will provide customer service in the corporate arena for apple and i asked carl what apple and i.b.m. get out of this deal and what effect it will have in the corporate arena here's what he had to say. i don't think apple gets anything out of it to truth. maybe think about apple's basic business model with regards to their or their devices that are covered by this which is the i phone and the i pad mostly they're simply replacement models when there is a problem so you you send somebody on the field they give you another one or you send in your device to give you another one really isn't any onsite repair so the the concept of on site support is well limit it would be the nice word or out right fraud would be the better word here the the one thing apple does get is an army of sales people to go into corporations and try to push their products. whether or not that has any kind of relevance to their sales rate is another thing entirely i think the answer is no i.b.m. on the other hand has a problem and i think i.b.m. is really the reason that this deal got done demeaning to do with cook

his stamp on the new apple. josh lipton has more. >> reporter: there is a lot of excitement about apple's next generation of products expected to be in stores this fall. from the iphone 6 to the apple i watch, the company is poised for a big fourth quarter. >> we expect the iphone 6, 5.5 inch, we go to china a lot, that will be important in asia, as well as elsewhere in the world but especially asia and china and the i watch is a fall watch. i think those are two very exciti exciting products. >> reporter: as tim cook steps out of the shadow of steve jobs, he's making apple his own. he's been at the helm for nearly three years and insiders are putting his performance in context. the company's income statement is one way. under his watch, the annual revenue has jumped 60% and profits by 40%. apple stock since august 2011 is up about 75%, besting the s&p 500 but lagging the nasdaq. beyond basic stock performance and financial met tricks, cook is making changes at apple that is having a big impact on the company's

>> i own apple.you own it for what this quarter's about. >> right. >> i think this is the transition quarter between the legacy of jobs and now firmly control of a new ceo with a new vision. i am buying into the upgrade cycle, emerging markets, dividend increases, stock buybacks, all the stuff that i love to hear about. i think that's what i'm going to be getting. >> i would add enterprise to that. they made an announcement with ibm and this partnership will actually be very meaningful for apple over the next few years. we're seeing iphones and ipads in these fortune 500 companies, but now they'll be brought in the front door with ibm as a partner and that's a growth opportunity for apple. >> between the july report, i think the stock's gone up 18% on average. any reason to expect anything more? >> do you own shares of apple? >> maybe a few. >> there's always a big run-up after they give guidance for the june quarter. until their product announcements in the fall. there's always a lot of anticipation

is xiaomi the apple of china? make a conclusion, next on "bloomberg west." ♪ >> welcome back to a special edition of "the merck west -- bloomberg west." sent shockwaves throughout the world when they started out selling apple in china. how did they sell more smart phones than the iphone? they just took aim at apple's ipad. how similar are the two companies? can they pose a real threat to apple outside of china? stone.hnson and brad you they have an edge because they have an mascot? for $16.ell these fans ands a lot of brand loyalty in china. they sell things other than phones. >> this is a tech company with chinese characters. the says as much about apple in china as it does xiaomi. 5c is $700.seve easy for xiaomi to come in and underprice it. had its handreally behind its back in the chinese market. they have not been on china mobile until just recently. they have not had the freedom to open a business in china like they would. on a global basis, you're apple -- those numbers are not even close. >> they are openi

it's the mother load of all apple upgrades. >> when we look at the device landscape for apple right now news is so widely telegraphed at this point, could it be hurting sales this quarter? >> absolutely. you may see a positive quarter as people sit back and say this product looks like it when my hand. i really want to get something that is bigger. without a doubt, you will probably see a pause in the numbers. the plot is going to thicken from here. they do a 5.5 inch iphone going forward, it's going to put more pressure on the future of the ipad and the ipad mini. becomes tough to pocket. you will see a lot of juice around the 4.7 inch product. there will be a lot of complexity in their product line going forward in terms of how they manage the transition to the next generational ipad. the successes of apple over the last decade has been inventory management. with four or five products out there, it's hard third what are you looking for this quarter as a risk to inventory? >> i'm not expecting much change. if you think about apple, tim cook has been an operational guy. to -- they've bee

