does apple -- has apple p question -- has apple peaked? you can now see the brand-new bloomberg business. ♪ >> i can't tell you how thrilled i am to make the post -- first public phonecall with the iphone. >> ancient history. >> who would have guessed that apple would be boasting 75 million iphones sold in just one quarter. it is the gdp of yemen. it is the population of turkey. $18 billion. >> that is the dominance of it. it is extraordinary. >> it is driven very much by the iphone. 70% of the revenue comes from the iphone for apple. every other products group at apple is in record territory. you are looking at the yellow line. that is the dominance of iphone. is it a good thing that apple is so reliant on its products? >> they have been consistently proving every tech journalist wrong. we talked about how terrible the at&t network was and it has been fined. who needs an ipad? it turns out everybody does. >> brian weiser is with us. the world that is talked about is ecosystem. what is ecosystem? >> it is all interrelated participants. it

led on the volume while apple has led on value. but now we are starting to close the gap on samsung on volume as well. it is an impressive performance. apple can really thank the mobile operators for the ability to deliver high revenues and high profits. operators like china mobile at&t companies in japan have saturated the market very heavily with the iphone and gets preferential treatment on store shelves. that is the underlying factor that drives apple's success and profits. >> i have seen people try to guess at it and say apple might have 30% market share across markets, but they have -- 80% market share in the market. -- 80% of profits. >> it is a huge chunk of the bottom line for the mobile industry. >> it looks as if samsung was having annexes dental crisis in the smart phone business. they were drastic -- having an axis dental crisis in the smartphone business. -- xexistential crisis in the smartphone business. >> from what i can tell they need to be careful. the chinese guys are very aggressive. >> really quickly,

it takes hp 20 two quarters to make what apple has made. ad what microsoft and google have for this quarter, apple still smashes both of them combined. pretty phenomenal. it is the iphone 6 that came to the rescue. bigger screens. up to 5.5 inch screens. suddenly, you are getting the appetite from asia. samsung led the way. they always had these bigger phones. now, we are seeing sales up 70% in china. they are going to roll out far more stores. only issue is, is that cannibalizing the ipad? ipad sales saw a fallout. we saw 18% fall in ipad sales. apple pay is going like wildfire. yet, still to calm is the watch in april. >> caroline, thank you. that brings us to the twitter question of the day. was steve jobs wrong? when asked about bigger screens in 2010, jobs said no one is going to buy a big phone. join the conversation and tweet us. joining in the conversation on set is daniel gleason. great to have you on the program. apple has phenomenal figures, and this is all thanks to this bigger screen on the iphone 6. as caroline was pointing out

apple has a lot of things going on. iphone, the ipad, the apple watch, the iwatch coming out, apple pay, home and health, coming out with beats. go back to the early days when jobs came back and said we're going to cut down on these things and focus on a few products. i think apple needs to think about, are they really just separating into too many things? they need to focus and make sure it's not just about marketing they need to be innovating on the software as well. >> apple has never been good at cloud based software. no one on earth knows how to use icloud as they've moved to the desk top people are baffled and continuity which allows your devices to message between each other people are baffled. cloud becomes more of the part of the way we use our desk tops it's catching up to apple they're so fundamentally weak. they should have bought drop box when steve jobs, you know, offended them when they came to visit and said he was going to do it himself. >> hold the thought. breaking news. back at headquarters with our d

apple reports a record profit. shady merchants. and, renegotiating with the eu. greece's new cabinet has to work. t clash may start with russian sanctions. welcome to "the pulse" live from bloomberg's european headquarters in london. i'm francine lacqua. apples $18 billion profit. the tech giant

apple has apple pay. sources say google wants to have a better competing product. and verizon invested into soft card. jim, you like apple. you like google. you have said so on this show. so which one do you like more with the payments process? >> apple now has clearly leapfrogged and taken the lead. it will benefit other players in the space. i question whether this type of pay system is a stand loon astand alone as a business. google is a currently popular company. it's on our phones. android system. i worry about these guys being outdone by the banks directly. we can use their own pay service. there's room for more than apple pay. it's clearing the way for google. >> the banks will get edged out here. i know i've been saying that for a while. paypal, they announce this had deal with microsoft where they'll start teaming up with small businesses, not only doing this payment system, but advising them on the business side for small businesses. you'll see a lot of these companies like google and apple have this integrated payment system with small businesses. where

