WEBVTT - Tech Earnings and Apple's New iPads 0:00:01.320 --> 0:00:06.560 From Mahard where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:06.960 --> 0:00:11.000 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.880 --> 0:00:27.560 I'm Caroline Heidel, Bloomberg's World headquarters in New York. Ed 0:00:27.640 --> 0:00:31.320 Ludlow's off This is Bloomberg Technology coming up. We engage 0:00:31.320 --> 0:00:33.760 the health of technology earnings with eighty percent of S 0:00:33.800 --> 0:00:38.280 and P five companies out with results. And as Buffett 0:00:38.320 --> 0:00:40.920 cuts his steak, we'll push your head to Apple's product 0:00:40.960 --> 0:00:44.200 event as the company prepares to launch new iPads plus, 0:00:44.320 --> 0:00:46.320 we speak to andrel founder. 0:00:46.080 --> 0:00:48.600 Palmer Lucky as a company announces. 0:00:48.120 --> 0:00:52.120 A brand new range of AI powered products. But first 0:00:52.400 --> 0:00:55.440 let's check in on these markets and look, we have 0:00:55.680 --> 0:00:59.560 a post fed feeling of well optimism in the markets 0:00:59.560 --> 0:01:00.960 that feel so. We don't have an awful lot of 0:01:00.960 --> 0:01:03.680 economic data on the table. We do have some significant 0:01:03.760 --> 0:01:06.600 bondishuents ten yure yields holding steady. We're four point five 0:01:06.600 --> 0:01:09.200 percent the nawstak managing to push up to six tens 0:01:09.240 --> 0:01:11.560 ofven percent, notably seeing the S and P five hundred 0:01:11.600 --> 0:01:13.440 breaking some of those technical levels of where we've seen 0:01:13.480 --> 0:01:16.000 an average and trade over the last fifty days. 0:01:15.760 --> 0:01:17.560 So there seems to be some boyant moves and risk 0:01:17.600 --> 0:01:18.160 on attitude. 0:01:18.200 --> 0:01:20.560 Not though in bitcoin, though crypto off by nine tens 0:01:20.560 --> 0:01:22.679 of percent, we're seeing sixty three one hundred and fifty 0:01:22.680 --> 0:01:24.000 five is currently where we trade. 0:01:24.120 --> 0:01:26.240 Move it on though, and when it comes to encrypto. 0:01:25.920 --> 0:01:27.840 Related news will be digging into what's happened. 0:01:27.600 --> 0:01:28.200 With Robin Herd. 0:01:28.240 --> 0:01:32.680 Of course, wells notice received SEC looking at particularly it's 0:01:32.760 --> 0:01:35.520 crypto sales that it currently does up seven tens percent, 0:01:35.560 --> 0:01:38.319 despite of course announcing that the SEC may well be 0:01:38.360 --> 0:01:41.600 looking into its business. Apple down seven tens percent. This 0:01:41.680 --> 0:01:44.640 is all post of course, the oracle of Omaha over 0:01:44.720 --> 0:01:47.119 Warren Buffett saying, look, I'm pulling back on the steak 0:01:47.160 --> 0:01:49.640 in Apple, even though he did shower its praise over 0:01:49.680 --> 0:01:52.240 the business, really loving the iPhone product. But nevertheless, we 0:01:52.280 --> 0:01:55.160 look ahead to new products, new iPads. Push ahead with 0:01:55.200 --> 0:01:57.240 that in Mark German in a moment, but in Vidia 0:01:57.320 --> 0:01:58.800 up two point six percent. I want to shine like 0:01:58.840 --> 0:02:01.480 more broadly on some of each makers because we are 0:02:01.520 --> 0:02:04.800 seeing a lot of movement higher the socks, for example 0:02:04.840 --> 0:02:06.960 trading high and Vidia is still yet to report that 0:02:07.000 --> 0:02:10.680 comes May twenty May twenty second. We also get arm 0:02:10.760 --> 0:02:13.080 this week. There is still so much to be said 0:02:13.200 --> 0:02:16.600 for earnings. The earning season well underway. Results from about 0:02:16.680 --> 0:02:18.360 eighty percent of the S and P five hundred already 0:02:18.360 --> 0:02:22.120 in technology communication services companies, they're beating profit estimates. 