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tv   Tech Check  CNBC  October 28, 2021 11:00am-12:01pm EDT

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jason, we appreciate you coming on shares -- >> thank you for having me, morgan. >> almost up 5% right now. david, we've got all the major averages higher, record for the nasdaq today and amazon, apple and number of other names reporting after the bell. >> big earnings coming yet again. we'll cover them tomorrow but that does it for us today. "techcheck" starts now ♪ good thursday morning, welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today a mixed picture for growth stocks megacaps are holding up the market as the nasdaq gets a new record high. are we seeing a valuation reset in tech? we're going to dive into the chip sector. exclusive with intel's on the ambitious turn around plan and global foundries making much
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anticipated public debut ceo is going to join us in just a few minutes, dee. >> as you just said, carl, we're going to start with the megacaps holding up the rest of tech. mike santoli has a look at that rally. mike, what are you seeing today? >> yeah. dee today a little more inclusive than it has been the average stock has a lot of catchup to do to the very largest once today, apple, amazon, nvidia, tesla are responsible for vast majority of the gains in the nasdaq 100 this shows you the ndx concentrated in the top five names, 40% of the market weight is in five stocks. the equal version, equal weighted version of the same 100 stock index that has lagged badly as you can see here, rolled twice in the last couple of months, catching up a little bit today. this is the equal-weighted s&p technology sector. also under performing a bit. just only recently, though and here we have the small cap information technology sector, subset of the s&p 600 small cap. so what you see here basically
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is the megacaps kind of taking more than their share. you can read this two ways, one of which is it's a very narrow market, concentrated bets. the big winners keep on winning. the other way is we had a consolidation and shakeout in the average stock. most stocks have gone side waste. maybe you can get some catchup into year end which would maybe broaden things out a little bit. that's what we're watching today, guys. >> mike, there's a ton of stuff to talk with you about we'll get back to you in a little bit our mike santoli continuing the theme. it's a tough morning for tech stocks not faang related twilio is getting a mixed. watch shopify. some of the reversals are crazy. it has reversed earlier losses now up nearly 7% ebay similar story disappointing holiday forecast we just talked a few moments ago down almost 6% and service now a
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beat for eps in revenue. the guidance was in line stock was down 3% pre-market now you can see it's up 3% jon, there's been a lot of really interesting pre-market and intraday moves on some of these names not in faang. >> what i've been watching most closely, shopify and service now. when do you see a miss on the top and bottom lines and then see a stock up 6% after that but it was a slight miss on the top and bottom lines i think it had to do with some supply chain stuff a bit of a pull one way or the other. but the story overall largely continuing to play out gross merchandise, volume off maybe a little bit, but gross payment volume doing little better because of payment attach if you like shopify before, there was no fundamental shift in the overall story here. i think similarly, beau mcdermott was on earlier today we talked to him about the now platform and the strategy the acquisitions that he's doing
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that continues to play out, dee. >> and you know, a lot of it comes down to comps, right we call these the nonfaang names the rest of tech but they're the high growth names, the pandemic darlings we saw really run up last year. i include tell le doc as well. they're just coming up against these hard comps looking for ways to diversify their evenue we know the tech giants have been quite successful in doing that amidst the digital transformation but a good way to play this too as cathy woods ark etf, these are some of the major holdings and this reversal, carl, you mentioned we have seen this morning, investors taking another look, many of the names underperformers year to date but the last few weeks, have caught a bid and they are doing a lot better you think that that growth trait is going to pick up again the ark etf could be where to go. >> it's not happening in a vacuum obviously the whole market is paying attention to yields at the front end.