apple has come back. samsung benefits from being a part of the android platform. there are tons of apps build for android in china and samsung benefits from that. the advantage is going away. by year end apple has come ahead. >> grade of these companies to sell sort of the same number of units. but when you look at profits it is not even close. apple reaping so many prophets -- so many prophets from the sector. >> samsung is really let on volume whereas our -- where is apple's lead on value. now we are seeing apple to start closing the gap on samsung in volume as well. it is an impressive performance. apple can thank the mobile operators for their ability to deliver those high revenues and high profits. operators like china mobile and in japan, at&t in the u.s., they subsidize a market very heavily and it gets preferential treatment on store shelves. that is a lot of the underlying factor that drives apple's success. >> i see step that try to guess at that and say that apple might have 30% market share across all smartphones. but they have 80% of the profits from t

the first iteration will not set the world on fire, others saying look how often underestimating apples hasn you into trouble. >> i'm not sure the apple watch initially addresses all the requirements people have. it's like a smartphone in your pocket. and op your wrist it's almost too feature rich. it will take a few generations to mature. the counter argument look at ipad people didn't know why they wanted the ipad they just wanted it. only now you see ipad volumes starting to decline as people scratch their heads going what am i using my ipad for? i can keep it without upgrading. it takes time to build significant generations. if people get excited they can buy that these things earlier than they should. >> without knowing why. that's all you need to know is you're getting one. we'll see you next time. >> thank you. >> talking apple. yahoo! stock rallies after announcing that spinoff of the company's remaining 15% stake in alibaba. they're transferring more than 300 million shares into the unit called spinco. did investors get what they wanted from yahoo!? joining us are martin internet a

over the last two quarters apple's reported numbers in line with the whisper number. so our community hasulse on apple earnings. so it's interesting as a whole to see if they beat it, we should see some positive price movement. liz: so if they beat or touch whisper number of 2.66, you think the stock will move in the after market? >> they're going to have to touch it -- they're going to have to top it. just meeting it, that could dampen expectations and put a slowdown in the market. liz: pete, we started by saying it's all about looking forward and not in the rearview mirror, so let's look forward to q2 and the iwatch. does that have a meaningful power behind it? >> yeah. the apple watch. i think that's going to be -- i wouldn't say necessarily a disappointment, but it's definitely not going to ignite things the way iphone and the ipad have in the past, and this just has to do with the phenomenon of smart watches. apple has already unveiled the apple watch, and everybody is very interested, but really the whole category of smart watches is something that is like a solution looking for a p

you know apple, as i said has proven to be masterful at capturing people's imagination. they really had in this case i think, a lot of pent up demand. a lot of people had the iphone 4 or the iphone 5 who were just waiting for that moment and they pounced when it came. >> and there were a lot of people in asia who just really wanted a large screen phone. a lot of the analysts mistakenly thought that samsung had somehow captured those users and that they wouldn't move over to apple. they have moved. tim cook saying that the android switcher rate is higher than ever in this cycle. you know what a breakdown in apple looks like is a superior product or an equal product that comes out from somewhere else at a cheaper price that breaks down their retail advantage, that has not happened. >> if i do say so and i can wait. phone is going to ring here in a minute, i know. i think they were a little smug for a while there about the fact that many people did want a larger screen phone. right? >> yeah and now -- my grading as intensely from -- it's bigger. >> they wanted it. they did

apple board. mickey drexler is, remember, the current ceo and chairman of retailer and apparel maker j. crew. he hasn a part of the apple board since 1999, viewed by many, including our own jon fortt, as the retail confidant for apple's board and its ceo. so mickey drexler, again, stepping down, or plans to retire from apple's board. more details as we comb through more of these filings from apple, guys. back over to you. >> thanks for nap. >>> big day for the airlines. southwest beating estimates on top and bottom line. the stock soaring on this beat. and united continental missing on earnings. united saying thes benefiting from declining oil prices and could soon restart its buyback program. and the nyse index hitting its highest level since 2002. >> we almost won, too. >> not really. >> no, it wasn't close. >> i will mention that tim and his bull debate was talking about that and i think the domestics are the place to be. jetblue had a massive day today, it was up 7% and breaking out to multi-year highs. but here's the thing. someone like united, it seems like southwest is very good with the whol

