apple not miss out on cars? this is bloomberg. ♪ emily: let's talk about the world's second-biggest economy, china. apple navigate the waters there? tim: we make all decisions for the long-term. we are not investing for next quarter or next year, we are thinking many years out. megai look at china, i see -trends that make china and incredible market, not just to sell in, i also mean for application developers. we have 1.5 million application developers now, trouble be closer to 2 million. it has been an incredible market place for talent and in terms of the size of the marketplace. terms kinds of economic moves up and down, i do not get too excited about. it to how realistic is expect double-digit growth to continue for apple? tim: it didn't continue last year. emily: are those days over? tim: i think we will do better this quarter than the last several. i think it will be better year-over-year comp over the previous ones. popular phonemost in china, iphone seven-plus is the third most popular smartphone in china. we are to stick added, because i think china is a huge opportunity over time. emily:

apple? tim: i don't think about it very much. i will point out that steve's dna will always be the dna of apple, or it will be as long as i am ceo. and i think as long as anyone is, honestly. i think it is deeply embedded in the company and we celebrate it. and it should be like that and should stay like that. obviously, things evolve over time as they would have if he were sitting here interviewing with you today. that is probably a better question to ask somebody who worked for both of us. emily: you said cars are an area ripe for disruption. how important is it that apple not miss out on cars? tim: i think there is a major disruption looming there, not only for self driving cars, but also the electrification. if you have driven an all- electric car, it is a marvelous experience. it is a marvelous experience not to stop at the gas station, or fillings nation or whatever you call it, and so -- plus, you -- gas station or filling station or whatever you want to call it. plus, you have ridesharing on top of this. you've got kind of

apple? tim: i don't think about it very much. i will point out that steve's dna will always be the dna of apple, or it will be as long as i am ceo. i think it is deeply embedded in the company and we celebrate it. and it should be like that and stay like that. obviously, things evolve over time as they would have if he were sitting here interviewing with you today. sure, butclearly i'm that is a better question to ask somebody who worked for both of us. emily: you said cars are an area ripe for disruption. how important is it that apple not miss out on cars? tim: i think there is a major disruption looming there, not only for self driving cars, but also the electrification. if you have driven an all electric car, it is a marvelous experience. it is a marvelous experience not to stop at the gas station, whatever you call it, and so -- plus, you have ridesharing on top of this. you've got kind of three vectors of the change happening generally in the same timeframe. it --, as we looked at what we are focusing on -- what we have talk

we sit down with tim cook and talk about apple's homepod, a direct challenge to amazon and google. ple ceo tim cook. emily: thank you so much for joining us. tim: great to see you again. johnathan: -- emily: why should people buy homepod? tim: we try to build something that is a breakthrough speaker first. music is deep and o -- in our dna. we wanted something that sounded unbelievable. it does a lot of other things but we wanted a really quality audio experience. emily: you're focused on how to reinvent music in the home, will idea what to make a phone call, college park or order groceries -- call a car or order groceries? tim: there are a lot of things that siri knows how to do with the phone. we start with a batch of those. emily: let's talk about e-commerce. i can order paper towels on my amazon and him. does this -- i can order paper towels on my amazon echo. tim: we think we can reinvent it and the home. we know that people want a speaker to do more than that. obviously we want a speaker to do more than that. we are combining what has been thought of to be two distinctly diffe

we had our key game developer they are at an apple conference about a year ago. oster is a strong relationship with apple, with google and android as well. we offer these marketplaces a type of content that consumers love, that consumers have fond memories of, in terms of the electoral properties. that is important to them. that's important to us as well. emily: when can we expect mobile games to be a majority of nintendo's revenue? >> great question. today, the vast majority of revenue is driven by our dedicated games business. mobile is one of two other key platforms as we think about our growth. the relationship we are doing with other companies in the broader entertainment space, like universal studios, is going to be important to us. i would say what we are doing with the licensed merchandise area, like the shirt i am wearing enables consumers to show off their love for i.t., then important growth driver. area, these are all of the different areas nintendo is going to drive revenue and profitability into the future. emily: you have more than $8 million on you

