we're not apple. our margins are re. sometimes we mak sometimes we lose >> reporter: many agree, meaning an uphill so the white house encouraging states pass laws of their >> i just think th help so many strug families not havin between having a b to take care of a and their job. >> reporter: chris news, maryland. >> some maryland families are pushing for more time at the beach and less time in class. a petition called let summer be summer already has 13,000 signatures. the folks behind it want schools in maryland to reopen after labor day but still close in mid-june. maryland's incoming governor supports it. larry hogan says it will boost local business without costing taxpayers any money. but officials in montgomery and prince george's counties say it's a local decision and should stay that way. >> those kids count on snow days. no luck no luck in near future. >> no especially next week or so. after that things get a little interesting. but that's a long way away. i do have one system i'm watching during the day on sun

and twitter give their employees the day off paid but apple and microsoft do not. apple says they are encouraging their employees to day off to volunteer as a way to honor dr. king. >>> and now, two separate baby boy s boys were born on highway 24 in the east bay. maybe it is improbable but two mothers gave birth to baby boys two days apart. the pirs ift one happen ded near the acc ashgsalaini exit, and another birth to today. >> reporter: today, these proud parents can laugh about the wild ride yesterday. they felt that bayby gabriel would arrive in a few hours, and they started to head for the hospital at walnut creek at 7:05. >> my water broke on the way, and maybe five to eight minutes in. >> reporter: things started happening fast. and morning traffic on the san pablo dam road was not moving. >> it was stop dead traffic, and i hit the shoulder. >> reporter: he made it on to highway 24 and the gps telling him how much longer the drive would take. >> i was counting down, can you wait this long this long and basically getting the information from the source. >> reporte

begins with an a, but it's not apple. it's amazon. this year passed heinz for top honors in the american customer satisfaction index. hershey and mercedes-benz tied for third. they were two points away. at the bottom were time warner and comcast. >>> there's just one direction for this bad boy, up. one direction was the top moneymaker on tours last year with $282 million. former band boy there, you see, justin timberlake was second at a million -- at a hundred million less. and he doesn't have to split it five ways. the rolling stones were right behind in third place. >> i don't think the boys from 1 1d are complaining. >>> and movie goers are expected in record numbers. the most anticipated, "star wars" episode vii, the force awakens. and avengers: age of you will tron will be the second biggest, and the "hunger games," mockingjay part 2 will be the third. >>> and starting today, taco bell is offering free doritos locos tacos. place an order to get one, and they are giving away a million. it's a mobile app that you have to download.

we're not apple. our margins are really tight. sometimes we make money, sometimes we lose money. >> reporter: many republicans agree meaning an uphill battle in congress. so the white house is also encouraging states and cities to pass laws of their own. >> i just think that it will help so many struggling working families not having to choose between having a baby or having to take care of a sick loved one and their job. >> reporter: chris jansing, nbc news, maryland. >> it's not too early for our first reminder that next tuesday night president obama will deliver the state of the union address before congress. and we learned today a rising star in the gop, the new senator from iowa joni ernst will deliver the republican response that follows. we'll have live coverage of both on tuesday evening. >>> now we shift our focus to southern california. this is a big day every year in the entertainment industry. the academy award nominations were announced today. while the list always triggers both celebrations and hurt feelings, this ye

part of it is stuff people put on their phones is their own problem, not apple's problem. k god apple allowed me the ability to save over 1,000 pictures of my children. that's my fault, i don't need them. >> before that this suit reads like an april fool's suit because the practice in -- if these people have never had a computer before i could understand they would be surprised by. this but anyone who's had a computer knows that the storage space is never the same as what is held out to be the case because computers think in base two, manufacturers think in base 10. one terrabyte data on any pc is 9, 10% less. why don't i have all the storage space they thought i'd get, and if you go out on the web, this has been in chat rooms for years and years, it can't be a surprise. tracy: but it's kind of a surprise to me wendy, it took me a while to realize that when you go through apps, how much memory they all take up, not to mention each upgrade eats up that much more memory and tell you, you should upgrade your phone? >> you should upgrade, you trust them and upgrade your phone,

