Skip to main content

tv   Bloomberg Technology  Bloomberg  June 3, 2022 5:00pm-6:00pm EDT

5:00 pm
5:01 pm
>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. taylor: i'm in for emily chang and this is bloomberg technology. tesla's ceo elon musk planning to shed 10% of staff as corporate america turns up the volume on these economic warnings. plus, while speaking of elon musk, he's one step closer to buying twitter. the company says a regulatory waiting period has expired. we will discuss the next steps. a big preview about the worldwide developer conference coming up on monday.
5:02 pm
developers will gather in person for the first time in years. what can we expect? we will get to all of that in a moment. first let's look at these markets. our bloomberg's ed ludlow has more. i thought we would eke out a gain this week, but the losses friday not able to get it done. ed: for a short week in america, that was brutal. a lot of red on the screen. i hate ending fridays on a negative tone. nasdaq down. the rationale goes back to basics. we have strong hiring data for the month of may. it reaffirms this hawkish stance of the fed. they will fight inflation with whatever it takes. rate hikes are coming perhaps harder and faster than we thought. that weighs on multiple tech stocks. you see that throughout the markets. u.s. 10 year creeping back toward 3%. two corporate stories of the day, twitter, tesla.
5:03 pm
what do they have in common? elon musk. what did i get woken up by this morning? elon musk. a regulatory filing say they passed this 30 day regulatory window where each party was supposed to notify regulators about the deal. tesla down 9%. according to sources, elon musk sent a memo to employees saying 10% of salaried staff would face job cuts. that is jobs outside of manufacturing. you see the reaction in the stock. the concern is what has gone wrong. what is elon musk not telling us about what he sees in the world economy? all told, this is where we end theit was a four-day week. we did not have conviction in either direction on some trading days. the nasdaq 100 down 1% for the week, back to this weekly decline we have seen throughout 2022 so far. interesting that we end friday back on the narrative around the fed and rates and are bringing
5:04 pm
into the conversation more talk about recession fears. we see some revisions to guidance. i am bracing for pretty busy next week. taylor: oh ed, you look exasperated. stick with us. it is a friday. we will be back with you soon. our own ed ludlow. one of these days i will get him a poem or something to keep him on his toes. the market moves, those job numbers coming out this morning. i want to do all of this with a cross markets chief market strategist. talk about the good job numbers and how we are seeing the way that impacts the federal reserve that needs to be on the move. >> i think we have some conflicting stories this morning coming out of the jobs report. it was bigger than expected. therefore people were concerned that the fed is going to continue to raise rates may be faster than what they telegraphed so far. they telegraphed a 50 basis
5:05 pm
point move. september is perhaps open for jobs support, makes a 50 basis point move in september more likely. we have to look at the average hourly earnings. that stayed flat versus last month. this is where we will see the inflation component dig in, that sticky component of inflation coming from wages. we did not see the gain many thought. we saw the prepaid -- the participation rate go higher, which could bring wage inflation down. a mixed story, but i think that will continue to go full force at this point. that is why we saw markets react the way they did today. taylor: is that why tech continues to be the big underperformer in a yields rising environment? victoria: obviously when yields go higher the longer consideration stocks tend to not do well. even when yields went down over the last 10 days, we had yields come back up on the intraday
5:06 pm
high of 320 and we did not see tech do tremendously well. we did not see them take leadership. you have energy taking leadership right now. that makes us think there will not be a big shift and we will be in a big upturn for the markets. it makes us think we are having a bit of a bear market rally with energy still leading. you have to be careful with tech. there is a lot of volatility around those names with yields constantly moving, but i don't think you want to remove them all from your portfolio. taylor: it was interesting, a strategist at bank of america said tech is a huge laggard in this stagflationary environment and growth is the lagger, that the trend is towards value. are you viewing value outperformance if we get a stagflationary environment? victoria: we like value better here. if you look at our 10
5:07 pm
productions we put out on december 31, we talked about value versus growth. what we have seen from the beginning of the year is roughly half of the outperformance from value overgrowth has dissipated, but yet it's still performing better. we have a balanced portfolio. we are still overweight that. we still have growth names in the portfolio. with all the volatility coming, value may still outperform. you want to make sure you have a good balanced portfolio. taylor: victoria, we were speaking with blackrock earlier this morning, talking about the federal reserve and dare we say a goldilocks-ish environment. >> this will do nothing to deter the fed from where they are going, and it's a big report because i think we will make the turn. i think the next three or four months, you see these numbers