0:02:22.240 --> 0:02:23.400 Roughly ninety percent of. 0:02:23.360 --> 0:02:26.600 Teching communication services companies actually topped earnings estimates, according to 0:02:26.680 --> 0:02:29.200 Day to combined by Bloomberg. When get all the statistics, 0:02:29.240 --> 0:02:31.600 Bloomberg's jestmenton is with us and pleased to say, and 0:02:32.280 --> 0:02:36.040 just more broadly, it feels as though when companies have 0:02:36.160 --> 0:02:39.360 beat have they really outperformed? I mean, Apple was a 0:02:39.480 --> 0:02:41.880 massive sigh of relief when we saw the stock rally, 0:02:41.919 --> 0:02:43.079 but how has that been bearing up? 0:02:43.240 --> 0:02:45.679 So you can actually see this function in Bigo, So 0:02:45.800 --> 0:02:48.640 Gina Marrit Adams team ver in that function and you 0:02:48.680 --> 0:02:50.720 can see basically on the equities there. So when you're 0:02:50.760 --> 0:02:53.240 looking at how starks in aggregate from the S and 0:02:53.240 --> 0:02:55.840 P five hundred have been performing in excess of the 0:02:55.880 --> 0:02:59.040 broader index, they actually it's basically kind of appeals in 0:02:59.080 --> 0:03:02.600 comparison to how they have been in prior quarters. But nonetheless, 0:03:02.639 --> 0:03:05.320 because of Apple on Friday, when you see this now 0:03:05.360 --> 0:03:08.040 the S and P five hundred since earning season basically 0:03:08.040 --> 0:03:11.560 got into full swing with JP Morgan back on April twelfth. 0:03:11.600 --> 0:03:14.320 Now it's up close to about one percent in that span. 0:03:14.400 --> 0:03:17.680 It had been about lower than one percent prior to 0:03:17.760 --> 0:03:20.080 Apple's earnings results. So now you're starting to see that 0:03:20.280 --> 0:03:22.080 pick up a bit just on the back of obviously 0:03:22.080 --> 0:03:24.480 these big tech bell weathers. But to your point, Caroline, 0:03:24.480 --> 0:03:25.720 we still have Nvidia coming up. 0:03:25.680 --> 0:03:27.720 On May twenty second, I know, and there was so 0:03:27.840 --> 0:03:29.600 much optimism baked in. 0:03:30.360 --> 0:03:32.840 What about those that have missed, I mean, they've been 0:03:32.840 --> 0:03:35.280 punished hot, have they and have have been any themes 0:03:35.440 --> 0:03:36.760 as to why they've missed. 0:03:36.960 --> 0:03:38.960 Well, that's a great point too, because a lot of 0:03:39.000 --> 0:03:41.360 that also has to do with more forward looking guidance. 0:03:41.440 --> 0:03:43.520 And that's why because as we know, when you do 0:03:43.600 --> 0:03:46.640 think about first quarter earnings results, that is more backward looking. 0:03:46.680 --> 0:03:48.640 So when it comes to the guidance, that's where it 0:03:48.680 --> 0:03:51.440 has been disappointing. And then, of course, because this is 0:03:51.480 --> 0:03:54.480 a technology program, obviously a lot of traders and investors 0:03:54.480 --> 0:03:56.480 want to know when those cost cutting efforts that have 0:03:56.520 --> 0:03:59.440 really helped propel any sort of big tech company or 0:03:59.520 --> 0:04:01.800 especially anything that is tied to that, especially as when 0:04:01.800 --> 0:04:03.320 you think back to Meta at the end of twenty 0:04:03.360 --> 0:04:06.520 twenty two when it started its first big job cuts 0:04:06.720 --> 0:04:09.120 entranch there and then another one last spring. How much 0:04:09.160 --> 0:04:10.880 longer can this continue? So if you look at the 0:04:10.880 --> 0:04:13.800 bifunction though on a twelve month aggregate basis, seal site 0:04:13.840 --> 0:04:17.400 analysts are still marking up their projections for technology companies 0:04:17.400 --> 0:04:19.360 and growth companies too, But a lot of those laggards 0:04:19.360 --> 0:04:21.880 like healthcare and utilities, those are actually starting. 0:04:21.600 --> 0:04:23.960 To pick up too now maybe with the effect of AI. 0:04:24.200 --> 0:04:26.160 Many wanted to just see that impact. How the industry 0:04:26.160 --> 0:04:29.479 groups just lastly give us the sentence of whether companies 0:04:29.520 --> 0:04:32.400 have already been rewarding shareholders, because that felt like why 0:04:32.440 --> 0:04:34.720 a lot of the reason Apple popped it was because 0:04:34.839 --> 0:04:37.440 we got a massive buyback was starting to see companies 0:04:37.440 --> 0:04:39.320 give dividends. I mean, you triggered my memory with the 0:04:39.320 --> 0:04:41.039 fact that Meta didn't this time, but they did in 0:04:41.040 --> 0:04:42.039 the pre setting season. 