who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile. what one legend is saying about apple's rollout. plus sir richard branson. "squawk box" tomorrow on cnbc. good morning. it is 11:00 a.m. on wall street. 8:00 a.m. here at the flint

performing arts center where in about two hours from now, apple is expected to unveil that brand new phone. maybe a lot more. squawk alley is live. >> and we are calling it iphone. today we're introducing the iphone 3g. >> i'm really excited to tell you about an entirely new version, the iphone 3gs. >> today we're introducing iphone 4. >> i'm really pleased to tell you today all about the brand new iphone 4s. >> today we're going to introduce iphone 5. 5s is the most forward thinking phone we've ever created. in fact perhaps the most forward thinking phone anyone has ever made.

>> what a montage. welcome to squawk alley. joining us here, the co-founder of elevation partners. roger, always good to see you. jon fortt live in las vegas and kayla tausche holding the fort back in new york. we're less than -- it's expected to be its biggest reveal in years. here's what we think we know. we're expecting to see a new phone possibly some kind of wearable device, maybe an appearance from u2 and everybody else of course. payments, health and so forth. you are bullish on the software aspect. >> because we're coming to the point of maturity for smartphones and tablets and all these other things. rates of growth have to slow down. but they're so intaegrated in people's lives that apple has the opportunity i think particularly in payments to change fundamentally how people

interact. and let's face it, we need that desperately. credit cards are outmoded particularly in the online world. and apple is in a unique position because of the integration of the hardware and a operating system to make it possible to use phones to pay for things and track health and all these other things that people really care about. >> you were talking before the show this morning when they changed the music, they dealt with the record companies before the ipod. they convinced record companies let's sell a song for 99 cents. is that going to be more difficult convincing a retailer to let us in to your transaction day take, convincing a health care company to -- telling them your patient's data will be safe on our network? >> well, i assume that all those things are incredibly complicated. if they weren't, somebody is coming is terrible job on the other side of the negotiation. that said, there is very little doubt in my mind at least that credit cards do not work well in the online world. they're way way too vulnerable to security robproblem, to thef.

and it's just too hard to enter the data all the time. when you have something like the finger print i.d., that creates a level of security that has previously not been available either with credit cards or online payments. and apple can fix that problem. and it's not going to happen overnight, but if they put the coalition that gets it started, i can't wait to see where it goes because the shortest unit of time in the universe is how long it would take me to sign up for a digital payment system with apple. because i trust their ability to control this stuff. >> and that brings up another topic. jon fortt in las vegas, for what degree does tim cook need to come back, circle around on privacy and security given the celebrity hack of just a couple weeks ago. >> carl, i think it will be top of mind for a lot of people especially if they have anything to say about payments. look, to the public's mind, there is no difference between apple's cloud for content, for backups, and for payments.

it really boils down to trust. and apple's reputation has been based on doing things elegantly. so especially given the fact that tim cook really needed to and did just a few days ago come out and say we're making shall chan some changes with how we do security, as he rolls out ios 8, to allow increased security.hal some changes with how we do security, as he rolls out ios 8, to allow increased security.all some changes with how we do security, as he rolls out ios 8, to allow increased security.ll some changes with how we do security, as he rolls out ios 8, to allow increased security. se changes with how we do security, as he rolls out ios 8, to allow increased security. some changes with how we do security, as he rolls out ios 8, to allow increased security.some changes with how we do security, as he rolls out ios 8, to allow increased security.some changes with how we do security, as he rolls out ios 8, to allow increased security. there is a vision for where apple is going in security. maybe even give a little bit of a mea culpa. he seems to want to back away from taking too much of the blame for that hack. >> i would love to break with jon on this, but i really don't. i frankly think people are -- they're immune to fear when it comes to online stuff. that is to say people have been broken into, so much stuff has been stolen. >> are you saying we're desensitized to security breaches? >> i think more importantly, i

think that they enjoy the photographs more than they're worried about the security problems associated with it. but i think the public is not the barrier. the issue is getting all of the people in the payment system, all the people in the health care system, comfortable with it. and i think apple's story there is actually really good. you know, you're not going to be seeing passwords that is the name of your dog and birth year. that's just not how people will do that stuff. and apple has to demonstrate a working system. they won't be able to fake it. and what i think is indisputable, will they can do . they are the best at this globally. and if the world will move forward, something like that has to happen with shall be. if not apple, somebody else. but if it's not apple, it will be a while.shall be. if not apple, somebody else. but if it's not apple, it will be a while. google's operating system does not put them in position. >> understood. kayla, let's talk about the stock.