not just about apple, but any stock. if you can't take a 7% draw down in a stock, you shouldn't be in the stock. zpl if i told you that apple before this year is over, will take a minimum 5% decline from where it is today, what should you do ? 5 to 10% ler. >> for someone who owned apple in 2016, i would use that 5% to get back in. >> if you knew it was going to go down 5% sometime for the rest of this year, would you take some profits today? >> no, if i owned it, no, i wouldn't. >> are you going to spend your whole life in front of the screen waiting to buy it? >> goes back to your original point. if i know it's going down 5 a%, say i get out of it. how do i know when to get back? ? the reasons go beyond the iphone 8. they are about the services side of it. the reasons are, i looked at positioning this morning. you would think this is overowned? hedge funds, yes, are overweight. apple. mutual funds, large cap mutual fupds, the average benchmark is 3.6 f for apple. you would think 3.6 or well above that. >> now, you're g

we don't care about apple anymore. it's amazon. >> you know, the roger banister moment in big tech. >> right. >> you would know -- >> mel has no idea. >> okay. >> shortly after that, everyone could run a four-minute mile in the elite class. i guess to your point, i would rather be in a non-hardware business. >> gene was at the apple conference today, and joins us now. gene, did you see anything that gave you a glimpse into apple's future today? >> reporter: absolutely, there was actually really big news. it was revolutionary news. it will probably slip below most people's headlines which is about the homepod. but this is around ar kit. what they showed, and we've been closely following this a.r. theme, what they showed today was a light year ahead of everything else that's out there in a.r. that's going to be available this fall. and they also announced that hundreds of millions of iphones will be able to do that kind of a.r. and to put that in the comparison, an a.r. in rich platform, the competitor would be tango. an

about the iphone? cory: hardware drives headlines for apple. it is all about the gadgets. at is what the headlines tend to be. the reason people are interested in apple's stuff is not that the hardware is innovative. it is that the software is innovative. that is what this event is about. we had 5300 developers from 75 countries here to find out about the software and how they can develop software for these devices. the devices matter. but the ability to develop for those devices for the programmers to make money is what matters here. i think what you have heard, the consistent theme here was use of artificial intelligence, machine learning, and siri as the headliner for all of that. and incorporating siri into a lot more stuff whether the home pod or the messenger applications. that was a big part of the focus here, trying to get developers excited about using the ai stuff and siri. caroline: mark, take us from ai to ar. this was one of your big scoops, focusing on augmented reality. how much of a hint did we get on that? >> augmented reality is very interesting because ap

about the n.s.a. or g c h q we're talking our poll for his thoughts on a released recording of an internal apple security briefing is legal and media analyst lionel of media now lionel what do you have to say about this have you ever thought about what apple is actually apple is a secret. it is a secret what apple does a secret it was started on the secret steve jobs with the secret was there is nothing that we know there was not any a manufacturing company nothing compares to this may give an example actually if you ever get the chance to visit a google factory in a factory but office i've been to the one here in new york and it's so nice and they meet in the they have this it's kind of a big food court budget hippy cool people in private in a couple of articles on google i know i mean it seems to be the best off if the work space that you could offer you work at well next to r t excuse me you've got a you've got an espresso. anyhow but aside from that apple is different apple you don't talk to anybody you're paid for your own lunch you don't talk about anything if you meet when you are there if you mee

carmakers having to make room for apple. >> i think eventually it could lead to the apple car that we have all been thinking aboutnd hearing for five years, different rumors. in the near term, it is more likely to lead to collaboration between apple and current carmakers, similar to what waymo , which is part of google, is already doing. and i do think you could easily see a world, where just like our phones are almost all either androids or apple phones, we could have a circumstance where our cars' technology, especially the autonomous versions are all powered by apple or google-based technology and operating systems. emily: and so as apple , potentially goes to market, do you see them partnering with a manufacturer, licensing technology to a manufacturer, or more likely coming to market with a car of its own? karl: probably all three in sequence. i think they will partner with an automaker, and helped to start empower their own autonomous vehicle systems and eventually they could become a final producer, a final holder of car design that the automakers make for them, essentially making the automakers a tier 1 s

