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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Apple second quarter revenue

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Speaker 1: ninety point seventy five billion. That's slightly better than the

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Speaker 1: forecast of ninety point three to three billion. iPhone revenue

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Speaker 1: forty five point ninety six billions, slightly above the estimate

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Speaker 1: of forty five point seventy six billion. The company here's

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Speaker 1: a big one to buy back additional one hundred and

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Speaker 1: ten billion dollars worth of shares and boosting its quarterly dividend.

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Speaker 1: That's the Apple playbook, and it is now up two

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Speaker 1: point three percent. Initial reaction here in the after mark, Yeah.

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Speaker 2: I was going to say, who cares about those other numbers.

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Speaker 2: It's that buyback of additional one hundred and ten billion

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Speaker 2: dollars of shares and boosting that quarterly dividend that certainly

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Speaker 2: has investors expected. Some additional color here. Second quarter Greater

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Speaker 2: China revenue Carol sixteen point three seven billion. Even though

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Speaker 2: that was a decline of over eight percent year over year,

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Speaker 2: it still did beat estimates of fifteen point eight seven

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Speaker 2: billion dollars. Second quarter revenue coming in above estimates at

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Speaker 2: ninety point seventy five billion. Estimates are for ninety point

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Speaker 2: three to three iPhone revenue also coming in above estimates

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Speaker 2: forty five point nine to six billion. Estimates were forty

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Speaker 2: five point seven six billion dollars.

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Speaker 1: Apple raising that dividend to twenty five cents a share

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Speaker 1: from the previous dividend of twenty four cents a share.

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Speaker 1: So just to keep in mind that we start, you know, slowly.

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Speaker 1: We've seen all of these big tech companies, the Magnificent

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Speaker 1: seven offering up things like a dividend and so on.

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Speaker 2: Our own Mark German all over this story. Here's his take. Initially,

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Speaker 2: Apple sales decline less sharply than feared last quarter, held

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Speaker 2: by stronger than expected demand in China, sparking optimism that

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Speaker 2: the company slow down, maybe easing. Apple also set it

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Speaker 2: expects three turned sales growth in the current period, with

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Speaker 2: revenue climbing by a percentage in the low single digits.

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Speaker 2: That's according to Luka Maistri, the company's CFO. He told

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Speaker 2: ut Bloomberg Television's Emily Chang in an interview.

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Speaker 1: All right, so let's get some analysis right now. Our

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Speaker 1: own Ana Agrana is standing by of our Bloomberg intelligence

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Speaker 1: team on RAG. You've got the numbers, and of course

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Speaker 1: the additional big buy back of one hundred and ten

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Speaker 1: billion dollars worth of share, boosting its quarterly dividend. But

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Speaker 1: it looks like, you know, they came in either online

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Speaker 1: or better than expected. But what's your smart take on this?

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Speaker 3: Yeah, I would say anything. The number that stands out

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Speaker 3: really is that the decline in China was not as

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Speaker 3: bad as I guess it was communicated before, so slightly

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Speaker 3: better than before, but it's still overall still a negative number.

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Speaker 3: There is no and then you know, we will find

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Speaker 3: out on the conference call whether they make a comment

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Speaker 3: or not, or what kind of guidance they give for

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Speaker 3: next quarter. But overall, I would say the results were

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Speaker 3: okay compared to I'd say going into the quarter when

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Speaker 3: the pessimism is very high.

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Speaker 2: What's the big headline here? Is it the boarder proving

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Speaker 2: plans to buy back an additional one hundred and ten

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Speaker 2: billion dollars worth of company stocks? Is it Apple increasing

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Speaker 2: its dividend four percent to twenty five cents a share?

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Speaker 2: Are those the numbers that investors should be focused on

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Speaker 2: right now?

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Speaker 3: I would have been expecting, you know, them to buy

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Speaker 3: at least one hundred million dollars of stock every year.

