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Sustainable Ambitions, Sustainable Growth – The Six Five Webcast
by Daniel Newman | April 26, 2021

On this episode of The Six Five Webcast host Patrick Moorhead and Daniel Newman discuss the tech new stories that made headlines this week. The six handpicked topics for this week are:

  1. Amazon’s Sustainability Announcements
  2. IBM’s Q1 Earnings Report
  3. HP’s Earth Day Climate Action Goals
  4. Honeywell’s Q1 Earnings Report
  5. Intel’s Q1 Earnings Report
  6. Apple’s Spring Loaded Event

For a deeper diver into each topic, please click on the links above. Be sure to subscribe to The Six Five Webcast so you never miss an episode.

Watch the episode here:

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Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this podcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.

Transcript:

Daniel Newman: Welcome everybody to The Six Five Podcast. We’re live today on all the platforms, and also of course, we are coming to you on your subscriptions on Spotify, Apple iTunes, and everywhere else. Is it iTunes Apple podcast. I’m Daniel Newman, your host with the most, with Patrick Moorhead of Moor Insights & Strategy, and we’re back for another week. More news, more texts, so much going on, and we’re excited. We’re always excited. It’s Friday morning, and it’s been another big week. The earnings wave begins. We’ve heard a lot from companies. We’ve got some big news on the sustainability in ESG front, but heck, another good week. How are you, Mr. Moorhead?

Patrick Moorhead: I’m doing great. We’re doing our best imitation of Seattle today. Super foggy, a little bit of rain. It’s like the clouds are five feet off the ground, but I’m happy it’s Friday, Daniel. It’s just something refreshing about pounding out a great week, making a bunch of clients happy, saying more smart things than dumb things on Twitter and in meetings. So, I’m going to take this week as a win. Now, there’s still a few hours left today, but we’ll see. Feeling pretty good. Thanks for asking though.

Daniel Newman: So, our friend, Mr. Gelsinger at Intel said he has a say-do ratio that he talks about. You have a smart-dumb ratio, is what you’re saying now? We’re going to have to mark that somewhere. Can we keep a list of Pat’s tweets? It’s like a room raider. Is this a thumbs up or thumbs down? We should come up with that.

Patrick Moorhead: Yeah. I kind of like… There’s some Dan-isms that I like. They’re pretty good. If you look at my Pat-isms, most of them come from probably my dad or my grandfather, who grew up in Southeastern Ohio. That coal mining town called Cambridge, Ohio. So, typically can map it back there.

Daniel Newman: Little known about the big tech guy, that he came from a small town, where money was made on the old coal industry. He got coal and steel. Coal and steel. We were right there next to you, Pennsylvania in the Pittsburgh area. Well, listen, everybody, we always appreciate you tuning into our show. Six Five is always focused on delivering you at least six, sometimes more, deep analysis of some of the week’s biggest tech items. And, that’s our big focus here, not news, more analysis, occasionally a little bit of news, but only as much as you need. Quick disclaimer, this show is for information and entertainment purposes only, and while we will be talking about publicly traded companies, earnings, results, performances, executives, and products and services, this show is not to be taken as investment advice. Like I said, excited about this show, some big topics, the earnings wave is underway.

So this week we had Intel. We had IBM. We just had Honeywell Snaps, some others, and we’re going to cover a few of those. Then next week, you can be sure, is going to be a crazy week of coverage from us, as we have AMD. We have Apple. We have Qualcomm. We have Google. We have Microsoft. We have Amazon. Did I say Amazon? If I did, I said it twice, but that’s six massive companies who will all be delivering their results. And again, not just about the results, the earnings and the stocks, but really about the analysis of these companies, and how they’re doing against their strategies as industry guys. That’s what we are looking at. So anyways, great show this week. Let’s get started. We have a couple of interesting ESG announcements to talk about today, but Amazon, as they can’t stop, won’t stop, came out with an announcement this week. I think it’s crossed 100 major global corporations are now participating in its Climate Pledge.

