Apple, China, Theft discussed on BTV Simulcast

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Bluer technology. I mentally Chang in San Francisco, and we are calling it iphone. Those iconic words were uttered by Steve Jobs, twelve years ago this Wednesday introduce the world to Apple's now flagship product the iphone since John's introduced what is now. The most recognizable smartphone on the planet. Apple has sold over a billion iphones. And last year. Apple became the first publicly traded US company to hit a one trillion dollar market cap now since those highs it's been a bumpy ride for apple as the company recently cut its first-quarter forecast. But Morgan Stanley just gave apple a positive endorsement analysts Katy who already said a slowdown in services revenue last quarter looks quote temporary in nature and mostly related to apple care. Apple rose in early Wednesday trading adding to gains Tuesday to discuss I want to bring in the phone from Kansas City, Missouri. Bush managing director, Dan is currently has an outperform. On the company. So Dan, do you see the positives to? Install base story. Seven hundred fifty million iphone active. Rian? In upgrade next twelve months. Dark waters. But ultimately, I think Apple's going to merge from this with the specific focus on the services business, really fundamentally these tour. But they're gonna. Services and price cuts which kind of front and center. That's Samsung also reporting disappointing news this week sales down, especially in the chip business. But also in the smartphone business, they don't specifically mention China. But talk about a broader macro economic slowdown. Perhaps this isn't just China related this is industry wide and could that mean longer term problems for apple? Good point. More Poon continue to be mature where we are in the cycle. You saw that was Samsung Apple's earnings tobacco last week. I think right now it's about. Some wound over the next twelve eighteen months. If you see that within stores to increase focuses on the services. Is some of the park service's. Four hundred fifty billion. That's why you Bush an apple here. So right now, this is going to be. Eight months ahead for cook. To help get apple. The darkest period in the modern there for the comprehend the services business still grow to that point. If iphone sales, let's say plateau, I mean, people are still using iphones and buying services for them. But if the actual iphone market doesn't grow does it still get to four four fifty billion as you say. Look right now it's about. Where it is or increase, which we believe that that is within the realm of possibilities there. We believe is going to be like. Likely three more services more content more subscription into that flywheel grapple. That's going to be the key montage causing today. We continue still think it's only about fifteen percent penetrated further monetize with more services. Which is why we believe a significant content acquisition. You're gonna come down the road. Dapple tries to further put fuel in the tank on the services side. All right. Well, we'll see if apple continues to respond to some of these more positive reports, Dan is when Bush security thanks so much for calling in today. Now, while the latest round of trade talks between China and the US concluded with a cautious sense of optimism a court case in San Francisco is highlighting a different approach to fighting the stealing of tech secrets by Chinese firms. The Justice department is using new tactics in its case against two Chinese companies as attempts to safeguard American IP in one of those new. Moves is bringing a civil suit against those companies here to tell us more our Bloomberg legal reporter, Joel Rosenblatt. So explain what's happening here stepping back. The big picture is this is a trade tickets to begin with an indictment a criminal prosecution of trade secrets theft against Jin wa Chinese company, it's attempting to manufacturer de ram four China for the Chinese market and United Microelectronics corporation. That's better known as UM see based in Taiwan. So big picture is this is a criminal prosecution of those two companies for trade secret theft from Boise, Idaho based Micron. But now there's a civil suit a new tactic. Right. So there's a long side the criminal prosecution. There's a civil suit. This is invoking a provision of the economic espionage act. It's been in the law since nineteen Ninety-six. But it's the first time it's ever been used. Wow. So that's an interesting development is unusual. Kind of see how those two work. Together. Of course, as you mentioned that the outset is also in the context of of a trade war with China. So what could the benefit of a civil suit? Right. So that's the big question when I put this to my trade secrets sources experts. They're scratching their heads trying to figure it out spent months kind of digging and the answer is this. The civil suit offers some expedient. It offers the ability of the United States to get an order from the court that blocks sales of D ram chips to the United States much more quickly than than the criminal indictment. What that's one piece the other pieces. It's an attempt to kind of layer the suit to kind of throw different things at these Chinese companies to try something different the trade secrets staff prosecution has been going on for three administrations. Now, I think this is an attempt to try something just to try to mix it up a little bit. So the companies were just in court what happened today was eight arraignment. So they were just kind of formally told of what what the what the indictment contains the penalties. They may face both companies entered a not guilty plea. But this by itself is is a big difference. It's a big step for for prosecutors. Because normally even getting the step has taken a very long time. So is there any way to say whether this is because of a trade war because of of a new stance on China by. By the administration. Well, like, I said this has been going on for at least three administrations kind of talked tough attitude towards China where trade secrets theft is concerned. Prosecutors. The Justice department officials will tell you that no this is something we're doing independent of of the White House. It's kind of you know, it's hard to believe that there's not some coordination between the White House. The Commerce Department has played a serious role in this in this case are not in the case. But in actions against these companies, prosecutors will tell you know, this is a trade secret theft were prosecuting it on our own could we see more tactics? Like, this more cases like this coming down the pike. I think so I think we're gonna see how this one goes. Right. This is the first time they've invoked this provision. We'll see how quickly it moves whether or not it makes a difference. But I think probably likely to see that. All right, Joel Rosenblatt, we'll send you back to court. Thank you so much for heading over here to talk to us. Coming up Google announced. A slew of new features for its digital voice. Assistant CAS this week how they could help take on Amazon's Alexa, next flies. We'll take a road trip across Europe in our experience. And recommendations later this hour, this is Bloomberg. Where in the world is the financial news you need. Do you think that the Bank of England will actually follow through where is the business and market information? That drives your success. This game of chicken is going to end the end. Where would you find information on political events around the globe? Is this going to have an impact on the Chinese economy anywhere? 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