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Speaker 3: So that's you know, to me at a table stake

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Speaker 3: ten billion. Yeah, it's just it's just normal. I really

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Speaker 3: need to know where the growth is going to come from,

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Speaker 3: and you know, how our things shaping up for the

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Speaker 3: second half of the year. And but most importantly, what

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Speaker 3: are they doing in the AI of you know, arena

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Speaker 3: at this point and what kind of features should we

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Speaker 3: expect going forward.

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Speaker 1: So remind us to Honora, this company typically doesn't release

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Speaker 1: the outlook in their call. I forget. I mean you

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Speaker 1: talk about it on the call, but not in the release, correct.

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Speaker 3: Yeah, that's not in the release. They're going to give

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Speaker 3: some indication about each of the product lines on the call.

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Speaker 3: So when we look at these results, you know, services

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Speaker 3: is good, you know, iPhone modestly better, you know overall,

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Speaker 3: I would say, in line to slightly better quarter. But

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Speaker 3: it all boils down to the commentary on the conference

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Speaker 3: call about how the things shaping up in the current quarter.

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Speaker 1: So if they are talking down China in particular, or

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Speaker 1: revenues or overall, that is going to get you concerned.

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Speaker 3: Yeah, I mean that is going to you know all

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Speaker 3: the all the you know, the current you would say,

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Speaker 3: the minor beat will be all offset by if there

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Speaker 3: are any comments negative comments about you know, continued weakness

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Speaker 3: of the iPhone in the third quarter, because remember, if

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Speaker 3: we consensus right now, iPhone revenue for next quarter is

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Speaker 3: supposed to be down two percent. Now, remember in this

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Speaker 3: quarter was down ten percent, So we need to know

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Speaker 3: whether that two minus two percent holds true or are

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Speaker 3: we going to see better than that in line or worse.

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Speaker 2: Shear's higher in the after hours right now by about

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Speaker 2: four percent. Fair to say, we're seeing this reaction as

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Speaker 2: a result of just expectations being so low going into

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Speaker 2: this exactly.

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Speaker 3: Yeah, yeah, absolutely, this is this is a true game

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Speaker 3: of where pessimism has been so high and they go

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Speaker 3: out and you know, beat by a slight amount. But

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Speaker 3: again I will give you my final verdict after the call.

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Speaker 1: Yeah, and we're also seeing where we said Greater China

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Speaker 1: revenue better than expected, it was still about a billion

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Speaker 1: and a half low a year ago. Sales are down considerably.

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Speaker 1: Also in Japan, the rest of Asia Pacific, and in

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Speaker 1: the Americas. The lone bright spot seems to be some

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Speaker 1: minor growth in Europe. You know, it's interesting on surveillance

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Speaker 1: this morning, Ana Rag Tom Keane asking one of his guests,

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Speaker 1: is this a growth stock? Is this a value stock?

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Speaker 1: How do you think about it? I know you don't

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Speaker 1: give stock recommendations, but in terms of the growth metrics,

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Speaker 1: it's always big numbers. But is it big growth numbers

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Speaker 1: anymore when it comes to Apple.

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Speaker 3: No, we don't think it's good growth numbers for Apple

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Speaker 3: at all, only because I think the big spike we

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Speaker 3: saw during the pandemic, people buying a lot of iPads,

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Speaker 3: computers or AirPods, all of that is now, you know,

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Speaker 3: basically you could say haunting them. We are coming into

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Speaker 3: a world where Apple's growth rate is going to hover

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Speaker 3: somewhere between zero to five percent for at least the

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Speaker 3: next two to three years. Now that's a good case.

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Speaker 3: We really need to get make sure that the China

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Speaker 3: situation is handled, even if even before we can make

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Speaker 3: that claim. Otherwise it's going to be closer to that

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Speaker 3: zero to two percent rather than closer to five percent.

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Speaker 2: Honor Ragaran Mark German on the lifeblog, making the point

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Speaker 2: that the company declined nearly across the board on an

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Speaker 2: annual basis, despite the fact that they beat Wall Street estimates.