Patrick Moorhead: Yeah, so Amazon is in the news for a lot of reasons. Some of them are good. Some of them are negative. We talked a lot about this on the show. And, Amazon is a company that is so important for so many reasons. I mean, COVID as an example at a time that where we couldn’t leave our homes, they were the company that brought us our food, our PCs, just pretty much everything. And they hired close to 400,000 plus workers as well. They adopted a $15 minimum wage, that even democratic socialists, like Bernie Sanders, were really wanting to get for the rest of the company. So, it’s almost as if on sustainability, Amazon is in a competition with everybody else, and I kind of liked that because, and, Danny, you and I talked about this on a vendor call the other day, sometimes competition or trying to be first with things is not necessarily the best thing, but in some ways it raises all boats and have everybody looking at you.

So, Amazon had a few announcements. And again, you can read this on my Forbes column and, Daniel, I know you’ll probably be writing something up but, a climate pledge, and this is getting ahead of the Paris Accord by 10 years. New signature, signatories? Is that the right word? New people signed up. Alaska Airlines, Colgate-Palmolive, Heineken, Pepsi, Telefónica, Visa, just to name a few. I also talked about eco-conscious shopping options, a 75,000 Climate Pledge Friendly products available in the U.S. and EU. I don’t think that means you can eat the packaging, Daniel, but I have a sneaking suspicion… You’re supposed to laugh by the way. A sneaking suspicion that these products and the packaging are very eco -friendly, and these are products that go all the way from a rum from Flor de Caña to Logitech mice.

So, pretty wide range there. Give me a 15 to 25% discount on those certified products from Honest Company, Seventh Generation, Ethique, products like that. And I think finally talking about renewables, Amazon, not only is the biggest online retail seller, not the biggest retailer. I think they have a whopping 2% of retail market share, but electronically, they do lead in the U.S. They also have a very, very successful cloud business, IaaS, PaaS and SaaS. There are 206 renewable energy projects worldwide. There are wind products, solar rooftops, and all in all Amazon says they’re going to create 8pointGW of global electricity production capacity, making it what they’re calling the most significant corporate buyer of renewable energy sources in Europe.

Pretty awesome, pretty awesome sauce. And again, it’s great to see the thousand pound gorilla, like Amazon, can pull a lot of weight, an initiative like this, and gets us into a competition. Even Google had an announcement. I know we’re talking Amazon here, but Google had an announcement where you could actually select where you put your workloads, based on the type and cleanliness of that energy and also the latency. Because, even if you want to do good, if the cleanest energy is coming out of a [Portugal] and it triples your latency, that’s not a good decision. All in all, good stuff, Amazon.

Daniel Newman: Yeah. So listen, Pat, just a couple of quick thoughts on this particular topic. One, the climate change activism that’s going on in big tech and in big corporate is really table stakes. So I give Amazon a lot of credit and the hundred companies. I mean, even Microsoft and Amazon are working together on this one. When we talk later about the Apple event, you’ll note that there was some significant mentions of their plans around the climate. We’re going to talk about HP and the Climate Pledge. We had a meeting, and we overheard from some of these activities at Hewlett Packard Enterprise, the other HP, about their strategy, and it is table stakes in the sense that, even executives will admit people won’t pay more for it. But nowadays, if you are a big tech company and you want to be considered legit and in touch with society, your ESG efforts are going to include a significant sustainability plan that clearly articulates how you are protecting Mother Earth.

And I mean, look, you’re a little older than me, but we have children of close in the same age. And, it’s not even really just about us. It’s really about our kids and our kids’ kids. And these companies are trying to do something, because we are taking a lot of resources from the world, and big tech and big corporations have the power, capability, resources, and vision, I hope, to actually participate in returning some of those resources and helping create a more sustainable footprint. So, why are we talking sustainability all the time on the show? Look, it’s a big underpinning of the strategy of tech going forward. We need to think about this particular topic. All right. Hey, listen, we got to move on, man, because we just tend to always get caught up in everything, Pat, because we just have so much to say.

Patrick Moorhead: I know.

