You know, we really set this bar for the

transition to be the best ever. We want

it to be a textbook example and that is

exactly how it's going. I feel so great

about how it's going. John is ready to

be the first-class CEO for a first-class

company. And uh I I'm so excited about

it.

>> And

I yeah, I'm so incredibly excited,

right? It's just such an incredible

opportunity and I'm so lucky to have Tim

as a mentor and it's uh yeah, it's

really great.

>> All right, Josh, what do you make of

Yeah, and what do you what do you think

the big questions investors want

answered as Tim Cook now hands over the

reins?

>> Uh going into the the big chair uh

chairman role. I almost said big chair

in the sky. He's He's just leaving the

CEO role. That's wild. Um anyway, we

return to phrase. Um I I think the big

questions for him are going to be How do

you kind of goose iPhone sales further?

Obviously, what comes next, right?

That's been the biggest question I think

for everyone. Uh it's kind of the the

big criticism against Cook is that there

wasn't a, you know, new product uh that

blew people away. Although, I mean,

services is the second largest business,

right? The AirPods are I mean, at first

they were laughed at, now they're I

mean, you can't walk around without

people having them. Everybody's got

wireless headphones unless, you know,

you're going back to the wired ones,

whatever. Um and the the Apple Watch

continues to do well. So,

>> And the iPhone franchise is looking at

the

>> it's they just did great uh uh

sales in China. We're obviously want to

see what where that goes there. But,

Turnus, I think is going to have to

answer the question of what does Apple

have next up on deck? And I think, you

know, the glasses are something that

have been rumored. Mark Gurman over at

Bloomberg talked about it. Uh you know,

but we've seen and we've seen Meta sell

millions of units, but we've also seen

some pushback against them recently with

regards to privacy. That's always been

kind of an issue. We have to see where

that goes.

>> even

uh is there some new device, like a new

form factor, something with Apple that,

you know, Dan and Josh aren't something

that Dan and Josh aren't staring into a

screen.

>> Yeah, I mean, I I do see, you know, the

there's a lot of companies kind of

messing with the idea of of different

piece of jewelry, smart rings, don't you

know, Oura's got that, Samsung's got

that.

>> Pendants, I'm hearing talk of

>> there's there's a lot of talk about

pendants. I don't know if that's ever

going to be anything more than a niche

uh

piece of, you know, equipment. I I just

feel as though, you know,

it just feels bizarre, right? I mean, if

if I want to interact with something

>> you know?

>> not a pendant guy. I would not take one.

No, if I mean, it's just I I have a

nearly 7-in screen that I can look at

YouTube or or YahooFinance.com on.

>> Mhm.

>> Uh or a pendant that I can't even

interact with. Well, look, like, you

know, I'm all for not being glued to

your phone all the time, says the guy

that's glued to his phone all the time,

but I I need a little something more

than just a pendant. So, I don't know if

Apple goes in that direction. I think,

you know, it could be the glasses, it

could be a smart ring kind of makes

sense because, you know, when they

marketed the Apple Watch, they marketed

it as piece of jewelry,

then they kind of switched up and said,

"Okay, actually health." You could see a

ring kind of going in that direction.

Some people don't like the idea of

having the watch screen with them all

the time, so, you know, that can be a

place where they go. Again, the glasses,

it's it's hit or miss for me. It's, you

know, it's interesting when you try

them, but then it's, you know, I mean, I

take my glasses off to go on air, right?

I don't want to wear these. I do it

because the greatest use case of them is

that I can see. I don't think you're

going to improve on that by having a

robot tell me what song I'm listening

to.

>> I mean, if they're able to get it as

good as Samsung's,

that would be really impressive,

especially for a first-generation

product since it's been working on this

for this what it's eight eight

generation, and they've knocked it out

of the park now. Um

as far as Apple goes,

I do think people will be interested in

it

more so than the Air, but that price tag

is going to be, you know,

pretty pretty hefty.

>> That's safe

>> But, I mean, look, that's what, you

know, Samsung's dealing with that as

well, and they're still seeing good

sales out of their foldables, and it's a

higher selling price, so then you you

lose your ASP.

>> nuts, except then I'm going to see it,

and I'm going to read your review, and

what if you tell me this is this is

actually pretty impressive, I'm going to

be I'm going to end up pulling the

trigger. And that's that's how these

things that's how it plays out. Apple

tops a $5 trillion market cap. What

changed here? Why why is Apple now a

a fan favorite for investors?

>> Uh I think it's kind of a seesaw between

what we saw previously with Apple

uh and uh what we're seeing now with

regards to AI. That's not that Apple's

AI is blowing anyone away. It's not, you

know, it's not here yet. I've, you know,

been able to see what the the new AI is

going to be like, the the improved Siri,

and it's it's better than what was

around, for sure. Uh but I don't

necessarily think people are diving into

Apple because uh of AI. I think they're

diving in because of its lack of AI

exposure, where, you know, these other

companies, the Googles, the Metas, uh

the Microsofts, they're all, you know,

Amazons, they're pouring billions into

this. Right, Amazon's supposed to spend

200 billion uh well, Google was what,

raised their capex to the top end to 195

uh billion, so, you know, close enough

to two 200 billion. And so, you know,

Apple doesn't have to worry about that,

so investors can kind of see that and

say, "Okay,

well, we could kind of take that out of

the cards.

We're nervous about the the ROI for

this. Maybe we'll just hang out with

Apple for a while."

>> you think yeah, it's it's like folks are

basically saying, "Okay, Apple's

relatively restrained AI spending." Now

it's seen as a strength to some folks,

not a weakness.

>> Not not a weakness, although they did

say that they're going to

draw down some of their

cash on hand as they invest more into

AI, and you know, try to build that

ecosystem out a little bit more. I think

it's also though, you know, while it's

it's insulated largely from the AI kind

of swings,

it isn't fully insulated from AI in that

it's had to raise prices on the Mac and

iPad. And, you know, the I think the

bigger uh question is then, okay, so

what does that mean for the iPhone going

forward with, you know, the the 18

likely coming in September. And so, you

know, some of the analysts out there uh

are basically saying, "Look, uh this

could be a problem for them." Uh let's

see, who was it? Uh

Brandon Nispel uh at KeyBanc basically

said that

>> Not a fan is the call.

>> a fan. Not a fan. Saying basically that,

you know, if the prices go up, that

means that there'll be fewer people who

want to upgrade, that means fewer people

that will stick around for services. And

so, that could impact services growth in

the long run. But other others say,

"Look, it's going to hurt gross margins

uh at at at a certain point either in

the uh

uh

let's see, who was it here? Uh Edison

Lee over at Jefferies, he had said, you

know, the the gross margin impact would

come a quarter after uh Apple has to

kind of eat uh higher memory prices. And

so, you know, we we don't know the full

effect of that just yet. Um you know,

Apple was also able to control kind of

the memory market for years just because

they were able to dictate pricing. You

know, it there wasn't this huge amount

of demand. And now there is, and now

Apple's kind of playing the defense, and

maybe the memory makers are saying,

"Well, you know, you squeezed us, so

maybe we'll give you a little squeeze

back." But, you know, I I do think it'll

be interesting to see. I also think on

the idea of the slowing uh growth, you

know, you add $100 here, you add $100

there, but if you're paying it in

increments, you're paying it in chunks,

like, you know, a lot of people do,

you're not going to see that huge of a

jump in your monthly bill. Now, if it

was, you know, $20 a month extra, then

sure, people might balk at that because

we're already subscribed to everything

else under the sun. So, that could be an

issue, but I I don't necessarily know if

it will be kind of a devastating hit to

Apple if they do end up having to raise

prices.