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Bloomberg Bonus Episode: Apple and Intel Earnings · Bloomberg Intelligence

0:02
Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
0:08
Speaker 2: This is Bloomberg Business Week with Carol Masser and Tim
0:12
Speaker 2: Stenovak on Bloomberg Radio.
0:16
Speaker 3: I want to get to some earnings because we're seeing
0:18
Speaker 3: some stocks move here in the aftermarket. Intel shares they
0:21
Speaker 3: are right now up about two percent. This is as
0:25
Speaker 3: we got in terms of some of the big headlines
0:27
Speaker 3: from Intel C's first quarter. Justin gross margin of thirty
0:30
Speaker 3: six percent, that's below with the Street was forecasting of
0:32
Speaker 3: about thirty nine point three percent. Go back to the
0:34
Speaker 3: fourth quarter, the last quarter revenues that was a beat
0:38
Speaker 3: fourteen point twenty six billion versus an estimate of thirteen
0:41
Speaker 3: point eighty one billion. And again talking about first quarter revenue,
0:45
Speaker 3: some forecasts here a bit of a range eleven point
0:48
Speaker 3: seven billion to twelve point seven billion, and that Tim
0:50
Speaker 3: compares with the street estimate of twelve point eighty five billion.
0:53
Speaker 3: But again right now we're seeing Intel up about two percent.
0:56
Speaker 3: I know they also talked about in terms of some
0:58
Speaker 3: spending right and I think basically saying they will not
1:02
Speaker 3: be spending speculatively. So I feel like some of that
1:05
Speaker 3: plays to maybe some of the commentary we've had about
1:08
Speaker 3: the AI spend maybe a rethink this past week.
1:11
Speaker 2: Reminder too, they're also looking for a new CEO at
1:13
Speaker 2: this point to take up for patkel Singer who left
1:15
Speaker 2: at the end of last year. For more, let's go
1:17
Speaker 2: to Jackie Doavolos. She's in our San Francisco bureau. She's
1:20
Speaker 2: been following this company and these numbers closely. Jackie, how
1:24
Speaker 2: is the turnaround going?
1:26
Speaker 4: Well, that's the question everyone wants to know. The key
1:29
Speaker 4: uncertainty here is who's taking over the company. You had
1:33
Speaker 4: some guidance from the CFO as to how the next
1:36
Speaker 4: quarter is going to look like, but not so much
1:38
Speaker 4: guidance on who's going to be taking the reins. And
1:42
Speaker 4: I think that's the big point of uncertainty. And if
1:44
Speaker 4: you look at shares, it's kind of a tepid response
1:47
Speaker 4: considering how much uncertainty is swirling around the company right now.
1:51
Speaker 4: But to your point, Carol, I think some of that
1:54
Speaker 4: optimism is coming in through the comments around spend. As
1:57
Speaker 4: you know, the former CEO, Pat gal Singer was ousted
2:02
Speaker 4: just last month, and big part of the reason for
2:05
Speaker 4: that was this ordinate amount of spending that the board
2:09
Speaker 4: perceived to be a drag on the company's performance. Now,
2:12
Speaker 4: we might not know who might be taking over, but
2:14
Speaker 4: what we do know is that next quarter they're looking
2:17
Speaker 4: at revenue of about eleven point seven to twelve point
2:21
Speaker 4: seven billion dollars. That's below estimates, but perhaps some of
2:25
Speaker 4: that optimism from the fact that they beat pretty well
2:28
Speaker 4: on their revenue figures for the fourth quarter is coming through.
2:31
Speaker 3: Yeah, it's interesting just looking through to some of the
2:34
Speaker 3: reporting from Ouroni and King of course, who follows the
2:37
Speaker 3: chips sector, and saying that you know, again, what you
2:40
Speaker 3: guys were just talking about investors in analyst waiting for
2:43
Speaker 3: the appointment of a new leader who will determine Intel's future.
2:46
Speaker 3: I mean, it's a big question. The company's outsource manufacturing
2:49
Speaker 3: push will not see meaningful revenue from silicon customers until
2:52
Speaker 3: twenty twenty seven. For now, the bulk of outside sales
2:55
Speaker 3: will come from packing works. So we're getting a little
2:57
Speaker 3: bit more in terms of the business here, Tim. But again,
2:59
Speaker 3: the stock, as Jackie mentioned, just pulling it up again
3:02
Speaker 3: here in the aftermarket, and the stock right now just
3:05
Speaker 3: up about one point two percent here. But it's not
3:07
Speaker 3: selling off, which is interesting.
3:08
Speaker 2: I mean, there's been a lot of selling off of
3:10
Speaker 2: the last few years with Intel to you know, when
3:13
Speaker 2: you zoom out, of course, Jackie, the data center business
3:16
Speaker 2: certainly facing competition from Nvidia and AMD their core business
3:21
Speaker 2: PC processors. How is demand there, how's competition there?
3:26
Speaker 4: Well, we got some comments from the CFO who said
3:29
Speaker 4: that competitive dynamics is a big reason why we're seeing
3:34
Speaker 4: a bit of a weaker forecast. He also cited the
3:36
Speaker 4: macro uncertainties and of course seasonal weakness. But when we
3:40
Speaker 4: go back to those competitive dynamics, who is the competition
3:44
Speaker 4: and tim You're absolutely right, those AI accelerators are the
3:48
Speaker 4: big question for investors. Can they get in here and compete?
3:52
Speaker 4: Obviously with the gold standard coming from Nvidia, it's going
3:55
Speaker 4: to take a lot of work and investment to really
3:57
Speaker 4: chip away there. But in the meantime they're also facing
4:00
Speaker 4: competition from their bread and butter in that processing personal
4:04
Speaker 4: computer processing unit. You have AMD really coming in, and
4:08
Speaker 4: then of course on the outsourcing manufacturing site, Taiwan Semiconductors
4:12
Speaker 4: is also a pretty big player now, so they're kind
4:15
Speaker 4: of facing this competition from all ends. Even you know,
4:19
Speaker 4: as we look at AI being this big opportunity for
4:23
Speaker 4: pretty much every tech player out there. Intel has really
4:26
Speaker 4: been struggling to make a name for themselves in the space.