is this a new apple that is more cooperative than steve jobs? newhis is definitely a apple.uber put it well. this is tim cook's apple now. on can see the clear imprint the company already. i think this is more execution oriented about the idea of open, mores, more willing to be adaptive to the new world reality. >> is it visionary? everyone looks to apple for new, great product. >> it smart to get the biggest reseller in the world to sell your product. it would be a very big deal for these guys. it's a big deal for them to be out there hawking this deal. ibm needs this badly. ibm needs to have the best solutions available. when they were not selling ipads, i'm sure they would get them somewhere else. withas seen nine quarters no sales growth at all because they have been boosting earnings per share by buying back shares as opposed earning more money and performing better. ibm certainly needs this deal. >> what apple does that is visionary does not -- is not seen by the public. everything they do under the hood, the phones, the tablets, the devices, the material sciences corp

apple and i.b.m.ave put aside some long-standing differences to form a new partnership. we've got details about the deal about the two tech giants together. ♪ >> welcome back to the "best of bloomberg west." apple and i.b.m. have been rivals since the dawn of the personal computing era, but the two companies have put their difference as side in the interest of growing both businesses. apple and i.b.m. teaming up to developance on the iphone and ipad tailored to work with i.b.m.'s cloud services. emily and i spoke with the owner to talk about what this deal means for both companies, and we start by asking how big a deal this really is. >> first, it's how the tables have turned. i.b.m. used to be the company to accept the agenda for technology, and now apple will do that, so that is a really clear sign that we are seeing much weaker i.b.m. as a tech company. secondly, i read a lot of stories about this being a great move for apple. i think it's a defensive move by apple, because they were out of the mar

, apple may take a larger share of the high-end market.t is a threat from both ends. >> samsung has a couple of higher end devices coming out as well. i wonder, is it the right strategy, ryan? you have been doing so much work on market share. how are they looking? onese pressure from the below are taking effect. to continue to focus on maintaining a position at the high end to compete for the flagship but the market share is going to be driven by the low end. they have to focus their strategies on these areas. their marketing investment, which has taken them to the top, has been focused on the flagship . if that continues, that will help, but they have to change that has somewhat gone stale now and try to compete and differentiate. that is going to be challenging. >> is it you said that samsung is dominant but paranoid? >> there are a lot of ways to describe samsung. people talk about similarities but nokia products, is more government. country,rator, every over $10 billion in marketing and sales commissions to support that. question was a

china is a huge market for apple. how much could this hurt apple? >> there are a lot of contexts that are important. domestic competition within china from companies trying to gain share and have more backing from the chinese government -- i think this ways in, in some way. enterprise side have talked about slowing sales in china because of revelations about the nsa spying. companies like cisco, oracle, and hewlett-packard have seen slowing sales in china. this speaks to another context that is important, the context of all the people using personal information to target advertising, facebook, and others. not in china, of course. the general concern about privacy and how companies do or do not respect their privacy, and what it means for individuals as opposed to some companies. >> go ahead. >> i agree with you. especially the first point you made. there is a little bit of an agenda. china has a big bet on a number of different things. or is an opportunity to drive this agenda, which is, that is a western platform, and not necessarily getting most f

probably even more than apple.is interesting they couched it in terms of -- in the press release, they talked about the apps and the ibm technology that is going to be available on apple devices. the real benefit here will be the ability of ibm sales force to sell apple's beloved products. >> for more perspective, here is david kirkpatrick on "surveillance" this morning. >> it is like the employees over the will of the cio pulled apple into the enterprise. the cio's are saying, ok, ibm. this is the world we are in. everybody has wanted to use apple in enterprise for some time. i remember four or five years ago, i moderated a panel. a guy was telling me he had helped a major media company give ipads to its senior leadership. it was the only time as a cio that he had ever seen true enthusiasm among tech clients inside the company. when they gave them an ipad, they lit up. >> the knock against apple is that the security is not as tight as a blackberry. >> it needs to get tighter. >> china has its own agenda, but there