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we see hawkish moves on central banks around the world jp morgan is out this morning that says that earnings, jon, continue to surprise to the upside guidance remains constructive. and as supply chain issues subside, we expect top line growth to further reaccelerate, investors should be buying the dip and cyclical assetings and position for yields to resume moving higher as further into the curve. so, it's a lot of -- it is really fascinating mix today of macro and micro. >> we got a look at i think a big retail innovator in shopify. i think it's very interesting sentiment wise to see that moving higher, almost 7% still in this part of the early morning trade. and we're going to get apple this afternoon and apple is trying to deliver more devices remember, apple makes millions and millions of iphones. complicated, you know, high margin device. and their supply chain issues
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globally but it's also one of the best in the world at supply chain. so when we're looking at overall how tech companies can balance supply and demand, we want to see what's really going on and what the best companies are doing. watch apple and see how it's being affected, what it says about suppliers and what it says about diversification in its assembly and how it has managed to navigate this. >> it's a great point. and carl, it also speaks to the fact why these tech giants may be fairing better than the rest of tech because they have that purchasing power you talk about all of those millions of iphones hitting the market that's one of them also i don't want to ignore ebay jon, you said shopify the innovator. ebay, the innovation it put into effect a few years ago developing its own payment system, carl, that came through, at least in terms of profitability. but the setup remember, apple we got amazon this afternoon as well and that will be key for the upcoming holiday quarter >> indeed. meantime, the third biggest ipo of the year today, semiglobal
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foundries debuts on the nasdaq company raises 2.6 billion for the ipo. set to begin trading at 47 giving the chip maker a $25 billion plus valuation and joining us today global foundry ceo tom colefield. thank you for the time congratulations. good to see you. >> thank you thanks for having me. >> it's obviously historic moment for your company, but also for the space in general. we spent almost everyday talking about supply and capacity and how the industry is headed how do you think it fits in with the moment we're in given the challenges of the year >> look, i think we take one step backs we have an industry that's half a trillion dollars today. it took 50 years to get to that level and it needs to double in the next ten years that's the game we're all chasing capacity >> is that something that you think the industry is ready to do are we ready to chase the demand shock that the world finds itself in? >> yeah. i think there's two pieces first, for gf, you know, in the
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next 2021, 20 22 we're going to spend $6.5 billion to add capacity we worked with our customers and our government partners to create a new economic model because we need a new economic model to accelerate this capacity expansion so today's ipo ties back to that we're going to use about 1.5 billion of today's proceeds from the capital markets to fund some of that growth >> tom, tell us how you're thinking about regional diversification in your locations based on some of perhaps the shift in demand, the shift in willingness of governments to incentivize that kind of innovation in the pandemic and concerns about asia specifically. >> well, i think any time there's concentration anywhere in the world of the supply chain, getting diversification is really important. we operate in singapore, the u.s. and european union. and in fact, we have expansions
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going on in all three of those continents we have a $4 billion expansion going in singapore with great partnership with the singaporean government spending over a billion dollars in the up state new york in fab 8 and another 1.5 billion in germany. we're building out our global footprint. and i think for the obvious supply chain security sovereign defense security getting more balanced supply chain around the globe is very important for the world and for the industry >> tom, talk about the u.s. specifically as you're expanding capacity the founder of tsmc is skeptical of washington's plans to increase capacity, $52 billion to increase that domestic capacity is too little what do you think? >> the 52 billion is not the beginning and the end. it's the beginning really you think about that 52 billion, you know, about 30% partial in funding so that 52 billion will enable about $150 billion of capital
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expen expenditure and look i'm absolutely confident once we start to use this partnership model to create capacity, the economic return for governments that they will see in employment and philosophy of money through the economy, they'll want to do phase 2, phase 3 of that so we shouldn't argue or debate over is 52 billion enough or not. let's make that the first installment. make it successful and more will come >> speaking of the government aspect, tom, i wonder when you look at asia pacific, north america, europe who is doing the best job at drawing in that investment and welcoming the capacity additions that we so badly need >> well, look, i already spoke singaporean government already has a program with us. i think the u.s. will either later this year or first quarter of 2022 get the -- you seek a bill fund it and get that program going. and then of course european union isbeing debated but i'm
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confident at some point in 2022 that will get resolved as well and then we can begin to add next round of expansion in those continents as well >> tom, we spent a lot of time talking about leading edge process technology but that's not all there is out there demand wise. and you play in a different segment of this space. how do you expect to see the supply of the nodes that you guys operate in and supply how do you expect to see that play out as so many different places are adding capacity how do you plan to make sure that you don't end up in an oversupply sniituation >> no, it's a great way. the area we play pervasive deployment of semiconductors and it represents some 74% of the foundry tam. 52, $54 billion and growing. so there's a lot of capacity that needs to be put on to continue with that growth. and you know, we're going to be very rational and disciplined how we'll do it. we'll always do it in partnership with our customers
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make sure differentiation that we have is tied to our customer's needs and we'll make sure that we're putting capacity in that always has an outlet for a customer to use it >> finally, tom, you know, anybody who has followed the industry for years knows -- has a reputation at least for boom/bust. do you think the way in which we are using chips differently generationally now sort of lessens the risk of that happening again? >> yeah. i fundamentally believe -- i think it was really the smart phone that did this, we went from a compute centric industry to what i'll call the pervasive deployment in semiconductors everything we have, every device connected, every device needing security is that shift that created what i would call a more durable demand you'll not have the cyclicality of the industry, it will come from more macro economic events. if we have cyclicality, it will be more muted in amplitude and more muted in frequency going forward. >> tom, congrats we hope you'll come on often. >> thank you. >> tom caulfield global
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foundries. >> thank you. we have a big interview with the ceo of intel coming up. and we're expecting comments from the president in just a few moments. we will take you there live after a quick break. stay with us it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement...