4:29
Speaker 3: Just to rehash, Intel shares folks in the aftermarket up
4:32
Speaker 3: about one point three percent. Going to the first quarter
4:35
Speaker 3: forecast seeing revenue of eleven point seven billion to twelve
4:38
Speaker 3: point seven billion. The estimate on the street is twelve
4:40
Speaker 3: point eighty five billion, so above that. Also in terms
4:45
Speaker 3: of forecasts, he's an adjusted EPs of just flat. Estimate
4:50
Speaker 3: is for eight cents. He's a justin gross margin of
4:51
Speaker 3: thirty six percent. That's a miss too. Estimate is thirty
4:54
Speaker 3: nine point three percent. Go back to the fourth quarter
4:57
Speaker 3: and their current quarter sales and profit forcat asked falling
5:00
Speaker 3: short of analyst projections. But if we go back to
5:02
Speaker 3: the fourth quarter fourteen point two six billion, that's the
5:06
Speaker 3: revenue that's down seven point four percent year over year.
5:09
Speaker 3: The estimate on the street was thirteen point eight billion.
5:12
Speaker 3: But again the key thing as we're talking about, you know,
5:15
Speaker 3: not yet having any update on a permanent CEO. The
5:19
Speaker 3: interim co CEO David Sisner saying our first quarter one
5:23
Speaker 3: or quarter one outlook, I should say, reflects seasonal weakness
5:25
Speaker 3: magnified by macro uncertainties. Further inventory digestion, and competitive dynamics.
5:32
Speaker 3: Jackie sounds like a super full plate. We know it's
5:34
Speaker 3: been a full plate for Intel, but it still is.
5:37
Speaker 3: It's a reminder at least that it still is.
5:39
Speaker 4: One hundred percent. And as we look to the conference
5:43
Speaker 4: call with analysts, the big question is going to be
5:46
Speaker 4: not just an update for leadership, but also in this interim,
5:51
Speaker 4: what's the game plan here, because now that you're seeing
5:53
Speaker 4: kind of spend really being scrutinized after the deep Seek
5:57
Speaker 4: drama earlier this week, it's sort of effect those who
6:01
Speaker 4: might have been perhaps exempt from that kind of scrutiny
6:04
Speaker 4: before these open you know, AI, other AI developer kind
6:08
Speaker 4: of players out there, and so obviously this is nothing
6:12
Speaker 4: new for Intel, but of course I think that might
6:14
Speaker 4: be you know, some of the guidance that they want
6:17
Speaker 4: this this conservative spend, What does that mean, How does
6:21
Speaker 4: it look like in practice at a time when it
6:23
Speaker 4: is going to take investment to really kind of break
6:26
Speaker 4: into this AI space. Another thing that we'll be looking
6:29
Speaker 4: out for in the conference call, it's just any more
6:32
Speaker 4: guidance around what the company plans to do to perhaps
6:36
Speaker 4: offset some of the weaknesses in its bread and butter
6:39
Speaker 4: business in these personal computers. You know, what, what does
6:42
Speaker 4: it plan to do about this kind of new competition
6:46
Speaker 4: coming from Taiwan Semiconductors. I think That's what I'm going
6:49
Speaker 4: to be looking out for in the upcoming call.
6:51
Speaker 2: I think what still surprises me, Jackie is this is
6:54
Speaker 2: a company that has no full time CEO, and you
6:57
Speaker 2: had Pat Gelslinger out earlier this week. We talked about
6:59
Speaker 2: this with Ian King tweeting that he was buying shares
7:02
Speaker 2: of Nvidia during the down during the decline of Nvidia
7:07
Speaker 2: on Monday, he wrote about that on LinkedIn, and it
7:10
Speaker 2: was surprising to see that I'm not, you know, here
7:12
Speaker 2: to talk about Gelsinger. What I am wondering from you
7:16
Speaker 2: about is what are analysts saying about the type of
7:18
Speaker 2: leader who could come in and turn this company around? Like,
7:21
Speaker 2: who are the names? Do we have names that are
7:23
Speaker 2: being thrown around at this point? Do we have a timeline,
7:26
Speaker 2: what do we know?
7:28
Speaker 4: I don't think there's too much that we do know
7:31
Speaker 4: other than you know, the big point of scrutiny has
7:35
Speaker 4: been spend and if you're going to bring in a
7:38
Speaker 4: leader that can kind of articulate a new vision for
7:42
Speaker 4: the company still kind of, you know, bring it something
7:45
Speaker 4: that's forward looking, that is not going to be predicated
7:50
Speaker 4: on a plan that is going to take, you know,
7:52
Speaker 4: five to ten years to pan out, because I think
7:54
Speaker 4: what investors want to see is what can we do
7:56
Speaker 4: with what we have now? And you know, obviously a
7:59
Speaker 4: pet Elsinger didn't get to live out his full five
8:03
Speaker 4: year plan, but you know, he did put in in
8:05
Speaker 4: place a solid foundation that I think a new CEO
8:09
Speaker 4: can can work with. So some of the notes that
8:11
Speaker 4: we've been seeing from the street include, you know, what
8:14
Speaker 4: can be done with what foundation currently exists?
8:18
Speaker 3: Because it's not nothing.
8:19
Speaker 4: You know, some solid investments have been made, some good
8:22
Speaker 4: inroads have been made, but I think it's just a
8:24
Speaker 4: matter of kind of that conservative spend how far can
8:27
Speaker 4: that take them?
8:28
Speaker 3: Hey, all right, Jackie, thank you so much. Jackie Devallas,
8:30
Speaker 3: Bloomberg News Tech reporter joining us with the latest on Intel.
8:34
Speaker 3: Keeping a watch on it as it moves up just
8:36
Speaker 3: a little bit in the aftermarket. Do you want to
8:38
Speaker 3: mention KLA Corp. Semiconductor manufacturing equipment company up about four
8:42
Speaker 3: and a half percent in the aftermarket following its earnings,
8:46
Speaker 3: looking at what the company has to say, second quarter
8:49
Speaker 3: adjusted gross margins sixty one point seven percent, slightly better
8:52
Speaker 3: than the street expected third quarter adjusted gross margin, so
8:57
Speaker 3: looking towards the current quarter sixty one to sixty three percent.
9:01
Speaker 3: Also talking about third quarter revenue, they're looking for two
9:03
Speaker 3: point eighty five to three point fifteen million billion, excuse me,
9:07
Speaker 3: and that is better than the street expected. So that
9:09
Speaker 3: explains where you're seeing this stock up. Do not go anywhere.
