emily: i spoke with apple cfo luca maestri who spoke of channel inventory.hey sold 1.2 million iphones worth of channel inventory. that brings the number slightly up. david, what is your take? >> if i understand correctly, the sales outside of china actually grew. cook said it is because they were seeing anticipation of future product being a problem. it's amazing to me how in china they are even more status conscious and technology conscious than any other part of the world and they love apple. but i tend to take a big picture view. this is not that big of a deal. if this company can make the move to services and software, which is the shift they have to make to get there multiple up, they will have a wonderful future. i do think they will come out with a great phone in the fall. emily: let's talk about china and we saw a 14% year-over-year decline in china. i talked to luca maestri, and he played up the positive things they are seeing. he says the iphone 7 was the best-selling smartphone in china. the iphone 7 plus was also doing extremely well. there serv

emily: i did speak with luca maestri, who talked up channel inventory.hey sold 1.2 million iphones worth of channel inventory, which if you consider those numbers, that brings the number slightly up. david, what is your take? david: well, if i understand correctly, the sales outside of china actually grew, and cook said it is because they are seeing anticipation of future product being a problem. it's amazing to me how in china they are even more status conscious and technology conscious than almost any other part of the world and they love apple even still. i would say take a big picture view. this is not that big of a deal. i mean, if this company can make the move to services and software, which is a big shift they have to make to get their multiple up, then they are going to have a wonderful future, and i think they will come out with a great phone. emily: let's talk about china. we saw a 14% year-over-year decline. i talked to luca maestri about this, and he was saying they see a lot of positives, the best-selling smartphone in china is also doing e

emily: we did ask luca maestri whether they have laid the groundwork or are planning to bring cash backepending on what happens with legislation.he said it is not something to speculate on right now because it depends on the details of what might get connected. we do a lot of scenario planning, but there's nothing to announce today. any closing thoughts? >> i think when you look at the numbers overall, we remain very optimistic on the shares. services growth of 18%, right in line with what we expected, continuing to run in line of the duckling potential over the next four years. -- doubling potential over the next four years. apple continues to expand outside of the iphone revenue stream, and i think that's an enormous positive. emily: angelo zino, i will let you get back on the apple earnings call. it just started. tim cook is speaking. at cfra,no, analyst and david is sticking with me. first quarter results coming in better than expected, but the online marketplace is announcing a major restructuring.ceo josh silverman is leaving the company along with the chief technology officer. sh

coming up, emily chang spoke with apple cfo luca maestri about the company's latest earning results. highlight from here. this is bloomberg. ♪ julie: "what'd you miss?" emily chang just got off the phone with apple cfo look of my street. she joins us now with highlights. we're just talking about tax reform repatriation. what did he tell you? $257: apple now has billion in cash, 93% is overseas. thought aboute this -- have i thought of this, laid the groundwork? he told us it's not something we will be expect -- speculating on because it will depend on the details of what might get connected. we do a lot of scenario planning, but there's nothing to announce today. of course tim cook has suggested he is open to this, would go there -- but wouldn't go there in terms of doing -- giving us details on what would happen if the legislation changed. julia: what did he say about basic numbers? seems like they sold fewer iphones yet revenues were higher. the iphone 7 plus is doing much better than expected. they're saying shift -- a shift of customers going from the iphone 7 to the iphone 7 plu