>> apple say business.ts shareholders, right? that's all it is. nothing more. creating that association is probably one of steve's greatest accomplishments. >> it's cued up to play. >> awesome. >> i remember at this point when the music plays in the begin, there's just this energy, right? you have on the one side this huge bank of photographers. and i remember looking at all these guys with their cameras trained on steve thinking, you guys have no idea what's about to happen. and to be fair, neither did we. dad, you can just drop me off right here. oh no, i'll take you up to the front of the school. that's where your friends are. seriously, it's, it's really fine. you don't want to be seen with your dad? no, it's..no.. this about a boy? dad! stop, please. o, there's tracy. [ horn honks ] what! [ beeps, tires screech ] bye dad! it brakes when you don't. forward collision warning and autonomous emergency braking. available on the newly redesigned passat. from volkswagen. it took joel silverman years to become

when apple bought next, apple was pretty messed up.riod, apple's profits plunged by more than $50 million with big losses in the last quarter, with profit margins shrinking, apple seems destined for a takeover. >> steve jobs cofounded apple with steve woz knee yak and they brought jobs back as a consultant, writing one of the most unlikely chapters ever that is the war of silicon valley. >> i joined the company in february of '97. after a couple days there, i was in complete shock. the company was close to bankruptcy, and it was total chaos. the next acquisition had just occurred and there were major changes going on. and steve was involved at that point in time. but on the margins. >> i haven't been back here in over ten years. so, it's, it's an interesting feeling. it's not strange. it's a little strange, but not too strange. >> at some point in time, process was started to look for a full-time ceo. at that point in time, steve got much more involved. i still wasn't ceo. i don't think he was 100% sure the company was saveable yet, an

function foreb apple.re looking at is how much analysts have downgraded their expectation for the revenue apple will make in the fiscal first quarter. over the last four weeks, 16 analysts have cut their estimates by an average $595 million. some $6.5stimate is billion. if you were to look at the full number and see how that translates, that works out to with 27 analysts cutting estimates for revenue for the full year. same story, for the first quarter you're looking at 13. analysts cutting it by about two cents. if you brought it out and look at what happened for the next year, $.24, 24 analysts have downgraded their estimates by $.24. this is immaterial. joe: we saw over the last several weeks the string of analysts come out. also, does the commentary, negative. morgan stanley cutting, estimating a drop of 6% for iphone unit sales for 2016, jpmorgan cutting its estimate of iphone sales for next year to a range of $75 million to $77 million, down from $80 million. in addition to just the wrong numbers, yo

everybody has an apple device.it of a slowdown in the economy right now with consumer around the world, that's what we're seeing in apple but it is poised to rebound when the rest of the world does, whenever that is, what do you think? >> that is certainly a possibility. i'm not really concerned about the mac sales. they missed there but their miss in comparison to the broader pc market, they're still way ahead. ipad is another story. down more than a million units versus what expectations were. that is continuing to fall i think over last 10 quarters. i would be concerned about the ipad and how often people replacing those. you make a good point. possible when the general economy speeds back up, that apple upgrades might speed up toys, the problem with that the china economy seems to be slowing down. that's affecting sales. jo ling kent, you have info on china sales, right? >> right. as i told you earlier makes 24.2% of sales in previous quarter we were reporting here. we saw the uptick sequentially, 47% from the

i'm trying to use apple as an example but positively. apple is a catalyst for change. a great company and has great programs for diversity, but at the senior level there is great concern and by using apple in this proposal, there will be change among google, facebook, and other tech companies around the world. emily: apple last year adopted a bylaw vowing to improve diversity, something tim cook has been very outspoken about. he said in an open letter last year, we are working hard to expand our recruiting efforts so we continue hiring talented people from groups currently underrepresented in our industry. he personally came out publicly. why isn't that far enough? >> we have to understand that change has to occur one way or another. we cannot be waiting for it to occur within a decade or two decades. change is occurring, and i agree with that. but that is starting from the ground up. sufficient to have a number of people of color to join the ranks of apple and tech companies that we need examples of the top. if you have a leadership team that happens to be too vanilla

