does apple take the shares from netflix? >> more likely people would have both. one thing, apple service will only have content reduce my apple. it 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. app

but doe apple also need a breakout hit? a marquis title drawing in gamers. ts say not necessarily. that apple needs enough good gameju tify $5 a t month. ialysts don't think arcade will have a bigact on the apple bottom line but any do think arcade could bolster what investors care a lot about, the company's faster growing, higher margin h services segme. by some estimates potentially adding $7 billion in revenue over the next three to five years. apple mightls have kegs. google is highlighting its own game subscptioerce that could becoming soon no details yet on pricing, content or launch date. for "nightly business report," i'm josh lipton, san francis. >>> sales come up short at darden restaurants. and that's where with he begin tonight's market focus with the parent of olive garden and other chains reporting profit better nan expected. a penny better. but revenue light despite positive results from olive garden capital grill andho long steak house. casual dining chains have been struggle as consumer opt for healthier fed rden shares fell f toto 128.68. de

where does apple stand >> many see this as a bit of a transition year as apple is expected to release first 5g phones next year in 2020 apple seemingly a little behind the curve at least with coming out with the device here the company's response is that they will wait until this becomes more adaptive. perhaps they are better off than competitors who will glitchy reviews. >> which of apple's products will be subject to tariffs >> we've seen tariffs on air pods and some of the watch components likely if these tariffs go into effect, they'll be hit and that could be crucial in that territory. >> exciting. looking forward to the new gadgets and apple tv >> right because i have so much time in my day >> thank you for watching our show today, i'm joumanna bercetche. >> and i'm julianna tatelbaum. more coming up next. ♪ think you need to pay prestige prices for better skin results? try olay regenerist. the rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles. in fact, just 1 jar has the hydrating power of 5 jars of the p

does. i get that people will extend the replacement cycles. you're buying more applepods or apple watch or apple services. i think the discussion 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

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 out of markets react well apple does change but at least here on tuesday there was not really a big reaction on wall street and we shouldn't forget the big cash follow remains the i phone roughly 70 percent of parotid still come from the i phone but then on the other side if you look at the stock price of apple it is pretty elevated we are not that far away from all time highs f.-o. has a market valuation of almost $1.00 trillion dollars that was that it is one of the richest companies on the planet all right then let's take a look at the competitors or the fresh competitors what are they making of what apple presented earlier today. yeah whatever plus it was the new streaming service a monthly fee of $4.99 is the lowest in the sector so that is pretty aggressive and we did see stock sell for netflix or disney who. was its own streaming service just recently or announced the old plan so apple is that she is because then that certainly increases the pr

taylor: what does apple do next? how do they shift that labor? apple is going to have to hire morenn to full-time staff in order to get them closer to the 10% level. the good news is right now we are right in the middle of peak season for iphone production and at the beginning of school season. that means numbers drop down to 30%. january and february, apple is going to need less temporary workers to do ramp up. that means they should able -- be able to put the pieces in place by next fall to have the percentages laid out appropriately. these accusations do not come at a great time in terms of optics. apple is launching a new range of iphones leader today. what should we expect? mark: the new iphones will not be significant updates. these will be more minor changes. what we are seeing and hearing is that these designs will look similar but a big focus will be all about the cameras. the low end iphone that will be the iphone 11 will have a second camera in the back for enhanced portrait mode and optical zoom. pro withd iphone 11 much more advanced

when you buy an iphone, ipad, mac, or apple tv, you will get one year of apple tv plus included for free. [applause] taylor: so doesincentive show that apple is really pushing into services or still relying on hardware? to discuss i am joined by forrester research analyst julie ask. so julie, services company or hardware company? julie: it is ever increasingly becoming a services company. i think the announcement around apple tv plus is significant for several reasons. i think it is the first time we have seen apple create content. together apple tv plus arcade fills two gaps in the subscription services. you know, it already has news. it has music. if you add that up, it is easy to see apple is getting $400 or $500 per year in services revenue from any customer. it fundamentally changes their business model in how they sell. they go from a device company that is trying to keep customers excited and get a purchase every 2, 4 years, to a company that is collecting revenue on a monthly basis. the services revenue is already 15% to 20% of their revenue and you imagine that these additional services make that even stic

