the iphone maker saying that they sold 74.5 million iphones and that's giving the tech sector a boostesterday's steep losses. let's bring in larry glazer, manager partner with mayflower. apple we thought would carry the market. it did at least temporarily. now traders are worried about oil build in inventory and also what the fed is going to say this afternoon. how temporary will this effect be? >> today's market action is disappointing, particularly if light of yesterday's drubbing an particularly in light of the fact that boeing and apple both bellwethers had strong numbers. investors came in with two overarching beliefs one was that the u.s. was the best house in a bad neighborhood and the other there simply is no alternative to u.s. stocks. those beliefs are getting investors into trouble. there are alternatives to u.s. stocks and we're seeing those leave the u.s. markets this year, whether it's gold, emerging markets, even foreign developed markets and the debt markets. investors are looking at earnings with skepticism and seeing currency an excuse for a lack of execution for com

the iphone functions for playing games.orter: 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, whenever they have success in an area everyone

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 i

they don't release the exact break down between the iphone 6 and iphone 6 plus. but there was a $50 increase across the board. the 6 plus does well. as we talked about the last year so much on whether they can defend that margin they've got which samsung hasn't been able to do. this helps them do that. >> goldman sachs upping their price target to $130. so wall street believes this is not only a success story but a growth play which is interesting because last year's investors thought it was an dividend play. but with the success in the iphone 6 this is also a growth play. >> absolutely. interesting you mention the dividend there because their cash balance is so vast now that it is higher than the market cap of 480 out of the 580 in s&p 500. >> amazing. >> absolutely amazing. since 2007 apple shipped more than 1 billion iphones, ipads, ipods running the ios system. doing well at the moment. on that note is the company better than ever with ceo tim cook at the helm. join the conversation. get in touch worldwide at cnbc.com or by twitter. our personal handles are o

they're in the universe of the iphone. they make the iphone more valuable.s apple's dna to have a totally integrated experience and that's why apple can charge twice as much as anybody else for their phones and that's why their profits are so amazing. >> they are incredibleyey expensive. this great mystery, where are all the gas savings going? everybody is just buying an iphone kenny. >> because he's rate. everything is integrated no matter what you have whether you pick up the iphone the ipad, the i-watch, your mac computer at home. it's unbelievable how they have created that really that world that people just -- now we just operate in it. >> we're seeing some upward pressure. the cues, the etf for the nasdaq, is moving higher. apple is a big component of the nasdaq, the s&p 500. i imagine quite solidly the biggest company in the country. >> the more products it sells, the more money it makes from its own ecosystem, the more cash it's going to have on hand the more demands it will get from shareholders to return some of that cash. $178 billion is its cash

it seems to me that the margins suggest that it wasn't just big iphone sales but big iphones, the iphone 6 plus. >> some of the geographic mix they said overall they sold more iphone 6 than any other ones. it sounds like in the emerging markets, the 6 plus has been the winner. that has been a suspected. a nice impact on growth margins. guidance for march was better than expected and would have been even better if not for the fx impact. anyway you look at it, it looks optimistic. >> 46% unit growth on a year-over-year basis on the biggest quarter they ever had a year ago, it is interesting also that the numbers were so strong and the market reacted to it as if it was going to continue to happen. will this continue to happen with the iphone? >> they talk about that, the sustainability. that is the core question for investors. at some point, they will have to start comping these incredible numbers. we are already working through that question. some of the comments from tim cook is that first-time buyers were at an all-time high. they have been tracking the switch rate from android two iphon

there is the iphone company. there is a huge number, 687. that was the asps on iphones. and they have larger capacity and we have larger screen phones. i'm not certain that's the one thing, if you want to pick this apart, i'm not certain in an environment that we are in going forward where they will be a lot of the growth, which will is geographically whether that is an asp that will stand none a world where android really dominates market share. >> i'll get back on my horse now. gross margins were 39.9%. they beat by 140 bips over what the street was and this is a the a time where i think this refreshment, people are willing to pay this. apple should be defended here for their ability to defend their margins and their asps. i don't think some of the other players that we know are fantastic companies stealing market share, i think there is a place for everybody here and apple is winning. >> let's bring in brian blair. he has a buy rating on the stock. great to have you with us. got to be honest, when we heard that you were saying that the numbers for the imt phone sales