0:04:42.120 --> 0:04:45.640 That's always usually music to trader's ears there. But also 0:04:45.680 --> 0:04:47.800 the big thing about buybacks is also when you look 0:04:47.839 --> 0:04:50.839 at what's happening with Capex and reinvesting into those businesses, 0:04:50.880 --> 0:04:53.640 so just beyond that, So that's something that investors want 0:04:53.640 --> 0:04:55.760 to see more of as far as what are companies 0:04:55.800 --> 0:04:58.599 doing to reinvest beyond just those buyback programs, But we 0:04:58.640 --> 0:05:00.440 have seen a number of companies in a especially to 0:05:00.480 --> 0:05:04.120 your point, Caroline, looking at Apple with that historic buyback announcement. 0:05:04.160 --> 0:05:06.279 Of course it still has to execute those, but we 0:05:06.360 --> 0:05:08.800 still have when you're thinking about what potential catalysts could 0:05:08.800 --> 0:05:11.040 come for Apple. Obviously we know in early June we'll 0:05:11.040 --> 0:05:13.320 have the Worldwide Developers Conference, but I know Mark German 0:05:13.360 --> 0:05:15.120 from Bloomberg is coming up soon, so he's going to 0:05:15.120 --> 0:05:17.599 talk about the big event tomorrow where potentially we could 0:05:17.760 --> 0:05:20.320 can see some more new iPads that are coming out. 0:05:20.320 --> 0:05:23.480 Caroline, let Mark loose at the moment of the HANJ 0:05:23.520 --> 0:05:25.360 just meant and brilliant to have your round level what's 0:05:25.360 --> 0:05:25.880 been happening in. 0:05:25.920 --> 0:05:26.839 Terms of the earning season. 0:05:27.000 --> 0:05:29.240 We actually want to get aroun investors take care as well. 0:05:29.360 --> 0:05:32.560 Uncle Crawlford's with us executive vice president for Phodio manager 0:05:32.600 --> 0:05:35.599 over at algia twenty five billion dollars NASA's under management, 0:05:35.600 --> 0:05:38.719 and Uncle Apple actually one of your biggest holdings. You 0:05:38.760 --> 0:05:40.760 have been cutting that a little bit across some of 0:05:40.800 --> 0:05:43.800 your funds. Water Muffett doing the same thing. How have 0:05:43.880 --> 0:05:47.480 you interpreted, for example, a company such as Apple's results 0:05:47.480 --> 0:05:49.839 and ultimately the growth trajectory of a business like that. 0:05:50.360 --> 0:05:54.880 Look, Apple is a consumer utility, and one of the 0:05:54.880 --> 0:05:57.440 things about Apple has been that they has been slower 0:05:57.480 --> 0:06:00.800 in adopting this AI cycle. So the hope is that 0:06:00.880 --> 0:06:02.960 at some point they will catch up and they will 0:06:02.960 --> 0:06:05.679 be a FEST follower, which we strongly believe that they will. 0:06:05.920 --> 0:06:08.880 But in the near term, there are other companies that 0:06:08.960 --> 0:06:14.760 are more immediately investing in and procuring AI type revenues 0:06:14.760 --> 0:06:15.840 that is propelling growth. 0:06:15.960 --> 0:06:17.600 Okay, let's talk through some of those names. 0:06:17.640 --> 0:06:21.360 I mean, we've heard from Alphabet, from Amazon, from Meta, 0:06:21.560 --> 0:06:24.120 all of them. The capec spend their making are they 0:06:24.400 --> 0:06:27.120 building the reward in return for that investment? 0:06:27.120 --> 0:06:30.080 From your perspective, absolutely, It's the number one thing that 0:06:30.160 --> 0:06:33.000 we have been looking at through this earning season has 0:06:33.080 --> 0:06:36.480 been capex and how these companies are spending their capex. 