does that show apple is still reliant on the hardware?nk if you look at their financials, yes, they are reliant on the hardware, still 70%-80% of their revenue. you are looking at something more about the future of what apple will be. if you look at how quickly their services revenue is going, the more they can get consumers into subscriptions, the stickier those services can be and the faster the revenue will grow. the switching costs on that will be higher. the other thing you have to keep in mind is the more services, content they roll out and the more consumers they get committed to subscriptions, the more valuable the devices become. those things play off one another. it shows the strength they are building with a vertical integration of hardware, software, services, content. each purchase makes everything else more valuable for the consumer. taylor: what type of content would you like to see from apple so they are distinguishing themselves from their competitors? julie: it would be hard to say at this point what is missing. media te

a lot of chinese manufacturers have 5g phones apple does not have a 5g iphone.do you think that matters? >> well, first of all, carl, the valuation, the stock's now at market multiple which is fair. they've shown they can continue services, growth, maybe that will improve, it is near fair value. regarding china and 5g, i think it is overplayed at this point 5g even next year won't give that much incremental capability in the phone networks are faster. the real benefit is beyond phones, internet and things. nevertheless, it is a big deal next year from a marketing standpoint carriers will push it in a big way. in china, maybe apple is behind relative to huawei earlier in the year, apple is losing share in china, reduced prices, have new phones out. they have been regaining share in china huawei has problems generally speaking outside china at this point. i feel like apple's market share around the world and perhaps in china as well is in fairly good shape. >> we're used to dissecting phone cycles bit by bit, but increasingly we're having conversations about howar

. >> what does apple need to do in your estimation to get an investor more excited about the story? cook. it's a disaster. i think they haven't done anything since this device, which is magical. i think it's time for him to pass the baton. steve jobs passed away. the phone has been in decline since. peak phone was 2015. it prints money, sure. the major problem is they believe any company is not as good as theirs. they need to watch what zuckerburg did with instagram and what's app. dan is going to buy back if they buy tesla, peloton and spotify and put that into work, yes or no >> if they put peloton in every store, would you buy >> i like my stair master. >> the point he is making has a lot of validity to it. one thing i think tim cook has done better than any ceo is deal with the current administration. he has put his personal feelings aside. obviously, openly gay man, highest profile ceo on wall street and has done a great job dealing with the trump administration. we have to give him a lot of credit for that. on the innovation front, apple since the passing of steve jobs, but to

apple tv plus. "wall street journal" with the story today. where doesrs? brett larson from fox news headlines 24/7 is here to talk about this. your full time job is talking about apple. same thing that netflix does, what do you think of this? >> i think this is a good idea. netflix has run into a bit of trouble some of the movies they have created because they put them in the theaters and streaming platform at the same time. the movie theaters don't like that. they want you to come to the theater tore watch the movie -- theater to watch the movie first. they want the exclusive. this also means that anything that apple does that goes into a theater can win an academy award. they can have it oscar nominated. that's obviously a better reason to do it. because of that, i think it will also help apple obtain more of the top talent that they are going to want for the products and the media that they are going to create for their apple tv plus. it is interesting because when you look at the apple tv plus model, they really seem to be -- they want to create a l

the issue is, is it going to be fairly short lived if, as it pops, does what apple did which is pop and fade quickly. my shunhunch is what apple has e is what google will do >> the trade is simple it's in line with the s&p 500. it's a big component big investors are under weight the name right now if you see this fill in that july gap n get to earnings, that could be the catalyst to make new highs as people contemplate what to do with the s&p as we're less than 1% from an all-time high i suspect if the s&p braeaks ourkts this name will be doing it with it >>> for everything options action, check out optionsaction.cnbc.com and check out our super cool newsletter what your waiting for? and here is what's coming up next >>> i have a package for you >> sounds broken >> most likely, sir. i'll bet it was something nice, though >> fedex gearing up to report earnings next week if you're betting the stock will deliver on the results, mike khouw is laying out a way to play the move for less >>> plus -- calling all options action fans. reach in your pocket, grab your phone and tweet us your questi

