China Is the Centerpiece of Apple's Future: Ward

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Jan. 17 (Bloomberg) -- Howard Ward, chief investment officer at Gamco Investors, discusses Apple’s global growth as it partners with China Mobile to sell the iPhone in China on Bloomberg Television’s “Bloomberg Surveillance.”

Proof that the world will buy apple and not just dumb america?

The international expansion is a big part of the growth story at apple for the years ahead.

No question about that in china -- no question about that him and china has been a piece of that.

But the key thing here is that apple's marketshare hasn't receded.

Apple's market share has solidified and is poised to grow.

Three apple executives said that they would not give up the high ground of an aspirational product.

Do you have confidence india and china will pay up for an aspirational product?

Absolutely.

I believe the apple brand in china is really still extremely strong and very much an aspirational product.

This is a company that had near riots at their beijing and shanghai stores a couple of years ago when you phones were introduced.

That was a couple of years ago.

That is the key.

That is the key, but, i'm telling you, scarlet, the apple brand will be very strong in china.

And there are subsidized phones available for heavy data users.

They will give you the phone for free if you get the highest data plan.

So they are targeting a certain kind of customer.

Do investors look at it as a growth stock or a value stock?

It is cheap.

It is surprised by intel which is no growth.

It is a value stock.

It has an 8.3% cash flow yield.

An ongoing execution of a share buyback.

It will learn about $45 a share this year.

Is price for no growth.

Yet we think it will have double digit growth this year.

It will have close to triple digit growth next year.

Let me bring in my new toy with a picture of scarlet fu on it . let me ask you the basic question.

Can the nsa listen to my phone calls?

Can the nsa read my messages in my e-mails?

No.

you are inside the united states.

The fbi could with an order with the pfizer court -- with the fisa court.

He is known to be a u.s. person.

This is an issue for china because they have their own version of the nsa and china mobile is a state-owned telecommunications provider.

What apple is essentially selling is one more device of the chinese authorities can use to keep tabs on their own population.

So anyone in any given company, ibm in beijing, if they has this, american or china national, you would suggest a security apparatus can really look right into it.

Yes.

It is running on the chinese network.

The wiretapping occurs up the network level.

It is a subject of negotiations when companies like apple going to the market.

What features do they enable or disable for governmental electronic surveillance?

Apple has not disclose that.

There's no doubt in my mind that they will be cooperating with the surveillance of the chinese want.

That matches your shirt.

I got this so that i could see it at 2:00 a.m. in a piano bar room it is great -- in a piano bar.

It is great.

You better erase that before the nsa gets to that if you travel.

We have much more coming on "bloomberg surveillance." nba commissioner david stern and the incoming commissioner -- it doesn't always have to be about [indiscernible] this is "bloomberg surveillance."

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

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