>> it's so many iphones, that's more iphones than there are in the world, i'm pretty sure. fake!n youtube. fake! >> we hear you loud and clear. the video of the tumbling iphones is completely false. the domino display comes from the creative minds at atma studio in san francisco. >> i produce animation and viral videos and other kinds of digital content. >> that content includes concept videos for latest apple products. >> we like to visualize what we want to see in the next iphone as to posed to what's rumored so a lot of times our concepts are, you know, a little too far fetched? >> in futuristic iphone video grabs more than 68 million hits and leaves tech geeks wanting more. >> they think we actually made this iphone so they wanted to buy it from us. we did get a ton of e-mails all over the world actually, sheiks in dubais saying "money is not an issue." >> in march, 2013, the team brainstorms a new video. their goal is to publicize aatma, as well as showcase here infield technology. >> it's passing one device through another. the idea of dominos was a great way to show that.

as you referenced, the iphone is the company's most profitable product. you have a new iphone six plus cannibalizing sales of the ipad that is not so bad given that you have a higher blended margin and the iphone has residual benefits in terms of long-term contracts and carrier relationships. it is worrisome and i don't think they have a quick fix for it. >> $9 billion in sales is not too bad when it comes to the ipad. i do wonder about the future of the tablet as a product line. >> that is an interesting thing to consider over the next number of quarters. people are taking a step back and realizing the ipad probably is not going to notably contribute to growth. that makes apple more focused and reliant on the iphone which injects a new level of risk into the story. a great quarter people understandably are enthusiastic about what apple delivered. to be frank the more and more reliance on the iphone means there is more risk when it comes to things like carrier subsidies and competition that might occur on the smart phone level that we have not seen as muc

iphone 6 and iphone 6 plus. unleashing these has brought in more and more people.y during the holiday period. we are going into developing markets eating into android and samsung territory. sales were up 17% in china. also the new ways you can pay quite recently. overall, they are seeing 2/3 of money in this way being taken by apple. i think many investors might agree that it will be worth $1 trillion at some point. >> let's turn from apple to goods. it has been a big quarter for europe's biggest appliance maker. joining me is the president and ceo of the swedish appliance maker electrolux. give us a sense of how bullish you are on europe. there is a lot of concern surrounding europe. where do you see the most momentum? >> actually, there is better momentum in western europe. certainly, southern europe is stabilizing. we see strength in spain. italy was good in the most recent quarter. the u.k. is strong. dramatic europe has been good. -- germanic europe has been good. we see some strength in western europe. positive numbers, albeit not robust. >> you have been res

sales, but big iphone sales. the iphone 6 plus. >> they talked about that on the call, some of the geographic mix. they say they sold more iphone 6 is than any other one. sounds like in the emerging markets, the six plus has been the big winner. that has been suspected, given that they have not had an answer to the larger screen samsung's. that has a nice impact on gross margins. their gross margin guidance for march was better than expected and would have been better if not for the effect impact. anyway you look at it, it looks optimistic. >> 46% unit growth year-over-year on the biggest quarter they've ever had a year ago, it's interesting that the numbers were so strong and the market reacting as if it's going to continue to happen. is this going to continue to happen with the iphone? >> they talked about the sustainability and that's the core question for investors. at some point we will have to start comping these incredible numbers. investors think six months ahead, so we are always -- we're already working

the iphone is very popular there. david mckenzie has that part of the story from beijing. >> reporter: china has shown how crucial it is to the u.s. technology giant apple. and analysts say there are two main reasons this apple is doing so well in china with its iphone. first, they finally managed a deal with china mobile the world's biggest cell phone carrier. also 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. "boy 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 storefronts in china offering a new massive store in china this week. too much fanfare. despite its rock star status, apple still faces challenges in china from government regulations and competitors like an upstart company that is selling incredibly well in china. still, with more than 800 million smart iphone