0:06:36.800 --> 0:06:41.120 We wholeheartedly expected them to have a big CABEC CAPEX 0:06:41.240 --> 0:06:44.640 number through twenty twenty four, and they're even talking about 0:06:44.640 --> 0:06:47.839 twenty twenty five. And this to us is the leading 0:06:48.000 --> 0:06:51.919 indicator of what's to come in AI because they wouldn't 0:06:51.920 --> 0:06:54.760 be building this CAPEX unless they saw the demand trends. 0:06:54.880 --> 0:06:58.040 I would remind you that during earning season, both Microsoft 0:06:58.120 --> 0:07:02.200 and Amazon talked about how they were limited on capacity 0:07:02.200 --> 0:07:05.440 of GPUs. So this again, I mean people keep asking 0:07:05.480 --> 0:07:07.880 like the where is the application. 0:07:07.760 --> 0:07:09.200 Someone is using those GPUs? 0:07:09.240 --> 0:07:11.240 They're all used up already, the hundreds of millions that 0:07:11.240 --> 0:07:12.800 have always been already been spent. 0:07:12.720 --> 0:07:16.280 And of course benefits from the desire for GPUs. It's 0:07:16.280 --> 0:07:17.760 going to be in video, right, I mean, is that 0:07:17.880 --> 0:07:20.160 the number one play for you? Have you been looking 0:07:20.200 --> 0:07:23.720 at well a MD or indeed looking at the design 0:07:23.760 --> 0:07:25.480 element with M Yeah. 0:07:25.520 --> 0:07:27.640 So I think a lot of boat boats are going 0:07:27.680 --> 0:07:29.720 to rise over the next decade, and a lot of 0:07:29.800 --> 0:07:32.960 boats are rising now. So it will it be a 0:07:33.040 --> 0:07:35.280 winner take all market. It's not going to be a 0:07:35.280 --> 0:07:37.960 winner take all market. There will be many different winners. 0:07:38.800 --> 0:07:41.960 Nvidia is going to be the winner take most however, 0:07:42.280 --> 0:07:47.200 and we are really excited about what Nvidia is doing 0:07:47.240 --> 0:07:50.920 in terms of not only software development, but how they're 0:07:51.040 --> 0:07:55.040 changing the network in order to make data centers more efficient. 0:07:55.120 --> 0:08:00.320 So they're reaching out beyond just chips into the price 0:08:00.400 --> 0:08:05.440 networking and software as well, so that sets up a 0:08:05.520 --> 0:08:09.400 really great note for them and makes us very bullish 0:08:09.400 --> 0:08:10.000 on Nvidia. 0:08:10.400 --> 0:08:12.560 I mean, it's one of your number one holdings across 0:08:12.640 --> 0:08:14.720 some of your largest funds. I note that you've also 0:08:14.800 --> 0:08:18.080 been starting new funds and ETF in particular, trying to 0:08:18.120 --> 0:08:20.600 execute on this AI theme. Can you talk us through 0:08:20.600 --> 0:08:23.360 some of the names and perhaps why not automatically consider 0:08:23.440 --> 0:08:24.880 the AI play that you've been adding to. 0:08:25.360 --> 0:08:29.120 Yeah, so you know there's two companies in the industrial space, 0:08:29.440 --> 0:08:33.800 Vertive and Quantu Services, both of which are you know, 0:08:33.840 --> 0:08:37.199 they used to be relatively slow growth companies but are 0:08:37.200 --> 0:08:40.720 now levered to the AI play. Vertive makes cooling systems 0:08:41.440 --> 0:08:45.720 for data centers, and Quanta I actually I joke that 0:08:45.760 --> 0:08:48.480 these are ditch diggers or their pool climbers, because they 0:08:48.520 --> 0:08:54.200 effectively distribute or make the transmission for electricity. 0:08:53.600 --> 0:08:55.040 Both of these. 0:08:54.840 --> 0:08:58.480 Things are going to be to have radically changing competitive 0:08:58.559 --> 0:09:02.200 dynamics in that, for example, for Quanta, we don't have 0:09:02.320 --> 0:09:06.760 enough electricity, so we expect to see utility capex start 0:09:06.800 --> 0:09:10.400 to rise incrementally over the next five to seven years, 0:09:10.800 --> 0:09:13.079 all of which will service the people that implement the 0:09:13.800 --> 0:09:14.720 transmission lines. 0:09:15.480 --> 0:09:17.720 For Vertive, you have a. 0:09:17.679 --> 0:09:23.320 Very changing dynamic on the cooling aspect of the data 0:09:23.360 --> 0:09:25.760 center and vertive ends up being the net winner. 