. ♪ plus, new information about apple's plans.. for a self-driving car. o financ >>> we are about to see if the tech sector will bounce back on wall street and new information about apple's plan for a self- driving car. kcbs financial reporter jason brooks has that and more in your cbsmoneywatch report. good morning. >> reporter: good morning. one of apple's worst kept secrets is now official. ceo tim cook tells bloomberg that the company is indeed working on self-driving car technology. this is rumored for years. project titan. there were numerous reports last year that apple changed its strategy with self-driving technology. not wanting to build an actual car, but focusing on the technology itself. cook was pretty tight-lipped about the rest of the details and is vague about what apple is working on but says the technology is core to the company. >>> apple one of the big reasons why the tech sector slumped big time the past two sessions. the worst two session sell-off in the tech sector since last year. a lot of that is profit-taking. companies like appl

we talked about apple a bit earlier. it is about 4% of the snp.e simple fact these days is there is so much money in these big tech companies that if anything goes wrong, it won't hurt. 0il that if anything goes wrong, it won't hurt. oil is probably the biggest disappointment so far. with what is going on in qatar and saudi arabia, it is a realflashpoint what is going on in qatar and saudi arabia, it is a real flashpoint this week. the troubled japanese auto parts company ta kata has the troubled japanese auto parts company takata has filed for ba n kru ptcy company takata has filed for bankruptcy protection in the us claiming $10 billion in liabilities. trading in shares have been suspended after reports it would make a suspended after reports it would makea similar suspended after reports it would make a similar application injapan. the defective airbag maker ‘s takata have been linked to 17 deaths in several countries and led to the automobile industry's biggest recall and has cost than $9 billion. thailand's central bank floated the thailand's

i'm not sure is that will happen. >> the thing about apple, you can debunk this like crazy, dan had disney being a buyer in all seriousness, is there any reason apple should be buying content or going out and buying a company like netflix which is speculated all over the place in today's announcement tells you they will not do that. it tells you netflix is content delivery the value of this company is not their content. it's a portal. >> i disagree. >> that portal, they had streaming success for five years now is there that came later. >> they starred four years ago with "house of cards." this has been going on longer than you think they've spent a lot of money, probably 20 billion. >> it's going to go up. >> if see pour films make -- seymour films makes a great show. >> maybe now apple, maybe lulu bidding. >> the content goes up. >> in that sphere. >> apple is very late to it. i don't think hiring a couple sony executives fixes anything any time soon. i think my point to gene was that if they really want to expand their foot print, they got to go to things right now where they can make a

apple has taken a stand on user privacy in the past in a standoff with the u.s. fbi aboutng a suspect's iphone in a shooting in san bernardino, california. we spoke exclusively with apple ceo tim cook about with the company is doing to combat the terror threat while balancing user security. attacks,terrorist first of all, our heart goes out to everyone affected by this. they are horrendous. we have been us, in the u.k. pretty much the whole length of time for our company. like they are a neighbor. we have thousands of employees there. our heart goes out. this?o we do to help with we have done one thing since the beginning of the app store, we curate it. we don't want hate speech on their. -- there. we don't want these recruiting kind of things on there. we have tried to be careful from the beginning about not having that stuff. i'm not saying we will never make a mistake, but actually, i don't know of a case where something has gotten through from that perspective. we are very vigilant on what kind of happens from that point of view. we also have been collaborating --h the

about six. the selloff has taken a big bite out of the most heavily weighted stocks for all of the indexes and that would be apple. down 7% since friday. down about 1% at this hour. it's standing at $143.7 per share. goldman sachs is among the biggest loser on the financial sector. perhaps the following because of the special counsel investigation of president trump financials would love to see tax cuts and stack reform. stock is trailing, nike, baird plan to streamline and modernize is not only not impressing investors but it's concerning investors at the moment. sometimes when you see job cuts announced you have the stop stock jump but this, they said they plan to cut about 2% or thousand workers. maybe even 1400. the company will trim its product line and focus more on online operations. you've heard it before and first here on foxbusiness, brick-and-mortar stores continue to falter the retail ice age continues to move. but a shift gears to our nation 's capital. president trump trying to get his agenda back on track, pushing a new apprenticeship program is part of the effort to close a skills gap that the whi