troubling beijing when said chinese president xi jinping cut the ribbon for beijing's $60000000000.00 apple does ng is ready to serve $45000000.00 passengers per year and a set to expand to capacity of over $70000000.00 with 4 runways and the link $300.00 games. has clearly shows that for china economic expansion seems to come before climate protection how much sense does it make if we all reduce our as well let's bring another son of eisenstein he's with the 3 g. an independent climate change think tank here in berlin next sunday germany produces just 2 percent of global c o 2 just introduced stricter climate regulation. china opens a new mega board how much sense does with all these well intentioned. climate action of countries like germany make it world leading 02 images like like china obviously don't. it's a question i guess there's 2 sides of this story a china has a mess of economic growth beijing they're talking about a city of more than 20000000000 inhabitants 1000000 have intense 1400000000 inhabitants in china rising middle class of course there's a high demand we have to crow freight

>> -- is apple unique in this? the government does make exceptions. 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. an

we got word that apple is doing a bond deal first one since 2017 because rates are low, but they do not need the cash doesu? >> sure. i think the number one rule in finance if you can get cheap financing, take it apple does have $100 billion plus in debt try to roll over some of that debt at lower interest rates so, again, i think the old adage makes sense in this case here. >> sure, to the point that steve was making about the tim cook's relationship with the president. do you think that has helped the company? >> perhaps at the margin i mean the story changes seemingly every day and seemingly with every tweet so, you know, there are maybe 10% of the products that are being tariffed today the december 15 teariffs would b the big step up because that is iphone and mac notebooks and that would be really significant and we'll have to see. >> as reflecting your discussion, you have a hold on the company, a price target of $205 and we're just above that level today. thank you, guys, both. toni and steve joining me to talk apple that does it for "the exchange." i'll go join melissa for "power lunch" which begi

. >> so how does the apple app store fit in the company offerings? >> so i think to provide some context, when we launched the first iphone it didn't include the app store. we thought developers and content creators would access consumers through the safari web browser. we long supported open and free internet. we created the the app store as an complement, alternative to the open and-free internet. now we have done a lot to encourage developers to create as many great apps as possible. and we really look at it as a way to continue to sell devices. we're a device company at the end of the day and looking to convince consumers we offer the best possible product. >> how about apple music? >> apple music is part of that strategy. so we offer apple music but make it easy for competitors to access each and every ios users through the app store. so spotify, google play music and dozens of others offer apps that compete with apple music. >> is apple more of a hardware business, software business or platform business? >> we think of ourselves as a products c

apple in and that is what they continued to do until about 2015. taylor: like you said, negotiated in good faith and now having some of that reversed on them. what doeshat mean for apple in future dealings with ireland and the eu? tim: that is part of the problem and that is why i believe apple and tech companies that could be in the crosshairs will fight this. what the eu did is they changed the laws and the rules in 2010 and they are now fine-tuning them. think of yourself as an american company. if you went in with a series of agreements and all the agreements got changed, that puts you off. if i was an american company, i would be concerned about investing in europe. that is why these american companies really are looking at expanding into europe because it is great for distribution, customer service, at this point it sets a bad precedent. taylor: any thoughts on companies that start to feel the ripple effects if that goes through? tim: i'm sorry, repeat that. taylor: what companies would be next in terms of feeling the ripple effects if this fight does continue between apple and the eu? tim: at this stage, it is a little unclear. there are other

told me, the kind of company want to lend --to lend to is the kind of company that does not need it. that is why apples so well when they come to fond -- fund shareholder returns. in apple's case, they are such a good company to invest in and they have great cash management, that they keep renting. taylor: one thing you will say on the bloomberg terminal, you will see cash again, with a $200 billion, and some of the debt outstanding. when you talk about use of cash, you mentioned shareholders. how much of this would be going to pay down debt or fund future acquisitions? molly: they don't break out the terms for us. it could be any of those three. it could be capital expenditures, anything under the sun of what they said. ,f you are a company like apple when you are looking at the 30-year bond, compared to their outstanding debt, it comes out to be more than $7 million saved annually in interest expense. this is awonder -- broader question, but it pertains to apple. they are high-grade. we hear some of the lower grade companies have been doing really well because you can't get anything as an investor,