apple and google in your car. >> apple and google are not happy on your phone.y want to take over your car also. i was and android, simply by plugging your phone into your vehicle -- ios and android. for the most part, they are the same. your car has a display that becomes a mirror for many of the apps on your phone, things like text messaging and music services. they will now come from this, not from hard drive under the dash. right now, almost every automaker in the world has announced one of these programs, and for apple and google, moving into the car is just another way to get you to use more of their services. a do not want to lose you just because you happen to be sitting behind the steering wheel. others are happy because for more than a decade, they have been trying to cram more and more tech into their vehicles, and the feedback has been mixed. the confusion learning a new interface will soon be a thing of the past. you can also get new technology without getting an entirely new vehicle. new features will just be the matter of a download, not a trip to

apple headlines sell and apple and internet headlines go crazy. people like to run with anything apple and put it out there whether it's true or not. i'd doubt whether this is accurate. it would be shocking news. the notion that this analyst is reputable or this information is to be believed is nutty to me. we will see more like this, this guessing about things. >> when analysts come up with reports, they say they are getting information from the supply chain. what do you make of this report? does it sound like it holds water? >> there will be a lot of stuff coming out. what's interesting about the report is there is a lot of discussion around some of the advanced screen technology and making sure you have consistent rendering of colors and also something i think the world stage get used to. in the it comes out fourth quarter or the first quarter, it will be a hot product. the drug testing issue which came out in that report and a 5.5 inchropping phone and whether the screen shatters and to what degree you can come i think that's an education. tha

that strengthens apple. >> apple was cutting price.a turn in program, turn in your and i phone, get a new phone, this past quarter, and tim cook hinted how successful that was. a put to a lower cost iphone. >> does this mean the formula doesn't need to be changed for apple retail at this point? >> i think retail is strong. i'm interested in her impact on the marketing side for the company as a whole. i here she'll have more say in that, and i think that will be interesting to watch. retail is strong. opening store is like gang buster, but i think she'll have a bigger impact than just that well-oiled machine that's apple retail. >> one thing, it normally fuels the day after earnings. not always. 340e69 of the time. today is the best action for apple since april. according to this quote. thank you so much. >> good to see you. >>> when we come back, biogen, another big mover up almost 11%. an exclusive with the ceo in just a minute. thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you da

is this a new apple, a new more cooperative apple? was a time when the macintosh computer did not have the best ships in the world and they would not or could not partner with intel. they did this combination deal with ibm and motorola developing a chip called the powerpc that ran the mac for i'm going to guess about 10 years or so. long time ago. >> it was 10 or 15 years ago when they made the switch. these are people who were around when those partnerships were happening. apple know who's the biggest seller. now this two are together. gaunary johnson and alex from jmp securities. alan mulally landed a spot at google after just retiring from ford earlier this month. we will tell you about google's newest board member next. ♪ >> welcome back to "bloomberg west." i'm emily chang. google just named former ford ceo alan mulally to the board of directors. he will serve on the google audit committee. mulally retired from ford earlier this month. editor-at-large cory johnson is still with us. joining us from new york is bloomberg's matt mil

liz: you have, i believe, a license renewal coming up for apple, with apple.w does that look coming up? >> we collect on some of apple today because we have licenses with some of their suppliers. the license we have with apple covering the rest of their supply did run out. the i think the agreement with samsung is helpful in terms of moving an apple deal along -- liz: for the iphone, so i would imagine the iphone 6? >> iphone 6. typically, we license the full portfolio of product that is a company will have. liz: okay. i mentioned 2g, 3g, 4g, when's 5g coming, and what can it enable us to do with our phones? >> it's in the development stage right now, and the development is typically a worldwide research project that goes on among many companies, and i think what 5g is going to do principally is knit together all of the networks that are out there today. we have incredible plumbing out there, we've got to bring it together more intelligently, and that's one of the things 5g is going to do to actually give you access to a lot more networks, services. liz: black

