that's enough to raise cash and satisfy investors, but apple's fans say they want something new now. apple users have steadily bought iphone and ipad upgrades for years now, but apple watchers say steady isn't good enough. >> i think what people want is they want apple to lead again. >> reporter: that is boost its bottom line by bringing sexy products back and by delivering something customers haven't seen before. >> they go to apple because apple gives them a certain amount of status. it is the product like porsche, being ahead of the pack. >> reporter: and it's not just customers waiting on the next new thing. customers like loop, which makes payment software and cases for iphones are part of the ecosystem of companies that get a boost from new apple gear. >> and that's going to cause apple to sell a lot more units. there's going to be lots of trade ins on iphone 4s and 3s that might be out there. so their business is going to continue to grow. and our business as well. >> reporter: so what do customers want next. >> shopping. >> shopping? >> yes, expansion of being able to, like bi

apple's efforts to refute these claims. >> apple is being definitive, saying that at the device level this is how the information is tracked, but it is not information apple is capturing, not information that apple is using. i think they are being very smart, trying upfront to say there is positioning data that you need in order to figure out where you are, but that is not data apple has. they can get on the offensive and address china's concerns up front. i think this is yet another chapter in the sword fighting that has been going on between the u.s. and china. i think apple is smart to get in front of it instead of backing away and leaving a lot of questions. >> there has been a lot of back-and-forth over cyber spying and the nsa, and chinese hacking between the united states and china. china is a huge market for apple. how much could this hurt apple? >> there are a lot of contexts that are important. domestic competition within china from companies trying to gain share and have more backing from the chinese government -- i think this ways in, in some way. enterprise side have talked about slowing sales in china because of r

taking an inside look at the chinese company that launched just four years ago but is now grabbing a bigger share in china than applere is a look at their rise from scrappy start up to smartphone technology power player. by the numbers. xiaomi may be a new kid on the block, but the company is no longer little. lei jun helped to found the company in april 2010. four months later, they launched their first official android-based firmware called miui. in 2011, they took on the smart phone with the mi-one. every year they have introduced new products with great fanfare, so how did xiaomi rise so far so fast? first there is the price. at $270, the flagship mi3 costs less than half the cheapest iphone in china. then there is the business strategy. they sell directly to consumers online with limited quantity available. a recent web sale brought in $241 million in orders. when the mi3 launched last year, xiaomi sold over 190,000 phones in nine seconds. they plan to triple shipments from 19 million to 60 million phones by the end of the year. and xiaomi just dropped the little from its domain name, proving that the start of

apple fanatics do now? >> who knew tim cook was such a fan? but who isn't? a return of almost 18%. we have a big earnings for apple next week. mike, how are you planning to make even more cash? >> this is an interesting situation. we weren't hoping to make 18%. we were hoping to make considerably more than that. and the good news, because we bought the october options, we're not dealing with the accelerated decay. if it was a little bit higher, it may make sense to roll to an out of the money strike. but i think we're a couple of dollars away. i'm going to stay in. >> carter? >> well, there's nothing wrong with the chart. and the principles are the same as google or facebook. we're approaching the top. and that top, september 21st a year ago. and we're at about $94. so, we think, at minimum, we'll get to the top. so, we'll stay. >> i agree. and what bugs me as a trader, i hate that people think it's got to get back to the prior high. we talk about the name almost every day. going back to $7.02, the high back in september 2012. everybody talking about iphone 6. well, going back to i

apple does often trim back that estimate they give to the supplier partners. but just to hear that range is just -- speaks to what apple really believes this can do. and i think people will be raising their unit expectations. >> last question here, we were talking about china and the importance of china to apple. not a lot of people were paying attention. and going to have a new phone july 22nd. >> yeah. >> and there's a lot of hype in beijing, which is going to be a steel case phone and a bigger threat than samsung ever has been. how do you look at that competition? >> this is probably the most important smartphone company around the world to watch right now. they're still only doing business in china, but they a are -- it has a very apple-like cult following over there. they do great products and great marketing, very respected brand. but, you know, i actually think that along with some of the other players that are like cool pad and tcl, those are the guys that are killing samsung right now. that's why samsung got crushed on smartphones and why they're going to

