WEBVTT - Tech IPO Market and Apple's iPad Revamp 0:00:01.440 --> 0:00:05.720 From Mahart where Innovation, money and power Collie in Silicon 0:00:05.840 --> 0:00:06.680 Vallet Nbon. 0:00:07.080 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.400 --> 0:00:26.560 I'm Caroline Hyde at Bloomberg's World head quarters in New 0:00:26.600 --> 0:00:29.000 York and Ourmed Ludlow in San Francisco. 0:00:29.200 --> 0:00:31.520 This is Bloomberg Technology. 0:00:31.080 --> 0:00:33.440 Coming up from private markets to public. 0:00:33.520 --> 0:00:35.960 We have got you covered data Bricks raising funds at 0:00:36.000 --> 0:00:39.040 are forty three billion dollar valuation, while instacart and of 0:00:39.080 --> 0:00:42.280 course it's filed for its IPO details ahead. 0:00:42.840 --> 0:00:46.360 Class Apple revamping the iPad pro for the first time 0:00:46.520 --> 0:00:48.400 in half a decade. We'll have more on the iPhone 0:00:48.400 --> 0:00:51.680 makers plans to spark growth for the tablet market. 0:00:51.960 --> 0:00:55.760 And SpaceX's Dragons successfully docks with the International Space Station, 0:00:56.160 --> 0:00:59.440 marking its seventh human spaceflight mission to the ISS. 0:00:59.440 --> 0:01:01.840 But what's next EEno Musk's. 0:01:01.520 --> 0:01:04.800 Company will discuss, but first as checking on these public 0:01:04.880 --> 0:01:06.720 markets and they're here. And then now the volumes are 0:01:06.720 --> 0:01:08.720 still thin. It's the end of August. We're down about 0:01:08.760 --> 0:01:11.240 twenty five percent, but remember how far we've actually fallen 0:01:11.319 --> 0:01:13.119 the Mange benchmarks in fact, and that's that on course 0:01:13.120 --> 0:01:15.880 for its worst month since well the beginning of the year, 0:01:15.959 --> 0:01:18.880 we're down about four percent. Today we're just ebbed a 0:01:18.959 --> 0:01:21.120 little bit higher, up about four tens percent. But as 0:01:21.160 --> 0:01:23.200 I say, low volumes at the moment, the two year 0:01:23.280 --> 0:01:25.880 yields stabilizing. We're just down by about one basis point, 0:01:26.040 --> 0:01:28.479 but still above that five percentage point level. How fast 0:01:28.520 --> 0:01:30.520 we have run up in terms of those borrowing costs. 0:01:30.800 --> 0:01:31.839 Now, of course, all. 0:01:31.720 --> 0:01:33.479 Eyes and what China is trying to do to stoke 0:01:33.560 --> 0:01:35.920 its economy at the moment, and it managed to fizzle 0:01:35.920 --> 0:01:37.800 out a little bit in terms of Chinese trading. They 0:01:37.880 --> 0:01:40.039 put some emphasis in trying to support the economy, and 0:01:40.080 --> 0:01:42.280 we are seeing that pull over a little bit into 0:01:42.319 --> 0:01:44.360 some of those Chinese names that are traded here in 0:01:44.360 --> 0:01:46.760 the United States. But again it has fallen off hard 0:01:46.800 --> 0:01:48.960 over the last few training days. Today we stabilize and 0:01:49.080 --> 0:01:51.040 the now's that golden dragon. I'm seeing up more than 0:01:51.080 --> 0:01:53.440 two percentage points some of those internet names traded here. 0:01:53.480 --> 0:01:55.440 Let's move on, look what's happening in the world of crypto, 0:01:55.440 --> 0:01:57.720 because remember that took a tumble in the last couple 0:01:57.760 --> 0:01:58.880 of weeks, and I want to shine a light in 0:01:58.880 --> 0:02:00.920 the fact that we are actually stayed at a new level. 0:02:00.960 --> 0:02:02.600 It feels like ED and we've come down a lem 0:02:02.600 --> 0:02:05.160 percent from that thirty twenty nine thousand level. 0:02:05.200 --> 0:02:07.639 We're nowvo just in a range bound. 0:02:07.760 --> 0:02:09.680 Twenty six thousand seems to be your number at the 0:02:09.680 --> 0:02:13.160 moment as we have all eyes on the macro policy perspective. 0:02:13.240 --> 0:02:14.680 But go into the micro for a moment. 