is this a new apple that is more cooperative than steve jobs' apple?this is definitely a new apple. jobs, this iseve tim cook's apple. this is more execution oriented. willing to be adaptive to the new reality. is it visionary? >> it is smart to get the biggest reseller in the world selling your stuff. it would be a very big deal. ibm needs this badly. they need to have the solutions available. >> what apple does which is visionary is not seen normally. over the things they do under the hood, the phones, but tablets, the devices they make. justn't see it, we don't use it. that is the new apple. that is what we probably we have to get used to. you think about a bigger apple iphone, just a bigger iphone. what happened underneath the screen which is something that not all of the people do. >> you'll stick around with us for the next block. 's new logo.l airbnb we will be right back with more on airbnb coming up. ♪ ♪ >> welcome back to "bloomberg west." wests time now for the bew byte where we focus on one number. what do we have? like how about one? one,

whether apple was growing 30% or more modestly.ertainly agree the high end smartphone market is the mature marketplace today. most people have high end smartphones and so, and increasingly in business, many people are bringing their smartphones to work and having them supported be i their companies so is this going to dramatically increase smartphone penetration among business users? probably not. could it dramatically increase ipad penetration? i think it could. many workers do not use their ipad in a corporate setting. so if you had powerful business applications like the examples that jimmy and tim provided, there certainly could be a much more pronounced use case for ipad. ultimately, i think that's where the bigger opportunity is. >> we got to go. but i have as to ask you one last question. conspiracy theory here, you think apple comes out possibly in after hours, is this for a bad quarter? what are you expecting? >> i don't think it has anything to do with their quarter him i don't expect ibm to post a great quarter. this is

. >>> and how high do some traders see apple going? >> $10 million. >> not quite that high, but the answer could shock you. the action starts right now. >> live from the nasdaq market site, all the traders are here. stocks rebounding from yesterday's selloff, but there is one name america is watching tonight, and that's google. now commands a market cap just shy of $400 million. this could have implications or facebook, reporting next week. why? >> well, we know the story. it's been the upstart. up 150% in a year. they've been taking share against google in mobile advertising. it's a great secular story right now. google with a $400 billion market cap, facebook has $150 billion. people are looking at this market share gain continuing. >> and twitter is not doing very well. down about 8% from the beginning of the month. so, you could benefit from this sort of decline in twitter stock. >> i think that's true. probably what's most true is that google has improved itself over time. we're still looking at consistent year on year double digi

it's a trough of this apple trade, sirius logic. 80% of the revenue is coming from apple. they've lost the contract here and there. >> the paper in there, as a matter of fact, they're buying the weekly calls. if you look at apple and the front two weekly contracts right now that's where the paper was trading in those first two weekly contacts. a lot of activity a lot of short-term activity. >> we got into it, actually, i probably would have been out here. i got to say it feels like there is a gravtational pull towards that 1300 mark. i know guy talked about it to get back to the old high. i don't know if you saw the paper around it. >> they're attacking everything, they're buying the 95s to 97s, the 100s. it's absolutely bullish right now. there is not bears out there. >> guy mentioned the new product category. this is not news, what is news they hired an executive to spearhead this so all of a sudden it makes it much more buyable. >> i think they didn't have the other iphone. quietly, for china the marks i'm looking at, this is a big, big issue. the buzz on apple in china

bloomberg to meaning editor on apple -- contributing editor on apple and ibm. i want to talk about yahoo! first. is it still a train wreck? >> i don't think of it as a train wreck, but a company that is trying to find its way through transition that nobody has the formula for. i have had a number of people say that marissa mayer my number doing that great of a job, but who can do a better job? who can say this company? they are trying to become a media company. they have a new deal to do live broadcasts and concerts and they are thinking of ways to amplify their media. i think they are doing a decent job. the problem is that the traditional banner ads in the kind of ads have been diminishing in importance. >> who is the david kirkpatrick merger that is the best outcome? >> who should buy them? >> or who should they buy? >> i don't think aol. if that is part of what you are asking. -1 plus -1 equals -2. i can't think of one. >> that is the headline. >> that is the headline. especially on the heels of the apple-ibm partnership. you wonder if there are other unlik