whatever they go for they have to make up that difference. >> fred wilson thinks the apple iwatch will not be the home run product that apple is looking for. we want the viewers to weigh in. what do you think you can log onto cnbc.com/vote and let us know. will it hit it out of the ballpark or no? >> i argue apple tends not to hit home runs. they hit doubles and singles. look at the ipod. it sold less than 2 million units its first year out. the iphone was more in the 10 million range. if they get this watch out mid-year, higher priced to begin with. don't expect a whole bunch the first year. it's usually the second year that things things kick off. >> slow and steady can win the race, edmund. >> i think wilson's point in his blog means it may not be a hit but it may not necessarily be a flop either. the other thing to note is we still don't know exactly how the watch is going to work. we know it at least has to work with an iphone likely. the universe of potential customers is already really small. >> all right. happy anniversary to recode. one year old. >> we made it. >> pass that on. >>

apple has conquered the chinese smart phone market. what is next? global domination? why not? for the first time since 2011, according to a report, both companies ship 75 million smart phones globally each order. apple has applied several strategies to finding success opening more stores, partnering with china mobile, and holding the line on pricing, but it was the release of the iphone 6 that pushed apple over the top. how did apple push past chinese makers at a higher price? joining me now is an executive director for wireless device strategies. let's start in england. how do you define these results and how surprising is this turnaround? >> these results for apple in particular are very good. a very strong quarter. blew past pretty much everyone's expectations. the sampson -- samsung results are pretty much in line with expectations. it's pretty well-known they are going through a tough time at the moment. apple and samsung are facing challenges. >> your results were a little different than idc's numbers earlier in the week. samsung was a little ahead in china, barely ahead

they're not the apple of cars. they're the tucker of the teens. a wonderful car but it's not practical. i remember having a debate with lebeau about china they love luxury cars, it may be expensive but that doesn't make it a luxury car. a pretty body that doesn't have a big range. to think they're going to make a $30,000 car when the battery in the current car costs over 32, you have to watch the canaries in the coal mine that went up too high on more of a climate change religion than an actual apple i make money every quarter. back to you. >> you do know cars, rick, that is one thing we have to give you. rick santelli in chicago. >>> let's get up to steve liesman with a cnbc rapid update on that data this morning. >> carl, especially the retail sales data, the big miss, bringing down the fourth quarter estimate, cnbc wrap it up done by moody's ap listics down 0.2 to 3.2%. still not a bad number coming off the five in the third quarter but erasing hopes we're going to get to 4% which some had out there. some still holding out, 2.5 to 4.2 is our ra

so do we talk about apple too much? we do not believe so. nd the cash flow and the balance sheet, talk about this that's a problem but it's a good problem. apple has too much cash. what a great problem to have. if you remember years ago, they really had a problem about potentially not meeting cash flow needs over a decade ago, now they're cash rich. people are complaining about that. it's an optionality to make acquisitions, buy back more stock or increase dividend over time. we think all of these things will fit and help resolve the cash situation. glad they have too much rather than not enough. >> obviously, it is an important asset. just to go back to apple pay, i like the recode angle. they were skeptical on the idea 2015 the year the apple pay. many large retailers are going at it alone, not taking apple pay, trying to compete. does apple need to be in those stores or can it be a u quickubiquitous breakthrough payment. >> at the end of the day the con consumer will vote and enter pry has to adopt to that. we'll seen that with corporate e

we have the apple watch to be looking forward to. there is notuch of a bad word you can say about apple. killing it i would say. >> stunning numbers from apple overnight. other american companies have a tougher ride. earnings disappointed across the board. many of the companies including procter & gamble as well as microsoft are pointing a finger at the stronger dollar. investors await the latest fomc statements today. for how long will investors tolerate an ever decreasing u.s. dollar? dollar strength, problem for the reserve or the treasury? >> the u.s. economy is growing. the federal reserve is expecting to raise interest rates. in addition to the damage from earnings from the oil sector and the mining sectors. >> is there something they should be concerned about? >> at the necessary price to pay -- it is a necessary price to pay. it is inevitable. i think the federal reserve is going to be deterred by some downgrades to corporate earnings. the view is corporate earnings are going to be high enough. >> do you imagine this is going to be the bi

