at apple's rivals saying is this an apple issued ? e issued? because their phones are so apple issued? because their phones are so expensive? or is this a broader issue? i think it is a bit of both, i think there is a broader issue. there is clearly impact from the us— china trade war, which is very real, but i think it is something that apple will be more sensitive to because of how expensive it is phones are for consumers in china. and there are so many factors affecting it, notjust the us— china trade war, but also because the economy in china is slowing down anyway, and you are seeing slowing down anyway, and you are seeing consumers are slowing down anyway, and you are seeing consumers are borrowing less and relying on credit less in china. you are also seeing with smartphones, against, not specific to apple only, but people are holding onto their smartphones longer. actual volumes in terms of the number of units sold peaked in 2016, so we are well more than tee yea rs 2016, so we are well more than tee years on from when they wer

you can't buy an apple watch or apple airpods without an iphone -- iphone. it all comes down to the iphone, including services. we saw those astronomic app store numbers come out from apple one day after this release about the revenue recalculation. where are app store sales happening? on the iphone. it all comes back to the iphone. they have to figure out a way to keep pumping out the iphone or a new hub. originally, it was the mac, then the ipod, now it's the phone. they need to get the phone selling well or they need to find the phone's real successor. emily: apple music, apple pay, those are generated mostly on iphones. i did sit down with tim cook in june 2017. this was in the middle of when apple was seeing some declines in revenue in china. i asked him about it. take a listen to what he told me then. tim: china, for us -- we make all of our decisions for the long-term, so we are not investing for the next quarter we are thinking about many many years out. as i stand back and look at china, i see megatrends there that make china an incredible market, an

this is an apple. some people might try to tell you that it's a banana you might even start to believe this is a banana. but it's not. this. is an apple. or do you know it's an apple but we don't know what c.n.n. thinks we did ask for a response we have yet to get a reply. in the meantime another us media outlet buzz feed is again insisted a controversial article it published is true despite it being branded as not accurate by the office of special counsel robert mueller the story alleged donald trump ordered his former lawyer to lie to congress about dealings with moscow. to get reports. tough times if you work at buzz feed lots of criticism abuse the outlets getting these last few days and no it isn't for the post about seventeen adorable cats at work or for their quiz which tells you which muppet you are no one reason is buzz feed's sensational story about trump ordering his lawyer to lie to congress about a proposed trump tower in moscow huge deal this i'm solid my sources are solid this reporting

is this an apple problem or a china problem? it is a little bit of both. remember that the smartphone market has been challenged. out, apple is a luxury good in china. we also have to consider there are geopolitical issues at play. apple is a large american brand. the chinese consumers are starting to feel the concerns around the trade war. perhaps reacting against apple to some degree. i think that is part of the issue. .e will hearwe more i think that is definitely a factor. is this good news for google? are people switching to android phones? >> i'm not sure it's a win for google because it is a broader smartphone market issue, not just apple. there is the potential that google and android could grab some share back from apple. the vast, android owns majority of smartphone market share. at most, it is a modest uptick for them. it is a smaller factor long-term. the bigger question is what is apple going to do in reaction to this? what are suppliers going to do? clearly i think there is going to be a challenge for apple in 2019. smartphone market challenge

apple off by 9% with that guidance cut in revenue. we are also keeping an eye on the etf that tracks china. what apple is saying about china does not bode well for the macro picture there. bigene is one of the gainers after bristol-myers agreed to acquire it for $74 billion. it's a way to make true the have scale as they come under pressure to reduce drug prices. let's look at some of the big movers on the back of analysts recommendations. we will focus on apple. falling,ge target first you have goldman sachs maintaining its neutral rating but cutting its price target to $140 a share. analysts warning of further downside depending on the trajectory of chinese demand in early 2019. to $160, target cut saying apple's recent announcement reduces revenue visibility. and an upgrade, new street research lifting apple to neutral from sell. interesting. lisa: other analysts making moves on apple today. slashing the price target on apple to $185 per share while maintaining the outperform rating. why do you still have outperform on this stock after apple underpinned

