let's get to josh lipton who spoke to tim cook on the results. good morning. >> good morning.let's start with apple's flagship product where units did slip 1% year over year to 50.8 million. analysts expected units to rise 2%. tim cook said demand was stronger than reflected because he reduced inventory by 1.2 million units and that consumers are putting off upgrading because they're waiting for that new phone. on china, cook telling me at the high end of our line, the new product we're doing well. in some previous generation iphones we are not doing as well as a year ago. why is that? we're working on that. back to you. >> let's pick up on that china thing. the offset is that the rest of asia numbers showing strong growth. the break down of what they're selling in china, does this suggest a short-term shelf life for the phones in emerging markets and we have to pair down expectations? >> i think what cook was saying there, to your point, listen, in china, he's pleased with the performance of the seven, and the seven plus. not as happy with how the previous generations were do

josh lipton joins us now after speaking with apple's ceo, tim cook. >> well, sara, tim cook said that iphone fans are delaying upgrading because they're waiting for new product. we are seeing what i would call a kind of delay in purchasing behavior that we think is a consequence largely of the number of rumors and reports about future products cook said. he also told me that if you look outside of china, iphone units grew very nicely. that apple had more upgrader ins the first half than ever before. still, china is an issue. revenue in greater china did slip 14% year over year. cook telling me at the high end of our line, the new product we are doing well. in some of the previous generation iphones we are not doing as well as we were in a year ago quarter. why is that? we're working on that. cook also mentioned on the call another area of the world he's very excited about -- india. >> we continue to be very enthusiastic about our opportunity in china. we set a new march quarter record for india. where revenue grew by strong double digits. we continue

beginning, though, with apple's earnings, due out after the bell, and josh lipton is at apple headquarters with numbers wall street is looking for, josh? >> reporter: bill, when apple reports today after the close, there's key numbers to focus on. one, of course, analysts do think apple, 52 million iphones in the second quarter implying growth of 2% year over year, and analysts say iphone fans could now be deferring upgrades because they are waiting for that new iphone to arrive in the fall. of course, the key debate on the street is whether that new iphone is going to spark want big upgrade cycle that bulls are counting on. also, this is typically the quarter when apple updates capital return program. ubs thinks apple authorizes app additional $40 billion stock buyback and boost dividends by 10% to 62 cents. beyond hardware, they pay attention to services, incoludig app store and apple music. in 2016, services representsed 12% of total revenue, surpassing the mac. they question whether services decouple from the iphone, meaning keep growing strongly as the iphone franchise matures. there

our josh lipton is watching all of those details. od morning, josh. >> good morning, carl. iphone shipments might have disappointed wall street but apple ceo tim cook telling me in an interview that the franchise had in his words a great quarter. 7 plus growth is strong so why were shipments down 1% year over year? cook telling me he pins that on inventory drawdown and consumers are putting off upgrading phones because responding to reports about the new product arriving later this year. another hot topic, apple's ongoing legal fight with qualcomm which has turned very ugly very quickly. cook addressed that on the call. >> you can't pay something when there's a dispute about the amount. you don't know how much to pay. and so, you know, they think we owe some amount. we think we owe a different amount. and there hasn't been a meeting of the minds there and so at this point, we need the courts to decide that unless we, you know, are able to over time settle between us on some amount. >> finally, i did ask cook why he recently secured th

thank you, josh lipton. >>> joining us now for more, roger mcnamee.come, rog ferroger. >> good to be. but tough day, huh? >> it seems unlikely governments are going to stop stockpiling cyber tools, cyber weapons. it seems like the nuclear arms race. but what should we expect to happen from here? i mean, i think it's kind of mind blowing that this got out there. >> jon, i think that's exactly the point. it's not like this was a new kind of hat. people have been doing ransom ware hacks of this kind for ten years. the bitcoina agngle and the low ransom price allowed them to scale it globally to the thing we're seeing right now. there are unintended consequences of technology we never used to experience that are now happening at huge scales. this is not the only kind of one we're going to see. and the question is who is responsible when one of these things happens? and you look at this and there's blame to go around. and the thing that troubles me is that the industry in general has historically been so optimistic. it's said, hey, none of the consequences

