emily: i'm emily chang in san francisco. this is bloomberg technology. apple reports earnings that beat expectations and gives an upbeat forecast for the current quarter. all the highlights from the results and the call. facebook detects political interference on its platform ahead of the u.s. midterm elections. what is the social network doing secure it -- to secure it self?

tech is gearing up for the earnings results wednesday. can elon musk win over skeptics on production issues and his leadership? first, to our top story, apple shares spiked after recording third-quarter results. they beat analyst estimates on revenue raking in $53.2 billion and forecasted strong guidance for the current quarter. the iphone itself sold fewer units than expected, but the average selling price of each iphone was strong. the company also reported services revenue by the app store and apple music and products like your pods in the watchpods and hthe apple continue to make good progress. dan is our senior analyst and a market correspondent with us. let's start with dan. lots to digest. let's start with that iphone number below estimates. it means apple only sold about a percent more iphones this quarter than a year ago. we know people are always holding out for the phones that expected to come next quarter.

is it disappointing? dan: if we look at the actual data, the fact that the asp for -- asps were health and we are in a seasonably weaker time suggests the overall business remains quite solid. we have new products likely to come out in the beginning and mid-september. for iphone, the numbers were just fine. the services results, as we see them and other exit suggest wearables, the air pod, watches, are doing well, suggests the platform is broadening out and you have multiple growth drivers. we think that makes this an interesting story over the next couple of years. emily: everything else looked good except for the mac number which we will get to. overall, it seems the market is responding well. there were concerns of any sign of weakness would lead to a downward spiral. we're not seeing that. romaine: the stock is up about 3% after hours and a lot of that as dan alluded to is what you saw in services and accessories. i don't think most of the market

was really looking for much out of iphone unit sales. the expectation is generally that as we get into the next quarter, hopefully we shall see movement there. in the interim, they are producing a lot of cash, a lot of profits, and investors seem to become double. -- seem to be comfortable. emily: does the mac number were you, dan? this is a company certainly hard to rejuvenate the mac line. this is the lowest quarter from sales since 2010. dan: the number itself does not worry is particularly because you have product cycles. the unit numbers, depending on having products launched, could be impacted on the quarter or a series of quarters. as the company transitions its users to new platforms, certainly the iphone is notable. it is newer areas which give us confidence that, when we think about how apple is to evolve, there are other platforms that will help contribute to the growth.

that is ultimately what will create significant value, certainly for its customers and for shareholders as well. emily: let's take a look at international growth. china performed markedly well. they saw 19% year-over-year growth in china, even in the midst of all of these trade tensions. romaine: it is still performing well. this is a stock and company that is not really generating the excitement you see in a lot of the other tech spaces. when you look at amazon and alphabet and other names, you're constantly hearing about new products and services. that gets investors excited. what we are seeing with apple is a company that continues to grow at a steady pace, is not parabolic or dynamic, but a

steady enough to attract a lot of attention from folks like warren buffett and of the other value names out there who are looking for a stock that can be resilient in the face of trade tensions, in the face of an economic slowdown. at least for now, apple seems to be that stock. emily: tim cook has not said much about trade tensions so all analysts are listening for clues and listening to hear him make any indication about what is going on and whether this will impact apple, especially if president trump delivers on his promise to put tariffs on as $500 billion worth of goods. dan, are you concerned with the political issues surrounding us right now and whether that could hurt apple? dan: some people we're watching -- it is something we are watching very closely. know tim cook and the company are reaching out to both sides

as they have for many years, we expect that to be certainly part of what they will do. what is important to note here is that the company has created jobs in america, and apple has talked about investing hundreds of billions of dollars over the next several years. they are also creating jobs in china. and, frankly, all over the world. apple is a good corporate citizen helping to invest, build, innovate, and stepping back, if we think about the app store and the ecosystem, they have paid out $100 billion to developers over the last decade which is globally. the fact that the company is able to build a platform upon which others are empowered to create, innovate, to build businesses, we think that should resonate hopefully with both the government officials in china and the u.s. in that apple could be part of a solution overtime

