,tampoco estÁn de acuerdo. >> me siento en el mismo nivel con o sin iphone. >> expertos aseguran quein embargo, esta madre asegura que las aplicaciones del iphone tiene mucho que ofrecer al aprendizaje de sus hijos. >> creo que les abre la gente, porque tienen muchas cosas que los mantienen ocupados. >> una de las usuarias de iphone como la prueba que determina su grado de inteligencia, segÚn se llevÓ una sorpresa al saber que tiene un puntaje que la hace mÁs inteligente sÓlo por usar un iphone. >> un telÉfono puede hacerte mÁs inteligente. >> empresa britÁnica determinÓ que los sustraÍdos de iphone eran mÁs inteligentes porque terminaron la prueba de agilidad virtual en pocos segundos, algo que usuarios de otros telÉfonos se tardaron mÁs en hacer. >> vi que traÍas tu iphone para demostrar que eras mÁs inteligente. el brujo dijo que el ganador el ganador del mundial estÁ entre las elecciones espaÑa,holanda, y brasil,no hay que hacer un brujo para determinar eso. dijo,que existe la posibilidad de que vela,hernÁndez, y otros jugadores en europa no asistan al mundial, seÑalÓ las cualida

look at the iphone. the iphone in china is around $800. much, much cheaper in the u.s., $649.ise, surprise, a little bit more pricier here in the u.k. a lot of people think this is a bit of an issue, the pricing issue. emerging markets, china is not alone. you want a low inter-level frice take advantage of those customers. here's the big thing. the average price, 4,000, any price north of that, apple has 50% of that market. that's about $650 u.s. dollars. if you want a luxury phone, a status symbol, you buy the iphone. apple has already committed to the premium end of the pricing with the apple 5c and with the apple iphone5 as well. perhaps this is the story over the next five years. it's not about taking advantage of this large-scale market, but taking advantage of those middle classes, the richest people, gaining a little bit more money, a little bit more disposable income >> yeah, following versus value will be interesting. john, thank you very much indeed. that's apple's expansion in china. >> here is what else is on our radar. google is diversifying into the contact lense

>> the disappointing iphone sales. apple sold 51 million iphones in the first quarter where wall street expected around 54 million to be sold. that means apple is dealing with saturation at the high end of the market. the amount of iphones sold in the first quarter fell short of street consensus so while the overall earnings and revenue numbers beat estimates, it's the iphone and ipad sales that worry the street. that's why we're looking at shares down after hours. tyler? >> all right, seema mody thank you very much. >>> up and down session on wall street despite brief flurries and not snow, the majors extended last week's losses. investors were chilled by a 7% declining and the currencies and economies with several emerging market countries and the fed meeting that begins tomorrow. taper talk didn't cheer the markets very much today, either. the dow down 41 points, the nasdaq was off 44 with the tech sector weighing on the index and s&p lost eight. >>> the biggest gainer in today's losing session for the dow was cater

the iphone is only 4 inches.ry other device that china mobile sells is alarminger than hat and most are larger -- larger than that. most are 5 inches. when tim cook appeared at the store today, he took some questions from commerce. the first question he got from a customer is will apple release a large screen device and tim cook said they don't like to talk about their future projects. >> interesting. thank you so much. he also autographed some of them. our technology reporter from beijing. here are some other companies we're watching out for today. google is diversifying into contact lenses. smart ones. it is testing lenses that measure glucose levels in tears. the project is part of google's secretive lab and couldard the challenge s of diabetes. nokia is looking to replace their former c.e.o. michael elop. nintendo revised their forecast. we'll have more. keep it right here on "on the move." ♪ >> welcome back to "on the move ." i am francine lacqua at bloomberg european headquarters in london. we are 30 minute

