What Is Apple's Mystery Product?

Guessing is half the fun, so here's my $0.02 -- our favorite fruit firm turns the Apple TV into an actual TV. The one indispensable piece of hardware of a home theater system is the screen. An 40-, 50- or 60-inch iMac with tuners, at the right price points, might persuade millions to chuck all their hard-to-integrate, complicated-to-use, not-terribly-smart components for a single, elegant screen that displays everything they need (and nothing they don't). The mere fact we have to use a remote to tell our systems today that, "Hey, I just inserted a DVD and now I want to watch it so please use this aspect ratio and that audio input and this other auxiliary thing" speaks to the pain some smart company can help us overcome. Well, one can dream, anyway.

Hmmmm . . .

I won't really guess, but I'll make a wish:

Perhaps Apple is making a really smart pedometer or accelerometer, something that coordinates with their other products.

Our culture could use a little incentive to move more.

As they say, "What gets measured, gets done."

An innovative pedometer? Wishful thinking, I'm sure.

I don't think Apple would ever go into the commodity TV business... Not unless they can bring something really unique to the table...

I like the P.A. Semi idea, but can believe that they can get any sort of designs out the door that quickly.. I mean they've just been aquired in April and presumably there'd be at least 2 months of faffing around changing roles and products... Leaving only like 6 months to design, test, etc a chip and send it for outsourced fabbing...

I'm going to guess.....

Flat Screen TV's with built-in APPLETV capability.

"Nobody wants to guess wrong about Apple?" How old are you?

Good Article, though I think you're off the mark a bit. You need to think bigger. I think Apple is more likely to be working on a new PLATFORM of devices. Think the iPhone expanded. Touch based Macs running an entirely reengineered OS combining the simplicity of the iPhone interface with more complex apps and more screen real estate.

Just wrote an article on it on my site if you'd like to check it out.

Obviously, very difficult to predict. But here's my wild stab in the dark: I'd guess they're creating an Apple network for the iPhones. AT&T has given Apple enough reasons to kick them out of bed. Why not just control the entire process?

Easy prediction : Giant iPhone internet tablet device, like notebook size.

Far Out prediction: Maybe a new minitower ala the Cube, but paired with new monitor technology. With camera pixels in between the regular pixels of the screen, so you can make eye contact in Chat and multitouch too.

Sat in on a talk by an Apple guy 1.5 years ago and he stumbled heavily when two questions came up - one about an educational product, and one about real competition to MS Office. I'm guessing a competitive prodcut for MS Office b/c that would be an incredibly high margin product.

Has everyone forgotten that we've been on OSX for 7 years - maybe the major "product transition" is to XI? Or is that completely unrealistic?

Actually, to flesh that (OS XI)out with some proper reasoning...
1) 7 years, it's really time for a new major version.
2) They said product transistion, not new product, so I'm crossing off anything *completely* new.
3) Announce it in September and it'll be the first we've heard - if it's actually released a year later then sales of Macs for the next year are likely to be lower than normal.
4) Whatever drop in margins they announce, it seems likely to be a worst case scenario. Mainly because it increases hype around the product and make Apple look better when the profit margins come in somewhere approaching normal.

Now I'm actually hoping it is OS XI...

I bet you anything it's a complete refresh of the MacBook Pro product line.

apple has invented breakthrough energy conservation tech that will transition into new laptops to increase battery life 10x

it i obvious to me that apple will embrace touch screen technology and come up with a mouse-less touch desktop mac that will work in new multi touch pressure sensitive ways. didn't they also buy a small company that developed that technology we have seen the news people using on elections

I hope it's a laptop screen sized iphone with all the same functionality of iPhone 2.0 with bluetooth keyboard + mouse options that automatically detect it's presence and work with the screen.

"I hope it's a laptop screen sized iphone with all the same functionality of iPhone 2.0 with bluetooth keyboard + mouse options that automatically detect it's presence and work with the screen."

That's it. It will actually be a largish iPod touch, with a slot for a 3g or WIMAX modem.

How do I know this, let me tell you:

I had to bail a friend out of jail once. He was in Apple's IP management department (An engineer / Lawyer). When the late night ordeal was over, we went to the ATM so he could give me my 800 bucks back, and said he owed me.

When I left the Valley, we lost touch. So it's been a year. He called me a week ago out of nowhere, and said:

"I know that you are an aspiring technoblogger, so I want to give you a scoop."

"what is it?"

"Apple is satisfied with the iPod touch's basic platform, and will be making a 'half-tablet' sized connected device."

"Half Tablet, WTF is that?", I said.

He replied, "it's sorta kinda like the Nokia sized devices, like half a sheet of 8x11 paper. Thin, like a Touch, and may come with stylus. Wifi, optional 3g, memcard slot."

You heard it here first.