to the iphone. but then again, you're up against the idea that you're strapping a iphone 6 plus to your ski helmet or surfboard. it's hard to fathom that. >> charlie anderson of doherty and company. charlie by the way has a neutral rating on the stock. so it's not like he is really enthusiastic about the gopro story. but strapping the iphone. that was your idea. way back when that was your idea. >> we're talking about this as a hardware company. you can put an iphone on your head. you can do anything. you could come up with some other type of apparatus that is going to make it more competitive. >> it couldn't look more dumber than gopro on your head. >> we don't know, bk. we don't know are we buying the hardware or the social media aspect? >> buying the social media. >> it wouldn't make sense -- >> that's an even worse problem. because if apple had a camera, it could turn into a social media network. >> what does apple have that is so great right now? [ overlapping dialog ] >> how is the apple tv wo

apple sold over 34,000 iphones every hour, every day of the quar by country. unit sales were very strong in the u.s. up 44%. but the real standout in the quarter was mainland china. there unit sales surged 100% as a man for the new iphone 6 and 6 plus boomed. analysts at piperafterry say mainland china accounted for 21% of apple's revenue in the quarter. of course there are challenges for apple in china, including local rivals who are competing fiercely for customers. but on a conference call with analysts cook didn't sound concerned. >> the local competition was there this quarter and has been there for many many quarters before about the local competition isn't new, i think we did really well there i'm proud of how we're doing. >> apple's stunning iphone results help so farren the blow of another disappointing corner for apple's ipads. apple says it shipped some 21 million ipads a drop of nearly 20% from a year earlier. part of the problem is that consumers don't upgrade their ipads as quickly as their iphones. cook remains confident in the product. he talke

iphone 5. they're state of the art tough and the first time with the big screen. liz: yeah. i love the conversation with people, why did you pick the big one, that's what people talk about. but, john, people are also talking about the china syndrome. for the first time, more iphones sold in china than in the u.s. how will that affect the numbers? >> obviously, probably a positive reaction. again, it depends on what actually comes out, and that's what we look at. the expectations right now at 2.66, yes, higher than analyst estimates, somewhat moderate though. over the last two quarters apple's reported numbers in line with the whisper number. so our community has had its pulse 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

iphone sales doubled. are the only two companies with any kind of sales growth in china. >> it's true. when you look at the potential going forward, if you want to invest in a u.s. domicile company that will actually have the benefit of growth and consumer spending elsewhere this is not a bad bet. >> i still can't get over the scale of some $18 billion in quarterly profit. that is the gdp of yemen. >> that is an important point. this is critical. that is the status point -- the static point analysis. tim cook does not think that way. he thinks flow analysis. i've never seen this with anything in the cfa. there is no equivalent to this ecosystem and juggernaut. if it almost feels monopolistic. >> well said. it is like rockefeller and oil. >> for affairs, foreign policy, all of the international relations people have to adapt to that cell phone, don't they? [laughter] collect you know, sometimes -- >> you know what sometimes the man with the bow tie said to you things you have no idea. >> in china, they asse

the iphone six and the iphone six plus. >> the iphone six plus, higher gross margin. incremental screen size does not seem to be opposite the hundred dollar pricing increase across the skews. it should be a higher gross margin -- gross market product. it seems like demand is two to one, maybe more than that for the six to six plus. you will get a benefit from what was a price increase. we have skews that are priced higher than anything we had before. the lift top line in the profit number. -- that will lift the top line and the profit number. >>6 plus supply in the states was slow to get to markets. some people had to wait for months to get their phone. does that mean supply was allocated to china and that big chinese sales -- what does that mean for you? >> supply was partially allocated to asian markets. you are also seeing quite a bit of chinese nationals lining up in stores in the u.s. and other countries and sending those phones back to china. the demand was stored in that way too. it is hard to say. not have good insight into the demand in china or a lot of the

