but well i think the apple has its own purpose i don't ever say go for apple and google rags i just don't see them necessarily as good guys in this i still don't but i think what they're doing right now is they're pretending to resist governments by saying we care about our our customers but they don't really care about our customers just look at their recent history and you know that's not true i think what they're actually trying to do here is that apple and google or essentially saying we want to be the ones who control the information gather the data store the data and we decide what governments get i mean in doing this apple and google as tech companies become more powerful than any government in the world in terms of surveillance they become the most powerful in-city when it comes to that i think that's ultimately what they want and that's exactly why the government is turning to that because like we said i mean the government is going to be able to break this we saw the f.b.i. when they finally cracked the apple phone when they were trying to solve and do the investigation in calif

we asked apple for assistance in the president asked apple for assistance.nfortunately, apple would not help us unlock the phones. apple had deliberately designed them so that only the user, in this case the terrorist, could gain access to the contents. today i am pleased to announce that thanks to the relentless efforts and ingenuity of fbi technicians the fbi finally succeeded in unlocking alshamrani's phone. they contained information previously unknown to us that definitively establishes his ties to the arabian peninsula. we have a clearer understanding of his associations and activities in the years, months, and days leading up to the attack. the information from the phones has already proved invaluable in protecting the american people. a counterterrorism operation targeting an operative, one of the overseas associates, was recently conducted in yemen. we will not hesitate to act against those who harm americans. i would like to turn the podium over to director wray who will provide further information and an update on the fbi's investigation. >> thank

big competitive advantage is the fact that the podcast app from apple, the apple tv plus, apple music, they are built into the iphone. it sold over one billion iphones at this point. million million, 600 ipads, apple watches, air pots, apple tv. spotify is a software. . . they don't. have that built-in hardware. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- apple has a big marketing arm. the rbc have the money and the resources to push for original podcasts and the tv plus program. tracy: what is the monetization strategy? >> monetization would definitely be part of that paid subscription as part of apple tv plus or apple music. at this point, it seems these types of shows would be paid for by apple in lieu of the podcast producers not slapping advertisements on top of the programs. you see spotify doing a mix of both. they pay for shows, but there are also advertisements. itle will skip advertising, is a very small segment in their overall services revenues. it is basically tied to app store search ads. also some other applications, like apple news. but w

we received effectively no help from apple.canvassed every partner in every company that might have had a solution to access these phones. id, despite what some claimed in the media, so we did it ourselves. unfortunately, the technique we developed is not a fix for our broader apple problem. it is a pretty limited application. but it has made a huge difference in this investigation. while we are thanking the fbi's computer scientists, engineers, and other professionals for their hard work, we should also be thanking -- thinking about the cost of all that work. public servants, already swamped with important things to do to protect the american people, toiling through a pandemic and with all the hardship and risk that entails, had to spend all that time just to access evidence that we had court authorized search warrants for months ago. our engineers and computer scientists working to access these phones were also needed on other pressing national security and criminal investigations. but the delay from getting into these device

apple gives -- apple misses its forecast for the first time in years.ngfed expands its program. boris johnson pledges a lockdown exit plan saying the u.k. is past the peak of the outbreak. welcome to daybreak europe. we have seen the best month since 1987 for u.s. equities. for month in a decade equities. many markets are closed. in japan you are seeing red on the screen. u.s. futures indicate a second day of decline. u.s.rday's drop came from jobless rates. in europe, we're not going to have trading. have trading in france, germany, or italy. off across thek board except for oil set for a weekly gain. opec plus staging 10 million reduction -- 10 million barrels of reductions. the coronavirus pandemic has made this earnings season highly unpredictable. more than half the firm's have reported rock-bottom. here to discuss another driver daniarket is bloomberg's burger. strategists had already cut expectations. did companies meet the lowest bar? >> for the most part. the way to think about it is that earnings have been bad but not worse than anticipated ov

apple. those five, those are his big five it shows you that we've got this narrowness in the market itself in the broad market in terms of some of these nasdaq names and you have warren buffet with this very narrow group of five stocks i'm amazed that he wasn't able to find something out there where he said this is time this is the time to own this particular stock it's a bit sobering because it's surprising i went in expecting he did multiple names >> the market may have moved too fast away from buffet in that you never know how he was thinking towards the depth of the sell off and lo and behold the fed comes in and we have this v shape bounce in the market now maybe he thinks that this v shape is not going to hold itself in the market and thus there are no opportunities today. because people think the market shouldn't be where it is and maybe she's waiting for some move lower who know what is he thinks going back the to the lows but obviou the fed coming in the way it did was a significant