given all the features that have been put into, particularly the high-end phone, even if you were an apple and trying to make luxury good margins, which is a tried to do, if you said you would be willing to make on half of apple in profits on the phone is still an expensive proposition, out of reach of most people on the planet. and so much cheaper phones, much, much, much cheaper. phones cost one-tenth of the price of even the least expensive new iphone of what people buy in developing countries, if they can afford that. and apple has never in any of its products even before the iphone, whether it was the mac or whatever, they just don't play -- of course those things have very small profit margins and they are not interested in that. so i i blessed to come up with something else. they are working on it. they have come up with a couple of other big selling things, but they are smaller priced things, the apple watch is now the biggest -- from what are you wearing what? >> guest: i am but i paid for it. i am not here representing apple. >> host: are you a fan? >> guest: i paid full price fo

they stone what you said on chat, how muche is an apple story versus something going on in china? e above. reports,eing it in both apple and broad earth -- broader. getting china numbers that $13.2 billion. they want us to start seeing it as a china expose company. are we going to care about the data breach? china is still 20% of sales. for tothe potential deliver growth or results depending on how things play out there. i think the chinese economy is struggling at this point. you have some really good competitors in that market. they are all making these atulous smartphones affordable prices come so apple is up against that, and probably growing nationalism giving the trade war we have with them right now. iphones are that the humid. growth is decent in the other categories. what is your view on watch us, , connected- watches devices? >> i think they will not the ball out of the park. it relies on the ecosystem. take away the iphone, who is buying air prods? the watch is doing well, but it is all connected. the other thing i am scared about is apple, if i am correct, has never gui

this is an apple. some people might try to tell you that it's a banana one even start to believe this is a banana. but it's not. this. is an apple. vos to see it and to comment on these appointments we're standing by. well meantime another us media outlet that have buzz feed insists that one of its articles described by a special counsel robert move those office hours and more accurate is true the story allege that donald trump ordered his ex lawyer to lie to congress but it's not the only accusation of an accuracy the buzz feed's been facing as much as the investigations. tough times if you work at buzz feed lots of criticism abuse the outlets getting these last few days and no it isn't for the post about seventeen adorable cats at work or for their quiz which tells you which muppet you are no one reason is buzz feed's sensational story about trump ordering his lawyer to lie to congress about a proposed trump tower in moscow huge deal this i'm solid my sources are solid this reporting is accurate a bo

horace is the founder of market intelligence at simcoe and an apple analyst. er story about china and the problems apple faces there or is this a story about the fact that apple has the wrong product at the wrong price point? cook,: according to tim china experienced a dramatic deceleration during the quarter, something they had not anticipated with her own guidance only two months ago. macroeconomic data coming from china including consumption tax suggesting the dramatic decrease in consumer spending -- there's quite a bit of macro data confirming tim's observation about deceleration. there are other factors in play. is the slower upgrade cycle for users. usershones last longer, are tending to hold onto them longer. that's a bit more than anticipated. guy: our chinese users in particular shifting to locally produced products? you look at what huawei produces -- they are producing high-end products at a fraction of the price. that is true for all the years the iphone has been in the market. there may be a slightly higher pricing at the top of the mix right now,

over to our financial market correspondent paula because you have but it gets who i believe found an apple store in the city of frank thirds. is it just china or does apple have deeper problems. a new apple i phone in china costs about three times as much as a phone from say a local competitor so while smartphone sales for apple and also samsung have been weak in china the company also has itself to blame not just not just chinese consumers or the economy there because i phones are just too expensive with over a thousand dollars they're just too expensive for most consumers in the chinese market especially since that price that big price tag doesn't go along with new innovation and new great developments there's hardly any innovation in the product and so people just keep on with their phones for a longer time it's the same here in europe people will stick with their phone just longer and tape it up and keep it for awhile soldier on so is that it has the i phone peaked and it's time to move on to something else. indeed in the past eighteen months i phone sales have been flat and. it's shou