the iphone 6 sales continue to push the stock higher he says. bender managing director and global communication analyst at credit suites. thank you for being with us. what makes you think, apple that's already returned so much capital to shareholders is going for even bigger slug of it? >> well, a few things i think are worth consid arrive in april 2015. with what we think is about $140 billion of net cash. now, that's more net cash than apple has at that stage than when they first implemented capital return program and that's about $100 billion and excessive now, after the business is fundamentally solid, this company is producing a sustainable $50 billion of precash flow a year. now is the time on the three anniversary, the final year of the capital return program. what we think they'll do is return about $200 billion to shareholders over the subsequent 2.5 years with the major cash return going forward. >> they're really staggering numbers when you think about them. you think sales is one of the way to be moving forward, specifically the ipho

number two iphone 6, iphone 6 plus is not a short term phenomenon. in asia everyone moved away.y moved away and went with competitors because apple didn't have a bigger phone. now they do. they are moving back. that's huge. >> brian, let me ask you something. you have this price target of 143. how do you get there? is there a combination of bigger earnings and a change in the multiple or just the earnings side? >> so we viewed the 16 times multiple on our calendar 15 and added in the net cash per share. i think it's very reasonable. you know, i think apple -- if you look at apple's multiple it contracted 55% sings 2007. this multiple will expand 15 times x cash. i think it's a combination. we have the potential for upside, you know, with apple watch and iphone 6 and then we have the potential for multiple expansion. you have both forces in your favor. >> brian thanks very much for joining us ahead of that release. brian white with $143 price target. let's trade that. karen are you in? >> i'm a long time apple holder. i haven't added around here. i feel like it's a little bit of

a 46% jump in iphone sales. the demand for the iphone has been staggering.e never figured the success of the iphone 6 would be so successful, said cook. uses reported the phone would bend in pockets. others said apple was lagging behind competitors like samsung. apple could now crack the chinese market. 70% increase from this time last year. the only loser appears to be the ipad tablet. demand continues to fall as people moved to cheaper alternatives and existing customers choose not to upgrade. >> nintendo is getting a boost from the weaker yen. profits rise almost 500% to just over $500 million. sales were below forecast for this year of the 3ds. profits jumped by 7% by the end of november, less than had been expected. they opened a new store every day in 2014. yahoo! managed to spin off its stake in alibaba. shares were up 7% in after-hours . trading on tuesday they had been struggling with falling revenues. >> a new card game. >> a card game called exploding kittens. this was the kickstarter campaign and is gotten over 106 000 backers, raising more than

they doubted the ipod, iphone, ipad iphones 4, 5, and 6. the big iphone, doubted china would like the new phones. every single one panned out fabulously. the only times that products ran out of gas was when apple decided to cannibalize its own devices with newer, better products exactly what a tech company is supposed to do. apple, by the way, is merely beginning the assent in china. it only has a handful of stores there, could probably open 1,000 and not meet the demand. what's the reaction this time? they're now doubting the apple watch. and apple ipay. there's a reason why i always tell you not to trade apple, just to own it. and the reason is that too many people have left a huge amount of money on the table because they were worried about the exact same issues i just laid out at the top of this segment when the stock was at 20 when it was at 30 40 50 60 70 80 90. i mentioned each level because that's the honest truth. these inquiries convinced many people to sell the stock, dump it, trade it, just when you should have been owning it. t

record iphone sales help apple. break company records, beat earnings estimates across the board and send the stock on a late-day run. >> dollar drag the strengthening greenback hits the bottom lines of a handful of blue chip companies igniting a steep and sharp sell off. >> conundrum, the central bank begins its two-day meeting, but the decision when to raise interest rates may be getting more complicated. all that and more tonight on "nightly business report" for tuesday january 27th. >>> good evening everyone. as the northeast cleans up from the first big snowstorm of the year another mess was made on wall street as stocks took a tumble today. but we begin with blowout earnings after the closing bell from apple. a huge earnings beat that could help set the tone for a turnaround on wall street tomorrow. apple took in $3.06 per share excludeing certain items far more than $2.60 expected. revenue approached $75 billion anchored by sales of nearly 75 million iphones, far more than expected. along with 21 million ipads

