new services, apple tv plus and apple arcade. as always, all eyes were focused on the freshest versions of the iphone. >> this is the iphone 11 pro and these are the most powerful and most advanced iphones we have ever built in a stunning new design. taylor: apple unveiled the iphone 11, iphone 11 pro, and iphone 11 promax. the iphone 11 is about $50 r,eaper than the iphone x $700. the ipo -- the iphone pro will still hit the same $1100 mark. i am joined by ryan reith and mark gurman. mark, you have been covering these for years. how did today feel relative to years past? event, buter apple nothing earth shattering. it has been a while since apple came out with an entirely new hardware product. the most surprising thing was around pricing, tv plus, apple arcade, the price reduction on the iphone 11. in terms of hardware functionality, nothing to write home about. taylor: ryan, talk to me about the iphone, because it still makes up a decent amount of top line for the company. what is your take away when it comes to the iphone? rya

to services kicking off yesterday's event at apple the arcade, of course, the streaming service, appleplus being priced at $4.99 a month. julia boorstin joins us with what this means for the likes of netflix, of hulu. >> the big question is whether apple tv plus costing $5 a month for nine shows at launch will get consumers to drop rival services or having a lower price point consumers will feel not they don't have to choice and will tack on another service the company believes most of its customers will see apple tv plus as incremental rather than a substitute for netflix, both in terms of pricing and the smaller amount of content that apple tv plus is offering but news of apple tv plus's lower than expected price hitting rival streamers. while apple shares have gained 3% the past two days, roku is down 8%, disney down 2%, netflix down 1%. apple's pricing is lower than all of the streaming giants and that offer of dramatically -- and those rivals do offer dramatically more content and deep libraries, including disney plus it's launching at $7 a month in november netflix, its most popu

watch and sign up for apple music. a lot of stuff to buy if you are happy with your iphone and iphones, and ios 13 is not different than the previous versions of ios. they have to make a sale about all of the things you could do otherwise people will just hold tight. >> josh, and i realize we're still two hours out from the event and you've covered a number of these over the years what does it feel like and what is the sentiment on the ground and how does it compare to previous events? >> listen, morgan, at the events you could expect tim cook to take the stage with jeff williams and phil schiller to bring enthusiasm and excitement to the eent. you'll hear the theater there being live streamed and apple employees. so clearly we're at the steve jobs theater here in cupertino, california so the excitement is there we'll see how investors and consumers react. like i said, expectations are muted. but on the other hand, there are analysts who say there is still at a lot of people on old iphones, estimated 200 iphone 6er ear

news, apple music. so at least it's in line with that the difference, though, is they've got four original shows they want to launch. >> pricing is key and content is key. when disney says it's launching a service we conceptually can visualize that and may they made announce ps adding to the appeal this sounds like a paltry service so far how do they add the library of content? >> first it will be about distribution platform, cook will talk about that today. ultimately, they will have to dive into the deep end of the pool in terms of what i believe would be a significant acquisition on a content perspective. >> netflix. >> we talked about so many pictures, agp, 816, a24. >> big studios that are producing a lot of stuff really they're thinking bold, you can look at cvs i have a com -- via com i don't know, 18 to 4 months >> the speculation out there is rampant how the media landscape is about to be shifted dramatically who is going to ends up owning which players. the scale in order to compete with strea

a lot of apple apple's big event is underway. a lot happening there. the tech giant talking television, video games and new iphones and more we have full coverage as they unveil their products as that continues throughout the next hour plus wework woes the shareholder wants to shelf the ipo we'll have those details and discuss them later it's the momentum crush. investors are fleeing the stocks with the biggest gains and could be a warning sign for the broader market so pay attention "power lunch" starts right now >>> welcome to "power lunch. stocks are under a bit of pressure take a look at the nasdaq. that's getting hit the hardest as the momentum gains are selling off. on the flip side, we have small caps continuing their outperformance from yesterday. up by 1% >> two headlines affecting your money. stocks did jump higher on a glimmer of hope in trade talks but then they turned right back lower when president trump said that he has fired the national security adviser john bolton over policy differences. that news also sending oil sharply lower. we a