9:11
Speaker 3: Apple to come in just a moment. The earnings continuing
9:22
Speaker 3: to come out. We are awaiting Apple, which is set
9:25
Speaker 3: to report in just about seven minutes at the bottom
9:27
Speaker 3: of the hour four to thirty pm Wall Street time,
9:29
Speaker 3: So as soon as they cross, we will bring them
9:31
Speaker 3: to you. A reminder of the company. We'll report for
9:35
Speaker 3: the quarter despite some head wind stepping from China, the
9:37
Speaker 3: slow rollout of in house AI future features. So there's
9:40
Speaker 3: a lot coming at us when it comes to Apple
9:42
Speaker 3: in particular, a lot coming at us when it comes
9:45
Speaker 3: to the whole tech sector. This week, Angela Zino is
9:47
Speaker 3: senior equeritly alyist over at CFRAA. He joins us from
9:51
Speaker 3: New York City. Angelo, I do want to start with
9:54
Speaker 3: Intel because they just came out certainly a big part
9:59
Speaker 3: of the semi second, but they're also going through, of course,
10:01
Speaker 3: some changes, waiting for a new CEO, new leader, a
10:04
Speaker 3: new way forward. Initial thoughts on Intel.
10:09
Speaker 5: Yeah, now, thanks for having me.
10:11
Speaker 6: So, you know, you kind of look at the results overall,
10:13
Speaker 6: and I would say they were okay. I mean, as
10:16
Speaker 6: far as the results were concerned, I think earnings about
10:19
Speaker 6: thirteen cents, sales were down seven percent, roughly kind of
10:23
Speaker 6: in line where we were expecting. I think as far
10:25
Speaker 6: as the guidance is concerned, it was definitely on the
10:27
Speaker 6: lighter side of things, but you know, nothing abysmal, nothing
10:31
Speaker 6: like we've seen in past quarters where they've kind of
10:34
Speaker 6: missed by a much wider margin. So as far as
10:36
Speaker 6: kind of the results are concerned, I think it was
10:38
Speaker 6: perfectly fine, you know, within kind of you know, segments wise.
10:42
Speaker 6: I think the client computing group, which is kind of
10:45
Speaker 6: more their their PC business was down about nine percent,
10:47
Speaker 6: and when you kind of look at their data center
10:49
Speaker 6: business down about three percent. Again, I mean, it was
10:53
Speaker 6: kind of where we had expected largely. So yeah, I
10:58
Speaker 6: mean I think it's one of those situations where this
11:00
Speaker 6: company is kind of just kind of going through the motions,
11:03
Speaker 6: and we're just kind of waiting to see kind of
11:05
Speaker 6: who that next CEO is going to be and what
11:07
Speaker 6: they have to say on the call as far as
11:09
Speaker 6: kind of cost cutting this concern here in the intermediate term, I.
11:13
Speaker 2: Could have asked you the same question I'm going to
11:14
Speaker 2: ask you Angelo anytime over the last three years, where
11:18
Speaker 2: is Intel in its turnaround?
11:22
Speaker 6: You know, it's it's a it's a tough one because, yeah,
11:26
Speaker 6: there they continue to have to kind of restart in
11:28
Speaker 6: terms of you know, where they're at, I mean you
11:32
Speaker 6: and and it's typically because of the fact that they
11:35
Speaker 6: haven't really kind of given you know, the existing leadership team,
11:38
Speaker 6: you know, enough time to kind of you know, watch
11:41
Speaker 6: their vision to really come to fruition.
11:43
Speaker 5: I think right now where we're looking at is you know,
11:46
Speaker 5: you need you need a new CEO.
11:47
Speaker 6: I think when you kind of look at their core business,
11:50
Speaker 6: it's really kind of under attack. Right on the PC
11:52
Speaker 6: side of things. You hear things like you know, ARM
11:54
Speaker 6: looking to take half the half the market. On that
11:57
Speaker 6: side of things, you got got the kind of greater
11:59
Speaker 6: competitive pressure.
12:00
Speaker 5: Going on there.
12:01
Speaker 6: You kind of look on the data center side of things,
12:03
Speaker 6: they don't have the right offerings there. I mean, CPUs
12:06
Speaker 6: are kind of a thing of the past at this
12:09
Speaker 6: point in time, and you've got you know these you know,
12:11
Speaker 6: these hyperscalers out there kind of rolling out their own
12:15
Speaker 6: CPU offerings. So it is it is a very difficult
12:19
Speaker 6: time for Intel at this point in time. There's really
12:21
Speaker 6: kind of no direction. You need that direction. So the
12:24
Speaker 6: faster you get a CEO.
12:26
Speaker 5: The better.
12:27
Speaker 6: Again, this is kind of almost a race to the bottom,
12:29
Speaker 6: it seems like right now in terms of kind of
12:32
Speaker 6: continue to continuing to course as their revenue trajectory continues
12:36
Speaker 6: to go down. I think really kind of if I'm
12:39
Speaker 6: looking at this company, it's all about how they can
12:42
Speaker 6: execute on the foundry side of things right now. If
12:44
Speaker 6: you're thinking about a turnaround going into the second half
12:47
Speaker 6: of the year, I mean, you've got eighteen A that's
12:49
Speaker 6: that's kind of been long awaited and hyped up panther Laics,
12:52
Speaker 6: it's supposed to ramp here in the second half of
12:54
Speaker 6: the year. We want to see kind of what kind
12:56
Speaker 6: of customers like, you know, start ramping on that side
12:59
Speaker 6: of things. You're not going to have a major hyperscaler
13:02
Speaker 6: out there all of a sudden just give business to Intel,
13:04
Speaker 6: they need to kind of execute on that side of things.
13:07
Speaker 6: So that's where we're at right now. I think they
13:08
Speaker 6: need to start show some sort of promise on the
13:11
Speaker 6: foundry side of things, and hopefully they can kind of
13:13
Speaker 6: gain some momentum from there.
13:16
Speaker 2: I got to tell you, I get these emails on
13:19
Speaker 2: the terminal when stories are read at like a high rate,
13:23
Speaker 2: those read spikes. People want to know about Apple. It
13:28
Speaker 2: says that to Apple that our live blog on Apple
13:31
Speaker 2: Carol is already hitting a red spike before those numbers
13:35
Speaker 2: come out. We're expecting those numbers in just about two minutes. Angelo, China,
13:40
Speaker 2: is that the biggest concern? We saw some downgrades the
13:43
Speaker 2: early part of this year.
