00:00 Speaker a
The Nasdaq 100 officially eliminates annual losses, and large technology stocks are leading the market earnings today. After a deal between the United States and China, the huge seven people added more than $800 billion in market value to temporarily reduce tariffs. Join us now with more people, Dan Ives, Head of Global Technology Research at Wedbush Securities. Dan, have you as always. I know you said this kind of truce is the best situation. In this case, which technical stock is the biggest winner?
00:29 Dan Ives
I think it's Apple and Nvidia. I mean, if you look at it, it's a black cloud, right? I mean, the supply chain heart and lungs are in China. And, while you can talk about moving to India and others, it’s a great relief. And, I think that changes our point of view, you know, the new highs in technology, the new market highs, now on the desktop after we just saw it as a dream scenario.
01:08 Speaker a
OK Dan, let's talk about Apple. I know if you bring production back to the US you'd call a $3,500 iPhone. What are your requirements for the price of your iPhone today?
01:21 Dan Ives
Look, it depends. I mean, they will have to work hard not to raise the price. If you actually, they won't get exemptions and you actually retain some kind of tariff on China. Look, it all depends on the reality that it is necessary to make iPhones in China. Some can be made in India. They can never really be made in the US because if you want them to be made in the US, then the price will basically be a massive demand disruption on the first day. Even 10% of 10% construction in the United States will take four to five years. So that's why our last one called Six Weeks is, let's talk about reality and fairy tales. The reality is that iPhones will continue to be built in China, some of them in India.
02:51 Speaker a
How do you perceive the reality and negotiation of reality and negotiation when it is not necessary to clarify the goals of these tariffs?
03:08 Dan Ives
Look, I think in the end, they're all playing poker. Especially when we look at their hands, this is not a good hand, right? And I think they have to stay away from the cliff when we see the delay. Obviously, when it comes to China, the price is not concerned because the goods data are not there. Whatever the CEO says publicly, behind closed doors, they tell the White House what it is, you need to change, you need to move. So our point is that even if 30% is involved, I mean, this is probably a high standard. It is called the countdown of 15%, 20%. Once you work for WTO IP, all other issues must be done next year. But when it comes to AI revolution, you don't want to decouple. And I think this is a potential black swan moment, self-created and no longer exists.
04:42 Speaker a
I think Dan has a problem with Lou Basanez.
04:46 Lou Basanez
So, Dan, I just want to talk to you more about Apple. I think in the early stages of the show, I said, at this time of year, everyone is a little negative about Apple. How worried are you about price sensitivity, right? I mean, consumers are very loyal to Apple, there are 2.5 billion devices there. You get a lot of subsidies. Is the iPhone price a little higher than expected? I mean, do you really think this will affect demand?
05:17 Dan Ives
Yes, no, that's a good question. Look, I mean, the last thing Apple wants to do is raise the price. They basically kept the price. The reason is that you called 300 million iPhones that have not been upgraded in four years. So if, even 3%, 4%, 5%, due to the increase of $100, or only $150, it could be a year delay. That's not what Apple wants, but their supply chain. But when it comes to WWDC and iPhone 17, it's obviously AI, and I mean, this is a big time when they actually saw high unit numbers, double numbers growth over the past few years, which is obviously a runaway in Apple's story.
06:39 Lou Basanez
Dan, follow up quickly. Earlier in the show, I said Mag 7 was a boy band like Nsync. Who will be yours? I love nsync. I love nsync. Yes, look, though who will be your Justin Timberlake? You say Apple and Nvidia. If you have to choose the best breakthrough for investors now, which one are you most optimistic about after these trade armistices?
07:15 Dan Ives
If there is a, if there is a part of Timberlake of Nsync's outbreak, it must be Nvidia. I mean, look, Jensen, we, if he needed to be a boy band, we would see what would happen to the black leather jacket. But, I think the reality is, I think it makes all the new and new historical climaxes because there is only one ship in the world that fuels the AI revolution and is led by Jensen Nvidia, the godfather of AI.
