WEBVTT - Tesla's Job Cuts and Apple's iPhone Slump 0:00:01.720 --> 0:00:05.360 From Marhard where Innovation of Money and Power Collie in 0:00:05.480 --> 0:00:07.000 Silicon Valley, NBN. 0:00:07.320 --> 0:00:11.360 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:25.400 --> 0:00:27.840 I'm Caroline Hyde a Bloomberg's World Headquarters in New York 0:00:28.240 --> 0:00:29.880 and I met Ludlow in San Francisco. 0:00:29.920 --> 0:00:31.200 This is Bloomberg Technology. 0:00:31.320 --> 0:00:33.479 Coming up. We'll bring you the latest updates from the 0:00:33.479 --> 0:00:34.040 Middle East. 0:00:34.240 --> 0:00:37.519 That's after Iran launched missiles and roans over the weekend 0:00:37.600 --> 0:00:39.519 into Israel, the US, and Europe. 0:00:39.680 --> 0:00:41.640 They ramp up calls for Israeli restraint. 0:00:42.120 --> 0:00:45.640 Full coverage ahead plus shares of Tesla slump amid the 0:00:45.680 --> 0:00:49.560 company's plans to slash ten percent of its global workforce, 0:00:49.600 --> 0:00:52.600 prompting senior executives to depart the company. 0:00:52.600 --> 0:00:54.360 We had the details and Apple. 0:00:54.120 --> 0:00:56.840 It faces its worst liphone slump since Covid as a 0:00:56.920 --> 0:00:58.560 company faces increased. 0:00:58.120 --> 0:00:59.160 Competition in China. 0:00:59.320 --> 0:01:01.440 We'll discuss that and so much more throughout this hour, 0:01:01.480 --> 0:01:04.480 but first we turn our attention to a complex geopolitical 0:01:04.520 --> 0:01:07.319 and macroeconomic picture that's being painted today. 0:01:07.680 --> 0:01:07.840 Now. 0:01:07.880 --> 0:01:10.840 The pullerhead really is the fact that Naslak is currently 0:01:11.080 --> 0:01:13.319 back in the red. We were managing to push higher 0:01:13.360 --> 0:01:15.800 on stocks but certainly the bond market field or full 0:01:15.800 --> 0:01:19.600 effect of actually a stronger, more resilient macroeconomic picture in 0:01:19.640 --> 0:01:22.200 the United States coming from retail sales that were far 0:01:22.280 --> 0:01:25.240 faster than had been anticipated. But on the flip side 0:01:25.319 --> 0:01:28.520 is geopolitics is a concern about, of course, an unprecedented 0:01:28.560 --> 0:01:30.959 attack coming from Iran to Israel and what that really 0:01:31.000 --> 0:01:34.880 means in terms of actually dialing up or cooling of 0:01:34.920 --> 0:01:37.679 some of those geopolitical anxieties, notably oil is on the 0:01:37.680 --> 0:01:40.600 lower side that drags the Bloomerg commodity index down. But 0:01:40.680 --> 0:01:45.399 remember there's actually added sanctions on Russian movement of metals 0:01:45.440 --> 0:01:47.480 into the LME at the moment, and that's been moving 0:01:47.520 --> 0:01:48.840 around aluminium and some other. 0:01:48.720 --> 0:01:49.960 Key metals to be keeping it on. 0:01:50.240 --> 0:01:53.000 So complex going on in the commodity space as well, 0:01:53.080 --> 0:01:54.680 but let's move it on as we try to really 0:01:54.680 --> 0:01:57.040 anticipate which way risk assets are going to be going. 0:01:57.400 --> 0:01:59.800 One that was in full effect because ultimately it was 0:01:59.800 --> 0:02:01.680 the when you ascasset that was really able to be 0:02:01.760 --> 0:02:04.560 traded at the time of those initial reports, as many 0:02:04.560 --> 0:02:08.240 had anticipated an attack coming from Iran into Israel. But 0:02:08.280 --> 0:02:10.640 we see the volatility that was in display when it 0:02:10.639 --> 0:02:13.160 came to bitcoin on Saturday afternoon plumbting. 0:02:13.240 --> 0:02:14.519 We now recover some of that. 0:02:14.600 --> 0:02:16.400 We're still off by more than four percent over the 0:02:16.400 --> 0:02:18.680 course of a three day trading period ed. We're currently 0:02:18.720 --> 0:02:20.639 at sixty three nine hundred of thereabouts. 