>> they blew away estimates on the iphone. it seems like they really nailed it with the iphone six. people really wanted the bigger phone. samsung kind of beat them in that space, but this is another example of apple coming from behind and sprinting ahead. really trouncing samsung in the larger smart phone space. >> which is what they did not want to get into in the beginning but thank goodness they did. >> for them, yes, my colleague ran some numbers. the size and scope for the profit alone, one of the largest and urban history is really staggering. it was a really incredible quarter for them. the question is obviously what comes next. >> i hate to be a debbie downer but i will point out a number which is not great for apple, which is ipad sales, down 18%. mac sales surprisingly, were up 15% in that quarter. what is going on with the eyes had. >> going back to the iphone six. it is like a mini ipad. this is in another sense. >> are they cannibalizing it? >> it is not beyond apple to do so. they did it with the iphone, the ipod. we are not even talking about the ipod anymore which,

75 million iphones.ate 69. average selling price bucking the trend. switching from android, hard to find much wrong with the quarter. >> people say if it doesn't take out 119, november high it's going to be a fail tock. let say, don't trade it own. this is a mesmerizing quarter. i think what's so important, those who felt this is only an iphone story, maybe one day it will be a worldwide story, this was a fabulous china quarter, they seemed to like the phones different from what steve jobs said they would. they like a big phone. en an i pace quarter. it's a watch quarter. he said i can't live without. his credibility's the highest of any ceo now. if he says he can't live without the watch, 500 million people have the phone so it syncs, you're giving me the watch for my 60th birthday. >> got it. coming at you. >> that 6th is a long way to say. we're ignoring next week. >> before the launch. but you can remember me. >> fun metrics. china revenue up 70%. >> geez. >> four stores there now. they'll have 40 ne

eventually it will happen to iphone, too. >> ed are consumers abandoning the ipad for the larger iphone you have to definitely think that there's some cannibalization going on and, you know, i think the idea that there's -- they're relying too much on this one product. the other thing to note is they're still forging to new markets. china was huge for iphone. >> they're number one now. >> exactly. and a lot of the signups, a lot of the new customers are new to apple. so i think they're getting introduced to the company, to like their product line this way, and i think it's going to take another iteration or two before you start seeing the larger halo effect of those xhu customers coming in and saying i like apple iphone i want to get their laptop some of the other products. it will come in cycles, that's true, but this is the first for a lot of customers, especially abroad especially in china, and i think longer term it will be a positive for sure. >> is it also michael, better for you as a shareholder than if they were putting money into other kinds of products that frankly may not pan

it was their first quarter with iphone 6 and iphone 6 plus sales.hina is becoming increasingly important for apple. we are a year into the partnership with china mobile. apple opened a new store drawing huge crowds and prompting a tweet from ceo tim cook. i spoke with an analyst at creative strategies and bob o'donnell. >> a couple of things about apple with the iphone in china. the chinese market has been very focused on large phones. it was the iphone 6 and 6 plus that triggered this interest. the chinese market is not interested in smaller phones. until apple had an offering, that was one of the issues. in a lot of the emerging upper middle and upper class, they are incredibly brand conscious and apple is a luxury brand. you get the combination of this brand affinity and a phone in the size they are looking for, it makes sense that they are a huge hit. it shows you how the company is moving and adjusting their business worldwide. >> there were thoughts of this being launched with china in mind. i like the exercise. the notion of the chinese chara

it's the iphone, the mac, how sustainable is the iphone specifically?t probably has another year or so left of this big growth. then we'll probably get to more modest growth. then on top of that, down the road, they'll be able to layer on other things like a watch, for example. liz: so that's what you're modeling, in 2016, you'll see a little bit of moderation. you're like the fed. from solid to moderate. when it comes to the iphone. (?) which single product of apple are you looking forward to the most right now? >> well, i mean, the watch is probably the most obviously one. the expectations are low. it will be out in april. that's exciting. it will do things that other smart phones haven't done. i won't get into it. i'll check that out. beyond that, we still believe in this television. we think they'll change the living room. that's probably in 2016. that's something we're excited about. liz: it's not a product, but it's a service. apple pay. what's the potential there? >> pretty big. at the end of the day, they talk about two-thirds of the touchless p

