♪
DAVID: WELL, APPLE CLOSING
LOWER, DOWN ALMOST 7% AFTER
DROPPING A BOMB ON INVESTORS IN
ITS EARNING CALL YESTERDAY.
YOU MIGHT REMEMBER WE TALKED
ABOUT IT HERE, REVEALING THEY
WILL NO LONGER DISCLOSE HOW
MANY iPHONES, iPADS AND
MAXES THEY SELL AFTER REPORTING
FLAT UNIT SHIPMENTS FOR THE
IPHONE IN THE FOURTH QUARTER.
AS CONCERNS GROW OVER SLOWING
iPHONE DEMAND, TESLA'S ELON ARE
MUSK WEIGHED IN, AS HE USUALLY
DOES.
I STILL USE AN iPHONE AND
EVERYTHING, BUT APPLE USED THE
REALLY BRING OUT PRODUCTS THAT
WOULD BLOW PEOPLE'S MINDS, YOU
KNOW?
AND STILL MAKE GREAT PRODUCTS,
BUT THERE'S LESS OF THAT.
I DON'T THINK PEOPLE ARE
NECESSARILY RUNNING TO THE STORE
FOR THE iPHONE 11.
WELL, GANG, IT'S NOT EXACTLY A
NEW COMMENT, BUT ELON MUSK
SAYING IT, DOES IT MAKE ANY
DIFFERENCE?
>> IF YOU'RE ONLY GOING TO
FOLLOW TWO PEOPLE ON TWITTER,
ELON MUSK AND DONALD TRUMP.
[LAUGHTER]
APPLE'S GOT PROBLEMS RIGHT NOW.
WHAT CAN I TELL YOU.
THEY'RE SAYING, YOU KNOW WHAT?
GROWTH OF THIS PHONE AT $1,000,
IT'S PLATEAUED.
AND YOU KNOW WHAT.
>> IT'S BECAUSE ALL OF THESE
COMPANIES WANT TO BE PUBLIC, BUT
THEN THEY WANT TO BE PRIVATE.
ELON MUSK KNOWS ABOUT IN THIS
MORE THAN ANYBODY.
THEY DON'T WANT TO DEAL WITH
HAVING TO TELL PEOPLE EVERYTHING
THAT'S GOING ON WITH THEIR
BUSINESS.
THEY'RE NOT GOING TO THROW A HIS
CITY FIT, BUT -- HISSY FIT.
WHY WOULDN'T, WHY OVERSHARE?
THE REGULATORS KIND OF GIVE THEM
A LITTLE PRESSURE, BUT I DON'T
BLAME THEM.
>> JONAS, I DISAGREE WITH YOU,
AND I DISAGREE WITH MUSK.
IT'S EASY TO LOOK AT APPLE AND
JUST SEE THEIR PRODUCTS.
JUST LIKE IT USED TO BE EASY TO
LOOK AT IBM AND JUST SEE
MAINFRAMES.
THAT'S NOT THE GROWTH PART OF
THEIR BUSINESS.
SO HE'S RIGHT ABOUT THAT.
EXCITING PRODUCTS?
IT REMAINS TO BE SEEN.
I THINK THERE'S SILL A LOT OF
PEOPLE BUYING iPHONES, iPADS
IF, ETC., ETC.
BUT THE REAL UNDER THE COVERS
THAT HE'S MISSING IS ONE OF
THEIR BIGGEST BUSINESSES, MAYBE
THEIR HIGHEST BUSINESSES, THEIR
SERVICES, THE APPLE CARE, APPLE
PAY, THE APP STORE, THE APPLE
MUSIC.
THAT'S A $9 BILLION BUSINESS
GROWING BY 30%.
THAT'S WHERE IT'S SHIFTING TO.
THAT'S STORY I THINK MUSK IS
MISSING AND A LOT OF
SHAREHOLDERS ALSO.
>> GARY, WHAT HAPPENED TO YOU?
[LAUGHTER]
YOU USED TO BE THE ONE THAT WAS
SO -- TO ME, APPLE IS ONE OF THE
MORE DANGEROUS STOCKS TO OWN
RIGHT NOW.
THIS, TO ME, IS VERY MUCH LIKE
MICROSOFT OR CISCO WAS IN 1999
AND 2000.
THIS WAS A STOCK THAT THE NO ONE
QUESTIONED, EVERYONE OWNED, IT
WAS VALUE FUNDS, GROWTH FUNDS,
AND TODAY'S MOVE IS REALLY QUITE
REMARKABLE BECAUSE APPLE HAD
BEEN REALLY ONE OF THE -- THIS
ISN'T ANY COMPANY, GUYS.
THIS IS 4% OF S&P, IT'S 12% OF
THE NASDAQ, I THINK 6% OF THE
DOW JONES INDUSTRIAL.
AS APPLE GOES, I THINK SO GOES
THE NATION, OR AT LEAST SO GOES
THE STOCK MARKET.
