they are more integrated into the apple ecosystem. cory: apple ecosystem.e conference call they said they have to give up 30% subscription fee to apple. much less profitable addition of subscribers. they want thehat customers but will get a lot less money for the customers. during the conference call there was confusion where reed hastings had to ask his colleague whether or not they would get that. which disney movers -- movies they get is pretty important. not getting star wars is an important factor. the fact that they have to keep going back to the bond market and equities market. i'm not saying analysts would be unhappy because of an come,riting move soon to but worth noting they have to continue to go to the market to announce a new bond offering and borrow even more money to keep the business afloat next year. cory johnson joining us from san francisco. don't forget, there was also a price increase for netflix. is also interesting, if you want to get the look at the chips part of the business, look at netflix next week. they would have the same issue

lock people into apples ecosystem. it is good to see apple doing well in other areas as well.g the stickiness. anna: they have spent time modeling the apple product. tim: they are talking more about the television being developed through apps.ered television is a difficult market for anyone to break into. a lot of content agreements any to be signed. you need to have the relevant content for the relevant markets. it is not a product that can take off globally. it has to be approached market by market. they are making some inroads in the u.s. to get sweeping success takes time and revolutionizing that market will not be easy. manus: one of the other dynamics of this report was about the strength of the dollar and foreign exchange. that ties back to conversations we have had this week. the dollar has been appreciated. when you look at these currency moves in terms of earnings, is that a drag on economic growth? that the is something fed has highlighted. concerns over the strength of the dollar, the impact it has isr inflation, on exports one big factor why the fed has held back

streamline everything and create new product toss get you into their ecosystem much like you're in the apple ecosystemuart: stock is up. >> having a pretty positive impact. stuart: hey, we love it. that's retirement territory. >> wow. hashtag retirement territory. stuart: you won't have stuart varney to kick around. >>> new polls reveal americans continue to favor nonpoliticians, and the outsiders are just running away with this election. ♪ ♪ stuart: heavy downpours continue to affect the southeastern u.s. this morning. texas and the gulf states took the brunt of the rain. the storm was a combination of one storm with rain and then the remnants of hurricane patricia coming in from mexico. some parts of texas have already seen more than 20 in67s of rain. -- inches of rain. the storm is going to weaken, but it's continuing up the east coast. it will bring rain to the northeast later this week. what a storm. >>> several new polls out today show that non-politicians are still the clear favorites, in fact, they're running away with it. in iowa donald trump tied with carson at 27% apiece. that means six out

apple's a machine. so i would say the ecosystem of apple is extremely important and they continue to innovate, they are most dominant company of our time. liz: will you surprise to the upside next quarter? >> q4 is off to a great start. your question has to do with versus something that i can't figure out. liz: will you spend up to 10 billion on spectrum next year? yes or no? >> why. liz: why magenta? >> man-genta. liz: man-genta? you are the ultimate salesman, what is the trick. >> sell every second of the day. liz: if you have to sell these nuts, and i hate nuts, what would you say? >> look at this wide assortment of nuts, including the one on the left, perfectly healthy alternative to the ones on the right. if you like them, i'll let you switch to the others, no contract. liz: mets versus royals? >> come on. i'm like every other yankee fan that's making believe that we all love the mets. liz: let me be clear here, he said he'd be open to possibly doing a linkup with comcast because he wants what's best for the customers. if that is deemed what's best. watch out for it. so we wanted to mention that.

apple sucks you into its ecosystem and it's impossible to get out. it does not matter what device you use next, it has to be an apple device if you want easy data, to your music, your etc. they can charge more for the software because it is in the hardware container and the hardware container is very high margins. scarlet: is all of that captured in the evaluation right now? david: that's a question i'm probably not as capable of answering as the person you just spoke to. probably it is. it's a highly valued company. will future growth justify the position apple has now? i think it will. a way i say it is really more valuable company than the market is calling it right now? no, i'm not capable of saying that. hear what you have to say about their battle with google. apple recently allowed so you could have ad blocker on the iphone, which is another way to me cap, keep a crucial part of google's business. does apple have potential to double google and make them a last generation company? simplyidol think so because android is so much bigger than the ip

apple has unsurpassed industrial design technologies, using experience through ios and through the ecosystemuld be exciting. >> it will certainly be interesting. alex, thank you for getting up so early. alex guana joining us from san francisco as we await apple tomorrow night. >>> coming up on the show, microsoft's first flagship retail store opening its doors today just a few blocks away from apple's flagship store on 5th avenue. we're there live with microsoft's coo later on. (patrick 1) what's it like to be the boss of you? (patrick 2) pretty great. (patrick 1) how about a 10% raise? (patrick 2) how about 20? (patrick 1) how about done? (patrick 2) that's the kind of control i like... ...and that's what they give me at national car rental. i can choose any car in the aisle i want- without having to ask anyone. who better to be the boss of you... (patrick 1)than me. i mean, you...us. (vo) go national. go like a pro. >>> just days away from cnbc's republican presidential debate, eric is back at hq looking at how to predict a winner. there's got to be an algorithm for this. >> that's right.