Im betting Apple introduces one of the 2 products:

1) A video game system to compete with Wii, PS and XBOX. If you think about it, the video game industry is one of the most profitable for software developers if you can penetrate the marketplace with your product. And Apple is best at penetrating into new markets. In addtion, the user will be able to download videogames via iTunes, as opposed to going to Gamestop, etc. That will cut out the middleman game retailer and eventually boost their profits. I am sure Apple will introduce new technologies into the game console that will differentiate it with its competitors. It will ultimately take on the Wii. Now take it a step further and bundle each downloaded game with a slimmed down version of the game for iPhones and you got a DS/PSP competitor too!

2) A docking conversion sled with 8.9" touch screen and folding keyboard for the iPone would be my second guess. It would use the iPhone as the CPU and you could use it like a mini ultraportable laptop. it would compete with the ASUS eePC (Dell also has an eePC rival product debuting this fall as well). If Apple introduces the docking conversion sled for iPhone, it would sure to be a hit and generate huge intrest in this emerging marketplace for ultra portable computers.

That is just my 2 cents (and 2 ideas for Apples launch).

==Eric Fellen (The NJ Tech Guy)

I can top that.

I was at a local adult video store and Steve Jobs was at the viewing booth next to me, and in exchange for me not telling people that I saw him at that type of establishment, he told me what the next great product was... oops, I just told you he was there.

My point is... stop making up stuff.

transitioning from white colored electronics to green...more environment friendly

I am going to guess new MBP's as a given. maybe a lower price point for the new MacBooks.

As an outlier, I would suspect a revamping of some of the iPod lines, with elimination of the iPod classic.

As for a touch-screen tablet, I'm not so sure about that. I would think that this would be a "...one more thing..." moment at the January show.

AppleTV. I just bought one two weeks ago, so if they announce a new version in the next 2-3 weeks I can turn this one in and trade up. I would definitely be in. I love the device. Just wished it would play Divx files. Other than that, I love it.

rick.

I think Apple will swoop in a take AMD for a steal. Then use their processor and graphics products/patents and know-how to bring to market a media/internet/tv platform that will be nothing short of phenomenal!

Didn't Apple just contract for all the flash memory in the world? How about MacBook Pros with no hard drives, just solid state memory? Faster, and no one else could match the price because Apple has locked up the supply.

Doesn't a "product transition" imply a change in a product, not a new product? And don't lower earnings as a result imply that they're going to a lower price point with a simplified product in order to make a grab for the low end of the market? I think that takes new high-end products off the table, no?

My guess is they're either coming out with a low-end iPod touch to compete with cheap MP3 players or else they're perhaps reducing the price of songs on iTunes.

I don't expect anything earth-shattering.

Wilenski is right, I believe. The Nokia N80 series is an awesome size. Ripe. I vote for a 5X7 inch device similar to the Nokia. It will do phone and wifi and skype.
jr

Joe, I read your column regularly at eWeek (hardcopy, btw).

Anyhoo, lower profit margins entails lowering prices of existing or newly minted products. Like you mentioned, this much drop in margins in the next quarter has to be something big.

My wild guesses:
1. Big drop in price structures of the Mac line at all levels - even the Mac Pro.
2. Couple that with refreshed lineups (and perhaps somewhere in between) that incorporates faster CPUs, GPUs, and more memory - all of these sap margins initially.

No, AppleTV revamp is too smallish to have an effect this big in one quarter.

Cheers!
Robo

"Apple Mystery Product" = Tablet or Ultra-Portable NetBook(smaller version of MacBook Air)

"Product Transition" = Mac Mini product line is discontinued to further develop AppleTV

My Personal Opinion
-------------------
Apple should simply keep developing a better AppleTV product and stop wasting there time and money supporting the Mac Mini. They clearly are not making enough money on the Mac Mini product line. Ipods, MacBooks, and AppleTV are all geared towards portable media and business minded consumers. They are all revenue generating devices even after the initial purchase. That is why Apple's future revenue will continue to get exponentially better as more people continue to buy their products. They seem to be focusing on never having a one-off sale for there products.

Apple is a dying corporation. Samsung has an iPod equivalent out on the market for crying out loud. Apple has always been an over priced product for kids and artist "wannabes". It's core business has well funded Hollywood companies and teens. Flash has killed their long term prospects for iTunes. I can't even download iTunes on Windows 2000 web surfing box. They lost a customer, now I like Flash better. Apple can't take over the TV market although that would be a new way to expand en mass, but it requires that they dominate the user interfaces. And as I said they are loosing out to Flash. Geeks rejoice not matter what Apple's new products will only service the exclusive market and not much will change.

Gee Buster - bitter much?

Anyone remember the rumored deal w/ Mercedes to make an integrated everything for them? That would be a category killer. How many cars are there out there w/ lame phone, gps, sound integration?

Every wonder?