today matter to apple? is it a nice to have, to continue to drive sales, or is it a need to have? >> is a great question. to 10% of it 7% revenues come from the stores, most coming from online. the iconic apple brand, the golden brand that cupertino and tim cook have built, is based around the experience, the products. that is part of the aura of apple. and when you look at the opening of the stores overseas and your start to see them in the u.s., it is important -- you are starting to see them in the u.s.. it is important for letting the that applee recovery and other comedies are seeing. -- laying the seeds for the recovery apple and other companies are seeing. how optimistic are you about recovery in the second half of the year, knowing we are still in this and do not know when we are coming out of it. some states are starting to reopen and we see a resurgence in texas and it is unclear what the next few weeks look like, let alone the next six months? >> it is going to be turbulent for apple and other co

all of them responded except one that is an apple. apple just give us one statement that is we have a long term policy not to disclose our supply chain. not to. my june contacted me and we began to work together to apply additional pressure to a company with headquarters here in the united states my mission singled out a number of facilities that he believed were in apples that that it had a very heavy environmental impact in their locality and when he level of those charges apple was shocked and sort of in denial that this type of problem to this extent could really exist in their supply chain. i think it's important to understand that this is not just about apple you know this is about the id industry. they all share printed circuit board manufacturers they all share chip manufacturer is you know despite their audit protocols there is a lot more talk than walk on environmental impacts in the supply chain. you say to yourself how could they not know about any of these problems but you know it's it's always you ask and it's all you lo

in a case study of busts and booms through the lens of apple, check out just how far apple has rocketedarch 23rd lows which is nearly 50% in two months but now an apple investor might be faced with the quandary there's only one way to explain. ♪ >> time for a good old-fashioned tag team starring mike and carter so, carter, you're up first. >> sure. so take a look at one of two charts on apple and very clearly defined peak in february 326 and a plunge to 212 and back to 324 and very symmetrical and you drop 35% and you have to go back 52 and it's right back to a former high. second chart when you return to a former high, you've returned to a level of overhead supply in principle, there are people who bought in february who then endured a 35% sell-off and didn't sell and now seeing their money returned to them, they want to grab it. they're interested sellers get me out, and that's only half the supply then as opposed to people that are breaking even, there are people that brought the low. dumb luck or brilliance, down at 212, 220, and once you flip the cards over and show them a 40%, 50%

apple has bought back 24% of shares in the past five years.best way to ensure a robust bug."ry is to beat the this is bloomberg "surveillance," on a mayday, on a friday.

look at apple for guidance. so, i suspect that apple, opening up if it goes well, will be followed by other companies. >> in an open letter to customers, apple road, the decision to reopen was not rushed. a store opening, in no way means that we will take the preventative step of closing it again, should local conditions warrant. >> a sign at the dorsett a store in palo alto will be offering walk-ins soon, four apple stores in the bay area remain closed. all of them are inside major shopping malls. julie? >> all right, jason appelbaum five reporting live for us tonight. thank you. >>> new at 10:00, san francisco poised made five arrests and three suspected to gang-related shootings. two of the shootings happened on brookdale avenue, in sunnydale neighborhood, one in march, the other in april. the third shooting, that you see here, was on may 12th, at ocean avenue, and jewels avenue. all five suspects were booked on a number of charges, including suspicion of attempted homicide, and being in a gang. police say th

apple stores user data into new servers. there is a whole litany of inconsistencies one can point to. perhaps no one is a dealbreaker but if you put them all together and you see apple still has work to do with it will fulfill the true criteria institutionally that with the true economic leap forward to really move the dial of economic history and that evolution of capitalism. that this is apples opportunity to lose with the big tech firms this is their opportunity to lose. and i think where apple to rollup its leaves to become as scrupulous as general motors once was under the leadership of sloan, to design the symptoms but became the modern mass consumption corporation , a model that spread all over the world and was responsible for much of the wealth creation the 20th century in combination with democracy. it lifted many boats not just the elite. this is a massive market opportunity if apple doesn't throw up its leaves and it agai again, somebody will. maybe it won't be a big corporation or a coalition. or other firms of