13:45
Speaker 6: Yeah, I mean it seems like, you know, when you
13:47
Speaker 6: kind of look here over the last couple of years,
13:50
Speaker 6: January just hasn't been a good month for Apple, and
13:53
Speaker 6: you know, you can kind of say maybe a part
13:55
Speaker 6: of that is seasonality and what have you. I think
13:57
Speaker 6: obviously the other issue is you kind of look over
13:59
Speaker 6: the last two three years, the competitive pressures have.
14:01
Speaker 5: Definitely escalated out in China.
14:03
Speaker 6: I mean, Huawei has become you know, a real threat
14:06
Speaker 6: again at the high end of the market, and you know,
14:10
Speaker 6: we kind of want to know what's going on with China.
14:12
Speaker 6: It's somewhat of a black box at this point in time,
14:15
Speaker 6: and you kind of look at some of the sell
14:17
Speaker 6: through numbers that have been posted, you know, specifically by
14:20
Speaker 6: the Chinese government here late in the year.
14:22
Speaker 5: The numbers don't look good.
14:23
Speaker 6: And I think most people realize that most investors are
14:26
Speaker 6: kind of going into these numbers knowing that China or
14:28
Speaker 6: expecting that China is not going to be good. The
14:31
Speaker 6: question is how bad is it? You know, we are
14:33
Speaker 6: we kind of going to have to deal with some
14:34
Speaker 6: sort of excess inventoryous situation where they're going to start
14:38
Speaker 6: discounting more than we expect and it's going to, you know,
14:41
Speaker 6: look like an ugly March Quarter in terms of the guidance,
14:44
Speaker 6: I think that's at this point what we're looking at.
14:46
Speaker 6: But in terms of the biggest risk kind of going
14:47
Speaker 6: into the print here and as far as the March
14:49
Speaker 6: Quarter is concerned, it's absolutely China. And we also know
14:52
Speaker 6: as far as the March Quarter guidance is concerned, it's
14:54
Speaker 6: going to be someone on the weaker side of things
14:56
Speaker 6: because of the four X uncertainties, you.
14:58
Speaker 3: Know, Angela. We're just about forty seconds away from those
15:02
Speaker 3: Apple earnings. Stocks down about five percent. We know it's
15:04
Speaker 3: been lagging some of it's tech brethren. If you will,
15:09
Speaker 3: question is kind of what's next for Apple? What could
15:11
Speaker 3: they say today that might give some indication of what's next.
15:15
Speaker 3: They've started to give some clues. Just got about twenty
15:17
Speaker 3: seconds here.
15:18
Speaker 6: I think the hope is that you get a better
15:21
Speaker 6: than fear type number really on China. I think that's
15:24
Speaker 6: kind of the big thing. And then of course on
15:25
Speaker 6: the services side of things, you want to make sure
15:27
Speaker 6: that that's running on all cylinders. We're going to hopefully
15:30
Speaker 6: continue to get double digit growth. And I think if
15:32
Speaker 6: you can kind of get you know, those two kind
15:34
Speaker 6: of things running, I think that should be enough as
15:36
Speaker 6: far as kind of where the stock is at and
15:38
Speaker 6: the pullback that we've seen.
15:40
Speaker 3: All right, folks, we're talking with Angelo's, you know, senior
15:42
Speaker 3: equity analyst over at CFR Research. He's going to stay
15:45
Speaker 3: with us as we get ready for those Apple earnings
15:47
Speaker 3: and they are crossing. So let's go through some of
15:49
Speaker 3: the numbers. First quarter revenue one hundred and twenty four
15:52
Speaker 3: point three billion. That is just a hair better than
15:56
Speaker 3: what the street was expecting. One hundred and twenty four
15:58
Speaker 3: point one billion is what the street was looking for.
16:01
Speaker 3: Products revenue ninety seven point ninety six billion, that's up
16:04
Speaker 3: about one point six percent year over year. Ten that's
16:06
Speaker 3: a little bit light. Ninety eight point zero two billion.
16:10
Speaker 3: You break it down. iPhone, the all important iPhone number,
16:14
Speaker 3: sixty nine point fourteen billion, that is down year over year.
16:18
Speaker 3: Estimate was for seventy one point zero four billion.
16:20
Speaker 2: And then you keep going down at China revenue, big
16:23
Speaker 2: miss there, estimates for twenty one point six billion dollars
16:26
Speaker 2: that came in at eighteen point five to one billion dollars. Wearables,
16:30
Speaker 2: home and accessories coming in just shy of estimates. MAC
16:33
Speaker 2: revenue coming in above estimates, iPad revenue coming in above estimates.
16:37
Speaker 2: First quarter products revenue coming in shi of estimates. But Carol,
16:40
Speaker 2: what we're talking about right now, iPhone revenue coming in
16:43
Speaker 2: light sixty nine point one four billion versus estimates of
16:46
Speaker 2: seventy one billion, and that China number significantly lower than
16:49
Speaker 2: analysts one to see coming in at eighteen point five
16:51
Speaker 2: to one billion.
16:52
Speaker 3: Apple also maintaining its cash dividend of twenty five cents
16:55
Speaker 3: a share. I should say the stock has been bouncing
16:57
Speaker 3: around in the aftermarket. We've seen it up about one percent.
17:01
Speaker 3: Right now, it's just up about six tenths of a
17:03
Speaker 3: percent of half a percent. Angelo Zeno come on in
17:08
Speaker 3: initial thoughts on the first headlines off of this earnings release.
17:14
Speaker 6: Yeah, I mean, I think this is kind of a
17:16
Speaker 6: situation where, you know, execution was I think as good
17:20
Speaker 6: as you could have asked for. I mean, as far
17:22
Speaker 6: as the top line is concerned, roughly in line. I
17:24
Speaker 6: think the expectation again was about you know, one hundred
17:26
Speaker 6: and twenty four billion, so you're looking at what was
17:29
Speaker 6: it maybe three point eight percent or close to four
17:31
Speaker 6: percent growth, let's call it, as far as kind of
17:33
Speaker 6: on a year of a year growth rate. And I mean,
17:36
Speaker 6: I think Tim kind of highlighted the iPhone numbers were
17:39
Speaker 6: definitely a disappointment and the China numbers, so it's definitely
17:43
Speaker 6: a China iPhone problem as far as the quarter is concerned,
17:46
Speaker 6: and why we missed. And again, the expectations going into
17:50
Speaker 6: the quarter was it was going to be a challenge,
17:53
Speaker 6: and the fact that they had been able to kind
17:54
Speaker 6: of navigate and still meet the numbers despite those issues,
17:59
Speaker 6: I think kind of helps maybe do you risk the
18:01
Speaker 6: stock at least when you kind of look at the
18:04
Speaker 6: numbers this quarter. I mean, we'll see what the March
18:06
Speaker 6: quarter guidance is going to look like. But my guess
18:09
Speaker 6: is you're going to continue to see the further weakness
18:11
Speaker 6: on the China iPhone side of things.