Fritzlan

Amazon Kindle equivalent?
That could be called a "transition product".
The book market is huge, it would be a great market to get into.
They are in the computer market, they got into the music player market and succeeded, they are now into the phone market...
Book market I believe is next.

iPod Touch update. Start expanding the new apps-enabled line. New lower cost base model, as well as higher end refresh integrating GPS and some kind of wireless audio out, eg BT A2DP or possibly something proprietary for better QOS. Maybe update the wifi to .11n too if power allows. And would it kill 'em to add an SDHC slot?? (and of course thinner, brighter, higher capacity, etc).

At least that's what *I* want... :-)

I may be dreaming but maybe Apple is starting to realize that to get more PC convert they need something. PC users will complain that you cannot play games on a Mac Mini and the Mac Pro is too expansive to make the switch and the iMac , well they will say they already have a keyboard, a mouse and a display from that PC they willing to replace. And only the high-end iMac is suitable for games but the price tag ...

So what the line up need is a Mac mini-tower where you could place a graphic card of your choosing. If they do this , I would replace my old iMac G5 for such a thing even if I would have to buy a new display... Thus cannibalizing some iMac sales but you would open the Mac to a whole new set of people that are not making the switch right now because they can't get an affordable gaming Mac (even if they would play most games thru Boot Camp).

iTouchAir

Easy. SJ doesn't like floppy drives, so Macs were the first to drop them. SJ doesn't like cables, so we now have bluetooth keyboards and mice. SJ also doesn't like hard drives and dvd/cd drives, so the new laptops will come with flash drives and optional dvd/blu-ray/cd drives. Will make the form factor smaller and the battery life longer. Will cost a bit more at first, but put them out in front of the pack. As usual.

MacBook Touch---Is it this? http://www.thebestgadget.com/?p=200 Excuse the fact that it's in French (I speak French, the images say more than the words)

voice recognition software that works correctly and integrate it into all i* products.

Hmmm. MacBook touch looks nice.
Netbook sounds good too.
But its just a transition product.
So
Either a processor change in iPod/phone range or a new OS announcement.

My guess: The iPod touch Max

- Size: 1.5 times the length and width of the touch
- iApps access to hundreds of low cost
- Games
- Personal and productivity Apps
- Enterprise cloud apps
- Universal Remote for total household
- Bluetooth Keyboard, iPhone and Mouse optional
- Video Camera
- Music, movies, TV,
- wifi w/ GSM data connection

Get it all: game machine, desktop and phone functionality.

Initial cost: $700

Weighing 1/2 pound and wearable.

A new iPhone in the form of a watch [like Dick Tracey]. ; )

Who really cares?

OSX for PCs to really compete with MS Vista. Releasing an Enterprise OS X server for 3rd party servers from HP, Dell, IBM etc.
Apple sponsored Windows "classic" WINE style support for selected applications.

I have to agree with Eric Fellen. Apple should be coming out with a gaming platform. With Apple applying for a game controller patent, I can see Apple TV getting an upgrade to play games.

With the iPod Touch and iPhone remote app available in iTune's store, why not add games to the Apple TV. You would be able to use your iPod or an optional controller for Apple TV's gaming platform & possibly on your Mac!

That's my 4.5? (2? with inflation)!

Daniel

It should be the LapDock - a device that looks like a laptop, but is really only the screen, keyboard and battery.

You insert your iPhone into the place where the the touchpad would go and the computer in the phone provides storage, networking and processing.

It will look cool, not cost much and revolutionize how we use and pay for computers and software.

A REAL Apple Time Machine. Expect Microsoft products to wink out of existence about .5 seconds after the keynote. Then Google will disappear. The last 8 years we were governed by the Supreme Leader Jobs and all meat consumption has been banned, all highways ripped up to replace general transportation with Segways, and every state capital has been renamed to "Cupertino" so that our Weather applications all work by default.

I would consider:

1- With an iPhone you can watch TV
2- But you use Apple TV at home, and also an iMac
3- Microsoft is around with that big desktop tablet

What if ...

Apple makes a 40 inch iMac, Apple TV and iPhone, all in one piece ? That interacts with iPhone of course, and you can use your new 40 inch iMac to watch tv, make calls, it's also touch screen for sure.

Just guessing, but how nice would it be.

The new product is is codenamed Sauron and will be the Apple "central core" device that will integrate all personal technologies. It is planned to be an extension of the iPhone form factor (slightly bigger, wider but not thicker). Sauron will use a web interface to monitor and control all other devices (TV, PC, Phone, Security systems, automobiles, even air conditioners and dishwashers if they comply with the Apple standard communication protocol). You carry Sauron with you everywhere while "Gandalf" is the home station, that will provide signals to all home based devices. The iPhone will continue to be called the iPhone, but the home base has not been named yet - they haven't found a good "i-something" name that hasn't been copyrighted yet.

