and 68.1% of revenues were from the iphone alone. the second-biggest product they have ever had. 68% of revenues coming from that single product. it is so successful that even the success of the other categories can't come close to the success of the iphone. scarlet: we are getting some other headlines from apple. the company is seeing softness in china, especially in hong kong, according to the cfo in an interview. we will get the highlights from that interview at emily chang just a little bit later, but i think it is interesting. just as there are flaws of the idea that you look to oil prices at an indicator for the strength of the global economy, it seems like people are watching t apple as a comment on china's economy and i don't think that's right. joe: that's absolutely right. it goes both ways. people want to look at china to see about apple, but everyone is so curious about china without apple that i think his comments of particular softness in hong kong, a consumer company that has done well, it doesn't add much confidence.

decades,irst time in iphone is forecasting a decline, the market for iphones may be peaking. different economic environment around the world, seeing softness in hong kong, a big part of their china business. take a look at what tim cook had to say moments ago. : we are seeing extreme conditions everywhere we look. major markets including brazil, russia, japan, turkey, southeast asia, and the eurozone have been having weakening currencies, falling commodity prices. question to ask, hasn't reached the limits? we have it all down, including our, editor-not-large, cory johnson. cory johnson, i will start with you. take it down. what do you see. cory: the numbers are solid for apple. iphones theyst have ever sold, the most watches. corey: this is a tech stock. it is supposed to show big growth. the bottom line, in the real world, it should reflect actual growth. but look at this? 1% growth compared to 50% one year ago. that kind of change shows it is not growing anymore. it is hard for stock to show a the rest ison when negative. >> you are facing the worst conditions. even in 200

will an iphone 7 be that much different than an iphone 6s given that the screen has already gotten biggerobably modestly different. one of the things they could do is potentially remove the home button and use things like ultra sound to do some of the biometrics so there is some technology that could allow a slightly bigger screen inside he same form factor. the substance will probably look a lot like the iphone 6 plus and 6s plus. the big trend investors should take some safety in is the pace at which people are buying iphones is speeding up. they're buying iphones more on subscription at least in the u.s. and apple says they'll export that program to outside the u.s. if that happens, that should speed up the pace and create a several-year tail wind to the iphone starting december 16. emily: now, gene, you and i have talked about this over the years, but this is still an iphone company. 66% of revenue comes from the iphone. at what point do you see a significant diversification in revenue where the revenue, a significant portion of revenue is coming from another product? how many more ye

consumers are still have positive on the iphone. where the iphone lacks is in affordability but quality and status symbol, far and away the leader, where it ranks fourth in terms of affordability. it's more expensive. but we see the higher level numbers on confidence coming down, that's when you would be more worried about the demand. but to your point, the key in china longer term, several quarters out is growing the pie, the middle class pie and making incomes higher so more people can afford it. >> people are holding their breath waiting for this apple report to come out an hour from now. it could have a big impact on the the market given apple's influence. based on what you're finding on the ground in china, do you think things are tough for apple or not? >> overall in china, the numbers -- it doesn't show significant slowing in momentum towards customer sentiment towards apple and apple products. based on our survey results we don't see any reason for tim cook to be less optimistic now than last quarter. >> thank you for now. >

>> i don't think we're at peak iphone but we might be at peak iphone growth.two different things. don't think it goes out the way apple and ibm. growth in other markets like china where growth is growing in other areas -- >> was a miss. >> we're getting some of the numbers here. jo, what are you seeing? >> we're getting in numbers for first quarter for apple. revenue coming in at $75.9 billion. eps coming in at 3.23 cents a share. which would be a beat and then a miss on revenue. melissa: jo, hang on. let me go to adam shapiro. he has numbers on the floor of the new york stock exchange. i heard you saying them. reporter: they were down one% before these numbers came out. where are we going right now in the post-market? they're actually gone higher. so wall street doesn't seem to be too upset by this they're trading higher after these numbers come out. but again revenue was 75.9 billion on earnings per share of $3.28. it was beat on earnings per share. the revenue number is a miss. now we've got to dive in to see what the iphone sales were at. melissa: scott ma