about, their entry into the enterprise market. they see that as a huge for them. people are so attached to appleand moving into the business sector is a huge thing. oliver: and they need to be looking at ways to drive growth. you also talked about politics and branched out beyond the device world. megan: he was very involved in the climate debate, and the trump administration decision to exit the paris accord he took very personally. one of the things i felt was interesting is he said that america is more important than politics. where he disagrees, he will not be afraid to make his voice heard. but he also acknowledged as a ceo, his responsibility to build an america he wants to live in and his workers to be part of. oliver: a great interview. making tim cook into a cover model was the job of rob vargas. you guys are putting tim cook right on the cover. it is very much about him. how did you make this choice? rob: we had this one photograph where he looked very pensive. you can see a little bit of a reflection. we thought it was an interesting shot. oliver: it is a strong image of him. the inte

but developers care about the money they can make. apple said developers have earned more than $70 billion since the app store launch in 2008 and downloads have grown over 70 administers. gene munster is looking about the new iphone, signs of new features. excitement about that new iphone is what's helped drive apple stock up almost 30% this year. there are skeptics. apple was just downgraded arguing upside for iphone 8 is priced in. in terms of software we'll look for hardware updates, updates to that laptop lineup as well as a smart speaker. apple will take on amazon and google. apple would bring advantages to that fight including a huge global installed base nearly 500 retail stores all around the world and of course one big marketing budget. guys, back to you. >> absolutely. josh, thank you for that. for more on this let's bring in executive editor karen swisher and an early apple employee. guys, good morning to you. we're going into this conference, coming out of the code conference last week. i wonder if you feel that apple was not th

next up, apple, we were talking about this in terms of a trade i like it. lower. we will source this parallel channel which defiance support off these two swing highs and as we dip down, right around the '01 $138 region, it's definitely one for a tradeable balance or a rent as you guys were talking about. the other one is netflix i don't like i have to disagree with guy on this one, if you take a look at the nasdaq here, this is the qqq in blue. will you see this guy has made a higher high. what has netflix done? it's made a lower low. this is one of my horses in the 2017 stock draft and i think tim seymour is comfortably in first place. >> it's a long season, my man. thank you. >> you are stupid value. so netflix has had a very big under performance. i'm taking a back seat in that contest. as you get off this one, will you see netflix has not only under performed the nasdaq but broken support here over since the election lows, so unfortunately, netflix is under performing few want to be short, you look here. >> the push back is yes in the context of that it's und

macs,orks on the iphone, and the broader apple ecosystem. it is abouteeping people in that ecosystem. if the speaker is the enabler to drive the capabilities of apple's artificial intelligence capabilities, then that in turn is what helps keep people into things like the iphone, which as we know, is really the thing that is driving apple's big is this, all of its big profits, and so forth. betty: and if you wanted to have a chart, that clearly drove at home. i want to pull this chart up for our viewers. i'm sure it is when you are very familiar with. it is a bar chart that breaks down the revenue through that white are is simply the iphone revenue for apple. revenue. that white bar is simply the iphone revenue for apple. revenue has fallen over the last year and seems to be stuck in this range, so you know, in this recap of the iphone, -- this re vamp of the iphone, what can help this? bryan: we do believe it is a temporary lull for the iphone. if you look at the current product, iphone 7, it does not look that different from the iphone 6. in a key mark

apple doesn't break out units or revenue but third party researchers do. up about 60% year over year means they're effectively tied ahead of fitbit. we'll bring you more headlines as they come. >> the partnership strikes me as a frenemies move. a glimpse into amazon and apple strategy, they sell the fire tv. maybe it's not as interested in being that purveyor. here is a great offering. maybe they're not as intent on having their own studio. he talked about that partnership, about prime specifically and apple has been making these moves for a long time. we've seen what his intent is there. he needs to bring the next content. making similar moves and amazon is one way to do that. >> we focus on the media. it's great news. is this a move for amazon shopping? if you don't have an echo or one of those devices i wonder if they're going to allow you to open up the app on your apple tv. you can order stuff through your apple tv. i guess that's not a question, it's a comment. josh, thank you. >> i think we lost josh. >> we did lose josh? that genius rant i was on was lost?