5:08 pm
decline, i could see a negative print over the next three or four months. i think that is what markets will react and try to interpret how deep the fed is going to go. taylor: is that peak jobs, what we just got? victoria: yeah, i listened to that interview and it's interesting he's expecting negative numbers to come out. i am along those lines. i do think we are going to see the labor market start to come down. the fed has told us they are willing to sacrifice some of the strength in the labor market in order to bring inflation down. i think we have to expect that is going to happen. we talk about peak inflation, peak yields. we have to also speak about peak labor market and how we will see some of those smaller companies, where they have been hurting the worst on labor cost issues, if they start laying people off in lower paying jobs, that is definitely going to affect the labor market reports in the next
5:09 pm
few months. taylor: what is the biggest question you are getting from clients at this moment? victoria: we just hosted a q&a with clients this week where they can ask questions to our cio and myself. the biggest question we got was about recession and inflation. we are telling people we don't expect a recession this year. household balance sheets are strong. corporate balance sheets continue to do well. will we see growth slowed down a bit? yes. we are not at the level with earnings yet where we think we will go into recession. we are looking if that happens may be second-half of next year. we still think the economy will hold pretty strong for the rest of 2022. taylor: really appreciate it. crossmark chief market strategist victoria fernandez. the biggest question that clients are asking is the biggest question that corporate ceos like elon musk is asking.
5:10 pm
he now comes out today saying he is aiming to cut around 10% of stallard -- of salaried staff from the company, saying he has a really bad feeling about the economy. how are you thinking about if this is an idiosyncratic tesla issue, or are you worried this is a broader ev, broader economic issue? >> thank you for having me. we were surprised by the headline simply because tesla is in uber growth mode. we know there is a lot of capacity coming online. they need support staff to support that growth. the headline came as a bit of a surprise to us. yes, we are getting more questions from investors on the risk of recession, but tesla and the auto industry broadly right now, the primary issue is not demand at the moment, but
5:11 pm
supply. this is a supply constrained industry. anything produced will be sold. when you look at u.s. auto sales, 12.8 billion in may, much lower than you would typically get. that is because you have inventory at all-time lows. the largest problem now is supply. in the case of tesla, they need staff to support that supply, increasing supply and unlocking volume. taylor: is this why -- i don't want to say you sound confused, but some of your counterparts saying this goes against what they were thinking when you talk about ramping up production, needing the staff you can in the factories because the demand is there. could i say may be is some confusion there as well? dan: i think confusion is the right way to look at it. it is a bit of a surprise for a company that is in uber growth
5:12 pm
mode and i think probably has a long-term view. you have something like $19 billion of cash on the balance sheet, so they are well insulated. to give credit to tesla and understand partially what is happening, this is a company that even with all the padding they have on the balance sheet, they are cost focused. we just had a field trip to the fremont factory last week, a very cost focused company, even with all the improvements in margins. i don't know if it is something along those lines. but yes, for a company that has a lot of growth ahead and needs to increase support staff to support volume, it was a slightly surprising headline. taylor: from the fundamental analyst perspective, how do you take news like this? you are trying to forecast the bottom up look. i guess you can view this as conserving cash.
5:13 pm
do the headlines make it more difficult when you are thinking about a company and basic supply and demand and some instructions of headlines like these? dan: it does create a bit of noise, but i think we still stick with a fundamental approach. we take a top down view and marry that with a bottom up view. we are looking at the market as a whole. at the same time the demand for teslas. if we look at our model -- [inaudible] ramping up overtime. are there going to be periods of economic choppiness? yes. [inaudible] i think at the end of the day we are still taking a very fundamental view. that is dictating the way we are
5:14 pm
looking at the company. taylor: really appreciate your time and the fundamental analysis. dan levy over at credit suisse. really appreciate your perspective. stay with us. more smartness. the wesley securities managing director of equities research joining us. some fundamental news. a stock split 20 for 1. i hear there may not be a change in company valuations, but we will discuss it all . this is bloomberg.