an iphone. i think the administration apple has made an egregious mistake. is apple cheap? yes.er over the course of the next several months. any rallies that occur, so many people out then trapped in the stock. it may take another year or two to make the bottom stop going down, go sideways and bore everybody and that's what it'll take. charles: thank you very much. transfer $1000 iphone at the same time they are offering a cheap battery replacement. just get the battery. charles: great stuff as usual. i want to get back to the breaking news. the state department issuing a travel warning for china urging citizens to exercise caution due to arbitrary enforcement of laws. the state department says citizens of chinese heritage may be subject to additional scrutiny and harassment in china. i want to bring in match lap, american conservative union chairman. is this a sign that is all part of this negotiation? china playing hardball with respect to this trade negotiation. >> yeah, absolutely. the communist government in china is getting the message, which is different types of leaders

with a strong conmer it's not time to be defensive yet. >> are you ready to buy technology, an apple or any company like florida. >> i start with the consumer discretiary andork to the health care sector a staple of where we are going and theno tegy sector eventually. at some point keep an eye on the bangs. they've been hit hard. let's see if with he get loan growth later in the year. turn around that could be the second half of the year or >> always wise counsel. thank you happen new year. >> take care. elsewhere white house economic adviser kevinid hasset lot of companies doing business in china not just apple could feel the pain of a slowwn inhe second largest economy of the world. >> i speak regularly with peoplw atl street. this is something people have been seeing coming for a good long while. it's one reason why -- you could go back and look at my tv clips in december i was saying yes the chinese economy is slowing one of the reasons why markets y responding the way te is that people are downgrading folks witorecast for a lot of business in china. >> as you know, trade tension

the form of one of our largest clients of court orders this largely points to apple in many cases so this is not necessarily an entirely unsurprising story but coming straight from the horse's mouth as it were is was quite a shock now what it tells us is that apple faces many challenges we could look at some of the deeper rooted issues which may lead to the ball is not quite the innovative it once was in the excess is what we'll grade from the acts that people wanted to say so that's going to impact the number of people grading from one hundred sets of the other compared to maybe what we would have seen in the past i think there is a deeper rooted issues again with the global economy which is what's been called polluted so sickly in china where we are seeing. that the celebration than we maybe would have expected a couple of years ago but again the pottery issues the what grades that the company offered the reason some of the older handsets maybe that some people from. grading but my fear is they sold so many to the. jewish not innovating like it once did and there are all the competitors out there particularl

this is an apple. some people might try to tell you that it's a been in your mind even start to believe that this is a banana. but it's not. this. is an apple. we have c.n.n. to comment on these appointments and so far i haven't received a reply. i mean man another us media outlet buzz feed insists that one of its articles is true that despite being described by special counsel robert miller's office is not accurate story allege that donald trump audit his exploiter lie to congress it's not the first time buzz feed has been accused of inaccuracy is more in gas reports. tough times if you work at buzz feed lots of criticism abuse the outlets getting these last few days and no it isn't for their post about seventeen adorable cats at work or for their quiz which tells you which muppet you are no one reason is buzz feed's sensational story about trump ordering his lawyer to lie to congress about a proposed trump moscow huge deal this solid my sources are solid this reporting is accurate a bombshell new rep

the option dilution, and math on buying stock for apple now as i said is far in excess of the option dilution. the option dilution is real and will become an issue in the next 6, 12 months >> it helps somewhat that they use rsus larry, tim, thank you. >> thank you. >>> and apple is a big drag on the dow. the index down more than 500 points, down more than 600 moments ago. you have that surprise guidance weighing on sentiment and technology, worst performing group in the s&p then a disappointing manufacturing number from the u.s., ism manufacturing survey disappointing in a big way, especially the new orders component, weakest level in two years. taking 2% off the dow. apple, boeing, 3 m, worst performers technologies and industrials are being slammed. real estate and utilities are shining in the s&p 500 the other big story and stock mover is bristol meyers buying celgene. they're spiking on that deal news, up more than 25% bring cnbc contributor bill george bill, you know the industry well does the deal make sense >> it is a very bold move. i think the pipeline definitely needs beefing up they have been losing on the mainstream drugs, and

