consumer drone shipments 1

consumer drone shipments 1

The fast-growing global drone industry has not sat back waiting for government policy to be hammered out before pouring investment and effort into opening up this all-new hardware and computing market. 

A growing ecosystem of drone software and hardware vendors is already catering to a long list of clients in agriculture, land management, energy, and construction. Many of the vendors are smallish private companies and startups — although large defense-focused companies and industrial conglomerates are beginning to invest in drone technology, too. 

In a report from BI Intelligence, we take a deep dive into the various levels of the growing global industry for commercial drones, or unmanned aerial vehicles (UAVs). This 32-page report provides forecasts for the business opportunity in commercial drone technology, looks at advances and persistent barriers, highlights the top business-to-business markets in terms of applications and end users, and provides an exclusive list of dozens of notable companies already active in the space. Finally, it digs into the current state of US regulation of commercial drones, recently upended by the issuing of the Federal Aviation Administration's draft rules for commercial drone flights. Few people know that many companies are already authorized to fly small drones commercially under a US government "exemption" program. 

Here are some of the main takeaways from the report: 

  • The global commercial drone market will take shape around applications in a handful of industries: agriculture, energy, utilities, mining, construction, real estate, news media, and film production. 
  • Most growth in the drone industry is on the commercial/civilian side, as the shift away from the military market gains momentum. The market for commercial/civilian drones will grow at a compound annual growth rate (CAGR) of 19% between 2015 and 2020, compared with 5% growth on the military side. 

Drones Report Cover

  • E-commerce and package delivery will not be an early focus of the drone industry. 
  • Legacy drone manufacturers focused mostly on military clients do not have a natural advantage in the fast-evolving civilian drone market. 
  • Proposed US regulation would effectively end the ban on commercial drone flights and would allow low-altitude flights of small drones within view of a ground-based pilot. The rules are unlikely to be finalized before early 2017. Some believe it will happen earlier. But we believe it most likely that widespread but heavily restricted commercial UAV flights will become routine sometime that year. 
  • Technology barriers are at once a roadblock and a huge business opportunity. 
  • Many of the notable early commercial UAV manufacturers are emerging outside of the US market: These include Switzerland-based senseFly (owned by France-based Parrot), Canadian firm Aeryon, publicly traded Swedish firm CybAero, Shenzhen, China-based DJI, and Korea-based Gryphon. 
  • The commercial-drone industry is still young but has begun to see some consolidation and major investments from large industrial conglomerates, chip companies, and defense contractors.  

Simply put, The Drones Report is the only place you can get the full story on the rapidly-evolving world of drones.

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fascinating world of drones.

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WearablesMarketForecast

Consumers are ditching their fitness trackers for the added functionality of smartwatches. And as smartwatches become increasingly easy to use and affordable, they will capture an even greater share of the wearables market, driving down demand for fitness- and activity-tracking bands, like the Fitbit. The fitness-band category will make up 42% of total wearables shipments in 2020, down from an estimated 48% share this year, and a 53% share in 2014.

To win over nontech buffs, smartwatch makers are also offering models that cater to health and fitness enthusiasts. The Apple Watch Sport model, for example, has basic materials like an aluminum case with a rubberized band, similar to the material on popular fitness trackers like the Jawbone Up or Fitbit Force.

In a recent report, BI Intelligence takes a closer look at how smartwatches will siphon market share from fitness trackers in the wearables market, and how Apple's smartwatch might impact the market for luxury watches. We also forecast shipments for both Apple Watch and the broader luxury watch market over the next five years, and examine the pricing and design strategy behind the Apple Watch, the new retail distribution opportunities with this device, and the wider opportunity among tech-savvy consumers.