0:02:20.680 --> 0:02:24.079 But what are you watching on the micro Tesla? It's 0:02:24.120 --> 0:02:26.600 a big one. I broke the story this morning that 0:02:26.680 --> 0:02:30.280 Drew Baglino, who led powertrain and energy at Tesla, one 0:02:30.320 --> 0:02:34.680 of only four named executive officers, has resigned and left 0:02:34.680 --> 0:02:37.480 the company. The stock near session lows down three point 0:02:37.520 --> 0:02:41.760 three percent. We also confirmed Elon Muskers told staff that 0:02:42.000 --> 0:02:45.280 ten percent of the workforce will be cut in pursuit 0:02:45.320 --> 0:02:48.760 of cost reduction, productivity, and what he called duplicate rolls. 0:02:48.800 --> 0:02:51.600 We'll get all the details later from the Bloomberg team. 0:02:51.639 --> 0:02:55.519 The other big one is Apple. IDC data showed shipments 0:02:55.720 --> 0:02:58.880 of about fifty million iPhones in the first quarter, but 0:02:58.960 --> 0:03:01.320 that's down ten percent year on year. 0:03:01.400 --> 0:03:02.360 Now that's third. 0:03:02.120 --> 0:03:04.880 Party data, and it's not just an Apple story. With 0:03:04.919 --> 0:03:07.480 the stockdown eight tens of one percent, it's a story 0:03:07.480 --> 0:03:13.400 about China's domestic smartphone makers having success growing market share 0:03:13.440 --> 0:03:15.160 in a really key market. We will speak to bloom 0:03:15.200 --> 0:03:19.000 those Mark German because it's complicated, but Apple is lower, 0:03:19.280 --> 0:03:20.520 whether that's cause or not. 0:03:20.600 --> 0:03:21.160 Who knows. 0:03:21.600 --> 0:03:23.520 A lot going on in the world of technology this morning, 0:03:23.560 --> 0:03:25.080 but also a lot of news around the world. 0:03:25.320 --> 0:03:27.600 Yeah, and let's get back to it, ed, because Iran's 0:03:27.639 --> 0:03:30.120 attack on Israel is what many are talking of. Israel 0:03:30.280 --> 0:03:33.480 and its allies intercepted the overwhelming majority of more than 0:03:33.560 --> 0:03:37.720 three hundred missiles drones fired by Iran. Joining US now 0:03:37.720 --> 0:03:39.800 from Tel Aviv is Our Israel. You're O chief and 0:03:39.840 --> 0:03:42.560 senior editor Ethan Rohner, and we thank you for your time. 0:03:42.680 --> 0:03:43.040 Ethan. 0:03:43.400 --> 0:03:47.840 Well, probably how is it being felt and digested in 0:03:47.920 --> 0:03:48.720 Israel right now? 0:03:51.040 --> 0:03:52.160 Yeah, that's a great question. 0:03:52.240 --> 0:03:56.720 I mean, I think that the overall senses of relief because, 0:03:56.720 --> 0:03:59.920 as you said, of three hundred and fifty projectiles, including 0:04:00.000 --> 0:04:02.480 one hundred and twenty ballistic missiles that come here in 0:04:02.520 --> 0:04:06.000 eight or ten minutes from around the vast majority, the 0:04:06.080 --> 0:04:09.520 overwhelming majority, were stopped before they got here. They were 0:04:09.560 --> 0:04:13.680 about half a dozen that got through to a military 0:04:13.720 --> 0:04:16.880 base in Israel. They didn't do much damage, but they 0:04:16.920 --> 0:04:19.960 did hit and so there's a kind of a mixed 0:04:19.960 --> 0:04:23.359 feeling of well, we got them, we don't nobody was killed. 0:04:23.360 --> 0:04:25.200 But but there's a seven year old girl fighting for 0:04:25.240 --> 0:04:28.240 a live shrapnel that hit her in the south. But 0:04:28.960 --> 0:04:31.840 the general senses this could have been much much worse. 0:04:32.240 --> 0:04:35.400 So we can we Israel can take its time to decide. 0:04:35.080 --> 0:04:35.839 What to do next. 0:04:35.880 --> 0:04:38.960 But there is a a rubicon that's been crossed. I mean, 0:04:39.000 --> 0:04:41.599 we we have for the very first time in nearly 0:04:41.640 --> 0:04:45.120 four decades as Israel taken direct hits from missiles of 0:04:45.160 --> 0:04:48.080 this kind, and the first time ever in Thish what 0:04:48.200 --> 0:04:51.880 has been a shadow war between Israel and Iran emerged 0:04:51.920 --> 0:04:54.920 from the shadows. So we're in a new era, and 0:04:55.120 --> 0:04:57.040 it's not clear what that means. 