look at ramy with a look at the markets right now are you are specifically watching apple and the company's's ecosystemle is right now down by 1.8% but off the session lows we saw around 11:00 a.m. mark. this is coming after a report that says a major integrative applet supplier has said slightly lowered its demand for supplies for the new iphone in december. the fear is fewer chips mean sales expected in the holiday season and the share prices now reflecting that. heading into check out our own analysis, it is pretty cool. apple equity s plc, we can see apple has 314 suppliers, including on the left side here, the likes of pegatron samsung and serious, as well as semiconductors. there we go. let me dive in closer to those stocks and dealing with integrative circuits. you can see basically, it is down by 4%. semiconductors are down by even 5%. feeling some of the pain off of that report and the knock on effect there. integrativeer cirque make -- a circuit maker ,lso falling is trading down 19% loss after city started coverage of the company a new troll. an analyst is pointed to the company's's exposure

. >> there is research showing that sales of the apple mac line is slowing, arguably outperforming pcs, but still within the ecosystem does that impact the stock? we know the bulk of the money is made from iphones. >> you said it right there. the mac right now is about 9% of total revenue. 8% of total profit. to get the stock right is to get the iphone right. this topic of how fast people will upgrade is more critical than the mac. >> do you think, gene, wall street has it wrong. the dow sis up 3.5%, apple has barely moved. >> the simple answer is i think they do have it wrong. it's hard to imagine a stock hyper scrutinized like apple for that many investors to be missing the point. at the end of the day, the s-cycles tend to be nervous periods for investors to wonder how the growth will be after this great sixth cycle. that concern has really clouded the ability to look at what's underlying and what's going on and what is really going on is that people are standardized on the iphone. they're gaining market share. and they're upgrading their phones faster. so we think when they report the quarter on october 27th the

to remember about amazon the content -- they want easily accessible on apple and google because it locks you into the amazon ecosystemason they want you on amazon prime video is because you become a prime customer. you start to be able to order your goods within 24 hours and buy everything. that is why this content is so crucial to them. jonathan: caroline hyde, fascinating story. we will see how this one develops. in the markets, 47 minutes into the session, let's get a check on the equity markets. we were heading for a week of losses, but we erased it over the last five trading days. and we areup by 1%, five hours away from the labor market report. everyone is waiting. 1.2%, the by financials leading the game. coming up, we hear exclusively from the ceo about the advice he would give to glencore's ceo. stay tuned for that, you don't want to miss it. ♪ jonathan: welcome back, im jonathan ferro. what a week it has been in the markets. let's wrap it up with some charts that matter to you. .n japan, a lot of data industrial production figures , raisinged estimates concerns that japan may have fallen into its second rec

apple store? >> i don't see it. microsoft doesn't have the ecosystem or the buzz. it's not as cool, is it? >> it isn't. they obviously make lots of hardwear now but particularly they're a software company. >> you don't go to buy software. >> and you don't feel really cool when you come out with a software. you don't go showing off to your friends saying look what i just bought. >> i'm going to new york in november. >> will you bring me back some software then. >> i will. >> under fire transport firm uber managed to secure delay of a french criminal trial against two of its executive who is are accused of license valuation. let's get out to stephan with more. >> the trial has been postponed until february next year in order to conduct expertise so it's just a technical delay but the two managers will face the same charges when the trial will resume next year including an illegal taxi service and use of personal data without the consent of the french privacy watchdog. the trial is related to the car sharing service which was banned by the french government last year but despite the ban, uber refused to s

it is against google and apple, 2 companies that own and extensive part of the streaming ecosystem. hey will be taking devices they feel amazon tv is not compatible with. amazon fire tv is not running on google chromecast or apple tv. or now, you can not get -- if you're trying to put a new product on amazon, you are not allowed. if you are compatible, if you are allowing amazon content to viewed relatively easily, your sony playstation, xbox, these devices are still able to be blocked from amazon. it is only google and apple. the tactic is to hurt. willcertain extent google suffer the most. they did not have an outlet. apple has its own route to consumers. they have high-speed stores and retail. google will suffer the most, but amazon is hurting itself. the sacrifice in sales they are willing to make in very popular products. apple tv sells well. google is the number two player when it comes to streaming. they will lose that to best buy and other competitors. promoting their own company, their own amazon fire tv products. why do we get prime tv? what is amazon offer it? they want us

ecosystem. >> certainly the phone is the center of the universe for apple, and they're certainly putting up the numbers to not distract us away from the iphone. more than 60% of revenues. apple still wants to be a company that does a lot of business in the enterprise. $25 billion of sales to the enterprise, and doing deals with cisco and ibm. how should we be measuring the success of things like that that are somewhat foreign to the way that companies ethos operated before tim cook? >> well, i think the strategy for apple has always been to get into the enterprise through the way people want to interact with their devices, and so they are continuing on that march. they've been doing it for over 20 years, and they'll keep doing it. people love the products, and so they'll keep using them inside the enterprise or out. >> andy, it seems to me that for a long time until probably about four, five years ago apple operated as this perennial underdog. it was part of its image. maybe even part of its culture. now what people don't believe is that it can maintain this position at the top of the heap. is

