[00:02] transition to be the best ever. We want it to be a textbook example and that is exactly how it's going. I feel so great about how it's going. John is ready to about how it's going. John is ready to be the first-class CEO for a first-class
[00:15] company. And uh I I'm so excited about it. I yeah, I'm so incredibly excited, right? It's just such an incredible opportunity and I'm so lucky to have Tim as a mentor and it's uh yeah, it's
[00:28] Yeah, and what do you what do you think the big questions investors want reins? >> Uh going into the the big chair uh chairman role. I almost said big chair in the sky. He's He's just leaving the
[00:43] CEO role. That's wild. Um anyway, we return to phrase. Um I I think the big questions for him are going to be How do you kind of goose iPhone sales further? That's been the biggest question I think for everyone. Uh it's kind of the the
[00:59] big criticism against Cook is that there wasn't a, you know, new product uh that services is the second largest business, right? The AirPods are I mean, at first mean, you can't walk around without people having them. Everybody's got
[01:14] you're going back to the wired ones, whatever. Um and the the Apple Watch the >> it's they just did great uh uh sales in China. We're obviously want to see what where that goes there. But,
[01:30] answer the question of what does Apple have next up on deck? And I think, you have been rumored. Mark Gurman over at Bloomberg talked about it. Uh you know, but we've seen and we've seen Meta sell millions of units, but we've also seen
[01:45] some pushback against them recently with regards to privacy. That's always been that goes. >> even uh is there some new device, like a new form factor, something with Apple that,
[01:57] that Dan and Josh aren't staring into a screen. >> Yeah, I mean, I I do see, you know, the there's a lot of companies kind of piece of jewelry, smart rings, don't you know, Oura's got that, Samsung's got
[02:10] >> there's there's a lot of talk about pendants. I don't know if that's ever uh piece of, you know, equipment. I I just feel as though, you know, it just feels bizarre, right? I mean, if
[02:24] >> not a pendant guy. I would not take one. No, if I mean, it's just I I have a nearly 7-in screen that I can look at YouTube or or YahooFinance.com on. >> Uh or a pendant that I can't even interact with. Well, look, like, you
[02:39] know, I'm all for not being glued to your phone all the time, says the guy but I I need a little something more than just a pendant. So, I don't know if you know, it could be the glasses, it could be a smart ring kind of makes
[02:52] marketed the Apple Watch, they marketed it as piece of jewelry, then they kind of switched up and said, "Okay, actually health." You could see a Some people don't like the idea of having the watch screen with them all
[03:05] the time, so, you know, that can be a place where they go. Again, the glasses, know, it's interesting when you try them, but then it's, you know, I mean, I take my glasses off to go on air, right? I don't want to wear these. I do it
[03:18] that I can see. I don't think you're going to improve on that by having a >> I mean, if they're able to get it as good as Samsung's, especially for a first-generation product since it's been working on this
[03:32] for this what it's eight eight generation, and they've knocked it out as far as Apple goes, I do think people will be interested in it more so than the Air, but that price tag
[03:44] is going to be, you know, pretty pretty hefty. know, Samsung's dealing with that as well, and they're still seeing good higher selling price, so then you you
[03:56] and I'm going to read your review, and actually pretty impressive, I'm going to be I'm going to end up pulling the things that's how it plays out. Apple tops a $5 trillion market cap. What
[04:09] changed here? Why why is Apple now a a fan favorite for investors? >> Uh I think it's kind of a seesaw between what we saw previously with Apple uh and uh what we're seeing now with regards to AI. That's not that Apple's
[04:23] AI is blowing anyone away. It's not, you know, it's not here yet. I've, you know, been able to see what the the new AI is going to be like, the the improved Siri, and it's it's better than what was around, for sure. Uh but I don't
[04:36] Apple because uh of AI. I think they're diving in because of its lack of AI exposure, where, you know, these other companies, the Googles, the Metas, uh the Microsofts, they're all, you know, Amazons, they're pouring billions into
[04:49] this. Right, Amazon's supposed to spend 200 billion uh well, Google was what, raised their capex to the top end to 195 uh billion, so, you know, close enough to two 200 billion. And so, you know, Apple doesn't have to worry about that,
[05:04] say, "Okay, well, we could kind of take that out of We're nervous about the the ROI for this. Maybe we'll just hang out with >> you think yeah, it's it's like folks are basically saying, "Okay, Apple's
[05:18] relatively restrained AI spending." Now it's seen as a strength to some folks, >> Not not a weakness, although they did say that they're going to draw down some of their cash on hand as they invest more into
[05:33] AI, and you know, try to build that ecosystem out a little bit more. I think it's also though, you know, while it's it's insulated largely from the AI kind of swings, it isn't fully insulated from AI in that
[05:48] it's had to raise prices on the Mac and iPad. And, you know, the I think the bigger uh question is then, okay, so what does that mean for the iPhone going forward with, you know, the the 18 likely coming in September. And so, you
[06:02] know, some of the analysts out there uh are basically saying, "Look, uh this could be a problem for them." Uh let's see, who was it? Uh said that >> Not a fan is the call.
[06:14] >> a fan. Not a fan. Saying basically that, you know, if the prices go up, that want to upgrade, that means fewer people that will stick around for services. And the long run. But other others say, "Look, it's going to hurt gross margins
[06:30] the uh uh let's see, who was it here? Uh Edison Lee over at Jefferies, he had said, you know, the the gross margin impact would come a quarter after uh Apple has to
[06:43] kind of eat uh higher memory prices. And so, you know, we we don't know the full effect of that just yet. Um you know, Apple was also able to control kind of Apple was also able to control kind of the memory market for years just because
[06:57] they were able to dictate pricing. You know, it there wasn't this huge amount Apple's kind of playing the defense, and maybe the memory makers are saying, maybe we'll give you a little squeeze back." But, you know, I I do think it'll
[07:11] be interesting to see. I also think on the idea of the slowing uh growth, you know, you add $100 here, you add $100 there, but if you're paying it in like, you know, a lot of people do, you're not going to see that huge of a
[07:26] jump in your monthly bill. Now, if it was, you know, $20 a month extra, then we're already subscribed to everything else under the sun. So, that could be an issue, but I I don't necessarily know if it will be kind of a devastating hit to
[07:40] Apple if they do end up having to raise prices.