-- over time here. emily: tim cook says the company is still on track to meet the goal of doubling services revenue by 2020. also talking about the iphone saying the iphone x was the most popular phone in the quarter. that seems to be clear based on the high average selling price which ishone, $724 , higher than the $699 that analysts had estimated. you could say the two businesses here, services and iphone, still a both going in the right direction, romaine. romaine: this is a company on track for annual sales this year and will probably top $250 billion. there is only two other companies in the world that beat that. this is a company that is also going to generate over $50 billion probably in profits. it continues to do this year in and year out.

it is very consistent. we were talking about this on the program last week. this company and the stock have really become a much more value play than the rest of its tech and faang peers which are much more growth stock. that is a benefit to this company, a benefit to investors already in the stock. you see it attracts a lot more money flow into the stock because of it. emily: one key part of the service revenue, apple revenue, is up 50%. we will continue to cover apple throughout the hour. romaine bostick from bloomberg, and daniel flax, you are sticking with us. the global smartphone slow down is hitting samsung's results. they posted a net income of $920 billion short of analyst estimates in the second quarter. they are facing increased competitiveness from chinese rivals. the same for its display business from cheaper rivals.

chip business remained resilient despite a chinese investigation of collusionons with chipmakers. three companies control 90% of the world's chip market. coming up, can washington, d.c. and beijing get trade talks back on track before a full-blown trade war? and, how it all impacts companies like apple. we will discuss that, next. facebook identifies an ongoing effort to meddle in the u.s. midterm elections happening now. details on the "coordinated efforts" ahead. this is bloomberg. ♪ emily: with the u.s. midterm

elections months away, facebook

confirmed what many have suspected. they have identified an ongoing effort to influence the elections. we have details about the investigation. >> we will begin important people who are interested in the event, or said they would attend. it is clear whoever set up these accounts went too much greater lengths to up scare their true identities than the russian-based internet research agency, ira, did. emily: for more, i want to bring in our bloomberg tech reporter. what has facebook detected? >> they saw the russian influence in presidential elections in the 2016 election and failed to disclose that until long after the election had been decided. they committed themselves to prevent than the future. they are now coming out and saying they have a separate instance of election meddling. they do not know if this is from russia or someone else.

this is small compared to what russia did. what, they bring the public and to what they know since they have been communicating with congress and the fbi. emily: they are also getting more sophisticated and that these attackers are more disguised? sarah: facebook has been morning -- warning that no matter how much they invest in trying to stop happening, it is possible these "that actors will always be a step or two ahead of. in this case, they were able to up secure their identities and a much more sophisticated way than the ira. this was much more difficult to track. emily: let's listen to sheryl sandberg making that refrain about security being an arms race. >> security is an arms race and is never done.

we made it harder for inauthentic actors to operate on facebook. yet, we face well-funded adversaries that will not give up and are constantly changing tactics. that means we need to constantly improve as well. we are investing heavily in security so we can find an address the threats. we have improved our ai so we can more effectively detect and block fake accounts. emily: is facebook doing enough? you have critics out there who continue to say no. sarah: one thing that facebook needs is cooperation from the government at a level where they are not the sole national security helper for the united states. emily: are they getting that? sarah: they are. i asked that question on the call and they said they are happy about increased collaboration they are seeing from intelligence agencies,

congress, but they do not want to get to a point where they are saying we are going to analyze this and try to figure out the motivation behind these actors. all they can say, they sent him a call, is what they see on the platform. they don't know how this affects things in the real world, about the motivations or who is doing it. part of this improvement in their system is sharing the information with third parties and other tech companies that can try to build a bigger picture of what is going on. emily: i'm sure this will continue to unfold, sarah frier, you will keep us updated as always. bloomberg learned the u.s. and china are trying to restart stalled trade talks hoping to two aboard a full-blown trade war. representatives for steve mnuchin and the chinese vice premier are having meetings on how to get the talks back on. this is according to people familiar with the meetings. this is ahead of the next wave