18:13
Speaker 2: Angelo, how much of the iPhone miss can you attribute
18:17
Speaker 2: to China? Is is the iPhone miss just a result
18:22
Speaker 2: of China?
18:24
Speaker 6: It seems like it, to be honest with you, just
18:26
Speaker 6: kind of giving just given the high level numbers that
18:28
Speaker 6: I'm hearing from you, it just seems like the weakness is.
18:33
Speaker 5: Really kind of you know, all China.
18:35
Speaker 6: And you know, my guess is, you know, Western markets
18:38
Speaker 6: probably held up much better what held up as as to.
18:41
Speaker 5: Be expected, and and you know, we kind.
18:43
Speaker 6: Of saw, you know, some pronounced weakness on the China
18:46
Speaker 6: side of things, and again not a surprise because a
18:49
Speaker 6: lot of the sell through numbers that had you know,
18:52
Speaker 6: come out from China, you know, was looking you know,
18:56
Speaker 6: essentially it was kind of pointing towards double digit declines
18:58
Speaker 6: out of kind of the eye phone business. So that's
19:01
Speaker 6: essentially what you've got. So it's it's pretty brutal, but
19:05
Speaker 6: not necessarily a complete surprise given some of the indications
19:08
Speaker 6: we got going into the numbers.
19:10
Speaker 3: All right, the three bright spots, iPad, MAC, and services.
19:12
Speaker 3: The iPad and MAC. The year over year services is
19:15
Speaker 3: at an all time record. What's interesting too, all time
19:19
Speaker 3: revenue record too as well, one hundred and twenty four
19:21
Speaker 3: point three billion and narrowly beating Wall Street estimates. Again,
19:25
Speaker 3: a huge miss for China when it comes to Apple
19:28
Speaker 3: eighteen point five billion versus twenty one point six billion
19:31
Speaker 3: that Wall Street expected, and a big miss for the
19:33
Speaker 3: iPhone sixty nine point one billion dollars versus seventy one
19:37
Speaker 3: billion dollars expected. And you know, initial reaction Angelo in
19:42
Speaker 3: terms of the share price. Initially we saw pop and
19:45
Speaker 3: then we saw the stock move down just down to
19:47
Speaker 3: here a hare at this point, you know, a lot
19:51
Speaker 3: of when we talk about Apple is we are saying
19:54
Speaker 3: what's the next big thing? Right and certainly if the
19:57
Speaker 3: iPhone is you know, certainly shoring business a still a
20:01
Speaker 3: very big business. But maybe some questions about China growth
20:04
Speaker 3: going forward. But where do you want to see the
20:07
Speaker 3: company move into? Where are the new opportunities in your
20:10
Speaker 3: view for Apple.
20:12
Speaker 6: Yeah, I mean, listen, I think, you know, we need
20:14
Speaker 6: to continue to see good growth on the services side
20:17
Speaker 6: of things, and then to continue to innovate and come
20:19
Speaker 6: out with new offerings on the services side of things.
20:22
Speaker 6: And I think that business will naturally continue to grow
20:26
Speaker 6: due to a number of factors. But you know, as
20:28
Speaker 6: far as kind of what we're looking for here over
20:30
Speaker 6: the next couple of quarters, I don't think you should
20:32
Speaker 6: forget about Apple Intelligence. I think that's still a very
20:34
Speaker 6: important part of this story. We've kind of seen the
20:36
Speaker 6: first two trunches of Apple Intelligence really roll out. The
20:40
Speaker 6: first trunch well, you know, was really a non event.
20:42
Speaker 6: I actually think, you know, and I have the iPhone sixteen.
20:44
Speaker 6: I actually really liked let a number of the other
20:46
Speaker 6: upgrades on the second trunch out there. I mean, I
20:49
Speaker 6: use kind of visual intelligence all the time. Not crazy
20:52
Speaker 6: about gen moji's and what have you, but you know,
20:55
Speaker 6: I think there were a number of decent features out there,
20:57
Speaker 6: specifically on the visual intelligence ide thinks I think Grounds
21:00
Speaker 6: was great. I think the chat, GPT and integration is
21:03
Speaker 6: super helpful for someone that just kind of you know,
21:05
Speaker 6: looking to do stuff, you know, on the fly on
21:07
Speaker 6: their phone. So I just don't think the consumer is
21:10
Speaker 6: well aware of it obviously, and we're still at a
21:13
Speaker 6: point where you know, most of kind of the installed
21:15
Speaker 6: base doesn't have access or even knows about Apple Apple
21:18
Speaker 6: Intelligence at this point in time. We'll get kind of
21:20
Speaker 6: the the third you know, trunch here in the coming months,
21:24
Speaker 6: and I think that's really going to help in terms
21:26
Speaker 6: of the serie integration and what Apple can kind of
21:29
Speaker 6: demonstrate across kind of the app store and what have you.
21:32
Speaker 6: And then you know, clearly, you know, we kind of
21:34
Speaker 6: want to see how that reflects across the rest of
21:38
Speaker 6: the ecosystem as they kind of throw this out internationally,
21:42
Speaker 6: what kind of partnerships they can kind of announce out
21:44
Speaker 6: in China. Does that make a difference in China in
21:47
Speaker 6: terms of kind of helping the demand outlook, because I
21:50
Speaker 6: do think a big problem with with Apple right now
21:52
Speaker 6: in China is the fact that they don't have AI
21:54
Speaker 6: capabilities where you know, obviously they're they're China peers do
21:59
Speaker 6: don't have a full device out there where their peers do.
22:02
Speaker 6: And hopefully, you know, we see something on the foldable
22:04
Speaker 6: side of things here over the next kind of two years,
22:07
Speaker 6: So you know, where I'd like to see them go
22:09
Speaker 6: is kind of, you know, start evolving their ecosystem where
22:12
Speaker 6: they could find some success, at least in China, because
22:16
Speaker 6: at this point in time, you know, what they've got
22:18
Speaker 6: in terms of their offering in China is just not
22:20
Speaker 6: going to.