and more institutional investors hold it more retail investorsld hold it household ne most have an apple so short shocked markets more. >> this revenue morning out of apple played into a lot of prawns that market has been trying to -- dealing with one technology stock overevaluation that was one of the things that kicked in isoff and fall and federal reserve may be being too aggressive. so the technology evaluation overevaluation even though apple looks relatively cheap at the time compared to -- >> apple still looks pretty good i think one of the things that is whatting at the same time is that apple is also going from having us all bee addicted to te hard qair to really building out this oh we are a services company. right we did here tim cook ceo say really hammer hey we've made almost 11 billion dollars ins services alone but trick for them is that apple as we know gets about 30 to 50% of sort of the take from all of that app developers and there are companies that have developed now work around. netflix is one, spotify is another, so that's the beginning to challenge what apple is n

well shares an apple have closed down ten percent in u.s. trading and it's west session since twenty thirteen it comes after c.e.o. tim tim cook surprised investors with the announcement at sashing revenue expectations by up to nine billion dollars he's bought the blaming the u.s. china trade war as caster explains. this i phone when a confident tim cook and now since the launch of apple's i'm ten in september the fanfare couldn't mask the risk his company was taking. would he not consume or is across the globe he willing to pay the one thousand dollar price tag of the latest and greatest i phone and now the answer is likely not on wednesday apple revised its revenue forecast for the first quarter lowering it by up to nine billion dollars and cook says it's due to weak i phone sales in china it's clear that the economy began to slow there for the second half and what i believe to be the case is the trade tensions between the united states and china put additional pressure on their car the u.s. is charging a ten percent tariff on two hundred

analysts reported that asian i phone suppliers were cutting back production because apple needed fewer parts news that sent out an alarm signal. the company says demand has weakened particularly in china apple c.e.o. tim cook blames the trade dispute between the u.s. and china for causing some customers to avoid buying u.s. products but analysts say another reason is apple's pricing strategy while prices are dropping on many smartphones from other companies apple has continued to raise its prices the most expensive costing more than sixteen hundred euros but fewer customers are willing to pay such costs for their device. it appears tim cook's strategy of looking to charge a high price to achieve high profits despite lower i phone sales has failed the development could sign the end of a success story that began twelve years ago. before both german exchange operated georgia has agreed to pay four point seven five million euros to end a probe into suspected insider trading cost can get out was being investigated for purchasing shares knowledge of bowser just two months before merger plan with the london stock exchan

fundamentally, this is an apple specific pricing issue. again, i continue to say, 80% of it is them mispricing, miscalculating demand, the marketing, and the development and feature functionality on this latest version. i do think they are seeing headwinds from the china consumer in terms of what you are seeing on the trade war, but this is really for them a china specific problem and i think right now, they have to look in the mirror and realize what they are going to do going forward is the pricing cuts. is it focus on services? is it content? but this is a fork in the road situation. how they handle this will determine the future of apple and ultimately, cook's legacy rests on what the next six to nine months does in terms of this strategy. emily: i have a revenue breakdown for apple. we know the company is trying to become more of a services company if you look at the white line, iphone revenue, still two thirds of revenue that apple generates is from the iphone, so how can apple fix an iphone problem in china, specifically when the ip

and that's why i sit here so baffled as a life-long apple fan, sometimes even being labeled as an apple fanboy to now be again sort of criticizing them in such a significant manner here, and the other area again where i have noted on the show in the past is that apple has also lagged behind in investing in a.i. this is a personal one for me and i think many of our viewers here, as u.s. citizens, because we don't want to get left behind in the a.i. race. we need all of our big tech companies investing in this. so that we're not losing this game permanently to countries like china. so my question is, why has apple done a lot of these buy-backs and also left a lot of cash in the bank as opposed to investing in things like a.i., investing in let's say acquisitions of car companies, i think there was a small amount of space to do that with tesla. >> they may have missed that, unfortunately. yeah. but you know what, why don't -- last night, this went viral on social media, everybody was talking about it, even my mother, because apparently on group facetime, something they released in the late