0:04:58.880 --> 0:05:00.640 Ething late to the program, we're going to talk a 0:05:00.680 --> 0:05:03.240 little bit about the sort of coalition response. You know, 0:05:03.600 --> 0:05:08.679 Israel made those interceptions in conjunction with the United States 0:05:08.680 --> 0:05:12.520 and the United Kingdom. I'd also like to learn a 0:05:12.520 --> 0:05:14.960 little bit about the kind of operational response on the 0:05:15.000 --> 0:05:18.160 ground in Israel, what it is happening in the streets, 0:05:18.200 --> 0:05:21.560 what the government is telling its citizens of where we stand. 0:05:23.000 --> 0:05:26.520 So at the moment, in fact, there is a sense 0:05:26.560 --> 0:05:29.520 of calm. The government issued a statement that they were 0:05:29.560 --> 0:05:32.440 going to reopen the schools and the sort of day 0:05:32.440 --> 0:05:36.560 camps that they had closed on Saturday night in anticipation 0:05:36.680 --> 0:05:41.000 of this attack. So everything is back to normal, I 0:05:41.040 --> 0:05:44.760 think it's fair to say. And by the way, the 0:05:45.120 --> 0:05:48.640 Iranians also reopened their airspace, so there is no sense 0:05:48.640 --> 0:05:50.760 that there's going to be a continuation of this war 0:05:50.839 --> 0:05:53.760 in the coming three days. On the other hand, the 0:05:54.200 --> 0:05:57.920 Israeli cabinet met last night and met again tonight in 0:05:58.040 --> 0:06:01.800 order to discuss what kind of sponse it needs to have, 0:06:01.920 --> 0:06:04.680 and those on the far right are urging a very 0:06:04.760 --> 0:06:09.240 vigorous response, a crushing attack, as they put it. It's 0:06:09.240 --> 0:06:10.960 not clear if they're going to have their way. It 0:06:10.960 --> 0:06:14.400 doesn't seem so, because it does feel that the embrace 0:06:14.440 --> 0:06:17.159 of the United States, the United Kingdom in France of 0:06:17.360 --> 0:06:20.240 Israel at this point has been a warm bath for 0:06:20.320 --> 0:06:24.160 Israelis after many weeks of hostility because of their war 0:06:24.279 --> 0:06:27.839 in Gaza. At the same time, you see, the Israelis 0:06:27.880 --> 0:06:30.760 have two audiences. They worry about these that we just 0:06:30.839 --> 0:06:34.000 talked about, and then their enemies that it's just Balahamas 0:06:34.240 --> 0:06:37.800 and Iran, and they fear that any lack of reaction 0:06:37.880 --> 0:06:40.640 will be perceived as weakness, and so there is a 0:06:40.720 --> 0:06:42.239 sense that they must react. 0:06:42.360 --> 0:06:43.880 The question is when and. 0:06:43.800 --> 0:06:48.200 How Bloomberg's even brunna on the ground until they're really 0:06:48.200 --> 0:06:51.640 grateful for your time on the ground reporting as well, 0:06:51.680 --> 0:06:53.000 and we have a big audience in this show in 0:06:53.040 --> 0:06:55.440 Europe and the emir regionable broadly. I point out the 0:06:55.480 --> 0:06:58.599 easy Jet, one of the airlines is an example, has 0:06:58.600 --> 0:07:02.320 canceled flights to his through April twenty first, so there's 0:07:02.320 --> 0:07:03.840 a kind of business impact. 0:07:03.440 --> 0:07:04.640 There as well. 0:07:04.760 --> 0:07:07.080 Let's go from Israel to Washington, DC and bring in 0:07:07.120 --> 0:07:10.720 Bloomberg National security reporter Nick Wadhams. Nick I was talking 0:07:10.720 --> 0:07:14.480 to Ethan about the kind of coalition response that United 0:07:14.520 --> 0:07:17.640 States was involved. The United Kingdom was involved in part 0:07:17.680 --> 0:07:21.120 because Iran had given heads up almost on their actions. 0:07:21.920 --> 0:07:24.280 My understanding is Biden has been in touch with the 0:07:24.360 --> 0:07:27.480 Israeli government quite frequently. What we know from the US 0:07:27.520 --> 0:07:29.120 side at this stage. 