iphone with real physical keyboard?new typo keyboard, this device attaches to your iphone, i'm holding it here. it gives you the qwerty keyboard, the tactile one, very much like the blackberry and your iphone just slips right into this thing? this is so cool, right? preorders already sold out. while consumers may be happy, blackberry is slapping the company with a lawsuit saying this is our proprietary information. they claim patent infringement. joining us the cofounder and ceo of typo. welcome. this is fascinating because i was at ces. there was a lot of buzz about your product yet blackberry says we're going to see you. can they impede what you're doing here? >> no, i don't think so. we started this two years ago and we did our research and we looked at all the patents out there and we don't believe we violated any of blackberry's patents and we'll vigorously defend this. liz: ryan seacrest will vigorously defend it along with you because he is a cofounder, right? let me show people. this comes in two pieces. this go

you have got apple, iphone. they sold 9 million iphones. sold galaxy. the top and is being saturated to a certain extent. you have the cheaper and also. lenovo also offering smartphones at cheap prices of less than $100. you have to eat away at those. the biggest area of revenue is about six percent of revenue. they have tv units. that is going to slow down. the only area of growth is shipped. vestors were expecting this. >> absolutely. we look at the share prices. we were all feasting on turkey and christmas festivities it dropped almost 60%. that is the entire soitalization all combined, it is a juggernaut of the company. investors have been worried about her office. incentivizeing to employees. profits.hat ate into >> we are in trouble, but we are innovating. what is samsung saying? >> the chairman is saying innovate, innovate. south korea's richest man controls samsung. he says we have got to change again. .e need to lead they are showing us this. the consumer electronics show on in las vegas. also they are pushing into new smartphones. necessity of

new iphone five screen $110.phone five c, five s from $150 to $195, however, if you fix at one of the shops, apple will void your iphone warranty. >> you went to a third party we're no longer associated with your phone. >> apple would not tell us about it's repair services so we went with megan. technicians told us the stores do not repair iphone 4 or 4 s but for $199, they'll give you a refurbished one and will replace screens on 5 or 5 c for $149 or $79 if you have the warranty. samsung galaxy phones cost more to repair, $150 for the galaxy s three, $190 for the s four. brian says don't use the cheapest. >> if it costs a little more, let's say $60 versus $30, parts will be better. >> bringing us back to andy. he charged 69ss today fix this iphone four s and then... the test. >> and everything is working. >> just like new. >> only a few shops are doing repairs right now on newest iphones apple would not yet repair iphone five s. however it should have it available, soon. bottom line, buy a good case. >> there yo

the iphone hits the stores of the biggest care yet -- carrier. president obama announcing how to deal with concerns and spots from edwardl uproar snowden. the nba returns to london. we hit the court that the most expensive team in basketball history. hello. good morning. welcome to "countdown." bloomberg reporters are standing by to deliver the stories to drive your day. zeb eckert is covering the launch of the iphone in china and manus cranny looking forward to president obama's nsa announcement. ferro with more on pc sales. ryan chilcote is lacing up his hightops. he has the story on the nba push them to london. if only "countdown," causing a stir coming to the u.k. today. an inside look at "the wolf of wall street" with film expert simon thompson on "in the know." after six years of negotiations for apple, let's go to zeb eckert in hong kong. chief executive tim cook is in beijing for the launch. how important is this market for apple? >> good morning to you, mark. it's especially important for apple. this is the largest mobile market in the m

new iphone five screen $110.airs for iphone five c, five s from $150 to $195, however, if you fix at one of the shops, apple will void your iphone warranty. >> you went to a third party we're no longer associated with your phone. >> apple would not tell us about it's repair services so we went with megan. technicians told us the stores do not repair iphone 4 or 4 s but for $199, they'll give you a refurbished one and will replace screens on 5 or 5 c for $149 or $79 if you have the warranty. samsung galaxy phones cost more to repair, $150 for the galaxy s three, $190 for the s four. brian says don't use the cheapest. >> if it costs a little more, let's say $60 versus $30, parts will be better. >> bringing us back to andy. he charged 69ss today fix this iphone four s and then... the test. >> and everything is working. >> just like new. >> only a few shops are doing repairs right now on newest iphones apple would not yet repair iphone five s. however it should have it available, soon. bottom line, buy a good case. >