Steve was annoyed at all the different interfaces and remote controls that clutter up his life and decided to fix "once and for all" this mess.

Users can expect a slick interface for monitoring status of all devices (think service, think upgrades, warranty renewals, upgrades, etc), plus intelligent controls for on/off (think energy conservation, personalized settings, etc.) and lastly, less clutter and confusion in the number of device interfaces.

There was some far-fetched discussion about trying to tie-in all memory to Gandalf (unifying all RAM for any home based device (not PCs obviously) in Gandalf, freeing up all the memory chip demand from manufacturers and leaving the majority of compute power under Apple control... dumbing down the peripheral devices, but also, decreasing world-wide demand for RAM and depressing RAM costs). Apple studied the trend of increasing chip usage in common appliances and saw a huge shortfall in chip production in the next 5 years, mostly from devices that are used only 1% of the time in the home... microwaves, dishwashwers, DVD players, telephones, etc.). Centralizing a RAM farm in Gandalf will optimize the efficiency and cost of memory. New appliances will have a communication channel to Gandalf built in, while older devices may need an adapter (code named "Frodo".. I know - the analogies are out of control... but you can't stop the designers from taking this all the way...)

The key design of all of this, is the iPhone takes on more importance as the central interface device for all personal electronics. Coupled with a large screen which your iPhone plugs into, (together with net based computing enabled by Sauron/Gandalf), even PCs, TVs and DVRs are likely to be phased out.

Stay tuned...

Probably another toy.

Read all the postings. "Transition" is sticking in my head. The OS XI sounds plausible, but major transition that could set them back? My guess...and yes it is a WAG...

Apple will transition to Linux and drop BSD.

Very interesting indeed. I went directly to the transcript to look for this nugget that I must have missed! I think it would be very useful if you added a direct link to the full transcript of the earnings call in case others want to read it as well.

http://seekingalpha.com/article/86056-apple-f3q08-qtr-end-6-28-08-earnings-call-transcript

For something to have a margin impact across an entire portfolio of products, it would have to overlap the fundamental nature of how EVERY product works. That would make the "old" version less valuable and lower margains. But, why would Apple carry so much inventory that a "new" product would negativel effect margains? A small amount of product overlap, but enough to lower margains? This doesn't make sense to me.

A new laptop or TV just should not drop margins on all the other products Apple sells. The fundamental nature of an ipod isn't changed enough to hurt it application(s) even if the new one does have a TV remote, and the old one doesn't. You have to go buy the TV for it to effect even you. And, the TV product is still a nitch market, and expensive. The TV should more than make up for lost margins on the ipod.

So I can't even understand how a total "fundamental" product shift or even a newly added and different product would hurt margins at all. One is inventory controlled (fundamental product shift)with the newer product offsetting losses on the overlap of old product, and the other (single new product) is limited by adoption of ancilliary products (Apple TV with ipod remote).

As a guess/wish, look for Apple to introduce a new user interface for thier products. The user interface will be totally voice. They will be able to WOW people with devices that respond to spoken commands. No more key boards, mice touch screens, buttons etc.

While there are a number of add on products available today the one that has the highest impact with people is a voice responsive device. I run Microsoft's Voice command on my PDA and it always impresses the hell out of people. Apple has the talent and the engineering to pull this off. This would make thier products so unique that they would steal a lot of the market.

Galen.

The most fundamental shift that would effect ALL products would be pricing. However, to drop margins only a few percentage points, would not be a huge price drop, if across the board. However, if they dropped pricing significantly on their core computer line, say all laptops, then their overall margin would be lowered by a smaller percent. As Apple doesn't release individual margin numbers we can only guess.

I still think a transition means a fundamental change in the design/features of their product line. I especially like the idea of dropping the hard drives. This fits the Apple long term trend best and would lower margins as described. We've already seen the future, the Macbook Air!

The big product transistion that will be a major change and improvement for Apple Products is:

A two button mouse!!!

Well, that or a 3-D monitor so you can movies in 3D without having to wear those dorky birth-control glasses.

How about if they made the Apple TV do everything that third parties are enabling it to do?
Surf Web
Play Divx, MPG, all audio/video types
Bit Torrent
Integrated DVD R/W like Mac Mini
Internet Radio - maybe even HD Radio
DVR/PVR functionality
UPNP Media capability
Access files across your network
RSS Feeds,
Weather
Order Pizza on Demand
USB port enabled
Add Webcam - security and games like WII
Integrated iPhone 2.0 games
NES, PSP game emulators
etc, etc.

The box can do all of this and third parties have proven it. Why hold back its capabilities when it could be an ultimate media server?

1. iPhone with 32GB.
2. Macbook Pro 17" with Blue Ray and MacPro(standard) and optional on the other MacBook Pros (15")
3. Long awaited video upgrade for the Mac Mini including a bump in the processor. Stories of the mini's death not true.
4. Processor bumps across the line of Macs.

