SIGNIFICANT NUMBER, AND THERE
ARE QUESTIONS ABOUT HOW IT
COULD AFFECT THE OVERALL MARKET
AND WHETHER IT WAS RESPONSIBLE
FOR PARING THE LOSSES TODAY.
TO SUN GROUP WEALTH PARTNERS
FOUNDER WINNIE SUN, FOX
BUSINESS' DEIRDRE BOLTON AND
START WITH YOU.
WHAT DO YOU THINK ABOUT THE
PSYCHOLOGY OF APPLE HITTING A
TRILLION AND WHETHER OR NOT
THAT IS GOING TO HAVE A --
LOOKED LIKE IT HAD A CARRYOVER
EFFECT IN THE MARKET TODAY?
POINTS OUT, POINTS EYES TOWARD
APPLE WHEN.
PEOPLE LOOK AT APPLE AND EVEN
GET PAST THE HEADLINES, THEY
APPLE BUT OBVIOUSLY IN GOOGLE
AND NETFLIX, EVEN IN FACEBOOK.
AND APPLE, A COMPANY THAT IS
NOT ONLY DOING GREAT BUT
REINVENTING ITSELF, THAT'S THE
WHOLE STORY BEHIND AMERICAN
DAVID: WINNIE, ONE THING ABOUT
APPLE, SOMETIMES YOUR STRENGTH
CAN TURN INTO A WEAKNESS, WE
SAW THAT WITH GE AS WE WERE
MENTIONING WITH CHARLIE A
MOMENT AGO, GE THROUGH JACK
WELSH BUILT THIS HUGE
CONGLOMERATE, THIS MULTIFACETED
COMPANY, IN SO MANY DIFFERENT
THINGS IN JACK WELCH'S HANDS,
IT WAS TERRIBLE.
APPLE IS INTO SO MANY THINGS.
STARTED MAKING THINGS, THE
iPHONE, THE MACES, ET CETERA.
NOW INTO THE SERVICE ECONOMY,
IT'S INTO THE CLOUD COMPUTING.
IT'S INTO A LOT OF STUFF.
DO YOU THINK IT MIGHT GET
OVEREXTENDED INTO WHAT IT'S
INVOLVED WITH?
>> THAT'S ALWAYS THE BIGGEST
CONCERN, SEEN THAT HAPPEN WITH
COMPANIES LIKE CISCO.
BUT IN THIS CASE, I THINK APPLE
HAS CERTAINLY BECOME A
LIFESTYLE BRAND THAT THE NEXT
GENERATION IS EXCITED ABOUT.
PEOPLE WERE TALKING BEFORE THAT
APPLE WOULDN'T MAKE THAT
TRANSITION TO BE IN THE HANDS
OF MILLENNIALS AND THE NEXT
GENERATION BUT FIND THAT NOT TO
BE THE CASE.
THEY ARE NOW, WE FOUND APPLE
PRODUCTS AND DON'T SEE
THEMSELVES TRANSITIONING OVER
TO ANDROID PRODUCT.
DAVID: YOU KNOW, DEIRDRE, SHE
BRINGS UP A TERRIFIC POINT
WHICH IS IT IS A BRIDGE BETWEEN
GENERATIONS.
SO MUCH WHAT HAPPENS
PARTICULARLY IN THE HIGH-TECH
COMMUNITY, THERE IS NO BRIDGE.
MY 26-YEAR-OLD DAUGHTER CAN DO
USING.
I CAN'T REALLY CATCH THE HANG
OF IT.
I STILL HAVEN'T CAUGHT ONTO
INSTAGRAM.
>> YES, YOU HAVE!
>> BUT THE FACT IS APPLE IS THE
GREAT BRIDGE.
IT BRIDGES EVERY GENERATION.
>> EVEN PEOPLE WHO DON'T OWN
THE STOCK OR WHO DON'T LIKE
APPLE PRODUCTS SAY THEIR
MARKETS HAS BEEN AN EXAMPLE OF
SIMPLICITY, RIGHT?