iphones drive the stock.ht want to rethink the new strategy, tom? not working so well today, their lowered guidance that is? >> yeah. sure the guidance there is nothing wrong with the way that they're giving guidance. i think the marquardter as someone indicated before will be stronger than it should be because of the china mobile agreement. the question is, what are they going to do late they are year? refinements they will make to the smartphone to hopefully result in some higher unit sales? cheryl: you know, mark, i'm looking at the, again, ipad revenues for the first quarter, $11.5 billion, certainly, mark, that is good to see. many are forecasting and discussing for the future we'll get ipad pro. the concern the ipad, they're going to eat into the margins of each product. do you think that is concern with revenue we are seeing revenue for ipad in the first quarter no. >> not necessarily. i do think i think as phone screen sizes increase, that could be a concern latter half of the year. rumor that the iph

are talking about iphones at the low end. what about the idea of a bigger iphone if they come out with it, will it be enough to keep the momentum going or back to where it was? or does apple need new product categories which we have not seen since the ipad? amazing thing with this company. i was talking earlier today, this is a company that invented the macintosh, invented the iphone, the ipad, to expect something else that amazing or that big, it is really hard to conceive of. we know they are talking about tvs and potentially a wearable device. that might be a controller for the phone. we will not know. it is hard to imagine anything moving the needle. people are reassessing what apple could be. maybe it is not this massive growth engine. maybe it is more about managing margins and managing a steady growth and replacement sykesville -- replacement cycle. a we have been talking about connected tv. it has not happened. samsung has a connected watch, they do have a connected home amp. they have smart appliances. google is buyi

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. >> could your iphone be used for spying? what apple has to say about that. >> but first, a look at what is expected to be certified as the world's largest fireworks display ringing in the new year in dubai. this video. a suspected serial robber --- caught ou, our building a few days ago. >>> you might remember seeing this video. a serial robber caught outside our building a few days ago. kpix5 learned more about that guy today. >> bail was set at $2 million and the arraignment for suspected bank robber was continued to thursday. so he did not appear in court today. but you may have already seen him on kpix5 television. being chased by undercover in uniform police officers who caught up to him directly in front of the kpix television building. it was all captured on video. >> kpix was on this from the very beginning as was the san francisco police department officers on scene who made an arrest on scene. >> for a bank robbery suspect, trying to avoid identification and arrest, this was a bad place to end up. not only did the

> the nsa using iphones to do its spying. the program that might be giving the government total access to the smartphone. have given us a couple of gd photos of a bank robber. t'e searching for this man. he was wearing a black baseball cap and hooded sweatshirt >>> gilroy police have given us photos of a bank robbery. they are searching for this man wearing a black baseball cap, hooded sweatshirt when he robbed a union bank in gilroy yesterday afternoon. he handed a note to the teller demanding money. he is described as a white man in his mid-20s. >>> a nasty strain of the flu has returned to california and elsewhere in the country. as kpix 5's betty yu reports, the people most at risk are the ones you would least expect. >>> reporter: the number of patients showing up at bay area hospitals including this kaiser permanente in san jose with flu- like symptoms has jumped in just the last week. and most of them are suffering from the swine flu. the nasty virus known as swine flu outbreak h1n1 is making a comeback. the same swine

already hadbers iphones. most of them are prepaid. they're not likely to be iphone customers.ss, it will be interesting to see what fraction -- traction they got. it will also be interesting to look at the ipad business. that did not grow at all year-over-year in the last order. we might expect some growth with a new device as well. i will be an interesting one to see. >> brian, what are you seeing. let's start with china. what are you staying in terms of numbers? now the iphone is officially available through china mobile. >> this will be something that ramps over time. remember that they have 35 to 40 million iphone users on the china mobile network. they are primarily using two g. million iphone4 users could be sold into this year. i will be a process. a bigger iphone will be important. we will see that the second half of the year. >> you are figuring what percentage prepaid? prepaidwas one percent and 15% postpaid gives you 22.5 million sold. >> it is about that. the most important point is they have a massive base. however they got there, whether prepaid or postpaid, they