0:09:26.160 --> 0:09:29.120 And God, that's really interesting because we're hearing again and 0:09:29.160 --> 0:09:33.679 again that this is a worry for example of Sam 0:09:33.679 --> 0:09:36.240 Altman been going around the Middle East in particular, worrying 0:09:36.240 --> 0:09:39.320 that the key anxiety, the kid bottlenecks here are energy 0:09:39.440 --> 0:09:41.679 and indeed access to GPU. That's why there's been so 0:09:41.760 --> 0:09:44.199 much reporting of the fact that he's trying to build 0:09:44.240 --> 0:09:47.840 up other chip makers. How have you been thinking about 0:09:48.280 --> 0:09:51.040 ultimately that actually being the key bottleneck? Do you agree 0:09:51.200 --> 0:09:53.679 that energy is going to be the real issue here, 0:09:53.760 --> 0:09:54.439 limiting factor? 0:09:54.800 --> 0:09:59.600 I think that technology is pretty amazing in that as 0:09:59.640 --> 0:10:02.959 you forward, I mean, as we stand today, is energy 0:10:03.000 --> 0:10:03.880 going to be a bottleneck? 0:10:03.960 --> 0:10:04.319 It is. 0:10:04.760 --> 0:10:07.720 However, as you move forward two three and four years, 0:10:08.120 --> 0:10:11.560 the energy efficiency efforts that are occurring, not only at 0:10:11.559 --> 0:10:13.679 the chip level but at the data center level are 0:10:13.760 --> 0:10:19.000 quite significant, and we think that the technology on cooling 0:10:19.160 --> 0:10:23.520 and electricity will keep up and not hamper. 0:10:23.160 --> 0:10:24.760 The growth of the industry. 0:10:25.240 --> 0:10:29.800 So, for example, if you look at the performance per 0:10:29.920 --> 0:10:33.880 want of the B one hundred, which is Nvidia's newest chip, 0:10:34.320 --> 0:10:38.560 it's actually significantly more efficient than the older generations, and 0:10:38.600 --> 0:10:41.480 so as you move through time, I do believe that 0:10:42.520 --> 0:10:45.800 on a performance per want basis, you end up getting 0:10:45.880 --> 0:10:48.920 more efficiency than is currently baked in by the market. 0:10:49.960 --> 0:10:52.520 What is the market getting? 0:10:52.520 --> 0:10:56.440 Two wigsubun Do you believe any view that the hype 0:10:56.480 --> 0:10:59.839 has made market capitalizations unsustainable in certain names? 0:11:01.040 --> 0:11:04.400 I don't think the market is exuberant right now. And 0:11:04.400 --> 0:11:07.400 and you know everyone always asks like, are we in 0:11:07.440 --> 0:11:09.240 a bubble? Are we in an AI bubble? And I 0:11:09.280 --> 0:11:12.360 would say it's much too early. This is very much 0:11:12.559 --> 0:11:17.200 like you know, it's revolutionary in terms of what is 0:11:17.240 --> 0:11:19.840 about to happen. So, you know, I was just look 0:11:19.880 --> 0:11:23.360 at the valuations across across the mag seven this morning. 0:11:23.840 --> 0:11:24.680 You look at Meta. 0:11:24.880 --> 0:11:28.120 Meta currently trades at a ten percent discount to the 0:11:28.160 --> 0:11:31.760 market on our twenty twenty five earnings. Actually it might 0:11:31.760 --> 0:11:33.760 be a fifteen percent discount now that it's pulled back 0:11:33.760 --> 0:11:36.720 so much. That to me, for UH, a company that 0:11:36.840 --> 0:11:40.600 is going to change the way that we interact as 0:11:40.679 --> 0:11:44.959 consumers with AI and how businesses interact with consumers is 0:11:45.000 --> 0:11:47.480 not an egregious multiple. You know, you can go down 0:11:47.520 --> 0:11:50.360 the list with Amazon. Amazon doesn't trade at that egregious 0:11:50.360 --> 0:11:53.040 so multiple to the market, especially as they're showing leverage. 0:11:53.280 --> 0:11:56.240 You know, you look at Microsoft Microsoft again, if you 0:11:56.280 --> 0:11:58.080 look at twenty twenty six numbers, it trades at a 0:11:58.080 --> 0:12:01.560 five percent free CASHUW yield. So to me, these aren't 0:12:01.640 --> 0:12:06.480 really set up as bubble esque type valuations, and we're 0:12:06.559 --> 0:12:09.840 not terribly exuberant, especially after this fallback. 0:12:10.160 --> 0:12:11.760 Well said Uncle Crawford. 