given the success, i have approved the deployment of 250 additional personnel in syria to keep this momentum. combating isis is one of the topics discussed with european leaders. killed, 14 people were more than 30 others wounded. a gay rights activist who worked for the u.s. agency for international developing and another man were hacked to death in the bangladesh capital. police say the killing for the latest in a series of attacks turning favorite -- targeting

atheists, modernist, and foreigners. 16 people were killed in the march 22 attack. crumpton, "bloomberg west" is next. ♪ emily: i am emily chang and this is bloomberg west. for applebraced earnings yesterday and the question remains, how far have iphone sales fallen. and charter communications approved -- received approval for its takeover of time warner cable. and we embark on the busiest week this quarter. what you need to know ahead of the report.

it has been a year since apple released the most significant new product since the tim cook era. the most hyped gadget since the iphone, the apple watch. watch is the apple most personal device we have ever created. it is not just with you, it is on you. since what you where is an expression of who you are, we designed apple watch to appeal to a variety of people with different taste and different preferences. emily: apple has not disclosed sales figures but ibc estimates about 11.6 million were shipped in the first month of 2015. they compare that to the first sales of the iphone which were a mere 6 million units in 2007. the iphone went on to be there most important product ever. with that in mind, why is the

apple watch still dogged by the idea that it is a disappointment. joining me now is the ibc chief research officer in boston via phone, david kirkpatrick joining me for the hour, and here in san francisco, cory johnson. . will start with you, cory would you say it is a success? cory: absolutely. if the iphone is a success, than the watch has to be. emily: why are people disappointed? cory: people are whiners. the phone compared to the ipod seen asirst year was very successful because the ipod business was smaller than the phone business, but the phone business has become one of the guest in the world. anything pales by comparison. you saw the take rate on the

ipad was fantastic in its early years. and the watch compared to the size of a iphone, it is seen as so much smaller because it is. it should be seen as a great success. emily: crawford, when you look at the number that you put out, should it be higher? >> i think that it could have been higher, but it really came down to price point and functionality. i disagree a little bit with cory, i hate to be the king of the winer parade -- whiner parade, but it is a different world. the world that the watch entered into. it is a word -- world that has been revolutionized by the iphone. i think that it was too e xpensive and frankly, there wasn't a use case that has emerged so far that made it a breakthrough product. it is, an aspirational product, people wanted, but they are not

buying it in the way when we surveyed that they are interested in it. there is a difference there. emily: if you say that the average price of the watches for todred $50 to $500, -- $450 $500, that is a most $12 billion. but how does it compare to fitbit? >> if any other company had released the apple watch, some other company, it would be heralded as a fantastic success. but this company is unique and uniquely in need of new revenue streams and uniquely scrutinized. crawford is right. the price point was an issue. i got one recently when the price went to $300. i said, that is now worth it for me. i don't know why it made a difference for me but i am very happy with my apple watch. i would probably not be as happy as i am given that it is still

limited in some functionality if it were more than $300. for some reason, that feels right to me. i really like it and i know tons of people who really like it. emily: it has been limited by battery life, you have to plug it in everyday. your phone does on most everything at the watch can do. crawford, do you think it could become a breakthrough product? does it have the potential to be the next iphone? >> i think that there will be multiple iterations and the future of the product will be tuned, not only to wide consumer ranges, but to verticals, and industries. to be able to use it in specific industries and use cases. i think you will see the products that to splinter overtime and get tuned by different form factors, different use cases. when you start getting that, a lower price point, and a third

thing which is direct connection to 4g networks, then you have something that will see a significantly larger degree of uptick than we have seen so far. emily: we will be watching iphone sales. they still count her 68% of iphone revenue -- of apple revenue. we are expecting the numbers to be down from a year ago. the numbers are dropping. think guidance will be important. to understand what they think will happen, with the addition of the new phone and the smaller phone into their mix and what that means going forward. the guidance has been fairly accurate. it is usually a little bit low, but we will see what they tell us about the future. i think it will be much more important. emily: crawford, if not the wat