0:07:29.720 --> 0:07:32.760 Well, what we're hearing from the administration is essentially that 0:07:32.840 --> 0:07:36.640 they want Israel to put the brakes on any sort 0:07:36.640 --> 0:07:40.760 of response. So we've been told the view from the 0:07:40.800 --> 0:07:44.560 White House is listen, Israel, take the win. Your air 0:07:44.600 --> 0:07:49.840 defenses did an extraordinary job deflecting and rebuffing about ninety 0:07:49.920 --> 0:07:52.800 nine percent of those incoming drones and missiles, and there 0:07:52.840 --> 0:07:55.920 is no need for an immediate response. Obviously, as Ethan 0:07:56.040 --> 0:07:59.840 just said, the pressure on Prime Minister Benjamin Netnya, who 0:08:00.120 --> 0:08:02.520 is coming very much from the other direction as well. 0:08:02.640 --> 0:08:05.040 So looking ahead for the next few days, what we're 0:08:05.080 --> 0:08:09.160 really going to see here is a good reflection on 0:08:09.200 --> 0:08:13.400 the limits of US leverage over Prime Minister Netnya, who 0:08:13.880 --> 0:08:17.120 President Biden could not have been more clear about what 0:08:17.160 --> 0:08:17.880 he wants. 0:08:17.640 --> 0:08:19.520 To see next, which is de escalation. 0:08:19.640 --> 0:08:21.760 The US does not want to be pulled in deeper 0:08:21.760 --> 0:08:24.600 into this conflict. They don't want this to turn into 0:08:25.000 --> 0:08:29.040 even a bigger conflagration, and they want Prime Minister Benjamin 0:08:29.080 --> 0:08:33.400 Netnyah to hold fire. Whether he listens to that advice 0:08:33.520 --> 0:08:34.920 is another thing entirely. 0:08:35.280 --> 0:08:39.000 For now, rightly or wrongween the market, and that is 0:08:39.120 --> 0:08:40.920 often what we focus in on here. 0:08:40.920 --> 0:08:42.000 A Boomberg has. 0:08:41.840 --> 0:08:45.200 Been deeming this to be something that's containable. As of 0:08:45.240 --> 0:08:47.600 the moment, Nick, where do we have to align our 0:08:47.640 --> 0:08:49.880 sites now? Is it thinking of the next statement that 0:08:49.920 --> 0:08:52.640 we do get from Biden. We anticipate a conversation a 0:08:52.679 --> 0:08:56.280 press conference as soon as twelve o'clock that's right. 0:08:56.360 --> 0:08:59.160 So I mean, will really be looking at what the 0:08:59.200 --> 0:09:03.000 tone is from the president and from other officials in 0:09:03.040 --> 0:09:08.320 the administration. Are they projecting unity? Is there more sense 0:09:08.480 --> 0:09:11.880 of those fractures that had emerged in recent weeks with Israel? 0:09:11.960 --> 0:09:14.439 Do we have a sense that these two governments are 0:09:14.600 --> 0:09:18.640 diverging in their perspectives on what the outcome will be here? 0:09:19.040 --> 0:09:21.880 I mean, the attack by Iran could have been so 0:09:22.040 --> 0:09:24.559 much worse. I think you're seeing in the market in 0:09:24.559 --> 0:09:27.959 some ways a sense of relief that Israel repelled those 0:09:28.000 --> 0:09:30.520 As Ethan mentioned, there had been no deaths and fairly 0:09:30.559 --> 0:09:36.000 limited destruction. But what happens if Iran decides to respond 0:09:36.080 --> 0:09:39.840 yet again in response to a potential Israeli retaliation. So 0:09:40.200 --> 0:09:41.920 there's a lot of fear that there could be an 0:09:42.000 --> 0:09:45.080 escalatory spiral that gets to a situation that neither side 0:09:45.160 --> 0:09:45.800 can control. 0:09:46.840 --> 0:09:49.200 N it Wardens, thank you for giving us the context 0:09:49.640 --> 0:09:50.800 and keeping us up to speed. 0:09:59.360 --> 0:10:00.600 Let's talk about Tesla. 0:10:00.679 --> 0:10:02.480 The ev maker is going to cut ten percent of 0:10:02.520 --> 0:10:07.160 its workforce after a slowdown in demand, Elon Musk preparing 0:10:07.200 --> 0:10:09.560 the company for the next phase of growth. 