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Speaker 2: So that's overall revenue the iPhone buy a lot, the

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Speaker 2: iPad buy a lot, Wearables, home and accessories, buy a lot.

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Speaker 2: The bright spots are growth and services and for the

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Speaker 2: Mac to the M three due to the M three

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Speaker 2: Mac book care. Let's talk services. This is a category

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Speaker 2: that was fair to say, was really created under Tim

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Speaker 2: Cook and it's just been an incredible growth over the

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Speaker 2: last few years. What are the bright spots within services?

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Speaker 3: So in our view, services is really what's holding Apple

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Speaker 3: together only because it gives you in the ecosystem field.

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Speaker 3: It's not easy to get out of the ecosystem and

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Speaker 3: leave Apple for another product. And which is why you know,

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Speaker 3: the numbers over here are truly important because you know

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Speaker 3: this time they grew around close to fourteen percent if

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Speaker 3: I remember correctly, that's that's better than what the company

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Speaker 3: had initially you know indicated. So this is this is

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Speaker 3: a growth driver. This is what provides value to the ecosystem,

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Speaker 3: and we are hoping that they're going to come out

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Speaker 3: and you know, talk good things about the next quatter

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Speaker 3: also from services, because this is the only growth drivate

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Speaker 3: left of this point.

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Speaker 1: Hey Anna rok, how much of now it's just under

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Speaker 1: a four percent gain here in the aftermarket for shares

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Speaker 1: of Apple. How much of it is at a relief

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Speaker 1: that it wasn't worse than expected, especially when it comes

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Speaker 1: to what's going on in China, but also that big

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Speaker 1: boost in terms of buyback and the dividend.

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Speaker 3: Yeah, it is a big relief, frankly, because again, this

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Speaker 3: is the one company everybody has been concerned about over

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Speaker 3: the last twelve months. Now, that's why I'm saying, this

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Speaker 3: is not like you know, Amazon or Microsoft beating their

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Speaker 3: cloud numbers by a big amount. It's just you know,

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Speaker 3: somebody saying, oh my god, it's not bad enough, It's

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Speaker 3: just okay. So it's a very different sentiment. But again

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Speaker 3: that's the way market behaves, Frankly, it's a game of expectations.

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Speaker 1: But I mean, how much of the jump in the

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Speaker 1: aftermarket is it mostly just that it wasn't worse than

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Speaker 1: is expected? Or is it also a big check of

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Speaker 1: the buyback.

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Speaker 3: Now, the buybacks, as I said, they do about one

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Speaker 3: hundred million dollars a year, so one hundred and ten

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Speaker 3: billion is not a big deal.

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Speaker 2: Go to quarterly dividend increasing penny.

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Speaker 3: Yeah, But once again, you know, this is a technology stock.

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Speaker 3: We really need to see the growth for this company

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Speaker 3: to actually see their valuation go up.

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Speaker 2: Okay, so what has you concerned here?

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Speaker 3: I mean, I just want to know what's happening in China.

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Speaker 3: Frankly we don't. This report has not has told me

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Speaker 3: that the things in China are not as bad as

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Speaker 3: what the street was looking at. But that doesn't mean

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Speaker 3: it's still a decline.

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Speaker 2: How much of an issue is it? And again Mark

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Speaker 2: Krman pointing this out, Wearable's Home and Accessories a big decline,

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Speaker 2: dipping nearly a billion dollars. He says it's shocking because

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Speaker 2: it's the same quarter that Apple launched the Vision Pro,

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Speaker 2: which is included in that category, its first major new

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Speaker 2: product in nearly a decade. Bad news for Vision Pro.

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Speaker 3: Yeah, we were never expecting any major contribution from that device.

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Speaker 3: Think about it, three five hundred dollars. Even if you

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Speaker 3: sell four hundred thousand units the entire year, which is

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Speaker 3: very big, you're not going to get that much revenue

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Speaker 3: boost from it. So it's not really a needle mover.

