This transcript is automatically generated
All right we're getting all of the -- -- -- the apple or outside developers conference going on as we speak we're joined by.
Expert analysis this afternoon with Roger Kay -- endpoint technologies founder and president.
My -- editor for the -- apple web -- in Hilary Kramer he's editor of game changer stocks.
Mike -- do you what do you think -- bigger strategy.
Is we're kind of to chatting in the break.
Talking about how this is about going mobile keeping those -- -- these notebooks is light is possible utilizing the cloud computing space what are your thoughts on the bigger strategy.
Well you're absolutely right Indianapolis pushing -- -- -- -- more towards solid state storage which means less onboard storage but it's faster it's more Agile.
Later machines longer battery life and now with this new next generation MacBook Pro.
Written -- graphics meaning that the screen is essentially indistinguishable from what you see with the naked guy looking -- reality.
-- so all a lot of these are features that are making their way into the Mac line from IOS from the iPhone and iPad.
And we are certain see convergence I think you know at some point about cannibalization.
That was made earlier.
Apple feels very strongly that if anyone is gonna come and eat its -- and and make its PCs obsolete it should be apple.
So the iPad and the iPhone RR that the bleeding edge of that challenge there.
Roger what do you think what you've heard so partisan making more positive on the company and the stock or less so are just the same.
You know it's really only the surprises that cause that he -- and you could say that that third notebook was a bit of a surprise.
So you know there's probably a little bit more buzz -- there would be otherwise but I think that one of the things you have to deal with -- apple.
That the amount of expectation that -- these announcements so they have to be a very high bar and then exceeded in order to get a pop and they may be doing it I would say yeah.
In a mild way so there's a bit of an upside surprise here but it's.
A lot Hillary everybody's looking forward in the fall to the iPhone 5 but does the addition of this third.
Notebook computer now kind of blew me apple long until the -- when you know you're gonna get a big burst of attention hopefully share buying.
News -- next version of the iPhone -- laureate certainly appealing for apple because they only sold four million PC's last quarter vs eleven million.
Tablets and vs 35 million iphones.
So it is important -- an interest in focus but you know the stock price tells us -- And as you've seen Apple Stock today has come back -- yes it's with the market but that's because the Retina Display.
And the extra bells and whistles don't necessarily.
Appeal to the market as much as they might to let's say you know very eager and excited.
Programmers who who -- -- that they're gonna get out there.
So the I -- the next iPhone is really important but.
For right now remember the -- the inventory Tim Cook told us this also.
There has been in the pipeline a lot of inventory.
So we may see actually a disappointment.
-- we have the next quarter's earnings -- it -- and you just to build that you think they're gonna miss estimates in the second half of the fiscal year right I really think that we're gonna see that happen especially because we may have some subsidies no one believes it but some of the subsidies that are coming from that.
From that phone companies like sprint is offering a phone a 102 dollars back you pay 200 dollars that's what I saw this week.
With any of those subsidies because of the high debt load that -- cell phone carriers have have to be reduced.
That's going to be a major major hit to apple again 35.
Million units -- iphones vs only four million.
On your PC to this is very exciting for hard -- apple users but in the big picture can apple really make it especially internationally.
Yeah and we're just.