not just mobile distributional, but apple, android, 10 different flavors of android, cross-section sectionith so many different devices. how are you going to present on different pieces of glass, as small as a watch and large is a big tablet, and even now television? complexity means cost. cost and the economics of the media business are thin. secondly is form. what we have really managed to do is lose the concept of form. thing, a media object, a complete object has been lost. is said, it is a stream. streams are great for dipping in and out of, but streams do not create an experience and brand. >> you make a great metaphor in a blog you recently wrote, a good piece is like eating a good meal. sitting down to dinner rather than snacking all day long. explain that. >> when you create a meal, either you will put a lot of time in or if you are at a restaurant, a chef will put a lot of time in. the chef also spent a lot of time thinking about the ambience of the restaurant, and the experience. you want to have an experience. emile is nutritious. l is nutritious. you need to eat a meal with lo

and apple compete is a 30-year-old notion that's not as important right now, but it really does signifyething different, that the last sort of boundaries of apple's reach have fallen. >> i think the shift to mobile computing has created a new class of volunteers. they are looking forward and becoming the people who set the agenda for enterprise computing. you see i.b.m., dell each week, these are the companies which , on the n behind wane, so to speak, and that's what it really is. from that standpoint, i think this is a positive for apple. let's just face it, right now, i've had the better tablet in the market. >> but ipad's sales are slowing down. >> the new device is impressive that does a lot of things. >> i'm really impressed by tim cook's ability to strike a vital partnership and do out of the box things to make sure that the revenue stream keeps going, and i think it's very easy to forget that this is a company which they're trying to become big. >> apple is still trying to do something. it's the biggest company in the world. >> it needs to be bigger, because the market share is

think not just about one or two distribution channels, but 10 or 20, not just mobile distributional, but appleandroid -- 10 different flavors of android, cross-section with so many different devices. how will you present the different pieces of glass as small as a watch, as large as a tablet and even now as large as television, right? complexity means cost, and the economics of them media business, as you know, martin. -- our same. we have managed to lose the --cept of form and addition a thing, a media object to make complete object has been lost, and instead it is a stream. dipping ineat for and out of but they do not create an experience and a brand. >> you make a great metaphor in a long post causing -- calling a good piece like eating a good meal, sitting down to denver -- dinner instead of snacking all day long. willen you eat dinner, you put in a lot of time, where the chef will put time in thinking about the ambience of the restaurant, the experience, right? a meal is nutritious, and if you snack all day long, we know that is not good for you. media is like that. you do not take "game

>> similar to what happened with apple, but apple i believe settled. did they not over this very issue? >> apple did settle. a contentious issue of how in-app purchases by children should be handled, because if the company is charging and no passwords are required, the question is whether or not kids really have the right to make those purchases. so i think this is going to be the kind of things that going to be in the spotlight not just for amazon but moving for for apple and any company with in-app purchases for kids. >> juliaboorstin, thank you. >>> andicing the most foolish second half plays next. our "halftime huddle" is vat ahead. straight ahead. ahead. straight ahead. head. straight ahead. ead. straight ahead. ad. straight ahead. d. straight ahead. . straight ahead. straight ahead. traight ahead. raight ahead. >>> we are back and we're keeping up with the najarians. they're the most active traders in real life but not in in competition. they haven't made a single trade. >> did you guys forget your account password or something? >> he won't give m

apple stock since august 2011 is up about 75%, besting the s&p 500 but lagging the nasdaq. beyond basic stock performance and financial met tricks, cook is making changes at apple that is having a big impact on the company's leadership and culture. >> i think he's a little more deliberate. he's a little more data driven. steve jobs is more of a visionary. had a great gut and created a phenomenal company and now tim cook has to carry that on and what does tim cook always say? he says our north star is creating great product. he kept that culture and i think that's very, very important. that's the most important thing he's done. >> reporter: cook is comfortable welcoming big personalities. dr. dre and jimmy ivene are employees. angela, former ceo is leading operations. he's turning old foes into friends with a new partnership with ibm bringing business apps to iphones and ipads. at the end of the day apple will be judged on whether it continues to make and sell fantastic products. when i speak to tim cook, he's clearly excited about the pipeline and we'll soon find out if inve