now, the big question after the big preannouncement january 2nd, was is this an apple problem, or is e clarity >> there are two issues with apple. first of all, knee been very aggressive the last few years. >> that's a lot of money that they would have to cough up. in china with the economy slowing and consumers feeling the pinch a bit more, there's a lot more selective about which sort of device they buy. the other issue with apple is the competition are catchingup pretty rapidly they've got competitive products you think about the other factor that's important the impact of the trade war. if you are a chinese consumer and you have a choice between a u.s. product, an apple iphone, or a locally produced one supporting the chinese economy, and you are reading about donald trump's slightly belligerent rhetoric, you're probably going to choose the chinese products i think they're losing a little bit of market share at the moment they've been a bit aggressive on price. >> 60% of apple's world revenue does come from their smartphones. as you mentioned on the price point, they've clearly go

i had a little drool on one side of my mouth. >> that could create the next cycle for an apple apple- you started off, apple has never been on the forefront. apple has always copied -- >> how about the iphone? what are you guys talking about? this was the smartphone that changed the world. >> blackberry. >> no, no. >> blackberry was the first smartphone that was the first apple nobody would give up their blackberry apple made it better apple made it better >> they trailed samsung. >> the iphone was not revolutionary. >> it was revolutionary. >> the design, though -- >> are you from the same planet? >> wow what planet are you on, guy? you gave up -- >> luvtron >> brothers from another mother. >> this is what would concern me about apple. you've got a pretty stunning rally over the broader market. tim talks about it all the time, up 13%ish over the last 18 days, that's somewhat accurate apple has rallied from that 142.5, 143 low but hasn't ratcheted higher obviously the guidance they gave was concerning, but i would have expected more of a bounce. me being from the planet luvtron would

they also going to have to look at changing behaviours in consumers, in us, i have got an apple iphonetwo years, as has been the past behaviour with smart phones? not necessarily. the technology is very good now. that has a huge impact on profits. what can apple do, ithink impact on profits. what can apple do, i think is the question raised in this piece, what can apple do really to make sure that people do invest in their phones more often? it means investing a lot more in making phones really different. exactly, technologyjust took making phones really different. exactly, technology just took a major step forward. this story on business insider, what is that about? this is a decision to grant google a waiverfor one about? this is a decision to grant google a waiver for one of its tech projects at higher levels. what is that mean? that means that you might for example be able to instead of using voice technology to get things done... use gestures. gestures and so on. done... use gestures. gestures and so on. my worry about that is you might accidentally scratching nose and then worry

is to an apple. what the shellac is to a schoolroom globe. that's on that schoolroom globe. so this atmosphere is not some infinite extent of air molecules. it is a fragile, thin skin on this thing we call earth. and i can quantify this for you. the atmosphere has particles associate with it that go up thousands of miles. but the part that -- i know i said it's functional thickness because it's not an edge. not on this side, not on that side. no, no, it fades. but you can say at a what distance -- so in the daytime, how come you can't see stars? you can ask that question. well, because the sun is out. no that's no it. we have an atmosphere, and the atmosphere scatters sunlight rennering itself aglow -- rendering itself aglow. so in the daytime our atmosphere glows sky blue, and that prevents you from seeing the stars in the daytime sky. if you go to the moon, you can be in broad daylight, but there is no atmosphere. you look away from the sun, have your eyes adapt, there's the full nighttime sky. ..