>> ONE THING I'LL POINT OUT,
GARY B., YOU MENTIONED THE
SERVICES BUSINESS LIKE APPLE PAY
AND THE MUSIC SUBSCRIPTION
SERVICE.
REVENUE WAS UP DOUBLE DIGITS,
BUT IT WAS GROWING SLOWER IN THE
MOST RECENT QUARTER THAN IT HAS
BEEN RECENTLY.
AND THEN YOU START TELLING
INVESTORS, HEY, WE'RE NOT GOING
TO BREAK OUT ALL THE DIFFERENT
UNIT SALES, AND THE QUESTION IS
OBVIOUSLY WHAT ARE YOU HIDING?
IN TERMS OF ELON MUSK, GOOD LUCK
TRYING TO OUTJERK STEVE JOBS,
BECAUSE YOU CAN'T DO THAT.
[LAUGHTER]
AND BY THE WAY, ELON, YOU'RE
JUST JEALOUS BECAUSE THE REVENUE
IN THE MOST RECENT QUARTER FOR
APPLE IS ACTUALLY MORE THAN THE
MARKET CAP OF TESLA.
>> IF YOU'RE GOING TO SLAM --
>> NO.
ELON MUSK, I ONCE INTERVIEWED, I
WAS TRYING TO INTERVIEW HIM ON
TELEVISION --
>> THERE YOU GO.
>> -- AND HE TOOK HIS MIC OFF
AND LEFT AND SAID I'VE GOT TO GO
TO A MEETING ATMAN -- AT GOLDMAN
SACHS.
>> DON'T CROSS THIS WOMAN.
DAVID DAVID THAT'S PRETTY NASTY.
>> IT'S JUST A JERKY MOVE.
AND BY WAY, ELON, YOU MAKE CARS,
BUDDY.
IT'S NOT LIKE YOU'RE MAKING
FLYING SHOES.
>> HE MAKES FLAMETHROWERS.
[LAUGHTER]
>> YOU KNOW WHAT?
THAT THAT'S NOT A FLAMETHROWER.
>> IT'S A GOOD POINT.
>> ELON MUSK ON THE --
[INAUDIBLE CONVERSATIONS]
IT MOVES ROOF -- IT REMOVES ROOF
TAR.
>> -- BEFORE IT GOES BAD PLACES.
>> HE'S A JERK!
IT'S AN ELECTRIC --
>> I GET IN, PLEASE?
THANK YOU.
I'M WELL AWARE OF THE PRICE
ACTION.
I GUESS, JONATHAN, AS I GET A
LITTLE BIT OLDER, MY CHARTS TEND
TO BE A LITTLE WIDER IN THAT I
LOOK AT A LONGER TIME FRAME.
[LAUGHTER]
HERE YOU HAVE A FANTASTIC
COMPANY.
THE DIFFERENCE BETWEEN SOME OF
THE COMPANIES YOU POINTED OUT
AND APPLE IS THOSE WERE MOSTLY
ONE-HIT WONDERS.
BY ONE HIT I MEAN THEY HAD A
CORE PRODUCT AND MADE IT.
>> MICROSOFT?
>> AND I DON'T BLAME THEM FOR
NOT HAVING UNIT SALES ANYMORE
BECAUSE THAT'S SAYING, LOOK,
THAT'S OUR OLD BUSINESS.
DAVID: WELL, THE MARKETS
PUNISHED THEM TODAY FOR THAT,
GARY, AND THE FACT, THE FACT IS
THAT THERE ARE A LOT OF MARKET
WATCHERS TODAY WHEN GOING GETS
TOUGH, APPLE HIDES ITS NUMBERS.
A LOT OF PEOPLE ARE WONDERING,
OKAY, TODAY THEY'RE HIDING THE
UNIT SALES, THEY'VE GOT
SOMETHING TO HIDE, THAT'S NOT A
GOOD THING.
>> STILL UP 22% YEAR TO DATE.
>> WELL, THEIR COMPETITORS --
[INAUDIBLE CONVERSATIONS]
>> BUT THEIR COMPETITORS DON'T
POST UNIT SALES EITHER.
>> LOOK, I AM SQUARELY BETWEEN
GARY AND JONATHAN IN THIS ONE.
IT'S NOT iPod SHUFFLE THAT
THEY CAN JUST MAKE IT DISAPPEAR.
THE WHOLE BUSINESS IS BUILT
AROUND PHONE RIGHT NOW, AND I
THINK INVESTORS SHOULD KNOW HOW
PHONE SALES ARE GOING.
IS THAT SO RIDICULOUSESOME.
>> I'LL MAKE THE POINT THAT IN
INTEL IN 2010 MADE MORE MONEY
THAN IT DID MANY 1999 -- IN 199
99, BUT STOCK TRADED AT A MUCH
LOWER PRICE.
A A LOT OF PEOPLE BUY APPLE