our joan e own josh lipton is at apple headquarters on a brand-new red iphone. we will check in with him later often. josh, we kick it off first with you. >> mel lit i lisa, let's start with the this iphone, they were down year over year, in an interview with ceo tim cook who cold me in part that demand looks better than those units suggest because he did take down that channel inventory that 1.2 million units in a quarter. he said iphone fans may be deferring that upgrade because of what they think is coming. he told me, we have seeing a delay in purchasing behavior, we think is a consequence of the number of groomers and reports about future products. >> that is happening. >>> however. if you look at the iphone outside of greater china, iphone units grew very nicely. we had more upgraders in the first half than ever before and more switchers than ever before. there is a lot of good news in there. i did ask him, what about those ambitions in self driving car technology. we know apple did secure those permits to test that technology here in california, cook telli

back to you. >> josh lipton, thanks so much. how serious is this attack? expect more soon? let's bring in the form earp cia officer expert and the co-found earp of the cloud security alliance and an expert. gentlemen, great to have you with us. nils, given how much it has spread since friday and what appears to be the diminishing number of case that is have come up over the weekend and through today, what can you tell us about whether or not this is going to die out or how bad it could actually get. >> well, i think, you know, what we have seen is the first wave and there's plenty of vulnerabilities around that can be exploited. as we have seen a large number of systems globally that have not been maintained or patched that use outdated systems or software. and it really depends on how crafty and agile the attackers are here in updating the payload, the malware they push out. there could be other groups that after seeing the spread of this and how easy it actually was to more or less jump on this and create their own campaigns and infect machines. >> it se

first here's josh lipton with the market wrap. >> thanks. stocks on wall street ending higher.asdaq and s&p notching record closes ahead of the french election sunday, the dow ending up 55 points. the s&p 500 closing up 9 points. the nasdaq closing up 25 points. april's positive jobs report giving the market boost. employers added 211,000 jobs last month. the unemployment rate dipping on 4.4%. a ten-year low. apple closing at a record high, helping lift the dow and nasdaq. shares jumping 1.7% to $148.96. that's it from cnbc first in business worldwide. you don't let anythi keep y sidined. that's why you drink ensur with 9 grams of protein and 26 vitamins and minerals. keep y sidined. for the strength and energy to get back to doing... ...what you love. ensure. always be you. >>> welcome back. the affordable care act wasn't the only one of president obama's signature pieces of legislation if republican cross hairs just this week alone. house republicans took step toward disntling dodd frank, e sprawling walltreet reform bill passed bongress after the 2008 financial crisis. the h

josh lipton is live at the conference with a preview of what to expect. >> when he takes the stage herever the keynote at 1:00 p.m. eastern, the expectation is that he's going to talk a lot about google assistance, its answer to apple, siri and ama n amazon's alexa and we could get updates on google's hardware. for example, google home, the smart speaker that answers questions and plays music. there could be additional pressure on google to offer updates today because we know it is playing catch up with amazon, which dominates 70% of the market versus just 24% for google. amazon benefits from first mover advantage and continues within this space. but tech analysts say don't count out google either which continues to add new features to its smart speaker, too. like recognizing multiple users. garrner says spending on these devices will top $2 billion by 2020. other hardware, reports that google is also going to unveil it's new vr headset. coming up later on closing bell, i'll be chatting with clay bavor. guy, back to you. >> thank you, they got some updates to do on daydream as well. the

josh lipton joins us from apple hq in cupertino with all the details. > well, carl, apple stock surged more than 60% from its low last may. so can tim cook keep those bulls in charge? after the close today, the street expects apple to report eps of 2.02 on revenue of nearly $53 billion. they are expected to ship 52 million iphones in the quarter. that's because many iphone fans could be delaying upgrades as they wait for that new iphone in the fall. he says the wild card this quarter, gross margins, apple could get stung by higher component prices, but could also benefit as is now withholding royalty payments to contract manufacturers in that ongoing brawl with qualcomm. beyond the hardware, a lot of attention paid to apple services which includes the yapp store ad apple music. they expect to reiterate comments from the last apple call when he said services could double in the next four years. apple's cash pile could also get a lot bigger. companies added average of $7.5 billion to its cash position over the last four quarters. that means apple could now