0:10:10.080 --> 0:10:11.280 We also reported this. 0:10:11.160 --> 0:10:14.439 Morning that two key executives have left Tesla in the 0:10:14.520 --> 0:10:17.360 last twenty four hours. Drew Baglino, who's been at Tesla 0:10:17.880 --> 0:10:21.880 for eighteen years and led everything to do with powertrain 0:10:22.120 --> 0:10:25.880 energy storage, resigned, is what I'm told by a source, 0:10:25.920 --> 0:10:28.800 and he confirmed that later on in a post. Rowan 0:10:28.800 --> 0:10:32.520 Betel is basically the public policy chief in many ways 0:10:32.559 --> 0:10:35.760 the kind of devacta facto voice piece of Tesla on 0:10:35.800 --> 0:10:39.000 social media. He has also left the company. Let's bring 0:10:39.040 --> 0:10:41.760 in Bloombog's Global Autoza Craig Trudell. 0:10:42.679 --> 0:10:43.000 Craig. 0:10:43.080 --> 0:10:45.200 It was a bit of a long night or an 0:10:45.240 --> 0:10:47.680 early morning, depending on where you were around the world, 0:10:47.760 --> 0:10:52.080 but let's start with Drew Baglino, one of only four 0:10:52.200 --> 0:10:56.280 named executive officers at Tesla. I thought this was a surprise, 0:10:56.360 --> 0:10:59.080 and what sources told me is that he resigned. He 0:10:59.240 --> 0:11:01.800 wasn't laid off off as part of the ten percent 0:11:01.960 --> 0:11:03.800 KA What else do you unite? 0:11:05.080 --> 0:11:08.920 Yeah, I know less than you, you know, but I 0:11:08.960 --> 0:11:11.920 do have to sort of speculate about, you know, the 0:11:12.120 --> 0:11:14.800 extent to which this may be about, you know, a 0:11:14.880 --> 0:11:17.720 difference of opinion on the direction of the company. This 0:11:17.960 --> 0:11:22.040 you know, this these this news comes shortly after reports 0:11:22.120 --> 0:11:26.640 that the company is you know, maybe putting aside its 0:11:26.679 --> 0:11:30.679 work on a cheaper vehicle and focusing efforts on a robotaxi. 0:11:30.880 --> 0:11:33.960 I think Elon Musk, you know, at first called that 0:11:34.120 --> 0:11:36.960 a report by Reuter's false, and then you know, seem 0:11:37.000 --> 0:11:39.360 to sort of lend credence to it by scheduling an 0:11:39.360 --> 0:11:43.440 introduction of a robotaxi months from now, which you know, 0:11:43.520 --> 0:11:47.400 sort of suggests that you know, he's focused on that, 0:11:47.559 --> 0:11:51.640 and you know that raises questions about whether whether Baglino 0:11:51.679 --> 0:11:55.400 thought that's the right move, whether Rohan Patel thinks that's 0:11:55.440 --> 0:11:58.120 the right move. After all, he's going to be the 0:11:58.160 --> 0:12:01.600 person or would have been the person in Washington who 0:12:01.640 --> 0:12:04.200 would have to sort of justify that to regulators, and 0:12:04.640 --> 0:12:08.600 whether or not Tesla is really ready to put that 0:12:08.720 --> 0:12:12.000 forward is a question after years and years of the 0:12:12.040 --> 0:12:16.360 company talking about having robotaxis, or at least Musk talking 0:12:16.400 --> 0:12:18.920 about having robotaxis yes, when they haven't. 0:12:20.240 --> 0:12:23.640 All of this is sort of trying to be a 0:12:23.920 --> 0:12:28.120 level of prioritization or anxiety that is among investors at 0:12:28.120 --> 0:12:32.360 the moment. Many would say, Okay, cutting down on expenses, 0:12:32.400 --> 0:12:34.680 on costs is something that is necessary in the context 0:12:34.720 --> 0:12:37.640 of EV sales. More broadly, Craig. What could be therefore 0:12:37.679 --> 0:12:39.640 be really unnerving the investor. 0:12:39.280 --> 0:12:42.000 Base right now when you have SVPs leaving. Is it 0:12:42.120 --> 0:12:42.840 more the. 0:12:42.800 --> 0:12:46.520 Concern about the handing over of power ultimately any sort 0:12:46.559 --> 0:12:50.199 of fact that Musk currently leads and has done since 0:12:50.240 --> 0:12:51.040 two thousand and eight. 