i think that is natural extension what apple does combining technology and entertainment. this is a huge industry. taking all other incremental pluses to existing products and stuff, i think the most interesting thing was the arcade. i don't know what the projections are for revenues. i think that is quite interesting. as to sort of the modifications, look i think when 5g comes along, all the people who have been holding on to their iphones are going to have to upgrade. that will be the next big move in apple. i don't know when that is. certainly it is not right now but i think that is an incredibly exciting prospect. right now, to gary's point it's a value play. so the stock will do fine. that will be the next exciting chapter. melissa: 11 pro max. connell: probably next year the 5g. to bring in an expert to talk more about that are or, i think on pricing of consumer tech, it is interesting, number one. apple tv plus, to come in underneath the competitors like disney and others come in at 499 a month to surprise people, iphone 11, 11 promax melissa is buying, come in at 6

this is a low point for apple cosmic streaming services. what does us a lot about what apple is trying to do. the big message without aggressive pricing is they are kind of saying hey, we don't want you to sign upfora of saying hey, we don't want you to sign up for a service, we aren't competing with netflix or hulu, we just want to get as many people the door as possible. they just want to get as many people as they can't right away, they don't have as much contact donna content as disney, netflix or hulu. so i think they arejust as disney, netflix or hulu. so i think they are just trying to get people to sign up for it in addition to those services. do you think that means they are serious in being a streaming player in the way we are seeing with netflix and all the others? right. i think seeing with netflix and all the others? right. ithink for seeing with netflix and all the others? right. i think for them this isa others? right. i think for them this is a big play to hook people into their ecosystem and to keep them there. so if you think about

tell me what do you think this really does for apple tv. doesn't bolton to higher strata?> i don't think so. only the content can do that. they don't have a library. like netflix, like disney, disney is only $6.99 a month, comes with all the movies, all the star wars movies, they have a lot of content and a lot of intellectual property that people understand and know. it's going to be hard to go up against that except coming in lower on the price. if you give it to me four-year free, they forget you give them a credit card and they start charging for those year from now they have the content or second season of the morning show or the show they showed a trailer for. it makes you want to stick around, smart way to get people in. aol, always give you the month free and then charged you at the end. it's very similar. liz: we will put up a lot of what apple revealed on facebook.com/liz claman. plus the prices. what is next for apple in the overall markets. they list on every exchange but we are not a single stock we look at the markets. we have to take into account the first t

neil: what does apple get out of that besides oscar contention?contention is a big deal, when you're working with talent, talent has so many different venues they can go to with all the studios and streamers that is something they can say. you can win an oscar if you come here. what apple gets out of it, goodwill from theaters. netflix they have the irishman coming out with martin scorsese film, with robert deniro, they have a limited theatrical release because they want to be eligible fors cars. but it won't be in amc theaters. neil: if they first have a theater run before they get to you, are you feeling in a weird way as a customer, hey, i'm getting gouged here? >> i think it is possible. what i think this is aiming for to get people who aren't subscribers. if you're not a apple plus subscriber, if you're not a netflix subscriber, you can still see the film in theaters. you might not know it comes from apple plus or netflix. you see it in the theater. that end up being box office dollars f you're a subscriber i don't think you will feel slighte

the also the election today is a bit like the offer of an apple to snow white in the way he queen because what he's offering is doesn apple or even election but the poison of a no deal a. so. i repeat i repeat what i said last night last night let this bill pass and gain royal assent then we will back that election john hall has more now on an extraordinary day in the british parliament it was a day that began with the trembling voice of nicholas soames winston churchill's grandson in the house of commons talking about the end of his 37 year career as a conservative party m.p. sacked this morning by boris johnson for opposing the government in tuesday night's vote and it was a day that ended with trembling voices on both sides of the house m.p.'s trembling with anger and frustration at their breaks it impasse it is clear that for many a general election can't come soon enough well it didn't come tonight that was no surprise the opposition labor party had always said it wasn't going to vote for boris johnson's motion until or unless that ante no deal breaks it was locked down well if as is expected the legislation d