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♪ senator patrick toomey
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introducing a bill aimed at stopping the s.e.c. from banning payment for order flow kate rooney is with me here in san francisco. kate, bfof, very polarizing on one hand, yes, it introduced a whole new cohort to the market for commission h f free trading and there's a lot of transparency issues. >> that's pat toomey's argument. republican from pennsylvania introducing a bill today essentially blocking the s.e.c. or attempting to block the s.e.c. from banning payment for order flow he was on squawk box talking about the idea that it has ushered in this whole new group of traders he talked about 20 years ago commissions on 7 or $8 on some of the platforms saying that is not what customers want right now and this whole new generation of consumers. then the idea he said to the s.e.c. f you have a better idea, tell me why this shouldn't exist. he heard crickets from the s.e.c. >> payment from order flow wasn't something that younger, new investors talked about but now this is the main thread of wall street bets, of so much of the conversation
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so do you think that because there's a little bit -- maybe not transparency because there still is sort of a lack of information about how it's actually done and conflicts of interest, but at least the conversation has started that people sort of know that it's not necessarily free anymore they're paying in some way has that changed the stakes perhaps? obviously gary gensler hit hard against payment order flow. >> the it's this wonky back end system that's not excited to talk about robinhood came out a app, tried to grow the company quickly and fined by regulators without having the right disclosures payment order of flow and go get into the behind the scenes plumbing gamestop brought this out. that's why consumers now know about it some would say they would rather pay but similar to the social media giant argument of advertising. you know,people -- there are certain people that say i would rather pay a fee or monthly subscription to not have people track my spending behavior where as it might come out the same
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way on the trading platform saying there's people that do want to pay for trades because they think they might get better execution. >> some platforms are trying to make that argument we'll see overtime if that's an effective one. kate, thanks so much jon, back over to you. >> yeah. let's turn now to another chip maker terra don shooting up this morning after a double upgrade from ubs to outperform and buy both firms predicting the system on a chip testing business will continue to grow throughout 2022 and 23 apple, terradynne's biggest customer is poised to up its purchases. carl, we talk a lot -- just talking with caulfield from global foundries about the overall demand for semiconductors, how that's pretty stable overtime customization, a lot is system on a chip purpose built, you have to test those things. this part of that story assuming, hey, that continues to play out, you got to have software, machinery to look at these things, make sure they
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check out. teradyne is getting a piece of that. >> very nice nice to get a double upgrade and this is one of them, 135 to 150. but to the larger point, jon, we were just talking about, industrial auto mmation is not just an iphone issue it's happening across the board. when you get corporate cash flows as a percentage of gdp right now record highs, you got a lot of companies looking to automate and increase capacity over time and that's going to mean the need for the kinds of products that teradyne provides. >> potential upside as well as supply chain opens up their robotics business should continue to grow and do better they got head winds in the near-term because of that over at teradyne. more apple after the break plus amazon. who will have the better quarter? we'll be right back. plus, a couple chip names moving on earnings kla providing up beat guidance in addition to a beat on both the top and bottom line.
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xilinx acquired by amd still, we think, sees revenue rise 22% from last year and we still have that pat gel singer interview coming up stay with us ♪
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in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.