0:02:15.200 --> 0:02:18.080 Yeah, no crazy moves for specific names. But there are 0:02:18.120 --> 0:02:20.040 tech stories from all over the world. So x Pong 0:02:20.200 --> 0:02:22.880 Chinese EV maker, nice bit of m and A buying 0:02:22.960 --> 0:02:26.200 DD's smart auto business that seems to be supporting the 0:02:26.280 --> 0:02:30.040 US listed shares or ADRs for that Chinese EV name. 0:02:30.160 --> 0:02:32.799 Apple's basically flat now. But later in the program, Mark 0:02:32.840 --> 0:02:35.400 Gumman's going to bring us his latest power on. He's 0:02:35.440 --> 0:02:38.840 giving us reporting about the next gen iPad pro coming 0:02:38.880 --> 0:02:41.880 twenty twenty four, some new specs that we're looking out for. 0:02:42.120 --> 0:02:45.200 Two other names moving related largely to analyst calls. But 0:02:45.240 --> 0:02:46.560 I want to bring you a new name we haven't 0:02:46.560 --> 0:02:50.200 discussed on the show, which is Nerdy ticker NRD. Why 0:02:50.440 --> 0:02:53.520 why am I picking out Nerdy? You know why? Because 0:02:53.560 --> 0:02:57.720 I'm nerdy. But it's an education online platform. Raymond James 0:02:57.880 --> 0:03:01.040 reinitiated with an outperformed lots of growth, it thinks because 0:03:01.080 --> 0:03:03.959 it's moving to a subscription model powered by guess what 0:03:04.240 --> 0:03:08.640 AI in Nvidia has been resumed by another or initiated 0:03:08.639 --> 0:03:12.200 sorry with another buyer rating at sealand Securities. The story 0:03:12.240 --> 0:03:15.120 last week, remember was that had finally shaken off it's 0:03:15.160 --> 0:03:17.920 our cell rating. We continued to see sales side names 0:03:17.919 --> 0:03:20.799 bullish on Nvidia as the AI leader in semis. Those 0:03:20.800 --> 0:03:23.480 are the public sort of stories and movers that we're 0:03:23.480 --> 0:03:24.000 looking at in. 0:03:23.919 --> 0:03:24.840 The private space. 0:03:25.040 --> 0:03:28.240 Data Bricks, the closely held software maker widely viewed as 0:03:28.240 --> 0:03:31.000 a candidate to go public, is in discussions with tiro 0:03:31.200 --> 0:03:34.200 Price about a new funding round that would value the 0:03:34.240 --> 0:03:38.760 company at forty three billion dollars. That according to Bloomberg sources. 0:03:38.880 --> 0:03:41.880 Bloomberg's Katie Roof with us she has that story, Katie, 0:03:41.880 --> 0:03:43.000 What other details do we have? 0:03:44.360 --> 0:03:44.640 Sure? 0:03:44.760 --> 0:03:48.440 Yeah, So, as we reported that tiro Prices and talks 0:03:48.480 --> 0:03:51.120 to potentially lead an investment that would be an up 0:03:51.240 --> 0:03:53.400 round a forty three billion. We don't see a lot 0:03:53.400 --> 0:03:55.680 of those these days. It was last valued around thirty 0:03:55.720 --> 0:03:59.040 eight billion in twenty twenty one. You know, there aren't 0:03:59.040 --> 0:04:03.080 a lot of free IPO companies that can even raise 0:04:03.600 --> 0:04:06.960 at all, let alone at an increase valuation. But you 0:04:07.000 --> 0:04:11.320 know a lot of people are drawing comparisons to Snowflake, 0:04:11.360 --> 0:04:15.160 which is almost a fifty billion dollar company. Data Bricks 0:04:15.280 --> 0:04:19.400 also has been getting more involved in artificial intelligence, which 0:04:19.400 --> 0:04:23.600 is obviously a hot space. They recently acquired Mosaic and 0:04:24.040 --> 0:04:28.240 artificial intelligence business that targets enterprises for over a billion dollars. 0:04:28.279 --> 0:04:31.160 And so what we understand is they've had a lot 0:04:31.160 --> 0:04:35.000 of inbound interest with investors trying to invest, trying to 0:04:35.040 --> 0:04:37.040 get in what could be the last round before they 0:04:37.040 --> 0:04:39.479 go public, and yeah, it's looking like it could fall 0:04:39.520 --> 0:04:40.560 at forty three billion. 