alix: we are back for a special live edition covering all the earnings out after the bell. joe: apple is the big one to watch, but the question is, what did you miss? apple stock down nearly 7% in after-hours trading after that earnings are -- pretty ugly after-hours and a lots of tech earnings, not so good. alix: it was really about those

iphone sales missing estimates -- it was still a lot of phones, 47.5 million phones, but has demand peak or is it too tough going forward? joe: apple has had a few dives in the past. it is all about the iphone sales number, and this time it came up short. alix: microsoft saw its largest quarterly net loss as of the $7.5 billion write-down from know kia. but that was ugly as well. joe: that was a total disaster. ago that that long they didn't it and now they just say it was a blunder. alix: and yahoo! sales low , aimates, so quite frankly pretty ugly day across the board in after-hours tech, and the call is going on for all of these companies as we speak. joe: that's why i'm excited we are here talking about these ugly numbers. alix: i'm looking at apple toss

after hours loss. what you see here is a decline at its trough, about 10%. to about 66 billion dollars at that low. to put that in perspective, that's the market cap of a company like priceline or costco or metlife. marketly a cosco size cap was wiped out after this report came in. the apple's huge chunk of overall market and this is something to watch for tomorrow. i'm looking at nasdaq futures after-hours. applethat microsoft and and yahoo! report, a sharp leg down in futures after-hours. already looking at a 1.2 percent or 1.8% decline. barring something else happening before the bell, it's not going to be a pretty day. i want to bring in our

bloomberg west anger, emily chang. and the founder of "the facebook thank you all for staying with us for the deep dive into apple. you were significantly more bullish before the numbers came out. what was your read? guest: boy was i proven wrong. this is me eating crow. iphone sales were weak and the question remains who is getting iphone fatigue? where is it showing up geographically? china, we talked to the cfo after the numbers came out and he remains up the on china. they doubled sales in china over this quarter. cap store sales are going gangbusters. -- app store sales are going gangbusters. it is interesting when you listen to these words from tim cook -- stellar and we are

thrilled and he puts -- and he's throwing up the statistics where they see two times the market that is shrinking, sales grew 35% year-over-year, which is three times the market worldwide. so you have to put it in perspective. it is a slight miss but apple is still selling more phones than almost anyone. i saw the quote from tim cook, justifying the comments and the stock tumbling after hours. it is an incredible growth company. guest: i think it is a buying opportunity. people leading up to these earnings say that apple has never been a better position. i don't think that has changed. lips here and there, hard to explain in the half hour after we have had the numbers, but this is a fantastically well positioned company. joe: are you saying you can't immediately analyze everything in minutes? guest: i'm an industry person, i

can't say. --x: more headlines crossing they say the iphone six plus is the number one bottle in china. made the point earlier in the note saying the huge calms we have seen an iphone sales have it because of the larger screen adoption. without that, where will the growth come from? we are going to get another iphone the sure, but is not going to be the radical jump. we have rogan some news on that, so it's going to have some new, fun features but not quite as with, bank as the larger iphone. so the comparisons next quarter could be really rough. i just spoke to a top executive at xiaomi and talk to know about cell phone situation smartphone saturation. the replacement market is

accelerating. more people in china are upgrading their phones more quickly if he thinks that is canceling these other trends out. did not break out watch sales in the release but they gave some hint to it. what do we know now? more optimistic or less optimistic? guest: very of need, but until we see the numbers, it's like amazon. alix: they sort of have numbers. they say they sold more apple watches the first nine weeks than they did the ipad and they sold 3 million ipads in about 12 weeks. so you can kind of -- emily: some said 3 million and some said 3.4 million. the cfo said they sold more watches and they sold iphones initially. so we are seeing a couple of different metrics by which they are saying this product is more popular than are other popular products. think the watch

has any near-term potential to be comparable to the phone. it is not a mass user product in the foreseeable future. one of the reasons is clear -- somebody was saying that the iphone is an easy thing to spend a lot of money on because it replaces 17 other things you had to have before. the watch doesn't really replace anything you are currently using. it sort of an add-on and you have to use it with an iphone, so it is an incremental expense that i don't think hundreds of millions of people are going to make. joe: we are talking about the last big advance just is expanding the screen and the watch is not moving the needle. you say your optimistic on apple, what's to get excited about? guest: i'm talking short-term. long-term, apple has a hard time sustaining its extraordinary dominance intact. it is a hit-driven business,

hardware, logistics. on the other hand, no company has ever managed logistics better. no company has ever had a scale like this to attempt to manage. so they are very -- they are a remarkably well-managed come any and had a high bar to keep doing what they are doing. wear my apple watch every day -- he says based on their own research -- joe: i haven't met any of those people. emily: i have met a few people who say i like it, i don't love it. i do like this, and that is really important. it is going to improve over time and become more and more part of our everyday life and they will make it easier for us to monitor ourselves, monitor our health, all of that stuff that will be increasingly important. tim cook was talking about the implications for health monitoring of the watch.