that's why apple will hit the 40% gross margin. >> still going on the apple conference call and apple is setting down 1.33%. still ahead, don't look now. bonds are on pace to have their best month in a year in one of the world's largest bond managers says there's still value out there. he'll tell us where he's putting his money right now. plus, gold has been rallying all year. traders are betting on even more gains ahead. we've got all the details ahead. muff more "fast money" straight ahead. with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. and in albany, the nanotechnology capital of the world. let us help grow your company's tomorrow, today at business.ny.gov >>> i don't think it's any surprise that markets around the world have been collapsed in the aftermath of the feds raising interest rates particularly because they continue to idiotically say we're going to raise rates eight times by the end of 2017. the fed has got to d

apple didn't. apple didn't have to. why not? simple. brand loyalty. apple's products are loved like no other. it's hard to put a price multiple on that. for a moment i wonder if that was a dead end. lexus has brandle loyalty. so does bmw. if the world is saturated with cars who cares? the prices are coming down. then i thought apple is like tobacco. brand addiction. but tobacco is interchangeable even as the category the shinging like the analysts think apple is. how about a drug company? maybe it's pfizer's lipitor, greatest drug ever. you had to take it. but the patent ran out oh and you had shares in a company where earns had peaked but pfizer was still getting a richer earn ing. there is no sensitivity in pfizer's products and there is to ap. then i had my eureka moment. we had a met rick the company gave us. it can quantify the value of brand loyalty. apple didn't explain it that way. i'm talking about the slide in the apple deck called service rev new which showed that installed base re news, the ones we pay for itunes music, the app store, iclo

get these apples at room temperature. they become too warm they become mushy and that you don't want. the shelf life is not as long as other apples so i would store them for a few days so they stay nice and crunchy the whole way through. pacific grove apples. they are beautiful and taste great. and they are great for you. i'm tony tantillo, your fresh grocer. and always remember to eat fresh and stay healthy. ,,,,,,,,,,,, my name is kieran griffin. i work here at five star auto care in rocklin california. a lot of thought was put into the change to solar and we couldn't have done it without pg&e. pg&e is very committed to clean energy. working with five star auto care we looked at how we could make their business more energy efficient and save them money in the long run. with solar we have saved about 85% on our energy cost. with this extreme drought we're using the savings from our solar system to save every last drop of water. if you are looking for ways to save energy, your first step is to call pg&e. together, we're b

is the notion of apple as a service , the success of apple pay, apple music, and the apple iphone leasingrogram, which suggests apple customers will be byline for the new phone subscribing to a service and giving them a monthly apple bill. those kinds of things and start to change the ability to discount future cash flows and give the stock higher value because the users of apple devices have to stick with it for the long-term and that can make a big difference in the future because new product releases that could come close to rival the iphone looks like it is impossible to achieve. scarlet: what about the apple watch? give us quarter to not a snapshot of whether it was significant as revenue driver. do we have any idea if it will be a big deal this quarter? the $250 average selling sales so $2.5 million in is the general number they are looking for on wall street. i think we will look at this on the long-term. how many watches on their to each iphone? how many iphone users feel like they need the watch and the for that going forward? we will seat numbers penciled out to look like that i

our apples growth days behind it? growth days behind it? ♪ emily: ahead of its earnings report, apple is ringing and a product that will have faster chips and more capacity. perhaps a new product will help revive apple's stock. investors are craving signs of growth. the shares are down five and a half percent this year. down 13% since the last earnings call. can apple get back to blockbuster growth, and where with that growth come from? the broader markets are also down. applerd: i think that will be able to develop some growth but that growth any aggregate in the overall smartphone category i think they will struggle to get over 5% growth going forward over the next few years. when you think about all the product cycles that they are going through right now. they may see individual quarters when they grow up to 10%. we are going into a new era now. it has different growth associated with it. make no mistake. they have built an unrivaled unparalleled ecosystem and that system will continue through disproportionate amounts of value to apple