jeff gunlack, just in the last half hour. >> i think apple looks exactly like it did before, it's overbelieved, they have tremendous optimistic guidance. people love it. the innovation has been what i predicted facetiously back in 2012. tootity fruity colors. slightly bigger screens. they're bullish about the new rollout, but i think that's priced in the stock. i don't think i would buy it. i would sell it. >> and of course we know launch days typically are not good for apple shares. >> they typically aren't, but it's been a while since we've saep apple create new revenue strea streams. and with not only new hardware but a potential payment platform, if they can steal some of that from the banks and credit card companies similar to the way that it negotiated with the music industry to develop and build out a slice for itself, then potentially even

payments could be a brand new revenue stream for the company, too. and let's not forget, this is not only an thoupsmen announcem product, it's about revenue and revenue growth. >> you might be excited about something that you put on your wrist or you you carry in your pocket. >> apple is $170 billion company. it will be really hard to move the needle with a new hardware product. and the stock is appropriately priced. yes, it's at the high end of its range. but it is still relatively inexpensive compared to the s&p 500. and it's at the beginning of a product cycle. if you don't like apple's stock here, it's hard to like the s&p 500. because i think fundamentally speaking, the odds favor apple over the next 12 months. over the next few day, who know, who cares. if it goes down, that's a buying opportunity, not selling. >> a lot of bulls would argue payment companies have much

richer multiples than hardware companies and that's one reason they're bullish. >> law of large numbers. it will take a long time before the payment stuff matters. the reason makes such a difference, the tighter apple is integrated in your life, the more important it is and the more you're willing to spend with them. so i think this is very bullish for the long term, but it won't happen overnight, nor should it. if it happened overnight, something weird would be going on. >> and u22 and lead singer bono reportedly playing some sort of role today in the big announcement and that does bring us to this morning's squawk on the tweet. what stunt will apple pull with u2 and bono? tweet us at squawk alley and we'll get some of your answers later this hour. we did want to talk about ali baba. the road show moves to boston after kicking off in new york city yesterday. here is founder jack moss spotted after his speech to investors. and then we'll get back to kayla with the latest.

>> i love these events because you feel like a paparazzi. but i think it's fitting we move from apple to ali baba. the one comparison that emerged in a big way after yesterday's event was this comparison between the founder of ali baba and apple's steve jobs. on one hand, brill yacht. on the other hand, impulsive. it's that impulsive nature that is one concern of investors. profile in the "new york times" over the weekend described in detail a sdegs by jack ma to disregard its board and investors. he was not happy with yahoo! and some of the development of their relationship, so he decided to move a fast growing pavement arm of ali baba into an entity that he controlled. he actually addressed that yesterday unprompted. he said, look, this proved to be the right decision and i think that you will see that down the road. he knew that investors would be worried about corporate governor nance, about the fact that he still holds such a big chunk of

the company.governornance, abou that he still holds such a big chunk of the company. but investors i spoke to said as long as they can deliver and can continue growing at the rate they're growing, then investors should have no problem buying into thissing so. now, of course the road show is moving to boston today. they have meetings with some of these very important long only investors. putnam, wellington, columbia. it will be very important to get buy-in from some of these cornerstone long only investors to buy into the trajectory for this company going forward. especially as it tries to become one of the top 20 companies here in the u.s. by market cap if it does seek that valuation that it is seeking. now, about that valuation, investors here in new york at least said they believe that what has come out in the filing is conservative. history usually proves that it is. when you look at some of the comp ipos to ali baba, we're