appreciate it. >>> apple may have been on to something when people complained about those new iphone 6 plus phones bending in their pockets. now it has exclusive rights to flexible technology. apple was granted 28 licenses that could mean a new bendable phone from apple one day with a flexible screen battery and circuit board. and it has technology to rival google glass, the company says. it calls it life stream. recordings could mean raw video facial recognition or even pupil dilation. >>> in the words of captain kirk it has let us boldly go where no one's gone before. the hubble telescope has given us images of space we could only dream of before and now that the galaxy's pre-eminent paparazzo is turning a quarter century old, nasa decided to revisit some of its new technology. this is a picture of the pillars of creation. three giant columns of gas lit up by a cluster of stars. it's from 1995. amazing and iconic it found its way onto t-shirts and movies. all of nasa's technological arsenal used to take new photos of the pillars, the results are something to behold nasa says there are even newborn stars hiding in the hues of those

apple has a record amount of cash in investments of $178 billion. "usa today" reports microsoft is closest behind and could pay americans $319 each. of course in the bay area you get paid in the weather right? we will check with meteorologist mike nicco. a few dollars today with sunshine for you, mike. >> a lot of sunshine absolutely, and the solar panels are work overtime making a lot of electricity. why necessity if it is $500 in electricity but it is helping. let me show you yesterday the storm last night rolls through massachusetts the coastal community has numerous problems. this house completely frozen over by the blow off from the mist created by the giant waves. officials say numerous houses suffered structural damage in the storm. estimated the worst damage to homes in nearly two decades in that area. thankfully they were evacuated. this is what we woke up to this morning. it is gorgeous. we thank our twitter follower from south san francisco. doesn't that look gorgeous? here are the winds light and variable and maybe breezy but it is hazy

tim cook at apple has taken a hardline saying we don't look at what's in people's imessages. n saying we're going to ban you unless we open it up. either apple rewrites ios 8 or just can't sell iphones in the uk, right? >> that's not going to happen. >> yeah. >> i mean they can threaten it but it's not going to happen. messaging services all over the world, giant ones in china, india. this is really -- the question is do existing laws in place take care of this and how transparent can companies be about government requests for information? that's where a bone of contention. they feel there's existing laws in place like any google used the example there have been safes for years but you have to government -- you have to have ways to get them by legal means. i think the question is how much the government can pressures these companies and a lot of ways i don't think as much as they think they can. they can make a public stink about it and that's what they're doing. >> i like how we're looking at kayla's snap chat account on camera. >> we're watching kayla carefully into yes. >>

storage >>> apple has been slapped with a lawsuit accusing the tech giant of promising more storage spacets devices than it delivers. the two plaintiffs are seeking more than $5 million in damages. their lawsuit claims apple's new ios8 software takes up 3 gigabytes of software on an iphone 6. that's 19% of the phone's 16 gigabytes of advertised storage. the software also takes up about 21% of an ipad 3 space. apple has not commented on the pending litigation. >>> when it comes to one well known local area code 415 number is almost up. 628 will be introduced in san francisco next month because 415 numbers are running out. in about six months, anyone in the 415 area will have to start dialing 1 plus the area code for all calls. >>> well, we are starting out with clear skies for the most part. hazy out there tonight and it will be a chilly night in the bay area. things got warmer today. they will get warmer tomorrow as we look toward the bay bridge. it's very bright, under the influence of the full moon. and concord has 46 degrees in san francisco, 51. in livermore. 44. it has gotten chilly.

even apple has got to that conclusion.n that you've seen people talk about it as a good buy is, it's almost got over a 2% dividend yield and it's growing and it's innovating but it's paying back its shareholders. that's the mantra i'm pounding the table on. that's how you provide stability, that's how you provide overall long-term performance and you have less volatility. who wants a 20% loss in google in six months? i don't want that. i don't want to own that stock. they have to show me respect and send cash back and do it now. >> depending on when you got in that stock you could have seen a 20% momentum move in the other direction and ridden it to the upside. we were having this debate earlier with roger mcnamee of elevation partners and he said, the fact that amazon signing woody allen to develop a new tv series, well done for them. they need some buzz and cache because that stock was getting expensive. buzz cache for momentum names does seem to be important, no? >> i love roger. we both collect guitars. a lot of respec