New iProduct = iBroke to most people. Someone earlier got it right. Anything that Apple puts on the market, is either too little product for too much money or too much product for an insanely stupid amount of money. Of all the people that I know who own a businesses, only one person has been successful integrating Macs into their work process. He happens to be a photographer...imagine that! So lets hope Apple presents a new notebook with "real-world" usefulness. Honestly, taking price and functionality into consideration, is there anyone (that isn't a millionaire) who can legitimize the Mac Air ?

I am going to go out on a limb here and say they are working on the iBook. Bigger than an iPhone yet smaller than a notebook. Basically a tablet with touch screen working the same as an iPhone but with greater application support etc.

I hope apple would use their new iphone products, multi-touch expertise, voice recognition and OS X teleconferencing capabilities to actually introduce the old Apple Knowledge Navigator concept.

http://www.youtube.com/watch?v=_a0t2Eb7YJk

Wouldn't that be fun!!! :-)

I think they are going to take the lead in this revolution by eliminating the traditional hard drive from their future products.

This is more wishfull thinking than anything, but with Vista being such a bust, now would be the time that Apple rolled out a MacOS that installs on the PC platform. Except that it completely kills the Apple business model, the markett share they grab, makes it worth it.

Two words. . . well now four. . . actually ten, sorry.

Newton Surface

I'd guess a 6" ibook-mini - similar to ASUS EEEPC but cheaper. I'll post some information on my blog.

How about:

a) The iFuel. Apple runs a pipeline from Washington DC to Cupertino where they have a new plant that converts BS to petroleum.

b) Apple attempts to tap into the estimated 10 to 14 billion dollar porn industry with the introduction of the iTouchMyself.

I'm betting the new processors get incorporated into an entirely new "iPad" product line, giving the Asus Eee a run for it's money...
...bigger than the iPhone, smaller than the iBook.

I guess that ALL the macs will change from hard discs to solid state memory, increasing speed and performance as never seen before. AND the prices will be the same.
Another guess will be a simple TV set.
...and the last one..... the iCar. je je

I think that Apple is making the new iBrain inplant...listen to your iTunes music directly in your brain neaurons! Oh, and it's got a 24/7 GPS locator that can't be turned off..so that 50% shareholder, Microsoft, can track you and beam Microsoft product ads directly to your brain.

Perhaps it's a product designed specifically for the hordes of devotees who quietly accept Apple's predetermined product obsolescence and over-inflated pricing - a device that automatically withdraws $400 from your checking account every 6 months. They could call it something like iSurrender. For a $100 upgrade they could throw in a tourniquet, package of razor blades and a couple of leeches.

I'm betting it's a processor transition in their laptops. Remeber, they just had an unexpected price drop in the MacBookAir line. Can anybody say "flushing the supply chain?"

my guess has been a new imac configuration w/blue-ray, iphone's touch screen capabilities and voice recognition beefed up from current capability.
oh, one more thing...wireless power.

Let's see. It's a "product transition" that will squeeze margins for the next 15 months or so.

I'd like to see an iPhone tablet -- a Newton-sized iPhone (laptop light) with a Bluetooth headset for all the phone stuff. But that's a new product, not a transition.

Sounds like they're going to either sell low-end minitowers to compete in the PC market or they are going to contract with PC makers to sell OS X on their machines. Probably starting with HP, and maybe eventually Dell, in a big enterprise-market push, along with OS X server.

This would be a big transition, and would definitely squeeze their margins in the short run.

In the long run (as they continue to gain market share), it will make their margins expand, as selling OS licenses are almost 100% profit.

Step 1: Collect Underpants.

I also predict the iBall. Its display will be spherical and appear clear or tanslucent, and will utilize true 3D imaging technology. The interface will be completely clean - no buttons, no touch sensitivity. You will only have to speak to the iBall to operate it.

Its architecture will be quantum-based, allowing it to borrow now from processor power it won't be using in the future. It will run a new operating system called iSee which will include TruPredictiv [tm] algorithms allowing it to extrapolate things that will happen based on current conditions.

Then maybe we won't have these silly discussions anymore ;-)

Apple is going to start licensing OSX with Pystar being the first client. Of course Apple will own 90% of Pystar from the lawsuit when they start licensing. This will actually turn into a lower cost lower margin Mac product line, not Apple branded, but Apple controlled, kind of a generic model.

Apple is going to start licensing OSX with Pystar being the first client. Of course Apple will own 90% of Pystar from the lawsuit when they start licensing. This will actually turn into a lower cost lower margin Mac product line, not Apple branded, but Apple controlled, kind of a generic model.

A UPS with neon sidelights, dragon fan covers, and star ship sound effects.