talking gm, twitter, facebook, all of these deals has priced upwards of where we initially saw that price range. and people are talking about ali baba potentially pricing in the range of 10% above what we have seen so far. that would put it at roughly 72 bucks. not quite at that $200 billion market cap, but certainly significant jump, guys, from where we are now. so it's interesting to hear already one day in it to the road show people saying i think that underwriters are being conservative given what we've seen out of the company so far. >> interesting. roger, are you involved, would you you buy? >> i'm not involved. and i'm restricted party, so i won't be a buyer. but i think ali baba is absolutely a compelling situation. i follow things i can have a competitive advantage at and chi china a place i can't. so most important is to stay

focused. and things where i have an inside advantage over other investors. china is not one of those places. so i look at it and i have tremendous respect for the people who can make a career investing in china, but that's not me. >> are you worried about ancillary effects on the overall market? >> to me that's just normal activity. if you're amazon, i think ali baba raises important strategic questions but amazon has a strategy of deferring profitability into the future. ali baba has generated what appear to be high profits up to this point. but again, i like to stay focused on the places where i have an advantage. and ali baba is not one of those places. >> kayla, i guess to sum it up, if their mission is to educate investors about that corporate governance and structure, what kind of grade would you give them having started in new york?

>> i think that investors who heard from the company would probably give it a b. they allied some of their nirl concerns. there is still some outstanding, but the numbers that it's putting up, you you just can't argue. wild card still is how it plans to compete with amazon, ebay, u.s. ambitions potentially if it can gain a foot hold in the u.s., that would be just more roof investors can get a part of. >> corporate governor mans ance an overstated issue. particularly among the newer companies, they're all tightly controlled by the ceo. if you're a retail investor, needless to say you have no control. and the notion that somehow concerns of yahoo! are my concerns strike me as unlikely. so as long as they're honest, that's the most you can hope for. if they're not, you have a problem either way. >> roger, thank you for your

time. we have a great lineup for you this morning. as we get closer to apple's big review. tim cook is on speed dial and he's the man you you want to hear from. co-executive editor walt mossburg is here. and we'll talk to some of the top names in the phone industry. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right.

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we a wait apple's big reveal. joining us here is gooi guy kawasaki. your anticipations? >> i think people just want to stand about in line and pay money. open up or wallets and ask tim cook just to leave enough for food and clothing. >> some would argue it's been take long.

>> if they introduce something spectacul spectacular, everything is for given. >> usually we know. but today, there is some real mystery in terms of wearables, if we get anything at all. does that surprise you? >> there is millions of people just waiting. and there are dozens of manufacturers with bated breath not knowing what the competition will do. very exciting day. >> so give me your predictions. all the usual suspects that people say we might get. >> a watch. if there is no watch, that would be a big disappointment. obviously a bigger phone. and i just love mcintosh. i'm a macintosh guy. >> so is it hardware or services company? >> i vote for a hardware company.

a component is the service, the soft warks bwar software, but the industrial design, coolness, thinness, that's what it is. >> making fun of the dell that we have here onset. some of the bear, though, argue that you will have sold iphones on basically half the people on the planet who make more than $15,000 a year. the cycle is already quick. it will be hard to shorten that. you have a saturated phone market. you have to start putting things on the phones that drive incremental revenue. what is wrong with that argument? >> nothing wrong with that argument, but i believe it starts with the phone. starts with the phone. people -- well, particularly apple customers, it is a hardware buy. you want to buy something cool. >> a lot of new management this year. we've talked about jimmy, dr. dre, angela. what do you think that brings to the company? is the day where we sort of see

the fruits of those hires? >> it may be a little too early. hardware cycles are a year or two long. i don't think those people could have had an impact yet. they certainly can have a philosophical discussion. but the roots of apple going back to when i was there in the mid-80s, the dna is steve jobs' dna. and steve jobs' dna is all about elegance, design, minimalist. that's what is there. and i don't think that will ever go away from apple. indeed if does go away, apple is gone. that's the reason we love apple. >> third anniversary of jobs' death is in a few weeks. october 5, 2011. is today the day tim cook gets out of his shadow, is does he n to? >> i don't think there is a need for him to get out of his