charles: if you like apple, buy any fund because every fund has apple. hey, the obama money orgy.ave to tell you, everybody made money on this. it was gobs and gobs of money. great orgy of money. the only thing you got was a higher health care bill. at the state of the union address, president obama will declare victory. we'll debate that next because it is after all your money. ♪ these ally bank ira cds really do sound like a sure thing, but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. so this is a great opportunity for an upgrade. sound good? great. because you're not you, you're a whole airline... and it's not a ticket you're upgrading, it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ it's working for new york state. already 55 companies are investing

think you're chasing performance, which is what a lot of professionals do, which is why everybody has applen their portfolio. >> i see many dividend plays in there. i would diversify into dividend plays. i want to know how old he is. you need to know the time horizon. charles: tomorrow we'll do how to balance your portfolio based on your goals. not necessarily your age, but your goals. preservation of capital, getting rich, i don't know, whatever it is, we'll break it up. >> i'll counter what you said. and say, step back. subtract your age from 100. that's how you go into stocks -- charles: people are living older. >> you can do 125. i like the old school style. charles: danny is 90 years old. come on now. you want to load up on bonds. matt: you're going to outlive your money. people call me all the time, they have 50% in bonds. you won't have any money when you're 75 years old. >> you have to take the risk now. matt: most are still working. ten years to put money in there. >> you made a good point, it depends on his age too. matt: obviously, you lighten up on biotechs. what about energy? c

apple stock has been positive the day after every single time. you had had bought apple shares at yesterday lows close going into the number and you got this kind of report those shares rose. and it also rose five trading days later as well. pretty decent for apple. if you're an apple bull this might be the time to say, the history that we had for the last 12 years shows apple does well. $178 billion in cash that's a huge number. we know that's a lot of cash. but just to put it in perspective begin the $178 billion that apple has in cash and short-term investments that's bigger than the market values of at&t worth $170 billion. and also bank of america at $164 billion. and disney at 159. apple's cass hoard can buy each of one of these companies. with yahoo! to put it in perspective, 340 alibaba shares. and around $40 billion. ia ha's market value, entering yesterday's close was $46 billion. so, again, a lot of value at yahoo! we know this has been placed in that alibaba stake. and today, we'll find out how much they want to put in that business, t

facebook has hired frank gehry. apple has foster partners. has [indiscernible] facebook is building a city sort of. apple is doing something entirely different, with an enclosed space. what works? >> obviously, i cannot really comment on what works, because i am sure that apple and foster have a very specific idea of what works for them. i actually found it really interesting that foster's building, which is really hermetic and very sharp -- aaron frank gehry -- and friend gary's building -- and frank gehry's building they can be so different, even though they are tech companies. that shows you how interesting architecture can be, and how important it is to work with architects, articulating what works best for you. >> i read jane jacobs "how cities work," the size of the architecture and around the architecture. i know you are so inspired by new york city and the way new york city has accidental architecture around it. i wonder what, knowing a city like that, how that informs the design of your buildings. >> i think that basically every pers

caroline hyde, who has just made according to her calculations how many millions? >> apple $1 million. >> the new greek prime minister alexis tsipras unveiled his cabinet yesterday. the picks suggest that greece is on course for a confrontation with the eu. marcus, thanks for joining us. tell us about the members of this new cabinet. >> yes overall -- [indiscernible] the new finance minister, a lot has been written about him. he is a bit of a maverick. overall, the number of ministries has been reduced. if you look at the faces at yesterday's swearing-in ceremony, they are the faces you would expect to see at the swearing-in of a radical left party cabinet. it would herald a change in approach from a whole range of issues, foreign policy to policing, potentially. >> where are we likely to see the relationship between greece and the rest of the eu tested? it could be around foreign policy and russia, not necessarily around the economy. >> that would be the first potential flashpoint. we have a meeting tomorrow of european union foreign ministers to discuss more sanctions aga

apple has to keep running hard. the mean note sold out in the first day. ot the end of the day for apple. they have to keep innovating. >> we saw what john steinberg did to get his hands on one of the phones. they are quite the status symbol. thank you so much for now. apple shares rallying nicely on top of their earnings report which did beat those mind melting expectations. so what's next for the company? the big hype around apple watch, will it drive the company's earnings next quarter and what sells in the pipeline? we'll talk about that when we come back in two. >>> welcome back. here is a look at shares of apple. just below the $115 mark after hours. a rally of 5% after earnings with that iphone in particular beating expectations. so as we start to think about where the company goes and how it continues to grow from here a lot of focus on the pipeline the watch, the apple watch is due out within the next two months. let's bring in colleen taylor and roy choi and our panel. colleen, what is the latest expectation for the watch in terms of timing and fe

