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T. Rowe Price Global Tech Fund Manager Joshua Spencer on why Apple will continue to be a leader in the technology sector.
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A -- as the leaders.
Big -- top players battling it out.
Over things like hardware search and share price with many highly anticipated new products and services expected to be released in 2013.
Which tech names will win the lion's share.
Josh Spencer is T.
Rowe Price global technology fund portfolio manager he's joining me -- a Fox Business exclusive from Baltimore Maryland let me make this simple.
Pick one name that comes at a real winner.
Apple but -- -- -- white stretching and thank you listening and happy new year and thanks for having me offshore I think it's so easy seek to.
To forget the strengths that apple brings to the table.
They got the best products one of the best management teams for wonderful installed base of of devices.
Thirty years of experience making operating systems and software.
Outstanding hardware and manufacturing and -- create retail business.
They also have a 130 billion dollars in cash on the balance sheet in the house and will generate another fifty billion this year.
What's there's certainly you and I think you know only as it has stock over the last -- we must -- -- -- -- wonderful opportunity.
Can you hear me we just technical -- Levy's on the floor of the New York Stock Exchange talk about the iPhone six.
But is that going to be Apple's game and that is to have different devices.
Of different sizes all pretty much doing the same thing my kids are so much better at this than I haven't might my daughter said to me mom you have an iPad and iPhone is just a mini iPad.
That's what you should make -- it should be easy -- operate but if that's the case at some point.
Doesn't that become less of an exciting opportunity for people out there and then do not -- go to the Samsung's of the world which you know are very Smart people developing things like oh let's or or organic LED televisions as well.
Well I think Samsung is so a wonderful company and they've they've brought out some great products in the last couple -- years and I've spent a lot of time with our Asian team following Samsung.
However I think it's it's easy to underestimate the culture of innovation that apple has and we think about the company you know sure Steve isn't with us anymore.
But the people running apple now are the same folks who who helped bring out the -- Bring out the iPhone and the iPad.
And I think we'll have more tricks up their -- I expect we'll see an apple TV in the coming year and I do think we'll see more screen sizes for the phones and a proliferation.
Of of the line up.
And you know what could be considered boring is also an attribute for the company.
When you think about the installed base and the high repurchase intent the people out.
Once Sherlock the end of that -- -- less apple ecosystem.
You have a 90% are repurchase intention.
And that makes it more of an annuity like business cut -- -- to -- an annuity like business and your prior guest talked about dividends apple has a 2% dividend yield.
This is a very stable company with with great cash flow.
So third -- so low there when -- Josh in the entire stock market just there is.
A rumor out there it's been in a couple of for the blogs and a couple of articles that Intel may be apple with a punch.
That they may have some television attempt where they will have a -- vs a set top box.
That will enable if you have Internet access enable people.
To get all kinds of programming put up their choice that you don't get socked with a 200 dollar cable -- is -- -- pay for it.
But a 200 dollar -- bill.
Instead it's more the cafeteria style situation where you don't have to pay if you're not a sports -- for five ESPN channels between north the most expensive ones and you only end up paying for what you eat or consumer watch.
So why not then say that Intel is an opportunity.
Well look at I think that would be the holy Grail of TV TV on demand and I think we will see that.
My money would be on apple solving it before -- told us I know Intel's been working hard on it and they have some nice set top box technology.
But remember -- Intel at their core is is a computer microprocessor company.
They don't have the expertise to sign all -- the content deals and build the entire network vote the way apple last.
If you look at what apple has done over over time with music and with the App Store.
Well apple entirely outlawed after Josh -- convincing some of the cable companies we've heard about battles there.
I I think it's a lot harder than it looks because content guys.
Watch for all the networks that want to be paid for their products and the cable guys don't want to relinquish a single inch when it comes to things that might.
Then lead to court cutting so -- there's that challenge I think.
It is very hard you're exactly right and many if they the executives running the content companies do look at what happened in the music industry and thank.
I don't wanna go down about how right I think that's made there.
The negotiations -- more difficult but if someone is going to solve it I would think apple would have a better chance than Intel.
Josh great to see you thank you so much for your perspective.
Thank you Josh Spencer is T.
Rowe Price global technology fund portfolio manager for all you people gave up on apple he says not so fast close.