shadow. steve jobs, may he rest in peace, did a fantastic job. arguably better than any other ceo in the history of american business. so that's a very high standard. but tim cook has continued the success of apple. and i think it's irrelevant to judge people like that. i think the way you judge apple is the quality of its products. let's see what happens. >> finally, it's been a tough couple weeks regarding security. tim cook's already made some comments. how much does he need to come out again today and convince consumers, convince the enterprise, retailers, what have you that icloud is safe and you can trust us? >> i think he has to reiterate of course that apple is concerned about security. it wasn't so much apple's fault as much as how these stars maintain their constant passwords. so at some level people understand that, but, yes, it is scary, my stuff in icloud.

of course you could make the case if you're stupid enough to put it in icloud, maybe you deserve it. yes, they address it, but it's not a huge sword to fall on. >> guy, have fun today. great seeing you. when we come back, the latest version of the iphone is expected to be huge. so what do telecom companies want to see? we'll ask the president and ce off of verizon virless. wait, wait, wait, it's wait, wait, wait...whoa, does she have special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility.

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when healthcare gets simpler. when frustration and paperwork decrease. when grandparents get to live at home instead of in a home. so let's do it. let's simplify healthcare. let's close the gap between people and care. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

shares moving higher of aity citigroup raised its price target. it says it believes toyota will become a client of mobile eye. william blair also positive on

the company as well. stock up near session highs by about 6.5%. and now over to jon fortt out in sin city. >> thanks. yeah, today a big day for apple of course which means it's also a big day for the entire wireless industry. i'm here at ctia, keeping our eye on the industry from networks to new products. dan mead is president and ceo of verizon wireless. dan, thank you for joining us. i'm of course doing my history check in my head through all the iphone events that i've covered. the iphone 3, every design, every redesign of the iphone, has sold a network upgrade. the 3 sold 3g, the 4, 3.5, now we have the 6. not expecting that to sell a big network upgrade. you how is that going to affect the ecosystem? because this phone tepds s tteo draw customers to networks.

>> i think it's an important day for the industry. what a great legacy of providing value to consumers. their announcement is this afternoon. we'll all be tuned into that. we're excited to see that. they always have something good that makes a difference for consumers. we'll let tim and his team make those announcements. so we're excited about it, though. very important advice partner to verizon wireless and our industry. >> verizon wireless one of the most popular wireless head works in this country. what are customers demanding? is it more around video streaming or more away family plans and the value of connecting so much different devices? what is the key value proposition? >> we're fortunate to be the leading wireless provider in the country and we have a very solid understanding of what is important to our consumers. they want quality of the

network. they want consistency. they want the ability to help manage their lives and the tisch ci efficiency of their families through the wireless devices and the verizon wireless network provides that. video growth is a very important thing. connection with family in terms of text, data, using social media through mobile devices. and that's very prominent in what you will see with the show here today. >> so what is the place that you see for tablets and wearables? because we're starting to see watches come out. samsung's gear s has a 3g connection. tablets have had wireless connections for a wire but tend to get used on wi-fi more than anything. what is the role of those devices going forward on wireless networks? >> we think that we're at a very embryonic phase with tablets as well as other devices. lifestyle devices that you

mentioned, tele mattic sflt. there will be explosive growth in front of us. we're seeing tablets, sure, we see a lot of consumers using tablets on wi-fi, but we're also seeing continued growth in terms of the rlt network. and we think that consumers are going to be using tablets more and more. it's one of the big growth drivers of the industry. in terms of fitness and lifestyle and energy management, there are so many different things you will see at our show today in terms of home security management, hvac management, a lot going on. a good deal of work going on in terms of telemattics and what you can did safely inside the vehicle. and you will see that from some of our panel today. >> and you mentioned a lot of about you're the chair of ctia. you talked about wireless in-car, in-home and the wearables. you're saying all of that is in embryonic stages. what do you think is the main

takeaway that we will have from ctia this week? >> the thing that we will take away from the show is the possibility. the possibility of what consumers can do with the wireless network and we're just scratching the surfaces on this. so you're going to see full capabilities in those area as. health care management, energy management, vehicle management, homes. as we said, in show brings it all together. and we're extremely pleased with this and we hope that you'll be able to get out on the show floor with us so we can show you some of these things personally. >> absolutely. looking forward to that. dan mead, president and ceo of verizon wireless, chairman of ctia. we thank him for joining us. and those are all themes by the way we expect apple to touch on, car play, pole ssibly an iwatch iphone. lots of stuff. >> the world getting increasingly more connected. we thank jon fortt for that.