Here are some key points from the report:

  • Potential smartwatch buyers are interested in notifications and health and fitness apps. Apple has the advantage among these buyers: three times as many people are interested in a smartwatch from Apple, over one running the Android platform, according to our BI Intelligence global online survey on smartwatch adoption and purchase intent.
  • A significant 27% of respondents interested in the Apple Watch said they already wear a watch and that the added functionality of a connected watch appeals to them.
  • Fitness bands have more limited functionality and will cater to a more niche, health-focused audience.
  • Fitness bands are aiming to widen their reach by offering designer brand versions of their devices.  For example, Nordstrom carries a Tory Burch-design version of a Fitbit fitness tracker for the more fashion-conscious consumer.
  • By 2020, Apple Watch shipments will be equivalent to about two-fifths of the luxury-watch market. Assuming a lower-bound price of $350 for the luxury-watch category, and including Apple Watch in that category, traditional wristwatches would account for ~60% of total shipments in 2020, while Apple Watch would account for ~40%.
  • In full, the report:

    • Looks at the market for fitness trackers, and examines how smartwatches will pose a threat to this device category.
    • Forecasts the markets for wearables overall, smartwatches, and luxury wristwatches through 2020.
    • Estimates Apple's tiered pricing strategy for its three Apple Watch models.
    • Examines the opportunity for Apple Watch to resonate with consumers in the traditional luxury wristwatch market.
    • Discusses the new retail distribution opportunities for Apple Watch through apparel and jewelry retailers, including department stores.
    • Reviews proprietary consumer survey results that give insight into what consumers are looking for when choosing a smartwatch.

    Interested in getting the full report? Here are two ways to access it:

    1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally.» Learn More Now
    2. Purchase & download the full report from our research store.» Purchase & Download Now

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    Apple budgeted $1 million for the staircases of its new San Francisco flagship Apple Store, reports Curbed, using data from BuildZoom. The data shows that Apple expected to spend $23.6 million building and renovating the store, based on the c... Read the rest of this entry »

    Chegg CEO Dan Rosenweig

    Dan Rosensweig, the CEO of Chegg and former COO of Yahoo, isn't too happy with some of the media coverage Yahoo CEO Marissa Mayer has received lately.

    In an interview with Bloomberg's Emily Chang on Thursday, Rosensweig said a lot of the press reports on Mayer had been "unfair."

    "I think a lot of what has been said has been remarkably unfair," Rosensweig said. "Unfortunately, some of these things are fair game whether she likes it or not."

    Rosensweig pointed to recent stories about Yahoo's spending over half a million dollars on Mayer's security as examples of unfair coverage, saying it "doesn't really matter" for public investors. Yahoo disclosed in a public filing for its annual shareholder meeting last week that it spent $544,061 on Mayer's security because of "specific security threats that we believed were credible."

    Rosensweig believes the press should instead focus on the bigger story around Mayer.

    "She should not be under this kind of attack by anybody," he said. "That's the story that should be written. Nobody chooses to write it. Why is a CEO under this kind of attack?"

    Rosensweig played a major role at Yahoo from 2002 to 2006, a period when the company grew its user base to 500 million from 200 million and its annual revenue to roughly $4.5 billion from $700 million. Though he left the company after a management shake-up, Rosensweig continues to be involved in some ways, as he is now advising Quicken Loans founder Dan Gilbert's bid over Yahoo's core internet business.

    "I care a great deal about the company, as do many former Yahoos," Rosensweig said. "And so when there are high-quality people interested in understanding the business, we're all happy to help them understand the business."

    SEE ALSO: Former Yahoo COO says the company should go private so it can make 'big, bold bets'

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    NOW WATCH: How to see everything Google knows about you

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    Gusto CEO Josh Reeves

    Joshua Reeves, CEO of HR software startup Gusto, would rather not talk about the meltdown that occurred earlier this year at his rival, Zenefits.

    He's busy running his own billion-dollar-valued startup with 30,000 customers, he says.

    But everyone keeps asking him about it as the two companies, once partners, are now competing head to head.

    And his comments have led to a public squabble of sorts with Zenefits CEO David Sacks.