ch, and putting the iphone aside, what is the next big business for apple? can services make up? >> i think that, obviously the game changer for apple, and what we are watching closely is the augmented and virtual reality space. that is probably at least one year out, if not further. i think that is the next game changer moment for apple. that, again, could be a fascinating opportunity for them. emily: what do you see as their role in the augmented and virtual reality space? >> from their overall standpoint, they have such an opportunity to drive software development, as well as new, interesting form factors that could not only the entertainment based, but use case and industry based. now you start getting into customer service, and ways that

folks do in field service. you get to many new businesses. google started to scratch the surface. microsoft is focused on hololens and facebook with oculus. thinking of the quote from tim quirk -- tim cook. that extension of you. this could be a very personal product that include software that apple could differentiate. emily: david, you are nodding. the san jose news put out interesting numbers suggesting that apple suggest -- accounts for 40% of the profit made by tech companies in the bay area. theye are hard on apple, still account for a huge piece of the pie in silicon valley. it is the most, successful physical product company that has ever existed as cory suggested before. it is fascinating what crawford a saying about mostly augmented

reality. i don't think apple will make a big play and virtual reality. it is clue desk will with google glass and microsoft hololens. i totally agree that this is an absolute inevitability that somehow or other apple will get into augmented reality and that could be a big business for them. they are gigantic and amazingly successful. the problem is that the expectations are gigantic alongside their scale. emily: david kirkpatrick, you're with me throughout the show. cory johnson, you will be back a little bit later. one stock that we are watching has to be xerox. shares plunged the most in six years off the back of a disappointing earnings report. with salesruggling declines of printers and copy machines. on top of that a stronger dollar and week market sales have

pressured the company to accelerate layoffs. completeon track to the document and outsourcing companies by the end of the year. on the other hand, the shares of first data gained as much a 6.5% after demonstrating improvement on the bottom line in latest results. processor said the net loss narrowed from $66 million to $112 million a year ago. beyonce drops an album along with an hour-long hbo special over the weekend. how she is changing the way that educators to business. plus snapchat has skyrocketing user growth but is it enough to warrant a $16 billion valuation? we crunch the numbers later this hour. ♪

emily: now to music streaming. victory from beyonce's decision to launcher of them exclusively on the service after launching a one hour special on hbo. tidal is only 3 million subscribers compared to spotify's 30 million active users and apple music's 11 million. so who wins, the music or the customers? keith, i will start with you. the album to say the least is powerful, the video special was incredibly moving. it is interesting that the narrative is all about jay-z as we understand it cheating on her, yet she gives the entire

album to tidal. what do you make of this? >> i think it is another explosive marketing move by beyonce to seize what is going on in the thoughts across america. her timing is impeccable. her execution is phenomenal. enter content, her store -- and her content, her storytelling is special. this is going back to the super bowl when "formation" came in place. this is a woman who knows how to seize the thoughts and the minds of young people and make sure it is being talked about across a number of platforms. this drives not only consumption, but avid fandom. she has done a great job. emily: i wonder if this is something that can only work for a megastar like beyonce. someone suggested that because album sales are not what they were, artists are taking more risks. the pressure is off.

but not just anyone can do what she has done. >> there are few people who can command the kind of attention that beyonce can command. as keith point sout -- points out, she is brilliant we taking advantage of that and functioning as a genuine, contemporary artist. i am not nearly as big a longtime fan as many people and that,knows her, and all but i really blown away by the impact of the video which i have seen, and that ambition of this creative effort. the tidal element is a weird one, but very few could do it. but anything she does, she gets attention for, and she is utilizing that to make a bigger artistic statement. emily: keith, if you know beyonce, take us into the mind of queen bey, and how she came to this epic decision. >> i don't quite know her like that, but her mind is clearly at