watch is iphone sales. for the first time in a decade apple is forecasting a sales decline adding to evidence the market for smartphones may be peaking. the company is feeling the effects of a different economic environment around the world and is beginning to see softness in hong kong, a big part of the china business. take a look at what tim cook at the saying. im cook: we are seeing extreme conditions everywhere we look. have been impacted by slowing economic growth, slow income commodity prices and weakening currencies. emily: has apple reach the limit of the growth potential of the iphone? analystus, and apple ives.aniel live the numbers are just monstrous. yet this negativity. what do you see. numbers are very profitable. i think this is a growth stock. it is supposed to show big growth. the bottom line in the tech reflect actuald growth. look at this. revenueh in iphones year-over-year compared to 57% a year ago. that change shows a company that is a growing anymore. slowing andtself is about to turn

he told me that the iphone franchise is strong with record numbers of android switchers. 60% of iphonesers still on older models. big opportunities long-term in emerging markets and big products in the pipeline. back to you. >> thank you for that. josh lipton we'll continue in a moment but first breaking news on fiat chrysler. phil is in chicago. >> fiat chrysler announced earnings this morning and on the conference call it was expected that the ceo of fiat chrysler would outline production plans of how they're shifting in the united states. this is a big deal. they'll be building more jeeps and more of their plans. why? they have raised their guidance for sales of jeeps by 2018 globally to hit 2 million vehicles annually. to give you some context on that back in 2009 they sold just a quarter million jeeps globally in 2009. they're up to 1.3 million. they expect that to grow by 60% in 2018 and summarizing why there's bigger demand, low gas prices now seen as permanent condition. so there you have it. that's why jeep production is being expanded. guys back to you. >> busy day for you ph

rishaad: i guess we have to wait for the next iphone, the next iteration. the iphone 7. could that change the game? paul: historically that has been what has happened. iphone 6 was the big generator recently. 7 is the one people are looking forward to. the trouble apple has is that is not obvious in the future that it will change things. the market for smartphones is an increasingly mature market with not much innovation. 50% of people never upgraded their iphone 5's. that's the problem apple faces on the 7. rishaad: are investors looking at apple and not giving credit where credit is due, given these record profits? you can't take those away from them. paul: no, you can't. but by the same token, it's expensive for a growth stock, because it's not truly growing. it is not achieved as a value stock. 2% yield, something like 2.5 times sales ratio. the company is stuck in the middle. it is transitioning finally for being a growth to a value stock. rishaad: thank you very much indeed for that. paul joining us from san diego. let's take a look at the other stories following f

6 cycle as a get to the 20th month of the iphone 6s plus, but it was so frontloaded that the iphone best growth for apple may be in the past. stephanie: carson, how concerned are you about the intent focus on the iphone and their sales rather than apple pay, rather than icar, all the other inventions they try to get off the ground? expert onam not an apple, but i think some of the other items you mentioned his right to be the mask noise. they are throwing something against the wall to see what sticks. they have the cash to do that. pcs, and there, is everything else. it is critical. i do know that any of the products you mentioned are really going to be the products from which they are able to take the next leap, but i think they will figure it out sooner or later, if it is not those products. david: corey, you have a busy day because after the bell, we get earnings from facebook, ebay, coming what you are looking for? am so easily excited, david. i think facebook is a fast-moving company because they have been able to manage enormous change and growth with underlying technology tha

moving on now -- has the iphone. ? apple signaled for the first time ever, sales of the device will drop. facing its first job in revenue in 13 years. catherine viette has more. >> it seems even iphone sales may have their limits. in the latest quarterly report, apple reported that iphone sales rose less than 1% from a year earlier. slowed year over year growth rate could signal trouble ahead as the device accounts for about 2/3 of the company's revenue. >> it is unclear what is causing this slowdown in growth for iphone sales. some people believe it is saturation, that many people who would buy iphones have bought them. there is also the belief that the iphones themselves are less interesting than they were last year at the same time. >> wall street is worried that the company may not have another blockbuster product to replace the iphone, and there are growing concerns about increased competition from chinese made smartphones. >> the chinese vendors have come up in the last few years with formidable designs, with pri