DAVID: THAT'S HOW IT STARTED,
RIGHT?
>> CERTAINLY.
AND USER FRIENDLINESS.
AND I THINK THE QUESTION A
WHILE BACK FOR APPLE WAS COULD
THEY GO BEYOND HARDWARE?
AND I THINK THE FACT THAT THIS
STOCK HAS HIT THE TRILLION
DOLLAR MARK BEFORE ANY OTHER
INCLUDING AMAZON, THE ANSWER IS
YES, WHETHER IT'S THROUGH
WORKING WITH DEVELOPERS SO
PEOPLE WANTED THEIR PRODUCTS,
APPS ON THE OPERATING SYSTEM.
TO BE A HIGH-TECH COMPANY AND
OPEN A PHYSICAL STORE.
THIS IS A MISSTEP.
THAT HAS BEEN A BOOMING
SUCCESS, TO THE POINT WHERE WE
SEE COMPETITORS SUCH AS SAMSUNG
NOW SETTING UP MOBILE SHOPS AND
TRYING TO MAKE INROADS AT BEST
BUY TO COMPETE WITH THAT
FEELING.
I THINK -- AND ACTUALLY THE
"NEW YORK TIMES" HAD A
JOBS WAS 90 DAYS AWAY FROM
BANKRUPTCY, BUT THE CONSTANT
PUSH OF INNOVATION, YOU TALK
ABOUT THE HALO EFFECT.
DAVID: I CAN'T THINK BACK TO
WHEN IT WAS ON THE EDGE, ON THE
BRINK, BUT ONE THING YOU DIDN'T
MENTION, WE'VE GOT TO MOVE TO
TRADE.
GARY B., THERE IS APPLE PAY,
IT'S GOTTEN INTO THE FINANCIAL
AREA, BUT AGAIN, LESSONS FROM
THE PAST, I REMEMBER WITH GE
NOTHING IS FOREVER IN THE WORLD
OF COMMERCE AND THERE COULD BE
A TIME WHEN IT'S NOT RIGHT FOR
APPLE.
REMEMBER EVEN WITH GE, THEY
WERE JUST BOOTED OUT OF THE
DOW.
THEY WERE ONE OF THE ORIGINAL
DOW STOCKS.
DAVID: I WOULD SAY SO.
CHINA SAYING IT WILL RETALIATE
AGAINST FURTHER U.S. TARIFFS.
GARY, I'M WONDERING IS THIS
IF IT CONTINUES TO ESCALATE.
IT LOOKS LIKE RIGHT NOW,
NEITHER SIDE IS STANDING DOWN,
BUT, OF COURSE, WE'VE BEEN
THROUGH THIS WITH TRUMP AND
NORTH KOREA.
LOOKED LIKE NEITHER SIDE WAS
STANDING DOWN.
NORTH KOREA WAS LAUNCHING
MISSILES OVER JAPAN, AND IT ALL
CAME TO NOTHING.
THAT'S WHAT I THINK THIS IS
GOING TO COME TO, IT WILL
WHICH WOULD BE A REAL BOON.
I DON'T SEE IT AFFECTING THE
ECONOMY SERIOUSLY, UNTIL IT
REALLY GOES NUCLEAR.
DAVID: WELL, AND THE ECONOMY
HASN'T BEEN AFFECTED.
AGAIN, THERE ARE PULLBACKS,
WINNIE, IN THE STOCK MARKET,
FROM TIME TO TIME, WHEN THERE
IS A TRUMP TWEET ON CHINA OR
SPEAKING, OUR ECONOMY SEEMS TO
BECAUSE OF DEREGULATION, TO
WITHSTAND CONCERNS ABOUT TRADE.
>> YES, I AGREE WITH YOU
COMPLETELY ON THIS.
I THINK THE ECONOMY IS STRONG
RIGHT NOW, AND I DO BELIEVE
THAT THE CHINESE WANTS TO WORK
WITH US.
THEY LOVE AMERICA, MONEY IS
STILL COMING IN.
