center in the arts theater in san francisco. just two hours from now, apple will unveil what the apple watch can do. >> and it's also 11:00 a.m. here on wall street and "squawk alley" is live. >> this is one device. and we are calling it iphone. >> and we'd like to show it to you today for the first time. and we call it the ipad. apple watch is the most personal device we've ever created. >> out on assignment today.

i am in san francisco outside the apple event that is set to kickoff in just a couple hours. here with me is the dream team, good to have you guys. >> great to be here. >> early monday morning where we've lost an hour. >> yes. spring forward according to apple. >> john fort still has everything covered along with simon hobbs and steinberg, ceo of the daily mail north america. it is a huge day for apple as we said in just a little under two hours from now, the company is expected to fully reveal its plans for the apple watch. the company's first new product line in five years. it's also the first new product launch under ceo tim cook. but the most important will be how much is it really going to

cost. how much will it cost? >> right now the numbers are about $349 which is a typical apple price. >> that's just for the cheapest one. there's three levels made of thee different metals ranging from aluminum to stainless steel. >> eddie q was spotted wearing the stainless steel watch other the weekend. there's really no news for the high end. >> that's right. the gold one? >> yes. >> the gold one is going to be thousands and thousands of dollars. i think some people have figured out if you took the gold and weighed it, it would have to be thousands of the dollars. i want to bring up a point from history, it goes to that opening clip. when steve jobs introduced the iphone, it was 600 bucks

subsidized with a two-year contract. within a matter of months, he had to cut 200 bucks off the price of it. it will be interesting to see. apple does command premium prices. >> and where it's going to sell too. it could be in asia as a status symbol. it will be more early adopters and then a status symbol to have. and then you'll get a spade of stories about them getting stolen off of people's wrists. >> it's interesting for a company. how much of a signal is this for apple's right-hand turn into the high fashion market. >> i don't know if it's so much a right-hand turn. apple has always paid attention to design and what it communicates about the user who chooses that product. i'm thinking also this is significant not because it's apple's first new product in several years. it's the first new operating

system i imagine that this apple watch is going to have since 2007 when we first got a look at ios. this is a new category of new product launch all together, right? we haven't had something like this since the iphone and the ipod before that. how significant do you think that is? >> well, you know, we don't know a whole lot about this watch os yet, john. if i had to guess, i'd guess it's some kind of a variant of ios which itself in the beginning was a variant of the mac operating system. if they establish a platform around this, they can do other kinds of wearables and other kinds of things using it. i think it's really, really important also to think about the apps. they're going to rollout, i think a bunch of third party app developers. if they show a much broader

range of stuff on this than we've come to expect from watches, that could be significant. >> it works closely the phone. some people are calling the watch a peripheral to the phone. >> the attach rate to me is really a question that hasn't been explored that much. that could only really contribute on a $200 billion revenue base. the question to me really is how many more iphones is this thing going to sell. >> interesting. >> this is just part of the apple ecosystem. you're creating ecosystems the way android is. apple is trying to lock you in the entire way so you live the apple lifestyle. >> she's exactly right. this is about keeping you in apple world. >> and here we are. >> can i just come in here?

i'm not clear exactly -- and help me out here. i'm not clear why i would buy the apple watch. i'm not sure they've articulated yet the main reason for having it. it could be something as simple as for example suggesting it's going to bluetooth music to your ear buds directly without a white wire. it would sell out because people would think that the white wire was old fashioned. why do i buy this watch? >> well, you need to work out more simon, but that's another issue. it's because you can do anything with it. i think the question will be the apps on it and what you'll be able to use. if it's super limited, it's going to be a problem. i think a problem with a lot of the other things, they're just health. some people use it for messaging, some people use it for health -- we don't know. that's the thing. >> i'm serious. this is not speculation.