Daniel Newman: We’re talking about IBM, IBM earnings, and I’ll kick this one off. So this company is about to spin-off its managed infrastructure business. They named it this quarter, Kyndryl. I think we should have a show, by the way, to talk about that name. I’m not sure how I feel about it. [crosstalk] Hide your Kyndryls or give it to your kids when they have a bee sting. I’m not sure, but the name needs to sit with me a little, needs to marinade. It’s kind of like when a vehicle manufacturer comes out with a new body style, and you’re like, “Oh, I like the old one better.” But then at some point, it just becomes the body style, and you realize that they’re just smarter than you. So maybe there’s something going on here. So we need to spend some time. But this quarter, IBM overshot the expectation, $1.77 vs. $1.63 on revenue, beat the top line, narrowly $17.73 billion vs. $17.35, which was expected.

So, good news, 0.9% growth, if you don’t adjust for constant currency, and again, some people do some, people don’t. If you adjust, it was actually a slight decline. The reason I mentioned this is, their company is coming off of almost, I believe, it’s a year straight of declines in revenue, and everybody’s eyes are all over IBM. Can they get back to growth? So, even if it’s slow growth, it is growth, and having the earnings grow is good as well. Some good highlights this quarter, Pat. You had some very significant progress in the cloud revenue growth. They showed about 18% specifically in cloud revenue. That was important, they couple of Cloud and Cognitive services, and when they put that all together, it’s not 18%, but there’s a lot of parts and pieces in that number. By the way, that’s kind of commonplace. You look at Oracle or you look at Microsoft Intelligent Cloud. None of them are just talking about pure cloud. So, you have to really be able to discern those numbers. Another really great number, Pat, was in the systems.

Patrick Moorhead: Hey Daniel, what is pure cloud though? It’s like-

Daniel Newman: Well, you’re not going to ask me that now, we’re going to have a 47 [crosstalk] I’m going to draw a picture of a stack. It’s going to start at… Hey, by the way, [chips and SAS]. That’s the answer to everything by the way. [crosstalk] Pull the string behind my head, “Hey, what’s hot?” Chips and SAS. That little things fall from the sky. Just let me have one or two more things, I’ll leave a little oxygen for you, Pat. The systems group grew on a very slim margin, but the Z. So last quarter, Z had a very soft number, and we all know we’re in the 15th generation. Z15 is what they’re calling it. Zed 15, whatever, however you really want to say it, but at almost 50% growth. And so this is huge because, for all the naysayers that have said the mainframe is dead? It’s still very, very much alive.

And this company, by the way, IBM, its focus is all about enterprise hybrid cloud solutions, meaning they’re not trying to compete in every place where Azure is playing, Google is playing or AWS. They’re really trying to be very steadfast. They’re being very verticalized. So you look at things like IBM and their financial services cloud and what they’re trying to accomplish. They’re looking at regulated industries. They’re looking at building workloads that really think from prem to cloud, very control plane-friendly, the cloud packs and services building prebuilt services that take into consideration regulatory and compliance needs. And then on top of that, security driven, very security driven. The hyper-protect services, confidential computing, all at the core of what the company is trying to do. So, I see it.

There’s a kind of a lagging indicator effect that its transformation to cloud under Arvind Krishna and Jim Whitehurst, the president, is really something that you have to give some time. Kind of like we’ve done with Intel. We’re talking about 2023 and IDM 2.0, and everybody’s feeling really positive about it. Well, you don’t pivot a massive strategy of a company who did business one way to another, and expect all of to happen in six to 12 months. This is going to take some years, but with Red Hat showing double digit growth and with the company spinning off the Benadryl, Kyndryl, whatever, Kyndryl, and getting out of a business that’s been kind of a boat anchor on its numbers, quarter over quarter, big revenue number and it doesn’t grow, is going to give IBM a chance to return to a mid single or even high single digit growth, which is what, I believe, the market is looking for.