My guess: an AppleTV that is transitioning towards becoming a video game and home entertainment unit, maybe with a built in Blue Ray player, and definately using the iphone/ipod as a remote. The only problem with my theory is that they just did an upgrade and it would be a little soon for another one...

Recently, Apple Computer changed its name to Apple. The direction appears to be less computer and more...

Developing a (real) AppleTV allinone would be a moderate drain on the resources of a company their size. No?

I doubt it would just be a new product line, but probably new technology incorporated into an existing product line. Touch screens and compatible applications have been a niche market up to this point. So I'd guess touch screen technology from the iTouch/iPhone incorporated into a new line of workstations/notebooks.

And creating a Microsoft Office "killer" doesn't make sense with OpenOffice.org.

Basically I don't think it's going to be upgrades, TVs, new versions of the OS, pricing, etc. That's way too "below" an Apple unveiling!! When they hype something like this, it's usually new technology, or combining (and improving) existing technologies to create a completely new "WOW".

My money (quite literally) would go on a new ultra-portable small form factor laptop or tablet. Not the macair lite so much as the macair 11 inch with touch screen.

Reasons to support this are:

1. The news of a revamped smoother OS (snow leopard). A lighter OS would be essential to marketing an ultralite Mac.
2. The availability of Atom processes
3. The success of UMPC nich in the last couple of months. Sure Jobs has seen an opportunity there
4. The rumours that have been going round for yers about the touch screen patents that apple have registered.

japes

Apple is working on iPlay a gaming console with goodies from AMD and ATI. Buy Apple stock before it goes up and you wished you did .

Well it HAS to be personal proton beam projection.
They will all it the iBeam.
Get from here to there with just a touch of your iProjector. (iJect, for short)
It will incorporate a 2nd gen iPhone with the gps function to calculate your trip from point a to point b. It will require a $10,000 monthly flat fee to cover your 'beaming' AT&T will continue to provide coverage. hee hee

It really doesn't matter what the product is that Apple is deciding to come up with, by setting up the suspense and with the great proliferation of the Internet and blogging, all they have to do is look at everyone's suggestions, and they have enough base R&D to say..."that sounds like a product that could sell or vice versa."

Mr. Wilcox, should receive a hearty thank you from Apple for this article! Not only does it get everyone wrapped up in the "next big fad" from Apple, but it does make for a wonderful brainstorming session for future product lines.

I believe that Apple will claim , in conjunction with Theoretical physist Dr. Michio Kaku, that they have discovered the final equation to the Unified Field Theory! Which will answer every question in our existence....and to find out the answers to your questions, the single equation is built into their new OS, which you may purchase for $499.99, and it comes with a signed book by Dr. Kaku.
-Theoretical Physics buff

My wild guess: bluetooth hearing aid headset headphones for all of us aging baby boomers...

My guess is an iPod Classic with a solid state drive (or flash drive) 100gigs and/or 300gigs.
With the ability to use WiFi to connect to iTunes.

It's a new product called "iDontKnow". It does nothing, but at the same time, everything. It will revolutionize the way we do things, whatever they are, and reduce the time required to do them. It will be sleek, shiny and have few connections, but it will seemlesely interconnect with everything else.

Hope that clears it all up!

It seems to me there's only one "product transition" that fits the bill: iTunes will move to a subscription model. The math roughly works to produce that magnitude of margin hit.

Apple has been working with P.A. Semi for a long time, years in fact. They must have hit upon a processor which they want to transition a existing product line to, but only if P.A. Semi would allow itself to be acquired by Apple. We all know it is Apple's eternal quest to differentiate it's features in hardware. How easy is it to hack the iPhone if it is basically in hardware?

Probably transitioning OS/X off their proprietary hardware and making it available to OEMs.

That would really shake up the Windows desktop eco-system.

What's a product transition that is going to cost Apple money?

How about giving Snow Leopard away for free?

They're sick and tired of being innovative, so they're buying MicroSoft and transitioning to Windows!

Can I change my guess? I too own a first generation Apple Newton. With the iPod Touch already trying to replace your PDA, I can see Apple re-introducing the Newton with everything Apple learned to produce the iPod Touch.

The Newton was almost a portable PC. Third party apps, printing capabilities, inferred, sound, animation, handwriting recognition, etc. The thing that killed it was the screen and being bulky.

Steve, we know you or one of your buddy's are reading these comments, so make us happy and bring back the Newton!

The new iNewton would have a larger screen than you iPhone or iPod Touch. It would have the same features as with iPhone and & iPod Touch. With Apple now owning P.A. Semi microprocessors technology, they could beef up the processing power to handle larger apps. It would have the items C/NET listed the iPhone was missing. And, yes it would have a build-in phone option with a Bluetooth headset.

If this is Apple's new mystery produce, I know that iWould buy it!

Thanks guys, now I can't sleep!

I'm with Daniel -- Newton was awesome. Any machine that could read my handwriting...wow!