a lot of criticism has been levied at apple in the past about not making that more user-friendly. y is it so significant for apple to make this work? cory: part of it is making sure that the phone is centered and one of the things they announced is a lot of internal mapping. 30 airports across the country. trying to find ways to get ahead of google, and 3-d mapping as well. it is a place that apple has invested enormous resources, and they think they can win this one in the long run. julia: i just want to ask you as well above what we have heard so far about augmented reality. a lot of questions being asked about how the bush is -- when you look at the software developing or the hardware, the new announcements they have made today, if there is a symbolic message here from apple that we see this is the future and the way we are headed. cory: i think some symbolic -- i think symbolic is a good way to put it. ahead the demonstrations in the last hour was they had a game developer on a set and she was usinga vr device to build a world -- "star wars" world in this case, she is a lucasar

about not having that stuff on there. emily: some of our exclusive interview with apple ceo tim cook. have more of the interview coming up, including what he has to say about the apple's answer to amazon echo. we are leading up to the fed decision at 2 p.m., as well as janet yellen's news conference. this is bloomberg. ♪ emily: back to our exclusive interview with apple ceo tim cook. in part three of the conversation, we discussed where the big innovation at apple will come from in the future, and the recently announced home pod, the answer to amazon echo and google home. i started by as -- asking about the newest addition, the home part. mr. cook: the underlying technology is something to behold. to get the experience that we ,anted at the quality we wanted like apple products in general take multiple years to do. out there have people saying, "finally, what took so long?" mr. cook: for us, it has never been about being first. we didn't have the first mp3 player. we didn't have the first smartphone. we didn't have the first tablet. arguably, we shipped the first modern mp3 player, the

coming up, tim cook opens up about apple's car ambitions for the first time.lusive conversation with the apple ceo about the company's focus on autonomous tech and the push into cars. plus, travis takes an indefinite timeout. why the ceo says he takes a break from the company he cofounded and what it means for

>> how about some apples?od will hunting" fans know the real line. >> it's actually how did you like them apples. >> glad they could straighten that out. >> me too. >> clearing up movie lines that's easy. not so easy, confessing to the world, how much you weigh after you just have a baby. >>t thais tough. >> that is why these ladies are hero about the struggle to get their these mommys are getting candid about getting their bodies back. ciara gairve bth to her second baby sienna at the end of the april, she gained 60 pounds. she's posted pictures of her ogress on the scale. so far she's down 28 pounds and she's not afraid to indulge in a cheeseburger and brownie. >>> singer pink has a different strategy, stay off the scale. she welcomed second child jameson in december and has been working out and biking to reach her goal. >> mile 37. yay! >> pink posted this bit of truth saying, i'm 160 pounds and 5'3". by regular standards that makes me obese, i don't feel obese. >> i'm killing it. right everybody? >> also k

we sit down with tim cook and talk about apple's homepod, a direct challenge to amazon and

the first rule of being an apple supply chain, is that you don't ever talk about being an apple supplyhain. once 2017 began, this company quickly got its feet back. universal display got attacked together not only was the company making lots of money and winning lots of new business, they told us about how their major customers meaning samsung and oled display were spending billions as people began to realize that the oled revolution has finally arrived. a month later, samsung unveiled it's galaxy s-8 which propelled the stock still higher then in april, we learned that apple planned to make 70 oled panels, we were really no good for what apple might need. but earlier this month, universal display reported again, and the company shot the lights out for the second quarter in a row they delivered massively higher than expected revenue, up a staggering 87% a year. better still, universal display gave us very strong first full year guidance. while they were very careful to be vague about apple as you must be, you have to be heartened and i hear things like i quote, pipeline activity, end q

if it can deliver on the numbers in 2018 and 2019 i feel the same way about facebook and apple i spent time with d.j. on the floor of the exchange, one of the best times i ever had in years down there we discussed the major keys to success and happiness. d.j., two of them involve broadcasting the word out via not his cell phone in some method, it was apple and instagram. he does like snap. a lot coming due in august 900 shares be careful apple and instagram, we're talking about two companies riding so many different trends they're rivalled in their own right. and there's competition for one of nvidia's business lines ooh, scary no kidding mighty intel and competition during its heyday. it happens no matter, say what you think about them leaving the entire rest of the market in dust, it's at the heart of so many different hot trends bottom line, remember this, while tech has become a curse word of late, there's a reason why so many clamor for it and come back to it in the end earnings solid, raw, organic earnings, the type you don't get short falls from, the type you get upside surprise