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we continue to wait for the president and the east room at the white house, expected to lay out today the framework for social spending and infrastructure we will take you there live when it happens jon, as we continue to look for signs about how the white house is going to bridge the gap between house progressives and senate moderates sinema this morning with a statement saying she does see significant progress and says, quote, i look forward to getting this done. we will see. >> yeah. very important developments perhaps on the national scale at the company scale, back to intel, we talk about growth. pat gelsinger the ceo has an ambitious transformation plan for the chip maker
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on the menu, accelerated at a fraction of the time standup a competitive foundry business, ramp ipus, discreet graphics within a five-year period. recently the street has balked at the scale and velocity of this plan but gelsinger laid out all the nuts and bolts at intel's annual innovation event in san francisco where i sat down with him exclusively. it's a moment when so many investors think the plan is impossible so i wanted to hear him articulate it. here he as much many. >> later this quarter we'll release the mobile processer family built on one overall portfolio of products. it's based on this idea of having both high performance and power efficient cores but also multitile. right? and the ability to have one product designcovering all the different segments of desktop and mobile, so a very powerful capability as we go to what's call addis aggregated design
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and the benchmarks, superb. >> that's what i wanted to get to what should we expect to see on power efficiency >> well, the power efficiency we'll be giving those later this quarter, most of it, bring the mobile parts out desktop, this is all about the geeks and we'll be setting some new records, we hope with overclocking, the best-ever performance and gaming, benchmarks that have been put forward. you know, from our product, they have these products, apple's products, anybody, we're blowing them away when we bring out our high end gaming efficiencies we have this wonderful ability to balance between performance, like hitting the turbo mode on your car, versus we're in ev mode all of the things i want to have minimize the power requirements, maximize battery life and those capabilities as well are going to be very solid over the product line so there's a very impressive product. and all of it being done on intel 7, right
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and couple of years ago, wow, we couldn't get our manufacturing machine running right. now intel 10 is running great. intel 7 ramping in production right now. intel 4 looking healthy so the process machine is coming back to life. very well. even a bit ahead of my audacious expectations my team is ahead of those and obviously the proof point with alder lake and the launch is absolutely the compelling well to begin innovation. >> what is the role of software at intel in this era and how are you going to drive it differently than it has been driven in the past >> yeah. many aspects to this question, jon, as i think about it, why did god have me outside of intel for 11 years running a software company for eight years? i think a lot of it was to prepare me to answer that question because you know, it really is a hardware silicon company like intel, we sort of think of software often as the afterthought the reality it needs to be the forethought because developers develop the software interfaces. the software needs to come first
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and then the silicon needs to fit underneath those software interfaces and make it better. and that's why we brought greg on to the team, my cto to come across and help to build that software mindset, software first, silicon-enhanced at intel. we have 15,000 software developers i have more software developers now than i had at vm ware a software company but we haven't brought them together effectively. and the idea here is that there's an extraordinary amount of innovation happening in areas like a.i. and machine learning and largely through open source. well, our business model is a perfect compliment for the open source environment huge statements of our new offerings we're bringing together almost 800 new features that we're releasing with 1 api. huge amount of assets and recommitting ourselves to saying developer, we are back you can trust us we're going to be open, right? we're going to give you choice the core things they're looking
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for for their innovation partner of the future. >> if you want to have the leading edge technology and equipment from asml and whatnot you have to have scale if you're going to have scale in the future you can't just build your own designs you have to have foundries you have to have foundries you need leading edge process technology processing that intel has fallen behind. you have to do five process nodes in four years and you've got to do graphics processors and you've got to do and you've got to do, is that how you looked at it that you have to do all these interlocking things within a five-year period >> as we said, we must get back to process leadership. and you know, our process teams, they kept innovating even though the manufacturing teams weren't successfully bringing them to manufacturing scale. so we had a rich trove of ideas of innovation sitting here ready to move forward. so az looked at that, i said, we got some pretty cool stuff ready to go. i got to unleash that essentially congestion that we had in our innovation machine.
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so, we essentially doubled up. we said, we used to run one team right for integration, we're now running two and they're going to go twice as fast as a result not any one of them faster but together in harmony. it's much more like tiktok process technology >> but tiktok was one process technology every two years >> but it was two parallel teams in design. right? that's essentially what we're creating in our td engine, two parallel teams that are operating so the intel 4.3 team, the tok team and the tik team each working in parallel on the process technologies i needed to fund them. we put more capital in place, gave them the rnd capacities and what we've now laid out, if you think about this, jon, there are four major things that we're going to be able to do one is we're releasing the most innovative new tran sister structure that's been done in over a decade. we're going to do it again. >> now, i also got a little personal with him on the back
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story for his return gelsinger rose through the ranks at intel for three decades, was passed over for the ceo post and he left intel, eventually was leading vm ware 11 years later intel's board reached out to him to become a ceo candidate. he took me back to that moment >> a decade plus ago a lot of people would say intel didn't treat you right. you're on your way out and a couple years ago you were still saying, i'm not going back to intel at what point did you look at what intel would have to do to get back in the fight? >> so in november, the board reached out to me about joining the board. so, i asked michael dell, what do you think, michael? he says, huh, they can use some help go help them and i interviewed with the board for a couple of weeks. and then right before christmas, they said would you consider
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being the ceo? and you can imagine when that question was put on the table, jon, you know, it just brought back a flood, right, of emotions and you know, the thoughts of being pushed out 11 years ago and now being considered to come back could i do it? do i want to do it as i looked at that and the stumbles that intel has had, the conversations with the board of directors, i wrote a strategy document for the board some day it will probably be in the intel museum as well and you know, and i said, if you're going to call me, i need two things one is it must be unanimous. the board has to be all in because we are going on an incredible journey together. >> and the second thing, carl, was he said this has got to be the strategy so he laid this out ahead of time now, clearly investor sentiment has turned against ntel. and history is any guidance will stay against intel until well after they hit some of these benchmarks right now there's a disagreement on facts
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a lot of people think that intel's two-years behind amd but gelsinger is saying in q1 we're going to have discreet graphics from them that are competitive with nvidia and amd and q1 we're also going to have mobile benchmarks on alder lake that will show pretty nice power efficiency so maybe the story isn't quite what investors think it is and that's why we do this job, carl. >> indeed, jon even though the shares haven't come off that much from these nine-month lows, that report yesterday, though, showing that gelsinger and some directors bought almost $3 million worth of shares for the first time in years. >> yeah. >> jon, it was so interesting to hear him talk about the software mindset, bringing tallon from over vm ware and all these ambitions but he also wants to basically start a foundry business from scratch. he needs talent for that as well it's just a very, very long list i look forward to seeing that strategy document in the intel museum years from now. and how it all worked out.