6 and iphone 6s.the weekly inventories report tomorrow. there has been concern about an increase in inventory once again into an oversupply markets are have oil and various kinds of oil stocks falling. transocean is also on the list here. i wanted to mention something we talked about yesterday that i want to put a fine print on. of trading first day going back to 1932, that is the yellow line here. these are the drops. what is happening arrest of january, it tends to be a better predictor for the years performer. was nott day being down a predictor for the rest of january not even 50% of the time. you know i like to give a little reason for optimism here. thank you so much, julie hyman at the markets desk. let's stay at the markets as we discuss. the s&p has settled. in the new year, what should investors put their money on? joe joins me now with some of 26 --p strategies for 2015 and whether they should be followed this year as well. year, the best performing strategy, just buying stocks over the las

apple investors are keeping their focus on the iphone number, there are other issues besides peak iphoneisks to the world's most valuable company. , she bring in abhey lamba joins us now in san francisco. as well as paul sweeney, who joins us here on set. earliermade this point in our meeting, that part of the issue for apple is as it transitions into a subscription model business, where are in this transition? abhey: they are just beginning to get into the scripture for -- subscription model. it's a strategy to make people via phone every year, becoming better customers for them. we have to see how well that will work. every two to three years, people have to replace their iphones. on top of that, they buy services and other products. that is something that has people focus on the other products that apple will be introducing, or hazardous. paul, if you look at the services like apple music or for instance, apple pay, where are we on that? i don't hear a lot of how that moves the needle for apple. paul: that's the concern for apple investors. they recognize this is essentially a telepho

bulls argue though that the iphone franchise is solid.hat there are new products in the pipeline including the iphone 7 and that valuation is very attractive at these levels with apple now trading at historically low pe ratios. of course cheap can get cheaper. the near term risk for apple is that weakness in iphone demand is worse than what wall street anticipates. we're going to soon find out. guys back to you. >> thanks so much josh lipton. shares of apples are still hovering around that $100 per share. down for the year. we've seen the corelary. are the signs going to be baked into this quarter? >> most of it is baked in. the question is what people see several months ahead. so i do think right now it would have to be a really bad fumbled quarter to react too much negatively but the market told you net income wise take away the buy backs it's been a very slow growth company since 2012. the buy backs have covered that up and it's been a smart use of cash but it's not necessarily -- and it's the first physical quarter. >> they do. right

the next calculate list, you either believe the iphone 6 cycle is going to continue, or the iphone 7, there is some answerery stock move ahead of that launch. >> i'd say it is the iphone 7 cycle. everybody on the iphone 6 cycle will be on the cycle. >> tim, you have got a market perform. not a sell. but not a enthusiastic buy. why is that? concerns about iphone or more than that? china? is it transitioning to becoming this value stock like microsoft back after the dot com double? it was dead money for ten years. >> no. i think to me, apple really has entered this period of transition. and you know, you had this very, very big cycle with the six. i think that the compares are obviously more difficult here with the s. seven i think will help because you will be basically two years on from that big cycle. i think you can sort of retap the buyers of that big six cycle. but i think the big your issue is china. it is a issue of near term versus longer term. if you look at china -- china -- apple has 75% of the premium smart phone market now in china. that market is not going to grow that mu

74.8 million iphones, misses street expectations slightly. earnings per share came ins there are thre-- $3.28 a share, we're looking at outlook. what is going to happen in current quarter for revenue, 58 to 53 billion dollars, that is does not good. that does not meet with what the street is looking for. looking at broader company, ipad sales tumbles, mac book sales did not meet expectations. expectation of 5.8 million. why is this happening? you see softness in china, the cfo of apple saying they see a change in the growth rate and how sales are doing in china. they were up 14% there. rising dollar, the foreign exchange headwind hurt be apple in the holiday quarter. deirdre: i want to get back to you about china, you cover china, and tech. what about apple's iphone competitors there? reporter: the chinese middle class is up like u.s. middle class starts $16,000 a year, and they are going to buy cheaper phones as the economy starts to soften. and it looks like it may have issues in terms of the market. have you local taiwan options that are c

come from iphone sales.n the last quarter they were able to add to revenue by 19% after they acquired directv the question how many new at&t subscribers to wireless service they haves as part of conversation with directv. revenue 42.75 billion. liz. melissa: we're watching all of it. speaking of at&t, with minutes left in today's trades is now the time to buy at&t. we're not saying you should buy something in four minutes but yeah, we kind of are. mark spellman says, what about at&t? >> old slow, boring at&t. which is exactly a good stock in this slow. liz: for widows and or fans. >> as far asker people looking for slow, steady growth, low interest rate environment and this stock has yield of 2 1/2 times treasury 10-year bond. that is amazing. they did a lot of acquisitions. you mentioned directv going forward in 2016 it will concentrate on synergies. we like it in our alpine fund. liz: they have made gutsy moves. there are people looking for hotter thing. you talk about t-mobile, john ledger and always colo

