The iPad Creates a Cooking Revolution

The Orange Chef Company is a private business, with a Williams-Sonoma Inc. partnership, that is focusing on digitally connecting your kitchen.

May 29, 2014 at 10:00PM

After Apple's (NASDAQ:AAPL) last earnings, the headlines started pouring in: The days of iPad growth were over. In the first calendar quarter of the year, iPad sales slid 13%, while the number of iPad units sold saw an even steeper 16% decline. Both numbers were below expectations, while iPhone sales surpassed Wall Street estimates. 

The message Wall Street noted: While the iPad has had a nice run, its heady growth days are over, and Apple remains a company whose results are driven by the iPhone. 

That's probably an accurate assessment. After all, iPhone revenue was $26 billion last quarter versus just $7.6 billion for the iPad. Yet, on a recent tour to Silicon Valley, Fool analysts Eric Bleeker and Max Macaluso stopped by a company whose product is built to become a central part of the kitchen, a place where the iPad reigns supreme. 

The Orange Chef is a small company based out of San Francisco. It started with the Chef Sleeve -- basically, a plastic bag to cover your iPad in the kitchen -- and has moved onto the Prep Pad, an iPad-connected scale that gives feedback on the nutritional content of your food. Now it wants to be known as the connected-kitchen company.

Apple has said that 50% of iPads are used in the kitchen. It's an ideal setting for the product; increased screen size is helpful while reading recipes or watching cooking videos. In addition, thousands of cooking apps make the iPad a powerful tool for helping prepare meals. 

The Orange Chef is particularly intriguing because it shows the hardware innovation that can quickly occur -- their product took just six months between design and shipping to initial customers -- between tablets and new home products. The usefulness of these products, in turn, makes tablets more valuable. It's your classical virtuous cycle, and an example of how products like tablets are still in an early enough stage that a quarter or two of disappointing sales might not reflect their sales potential years down the road. The way we use tablets, both at home and work, is still something consumers are adapting to. 

Right now, Orange Chef is a private company that has raised about $3 million in venture funds; but the speed at which it has managed to develop and put to market these products, as well as its partnership with Williams-Sonoma (NYSE:WSM), makes it a fascinating company to watch as it continues to develop new products. 

Fresh from their trip to San Francisco and Silicon Valley, Motley Fool tech bureau chief Max Macaluso and senior tech analyst Eric Bleeker discuss the potential of Orange Chef in the video below. 

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Eric Bleeker, CFA has no position in any stocks mentioned. Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool recommends Williams-Sonoma. The Motley Fool owns and has recommended Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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