Patrick Moorhead: You did leave some oxygen here, and I appreciate this, but hey, we do kind of lead lag topics and this was your topic, and you did a great job on it. Here’s the thing. I think industry analysts play a huge role in this. I think financial analysts are going to pick the scab of a 1% growth, a 1% lag. I mean, we’re in the middle of a pandemic, and quite frankly, if you don’t have a very large SAS play or you’re not in collaboration or devices, you’re probably not going to do very well. And IBM is in none of those. Okay. So seeing any growth, Daniel, to me is a plus. The things that I’m looking at are Red Hat. I’d love to see Red Hat double digit, but then again, when I look at Cloud and Cognitive Software that grew 34%, this is basically the high running software.

This is true cloud software or your definition, and then I see, just coming out of the blue, a 49% growth in Z. Now, systems rolling up 2% and I need to do a little bit more research on this OS revenue. So, operating system revenues were down a huge amount that pulled down that overall systems revenue. And that could potentially be a, “Hey, I’m trading IBM OS for Red Hat OS so, we move the bucket. And actually for Z, that would be a huge, huge, huge strategically positive thing. So, I need to dive into that a little bit. It is concerning to see power to continue to slide. There are some things that power brings that quite frankly, a X86 doesn’t bring to the table with AMD and Intel. So, it’s kind of a head-scratcher for me, the power new architecture coming up. They announced at a recent chip conference, though it gives me a lot of a lot of hope, because the technology is better in some ways, but then again, the best technology doesn’t always win.

Daniel Newman: Absolutely. And the IBM, it’s called the hard platform, their chip platform, the whole thing, a lot people don’t realize, but there was a recent announcement of an Intel partnership. When it comes to you, I think the earliest, some of the earliest seven nanometer prototypes, IBM was involved. You and I obviously have so much chip stuff coming on. Just wait till you see our Six Five Summit lineup, by the way. Sorry, I can’t say anything else, but IBM is bigger in this space than a lot of people realize. But overall, like I said, I think that shift to hybrid matters, that Red Hat deal continuing to show double digit revenue year over year in growth, continuing to win and winning alongside, by the way the AWS is and Microsoft is and being part of these deals, is going to be very, very important for IBM’s long-term growth with this enterprise hybrid cloud strategy.

Pat, we got to move on, man. Promised everybody sustainability was going to be a little bit of a top topic. So this week was 420 and Earth Day. And I only say those things like as distinct events, because apparently with all the legalization that’s happened here in this country, 420 is a bigger holiday than I even remembered it being. Dazed and confused I shall say. But anyways, it’s like Joe Kernen on CNBC. He always finds a way to talk about marijuana and marijuana stocks. I don’t know what his deal is with that, but that always makes me laugh.

Patrick Moorhead: Daniel, it’s stonks now. Get with the program.

Daniel Newman: Stonks. But listen, HP is also getting into this space and another company that’s on a really, really solid trajectory. You wrote a nice piece in Forbes. Talk a little bit about what’s going on there.

Patrick Moorhead: Yeah, no, I appreciate that. So, HP, basically PCs and printers and softwares and software and services. So they do create a lot of potential things that can pollute the environment. They’ve been very aggressive on this, which I think I appreciate, but they came out swinging on this. Essentially, their overarching motivations reiterate a net-zero carbon, fully regenerative economy, reduce the overall environmental footprint, and create the, and here’s the clincher, the most sustainable portfolio products and solution in the industry.

Basically, that’s saying, “We’re going do this better than you, Dell, Lenovo, Apple, Canon and Xerox.” So those are some pretty big fighting words. They came out with some new timeframes, when they’re going to reach net-zero carbon, neutrality, reduction in value chain greenhouse gas emissions, deforestation, reach net-zero deforestation, counteract deforestation for non-HP paper.