ecosystem. >> we have to wrap that up but are you a buyer or seller of apple. >> i'd be a buyer of am. there's innovation to come. everything they're doing around tv and new hardware, they'll continue to surprise us. >> thank you. much appreciated. >> we're going to focus on banking. jes staley is the new chief executive of barclays. his appointment marks a you turn taking it back after retail banker anthony ben kins was ousted for the top job. he has a pay package which equates to 4.6 million pounds this year plus a potential 2.4 million pound bonus. he is certainly not short of banking experience having spent 30 years at jp morgan where he climbed to the top of the investment bank and seen as a possible successor at jpm but he moved to blue mountain capital in 2013 founded by former jpm colleagues. so let's talk through this news this morning. carolyn joins us and here we have another american investment banker at the helm of barclays. >> absolutely. everyone has been talking about this big u-turn. i'm more skeptical about that. they do have huge investment banking operations but i'm

apple and someone else or amazon and someone else? >> i think it's largely up to the developer ecosystem. >> what all the different developers might bee to do with different apps, it's ob where yous that a lot of the big networks and broadcasters are going to be putting their services that they can stream television programs and video programs, but i'm very curious to see how creative a lot of the other types of businesses approach the apple tv and when you think about the tv, it's important to think not just from the network standpoint, but really what it is is a big screen that multiple people in the room can look at it at the same time, and i think we'll all see all kinds of different am kegs come about from this community, and we know that apple is one of the strongest ones there is. >> two things jump out at me. one, i miss the ability to use my phone as a remote because i like to be able to type on the screen, but the other thing is boy, it would be great if apple pay were built in because then i could use my fingerprint to not only pay for something, but also have my address in there as apple pay will do it by default and paym

that enable us to create a broader ecosystem of services, personal services and that will be accessed from one mobile point. youranie: the mean relationship with apple? apple, yes. i'm excited by what we have done and what we're doing and what is in the works. we do not have anything to announce today. but partnerships in general. future potential to innovate, it will be largely based on the ability to make the right partnerships, to work with teams that are really good they are doing and add them to the teams we have two great things people cannot imagine. that is what excites me. given your relationship to apple, are you wearing an apple watch and do you consider that your wearable? >> i do. i wear an apple watch and a band and i will continue to do that. i'm excited about where the avalon just going to use priority for the company. we will see that grow and develop more and more and nike wants to be a part of it. before we go, we have got to talk women. i am in my leisure gear all the time. but it is a competitive market. many start of rants are sold exclusively to women. where are you in that right now? what is your game plan? >> just to take a

apple or google. thee companies have made it a priority on its own it should be a pretty good business to be part of that whole supply chain ecosystem that supplies 70 million stars kars year, it's a big market. whether they have to make their own, i still think it's smart of apple to be coy about it and stay as a neutral player. >> i've seen cell side notes lately that look at the companies that are leveraged to an apple car as long-term as that may be, but also the kpts that are exposed to volkswagen as short term as that may be. >> it is an interesting time in terms of the short term versus the long-term. what i think is interesting and mike touches on it with his comments about apple is for apple there is no reason to show their hand at this point. it's smart of them to sit back and say do we want to ultimately license what we're doing with the automobile to auto manufacturers or do we want to get into the manufacturing game and perhaps create another eco system. things will shake out over the next five years and the auto business is going to be far different five years from now than what it is right now, likely consolidation an

ecosystem is getting larger and larger. makes switching costs incredibly high and expensive. i think it's a great strategy. >> but it's incremental. had this announcement appleay is going to expand into starbucks and kfc and chilchili and whether those revenue streams actually start to matter and help grow the top line for apple. that's what appears to be the source of skepticism on wall street, jon. >> you're still wearing yours. >> i love mine. i'm a huge fan. i think we're in any one and once we get into the millions and millions of apps, i think that's going to be really meaningful. >> what did you make op elon musk tweets last week? he said i didn't mean to bash them. it's a beautiful design only until we get to version three is it really going to be commercially significant. >> i think that's right. >> really? >> yeah, we saw that with iphone sales as well. look back they had about a million sales in the first iterati iteration. it takes time. i love what they're doing. getting to the female market. >> but it's not a mass product. >> no, that's right. the iphone is the bread and butter. we know that. but i think the point about this really creating an

ecosystem. they expand the brand halo a little bit but in terms of actual profit, i don't think they're going to matter anytime real soon. >> all right. andy, thanks very much. with applean 3% today. last look for you at today's mystery chart. this stock is hitting an all-time high. it's associated with my hometown. here is a final hint. it's up more than 240% over the last 20 years. it's a name we don't talk about very much. you're all tweeting at me. you're all wrong. this is a totally under the radar name. we'll give you the answer when "power lunch" comes right back. , but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. we heard you got a job as a developer!!!!! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to pu