Many, many years ago my sister gave me her Newton when she moved on to a Palm; "It's great, you can keep track of your contacts and calendar -- except you don't know anyone and never do anything." So I played with the interface.

When I eventually moved on to a Palm, too, I was appalled that you had to write each letter individually in a particular way. I was used to just writing notes as if I were just writing notes.

I want Newton back!

A replacement for the transporter seen in Star Wars, as a way to reduce our dependance on carbon based transportation.

I'm pretty sure they revealed what it is in that conference call. They want to remove "the umbrella" under thier pricing that all the PC companies sit under. So the Mac Tax is gone with the new laptops.

That will lower the margins and with the weakening US economy give people a choice to buy apple. It's probably been a long term strategy to lower prices once they had hit a certain economy of scale which they have achieved with the latest sales numbers.

The iPhone is it's own thing, this announcement is fully about the laptop lines.

I'm a long time (20+ years) DOS & Windows PC user, PC hardware tech and all-around go-to guy where it comes to PC-related equipment. Other than my first boxed Packard Bell 386 (which I am somewhat embarrased to say) I purchased from Sears back in 1989, I've built every desktop PC from scratch I've ever owned, and have highly modified the notebook PCs I've owned as well.

To me, the most useful product Apple could market would be an unlocked retail version of OSx that I could install on my home-built x86 PC equipment, whether Intel-based or AMD-based. It would give me (and a whole lot of other long-time Windows users) the opportunity to try out another OS on our choice of equipment, without having to pay the Mac Tax associated with Apple's proprietary equipment. Microsoft's Vista OS problems have opened up this opportunity for Apple to gain some market share, so they'd be wise to capitalize on it.

Andrew,

I agree that it may be a good time for Apple to challenge the competition with a price competitive laptop product, however, in order to do that across the board would require more than the indicated drop in price/margin. If they dropped pricing on a special, stripped down Macbook model to the area of the competition, say $500.00 - $600.00, they would certainly gain marketshare. As an overall effect on their margins, it might play out as they indicated. However, this move is completely out of character for Apple. What is in character is a more gradual price reduction and/or more computer for the dollar. As an Apple user with a veritable museum of their products in current use, I expect the latter. Specifically, offering laptops with flash drives instead of hard drives at a small, if any, premium. Also, making the CD/DVD drive an option. This "transition" is more in keeping with their past pattern of product evolution. Dropping prices significantly is not.

Hmmm...

How about an iPod sized computer that displays your screen on a flat wall (with a wireless keyboard and a mouse). Just guessing...

A pocket book sized computer with a same sized screen and a pull out keyboard with a solid state drive and a 10 hr. battery life, we all can dream can't we??

Someone mentioned that the book market is next (i.e. Apple's version of the Kindle).

Jobs would never endorse that idea. Apple got into music players and cell phones because everyone has one and they want a new one in a few years. High-volume plus low product life cycle = Huge profits. People in the US read, on average, less than one book a year. An Apple Kindle wouldn't make them any money.

I think that what we are going to see is that Apple will produce a "touch" keyboard along the lines of Art Lebedev's Optimus Tactus design ( http://www.artlebedev.com/everything/optimus-tactus/ ) where the application can automatically "load" an entire custom keyboard layout for itself (no doubt you will be able to change and adapt it to your own preferences).

The keyboard will be haptic using some form of tactile feedback technology (their current keyboards already have minimal travel so it won't be hard for users to adapt) and as the keyboard will be based on a display of some kind (OLED for nightime typing?) it won't be hard to switch from "regular keyboard" mode to multi-touch mode for those apps that will benefit from it (such as iPhoto etc.)

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Read this excerpt from the Apple call transcript (www.SeekingAlpha.com):

"Yair Reiner - Oppenheimer & Company:
Got it. Just a final question on the gross margin guidance for the following quarter; I understand the comments about new product innovation. I don’t quite understand why that would impact gross margins rather than OpEx (Operating Expense) and the R&D line; if you can help us think through that, it would be great.

"Peter Oppenheimer:
Sure. We have been introducing state-of-the-art new products that have technologies and features that our competition just can’t match. And when we do that early in introduction, our costs are higher and then we work to bring costs down over time with value engineering and with volume manufacturing.

"Yair Reiner - Oppenheimer & Company:
So just to be clear, this implies that these new products will actually be shipping or being built in this quarter?

"Peter Oppenheimer:
I can’t get into our new product pipeline but I have told you regarding the September quarter, that one of the reasons that we see gross margin being down sequentially is because of a product transition, yes."

So, we have a product transition, meaning an existing product is going to change substantially. It will introduce state-of-the-art technology that will cost more to produce initially, but which competitors cannot match. And it will ship THIS quarter.