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i mean, jury is still very, very much out as we talk about the share performance. investors yet to be convinced he'll pull this off. >> we also talked about ipus, infrastructure processing units been working on with google co-designed which is not something that intel used to do with under gelsinger they're doing it now >> great stuff, jon, as always really interesting stuff with pat gelsinger. mean time, a related topic, apap does report tonight, josh lipton generally gets to talk to tim cook has more on what to watch with the stock and its suppliers. hey, josh. >> carl, today that investors have marked on their calendars apple set to report earnings results. now heading into this print, this stock is up 15% so far this year it's only about 3% now from its all-time high here investors, of course, will want to know about that iphone franchise. what is demand like for the new iphone 13 models and what about supply? how is apple navigating the on going chip crunch.
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ipads and macs will be in focus too. big winners during the pandemic as we learned and worked from home but how do those businesses fare as students return to school and employees to work and what is demand like for the newest mac book pro with apple's custom design chips services front and center as well remember, apple execs did caution on that last earnings call that the services growth rate would return to what they described as more typical level. and we'll keep our eyes on apple suppliers like qualcomm, more than 20% off its high here down more than 10% in 2021 broadcom up 20% this year and trading right around its all-time high. skyworks still about -- up about 10% this year but about 20% off its late april high. back to you all. >> josh, thanks for that. we'll bring in b of a who is worried about continued strength carrying into this quarter but still says investors can expect strong demand for products benefitting tonight's results. demand, yes, but that isn't the problem. it's supply. what are we expecting on that front? >> yeah, deirdre
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thanks for having e. look, i think that that's right. i mean, you do get a strong quarter in the september quarter and that's really gated a little bit but the fact that apple only had two selling days of the new product in this september quarter. so some of that strength and it is a selling quarter for apple gets pushed over into december now, that said, we have seen what the lead times are doing across the board and you know, the iphone 13 many in the iphone 13 are coming much more to the supply/demand balance at this point in time relative to the pro and pro macs those have been stretched out anywhere between 4 to 6 weeks depending on which region you're looking at they clearly still have a component issue to deal with on top of all the power issues that they have sort of trying to navigate in china. there's a whole issue of supply chain impact they have to navigate over here we look forward to hearing tonight whether or not they've been able to successfully meet or at least see if the supply situation is improving on a relative basis as we get into
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the march quarter. >> wamsi, you're looking at services and you expect the strength here to moderate somewhat is that post-pandemic world and also do investors have to start getting worried perhaps about the growth rate considering what apple is facing in terms of regulatory challenges and app store fees and what google did last week which was cut its app store fees by half >> yeah, that's a great point, deirdre. look, i think services had a phenomenal quarter last quarter north of 30% going to be hard to replicate that i think they could do the high 20s in this quarter. di acce deceleration but extremely strong services get worried below 20% i think still north of 45% by and large, but as long as they can maintain north of 20 in the long run or at least over the next few years i think the services growth will still be rewarded in the multiple now, that said, as you point out, there are these regulatory issues i think the epic side of things
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is going to take a long time to resolve. we don't think that plays into the numbers any time quickly however the google anti-trust lawsuit has a more powerful impact on apple because of the big large licensing payment they get and timing on that is hard to call but we think it creates head wind into the valuation and aggregate. >> on that point, wamsi, in the wake of the ios changes we have seen obviously frustration from the likes of facebook. who some alumni at least argue that it's an abuse of apple's power and they're making unreasonable changes that have huge impacts on other companies. do you think that puts a light on them from an anti-trust point or anti-competitive standpoint >> no. i don't particularly think that, carl i think that apple has sort of really been a huge advocate of privacy right from the very beginning of being very strong contender in light of making
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changes from a privacy standpoint and to the degree that you give consumers the choice whether they want to opt in or out, it's up to the consumer if they really feel like i'm fine with all these apps tracking me all over the place and they choose yes, it's up to them and the business model can zand it's not that it's completely taken away but the power is given to the consumer. very much so in the hands and decision of the consumer, just enabling and empowering the consumer to have that feel so in the long run i think it's very much tied to their healthcare initiatives apple has to make sure that the consumer feeling that their data sitting on an ios device is as secure as it can be and then you can really start to talk about really increasing the whole perimeter around what they can do with health and healthcare services and your data sitting in there and completely adhering to all the regulatory issues as well so i think it's very, very central and thematic concern