a hero during apple's comeback, anderson was one executive who took the fall for backdating. >> as apple's chief financial officer, you had overall responsibility to ensure that the company complied with all financial reporting requirements, true? >> on advice of counsel, i decline to answer based on my fifth amendment rights. >> when the s.e.c. investigated. apple effectively threw anderson under the bus. he was forced to resign from apple's board and to pay $3.6 million in penalties. but in a very unusual statement, anderson's lawyer made it clear that fred had relied on statements by jobs that turned out to be false, and anderson had explained the dangers of backdating to jobs. >> now this contradicted exactly what jobs and the company had maintained, which was that steve jobs didn't appreciate why this was a problem. i think the notion that steve jobs knew nothing and fred anderson and nancy were entirely responsible is ridiculous. >> the company has confirmed that jobs himself was awarded

apple is. how about a drug company? maybe it's pfizer's lipitor, greatest drug ever. you had to take it. but the patent ran out oh and you had shares in a company where earns had peaked but pfizer was still getting a richer earn ing. there is no sensitivity in pfizer's products and there is to ap. then i had my eureka moment. we had a met rick the company gave us. it can quantify the value of brand loyalty. apple didn't explain it that way. i'm talking about the slide in the apple deck called service installed base re news, the ones we pay for itunes music, the app store, icloud, apple pay. oh, yeah. of course i paid that and that. that's an incredible 23% clip year over year just like that. huge. that's the number we need to keep an eye on. that's the billion happy device owners' number. not the exact number of new devices. that's not as important a metric anymore. the devices are the razor. but the service rev new is the lucrative razor blade stream for apple. unlike gillette's razor blade sy

is going to do with apple car, look at apple tv.ever arrived. they really decided to put all of their eggs inside a device, which i believe is wrapped into probably the ipad shipment number because the apple watch shipment numbers. >> what's also interesting what we have to watch for the language they use in this call because last year at this time they were talking about 2015 as being a really big year for products. are they going to say something like that or are they basically be this is a tick tok year and we're going to focus on the products we have out there and make them better and maybe introduce an iphone 5 se but nothing that blows the doors off? >> we'll have more on apple coming up but christine short, ed lee, lance, really appreciate the context from everybody. apple shares hugging $100 mark, slightly in the green now. we'll have more with dan niles joining us next with his take. remember he closed that apple short yesterday. you're watching cnbc, first in business worldwide. you both have a perfect driving record. >>pe

>> you can take a picture of the apple logo on the door. >> tonight, the apple corporation, it all centers on an alleged scheme to underreport apple's expenses by $40 million, including $20 million that went straight to the company celebrity ceo, steve jobs, in the form of what are known as back dated options. >> i first met steve jobs shortly after i became editor of "fortune magazine." i said, listen, we'd love to have a good relationship with apple and do stories about you. he said, look, this is how it's going to work. you know, you want to do a story about us, you call us up, propose it, you know, we'll think about it, we'll basically come up with the ideas with you or come up with the ideas, we'll call you. and i said, uh, well, steve, that's not really how we do things. he said, that's how you do things with apple. i said to myself, why don't we do a story about the stock options because no one's really figured it out. >> steve jobs had a very talented group of key lieutenants around him, and he wanted to give his people stock option grants that were so big that they wouldn't think

you worked at apple, it feels like apple, was that ever really an option? we considered all the possible acquisition targets. through that, they were obviously on the list. but at the end of the day, been there, done that. google has massive compute power in the cloud and all kinds of algorithms and research around where we are headed. it is a huge part of server technology and software that we would need to be able to pull it off. emily: you continue to run nest as a semi-independent company. how has your role changed? how have the goals of nest changed since this transition? tony: more, faster. that is it. we laid out a roadmap, a two to three-year roadmap. we saw eye-to-eye on all of this stuff. larry just said go implement it as fast as you possibly can. it is like no, i'm not going to go changing it. we believe in this, go. emily: how do you think about the next new product. how do you decide what the next new product will ultimately be? tony: sure. i think that, first, we each, every day, run into frustrations. things around the home, why is it that w

