What's going on?

Expectations for Apple�s event on Wednesday were pretty low from tech aficionados and investors alike � and Apple pretty much delivered on those muted expectations. But there are some interesting factors �under the hood� to consider�

What does this mean?

Perhaps the most interesting thing about the new iPhone is that it�s ditching the traditional headphone jack in favor of wireless headphones (called AirPods). That might be annoying when your normal headphones become as useful as an iPhone 4 charger, but it also potentially points to the future. For example, it�s a lot easier to do things around the house, talk to Siri and interact with the Internet of Things if you�re not connected to a wire.

Why should I care?

For the stock: iPhone sales aren�t as important as they were – but they�re still pretty darn important.
Over the past year or so, investors have started to pay more attention to Apple�s growing �services� business, e.g. Apple Pay and Apple Music. However, iPhone sales still account for about 60% of Apple�s revenue. So expect investors to continue to focus intently on the number of handsets it sells, at least for a few more years (e.g. will sales in emerging markets drive future growth?).


The bigger picture: Apple is trying to position itself for life way beyond the iPhone.
Humankind will soon coexist with technology to an extent that is far deeper than today. The Internet of Things is perhaps the easiest thing to conceptualize: with your wireless AirPod earpiece, you might turn on your Apple TV or turn off your heating. Perhaps Siri, driven by artificial intelligence, might even do those things for you while also summoning your self-driving Apple car and rescheduling your dentist appointment (by the way, your dentist could be using an augmented-reality-powered iPad to perform that root canal). Quarter by quarter, investors might focus on how many units of the iPhone are sold (and it will have an impact on Apple�s stock price), but handset sales probably won�t determine which companies are going to lead the tech-driven future that�s coming our way.