i think you'll see future iterations become more user-friendly, but i don't disagree it's going to be a big game changer. emily: he also gave a shout out to twitter, saying that one of the most popular third-party apps. facebook is not on there. to all of your points in terms of growth, fdr was saying apple's make up 8% of revenue by 2017. does that seem good to you? guest: it's still a lot of money. some point, the watch will replace the phone. it's maybe three or four years out. these things we carry around and stare at as we walked down the street are very unwieldy. it's a stupid idea we have to look at a rectangle of glass everywhere we go. that is something that will go

out and be replaced by a more convenient form. joe: that is the google argument. don't look down. it makes us look silly. so we are going to wear this technology. i would like to see where apple is going to go. if the story changes and they don't have another huge product coming, army going to see another round of act of his him targeting that huge cash pile, demanding share buybacks and increased dividend? guest: don't underestimate the willingness of activists to get into these big companies. they can do it. carl icahn made a difference. they have been shareholder friendly. if you are a shareholder in apple over the last several years, you are sitting pretty. there's not a lot to complain about. can we talk about the car

for just a second and a higher an executive from chrysler and hire a self driving car researcher and they get this name, titan. guest: i thought it was interesting that they hired them in europe so they could do their card of element outside the u.s. with this money they don't want to bring back. the car is a huge opportunity, but as someone said on the earlier, the idea that it could be a partnership with another carmaker is a possibility, there's going to be a lot of variations they will have to experiment with. alix: but the car is a later stage project. let's talk about what's going to happen tomorrow. --ust report of the stock $66 million in market cap was lost. apple had been lagging the nasdaq in the recent rally. what are we waking up to? it is going to be ugly. tomorrow is not going to be a pretty day in the nasdaq.

emily: the on google. -- the un google. apple wasn't the only tech giant to report after the closing bell. microsoft reported its largest ever quarterly net loss. we will give you the reason that. -- give you the reason next. ♪

alix: i'm alix steel. joe: i'm joe weisenthal. shares are lower in the after-hours, the company reporting its largest ever quarterly net loss. it amounted to more than $3 billion, shares falling 5%.

joe: above that, microsoft was hurt by a 7.5 legal right down after the purchase of note you 's handset unit. also joining us is emily chang. the big surprise this time was stronger sales in the computing and gaming area. numbers saw some strong coming out of surface. other than that, everything else was in line with everything they expected. pc sales were week, cloud sales were good. i would say a mixed bag at this point. alix: when you talk about gaming , i don't consider microsoft a gaming company anymore. is this what they want to see from their results? the xbox has been doing

well for the last several quarters. it has been discussed a lot but i believe they want a device down in the living room. windows works and it's adopted by different devices, let it be sensors or the internet of things. toneed a device that is able connect and i think xbox can do that. the big thing is whether the satya nadella is getvering on the promise to the company into a cloud company. windows 10, there's a big launch coming out and historically, these launches have been huge, but it doesn't seem like it's going to get big of a deal.

alix: i'm looking at headlines from the call and it saying windows 10 will return windows to growth. typically, the rhetoric and the optimism there is something the company wants to put forward. what are the numbers we should be looking for in that windows number? guest: i think it is more than sales this time. it's a free upgrade, you are not going to get tens of revenue. they want a billion devices on windows 10. and we done some work think they can achieve those numbers. why is that important? the number one reason is you want developers developing apps on a common plot. you have windows staggered across the board. the developers have 70 different versions that they can find a unified version they want to target. this is written with keeping in mind the touch tablet and the phone in mind. this is extremely important to

