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more at a d R dot org. Now let's head over to the First Word breaking news desk for today's afternoon call. And here he is, Bill Maloney. Good afternoon, Charlie. US stocks are down, but half paired some of their losses. DALL is currently lower by fifty six points as to be dropped seven and NAZAC falls forty six at one point, the Dallas down a hundred and thirty points. The SP five cash failed at the fifty d movie average for a fourth day, while w t I Crew gains four percent.
It bounced from the fifty day the small cap six hundred. It's little change in the US ten yield at one point six one six out of tennis to be sectors are lower, led by lasses in healthcare, technology and staples, Energy and telecom lad down. Transports rose fifty one as a biotechas fall, and the vix is down one point three percent mark. Apple and Visa led to the downside,
while Caterpillar, DuPont and Chevron lead in the Dow. Live from the first breaking news deskm Bill Maloney, Charlie all right, thank you, Bill, and to hear live breaking news over her Bloomberg type squawk A sq you a w K on your terminal. I'm Charlie, Pa. That's a Bloomberg business flash. You're listening to taking stock with pim Box and Kathleen
Hayes on Bloomberg Radio. Another potential setback for Apple, it was found today that Apple violated the design patents of a Chinese device maker and may have to halt sales of its latest iPhones in they Jing. Uh So. This also comes on the heels of a Apple Worldwide Developers conference that many people thought you did some some new developments, but nothing really earth shattering. Of course, that's what everyone is looking for the next big thing from Apple. Colin
Gillis joins US now. He's director of Research and senior technology analysts at v g C Partners based right here in New York City. Welcome Colin Illo, Kathleen, So, tell us more about this decision on Apple and patents and how important is it? All right, So let's let's break it down into into two pieces. The first one is the specific case of the iPhone six um, yeah, being uh possibly banned for sales and in Beijing, right because
of pan infringements. That's likely something that will be overturned, uh when it climbs up hiring the courts. But it shows you the problem that Apple faces doing business and in the market that it's it's the second largest market for Apple, right. So the first market is the United States. The second largest market for Apple's China. And this is a market that you're seeing revenue growth declining on a
year of year basis two quarters in a row. And this is a risk, right, It's such an important area for sales for the company. They've got you know, they're opening up five more stores. You have forties stores total. And there's always the risk that the government can change the rules of the playing field, all right, So if the government changes the rules of the playing field, should that change someone's bullish call on Apple or should it change their bearish call on Apple. Well, I think it's
obviously a big negative if that were to happen. And I think the risks in the market um for Apple are are high. Right, They're higher risk selling into the Chinese market then than in the United States. And that's just you know that, that's a fact. Right. So their dependency on China for for growth and their dependency on China for for revenue is something that if you're an Apple investor, you have to be concerned about. Colin you know that show. What was your takeaway from the Apple
Worldwide Developers Conference? Yeah, very um evolutionary in incremental, right, And Apple's got a problem and that they mad smashing success, right, but driving literally billions of dollars of profits from their iPhone the revenue and they're gonna have a difficult time coming up. Would additional revenue streams to augment that when the smartphone market growth slows down, which is what's happening, right, It didn't look out when we were talking about China.
The domestic competitors to Apple faces or companies like chow Mean Walwei, there sps or you know, right, Whawa apples average selling price. So as prices come down, right, Apple, to maintain their margin structure, has been losing market share, and you know that's why we've seen them rolling out their most recent phone price that you know, four hund dollars, trying to just to maintain a level of competition at different price points. But it's you know, the landscape is changing,
all right, landscape is changing. Column. But let's say you're using your smartphone to order groceries these days, You've got another competitor that you need to pay attention to, and that is Amazon dot Com. Turn your attention to the grocery store battle, and particularly Amazon's entry with the Prime Now service and the battle against such stalwart retailers as Kroger. All right, yeah, yeah, yeah, you had another business with a one percent margin for Amazon to just jump into.
But you know, the reality is is that groceries is a massive market, right, you know, something you know, six hundred seven billion dollars. So even though the margins are very, very slim, right, it's a volume business and that's what Amazon likes, and it's one of the few verticals that they, you know, don't have a lot of traction in now. Groceries are also have their own particular nuances. You need to have refrigerated trucks, you have to have, uh, you know,
warehouses that are close to to the city. Um, it's the major metropol in the areas, you know. But you can see one day, I'm you know, Alexa, you know I need milk, and bring me milk. I don't know, I I don't Maybe I'm just so nitpicky about food and things and I like to look at us. I don't know, but I have ordered from Jet a couple of times. Is Jetta threat to Amazon in any way, shape or form um? You know, there are multiple companies that you know, have come out and I don't view them,
you know, as a as a meaningful material threat. Uh. But but the grocery space is going to be interesting, right, Like I'm an active user of Fresh Tract and once you get you know, used to ordering your groceries online, it becomes But how do you know you're gonna get the best tomato or the avocado with the right right, miss Colin? So you just have to trust that they're gonna take care of Okay, will you always take care of us? Colin Gillis. Thank you so very much. Colin Gillis.
He is an analyst at a b C b g C Partners, Director of Research and senior technology Analysts. You're listening to Taking Stock on Bloomberg Radio. Coming up, we are going to be taking a look at luxury. It's a beautiful afternoon in New York. Would you like to write on a yacht? Maybe we can rent one. This is Bloomberg Radio.