a higher level than most. what she was able to do to hold her own during a big weekend in the media really change things around. she is not just building herself as an artist, but also the business complex around her. there is an impact industry, an influence industry. her way to uniquely tap into the core and the heart of her audience. that is something that really makes her transcendent. she has moved from the old ways of doing the music business to revolutionize how music will be done now. the whole opportunity to lay out the movie beforehand, to get the videos going early. she has really done something transcendent. emily: tidal has a few other exclusive deals, but it is still happening piecemeal. how many subscribers to they get as a result of this? subscribers do--

they get as a result of this and do you see -- >> they have their own personal communications to their phone, some people are apple, some are android. all of these things come together with music inception. but it moves -- music consumption. it moves tidal up on the priority list. everyone he has tv but not everybody has hbo. when you do "game of thrones," or certain things, that moves up hbo. i think tidal is doing things that are making them relevant and making them the home of fantastic creative's. s. emily: you know sean parker very well. he learned a lot of lessons from napster about dealing with the music business the hard way. you have spotify and others learning that as well. you have major artists like

adele, prince, and when stephani recently not giving their music to these -- and gwen stefani recently not giving their music to the services. >> i have always thought of tidal as a vanity project. but if you wanted to listen to prince in the last few days there was no other way to do it unless you bought the music on itunes or whatever. i have been struggling to find it like tens of millions of other people in the last week. there is nothing out there to speak of. they can hold onto those exclusives. just like you can be an apple person or android person, you can be a spotify person, but i think it may be that we might want to have hbo and showtime,

just like, maybe you need to subscribe to more than one. it's not like they are that expensive. if you are a music person, that could be the future we are heading to. emily: beyonce has certainly made music and video history with "lemonade." thank you so much. up next, the hottest social media company around is facing some monetization issues. how can snapchat turn a big user base into big bucks? ♪

emily: snapchat is on fire, with a monthly user base of over 50 million in the united states. snapchat is used more than twitter and gaining on instagram as well. why is the company having trouble making money? here to break it down, our bloomberg senior research

analyst, plus david kirkpatrick. you put together a lot of information. this is a private company and they don't release all this information, but your conclusion is that snapchat is growing strong but not really making money? >> their projections this year are about $309, but if you look at the -- $300 million, but if you look at the user growth it has been phenomenal. the monthly active users can be anywhere between 220 million to 250 million. it all skews toward 24 years old and less. when it comes to monetization, especially when you look at the valuation of the company, it is reflecting revenue speed and rocket growth. they are trying to get into advertising, and ad api's and henceforth. emily: how are at copies

responding? >> we are's -- how are ad companies responding? -- it will beng important for snapchat to move on from this a lockhart model -- a la carte model that they have. emily: as the guy who wrote the book on facebook, do you see parallels to facebook's early days when people were saying, we don't know if they will ever make money. is snapchat different? >> maybe i am just blind, i see it different. but you cannot fight success. it clearly has a cultural moment, right now, just like beyonce in a way. the thing that i think is somewhat different, though i don't know the leadership team at snapchat has well as i got to

know them early at facebook, but it was my extraordinary impression of zuckerberg being a uniquely visionary, long-term thinker that caused me to shift my focus and write a book about facebook, "the facebook effect." but i worry about snapchat. it could come up really fast and go down really fast. there are things that it does that nobody else is doing. snapchat stories are not a big deal. not as confident that advertising will be a huge phenomena there. but brands picking stories there could be a gigantic business for them. on the other hand, people in my generation or even halfway -- can'tan'te ven even figure out where to find stories, the interface is difficult understand. it has a lot of issues and i don't think it is nearly as user-friendly as facebook struggle to be from the beginning. emily: quickly, your response to that. it is fairly user unfriendly. >> all in all, the addressable

market is likely a subset of facebook and google. they have to do these execution risks that we talked about. ton facebook and hbo had prove their monetization. it is to be seen on those risk standpoints if they can justify it. emily: interesting numbers that you crunched today. thank you so much. david kirkpatrick, ceo of techon omy sticking with me. we will take a deeper look into twitter's somewhat anemic user growth and sete white numbers have been steadily not looking so good -- and see why numbers have been steadily not looking so good. ♪