See, HP-printed paper, they basically, and I’m simplifying this, right? You buy a binder full of HP paper and they plant a tree. I know that’s not exactly it, but you get the point, even using non-HP printer. And then they talked about, which I think for the people tuning in, is even more interesting. They talked about the five things that they’re going to do. So, first, transitioning portfolio to print and Compute-as-a-Service models. They’re implementing a supplies renewal services, like Instant Ink that we talk a little bit about here, and adopting more circular hardware solutions. We wrote a white paper on that. You can find that on my website, ching. Third, decarbonization of supply chain, encouraging the shift to renewable electricity. And fourth, designing products with both existing and new energy-efficient technologies. I know that sounds a little bit like motherhood and apple pie, but here’s what I’d like to see.

I’d like to see some designs from the ground up that are upgradable, that can be used for a decade. That’s what I’d like to see from HP. And maybe that’s hidden inside of some of the words here on what they’re going to do, but that’s what I’d like to see. I’d like to see an entire lineup, and yes, I know it’s more expensive. Yes, I know it’s probably going to be a little bit thicker, but let’s put our money where our mouth is. We either believe that consumers care about this and are willing to pay something. I got to tell you though, Danny, you had mentioned that call we had with HPE. Very pragmatic that, hey, consumers won’t pay more. Well, if we won’t pay more, can we really say that we really care about that. We only have 20 minutes left here, but we should debate that at some point, if people aren’t willing to pay more, are we really behind this?

Daniel Newman: Let me touch on that quickly. I mean, I think people are going to start paying less for companies that don’t do it. So there’s different derivatives to yield the result, and people will start paying less or supporting less. So keeping margins intact, needing to find ways to build sustainable products with greater margins and greater efficiencies, we’re still in the early innings. It costs more. It’s more complex. It’s more difficult. And we definitely could take some time, talk more about this. I will also say, Pat, some companies are getting really creative. I’m a watch guy and, I’m turning 40 this month, in case anybody wants to rain down presents on me, but I was looking for kind of a cool watch, nothing crazy, not like a Patek Philippe, but you know, I like these Panerai watches and they’re kind of a mid-tier watch, and they’re doing this eSteel simple case watch now, 100% sustainable. Everything.

The steel is fully recycled. The band, the strap, and all I’m saying is this is the way you start to get there. It’s one step at a time, one foot in front of the other. Companies doing little things. So we’re getting there, we’re hearing things, but there’s always more that can be done, like more insights. Anyway, let’s jump on, Pat, because we always do go long, and I want to make sure we get through all of these stuff. A little bit of a quicker shot through the ball here, but Honeywell. So over the last few months, you and I have been talking more about this company, and I feel like each time we bring them on as a topic on the show, we need to sort of remind people. This is a company that has a massive commitment to quantum.

This is a company that has a significant commitment in IOT and converged enterprise performance management software, building management using intelligence, AI, IOT. Well, this quarter, the company came in with some pretty solid results. And when I say solid results, I am basically saying, beating the expectations that were coming in from the streets. So, just touching on it quickly because overall, the company came in above on earnings. The company came in above expectations on revenue, fairly flat, Pat, on a year over year basis. What are we looking at? We’re not looking at masks. We’re not looking at building products, thermostats. But what we are looking at is the fact that this company is layering in software, SAS-based software solutions that overlay buildings, overlay jet engines, overlay their production, their workflow management for hundreds of thousands of industrial companies that use Honeywell.

And so what we got from CEO Darius Adamczyk… What I look forward to you and I talking to at some point in the near future, [crosstalk] maybe at an event, is that they’re seeing double digit percentage growth in their software business that’s focused on IOT and SAS and enterprise performance. And this is, basically as I see it, the two spots where I want to see more strength from Honeywell. First of all, I want to see this capability laid into more products and more clearly articulated to the market by the company how Honeywell Forge EPM are part of the bigger and broader story of the company success. We’ll come back and be talking more and more, but in terms of Honeywell coming on par, and it really is. I think if you and I had one big objective here, is to help people see that this pivot is not a temporary or a momentary thing. This company is coming into technology much like we’ve seen with Siemens and others, this is the focus, not an afterthought and not an extension. We’ll see if they can get there soon.

