains uncertain. The success of phone sales has historically been linked to screen size and form factor, but with the increasing importance of services, Apple's growth in this area was a notable bright spot in their earnings report.

Apple's focus on hardware features like screen size is not just about product differentiation. It's about getting people to use their apps and services, and keeping them within the Apple ecosystem. The speaker shared a personal experience of downsizing from a large phone to a smaller one and being just as satisfied. He also mentioned that the promise of better battery life on larger phones has not been fulfilled. The speaker also noted that larger phones are not ideal for exercising due to their size and weight. Ultimately, the discussion highlighted that Apple's strategy is not just about selling hardware, but about creating a seamless user experience that keeps customers engaged with their ecosystem of products and services.

The Apple Watch, which was introduced in 2015, has fallen behind in terms of software and app development due to its slower processing speed. Apple attempted to improve the experience by moving more app logic onto the device itself, but the lack of developer focus on WatchOS means it's not the primary platform for most apps and services. The phone, on the other hand, revolutionized technology by converging various functions like calculators, cameras, and music players into one device. The first killer app for the phone came from the App Store, such as Super Monkey Ball or Shazam. Now, Apple is investing heavily in Augmented Reality (AR), as confirmed by Tim Cook during a call, and AR experiences like Pokemon Go are indicators of its potential. The discussion also touched upon the upcoming Apple event, where new iPhone models are expected, and the need for refreshes for the current models.

Apple is making strategic investments in areas where their technology can complement and enhance the offerings of other companies. An example given was the successful integration of Apple products with the popular game Pokemon Go. Additionally, Apple is reportedly focusing on developing autonomous driving software, and has hired a former CEO of QNX, a trusted car software company, to lead the project. The potential implications of this move could be significant, as it could result in Apple providing self-driving software to other car manufacturers. However, there are concerns about potential lock-in effects, as Apple may try to integrate their software with other Apple services, such as email or maps, in a way that could be mandatory for users. Overall, Apple's strategy of investing in complementary technologies and partnerships is a key trend to watch as the company continues to expand its reach beyond hardware.

As technology advances, particularly in areas like self-driving cars, ethical dilemmas will arise that challenge our traditional notions of responsibility and decision-making. The trolley problem is a classic philosophical thought experiment that illustrates this concept. In this scenario, an individual is faced with a choice between actively causing harm to one person or allowing harm to come to multiple people. The trolley problem has been applied to the context of self-driving cars, which must make split-second decisions to avoid accidents. During the discussion, it was pointed out that the person who buys a self-driving car expects it to prioritize their safety above all else. However, the car may not have the same level of allegiance to the buyer, and may instead prioritize the greater good. This raises questions about the role of technology in our lives and the ethical implications of its use. Another topic touched upon was the ongoing efforts of Apple to secure a TV deal. The Wall Street Journal reported that Apple has been trying to negotiate with TV networks since at least 2008, highlighting the challenges and complexities involved in such deals. Overall, the discussion underscored the importance of considering the ethical implications of technological advancements and the role of corporations in our lives.

Apple's attempts to disrupt the traditional TV industry with its streaming service have faced numerous rejections from TV companies due to Apple's high demands and unwillingness to pay for content in the traditional bundle model. Consumers, on the other hand, value individual shows over bundles, leading to the popularity of OTT services like Netflix and HBO. The failure of Apple to secure desired content and the shifting consumer behavior towards individual streaming services have made it challenging for Apple to launch a successful streaming service. The industry is evolving, and the old bundled model may no longer be effective in meeting consumers' demands for content accessibility and affordability.

Consumers view streaming services like Netflix as interfaces to entertainment, and they're willing to pay a premium for a seamless and convenient experience. However, the fragmented nature of cable apps and inconsistent offerings deters many from making a switch. Piracy remains an option for some, but the TV industry is not yet feeling threatened enough to make significant changes. Despite Apple's confidence in offering a superior interface, the industry is hesitant to make deals that could potentially devalue their products. The refusal of companies like Comcast to see Apple's interface demonstrates the competitive nature of the industry and the reluctance to give up control. Ultimately, the challenge for Apple and other tech giants is to provide a compelling enough value proposition to lure consumers away from their traditional cable providers.

While the interface challenges in the streaming industry may seem surmountable, the real hurdle lies in the content itself. Apple, despite its efforts and resources, has faced resistance from established players like Comcast, and even as it explores original programming, it seems to be struggling to disrupt these industries. Meanwhile, companies like iDevices are finding success in the smart home market by offering high-quality, customizable products with excellent customer service. The content conundrum, coupled with the power and resistance of legacy industries, presents a significant challenge for Apple as it seeks to make a meaningful impact in the TV industry.