it's going to be banking apps on here, there's going to be productivity apps on here. i have no idea how useful they'll be, but this is in the works. >> that's an interesting point you bring up. ahead of today's event. some execs have been making the rounds. eddie q i mentioned. he talked off the cuff a little bit about apple pay. >> you've seen a lot of these things where you're wearing things that cause other things to happen so you don't have to pull out the phone. >> and the apple pay part will also, if i understand correctly, allow older iphones not super old, but like the last generation of iphones which don't do apple pay now, if they buy an apple watch will be able to participate. >> i think the other issue is whether women or men will wear

it. the question is, i mean, i wear a watch every day. i find a lot of these things too heavy. that will be interesting. >> and so on her point, they're doing two sizes. >> john? >> simon, the real question today is not the price. it really is about the apps today. if you come away and say wow, there was one app there and it gave you an ah-ha moment, that's what we're looking for today. >> none of those would be an ah-a moment. >> you haven't seen them yet. >> i think we're under estimating the watch bands. this is the first technology product, this kind of mass market that you're actually going to have on you, you can color coordinate with your outfit. it's going to be there. so apple can get maybe an extra hundred, 200 bucks depending on

the watch band if you want to wear it formally. >> dangerous position to be in. what do i know. >> this could be the fashion handbag of technology. >> it might not be. >> i read one analyst report that said from a fashion perspective, the watch either needs to be invisible or gorgeous. so stunning that you can't help but have your eyes drawn to it. design obviously a huge component of today's launch. last week, we sat down for an in-depth interview with the financial times. with a bigger battery, it could be heavier and more cumbersome and less, quote, compelling. >> the other thing is design aside, it's got to work easily. that's really the thing. if it's a pain and yur sitting here irritated with it, i think ease of use is possibly the post important thing. >> you're going to hear along

those lines about the crown. that's that knob on the side. but they're using it as a navigation device to try to do what kara said. >> if someone like my mom cannot use it easily, it's going to be a small group of people that use it. >> so the stakes are really high for apple, high for tim cook. just as it might build their ecosystem, it might harm it if it doesn't work out. >> the description of the face as retank lar or square instead of circles, the list, i'm wondering while we're talking about functionality before we leave this topic, there are reports that app developers are being told to build apps that function for ten seconds at a time. will that work and how compelling is an app that you only look at for ten seconds? >> it could work.

we have to think about the profile of the people who are going to go out and buy this first watch. these are the early adopters who are the fashion forward. they're going to be somewhat forgiving of this thing. so this watch just needs to function correctly. they don't need developers overtaxing it. that's why you see this, i think. >> we'll have a lot more throughout the hour. certainly that's the big event today. you guys are going inside. >> going in. we're going to blog up a storm. the olympics of blogging. >> we're already seeing a line forming outside here. i know you guys want to get in that. thanks so much for joining us live outside the event today. >> great to see you. coming up on "squawk alley," we have plenty more coverage of the apple watch tomorrow morning. one analyst says this is the most important event since the ipad unveiled in 2010. he'll tell us if he's buying or

selling apple stock. and the watch could be huge for a ton of companies other than apple. the first major investor in paypal is with us live. and the ipo market has collapsed in 2015. they will join us to explain exactly what that means and why -- why that is happening. that's coming up later on this hour. "squawk alley" is back in just a moment.

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>> markets rebounding so far this monday after of course friday's selloff. the dow is up about 95. it's interesting that the energy sector is the top gain today as west texas pops back above $50 a barrel. shares of blackberry slipping. goldman notes the shares are up about 60% since john chen took over back in november 2013. it's now in a situation where losses will widen in the years ahead. and amazon also falling today after sun trust downgraded the stock to neutral. they say amazon has moved past its target price and may have more difficulty in the future. >> yeah and spring forward isn't just a reminder that daylight savings time is here. we could be hearing a lot more about the apple watch today, you

think? he was the first venture investor in paypal and among others. john, thanks for joining us. when the first iphone came out, the game developers that got on board made a whole lot of money. in the companies that you work with, are developers working hard with the apple watch hoping for the same kind of effect? >> i think -- that's a great point. in the beginning when it's sort of a green field opportunity, the early developer who hits it with something that defines the basic use case or the primary use cases for the device, they're the ones who make all the gains. it's a tradeoff. you're looking at the fact that there's not many of these devices available yet, but if you can be the one who catches the wind, you can put a distance between yourself and everybody else. that's the tradeoff that every developer has to think about. >> are you telling them jump on

this apple watch band wagon? are you telling them sit back and wait until the users are there? >> unless your in the core group of developers that have been given special access, it's kind of hard to make a gamble on this to put a lot of development resources on it. i think you're better off waiting to see what happens over the next six to 12 months. i know that everybody's excited about today, but really it's the second year that really tells you whether this is going to become a new platform. and i think there's plenty of time to figure that out. >> just on the vibe, when google glass came out, there was a fund spun up to do a glass fund. when the ipad was prereleased that's when flip board got started. are there any startups trying to raise money on the back of apple watch right now? >> there are developers who are -- have built some early