set the world on fire, others saying look how often underestimating apples has gotten you into trouble. >> i'm notthe apple watch initially addresses all the requirements people have. it's like a smartphone in your pocket. and op your wrist it's almost too feature rich. it will take a few generations to mature. the counter argument look at ipad people didn't know why they wanted the ipad they just wanted it. only now you see ipad volumes starting to decline as people scratch their heads going what am i using my ipad for? i can keep it without upgrading. it takes time to build significant generations. if people get excited they can buy that these things earlier than they should. >> without knowing why. that's all you need to know is you're getting one. we'll see you next time. >> thank you. >> talking apple. yahoo! stock rallies after announcing that spinoff of the company's remaining 15% stake in alibaba. they're transferring more than 300 million shares into the unit called spinco. did investors get what they wanted from yahoo!? joining us are martin internet analyst at rosenblatt securities. goo

but how much of what we see at ces, even though apple is not here do you think really is kind of appleoogle. >> everything is about them. they are not here if you notice. and the minute apple makes news it gets more attention. a big people are watching the watch i guess. i don't know how else to put it. so it will be interesting to see how it's received and will sell. and most people are very interested. the two a companies are still the most significant companies on the internet. monk them. and they are not here. and there is no sign of them here. >> and it seems like social media is also important here. not just because everybody is tweeting but because o a lot of these devices now are allowing you to get information from your social media account os even send it out directly from a device. what do you make of this whole controversy, ed williams saying hey monthly active users don't matter so much. and whatsapp saying 700 million monthly active users and not just that. people are sending out billions upon billions of message every month. >> i think williams wishes they had that much

not won the war on cybercrime. >> then there is this, google and apple. yes. they can now encrypt. d they do not even know how to access to the information. >> what apple and google said in their most recent upgrades is that they no longer have a key. we used to send them phones and they would take their key, on encrypt, and send it back to us and we could do it. they no longer have that key and market their phones. you remember them saying that we cannot assist law enforcement. did it come out of the snowden business? >> i am sure it did out of concern of the nsa. to diminish the importance of right to privacy and i do not want the nsa looking at my e-mails, but where i strongly disagree with apple and google is that is not what we are talking about. not the da's office willy-nilly trying to go through your e-mail. we have to get a warrant from a judge. we need probable cause that there is likely to be information on this crime or that crime. >> a judge -- before you can request the information from google or facebook or apple, you have to have a judge say it is appropriate that th

an apple a day is supposed to keep the doctor away. but apparently not these apples - details on a recall.ahead. 7 a california company is recalling shipments of apples. after it was linked to a recent outbreak of listeria. the f-d-a announced bidart brothers of bakersfield. is recalling all granny smith and gala apples shipped from its california facility last year. health officials have warned consumers to avoid eating pre=packaged caramel apples. after at least five deaths and 32 illnesses were linked to the treats. still ahead. why one local police department says. it wants to buy this armored vehicle. and how much it would cost. plus. a small whale in distress. after washing ashore in marin county. what researchers are doing to figure out how it got there. jacqueline bennett>>: another spare the air alert has been meeting for tomorrow. the air is really easy out there today this same thing to mal. bulldog: well pup, it's out with the old and in with the new during mattress discounters' year end clearance sale. pup: look! i found a red tag! bulldog:

when apple gains share overall they are not just displacing samsung, other android players and windows phone players, or at least one, that samsung would get a bigger share of the revenue from. they get a base share from apple but not much. that actually hurts qualcomm's growth more than losing that one design in the samsung phone. >> john, thanks for that. keep us pd on development. this stock has been dead money over the past year. there is also the overhang of china. is this a no-touch at this point? >> i thought it was a touch at 71. totally wrong on this. you are back to 2013 resistance. what i thought was the bad news, it was out there they told us. they guided on this point. 2015 was in the prices. we got lowered from there. and the samsung share loss, this was in the price a week ago. this is not new news. that was something we were talking about last week. >> we knew about china. it never recover from the last earnings cycle. you see the stock trying to fight back to that level. but asp is a major canary in the coal mine. it is a no-touch. >> how but, pete? >> at these levels,