of u.s. tariffs on an additional $61 billion of chinese goods. let's get straight to the bloomberg reporter who gave us this scoop. tell us, what do we know? jenny: we know steven mnuchin's team has been in touch with their chinese counterparts to figure out how to get the stalled talks back on track. we know the two sides have not talked since the first round of tariffs was imposed. since then, we have seen them upping tariffs tit-for-tat on both sides. we also know there is internal discussions going on within the u.s. cabinet whether or not to have the talks and went to have the talks. who should have them, and where they should take place is also on the board. they are talking about logistics and that what point or whether or not the u.s. and chinese presidents get involved.

you might recall there was a time before when the two sides talked and they thought they had a deal and they did not. president trump walked away from it a couple of days later. chinese officials make clear they need to talk on the highest levels, the presidents themselves. we are in the early preliminary stages of figuring out the logistics of getting the talks back on track. emily: dan, we are waiting on tim cook to give any indication on his thinking on apple's earnings call. are you optimistic about this news and the potential for the trade war to be reeled back in? dan: i think the most recent announcement or the expectation that we will get a little news is a step along what i suspect will be a series of many, many steps and a lot of back and forth in the coming months. ultimately, what i think we need to see from both sides is a realization that both the u.s.,

china, and china's global economy will benefit if the countries can work together. even though there are imbalances, many certainly in this country would like to see the issues addressed, ultimately, we would like to see a constructive move forward or parties can agree to disagree on some fronts, and other areas, they find ways they can cooperate more effectively and strike a more level or balanced playing field overtime. -- over time. we have a little ways to go i suspect. emily: jenny, walk us through the timetable of what may or may not happen given that wave of terror is supposed to start as early as wednesday. jenny: as you may recall, the u.s. and ministration announced it would announce tariffs on $50 billion worth of products. now, the 16 billion and the public comment.

ends tonight. the next step would be that the u.s. would impose the tariffs because the president has said many times he is willing to go to up to 500 billions worth of chinese goods on tariffs. all we know now is that the tariffs are set to go into effect. red now we know they might take now we know they might take a few weeks for the u.s. administration to take into account all of the public comments that are going in until tonight to finalize the list and act on the list and put the tariffs on. but, i would definitely look at what china's response is because donald trump has said his objective in these talks, one of the objectives is to lower the trade deficit. if the u.s. imposes tariffs and china does the same, that we

arrive at the status quo. that does not help the president of the united states, who said many times, the trade deficit must go down. we're definitely going to watch what the chinese government will do tomorrow with the talks. emily: jenny letter, i know you will keep us posted every step of the way. daniel flax, thank you for weighing in as well. coming up, apple earnings with an upbeat report and tim cook said the iphone x is once again the most popular iphone in the third quarter. he said this was a "stellar quarter" on track to double by 2020 and the apple watch had a record quarter. we will bring you all of the headlines ahead. and amazon is keeping it in the family. how jeff bezos' family has reaped the benefits of his astounding success. this is bloomberg. ♪ emily: jeff bezos may be the

richest man in the world. he is not feeling bezos with a fortune. in 1995, jackie and mike bezos invested into their son's commerce website. that big gamble may be the most successful venture investment of all time. jeff bezos's parents' stake in amazon can now be worth almost $30 billion. that makes them wealthier than the microsoft cofounder, paul allen. the share would make them the second-biggest shareholder in amazon, following their son. his siblings could each be worth about $640 million apiece. with the race to $1 trillion, his family could be just a few of tech's unknown billionaires. here to discuss further is the author who wrote the story. you have fascinating details, not the least of which was that jeff bezos told his parents there was a 70% chance they would never see their money again.