i got the chance to speak with apple ceo tim cook and asked about that, how is that impacting business, how is that impacting demand for his products and services? cook telling me, it's clearly helping the ipad and the mac we envision both of those to have improving year over year performances in this current quarter. what we see is that the use age of face time has gone through the rife, not getting talked about as much, but the usage says otherwise i asked cook about the new iphone, the se that comes with the powerfuls processor and lower starting point at $399 i asked cook if he was worried about the se denting demand for the higher priced models and then tanking his margins cook dismissed that telling us we are never worried about cannibalization. our view is if somebody is going to cannibalize it better be us there's probably a little overlap between the two. the se right now cook saying appealing to android switchers and appealing to people who want the most powerful phone but in a smaller form factor. sticking with the iphone i asked about iphone demand in china what are they lo

apple is not releasing a forecast for the quarter or the year. some analysts disappointed about that. i did get a chance to act about his pipeline of future products, whether the pandemic will impact their products later this year. he said supply chain remains resilient and durable. he also told me we cannot be more proud of our current lineup and we are excited as ever about the pipeline. stores have reopened in china, south korea, austria, australia. the first halft of may to open up in the united states, but that will happen slowly, just a few initially. they are also talking about how they bring employees back to headquarters in cupertino, california. there will be temperature checks, health screening, and possibly covid-19 testing. lisa: that was emily chang. for more now on apple's earnings and the path forward, we are joined by evercore isi managing director amit daryanani. going to $330 a share. what are you seeing in the earnings that people in the market currently are not? amit: thank you. a couple of things stood out more positive. one

apple ceo tim cook said he won't pretend to provide a positive outlook amid the pandemic. we've got some fresh data on the uk economy the april final manufacturing pmi come in at 32.6, just a touch below the flash at 32.9. broadly within expectations. now the lowest on record a couple of interesting data points the manufacturing pmi output sub index was sub for april. march coming in at 43.9. in terms of new orders, that sub index also the lowest on record. so uk factories suffering the worst month in three decades that is the message from the data provider. the key here was priced into markets given that we had flash numbers, final numbers that we saw early on let's push on to early reaction. we saw that pressure this morning. now looking at the stock ftse 100 down 1.9% following a sharp drop yesterday that index dropped under 3.5% within the benchmark. the stand outperformer better than had been expected sticking to their strategy that allison rose outlined before the pandemic sit they also set aside 800 million pounds for future losses looking at what that bond market l

start with apple. look at that. it's still a trillion dollar company, way down this morning after its financial report late yesterday. i've got more on all this. amazon, huge drop, down $120. they are plowing their profit into coping with the virus. microsoft, not much impact from the virus but it's caught in the downdraft. microsoft is down nearly 2%, $3.46. >>> next case, the political news. topping that this morning is joe biden. he has denied a sexual assault allegation. he says quote, this never happened. i've got more on that in a moment, too. >>> got a big weekend coming up. texas opens up a lot of businesses. who will go to the store, the barbershop, the restaurant? that's going to be a pretty good indicator of the urge to get out of the house. >>> in california, the governor has re-locked down the beaches. how will that go down? this is a pivotal weekend for the opening up movement. big deal. and today, being may day, some workers are going to walk off the job. they are trying to shut down the people trying

apple and amazon apple pulling its guidance saying it can't see past the windshield on business for thecouple of months. amazon saying it is going to devote all second quarter profit, estimated $4 billion, to deal with the pandemic joining us now, tim lesko he is a share holder in both companies. amazon taking all of its profit devoted to the pandemic response these are good things but as a share holder, are you happy with it >> i think amazon has been investing to the long term for a long time. at some point, that will turn into earnings and investment at some point, we'll look to that to be a dividend pay or buy back we have no problem with amazon investing in the business at about half of the cost that they outlined in investments that will lead to the better business and about half of the costs related to covid-19 that will go away >> i've been doing this since the day amazon went public like you said, we'll wait for profits tomorrow that has been going on since that day and has never mattered. has amazon effectively turned into a utility >> probably better than a utility. nobody is

today, barr ripped into apple. >> apple has disabled features and applications on ne thereby facilitating censorship and oppression. if technology companies like apple are willing to oblige the demands of authoritarian regimes, they certainly have no excuse for failing to cooperate with rule of law nations. >> bar said it took four months to unlock the phone without help from the company. apple said it does not store users passcodes and does not have the ability to unlock protected devices. apple went on to say quote, there is no such thing as a backdoor just for the good guys and american people do not have to choose between weakening encryption and effective investigations. >>> we are starting to see restrictions lift across the state and now we are learngone tribal casinos reop to a big cr thejo's casithfirst of three popular casinos to reopen this week in the area. every other slot machine will be turned off to a maximum of three players can sit at a card table and customers must be scanned for temperatures out the door. a public health leader acknowledged the tribes are sovereign aut