the iphone is so powerful. i got rid of my watch and i use my iphone as my clock.topped using my ipad as much because the iphone got bigger. it is cannibalizing all of these new devices apple is working on. emily: you cut your price target on apple, as did others. why? gene: we had to bring our earnings down because we are being more conservative. we wanted to take a more prudent approach. emily: having worked at google and facebook and closely with apple, which company are you most optimistic about? bret: i would probably say google. they have a unique set of assets where they own some of the most important services and they also own the most widely distributed it operating system. i do not think there are many other companies that have that broad suite of services on mobile. emily: alphabets market cap is approaching apples. should apple be worried that it could soon be surpassed as the world's most valuable company? gene: i expect apple's multiple to expand. investors will quickly get through this and realize they have totally sandbagged expectations and going i

phone purchase being an iphone.hey are trying to grow that market share in china. david: something to highlight as well is how quickly they want to get new phones. >> in america, i buy a new phone every three years. , 57% say they will buy their next phone with any year this within a year. 57% say they will buy their next phone within a year. david: something else in this report speaks to the stickiness of the apple ecosystem. if i buy an iphone, buy an ipad. that is happening in china. a a lot of people have macbook or iphone and want to have the whole thing. it all sink's together. -- syncs together. chinese consumers are starting to turn that way as well. david: are these other makers in china try to get into this market? how are they doing? >> they are doing well. samsung is a notable one. a lot of them are switching over to the iphone. somewhere good news for apple these days. -- some rare good news for apple these days. that ise heard reports based on this survey, things are still looking good for apple. look

iphones are so important to this company.oming from the iphone and apple shares are down from the last earnings report. there's a lot of skepticism about can they keep it up? we have been talking about cuts and you have analysts saying the stock could go 50% between now and the next iphone. a lot of the bad news is already priced in. we will be looking at the iphone very closely and find out if the fall in the stock has been justified. among our ways of finding out what might be going on with this company, looking at the incredibly intricate supply chain apple has. emily: companies like tdk and cirrus logic which gets two thirds of its income from iphones. these are companies that are dependent on apple and the apple ecosystem and we have seen their shares fall. one of the interesting things we have been talking about is can apple, out with another blockbuster product that drives as much revenue as the iphone? there's a lot of skepticism that apple can do that. but before the iphone was released, nobody thought this would hap

profits beat expectations. iphone sales missed the mark.he stock drifting lower, unable to give that stock a bump. the markets are on fed watch, but don't expect a move on rates. it's all about the message we hear from janet yellen and company. and the donald bolts the debate. the gop front runner drops out of thursday's cage match while ted cruz is issuing a challenge to mr. trump with five days until the iowa caucuses. it's wednesday, january 27th. so the caucuses are on the 32nd. and "squawk box" begins right now. >> live from new york, where business never sleeps, this is "squawk box." >> good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the outbreak of the zika virus now causing travel warnings. united airlines says it was allowing customers with reserve tickets for travel to zika-impacted regions to postpone their trips or obtain a refund. we will have more on this a little later in the show. in the meantime, it is another big day ahead for the markets. we're co

come from the iphone alone.line, they will have to consider diversifying their revenue per for leo -- portfolio, but for the year, munster thinks the bad news is already priced in. david: talk about the important the iphone.h are on i imagine competing search engines would like that space. talk about the importance of getting that contract. emily: i think i probably read that 20 or 30 searches in search bar every day. it sounds like a lot of money, but it's less span what gene munster would have thought because google actually makes $3 billion on the iphone, so they are paying about a 30% traffic acquisition cost. there have been rumors swirling for years that they are paying 50%, but it shows the link -- lengths google is willing to go. of coarse, google and apple are competitors in the iphone world. apple should be considering when they don't want google on the iphone anymore. but at this point, apple search is not good enough. they are going to have to keep working on the technology. munster says maybe five y

this is the new iphone.ng voice, and it's the same way you'd ask for, you know, a hat you'd lent a friend. nick, at that moment said, ask for a letter. ask for an official letter asking for it. we need the confirmation this is the real thing. >> the next call, he said he didn't to want claim it, really changed his tone at that point. because it would affect the sales of the current model. which is kind of disappointing. you hear all these stories about this guy not caring about money. and this is some serious shit. if i have to serve you papers and go through the trouble, i'm coming through something. someone in the organization is going to go for jail. >> for a reporter who has a chip on his shoulder, that's something, please, martyr me, i'm going to jail for an iphone. like really. he called back later, and he said okay, we'll get you the letter. and he just resigned. >> so he has the letter. and they send a law you from apple to pick it up. >> it was a very cold exchange. he said, i believe you have somet