>> he was very clear when they were discussing whether they should put their money in. he said this the super risky investment and i want you to know the risks because i want to be able to come home and have thanksgiving dinner with you. amazon has worked out and i'm pretty sure he is always welcome around their home. emily: talk to us about what we actually know. we really can't be sure they have not sold a significant amount of their holdings. we know they have given a bunch to the foundation. how much money do they have? tom: basically, the last time their holdings were disclosed at -- was at the end of 1999. that is nearly two decades away. story wasid in the breakout the various bull case, base case, and bear case. the bull case would be they had not sold any stock it all and the stake is worth $30 billion. the bear case on the other side would would mean that they sold

all their stock at the lowest price and that would be a return of $100 million. that's a 40,000% return. there is a huge range on what they might have done. we're pretty sure they have not sold all of their amazon stock because they have a big charity and donate stock to that regularly. emily: it's not unusual for parents to invest in their children's ventures, though his parents made a good choice. how does this compare to other parents of billionaires? tom: in terms of scale, i do not think there is much comparison. in terms of the other tech guys thinking about mark zuckerberg, google cofounders, none of their families had enough of an investment for it to be disclosed. the bezos family stands out on their own. emily: good for them. tom metcalf, thank you for the story. we are staying on the story of the moment which is apple

earnings. there was a big beat in the stock spiking after hours. apple saw double-digit services growth across all segments. listen to tim cook talking about services revenue on the call. >> we had a still a stellar quarter in services which generated all-time record revenue of $9.5 billion fueled in part by double-digit growth in our active areas. we feel great about the momentum of our services business. we are on target to reach our goal of doubling our fiscal 2016 services revenue by 2020. ♪ emily: this is "bloomberg

technology." i am emily chang in san francisco. act to our top story. apple raking in $53.2 billion in the quarter with strong guidance for the quarter. tim cook said the iphone was the most popular iphone again in the quarter and is gaining market share around the world. while the iphone has always been the moneymaker for apple, but tim cook said that was another star this order. >> our third highlight at the quarter is the outstanding result in wearables, which

comprises apple watch, air pods, and beats, and was up 60% year over year with growth accelerating from the march quarter. our wearables revenue was a truly remarkable accomplishment for a set of products that has only been on the market for a few years. emily: joining me is julie, i will start with you. what do you make of all this put together, lower iphone sales than forecast but a higher asp at a time when were seeing revenue beat a great forecast, as well as services revenue continuing to grow. but it's good news all the way around, despite the iphone number. the smart phone number is maturing in the u.s. we are going to add 30 million subscribers in a next five years. most of the growth is coming out of asia. if you look at where apple needs to be strong to continue on this pace, they are showing growth in the right places.

emily: brian, you pointed out that despite the fact that the revenue beat, they actually dropped in market share but it doesn't matter as much because of the revenue. >> correct. they moved into second place in terms of shipments, but it offsets completely, that's the storyline right there. they are beating everyone. look at samsung. we saw their earnings last night, but the volume overall went down about 10% and revenues even more so. so they are growing revenues at a time when the market has matured. emily: let's talk about the dynamics between what's happening in the u.s. and asia because what is happening in china is looking good, despite all these political uncertainties that are on the table. julia: that is part of the story, but we talk about where the growth is going to come from. the next growth markets will be india and vietnam and nigeria. can they continue to grow their

market share without giving up the profit? apple generates most of the profits in this market. they are not buying their way in. emily: are you concerned, given the presidents america first strategy? ryan: there has to be concerned. there's a lot we don't know, but i think overall there is uncertainty there. the other piece about the developed markets slowing down, which is where apple has focused, these other high-growth markets like india and indonesia and so forth, right now there's no pricing structure terms of subsidy or financing that supports apple's higher asp. i believe they are looking at that closely. likely they will come up with some solution whether partnering with telco or service providers. i do think they are looking at those markets as growth opportunities. emily: apple music going strong. take a listen to tim cook on the call. >> a subscriptions from apple and third parties have now