apple did not give an exact number, but it would imply about $15 billion in revenue. g me from new york is jack, ceo of smart link, a cloud software firm that figures out how apps are working. apple is one of their clients. these numbers are amazing. we know there are a lot of people working on apps. our apples numbers right? >> they seem right to me. $25 billion generated is a next ordinary number. 50% growth from about $10 billion to $15 billion between 2013 in 2014 really implies that the app economy is real. when you consider the fact that about one million people a day will log onto the internet for the very first time and it's probably on a smart phone, it's probably on a mobile device. that applies there is an extraordinary global opportunity. the summers feel right to me. >> the app -- these numbers feel right to me. >> the app economy is huge. it's interesting to me how distributed that is. 78% of them are not centered around apple, centered around bloomberg west, centered around the bay area. most of them are all over the world. where are they coming if they

and protected from the world, ball one talks of innocence as a crime because not to know, not to bite the apple would not make you human. the first act of becoming human was bleeding from the 3 of knowledge that now some of our leaders so cavalierly are dismissed. why do we need imaginative knowledge. for have been's sake, imaginative knowledge is not something you have today and tomorrow you describe because you have an iphone. you cannot have an iphone as walter isaacson constantly reminds us, you cannot have an iphone without imagination and you cannot have an iphone without a democratic society whose name is not just money, whose aim is telling you you are going to your garage and experimenting, some of us are behind you. go and do it. all whole idea of education in society like this is based on the fact that every individual has the right to life, liberty and pursuit of happiness. therefore as those founders who certain groups sort of confiscated what it means to the founder what it means to different institutions and apparently all this revolution against the british and the civil war and

apple pay is great. i just used it last night at whole food doing my storm preparation. it was manic in there. on the china issue, this is greater china. not exactly a surprise if you're following the trajectory of iphone sales. very key because samsung was looking at china as a very important market and it's getting hit at the top end by apple. and at the low end. so apple strength there does matter, but it makes it particularly important because they're opening up these retail stores before chinese new year. >> tim cook said in 2013 that the tipping point would at some point come, that china revenues would ellipse revenues here in the u.s. what do you think made it happen so soon? do you think it was the larger phone or samsung weakness? >> it was the larger phone. that's part of the reason for samsung's weakness. if i were just the low end and samsung still had the top end, that would be stronger for them. they have this larger phone that's clearly popular in china. it's very important. but you can't underestimate the importance of retail and apple's vertical integration. look at a l going after microsoft. apple owns its whole ecosystem

>> it is not beyond apple to do so. they did it with the iphone, the ipod. we are not even talking about the ipod anymore which, several years ago with the revolutionary music player am a now it is an afterthought. i have got a clunker, a paperweight. apple will do that. and there are more than making up for the weakness in ipass with the iphone. >> it is certainly not worrying the investors right now there tom, great to see you. the managing editor for technology here at bloomberg. back on the fed and the economy the keyword surrounding the fed decision this afternoon will be patients. economists do not expect any major shifts in monetary policy but the global event may be altering expectations for the interest rate left off in june. peter cook covering today's decision. with me is carl. peter, i want to start with you. according to economists we survey over 40% still see liftoff in june. you are starting to send a shift away from that, right? >> the survey goes on and shows 30% think it will happen in september. there is at least a campout sensing that give

you are a defensive player. >> i actually think the watch can flop and apple pay could become such a huge story that it would almost not matter. apple's had flops before. they had a flop with the radio. et cetera, et cetera. there's other things they haven't been able to do right. >> exactly. >> on top of the radio, they didn't have the most success with a lot of things that they've done. but the things they do well that are hits tend to overshadow those failures. i think pay is a smash hit. so i would own the stock for that alone right now. >> i totally agree. look, music to my ears. i think apple pay is going to drive device sales which is where their margins are. i think they're going to revolutionize the pay business here. i think they'll make a tremendous amount more money in the twice sales from the margin back there. >> great. >>> betting on the turnaround, one video game stock down 20% in 2014. but, one of our traders says it could make a major comeback this year. find out who it is and how to play it right after this break. >>> also, hedge fund heavyweight bill ackman and a new fight against herbalife. the all