and we'll be thank you and we'll be adding more apple originals every month and it apple t.v. plus will be available in over a 100 countries a lot of course there's also the new i phones they levon and the 11 pro with several cameras and to take pictures in the like a watch now has an only is on display no need to tap it to see the time but that's nothing groundbreaking competitors offer that feature but i phones one get 5 g. until next year no surprise sales are down overall the i phone still accounts for half of apple's revenues the tech giant has to evolve so it's moving beyond hardware and software so it once a streaming and gaming platform to help bring in more money. for more of this let's cross over to wall street and. yes investors have long urged apple to diversify to to decrease its dependence on one product the i phone now that the company does seem to change its business model how did markets react well apple dust changed but at least here on tuesday there was not really a big reaction on wall street and we shouldn't forget the big cash flow remains of the i phone

not only did we get the iphones, apple tv plus, an apple arcade.vices will be bigger portion, they are hoping services make up for the loss in iphone sales. we do know iphone sales are slowing. apple arcade, they are launching a gaming streaming service, 4.99 a month. 150 countries, more than 100 exclusive titles. we have more hardware being announced. seventh generation ipad starting in the 329 range. don't forget the fifth generation watch series. itics hectic out here. 399 starting. 499 and also series 3 at 199 as well. there is lot of announcements. 30 minutes ago talking about retail, at this point how to get access to a lot of these apple goods. we'll continue to monitor this it already has been exciting so far. back to you. >> susan, thank you very much. to hash it all out, dan fleck, neuberger berman senior research analyst. your rating on apple, what is your rating on this stock? >> charles, we can't give specific ratings. what i say we like the stock. we continue this think it is attractive as an investment over the next few years. we're

apple has launched three new iphones, a new ipad and the 5th generation apple watch.evealed that it's arcade gaming platform and apple+ video streaming service will cost $4.99 a month each. features on the new phones include faster processors but focus mainly around the cameras, with the top model having four, one on the front and three on the back. interesting, but many would argue apple's future is now about more than the iphone. sales at the tech giant rose 1% to $53.8billion in the last quarter but iphone sales represent less than half of com pa ny‘s overall sales for the first time since 2012. our north america technology correspondent dave lee was at the apple event in cupertino and got to try out the new devices. this is the iphone 11 pro which this is the iphone" pro which is the more expensive version of the new set of iphones. this one is the max version, the bigger version, of the three. you notice, compared to the iphone 11, you notice, compared to the iphone", there you notice, compared to the iphone 11, there are you notice, compared to the iphone", ther

tied to its new apple tv plus and apple arcade.ces about five dollars a month, making it competitive to other streaming companies like netflix and disney. but as always, all eyes were focused on the freshest versions of the iphone. >> the iphone 11 pro. these are the most powerful and most advanced iphones we have ever built in a stunning new design. taylor: apple unveiled the iphone 11, ifo 11 pro and iphone 11 pro max. the iphone xr are coming in at $700. the iphone 11 pro fries will still reach the $1100 mark. >> this was another apple event, but nothing really are shattering. it has been a while since couple came out with an entirely new hardware product that change the game. it was really around pricing. pricing for tv plus, apple arcade, the reduction on the iphone 11, but in terms of hardware functionality, nothing to write home about. taylor: ryan, talk to me about the iphone. it still makes up a decent amount of top line for the company. what was your biggest take away when it comes to the iphone? ryan: i agree with mark.

new iphones, new ipads, new apple watch, what didn't apple reveal today?e fifth generation of telecom, superfast, right? apple is waiting one more year to jump into the world of 5g, but with 5g, mia, missing in action, today's "countdown" closer says he has picks. now to prepare your portfolio for the next tech revolution. paul detreich with the names, 5g, mia names. what are they? >> companies undervalued, value stocks, going to be the biggest beneficiaries, will be the most disruptive technology of our lifetime. the national science foundation said this was the most important technological advance since the guttenberg printing press. liz: wow. >> 3g was blackberry, 4g was iphone, internet apps, uber, facebook amazon, those things, this this will pass them all. 100 times faster streaming this will change everything. the companies beneficiaries are at&t, verizon, qualcomm, apple. they're all undervalued or fairly valued at the moment. liz: by them now to catch the wind that may come next year with 5g roll-up. however apple unveiled brand new iphone 11s. th