iphone sales a bit weaker, mac and ipad sales stronger. quarter, estimates for revenue are coming up that light compared to estimates. analysts estimated over 46 billion, so a little light on second-quarter revenue. this would include china mobile. apple selling its iphone through china mobile. that's why the revenue is reticular important. other headline news -- apple decided to declare a dividend of $3.05 a share. beating on the top and bottom line for the fourth quarter. second-quarter estimates coming in a bit light and iphone sales a bit light. >> way to go, alix steel. >> we heard so much about retailers really struggling and the question was would apple see some of the same? >> best buy, limited brands and on and on. light here -- you saw the sales numbers. >> a little bit light. the gross margins are up so the revenue is a little higher. >> we should introduce our panel. >> boy genius, if you don't that isim on twitter -- jonathan geller. he knows everything about apple. as well as 15 or and. and our very own cory johnson. >> what

the china mobile chairman said now i'm going to switch to an iphone. tim cook apparently had given him his own iphone that was made for china mobile. it was in the gold color because that's popular here in china. overall, there is so much excitement over the release of china mobile which will be in stores on friday. >> it's a watershed day for apple. it's a huge announcement. i am so honored to be doing business with chairman xi and china mobile. they have the largest network. we're incredibly impressed with them. we have deep respect for them and have had from the very first discussion that we've had together. we see this as bringing the world's best smartphone to the very largest and now the fastest network in china. >> now, this is a dole that both companies have been working on for quite some time because you could see how both of them would benefit. china mobile on the one hand and trying to really reshape itself and it changes its reputation from a company that's known more for voice instead of data. now it's built out a big data network, 4g. it'

the iphone is so expensive.ver $800 for the iphone 5s. $730 for the iphone 5s. . >> template will tell you that it is not the cheaper one. it is just a different one. -- tim cook will tell you that it is not the cheaper one. it is just a different one. because this summer in a $300 range. there's a significant difference between apple any competition. >> shall me makes phones that iook like iphones stop -- xiaom makes phones that looks like iphones. i spoke with the head of baidu about screen size. the robin leave that the chinese people want bigger screens. >> not just chinese people. lee spoke to robin specifically about apple and this is what he had to say. inthey have experienced here the u.s., but in china, the chinese characters are very different from english. you need a bigger screen to do that. apple does not allow good search engines to be uploaded on the app store. >> i did not realize that part about chinese characters and the difficulty of the language very are. best barrier. >> it is a closed syste

>> 15 million iphones are not enough. apple shown -- shares plunge after hours avenue -- as estimates ms.. -- miss. setting aside more than 3 billion pounds for legal costs. >> from your's biggest nehring the money, -- from europe's biggest engineering company, breaking right now. >> welcome to "countdown." i am mark barton. >> is 6:00 a.m. this tuesday morning. in berlin, hans nichols will give you numbers from the -- breaking. >> digging into apple's disappointing earnings as well as looking at the ikea earnings report. focusing on the turnaround out -- effort at rbs. >> we have a couple of big interviews this morning on "countdown." , someone fromes unilever. >> chief executive stephen stonehill will be joining us. -- ind us that in u.k. october that u.k. is far from a housing bubble. the biggest making of -- maker of lighting equipment, philip. it looks like there beating earnings reports. that is including -- excluding items for the fourth quarter. 915 million euros. analysts were expecting 874 million euros. they we

i think we'll see a great iphone quarter with average sell price per unit but the iphone 5c was just could discount. the denominator is shrinking because they have less than 900 million outstanding shares now and that number is falling with the buyback. >> just want to point out here when it comes to apple beat great expectations. some analysts have caught on to this. collin gilles actually said it's priced in the stock. shares have run up 37% since april when he put a buy on apple. he just downgraded the stock. he said you have to have pretty good news to keep the momentum going. you wonder how much is already baked in. >> tim, what do you think about that? >> well i think call it 12.5 times earnings i have a hard time thinking too much is baked into the price. certainly expectations are all over the place, but, sure give me 12.5 times a company that has revenue growth and such a strong product lineup. i have a hard time taking that as priced for perfection. >> but tim, looking forward, how many sales do you have in your model or how many do you estimate relating to the china mobile