do it because then google and apple. we're the ones who are storing the data right the problem is going to be this that when the government comes in and says hey we can use this for a much wider applications then coronavirus where does it go away at what point did those ups disappear or do they become embedded in the framework of every smartphone i think most people are smart enough to know that's where we're headed and that's why it's a problem either way the data is going somewhere we all know that nothing nothing is actually free especially when it comes to the data collecting apps cohost spend so on thank you for your time and analysis. sort of thing. tensions between the united states and china are on the rise while it's creating concern that it could be the start of a new cold war and it could eliminate progress already made on the u.s. china phase one trade deal artie's rachel blevins joins me now to discuss the details rachel what's the current state where we saw them sign the phase one trade deal just a few mont

amazon and apple both out with results. amazon really spooked the market and the fact that they may lose money. they are going to spend $4 billion or more potentially to help with warehouse capacity. they see a surge in demand, and also buying protective equipment for their workers. that stock was down overnight. jeff bezos told investors, take a seat. apple boosted their share buybacks and dividends. what spooked the market for apple is the fact that they didn't give guidance for the fiscal third quarter, the first time in a decade. what i find so interesting is they were supposed to be well-positioned to deal with the pandemic. the trends we are seeing during lockdown favor both, more online shopping and more screen time, but the market wasn't buying it. alix: and marie horton, thank you. in washington -- annmarie hordern, thank you. in washington, president trump reignited the prospect of a trade war with china on speculation they could have spread the coronavirus. he said he does not have to cancel debt to punish china

is that going to hurt apple later on? an interesting model when it comes to retail. their stores, i am sure if you have been into one, is not just about selling the products. they are selling experience. their sales teams are there to help you understand the products rather than just trying to push you into the sale, and you regularly will see an apple store full of people not necessarily buying. this is a long path of conversion for them. i think a shift to online in the long-term would hurt apple. i think they rely on their stores and it is important for them to get their retail operations back up and running. their online-- sales were an improvement compared to expectations, but they do need to get the fiscal retail stores backup and running to see a boost in sales again. matt: are the supply chain issues going to hit apple harder than others? amanda: what was interesting on the call last night, apple said they did have some supply chain issues earlier on in the quarter. obviously, china was hit by the covid crisis bac

microsoft says hit refresh is gone from windows company apple goes for the manufacture of the ipod and desktop computers but now with the iphone but they lost that day one mentality at apple i do think they will be in trouble but they will hang onto that as long as they can and we will find out who is right once the time is up on that. >> so with this critical point, do you feel it is just the nature of the tech companie companies? >> or do you believe reporting at all these companies with that mentality that it could have with leadership focused on that? >> i do believe that so first of all the issue between tech company are not is getting more blurry than it was. look at the automotive industry the auto executive a few years ago might have said we have no need to reinvent we have a car that runs on gas with four doors and five seats. actually those that have gotten ahead like electric vehicles and self driving those are much more successful in the future so the whole idea that day one is that way and tell it's desperation time to change your business but start inventing the next thin

yes so essentially it's important for people to understand 1st of all that google and apple together have tried to create or they say they're creating it will be released this month this contact tracing app that is separate from the contact tracing apps that are being developed by different governments around the world so in the u.k. they're not using the google apple version not to say as necessary a good or bad thing but they're not using it they're creating their own and the reason they're creating their own is because they along with countries like france and germany have decided that the google and the apple contact tracing app doesn't go far enough so that's one of the concerns here so essentially what these apps have in common is they use bluetooth technology you have an app on your phone someone else has it on their phone it uses essentially the bluetooth to be able to connect and to determine whether or not you come in contact with someone who has a coronavirus the problem is that under the google apple system it's entirely voluntary and like in the u.k. they don't necessari

the apple phone and the apple app store and all of the other companies that provide this change of consumer behavior are going to lead the market going forward. and there's plenty of companies like docusign and zoom and shopify, they're growing way faster than apple is and they're the ones that will be the beneficiaries of this move and i bet when we come out of this thing, judge, we'll be at 25% ecommerce from 16.2x auto. the change is forever. there are grandmothers that never even use their iphones to buy groceries that are now proficient doing it. and that's why everyone knows that and that's why they're waiting these things out in these names because they'll benefit big-time >> i don't disagree with you at all. but you don't own it personally, do you, kevin? your funds do, but you don't personally, of the list of stocks that you do have, why isn't that on the list >> i own a ton of apple through ousa >> yeah, it's in your funds, but of the stocks you own personally, it's of on your list, right? >> no, and i'll tell you why, scott. it's not growing p i love apple but if you compare to c

