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The only shocking news about apple today leading a big drop in share price -- Wall Street Journal reporting that the cancellation of half.
Of Apple's orders for the iPhone 5 screens.
Because of shrinking demand overall other supplies are also being cut.
Calling -- a serious question exactly how much market share the company's been losing racially and would know Steve Jobs like product breakthroughs being talked about what marketing and product foul ups.
And would share price plummeted some stockholders are wonder if it's time to consider replacing.
CEO Tim Cook before the company inflows any further let's talk about this.
-- -- -- -- he has Mizuho securities senior equity research analyst op hi thank you for coming in appreciate so.
Let me let me summarize -- -- Cannes summit -- the the warnings -- I've heard from stockholders were considered really worried about the share price here.
They say that apple is becoming a follow work instead of a leader that that they're playing into -- to the cheaper competitors that's why they came out.
With a many iPad that didn't really work well that's that's why they're they're thinking of coming out with a cheaper iPhone again sort of following.
What's out there in the market instead of leaving the market.
And that means there's problem with leadership inside the company which is why Tim Cook should go are you hearing any of this.
Now we got David any of that that the thing is that yes they let the women that might in renting them I've -- the Smartphone market had delayed as today they mentioned the iPad and the tablet computing market.
And the focus just behind the market now we've beefed up aren't critical Tugnutt -- behind -- slowing down and there's a lot of -- happy in the -- about the market.
And that's where -- the -- site that launched iPad mania and beside succeed and two out on the foreign side yes there is.
I talk about cheap but I've flown.
And Ted that's something they've not announced did not who said anything about it there have been -- on the supply in the something would be well in the looks I was so we'll see what happens when -- -- that could be a reason for them to get into the cheaper iPhone market.
All -- it's that clearly they have -- part of the leadership it's just of the market of the high end has moved so fast so quickly.
And to have the gulf states there are slowing and Mickey -- would then.
Skeleton didn't -- -- their exit their competition is is huge now you have all the android -- -- this new thing called.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know the thing about apple during Steve Jobs lifetime was that.
All the components were -- were they -- for for other products to use the -- it's the wave that apple put them together.
That was brand new when Steve Jobs walked out there with a new product weather was the -- -- the iPhone or the iPad you knew it was a breakaway look.
At something that may have existed before but not the way apple was coming out would it seems to have lost.
That premier ship that it used to have.
It's something -- I think the only upon as violent I think what new management teams Apple's Steve Jobs need stability as the need to prove that they can actually.
Create a brand new product -- he had a product and take it to the next level.
And that's something they haven't -- yet you know after Steve -- how long -- stimulus improve how long do you give with with the share value dropping as quickly and dramatically as it has from 700 down to below 500 early today.
Is it time to look for a new leader.
I don't think it's time to look funnier -- yet he meets Chile can give them time to chemical.
That could keep in mind that -- Product life cycle that he sent congress its you don't open your product -- more than two -- -- yes.
So instead -- to Steve Jobs -- need to give them some time to kind of dilemma on that -- -- the same time I think you aren't they need to keep going that they can go running second goal of market share which is something which had -- have a -- collapsed but are you hope did you do you hear about a new product a new Steve -- is Steve Jobs like breakthrough product that's that's in the works like I keep hearing about apple TV so far we haven't seen it.
Is there's something because they better come I was something -- otherwise we could see share value at 400 or even 300 or below.
Listen I I David did that they need to show new products in the company needs she showed -- products but also keep in mind to have a very strong Balanchine they can do things on the balance sheets -- on the share buyback side to support the stock.
And they have the largest cash balance and in one -- this and there is a lot of whom that they have they have not on the levels you can name whether.
I don't cannot deny the fact that they need to come all the new products you cannot -- and that's chosen for the stock to move materially higher.
All right speaking by the way is this as a shareholder myself I would rather see them put the money.
In new products and buying shares shares reacted to hold up there at the value the stock.
I have to ask you a little bit about -- because you also look at the -- and what do you think about the move will will become a private company again and and will -- thrive as a private company if that happens.
Yet you of this that the speculation comes on and off all the time every few months Jimmy a couple of times -- we have -- -- considering going pirate and then they come out and sentinel in not doing it.
I don't know well let things out currently.
Clearly does a lot of fog led -- and speculation in the media.
But tell one -- to keep in mind mathematically if I -- -- transaction can while they can make the transaction -- com based on strong cash flows I don't think Daschle's.
And -- cheap financing options.
But strategically it's gonna make that transition even Florida right now they can go out and buy a couple of billion dollars spent a couple of billion dollars on -- -- acquisition.
But if the company's fully that would that would not have enough nationalist -- -- and make the strategic acquisitions that you needed to -- them up there.
Enterprise business saw -- strategically -- lose out on that.
We do think -- transaction is less likely but there's a lot of flour mill fire and smoke all of them -- -- enough smoke to move the stock almost 13% today out by -- by good to see of my friend thank you for coming in.
Steady over to you.
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