surpassed 300 million, an increase of more than 60% in the past year alone. revenue from subscriptions accounts for a significant an d increasing percentage of our overall service business. emily: be honest, i want to talk about some of apple's other pets. spending jumped 22%. what is it they are spending on? julia: i hope their spending on making the next generation of products to be more intelligent. if we look forward, and we look at their products, whether it's wearables or smartphones, how good those products are an attractive to consumers will depend on the family of technologies under artificial intelligence. how good is their virtual assistant? how good is siri? how well can they connect that into an ecosystem of services? emily: and what about original content, given that it could buoy sales of apple tv, for example.

big: the content story is a one, and they are continuing to focus on building their content story and it's proven to be challenging in some areas. emily: they are certainly not alone. ryan: there's only a few major platform players out there. i think for them it is a long story because it is critical. emily: tim cook on the call saying we feel great about her -- we feel great about our current services but were also thrilled about our pipeline of new services with the combination of hitting our objective and even doing a little better. what could the new services be? ryan: i think they are unlimited. i believe that apple and all their major competitors are looking at services in many ways. there's your current content in what you can get in terms of providers and partners today, but they're looking it more through the lens of what is technology going to bring in terms of tomorrow and years to come and how will that turn into more service offering. that's what were seen across the board. today you cannot talk about

anything as a service without talking about a platform. i think it's going to be the next step for them. emily: the lowest quarter for mac since 2010, and this had been a core product. julia: i think that trend will continue. tablets will not recover. it's good to see the news on the wearables and the watch. one of the things are pointing out is there's no replacement for the smartphone in the foreseeable future, which makes their dependence on growing that services category even more important as we look forward. emily: at a certain point, will services surpassed the iphone in revenue? julia: in their dreams. ryan: we've seen every year they progress in terms of what they're doing around the chipset and so forth. that is a big strategy for them to get less dependent on suppliers, is a broader scheme for apple. julia: and the value of their hardware is increasingly dependent on the value of the

services, and the third-party ecosystem of devices and services around the products. there's also more that is outside of their control. apple pay is accepted in more places, but it's going to take time for them to get there, and that's not completely in their control. emily: what are you looking for in the coming quarter? there was a strong forecast, and we are expecting a new family of iphones. the iphone strategy seems to be working for them. ryan: exactly. i think the q3 numbers, the guidance was strong, that shows me they will be ready to launch these new products altogether at once around that september launch timeframe. or whatever that might be. if you remember last year there was a big gap between when iphone 8 and iphone x was available. obviously it pushes revenues from one quarter to the next. that is strong guidance, and i have to believe they are expecting of strong rollout. emily: and the big iphone x i

assume will be a big hit in china. julia: i'm hopeful. emily: thank you both, as always. uber announced it will be shutting down its self driving truck service, choosing to focus solely on car development. uber acquired the truck service in in an effort to remake the trucking, while self driving cars have been surrounded by controversy. as competition in the self driving car industry heats up, uber said it will move self driving truck employees to other parts of the autonomous car department. coming up, we go behind-the-scenes the e-commerce , startup that's grabbed the attention of softbank. this is bloomberg. ♪

emily: a one-year-old e-commerce startup hopes to take on the e-commerce world with his latest boost of funding led by the softbank fund. it launched just last year and offers over 300 organic and high-quality household and food items each at the price point of just three dollars. here now to discuss, brandless ceo. brandless does it mean no brand, in your vision. brand-less.it like the problem is people have lost trust in brands.