with apple tv plus.mited but by new applet free with devices, what they are doing is getting consumers to start using services, get used to it and in the process apple will build more content or it. david: last year revenues overall for apple, 62% came from the iphone, not to mention the other bits of hardware. they are trying to move into sort of the other parts of their ecosystem. do we get to a point where they are less of a hardware company, a majority of revenue from other things? >> apple has to depend on its devices because a lot of the investment is in devices. se iphone 10, it was the year. apple could come back to have more focus on the devices, iphones next year if they launch the 5g phone. the could really change outlook for apple iphones next year. the hardware is the basis of the company. is it about retention of the customer base more than anything else so they can leverage it for the services? is that the notion we have? if they wanted to grow, they should be doing more in that. has this

apple doesn't like it not one bit. that company fired back in a state at cnbc and the desk will play judge judy and we will rule on who is right and not. and then cashing in on regional banks, the best week in almost three years. but the kre is still underperforming the market broadly. the traders check the sector balance. in case you didn't notice it's indeed friday the 13th. >> oh, no. >> yes,s it. >> scary. >> are you feeling lucky unlucky. >> clint eastwood. >> always feeling lucky. >> roll that 44 magnum right now the only thing unluckier than broken miles an hour mirrors and walking under ledders is the big familiar name chipotle, alta all trailing are they bargains? let's talk about the market this woke three weeks in a row, steve of nice gains for the broad market. eight days in a row for the dow. >> you know, i always say this i guesses in a station we say it's the most unloved rally that i remember in recent history everyone got so lop sided in august the positioning was so ultranesting that this had happen t

no apple was up but sort. >> apple putting pressure on rivals >> i don't think so.tter of mostly just the software stock that did well, winner sold laggards bought but two days in a row with a the flat s&p. >> anti-trust scrutiny as well zwloo doesn't help. >> thanks for watching >> "fast money" begins right now. >> live from the nasdaq market site overlook new york city times square "fast money. oom melissa le pete narjen. team seymour, guy adami on the big show tonight trying to work it out we work attempt to plou ahead with the ipo ziet a call to shelf the offering bold on gold with a blinding $2,000 an ounce target our rgt traders debate that. a chip on that and starbucks feeling the heat was it apple day something going on in cupertino, li

that will compete with the likes of netflix and disney plus apple t.v. plus deputies in november and will cost nearly 5 dollars a month it will be free for a year for anyone who buys a mac and i pad for ny phone. today we're excited to tell you that the 1st shows will be available on november 1st. and will be thank you and we'll be adding more apple originals every month and it plus will be available in over a 100 countries a lot of course there's also the new i phones they levon and the 11 pro which several cameras and to take pictures in low light a watch now has an only is on display no need to tap it to see the time but that's nothing groundbreaking competitors offer that feature but i phones won't get 5 g. until next year no surprise sales are down the i phone still accounts for half of the apple's revenues the tech giant has to evolve so it's moving beyond hardware and software so it once a streaming and gaming platform to help bring in more money. for more of those notes crossed over to wall street and yes yes investors have long urged apple to di

board and he has the upmost respect for their team on november 1st, apple will launch apple tv plus,irst big push into original content. it's going to be selling a streaming service just like disney is going to starting on november 12th. so you have these two companies that for many years have been partners apple distributing disney content, selling disney movies on demand. now apple directly going into disney's business into that streaming business so now they are rivals as well so a bit of a frenemy situation here would make sense why bob iger would not be able to continue to serve on the board of this company which has now become a rival of his in addition to being a business partner. guys, back over to you >> jewelia, thank you. julia boorstin, thank you. >>> let's switch to fedex gearing up to report its latest quarterlies next week. if you are betting the company will deliver on its results, mike khouw is laying out a cheap way to play the stock for about, we call it his call to action. mike, it's yours >> for the call to action, a call spread risk reversal. a strategy we like