there will be going to a bigger screen iphone in the fall.ne of the product categories they are going to talk about on the conference call tonight. they said they are going to that. i think the stock will go based on that. go ahead. that aconfident are you bigger screen iphone is coming out this fall? >> well, you are starting to hear some of the feedback from asia and the build. there is a 75% chance that is going to happen. second, if you go back and look at the iphone are the last seven years, they come back with larger form factors and different form factors. this is going to be at different cycle. a, whater wildcard is are the other product categories they're talking about? >> is this too little too late? >> we have been here before. be a chance that they are taking a step back. if you look at the iphone 5 release, or other times this year when the stock was really going, and people were feeling they lost touch. it is easy to get that perspective on a day like today. alternately, the question is are they going after the write markets? --

. >>> is the nsa using your iphone to spy on you? the secret back door reveeld. >>> the big mistake that could make your 49ers playoff tickets worthless. ,,,,,,,, plunged into the water near toma >>> one man is dead and another injured after the car they were in plunged into the water tonight. witness reported seeing the car driving erratically and weaving along the road. the car crashed near the intersection of highway 1 at marshall petaluma road. crews had a difficult time getting to one out of the passengers who was trapped inside. >> the water here is shallow water but also very cold. with the vehicle upside down and having to make entry into that water makes it very challenging. >> the names of the two men inside the car have not yet been released. the cause is under investigation. >>> the national security agency was using iphones as a surveillance device, apple said today it didn't know about it. sharon chin on the program that could reportedly give the government complete access to the popular smart phone. >> imagine your i f

market share of the iphone is relatively small. -- the iphone, even though the market share of the iphones owing to the small. >> yes, a lot people are using it. -- theence of the guys unsubsidized cost is more than $700. that is more than the average chinese person's monthly salary. people in china are saying we want larger screens. why will they pay that much money for a product that isn't even what they want? lothe reality is that a people in asia -- obviously china is part of this -- do want bigger screens. the product is kind of between a -- the crossablet between a phone and a tablet, not my word. the phablet is tremendously popular in china. and it is popular throughout all of south asia. >> but doesn't samsung galaxy kind of look like a phablet? >> it does. it looks like a tablet. >> there aren't a lot of things by samsung that look like apple products. samsung went one step further than apple with these larger screens. sam song unquestionably does a google job with the hardware. where they haven't yet shown the same level of competence and talent has been on the software and the

the iphone 6 launches. it doesn't appear apple has that much sapphire for the displays. but paul demenza, from a market research firm, says gt advanced technologies does have new manufacturing technologies that could lower the cost of manufacturing sapphire which would allow for greater production to cover all those iphone displays. >> it's conceivable if the process ramps up, and that's a big if because it's a new manufacturing technology. but if it did ramp up, you could get to large numbers and then they would have complete access to that. >> reporter: apple could also keep using sapphire to cover smaller areas of its devices as it does now. such as the camera lens on the iphone 5. there's also speculation that apple could expand into the jewelry business and use sapphire glass for an iwatch. at the end of the day, the real appeal of sapphire glass is that it's a better material. using the gem makes apple's products that much more distinctive from its rivals and would remind consumers and investors that

. >>> is the nsa using your iphone to spy on you? the secret back door reveeld.he secret back door reveeld. >>> the big mistake that could,, to thoseworried...ited... poked and prodded... taken risks... and lived in a state of "what if?"... welcome to a new state... of health. welcome to covered california. the place to find quality, affordable coverage. financial help for those in need. and nobody can be denied because of a pre-existing condition. enroll now at coveredca.com. outbreak in over a decade. flu before the first sneeze... help protect with a spray. before the first tissue... help defend with a wipe. and help prevent with lysol. to get 10x more protection... and kill 99.9% of germs around the house. this season, help protect your family with lysol. start healthing plunged into the water near toma >>> one man is dead and another injured after the car they were in plunged into the water tonight. witness reported seeing the car driving erratically and weaving along the road. the car crashed near the intersection of highway 1 at marshall petaluma road. cre