>> i am mark crumpton and you are watching bloomberg west. the five democratic primaries scheduled for tuesday could give a boost to hillary clinton's presidential bid.

mushy cannot win enough delegates to officially clinch the nomination, a big performance could erase lingering doubts about whether she can pull away from senator sanders. connecticut, delaware, and rhode island hold primaries tomorrow. donald trump is criticizing attempts to unify the anti-trump vote. that ansupporters agreement between john kasich and ted cruz to fight in some primaries and back off in others would be illegal in many industries. according to nikkei, as of last week, japanese insurers have received some 69,000 claims. the red cross is delivering it second humanitarian aid convoy. the delivery is being carried out in partnership with the u.n.

. it comes as president obama announced more u.s. officials and special forces are being sent to syria to train troops. the syrian refugee who had a leg partially indicated after a bombing will have tens of thousands of refugees increase by carrying the olympic flame with the torch relay tomorrow. global news, 24 hours a day. it is 6:30 monday in new york. paul allen has a look at the markets. week energy prices and a week lead from the united states having no impact on the new zealand market. it's currently trading up 0.1% but we are expecting declines. getting that big drop in the iron ore price on sunday evening. and south korea we are expecting

gdp from the first quarter to show a decline of 2.7% year on year down from 3.1% a year earlier. the big story here in australia is the awarding of the biggest defense contract in the country's history. it isart money says likely to go to a french consortium. this after the united states assured austria that a decision not to go to the japanese bid would have no impact on the alliance. we are expecting that announcement anytime now. emily: the earnings storm is upon us. busiest mark, the

week of the quarter. thursday, we dig into amazon and linkedin. what are we expecting this round? back with us now, my cohost for the day, david kirkpatrick and our editor at large, cory johnson. cory, we touched on twitter earlier in the show, but user growth is slowing down. where do you expect to twitter to go? cory: that is the big issue. it is one thing to slow as the business gets big, but even if zero,t to zero and stated -- the fact that last quarter, u.s. user growth declined. that it grew and shrunk in the last quarter was dramatically worrisome. continue,if that will what kind of a trend that might indicate.

emily: twitter has been an incredibly important role in the u.s. presidential election. some people say it has contributed to the rise of donald trump. do you see this as a longer-term wafer influencers to get their message out and get it publicized? long-term, would probably have to learn not to think of twitter in terms of total user numbers. quantifyo somehow total influence. donald trump is their best marketer in some ways. the twitter brand is stronger than it has ever been. this a question of, could there be any other business like twitter today? i don't know but given the brand strength, i would not rule that out. the fact is, i don't think they

will grow traditional advertising in the 20 stream -- in the tweet stream business. it is an essential tool for getting influencers. emily: busiest -- it is an extremely difficult thing once you see that slowdown. facebook was able to do it? cory: facebook never went negative. the thing look at with facebook is what they are now calling engagement. i just called it their conversion rate. when a look at monthly active users compared to daily active users. butjust how many they have, how much are people on it daily as opposed to monthly? when they turn the corner that more than 50% of users were on every single day, that is

something. but now as a percentage of monthly active users, it is growing. it is not only a positive thing but more and more people are on it daily. that bodes well for their ability to raise advertising rates and generate more revenue. emily: what did facebook do right that twitter did wrong? >> let me count the ways. they had a better product to begin with, appealing to ordinary human beings. ly was always visionari conceived in terms of how people wanted to comedic a digitally. twitter has -- wanted to communicate digitally. twitter has always been an acquired taste. i think it is a big mistake to compare the services. niche, supermore important platform for

