Apple CEO Cook Flexing Product Muscle Overseas

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April 24 (Bloomberg) -- Gene Munster, senior research analyst at Piper Jaffray, examines Apple’s overseas product sales success and second-quarter results on Bloomberg Television’s “Bloomberg Surveillance.”

Is unspoken -- 63% international sales.

Is tim cook's upside his international expansion?


Investors did not feel the products were priced right.

Ultimately, the iphone numbers were driven by international markets.

They got their solid base in the u.s. they grew at $200 billion revenue -- unit growth outside of the u.s. when you do a net present value, does it make you raise your price chart?

We are keeping a conservative is the simple answer.

The big mystery piece here is the majority -- of their cash is outside of the u.s. when you do a net present value, you have to bring that cash back to the u.s. there are huge penalties.

I want to ask about gross margin.

39.3%. approaching 40% for the first time since september 2012. how does apple keep that number heading back towards 40%? one of the benefits is they are 6-9 months after the last product release.

That is part of the reason.

One of the particularly impressive stats is they were able to deliver that upside to the margin, despite the esp's falling.

I think the simple answer is that they are getting better economyies to scale.

That is a testimony to their manufacturing.

There's is one negative item here that i need to mention.

Ipads or 17% of revenue.

They missed estimates by 17%. how concerned are you?

It is a concern.

When you look at the context, it was clearly a net positive.

There is something else -- what ultimately has happened is they quickly saturated the high-end market because of the success with the iphone.

They are shifting the need to grow in emerging markets.

You are the pro.

I follow the feed carefully.

Did tim cook leave the legacy of steve jobs behind yesterday afternoon?

I don't think so.

That will depend on what happens by the end of this year.

He has shown that he is able to grow in emerging markets.

The real legacy, to separate himself from steve jobs, it has to be about new products.

Let's post the twitter question of the day.

Has tim cook proved himself as the apple ceo?

We want to thank gene munster for joining us.

Good to get his perspective on the other work that we will do.

Breaking news --

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