0:12:52.200 --> 0:12:54.800 Yeah, I mean, I think it's this concern about, you know, 0:12:54.880 --> 0:12:58.080 not knowing what the plan is, right, and this is 0:12:58.120 --> 0:13:01.880 not just a store that has only surfaced lately. 0:13:02.760 --> 0:13:02.960 You know. 0:13:03.000 --> 0:13:06.880 We go back to the Walter Isaacson biography months ago, 0:13:07.440 --> 0:13:10.160 and one of the more compelling bits within that book 0:13:10.360 --> 0:13:13.000 was this idea that there was real difference at the 0:13:13.000 --> 0:13:16.160 top of Tesla as to whether or not, you know, 0:13:16.240 --> 0:13:19.520 they should design this next generation vehicle with or without 0:13:19.600 --> 0:13:20.840 a steering wheel. 0:13:20.880 --> 0:13:22.400 And you had. 0:13:22.240 --> 0:13:26.280 Within that book, you know, this really compelling section of 0:13:27.120 --> 0:13:30.160 you know, executives having to kind of talk Musk out 0:13:30.160 --> 0:13:32.640 of this idea that they could just you know, design 0:13:32.679 --> 0:13:34.480 the car without a steering wheel and count on the 0:13:34.520 --> 0:13:36.280 idea that the technology was ready. 0:13:36.720 --> 0:13:38.280 And I think that's something. 0:13:38.000 --> 0:13:40.320 That you know, we've seen for for some time, This 0:13:40.440 --> 0:13:43.320 idea that you know, Musk has has really sort of 0:13:43.320 --> 0:13:46.199 been out on a limb in terms of how quickly, 0:13:46.280 --> 0:13:49.120 this company will be able to put self driving cars 0:13:49.120 --> 0:13:53.280 on the road. And what other executives have said, including 0:13:53.559 --> 0:13:57.400 you know, engineers that have had to testify in lawsuits 0:13:57.440 --> 0:14:00.600 related to people losing their lives because they too much 0:14:00.640 --> 0:14:05.160 trust into Tesla's driver assistance system. So this is something 0:14:05.200 --> 0:14:08.280 that's really tricky if you're an executive who has to 0:14:08.360 --> 0:14:10.360 kind of, you know, square that circle. 0:14:11.320 --> 0:14:14.520 Yeah, Craig, quickly, I think let's just re recap the basics. 0:14:14.520 --> 0:14:17.240 Ten percent of the workforce to be cut. How many 0:14:17.240 --> 0:14:17.960 people is that? 0:14:18.240 --> 0:14:18.839 Where is it? 0:14:20.080 --> 0:14:22.200 Yeah, So this is a company that ended last year 0:14:22.200 --> 0:14:24.800 with over one hundred and forty thousand people. So assuming 0:14:25.680 --> 0:14:28.400 this is company wide, we know it's a global according 0:14:28.440 --> 0:14:31.240 to Musk's email to staff, that would be more than 0:14:31.280 --> 0:14:35.160 fourteen thousand people. We're careful on that because Musk has 0:14:35.200 --> 0:14:37.720 been a little bit all over the place with his 0:14:37.800 --> 0:14:40.160 messaging in the past when he's made job cuts. 0:14:40.920 --> 0:14:43.320 Craig Trudell, we thank you so much. It's just been 0:14:43.360 --> 0:14:46.320 a phenomenal amount of reporting coming from both of you, gentlemen, 0:14:46.680 --> 0:14:49.320 and so thank you very much for setting the context. Meanwhile, 0:14:49.320 --> 0:14:52.560 coming up, Apple iPhone shipments falling ten percent in the 0:14:52.600 --> 0:14:56.200 March quarter, making it the worst sales slump since COVID. 0:14:56.640 --> 0:14:58.680 We're going to bring you the details next. Another key 0:14:58.720 --> 0:15:01.120 points drag on these benchmin Edward. You're watching on the 0:15:01.120 --> 0:15:01.960 micro level. 0:15:01.720 --> 0:15:03.320 Two little bit of MNA. 0:15:03.440 --> 0:15:08.800 Monday, Bloomberg reported that sales forces, according sources, looking at 0:15:08.800 --> 0:15:12.640 a deal for Informatica, and it's all about data capabilities. 0:15:12.680 --> 0:15:15.440 The stock down more than five percent on it. The 0:15:15.480 --> 0:15:18.520 street kind of likes it, but it's a deal. We're 0:15:18.520 --> 0:15:22.440 waiting on confirmation on Bloomberg said it could be reached 0:15:22.440 --> 0:15:24.800 this month, so let's stay tuned for that as we go. 0:15:25.120 --> 0:15:40.400 This is Bloomberg Technology. 