    Gusto recently added insurance benefits management software to its payroll offerings for small businesses. Zenefits recently added payroll to its benefits management software.

    And, as we previously reported, you couldn't find two other competitors who have so much in common but such different cultures. Reeves wants Gusto to be warm and fuzzy. Zenefits is known for being hard-driving. That culture led to Zenefits' founder CEO, Parker Conrad, abruptly leaving the company in February over a scandal involving selling insurance without a license.

    Zenefits current CEO David Sacks, who was previously COO, insists that in the four months he's been CEO, he's turned the culture around. He's a famous member of the PayPal mafia who founded and sold several other startups and is an angel investor extraordinaire.

    Sacks went on a tweet rant last Friday saying it's unfair for everyone to keep lumping Zenefits in with another troubled startup that ran afoul with regulators, Theranos. 

    Sacks argued that Zenefits shouldn't be compared to Theranos because Zenefits openly admitted its regulatory and culture problems and he says its salespeople are all properly licensed now.

    So, when Gusto's Reeves did an interview with Bloomberg's Emily Chang on Tuesday, she asked Reeves what he thought about Zenefits' makeover and that Twitter rant.

    Reeves shrugged and said, "I don't think a culture can be changed by tweets."

    The interview apparently didn't escape Sacks' notice. He later tweeted:

    I'm hearing disturbing rumors that some of Zenefits' denouncers are trying to copy our product as fast as possible.

    — David Sacks (@DavidSacks) May 25, 2016

    (Sacks tweet was a reference to Marc Andreessen, who loves to rant on Twitter and loves the phrase "disturbing rumors."

    Reeves is not letting the copycat implication stand. 

    "It's worth pointing out that health benefits has always been on our roadmap even before Zenefits. It's a common misconception that we are trying to copy them, this is categorically untrue," he told us.

    For proof, Reeves sent a slide from his original VC pitch deck fom 2012, before Zenefits was founded in 2013, which shows he planned to benefits software from the get-go. Gusto changed its name from ZenPayroll last year.

    The pitch deck worked. Salesforce Ventures became a seed investor. Since then, Gusto has raised $136 million at a $1 billion valuation in an usual system that has landed him 75 big-name angel investors, as well as backing from Google Capital and other big VCs.

    Here's the slide from 2012:

    ZenPayroll Seed Investor Deck Q2 2012

    SEE ALSO: LIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of control

    SEE ALSO: The CEO of billion-dollar startup Gusto has 75 angel investors and warns other startups: 'There are no shortcuts'

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    NOW WATCH: How to see everything Google knows about you

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    mobile desktop time v dollars

    As millennials and younger consumers become larger parts of the key spending demographic, mobile devices like smartphones and tablets are quickly becoming consumers' primary computing device. But for retailers, that poses a key challenge: Users are spending considerable time shopping on mobile, but making relatively few purchases. 

    As a result, social networks, payment processors and card networks, and retailers themselves, are all developing solutions that make it easier for users who shop on mobile to begin to buy on mobile, and then channeling funds into products that incentivize users to do so.

    By presenting options like on-site buy buttons, single-click checkout, financing services, and unified offline-to-online commerce experiences, various brands are beginning to convert desktop shoppers to mobile. But mobile wallets are beginning to take hold, and if they can successfully combine multiple features that ease barriers to mobile purchasing into one payment platform, they could hold the ticket to retailer success in increasing mobile purchases. 

    In a new report from BI Intelligence, we predict how e-commerce will change and m-commerce will grow, explain why users are shopping, but not buying, on mobile devices, look at how stakeholders are looking to attract these users, and showing how products like mobile wallets could be game-changing in terms of mobile retail. 