have a very large ecosystem as we go forward. alix: the unearned revenue, which is like you're prepaying for something that you're not going to make it until later -- that fell short. what did that say to you about this future of growth in the company? emily: i think a big question looming over microsoft is phones. nowhere when it comes to phones and this big write-down of note yeah -- of don't have aust mobile strategy and i wonder if that doesn't matter? is this company going to look completely different in five years? guest: this is something we discussed when this acquisition was announced. for a lot of us, the question was -- hardware has very little margins. you can give them the best software possible. let someone else developed the hardware. and only asked the question

is such an adult living up to the promise. what's the answer? he's being very aggressive. i've never seen anyone write down this much -- joe: that is a decisive move. have beenlysts i talking to love him and have confidence he's able to make the hard choices. guest: i completely agree. i have had this feedback from a couple of ceos who have said for the 10 years of our existence, the last six months, they have been with us all the time. alix: thank you so much. our special thanks to emily chang and our guest. at: apples shares slump as -- as revenue misses estimates. what will that mean for the s&p 500? apple is holding its conference call right now.

here is tim cook speaking about iphone growth. iphoneat's going on with , the growth is almost three times the market and if you look regionala narrower level, western europe grew four times market. japan, over five times market. we doubled in korea versus a market that is shrinking. ♪

alix: joe: i'm alix steel. i'm joe weisenthal. what did you miss joe:? alix: more than a thousand workers in new york city airports say they will walk off the job starting tomorrow night. they voted unanimously to authorize a strike at jfk and laguardia airports.

the union represents security officers, baggage handlers and wheelchair attendants. the strike would be the largest since the union began organizing. joe: it is the fifth anniversary of a measure that seemingly made nobody happy. 2010, president obama signed the dodd-frank wall consumerform and protection act. it was the most sweeping reform since the new deal. but it remains a work in progress. a bipartisan group is already looking for ways to tweak it. alix: the republican presidential field is getting crowded yet again. there are now 16 field in the race -- 16 in the field. john kasich making his did official today. he served 18 years in congress of ohioecoming governor for yourself. a quarter of s&p 500 companies report their earnings this week. apple is the latest to do so. apple is the single largest

contributor to snp profits, --s&p profits. we like talking about apple products, but this makes apple incredibly important. joe: there have been a few phenomenons in recent years. one is that it is impossible to you are s&p unless owning apple. it's also impossible to imagine the rally overall could continue if apple is weak, given how important it is. alix: it accounts for about 7% of s&p income, so just for a profit wise standpoint -- talkingething we were about earlier after google reported, you look at apple and google and how big they are. there's massive inequality between them and the other companies. a few big companies and then a bunch of smaller ones.

another thing that you brought up last week -- analysts see this quarter as potentially being the worst quarter for-profits the financial crisis. a lot of that is due to energy. the energy crash ringing down earnings overall and the rest of the s&p not looking quite as bad. we have these week earnings, insert to look like it might be possible that we might get the worst quarter yet. alix: and what you brought up -- do we really trust the estimates mark -- trust the estimates? the analysts generally get direction right, but they got it wrong last quarter, so we will see what happens. we told you about apple's conference call going on. here's another soundbite from them cook talking about the apple watch. sales of the watch did exceed our expectations and did so despite supply still trailing

demand at the end of the quarter. a little additional insight, through the end of the quarter, the apple watch sellthrough is higher than that comparable lunch time of the original iphone or original ipad. ♪

joe: you don't want to miss this -- we were hardly talking about greece on any of our shows today, but they still have this tough austerity laden a loud they are going to have to adhere to if they are going to stay in the eurozone. a poll of bloomberg economists say next year at some point, we're going to be talking about grexit again. if you don't like this story, too bad. x: you love it. any are not the only ones, citigroup is calling for a gre xit. i'm taking a look at coca-cola earnings reporting tomorrow for the opening bell. you don't want to miss it. it's all going to be about unit sales volume -- comedy cases of coke and soft drinks are they

actually selling in north america? growth is mostly flat and this is their bread and butter. don't miss the numbers. joe: that's all for this special edition of

announcer: from our studios in new york city, this is charlie rose. charlie: we begin this evening with our continuing coverage of the iran nuclear deal. the united nations security council unanimously endorsed the agreement and authorize the lifting of economic sanctions. the u.s. secretary of defense, ash carter, arrived in israel to meet with the country's leadership. prime minister benjamin netanyahu is one of the most mostle -- is one of the critical of the deal. ari shavit is a popular "haaretz columnist