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Speaker 3: The thing that actually surprised me more was that the

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Speaker 3: IPID decline was very sharp. Now, this is something that

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Speaker 3: I think they're going to have to explain on the call,

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Speaker 3: and they're launching a new series next week. So seventeen

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Speaker 3: percent decline is what I remember, you know, briefly from

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Speaker 3: a couple of minutes ago. That's a big decline in iPads. Also,

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Speaker 3: all right, gonna lead there.

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Speaker 1: We know you've got lots going on, so appreciate your

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Speaker 1: immediate response to Apple earnings. Our own Ragrana, who follows

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Speaker 1: Apple for a Bloomberg Intelligence team. Apple shares, by the way,

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Speaker 1: continuing to move up in the aftermarket, up about three

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Speaker 1: and a half percent. We've got another great voice for

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Speaker 1: us on this, Dan Morgan, senior portfolio manager at Sonova's Trust, Dan,

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Speaker 1: which jumps out for you here.

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Speaker 4: Well, I'm trying to come up with some great ideas

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Speaker 4: different than what you've already talked about. Again, it was

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Speaker 4: kind of a mixed report, I think. You know, as

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Speaker 4: you were talking about earlier. The big things that stood

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Speaker 4: out to me were obviously the better than better than

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Speaker 4: expected numbers in China. You know, obviously iPhone a slight beat,

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Speaker 4: which is a positive. But you know, Carol Timo, it's

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Speaker 4: kind of interesting. I've been following Apple stock for about

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Speaker 4: thirty years, and I can remember back in twenty fourteen,

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Speaker 4: they had a very similar situation where everybody was very negative.

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Speaker 4: They were having issues in China and the stock was

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Speaker 4: really floundering.

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Speaker 3: And then they came out and.

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Speaker 4: They did a seven for one stock split, they raised

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Speaker 4: a dividend, and they started buying more shares and everybody

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Speaker 4: went crazy. So it's kind of interesting in this scenario,

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Speaker 4: we see the dividend going up, and we see, as

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Speaker 4: you were talking about before, an announcement of one hundred

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Speaker 4: and ten a billion dollars are going to purchase at stock.

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Speaker 4: It'd be interesting to see if they call up thing

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Speaker 4: else on the conference call in terms of, you know,

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Speaker 4: financial engineering to try to kind of reinvigorate interest back

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Speaker 4: into Apple.

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Speaker 1: Well, you know, I'm kind of glad you went there

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Speaker 1: because I mean, and this maybe just gets to how

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Speaker 1: do we classify Apple. I mean, this is a behemoth,

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Speaker 1: and I feel like whenever the numbers come across, maybe

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Speaker 1: the growth rate isn't there, but I mean, revenue above

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Speaker 1: ninety billion dollars every time, we have to kind of

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Speaker 1: dissect these numbers, Dan, and we've done it a lot

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Speaker 1: of times with you. I mean, this is a company

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Speaker 1: that's very entrenched globally, kind of in the consumer space,

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Speaker 1: and I just I think is that enough to continue

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Speaker 1: just by selling a lot of stuff? As long as

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Speaker 1: they continue to sell a lot of stuff, even if

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Speaker 1: the growth trajectory isn't there, still makes it an interesting

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Speaker 1: and engaging company for investors.

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Speaker 4: Did on the button, Carroll, I mean, just think about

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Speaker 4: the new vision pro I mean, they're supposed to do

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Speaker 4: four hundred million dollars in revenue alone just on that product.

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Speaker 4: And I heard you just mentioned that the wearables missed,

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Speaker 4: so it's kind of itching. That's more than some companies

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Speaker 4: generate toil a revenue. And you're right. I mean, they

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Speaker 4: have what one point five billion users you put together

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Speaker 4: the whole house, it's close to two billion when you

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Speaker 4: look at all the different services that they have, and

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Speaker 4: it's just a tremendous cash generator. I'm sure you've talked before,

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Speaker 4: what one hundred and seventy two billion dollars with marketable

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Speaker 4: securities and cash. They generate free cash flow about one

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Speaker 4: hundred and five hundred and seven billion. So those numbers

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Speaker 4: are kind of going back to the Warrant Buffett school

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Speaker 4: kind of the old security analysis they teach out to

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Speaker 4: your Chicago and you know there's value in that, and

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Speaker 4: even though we want to see an incredible new AI

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Speaker 4: product that's just going to be like the next iPhone,

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Speaker 4: it's probably not.