0:12:11.800 --> 0:12:13.920 Really great to get your perspective as someone who is 0:12:13.960 --> 0:12:16.520 holding a lot of these names, investing in and indeed 0:12:16.559 --> 0:12:19.760 adding to we thank you, Uncle Crawford of algia. 0:12:19.800 --> 0:12:20.920 Great way to kick off this week. 0:12:20.960 --> 0:12:23.880 Meanwhile, coming up, Apple preparing to unveil a new lineup 0:12:23.880 --> 0:12:25.839 of vipe as we're just talking about. It's the product 0:12:25.920 --> 0:12:29.240 launch called Let's Loose as tomorrow we're gonna be previewing 0:12:29.280 --> 0:12:33.079 the event. Next Meanwhile, let's just look at GameStop, which 0:12:33.760 --> 0:12:36.920 is moving for no apparent reason. Again, you know, it's 0:12:36.920 --> 0:12:40.120 the og meme stock. We're down some thirteen percent last week. 0:12:40.160 --> 0:12:43.440 Of course it was rallying hard. I mean ended Friday's 0:12:43.440 --> 0:12:45.679 session up about twenty nine percent. That seems to be 0:12:45.720 --> 0:12:49.080 a real well desired to be getting in and out 0:12:49.320 --> 0:12:51.360 on this key meme name once again, we'll keep an 0:12:51.360 --> 0:13:03.160 eye for you. This will blue Bid Technology. Berkshire hathawayn 0:13:03.440 --> 0:13:05.400 Hel does annual meeting over the weekend, of course, and 0:13:05.600 --> 0:13:08.080 Apple quickly became one of the biggest topics as the 0:13:08.120 --> 0:13:11.520 meeting unfolded. Warren Buffett here praise the company, calling the 0:13:11.559 --> 0:13:13.720 iPhone one of the greatest products of all time. 0:13:14.200 --> 0:13:16.600 That was after revealing h kind of steak. 0:13:16.880 --> 0:13:19.240 Berkshire reported a one hundred and thirty five point four 0:13:19.240 --> 0:13:20.839 billion dollar holding in Apple at the end of the 0:13:20.880 --> 0:13:22.079 first quarter, down. 0:13:22.160 --> 0:13:24.840 From one hundred and seventy four zero point three billion 0:13:25.000 --> 0:13:25.760 at the year end. 0:13:26.360 --> 0:13:28.640 Now, meanwhile, whole news when it comes to Apple and 0:13:28.679 --> 0:13:31.320 fox Conn, which of course assembles the majority of iPhones, 0:13:31.440 --> 0:13:34.040 posted its strongest monthly sales growth since the start of 0:13:34.080 --> 0:13:36.000 twenty twenty three. And just look at what the impact 0:13:36.000 --> 0:13:38.600 I had on the shares potentially of course, raising those 0:13:38.600 --> 0:13:42.360 expectations for iPhones for a server sales. I spoke it 0:13:42.400 --> 0:13:44.440 all down and push your heead tomorrow's event. Of course, 0:13:44.480 --> 0:13:47.559 all regarding the iPad Springberg's Mark Guman here with us 0:13:47.760 --> 0:13:50.000 and on high or fox Conn, however you want to 0:13:50.040 --> 0:13:52.640 talk about it, always a great tell we'd been worried 0:13:52.679 --> 0:13:55.120 about its previous earnings. But now it looks that from 0:13:55.160 --> 0:13:58.840 a month to month basis on year on year monthly posting, 0:13:58.880 --> 0:14:00.720 we're getting record say for the company. 0:14:02.960 --> 0:14:05.600 If you look at the prior quarter, han Hi's revenue, 0:14:05.800 --> 0:14:08.640 their expectations, their forecasts. 0:14:08.080 --> 0:14:09.360 Weren't so hot, right. 0:14:09.400 --> 0:14:12.240 And then you saw Apple reveal its iPhone sales for 0:14:12.320 --> 0:14:15.319 the previous quarter last week, and you saw the iPhone 0:14:15.320 --> 0:14:18.360 come in about five billion dollars down on a year 0:14:18.400 --> 0:14:19.280 of a year basis. 0:14:19.480 --> 0:14:19.680 Right. 