. >> it does lends the feel if you're not apple, in some way you're flailing. t saying that's a fair point of view but it's out there. >> there is probably a niche they can grab, but the most likely scenario is they are toast. they have to be cognizant of that. >> what is toast? >> just done. >> liquidation. >> exactly. that's where their market position is. maybe they can figure out a way to get a niche but only point samsung offers 40% over the trading value which is a lot higher than people thought, far less likely -- >> less likely to be toast than a year ago that's why we're having this conversation. >> give it time. corporations are adopting apple, android we don't need a third system. >> you don't think this is an act of desperation for samsung to say this is the only really prospect for growth is to buy something some. >> i don't know that they're necessarily saying that. it would give samsung, take force operating system out of the market, more market share, access to parts of the market maybe you're not selling now. samsung is not in a desperate positi

victor, the camera guy, uses apple. >> can i not talk about apple?ughter] in europe, there is this strange notion that all the grasshoppers live in the south and all of the ants live in the north. >> to grasshoppers eat ants? >> the ants saved all summer and the grasshopper fiddled all summer. here is his point. the ants live all over europe and the grasshoppers are the bankers who colluded to create a bubble and now it is the answer were paying it off. does the north get europe right? >> i think they need to think about this differently. austerity in a time of economic recession is not the right prognosis. they are forcing the spanish, greek, italian economies too slow. >> the one point that greece wants is debt restructuring. is there a precedent for this? >> i think we will see this in the near term. greece needs to clean up their tax code. the need more revenue. they do not have more revenue. more revenue means more austerity. they are really in a catch-22 here. >> i am pretty sure i had to read a baudelaire poem in praise of the grasshopper. tha

those things also play an impact. >> if we found out that apple was number one in china, is that good news and if we found out it was notis that bad news for apple? >> i do not expect them to break out phone sales by region. that is where all of us during the estimating commend to look at. the key is it is increasing. it will be close. just from the data we saw in retail and network analytics. so the 6 and 6 plus are unprecedented. that goes back to the point of them wanting bigger devices are you -- bigger devices. what this talks to is the upside for china. if you look at the u.s. market, we are reaching saturation in the u.s. with penetration and individual ownership going over 7% but it is less than 50% in china. the upside is strong and that is where when you look at what apple is doing their -- there, the market is so large and there is so much market share to be distributed but the upside remains to be the largest in that market. whether or not it was close which we think it was or it was number one it will be and apple being extremely committed to growing their share in that region. it is all positive signs for

you should not count apple out. they are hoping that will be the apple watch later this year.ty: the other part of the story is china and the chinese market. american tech companies have seen china as the place to produce products. apple says, this is the market. dan: there are two important things about this in china. this is the earliest the phone has gone on sale in china after the release. it was almost simultaneous. they had to wait a long time. there is a lot of pent-up demand. you see the writing on the wall. you see a lot of people lining up to buy the iphone and handing them off to a handler to ship them to china. there was a black market. the have taking care of that by getting the phone out right away. katty: you mentioned the ipad. sales r.o.k.. -- are ok. what about the macbook? dan: they are much more expensive. $1000-$2000. the iphone is $200 and costs the same as everyone else. everybody is in the same pool. katty: i have to ask you about the watch. what is your hunch? dan: it is tough. it is a foggy area. a lot of companies have been putting wearable devices u

apple would say that it's not breaking the law and it does not make the tax laws. >> you can't blame companies. they'll take what they can get from governments, and i think a key point here is that governments do need to do more. i think governments need to catch up where consumers and voters and the tax practices of these big companies as well. that's why earlier this week, international ngos are calling on the u.k. government to do more to crackdown. >> this is a problem isn't it. how difficult is it to get a global agreement on tax regulations. of course if countries make it very--make tax very easy and less for companies companies move their operations to other countries and invest in the economic of the other countries. that's the problem. it's competitive between nations to see who they can get the companies attracted to those big cities. >> sure, there is a danger to the bottom, and global agreement is what we're aiming for and campaigning for around the world. this is particularly an issue that affects the poorest countries hardest. they lose much more, estimated much more in