apps for this. there are developers who are part of the apple program that's about to be unveiled today. so there's definitely a buzz around a handful of companies. you make a great point. i think that you need to look at is this something that's going to make a difference in daily lives. google glass was really a very rough prototype. although people jumped on that band wagon, i think this is different. everyone understands what a watch is. the question is, are they going to be able to sell enough, is there going to be enough functionality to hold people onto this new platform. >> john, what are you expecting in terms of the spread of how this watch is accepted? internationally versus domestic, low end versus the mid-range, say the $700 model? any predictions? >> the thing that's really

interesting to watch is the demographic. this is a fashion product. and apple, it does have sort of a sense of fashion versus its competitors. they're wading into a different territory. being relevant to a fashion discriminating, primarily female audience versus your tech male, you know, fan boy kind of audience that's typically what buys most of the first apple products, that's what i'm looking for, secondly, what do you do differently in your store? when you go in and buy a piece of jewelry for your wife, it's not typically the way you envision an apple store today. i'm really interested in what this means in their retail. i'm interested in how they market it. i think the demographic skewing towards women is kind of going to be the most interesting thing. >> i can help you on the store front. reporting this morning they'll

have set aside areas where you by appointment can see sales staff and go through the watches. on the broader question of the strategy, do you think tim cook is doing the right thing here with all the fashion people that he's brought on board, is this the correct strategy moving forward to grow what is already a huge business? >> it's hard to argue with the stock price. so i think tim cook has made a lot of good moves. the entire industry is saturated with smart phones. so what do they do next? this is a pretty logical step. obviously the other area long been conjectured is apple tv. if you look at the categories that fit the brand of apple and the expertise of apple, this and tv are the kind of two most obvious ones. >> what about the car? that is a captive audience. that is an ecosystem. that too seems to be -- all beit

for dashboard. >> yeah. well, the thing to remember about cars is the volume of cars is not that great. when you're in the smartphone business, you're literally in the billions. new car sales is in the millions. so it's a very different category. obviously it costs a lot more money, but then you have these incumbents to deal with who move even slower than the mobile carriers did. cutting those deals and getting control of the new operating system in a car, that's a pretty tall order. i don't think it's impossible, but it's pretty complicated. i wonder what the share that apple gets out of it is is going to be. the smartphone industry, they're taking almost all of the profit of the entire industry. how do they make that sale to car manufacturers? >> yeah. indeed. they might have to sell gas if they sell cars. >> right. >> thanks for joining us.

up next, snapchat is already worth $19 billion but could soon partner with a new high profile investor. we'll tell you which one coming up. plus, as we countdown to apple's event today, we explain why this could be the company's most pivotal day in five years. "squawk alley" will be right back. get a about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪

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welcome back. in case you missed it, senior snap chat management held talks with saudi prince on potential cooperation on sunday. the meeting comes as snap chat continues to raise funding valuing the company at up to $19 billion. kingdom holding owned by the prince release add statement saying, on the agenda of discussions in the technology field. and it's an interesting pairing. snap chat, this kind of

teen-fueled app and saudi prince. >> kingdom holding gets into every one of these major deals. i don't know why they released this or made it public. maybe they thought he couldn't go over there and hold a meeting without ate leaking. >> a lot of the middle east countries are very anxious to raise the profile of their technology sectors. i suspect it's from him or kingdom holdings. that's the broader territory. they would dearly love to have more technology incubated at home. >> have to wonder if snap chat is going to do anything with the apple watch. this is an interesting i think place to see things. >> i very much wanted us to convert at daily mail for the watch. being in these launch events and being there first is a lot of

resources. it typically proves not worth it. >> did buzz feed do an early release? >> no idea. >> the ipo market is collapsing in 2015. the firm's co-founder will be with us to explain why. plus shares of apple seeing a nice gain ahead of the apple watch announcement. 1:00 eastern. we will have some answers next on "squawk alley."