for one thing, apple service will only have content reduce my apple.won't have anything comparable to the range of content you will see either on netflix or is the alternative streaming network that is going to launch very shortly afterward , which will have all of that incredible content that disney has been producing for many, many, many decades. they have got a ramp, along ramp on their video service. vonnie: is it fair to say that $4.99 is a attractive price point? bob: in theory -- david: interior. it depends on the content. some people thought they might justmulti-month free trial to get people used to it before they charge something. it's a bit aggressive to charge $4.99 for a service that is a complete unknown if you ask me. just because it's apple doesn't mean it's great. good point,make a when you're free but only with a piece of hardware. david: but it's amazing, listening to the announcement, the auditorium is full of these fan people who are clapping anytime they burp. apple is such an unusual company, people give them credulity no matter

you're buying more apple products be that air pods or apple watch or apple services.n ought to be more broader on what is happening and how much you are monetizing the ios install base versus just looking at the units. >> how would you respond to that >> i think i like the argument of install base. if you don't feel like you want to replace that, it's very much stoke tg. that's something to monetize. it's a very difficult equation. apple has an -- people stick to their phone longer. it's kind of a zero sum game. it was very exciting two years ago. now it's painful. similarly, as apple gets into offering new services and continues to grow revenues from existing services and even as you see apple trading revenues for other devices or you see apple is -- so the upside from this new services and newer opportunities are real. there will be value today. we have confidence. iphone direct revenues would reach a real stable and sustainable flaw which we are not there yet. >> when does apple start trading on hopes and expectations for the 5 g iphone next fall even if this cycle

, apple tv plus and apple arcade.ike the apple tv plus subscription price of about five dollars a month, competitive to other streaming companies like netflix and disney. but all eyes were focused on the freshest versions of the iphone. [applause] >> this is the iphone 11 pro. these are the most powerful and advanced iphones we have ever built in a stunning new design. taylor: apple unveiled the iphone 11, iphone 11 pro and iphone 11 pro max. the iphone 11 is $50 people than the iphone x are at $700. the iphone 11 pro price will hit that same $1000 mark as the 10. idc program vice president brian reed and bloomberg's mark irvin joined me to discuss. >> this was another apple event, but nothing earth shattering. it has been a while since apple came out with an entirely new hardware product that changed the game. the surprise was around pricing. pricing of td plus, apple arcade, $50 price reduction on the iphone 11, but in terms of hardware functionality, i think to write home about. taylor: brian, talk to me about the

but we know why he is stepping down now on november 1st apple will launch apple tv plus, the first bigush into original content it's selling a streaming service just like disney is going to starting on november 12. you have the two companies for many years have been partners. apple distributing disney content selling disney movies on demand now you have apple directly going into disney's business into that streaming business now they are rivals as well. so a bit of a frenemies situation here certainly makes sense why bob iger would not serve on the board of the company which has become a rival of his. in addition to being a business partner. guys back to you. >> julia, thank you. julia boorstin in l.a. let's switch to fedex, gearing up to report the latest quarterlies next week, and if you bet the company will deliver on the results, mike khouw is laying out a cheap way to play the stock for a bounce we call it his call to action. mike it's yours. >> yup for the call to action looking a call spread risk reversal this is a strategy we like in catalyst earnings obviously fed decision, an

up 23 year on year road map with apple, upping the ante in the streaming wars big reveal of apple tv plus overshadowing the iphone 11. do either move the needle for investors? >> plus, quote, bone heads, president taking on the fed, calling the extcentral bank naie and telling them to cut to zero. >> is wall street afraid of elizabeth warren more from jim on what he's hearing from leaders in the financial industry about the 2020 presidential race start with apple, though, shares rising one day after the big product event, not only did the company unveil a new line of iphones, and other devices, created lots of buzz with news of apple tv plus that this is what tim cook had to say on stage. >> we're excited to tell you first shows will be available on november 1st and will be -- thank you and will be adding more apple originals every month and apple tv plus will be available in over 100 countries that launch and it is just $4.99 per month for your whole family! >> we're going to talk to morgan stanley's katy huberty the event was compelling to a large degree because pricing was aggress

tv plus or apple arcade. these services that will develop other revenue streams they don't currently have so they're not as reliant on iphone sales. neil: let's talk about what happens next year. this year might be just an off year. forget about the expense, whether people think the product is changed enough that it warrants slapping down up to 1000 or more bucks to get it with when next year might be more the case, assuming that time 5g is more ingrained into our technology culture, that you can take advantage of that, what do you think? >> next year we'll see a dramatic jump we talked about earlier. 5g is likely next year. you have rumors up there, folding iphones, sufficient like that. which is possible. but i think the big thing is going to be five ge. 5g is absolutely a game-changer. it is just a question how it will roll out in the u.s. t could be a few years before cell towers reach everywhere with 5g signals but the hardware will be ready when it does. neil: russ, thank you. we'll see what they offer.