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from an apple perspective and they're doing what they can to make sure the consumer really feels that way. >> wamsi, hey, it's jon. how are you modelling how much of holiday demand is transient meaning, you know, i got $1,000 to spend i might gift it, you know, with an iphone to someone or if there are no iphones in supply, then i buy a tv or i buy a bag or something else certainly there's got to be some of that. it's not as if every iphone that's not available ahead of christmas just gets pushed off to january >> no, i think that's absolutely right. i think most people tend to buy a phone when they absolutely need it. your phone is broken, you drop it that's the majority. then you've got people who will start off -- some sort of upgrade cay dance cadence. we can buy it this year. you have some demand that's staggered as well. but i do think that there is demand leakage when you have an
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issue where supply is so constrained where you could see that the march quarter does not fulfill everything that got pushed out from the december perspective. we're well below the consensus in terms of when we think about where the iphone units going to land for the year. so we do think there's some demand leakage at the end of the day. one other interesting thing to consider is that this year's apple quarter started on september 25th, you know, right two days after the launch of the iphone 13. and it ends on december 25th when you think about december 25th to the end of the year, that's a time when you have huge sales usually on the app store that highlighted this in the past, services will not benefit from that particular year. so, a lot of moving pieces over there. i think that part at least falls into the march quarter but on the devices actually i agree with you some will be transient so we're much more cautious on the outlook in the march quarter and beyond >> wamsi, thank you for hepg us
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to get ready for a very busy, big night of earnings. we'll talk to you again soon speaking of a big night of earning, we also have amazon tonight after the bell the stock in the green this morning while we await those numbers. consensus estimates calling for earnings per share of $8.90 and revenue up 11.6 billion dollars, carl, another quarter that billion dollar plus revenue. >> indeed. guys, you know, it's funny how a bunch of names that we've already heard from kind of feed into what the narrative is going to be on an amazon -- from an amazon standpoint, for example, ebay, you know, jon, some of the cautionary comments about holiday spending, the other hand microsoft's cloud business might argue some positive trends for aws. so it's really going to be a ratification of some narratives that we've built so far as these q3 prints have come in. >> yeah, for sure. you mentioned microsoft, which did so well with its cloud business often, you know, maybe it's not the exact same percentage
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between aws and azure, but they tend to track together then shopify, even again though it was a miss on the top and bottom lines, it was a mild miss we saw the stock up about 6, 7% a few minutes ago. we'll take a look at where it continues to trade but those retail trends, those cloud trends, how many of those also read through to amazon. we will see. and meanwhile, we continue to wait for president biden as we mentioned, the president is expected to lay out his framework for social spending and infrastructure we will take you there live when it happens stay with us ♪
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here is the president in the east room. >> after months of tough and thoughtful negotiations, i think we have an historic -- i know we have an historic economic framework. a framework that will create millions of jobs, grow the economy, and invest in our nation and our people. turn the climate crisis into an opportunity and put us on a path not only to compete but to win the economic competition for the 21 11st century against china a
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over other major country in the world. it's fiscally responsible. it's fully paid for. 17 nobel prize winners in economics said it will lower the inflationary pressures on the economy. over the next ten years it will not add to the deficit at all. it will actually reduce the deficit according to the economists i want to thank my colleagues in the congress for their leadership we spent hours and hours and hours over months and months working on this. no one got everything they wanted, including me but that's what compromise is. that's consensus and that's what i ran on i long said compromise and consensus are the only way to get big things done in a democracy. important things done for the country. i know it's hard i know how deeply people feel about the things they fight for, but this framework includes historic investments in our nation and in our people
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any single element of this framework would fundamental be viewed as a fundamental change in america taken together, they're truly consequential. i'll have more to say after i return from a critical meetings in europe this week. but for now, let me lay out a few points first, we face -- and i apologize for saying this again, we face an inflection point as a nation for most of the 20th century we led the world by a csignificant margin because we invested in our people, not only our roads and our highways and our bridges, but in our people in our families. we didn't just build an interstate highway system, we built a highway to the sky we invested to win the space race and we won. we're also among the first to provide access to free education to all americans, beginning back in the late 1800s. that decision alone to invest in