has been saying all along? >>> and later, gopro tanking on news apple has been granted a patent for wearable camera. the details next and how to trade it. >>> want more "fast money"? now you can catch more episodes any time, anywhere on your mobile device. any time. >> and i do mean everywhere. >> go to cnbc.com/livetv to watch "fast money" on your smartphone, your tablet or your laptop. watch live or get up to speed with the latest full episodes, all with one simple click. with market advice this good, you can't afford toe miss a single trade. get your ticket to "fast money." >> everywhere. >> at cnbc.com/livetv. stamps.com is the best. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage

thethe lawsuit also claims apple has misled customers about it, apple's declined to comment to cbs news. >> and as we usher in the new year, and you prepare to put away the ornament, you may realize you received your christmas cards this holiday. hallmark says the number of paper cards delivered has dropped from 2 billion a decade ago to 1.4 billion more people are sending cards on line, or using social media to deliver holiday greetings. not the same, though, as opening a paper card. >> no. love december so much, mail get fun. >> i'm finding myself doing it sending facebook message a text, a phonecall, that kind after thing not as many cards. but i should do it but not as many. >> not the same, ukee. >> i understanded. i'm getting older now, my art right flaring up i can't -- >> oh, stop. >> -- do stuff. thanks jill. >> time right now 5:37. and investigators in burlington county are trying to figure out what sparked a huge warehouse fire. the fire at the old area owe safety device -- arrow safety device building was breaking news yesterday morning. took firefighters almost five hours t

cnbc has launched apple will sell a version of the i-plus and i-plus 6 today. unlike phones that appeal to consumers who don't want to be tied down to any particular wireless carrier. betty, back to you. >> thank you. >>> in sports unt paid a tribute to stuart scott who died sunday after a long battle with cancer. he was wonnered from the unc/notre dame game. a moment of silence was held and students held up two signs in remembrance. the team also wore stu patches on their uniforms. >>> market paige tries to shoot over three defenders but misses. the tip-in was after the buzzer. notre dame wins 71-07. >>> after serena williams lost her first match, she decided she needed a coffee break. she was deliver a cup and it apparently was the boost she needed. williams went on to win the match. >>> still ahead, flu season and more states are reporting activity, plus the 2024 summer olympic are still pretty far away. several u.s. cities are competing for the game. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 50,000 b

apple has had a major role of putting americans back to work even though apple wasn't doing a lot ofiring. we bring you that story, and apples numbers, next. ♪ >> it's 26 minutes after the hour, which means bloomberg is on the markets. i'm matt miller. stocks are trading right now down across the board. although not as bad as we had earlier scene. the s&p down three quarters of 1% are in the dow down 150 points. it was down more than 200 earlier in the trading session. take a look at a couple of individual movers here. the container store, though shares tumbling by the most in three months after the retailer reported third-quarter sales and missed estimates. and helen of troy shares surging to a new all-time high. the personal household product company raised its 2015 outlook. ♪ ah, got it. these wifi hotspots we get with our xfinity internet service are all over the place. hey you can stop looking. i found one. see? what do you think a wifi hotspot smells like? i'm thinking roast beef. want to get lunch? get the fastest wifi hotspots and more coverage on the go than any other provid

apple has one competing with apps such as brain loss think. going to see if we could articulate more clearly, retaining more information or process more information just by taking some pets. right here as you can see i'm going to how to read and right a little bit better. it's called brevity. after i take this exam it will customize training lessons to where i need improvements and just like a good personal trainer it's going to give you a new jersey every day to make sure you keep the brain working. if you want to try this out it's already been downloaded over 25 million times. the first few exercises are free and then if you want to train your brain, it's $25 a month. unlike most of the apps on these phones, reach out to me hashtag unlike most o♪ ♪e apps on these hershey's spreads. bring the delicious taste of hershey's chocolate to anything - everything. with hershey's spreads, the possibilities are delicious. fox 29 news is with you. i love when the whole gang is up with you. we got a tweet from sue, she will be back together. we're going