influencers to receive data, where facebook is everybody's standard information service. emily: let's move onto lincoln. -- linkedin. they have not recovered from that massive stock slide earlier in the year. it was in the earnings report when you and david were on talking about the net day but the next day people reacted --atively -- the next day you and david were on talking about them that day, and it did not seem that bad, but the next day, people reacted very negatively. cory: the conference call -- you linkedinar frankness, said we would try a bunch of new products that we were very certain of that did not work out, so we are reverting course. that was the tenor of the analyst notes the next day. the return to analyze the

business to say what is this business? even within the company, all of these mounds that have amounted to an ability to create the product, even months and weeks after they launched them. emily: david, you continue to say what is happening to linkedin is unfair. why? >> it is a great long-term business that is not duplicate it for any other service. it is the defect of play for business people -- the de facto place for business people to interact with one another and communicate globally. they are very big with a lucrative demographic. they have a lot of things to figure out, and have an incredibly focused and visionary leadership. linkedt a believer in in's importance. it is the only other global

social network aside from facebook, and it has been that way for a long time. people don't see this how distinct it is. they see it as a slightly annoying source of updates they get in their email, but a lot of people are using it, a lot of people are going there and it is becoming more and more a defect oh -- a de facto global platform. so unlike amazon to have a very profitable product, but the operating margins of web services which they give us tomorrow -- last time around, not only with a very strong -- i know we have not been getting them for very long, but last quarter they were up 8% from six quarters previously. the profitability of web services is creating a strike -- bonus, it's really sawing to move the needle. emily: what about -- it is really starting to move the needle.

their what about standalone prime service as well as echo, your favorite product. >> it is still my favorite product, in spite of my satisfaction with the appalachian. but -- the apple watch. but i love to say that who would guess that a book company has come to redefine software. that is what every company seems to be doing as they are dominating cloud services. emily: thank you for waiting in. -- for weighing in. tomorrow, t-mobile reports earnings. i will be speaking with john ledger at 11:15 a.m. et right here on bloomberg television. tweeting about a trial could now cost jurors some serious dough.

california has drafted legislation that could let judge is fine jurors up to $1500 for posting about cases on social media. they can also be fined for researching cases on googles. . speaking of social media, the u.s. government is looking to create its own social messaging service to rival whatsapp. darpa has issued proposals to build communications platform for the military. they wanted to incorporate block chain technology and have a self-destruct feature like snapchat. darpa says it may even commercialize the platform. coming up, the charter time warner cable deal wins antitrust approval with one exception. we will break down what it means for the likes of netflix. ♪

emily: from coffee table and meatballs to solar panels. ikea has begun selling them online this week. they will sell them in all of their u.k. stores by the end of the summer. about one third of their customers have indicated they would like to invest in solar and they want to make it an essential part of any home. the move comes despite cuts to subsidies for homeowners and businesses in the u.k. and the u.s.. charter communications just one bank antitrust approval in the united states for its $65 billion takeover of time warner cable. the deal will create the second largest cable provider behind comcast. the agreement includes a measure to protect one of cable's

biggest threats, online video distribution. bloomberg news's tie shields joins us now. talk to us about this important condition. just one condition, but several conditions that we can put into two buckets. on one side, the justice department said that charter, which will be a pretty big player now, cannot discourage programmers, companies such as viacom from selling to online video services that may compete. on the other bucket, the other side of the equation, the federal communications commission and justice department together said that charter cannot do things like impose data caps. you put both together and it is videonet plus for online company such as netflix. emily: as netflix responded?

what exactly does it mean for them? >> i haven't heard from them yet. they were early in on this and many months ago said that they backed this merger. one opponent of the deal, the dish network, best known as a satellite network, also has an online video network called sling. they were among the leading skeptics. i have not heard from them today. it is not clear what the online providers are saying, but it is clear that the regulators feel this will clear the way for their service, or make sure the delay is not blocked. emily: what does this mean for the future of cable providers. comcast is still in the lead, but it's business model is under threat with a potentially stronger number two player.' >> they would be quick to tell you that the do not compete directly with one another, which is true on the surface.