that's right apple's ceo, tim cook, speaking to josh lipton in an interview yesterday. at was after the company announced its revenue guidance, cut for the first quarter, come saying the new forecast is a collection of macro economic and apple xespecific issues. take a listen. >> as we look at what's going on in china, the -- it's clear that the economy began to slow there for the second half. i believe the trade tensions between the united states and china put additional pressure on their economy. we saw things like traffic in our retail stores, traffic in our channel partner stores, reports of the smartphone industry contracting, particularly bad in november i have not seen the december number yet i would guess that's not good either >> cook telling cnbc that apple products have not been targeted by the chinese government. he added he's not worried about traveling there amid concerns between the u.s. and china he says he is optimistic about the broader macro picture, that's despite headwinds from the strong dollar and weakness in emerging markets. here's what he said a

that stanford student you heard from, he didn't buy an iphone but did he buy an apple watch this week and the company does have a history of surviving and thriving after big stock tradeoffs. abc7 news. >> thank you. >>> once again, meet the young lady who could not be more excited about nancy pelosi. >>> and also excited, those who lined up to score a ticket to >>> and deserving bay area families. see how it all came together so we don't want you to pay yone cent more than you need to for health care. at covered california, you can get health insurance at a lower cost. in fact, enrollees pay an average of $5 per day. see how little it costs to get covered. visit coveredca.com today. >>> california representative nancy pelosi regained the speaker's gavel today but it was her grand daughter who nearly stole the show. >> reporter: as the votes came in for nancy pelosi to become speaker, no one was more excited than her grand daughter bella. even time a vote was announced for her grandmother, the 9-year-old would bounce, clap or shout. >> i'm just excited that my grandma is going to be sp

very same body and the very same people alone sucks to be her own decisions in relation to give an apple a thirteen billion year old gift well all you have to do is look at who profits to explain those contradictions where asking people to stick with the comp to the company over that i have done likewise is a go the demonstration is adopted it's a family friendly demonstration here it's about money money is the bottom line you're going to be date but it's not just not an option and it's too important it's much too important everything everything left in the hands of for profit companies . uhm. how did. he was i was how to cook. was you was all of these situations and all of the peoples of europe need to start having an honest conversation with each other i think like to go. russia europe people are saying you know. enough is enough. here we have our social europe by. the. net. kook was was who come to her you are. who was. your favorite. by her credit or yes come up oh no more school would. prefer to see only because. i always knew a lot of people think we almost want this or you know ar

if you have an apple device with facetime, apple is telling people to disable it... at least for the next few days. the company discovered a bug that lets users listen in on people they're calling... without them picking up. the person calling can even see through the front facing camera of the other person they are calling. apple says it has a fix for the problem-- and will release it in a software update later in the week. until then, they say the safest bet is to just disable facetime. (vicki) police in bakersfield are using a new device that could detect if drivers are driving under the influence. its called the drager drug test 5000. it was put to use at a d-u-i and driver's license checkpoint in the city saturday night. police say the machine detects the presence of certain drugs in a person's saliva. but the machine cannot determine whether a person is intoxicated. police say it also gives officers an indication of what that person may have ingested -- or what drug that person may be using. (vicki) still ahead tonight -- a speeding ticket going viral! how fast

you know what we try not to put the cart before the horse, we wanna have a horse, we wanna have an apple, and we don't know what that's gonna be (kevin)the oscars still haven't announced a host and it's rumored that the show may go on without one!we'll have much more on et, i'm kevin frazier,back to you. (vicki) and another snub-- a lot of people say the bay area's ryan coogler should have been nominated for best director for black panther. (vicki) that wraps up kron 4 news at 5.(grant) ken wayne and pam moore are here with kron 4 news at six. (ken)thanks grant and vicki. tonight at 6. (ken)nancy pelosi on the front lines... feeding furloughed government workers... as the government shutdown hits day 32.why the proposal she's backing seems no closer to ending the shutdown than it did a month ago. (pam)and kamala harris... announcing major fundraising numbers just one day after announcing her candidacy for president in 2020.why the amount she has raised is raising some eyebrows in a crowded presidential field. (pam) and erin brocovich... in the state capitol today to lead a protest agains