apple nothing. it costs ib b nothing and has a chance to make customers happy. great for both of them. but think apple's big problem right now is that when you look at an ipad, an ipad is not a product you upgrade every year. i still have all three of the ipads that i bought. i still use them all. and that's a value from a consumer point of view. clearly, the phone market they break frequently. the upgrades of people who already have them come much more regularly. apple's big failing now, i think, they have an opportunity -- we talked about it before, carl -- to take their icloud service and try to do what microsoft and google's doing. which is look at it as way of building audience. not just wimg within their own ecosystem but outside of it. i think apple's magic will work in the cloud as well as it's worked anywhere else. to me it does the matter for the stock. it's so cheap and the cash flow and the dividend, all the other value elements of it are so attractive, that essentially growth is an option on this security, and i don't worry about the product cycles the way i would in an, in a

a product.e sells me everything that i think is cool but apple, i pay them hundreds and thousands ofollars for. everything i like about twitter i get for free. for it by are paying lending your eyeballs to the advertisers. the business models are different, but i'm looking at the broader ecosystem of public market advertising. and google are very long-term looking, and a five to recommend between one share and another, i am going to say i , and you take something that is an expensive look, where it does not expensive and its pieces. netflix is growing like weeds. there is a lot of other things you could do, and we have to make our bets. we say we like netflix and apple, with the google and facebook are starting to look interesting, the valuations are not egregious. priced,is egregiously and is not growing fast and is a bit narrow market opportunity. i do not see any ads on twitter the same way i do on my facebook feed. >> i block them immediately. that the good news is, probably twitter has more the page empty room on to add more ads. i think facebook would add more ads. it is a big

television reported location tracking software in the iphone could lead to the leak of state secrets, but apples it does

apple fanatics do now? >> who knew tim cook was a fan, but then again, who isn't.before we answer that, let's see how much money was made. mike bought calls 4.50, now you can sell them, and that's a return of 18%. how are you planning to make even more cash? >> so, you know, this is an interesting situation. we didn't buy the calls hoping to make 18%. we hoped to make more than that because it's giving us a leveraged upside bet in apple, exactly what i think we want going into earnings, and the good news here is because we bought the october options rather than one near data, we will not deal with the accelerated decay in options you often get after earnings are announced. my inclination is i look closely because if the stock was higher it makes sense to roll to the out of the money strike. i don't think we're there yet, a couple dollars away. i'll stay in this thing right now. >> carter, what do you see in the charts? >> sure. there's nothing wrong with the the chart acts well, and the principles are here, the same with google and facebook and to say we're approac

and it is kind of like old school but still in style. >> it is still classic apple style? ht. >> nice rubber wristband. i do like the big numbers, easy to see. >> it displays not only the hour but the minute and the seconds, you can also just look at it and know what day of the week it is. is this impressive to you? >> yeah, i would wear it. >> are you excited that it always in the airplane mode? >> always in airplane mode? >> oh, yeah, that is good, that is good, definitely saves on battery. >> it has an alarm? >> an alarm? you need to wake up so -- >> it has a stop watch. it is water resistant. are you impressed by those features? >> i'm pretty impressed, those are the things i would ask for in a watch. >> do you like the fact that it is water resistant, that it has a back light, it has a timer? >> i just like that it has the apple symbol on the back, apple is good, right? >> if it is apple it is good. why don't you tell me what you like about this watch. >> really, because it is apple. apple is the brand name i love. and i have the computer and phone and the ipad. so bec

of course there are going to be some bad apples in there, but the good news, not only do we have the resources to go after the bad apples, but if the complaint is unsubstantiated, we have the systems in place to protect the driver and due process as opposed to a tnc driver, if their star rating falls below a certain point you are out and i don't how you get back. but we have due process for drivers and we have a very robust process for complaints. again, any problems that you have with taxis we want to hear about it, because we're providing government oversight of the situation in a manner that is fair for everybody. >> would you be able to provide a phone number up there for something that people can call? or just 311? >> 311, you can always reach us through 311. we can just keep it simple that way. >> okay. my last thing is taxi drivers or taxi service versus tncs. what if your city was in an emergency state, such as muni not working -- sorry. okay? and then muni not working for several days, okay? and people are trying to hail taxis and there weren't enough taxis. >> as we develop