My guess: MacBook Pro is getting a glass-covered multi-touch screen, which will fold into a tablet device. It will use the same kind of multi-touch technology as the iPhone and iPod Touch, plus more. You will be able to bring up a full size keyboard or 10-key on-screen, but you may need to hover your hands over it or two-finger type rather than touch type (which you can still do with the regular keyboard). You will be able to reorient it like the iPhone. It will add GPS and optional 3G. And it will be the coolest web surfing machine ever! Hopefully Apple will make the case more durable and scratch proof, as it will get handled a lot more. Pricing will be in line with current models, or maybe a bit more to begin with, but these features will truly differentiate the MacBook Pro from the MacBook.

Some interesting guesses. I'm hoping for lower prices all around.

Maybe roll in a flatscreen TV, Apple TV, a high end speaker system, support for Wii games and accessories (or apple's own platform) and merge them all into a 42 inch imac. Put in a solid state drive and put the OS into a removable chip that you simply replace when an upgrade comes along. With all the improvements, it might be possible to boot it up in 5 seconds or less; and you can do everything and anything without ever looking at another device. The true "media center".

"My bet: Revamped Apple TV that, among other things, integrates remote control capabilities into the [iPod] Touch and iPhone," said Mike McGuire, a Gartner vice president.

What an idiot -they already made and released the Remote, for free, July 11th. He's a VP at Gartner? Doesn't reflect well on their analysts.

I don't know how many of you remember or know that back in 1990's Apple launched a portable device called Message Pad. It was basically a PDA of sorts. It was a pretty advanced device in its own time with features wireless and wired networking and had its own OS called Newton.

Unfortunately, the device was too advanced for it time and did not catch on.

If my guess is right, Apple would be thinking of reviving the Mesage Pad... Is iPhone a Message Pad...No. Why? Because iPhone is barely a phone let alone a smart PDA.

If Apple does go ahead with Message Pad revival, It would be a PDA first and phone second device, it would have multiple connection profiles, Multiple input systemns and this time it will run on OS X (mobile).

- Apple will press harder in to the lower markets where they do not play well today. i.e. back to school laptops for under $900. Maybe a new model.
- The iPhones are doing well because of the ATT subsidy, but the ipod touches are priced pretty darn high. I expect to see them more aggressively priced...close to the PSP range for the mid size model.
- More powerful non integrated graphics, i.e. Nvidia, in laptops
- Real push around a revised Mac Mini...with a large price drop to capture market share.
- Monitor refresh

I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

I hope its a portable Mac. Not like a laptop, but something that could fit in a pocket...
an iMac Pocket?

I agree with several posters here. There will be a "transitional" device unveiled before the start of the Chritmas shopping season (mid-September or October??): It will be a hybrid device, merging the MacBook Air with the iPod Touch.

The "MacBook Touch" will still have the overall appearance of a "book" rather than a tablet. It will be possible to hold the device like a book or place it on a hard horizontal surface like a typical laptop.

This device will be anything but "typical", however. It will merge the best characteristics of both devices: the ultra-thin MacBook Air with its light weight aluminum shell, brilliant screen, in a smaller size (9 inches?) and the multi-touch capabilities of the iPod Touch. The new MacBook "Touch will blow away the Kindle AND give the competing smaller laptops a run for their money!

The MacBook "Touch" will have TWO screens: The regular viewing screen (MacBook Air) as well as a glass-covered horizontal screen which will act as an integrated iPod Touch. NO built-in physical keyboard (only virtual), and NO built-in optical drive. It will have a built-in camera, microphone and speakers. The device will be very light and small enough to hold COMFORTABLY as a book. In this mode, BOTH screens could display text and images, although only one of the screens (the right one if you are right-handed, the left one for the left-handers) would be used to manually (literaly) control the device.

When this device is placed on a flat surface, people would have the option of using the touchscreen's virtual keyboard, or Apple's bluetooth wireless keyboard and mouse.

The MacBook "Touch" will use the same external optical drive as the one used for the MacBook Air. Why spend money on R&D and manufacturing to sell a device to be used with only one model (MacBook Air)? It makes sense to phase out the internal optical drive in favour of a lightweight reasonably priced peripheral drive. And, if the price of solid state drives has gone down enough, an internal 64 GB or larger SSD drive would be standard rather than optional. The OS: MOBILE Mac OS X (Snow Leopard??)

And, as others have suggested, the "MacBook Touch" would be capable of WiFi, bluetooth and possibly another type of connectivity (WiMax? GSM??). Remember the new "Remote" app recently released by Apple? This app will enable the iPhone or iPod Touch to "communicate" directly with the new MacBook "Touch". It's a perfect fit!

And the price: $800-$900. That's where Apple will not make as much profit initially, until the component prices come down over time.

This "transitional" device will NOT cannibalize the entry level MacBook because IT WILL BE the NEW MacBook! In addition, the MacBook Pro or the MacBook Air will also get a makeover (i.e. integrated multi-touch control screen).