every one knows it apple has traded at a discount to the market. it's trading at a 40% premium to the market on fiscal earnings and 17% premium earnings on fiscal 2021 earnings even fp you believe a strong cycle for next year, you're still paying relative to history a dramatically higher multiple for the stock. what do you really pay for this? i know you've been talking about this on the show for the last 15 minutes or so about broader tech what is the right multiple and when do you reach limits on that i think the second question is, are we back to a normal economic environment next year because the iphone, you know, there's some diskreecretion to when peoe can upgrade. they can hang onto their phones for longer or choose a lower price model. both of which will impact next year's results there is economic sensitivity, clearly, in apple. they are more resilient than before iphones were still down 7% this quarter. we thought they were going to be up 13 to start the quarter those are the two key factors. what's the price do you pay for this stock and

that under the google apple system it's entirely voluntary and like in the u.k. they don't necessarily want it to be voluntary they want to be able to track as many people as possible and to have data that's included in that that tells you the person's location it gives you information about who they are where they are and where and where they're headed to so there's way more information being given to the authorities than there is under the google apple version well we've discussed this before here on boom bust panda a few weeks ago where france was asking apple and google to take some settings and do some resetting of some of these apps so that they could they could actually continue with this at this tracking app but the n.h.s. granted privacy international early access to the app the researchers actually used an internal version of the app auditing pop form it's called exodus and privacy what did they actually find it yes so one of the things that they found was that apparently the u.k. version includes something called google firebase analytics and also micr

and apple has done it well in the past, right? they've gone from the manufacturer of the ipod and a pretty successful line of desktop computers to now, obviously, their bread and butter is the iphone. i think they've lost the mentality inside apple, and i to think they're kind of in trouble if there's another transformation. but they'll ride the iphone for as long as they can, and we'll find out who's right once the time is up on that. >> thanks so much. this really critical point, do you feel like it's just the nature of, like, these tech companies that this applies to them, but maybe it doesn't apply to other non-tech -- or do you believe having studied everything you've done, having reported on all these companies, do you believe that this is a kind of mentality that every company could have if its leadership actually focused on that? >> yeah, i do believe that. so first of all, this whole delineation between tech company and not tech company is getting a lot more blurry than it was in the past. look at the automotive industry,

what does this move by apple. >> apple is looking at how much it depends on china, current supply chainchinese behavior with coronavirus and hirono executives. moving back to china. >> i would expect there to be a backlash. people are saying this government, you expect to see something like that. >> you are always going to have some grandstanding like that but our economies are too intertwined to do a hard decoupling say many american companies will up and leave. even apple goes through with a full $40 billion redirection. over $150 billion worth of business in china. >> we can pull them up, apple is a big player, $221 billion in merchandise produced in the country, $185 billion exported, 4.8 million chinese people employed by apple and let's go on to one more here. maybe a quarter or a fifth. they are diversifying production out of china, mobilephone export out of india to cross $100 billion by 2025 or earlier. they will take half the business away from china. my question is how will china retaliate. they will think of a way to get even. >> we see the chinese ramp up their pressure in

the feds are blasting apple for not helping unlock his phones. >> apples decision has dangerous consequences for public safety and th security. it is in my judgment unacceptable. apple's desire to provide privacy for its customers is understandable, but not at all costs. >> in a statement to cbs news, apple said it doesn't store users passcodes and doesn't have the ability to unlock detected devices. >>> coming up next, the questions tonight looming over brides, grooms, and wedding plans. >> my biggest thing is i want to be able to hug my guests and enjoy the day and not have to worry about wearing a mask. >> we have clients that are i need and we would like to service them. >> we already over $100,000 in debt. >>> the huge group of hair care professionals sending a message straight to the governor's office tonight. then, later, one of the bay area's biggest counties is now loosening up its restrictions on one >>> the pandemic has slammed the door on couples plans for their dream wedding. jennifer and mike of napa were planning a wedding for june 13 until covid-19 crashed the party. so they

even apple's own data. but they are adding to the stores that opened in canada, talking about 12 that opened in canada, in addition to 10 in italy. stuart: wish we could open them up in new jersey, new york -- susan: could be awhile. stuart: come on. what's going on? all right. i'm moving on. i want to get to the revolt. businesses want to reopen, people want to get out, they want to go back to work and some are defying shutdown orders. here's a defiant new jersey gym owner this morning on "fox & friends." watch this. >> a week turned into three, three turned into four, a month turned into two and here we are, month three, no help, watching the middle class struggle. not just small businesses but individuals all over the country in these states that are staying locked down beyond the curve being flattened and we're sick and tired of having our rights trampled on. stuart: pete hegseth has been outside that gym all morning. pete, there's no stopping this. the revolt is happening now. go. reporter: absolutely

