ANCHOR (OFF-CAMERA) ENGLISH SAYING:

Let's talk about the competition because in those two years since they've really had a retail head, competitors like Samsung have really, really made great strides against Apple. What kind of threat is she to Samsung?

SCOTT KESSLER, ANALYST, S&P CAPITAL IQ, (ENGLISH) SAYING:

Well, what's interesting, I think, about Samsung to some extent is over the last two years, how has the company change? Well, one of the most obvious things that we think about is the fact that they've been spending a lot more aggressively on sales and marketing and have looked to establish a retail presence, right? They have an alliance now with Best Buy, so we've been seeing Samsung store-within-a-store kind of offerings. And I mean, Samsung was advertising during the Super Bowl at the beginning of the year. So Samsung has not only upped its game in terms of its product offerings that compete directly with Apple's iPhone and iPad but also in terms of better establishing and communicating about its worldwide presence. So we think a new hire responsible for the retail and online stores is really going to help Apple kind of recapture some of its maybe past glory in that context.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

Will she be able to change the dialogue to some degree away from the whole product versus product - you know, we're talking about a watch and this one's got that - to one about branding and the aesthetic and luxury and getting consumers to feel good about paying more for a brand like Apple?

SCOTT KESSLER, ANALYST, S&P CAPITAL IQ, (ENGLISH) SAYING:

Yeah. I think that's a great way to ask the question because I do think that one of the reasons why we're seeing this kind of hire is because if you think about what Burberry has done since 2006, when Angela Ahrendts was appointed CEO, you know, we've seen a focus on retail, we've seen a focus on direct selling, we've seen a focus on making the brand kind of more special and differentiated. And I think those are things that Apple can definitely kind of benefit from, those types of strategies, those types of efforts. So I do think that this really signals the fact that - notwithstanding all the clamoring for Apple to do more to become more of a mass market brand with mass market products - this, we think, is a strong signal that Apple is just fine where it is which is the high-end consumer market.