0:15:42.120 --> 0:15:45.800 Apple, it's facing its worst iPhone slump since COVID as 0:15:45.880 --> 0:15:48.760 competition in the Chinese market really does heat up now. 0:15:48.840 --> 0:15:53.000 Third quarter shipments are apparently sliding worse than expected, almost 0:15:53.040 --> 0:15:55.800 ten percent, as the tech giant delivered fifty point one 0:15:55.920 --> 0:15:59.280 million phones, falling shy of Anna estemates of fifty one 0:15:59.280 --> 0:16:01.800 point seven mins. And Bloomberg's Mark Gumman joins us now 0:16:01.840 --> 0:16:05.080 with the context of who's providing us this data and 0:16:05.120 --> 0:16:08.280 what it means about Apple versus the other competitors. 0:16:10.000 --> 0:16:13.840 Yeah, so itc puts up their quarterly reports on smartphone shipments, 0:16:14.120 --> 0:16:17.920 and of course these are their analysis based insights into 0:16:17.920 --> 0:16:20.560 how many units for ships, so they don't know for sure. 0:16:20.640 --> 0:16:22.960 We'll get a better idea on May second, when Apple 0:16:23.000 --> 0:16:26.040 announces its earnings report, and then we'll get a better 0:16:26.080 --> 0:16:29.600 idea from the other phonemakers when they announce their earnings reports. 0:16:29.640 --> 0:16:33.600 But IDC is usually on target in terms of a 0:16:33.640 --> 0:16:37.280 general range or in terms of the overall theme, and 0:16:37.320 --> 0:16:40.200 the overall theme this time around is a nearly ten 0:16:40.240 --> 0:16:45.000 percent shipment decline on an annual basis for Apple. It's 0:16:45.360 --> 0:16:48.400 the most significant decline of any of the phonemakers they track. 0:16:49.240 --> 0:16:52.280 It indicates that Samsung is back in the number one 0:16:52.360 --> 0:16:56.240 global smartphone sales position, and it indicates that sales from 0:16:56.280 --> 0:17:00.880 some Chinese brands, one called Transition into particular, within over 0:17:01.040 --> 0:17:04.840 eighty percent year of a year sales increase, are really 0:17:04.880 --> 0:17:08.439 taking steam from Apple at this point. So if I 0:17:08.480 --> 0:17:10.640 were an Apple shareholder, it would be a little bit 0:17:10.680 --> 0:17:14.560 concerning to see the slump going on right now for 0:17:14.640 --> 0:17:17.320 the company, and it seems like most of it is 0:17:17.480 --> 0:17:19.760 China based, so we'll have to wait until May two 0:17:19.840 --> 0:17:20.440 to know for sure. 0:17:20.480 --> 0:17:23.800 However, all right, I believe most Mark, German chief correspondent 0:17:23.840 --> 0:17:24.480 covering Apple. 0:17:24.560 --> 0:17:24.840 Thank you. 0:17:24.880 --> 0:17:27.520 Let's keep the conversation going and bringing in Fionas and 0:17:27.600 --> 0:17:31.080 Kotta now who's senior market analyst at City Index, for 0:17:31.160 --> 0:17:33.640 her take on Apple, and Mark summed up the IDC 0:17:33.880 --> 0:17:36.800 data very well. You either put emphasis on the Apple 0:17:36.880 --> 0:17:41.040 specific data or you put emphasis on the market share 0:17:41.160 --> 0:17:44.440 data coming from the Chinese handset makers and how they 0:17:44.480 --> 0:17:50.240 had gains in sales. Where does your mind goes to first, Fiona, do. 0:17:50.240 --> 0:17:50.560 You know what? 0:17:50.640 --> 0:17:53.160 I think it's a really good idea to actually look 0:17:53.160 --> 0:17:55.760 at these two bits of data together because if you've 0:17:55.800 --> 0:18:00.920 got Apple falling and yet global smartphone shipments elsewhere increasing, 0:18:01.280 --> 0:18:04.080 I think that makes it an even more dramatically difficult 0:18:04.119 --> 0:18:08.160 position and picture for Apple. I mean, it really does 0:18:08.320 --> 0:18:12.000 highlight I think the extent of the problems that the 0:18:12.640 --> 0:18:15.159 Apple is facing, particularly surrounding the iPhone. 