0:14:19.960 --> 0:14:22.200 But looking ahead to the June quarter, the current window 0:14:22.240 --> 0:14:24.800 that we're in, Apple set it expects revenue to grow 0:14:25.400 --> 0:14:29.480 low single digits, right, so growing for the first time 0:14:29.480 --> 0:14:33.400 in a couple quarters. Here, and fox CON's expectations for 0:14:33.480 --> 0:14:35.600 this quarter as well, it seems to align with that, 0:14:35.800 --> 0:14:39.320 given that they still assemble the vast majority of iPhones 0:14:39.480 --> 0:14:42.600 via fox Con. Now not only iPhones driving that han 0:14:42.720 --> 0:14:46.480 high revenue, it's also development and manufacturing of AI servers 0:14:46.480 --> 0:14:49.720 for various companies. However, I don't believe that the AI 0:14:49.800 --> 0:14:53.680 servers that fox Coon is building are connected to Apple's 0:14:53.720 --> 0:14:57.160 AI announcement coming in June. For all intentsive purposes, the 0:14:57.200 --> 0:14:59.880 AI from Apple will be on device at least from 0:14:59.880 --> 0:15:03.560 the get go, and probably using third party infrastructure, not 0:15:03.680 --> 0:15:05.560 something they're creating on their own. But one day I 0:15:05.600 --> 0:15:08.200 do expect Apple to move to its own AI server environment. 0:15:08.400 --> 0:15:10.840 Oh interesting, Okay, And therefore talk to us about the 0:15:10.880 --> 0:15:14.680 long term commitment to Apple and indeed perhaps a pullback 0:15:14.720 --> 0:15:18.080 coming from what is its third biggest shareholder, Berkshire Hathaway saying, look, 0:15:18.120 --> 0:15:20.080 we are pulling and trimming back, but they still seem 0:15:20.120 --> 0:15:22.720 to believe in Apple as a key tech winner. 0:15:23.960 --> 0:15:24.160 Yeah. 0:15:24.200 --> 0:15:26.120 I think Buffett does seem to believe Apple is a 0:15:26.200 --> 0:15:30.120 key tech winner. I mean Buffett in his typical process 0:15:30.120 --> 0:15:31.560 for which stocks he buys. 0:15:31.320 --> 0:15:33.720 Apple is right up his alley. Right, You're not. 0:15:33.720 --> 0:15:38.000 Going to see Apple grow tenfold or to some significant 0:15:38.040 --> 0:15:40.760 degree at this point, but you know that it's more 0:15:40.840 --> 0:15:42.920 likely than not that you're going to get solid returns 0:15:42.920 --> 0:15:45.080 off this company. You're not going to lose your money. 0:15:45.160 --> 0:15:48.080 It's certainly better than putting your money in a bond 0:15:48.160 --> 0:15:50.720 market or in a mutual fund in most cases. So 0:15:51.200 --> 0:15:53.440 it is a very safe pick Apple, I think for 0:15:53.800 --> 0:15:56.560 many quarters to come, despite the fact that it's not 0:15:56.600 --> 0:15:58.640 going to be a high flyer or anything like that. 0:15:58.720 --> 0:16:00.680 I meant one hundred and ten billion dollar share by 0:16:00.720 --> 0:16:03.400 that many feeling that that's the tell it's a value 0:16:03.440 --> 0:16:05.880 stock now rather than a growth stock mark. But I'm 0:16:05.920 --> 0:16:08.800 interested in away from the arbitrary way in which we 0:16:08.880 --> 0:16:11.280 describe whether you buy into this stock. We are all 0:16:11.320 --> 0:16:14.200 caring about the products and the unveilings, and we're going 0:16:14.240 --> 0:16:14.600 to get some. 0:16:18.360 --> 0:16:21.680 Yeah, that's right. Tomorrow Tuesday, seven am Pacific time, t 0:16:21.720 --> 0:16:25.200 am Eastern time, is there let loose iPad product launch. 0:16:25.480 --> 0:16:27.920 There's going to be a few things coming. One is 0:16:27.920 --> 0:16:30.640 a revamped version of the iPad Pro. This will be 0:16:30.680 --> 0:16:34.000 the most significant update to the company's tablet since the 0:16:34.040 --> 0:16:37.680 current model was launched in twenty eighteen. You're also going 0:16:37.720 --> 0:16:40.680 to see a new iPad Air. Why is that important, Well, 0:16:40.840 --> 0:16:43.280 in addition to a spec bump, you're getting a bigger 0:16:43.280 --> 0:16:45.800 iPad Air, something closer to the size of a MacBook 0:16:45.840 --> 0:16:48.160 Air for the screen, a twelve point nine inch display. 