0:04:41.200 --> 0:04:42.880 Well let's take into that a bit deeper. This is 0:04:42.880 --> 0:04:45.880 interesting timing because a lot of companies that are now 0:04:45.920 --> 0:04:48.800 in the IPO discussion may have done a down round 0:04:48.880 --> 0:04:51.720 in the last two years, but they're raising or they're 0:04:51.720 --> 0:04:55.160 looking to do something at this interesting valuation pre IPO. 0:04:55.320 --> 0:04:58.480 What do we know about Data bricks near term intentions 0:04:58.760 --> 0:04:59.520 to go public? 0:05:00.839 --> 0:05:04.000 So you know, usually I would say if a company 0:05:04.240 --> 0:05:07.080 is raising money, they're not on the verge of IPO 0:05:07.240 --> 0:05:10.320 because you don't want to dilute your ownership right ahead 0:05:10.320 --> 0:05:13.640 of an IPO. So this to me is a signal 0:05:13.760 --> 0:05:16.840 that they might be delaying their IPO further. And now 0:05:16.920 --> 0:05:19.720 Data Bricks obviously is a company at scale. They have 0:05:20.000 --> 0:05:22.880 the kind of revenue that's necessary to go public, but 0:05:23.279 --> 0:05:25.800 they also don't have to go public because they're able 0:05:25.839 --> 0:05:28.480 to keep you know, raising capital in the private markets, 0:05:28.520 --> 0:05:32.520 and so they just haven't. They don't have that impression 0:05:32.920 --> 0:05:35.919 that pressure just yet. But certainly they are a company 0:05:35.920 --> 0:05:38.719 that we expect to go public at some point someday. 0:05:39.520 --> 0:05:41.720 And of course we all wait with bated breath as 0:05:41.720 --> 0:05:43.920 to the reopening of the IPO market. We've got Arm, 0:05:43.920 --> 0:05:46.599 of course waiting. We've got the likes of instacar, where 0:05:46.600 --> 0:05:48.960 we've got the details, the devil in the detail and 0:05:49.080 --> 0:05:51.400 coming in their latest numbers in the finding of the 0:05:51.400 --> 0:05:52.440 IPO on Friday. 0:05:52.480 --> 0:05:54.400 What did we learn from that overall? 0:05:54.480 --> 0:05:59.080 Katie Right, So we've got ARM, Instacart, Quavio, all of 0:05:59.080 --> 0:06:01.600 them came out with IPO filings last week. It's going 0:06:01.640 --> 0:06:05.320 to be busy for tech IPOs. Instacart was interesting, you know, 0:06:05.400 --> 0:06:08.240 I had mentioned the other day on Bloomberg TV, I 0:06:08.279 --> 0:06:10.479 was hearing that their financials were better than what people 0:06:10.520 --> 0:06:13.719 were thinking, and it turns out they were profitable. They 0:06:14.160 --> 0:06:18.320 had you know, revenue growth and managed to make money, 0:06:18.320 --> 0:06:21.840 which is pretty rare for tech companies and newly public 0:06:21.920 --> 0:06:25.279 tech companies, so that surprised the folks. But what we 0:06:25.440 --> 0:06:28.920 learned is they're getting a strategic investment from Pepsi COO 0:06:28.960 --> 0:06:31.160 of one hundred and seventy five million, so obviously that's 0:06:31.200 --> 0:06:34.360 a voto confidence in the industry. But we also learned 0:06:34.360 --> 0:06:36.839 that they've made a shift in their business model or 0:06:36.839 --> 0:06:38.200 they've added. 0:06:37.920 --> 0:06:38.960 New lines of business. 0:06:39.000 --> 0:06:43.600 They've really been focusing on e commerce technology, software that 0:06:43.680 --> 0:06:47.760 can help with logistics and other analytics, and also focused 0:06:47.760 --> 0:06:53.640 on advertisers, so they're really expanding beyond just giving you groceries, 0:06:53.640 --> 0:06:55.240 which they absolutely still do. 0:06:55.720 --> 0:06:58.280 Pgcimo already coming into bed when it comes to leadership 0:06:58.279 --> 0:06:58.760 that company. 0:06:58.800 --> 0:06:59.600 We thank you so much. 0:06:59.680 --> 0:07:02.600 kJ if they're really detailing some of the news we've 0:07:02.600 --> 0:07:04.800 got Friday and then throughout the weekend, let's carry it 0:07:04.839 --> 0:07:06.960 on a little bit in terms of what the IPO 0:07:07.040 --> 0:07:09.480 market's gearing itself for. Rgi Goring when police to say, 0:07:09.560 --> 0:07:11.800 joins us, she's been leading the IPO practice over earned 0:07:11.840 --> 0:07:14.840 some young Americas. You've got twenty years experience and really 0:07:14.880 --> 0:07:19.440 guiding companies at this pivotal moment in their direction or travel. 