trump talked about apple building big, beautiful plants in the u.s. or not that is actually true. and making a point that he has apple on his side, calling tim cook one of his good friends. from a strategic standpoint, i am not sure much has changed for apple. from trump, it is a p.r. win. taylor: another day, another apple product, another tariff. that was mark gurman. since the streaming wars has begun and big companies have gone into the game, it has been bad news for roku. cheaper services like apple tv plus are making investors worried about how roku will be able to compete. are investors overreacting? i ask rosenblatt security analyst mark zgutowicz on the phone from minneapolis and woo jin ho. mark, let me start with you. is the market overreacting? mark: thanks for the question. i would say first off, more recently, the market has been reacting to comcast and the streaming box set. they are new to the market. they came in with the streaming box back in march. they will offer the box for free. there is a pretty significant overreaction to that

is on apple devices.p. what's so revolutionary about apple, it's an apple service you can watch on a samsung, roku, anywhere you go you can watch this service that walled garden of where they have complete control over you as a customer doesn't look the same as it used to plus, think about the world you live in. comcast puts their content first and foremost the video you subscribe to takes preference over other content you could get. kind of what i would say, i don't want to say walled garden, but control over who comes first and populates isn't so much a new thing inside the prodder media space. >> really quickly. we said measures of success are different depending on the player you look at tell me who succeeds and who fails. >> i think a reality is a lot of these are. disney will obviously be successful apple i think is going to be successful the question is honestly going to be as all of these services come out and give the consumer so much more choice at much lower price points and great price value,

remember iphone is 50% of apple sales. they announced apple tv. it will have a november 1st rollout. it will be $4.99 a month. that is cheap compared to the other streaming services that took a hit. if you buy a new device you get a free subscription for a year to apple tv. moving on, apple arcade, this is the second part of the services also holy anticipated, 4.99 a month as well. 100 exclusive titles that will launch mid-september, september 19th, as a matter of fact. moving on to the ipad. 10.2-inch ipad at 3.29. that will roll out at the end of the month. i finally want to draw your attention to apple watch. that is what people didn't know what to expect, apple either kept it under wraps or didn't make too much innovation here but pretty much was in line. there will be a fifth generation of this. it will have health features that are really interesting and exciting. 4.99, $499 if you get the cellular service. 399 if you don't. all inclusive here, very exciting platform. the stock was only up a little more than 1% today which was a little surpr

now, apple pay, the apple credit card is even more secure.st of all the looks of it , fits apple's branding. apple's branding is to have a lot of secrecy about what they are doing but also styling and beauty. things like that. this card is just the most beautiful card i have ever had in my life. i don't even judge beauty that way. i don't put high value on it. i don't, but it is. it doesn't even have a number written on the card. there is no camera that can peek at what you are doing and see what your credit card number is. there is no way people in a retail store ever get your credit card number. it continues protecting your privacy, everywhere you go. what you buy and where you buy it shouldn't be tracked that closely, in my mind. i don't want it. -- we see you use oh, that you bought a milkshake two hours ago. i don't want somebody coming up to me and saying that. taylor: i want to get to privacy. you are giving us free advertising because you keep flashing your iwatch around. if i heard you correctly, said it was one of your favorite piec

apple is taking the e.u. to court over its tax ruling the tech giant has been fined $13000000000.00 euros in back taxes by the european commission apple wants to overturn the ruling with the support of ireland me tell you why. also coming up your way gets ready to reveal its new smartphone where the 1st one without google android. and while prices remain high and the fears of a new middle east conflict we get some expert analysis from frankfurt and london. welcome to g.w. business i want to johnsonville and good to have you with us and was starting with a landmark case in the e.u.'s crackdown on tax avoidance by multinational companies apple has launched a legal challenge to an order to pay $13000000000.00 euros in irish back taxes in august 26th in the european commission says tax rulings by ireland in 19012007 had aught efficiently reduced apple's tax burden for over 2 decades effectively making it illegal state aid apple is expected to argue that it did nothing wrong as it had followed the irish and us tax