this september, you will see a new iphone, iphone 7 or whatever they call it, and over the course of the next several months, hopefully, we will break some, if not all of the news about what the futures will be. remember the most recent version catered.hone was more we talk about how it was not like this revolution, it was not a whole new phone with a lot of new features but apple begs to differ. you see the commercials about how everything is different, but the market not so much. the pressure is on apple to make sure that the iphone 7 coming out later this year has a lot of features that basically make those of us who have are debugging iphone to upgrade or switchover -- who have already bought an iphone to upgrade or switch over to an android. .etty: thank you so much tom giles of bloomberg news. the vander january with treasuries up nearly two percent this month. futures traders are betting that we will see one rate increase this year. that is way off before that was assumed back in december. later today, brendan greeley is traveling down to d.c. for us here at bloomberg. he will

>> either an incredible phone, the iphone 7 has to be a killer phone that the existing iphone users can't wait to upgrade to, or a lower priced phone that will increase their market share and compete with maybe not the 200 an dry phones but 300 to 400-dollar phones that are on the market. if they can do one of those two things they may not grow rapidly they could stem the tied of erosion, but they fear in terms of their sales figures. >> what about other products. people have talked about an apple car or something like that. how likely are those kinds of odd things to come out, do you think? >> well, that's a very important question. apple has surprised us and delighted us with new and innovated products, although that has not happened for a while. the apple watch was supposed to do that. they've sold in the millions, they haven't released the sales figures, but it did not take the world on fire. it has not caught on as a killer product. whether it's apple tv, or some day an apple car or some other product category, if apple can do what it did with the phone, with the iphone, the ipod, an

>> i don't think that the iphone has peaked.f we take a step back and just think about the hand set market in the world there are over 5 billion hand sets. only a little over 3 billion of those are smartphones. we believe over time essentially every hand set will become a smartphone. so there's lots of room for the marketplace to grow and i know the push back will be well that will be for people that will buy much less expensive phones but there's income growth in emerging countries that's very rapid. particularly in places like china and india. so first and foremost the market is not saturated. secondly, apple had the highest number of android switchers ever in the current quarter and third their average prices for the iphone are going up. to me that's not a broken business. what we have is 37% last year. so if they're down 10% last year and it's the growth rate for the last two years. they need that perspective. you had a cyclical distortion because of the novelty of the product last year but if you look at it over a two year

guest: the iphone 6 was a fabulous hit, the first large-screen iphone to hit the market.here was huge pent-up demand and that company, despite its size grew, sales in certain quarters were 30% year on year. facing thoseand tough comps and i think we are starting to feel that. that's why there's a lot of noise around a quarter and people are concerned they may have missed the iphone numbers on the success. the iphone 6 was a tough act to follow. as was a decent upgrade. but to get people in the store to say i've got to have it -- this is the situation successful companies find themselves -- they become a big some of their own success. get people toook stop hitting me sell orders on apple? john: that is what i am listening for. what is next? let's assume the iphone is that peak sales. you have to assume at some point that they need to get the encore going. it's not going to be a single thing. i have the feeling it's going to be a confederation of products. it will be contributions from apple music, apple pay, car play, all of these things together i think have the potential

> today we're introducing the iphone 3g.ed your light? >> yes. >> in the beginning, the impulse was to sit you down and to show you everything on their iphone. as time's gone on, there's be beenlebeen less of that and more of what i call alone together phenomenon. it has turned out to be an isolating technology. it's a dream machine and you become fascinated by the world that you can find on these screens. and the face of that technology was steve jobs. this is the best block of all. it's like candy cane lane. i know. oohhh. oh, holiday ferris wheel. i kind of love it. look at those reindeer. jeffrey, you're awfully quiet back there. i was just thinking... maybe it's time we finish this test drive and head back to the dealership? that is so jeffrey... soooo jeffrey... so jeffrey... oh. elves.. it's practically yours. but we still need your signature. the volkswagen sign then drive event. zero due at signing, zero down, zero deposit, and zero first months payment on a new passat and other select models. mortuaryd mortality mo