if there's a subject let's say you can't talk about apples. no, no apples. then all of a sudden, it's fall and you want to hear what kind of pies are you having at thanksgiving? i need to be honest with my fans and talking about everything. and that's why i quit. i wasn't fired. i quit. >> bruce. there are, i've talked to friends journalist that is work at other tv stations or other networks and they have actually been told to sort of lay off the negative stories about donald trump too. but the reality is we can't all quit because we got mouths to feed, education to pay for. how do we weave through, you know, management telling us to lay off some of the negative >> well, you know, a lot of people think all of a sudden, the extreme, and i didn't come in every week with a full agenda on politics. in fact, i did sometimes have a couple things i wanted to talk about, but when it got down to it, i like went, no, you know, just doesn't feel right. but you know, there were certain things, like i might make a joke. like this past week, i think i said something like s

about how many industries the iphone changed. to your point, there are android phones out there and many argue the android wasn't the first smart phone. but the applere on the news set, i was doing a live shot out of another country overseas a few days ago off of my iphone. we new about news and taking over a trillion photos a year. >> neil: you know, shelby, i wonder this latest phone that is coming out later in the year, the fall, they keep talking about all the new bells and whistles and something called -- augmented reality? what is that? >> augmented reality, they have a new screen. it could have wireless charging, there's lots of rumors. there's fears would be hard to produce. >> neil: what is that? point at something and what would happen? >> yes. you don't point at something but you're virtual in a world that you would never have seen when iphone launched ten years ago. >> neil: sounds stupid. >> maybe you'll like it. >> neil: sounds stupid. i'm an apple shareholder. but i'm listening to this. there's a lot of ancillary industries that benefit from this and the cool technology. and i know one iphone has more technology than in an apollo roc

so what i really loved about this conference, these areas that apple was not in, with home pod, with made the announcement and now they're there, i think that's huge. >> what about the stock price, still the dow's best performer this year up 33%, rob. it's only trading, some would say, 17 times next year's earnings which is still less than the overall market and certainly less than some of its big cap tech peers. >> i think apple has more upside. you back the cash out trading at 12 times next year's numbers, so apple's always relatively cheap. i think there's more upside though. >> what about you? do you agree? >> yes, i mean 11 times ex-cash we call it the most underappreciated stock out there, and talk about the sugar water companies, now that warren buffett is in apple, coca-cola traded over 20 times, apple is growing over 30% a year and maybe that's not the growth going forward, maybe it's 10 to 15 but it's significantly undervalued. >> you don't think apple needs to ratify what the nasdaq has done in the last three weeks and a few weeks since apple set its own record. now it's a

facebook at 1.28 1.28 is a very low peg ratio in comparison with this to your point, google is about 1.5 apple is about 1.5 those three are actually really attractively priced within the f.a.n.g. space, the others, you know, you get into netflix and amazon, they get into the multiples, 2.5, amazon is 5.5 times. nobody is going to deny that amazon is a fabulous company, it's just what price are you going to pay for it. peg ratio is what we should look at >> here's another interesting stat when the yield curve goes from where it currently is at 100 basis points between the six-month and ten-year, the tech sector outperforms in both of the last two cycles, meaningfully when you go from where we are today, to where the curve actually inverts it would make the case of why you want to buy any kind of weaknesses >> see, there's a damg nger of k at what happened the last two times tech corrected and that danger is, you've never had low rates for such a long period of time and other parts of the economy, not working. there's no inflation and what i mean by that, if i were you, i would be sitting here t

but what about apple sneakers. in the '90s, the company made these sneakers for employees.y are hard to find. the company that's selling the shoes, heritage auction says the starting bid is $15,000. the sneakers are a size 9 1/2 if you are interested. >> not going to fit. >> little tight on me. >> too big for me. they are cute, those. >> jeff, what do you think? >> thms down. >> i kind of like them. >> thank you for joining us. >> have a great weekend. bye. [ cheers and applause ] ♪ >> steve: from studio 6b in rockefeller center in the heart of new york city, it's "the tonight show starring jimmy fallon." tonight, join jimmy and his guests -- kate mckinnon. john cena. musical gues m