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Speaker 3: Going to happen.

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Speaker 4: And I think we just have to kind of accept

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Speaker 4: that and look at the company just for what it

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Speaker 4: is is and it doesn't mean they can increase your

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Speaker 4: stock price through these other avenues. Does that make sense?

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Speaker 2: Yeah, that makes sense. Dan, Hey, I want to keep

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Speaker 2: you because I also want to bring in Markerman, Bloomberg

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Speaker 2: News chief technology correspondent, who was fresh off the live blog,

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Speaker 2: has the write up that you need to read about

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Speaker 2: these earnings. But I do want to start at the top.

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Speaker 2: Mark big picture, what sticks out to you. We've been

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Speaker 2: discussing this NonStop for the past twelve minutes.

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Speaker 5: Yeah, so a big picture here is that Apple's doing

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Speaker 5: a little bit better than feared. Right, you still see

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Speaker 5: declines across all of their segments other than the MAC

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Speaker 5: and services, but a little bit better than what we

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Speaker 5: had anticipated, or not what we had anticipated, but what

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Speaker 5: had some it anticipated. In China, certainly a lot of

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Speaker 5: optimism around artificial intelligence. But you know, the big picture

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Speaker 5: here is that Apple is no longer in growth mode.

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Speaker 5: They're a stable company generating as much revenue as they

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Speaker 5: did the past year and the year before that and

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Speaker 5: the year before that. So nothing is necessarily broken here,

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Speaker 5: but they do need to figure out a way to

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Speaker 5: grow in the future, and just it's very unclear how

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Speaker 5: that's going to happen.

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Speaker 2: Okay, that was next question for you, Mark, What is

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Speaker 2: going to return Apple to growth mode? And give us

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Speaker 2: a little Apple history here, like when was the last

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Speaker 2: time Apple found itself in this position and what did

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Speaker 2: they do to get themselves out of it.

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Speaker 5: Yeah, so I'm gonna answer this question this way. The

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Speaker 5: scariest line that you're going to see in Apple's press

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Speaker 5: release is the wearables, home and Accessories number. That's about

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Speaker 5: an eight hundred nine hundred million dollar annual decline, pretty considerable,

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Speaker 5: about a ten percent decline there for that business that

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Speaker 5: covers Airpod's, Apple Watch, appel TV, HomePod, you name it.

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Speaker 5: Why is that so concerning? Because this is the launch

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Speaker 5: quarter of the Apple Vision pro which is supposedly their

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Speaker 5: future and their savior for growth. And if you're going

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Speaker 5: to have that category of the Vision pros and have

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Speaker 5: one of its biggest declines ever in the launch quarter

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Speaker 5: of your new product. Clearly things are not going so

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Speaker 5: hot in what you're betting your future on. The last

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Speaker 5: time that Apple was sort of stuck in terms of

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Speaker 5: lack of growth was really before the iPhone came out.

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Speaker 5: So it has the company has been growing for a very, very,

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Speaker 5: very long time. Right at some point momentum runs out.

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Speaker 5: The momentum has run out. The good news is that

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Speaker 5: it's not like they're you know, creating.

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Speaker 2: Hey, Mark, real quick, I did bring that up. I

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Speaker 2: saw you wrote wrote that about that in the our

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Speaker 2: great live blog. Everybody should check that out as they're

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Speaker 2: listening to this. And I brought that up to Honor

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Speaker 2: rog and he made he made the point that, you know,

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Speaker 2: the Vision pro is still very expensive, and even if

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Speaker 2: they sold a ton of them, then it wouldn't have

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Speaker 2: a huge impact just because it's still relatively early in

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Speaker 2: the product life cycle. Why is it still so scary

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Speaker 2: to you though?