5:15 pm
5:16 pm
5:17 pm
taylor: let's talk about the stock split. amazon's 20 for 1 with the first split adjusted trading. it begins monday. shares initially got a boost and it was announced in march, than april and may came, falling with a lot of tech volatility. what does the split mean for investors? joining us is the managing director of equity research at wedbush securities. the math has not changed for the company, but does the consumer sentiment around the stock change for you? michael: yes. i think the idea of a split is to make the shares appear more affordable. obviously institutions don't care, but individual investors and employees do. it allows the company to be more appealing to individual investors. if you have $10,000 to invest, are you going to buy four shares
5:18 pm
of amazon? maybe not. you might buy 100 shares at $120. that is how they are thinking about it. same with employee conversation -- employee compensation. i had a friend who went to work there. they can push stock-based comp down to even fulfillment center workers and truck drivers if they choose to. now they can give out stock in increments of $120 instead of $2400. it provides a lot more flexible live he for investors -- more flexibility for investors and employees. i think the stock will probably go up on this. more importantly, this shows that management actually cares. they have a well-earned reputation for not caring about wall street. this is a very investor friendly
5:19 pm
thing to do. i think it is a signal from andy jaffe, who has been absent as far as investors are concerned, that may be he does care about the share price. taylor: very interesting. i'm curious when you're thinking about management, the exit of the amazon worldwide consumer ceo. are you thinking about andy jaffe coming in, shaking up the c-suite areas, the impact that may have? michael: if you had to pick one area of amazon that is not doing poorly, it's that. i would say the consumer has been great. they are great on everything they do on the revenue side. where they are out of control is the expense side. to be honest i don't think it is dave clark's or anybody else's fault, i think it is jeff bezo'' and andy jaffe's fault because
5:20 pm
they have scuffed projects they will not talk about and projects that will not pay off in 10 or 20 years. i think amazon's self-service stores is a ridiculously stupid idea. we don't shop at amazon when we can drive to a store. not having to deal with a clerk at checkout is not the reason i shop at amazon. i think these guys have a lot of spending cuts to make. i don't think dave clark was the guy to make those cuts. andy should be much more self- introspective and be more self-aware as what he's doing as the ceo. they are losing employees up and down the ranks because they don't pay enough. if they get rid of someone at the c-suite, get rid of someone at hr because they have not done a good job. taylor: we are getting into the idiosyncratic issues with amazon. your counterpart at jefferies, i
5:21 pm
spoke with him last week and he said sentiment on broader tech has never been worse, that they are doing back flips at the exxon shareholders meeting. you go to these tech conferences and sentiment is horrible. is this the broad sentiment around technology in general? michael: my largest personal holding is exxon mobil, so i've been doing back flips as well. there is two types of tech, tech that is not profitable, so when you are paying a revenue multiple for companies like unity, and i love unity, but they don't have profits. there is no bottom. who knows how to value that thing? then there are companies like apple, amazon, google, that are immensely profitable. it is really easy to step in when you think they have gone down enough. where jassy has control is he can say i will take earnings-per-share up $10 by
5:22 pm
slowing are spending on projects that will not pay off in 10 years. if he does that i think the stock can go back to where it was. these tech companies should lead the rebound. taylor: really appreciate it, all of your smart analysis. michael pachter over at wedbush securities. we were talking about the ceo andy jassy. we will have a live interview with him. tune in for that. less of great interviews coming up at that summit. lots of great interviews coming up right here, right now. one step closer to elon musk overcoming those hurdles for a twitter took over. that conversation is next. this is bloomberg. ♪
5:23 pm
5:24 pm
5:25 pm
taylor: twitter passes u.s. antitrust review, clearing another step in its hurdle for the acquisition by elon musk. in that proposed $44 billion deal. it is still subject to acceptance by twitter shareholders and other regulatory reviews. joining us now, bloomberg's ed ludlow, sticking around late for us on friday. how much of this hurdle today was expected? ed: it was expected. to a largest and it is rubberstamping -- a large extent it is rubberstamping when a piece of m&a happened like this both parties have to give the federal trade commission and antitrust division of the doj 30 days. if that 30 day period has elapsed or regulators went back to the parties and said you passed the checks, we know regulators are looking at other elements. for example, the timing at when
5:26 pm
elon musk starts to build up his stake in twitter ahead of offering to buy the company. taylor: the share price is at $ 40. that is a far cry from the $54.20. are there concerns this may not get done? ed: certainly the rubberstamping news of friday moves us to a place where we think it is more likely to get done. we are talking about the spread, the difference between the current share price and the $54.20 share offer elon musk make. the wider that gets, the more skepticism there will be on wall street that it happens. if the gap closes, the more likely it will happen. it is a soft indication. at some point, the odds on this deal happening has been below 40%. they have now improved. does he come back in with a lower offer? it seems like given today's news that is unlikely to be the case.