apple moving it to this space where amazon and google already play. amazon with echo has about 70% of this market. it benefitted from first mover advantage and a big predistribution platform. we talk to tech analysts. they say apple could have an advantage in this space as well. it has 500 retail stores around the world and obviously a big marketing budget, not to mention a huge global install base 1 billion iphones and counting. i'm going to keep listening to the keynote and get you more headlines. >> josh, i think it's amazon who's about to roll out one with video, with a screen. if you are able to offer people that, especially in a transactional environment where i can point and click on the product that i want to order or carry out other functions, apple is not going to be able to offer that. >> reporter: i'm sorry, you were breaking up a little. could you repeat that? >> i was saying it looks like this home pod does not have a screen, does not have video, correct? >> which alexa is going to have at the end of this month. >> reporter: correct. it does not look to have those

we talked about apple. it is wup of the names under big pressure today got its second downgrade in under a week mizuho downgraded. the nlist behind the call joins us live from san francisco abe, welcome to the show you're a brave man i know you know that jim cramer is sitting here. can you just tell us before i turn the floor over to jim why now and why this weekend >> there are two things that drive the stock. at this point, we think both are towards the upper end. when you look at the earnings, iphoneses are the biggest drivers and when we get our checks with our japan team, it looks like 240 million unit con sumgts for next year towards the upper end of what they can deliver and which doesn't give us much room on the earnings side when you look at the multiple before friday, it was at seven-year high. when you kind of yes, friday and today have deflated it a bit, but it's still towards the upper end of the range when we don't see the upside from the market of the earn, we feel the stocks got its fully pr

emily: will we hear anything about apple's efforts in ai?d on the ai chip which will be a big part of their ai efforts going forward. i think we will see more developer integration for ai. emily: what about ar? >> that is interesting. apple is building glasses we reported on. that is a few years away. it would make sense to come out with a our software and frameworks for developers. it will be interesting to watch to see if they do that next week. emily: what about cars? what that is one of our favorite topics. we will not see an apple car drive on the stage. but they have been working on self driving technology. it could be interesting if they tease next week and i would say that is unlikely. emily: this month, the 10th anniversary of the iphone. we will see the new operating system. what clues what we get about the new phone coming out in the fall? >> they will not show the hardware part. it is the 10th anniversary and they might highlight that at the event. ago, is whens steve jobs said the fund would go on sale. they might talk about it

. >> we're talking about apple because they're starting the department of water and powerrers conferencewhich we are down there live. but also, apple stock was downgraded this morning. that is affecting technology. so it depends on what they unvail that analysts speculating it is not as hot as it has been. ringing the opening bell, executives from cars.com. they are celebrating the spin off from the parent company, carscars, now trading all on its own. >> checking in on the number, they were down from the sound of the bell but you can see a look they're coming back up just a little bit, 21,207. the nasdaq up as well. 6307 and the sp 500 dipping a little bit this morning. european markets considering the terror attack over the weekend. british prime minister teresa may calling on tech companys to help stop future terror attacks. saturday's attack in london was the third terror attack in the u.k. this year. in the speech yesterday, the prime minister called on tech companys to crack down on terrorist who often use the internet is social media to plan atax. although may did not name any spe

we spoke about apple's car ambitions, do we know anything more now about what direction they are going >> if you look at the scope, apple, six. cars, it is a huge difference. google has 600 cars -- or will soon have 600 cars on the road. emily: thank you so much. remember, we are waiting for president trump and prime minister modi to speak in washington. you're looking at a live shot of the rose garden. there are about to give a joint statement. we will have it to you live. this is bloomberg. ♪ is setalphabets google to face an antitrust fine for promoting its search service over smaller rivals. this is according to people that are familiar with the probe which has been up over the last few days. it is expected to exceed the $1.2 billion fine place on intel in the past. what is the latest so far as we know? this asuld be getting soon as tomorrow. there has been a dramatic speed up in the pace of this negotiation. it has lasted seven years. it seems like the finish line has been brought forward in that many people have not been told about the eu timetable, which is usually done as a mea

again, it was about getting people in the future excited about what could happen. appleof nowhere in areas like artificial intelligence. although they talked about new technologies that could be the future of driverless cars, drones, and things that can think and talk for themselves. pretty strongd language here. you talked about the stupidity of siri. you are not holding back. that you also say that apple gets it. because they are building the ecosystem that gets customers buildd and then they can the future. >> apple has always been rather secretive about what its roadmap is. the hurdle of being secretive is people cannot see what apple is working on in the future, and that makes it hard to get excited about what apple may or may not have in its roadmap. but you are right. refining the at ecosystem and making their devices work closely together. much, i was struck by how they talked about how well the speakers work with apple music. most people do not subscribe to apple music, but that's how they talked about it. but if you don't know what it's coming, you can't yet be