    Here are some key takeaways from the report: 

    • E-commerce and m-commerce are on the rise. In 2014, mobile comprised 11.6% of the US' $303 billion in e-commerce sales. BI Intelligence forecasts that by 2020, mobile will account for 45% of the $632 billion in total e-commerce sales. 
    • Users are spending the majority of their commerce-related browsing time in browsers rather than apps. In order to increase m-commerce conversion rates, retailers should be focused on browser-based solutions, which attract a wider audience than the loyal shoppers who download apps. 
    • If they move into the browser, mobile wallets like Apple Pay and Android Pay could drive an increase in m-commerce. That's because they provide a more streamlined experience to users than any of the other proposed solutions. However, it'll be hard for them to catch on fully if they remain focused solely on apps and in-store payments. 

    In full, the report:

    • Forecasts the rising percentage of mobile commerce amidst an expanding e-commerce landscape.
    • Provides data showing why users are spending most of their time on mobile devices, but most of their dollars on PC.
    • Explains the barriers to mobile buying from a consumer-facing perspective.
    • Explores how stakeholders are trying to solve these problems and increase mobile purchasing.
    • Describes the role that mobile wallets like Apple Pay and Android Pay could play in increasing mobile purchasing in both the browser and the app.

    Interested in getting the full report? Here are two ways to access it:

    1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally.» Learn More Now
    2. Purchase & download the full report from our research store.» Purchase & Download Now

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    Boston Dynamics

    Google is selling Boston Dynamics, the robotics startup it bought in 2013, to Toyota, reports Tech Insider.

    A source says that the "ink is nearly dry" on the deal, but didn't disclose the price.

    The robotics division has been a source of tension within the company since Andy Rubin, the exec who led it, left in 2014.

    Rubin, who also founded Android and led Google's smartphone business for many years, drove the purchase of Boston Dynamics and brought in a bunch of other robotics companies as well for a new division known internally as Replicant.

    But after Rubin left, the division never found a permanent leader to replace him and struggled to fulfill his ambitious vision of creating the first wave of consumer robotics products.

    Bloomberg previously reported that Google was working on the sale and had floated Toyota and Amazon as possible buyers. Other members of the robotics division were folded into Alphabet's experimental hardware lab, X.

    Boston Dynamics was known for releasing some crazy videos of humanoid and animal-like robots.

    Read the full report from Tech Insider here >>

    SEE ALSO: Meet the execs running Google's most important products

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    NOW WATCH: The largest cruise ship ever built has a bar where robots serve drinks

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    man talking cell phone

    It's scary to hear that cellphones — devices that most of us have with us all the time — have been linked to cancer by a government study.

    But despite any headlines you may have seen, there's still not enough information or evidence for the average person to be concerned by these findings.

    "I'm not going to stop using my mobile phone in the light of this," Kevin McConway, emeritus professor of applied statistics at The Open University, said in a statement to the Australian and UK Science Media Centre.

    Here's why you shouldn't panic

    The latest results that we have access to are very preliminary findings from a peer-reviewed study conducted by the US National Toxicology Program (NTP). That experiment looked at the effects of cell phone radiation on a number of rats, and we won't see the full findings until at least later on this year.

    So far, the released NTP data show a very weak link between excessive cell phone radiation exposure and the risk of developing some cancers. Specifically, male rats that were exposed to full-body doses of radiation for nine hours a day — from before the time they were born until they were just over two years old — were slightly more likely to develop brain and heart cancers than rats not exposed to that radiation.

    It's an interesting finding, and one that could explain a mechanism by which radiation like that from cell phones could potentially cause cancer. That potential causal mechanism was enough to convince some involved with the study to release that information to the website Microwave News, which wrote about the results before NTP released the data.

    lab rats

    If these results were to directly apply to humans, that would be scary. And if cell phone use increased human cancer rates even two or three percent (approximately the increased risk seen in rats), that would be a vast increase in the number of cancer cases across the globe.

    But that's not what the data released so far shows, and extensive studies of human cell phone use certainly don't show cancer rates increasing in that way.

    So far it's a stretch to apply this study to humans

    First and foremost, rats are not humans, and many of the ways we test things on animals mean we find results there that don't end up translating to humans.