. >> china now the world's biggest market would the apple iphone?e on that after this short break. ♪ >> in the china breakdown will be in particular focus the iphone may have passed the milestone. we know what this milestone is because you've told me and it's china is overtaken the united states as the biggest market. >> in terms of iphone sales this. is the turning point the c.e.o. mentioned a couple of months ago saying china will be the biggest revenue contributor for the company after a very saturated market we've seen in the u.s. again, this report coming out from the financial times citing several analyst, broke out the numbers for us there is aing recent data suggest that iphone demand saw outsized growth in china off the charts, as much as 36% of shipments in the quarter went to the country compared to 22% last year. then in the u.s. 24% of the shipments went to the u.s. this quarter. analyst say the turning point happened once apple signed that deal back in 201 allowing them to cell the iphone in china. and another analyst being quoted sayi

we're talking about an iphone here. the american people when you compare the iphone to the obama phone which just talks and texts. that looks like a huge difference in technology. neil: what i like about you guys, you can take any issue and bring it back to the incompetence of president obama. touche on that. in all seriousness, if i'm apple and i'm hearing this and people will pay mightily -- they don't discount anything. right? >> why should they. neil: if i'm apple jeez, we'll charge $3,500. >> people would be dumb enough to pay. >> she was factoring the cost of the nsa agent that would be hired to monitor that phone. >> that's the salary and pension. neil: just amazing. you guys are carrying this hate into the new year. you're not jumping into this. the new republican-led congress making plans to strike back against the white house's food policies. is 2015 the year we take our twinkies back. michelle obama's lunch program isn't panning out. kids aren't eating it. they're going to reverse it. >> i think 2015, every t

when the iphone 6 was released, it is assembled in chaiina. our trade deficit went up $5 billion and it was almost solely because all of these iphones were coming into the u.s. i would like to see apple invest 1% of its cash sitting around build a factory in the united states help recruit a supply chain of advanced technology products manufacturers into the u.s. to make more of its product for the u.s. market. now i expect apple to make iphones in china for chinese consumers, but they ought to try to do it in the united states. i think we would all be better off. the one thing we're going to need a lot more of in the coming years are those middle skill manufacturing jobs. it is going to take companies like apple to set the bar in the advanced technology products sector. we have imaginative products. we have incredible research and development, but where we're following behind is that advanced technology product manufacturing and apple could lead that back to the united states if it set its mind to it. >> i'm sure people in the front office of

they had a higher customer satisfaction score than the iphones. there wasn't a huge difference, and it was taken before the iphone 6 and 6 plus were announced. still, samsung was up significantly from the year before. >>> and keeping with a theme here. pricing on apple products was known for being up there. but for the price is right contestants, it's a bargain. >> a iphone could cost a pretty penny. first bidder $7500. >> what? >> and pulling the jerk move of bidding a dollar over his competitor. >> the actual retail price was high though. $1,969. higher. >> maybe they have a samsung and weren't aware? i shouldn't make fun of them. >> come on. >>> when we come back a small town police chief in the middle of an investigation after he shot his wife. was it an accident? >>> and here's the reason why a delta flight made an emergency landing. talk about a special delivery. i was so focused on making good food choices, i had no idea that it was damaging the enamel of my teeth. i wanted to fix it i wanted to fix it right away. my dentist recommended pro

they want to hear how iphone 6 sales are compared to iphone 6 plus. why is this significant?i am looking forward to the iphone 6 minus coming up. i would like it if it were the size of a five. steve jobs was a genius. he made it the right size. i think apple had to go bigger. my sense is the six plus is 25%. it's just too big. >> that's the book on the iphone. >> i don't know that that matters except if the six plus was successful, that would impinge on the minis. i guess people are curious about that. my curiosity is the watch. i spent time with one of my engineers last night. we are going to release a watch app as soon as we can. i think it's interesting. i believe in the watch. the iphone is not really a phone. i think the watch will be similar. it will unleash tremendous new opportunities. i don't personally like to wear stuff. people do. it's a good watch and it looks good and it's going to do 95% other interesting stuff. we have figured out how you can sit there on your watch and buy from a watch. the iphone put apps front and center because we spend 80% of our action o