scott martin, what do you say about apple now. >> of of the fab five apple is probably the least excitingto me. why? it's mainly hardware. they talked the other day about the speaker that's going to take on alexa, and for me, if there's one of the fab five and cut it down to the fab four, apple would be the one. we still own it because it's cash flow crazy. they have tons of money on the balance sheet, they just need to get mother innovator. stuart: $225 billion in cash. >> pocket change. liz: a gentle respectful rebuttal to scott martin from wall street, apple has a gigantic customer base around the world. if they get that speaker going to the customer base, it's additive to the bottom line. stuart: they can milk the customer base. >> people like apple more, but they like what amazon gives them. liz: and scott martin is probably right. >> and that's why it will prevail. we're about 20 minutes away from the comey hearings and the dow jones industrial average is dead flat within 30-odd points of record time. we're up two points as we speak. let's talk about alibaba, i call that china's ama

apple. reporter: that was one of the really interesting things about today.here was no developer kit for the speaker that was announced. we expected that the speaker was , and the logic of presenting such a speaker at the developer conference would seem to be that you gave programmers the tools to build really cool applications and services, which are then accessible through the speaker, ready to go to market. that wasn't even mentioned today. maybe something will come, but -- one caveat. siri as a whole has ability to work with third-party apps. perhaps one of those will want to work with the speaker, but there was no reference to that in today's presentation. said: tim cook obviously they don't really care so much about being first to market, it's about being the best. also, the art of the upsell. pricing wise is interesting. is that going to be an issue for getting market share when you do have the dominance over the likes of alexa? reporter: it is remarkable they have gone for such a high price. amazon and google, they sell their devices pretty much at co

now it's all available on hulu. >> there's a bit of debate around that apple amazon announcement. what did you think aboutthat? the fact apple didn't announce anything new on media yesterday at the conference except for the prime tv was going to be on apple tv? >> this is more for developers but this really shows i think apple's premium power and leverage in streaming. nobody is talking about amazon fire tv sticks that much anymore. >> by the way, for more binge go to cnbc.com/binge. >>> apple throwing its hat into the home speaker wars with the home pod. we will talk to joanna stern from "wall street journal." she got her hands on the product yesterday. t least analyze custor traffic? can we push the offer online? legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday? yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. it's your glass of willpower that helps keep cravings... ...far, far away. feel less hungry with the natural fiber in clinically... ...proven meta appetite control. fr

you can hear about apple's outlook for the car market as we are more of our exclusive conversation withrg technology" this tuesday. we heard about the home pod. now we will hear his outlook for apple's move into the auto sector and growth in china. that does it for this edition of "bloomberg technology." "bloomberg technology" is live streaming on twitter. weekdays at 5:00 in new york, 2:00 in san francisco, 10:00 p.m. in london. that is all for now. this is bloomberg. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with developments following james comey's testimony yesterday. earlier today, the president responded to questions during a press confident -- conference with the visiting romanian president. the president accused comey of lying under oath to congress and insisted he failed to prove collusion or obstruction of justice. in a tense exchange, president trump said he would be willing to offer his version of events under oath. preside

about strategies like growth, like momentum. vonnie: we just had some great announcements from apple, positive news across the board, and again youer #9314. some perspective to these are estimates within themselves because we are talking about earnings estimates. growth ing at the earnings expectations for the tech sector and s&p 500. the expectations for earnings growth have gone up and up. if you look at bloomberg analysis for earnings, 20 sent -- 20% growth, but it than any other sector in the s&p 500 apart from energy. the fundamental picture here, from the sell side is in fact, thathat also has a caveat if they are wrong and talks up a systemic issue, this will be bad for the market overall. could there be a cascading effect? we are seeing some of that money go into european shares. that is a microcosm of an overall shift. if this group, tech companies, trading at a 24 multiple, the highest in the s&p 500 when you get rid of real estate and look past energy, so there are a lot of things going on. people are talking about momentum shift and the growth shift. of salt yourain want to take that with because there are still only