what is the future of apple? guest: when you look at watching wearables, i think the game changer is when you look at streaming. you have had a speed bump in terms of negotiations. do they go outside of the playbook and use the $200 billion for significant acquisition? whether it is a larger deal like netflix. apple has to do something big here. they are getting into this red zone. iphone seven is going to be stronger this year. as you look longer-term it comes down to streaming. head. cory is shaking his cory: they are not a company that does transformative acquisitions like that. emily: all right. thank you all. turning to the broader markets another day of big swings for stocks rallying after monday selloff. nasdaq closed near session highs. , andring movements consumer confidence for january came in at a three-month high. t-mobile propelling the sector with its 4% rise. looking at the hard drive space, both rallied more than 5%. they declined to comment. in video streaming netflix fell for a fifth day extendi

apple with steve wozniak. on friday, apple went to the well again bringing jobs back, writing one of the most unexpected chapters ever in the lore that is silicone valley. >> i joined the company in february of '97. after a couple days there, i was in complete shock. the company was closed to bankruptcy and it was total chaos. the next acquisition had just occurred and there were major changes going on. and steve was involved at that point in time. but on the margins. >> i haven't been back here in over ten years. so it's an interesting feeling. it's a little strange, but not too strange. >> at some point in time, the process was started to look for a full time ceo. at that point in time, steve got much more involved. he still wasn't the ceo. i don't think he was 100% sure the company was saveable yet, so i think he was hedging his betts a little bit. he had to make a decision whether he really wanted to take on that role. being ceo of apple is an all-consumer role. i'm not sure that steve thought that that wa

shares of apple closing in the red. cook telling shareholders that apple is feeling global growth pains. >> we are seeing extreme conditions, unlike anything we have experienced before. major markets -- brazil, russia, japan, canada -- have been impacted by slowing economic growth, falling commodity prices and weakening currency. emily: some analysts are cutting their price targets. has the mighty apple fallen? gene munster is still with me. when i spoke to the cfo of apple yesterday, he emphasized currency issues. is that the real problem or is it the reliance on the iphone? >> the reliance on the iphone is a great strategy. the downside of that is we are all waiting to see if apple can introduce a device that has the financial and social and cultural impact of the iphone. the iphone is so powerful. i got rid of my watch and i use my iphone as my clock. i stopped using my ipad as much because the iphone got bigger. it is cannibalizing all of these new devices apple is working on. emily: you cut your price target on app

cory: projections of growth for apple is imagination of what apple can do next. this year really prove that 1% growth in iphone sales really showed the limitations of growth and the ve garrity's -- vagary of the product cycle the are responding to. used to be able to really try out the product cycle as they added geography later and later into the 24 month product cycle. it is much more front and loaded -- end loaded. emily: alphabet earnings coming out on monday, and it's the will time that alphabet break out the non-google businesses. runmuch does it cost to google x, for example. we could be in for some real surprises. what are you expecting to happen on monday? paul: i'm expecting this to be a messy one. i give him credit and we have talked about this for pulling out all the different pieces that make up this monstrosity of all the different pieces of companies. it's going to catch some people by surprise, there will almost certainly be something in there that makes people nervous. it's much less likely that they find something inside. it turns out google gla