covered on our social media be sure to watch your dog the podcast which is now available on spotify apple does it everywhere you will see the podcast coming up we discuss the release of edward snowden this leg who we discuss aebersold his legacy and his new memoir permanent record with investigative journalist ben swan we've stayed till the want to miss this. thousands of american men and women choose to serve in the country's military and the decision. every thing came to a complete. the day that i was raped. you know told to shut up or they'd kill me and i see how destroyed my life any screamed at me and he made me come in the gram my arm and he write me with his birthing curia if you take into account that women don't report because of the extreme retaliation and it's probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing thing tat happen but i've never seen trauma like i've seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished don't be offended

covered on our social media be sure to watch your dogs the podcast which is now available on spotify apple does it everywhere you will see the podcast coming up we discuss the release of edward snowden this leg who we discussed aebersold his legacy and his new memoir permanent record with the best going to buy this one which they don't want to miss this. where were you. 2009. that's a question they'll be asking kids grandkids for years to come now as the 1st episode of the kinds. report yes 10 years ago the kaiser report began broadcasting all over the world under the country's billions of people. thousands of american men and women choose to serve in the country's military and the decision. every song came to a complete. the day that i was raped. you know told to shut up they'd kill me and i see how it destroyed my life any screamed at me and he made me come in and he grabbed my own arm and he write me this bird think area if you take into account that women don't report because of the extreme retaliation it's probably somewhere near about half a 1000000 women have now been sexually assaulted

covered on our social media be sure to watch and watch the podcast which is now available on spotify apple does it everywhere you will see the podcast coming up we discuss the release of edward snowden this. who we discussed aebersold his legacy and his new memoir permanent record with investigative journalist but we stay till you want to miss this. next time you want more of my guide to financial survival this is a device used by professional galley legs to earn money. that's right these hedge funds are simply. not accountable and we're just adding to that. destabilize the global economy you need to protect yourself and get in for as we are. again we stand on the brink of war we should not be surprised official washington was quick to blame iran for the attack on the saudi energy assets iran has denied involvement while those who have claimed responsibility will trump take the neo-con bait and set the middle east on fire. he said in. that he thinks he's. going to work. when he does it's always you know. so. you can see. what. you're going to do with the just you know to. me she's on the. p.p.

amazon does that, too. appleinst amazon, because amazon does wait that three-month period. there are some movies they are talking about, word is $6 billion on new content. charles: apple? >> apple. charles: that's more than i initially heard. that's a lot. sometimes i buy these movies and i see sundance and the cincinnati film festival, but i mean, they are hit or miss. maybe i'm not the right discerning taste. >> you don't like independent films? charles: i love independent films. i don't know. >> that's the thing. there are suckers like me who think that's a good movie because there are six stars in sundance and all the others. charles: let's talk about the joker. apparently amc and landmark theaters are actually banning masks during the screening, this ahead of the release. a lot of people are concerned, particularly families affected by the 2012 mass shooting in aurora, colorado during the screening of "the dark knight rises" but this should not impact overall money. i'm hearing this is going to be a huge blo

. >> that's why she does it. >> apple unveiled its new iphone models yesterday.evices are generally being met positively, one feature is not sitting well with some. it's all because of the three camera lenses on the pro and pro max model. it's bothering people who suffer from tripe phobia. what is that? an intense irrational fear of small holes and clusters of bumps. like you might see in a honeycomb. a lotus flower or a bubble bath or a fidget spinner thing. apple has yet to comment on that. >> interesting. >>> it's only september, but we're already thinking about halloween. up next, we'll take you inside the new tour at the winchester mystery house. >> right now -- what's coming up. save yourselves on abc 7 news at 5:00. >> that was scary. teachers, seniors, and store clerks are now looking for homes in hayward. new at 5:00, how construction of affordable housing units put them on the streets. >>> travelers terrified after a bird collides into their plane creating a fireball. they describe the moments as they struggle to get help. and dozens of counterfeit ring

