and we have brian marshall. a key thing that analysts will be listening for, china. you mentioned it, emerging markets. hardware, down by 40% last kwoo quarter. on the back of the third-quarter earnings, seeing a decline tonight. >> at some level, it is ibm. the valuation is really getting cheap. there's a lot of cash flow there. it's worth looking at. i don't feel like you have to run out right now and buy it. at some point, i think it's worth looking at. >> where do you -- i don't trade this way. where do you look at ibm and look at it as a value trap versus saying it's cheap? >> sub 10. >> that's a good question. where do you come up with that number? sub 10 times p.e., that's way cheap. you're asking for these guys to be trading 20% cheap from where they were a couple weeks ago. >> but that's kind of in the neighborhood of where it is. it's a madeup number. >> cheap enough to buy. at that point, it's absurdly cheap. >> let's check in with josh lipton, who has been on the ibm call, joining us with the latest. >> the ibm conference call going on right now. the comp

. >> let's bring in brian marshall. he's got a strong buy rating on the stock. happy new year to you. >> you as well. what do you think is valued in the stock and what could provide the upside? >> it's going to be a big deal. for a long time, apple has been decelerating. we're going to grow faster on the top line versus what we did in 2013. and importantly, eps declined this year. we're actually going to grow above double digits on the bottom line. so the growth is slowly starting to come back. you know, we mentioned china mobile. that's not in my numbers. that's a big opportunity. it could be more than the low single digits. i think that's a big deal. >> what do you make of the argument that the power is going to rest with the carriers this year? for the first time in a while and apple's not going to be as profitable on iphone 6 and whatever is to come as a result of new deals like that? >> there is no question that that's going to happen. apple is almost going to ship 200 million units next year. that's all at the high end. so there is so much more at the low

brian marshall is an analyst with isi, strong buy with apple.io for capital advisers. good morning to all of you. >> good morning. >> a lot of analysts beginning to turn their back on them. oppenheimer, why keep the buy or the strong buy? >> well, carl, i think at the end of the day the valuations pretty attractive. they have about a third of their market cap in net cash and we're in front of what we refer to as the mother lode of all apple upgrade cycles. the upgrade to the iphone 56, the larger irkiphone. $500 is not the time to throw in the towel. >> why is this the mother lode? >> because if you look at it, you know, most of the smartphone subscribers of the iphone are basically upgrading every two years. so last year we estimate that the iphone 5 shipped about 40 million subs. all of those guys are probably going to be willing to upgrade to the iphone 56. we think the demand for the iphone 6 is going to be tremendous when that comes six, nine months down the road. >> bryan and channing, let me direct this toward channing. i'd want you to ta