for a short period of time at apple. but it's a very short time. what was that experience like? >> a great experience. i had been here's at ibm, a great career there and changing over to am, working on a set of products that were game changing in the industry, had the opportunity to turn the product line, you know, completely, all new industrial design, all new electronics, ipod, iphone, a great experience and i tell you, it's what i love to do, working on innovations, working with great people and so, it was a real eye opener. >> so i know some of these guys out there are a little wonky. i'm going to ask this question. having worked at ibm and having worked at amd and apple, do you believe hardware and software should be tightly coupled? >> a good question. it's a always a good question. >> jobs is always hardware/software, complete experience. >> what is papermaster? >> they do have to work in conjunction, generally, have challenging products putting together, have them organized, separate teams and need to get them wo

apple manufactures in china. if i were tim cook i would accelerate the return of manufacturing to the united states. china will try to keep them out of the market. >> last point to you. apple users versus android users. is it a common theme that apple users spend money whereas android users do not? >> that is what we are seeing. there was an interesting thing in the eu where google could not call apps free anymore or nobody can. in-app purchases cannot be free. it is what they do and they do not just spend money on the apps, they spend on the ecosystem. it is all right there. >> ecosystem, apple. how much is it worth to them to maintain that close system? >> they want to control the experience and keep the customer and we had ryan marshall who is a good analyst on wall street. a good analyst who does good work and brian was telling us the story of how he was standing in line ready to switch to a samsung galaxy and he thought my photos are on here, my apps are here. he stuck with what he has got. you can see that

but it speaks to how big apple is.nd what it could mean is the holdout of blackberry users that refuse to embrace any kind of apple product. the notion that ibm and apple compete is a 30-year-old notion that does signify something different than the last boundaries of apple's reach have fallen. >> the shift to mobile computing has created a whole new class of leaders. those companies that are looking toward becoming the people that set the agenda for enterprise computing, you see, dell, hp. these are the companies that have fallen behind and started on the wing, so to speak. i think this is a positive for apple. let's face it, i that is the better tablet in the market. >> the new surface device is an impressive device that does a lot of things that a laptop could do in the past. >> i'm impressed by tim cook's ability to strike up vital partnerships and do out-of-the-box things to make sure the revenue stream keeps growing and i think it is very easy to forget that this is a company that is trying to become big. >> appl

we begin with all things apple.-new data on what consumers expect from the rumored iphone 6 this fall. plus a major security hole in some 600 million apple products as the company

if samsung is selling more, apple is selling more. ultimately if apple does not come out with a 5.5-inch fablet, you're going to have just the 4.7-inch phone. that i don't think is enough. i think it will be good. >> that cites an analyst -- everyone always says influential analyst, jon. how good of a track record do these analysts have? >> it's terrible. >> is it really? >> it's really not clear that 4.7 won't do the trick. compared to what we've had thus far, 4.7 is a giant. >> apple insight is pretty good. 4.7 inches, the regular galaxy phone is already 5.1 inches. so you're a little smaller already. it's a question whether it's going to be a one, two punch with both sizes or a one, two punch with a delay to get the larger one out. >> this might be muhammad ali. you might not need two punches. one might do the trick especially considering samsung has been outspending apple in marketing for years. the fact they have to spend even more in this season when apple has been relatively strong especial reply after the china mobile launch d

still as profitable as apple.ot as big which is so funny for me because i've been covering these for 20 years and microsoft is much smaller than apple and i still have trouble getting used to that. >> are they to slim or flexible? >> a huge job cut. 18,000 people there cutting, which they have to. that, about 80,000 of those. those are the things the new leader has to do to lean up and get them pivoted for growth. >> we have to leave it there. clearly the conversation during the break will be huge. we will be back in two minutes. ♪ >> i am alix steel in for betty liu. here is a look at our bloomberg top headlines at this hour. the final journey today for the victims of the malaysian airline tragedy. they real change coming today. pricex dollar per share will and for many investors and the goal is to prevent panicky selloffs. a loss u.s. patent protection for its best-selling product. 26 minutes past the., bloomberg television is on the market. you are looking at futures trying to inch their way higher here. over $

