Apple Leads Tech Sector on Mobile Innovation: Kanji

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Oct. 28 (Bloomberg) -- Hussein Kanji of Hoxton Venture Partners talks with Francine Lacqua about the state of Apple as an innovation company ahead of fourth-quarter results later today and also looks at Facebook’s results later this week and what to expect from Twitter’s IPO. He speaks on Bloomberg Television’s “The Pulse.”

Just an innovation company.

Our sales overshadowing any real innovation?

Is in an increasingly mature space.

It is still the innovation leader.

It produces most of its own silicon, the chip that it released.

It is a market-leading technology.

There've been small and acquisitive.

There've acquired some small companies and they are still pioneers in many ways at releasing technology to the market and that may not invent the technology but there really a best of getting it into the hands of consumers.

And doing to the battle between apple and facebook, it is the one that will be good -- the one that will win and that will be apple.

That is a story of the decade.

And apple you think will come up sooner.

They are focused on mobile which is now the way we run our lives.

With surprises me so much as google released his rocket -- this product.

Almost all the data out there suggests that everybody using one of these web services, whether it is foursquare or twitter or facebook, if they're doing it on mobile, the majority of that use happens on ios.

Apple is by far the most dominant company.

What surprises me is there a bunch of other tablets sold, i just don't know what people do with them.

I wonder.

What you expecting from earnings today.

We focus on the good news out of earnings or we be focused on what tim cook will do with shareholder exuberance?

Think there are a couple of things to watch out for.

One is with the guidance says on the sales of new iphones.

I pats will be too new.

They will be bundled into this quarter.

Net scores were most of the interesting data will be.

We want to know the margin is in his product.

They had a great opening weekend theaters probably the best ever in apple's history for the phone business.

The phones did lag up until they got to that weekend because people were waiting for the new models to come out.

You also want to look at what the margins look like.

This is half of apple's revenue in the margins have slowly been deteriorating.

There are still the best class and industry and are a good 10% highest points -- and are good 10% higher than others.

We want to see how they're doing in china because no one has really asked.

They did the deal with china mobile.

In terms of earnings to think they'll be better in the next quarter just because of when the latest products were launched, right?

You won't see them concretely in this quarter.

You only have about two weeks of the new iphones.

Most of the new iphones also happen in the next quarter.

The new ipad sales will happen in the next quarter.

We will get a pretty good version of going on in this quarter.

We will get pretty good guidance.

They have increased her expectations for this quarter as well as next quarter.

In terms of new product, are you expecting anything?

It's colored phones, its color tablets.

They sell and serve the market, but do we want a little bit more from apple?

We are expecting a bit more.

I think everybody expects more from apple but the playbook is standardized heard the know what phones to release and how to model.

There've been holding strong in the price points.

They could've easily released a 400 telephone and chose not to and they made the5c significantly more expensive.

It is unclear whether we will see any breakthroughs from apple.

If it does come it will be one of the secret press announcement.

This is a company that is in danger of becoming under some pressure from shareholders that it won't spend in r&d or give back to shareholders.

Without the prospect of reinvesting the cash into something brand-new and innovative, the shareholders have a perfectly except if asked which is hand the money back to shareholders, oh whether it is buying back stock or offering a dividend.

I think apple is such a cash producing machine at this point that it is unclear what they're going to be able to do with his cash.

Talk to me a little bit about twitter.

Talk to me little bit about facebook.

Disappointed both?

Face book earnings are reasonably on par with with the market expected.

It was disappointing for first folders and share -- for first holders of shares for facebook.

The twitter has it to be seen.

We don't know how the twitter ipos going to do.

It is certainly a frothy valuation at 15 billion.

It is a business that hasn't quite figured out how to monetize the level that we needed to.

What is the twitter model?

I use it every day and i think about it or it how do you make money out of this?

Are member people asking the very same thing about google.

What people actually click on google ads on the top or on the right.

When you have such a volume and such an installed base, a small percentage point does make a difference.

And so twitter is sponsored tweets.

You see them in the headlines.

I think they're increasing the volume of sponsored tweets.

His means at their ad rates go up.

Hussein, thank you so much.

A partner at hawks adventures.

-- athoxson hoxson ventures.

We asked him how hard it was to

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

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