his apple unique in this? >> -- is apple unique in this? the government does make exceptions.s not necessarily unique. there are other exemptions. he gave another example of likeer company on certain paddle boards and things along those lines, oars used in kayaking devices. it's not a complete anomaly, but not everybody gets that. take i wonder what you from this long-term when you think about apple and china. what does this signal coming down the line? >> i think the whole trade war between the u.s. and china has sent a signal to u.s. companies across the board that it's probably best in the long term not to be overly reliant on one particular region, one particular country, particularly one the u.s. can take a -- can pick a fight with. kurt: a tough fight, for sure. tom giles, thank you for joining us. coming up, how one platform is looking to keep from them -- keep employees from burning out. this is bloomberg. ♪ learned wednesday, we of dropbox's plan to become a competitor in the growing marketplace productivity space, putting it in competition with slack and microsoft. a

i think apple is in the game but this is not why i like apple. >> i think roku down 10% is overreaction but i can understand why people are selling first asking questions later. given the run of roku the last six weeks. if i look across the landscape i think the opportunity is in roku gene at 350 process. okay i'll play the game but to get interest with the 24 multiple you're talking about $14.5 in earnings which makes them high on the stret i commend him for having that conviction but it right now i think that's a little excessive i could see 280, 350 is a reach. >> we wosh's biggest investor to urging the company to shelf the ipo karp has a chart showing the rockier road ahead one tax writer says investors need to brace for the pull back. he says what has him worried much more "fast money" right after this do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. so why isn't it all about you when it comes to you

apple says this is not the case and has appealed. are hoping to get moment from the company, that was not the case. apple said they pay the most tax in the world and claimed the decision from the europeans lacked any logic or sense, and they claimed the numbers were tweaked in a way that presented apple in a bad light. essentially, pretraining the company is paying no taxes. if you look at the european side, they tell you that they still believe they are right, that it is pretty obvious that apple has set out a tech structure in europe to pay the least amount possible. they do believe, if the arguments are validated or vindicated by the courts, they can continue to get tough on american tech companies to make them pay more in europe. of course, these cases are happening as tensions continue to play out between the united states and europe over big american tech. the president of the united states donald trump has said many times that this is only happen because they cannot compete on the innovation, so they must compete on the taxati

the apple phones are not 5g enabled.t has been a concern from analysts i've been talking to people. they are not too worried they say they upgrade their phone every year, so they can upgrade next year to the 5g device a lot of excitement over the new watch. many are saying they are looking forward to the new series watch saying it will be a great gift going into the holiday season. iphone sales are still over half of the sales revenue the sentiment is good here >> i'm guessing you are likely an iphone user it is not about the phone or the watch, all the products. those aren't things you can layout there you sign up for news, music, the new arcade service those are the things apple really wants you to have >> exactly we are seeing so much of it here in this store. we are talking about how the watch will play into the phone we know they bundled some of that new streaming service if you buy new products a lot of ads in the store for the trade up program you can definitely see that in the store here you can see that in the c

the petition will try to leapfrog apple in the next generation. that is good for consumers because it means it is always pushing the edges and the consumers will benefit. >> reporter: and cupertino, maureen naylor, fox 2 news. >>> the time is for constantine. two events last year. all, by the way we have to tell you about a streaming service, we learned more about the apple streaming service, the apple tv plus which starts in november, it will cost $404.99 not. yeah. it is lower than a netflix and disney. i'm remiss on the screen. a new iphone or ipad, you will get a year of free access. also, apple announced the video game service coming later this month which also will cost $4.99 a month. >>> is now 4:18, two big events last night in san francisco that really put traffic to the test in mission bay. the giants had a game at oracle park just down the street at the same time the dave matthews band was on stage with the concert at the new chase center. they were worried it would be a traffic nightmare, but, most people said traffic was not too bad,