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our children and families was a major part of why we are able to lead the world for much of the 20th century but somewhere along the way we stopped investing in ourselves, investing in our people. america is still the largest economy in the world we still have the most productive workers and innovative minds in the world, but we risk losing our edge as a nation our infrastructure used to be rated the best in the world. today, according to the world economic forum, we rank 13th in the world. we used to lead the world in educational achievement. now the organization for economic cooperation and development ranks america 35th out of the 37 major countries when it comes to investing in early childhood education and care we know how our children start, impact significantly how they'll finish we can't be competitive in the 21st century global economy if
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we continue to slide that's why i've said all along, we need to build america from the bottom up and the middle out. not from the top down. but the trickle down economics that's always failed us. i can't think of a single time the middle class has done well that the wealthy haven't done very well. many times including now when the wealthy, super wealthy do very well and the middle class don'tdo well that's why i propose the investments congress is considering, two critical pieces of legislation positions i ran on as president, positions announced when i laid out joint session of congress what my economic agenda was. these are not about left versus right. or moderate versus progressive or anything else that pits americans against one another. this is about competitiveness versus complacency competitiveness versus complacency, about expanding opportunity not opportunity
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denied it's about leading the world or letting the world pass us by today, with my democratic colleagues, we have a framework for my build back better initiative here is how it will fundamentally change millions of you are in the so-called sandwich generation. who feel financially squeezed by raising a child and caring for an ageing parent about 820,000 seniors in america and people with disabilities have applied for medicaid and they're on a waiting list right now to get homecare. they need some help. they don't have to be kicked out of their home. but they need a little help getting around having their meals made occasionally for them. they don't want to put them in nursing homes not because of the cost but because it's a matter of dignity they want to stay in their
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homes. but it's hard. they're just looking for an answer so your parents can keep living independently with dignity for millions of families in america, this, this issue is the most important issue they're facing it's personal. so here is what we're going to do we're going to expand services for seniors. so families can get help from well-trained, well-paid professionals. to help them take care of their parents at home. to cook meals for them to get their groceries for them. to help them get around. to help them live in their own home with the dignity they deserve to be afforded quite frankly, what we found is that this is more popular or as popular as anything else we're proposing. because the american people understand the need. it's a matter of dignity and pride for our parents. 30 years ago we ranked number 7 among the advanced economies in
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the world as a share of women working. you know where we are today? we rank 23rd 23rd 7 to 23, once again our today? we are ranked 23rd 23rd 7 to 23. once again, our competitors are investing and we're standing still. today there are nearly 2 million women in america not working today simply because they can't afford child care. typical family spends about $11,000 on child care. some states it's $14,500 per child. we're going to make sure that all families earning less than $300,000 a year will pay no more than 7% of their income for child care, and for a family making $100,000 a year, that will save them more than $5,000 on child care. this is a fundamental game
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changer for families and for our economy as more parents, especially women can get back to work in the workforce. i'm looking at a lot of significant press people in front of me. a lot of them are working, working mothers. they know what it costs. i remember when i got to the senate i lost my wife and daughter in an accident, my two boys i started commuting 250 miles a day because i had my mom and my dad and my brother and my sister to help me take care of my kids because i couldn't afford child care and i was getting a serious salary $42,000 a year. we've also extended the historic middle class tax cut that's what i call it, a middle class tax cut for parents and that is the expanded child tax credit we passed through the american rescue plan what that means is for folks at home, they're getting $300 a month for every child under the age of 6
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$250 for every child under the age of 18. we're extending that the money is already life changing for so many working families this will help cut child poverty in half this year according to experts. that's not all it does it changes the whole dynamic for working parents. in the past if you paid taxes and had a good income you could deduct under the tax code $2,000 per child from the taxes you owed, but how many families do you know, a cashier, waiter, health care workers who never got the benefit of the full tax break because they didn't have that much to deduct, and it wasn't refundable? so it either came off your tax bill or you didn't get full credit why should, if someone is making $500,000 or $150,000 or $200,000 get to write it off their taxes? and the people who need to help