all of these companies have hinted iphone declines.urprising is the extent of the cuts come a 30% cut. is reporting that is only for the current quarter and that production will resume normal levels the following quarter. because like inventory is piling up in developed markets, places like europe and china. it is all part of a cycle. we hear it every single time apple comes out with the s model. has not performed as welcome of people did not feel the need for the upgrade. the new thing with the rose gold color. looking ahead to the iphone 7 later this year, we could see the cycle pick right back up. when the earnings come -- theh the apple watch iphone is still incredibly important. it's 66% of revenue coming from the iphone. a significant dip in sales means a lot for apple. apple is not the only company feeling the pinch. we just did a big story on samsung yesterday. they have huge challenges going forward. this could be just saturation or the iphone cycle. david: emily chang in san francisco. tune into bloomberg west tonight at six

apple says it expects sales of iphones to decline in the first quarter of this year. that would be the first time that's happened in 13 years. in the last quarter of 2015 during the holiday season, apple sold 74.8 million iphones. that is record but it is the slowest rate of growth since iphones were introduced in 2007. apple says revenue could fall over 8.5% from the january to >>> weight watcher's stock is soaring. the stock jumped 20% yesterday after a new commercial starring winfrey aired. she said she lost 26 pounds on the weight watchers plan and ate bread every day. winfrey owns about 6.5 million shares of weight watcherers so that means she made about 12.5 million on paper. >>> jetblue is including free wi-fi system will let flyers stay connected gate-to-gate. jetblue says the seats will have more leg room and the updates will take about three years to complete. >>> last weekend's big snowstorm hit broadway's box offices hard. saturday's performances were cancelled and attendance for the week was down by about 83,000. grosses for the week ending on sunday were

stuart: look at all those iphone suppliers supplying parts to go into your iphone.t is a big drop. apple is a bellwether. >> current problem but for investors, is apple's same without steve jobs? i hate coming back to that, we have the consumer electronics show going on. what is the new product, what has apple got to show as? stuart: ten minutes ago apple came out and said 1.1 billion apps store sales in the holiday period, that is a good strong number but they came out with it ten minutes ago may be to counter -- negative iphone story. apple bounce up to 101 from 99 in pre-market. we have got stuff going on at 101, a little bit of what bounce, there is something going on with disney and i'm going to go to the floor of the stock exchange and ask nicole what is going on with it and the stock. nicole: despite the fact they have the new star wars film which is good news for this company we are seeing down arrows, we had and analysts this week setting some concern about disney, worries about espn being at risk with on demand streaming. also valuation might be too high.

>> i don't know if they have another imminent lane to plow, but going back to the iphone, if the iphonean't recover from the second quarter and renew some year over year growth, again specifically with the iphone, you have to start asking yourself if we are at peak iphone at an installed base now of 500 million users. you have to ask yourself, is it failing to take share from android? is adoption rates starting to roll over? is there not going to be an interest in the iphone 7? at least in our view those are tough boxes to check off. no doubt about it, we're seeing relatively poor iphone 6s adoption rates as we speak here. expectations have been reset. and, again, the stock is a little more -- 6 1/2 times enterprise value to free cash flow. we're almost back to the spring of 2013 right now, carl, i believe, in terms of the sentiment. that turned out to be a good buying opportunity. >> i was going to ask you, david, how much does this trough, if that's what it is, look like the pattern we saw in 2012, 2013 before it went into this super cycle? >> i think it's almost a dead ringer for tha

music product -- everything hinges on the iphone.his next model, new features will go a long way in determining how the investors feel in the company. >> this is something our legal reporter doug out of a court transcript from oracle to google. , explain unrelated this $1 billion beat. adam: when you search for something, say you are searching for a certain kind of shoes, it goes through google. what google pays apple is a big secret. they do pay to be the service there. now this information came out in court filings. google and apple try to have this information redacted from the court records. emily: it suddenly disappeared. we spoke with gene munster about this. there have been rumors about how much google actually pays for this service. like a big number. but in context they generated 3 billion in revenue from that. what that implies is a 33% attack, traffic acquisition costs. more than a typical traffic acquisition costs, but lest then what had been rumored. in some ways if you are going to ask me to guess before i saw the numbe