here's josh lipton with the cnbc market wrap. >> thanks.the nasdaq closed at record levels today. that's after the labor report showed solid jobs growth for april. the dow rose 55 points. s&p tacked on 10 points and financials lagging. nasdaq climbed 25 points. that's it from cnbc first in business worldwide. (laughing) left foot. right foot. left foot. stop. twitch your eyes so they think you're crazy. if you walk the walk you talk the talk. it's what you do. if you want to save fifteen percent or more on car insurance you switch to geico. hide the eyes. it's what you do. show 'em real slow. that goes beyond assuming beingredients are safe...ood to knowing they are. going beyond expectations... because our pets deserve it. beyond. natural pet food. before fibromyalgia, i was a doer. i was active. then the chronic, widespread pain drained my energy. my doctor said moving more helps ease fibromyalgia pain. she also prescribed lyrica. fibromyalgia is thought to be the result of overactive nerves. lyrica is believed to calm these nerves. woman

. >>> go pro founder ceo is joining us in an exclusive interview, nick woodman, and josh lipton. >> thankou, kelly, nick, thank you for joining us. >> thanks for having me. >> so, as kelly mentioned, nick, you know, stock's down 3% today, down since you guys last reported in late april. that q revenue guide at at the midpoint suggests a 20% jump. are you on track to achieve that, nick? >> we are on track. we feel good about second quarter, and we think that things are tracking just as we shared on our earnings call, and we're really happy with the turn around that we're seeing in our business, the restructuring that we took action on at the end of last year and beginning of this year they are bearing fruit. business is solid. demand is solid. customers are using our products more than ever here, and boding well for the second quarter. >> and, nick, you mentioned demand. you mentioned the hero 5. for that device specifically, you know, where are you seeing the demand? is that exist in gopro users updating the device, or all new fans coming into the gopro ecosystem? >> it's across the board

. ♪ >>> for the latest on these global cyber attacks we want to go to josh lipton who joins us out inrancisco. good morning. >> well, these kinds of attacks of course do tend to focus attention on the cyber security space. you can see how some of those names are reacting. it is being called an unprecedented ransomware attack. that's how this cyber assault is being detailed. rob wainwright, the eu police agency, said that this cyber attack had already impacted 200,000 people and at least 150 countries but wainwright said he was worried that the numbers would only increase as people return to work today and turn on their computers. now we have early report of attacks in japan, korea and taiwan. the amount of money being demanded is relatively small. a few hundred dollars of bitcoins that could possibly go up. cyber security firm said that the ransom note looks like this, oops, your important files are encrypted. that means you can't access them anymore until they're decrypted. this used a vulnerability of old versions of microsoft which was originally discovered and exploited by the nat

results out this hour as well, josh, lipton, how did they do?f 28 cents, burst expectations of 26 cents. revenue 2.39 billion. street at 2.35 billion. deferred revenue at 5.04 billion, a jump of 26%. turning to the guide, kelly, 31 to 3:2 cents. street at 31 cents. revenue, guys, 2.51 to 2.52 billion, and salesforce raising 2018 guidance, basically in line with estimates. you know, kelly, headed into the report, salesforce, of course, on a tear, up some 30% year to date, trading roughly flat here in the after hours. that call starts at 5:00 p.m. eastern. back to you. >> thank you, joshua. >>> coming up, more with the bank of america interview, and his take on the state of the u.s. economy, tax reform, and whether he thinks millennials spend too much money on that avocado toast. stay with us. and it's also a story about people. people who rely on us every day to deliver their dreams. they're handing us more than mail. they're handing us their business. and while we make more e-commerce deliveries to homes than anyone else in the country we never

lipton spoke to ceo tim cook. josh>> iphone shipments did disappoint the street in q2 but ceo tim cook telling me in part that is due to expectations for new product. we are seeing what i would call a kind of delay in purchasing behavior that we think is a consequence largely of the number of rumors and reports about future products, cook saying. i also talked to the ceo about that ongoing legal fight with qualcomm. apple says qualcomm is charging excessive royalties, and for technologies it has nothing to do with. cook telling me qualcomm is trying to place a tax on the value of the entire phone. we think it makes no sense at all for somebody to be able to charge a tax on many innovations that they had no contribution to. that is the debate. guys, back to you. >>> thank you, josh for that. ed lee is here the managing editor the rico, also a cnbc contributor, also mike olson, research analyst at piper jaffray. >> we talk about these rumors because i hang out on blogs waiting for my moment to pounce. >> for the next pho

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