>> apple is amazing. if apple does not come out with the next big thing it will be in trouble. i give them another year of beautiful growth and amazing success. unless they come up with the next trick they will get eaten away by the lower end of the market. $50can buy smartphones in -- for $50. the poor are going to android. microsoft is squeezed out. now you have the two ends winning. >> go-ahead. >> the average selling price of an ad -- iphone was 500 51 dollars. that is the lowest asp apple has had with the iphone. there is a blended revenue. it is lower than ever. we will see what happens with the next device. like.sps are they are abutting the price slide little bit and i think they recognize they would rather it 30% marketl share and seven percent of the profits. the android with seven percent -- 7% market share. attention to the ipad in the ipad mini. >> apple released the ipad and ipad mini almost a year ago. we will see updates to that coming out. -- ipad units were down year-over-year but are we going to see that increase, maybe as the ad touch id to it and that becom

assuming that apple gets it right.ll be the ones that get it right as they've done in other categories, where they've entered after somebody else has already done it? >> yeah, if the iwatch is what we all imagine it to be, which is essentially a companion and accessory to your iphone, the numbers you will talk about is $8 to $10 billion. it's good. it doesn't change the story. now, the watch could be something that works independent of the iphone ecosystem. that product could be a much better 8 to 10 billion ref few stream. is it a stand alone or accessory? >> it's a stand alone, that would imply cannibalization. >> professionally, yes is there that will be a problem. you gain on the iphone sales but lose on the iphone sales. >> yeah, again, the product is not out. so it's tour to imagine what this is going to be. listen, if it's on as separational brand. you could have a whole new bunch of examiners that would like to buy an apple product but couldn't afford an iphone. >> it's not a stand alone. . >> why? >> because t

what will these two apple fanatics do now?o knew tim cook was a fan, but then again, who isn't. all right, before we answer that, how much money was made? mike bought calls 4.50, now you can buy them for 5, and that's a return of 18%. how are you planning to make even more cash? >> so, you know, this is an interesting situation. we didn't buy the calls hoping to make 18%. we hoped to make more than that because it's giving us a leveraged upside bet in apple, exactly what i think we want going into earnings, and the good news here is because we bought the october options rather than one near data, we will not deal with the accelerated decay in options you often get after earnings are announced. my inclination is i look closely because if the stock was higher it makes sense to roll to the out of the money strike. i don't think we're there yet, a couple dollars away. i'll stay in this thing right now. >> carter, what do you see in the charts? >> sure. there's nothing wrong with the chart, acting well, and it's the same principles

or a list goods producers like apple well apple is feeling guilty because they have billions of dollars offshore that they refused to bring onshore on to america because they'd have to pay the taxes so apple's a tax scofflaw off their attacks avoider they feel bad about that they feel bad about the suicide deaths around the factories or in china where kids routinely commit suicide to avoid the slave labor conditions to build apple products so apple is trying to figure out how can we make it look like we're doing something good without actually spending a penny well i know will reclassify all these jobs as manufacturing jobs this will satisfy the government and any law maker trying to come down on us for being a merciless labor accounting fraud perpetrator of course of the work because they're accountants of the same account. that accounts for them for a lot of the u.s. government now i think it also could be signs of america wanting to come to terms with having an empire again they don't like to publicly admit it but they do have an empire and here they're like well china is part of our