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hi, everybody. here's your cnbc news update at this hour. consumers took a bite out of mcdonald's sales. same store sales fell 4% in february. it comes just a week into the new ceo's tenure. tesla announced plans to cut jobs in china. no word on how many positions are being eliminated. the nation's three biggest consumer credit reporting agencies are making big changes to improve the accuracy of their reports. they'll have trained staff to review consumer complaints. and president obama is expected to announce a program to provide more americans with training needed to secure jobs in the high tech industry. more than 300 employers have signed onto train and hire high tech workers. that's your update this hour.

let's get back to "squawk alley." welcome back to "squawk alley." we're coming to you live this morning from san francisco where in just about 90 minutes, apple is set to up vail new details about the apple watch. our next guest says this is the company's most important product event since the ipad. apple analyst brian white. brian, good to see you. why do you think this is such a defining moment for apple, it's first product launch in a new category in five years? >> it's very important because i think there's been a lot of talk about apple not innovating over the past couple years. not just with the smart watch, but the bigger category of wearables. >> there are broader questions

about whether consumers actually want to wear a watch, whether they will pay for a watch this expensive. last year, 4.6 million smart watches shipped, the lowest estimate on the street is more 8 million. people think even in the bare case, apple is going to do twice what the entire industry did this year. >> we put out 26.6 million in the first 12 months. beating the ipad. >> how confident are you though that it can get to 20.6 or even half that? >> we used a conservative number in my view. i think apple has ambitions to do twice that. we put out a conservative number. we used a conversion rate of the iphone of high single digits. so ultimately, i think the apple watch to iphone conversion ratio more like 18%. we started out conservative and we'll see where it goes.

>> do the math for me on this. it's a debate whether or not people are going to be personally excited about it or not. if they do $8 billion on this thing. $400 average selling price at 20 million units. when does this actually make a difference? >> so we look out -- if you look out at fiscal '16, we have 25 million units. this is a very, very high margin product. so i know smart watch companies out there talking over 60% gross margin. on apple watch, we used an assumption of 54%. we took a conservative cut again to the numbers. i think it's a great way for apple to have another financial lever in the model. >> brian, i'm counting back a couple years to see how many iphones apple has sold. if my math is correct, i'm

counseled i counting over 350 million units. does that sound right? that's a lot of units of iphone that they have out there in the market that could be then compatible with an apple watch. now, when you look at that kind of a number and the uptick rate that you expect of the watch, how much should we expect that watch to have legs assuming there's a decent conversion rate there? >> i think some talk about -- in september talked about over 200 million iphone 5 and 6 had just been launched. so the number's bigger today. i actually look at itunes users. that's an ecosystem of 800 million users. that's an ecosystem that apple can really tap into. people that have iphone 5 through 6 can use this as well. so i think the opportunity is more looking at the itunes base

and that's significant. >> did you say an attach rate of 18%? if so, walk us through the comps you're using to get to that. >> we used a conversion rate of 18% longer term. in the near term, we're using about 9% conversion rate. that is the number of apple watches to the number of iphones sold. ipad has a conversion rate of 35%. this is a very, very in my view conservative cut. >> apple watch is getting much of the focus today. but there's also expected to be another product released today. potentially a mac book air. is that just icing on the cake? >> just icing on the cake. apple brings everyone out to these big events. you have so many people here, they take so much time to put them together, they need to talk about other things. i think there's a lot of topics apple can talk about. the driver today, the thing that's going to move the stock

over the next year, two years is going to be apple watch. >> what disappear l look like in five or ten years? this is a big, bold move into an area in which they've not sold before. there's talk about doing something within automotives. there's the beats acquisition. where is tim cook taking this company? >> that's a great question. where is apple going. i kind of look at the world, everything is becoming a computer. our tvs are going to become a computer. obviously our phones have become a computer. the apple watch is a computer. apple digital ecosystem with hardware, software, really is a different research ya tore. we have talked about personal robots longer term. so me, that's kind of a no-brainer. we have no data points that indicate apple's doing that. with their capabilities, it

makes a lot of sense. >> we'll get our first glimpse in just a little over an hour of where they're headed in the time keeping direction. appreciate you joining us this morning. >> thanks. when we come back, we're taking a look at the live video app taking twitter by storm. we'll do a live demo to show you what we're talking about in just a moment. but first, rick santelli, all the way over in chicago, what are you doing today? >> of course the first day of quantitative easing, we're going to be watching what's going on with the euro currency. are they called for? and we're going to break into how much transparency i found on the first day trying to stay ahead of the purchases by the ecb. hear about that, all after the break. e moderate to severe rheumatoid arthritis like me, and you're talking to your rheumatologist about a biologic... this is humira. this is humira helping to relieve my pain and protect my joints from further damage.