people are buying more iphones and ipads.e are joined with what he expects and he joins us from dubai. mean that apple will have a great time? >> i think it is an indication that they will have a better time. if you look at how the iphone is being received, it is better than expected. the ipad air is also popular. you have china mobile, the first time you can sell the iphone legally in china and that will add to the numbers. we will see 55 million units and i am looking around 57 million units. fascinating and the numbers are good, potentially getting better. over the last few quarters, it has been lack of innovation. any improvement? >> i do not think so. they are not going to talk about soon.oducts anytime that story is not going anywhere. apple for the next two or five years, the biggest issue is the lack of services that they have. realize that what they are good at is distributing services and content. what they are also good at is the hardware side. they went to invest. that is a great asset and apple needs to leverage

xi, you now use an iphone? >> translator: good question, i used a cell phone of other brands, but now i switched ton an iphone. i'm thankful to tim cook, this morning he gave me one of the first iphones made for china mobile. and it's gold. >> china mobile's chairman said the company had millions of preorders, even though the pricing of the phones is slightly higher than the company's rivals. for nightly business report, i'm eunice in beijing. >>> lawmakering took a big step towards passing a federal spending bill. the house passed the more than $1 trillion bipartisan bill that will fund the government through the end of september. that bill will go to the senate where it's expected to pass as soon as thursday. >>> the economic outlook is positive and the u.s. economy continued to growed a a moderate pace, that's the message from the federal reserve's late earth beige book survey of conditions around the nation over the past six weeks. now some regions reported a pick-up in growth thanks to more consumer spendi

the iphone. it is so expensive. $870. $730.e iphone for the 5c. that'll supposedly the cheaper one. >> do not tell tim cook. he said it was pulled to the different one. we see this and the prices. consider how that compares to the competition that apple has to face. unsubsidized cost for xiaomi is $300. significant difference. >> xiamoi makes phones that look like iphones. for a lot less money. >> the ceo models himself off steven jobs. >> i spoke to the ceo of baidu about this. robin li said chinese people want bigger screens. samsung and other companies offer this. i spoke with robin li about apple. listen to what he hasto say. >> apple has experience in the u.s., but in china, the chinese characters are very different from english. you need an input engine method. apple does not have a good one. they did not allow it to be uploaded. >> that was interesting. i did not realize that about chinese characters. >> apple is such a closed system that it is hard for them to adapt to different market sometimes. -- different markets sometimes. >> when it

makes phones that look like iphones. models himself stuff off steven jobs. >> ice up with the ceo of baidu about this. robin said chinese people want a bigger screens. some sun and other companies offer this. aboute with robin li apple. listen to what he have to say. >> apple has experience in the chineset in china, the characters are very different from english. you did a input engine map that. apple does not have a good one. they did not allow it to be uploaded. >> that was interested. i did not realize that about chinese characters. >> apple is a closed system. it is hard for them to adapt to different markets. >> when it comes to the competition, there is some song which is the leader. apple has a lot of companies. -- and their samsung which is the leader. -- apple has a lot of competition. there is xiaomi. they are doing better than apple. >> a lot going on. we have the coo of huawei from sans as -- us francisco. you are pulling back on your core business and in the united states. i believe when you are taught frenc

the nsa can control iphones using software in every iphone.can steal messages, harvest contact information and secretly record audio. >> supposedly they placed an application inside the iphone during its assembly and configuration. and that program then allows them to access the phone. >> the iphone reportedly is an easy target for nsa hackers because apple maintains consistency in its products. tech experts say apple now would have to come up with a patch to prevent iphones from being used for surveillance. the nsa program reportedly works better in iphones than android phones. >>> the new year gives you a chance to start over and as kpix 5's cate caugiran shows us, whether you want to quit smoking or shed pounds, you can bet there's an app to help you stay on track. >>> reporter: the first day of 2014 means out with the old and in with the new -- resolutions. >> try to be a better person. >> stop drinking. >> travel more with my girlfriend. >> health for me and my family. >> reporter: according to a recent harris poll, there were some resolu