apple is iphones and iphone 6s. yahoo! has a floor under asian assets but apple will have blow out numbers are to the iphone 6. yesterday was an awful, awful earnings day. today will shape to be a very good one. into the weekend are good if you own companies like apple. i used to own it. i don't own it anymore. david: would you buy it now, it is about 110? >> not yet. i think one of the things that reason he sold apple i felt like i didn't need to buy an ipad anymore. i didn't need up to grade my iphone. >> guys, jump in here. liz: go ahead, cheryl. >> a couple of crucial headlines. they will spin off into new company. this new company will distribute the shares. basically she is splitting things off and that was something else we were looking for now. this is crucial. this deal completed first quarter, excuse me, fourth quarter of 2015. they have got a lockup agreement with alibaba. will take some type, i want to be clear on this. from what i see here they will continue to hold off on the stake in yahoo! japan but split into

david mckenzie shows us how china is playing a large part 234 apple's success. >> reporter: china haswn how crucial it is to apple. analysts say there are two main reasons that apple is doing so well this china with its iphone. first, they finally managed to do a deal with china mobile the world's biggest cell phone carrier. and it's the immense popularity of the iphone 6. chinese customers are still willing to pay premium prices for their smartphones. the performance of the iphone is worth the price, he says. by now, we are all used to the operating system. so we don't switch brands. my dad bought me the iphone, he says. i like it. apple is aggressively expanding its store fronts in china, opening a massive new store this week. too much fanfare. despite its rock star status, apple still faces challenges in china from government regulations and competitors like an upside company that's selling incredibly well in china. still, with more than 800 million smartphone users in the country, the sense is, there are plenty of profits to go around. david mckenzie, cnn, beijing, china. >> offic

apple has conquered the world. >> i want to play games. all mobile phones are similar. iphone functions for playing games. reporter: customers are almost religious in their fervor for religious products -- for the products. there are concerns. many say that apple should pay more taxes around the world. competitors are snapping at the heels. >> the financial committee will question things, like why they are not paying more taxes and not putting more to work in dividends or anything of that nature. reporter: next, a watch that will be launched in april. katty: for more on the i-p opping profits, let's go to dan. 75,000 iphones sold. >> a lot of phones. they got a lot of boost this time around because the generation was different than the last couple of generations. they picked up people who have been waiting around for key features. iphone had fallen behind. other phones have bigger screens. a lot of people have been waiting to get the iphone that has bigger screens. katty: are you suggesting that they need to come up with new and improved iphones? dan: certainly, wheneve

by the way apple has -- neil: i beg you to stop. jared, what do you say? hould get into the health care business. first of all, this is why you don't make broad sceepg changes with that or no research in a short period of time. frankly, this you can keep your plan lie is one of the smallest lies i'm worried about. i'm more concerned about how this -- this act is going to change the way that we treat our patients and the quality of our health care. i we'll be able to keep our plan. >> i'll kiss butt and answer neil's question. neil: at least one of you will. you should try it now and then. >> i'm stealing lizzie's facts. 31 million will be uninsured after -- neil: the whole idea was to make sure we had zero. now we have 31 million. what do you think of that? >> nothing. neil: exactly. on to issue three. the federal reserve saying the economy is solid, what about companies that are cutting their jobs and outlook, both. that doesn't sound solid to me. >> it's not. interesting statistic three weeks ago analysts were looking for 4% growth. a lot ofly the blame i

all-time high $119 so very well could meet that or exceed that today because apple has such a good quarterill the darling of wall street especially after it had its 7 to 1 stock split. it means that apple is in more mutual funds. chances are you may be owning some shares of apple. beyond apple what's also moving the market? the fed. the fed having its first meeting today actually ending that two-day meeting today. having its first statement. everybody, carol, watching and listening to hear what the fed is going to say about what its timetable is when it's going to raise interest rates. everybody is looking for the fed to have patience in when it raises interest rates because of all the global uncertainty going on not just with the u.s. because we are getting mixed data these days but also what's happening in japan. there's a recession. you're looking at china's economy, we're seeing a slowdown there. the european economy, we're seeing stagnation. those are some of the things moving the market today, carol. >> before we dive deeper into apple because the figures out of apple are mind boggli