    But the differences between the rats that did develop tumors in the experiment and the rats that did not leave us with a lot of questions.

    Groups of rats were exposed to radiation at three different levels. These radiation levels were much higher than the levels most people are exposed to. Also, the rats were exposed to this radiation from before they were born to the end of the study for a full nine hours a day — not exactly replicating real-world human cellphone usage.

    "I understand from information in the report that the lowest radiation levels used were somewhere around the safety limits imposed on mobile phone manufacturers, for the radiation when one is actually using the phone," said McConway. "It's certainly not yet obvious how these high-dose results in rats might tell us anything about normal levels of human mobile phone use."

    Male rats exposed to radiation were more likely to develop tumors, but exposed rats were also more likely to survive the two-year test period than rats who were not exposed.

    This "is counter intuitive given that the increased tumour rates normally lead to reduced lifespan," Rodney Croft, Director of the Australian Centre for Electromagnetic Bioeffects Research, told the Science Media Centre.

    cancer cell

    Strangely, while an increased cancer risk was found in male rats, there was no increased cancer risk for female rats. And strangely, none of the rats in the control groups developed these brain tumors, which is not normal — some cancers would be expected in the control groups, too.

    "The NTP study will thus need to be fully evaluated once further details become available, and considered within the context of RF emissions science as a whole," said Croft. "At present though, and particularly given a range of uncertainties regarding its results, the NTP report does not provide reason to move from the current scientific consensus that mobile phone-like exposure does not impact health."

    The study gives us interesting information and definitely contributes to the discussion of the potential health impacts of cellphones. But for now, these results aren't quite as "explosive" as they've been described.

    Scientists have previously said there's a possible chance that cell phone use could cause cancer (like almost everything ever studied, pickled vegetables and coffee included), but that so far, most studies haven't shown increased cancer incidence in humans that we can directly say comes from cell phone use.

    So far, these results seem to confirm that conclusion — there's a mechanism by which cell phone use might cause cancer, but we don't actually know that's it's doing so in humans.

    Still, some scientists think the risk is real. Swedish oncologist Lennart Hardell tells Tech Insider that these results confirm previous research that he says shows an increased risk of brain cancer from cordless and mobile phone use. That's not the consensus and so far, other researchers like Dr. Timothy Moynihan at the Mayo Clinic have concluded that "there's no convincing evidence that cellphone use increases the risk of cancer." But any new data that sheds light on the issue is interesting.

    "There has been much previous research on this topic, some of which has found no evidence of any risk, and some of which has found limited evidence of a small risk with heavy phone use. I don't think that these NTP results have moved us on from that yet," said McConway.

    Meghan Bartels contributed to this report.

    SEE ALSO: A drug that uses the immune system to fight a common type of cancer just got approved

    DON'T MISS: The 27 most physically active jobs in America

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    NOW WATCH: Here's how much radiation you're exposed to in everyday life

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    bii streaming media device forecast 2016

    The way consumers access media content is drastically evolving. Viewers once limited to watching programming by a cable or satellite provider at a specific time and via a certain channel package are increasingly moving to over-the-top content (OTT) — or content that's streamed over the internet — for its greater selection and convenience.

    Since streaming media devices debuted in the mid-2000s riding in the wake of new OTT services like Netflix, they've grown in popularity. In fact, over half of homes in the US have at least one television set that's connected to the internet.

    In a new report from BI Intelligence, we size up the overall streaming media device market by device category and take a more granular dive into each. The report includes new shipments forecasts, identifies major players, and assesses the advantages and weaknesses of each device category. We also examine how usage and ownership may vary among device categories and the implications of this upswing on various ancillary markets, like advertising and app development.