5:27 pm
taylor: so the hurdle that is now on twitter shareholders, what would be anything for them to not vote for it? ed: this is the psychological question more than anything. $54.20 a share, that is a great offer if you are an existing shareholder at twitter because the trading at twitter has not mirrored what we have seen in broader markets because it is subject to m&a. it has not traded with the world's big swings in trump's lit we have seen with other social media stocks. weight and see. -- wait and see. taylor: stick with us, equality and inclusion in the workplace. we will speak with a ceo about her mission to represent underrepresented groups at her company. that really important conversation is next. this is bloomberg. ♪
5:28 pm
as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts...
5:29 pm
saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™
5:30 pm
5:31 pm
taylor: this is "bloomberg technology." i am taylor riggs in new york in four emily chang. this week started pride month, bloomberg television focusing on a wide range of topics when it means for -- as well as investors. and matches it users with the freelancers by using matchmaking out rhythms. the ceo is on -- algorithms, ceo is creating inclusion for underrepresented individuals, 95% of the workers identify as female, 65% by the by park community and more that -- bipoc community.
5:32 pm
the kickoff pride mark and a renewed vocus on -- focus on equality, today is jobs day, continue to see underrepresented individuals not have the same opportunity come what you see is the way to help that ford? -- forward? >> thank you so much, i think all companies are starting to gear towards inclusion and equity in the workplace. we see a lot more in canada we have a lot more work to do, it is important that tech companies need to focus on putting diversity out there right up front for everyone on their team to see. but the numbers on their site, all this is extremely important so because your everybody they are welcome no matter what. taylor: this is a technology show as well, we are focused on
5:33 pm
equality across the board we're looking at highlighting it in the tech sector as well. have you seen the tech sector lag or struggle? how do you see the sector match other areas? >> i absolutely have. down here in canada, it took me more than 170 nodes to raise ac ground -- a seed round. i want to say is not because who i am as a person, i am an indigenous lgbtq one -- woman, i've seen a lot of barriers, i've had to push through a lot of them, i have seen so much it is been difficult for me to be able to scale the company knowing people do not have exited why am.
5:34 pm
that is why we focus so much on diversity, inclusion, and the workplace, we hire people from all walks of life, all of our talent has a story. if there are an immigrant or someone that is transitioning genders and cannot find work because of it. people who are veterans and have social anxiety is a ptsd. two people with mental health issues as well, this is important that you are giving them a safe space work. taylor: has anything gotten better, particularly since it covid, in this renewed focus we have all had on more inequality -- equality? >> i think so. especially because of remote work, it is here to stay. everyone has for that with covid. everybody is not afraid to hit it head-on as they were before. i think there is a lot going on.
5:35 pm
there is a lot of people being told no because of who they are. like i said earlier, it starts with one business making that change and not being afraid to make that change, standing up and shouting out those numbers, just like we have 95% identify women, signify percent identify as part of the -- 625% identify as per the lgbtq committee. a lot of tech companies that are hiring remotely have a lot more diverse populations, there is a lot more work to do. taylor: you have talked about remote work, has that opened up the labor pool? the talent pool across the whole country, maybe across the whole world, how do you see within your country, -- company the ability to use remote work to your advantage? >> what we do, we provide marginalized and underrepresented folks drew the platform and match them with a
5:36 pm
business or an object or -- entrepreneur. we will provide virtual assistants for them, allow them are coming to us for our equality and diversity. they are saying, we want to hundred people of diverse backgrounds. a lot more of that is coming out. the difference with us, and companies like us offshore. it is not a bad thing. for us we promise to keep it. on shore to north america. . while we go no -- global all of our workers will remain in the u.s. or canada, keeping on the north american economy. taylor: you mentioned your own struggles, with a vc funding world, there has been a lot from abroad, economic environment we have been hearing investors say their portfolio companies conserve cash, slow down, prepare -- prepared to not be of
5:37 pm
the fund raise for a while, hold onto whatever cash you have on hand. have you found the fundraising environment better for minority owned businesses such as yours? how have you experienced that vc funding in a post-covid environment now? >> honestly, for us it has been good. i just posted my series a funding round a month ago and only took me six months to open and close it directly. i had no problem, the difference is i did steer away from vcs and went to impact bcs. what we are creating is impact. we are providing work to marginalize committees that a lot of people are not doing. we were able to target the impact investors that made it a lot easier on us. that said, one of my investors, we are almost heading into a recession. the economy is changing and