22:20
Speaker 3: Cut it all right, Going to leave it on that note,
22:22
Speaker 3: Angela's you know, he's senior equity analyst at CFR Research
22:25
Speaker 3: joining us in New York City. Do you want to
22:27
Speaker 3: mention Tim Cook? In the earnings release and the statement
22:32
Speaker 3: called it the company's best quarter ever at Apple. He
22:36
Speaker 3: also said, through the power of Apple Silicon, we're unlocking
22:38
Speaker 3: new possibilities for our users with Apple Intelligence, which makes
22:42
Speaker 3: apps and experiences even better and more personal. We're excited
22:45
Speaker 3: that Apple Intelligence will be available and even more languages
22:47
Speaker 3: this April. So Tim is certainly choosing to highlight that
22:51
Speaker 3: we should point out. Apple shares though after an initial
22:54
Speaker 3: pop right after the earnings release here in the aftermarket,
22:58
Speaker 3: are now pretty much flat.
23:00
Speaker 2: Yeah, no mention of China in that statement, which certainly
23:02
Speaker 2: will be a focus of investors on that call when
23:05
Speaker 2: it does begin in just a few minutes. It's certainly
23:08
Speaker 2: a focus for Caroline High. She's a Bloomberg Technology co host.
23:11
Speaker 2: She joins us here in the Bloomberg Interactive Brokers studio.
23:14
Speaker 2: Two big misses today Caroline highphone revenue coming in about
23:18
Speaker 2: two billion dollars shi of estimates, and then greater China
23:20
Speaker 2: revenue coming in about three billion dollars shi of estimates.
23:24
Speaker 2: Does Apple need to change its strategy in China? Or
23:27
Speaker 2: do investors need to adjust their expectations about China?
23:30
Speaker 7: Do we need to get more comfortable with their selling
23:32
Speaker 7: fewer phones but in a higher average selling price. And
23:35
Speaker 7: I think that's perhaps where they're trying to educate people towards.
23:38
Speaker 2: Is that in China?
23:39
Speaker 5: Is that everywhere?
23:40
Speaker 1: Well, I mean it.
23:41
Speaker 7: Feels like everywhere, but we do still have the slightly
23:43
Speaker 7: cheaper phones that are available in the US, but we
23:46
Speaker 7: don't have the rampant sort of competition that you do
23:49
Speaker 7: have with a Huawei and with some of the local
23:51
Speaker 7: operators that are in China that are just managing to
23:53
Speaker 7: produce far more sophisticateated phones and a much lower price point.
23:57
Speaker 7: And also there's some national patriotic fervor that's going on
24:02
Speaker 7: and wanting to buy your locally made phones. So they
24:04
Speaker 7: have been educating us and I think counterpoint research. For example,
24:08
Speaker 7: front run the fact that they're going to have had
24:10
Speaker 7: a dismal general amount sold eighteen percent rejection they thought
24:14
Speaker 7: in terms of phone sold, But if the average selling
24:17
Speaker 7: price is picking up, you're not going to be hurting
24:19
Speaker 7: quite so bad. But look, ultimately we've seen it's a
24:22
Speaker 7: big miss. They're growing in every region outside of China,
24:25
Speaker 7: and even the America's Japan was pretty good, but really
24:28
Speaker 7: China has been that real weak point, and we have
24:30
Speaker 7: to perhaps see that the company is just going to
24:32
Speaker 7: try and retrain us to think about them as a
24:33
Speaker 7: services company, as an Apple Intelligence company. And look, with
24:38
Speaker 7: iPhones missing as well, maybe we have to start to
24:40
Speaker 7: think is this really always going to be the juggernaut
24:42
Speaker 7: we thought it was?
24:42
Speaker 3: What about Apple Intelligence? Right? We have certainly heard so
24:45
Speaker 3: much from the company, Tim Cook singling it out also
24:48
Speaker 3: on the release and in a statement, So how is
24:52
Speaker 3: the world thinking about Apple Intelligence and its opportunities?
24:55
Speaker 1: I mean, what what that's far?
24:58
Speaker 7: I mean, of course I want to have fun in
25:00
Speaker 7: a Gen Moji, but ultimately I'm going to be upgrading
25:04
Speaker 7: my phone for that. No, I probably have gone ungraded
25:06
Speaker 7: to an iPhone sixteen because my darn camera is broken
25:09
Speaker 7: and I want to get a better camera, and I
25:10
Speaker 7: want to get a slimmer phone. But I wouldn't have
25:12
Speaker 7: gone for it for Apple Intelligence largely because look, I
25:14
Speaker 7: can integrate Google and to upgrade there and have it
25:17
Speaker 7: magicing my emails and making life a little bit more
25:20
Speaker 7: sophisticated there, and compared to Samsung, it is not able
25:24
Speaker 7: to innovate in the way that Samsung's adapted to Alphabet's
25:27
Speaker 7: offering Open Ai. Though, I think the winning formula for
25:29
Speaker 7: Apple Intelligence going forward is that it hasn't spent billions
25:33
Speaker 7: on its own large language model. It's gone in bed
25:35
Speaker 7: with open Ai, and open Ai is probably gonna have
25:37
Speaker 7: to get a lot cheaper because of what's happening with Deeze.
25:40
Speaker 2: Caroline h Have you been watching Severance?
25:43
Speaker 4: No?
25:44
Speaker 1: I haven't.
25:44
Speaker 5: Okay, Well, I'm.
25:46
Speaker 1: Too busy on the jacket, holl the day of the Jackal.
25:48
Speaker 2: It's it's a huge investment by Apple, huge marketing, push
25:53
Speaker 2: services revenue a bright spot for the company. Yes, coming
25:57
Speaker 2: in at twenty six point three four billion dollars, it's
26:00
Speaker 2: for twenty six point one billion. I bring up Severance
26:02
Speaker 2: because that's part of the services category. This is a
26:06
Speaker 2: high margin business for Apple, the services social TVs TVs.
26:11
Speaker 2: But the services category. Yeah, does does services growth and
26:17
Speaker 2: strength ever offset weakness in China or for MyPhone? Well?
26:21
Speaker 7: I think it's interesting. Then the new COFO who has
26:23
Speaker 7: just taken on the role. He's a long time Apple executive,
26:26
Speaker 7: but he's just taken on the role in January, is
26:28
Speaker 7: really talking up about sort of the installed base, because
26:31
Speaker 7: that's where they want you to think the amount of
26:34
Speaker 7: max iPads phones that we all own. They say that
26:38
Speaker 7: we now have an installed base of active devices that
26:40
Speaker 7: reached an all time high across all products and geographic segments.