after lawsuits claim apple conspired with five major publishers to raise the price of the ebooks but applene anything wrong and they're appealing. >> the "los angeles times" looks at why a federal judge has ruled that the death penalty is unconstitutional. most will never be skrulted violating the ban on cruel and unusual punishment. >>> here's a huge story getting a lot of attention on the new york times. rupert murdoch put time warner on his media wish list. he offered $80 billion for the communications giant. time warner said no. it would have been the biggest media merger in the decade. no talks are scheduled but he may make another offer. >> the academy award-winning director ron howard wants to examine how beatlemania gripped them. interviews inclul paul mccartney, ringo starr and yoko ono ono. ono. i'll take two tickets please. >> they high light the pearls of the journey but many young immigrants say they know the dangers. they believe the risk at home is greater. manuel bojorquez travelled to san selva door the capital of el salvador, to see why thousands of people are escaping th

. >> you run hardware for a short period of time at apple. but it's a very short time. what was that experience like? >> a great experience. i had been here's at ibm, a great career there and changing over to am, working on a set of products that were game changing in the industry, had the opportunity to turn the product line, you know, completely, all new industrial design, all new electronics, ipod, iphone, a great experience and i tell you, it's what i love to do, working on innovations, working with great people and so, it was a real eye opener. >> so i know some of these guys out there are a little wonky. i'm going to ask this question. having worked at ibm and having worked at amd and apple, do you believe hardware and software should be tightly coupled? >> a good question. it's a always a good question. >> jobs is always hardware/software, complete experience. >> what is papermaster? >> they do have to work in conjunction, generally, have challenging products putting together, have them organized, separate teams and need to get them working very seamlessly, apple

so you obviously think this is intentional ben but do you think companies like apple apple could be working with the u.s. government to create these kind of back doors that can be exploited in the event of a you know a terrorist needs to be monitored maybe but you know there's a there's a basic problem here which is that if if i want to get access to someone's data and i have a legal way to go to do that a subpoena or whatever have you and i seized the device as long as the device isn't encrypted it's very trivial for me to actually pull the data right out of the flash memory and all the manufacturers make it very easy to do and it's it has to be because how else would you access the unit in order to make a repair to it for example or update the software so the problem isn't there the problem is that there really isn't a legitimate purpose for these kinds of back doors other than to make possible spying of some form in and you know there isn't any smoking gun that tries this to request from the government or anything like that but according to this article there is evidence that these tools

that is a 12 preponderate 7 % increase, but the street looked similar to what happened in the prior quarter close to an 18% increase on the heels of reports that appleto fall debut two larger iphones, one a 4.7, and the other a 5 .5 inch screen. size does matter. it's a forward development something planned for a fall launch, but for the time being, apple being judged by what it has sold thus far and numbers that are enviable by anyone else's standards are getting a collective shrug on wall street and after hours trading. apple down a buck, just under -- not even half a percent. all right, are you stuck working part-time? here's how you squeeze out more of your boss. force to pay them extra if he changes your schedule. this requires bosses give workers a faster head's up or they pay up. charles payne is fed up. we have a small business owner, and, charles, you don't like this? >> it's mind boggling. really, really mind boggling that a small business has to pay someone extra if they don't notify them, 24 hours we have an opportunity for you to make money because i don't notify you soon enough, i have to give you extra money, even though i have a line

. >> no, not that kind, but facebook shares that jumped on earnings. how high to traders see apple going? >> $10. >> $10 million? >> not that high, but the answer could shock you. "the action skts starts right now. >> i'm melissa lee, all the traders in time square, and stocks rebound from yesterday's selloff, but there is one name america is watching tonight, and that is google. the search giant up 3% on earnings and now commands a market cap just shy of $400 billion. now, this could have been implications for another big tech company, facebook, and let's go to the money now and find out why. >> yeah, i mean, listen. we know the story here. facebook is the upstart, right? up 150% in a year, and it's because they've been taking share against google in mobile advertising, seeing a lot of gort yore over year, a great story right now, and that's why they are a $400 billion market cap, trading at 15 times sales, people price it a heck of a lot more growth for it. when you have google up 4% within 2% of the highs made in march, they look to facebook next week and see the share continuin