we were a little caution on apple because they are behind the 5g cycle if you remember, in 2012, appled the first 4g 5. every smartphone in china is behind the 4g cycle. this year is different we are seeing most of the oems launching 5g aggressive. we believe that those chinese oems will take in market share in the high end and middle end second, this year, the upgrade for the new iphone is a little slower compared to the last couple of years. last year, you have iphone 8 8 plus upgrade to the 10 r this year, we don't have the new increase we think both face a little pressure and with this trade war, apple should face some pressure that's why we think the market expectation for the 5g cycle it probably too high for next year. we believe apple numbers will come down. >> got you no doubt that some folks think the smartphone cycle is tapped out. the hardware side is a given increasingly, apple wants to call itself a services company apple tv plus coming out the arcade coming out. pretty soon, we'll be cutting a check every month to these guys. >> the service business actually grows pretty

china: tom, we know that needs apple and apple needs china, but will we start to see more red tape, moreficulty for u.s. tech companies over there in china, and that is china's way of pushing back? will beo expect there pushed back from the chinese government if more companies do, pushbt -- there will be ack from the chinese government if more companies do, in fact, move out. but they are operating from a position of strength, given they are in the exporter to the u.s., and i do think this is a challenge that is going to take time to unpack, but i think in the case, again, for apple, they are kind of in a class by themselves. they have importance to both the chinese government and the u.s. government. they have the ability to lobby both sides, and i think that puts them in a unique position. have beend, mark, we ,alking about trade and tariffs since early to mid 2018. how easy is it to move to other locations outside of china, like vietnam? equipment, it of is actually quite simple. one person at apple who works in the supply chain described it as and paste,, copy, moving a supply chain

plus we're watching apple. just not in the wap y it hoped rell shares be a casualty of the staming wars power lunch will be right back you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. >>> reports say it may cut its valuation now in half, again, to appease investors and that's not all. leslie has the latest. >> hey, it's a day by day development here they balli the market is anticipating wework valuation will come in at $10 billion. the terms which would include a valuation range could come as early as monday. the company was most recently valued at $47 billion by softbank but investors indicated a lower valuation was needed we were announcing changes in an amendment

apple ceo mr. cook argued that unlike your peers who run ad based businesses, apple is a company that fundamentally is privacy oriented. do you believe that apple is a privacy oriented business? >> yes, absolutely. we believe privacy is a fundamental human right. >> well, then why has apple allowed google to be the default engine on safari? >> apple has with all products focused on the best consumer experience. when it comes to search we conducted an open competition to see what did we think would be the best for our consumers. and consumers have always gone to google. and so we ultimately selected google but we make a number of options available to them. it's easy to change the default on the iphone to any number of choices including duck duck go and other search engines that perhaps have more privacy protections. >> apple charges app developers a 30% tax on in app purchases in the first year and 15% every year there after. in a statement submitted for the record, spotify argues by charging the 30

it is about content, apple arcade around games, apple pay, apple tv, the move everyone was watching outre they would price tv+. it is cheap. it is cheap! you may not have to choose between netflix, disney plus, apple, it is the quality of the content. talking of the price, there has been a concern about ever escalating price, price fatigue is creeping in. you have got a cheaper entry level new model, so people can go out there, get a new iphone that will actually be relatively, i say relatively, relatively easily priced compared to other one. they have been playing around with this, they announced $1000 iphone one year ago asa premium announced $1000 iphone one year ago as a premium product, then they emphasise the similarity of product with the cheaper version. there is experimenting going on, then, the play is the services. nice to see you, thank you for coming in. so much more detail, if you are a ha rd core much more detail, if you are a hardcore apple phone, i know there are many up there. let's take a look at some of the other stories making the news. the state of california is cl

will apple succeed or will the european commission?se will go on for a long time for —— long time. however, apple faces a much tougher challenge this time than the last time. the commission has recalibrated her approach, essentially learning from the instructions the court gave her last time around. this is a refined approach. the first indication i think we will get is that it the end of september when the general court is going to rule on to other competition cases involving tax and thatis competition cases involving tax and that is chrysler and starbucks. that will give us an indication into what the court‘ idea is was not this is about illegal state aid. that is the bit of law that means the penalty for that is to pay back taxes. donald trump obviously describing the european union as acting as a supranational tax the european union as acting as a supra national tax authority. it isn‘t but it is a supranational authority. the underlying purpose of the eu is to create an underlying in the eu is to create an underlying in the area. i