we have a quick news alert for you. president obama will deliver a speech on his strategy for dealing with isis, of course the islamic state in iraq and syria. that speech will take place at 9:00 p.m. eastern tomorrow night from the state floor in the white house. all right. say good-bye to lost keys and codes you you can't remember. a look at the latest in bluetooth enabled security devices and the chance to decide which one you'd fund. >> noke, when clicked, the device searches for your smartphone and about if it's nearby, it unlocks. the app clous you to share your key with others. the campaign's goal, $100,000. it's received more than $514,000 in funding.

oval is a small sensor that can be used to protect our monitor almost anything. the oval can detect changes in motion, acceleration, light, moisture, temperature or proximity. and alert you you via smart phone owing. the campaign's goal, $40,000. so far, it's received more than $38,000 in funding. who should be this week's tech crowd leader? vote now at cnbc.com/techcrowd. you have a couple more days to cast your votes. wes want to get and you quick check on the markets. another day in the red following the lead of europe. dow down 56. s&p down nearly a third of 1% following credyesterday. nasdaq into the red by 13. we're watching shares of net flex. they are in the greene after rbc reiterated hits rating at drought performed.they are in tc reiterated hits rating at drought performed. mark mahaney raising his price target to $600 a share.

$485 at this hour. shares of amazon slipping this morning. yesterday remember amazon cutting the price of its fire phone to 99 cents even with a two year contract from at&t. that means of course it's not helping the stock. second biggest loser on the s&p. that stock down nearly 2%. let's bring in simon hobbs as we just had moments ago the close in the uk. there's a lot of political moving and shaking going on. >> and an awful lot of red on the charts. if you note portugal, spain and greece have been particularly bad on the selloff. third straight session that europe is in negative territory. a lot has to to with the dla, a lot has to do with interest rates. you had fed economists pointing out maybe the market was behind expectations on when they might raise interest rates and importantly rates have been rising in europe again today. so a lot of the banks as the

peripheral bond markets sell off are in negative territory. and at the same time, a lot of those businesses that are involved in dollar denominated commodities like oil are also in negative territory today. so that's the broad picture. the wild card continues to be next thursday's independence referendum in the uk for scotland. latest we have on that it is too close to call. you will see sterling is actually well supported today. that's partly because the bank of england governor mark carney speaking at the trades union congress has given his clearest indication yet that interest rates will rise in the uk in the spring suggesting that will bring inflation back to 2% by the end of the forecast. they will be the first major central huang to raise rates and that is sterling supportive befo befo. the question the thok on that could have in other areas.

post notably in catalonia in spain. actually one reason why driven yields higher in spain today. we're up about 16 basis points over the last few days. not huge. not melodramatic. but it is higher as you just got the selloff on the bonds, arguably people perhaps moving back into the treasury market here. you see it in spain, as well. it's not just -- i'm sorry, you see it in italy, as well. not just a spanish cat taalonia problem. and another big story of the week, yields have also been rising centrally in germany with the ten reyear bund. that also one of the major developments of the week. so in summary, you have the stock market in negative territory, you have a selloff on the bond market and a lot of that has do with the dollar. >> but still nearly historic lows in the bond market. >> of course that's the biggest

picture. when we come back, apple's big event starts in little over an hour. but walt lossbu burlossburg mos been filing report since late last night. >> hardly anyone here. wonder why. >> walt keeping busy. he's the man you want to hear from whenever apple has big news and he will join us on "squawk alley" in a moment. plus u2 and lead singer bon though repobono a role in the announcement today. that brings us to today's squawk on the tweet. what stunt will apple pull with u2 and bono? we'll get to some of your answers later. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price,