this may be their second or third iphone, but they don't yet own apple shares. the time to say maybe you don't need the iphone 6 but you need to own apple? >> darren, what do you think? >> oh, i think investors should probably own both. i'm an android user, but i think my wife's an apple person -- >> wow. >> and i absolutely think the new device is a flop? i can't remember the last time an apple device flopped. >> well, the last upgrade was pretty boring on the iphone. i have an anecdotal story which makes me optimistic and makes me want to go longer apple. my son's 18, has the 5s, drops it on a roller coaster. he's borrowed a blackberry to wait for the release with his own money. there's a guy -- >> he would rather use a blackberry. >> and he's whining about it every day. he wants the new phone. he actually thinks this upgrade cycle's worth waiting for and worth spending his own money on. i like that. >> my kids are younger are and one of their friends is waiting to get a phone, doesn't even want a phone, even though everyone else has it, because they want to w

>> it means that apple is being very definitive saying that at the device level, this is how the information is tracked but it is not any information that apple is capturing. it's not information that apple is using. i think they are being very smart and trying upfront to say that there is positioning data that you need to figure out where you are but that is not data that apple has. they can sort of get on the offensive and the just china's concerns up front. chapterthis is another in the tech sword fighting that has been going on between the u.s. and china and i think apple is smart to get out in front of it instead of backing away. >> there has been a lot of back-and-forth over cyber spying and the nsa in chinese hacking in the united states and china. how much could this hurt apple? there is a lot of context that's important. domestic competition within china, companies are trying to gain mind share and have backing from the chinese government and i think that ways in. we have seen a lot of companies on the enterprise side talk about slowing sales particularly in china because of the revelations from e

building 100 million bigger i-phones but manufactured in asia. >> he has favorite companies. applethe former head of the epa now works and where the spokeses -- so you have ceos and boarded of director that support the democratic part and him they alive out but otherwise they won't. and he has created a very hostility environment for job creation and opportunity and wealth creation, and in a free country -- what is left of a free country -- people respond. he can create insent testified. not people who want to go on the welfare dole. those who want to create jobs. i've i'm a foreign done there and i want to put a plan in the north carolina, who comes after me, the friends of the nlrb and i'm in a spider's nest. or if i'm a country and i'm in canada and i want to move a plant to say, alabama, one of our remaining free states, they're set upon, too. so they say i'm going to france, for god's sake. it's better than here. >> michael bloomberg was here yesterday from jerusalem. made the trip, defying an faa ban. he says we have to be strong about this no reason for the ban. but in the c

but so does apple. and, well, they have a lot of potential change. i think investors would like to hear news of what they have next. and usually that's not what they do in earnings reports. but we'll see tomorrow. >> and what are you expecting? why don't you take apple first, since it's sort of a head line stock, not that microsoft isn't. >> sure. well, i think it's more accessible to more people, regular investors, because they probably have at least one apple device. and that's the thing that's going to drive this stock. how many phones were sold? and how many ipads were sold? last quarter, ipads were a little disappointing, so i think the street is really going to be looking at that number. >> you know, kim, we also, of course, have that nokia acquisition for microsoft. and we have some layoffs that are coming from microsoft. it seems to me that that could really kind of be confusing in the report. there's going to be a lot to kind of separate out to get net/net what microsoft's performance was in the last quarter. >> exactly. and adding to this is

you say apple has already penetrated the enterprise market. extent, but you and i were talking earlier about the slowdown in tablet sales. it's a slowing of apple growth. inle continues to dominate all markets, but we see this in an ad hoc way. most corporations by technology through their corporate i.t. department often with the help companies like hewlett-packard and, yes, like ibm, the most dominant company in all of the technology will services company. services did $59 billion selling uff and how to implement it. this announcement was all about apps, apps, apps. the news is you will have every single person in the ibm sales force will walk into the customer accounts with ipads and iphones available for corporate distribution, deployment as well as developing ibm maps on these devices that are favored by u.s. consumers. we saw a lot of competition coming from android in the corporate market. success of the windows phone taking the lace of blackberry, really bad news for blackberry and probably bad news for microsoft and android. >> that was going to b