Patrick Moorhead: Good analysis, Daniel. Yeah, I can’t wait. The way I look at Honeywell right now is they’re one of the only, if not the only, OT plus IT companies. They hired a bunch of incredible people out of IT to augment that. They come up with an industry leading EPM. And in many ways, they’re leading on many factors in quantum. And these things just take time, right? I mean, when you’re looking at quantum, which people are debating, hey, five years or 10 years, it’s going to take some time. We need to be a patient. What’s more near term to me, but still a very long lift, is in the industrial IOT. And the way that we manage it, those are very long lifts, because a lot of these are brownfield and it takes time. But, what you and I get paid to do primarily is, it’s fun to talk stonks, but it’s to point out kind of the gems of the industry. So good stuff, Daniel.

Daniel Newman: Yeah. More time in the near future. Let’s go to Intel, Pat, and you and I could either, or if you want to jump in first on this one, just because I don’t want to hog the show.

Patrick Moorhead: No, I can jump right in. I mean, they had stronger than expected start to 2021. They exceeded their January guidance by over a billion dollars in EPS by 29 cents. One of the things that I think weighed on the stock were the numbers for data center that were markedly down. Now, if people paid attention to the earlier call, they would have recognized that… First of all, the company doesn’t break out DCG and CCG. But if you look at the overall number, Intel had this baked in, and there was also two or three financial analysts who go and do their spreadsheets. They do break it out.

And there’s this $500 million allocation that was discussed that, I believe those financial analysts put it in the wrong bucket. So, what they concluded, the DCG missed their numbers, and it’s weighing heavy on the stock. I’m always looking at ASPs, Daniel. I mean, at the end of the day, what communicates the strength of your product line are ASPs, and both DCG and CCG were down, CCG to me, I think, we’re driven primarily by Intel going after the low end of the market that is exploding with COVID, whether it be Chromebooks or low-end notebooks. DCG to me was a similar mix shift. But I also think, and we’ll see when AMD releases theirs, a potentially weighing competition came in and is finally starting to impact DCG.

Daniel Newman: There’s a lot to cover here too, Pat, and six topics, five minutes, this one could be a 45-minute conversation, but you mentioned a great point with the ASPs. A couple of things that caught my attention. One was the continued strength of client and notebooks in general, 54% up on the notebook business, 38% across the whole PC space. Like you said, a lot of lower end. And a lot of people are kind of holding that against the company. But I look at that as wins are wins. Growth is growth. That’s the most chips in a single quarter for notebooks, I believe, ever for Intel. So that was good. You hit it head on with the DCG number, Pat. You also have to remember last year, there was a windfall results. So everybody’s looking at that year over year number being down. But this quarter, same time last year, they had a blow out number.

It was a little bit of a unicorn type of event last year. So the number isn’t as much bad. So you take that 500 million incorrect bucketed, and then you take the fact that the result a year ago was kind of abnormally good, and you say the actual number was pretty solid. We talked a lot, Pat, across this whole quarter because of Pat Gelsinger, joining IDM 2.0 Xeon third-generation launch. We’re seeing the company’s 10nm products hit the market. We’re hearing about the 7nm plans. We’re hearing about foundry services. We’re hearing about manufacturing coming back on shore. So we’ve talked a lot about it, but this, again, it kind of goes back to what I said about IBM. It’s not an overnight thing. It’s not just like you’re going to have one night and all of a sudden, Pat’s going to come in and say something great.

Not you, Pat, the other Pat. And then everything’s going to just be on track. Not how it goes. A couple of other small notes, Pat, of strength. MobileEye had a really good quarter, 48% growth. And then the last thing was IOT saw a little bit of growth too, at about 6%. So, a couple of other adjacencies, and that’s a real important thing for Intel, is that in the adjacencies that it’s growth, it’s not just data center chips and PC chips, but it’s really all of these other data centric technologies that the company is focusing on. All right. Let’s get to our last topic, Pat, and try to keep this show on time. Apple. I mean, geez. I know sometimes we talk about them, sometimes we don’t. I know we’re not probably the biggest fanboys ever, but they had their big spring event, Pat. Why don’t you go ahead and kick us off with your thoughts?