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Speaker 5: Oh well, I mean I look at it differently. It

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Speaker 5: is so expensive, and so if they do sell a

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Speaker 5: ton of them, that should generate you know, a good

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Speaker 5: amount of revenue. Right and we're talking We're not talking

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Speaker 5: hundreds of billions of dollars here, We're talking about an

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Speaker 5: eight nine billion dollar category, So an eight hundred million

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Speaker 5: dollars percent is actually quite a lot. And so if

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Speaker 5: they're if they're if they want to bet a lot

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Speaker 5: on this product, it's just going to have to start

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Speaker 5: creating some momentum. But it's done nothing to date, and

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Speaker 5: sales for these types of devices, especially at this price point,

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Speaker 5: you're getting the bulk of those sales very early on

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Speaker 5: in the process. You're getting them this quarter. So it

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Speaker 5: only really goes down here downhill from here for the

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Speaker 5: Vision Pro until they make major improvements on price.

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Speaker 3: And wait, hey, still with us.

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Speaker 1: We're talking with our own marker and in Bloomberg News,

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Speaker 1: chief technology correspondent Dan Morgan, still with us, senior portfolio

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Speaker 1: manager over at Sonovas. As we are looking at Apple

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Speaker 1: shares up about six and a half or set here

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Speaker 1: in the aftermarket as their second quarter revenue tops estimates

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Speaker 1: and they also boost their buyback. Dan Morgan, come on

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Speaker 1: in on it. You've been listening to the conversation thoughts

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Speaker 1: when it comes to wearables and the Vision Pro.

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Speaker 4: Yeah, I mean that was one of the mark was

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Speaker 4: mentioning that was kind of one of the catalysts that

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Speaker 4: people are looking out for that. Potentially Apple could start

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Speaker 4: to get some momentum back in the stock. We know

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Speaker 4: they've got a new tablet that's supposed to come out

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Speaker 4: I guess next week in May. They've got the big

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Speaker 4: Developers conference in June, and then of course they come

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Speaker 4: out with iPhone sixteen and the new iOS eighteen in September.

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Speaker 4: So there are going to be some opportunities down the road, guys.

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Speaker 4: I know this reports as exciting as we would have

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Speaker 4: hoped for for Apple to kind of reinvigorate, you know,

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Speaker 4: interest in what they're doing obviously along that road. Hopefully

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Speaker 4: they'll lay out some sort of AI roadmap that's a

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Speaker 4: little more specific than what they have so far on

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Speaker 4: the conference calls. But again, I think this is just

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Speaker 4: kind of a quiet period right now for Apple, and

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Speaker 4: I don't think we have to hit I don't think

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Speaker 4: you'd hit the panic button if you hold chair. Let's

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Speaker 4: just see how this thing plays out. Hey, Mark Germott,

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Speaker 4: not everybody's in video, Mark.

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Speaker 1: Germant, I'm wondering if you have a question for from

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Speaker 1: Dan Morgan, who's been following you know, Apple for thirty years,

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Speaker 1: seeing times when you know a lot of investors gave

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Speaker 1: up on this company only to see it come roaring back.

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Speaker 3: Do you have a question maybe for Dan?

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Speaker 5: That's a good question. I don't have a question for Dan,

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Speaker 5: but I'd love to engage in a back and forth

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Speaker 5: with Dan on this. I mean, you know, I agree

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Speaker 5: with you. There is no reason to panic here, Dan,

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Speaker 5: especially if you're a shareholder of Apple, right. I mean,

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Speaker 5: you put money into Apple. It's kind of like a bond.

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Speaker 5: You're not going to lose all your cash there, right,

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Speaker 5: But you're also not going to get those in Nvidia

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Speaker 5: like returns. At this point. The question is how long

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Speaker 5: our investors willing to wait until there's a next big thing?

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Speaker 5: And what I will say is I don't anticipate there

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Speaker 5: being any new next big thing on the horizon anytime soon,

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Speaker 5: so we'll be looking out for that.