IDevices offers HomeKit users a premier app to manage and control their smart home devices without the need for a hub, contracts, or installation wait times. As a special promotion, they are giving away 500 Wi-Fi smart plugs, known as iDevices switches, for free to the first 500 claimants by visiting iDevicesinc.com/Verge and using the promo code Verge. This offer also includes a 30% discount on other purchases. The Cowa Robot R1, this week's gadget flavor, is a robotic suitcase that you can ride like a scooter, providing an alternative to traditional wheeled luggage. Despite the existence of other robot suitcases, this one stands out for its unique feature. Overall, iDevices' user-friendly smart home solution and Cowa Robot R1's innovative design offer exciting possibilities for tech enthusiasts.

During the discussion, two innovative travel gadgets were introduced that have successfully raised significant funds on Indiegogo. The first is the Modo Bag, a smart suitcase that can maneuver through an airport like a character from Star Wars, while the second is the Cowaroba R1, a robotic suitcase that follows its owner and has GPS tracking. Both have been fully funded, with the Modo Bag raising over $114,000 and the Cowaroba R1 over $2 million. These gadgets showcase the growing trend of advanced, high-tech luggage designed to make travel more convenient and efficient. Additionally, Google's earnings were also touched upon, with the tech giant reporting impressive revenue and profits during their latest financial report.

During Alphabet's earnings call, the "Other Bets" category, which includes businesses outside of Google's core offerings like Nest and Waymo, lost less money than expected. However, they still lost significant amounts, with Nest experiencing service outages and issues with their pet feeder. Google, on the other hand, continued to outperform expectations, with YouTube and search maintaining their dominant positions on home screens. Facebook also reported strong earnings and a focus on video content, where advertising revenue is growing. Twitter, meanwhile, struggled to add users and continues to grapple with defining its identity. In summary, while Google and Facebook are thriving, the "Other Bets" category and Twitter face challenges.

Twitter's role as a platform for real-time news and discussion, particularly during major events like political conventions, is more vital than ever. However, its user growth has stagnated, and the company is pivoting to focus more on video and live events to attract new users. The combination of live streaming and a real-time feed of related tweets creates a unique "first screen, second screen" experience. Twitter is positioning itself as a broadcasting social network rather than just a social network, and the upcoming election and sports events are expected to be key areas of growth. Despite some users' reluctance to the shift away from traditional tweeting, Twitter's new approach could help it attract a wider audience and solidify its position as a go-to source for live news and commentary.

Twitter, despite its complexities and potential harassment issues, offers unique value that goes beyond what can be aggregated by news organizations. The language and features of Twitter, such as hashtags and ad signs, create a distinct community experience. Brands and companies, like Cadillac, are recognizing this value and integrating Twitter into their products and sales processes. Google, with its successful hardware line including Chromebooks and Chromecasts, is poised to potentially expand into new areas like smartwatches. The competition between Google and other tech companies in the low-end market is complex, and it remains to be seen how Google will position itself as it continues to merge its operating systems. Ultimately, Twitter and other tech platforms provide experiences and communities that cannot be replicated, making them worth the investment of time and effort for users.

Google is set to become a more significant player in the tech industry as a platform vendor, and this is exciting because it could lead to a unified desktop to mobile experience. Amazon, on the other hand, is making significant profits and investing heavily in research and development for new products. During the discussion, it was mentioned that Amazon's new phone, which comes with ads, could be an example of the future trend towards accessing things temporarily rather than owning them outright. Amazon's strong position in recurring services like Prime and cloud services makes them well-positioned to explore business models based on renting or temporary access to goods and content.

While the world is increasingly moving towards digital and consumable goods, there's still a value in physical experiences and scarcity. During a conversation on The Vergecast, the team discussed the nostalgia of holding a physical VHS tape and finishing a physical book, highlighting the importance of the tangible and final nature of these items. In contrast, Werner Herzog was interviewed about Pokemon Go and the potential for physical violence in the game, adding to the ongoing debate about the role of technology and physical experiences in our lives. Additionally, Cara from The Verge discussed her deep dive into Yahoo for a podcast episode, showcasing the continued interest in and value of exploring the past and physical aspects of technology. Overall, while the future may lean towards digital, there's still a place for the physical and tangible in our lives.

The speakers, Emily, Liz, Paul, and Peter, are involved in various podcasts. Emily and Liz host the VRGSP entertainment side podcast, while Paul is starting a new podcast called "A Thousand Words," where he describes various Google image searches. Peter was not mentioned in relation to a podcast. The speakers encouraged listeners to leave positive reviews on iTunes, follow them on social media, and even send illustrations of the trolley problem to Paul. They also thanked iDevices for sponsoring their podcast and offered a free switch to the first 500 listeners who visited iDevicesinc.com/verge. The speakers' enthusiasm and catchphrases added to the lighthearted and engaging tone of the discussion.