Patrick Moorhead: Yeah, so they had seven announcements. Update the Apple Card, a purple iPhone 12, Apple Podcast Subscriptions, 4K Apple TV with a new remote, a redesigned iMac with the M1, and a new iPad Pro. And I think what I want to focus on is the new iPad Pro. I don’t give a lot of kudos to Apple, and I do hold them to a much higher bar than anybody else, because they are worth a couple trillion dollars, and they have a near monopoly in smartphones in the U.S., and they’ve done a good job vertically integrating. When I look at the processing power, the IO, the keyboard, the ability to work outside of it. And I want to bracket this for professionals who want to have a one-step workflow, using the camera, using the pen, as opposed to maybe taking a picture and then moving it to a workstation, maybe using a Wacom pen, right?

And then connecting that to your workstation. This does a really good job on a very narrow set of professional… It’s not going to be for all workstation people or all creatives, but I got to give credit where credit’s due. They put the M1 in there, as well. Most workstation applications are going to want more GPU, the eight performance cores isn’t going to be enough for some people either. But I got to give credit where credit’s due. The final thing, iMac goes M1, and this is going to sound really snotty, but the coolest thing I feel like Apple did on iMac was the MagSafe power that it did, that I think is pretty cool, but there’s a lot of places where they missed. The last iMac update was a decade long. They didn’t put a face ID. Then we’ve got fingerprint on the keyboard. It has a huge lip. Why? To make it thinner, I guess. I think consumers much rather have an edge to edge and maybe a little bit thinner. The iMac is thinner than an iPhone, Daniel. And I just don’t know who’s asking for that.

Daniel Newman: Well, we’re going to carry it around.

Patrick Moorhead: I guess. And then finally, two USB ports. So I’m happy about, but… Oh, and they’re on the back where, if you’ve got peripherals that are quick in and out, got to wrap around the back. Anyways, got to give kudos where they are. Oh, final kudo, new Apple TV remote. I will probably buy 10 of them for the 10 Apple TVs that I own. Gets rid of that horrible track pad, that pretty much everybody hates.

Daniel Newman: Yeah, absolutely. I’ll go quick because we got to tie this one off, and then we appreciate everybody tuning in. Had a chance to hop on Yahoo finance. For me, this is all about M1-isms, M1 everywhere, M1 is the future for Apple. No doubt. That’s the path they’re going. It’s going to be these ARM-based course. They talk about a lot of things as being their first and only and better. But I do need to remind everyone, Intel and AMD and others are doing a lot of the same things, a lot of the common and similar innovation, but the devices look good, Pat. And what I noticed from this event is what’s old is new. They’re moving more towards services and more towards all kinds of other things to diversify their business, the colors. I mean, heck that’s cool. I don’t know. My kids will dig an orange iMac. For me, I was the fine with the old silver and black.

I thought that looked pretty good. Still have a couple on my desk. So as much as I crap on Apple at times, I actually do buy their products. I feel like that gives me more of a right to do that. Anyhow, a lot there we’ll come back to it. We’ll watch that. Pat, by the way, that MagSafe charger. That’s cool. But what’s that thing going to be, like 300 bucks along with that keyboard for the iPad? I mean, look guys, make a touch, a laptop. Just do it. Just freaking do it already.

My God, make one. Charge us like four grand, and people will still buy it. Anyhow. All right. We got to move on. Thanks everybody for tuning into this week’s Six Five podcast. We love having you here. We appreciate our community. Hit that subscribe button. Join us on Spotify. Join us on Apple Podcasts and that new paid service because we want a royalty. No, I’m just kidding. Nothing here in it for us. We definitely do appreciate our viewers on YouTube. Anywhere you are, hit subscribe. More coming from us soon on our big Six Five Summit event. It is going to be a blowout, and you will want to be there, mid-June, more details to come. All right. For this show, for Pat Moorhead, for myself, time to say goodbye. See you later.

About the Author

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio