Apple Needs Revenue Stream Beyond Hardware: Windsor

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Jan. 27 (Bloomberg) -- Richard Windsor, Founder of Radio Free Mobile, previews Apple earnings and discusses the company’s offerings outside of hardware. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Have a great time?

I think it is an indication that they will have a better time.

If you look at how the iphone is being received, it is better than expected.

The ipad air is also popular.

You have china mobile, the first time you can sell the iphone legally in china and that will add to the numbers.

We will see 55 million units and i am looking around 57 million units.

That is fascinating and the numbers are good, potentially getting better.

Over the last few quarters, it has been lack of innovation.

Any improvement?

I do not think so.

They are not going to talk about new products anytime soon.

That story is not going anywhere.

If you look at apple for the next two or five years, the biggest issue is the lack of services that they have.

You realize that what they are good at is distributing services and content.

What they are also good at is the hardware side.

This is where they went to invest.

That is a great asset and apple needs to leverage that assets to find other ways then hardware to make good margins.

Is that going to be any good?

That is a good question.

The answer is no.

If you look at what has been launched so far, they have not been successful.

It is not as good and this is the problem that they have.

This is why, further down the road, i could see a mergers and acquisitions spree.

As you go through the week numbers, what are we going to see reported this week?

We are going to see good numbers and a valuation that is challenging.

The way you see it is that intel had a difficult time and microsoft had a great time on the software side.

You will see apple doing a little better, thanks to some of the weakness that they are experiencing in the smart phone market and a lot of reaction is in software and services.

The hardware is starting to slow down and you are seeing that reflected in the firms this week.

Always a pleasure.

It is nice to see you on screen.

Thank you for joining us.

Over to you.

We will tell you what is coming up on the show.

A political crisis in the ukraine and a big show -- a date to share power fails.

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