jonathan ferro has more. >> it is all about the iphone. record iphone sales but they disappoint.xpecting just at 55 million 51 million.at a significant part of the? apple's market share is declining. large screens, low prices and that is where the trend is. the other side of this story are the forecasts apple released last night. revenue for this current quarter, even with the tieup could well decline for the first time since 2003. >> this could be the quarter that we're in could be the first quarter of sales drops that we'll see apple report since 2003. let's talk about what this means in terms of product category. does this come down a lack of new products from the business? >> yeah. the discussion comes back to exactly that. apple hasn't released a new product since 2010. no new product since steve jobs. people will come back to this issue, a lack of innovation. maybe a push into mobile payments. something tim cook says increegs him. sensor has been uilt in. how global apple is. you see how this is impact european markets. the likes of arm and dialogue, you see them down in ea

their only offering this for iphone 5 and iphone 5 c. not iphone 4 is or iphone 5 desperate. here's my advice is to have a correct screen and to verify correct that com. it's like a aaa for your ride device. it's a web based repair service in their headquarters is in redwood they fix all iphones models. on average a cracked seen at cost $100 or less. so most cases is cheaper than going to apple. and the best part is they come to view your home or work ethics the screen right there for you. their average replaced time is 30 minutes. >>darya: it's like the windshield of the guys. >>james:electric car drivers in silicon valley are experiencing "charge rage." with the increasing number of electric cars.many are finding it hard to find an open charger. the installation of charging ports at some companies has not kept up with demand. cars are getting unplugged while charging, creating animosity between employees. companies are supposed to have one charging port for every two electric vehicles. watching wall street this morning, futures point to a higher opening after a long weekend

apple sold 51 million iphones, an all-time quarterly record. but again, not good enough for analysts who had thought apple would sell about 54 million iphones. on the conference call, talking about the iphone business, apple's ceo tim cook saying business was strong in the emerging markets and in china, but in north america, business actually contracting. cook pinning at least part of that blame on carriers which changed their upgrade policies, restricting customers who were used to upgrading earlier. josh lipton, cnbc, silicone valley. >> and we'll be talking about apple a little later on in the program, as well. meanwhi meanwhile, the u.s. government has reached an agreement with internet firms regarding how often they have to turn over data. companies will have to wait six months before releasing information about data requests. and the disclosures will be in very general terms. meanwhile, google glass is about to get more stylish, but also more practical. the firm is adding prescription frames and new detachable sunglasses. the framed will

they are suing a company that is making a snap on keyboard for the iphone 5 and the iphone 5s.y this infringes on their design on the copyright they have with the blackberry. the problem is, is it going to be enough? >> i will be the devil's advocate. theurveyed analyst on stock, and only 43 think you should buy blackberry. , since theers ,ntroduction of the iphone 3 have migrated to apple or android. android has 80% of the market. you look at governments, yes. blackberry is very difficult to crack. are in the u.s. government or defense, it is the only device you are ok there. corporations, john chen was talking about how they want to go back after corporations and move away from consumers. corporations are made up of employees and they have their own phones. they have been saying, i want an iphone. >> post nsa, do you think -- people are becoming increasingly security conscious. this is something that was a headline banner, this stuff is trying to cells -- trying to sell to the banks. >> blackberry people will tell you that it is too late. companies have been watching the demi

verizon's iphone, in the first year, iphone penetration was 13%.e the iphone postpaid -- in the customers will get about 15%, that is a big deal. >> bill harris with us. apps, a huge deal now. they are germane to earnings. >> absolutely. mobile apps have taken over from websites. at my own company, we are getting already 80% of usage on mobile as opposed to web. are puttingyou bloomberg west together, do you ever mention app revenue? >> they do not give a specific number for apps, they fold it into another unit. apple does not tell us a whole lot. they give us information about units sold and revenues for all the different groups of products. they do not give us profitability for all those products. we are kind of left to guess the gross margin number, somewhat of a mystery. had the biggest inventory of a iphones ever going into this quarter. i expect that is because they were preparing for the china mobile launch. >> china mobile, iphones, is 5c, not the not the lower-cost phone. phoneo not have the cheap but that was the whole reasoning behind th