. >> look at that apple model, apple has just one phone.hey really have three a few think about the different sizes. -- if you think about the different sizes. there is something to be said about simplicity. at one point nokia -- it is a lot of work to manage the components and makeup too many skews. i think it is smart to bring it down to fewer overtime if they want to be competitive with apple and a lot of these chinese players have been eating their lunch for the last nine months. >> you can see the market share coming down quarter by quarter. gradually. it is still impressive and every other cell phone maker would like to have that kind of market share. i was doing some back of the envelope calculations on the numbers they put out last night. they're operating profits are tiny compared to apple. they might not sell the most phones but they make the most -- but they don't make the most money. >> they don't. one of the reasons for that is the -- a lot of samsung's business has been at the mid tier. as you have seen more competition from x

apple pay? the director of investment research at citi has a buy on apple and 135 price target.at. good morning carl. >> yesterday we were talking about foreign exchange easier to manage if you get plarjens closer to 40%. >> when you have a hit product with innovation foreign exchange is a headwind for many companies but we see that apple plowed through the foreign exchange headwind. >> stocks hesitant to break through 119, 120, why? >> people were concerned about the foreign exchange risk that we talked about. but would we see a top in apple sales? we saw they beat expectations by over 10% to 13%, based upon sales, units and earnings. we are seeing it start to break out. is it expensive? up 40% last year carl and we're happy with the buy rate on it and see that price move it's relatively cheap. excluding the big amount of cash it's trading at ten times earnings. we think it continues to move higher . >> any worries about tablets and ipad, and if not, when does this period of softness and adjustment start to end? >> absolutely. i can agree with you on that point, is there is can

. >> as profit soared to $18 billion, apple has a strong hold on the mobile phone market and its executives expect momentum to continue as it introduces new products. >> apples record profits are largely due to this. the iphone six. 34,000 were sold every hour every day in the fourth quarter of 2014. the iphone contributes almost 17% to apple's revenue. the ceo tim cook says the popularity is staggering. it's more than making up for the disappointing showing of the ipad. figures last quarter exceeded all expectations. from october until december apple made a net profit of $18 billion. that is 38% up from the year before. profit margins on the iphone are high. apple keeps production costs low by having most of the work done in china. sales there are also hitting new highs. apple is now the biggest smartphone company in china with 21% of the market. >> let's see what else is moving the market. this wrapup from the floor of the frankford stock exchange. >> good news for the german consumer. the mood at a 13 year high. also in news from some companies. from germany but also the united states. t

has the missing piece of the labor market tussle been found? >>> cashback? is apple ready to give billions back to shareholders in the form of dividends and buybacks? we'll speak to the analyst who says "yes." all that and more tonight for "nightly business report" on tuesday, january 13. >> good evening, everyone and welcome. if all you looked at today were the closing numbers on wall street then you really really missed it. the dow ended with a piddling 0.2% decline. not much at all. but between the bells, it swung. 425 points from peak to troll in a wide volatile trading session. at one point, up 282. at another, down 143. for the first time since 2009 the dow moved from being up 1.6% to ending negative on the day. pick your reasons for the volatility. the bull's earnings report yesterday. some solid chinese trade but then the bears took over on trouble technicals. word that germany may be bulking by europe's central bank and of course oil. it resumed its problematic slide today as brent crude briefly traded at parody with domestic oil. here's how the major averag

apple will announce this week it has sold more iphones in china than in the united states for the first time this year. apple struck a deal with china mobile back in december 2013. more apple, apple pay is succeeding at its top goal, namely, getting people to use it. retailers see big demand for the service with one commenting saying, quote, our customers are saying it's safer. >> apple pay is great. i just used it last night at whole food doing my storm preparation. it was manic in there. on the china issue, this is greater china. not exactly a surprise if you're following the trajectory of iphone sales. very key because samsung was looking at china as a very important market and it's getting hit at the top end by apple. and at the low end. so apple strength there does matter, but it makes it particularly important because they're opening up these retail stores before chinese new year. >> tim cook said in 2013 that the tipping point would at some point come, that china revenues would ellipse revenues here in the u.s. what do you think made it happen so soon? do you think it was the lar

intel adoeb e, ibm don't consider it a paid holiday either but apple has used dr. king in its advertisements in the past. there's the irony. apple tells nbc bay area it encourages employees to recommit to volunteering on this day. >>> the new york stock exchange and the nasdaq are both closed today. banks generally closed as well. we'd ask cnbc landon dowdy about that, but she is actual lay sleep right now. so let's have a gadget monday inste instead. some guys from fly kai stopped by, they make an electric drive, it's a hub for bikes. you put it on just about any kind of bike, that white thing there, it gives you a pedal assist, they call it the smart wheel. >> inside you have a motor battery, electronic, some blue tooth so everything in such a small space and fits on any bike. when you start pedaling the motor turns on and helps so you makes it easy to peddle and ride around the successful. >> hugely successful on kickstarter. i tried it. the biggest problem is our front parking lot is so small and the pedal assist is so good, you really accelerate quickly and the