what is interesting about this case, not only does apple disagree but ireland itself disagrees. our national could have vicinity. the eu claims ireland artificially reduced apple's tax billion to the tune of $14 billion which is in effect illegal state aid which is against the rules in the eu. the eu says in 2014 apple paid effective tax rate in ireland of 0.005% tax. david: maybe ireland might want to pull out of the eu? >> probably not. this is the kind of issue that led to brexit. david: bureaucrat in brussels telling what your tax policy is. ashley: they will send a six person team. the argument begins in eu court. david: apple may have a very interesting ally which is the government of ireland. ashley: correct. david: we'll see how that turns out. >>> the ways and means committee is considering rolling back the state and local cap deduction cap. as of january 19th, the treasury department is keeping $323 billion of salt deductions. that is how much the federal government has taken in tax revenue of changing the s.a.l.t. deduction rule. come in jonathan williams. alex chief e

apple and the eu. taylor: if there is not a meeting of the minds and we get a $14.4 billion tax bill, what does that meanor apple's bottom line. mark: that is a lot of money. i would really like a check for that amount of money right now. they will find a way to sprinkle it across several quarters, do different adjustments, maybe take debt out. $200urse, they have over billion in cash offhand. if any company could take that bill, it is apple. taylor: what do the tensions mean for apple's strategy in europe? are they less likely to wanting to be working with europe? mark: basically every global corporation, so they have these issues across different countries. the tariffaling with situation. in china, the balance between local laws and what they want to do for their consumer. the eu, they have this tax situation. what you are seeing here is another one of those things, one of the biggest and most successful companies in the history of the planet has to deal with. i think you will still see them working on striking deals to get the apple card there and some of the other products they want to work on. taylo

apple tv plus. how much do all of these matter in the broader context of things as we continue to see this trade war with china? ivan: well, the trade war doesively affect apple right now because they do assemble a lot in china. first, president trump did give right now consumer electronics, which is tablets, phones, laptops, a break. the tariff that went in effect on september 1, those will not go into effect until december 15 with the possibility that they do come to some trade terms. i don't think we will see a trade deal for the end of the year but i think we will see some concessions and some trade-offs because both the u.s. and china are motivated -- china's economy is getting hurt and the u.s. economy could be hurt. president trump's possibility of getting reelected really is based on a strong u.s. economy. taylor: $200 billion of cash. do they make an acquisition? ivan: if you look at the fact they will need content for apple tv plus and they have already invested a lot of money with this new show "morning news" with jennifer aniston and steve carell. stories" "amazing with steven spielberg. they will need a lot of content to content

and certainly it does not feel like apple is leading the charge these days.said, you know, they are still playing catch up with companies like huawei and samsung.” think that is true, but i think that is perhaps how apple has been for some time. there has never really been too much of a problem for them, apart from the initial iphone, which changed everything, everything since then has been kind of iterative. the problem will be that if you are a sort of person who, like most normal people, wants to purchase a phone that lasts three or four years, the new iphones do not have 5g. many people will look at that and think, iam going people will look at that and think, i am going to have 5g. even if i don't have it today, i might have it ina yearortwo. don't have it today, i might have it in a year or two. this phone doesn't have 5g. in a year or two. this phone doesn't have 56. london fashion week has kicked off with all its usual glitz and glamour, and as the biggest designers take centre stage to showcase their latest creations and set this year's trends, prote

apple is hitting it out of the park. i saw the stock go higher last week, not down. what doesmes up with less expensive phone? are they not able to sell high-priced stuff? what does it mean selling packaged services lower cost than everybody else, et cetera, et cetera. this is the right moves apple is making. it is sitting on monumental amount of cash. management is doing everything correct. the stock continue toss go higher. the stock is holding up very well considering the geopolitical news. this stock has nowhere to go but up. charles: you talk about the mountain of cash. for a long time people say you know, apple, don't try the streaming thing on your own. buy netflix, for instance. goldman, part of goldman's criticism of apple on friday had to do with the streaming service. 4.99. no one is quite sure what they have. spending a a lot of money on content. are you concerned about a the deal like that? >> as far as netflix, i don't think netflix price earnings multiple justifies the cost it would be to apple. i don't think they need to. apple has always sort of been behind th