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coming up at the top of the hour, we have a great lineup of market experts for you. thoughts on when the fed really is going to move on rates. tech analyst bob peculiar defending his downgrade of amazon today. and we're counting down to apple's big event with one of the biggest bulls on the street. we will find out. see you in about 20 minutes. >> we'll be there, scott. in case you missed it, a new app is taking twitter by tomorrow. it's called meerkat. the idea is simple.

you can set up a video live stream. tweet will notify followers that you're broadcasting. it redirects followers to your feed where they can follow along and comment as they watch. popularity has been soaring meanwhile with numbers of streams jumping 100% late last week. i tried this for the first time from the madrid airport. interesting experience. immediately a dozen people jumping on commenting on how it looked. it's a kind of snap chatty video experience. once you end the session, it's gone. >> really? >> the link doesn't show -- >> i like that idea. >> you can choose to save it to your fun. just like snap chat. but it has to be viewed live at the moment. >> it's deeply embedded into twitter. i can't believe quite the pickup it's gotten.

i'm not clear how much is outside. i don't think this thing lasts six months independent. >> what are people streaming? >> bunch of random stuff. a friend of mine, howard lerman was filming in his office last night. >> out with dogs. so, you know, you never know what you're going to get. people can post a little tweet that says what they're doing or might just say live from san francisco and you check out what they're looking at at the moment. >> how exciting. let's get over to rick santelli. >> good morning. we all know that it's march 9th today's the first day of the ecb purchases. we are going to put up a chart of where most traders are aiming to try to ongoing trading strategies. they already had their preqe

strategies. some of those yields continue to be profitable, price going up and yields going down. it certainly seems the currency's been an easier trade. the chart you're looking at right now starts in 2000. it's a monthly chart. goes to present. you can see why many are calling for parody. let's switch gears. this is basically the monthly chart you were looking at that started in 2000 and ends today. now, the notion of will we will able to get to a one on one, there's nothing on this chart that i see that would prohibit that from occurring. granted, normally i give you a lot of different retracement levels. you don't need to do a whole lot of math. we had very interesting head and shoulder formations and a whole lot of bottoms that occurred slightly above 120. the fact that we violated it the way we did and behavior is what

we look for this these charts. of course, it's very difficult to take into consideration the kind of management style that the markets are forced to submit to by central banks. but certain forms of behavior are the same. parody, i definitely think it's possible. what we learned today is the ecb bought securities from germany, italy, belgium and france. listen, i'm not a big fan of many of the programs that have been done since the crisis by the fed. one thing i can tell you is that their reverse auctions, which is the way they purchased on quantitative easing, which went through primary dealers, gave you the breakdowns as to which securities they'd be looking to target, then had an official web side that showed you all the holdings so you could clearly see. i'm not saying the ecb isn't going to get more like that

overtime, there's various wire services that have special pages to keep track of this. but i still don't see a one stop shopping. what i saw everywhere was something like this. a report published each month with specifications on the amount and what kinds of bonds have been bought so far. we're going to continue to monitor. back to you. up next, the ipo market in 2015 is collapsing so say the ipo experts at renaissance capital. the founder is with us. up next on "squawk alley."

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now with the you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more.

nasdaq touched 5,000 last week. silicon valley remains of course on bubble watch. and a new warping today from the nation's capital. they say the number of ipos have dropped 35% from the same period a year ago and proceeds raised so far are down 44%. joining us now after helping ring the opening bell this morning, katherine smith. >> good morning. >> that's a tough assessment of where we are. >> by the numbers, it looks like things are pretty bad. and some of the reason is that a lot more companies are waiting longer to go public. we know we're counting over a hundred countries at a billion plus valuations waiting includiinclude ing uber. so the numbers are down and there are a lot more companies

waiting in the pipeline. however, i would point out that we are comparing to a strong year in 2014. it was a record year compared to what we had seen -- had to go back to the internet bubble. the comparisons are pretty rough. and also remember that the energy component of the ipo market is way down. and a year ago, there were an awful lot of energy companies that raised a lot of capital. so the comparisons are a bit more challenging. >> how much of this might be also because of the quality of the issues that really want to come to market right? ube and air b&b are able to get plenty of private capital raised. we started to see a few companies whose numbers didn't look quite as strong as the others we saw a year ago. >> the ipo market is a price discovering mechanism and investors are kind of selective.