DAVID: THEY CAN'T LIVE WITHOUT
US.
>> YES, WE'RE A VERY FRIENDLY
COUNTRY TO DO BUSINESS WITH AND
TO VISIT AND VACATION AT.
DAVID: THE QUESTION IS,
DEIRDRE, THE SPECIFIC
CONCESSIONS WE'RE TRYING TO
GET.
THERE ARE WAYS IN WHICH CHINA
SHOULD SAY.
WHEN A COMPANY DOES BUSINESS
THERE, THEY HAVE TO ADHERE TO
CERTAIN RULES AND REGULATIONS,
I SHOULDN'T SAY NO OTHER
COUNTRY BUT MOST OTHER
COUNTRIES WOULD NOT HAVE
COUNTED.
FOR EXAMPLE, YOU HAVE TO SELL
YOU DON'T HAVE CONTROL OF YOUR
BUSINESS IF YOU HAVE A BUSINESS
HERE, YOU HAVE TO INCLUDE
MEMBERS OF THE COMMUNIST PARTY
IN THE BUSINESS STRUCTURE, IN
THE GROUP OF PEOPLE THAT WORK
FOR YOU IN CHINA.
LORD KNOWS WHAT THEY'RE UP TO.
YOU HAVE TO CONCEDE TO GIVE
OVER SOME OF YOUR TRADE
SECRETS, SOME OF YOUR BUSINESS
MANAGEMENT STUFF.
THERE ARE A LOT OF THINGS, WE
HAVE LEGITIMATE CONCERNS, WHERE
IS CHINA GOING TO BEND ON THE
CONCERNS?
>> YOUR POINT IS WELL TAKEN IN
THE SENSE THAT AMERICAN
BUSINESSES ARE MOST WORRIED
ABOUT COMBATING THE IP THEFT.
AS YOU POINTED OUT THERE HAS
NOT BEEN A LEVEL PLAYING FIELD
AT ALL WHEN U.S. BUSINESSES SET
CONVERSATION ABOUT TARIFFS IS
REALLY ABOUT.
YOU ASKED WHERE THEY'RE GOING
TO BEND.
IF YOU LISTEN TO THE
ADMINISTRATION, THEIR LINE
SEEMS TO BE THAT CHINA NEEDS
TRADE MORE THAN THE U.S., AND
TALK ABOUT THE STATISTIC, BUT
IN THE U.S. WE'RE CONSUMER
DRIVEN CULTURE.
THE U.S. PEOPLE, WE CONSUME 80%
OF WHAT WE BUY.
I'M NOT GOING TO SAY WE'RE
SELF-CONTAINED BECAUSE WE'RE
THAT CHINA DOES NOT YET HAVE.
DAVID: ALREADY, GARY B., CHINA
FELT THE PAIN WITH THIS.
FIRST HAPPENED WITH THE STOCK
MARKET, THE STOCK MARKET IS --
I WOULDN'T SAY CRUSHED, BUT
COME DOWN VERY SIGNIFICANTLY.
CONSUMER SPENDING IS DOWN TO A
TRICKLE RIGHT NOW.
THEY'RE FEELING THE PAIN.
I THINK THE TRUMP
ADMINISTRATION FEELS THAT SINCE
OUR ECONOMY IS BOOMING, THEIRS
IS HURTING, WE HAVE AN
ADVANTAGE AND USE IT IN THE
TRADE DISPUTE.
>> TOTALLY AGREE, DEIRDRE
BROUGHT UP EXCELLENT POINT US
AND BRING UP THE OTHER PART.
CHINA IS FEELING IT.
RIGHT NOW I FEEL THAT WE'RE THE
ELEPHANT IN THE ROOM.
WE COULD LIVE WITHOUT CHINA
MUCH EASIER THAN CHINA CAN LIVE
WITHOUT US.
LOOK, THERE'S TWO BIG STRONG
COUNTRIES HERE.
DAVID: QUICKLY, GO AHEAD.