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00:00INSIGHTS CHIEF STRATEGY OFFICER AND HEAD OF TECHNOLOGY. GET US UP TO SPEED. DAN: BACK IS DEFINITELY AGAINST THE WALL IN TERMS OF THE IPHONE X. IT KIND OF MISS THE HOLIDAY SEASON. THE BIG THING IS ABOUT THE CASH. YOU WANT TO SEE SOME TEASE ABOUT THE CASH STRATEGY. WE WILL CALL IT $150 BILLION IN TERMS OF DIVIDEND BY BACK POTENTIAL MNA. I THINK THE REST OF THE TECH MARKET IS LOOKING AT THIS AS THE FIRST STEP IN WHAT COULD BE A RECOVERY IN SHARES. JONATHAN: WE HAD A NICE DOCUMENT WHICH HAD A TR TYPE FEEL -- PR TYPE FEEL. WHAT IS YOUR BASE CASE ABOUT WITH HIS CASH GOES? DAN: ULTIMATELY, YOU HAVE PROBABLY ABOUT $300 BILLION BY BACK. A SPECIAL CASH DIVIDEND THAT IS SUMMER BETWEEN $10 BILLION IN $15 BILLION. JONATHAN: ALL ON TOP OF EXISTING PLANTS? DAN: YEAH. THIS WOULD PROBABLY BE A $300 BILLION, THREE-YEAR BY BACK. A ONE YEAR CASH DIVIDEND. THE QUESTION IS M & A. THIS IS A COMPANY THAT TYPICALLY SHIES AWAY FROM BIG MNA. DOES IT TAKE ITS HAND IN TERMS OF PRODUCT STRATEGY, CASH? IT IS MORE STRATEGICALLY THE DIRECTION IT IS GOING. JONATHAN: THERE IS AN ARGUMENT COMING FROM A LOT OF PEOPLE THAT THEY HAVE ALREADY BORROWED THE MONEY AND SPEND IT. IF THEY WANTED A BIG ACQUISITION, THEY HAVE DONE -- THE COULD OF DONE IT WITH THE MONEY THE ALREADY BORROWED. AND THEY HAVE ALREADY. THE BUYBACK PROGRAM. IS THERE A CHANCE THAT THIS IS A BIG DISAPPOINTMENT, THAT THE MONEY JUST GETS USED TO PAY DOWN THE DEBT, THE MONEY ARTERIES THAT? DAN: YOU HAVE TO REMEMBER HOW MUCH CASH WE ARE GENERATING A YEAR. I THINK HANG BACK DEBT IS PART OF IT, BUT WE DO EXPECT A SIGNIFICANT INCREASE IN THE BUYBACK. A LOT OF THIS IS THE DRUM ROLL INTO APRIL. THINK ABOUT THE APRIL TIME FRAME. WITH MARCH QUARTER RESULTS. THAT IS THE FOCUS. APPLE DEFINITELY, IN SOME WAYS, HAS SUCCESS IN THE IPHONE, BUT YOU LOOK AT THE 350 MILLION IPHONES UP FOR UPGRADE NOW -- THAT IS WHAT TO CAPTURE. JONATHAN: I WONDER IF WE HAVE FORGOTTEN ALL ABOUT THE TAX

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