0:18:15.320 --> 0:18:16.879 And I think I mean, obviously. 0:18:16.600 --> 0:18:19.879 China here is a very big story. There is a 0:18:19.920 --> 0:18:23.480 lot of competition that Apple is facing in China. 0:18:23.560 --> 0:18:25.800 But I think there's also another side to this as well. 0:18:25.800 --> 0:18:28.760 I just feel that Apple is really behind just as 0:18:28.800 --> 0:18:32.840 Sara as Innovation is concerned, as Sarah's AI is concerned 0:18:33.000 --> 0:18:35.200 and all that's also playing out in the share price, 0:18:35.240 --> 0:18:38.320 which has really had a tough start to twenty twenty. 0:18:38.000 --> 0:18:41.320 Four two point seven trillion dollar market cap still but 0:18:41.440 --> 0:18:45.560 as along with Tesla are two key stories today, these 0:18:45.600 --> 0:18:48.000 two names in this so called Magnificent seven have been 0:18:48.040 --> 0:18:51.119 anything but magnificent. It feels like in the last month 0:18:51.240 --> 0:18:54.679 or so, certainly beginning of this year, Fiona, can Apple 0:18:55.240 --> 0:18:58.679 win back yours and other investors' hearts and minds if 0:18:58.720 --> 0:19:00.400 they are going to be able to show, look, we've 0:19:00.400 --> 0:19:03.040 got AI within the M four process, that we're going 0:19:03.040 --> 0:19:04.840 to be able to have it and you know, sometimes 0:19:04.880 --> 0:19:06.520 they're known to be a little bit slower but getting 0:19:06.520 --> 0:19:06.840 it right. 0:19:07.320 --> 0:19:07.919 Yeah, that's right. 0:19:07.960 --> 0:19:11.119 I mean, definitely a little bit slower. They feel like 0:19:11.320 --> 0:19:15.560 they're very slow to the AI party right now, and 0:19:16.080 --> 0:19:18.199 that's been sort of you know, punished by They've been 0:19:18.240 --> 0:19:20.320 punished by investors, and that I think, you know, has 0:19:20.359 --> 0:19:23.919 been part of that sell off that we've seen. I 0:19:23.960 --> 0:19:26.520 think there is a potential for this to turn around. 0:19:26.520 --> 0:19:28.200 I don't think this is the end of the line 0:19:28.280 --> 0:19:30.800 at all for Apple. I think, you know, we could 0:19:30.800 --> 0:19:33.280 see a good turnaround as long as they get their 0:19:33.400 --> 0:19:36.600 AI products really spot on. I think also sort of, 0:19:36.600 --> 0:19:41.080 you know, the geographical diversification into India is an area 0:19:41.160 --> 0:19:44.439 that again could be very interesting for Apple as it 0:19:44.560 --> 0:19:47.000 moves away from China. But at the end of the day, 0:19:47.200 --> 0:19:49.520 China is a massive in market and it's also a 0:19:49.640 --> 0:19:52.440 very important market. So it's going to be very interesting 0:19:52.480 --> 0:19:55.600 to see whether Apple can actually turn this around quickly 0:19:55.720 --> 0:19:58.000 without any support from really from China. 0:19:58.640 --> 0:20:01.639 Yeah, if you last night, Caroline and I regroup with 0:20:01.640 --> 0:20:03.399 a team and we're like, you know, what's the story 0:20:03.480 --> 0:20:07.240 going to be Monday? It looked like Apple, we had 0:20:07.240 --> 0:20:10.000 the geopolitics of what's happening in the Middle East, and 0:20:10.040 --> 0:20:13.840 then Tesla, and I'm trying to find a commonality between 0:20:13.880 --> 0:20:17.439 all of them. I think that the commonality is should 0:20:17.480 --> 0:20:19.480 we be talking more about the health of the global 0:20:19.480 --> 0:20:22.840 economy right now, particularly for consumer facing technology? 0:20:23.200 --> 0:20:24.000 Yes, exactly. 0:20:24.080 --> 0:20:26.920 So that's a really really important point here as well. 0:20:26.920 --> 0:20:30.720 I think the macro backdrop for these stocks is just 0:20:30.840 --> 0:20:32.760 not ideal right now. You know, if we have a 0:20:32.800 --> 0:20:35.720