26:43
Speaker 7: Suddenly the services bigot wheel just flies. And then when
26:47
Speaker 7: you're getting into payments, when you're getting into interoperability, of course,
26:50
Speaker 7: services just becomes ever more necessary.
26:52
Speaker 2: For I mean, I probably pay Apple more each year
26:55
Speaker 2: between between the memory.
26:59
Speaker 1: Yeah, what about the app store?
27:01
Speaker 7: I do wonder with some regulatory perspective, we heard it
27:04
Speaker 7: from Microsoft yesterday, Well was it Meta yesterday talk.
27:07
Speaker 1: Singling out EU.
27:08
Speaker 7: But how much are they going to have to change
27:09
Speaker 7: the business model when it comes to the revenue They
27:11
Speaker 7: can just skim away from an app store when it
27:13
Speaker 7: think about how it's treating its own consumers and whether
27:16
Speaker 7: we're being fairly treated across the world.
27:18
Speaker 3: I mean, what do you want to know and what
27:19
Speaker 3: do you want to hear from them?
27:20
Speaker 1: On the car?
27:20
Speaker 3: Is it just China or is it other things?
27:23
Speaker 1: I think, what is your next big innovation? Is it
27:25
Speaker 1: about the home?
27:26
Speaker 7: Because look, the Vision Pro looks cute, but are we
27:29
Speaker 7: all spending thousands on it? No, it hasn't been the
27:32
Speaker 7: R and D winner for them this yet, but it
27:35
Speaker 7: might have spin offs when they can tell about how
27:37
Speaker 7: much they've iterated there to bring it to what they're
27:39
Speaker 7: going to do with the home, the video screens, the robotics.
27:42
Speaker 7: We're going to see how they can become evanmore integrale.
27:44
Speaker 7: We need another winning product. It wasn't cars, the Vision Pro,
27:47
Speaker 7: not yet, But what about twenty twenty five is some
27:50
Speaker 7: new unleashed hardware.
27:51
Speaker 3: I'm amazer not more entrenched in the home. I mean,
27:53
Speaker 3: I know in my home it's such an Apple household,
27:56
Speaker 3: but it's not.
27:57
Speaker 1: We're a Google home household.
27:59
Speaker 3: We are too. We are too, and so I'm kind
28:01
Speaker 3: of amazed that they have kind of waited so long
28:02
Speaker 3: to get into the home market.
28:04
Speaker 2: Yeah, it would be certainly that would be an interesting
28:06
Speaker 2: product category from them. What about something more akin to
28:09
Speaker 2: metas glasses that we spoke about yesterday, and if they
28:12
Speaker 2: were to come out with something that is less vision
28:15
Speaker 2: pro oculous and more sort of like low profile Rabia,
28:19
Speaker 2: because that.
28:19
Speaker 1: Was the irritation for many.
28:20
Speaker 7: Was it the fact that you've basically got a huge battery,
28:23
Speaker 7: we connected to you and it just.
28:24
Speaker 1: So harding around.
28:27
Speaker 7: The tried and tested formula of Apple is let everyone
28:29
Speaker 7: else play and then you come in and win the
28:32
Speaker 7: day with something beautiful sneak and everyone jumps on board.
28:34
Speaker 7: So maybe that is the winning formula for the home
28:36
Speaker 7: and when it will be for glasses and they'll start
28:38
Speaker 7: to dabble in.
28:39
Speaker 1: I mean, Tim Cook's got nice pair of glasses.
28:41
Speaker 7: I wonder if he wants to start making them and
28:43
Speaker 7: we suit you down to the ground, Tim, But I
28:46
Speaker 7: do think that they do. They're always going to be
28:48
Speaker 7: slightly slower off the mark. Then come and bring in
28:50
Speaker 7: what it. They haven't got a foldable phone yet. Look,
28:52
Speaker 7: Samsung has plenty on the market. Everyone's been wanting to
28:56
Speaker 7: get a smaller form factor. They're just waiting until they
28:58
Speaker 7: can perfect. So you don't get a crease in it.
29:01
Speaker 7: So I do wonder whether it's gonna take a little
29:02
Speaker 7: bit of time.
29:03
Speaker 3: You know, we have talked with Mark I guess about
29:05
Speaker 3: just how the overall market here in the United States
29:08
Speaker 3: is so overweighted to some of these big tech companies.
29:11
Speaker 3: And I am curious though they are important, right when
29:14
Speaker 3: you look at kind of the numbers that they bring in,
29:16
Speaker 3: how twenty four million, I mean, it's just extraordinary, even
29:19
Speaker 3: when we say right, maybe right, it's extraordinary. So how
29:22
Speaker 3: are you thinking about this week of some of these
29:25
Speaker 3: big tech names and the results that we've had.
29:28
Speaker 7: Thing they've done all right, considering Monday and the deep
29:31
Speaker 7: seeky whiplash that we had, and I thought the spend.
29:35
Speaker 1: Would be so much more under consideration.
29:37
Speaker 7: But I think Satia, even though Microsoft saw a big
29:40
Speaker 7: hit today, Satia managed to sort of thread the needle
29:43
Speaker 7: that look, we're already offering our one on on our foundry,
29:47
Speaker 7: IAI foundry, come to us find the best models. We'll
29:50
Speaker 7: also be able to we have our issue as supply,
29:52
Speaker 7: we've got to continue to invest. So they managed to
29:54
Speaker 7: vindicate a spending. I think Meta did a phenomenal job
29:58
Speaker 7: of just talking up with such pompous, like grandiose ideas that.
30:04
Speaker 1: Won everyone over.
30:05
Speaker 7: You know, musted the same, the fact that actually the
30:07
Speaker 7: numbers look pretty ugly. But he's so optimistic about Optimist,
30:11
Speaker 7: he's so optimistic about FSD that we managed to be
30:14
Speaker 7: blindsided by the idea that actually the plans are there,
30:16
Speaker 7: the money is being well spent, and we're still committed
30:18
Speaker 7: to these companies. So ultimately, I think they've managed to
30:21
Speaker 7: navigate a pretty rocky period Apple. The fact that it's
30:24
Speaker 7: flat Microsoft's been really the only real pain point here.
30:27
Speaker 7: St Micro had another problem ever in Europe as well.
30:30
Speaker 7: I look towards Alphabet and Amazon. Can they vindicate the
30:32
Speaker 7: amounts of money that they're going to have to save.