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crowds are building here for the apple unveiling later on this afternoon. few tech reporters know apple quite as well as walt mossberg. he was at the original unveiling of the original iphone in 2007. he joins us here in cupertino. always good to have you. >> good morning. >> you wrote earlier in the year that aem was in the midst of what you called a post-jobs reset. >> right. >> ipad, revenue was going

negative. mac growth was minimal. ipod was going to a museum. is this the reversal? >> i think what we're seeing today is the first kind of public fruition of till cotim ck cook's apple. he's been running it for a couple years now. and today we'll see the first iphones that were designed really in the post-steve jobs era. and first two categories since the ipad. >> phones are half of revenue, so that's their bread and butter. but everyone wants to talk about the watch. which one should we be talking about? >> i think we might be talking about payments. now, all of this is rumored. i'm not confirming anything. i don't know. i don't washing for apple. but if they did mobile payments and they did it right, i can imagine that would be a really

big deal. >> what do you need to hear to know at least initially -- >> you need to hear that they have a lot of the right partners and whatever method they have chosen to enable it on the phones really work. because google's didn't really work very well. >> we recall what they did with the music industry prior to the launch of hardware. before you laurp tyou launch th have to make sure the record companies will sell songs for 99 cents. so it involves with health care company, retailer, credit card companies? >> if we're talking about a wearable, you have to talk about health care companies, if it's whom control, you have to deal with those guys. but on payments, you have to deal with bank, credit cards and merchants. and we've reported that they have cvs and walgreen's aboard. think how many go to those two chains every single day. >> high frequency transactions.

>> yeah. >> this terms of dealing with health care, it's been reported about working with health care companies trying to get that data managed by maybe an ibm, someone who -- >> we know they have been to the fda. i think at their event in june, they announced the mayo chin he can was involved. when they announced the software part of it. if the wearable is a watch or something else that measures your heart rate, your other fitness measurements, then having great partners matters. >> you were critical of the company on security. you argued that if they're such great innovators, why haven't they innovated on security. do they need to revisit that today? >> i don't know if they will revisit that today because tim cook did make a statement the other day. their position is their system wasn't violated. but the fact that they were allowing unlimited numbers of guesses of what your password

might be you allows this kind of brute force attack. look, apple has been great on privacy compared to most of their competitors. not enough people say it. it is not their business model unlike some other companies to collect information, use it for advertising. their business model is something else. but they have to pay if there is particularly if they're going into payment, they have to pi pay tremendous attention to security. >> if this is the first sign of tim cook's apple, what would jobs say about it today? >> i think he would -- i don't know. i think it really depends on how the presentation goes, what the reaction is to it. but he played long games, steve jobs. and i think tim cook also plays long games. so i know you guys will be all over the stock. and i have no idea what the stock is doing right now or after the event. i know steve jobs wouldn't have cared at all about the stock price today or next week.

and i'm pretty sure tim cook doesn't either. >> it's going to be an interesting afternoon. >> long term, yes. >> always good to see you, walt. thank you so much. walt mossberg joining us. up next, we will talk to the man who brought the original iphone to at&t. ce off t echl ceo of at&t mobility is here next. requires precision and anattention to detail.g it takes knowledge, hard work and a plan.

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coming up at the top of the hour, one of the most bullish strategists just raised his price target. why? we'll ask tony dwyer. and we have your apple playbook just ahead. and the three things you need to know ahead of today's event which kicks off in a little more than an hour. plus, what is going on with mcdonald's? are you loving it? some of our traders are not. we have a fast food debate on deck all straight ahead. jon fortt, we'll see you in a bit. >> thanks. while we a wait the big announcement from apple, a couple of announcements coming out of at&t this morning as they unveil they will carry the phillip 2 watch time x, iron map data and intel bracelet exclusively.

