Apple Dealing With Problems of Success: Kirkpatrick

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Oct. 29 (Bloomberg) -- Bloomberg Contributing Editor David Kirkpatrick and Adam Parker, chief U.S. Equity Strategist at Morgan Stanley, examine the state of Apple and react to third-quarter results from Nokia. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Of profit declines.

David kirkpatrick is with us, author of "the facebook effect." he writes about all things tech.

What sort of story are you cleaning from these apple earnings and these continuous numbers heading into the holiday season?

I think apple is an extraordinary company like we have seldom seen in business.

They are trying to deal with the problem of success.

It is raking in all this cash.

It wants to protect its market position as samsung is coming up its tailpipe with a super low- priced alternative.

What is the thing that excites you about apple?

The strategy?

The sheer quality of its product as a significant leader over everybody else.

Nobody builds a better smartphone or tablet.

It defines the entire tablet category, even though they say tablet sales are low.

No one builds a tablet even remarkably is good.

Is that enough?

Good products matter a lot.

They will come up with something new.

At the market wants them to come up with something new.

For the company's long-term health -- they make assert -- sharp distinction.

There is a colorful phone, the five -- 5c. they make a distinction.

They are selling the 4s as the low-cost phone.

Can they differentiate like that?

I think they can.

The reality is that the mobile business globally is the most important growth business in business.

If apple can get a better hold in selling smartphones in brazil and indonesia and china, which they are doing well, they will have a great season.

Fox let's bring in adam parker -- let's bring in adam parker.

You never knew about cash.

-- have written about cash.

What is good for the companies is not necessarily good for the economy.

The economic data looks mediocre.

The company is in great shape.

How the management teams work, whether they do buybacks or dividends or whatever.

The technologies are on a crowded sure -- is apple a crowded sure -- shore?

I don't think so.

I think it is hard for me to talk about the individual companies.

It really comes down to what is a crowded, negative view from the investors.

This -- disc drive and pcs -- you don't put apple in the group?


carl icahn has made some noise lately.

It depends on the individual company.

I can't talk about each individual company.

Generally, the market has been rewarding -- that trend continues.

How do you as an inequity and a finance guy -- apple is beat to death making more money?

You gross up all the savings.

The problem is what stop you by -- buy?

Very few stocks of the attributes of the whole sector.

We mentioned a few of them in the note yesterday.

We have microsoft in our portfolio.

When you combine them together, they might look like one company you want to own.

It is hard to find one stock that looks like the whole sector.

Is apple still the kind of growth company that it was?

Their earnings have become boring.

It is more of a -- i still love apple long-term.

The global tech market is hugely available for them.

Adam parker with us with morgan stanley.

David kirkpatrick with us.


This is the distinction between companies.

Old media and new media.

Nokia's net loss of 91 million euros is smaller than what analysts anticipated.

Nokia is no longer a growth company.

It's not even a company.

It will be part of microsoft.

They are the anti-apple.

Is apple a consumer staples stock or is a day technology stocks -- it a technology company?

It is a technology company.

We think it is a value stock.

Companies that have tremendous cash tend to be more valuable.

We are arguing about apple.

Nokia has a headline margin of 12%. it is running at one third the horsepower.

At one point, they were the dominant company in cell phones.

Apple's quality is its elevation and it will continue to be.

It will continue to have great products and it will continue to pioneer new categories, i believe.

Successful businesses have the apps that people want.

Cash allows for that.

Thanks to our headline team for bringing us the nokia perspective.

Nasdaq a bit flat.

This text has been automatically generated. It may not be 100% accurate.


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