78% of millennial's second don't want to buy the product and brands they grew up with. people want brands that reflect their values. when my cofounder and i founded the company, we said the first thing we are going to do is reimagine what it means to be a brand, one that is based on truth, transparency, and in direct connection with the community that it serves, and once he's basic value is about scaling kindness. emily: entering the e-commerce landscape, you're going to get asked about amazon. why walk into a market that is so dominated by one player? >> we don't think about brandless as competing with amazon. amazon is the everything store. brandless is a community of people that believe everyone deserves better and it doesn't have to cost more. and we can curate and edit a simple assortment of what you're looking for. we searched shampoo on amazon,

you will get 20,000 results. you say you only want to see the clean ones. on brandless, we sell shampoo that is not tested on animals. you will get one great shampoo and it is three dollars. is simplified. amazon has everything, we have products we have created and curated for the community that we sell to the community, and it's not a lot of choice, which for a lot of people is very relaxing. it's anti-overwhelmed. emily: you're only a year old. you personally -- >> i would like to say i won him over, but the product in the story and the opportunity to reimagine an industry is what he has built the fund for. he built a team of investors who are joining our board who are operators, who know how to scale things, who see that the cpg industry is really broken. it is so many layers and it was built for a very different time.

products were built for the shelf, not for shipping, and they were going through stores and there were markups and it was terribly inefficient. at brandless, what he saw was that we could completely disrupt the supply chain and go direct to consumers and build direct relationships with consumers. and using data and artificial intelligence machine learning to create the products people are looking for and to list all the big choice, when there are way too many products out there. emily: let's talk about risk. a $500 billion valuation, that's a lot to live up to. how do you plan to use the money and deliver on that vision? tina: in order to reimagine an industry that is not a single swing of the bat. it's about investing first in our people, building an extraordinary team, using it to scale our technology and data

science and all of that infrastructure, and create more products, greater assortment, and accelerate bringing brandless to everyone. emily: talk to me about the cost. how can you make money here? how is it possible that the shampoo and the popcorn is only three dollars? tina: it is actually a lot less than that. the problem is coming your getting ripped off. the people understood what things cost ursus what you're -- if people understood what things cost versus what you're paying them, you would be freaking out and writing in the streets. people don't actually know what things cost and a kind of know what their budgets are, but they don't really know what things cost. and the better markets, organic, non-gml, everything we do is better, and they charge more for it, and that's not ok. emily: so where does your stuff come from, and is it actually unique, or is it something i could get somewhere else? tina: we have an extraordinary community of vendors.

we codevelop these products with. almost all of our food is from north america, though there are organic olive oils from italy and organic pasta. we have products from all over. we codeveloped them so in the beauty and personal care area, a lot of those are formulations that we are in the lab doing. our food scientists are working with the various manufacturers and in some cases, if we are packaging organic brown sugar, there's not a lot of codevelopment there because that's not a special formula, that's just pure brown sugar. emily: it's been compared to the japanese home goods store which has been a sensation. what are your plans for international expansion and does that come now or later? tina: i would say comes later, but with brandless, and with our muses from around the world that really inspire us, we are

building a global brand, and more importantly, a global movement. emily: tina sharkey, thank you so much for stopping by. founder and co-ceo of brandless. great to have you. coming up, we get back to the story of the moment, apple earnings. tim cook just said tariffs risk unintended consequences. he said none of apple's products were directly affected by the first three rounds of tariffs. he said he is still evaluating the fourth. we will talk more about that next. this is bloomberg. ♪ emily: clouds are gathering

over tesla ahead of second-quarter results wednesday. analysts published notes striking a cautious tone. concerns are growing around cash flow, production targets, and gross margins.

it leads to one central question, is tesla a real car company? >> elon musk says tesla is a real car company, but some analysts have doubts. let's break it down. tesla is worth more than ford with roughly the same market cap as general motors and is nearing its own production targets. at the end of june they made nearly 7000 cars in a single week, a little more than 5000 were model three. at that level they can be profitable in the third full quarter. analysts have yet to be convinced the company can sustain that level and say they need to find a way that's profitable and quickly. the company is burning through cash, $1 billion per quarter, and analysts say it needs more. they've raised $19 billion in capital since 2010, a burger -- they burned through more than $8 billion in cash and never posted a full-year profit.