0:07:19.600 --> 0:07:22.080 I know we won't dwell on individual names and individual 0:07:22.080 --> 0:07:24.440 business models, but ultimately, when we're seeing a company at 0:07:24.480 --> 0:07:27.600 instacrat that's had to put off going public, had to 0:07:27.760 --> 0:07:31.559 take cuts to its market valuation, how important is this moment? 0:07:32.800 --> 0:07:35.440 I think it's a really important moment for the broader 0:07:35.480 --> 0:07:40.040 IPO market and particularly the tech IPO market. It's certainly 0:07:40.200 --> 0:07:45.360 a predictable way of having a market reopening occur with 0:07:45.640 --> 0:07:49.880 the anticipated deals that everyone is expecting over the coming weeks. 0:07:50.400 --> 0:07:54.840 And you know, there's three common theme themes that these 0:07:54.840 --> 0:07:58.000 companies are sharing that are coming to market right now. 0:07:58.360 --> 0:08:00.600 One and that you are we're just speaking of this 0:08:00.960 --> 0:08:05.960 profitability scale and then name brand recognition. These are all 0:08:06.120 --> 0:08:11.120 factors that investors are finding important in today's environment and 0:08:11.240 --> 0:08:12.200 placing a premium on. 0:08:13.840 --> 0:08:14.119 Rachel. 0:08:14.200 --> 0:08:17.200 Good morning to you from San Francisco. Look from a 0:08:17.240 --> 0:08:20.640 new cycle perspective, a lot seems to have happened since 0:08:20.840 --> 0:08:25.160 ARM made its move. If ARM makes the jump and lists, 0:08:25.800 --> 0:08:28.760 do you think mechanically lots of listings will follow in 0:08:28.840 --> 0:08:31.480 quick succession. It's kind of like a game of brinkmanship. 0:08:31.800 --> 0:08:34.360 Who can jump first and see if the others will follow. 0:08:35.920 --> 0:08:37.920 I don't know that it's one company that's going to 0:08:37.960 --> 0:08:42.320 make a massive reopening, but it's certainly a start that 0:08:42.360 --> 0:08:45.120 we need to have occur. But like I said, what 0:08:45.280 --> 0:08:48.760 investors are really paying close attention to right now and 0:08:48.880 --> 0:08:53.400 are rewarding our companies that are profitable or if not 0:08:53.480 --> 0:08:57.480 yet profitable, a very clear path to profitability. So we're 0:08:57.480 --> 0:09:00.520 not in that growth at all cost environment we were, 0:09:00.800 --> 0:09:03.600 you know, just eighteen twenty four months ago. So it's 0:09:03.640 --> 0:09:05.760 those companies that are going to really lead the way 0:09:06.640 --> 0:09:10.800 in paving the way for the next entrance of IPO aspirants. 0:09:11.360 --> 0:09:13.760 You know, Caroline, there are two sides of the table 0:09:14.240 --> 0:09:16.640 in any transaction, and you and I know quite a 0:09:16.640 --> 0:09:20.679 few venture capitalysts that really want this to happen, really 0:09:20.720 --> 0:09:21.960 want this window to open. 0:09:22.440 --> 0:09:24.640 Yeah, boy, they've been waiting for these exits. It can't 0:09:24.640 --> 0:09:25.440 all be about M and A. 0:09:25.480 --> 0:09:27.800 And there's not much of that either, And Rachel, to 0:09:27.800 --> 0:09:30.520 that point, we're hearing that there is a lot of 0:09:30.520 --> 0:09:33.439 stress in the bench capital environment and a lot of 0:09:33.520 --> 0:09:36.760 them are raised huge funds that they're now juster really 0:09:36.760 --> 0:09:38.880 trying to allocate in this environment as well. What did 0:09:38.880 --> 0:09:40.520 you make of the fact that Data Brooks, a big 0:09:40.520 --> 0:09:42.880 company in the private market, is also able to raise 0:09:43.320 --> 0:09:46.840 in the private environment at the moment, where do you 0:09:46.880 --> 0:09:49.959 think the real rubber meets the road for some of 0:09:50.000 --> 0:09:53.400 these companies that can still fundraise, perhaps not going for 0:09:53.440 --> 0:09:54.559 an IPO at this moment. 