so what does the future hold for wireless carriers and wearables? i'm here with glenn lurie, at&t mobility. first interview if your title. congratulations. >> thank you. appreciate it. thanks for having me. >> you also go way back with apple. i believe it was 2005 when you first started talking to them about the possibility of the iphone. you are in charge of that relationship. how much has apple changed over those nine years and how important is today's announcement to them? >> well, first of all, i think that they have changed a lot. we first sat down with apple back in those days, i think they were still trying to figure out where the wireless industry is going and what they want to do in the business. and obviously they have been unbelievably successful. every launch they have had has been better and better. as far as what is coming today, i'm not sure. i think there are lots of rumors out there. but we're real excited about it. obviously we have the longest relationship, the most iphone

customers. so he have time they innovate, it's terrific for at&t. >> payments is an area where a lot of people are expecting apple to go, but apple tepds to struggle when it's not in full control of the ecosystem and of course lots of merchants and others to deal to deal with here, and plus the credit card is really convenient versus carrying around a phone and i don't know if people are going to ditch one for another, and at&t is working on its own paymentm is, and how quickly do you expect the digital payments to take off? >> well, we have said that we believe that the digital payments are real. we want to give the customers a choice. we have people telling us that i'd rather forget my phone at at home than the wall -- the wallet at home than the phone left at home. so we believe it is something that customers want, but again, it is going to be taking time,

and getting people comfortable utilizing that, and we don't have any idea what apple is going to do, but we have others to try it, but it is going to take iterations to get there, but it is real, jon. >> and before your big new job, you were in charge of the connected devices beyond the phone also. which of those e areas is going to be accelerating the fastest? you have had a lot of traction in home, and what is going to be the most lucrative? >> well, they are all hugely important, because they are important to our customers, and this is about mobilizing people's lives. >> which is the fastest trajectory? >> well, it is hard, because we have made a bunch of car announcements, and very, very excited about the connected car and great announcements with partners like gm and bmw and audi and others. >> and which one -- >> well, jon, i want to point out that the announcements with imad are all about the connected wearables and stand alone and

not connect ed ed to the blue t, and the bluetooth connection are terrific, but the future is the stand alone device. and we made an announcement about digital life which is the home automation service so that the platform was built so we can go into other places, and go into the care place or the ageing in place, and give the tool tools to caregivers and we are excited about that opportunity, and as well, we are going international, and license our pl platform and we announced the first partner in telephonic yesterday, and so, jon, they are all huge and about mobilizing people's lives and giving them the tools. >> well, you can't pick a favorite kid apparently, but we expect to hear from apple on all of the fronts, so we will see which consumers adapt the fastest. back to you. >> and to have the thought that glenn lurie has no idea what apple is going to unveil is going to make the announcementen bigger.

and when we come back, bono is going to bring something to the announcement for apple. and so what is the stunt that apple is going to be pulling with bono and u2? we will find out with those answers on "squawk alley" next. whenwork with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration. with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile.

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in cupertino ahead of the apple unveiling, and we have covered it three ways to sunday. i'm here in cupertino and kayla at post 9 and jon at the conference in las vegas. and so we get to u2 and bono is playing some sort of role in the apple unveiling today. and it is looking at what stunt will apple pull with u2 and bono, and the new single "one more thing" maybe unveiled and this one is, i will getting an iphone 6 and you will be, too, and insert a groan here. and possibly adam lavine, samsung's spokesman joining them on stage. >> it is amaze hough they are staging this and also i think that the wearable is going to be the star of the show.

>> kayla, some thoughts from you as we zip it up? >> well, one thing that we have not heard in all of this is beats, and could the potential be a wearable headphone or something a that the company is rolling out? so that could be the wild card, too. >> and by the way, the beats deal closed the biggest ever $3 billion, and some people think that as a result we might see dr. dre or jimmy lavine as well. we will find out. wait, wait, wait, it's wait, wait, wait...whoa, does she have special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am. equinox from chevrolet... the first and only car company to bring built-in 4g lte wi-fi

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and a free 30-tablet trial. welcome to the halftime show, and two big stories front and center. the countdown clock and less than one hour to go until the apple product unveils in california. we will take you there live to set the stage. and we are following the big call by one of wall street's bullish strategists who just raised the stocks again and raising the question if wall street is getting