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Morningstar Equity Analyst Brian Colello and FBN’s Shibani Joshi on Apple’s first-quarter earnings results.
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In -- because we wanna go to a former Morningstar equity analyst who focuses on apple Brian Cole LO and Brian.
The last I saw you at a 770 dollar price target on apple do these numbers change that price target.
-- will certainly be speaking through the numbers then they could possibly change the price target a little bit certainly some disappointment.
And both by phone unit and iPad unit the the slightly looked at less than.
Been anticipated on street side and in the forecast also looked a little like -- you know you're hoping that.
If you at least got -- Q1 -- -- -- Q2 to be lighter vice Versa but it's Angela disciplining them both.
-- I don't wanna fortunate so much but on the other hand I would like to have some kind of number I'm just wondering that you had a 770.
Would it be below 600 -- new price target.
I I can't really comment on that.
I don't just -- the top of my head I don't think this is that bad of that openness -- so but I I've but I really can't get much.
How many -- granite -- to say that the market is certainly interpreting this as a -- -- a disappointment.
That being said let's talk about Tim Cook there's some questions about his leadership -- the company has this stock has taken.
More than a 200 dollar decline over the past several months.
Is Tim Cook Doug diet does he have anything else up his sleeve other than just making tweaks to the iPhone and the iPad.
Well -- Well certainly see in the next few months I think that's where they'll really be judged that you you know I think the iPhone 5.
-- to get product obviously you know 47 million units certainly better than the forest -- but it.
It's not sort of blow out quarter that we are used to and passed.
And you know they have they do face more competition -- and sun and high end and so.
In go to that extent did they gonna need to step up their game a little bit I think that's the biggest tactically.
-- the key is this is Steve Jobs I -- people say it's unfair to compare with Steve Jobs but hey you -- -- with with his his predecessor.
Steve Jobs was always a leader -- products were always leaving the market wasn't so much what was -- everybody had access.
To the stuff that ships and everything that was in it it was the product that he brought forth that was so different that led the market.
-- a lot of people see Tim Cook as a -- were not as a leader is that a fair or unfair comparison.
I think that was.
I I think that could be a fair comparison clearly each investor has -- to make their own opinion I I do think it's too early -- this deal they can cook like eight based on.
One quarter and there's certainly only a little bit at over a year after his -- -- You know I think innovation can still come back with this company against bode well at 748 million units of of iPhone sales.
You have that maybe a couple million lighter than consensus that and not that range but certainly not at a disastrous number by any -- you know it's still very popular product.
Well you're certainly trying to find -- silver lining in all of this we go to -- now she's been looking through.
The numbers which have been coming in fast and furious -- as Eric.
Anything in these numbers that are leading you to believe that investors should see this as a batter report I am certainly not having a hard time -- finding sort of that.
Any sort of posit that side here but David was talking about Tim Cook and I do have the full release in a quote from him.
In the release where Tim Cook this CEO apple says quote we're thrilled with record revenue of over 54 billion dollars.
Sales of over 75 million IOS -- is in a single quarter.
We are very confident in our product pipeline as we continue to focus on -- aviation.
And making it the best products in the world also of note the company issuing a dividend declaring -- cash dividend.
A 265.
Per share -- payable.
February 14 a -- pieces of information but again the focus remains on innovation.
And that is the key question and -- -- sort of driver for the long term picture for apple.
Under the leadership team and that's a very interesting development with regard to the dividend I wanna go back to -- for second year because they have this huge cash -- Of course a lot of it is overseas but over a hundred billion dollars some Forbes estimates that its close a 150 billion dollars right now the question is what would you Brian.
Like to see them do with that money would you like to see them spend it on and on higher dividends just just dole it out to the stockholders.
Or use it for product development which.
Well it certainly has the opportunity do both I -- I think it will spend on RD in the gonna have to do in these industries that Smartphones and tablets or just highly competitive -- can -- -- continued.
And -- targeted that a repeat cash back to the US that thing actually attack this but certainly if they took on the debt and use that debt to.
The pay dividends and buybacks investors that would certainly help them and maybe Brittany outlook and and maybe one of those being the either dividend or higher buy -- -- something couldn't -- Adopt some of the bleeding over the past.
Few months I guess -- dog.
Seven I know it's ironic it's ironic that today we are also reporting Netflix because a lot of question about -- the key.
For Netflix and a lot of companies that stream stop over the Internet of course app that is a lot of of what apple.
Is doing now and hope to -- -- the future has to do with content deals with the Hollywood studios how about using that cash in a way that Netflix could not.
To make deals with Hollywood to get more content streaming on the on the apple -- It's certainly a possibility and and in they would certainly be -- new venture for them -- turn you know not necessarily being in the TV business that the apple PD is a bit of the black box in terms of if they don't -- -- top box -- make a full product.
How did he get the content had -- they were with the cable company there's a lot of questions yet but they're certainly they have the cash.
To be able to do something along like.
-- and the competition is certainly fears out there you've got Samsung saying it's a homes sold a hundred million of these galaxy bonds.
The competition is certainly -- -- Brian Scott hello look thank you so much for joining us Morningstar equity research analyst Shibani Joshi.
Thank you to you as well as well -- -- on the breaking news desk we're gonna can.