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Speaker 2: Dan, do you anticipate any next big thing being on

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Speaker 2: the horizon?

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Speaker 4: I would agree with Mark one hundred percent. I mean,

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Speaker 4: I remember, guys, Carol, probably I don't want to date us,

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Speaker 4: but we've been around a while. You've brought up in

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Speaker 4: the nineteen nineties, when you know, we made the migration

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Speaker 4: from a client server environment and we went to the

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Speaker 4: IBM compatibles, and everybody was into Gateway and Dell and

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Speaker 4: HP and all the big PC makers were going crazy,

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Speaker 4: and Apple was almost ready to go bankrupt. I mean,

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Speaker 4: they had a very you know, very niche group of

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Speaker 4: people that bought Max and then in two thousand and

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Speaker 4: seven they came out with the iPhone, and a couple

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Speaker 4: of years before that they came out with the iPod

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Speaker 4: and the rest is history. So Apple's been down before,

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Speaker 4: and Apples had setbacks and been through periods of time

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Speaker 4: with when people kind of film aside and you know,

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Speaker 4: we'll just see where they are ten years from now.

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Speaker 4: That's all I can say.

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Speaker 2: Hey, I just want to end with Mark on AI,

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Speaker 2: because ten years from now, I know that Apple would

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Speaker 2: love to be a leader when it comes to.

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Speaker 1: AI, I will be replaced by AI.

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Speaker 2: Hey maybe, Mark, what's the vision? What's the vision that

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Speaker 2: internally they're talking about it Apple when it comes to AI,

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Speaker 2: lay it out for us.

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Speaker 5: The vision of AI is integration, deep integration into hardware,

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Speaker 5: privacy and security, and really not an Apple designed chapot

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Speaker 5: like you've seen from Chat, GPT, open AI, Google, Gemini, Microsoft,

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Speaker 5: you name it. This is about integrated into the phone.

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Speaker 5: I'll give you an example. We're on this call, my

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Speaker 5: phone's in my pocket. I probably missed twenty notifications depple

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Speaker 5: earning season. I'll take my phone out of my pocket

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Speaker 5: when this is done, and it'll catch me up with

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Speaker 5: some AI and tell me everything I missed. That's the

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Speaker 5: type of AI feature to think about if you're when

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Speaker 5: you're expecting AI features from Apple summaries, useful day to

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Speaker 5: day tools based on artificial intelligence, not sort of twenty

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Speaker 5: one questions.

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Speaker 2: I mean that's Apple's DNA, right, all about enhancing the

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Speaker 2: value of the hardware and getting you to buy that

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Speaker 2: next phone.

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Speaker 1: Dan Morgan thirty seconds left here, so something like that.

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Speaker 1: How does as AI is integrated into the Apple model

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Speaker 1: and they figure out, you know, how to monetize it.

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Speaker 1: How important is that in terms of maybe making the

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Speaker 1: growth trajectory change? And again, just kint about thirty seconds.

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Speaker 4: I mean it's huge, Carol. You know, as Mark was

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Speaker 4: mentioning when they have taken a dive into the chip space,

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Speaker 4: they're creating their own silicon. They do have a product

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Speaker 4: they're working on called Ajax, which is kind of like

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Speaker 4: a chat GPT, but it's on your phone. So there

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Speaker 4: are things they are doing, but as Mark was saying,

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Speaker 4: it's all integrated into the iOS, into the phone. It's

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Speaker 4: not going to be some new product that we've never

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00:19:46,359 --> 00:19:47,919
Speaker 4: heard of that just comes out of left field.

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Speaker 1: All right, Well, I know I can't live without my iPhone,

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Speaker 1: so bring it on, all right, guys, thank you so much.

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Speaker 1: Mark German, Bloomberg News Chief Technology correspondent, Dan Morgan, senior

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Speaker 1: portfolio manager at Sonva's trust on Apple stock is up

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Speaker 1: about six and a half percent here