that sinks to your smoke alarms and lets you know through an app if they go off when you're not home. >>> apple's new campus beginning to take shape. this is the view taken from a drone and posted on youtube, you know that big spaceship. wow! it is big. the apple campus 2 in cupertino call the spaceship about 13,000 will work there when it opens up. apple says it will be the most advanced environmentally- friendly building in the world. >>> well, a woman training to become a 911 dispatcher is getting praise this morning for thinking outside the box and very likely saving the life of an injured hiker. ryan prettycharred was hiking with his sons when he fell 150 feet. his 11-year-old son called 911, but the phone cut off before he said where he was. the only clue dispatchers had was that the call connected with a cell phone tower near vacaville. that's when a trainee, breeannea martinez did an internet search on the hiker's name and came across a linkedin account and made a match on facebook. >> i decided to search myself since they were busy. i scrolled down and the very first post was a picture o

it is not a one billion units a year market. april the applethat it will go beyond fitness. it will be a platform. we look at what kind of fitbit units are out there. this will be in expanded size. a subsection of what the current iphone that uses are. the boot times this, somewhere between 10 million and 20 million units in the first year. come to about two hundred million iphones. much smaller. down the road, this could be a 50 million business. this is not going to be a 300 million business for apple. x ever? -- >> ever? what is the thing that you will say, oh my god, this is taking off? >> well, some people use their phone as a watch. if you think about the watch the pocket watch was basically eliminated when the wristwatch came out. there is a lot of utility from having something readily available on your list. the value is going to come from things that can be accessed. rocks. going to check into your hotel you don't even have to talk to anybody, you grew up to your room and wait for your watch. eventually, assuming the battery holds up,

. >> it's not apples to apples but it does seem like a big difference. >> when you practice federal lawtaking a risk because they're so harsh with the sentencing and also because your client is going to be doing serious time. so it's a very serious matter and they're very rigid. so to get two years under these circumstances is very surprising. >> listen to what one of his attorneys says about the prison term. >> we hope he never goes to prison. if he gets bond pending appeal he will not have to go to prison pending appeal. >> how realistic is that? can he get out of this? is there potential for a strong appeal? >> they are going to appeal based on what the attorney said today and i think they're going to challenge the constitutionality of the statutes under which he was convicted. i don't think it's likely you'll see a reversal on appeal. i think his attorneys are probably ecstatic the judge sentenced him to two years given the prosecutors asked for 10, the department of probation asked for 12. if you look at the precedent of other governors and other public officials who have been sent

apple customers say their phones and tablets are not quite as advertised. why they're taking the tech giant to court. >> of then an all-out fight to got you home safely. a local taxi startup. and ride share services go head-to-head this new you're eve. plus a popular movie, predicting what life would be like in 2015. so how much did it get right? we'll take you back to the future off to find out. >> and good evening, i'm meteorologist jeff ranieri. on this new year's eve. temperatures dropping. coldest, 32 in gilroy. how low it will go for tomorrow. details in the freeze warning in eight minutes. >> searchers are gating much needed break in the weather as they continue to look for victims and answers in air asia tragedy. the search for beds and allodies and the black box can intensify as waves calm down. 7 of 162 have been recovered. officials say the good weather should allow them to focus on finding the plane's main cabin. in jakarta, 5,000 people took part in the vigil for victims of the air asia crash. the solemn ceremony took place in the same place wh