five and now iphone 6 and 6 plus.her analyst quoted as saying there's optimism for china and growth around 200 million more iphones old in -- sold in the china rather than the u.s. you have competition and run in with the government. the latest release of the iphone was delayed for a month after a review process. we got the competition from a lot of mobile phone makers like xiaomi. the most popular in china and they do not even use -- google, android software and the china market as well. >> yvionne mann, thank you. that outlook from hsbc. that is when "on the move" returns. ♪ >> you are back with "on the move." bringing in head of asian strategy. the top stories of what is going on in greece right now. just shy of a majority and could end up with one. what could this mean? >> in terms of eventual outcomes and the european union, we think it is in everybody's best interest on a deal of a new program to be reached. that's the ecb and imf and we think that is the most likely outcome. it is a very low probability of what

it is all, of course, about the iphone and the stock.d mac sales missed estimates. the upcoming iwatch getting mixed reviews. is apple a one trick poen where i? that seems a little harsh on a day that the company made what it made or a day after. u.s. steel soaring right now on the back of its earnings. another big steel company getting ready to report. strong dollar plunging oil, swrobz cuts. the sector suffering headwinds, but is

. >>> running out of room on your iphone or ipad? there's a lawsuit for that. a new class action lawsuit claims that apple is falsely claiming the storage for the devices. they are saying that ios 8 eats into the memory almost a fourth of it. and users cannot add memory cards to apple mobile devices. >>> if for the first time ipad sales may show a decline. about 6 million fewer last year than 2013. analysts say apple is a victim of its own success. the new, larger iphones are eating into ipad sales and other manufacturer's fablets. but don't cry for apple just yet. the stock was up nearly 40% for the year. >>> but apple lost this year in one area to the arch-rival samsung. a survey finds samsung phones had a higher customer satisfaction score than the iphones. there wasn't a huge difference, and the survey was taken by the iphone 6 is 6 plus were announced. still, samsung was up significantly from the year before. >>> and keeping with a theme here. pricing on apple products was known for being up there. but for a couple of price is right contestants, the curren

in 2011, xiaomi took on the iphone.ust like apple, xiaomi surrounds its product announcements with great fanfare. how did xiaomi go so far, so fast? phones are sold only online and not a dime is spent on advertising. that allows xiaomi to undercut competitors on price. can it play outside of china? the company is facing criticism over the similarity to the iphone design. its success in china may not be easy to duplicate on the world stage. venture investors are battling that -- betting it has a big future. >> what is today possibly can announcement mean in china for xiaomi? -- does today's announcement mean in china for xiaomi? a xiaomi investor joins me. hans, what did you think? >> i was very impressed. the phone looks nothing like the iphone 6+. it is very slick. the photo taking quality of the phone is amazing. it is the best phone that xiaomi has ever made. >> when they announced it, xiaomi makes a habit of glomming onto other brands. i think there were other announcements giving credit to the component makers, the

iphone 6 and iphone 6 plus. everybody is putting a massive push on video. whether it is youtube or facebook. how much have you looked into with iphone sales ramping up? >> yeah. that say great question. we have not done that correlation yet. but the bigger screens, more engaging content i think drives better usage. i think facebook will be a big beneficiary of that. we have seen 3 x improvement on video views per day. some of that is bigger iphones and people watching videos on facebook. and that automatic roll is a great way to get people to click on that video and watch that entire video. i think they have done some really smart things. taking advantage of the bigger phone will definitely drive more usage of video and engaging content. >> let me ask you, how much of that video expansion that we are seeing with facebook is youtube and how do you think about youtube for google versus video for facebook? >> yeah. so far we have not seen a lot of ads on facebook video. but i think that in the past, facebook was a driver of video growth to youtube. usually peo