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SALT LAKE CITY — With anticipation for new iPad and iPhone products mounting, analysts and accessory manufacturers are taking advantage of the hype in creative and even questionable ways.
Patent suggests Apple planning for "smarter" smartphones
A recently filed patent for "an electronic device for predicting or anticipating a user's operational desires" may reveal other elements of Apple's future devices.
Other recent patent applications include wearable computers and a network of sensors to track your activity and cater to a users needs as they happen. This new patent compliments these innovations by providing a sort of brain to the myriad sensors and other inputs described in those other patents. The patent describes how a device could predict human behavior by using various sensors and inputs from the user, and then anticipate what a user will do next.
Examples of such use could include switching on the Maps app when the device notices it is in a vehicle, or activating a morning alarm as the sun comes up. One of the primary objectives of the patent is that the device is more proactive in assisting users: instead of waiting for the user to tap on a button, the device knows by context and situational awareness what the user intends to do.
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This patent and the other related patents may suggest Apple's answer to the Google Now product available on some Android smartphones. Google Now uses a cloud-based situational awareness algorithm to analyze recent search queries, sites visited, email content, and other information available to the search giant to predict user behavior and then push contextually aware content and options to the user. In contrast, Apple's patent suggests that data come from the device itself and possibly other sensors that may be embedded in clothing or other accessories.
This alternate approach would be a better fit for Apple's position as a company, since Google owns enormous market segments in search, advertising, email and other consumer Internet services. Apple, on the other hand, controls a staggering 20 percent of the consumer electronics market in the United States, which lends itself well to a device-centric, sensor-based approach to determining user intent and context. As these technologies evolve and become increasingly ubiquitous, consumers will benefit from the competition and innovation.
iPad 5 accessories a gamble, reveal possible redesign
MiniSuit, a manufacturer of Apple accessories, has already begun to develop a case for the next iPad, despite not knowing what the next tablet will look like. This new case is based on specifications from a "reliable source"; however, until the iPad 5 and the next version of the iPad mini are officially announced, their plans to mass market the case are not much more than a bet.
If their case specifications and designs are accurate, though, MiniSuit will beat its competition by several weeks, enjoying "first mover" advantage by selling one of the first cases for the anticipated iPad 5. If not, they will have a lot of useless plastic on their hands.
In any case, the designs by MiniSuit suggest that the new iPad 5 and iPad mini products will be significantly thinner, with smaller side bezels. The microphone, which has been located on the top of the device, has been moved around to the back of the tablet. The smaller bezels and general slimming of the product indicate that the internal structure of the next set of iPads will be redesigned yet again, leveraging thinner display components and smaller chips.
While this rumor is entirely based on the speculation of an accessories manufacturer, they are putting their money where their mouth is and developing product based on a rumor, lending it more credibility than some other rumors.
Apple expands operations in India
Apple is continuing expansion in Asia, and is particularly aggressive in targeting India. Apple recently launched the iTunes store and Apple TV products to Indian consumers, and is expected to add new retail stores and staff to increase market penetration in India's fast-growing economy.
According to the Wall Street Journal, "Apple is sidestepping wireless carriers to seize greater control over marketing in India and offering no-interest loans to lure lower-income consumers. The company has also boosted staff in India by 30 percent to 170 employees in the past six months. And it is ramping up the introduction of other products, with the Apple TV video-streaming gadget expected to reach stores in coming weeks, people familiar with the matter say."Apple has also begun luring lower-income consumers with zero-interest financing deals, helping to curb the sticker price of Apple's premium products.
Apple does have a long way to go in competing with other handset makers. Samsung presently controls 40 percent of the Indian smartphone market, bolstered by a vast network of 100,000 authorized resellers as well as brand recognition from other consumer electronics and home appliances like microwaves.
Apple presently ranks sixth in smartphone shipments in India, behind Samsung, Sony, Nokia, LG Electronics, and BlackBerry. Some analysts believe Apple's lag primarily stems from its premium product pricing, which places it out of reach by most consumers in India. While Apple historically has not competed on price, by launching a low-cost version of the iPhone, Apple would be better-equipped to challenge and capture market share from competitors in India and other developing smartphone markets.
Rumored stock split jumps AAPL price, hedge fund manager sells
Douglas Kass, a hedge fund manager and author at The Street, tweeted "High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting. $AAPL" to more than 55,000 followers on Tuesday, sparking a turnaround in Apple's stock price which closed 1.4% higher.
Kass' source, however, remains unknown, and his tweet has come under scrutiny since he proceeded to sell shares in his hedge fund and then claim that the rumor is "baseless". According to AppleInsider, Jim Cramer, an associate of Kass at The Street, shared in a 2007 interview how hedge fund managers use false information to manipulate stock outcomes.
From the interview, "You can’t create yourself an impression that a stock is down. But you do it anyway because the SEC doesn’t understand it." "This is actually blatantly illegal, but when you have six days and your company may be in doubt because you are down, I think it is really important to foment."
A 2:1 stock split would double the number of shares in circulation while cutting the price in half. Although this does nothing to change the overall value of the stock, it can make it more affordable to smaller investors as well as dispel the idea that the stock price is too high. Some analysts have noted that such a split may make the stock more accessible to smaller investors, thus driving the price up as more individuals buy the stock; however, such a move by Apple would be more symbolic than strategic.
Brent Anderson is a mobile app developer and founder of Juicy Development LLC. He studies Information Systems at Brigham Young University and loves connecting businesses with technology in new and valuable ways. Online at www.BrentJAnderson.com