iphone sales grew at the slowest pace since introduction back in 2007.venue in the current quarter. that would be the first revenue decline since 2003 after great sales year in 2014, apple's newest iphones had fewer noticeable changes. apple shares down 2.7% in premarket trading, down 11% in the last year. >> lauren: facebook reports after today's closing bell. analyst expect to up 31 cents a shares. shares are down almost 7% this year. those shares could get a boost after report. revenue of 39% and net income of 35%. those numbers will be in line with growth rates in recent quarters. other companies reporting earnings, alibaba, ebay and papal. >> nicole: the fed wraps up two- day meeting. it will come two dais after we get the first read of fourth quarter gdp, which is expected to slow dramatically. >> lauren: almost a 3% gain for the nikkei, the hang seng and kospi each up more than 1%. >> nicole: in europe stocks now, what we have been looking here, ftse is down half of a percent. actually half a percent across the board. >> lauren: u.s. stock market

if the iphone 7 is going to be as big as i think, they are going to have a lot of content on iphone 7ike it. >> sirius logic, those are names closely tied. chip names are involved. if you want to be an apple, be an apple, don't go to the ecosystem. >> disney, the sell off underneath $100. that was a pitch i still think it is. i think it's going to break back over $100. facebook, i think it goes to $120. >> plus 280, best day for the dow jones since december. >> that does it for us. "power lunch" begins now. >>> oil takette away and oil givette. the dow is higher by nearly 300 points, oil's 5% rebound one big reason why. every single dow stock is higher. hello everybody. and welcome to "power lunch" where it is not just all about oil today. lots more, including the federal reserve and why apparently tonight is a very important one for apple. and melissa lee back from her vacation. >> jaunt to florida, back here in englewood cliffs a. nice rally today. we are watching the biotechs. that ion

we saw in 2014 the iphone in -- the iphone 6 increased record sales.ue apple had for a number of cycles. tim cook is constantly fighting to say we continue to innovate. >> you are holding your iphone aren't you? we are glued to our phones. new product, what can apple due to reassure? >> from a seasonal perspective, this is an iffy quarter from a seasonality perspective. electronic sales are going to be likely down from the december quarter. all the questions could be raised with him enough receptive years, this would be the time to do it. one of the things clearly set about apple is he is a media distribution franchise. maybe devices take less of a , but witho the media one product having such a significant portion of revenues it is hard to move the needle on the near-term. our reporter tim hagans in washington. much more ahead, i sit down with mohamed el-erian. the former the you columnist giving his take on the jobs report. betty: 4 p.m. in london and midnight in hong kong. good morning, i am ready luke. welcome to the european close. joining me live

as a music player, the iphone took all the best elements of the ipod. as an internet link it was elegant; as a phone it was fine; and as a camera it had everyone snapping... andoon the the release of each new generation was spurring another long line of eager fans... (mos) "i gotta keep up with the latest technology..." (tom foreman/reportin g) "certainly, the rise of social media platforms have helped the iphone prosper - and undeniably, plenty of other phones now do many of the same things." but the iphone remains iconic - one of the most popular ways for us to capture and share popes, presidents, puppies, pre- schoolers, private moments, and public amazements - whatever is at hand - or foot - no matter what the new year brings. tom foreman, cnn, washington. ((michelle mortensen)) > a > a complete stranger.. helps a woman.. when she needed it the most. ((patrick walker)) the act of kindness.. she made when a single mom's car broke down.. and would cost hundreds to fix./// ((michelle mortensen)) > in 2015 -- the entertainment industry was buzzing with

an iphone of one of our viewers goes missing. you're probably thinking, who hasn't lost their phone, right? >> but this story has several twists and turns. jonathan wallace has been digging for answers. john than, missy lost her phone in 70. >> reporter: yeah, she was in downtown cleveland, forgot her iphone 6 on beanches went back later but it was gone. then recently she got a strange e-mail now a couple of people are left scratching their heads. >> i kept trying to call it and never got any answer. >> reporter: that after she realized her iphone 6 was missing. she quickly went back to that >> still a sink feeling, somebody has my phone. >> reporter: she got a new iphone and went on with her life until about 10 days when she got an e-mail from randall murray in lufkin, texas. after seeing this ad on ebay, randall bought the phone for $270. but when he got it, it was i cloud locked. it did have missy's e-mail on it. >> he lost his money, he can't use the phone, and he can't get a refund. >> reporter: randall told me he talked to

i have an iphone. i love it. i hate when the auto correct corrects to the wrong word. but otherwise i love it. if steve jobs was still here and if i were to run into him, i would that i think him for it. my next guest says i should not be thanking steve jobs or even apple for it. she's author of a book just out in the united states called "the entrepreneurial state: debunking the private versus public sector mix." it's a fascinating book. it says the technology wasn't invented by apple. >> first of all, it's not that steve jobs want a genius or that apple wasn't a wonderful story. steve jobs was great. the narrative we tell around him as an individual and the company completely misses this intervention. the story is that every technology that makes an iphone smart and not stupid was actually publicly funded. the internet, gps, touchscreen display, even siri, the voice-activated system that never works for me but is apparently a great thing, were all funded by different types of public institutions in the u.s. where is that story? >> you argue this is part of a pattern,