5:38 pm
changing fast and the cost of living is changing. we all know that. as far as going into our series b we will get in a low bit faster than later, we have to make sure you protect your run rate. we are working hard on that, we will jump it -- into it and next eight months rather than 12 to 18 months. taylor: we wish you the best of luck in that funding round, when it comes to the equality in the fundraising environment and the slowing macro economic environment as well. thank you. coming up, back to the markets, bitcoin, the big rise, the big fall is back down to below 30,000. we will have more on how it is impacting the crypto businesses, all that next. this is bloomberg. ♪
5:39 pm
5:40 pm
5:41 pm
taylor: time for our crypto report, when start with bitcoin dropping below the 30,000 mark
5:42 pm
after it regained that closely watched level a few days ago, our crypto contributor here with more. it is a classic risk off sentiment again? >> you look at the s&p down again, if you look at 24 hour decline in bitcoin of about 2% directly have over a seven-day period a 3% rise in bitcoin. we should look at what this down -- downturn looks like in the context of other stocks as well. the route of bitcoin is hurting other companies that is exposed to bitcoin, one company that many investors and crypto employees are talking about is coinbase, they are trading below where they are a week ago, getting close to that 50% drop over that one month period. they said they would be resending some offers as well as instituting a hiring freeze. there are other stocks out there they are trading lower on the week, they have not said anything about hiring, look at the right blockchain or you
5:43 pm
wonder how the stock pressure will impact their plans moving forward. taylor: stick with me here, i will bring in our next guest for more insight on this, the cofounder behind the google of blockchain's, before get into the nitty-gritty i am curious of what you think about the volatility around the price action, that bitcoin might be worth only a thousand, how does the volatility impact you? >> it does not really, i have learned about bitcoin in 2011, i have been used to this volatility and we prepare for it. we are focused on building. taylor: speaking of building, how do you think of this in terms of the cubbies out there that had these really tremendous hiring plans like coinbase, now saying they will resend some offers, how does that impact the
5:44 pm
inclination of certain people that were not in crypto before, but were thinking about crypto and may be spooked by some of these knee-jerk reactions and had? >> i think that is the fair response, i know there are a lot of projects hiring within the space, coinbase is a multi thousand person company, with volumes down exchanges are impacted. it sounds like they want. to hunker down for a bit. . they are many projects building in the space. you do not need companies that are thousands of people wide like coinbase, you have companies that are much smaller. if you hundred -- if you dozen, if you hundred, it is less impactful in a time like this. i would still be quite optimistic within the space with the potential that crypto and web three has. >> what company's can hire the
5:45 pm
most in? once you have a lot of crypto skill come again the crypto extra fees -- expertise in a crypto winter? >> as you know we work on the protocol, many of the developers within the ecosystem are hiring. there are many protocols, we still need talent. in a market like this, it is easier to get talent. the price tag for talent were rising during the bull market, it is a good opportunity for projects and companies to be very decisive about who they want to hire and the role they need to hire for in the broader macroenvironment. >> how do you think about the inherent conflict, decentralization on companies that are getting bigger and bigger, might need authority and centralization of a product? >> is a great question, in web3
5:46 pm
do i give the power away and back to the user, that does not mean centralized companies will go away, and the concept of decentralization, the protocols a great example that comes there over five companies that exist within the context of the protocol. now that we have new monetization structures we are able to get rid of the wonky monetization models like ads like we see a lot in web 2. >> has been referred to as the google of blockchain and you have announced a web three browser, how's that browser different than google itself? >> yeah, that is a great question. geo was the browser announced yesterday, a decentralized rouser, the first browser of -- of web three, different from any browser you are used to in the
5:47 pm
web to space. you can think of a google doc form where you can see the entire change history, that is how it works. anyone can contribute changes, however there is reputation within geo. the more you vote you can earn more accreditation over time and you have more say. it is about giving the power, control, ownership, decision-making back to the user. everyone saying, wears web three i cannot find it, no you can. >> what about the web2 companies target -- that is getting into web three? meta, google, do think they can create a lot of competition in this space? >> i do not, i think google is doing very well selling ads. they are doing a great job in the current space. once you, as a founder, once you take equity, once you start
5:48 pm