cycle isn't expected to do that much and next year, we expect to have 5g and unless the apple customer base does unthinkable and abandons apple for samsung just to get a 5g phone, when the 5g networks aren't really completely up and running yet, now's a good time to buy what about that argument >> well, i think the first point i would mention, jon, is that we have to be a little bit careful about that december quarter. a ho-hum refresh, i think, is priced in, but i think there's some risk that's a little bit less than ho-huho-hum apple guided up for the september quarter, part of that is on wearables, part of that is on iphones we expect given our supply work from our colleagues in asia that some of that is inventory fill and that means that the demand really won't be there for the subsequent quarter, the december quarter. so we think that there could be a hole for the december quarter revenue in iphones >> all right jeff kvaal, thanks for joining us here. >>> and still to come, livongo shares are getting crushed this morning after reporting its first results since going public the company's fou

apple does say it used too many contractors for too long. chinese law says contractors can't be more than 10% of your workforce, because they have fewer rights and benefits. apple says the report from china labor watch is largely false, but won't say what's right and what's wrong. apple has gotten much better with worker rights since tim cook took over, though i should point out before he came to be ceo, he was actually in charge of apple factories. apple showing off new iphones tomorrow, this is not it but we understand most of the improvements are going to be in the camera, maybe some new colors like purple. my colleague david lee at the bbc says he expects apple is going to kind of wind these down. these are several time a year iphone updates. unless they come up with something really new, they're not coming up with much new. does that make sense? annocements kind of losing their bang. >>> the other thing to watch today states attorneys general will announce investigations into google and facebook. we briefed you on this last week but toda

arguably, they do not have the same brand as apple does.ames them when they put a dud out there. even in the branding of these products, they're calling it the day one addition. they're not presenting this as a consumer product. the other thing is, the whole bet with alexa is you can get it everywhere. they want people to use this thing to do other things beside listen to music. i'm sure they realize that it's pretty weird to put a smart speaker on a pair of eyeglasses. but maybe somebody uses it and maybe it's more about communicating the value of alexa to the world. i mean that's my best attempt at what this thing is for. brad: thank you for that. we'll count on seeing you wearing a pair of those glasses. we're going to leave it there. michael pachter and max chafkin, thank you so much for joining us. coming up, regulation reality. we look at why libra coin has not been as quick out of the gate as hoped. this is bloomberg. ♪ brad: it's been a rough week for cryptocurrencies, with the likes of bitcoin tumbling more than 20% over the past w

what does it all mean for apple?> google will pay $170 million as part of an agreement with the ftc for violating children's privacy on youtube. critics say it's not enough. and slack john. stock shares plunge after the company's first earnings reports since its trading debut. at issue, service problems and competition from microsoft. this week china and the , u.s. announce that face-to-face negotiations aimed at ending their tariff war will be held in washington next month. skepticism on both sides for true progress remains high. this, of course, follows president trump's 15% tariff that became a reality last sunday. dragging apple further into the trade war. while it's flagship iphone is spared, some key products are not namely, apple's pods, apple , watch. a senior research analyst joined us to discuss on before the tuesday latest round of talks were announced. >> apple, like you pointed out, is kind of the clear one. any company that has manufacturing in china is there but what is maybe potentially more interesti

a strategy we do like and ultimately believe will pay dividends and we continue to believe that apple doese the potential to add around 100 million consumers to this platform over the next three to four years on streaming. just a reminder, on november 1st we have apple tv plus starting, $4.99 a month. so undercutting the competition. back to you. ashley: wow. to get the street cred and maybe an oscar, too. at least the prestige. interesting stuff. susan, thank you very much. lots of great info. >>> take a look at the markets. the dow up -- wishful thinking. down 132. certainly off session lows, down about half a percent. s&p down close to 1%. the nasdaq, biggest loser on the main index, down almost 1.5%, down 116 points. >>> coming up next, boeing's ceo set to face the music before congress on everything that happened before and after two deadly 737 max jet crashes. we'll have details on that and more straight ahead in today's fox business brief. "the claman countdown" coming right back. [ orchestral music playing ] mom you've got to get yourself a new car. i wish i could save faster. you'

