WEBVTT - Dan Ives Talks Apple's "BlackBerry Moment"

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>Okay, so missus Keane darkens the door at the new

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<v Speaker 2>Dior store this weekend, and she's feel feeling guilty after unloading.

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<v Speaker 2>They even fetter. She spent so much money. She's feeling guilty,

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<v Speaker 2>So she goes out to snow Milk.

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<v Speaker 1>To buy me some Dan ives merch. It's handbrin of details.

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<v Speaker 2>One of a kind, finishes optimism and individuality. Only a

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<v Speaker 2>few made, no restocks. The biggest size is to excel.

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<v Speaker 2>Dan tell snow Milk they got to get with it.

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<v Speaker 2>We need larger sizes again.

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<v Speaker 3>And there's also there's gonna be a special Keen edition

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<v Speaker 3>of this which still.

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<v Speaker 1>Is a slotted into a five excel tall. Okay, legs

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<v Speaker 1>like to stick champion.

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<v Speaker 2>Okay, reverse, we tell the people snow Milk to get

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<v Speaker 2>their right together, Okay. Jeremy Cohn, Fortune Magazine writes a

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<v Speaker 2>Perplexity mentions Man Deep sing Bloomberg Intelligence. You've been all

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<v Speaker 2>weekend over with gott at the dust start saying that

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<v Speaker 2>Apple's gotta buy Perplexity, Explain why.

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<v Speaker 3>Look, the reality is, if you look at Apple, they're

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<v Speaker 3>missing this f one race that's happening in AI with

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<v Speaker 3>the rest of Big Tach and cook Es centuries on

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<v Speaker 3>a park bench.

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<v Speaker 1>Why is perplexity different.

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<v Speaker 3>Perplexity is ultimately the algorithms, the model, the developers, the

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<v Speaker 3>technology that would give Apple a huge weep to where

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<v Speaker 3>they are today because the reality is better change me

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<v Speaker 3>playing Ryder Cup Beth Baite in September than Apple developing

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<v Speaker 3>AI internally.

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<v Speaker 1>And I'm Jeremy conn is great at this formerly with

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<v Speaker 1>Bloomberg London.

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<v Speaker 2>So Dan, if they buy Perplexity, that only is like

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<v Speaker 2>search tell me, you know, Paul, can you know go in,

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<v Speaker 2>tell me what a.

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<v Speaker 1>Vesper ticket looks like in the New Jersey.

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<v Speaker 2>Sure, then they would bolt on other more video like

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<v Speaker 2>and more GPT like things we.

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<v Speaker 3>And then we view it to two. Parter one is

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<v Speaker 3>the Perplexity deal. In two, despite anti trust and everything

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<v Speaker 3>going on from a regulatory you double down on Google

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<v Speaker 3>in terms of the Gemini partnership.

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<v Speaker 4>I mean that to me, that is the holy timeline.

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<v Speaker 4>I mean, I believe this.

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<v Speaker 3>Has to happen in the next four to six months

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<v Speaker 3>because Tom, the thing, I mean, you've talked, you know,

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<v Speaker 3>we've talked here for Apple for you know, for so

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<v Speaker 3>many years. You have the biggest install based in the world.

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<v Speaker 3>You have one point five billion iPhones. But the reality

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<v Speaker 3>is that this is not gonna happen internally. I think

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<v Speaker 3>that's clear. So our whole point is that the Apple

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<v Speaker 3>it's like, look time, time's ticking. It's time now for

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<v Speaker 3>a company has never done acquisitions to change the narrative,

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<v Speaker 3>and you cannot wait on the treadmill at two point

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<v Speaker 3>five speed.

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<v Speaker 5>This goes to the Tim Cook question, which I didn't

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<v Speaker 5>even know was the thing a question, but I've heard

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<v Speaker 5>it a little.

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<v Speaker 4>Bit more in the last several months.

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<v Speaker 5>Is Tim Cook the right guy to take Apple into

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<v Speaker 5>the AI world?

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<v Speaker 4>Look?

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<v Speaker 3>I believe Tim Cook is the right guy as CEO

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<v Speaker 3>that will take Apple into this next phase of growth,

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<v Speaker 3>But underneath him Cook it's not the right I mean,

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<v Speaker 3>it's clear you need a new blood comany you need

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<v Speaker 3>for a company that's actually lost so much AI talent.

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<v Speaker 3>You need more leadership under him around innovation. Because the

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<v Speaker 3>DNA of Cooper Tino, which has been so massively successful,

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<v Speaker 3>you can't be Rosecard glasses. It has hit a major

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<v Speaker 3>brick wall and it's not gonna happen internally.

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<v Speaker 4>So how does that happen.

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<v Speaker 5>How do you change the mindset of a board of

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<v Speaker 5>a C suite that you need to do something dramatic here,

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<v Speaker 5>maybe a perplexity type deal. How do you think that happens?

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<v Speaker 5>Is it the board that has to drive this?

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<v Speaker 3>I think a year ago they're like no way, nine

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<v Speaker 3>months ago, six months ago when some of the black

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<v Speaker 3>eyes happened on the original AI strategy. I believe now

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<v Speaker 3>that there's a view that they have to do something.

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<v Speaker 2>I want to go back to perplexity. This is a

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<v Speaker 2>kid out of India, grew up really difficult computer science,

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<v Speaker 2>complete India ge get it, ends up at Berkeley with a.

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<v Speaker 1>Bunch of other guys. He was a Google intern et cetera,

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<v Speaker 1>et cetera.

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<v Speaker 2>Put our audience in the seat of aravn srind of

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<v Speaker 2>us at perplexity right now, how does he respond to

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<v Speaker 2>Apple overtures?

