Apple, President Trump, Taiwan discussed on Bloomberg Daybreak: Asia

Automatic TRANSCRIPT

On these eggs departments and the workers for either not working or not getting paid as hostages Jabba temper tantrum pound the table and say, it's all our way. But we've heard all these people. So what the heck was this meeting? Bloomberg Sahil Kapur didn't expect it to be dialogue. They didn't expect it to conversation or negotiation. So from the White House's perspective. This was a, you know, an attempt to appear engaged in this conversation into to not look asleep at the wheel. So tomorrow house speaker in waiting Nancy Pelosi says she'll introduce legislation that will fund the government, including a Bill approved by Republican Mitch McConnell in the Senate McConnell now says the Senate won't even vote on anything that the president says he won't sign. So we all know how to spell impasse me. Well, Mr. Trump says he's ready for to meet again with Kim Jong UN he says, he's. Just received a letter from him and that chemists pledge not to make or test nuclear weapons or give them to others in Kim's address to his people. He said the US had to loosen sanctions or he'd find another path to protect the sovereignty Taiwan's, president Syon loan has rejected. China's president Xi Jinping's call for unification and for talks to get there altogether. Also, I saying that China has to squarely face the factual existence. The Republic of China Taiwan instead of denying the democratic system that Taiwanese people have built together. And Bloomberg's Tom MacKenzie says president tie can point to Hong Kong, she and her Ponzi could of course point to the erosions of freedoms in Hong Kong as an example of why not system may not work for the Taiwanese people. Global news twenty four hours a day on Aaron a talk on Twitter powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries in San Francisco, I'm Ed Baxter. This is Bloomberg. All right. Let's take a closer look at the story on apple Bob O'Donnell is with us. He is the president and chief analyst at technologists research pleasure to have you on the program for those who kind of follow this company closely. There was anecdotal evidence that we were walking into a season of week iphone demand. Was this surprising to you when they guided lower on first-quarter results. Absolutely. I mean, you know, apple hasn't done a vision. Dour for white apparently almost fifteen years. So this is a very unusual step, particularly because earlier just a few months back. They expected this quarter to be one of their best. So a number of things hit them. Obviously we've seen that those price points that they had for the iphone sippy are too high for most consumers, and that really hit home and people just weren't willing to upgrade. And we've also seen the overall extension of sparked for lifetimes because people think they're spark phones are good enough. Then finally, most importantly, the impact of the trade war. I think isn't so much on the tariffs in China. But the fact that there's really more nationalism. Now, apple, of course, being seen as major US company and Chinese citizens starting to rebel a bit and going more towards away and people and uphold these other major Chinese domestic so very interesting combination of factors here that led to this restatement, so Bob this is Stephen Engle is this a new norm for apple. Or will a new killer product solve all ills. Even you know, look of apple is always managed to pull tricks out of his hat. But I think it's gonna take some time before the next rabbit pops out to be honest with you they are expected to launch a video service this year. But you know, look they face competition from net flicks. Dizzy is going to do something as well. So that's going to be tough. And you know, they talked a lot about doing a are Dion and people expect them to do some sort of glasses or headset. But probably twenty twenty other challenge has even in the smartphone market where I phones are struggling a bit. Apple is also not going to have a five G capable phone this year. Now, admittedly, not everybody wants one but apple seen as being cutting edge. Traditionally, and they're going to be very late to the game on that technology as well as foldable screen, so all in all things are looking a little tough. Not to be honest. You surprising for those of us who watch apple for a long time. Everybody knew this point was going to happen was just a question of when and how so what what are they forced with now to cut prices as a way of maintaining growth. I do think they're going to have to cut prices. We saw a little bit of that over the holidays. They started to offer some discounts. I think you'll see the continue for them to continue to do that. I think we'll we may see revision in the frequency of iphone updates. It's hard to say for sure exactly what they're gonna do. There. Obviously have been building the services business for several years now. And I think they're going to continue to do that as I said with video service with other things maybe this is the year as well. Let's not throughout this possible. Responsibility that they finally make some kind of major purchase like a Netflix or a Disneyland tesla or some crazy big purchase that have all been rumored in the past. Maybe this change forces their hand and makes them consider something that they didn't really want to do before. Bob. Thank you for joining us and giving us your inside. Bob McDonald, Donald there. I'm sorry. Bob is president chief financial analysts to add to the tech analysis. Research firm talking a little bit about.

Coming up next