we have to talk apple earnings. we have to put that in perspective, apple.et's get some first word news, hopefully good news of vonnie quinn. vonnie: i will do my best. the leaders of the armed group occupied in oregon have been arrested in a violent standoff. it were headed to a community meeting whenever stop by fbi agents. shooting broke out, one of the protesters was killed, another was wounded. secretary of state john kerry faced a hard sell in beijing today trying to get china to support sanctions on north korea after the nuclear test last month. china has been reluctant to anything that would destabilize the regime. donald trump said he is been treated unfairly by fox news and will not be in the debate. instead, he will be at a fundraiser for veterans. new 24 hours a day covered by more than women hundred 50 news peers around the world. let's check in on market stuff. matt: some breaking news, united technologies is that with some numbers that beat on the bottom line. dollarssed by a billion on sales. $14.3 billion with the quarterly sales figure put

up-to-date's apples latest results. -- we have today's apple results. our bloomberg news contributed editor, paul. some are saying this is not a growth company anymore. but still, 10 iphones being sold every second, you have to question that surely. paul: yeah, it is a huge number and a remarkable a couple schmidt. by the same token, selling 10 iphones now and the roughly same number six years from now, it is still big numbers, but you are not a growth company anymore. the forecast apple has put out suggests we are looking at a flatline in terms of iphone growth. it is a great generator for apple, and if it is not growing, apple is not going. rishaad: i guess we have to wait for the next iphone, the next iteration. the iphone 7. could that change the game? paul: historically that has been what has happened. iphone 6 was the big generator recently. 7 is the one people are looking forward to. the trouble apple has is that is not obvious in the future that it will change things. the market for smartphones is an increasingly mature market with not much inno

much of that is apple.hares of boeing continue to fall even though earnings and revenue topped estimates for the most recent quarter but it was the company's 2016 full year forecast that came in well below expectations. boeing is currently the biggest loser on the dow. we'll have to see what headlines come out of the conference call. shares of vmware hit after the company announced it would cut jobs and the ceo was re-signing. also a disappointing forecast and much of that depends on what happens with the big deal. >> when we come back, shares of sprint see a nice gain on the heels of a better than expected third quarter. the ceo is with us live. plus amazon revealing the first ever ad for the super bowl. we're going to show that to you and twitter's fundamental problem is that it's just too hard to use. his latest piece for recode. he's with us live to make that case when squawk alley continues in a moment. you've upgraded all your old technology... so what about this? it's time to get into the new with fo

first up is apple. apple is a dow stock down very sharply.. it is down very sharply up 6%. that is a big loss of 119. so why is dow down a whole lot? third factor. oil is $32 a barrel end up merely about today site news got a whole lot of oil in the supply chain. apple down, bowing down, oil up estoril at 34. two hours trying to do. neil cavuto, but time is yours. you thank you are a much child is not going to fox news debate. the fallout you hear throughout the is pretty much the same. this would be ridiculous. we're not going to tolerate it, for mother's day and it's a big mistake. fast and furious to those who want room for oxygen that they feel will be back in the room. blake burman with the latest on the reaction to a big no-show. reporter: certainly a lot of reaction on both sides. donald trump, his campaign last night said trump will not be participating in the fox news debate tomorrow night here in des

but apple is so huge. they are having a hard time finding a supply that can surpass apple.en you are a company likes foxconn or pegatron. it is hard to find a big enough client that can surpass apple. emily: interesting. bloomberg's covering the supply chain in taipei. thank you as always. it is time now for today's edition of the best day ever. actually today is the worst a -- day ever. sorry microsoft, you get the prize. surface tablets are hitting the big time for the wrong reasons. the devices stopped working in front of 50 million users at an nfl game. windows marketing chief defended the product saying, today, on rare occasions, the stadium has network issues that prevent the delivery of issues to surface devices. although microsoft has a $400 million deal with the nfl. it's surface product has taken a beating with sportscasters, sometimes calling the devices ipads. ouch. big tech earnings continue with reports from facebook, ebay, paypal. full coverage from here in san francisco. we will see you then. ♪ announcer: the following is a paid presentation for the wen heal