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<v Speaker 3>Well, well, look, I mean evaluations right now called eighteen

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<v Speaker 3>nineteen million wow. And the view is okay, could they

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<v Speaker 3>do this themselves? Is essentially a mod Everyone agrees the

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<v Speaker 3>answer is no. So from that perspective, could you partner

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<v Speaker 3>you think about anthropic what they've done with Amazon open

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<v Speaker 3>Ai obviously done it themselves. To me, it's one where

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<v Speaker 3>it's like it's not a time ticking necessarily, but for them,

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<v Speaker 3>they have to do something big. And there's really only

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<v Speaker 3>one company in the world that it would make sense

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<v Speaker 3>for perplexity, and I believe it's Apps.

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<v Speaker 2>Do they become members of the board? Are the a division?

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<v Speaker 2>Did they come in in three years later they're all gone?

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<v Speaker 4>No. I think it's important that that's not.

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<v Speaker 3>They have to almost stay a separate because if they

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<v Speaker 3>get sucked into that Apple Park Cooper team and then

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<v Speaker 3>all of a sudden, that is exactly what could happen.

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<v Speaker 3>I think the biggest thing here is that Apple right

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<v Speaker 3>now is at a point for the first time really

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<v Speaker 3>in the last fifteen years.

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<v Speaker 4>They gotta do something big and look a huge.

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<v Speaker 3>If you overhang lifted last week, tariffs cook point nice

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<v Speaker 3>new sandbox with Trump.

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<v Speaker 4>That's an important move.

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<v Speaker 3>But the elephant in the room, and we've talked about

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<v Speaker 3>for a coming that is a free castle machine. And

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<v Speaker 3>for a company that has never done acquisitions, it's time

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<v Speaker 3>now clock struck midnight.

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<v Speaker 4>They gotta do something, all right. That's the big issue

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<v Speaker 4>in the room. I think.

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<v Speaker 5>Still another big issue is the room is just China

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<v Speaker 5>what's the state of play in China from an end

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<v Speaker 5>market for their products and services as well as just

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<v Speaker 5>part of their global supply chain.

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<v Speaker 3>Look, I think you saw China bounce back last quarter,

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<v Speaker 3>even though subsidies definitely helped there. But Cook recognizes, like,

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<v Speaker 3>this story doesn't go up into the right without China.

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<v Speaker 3>I mean China, it's basically twenty percent of demand. It's

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<v Speaker 3>a huge power of production. Obviously they're they're moving more

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<v Speaker 3>and more to India. But also when you come down

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<v Speaker 3>to the US China trade negotiations, must we talk about

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<v Speaker 3>chips and then fifteen percent and video and AMD and

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<v Speaker 3>Apple is key to the whole thing because they're now

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<v Speaker 3>going to be I think a front row seat out

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<v Speaker 3>of all these negotiations now with Cook no longer on

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<v Speaker 3>the outside looking in when it comes Trump, White House.

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<v Speaker 2>Apple pre pandemic, I mean, no excuse me. At the

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<v Speaker 2>bottom of the pandemic, dan Ives was down to over

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<v Speaker 2>two standard deviations of mediocrity. It's bounced back, it's almost

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<v Speaker 2>back to trend line. What's your target from two twenty nine.

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<v Speaker 3>Two seventy is essential without any AI. So it was like,

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<v Speaker 3>is this a stock that has can still have a

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<v Speaker 3>huge move without a yeah, given iPhone seventeen.

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<v Speaker 1>And that's that's plus one standard devocation.

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<v Speaker 3>That now you talk about they actually do something real

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<v Speaker 3>here and instead of getting on the treadmill. Then that's

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<v Speaker 3>where we're talking three point fifty four hundred.

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<v Speaker 2>How did the others react to apple perplexity?

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<v Speaker 3>That means shot across the bow. Now Apple's in the game.

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<v Speaker 3>They're no longer just sitting there, you know, in the

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<v Speaker 3>right lane going forty five miles an hour.

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<v Speaker 1>Right.

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<v Speaker 3>You look at wartime CEOs, Look at Zuck, look at Musk,

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<v Speaker 3>look in the della, look at Godfather of Ai Jensen

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<v Speaker 3>a video. You cannot be looking at this AI party.

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<v Speaker 3>It's ten pm and it goes to four am from

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<v Speaker 3>the outside looking through the windows. And that's what Apple

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<v Speaker 3>is doing right now.

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<v Speaker 2>After your closed deal? Are you gonna gonna be like

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<v Speaker 2>Emma Redikanu and leverage out your closed deal? As others

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<v Speaker 2>come calling in the luxury goods space?

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<v Speaker 4>Again, never never say never. We've been super pumped.

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<v Speaker 1>About Farrel called from Tiffany's.

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<v Speaker 3>Again, did there. We've had a lot from Lewis. We've

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<v Speaker 3>had We've had a lot of amounts. But again, part

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<v Speaker 3>of why I went with snowmilkse needs to be a

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<v Speaker 3>certain type of designer.

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<v Speaker 4>It's all part of our our brain.

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<v Speaker 1>Would you be comfortable at Lewis Futon with Farrell?

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<v Speaker 3>Again, that's definitely something that could definitely potentially with with

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<v Speaker 3>with some colors. And again it comes down to like keen,

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<v Speaker 3>you put the bow eye on with some colors.

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<v Speaker 4>I mean there's a lot of weeds. We could all

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<v Speaker 4>go with this.

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<v Speaker 1>Yep, there you go.

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<v Speaker 4>That's all you can take.

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<v Speaker 1>Lisa, what do you think they don't make my size

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<v Speaker 1>dan Naives? I think thank you