currently apple's exports of parts to china counts as the only u.s. export in the scenario but the e.c. p.c. proposal according to officials of the c.p.c. member agencies what does that count china's export of the fully assembled i phones to the e.u. less the cost of any import of parts as u.s. manufactured goods exports so china sends to the e.u. i phones and we would count that in america has manufacturing in exports so if the p.c. is really smart sonic b.c.p. . easy p.c. storing p.c. pete they need to get off the p.c.p. and start to look at the economic rail to be good not open them so actually europe is not part of the u.s. a court of the game so by simply shuttling from let's say los angeles to obama or paris. that's just an extension of the american trade zone that's part of the manufacturing base in america a court is a new version yet it's kind of like that whole enron model where you know before enron people come to the stacks they have to find in send and ship oil and deliver energy but then they just turned into a derivative and said we'll

apple did help. josh lipton has the breakdown. >> apple stock has been up 25% since last reported earnings in april. today, apple giving the q3 results, delivering eps of 128 on 37.4 billion. the street was looking for 123 on 38 billion. that eps growth rate, by the way, up 20% year over year. the strongest in about two years. i did have the chance to sit down and speak to apple ceo tim cook about these results. cook telling me he couldn't be happier, this is the best execution in any quarter since he's been at apple. apple sold 35.2 million iphones in the quarter, but one slightly ahead of the estimate buy we're seeing. cook telling me it was strong in the bric country, iphone in china up about 48%. in the developed market, cook telling me he was chalking it up to consumers putting off an iphone purchase because they're expecting a new device to hit the market in the fall. ipad, 13.3 million units. that is slightly less than what the street was looking for. analysts are looking for about 14.2 millio

and then about you say why apple?us together, this is about something that on a global scale we can do together to remake how work is really done inside of an industry. >> and ginny, you know, obviously, ibm going through its own transition that's comes km with its own set of challenges. how do you think of this partnership in terms of ibm's overall strategy? >> it's clear and we both agree, the industry is reordering itself. it's reordering itself around the trends of big data analyt s analytics, around cloud, around engagement, which is mobility, but underpinned with security. and this goes right at the convergence of all of those trends. and so, it's a bold move that just further accelerates our growth initiatives as i know for tim accelerates his. >> and ginny, could you give us -- is there an example of an industry, and maybe an industry that would benefit in an app that you would think of? >> our teams together, and tim and i have talked about this, have seen some of the prototype work and have done a great job.

not to the apples.e a look. they got -- you won't like what you see. quaker, for instance, three in the previous versus quaker now flat. the problem with doing all that is you're just splitting hairs. you need a growth stock in the group? all right. >> that's the name you step on. >> i do that too, david, don't you? get the previous quarters release and compare side by side. >> i do do that with the financials, sometimes. goldman, you need that, but never know with pepsi. he does it with every single one. >> i'm insecure. >> that makes up an app entire conference call. >> it's helpful when you don't sleep, and i need sleep. it's not good. it's not good to me. people like you inhabit the world. >> i wake up hungry, i go to bed hungry, i think i should eat something. >> facebook coming out after the close, and cramer and the pizza chachb ceo, patty doyle, last night on "mad money." >> seems to me the dollar in facebook gives you more bang for the buck than whatever you do with twitter. >> has been a littl

we see apple teaming up with abm. apple does not use intel chips in its mobile devices.ill not get the benefit, if that works out. intel has to figure how to organize its ecosystem to get an answer to things like that, and we'll see in 2015 whether it can do that. >> and whether or not they can do it before this refresh window on pcs closes. >> yes. the question, it probably has the rest of the year left to it. that's it. look at numbers. pc client group one up 6.2%. data center group up 19%. and then internet of things up 24%. down to jon's point, mobile and communications group. down 82% off a small base that is. getting all of the growth in people that need new computers, because of an upgrade cycle. a one-time type thing and the guidance the rest of the year is flat. basically that's the story. >> not necessarily one time. a lot of people don't realize, for the past year and a half, intel worked hard behind the scenes, the way it never had before, to get the price of touch technology down. for the oem. they really pushed to create this environment we have now. cheape