back in april there was job cuts and budget tightening. tesla's producing just a tiny number of cars compared to other automakers. come mid-2018, the company notice 88,000, compared to gm's projected 8.65 million vehicles and pretax profit for this year. tesla is still relying on a single plant in california to achieve scale. one third of production is housed under large tent. when it comes to global growth, tesla plans to build a plant in china, but it won't be ready for at least another two years, and no one knows how much it will cost. that is why analysts say tesla is not yet a real car company. emily: and a final wrapup of apple earnings coming out with third-quarter results, beating analysts estimates, and a strong fourth order forecast. tim cook said this earlier on the call. >> today we're proud to report

are best june quarter revenue and earnings ever, thanks to the strong performance of iphone services and wearables. generated $53.3 billion in revenue, an increase of 17% over last year's results, making it our seventh consecutive quarter of accelerating growth, our fourth consecutive quarter of double-digit growth, and our strongest rate of growth in the past 11 quarters. emily: joining us is mark, who's been blogging live on the bloomberg and digesting all the results. tim cook talking for the first time about the tariffs, saying they could have unintended consequences. he's not so worried about the first three waves, he's looking at the one that is supposed to be coming. what do you make of it? >> that was the highlight of the call. he basically gave us a classic bloomberg primer about what's going on, listed it out for different tariffs.

he said apple is not particularly worried about the first three, saying none of his products is affected by them, but the fourth one that under discussion right now, it has not gone into effect yet, this is the $250 billion one between the u.s. and china. cook said their reviewing it and will share their thoughts with the u.s. government, the trump administration, and then go from there. emily: why might this point in particular be more risky? >> there has been talk about some products like the apple watch falling. it's very complex, so they are still working through it. it's a difficult situation. emily: he also mentioned they decide to work with opera. oprah and original content. what do you make of this? mark: he came out and said we have this original content project we are working on, so it is a thing, its initiative,

i think they are going after amazon prime and netflix. he didn't come out and say it but that was the implication of what he was talking about. emily: what is your overall read on the earnings? everything looks mostly good except for the iphone number, and the mac number. mark: the mac number was disappointing for this quarter, the lowest unit save reported since the third order of 2010. we're talking about eight years. he said some of the things we will do on the ios side in the mac side in terms of merging the apps, doing more with the operating system level could ignite further sales up matt. -- further sales of the mac. they're working on a cheaper macbook replacement to replace the macbook air early next year so that could bring sales up in the near term as well. emily: we did get tim cook on the call. take a listen to this. >> our view on tariffs is that they show up as a tax on the consumer, and wind up resulting

in lower economic growth and sometimes can bring about significant risk of unintended consequences. that said, the trade relationships and agreements the u.s. has between the u.s. and other major economies are very complex, and it's clear that several are in need of modernizing. emily: so, obviously there is more to be seen here. bloomberg has been reporting that talks may be renewed between the united states and china, so this is very much a live situation. talk a little bit about what apple has at stake here, different products as you mentioned, make all into different categories, but overall, all their products are assembled in china. >> apple is right in the middle of this. u.s., with tariffs they want to

put on goods coming in from china, and china putting tariffs on goods coming in from the u.s. so apple is any unique position, they are u.s. based company out here in california, but they produce over 95% of the goods in china. so it's not really fair to say that apple is not going to be hit at all. you have to choose a side, you either get hit on the u.s. or the china side. it is to be seen which side that is. so far, it appears none of their products have been hit, but clearly they are worried about the fourth set of tariffs. clearly they will respond to it as tim cook said. clearly they know something, they know they could be affected in some shape or other for the fourth one. emily: we know tim cook has spoken to the president and into the white house a number of times. thank you for your great reporting on apple. that does it for this edition of "bloomberg technology." we will have full coverage in -- and analysis. that is all for now. this is bloomberg. ♪ this isn't just any moving day.

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