they want to see the path way to profitability for the companies. even though the large ones are staying larger, let's face it, their idea is to turn around and either sell or take the company public. it's their objective to do that. i would point out that in the technology side in particular, because we always seem to focus on that, so far this year, the technology ipos haven't done very well. you want to look at the ones that are doing well. it's only up 35% from the ipo price. and max point, an ad platform that came public last week dropped 15% out of the box. so those have not been good. on the other hand, the shake shacks have performed well. >> to say the at least. >> and the biotech sector. >> these private rounds, that's the crux of it. when you look at a a company

like box, raised at a higher valuation and went public, if you look at how the private investors performed net-net, it's actually fine. the problem is just these companies staying private. that's the whole problem, right? >> it is. but remember that with new companies all the performance doesn't happen just on where the stock is trading. all these investors are still waiting to monetize their returns. these stocks have to hold up to look at the true return from the private investments. so those stories haven't played themselves out of. i think you have to have some concern about how many are in the pipeline. the news of the death of the ipo market is premature right now. >> nice to see you. kathleen smith joining us there. >> and we're a little over an hour away from apple's big event. what can history tell us about how apple stock does on the heels of launches like this one.

dominique chew has been looking at some of the numbers. >> yes, john, we asked our partners to look at the numbers and crunch them around big apple product launches. here's what we've come up with. since 1998, apple's had nine first generation product launches. the first iteration of laptops, ipad, iphones that sort of thing. which is what this apple watch should be here. over those nine first generation launches, the average return of apple stock is -- we'll call it flat. so nothing really happens here on the announcements on aggregate. over five days later, we're down 1.5% for these product launches. maybe not as much about what's happening here with this product. if you look at just the iphones, just the iphone affect themselves, this is where things get interesting. it drives a lot of their

business. average returns here actually up 1% and still up about 2% five days later. the biggest one-day gains we've ever seen for these first generation type launches, 8% back in january of 2007. the second biggest was a 6% gain on the day they announced the mac book pro. those are the benchmarks some traders will be watching to see if the apple watch can surpass that six or 8% one-day gain that we've seen on these product announcement days. back over to you out in san francisco. >> yeah, but apple has about 4.5% to go to be back at that all-time high. thanks for putting that into perspective. when we come back, the countdown has begun to the apple watch event here in san francisco. final "squawk alley" predictions in just a moment. we'll be right back. e

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welcome back. in washington where the obama administration just announced new sanctions on venezuela. the president putting out an executive order just a few

minutes ago announcing the targeting of seven specific officials have have been involved in kupgs or human rights abuses there. the united states will continue to target those individuals and the treasury department is authorized to target additional individuals. those people's assets in the united states will be frozen and prohibited from traveling here no the united states. they will be able to add new people in venezuela to the list of targeted people. kayla? >> all right. thanks to much for that update. we are in san francisco outside the center for the arts where we are watching that apple event, apple watch event that's going to kickoff in just a little over an hour. joining me with predictions is our own josh lipton. our eyes and ears inside the theater. we've seen them come out on the record talking about the apple

watch, could this be the day we see angela aarons out front. >> the retail push is to critical here. they want answers about how exactly to move this product. the sales people, right. how do they make sure the person's getting to the right product. >> it sounds like it's going to be a white glove product, it's the way it's treated within the stores. how important is it for apple to establish that this is very different from google glass? >> i think it's critical and you've seen them already try to do that. the 12-page spread in vogue for example. the message is obvious. this is luxury, this is glamour and this is cool. you got to be able to do that. you want the appeal to be more that just the tech fans out there. so far android wear devices, only 720,000 shipped last year.

>> there have been screen grabs of the platform already apparently selling what looks like an apple watch. so there will be people who will be watching this closely. developers also, the cottage industry of people who make iphone cases. do you think that accessories will all of a sudden be huge for this or do you think it's going to take some time for that market to build up? >> i think they're going to be focused on accessories a lot. another reason you could see them come out today to focus on them. we already see some of the survey work. some of it by morgan stanley has shown the interest here is greater initially for iphone, ipads. >> we already see a line forming outside here. we'll send you inside and check in with you a little bit later. that's the last of "squawk alley" from san francisco.

we'll send it back to john steinberg. >> thanks, kayla. the dow up about 19 at this hour. the nasdaq just about flat. thank you john steinberg. simon. >> it's an honor. >> for sitting here with us. toss it over to halftime. ♪ all right guys. thanks so much. we'll meet our starting line up for today. joe is senior managing director at ver advertise investment partners. and with us for the hour today, liz ann saunders. also joining us from california today is the chief economic advisor. so glad you're with us today. apple time with its long awaited tc