that's why apple always does so well in the bond market, especially when they are coming to fund whatrgely anticipated to be shareholder returns. bond investors don't want to give money to shareholders, but apple is such a good company to invest in. they keep lending. taylor: if you come into my terminal here, one thing you will say is cash -- see is cash, more than $200 billion, and some of the debt outstanding. when we talk about use of cash, you mentioned shareholders. how much of this would be going to pay down debt or fund future acquisitions? molly: they don't break out the terms for us. it is just general corporate purposes. it could be any of those three, capital expenditures, anything under the sun. it makes a lot of sense if you apple, wheny like you are looking at a 30-year bond and what the interest savings will be compared to their outstanding 30-year debt, it comes out to be more than $7 million saved annually in interest expense. taylor: i wonder, this is sort of a broader question, but it pertains to apple. they're high -- they're high-grade. we've heard some of the lo

look what apple does. they put out a new product, new adapters for it. why don't you do that? well aware of the risk. you are articulating it with great eloquence right now? >> how about the fda require that rather than ban the products. we can talk about marketing restrictions, flavor and name restrictions, even where the products can be sold. >> they already came after you for the marketing because that's the way companies work. you do what's good for bottom line. you don't do what's good for the health of people. you know you are not selling a health product, right? >> i come at this as someone who quit smoking with the products and i am enjoying a healthier life because of it 2.5 million americans are just like me. they went want to end up in a situation where we are forced to go to black market products to no safety standards. and the black marketers will sell -- >> you don't know if it's safe now. >> public health england, royal college of physicians have both stated through great research that vaping, they have estimated at least 95% less dangerous than smoking. and eve

while apple does have crucial manufacturing here in the u.s., the company has pushed back against trump's

while apple does have crucial manufacturing here in the u.s., the company has pushed back against trump's tariffs on chinese goods. >>> plus president trump described his trade war with china during a news conference with australia's prime minister a few hours ago as quote, just a little spat. the markets were holding early gains but quickly reversed course, as you see on this intraday chart, after the chinese trade delegation here in washington, d.c. was instructed to cancel its visit next week with the montana farm bureau. the order to cancel, we hear, came right after donald trump's spat comment. up 99 points at the high, the dow jones industrials have turned tail, now down 71 points. >>> and we've got a dissenter in the house. boston fed president eric rosengren voted against wednesday's interest rate cut and has just told fox business and edward lawrence rate cuts now boost the risk of financial instability. he doesn't think we need them. edward lawrence has just finished up an extended exclusive interview and is rushing to get us mr. rosengren's reason for dissent. >>> plus, the sau

has been a big story all morning long undercutting netflix and disney with this $4.99 for apple tv plus. what doeseaming companies at large >> good morning, carl. apple tv plus $5 a month price tag is half of what some analysts predicted and it may be a reasonable price considering its launching with nine exclusive shows and its rivals have more content. that news of price tag sending the others plummeting. ro roku losing 9%, disney down 2% apple pricing is lower than all the streaming giants including disney plus at $7 and netflix whose most popular offering comes in at $12.99 a month will it get consumers to drop rival services or whether apple tv plus is different enough that at this low price point consumers will not feel they have to choose and will tack on an additional service? jp morgan writing, quote, we believe the monthly subscription to be quite attractive, a positive catalyst for adoption even as apple scales up the original content over time to compete head-to-head with netflix, prime video and disney among others netflix is protected, quote, we believe netflix's tenure head start sc

do you think the battery just dropped -- another thing after about six months >> the battery does drop off applego through the battery program. they can change the battery for free or for $30. >> i need it because i'm at 85%. >> you need to upgrade >> a lot of people i talk to have the 6 or the 6 s. get the 11. >> your door is locked >> my whole house is fully connected. >> should i get a battery? >> he needs a new phone. upgrade. >> it seems fine but i'm at 85%. >> that's apple's problem. the older phones are still good. >> is everything going to be a bigger screen? >> can you get close to this size with the iphone 11 pro. >> i'm looking at these pictures like we have a little annie leibowitz in the room here >> i'm not joking. the quality is better than we are seeing there >> todd, thank you he's going to be back here tomorrow with a review of the apple watch. you can see more of todd's reviews on cnbc.com in a bit. >> when we come back, content wars netflix lands the streaming rights to "seinfeld. take a quick look at s&p winners and losers through the at&t network, edge-to-edge intelligence