monetizing in one way it is really difficult to resave -- reshape that monetization with a lot of stakeholders. they we need to spin out or enabled the space in some way. if things are not going -- if you have a margin trade out and you are about to get liquidated there is a lot of room for traditional companies to exist in the space, it just in a different context. taylor: we have talked about crypto winter in the vein of hiring, what about the type of projects? do you think this is the opportunity for crypto to pivot? will there be different projects that we have seen the last couple of years? >> all the pieces of the tech are there, we are still building, i'm excited about this cool down, so many products are being pulled in 90 different directions. it comes back to fundamentals as opposed to the marketing during
5:49 pm
the bull market, you are pulled in less it directions and you are able to just build. the biggest piece of the puzzle is time. with this market we have that time. taylor: really appreciate it, teagan, cofounder of edge and note. de. coming up after two years of being virtual, it kicks off monday, will be live in apple park, the latest on what to expect. that is next. this is bloomberg. ♪
5:50 pm
5:51 pm
taylor: the apple worldwide developer conference kicks off monday in person for the first time since the beginning of the pandemic. the tech giant holds it each year to show up new features,
5:52 pm
devices, that developers can harness for their apps. joining us now, ceo of accretive technologies, a consumer tech research company. where is the key thing you are looking for two on monday? >> apples wwdc event is where they give a roadmap to the future. at the long future, stuff that is coming this fall, they will preview everything that is coming to ios, ipad os, mac os. generally always a software focused event, i know we talk a lot about hardware, i am not sure how much hardware will be at this event. it is not what apple does with wwdc. it started to developers, showing them the vision for the platform so they can take advantage of new sdks and apis creating new apps on whatever new bells and whistles they are bringing to the platform. how are they are evolving their
5:53 pm
platforms forward, if a piece of hardware shows up, it would be icing on the cake. taylor: would that be in the form of a new headset? >> i do not think so, i would not expect that. personally i am not sure the technology is there yet even from stuff i've seen demo and tech wise it is just not there, i would caution away from that. with that being said, apple does have a toolkit called a arquette that they are trying to gain momentum for -- ar kit that they are trying to gain momentum for, it will be interesting to see if they launch anything around ar kit to get momentum for. taylor: we talked about the apps, our own internal reporter mark has looked they knew ios 16, how it can interact with the user, how do you think of the 16th ios system?
5:54 pm
>> i think would be interesting, and my opinion about the bigger surprises, if there is a user interface overhaul, flashy and knew that we would get excited about. ios is great, it has evolved quite a bit, it is only gone through a couple of serious user interface overhauls. people would argue that we are due for one to make it more flashy and new. that is the thing that i think is interesting about this platform in general, apple's approach to it, this event signals all of the new features and functionality they bring to their customers. basically making all their customers devices better with a software update. what would that look like, something brand-new? it would be an interesting surprise, it is hard to expect that, as a kind of thing i think it would get excited about, a fresh look for ios. taylor: this is also a company that has done a huge amount of work to bring the chip design in-house.
5:55 pm
how much of that is control over your own destiny versus some comments on the supply chain that is typical in this environment? >> i think it is primarily driven by control destiny, apical looks at the entirety of -- apple looks at the entirety of the roadmap from services and hardware. they have a vision of where they want that to go, they take that and the silicon team is in lockstep with the hardware planning team, is confidence of. no doubt the supply chain has issues. the reality is, even with apple internal design, they will not be immune to the supply chain issue hopefully they will manage that better, apple silicon is the critical part of moving there hardware device treasury forward. -- strategy forward. taylor: do you see any macro issues, the supply chains, the shutdowns of some factories in
5:56 pm
china, starting to impact this company in a significant way? >> i do not know about significant way, we are deathly worried about the impact. there is no doubt the china market has slowed down quite a bit, even just consumers buying there, china's a big part of apple business. in terms of the hardware impact, that is not demand going away, that is just people not being able to get outside and by phones, -- buy phones, factories being shut down and people nothing up to make them. these are not necessarily lost sales, their delayed sales. with that being said it will have an impact, in the short-term to some degree. taylor: really appreciate it, then, ceo and pencil analyst over creative strategies. this does it for this edition of "bloomberg technology." tune in monday, where live from
5:57 pm
the wwdc. this is bloomberg. ♪
5:58 pm
5:59 pm
6:00 pm


info Stream Only

Uploaded by TV Archive on