it's essential. >> we're an apple family. all the home computers are apple. >> larry says investigators shouldn't be worries. the tech giant won't grow without new products or affordable phones. >>> looking at a healthy eastern pacific. you can see all this activity. the jet stream pushing moisture toward the west coast. and spins in the upper atmosphere, one, two, and a third one. that's energy that will allow the stream of somewhat subtropical to lift and create rain. we're into a pattern that will be rain and snow, surf along the coast and wind. sunday will see a few showers. we are dry outside right now. it's cold. that's the story. tomorrow morning. it's 35 in santa rosa. below freezing in fairfield. san jose is 43, soon to get down to 38 degrees which is very cold. be careful if you're out and about, take care of the pets. they need help. santa rosa 30. napa 30. upper 20s in the inland bay valley. san jose 35 degrees. 37 in fremont. the first storm of 2019. the first saturday and the next one monday and the next one tues

analysts reported that asian i phone suppliers were cutting back production because apple needed fewer parts news that sent out an alarm signal. the company says demand has weakened particularly in china apple c.e.o. tim cook blames the trade dispute between the u.s. and china for causing some customers to avoid buying u.s. products but analysts say another reason is apple's pricing strategy while prices are dropping on many smartphones from other companies apple has continued to raise its prices the most expensive costing more than sixteen hundred euros but fewer customers are willing to pay such costs for their device. it appears tim cook's strategy of looking to charge a high price to achieve high profits despite lower i phone sales has failed the development could sign the end of a success story that began twelve years ago. well let's get the view on this now from our financial market correspondent pakistan blitz in frankfurt when an industry giant like apple stumbles or let's say sneezes does the entire tech sector catch cold. well it kind of does because apple is connected with the sector in more than just

apple. they are in perhaps an advantageous position because apple has to outsource chips, whereas huawei makesanother part of huawei's business. how is their business going to fare amidst this onslaught to the 5g side? tom: it is an important part of their business. we spent time with huawei in its labs and its factories in china. the message they are trying to send is we are more than just about telecom equipment, telecom networking gear. we are moving into new areas. we are moving into places like, you know, the internet of things. a.i. they are definitely trying to send the signal to the world that we have other businesses we can rely on. we also did this story that their chips are in a lot of security cameras around the world. there are other businesses, and they have a mobile phone business that is doing very well in china despite the slowdown. the slowdown is real and hurting many companies, not just apple. where huawei has been advantage is it prices its products at a lower price point, something apple fails to do. that really hurt apple in the most recent quarter and we will see what a

an iphone . dagen: i thought it was a luxury product. the us market is a problem for apple as well.ther problem market for apple. what i said is read the market has been selling off for a number of reasons and the reasons have now mounted. i mentioned the over innovation of tech stocks, but reserve in the glow global economy slowing down, not just china but then also the trade situation and the trade negotiations with china. does is give the united states in china to come together and get a deal done because it's in our mutual interest. >> i do think it's a really strong negotiating point for both countries is to go to genera seven and eight it will be fairly high-level talks and yeah, i do think both sides are feeling it and may bring them closer to make a compromise. >> job support my get the us and some a stronger economy than you china so and a better position to go shake and i come back to this from the beginning. they have a longer timeframe and ways of extending it and saw that at the end of the week with the system and trying to estimate economy - >> and advise them time to

even though you think of apple and samsung as competitors there's samsung components inside an iphone. so the smartphone is not done, not over. we're still going to rely on them and use them but new things are coming and we'll see whether apple can come up with something remotely as big. peter: is facebook in trouble? walt: yeah, i think facebook's in big trouble. i don't mean necessarily economically, although mark zuckerberg has said he expects to make somewhat less money and he attributes that to some of the things he says they're doing to kind of clean up their problems and make it safer and better for the users. so -- but i don't many -- i don't think they're in big financial trouble. i think they're in trouble because i think fewer and fewer people trust them and my opinion, rightly so, i think they've made a lot of mistakes in the last not just six months or, you know, really in the last three years, two, three years and i think there's not a mass exodus from facebook but it's kind of plateaued, if i understand the numbers that i'm seeing correctly. some of that is made up by t