0:09:55.480 --> 0:09:59.079 Yeah, well, I mean a few things that it tells me. One, 0:09:59.280 --> 0:10:03.040 there is money to be deployed out there. But venture 0:10:03.080 --> 0:10:06.240 capitalists investors broadly are being very discerning and where they 0:10:06.240 --> 0:10:12.320 deploy that capital, so investing in companies that they feel 0:10:12.360 --> 0:10:16.520 have a strong growth story. The merits behind the transaction 0:10:16.600 --> 0:10:21.040 are being very much reviewed and and so forth. So 0:10:21.120 --> 0:10:24.320 we're not seeing the volumes of investments that we have 0:10:24.400 --> 0:10:29.560 seen before, but we're seeing very targeted interests, particularly around 0:10:29.600 --> 0:10:32.600 key technologies such as AI and so forth. So there's 0:10:32.640 --> 0:10:34.760 continues to be a strong investor focus. 0:10:34.559 --> 0:10:39.320 In that investors focused on AI. How focused to you 0:10:40.520 --> 0:10:44.359 on China and the impacts of the Chinese economy on confidence? 0:10:46.080 --> 0:10:50.920 Well, the geopolitical tensions are continuing to be there still. 0:10:50.960 --> 0:10:53.719 I can speak more to the US market, and the 0:10:54.080 --> 0:10:57.320 US market is very dominant, continue to be you know, 0:10:57.480 --> 0:11:01.640 the place that most companies want to to lift, and 0:11:01.920 --> 0:11:04.880 companies are going to still continue to navigate the broader 0:11:04.920 --> 0:11:09.760 geopolitical environment as well as many other factors that have 0:11:09.840 --> 0:11:12.440 been impacting companies for the past twenty four months. 0:11:13.480 --> 0:11:16.960 Rachel Garing, IPO leader Ernst and Young America's great insight 0:11:17.000 --> 0:11:19.720 and finally bit of activity in this space. Good to 0:11:19.720 --> 0:11:30.520 have you on the program. Fox con founder Terry Goer 0:11:30.640 --> 0:11:34.680 has joined a crowded race to become Taiwan's next president, 0:11:34.720 --> 0:11:36.920 in the process up ending an election that will have 0:11:37.080 --> 0:11:41.000 wide ranging implications for security in the Western Pacific. The 0:11:41.040 --> 0:11:44.960 tech billionaire denied Beijing could pressure him through his extensive 0:11:45.000 --> 0:11:49.000 operations in the country, which include much of Apple's supply chain. 0:11:49.480 --> 0:11:52.400 Speaking of Apple, the company working on a revamped iPad 0:11:52.440 --> 0:11:55.040 pro for next year. It's first major overhaul of that 0:11:55.120 --> 0:11:57.920 product in half a decade. From all, let's bring in 0:11:57.920 --> 0:12:00.719 Bloomberg's Mark Gunman. You brought us those details in the 0:12:00.800 --> 0:12:03.360 latest power on the keyp It for me is M 0:12:03.440 --> 0:12:04.120 three chip. 0:12:04.320 --> 0:12:06.880 Right. Every time they have a new generation of chip. 0:12:06.679 --> 0:12:11.400 They have more CPU, cause more graphics, cause more memory. 0:12:12.120 --> 0:12:14.360 But this is a major hardware overhaul. 0:12:15.520 --> 0:12:17.679 This is a major hardware overhaul. I mean, as you know, 0:12:17.800 --> 0:12:20.839 the iPad market, or more generally, the tablet market has 0:12:20.880 --> 0:12:24.360 been in a bit of a funk lately. Right Shipments 0:12:24.400 --> 0:12:27.040 for the overall tablet market were down thirty percent you 0:12:27.040 --> 0:12:30.360 overy year in the second quarter. iPad revenue has been 0:12:30.400 --> 0:12:33.880 down several quarters in a row. Actually, in the third quarter, 0:12:34.120 --> 0:12:36.640 iPad revenue was its lowest since the cusps of the 0:12:36.640 --> 0:12:39.800 pandemic in the beginning of twenty twenty. Apple is really 0:12:39.840 --> 0:12:42.559 hoping that this new iPad Pro, which will come out 0:12:42.559 --> 0:12:44.960 in the first half of next year twenty twenty four, 0:12:45.240 --> 0:12:47.760 will sort of rejuvenate sales with a new design. 0:12:48.160 --> 0:12:49.160 They're going to be moving. 