30:33
Speaker 2: I'm not going to put words in Mark Umman's mouth,
30:35
Speaker 2: but he spent plenty of time over the last few
30:36
Speaker 2: months on our program really criticizing Apple for.
30:40
Speaker 1: Its AI is and it's analysts.
30:42
Speaker 7: He loves to criticize the analyst.
30:45
Speaker 2: AI and you know, a question about slow rolling AI
30:48
Speaker 2: and to what extent this actually is something that's not
30:52
Speaker 2: just incremental but is actually meaningful. When do we start
30:56
Speaker 2: to see Apple intelligence really flourish.
30:59
Speaker 7: I think they're signaling it signaling in the even the
31:03
Speaker 7: press release saying that more languages are coming in April,
31:06
Speaker 7: we will be making it further integrated. It's also interesting
31:10
Speaker 7: when they bring these things without us even knowing, like
31:12
Speaker 7: the news that they brought starlink and the fact that
31:15
Speaker 7: we can now use with it, they just hide in
31:17
Speaker 7: these little operating system grades.
31:21
Speaker 2: So example, publicly acknowledge that, I know Mark Grimman reported
31:23
Speaker 2: that it was.
31:23
Speaker 5: Going to happen.
31:24
Speaker 7: I think T Mobile CEO came on and talked about it,
31:26
Speaker 7: and it's just that ultimately they do slow roll. They
31:29
Speaker 7: don't perhaps they realize that they need to speak to
31:32
Speaker 7: the investor.
31:32
Speaker 1: Base about intelligence.
31:33
Speaker 7: They're going to talk about how they're really managing to
31:36
Speaker 7: infuse it in a more seamless manner. But to you
31:39
Speaker 7: and I as a consumer, I think they just don't
31:41
Speaker 7: want to stress test it too much. They want to
31:43
Speaker 7: slowly have us naturally absorbing it and making our life
31:46
Speaker 7: simpler and simpler. But thus far, like a little summari
31:50
Speaker 7: of my email hasn't changed my life.
31:52
Speaker 5: All that much.
31:53
Speaker 3: Yeah, exactly. I just want to remind everybody that we
31:56
Speaker 3: do see Apple shares fluctuating in the aftermarket. Apple as
32:00
Speaker 3: our Mark German Reports posted sales that were slightly better
32:02
Speaker 3: than analysts estimated, even as the iPhone and sales in
32:05
Speaker 3: China were weaker than anticipated. Caroline, just talking about that
32:10
Speaker 3: revenue number, it did rise four percent to one hundred
32:13
Speaker 3: and twenty four point three billion in the fiscal first quarter.
32:16
Speaker 3: Analysts had estimated one hundred and twenty four point one, so,
32:19
Speaker 3: you know, coming in just a hair better than what
32:21
Speaker 3: the street was forecasting. But again concerns over China and
32:25
Speaker 3: Apples struggling there stacks up about four tenths of a
32:29
Speaker 3: percent here in the aftermarket. Yeah, I just think, you know,
32:34
Speaker 3: it's interesting to see after what a crazy week that
32:36
Speaker 3: we've seen. I feel like with technology that the stock
32:39
Speaker 3: is just kind of flat.
32:40
Speaker 7: Yeah, we priced it in, and remember great point, it
32:43
Speaker 7: was kind of beaten up running into this. We'd had
32:46
Speaker 7: five analyst downgrades right in the last month or so,
32:50
Speaker 7: and unlike in Nvidia that has zero cells, there have
32:53
Speaker 7: been a few creeping into Apples, So I think people
32:55
Speaker 7: had started to price in the China weakness.
32:57
Speaker 1: Interestingly made the point to.
32:59
Speaker 7: Like all the going to sell us cheaper price points
33:03
Speaker 7: they are, according to Mark Gumman, going to be focusing
33:05
Speaker 7: on the iPhone SE, which is the cheaper around five
33:07
Speaker 7: hundred dollars offering that's going to come in April March.
33:10
Speaker 7: Maybe that's going to pull more people perhaps away from
33:13
Speaker 7: the Samsung's and the Android offerings. Maybe we get the cheaper,
33:15
Speaker 7: lower end Airpod's making a dent. But all of this
33:19
Speaker 7: I think had just been guided. We knew that Apple
33:22
Speaker 7: was going to have a terrible time in China, and
33:24
Speaker 7: Apple Intelligences isn't there yet, and people have really been
33:27
Speaker 7: complaining about the latest os, like use cases, the way
33:32
Speaker 7: in which the phone just doesn't feel as slick.
33:34
Speaker 1: As it used to.
33:35
Speaker 2: Are we going to start hearing more chatter about Tim
33:39
Speaker 2: Cook and a succession plan. We've been talking a lot
33:41
Speaker 2: about Intel and what Intel does post Gal Singer, and.
33:44
Speaker 1: They've got some big issues they do.
33:47
Speaker 2: Tim Cook has been an Apple since nineteen ninety eight,
33:49
Speaker 2: he's been CEO since twenty eleven.
33:51
Speaker 5: What's the succession plan?
33:52
Speaker 7: And they've just had a CFO come into the MITS
33:54
Speaker 7: who's been trained up from within. I don't think anyone
33:57
Speaker 7: feels that Tim's going anywhere soon. He navigates the first
34:00
Speaker 7: Trump administration so swiftly and seamlessly worked well to be
34:05
Speaker 7: able to protect his business that of course is so
34:08
Speaker 7: dependent on China, not just from a selling perspective, but
34:10
Speaker 7: it's more from a production perspective. What do tarifs mean
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Speaker 7: for him? So I think in this next administration can't
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Speaker 7: I wouldn't ever bet that he's going to hand over
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Speaker 7: the baton anytime soon. But I think that is a
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Speaker 7: key question that people are gonna be asking who from
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Speaker 7: within has been groomed up, because.
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Speaker 1: Remember they lost a lot of talent as well.
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Speaker 7: Johnny E's left, and a lot of people seem to
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Speaker 7: move from the engineering the product development side of things.
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Speaker 3: All right, fascinating stuff, Caroline, thank you again. Second day
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Speaker 3: like making anyways sense of all the big tech earnings.
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Speaker 3: As we said, Caroline Hyde is co host of Bloomberg
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Speaker 3: Technology on Bloomberg TV. Catch It. They'll continue coverage of
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Speaker 3: all the earnings this week. That'll be at eleven am
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Speaker 3: Wall Street time tomorrow on Bloomberg TV. Right now, tim
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Speaker 3: Apple shares just down about one quarter of one percent.