what does gopro have that apple would want? why couldn't apple just make its own camera? ifi think part of you think about smartphone markets and what the different is,n -- the differentiation it has been around the cameras, enhancements. it is from the camera from an action-based perspective, from the content, from the intellectual property, as well as from some of the virtual theyty in terms of where are going. gopro is a one trick pony, we saw that last night, and that's not really the issue. the issue is, is their technology here that apple could acquire, put it into its ecosystem, which would be a step in the right direction? that is why as an investor, it is a blank sheet of paper in terms of apple's direction. this is one of those potential candidates i think apple needs to look at. emily: interesting. daniel, i appreciate you being bold with some of these productions. daniel ives, fdr managing director. always great to have you. turning to europe, the eu's executive arm is trying to solve the conflict between regulators and sharing economies like uber and airbnb,

is apple the guy? do not think so.he vast majority of time runners -- time warner's revenue now is based on cable tv networks. apple wants to make their money through new types of distribution. they want access to content. word on the street is that they are having a hard time. it cannot just have time warner. if they buy time warner, how will the other guys react? intriguingly, it is on one hand, but on the other hand, i do not see -- given the nature of distribution in television content, it will be evolving for a decade. o'donnell, porter bibb, thank you. we will be watching. almost 300,000 patents were granted in the u.s. last year. we will take a look at the next idea is. -- the next big ideas. ♪ emily: amazon is quietly building what analysts say looks like its own delivery company. one that may someday rival ups or fedex. the e-commerce giant plans to complete its takeover of a french parcel service within three months. staying mum on entering the european parcel market. amazon will open its first clade of data

the apple watch only works with the apple phone. so it also galvanizes their customer base. >> ivan, were you reassured or concerned about comments about china? >> i was very reassured that he was very optimistic that -- the biggest fear in the slowdown was going to come from china, and that didn't happen. >> they are acknowledging it's starting to hurt, but still greater china sales grew 14% in the quarter. long term, like howard schultz of starbucks p he's optimistic. the question i have is on services. thought it was interesting apple pulled that out. tim cook even in his opening statement in the conference call said that he wanted to highlight that we are one of the largest service businesses in the world. clearly they don't think investors are rewarding them or valuing them as a services company. do you need to be as an investor at this point? >> well, yes, because they say the average selling price of a phone did increase from 675 to 691. even though now 691 may be the nonsubsidized purchase price of the phone. however, the to

the ecosystem for apple, forget apple.he ecosystem. >> the apple ecosystem, i think there is a lot of derivative plays here. first the bar is set low, so they are going to clear it. qualcomm, which by the way also reports after the close tomorrow. i'm very interested in that. >> corps voe is one you added to your portfolio here. >> just yesterday. >> specifically because i think the bar is set so low in apple that it's easy for them to clear and vor cowill be a soiled spring when that happens. >> ecosystem, joe? >> let's talk about apple, and you mentioned before apple gets you to $120. i think facebook goes to $120 but i think apple does. facebook is 97ish. they report tomorrow night. year on year, 36%. quarter on quarter, 15 to 20%. i think facebook hits that 120 mark before apple. >> we haven't talked about it much, the expectations. do you own it? >> facebook? >> yeah. >> i'm market late. i wimped out than to one because it has had a nice run. it's not cheap. google is where i feel thek there is a lot they can do with

don't trade apple. own it! yeah. with ts you would take this if ititas made by apple. there is much more "mad money" ahead. ppg has fallen more than 20% from the highs. flag? painting by the numbers with the ceo. and is it safe to say the aerospace area peaked? and tonight's edition of the lightning round. stick with cramer! the momo you move the more you sweat degree's motionsense technology keeps you fresh with every move. it has unique microcapsules that contain fragrances. friction breaks the capsules... ...releasing bursts of freshness all day. whether you're meeting a deadline... ...grabbing a bite... ...or heading out for the night. motionsense, protection to keep you moving. degree, it won't let you down. seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against occasional digestive issues. with three types of good bacteria. live the regular life. your clever moves won't stop the cold and flu. but disinfecting with lysol can