    Here are some key takeaways from the report:

    • Streaming media device adoption is rising fast as over-the-top (OTT) streaming video services — such as Netflix and HBO NOW — make it easier than ever to ditch traditional pay-TV. We expect global shipments of streaming media devices to grow at a 10% compound annual growth rate (CAGR), from 240 million in 2016 to 382 million in 2021.
    • Over the next few years, we expect the market for streaming media devices to grow and consolidate. In the long term, newer technologies like virtual reality will become a leading connected device segment. However, in the next five years, smart TVs, gaming consoles, and media streamers will remain the top categories by a wide margin.
    • Smart TVs currently dominate shipments, accounting for three-quarters of device shipments in 2015. As people upgrade their TVs, the global installed base of smart TVs will grow from 584 million in 2016 to 896 million in 2021.
    • As streaming media device uptake rises, stakeholders throughout the larger media ecosystem will need to adapt to consumers' changing habits. Legacy TV providers will likely need to offer skinny bundles or their own OTT subscriptions to stay relevant, while advertisers will want to capitalize on the opportunities available in targeting streaming viewers using demographic and behavioral data. App developers, platform creators, and game makers will also have a stake in where and how streaming activity develops. 

    In full, the report:

    • Identifies the major device categories in the streaming media market.
    • Sizes up the current reach and shipments forecast for each device category.
    • Compares and contrasts the benefits and downsides of each device category within the greater streaming media ecosystem.
    • Examines the major players in each device category.
    • Assesses the gap between streaming media device installed base and usage.
    • Explores how this growing market is impacting other industries in its peripherals.

    Interested in getting the full report? Here are two ways to access it:

    1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
    2. Purchase & download the full report from our research store. >> Purchase & Download Now

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    editing laptops beachApple critics often scoff that when people buy a MacBook or an iPhone, they aren't really buying a gadget as much as they are buying into the "Apple lifestyle."

    But that might not be such a bad thing for the company moving forward, according to analysts at Bernstein.

    Here's Apple’s problem, as it stands: It makes the bulk of its money by selling hardware on a renewal cycle, and that makes it vulnerable if people start replacing their iPhones less often.

    "iPhone amounts to nearly 70% of total company profits today, and over time, the smartphone market will invariably saturate," the analysts wrote in a note on Friday. "Apple will no longer be able to gain share, and the iPhone business will become a replacement market." That problem worsens if those replacement cycles get longer.

    The analysts' solution to this is simple: Make "Apple," in a broad sense, a subscription.

    Apple is already pushing toward this with its "iPhone upgrade program," in which users pay a certain amount per month to get a new phone every year. But the analysts are thinking bigger. They seeing you paying a monthly fee for access to the Apple lifestyle, which means an iPhone and an iPad and access to Apple Music and iCloud, and so on.

    The analysts think this a good idea for a few reasons. First, consumers have become increasingly accustomed to paying monthly bills for things like Netflix, Spotify, internet, and cable (and more). And second, "smartphones (even on the high end) are relatively inexpensive on a cost per use basis when compared to other services for which customers willingly pay." That means that when you break owning a smartphone down into smaller units, it appears more affordable, because you get a sense of your true use.

    Here's how the analysts explain that second point:

    For example, a Starbucks customer may pay $3.65 every morning for a grande latte (a figure which few would find shocking), yet this is more than 3x as expensive a habit as iPhone hardware use. Given the $700 price tag on an iPhone 6S and a replacement cycle of 2+ years, iPhone users pay less than $1per day for the device – seemingly a relative bargain. Even if we account for the additional daily cost of wireless service (perhaps $30-60/month or $1-$2/day), the total cost of owning and using an iPhone (~$3/day) is less expensive than buying name-brand coffee every morning.

    Given this, the analysts think Apple could put together a package that consumers would find appealing from a price point.

    Here's what the analysts think an "Apple family plan" might look like (the OTTP plan is a potential "skinny bundle" TV replacement, streaming service priced at $40):

    Screen Shot 2016 05 27 at 10.17.58 AM

    SEE ALSO: 22 Android-only apps that will make your iPhone friends jealous

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    NOW WATCH: Sorry Apple fans — the iPhone 7 is going to be boring

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