. >>> coming up, apple enjoys a healthy rebound in china some worry the u.s. tech giant may be falling behind rivals on the innovation front (vo) our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage payment relief efforts and donating $175 million dollars to help hundreds of local organizations provide food and other critical needs... when you need us, wells fargo is here to help. you know, the chef here trained in france. mmm, it shows! so good. oh hey, did you say you needed help with investing? because i know someone who's really great. and you trust him? totally. yeah. we went to school together. i'll check him out on investor.gov. so, what'll it be? i'll just have the burger. before you invest, get the full report. check out an investment professional's background for free on investor.gov. before you invest, investor.gov. sawithout evenon yoleaving your house. for free on investor.gov. just keep

in the same way apple was big. we had a market going into the end of the month these stocks are going to lead us down, but they'll be the ones you will want to buy quickly >> right >> amazon coming into the session up 34% the single best performer out there that you can see, even better than netflix's performance, only outdone by tesla, which is up 87% >> you fascist you're a fascist >> there's a big basket of news in testing, vaccines, diagnostics. you had astrazeneca talking to richard engel of nbc saying they hope to have a vaccine ready for emergency use at the end of the year moderna making a billion batches in july, and gilead earlier today talking about remdesivir and more >> maybe it's a bit of a surprise to us this medicine also worked quite well late in the disease course as well so, you know, many of these patients in the nih trial were on mechanical ventilation. around 30% those are the most severe patients that's something that is -- has a big impact for patients, of course, with so many hospitalized p

they can use in apple computer, they can use a chrome book.udden, what the hell you're doing with windows? that's why there is a lot of resistance inside microsoft towards building for the cloud. eventually, the company saw the cloud is what was going to take them into the next generation. the next operating system in the age of mobile. since i was no surprise that after balmer left they let tehran what was probably known as two server and tools business inside microsoft which was installing servers into company like local business like on premises assay in the world. we've gone into azure, asters now actually deleting thing for microsoft more than anyone else. i was working on the book for nine months and i still was not crystal-clear on the thesis. i sat in the office of susan ac who is stanford professor former chief economist for microsoft. she walked me through the decision how they were being made inside microsoft in the trade-offs. and mom tonight when i walked out of her office, i said aha that's what the book is all these companies ha

kailey: our stock of the hour is apple.iscal second-quarter results after the bell yesterday, and shares sold off on that news, but we are back in positive territory, higher only by a few tenths of 1%. on the headline number, it did not go as badly as some analysts perhaps feared. toenue did rise about 1% 58.3 billion dollars. that topped expectations. but beneath the surface, there was weakness for their big money maker. the iphone saw sales drop by about 7%. weakness particularly in china. china sales overall down by about $760 million. apple also had issues with the supply chain and china. the weakness on that front was set off by strength and its wearables and services division. we know these are areas in which apple is shifting its focus more and more, and that's all revenue up by about 23% for wearables, 17% for services. going forward, the picture is a lot more unclear. perhaps the biggest headline is they didn't give any guidance for the first time in around a decade. you did have executives on the call hinting that

emily: apple has stopped releasing numbers for apple music. do you think their growth has slowed?an't speak to what their numbers are. my guess would be as much as your guests. we have said publicly before, we are two times the size of our nearest competitor and we are about three times the engagement from the nearest competitor. we think those characteristics means we should be growing faster. emily: i wonder if you are surprised apple has not innovated in the industry that has been dominated for so long. take.: here's my we talk about the big tech companies and how you could be greatood at building companies grew they are phenomenal companies, amazing businesses. there is something about focus. this is something that i have said a long time. we are unique. we are focusing all of our time and attention on this one opportunity. it is about bringing audio onto a big way andn moving off of linear radio and physical formats. that is what this whole company is focused on. everyone is passionate about our mission, has a sure way of coming through. -- coming here. if you are passionate