they sold about 850,000 iphones and ipads per day last quarter. me, i think that's a tremendously high number. so i think they're in great positions and think they're doing what they do best which is making millions of these devices and millions of consumers happy. stuart: you depend on them, don't you? you want those screens to crack so you can take them in and fix them, that is true, isn't it? >> yes it is. we also buy used iphones and ipads and our i-techs travel to the customers and give them prepaid credit card on the spot for those devices, give me idea how your business expanded, tell me? >> two years ago we started i-technet work where essentially technicians going to our customers. we have 430 of them. we're adding anywhere 50 and 70 new people to our company every month. we're looking breaking 500 i-techs in 11 countries by the end of february. stuart: do you service samsung galaxy phones or strictly apple products? >> we're intently looking on samsung and galaxy but right now only iphones, ipods and ipads. stuart: you must be salivating

. >>> remember that moment, steve jobs announcing the first iphone seven years ago today.has changed a lot of lives. >> i had no knowledge, >>> one of the early contenders for the republican presidential candidate is undergoing an investigation. as eric swan reports, christie also apologized repeatedly today for the major traffic problems on the george washington bridge. >> i had no knowledge, or involvement in this issue, in its planning or its execution. and i am stunned. >> reporter: new jersey governor chris christie says he is heartbroken, outraged and was blind sided. the closings created gridlock for several days. the governor says he knew nothing about the plan but takes full responsibility. >> i am sad to report to the people of new jersey that we fell short. >> reporter: e-mails show the former christie aid, former aid did it to punish solcoli. >> i take him for his word. which he had nothing to do with it. >> reporter: another official who was involved in the e- mails, david wildstein pled the fifth during an investigation. >> reporter: meanwhile the white house

are you just looking at your iphone? what does it say? >> it says it is an iphone five s. the unit sales were 51 million. they were up over the previous year. >> i'm sorry. what is the difference really? comparing something in the three-month. with a three-month. the year earlier. come on. 51 million things? and they are expensive things. they do a lot of stuff. 50 million. that is a big number, isn't it? >> rather than saying good or bad. let's talk about the growth rate. it was six percent. six percent is not a spectacularly growing business. there was a 14% increase in the number of ipads sold. there may be a more dramatically different i pad. people can get their hands around and tie. at least i can. >> and then there is the cable industry. the size of the screen dictates the players. right now you don't see the cable people, except for time warner cable, go into this. you can only get the super bowl on the fox ipad app. how is cable responding to what cory johnson is saying? >> cable is aware of what is happening. the execution on doing something about it has not been

they sold 51 million iphones. it came short of estimates.nster has been covering apple since 1995. apple broke records in many ways with this quarter. yet the stock is trading down. what is your take here? >> the take is that this is a time when investors asked themselves a question about the trade-off between revenue growth and profitability. apple, back in september, made the bet that they going to focus on making more profits. gross margins have shown a nice improvement rebound. that came at a cost to unit growth. that is been disappointing. my take is this. i think this will dominate the stock, this debate. i think once you get beyond that, investors have a sense and tend to get excited about apple products. there will be going to a bigger screen iphone in the fall. that is one of the product categories they are going to talk about on the conference call tonight. they said they are going to that. i think the stock will go based on that. go ahead. >> how confident are you that a bigger screen iphone is coming out this fall? >> well, you a

the main reason is the iphone experience so far, the 40 million or so iphone customers they have can'tlly use the main data network. they're using wi-fi. so china mobile has quite good data traffic, but they're selling wi-fi at a 90% discount to cellular traffic and wi-fi represents the highest of my major operator globally. our view is they should be able to monetize the existing customer base with these better hand sets. >> how much do you think they have to subsidize the iphone by? >> ballpark, on let's say the numbers you showed on a 5800 or 6 of,000 renminbi device, probably around 2,000 renminbi. the subsidy is usually equivalent to 8 to 10 months of service revenue. it is a hit. china mobile still has the bulk of high end customers. this is a very strong brand. we think the top 100 million or so china mobile customers can afford to pay 5,000 renminbi for a hand set. >> thanks for that. still to come, we'll sxeek exclusively to one of the authors of the explosive hsbc report. second hour of "worldwide exchange," coming up. other analyst ves told cnbc to take a more cautious view.