0:16:48.680 --> 0:16:51.160 This will be the first time that Apple's offering a 0:16:51.240 --> 0:16:54.800 twelve point nine inch iPad at that mid tier price 0:16:54.840 --> 0:16:57.160 point right and at that mid tier product line. So 0:16:57.240 --> 0:16:59.840 that's a big deal as Apple looks to make it 0:17:00.080 --> 0:17:02.760 iPads more like Max and expand the product line there, 0:17:03.280 --> 0:17:05.600 and then you're going to see them rebuild the ecosystem 0:17:05.600 --> 0:17:08.919 around its iPads. It's two key new accessories. Is going 0:17:09.000 --> 0:17:11.679 to be a new Magic keyboard, a higher end version 0:17:11.840 --> 0:17:14.720 that makes the iPad pro look more like a laptop 0:17:14.760 --> 0:17:17.480 all in use, something that's a bit more durable and convenient. 0:17:18.160 --> 0:17:21.240 The second thing is a pro version of the Apple pencil, 0:17:21.320 --> 0:17:24.560 so a new higher end skew of its Apple pencil silence. 0:17:24.560 --> 0:17:28.000 That's a really popular accessory that artists and creatives and 0:17:28.040 --> 0:17:31.120 others like to use for drawing. The new version will 0:17:31.160 --> 0:17:33.399 have some new gestures so you can squeeze on it 0:17:34.000 --> 0:17:37.080 to have certain commands. Apples homepage was updated this morning 0:17:37.359 --> 0:17:39.760 where you can use an Apple pencil a virtual pencil 0:17:39.760 --> 0:17:43.000 to erase the logo on Apples homepage, which might imply 0:17:43.080 --> 0:17:46.160 that the pencil's finally getting an eraser on the back 0:17:46.320 --> 0:17:49.719 like a classic number two pencil. And the other thing 0:17:49.760 --> 0:17:52.040 I've written that we'll have is hap to feedback, so 0:17:52.040 --> 0:17:54.680 when you use the pencil, it'll vibrate back on your finger, 0:17:55.359 --> 0:17:58.240 so you know what you're doing based on tactile feedback. 0:17:58.320 --> 0:18:01.240 So that's going to be a pretty nissed the update 0:18:01.240 --> 0:18:04.520 as well. And I think overall, for iPad fans, especially 0:18:04.560 --> 0:18:08.200 those who've been waiting many, many, many months, even years 0:18:08.200 --> 0:18:10.760 for a revamp version of iPad Pro, tomorrow is going 0:18:10.800 --> 0:18:12.800 to be quite an exciting product launch for them. 0:18:13.040 --> 0:18:16.800 I love playing Mark German bingo of all the things 0:18:16.840 --> 0:18:19.119 that you've just told us and playing it out tomorrow 0:18:19.200 --> 0:18:21.280 when they all come to life. We thank you, Lumog's 0:18:21.280 --> 0:18:23.560 Mark German on all things Apple and iPad. 0:18:31.720 --> 0:18:32.840 Time now for talking tech. 0:18:32.880 --> 0:18:36.479 First up Chinese self driving firm Momenta, but as far 0:18:36.600 --> 0:18:39.480 confidentially for an IPO in the United States calling to 0:18:39.560 --> 0:18:42.320 sources and it may happen as early as this year now. 0:18:42.320 --> 0:18:44.440 The company was founded in twenty sixteen by a team 0:18:44.480 --> 0:18:47.760 of AI engineers from Microsoft Research Asia, and its backers 0:18:47.760 --> 0:18:51.520 include General Motors and Tamasek Plus. The Biden Administration is 0:18:51.560 --> 0:18:54.280 opening applications for two hundred and eighty five million dollars 0:18:54.320 --> 0:18:57.640 in federal funding set up an institute focused on digital 0:18:57.720 --> 0:19:01.280 twin technology for the chip industry. This technology can leverage 0:19:01.280 --> 0:19:05.120 AI to help reduce development and manufacturing costs. And Jack Dawsey, 0:19:05.280 --> 0:19:07.880 when he's left the board of social networking service Blue Sky, 0:19:08.119 --> 0:19:10.119 which he of course, helped fund and popularize. 0:19:10.160 --> 0:19:11.560 A year ago, in the week of Coin of some 0:19:11.640 --> 0:19:12.480 regret over. 0:19:12.359 --> 0:19:14.679 The sale of Twitter to Elon musk Now, the Twitter 0:19:14.720 --> 0:19:17.600 co founder took to now x to tout his new 0:19:17.600 --> 0:19:21.719 philanthropic grants to open Internet protocols, which he described as 0:19:21.800 --> 0:19:25.480 quote freedom technology. In fact, he said that X is 0:19:25.520 --> 0:19:29.280 such a freedom technology. Now, let's turn our attention to 0:19:29.280 --> 0:19:31.640 the French tech company Atos now. 0:19:31.720 --> 0:19:33.480