is this an apple specific problem or is this a sign of bigger economic trouble brewing?e order market may have in store for 2019 with two wall street pros. thank you very much. does the apple shock we saw this week safely broader about the portability of the american companies to weakness overseas? >> it certainly does. it wasn't in isolation. when that report came out we also had read the numbers the airline and american and delta saying there was a slowdown. we are seeing it in the manufacturing report coming through. you would know it from the employment report that we just received that was strong. the data are softening and no doubt about it. global trade is slowing. again, much of it stems from a weaker china but seen it out of the euro zone is a. gerry: the market more broadly fell on apple news and it came back with strong job report. how do you see it playing out? rough and 22018 with concerns about recession and corporate earnings. how do you see the market now for is the 2019 gets underway? >> first two days will give investors an idea of what they will experi

in china in order to get units up right now almost feel like it is not patriotic to buy an apple. to buy a huawei because here we are saying huawei is an outcast if not an outlaw in the u.s. if the trade -- if they get an end to the trade zbudispute, yol see apple go up, you'll start seeing those kinds of discounts you need but without it, i think you'll see more estimate cuts, apple and then just have to say, well, i'll pay nine times earnings it is worth 18 times earnings. >> interesting 12 years ago this week, steve jobs unveiled the iphone for the first time, just as a reminder jim, it has been amazing work. a lot more on cook's interview with jim a little later. >>> still to come, an exclusive with zdiscovery's david zaslov micron, b of a, nike, lowe's and more all of that when "squawk on the street" comes back at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your

call, go online or demo in an xfinity store today. >>> welcome back to "fast money. appleetting slammed today after delivering a dire warning for its earnings later this month. and the options market complies an even big are move for the stock between now and then dan has all the action dan. >> total options volume was two times average daily volume today, actually on a notional basis quite a lot for, sr. a 140 stock when think about tp the company with the limited release did say they are reporting on january 29th the options market between now and february 1st imply about a $14 move in either direction about 10%. most of that is probably for the earnings move on january 29th. maybe about 7 or so percent on average over the last ten years apple has moved 4.5% in either direction. a couple of things when you think about the decline peak to trough from the highs, 232, not long ago, this stock is kind of nearing interesting long-term support. i think we have a chart since 2011 remember that steve jobs died in late 2011. a lot of skepticism about tim cook that's a log chart,

an unexpected ending! gerry: as noted, appleockwaves through the financial market on the first business day of the year by cutting its sales forecast. company put into beak iphone demand in china which is seen its economy slowing. is this an apple specific problem or is this a sign of bigger economic trouble brewing? we look at that with the order market may have in store for 2019 with two wall street pros. thank you very much. does the apple shock we saw this week safely broader about the portability of the american companies to weakness overseas? >> it certainly does. it wasn't in isolation. when that report came out we also had read the numbers the airline and american and delta saying there was a slowdown. we are seeing it in the manufacturing report coming through. you would know it from the employment report that we just received that was strong. the data are softening and no doubt about it. global trade is slowing. again, much of it stems from a weaker china but seen it out of the euro zone is a. gerry: the market more br

and an apple product is a very -- it's as american as apple pie. mean, it's become an iconic american piece, and it's unclear if you're chinese today whether that's a good thing, in the same way, by the way, that in the united states, i'm not so sure everyone would be running around buying wahwe -- huawei phones here, so that's an issue. on top of that, i think apple has another conundrum it faces, which is just the great topic we knew so much about, which is innovation, and how do you innovate, and how many great ideas does any one company or individual really have? you know, we're now at a point where instead of upgrading your phone every two years, it's going to push to three. maybe it will ultimately push to four. they've made a lot of money every time you upgrade. what do you do about that? is there the next ipad or the next iwatch? you know, what's the next thing? is this car? all these things. and we haven't seen that sort of step-change innovation out of that company, so i think it's a combination of all of those issues. >> what's the next g