mobile pay has been around a while but it wasn't done right. apple is doing it right now and i think that there's a long tail to this. the apple watch will help with that. for those investors that might be a little leery of just betting it all on apple j and p securities would like to say there are other ecosystem players you can invest in, players like arm holdings that supplies the 64 bit processing horsepower for the iphone, like sky works that enable the top tier connectivity or even a universal display that's going to be the underlying technology for the watch. >> good to talk to you as always. be well. >> thanks so much. >> wraps this up before we move on. >> it makes me think again when we talk about don't trade it own it, back to when i made that ridiculous call, called it a generational buy the stock went down $200. i can't it tell you how much i lost on the way down trying to figure it out, getting in and out. finally i set my strategy in what i wanted to do and the reason why you just own this and not trade it is this is a company that kno

apple has come a long way since the reverse split and we have seen -- or since the split and we have seen a lot of the technology sector continuing to do well. we think apple has a good year ahead of it. >> okay. >> there we'll leave it. thank you for being here this afternoon on a session where markets are off more than 200. the dow off only we should say 82. a rough start to the day. a number of data misses. now attention turning to earnings among other matters. >> we have had turnaround tuesday twice today. right? coming up, closely followed wall street strategist byron wien with us today. he's not making predictions. non predictions he is emphasizing. he says the s&p jumping 15% this year and that was before the last 2 days he made that thought known. not a prediction. sticking to that call? he will join us ahead. >>> drivers not wanted. mercedes with the self-driving electronic driving car in vegas. phil lebeau will talk about it. >>> is it a problem of insuring driverless cars? >> cannot wait for that. >> how do you that? tom wilson joins us from vegas coming up. [container door

than 12% yesterday after reports of this ad and servers on the tech lies in the financial wires apple has announced plans for the patent but we know it covers the design for a remote control the digital camera that you can attach to the helmet or scuba mask this sounds like a go pro. the office records show that it works applied for his patent in 2012 still ahead coming up at 6193 bay area middle schoolers were taken to hospital last thursday for a second-hand local message on purpose will have more on this dangerous they're ahead. >>darya: are recall involving thousands of cleared mattresses will tell you about the bay area students receive the award winning film some offer free. [ female announcer ] take skincare to thnextevel witroc® multi correxion® in 1 proven to hydrate dryns illuminate duness lift sagng diminish thlook of da spo and smooth the appearanc of wnkl. high performance skiare™ only from ro® hey! i found my true love livin' in a sweet dream. singin' my favorite song and it all starts with you. whoa-oh-oh-oh, all this goodness... what matters most should always come first.

apple has basically stead, we're going to then try to target all three of those different things withactually, though what is interesting about apple and how it relates to all of this stuff is this. apple's products are not cheap. they are not the cheapest products on the market and apple is very proud of that. it says a lot about the type of economy that we have seen the fact that apple's market share has continued to grow also as you watch the economy continue to grow. as you continue to have more and more people, both in the united states and asia answer teringentering the middle class, they are riding that wave as well. >> that's a good point. shira, how did they do it? >> i think it proves that size does matter. as people move towards electronic devices and they are only wanting to carry one electronic around, they wanted a bigger device. but i think it's particularly interesting that the sales were huge, in part because sales in china were so massive. >> that's right on the point that you just made. you know steve jobs had said in 2010 that no one wanted to buy a 5-inch phone. h

here on bloomberg west, we focus on technology and you're one of the only carmakers that has taken appleshnology as well as google technologies and put them on the infotainment system. >> yes. we are very happy. we have seen the best of the best. this is not future and long-term, but we bring a totally new generation of infotainment features, much faster, bigger screens. you compare all of your major smartphones directly with the system. no hassles. it will be great. >> michael horn, thank you very much. back to you. >> matt miller, thank you very much. more after this. ♪ >> you watching "bloomberg west." i am cory johnson. president obama wants to send qualified american students to community colleges for free. the plan would cost $60 billion over the next decade. the fed will pick up three quarters of the data mistake the rest. -- three quarters of the tab. plan is subject to approval by congress, which plans not to approve a lot of things. joining us from new york, cheg ceo. it is a broad and big idea. >> it is very ambitious and i appreciate the objective to lower the cost of educatio