0:12:49.240 --> 0:12:51.400 This is the most significant thing, I think, to OLED 0:12:51.480 --> 0:12:54.920 displays for the first time in an iPad. If you 0:12:54.960 --> 0:12:58.400 remember the move from LCD to OLED in the iPhone 0:12:58.440 --> 0:13:02.080 ten in twenty seventeen, it's a really significant change. So 0:13:02.160 --> 0:13:04.720 now the iPhone of the iPad will use the same 0:13:04.800 --> 0:13:08.319 screen technology. That's going to be a really robust upgrade 0:13:08.520 --> 0:13:11.360 of that M three chip you mentioned, but also more 0:13:11.440 --> 0:13:14.720 laptop like capabilities. There's going to be a new magic 0:13:14.800 --> 0:13:18.480 keyboard attachment. They'll probably price it anywhere between three hundred 0:13:18.480 --> 0:13:21.840 and four hundred dollars, But it'll essentially turn your iPad 0:13:21.880 --> 0:13:24.840 into a laptop. This new version will likely have a 0:13:24.880 --> 0:13:27.800 function row at the top like a Mac, and it'll 0:13:27.840 --> 0:13:28.400 also have a. 0:13:28.320 --> 0:13:29.319 Bigger track pad. 0:13:29.679 --> 0:13:31.840 So this is clearly going to be aimed at iPad 0:13:31.920 --> 0:13:34.400 power users, and I'm excited to get my hands on 0:13:34.400 --> 0:13:35.479 one as well. 0:13:35.600 --> 0:13:38.400 Mark, how many other people are excited to get their 0:13:38.400 --> 0:13:40.520 hands on iPads at the moment because it has been 0:13:40.559 --> 0:13:43.240 an area that just hasn't been firing on all cylinders 0:13:43.240 --> 0:13:43.640 for Apple. 0:13:44.360 --> 0:13:45.319 Yeah, that's a good question. 0:13:45.360 --> 0:13:47.880 Well, anyone who's a big iPad pro user and has 0:13:47.920 --> 0:13:51.400 had an iPad since twenty eighteen, that was the last 0:13:51.440 --> 0:13:54.800 time they redesigned the iPad Pro, We're coming up on 0:13:54.920 --> 0:13:58.079 five years, right, They introduced that in October of twenty eighteen, 0:13:58.520 --> 0:14:00.920 So we'll get this big revamp within five years of 0:14:00.960 --> 0:14:03.080 that window. So I think anyone on a twenty eighteen 0:14:03.160 --> 0:14:06.640 model or even a twenty twenty model like myself could 0:14:06.640 --> 0:14:09.040 be looking to upgrade to this next generation. So I 0:14:09.040 --> 0:14:11.400 think they're going to get a pretty significant upgrade cycle, 0:14:11.559 --> 0:14:14.840 at least for an iPad for this new range. 0:14:16.200 --> 0:14:18.640 If you go on Apple's website and you click on 0:14:18.679 --> 0:14:21.640 the iPad section and you put compare. There is just 0:14:21.760 --> 0:14:25.600 infinite possibilities. Mark, there are so many iPads, they all 0:14:25.640 --> 0:14:28.440 are quite similar and very different, and you write and 0:14:28.480 --> 0:14:30.400 power on that. That's been a bit of a tricky 0:14:30.440 --> 0:14:31.520 situation for Apple. 0:14:32.680 --> 0:14:35.440 Well, when you're a customer, right, and you're not ingrained 0:14:35.520 --> 0:14:38.440 in this ecosystem like I maybe or you twoe might be, 0:14:38.600 --> 0:14:41.000 you really don't know what to buy. And a lot 0:14:41.080 --> 0:14:45.280 of these iPads are very similar or they're very differentiated 0:14:45.320 --> 0:14:47.960 by a couple hundred dollars, but with very minor tweaks 0:14:47.960 --> 0:14:50.560 in between. So it's unclear if you should buy the 0:14:50.880 --> 0:14:53.520 base ten generation iPad, should you buy the eleven inch 0:14:53.560 --> 0:14:56.880 iPad Pro, should you buy the iPad air right, And 0:14:56.920 --> 0:14:59.640 so I'm not sure that this new iPad pro will 0:14:59.680 --> 0:15:03.160 doom much to fix that problem with perhaps too many iPads, 0:15:03.200 --> 0:15:07.280 too many choices, and lack of clarity between the many options. 0:15:07.480 --> 0:15:09.640 But what it will do is it'll help differentiate the 0:15:09.680 --> 0:15:12.560 iPad Pro and make that more of a halo product 0:15:12.560 --> 0:15:14.880 at the top of the line. It maybe push more 0:15:14.920 --> 0:15:17.520 people to the high end, which of course would raise 0:15:17.560 --> 0:15:21.080 overall Apple asps and overall Apple revenue. 