it would have been unthinkable just a few years ago, but these two, apple and ibm, are now joining forces, producing apps and devices for the corporate world. it is a clear sign of the times. but we're also asking could this new team be the nail in the coffin for blackberry. >>> hello. it is midday in london. 7:00 a.m. in washington. 1:00 p.m. in srebrenica. the bosnian town which in 1995 suffered arguably the most grotesque massacre of civilians since world war ii. the court in the netherlands ruled that dutch troops operating as u.n. peacekeepers in the town during the conflict were partly to blame as 8,000 men and boys in srebrenica were killed by bosnian serb forces. this despite the town being designated a u.n. safe area. the case was brought by mothers of srebrenica, seeking compensation for the loss of their sons and husbands. the bbc's anna holligan was at the hearing in the hague. >> reporter: the mothers of srebrenica blame dutch peacekeepers for failing to prevent the genocide. thousands of muslims had fled to the u.n. base seeking protection from general ratko mladic and his b

gerri: not like the thing i always worry with apple, after a couple generation it is doesn't work anymore. >> right. buts great. buy used. they keep it going. and you know, 200 bucks right off the bat. down the road you resell it. i bought ipod touch for $200. sold it six months later lost 20 bucks. gerri: is great. >> resale value on apple products. >> love it. thanks so much for your time. >>> time now for a look at stories you're clicking on foxbusiness.com. stocks sinking ending week in the red. thanks to disappointing earnings from visa and allison. amazon shares slumped 11% after reporting a big loss while visa cut its full-year forecast. >>> safety regulators are probing three new vehicles. they're investigating whether electrical problem can knock out power to airbags on hyundai sonatas. they're looking to complaints of engine stalling in dodge chargers and other airbag issues in chevy impalas. >> into rupert murdoch twenty-first century fox is getting cash boost in attempt to buy time warner. london's bskyb is buying sister companies in italy and germany, from fox creating multinational europea

apple stores. not in september, but -- >> i know you doubt the apple sites i like. like 9:00 to 5:00 mac, mac reamers. they typically get it pretty right. if they're off, off a little. not like they get it totally out of this universe wrong. >> and t-mobile u.s. saying the new iphone in the third quarter, a bump for us. pretty definitive. wouldn't you say? >> and also we don't know how much john knows. apple keeps secrets even from john. let's take that with a grain of salt as well. >> we heard that one. >> i'm sure he heard that one. >> want to get back to the markets, still trading well to the down side. dow now down 178 points. bob, a lot of moving forces in the market. what are traders telling you this morning? >> exactly right. a lot of moving parts and not one reason. start with europe. europe is ugly. it was ugly from the outstart. a lot of nasty vitriolic rhetoric out of the ukraine. prime minister saying russia's trying to essentially -- an actual quote -- came out and said they were essentially trying to revise the outcome of world war ii by annexing the c

happen. >> kind of a nightmare. >> there requires obviously some parental controls, but the key issue for amazon and even apple, who has come to an agreement ofh the ftc -- it is tens millions of dollars we're talking about in terms of refunds that amazon has had to make. but clearly it is a public relations issue that amazon and even apple wants to stay ahead of and make sure it doesn't become a problem as it relates to their position with consumers, particularly parents. >> what kinds of things were kids buying? >> all kinds of goods and services within apps. if somebody's playing a game that requires them to buy something or a dollar here or , a lots part of the game of those purchases can be done very seamlessly within the app. this requires a fair amount of control on the part of the app developer, on a part of amazon, and the parent as well. it has been an issue on the fringe with a lot of these app games, and a lot of the folks that -- platformers, whether it is amazon or apple, they need to stay on top of it. >> do we know how much the ftc is alleging amazon made office? a we don't, but just for point

. >>> and we keep on hearing about a coming smart watch from apple. butsounds like they're not going to call it i watch. instead it will be called i time. apple was just granted a patent for the watch and you're taking a look at some of the diagrams, the first diagrams of the design. to word though on when it will go on sale or how much it's going to cost. >>> stocks rose on wall street on tuesday on solid corporate earnings. futures seem to be pointing to a higher opening. >>> target is introduce a new app that let's customers by items by scanning magazines. >> the speed limit is going up on a stretch of the pennsylvania turnpike. drivers can now go up to 70 miles an hour between the blue mountains and the morgantown interchanges. the rest of the highway will maintain the 65 miles per hour speed limit. officials say they want to bring the turnpike up top speed with other roads in the state where 70 miles an hour zones are becoming more common. >> a mother of four is in with the law after police say she coerced her 12-year-old son into stealing. >> coming