how else does it look like the iphone 6 plus?you said it comes down to one feature, but the criticism was the look and feel of the product in general. hugo: i don't think that is fair. every smart phone these days kind of looks like every other smart phone. you have to have curved corners. you have to have at least a home button in some way. right? that is how interaction and design works. i just don't think we can allow companies to take ownership of things that just are how they are. right? and i think that if you look at what we have designed in the last 12 months, you will understand how much originality there is in what we do. and to be honest, i think you are going to see a lot more happening in the opposite direction. right? people taking inspiration on what we do. emily: the ceo is often compared to steve jobs. he doesn't like that comparison. but he wears the black shirt. why does he do that? hugo: he's no longer wearing black shirts. he wears a blue button-down shirt. i think he has 50 of those. he wears them to the off

why break down chen's door after he returned the iphone? >> they showed me the warrant to search the premise and said, we're part of the react team. obviously after they searched the house, i googled it. >> the officers who raided chen's apartment were composed of a team called react composed of local, state and federal officials on the lookout for corporate espionage in silicon valley. >> my initial response was, hey, this is cool, this is apple. >> chris was the deputy d.a. advising the act on the case. after the raid on chen's apartment, it was received at apple by jobs himself. >> he was very, very nice. very high energy. we had a back and forth about what he wanted to see happen versus what some of the realities were of doing a prosecution.

earnings beating expectations an revenue iphone sales disappointing. the conference call just about to get under way and the stock is in fact a lower, pretty volatile trade in the after hour sessions so far. we'll bring you the head loins as they break. we'll be checking in throughout the hour with bgc's colin gillis manning the red phone and meantime, guy, what do you make of the quarter? >> i think given where the price of the stock is, let's just call it $100. i think it's something for everybody. bears will point to the iphone shipments being somewhat disappointing. bulls will point to increasing margin improvement and bears will point to the tax rate being a help to eps. bulls report -- maybe will report to the fact that revenues were not as bad as some of the nay sayers on the street were going to say given what we heard from the supply side. right here where it's trading 99 is a coin flip. given the choice between the two i think you buy it here. >> the conference call will really be key in terms of breaking the tie between the bulls and bears.

sales of apple's iphone hit a bump. jet blue's cabin gets a makeover. wagner is at the new york stock exchange with that and more. good morning, jill. >> reporter: good morning, anne-marie. >>> china and shanghai composite fell this morning but other stock markets in asia got a boost after wall street's rebound. tokyo's nikkei rose more than 2% to finish near its two-month high. hong kong's hang seng added 1%. oil prices jumped 4% yesterday. the dow gained 282 points. the s&p rose 26. the nasdaq gained 49. >>> trouble may be brewing at apple. apple says it expects sales of iphones to decline in the first quarter of this year. in the last quarter of 2015 during the holiday season, apple sold 74.8 million iphones. that is record but it is the slowest rate of growth since iphones were introduced in 2007. apple says revenue could fall over 8.5% from january to march. >>> weight watcher's stock is soaring. thanks to oprah's weight loss. the stock jumped 20% yesterday after a new commercial starring winfrey aired. she said she lost 26 pounds on the weight wat

if we get an absolute decline in the number of iphone sales, that will come as a big surprise. i think you'll see a lot of price targets come down if we see that. absolutely right. great question. get involved. >> the sell side has maintained. do your point, the sell side analy analyst community is bullish on this stock. so many. is it still a growth stock? is it still a stock like a facebook or an amazon or netflix where investors have come to expect double-digit growth in terms of revenues? can we still expect that from apple? >> so do get involved with us on twitter today. some other stocks to watch. huntington bank shares is buying a high rival first merit for about $3.5 billion in cash and stock. huntington offering about $20 a share, a 31% premium to monday's closing price. the ceo will join "squawk box" at 6:20 eastern this morning. >>> lulu lemon gaining in after hours monday after loan pine disclosed a 5% stake. staples is replacing its long-time head of stores as the office supply retailer tries to complete a merger with rival office depot. same-store sales in north a