0:15:21.600 --> 0:15:24.920 At a time, while we question maybe some costs going 0:15:25.000 --> 0:15:27.160 up for Apple as it has to rejigger mark it's 0:15:27.320 --> 0:15:29.840 entire supply chain. You did a really great deep dive 0:15:29.840 --> 0:15:32.840 Bloomberg did and its big take about how much this 0:15:32.920 --> 0:15:36.480 is really changing the environment for making this equipment across 0:15:36.480 --> 0:15:37.800 the whole evasion, not just China. 0:15:38.800 --> 0:15:39.000 Yeah. 0:15:39.000 --> 0:15:41.760 The interesting thing about what we've discovered based on the 0:15:41.840 --> 0:15:44.280 data is something we've been talking about or I've been 0:15:44.280 --> 0:15:44.920 talking about. 0:15:44.760 --> 0:15:45.520 For a long time. 0:15:46.080 --> 0:15:50.640 Apple is not necessarily moving out of China, but it's 0:15:50.720 --> 0:15:53.560 augmenting its operation outside of China. So you're not seeing 0:15:53.600 --> 0:15:57.200 many new product lines being developed in China. You're seeing 0:15:57.360 --> 0:15:59.600 a lot of status quo in China. So the number 0:15:59.600 --> 0:16:02.520 of supply in China for Apple, the number of production sites, 0:16:02.880 --> 0:16:06.000 it has stayed stagnant, right, It hasn't really gone down. 0:16:06.400 --> 0:16:09.400 But in terms of Apple's growth, all that growth that's 0:16:09.440 --> 0:16:12.720 happening in Vietnam, that's happening in India, the new lower 0:16:12.800 --> 0:16:15.040 en iPhone models. You're seeing a lot of production in 0:16:15.040 --> 0:16:18.040 India as they need additional units for those regions. You're 0:16:18.040 --> 0:16:21.840 seeing production in India. You're seeing Apple Watch production in 0:16:22.120 --> 0:16:25.640 places like Vietnam, you're seeing new types of macs being 0:16:25.680 --> 0:16:28.560 produced in Malaysia. So you're seeing China sort of stays 0:16:28.560 --> 0:16:32.080 stagnant for apple but not growing. Right, So the future 0:16:32.240 --> 0:16:35.200 of apple production and supply chain is in China. It's 0:16:35.240 --> 0:16:40.800 the places around China. It's the Indias of the world, Malaysia, Vietnam, Thailand. 0:16:40.840 --> 0:16:44.960 To a lesser extent, there's some work being done in Japan. Right, 0:16:45.120 --> 0:16:48.480 So that's really the story here China, Apple, China that's 0:16:48.480 --> 0:16:51.560 staying the same, but all that growth that's happening elsewhere 0:16:52.280 --> 0:16:53.000 really interesting. 0:16:53.040 --> 0:16:54.160 Mark, thank you so much. 0:16:54.200 --> 0:16:56.040 It's going to have you back, Mark gam And on 0:16:56.120 --> 0:16:58.320 all things Apple and its supply chain now just focusing 0:16:58.320 --> 0:17:00.400 in on supply chain. Of course, all of this amitted 0:17:00.400 --> 0:17:03.360 geopolitical tension of US and China. And we know the 0:17:03.400 --> 0:17:06.360 earlier US Common Secretary Ginia Romando was meeting with her 0:17:06.440 --> 0:17:09.760 Chinese counterpart. It's all part of the Biden administration's effort 0:17:09.760 --> 0:17:11.840 to or try and reduce some of the tensions between 0:17:11.840 --> 0:17:14.840 the world's two largest economies China. It says it was 0:17:15.080 --> 0:17:18.240 a frank meeting, a constructive meeting, talking about tariffs, talking 0:17:18.240 --> 0:17:21.000 about chip policy. Rondo, of course, had been looking to 0:17:21.040 --> 0:17:22.160 stabilize the relations. 0:17:22.160 --> 0:17:23.679 Just take a listen to what she said before. 0:17:24.760 --> 0:17:29.760 We agree to establish a new Commercial Issues Working Group, 0:17:30.160 --> 0:17:34.840 a formal working group which will involve US and Chinese 0:17:34.880 --> 0:17:40.680 government officials and very importantly US and Chinese commercial private 0:17:40.720 --> 0:17:45.600 sector representatives as we seek solutions on trade and investment 0:17:45.680 --> 0:17:50.040 issues and to advance US commercial interests in China. 