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even more, they don't have that much tax to pay. they don't get the benefit and they have the same cost of raising their children 80% of those left out were working parents who just didn't make enough money. that's why in the american rescue plan we didn't just expand the amount of the middle class tax cut. we also made it refundable this framework will make it permanently refundable making sure the families who need it get a full credit for it in addition to those who are already getting the full redit >> they're going to make sure that every 3-year-old and 4-year-old child in america go to high-quality preschool. that's part of the legislation i just brought up to the congress. studies show that when we put 3 and 4-year-olds in school, school, not day care, school, we increase by up to 47% the chance that that child, no matter what their background, will be able
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to earn a college degree as my wife jill is in the back always says, any country that out educates us will out compete us it can finally take us from 12 years to 14 years of universal education in america we also make investments in higher education by increasing pell grants to help students from lower income families attend community college and four-year schools and we invest in historically black universities, bcus and minority service institutions and tribal colleges to make sure every young student has a shot at a good paying job in the future. this framework extends tax credits to lower premiums for folks who are in the affordable care act for another three years. for 4 -- from 4 million folks in the 12 states that haven't expanded medicaid, all the rest have, this framework will enable you to get affordable coverage
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and medicare will now cover the cost of hearing aids and hearing check-ups. this framework also makes the most significant investment to deal with the climate crisis ever, ever happened beyond any other advanced nation in the world. over a billion metric tons of emission reductions, at least ten times bigger on climate than any bill that has ever passed before and enough to position us for a 50 to 52% emission reductions by the year 2030. it will do it in a way where domestic industries create good-paying union jobs and address environmental injustice, as well. tax credit to help people do things like weatherize their homes so they lose less energy install solar panels to develop energy products and help business produce clean energy and when paired with the
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bipartisan infrastructure bill, we'll truly transform this nation historic investments and passenger rail i know everyone says biden is a rail guy that's true. passenger rail, freight rail and public transit will take hundred of thousands of vehicles off the road, saving millions of barrels of oil everybody knows, all of the studies show if you can get from point a to point b on the electric rail, you won't drive your car you'll take the rail service we also learned that in most major cities in america, minority populations, the jobs they used to have in town they're now out of town. roughly 60% of the folks, they don't have vehicles so they need to have a means to get out of town for their jobs, to be on time this will do that like it did for detroit. 95% of the 840,000 school busses
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in america run on diesel every day over 25 million children and thousands of bus drivers breathe polluted air to and from school from the diesel exhaust. we will replace thousands of these with electric school busses that have big batteries underneath and are good for the climate. i went down to one of the manufacturing facility, saw one, got in one, they do not expend any -- they did not expend any pollution into the air we'll build out the first-ever national network of 500,000 electric vehicle charging stations all across the country so when you buy an electric vehicle. you get credit for buying it, you buy an electric vehicle and go all across america on a single tank of gas figuratively speaking it's not gas you plug it in 500,000 of them. the stations along the way we will get off the sidelines on
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manufacturing solar panels and wind farms and electric vehicles with targeted, manufacturing credits. you get credit for doing it. this will help grow the supply chain in communities too often left behind and we'll reward companies for good wages and for sourcing the materials from here, in the united states independent that means tens of panels and turbinesless pell beably to export these products and technologies to the rest of the world and creating thousands more jobs because we once again will be the innovators we'll also make historic investments in environmental cleanup and remediation. that means putting people to work in good-paying jobs and prevailing wage, capping hundreds of thousands abandoned
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well, oil and gas wells n they need to be gapped because they are leaking things that hurt the air and protecting the health of our communities. it's a big deal and we'll build up our resilience for the next super storm, drought, wildfires and hurricanes that represent a blinking code red for america and the world. last year alone these types of extreme weather events you've all been covering and some of you have been caught in the middle of have caused $99 billion of damage to the united states in the last year. $99 billion. we're not spending any money to deal with this it's costing us significantly. i met -- in pittsburgh i met an
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ibw electrical worker who crawls up the power lines in the middle of storm to keep the lights on when the storms hit. he calls himself a 100% union guy. his job is dangerous as he said, i quote, i don't want my kids growing up in a world where the threat of climate change hangs over their heads, end of quote. folks, we all have that obligation, an obligation to our children and to our grandchildren. the bipartisan infrastructure bill is also the most significant investment when they built the system and won the space race decades ago this is about rebuilding the arteries of our economy. across the country now there are 45,000 bridges and 173,000 miles of roads that are in poor condition. some of the bridges you don't even take the chance of going across they shut wn

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