.ut we will get a taste charter has to build one million homes in an area with another cable provider. they will test some direct competition. in this field, the deal is really broadband. programming is living outside the traditional cable package. people want to see various videos and don't care whether it is part of the $50 per month, $120 per month universe. the conditions on this deal are the recognition that the world is coming and your regulators don't what the cable provider to be able to stand in the way. emily: what are the next steps for this to be finalized? >> the department of justice's process is more ore less -- more or less done. the fcc studies to win the vote of three of the five

commissioners. the chairman of the sec sent the deal to his fellow commissioners, two democrats and two republicans. there will be some talking and we will see when it gets three votes. emily: todd shields in washington. "bloomberg news." thank you for weighing in. joined by roger withho joines three days to go for the draft. if you happened to catch the season three premiere of "silicon valley," you might recognize a few familiar faces. jumped 7% on the news that gavin bell is writing down the entire nucleus project. what happened? >> it was a courageous move and he is a straight shooter and wall street is responding to that. emily: don't think that brad stone and i will try to quit

our jobs anytime soon, but it was great fun to work with the team at hbo. if you get behind the scenes content on youtube if you want to continue laughing at us. ♪

emily: a story that we are geeking out about, nasa is heralding a new generation of x planes. that's the name given to experimental aircraft meant solely for research. these concept, designs have meant some of the biggest strides forward in aviation. last year, nasa announced a series of investments that would help planes to fly on greener energy, use half the fuel, with half as much noise. the first contract was $20 million awarded to the team at lockheed martin to crit a quieter -- to create a quieter supersonic jet.

>> today on monday, we ended slightly lower in the red across our major indices, but they were only slightly lower. the s&p was down about 0.2%. the nasdaq was the biggest lagger, but not so bad. this was its lowest in nearly two weeks. look, weat the broader b are looking at something on the order of 1.3% down. the drop over the past three the, from the 20th through 22nd, this is its biggest three-day drop since february. let's look at the nasdaq biotech index. down by about 0.9% this monday. the reason for this is that para down financeg

companies. it lowered its 2016 eps below the lowest estimates to about $28.60. and also named a new ceo, are expecting even mark a petition. a trifecta of terror when you look at their stock. that is having a ripple effect. when you look at other pharma companies on the nasdaq, you can see it. mylan down.7% and 3.2. for both of these copies they are down the most since february. emily: we have t-mobile about to report first-quarter earnings. i will be speaking with john ledger tomorrow, but what is your read on the bullish sentiment? >> let's look at what happened

with the stock sentiment. up by 2.4%, closing at its highest since october, 2015. let's take a look at at least four of them that are very bullish. bs by pacific crest over weight. with ubs, they say that they think t-mobile will leave the industry with net ads in the first quarter of about 950,000 new subscribers. further sayingg that by the end of the year that maybe t-mobile will get even more subscribers than it thinks it's going to. hop into this very quick, i will show you the a&r function. these are analyst recommendations. the green represents the calls for buy, the hellow -- yellow

for holds, and the red for sell. ever since march, the green has been no less than 7% in terms of buy. good news for the company. t-mobile shares have risen six of the past eight sessions in terms of earnings. if past is precedent, maybe we will have another pop. back to you. emily: ramy with the breakdown there. it is time now to find out who is having the best day ever. today's winner is hot sauce lovers. general electric has teamed up with high river sauces to make hot sauce scientific. introducing 1032 kelvin. it contains two of the hottest peppers in the world. it just went on sale on their website and is one of ge's

attempt to show off its technical prowess to a younger generation of engineers. that does it for another generation of the west bank." -- of "bloomberg west." keep watching twitter, we will break down the numbers. ♪

announcer: from our studios in new york city, this is "charlie rose." david cohen is here. he has served as deputy director of the cia since february, 2015. he was previously under secretary of the treasury for finance -- he was the key architect of the administration's sanctions against iran and russia. week, president obama visited saudi arabia, where he to -- arab states to increase their commitment to the fight against terrorism. today, he