0:17:50.160 --> 0:17:52.920 Understand, megan to be meeting at least once a year. Now, 0:17:52.960 --> 0:17:56.520 coming up, let's talk bitcoin. So like a teenager in 0:17:56.560 --> 0:17:59.879 need of its sugar high. According to Bloomberg Intelligence, how 0:18:00.240 --> 0:18:41.399 all the details next, there's a room technology. 0:18:23.840 --> 0:18:25.000 Time now for talking tech. 0:18:25.080 --> 0:18:27.040 First up, soft Bang, Well, it's going to take a 0:18:27.040 --> 0:18:29.920 group of its Indian startup founders to Silicon Balley. 0:18:29.960 --> 0:18:32.000 That's next month for an AI tour. 0:18:32.359 --> 0:18:34.320 Now, this is all as the Japanese investor is stepping 0:18:34.400 --> 0:18:37.199 up its efforts to really infuse its portfolio companies with 0:18:37.280 --> 0:18:41.200 the technology. Meanwhile, x Pun shares they sword after it 0:18:41.320 --> 0:18:44.000 agreed to buy DD's smart car development art Now. The 0:18:44.040 --> 0:18:46.840 deal both eliminates a potential competitor in the crowded EV 0:18:46.960 --> 0:18:50.840 market and gives US a tech savvy partner a new venture. 0:18:51.359 --> 0:18:53.240 Plus more on evs. 0:18:52.880 --> 0:18:57.880 Now Japan's advanced electric battery technology company Noko is now 0:18:57.920 --> 0:18:59.080 training on the Nasdaq. 0:18:59.160 --> 0:19:01.560 It plans to enter the demestic leasing business with evs 0:19:01.600 --> 0:19:02.200 that use. 0:19:02.080 --> 0:19:06.840 As battery separated technology to help improve longevity and hate resistance. 0:19:06.960 --> 0:19:08.440 And I know that's all of. 0:19:08.359 --> 0:19:10.960 Your focus point in evs, but now we're going to 0:19:11.000 --> 0:19:13.240 some of my focus point, right yeah, And. 0:19:13.240 --> 0:19:15.840 Let me take you back to twenty seventeen. That's when 0:19:15.840 --> 0:19:19.200 Bitcoin first reached its current level relative to the Nasdaq 0:19:19.200 --> 0:19:23.000 one hundred stock index. The question can crypto now outperform? 0:19:23.040 --> 0:19:26.879 A Bloomberg Intelligence note out today says it's unlikely. Federal 0:19:26.880 --> 0:19:29.720 funds futures in one year hovering around five percent and 0:19:29.760 --> 0:19:33.480 deflating producer prices are very different from that past easy 0:19:33.560 --> 0:19:36.000 money day that Bitcoin grew up in. Let's bring in 0:19:36.040 --> 0:19:38.800 Mike mcgloan from BI who wrote this peek and Mike, 0:19:38.920 --> 0:19:43.240 you write your latest note. Bitcoin's a teenager and may 0:19:43.320 --> 0:19:44.480 miss its sugar high. 0:19:44.520 --> 0:19:45.399 What are you talking about? 0:19:46.200 --> 0:19:48.800 Well, Hello, I think I guess you can appreciate. I've 0:19:48.880 --> 0:19:50.400 raised a few teenagers there. 0:19:50.320 --> 0:19:51.200 Are not adults. 0:19:51.200 --> 0:19:53.679 But the bottom line in our marketers is never forget 0:19:53.720 --> 0:19:56.359 from where you're from and what got you there. So 0:19:56.720 --> 0:19:58.600 I look over at that tun your note every day 0:19:58.600 --> 0:20:01.400 and I see it's a giant sucking sound for risk 0:20:01.440 --> 0:20:04.720 assets and bitcoins. When the risky assessets in bitcoins whole premise, 0:20:04.760 --> 0:20:08.400 it's whole lifetime. It's been under a zero or very 0:20:08.440 --> 0:20:10.960 low interest rate environment. Now interest rates are very high 0:20:11.000 --> 0:20:13.879 and attractive. So then I look at performance far. How 0:20:13.960 --> 0:20:16.680 much has bitcoin performed? Well, okay, the best in history. 0:20:16.920 --> 0:20:18.560 If you look at the first time it traded a 0:20:18.640 --> 0:20:21.520 dour that was around twenty eleven, it's up twenty six 0:20:21.640 --> 0:20:24.560 thousands times that. So to me, the risk is greater 0:20:25.240 --> 0:20:29.600