. >>> coming up, the smartphone brand scoring highest with customers, and it's not an apple. >>> and starbucks drewbrewing up something new. it's about the foam not the coffee. >>> and the price is wrong. the back-to-back game show blunders that will have you shaking your head this morning. >>> another major recall for general motors because of defective ignitions. nearly 100,000 full-size trucks and suvs could have ignition lock problems in hot weather. drivers have problems turning the key. a wide variety are being recalled including chevy, gmc and cadillac models. >>> you are paying a half dollar less for gas than just a month ago. the national average this morning is $2.24. that's down almost 9.5 cents since last week. but that could change. many states are raising gas taxes, including some that already have the highest prices in the country. >>> parents of college-bound children can start filling out financial aid forms. the sooner the better. families are mistaken that they have to wait until their 2014 tax return is completed. it's free and online. >>> starbucks has a new item

they are a huge company. >> it is not apple doing interesting stuff right now. stuart: who is it? the microsoft stuff that just came out was fantastic. >> fantastic. it blew my mind. >> i am not a financial guide. stuart: you thought that was more exciting. >> we will not walk around with helmets on. everyone is walking around on their phones. charles: when it comes to taking these things and turning it into money. no one is better than apple. samsung is more or less throwing in the towel on phones. they took 500 engineers and moved them over. they are, more or less, throwing in the towel. samsung is going to knock out iphones. they quit. stuart: mary, we you bite and i watch? >> yes. stuart: charles? >> absolutely not. >> i do not own an iphone. stuart: check the big work, please. we were doing well. we went down 16-20. now we are up for it teen. a weak outlook for the year. cheap oil will pamper demand. of nearly 5%. you were right, young man. stuart: told people to stick with it. [laughter] stuart: yahoo!. unveiled a plan to spin off tax-free. near $40 billion worth of holdings

provided less than promised >>> san francisco attorneys filed a lawsuit against apple accusing apple of not having as much space as it advertises. the software takes up 23% of the devices internal storage. that lack forces consumers to buy space on i cloud to keep files. apple has not yet responded to this suit. >> a little bay area generosity on this final day of the year it will go a long way to putting people to work. cheerleaders greeted donors at the donatathon. today was the last day to get that year end tax deduction. goodwill creates jobs and believe there will be 700 new jobs based on donations today alone. >> people are so generous and looking to start off with a generosity and their sort of their driver. i saw like a party. and there will be people there. and well organized. and so i thought, just wait, i have the day off. >> former mayor willie brown donated designer blazers to the auctioned off online the collection has brought in $10,000. >> nice stuff. >> yes. >> coming up next hazard on the golf course a surprise in the east bay. where they had to play through this. >> and s

to a better night's sleep ♪ >>> san francisco attorneys filed a lawsuit against apple accusing apple of notas much space as it advertises. the software takes up 23% of the devices internal storage. that lack forces consumers to buy space on i cloud to keep files. apple has not yet responded to this suit. >> a little bay area generosity on this final day of the year it will go a long way to putting people to work. cheerleaders greeted donors at the donatathon. today was the last day to get that year end tax deduction. goodwill creates jobs and believe there will be 700 new jobs based on donations today alone. >> people are so generous and looking to start off with a generosity and their sort of their driver. i saw like a party. and there will be people there. and well organized. and so i thought, just wait, i have the day off. >> former mayor willie brown donated designer blazers to the auctioned off online the collection has brought in $10,000. >> nice stuff. >> yes. >> coming up next hazard on the golf course a surprise in the east bay. where they had to play through this. >> and some stro

aink about what happens in company, not just facebook, google, apple. extreme wealth creation. of the distraction that creates. incrementalnts of focus, attention, press. adulation. the acolytes come out of every single part of the woodwork. it takes a really, really special person to not be able to be affected by that. >> google and facebook are trying to do the same thing. who wins? >> i think they both win, but in different ways. to thewins with respect entry point. they own the front door to the internet, and they own the front door to the 90% of the mobile apps. the experience once you're there. >> speaking of another big company that you're not fond of, you once wrote that temp cook milquetoast, uninspiring, margin tweak her image for himself. you also said that apple should by tesla and make elon musk the ceo. do you still believe that? >> yes. he is very good at what he does. i think he is probably an exceptional operationally minded ceo. the question is can that hers creativere the type of types to build the next lily pad? i think, no. think of the amount of wealth tha

and some big names will not be there. indeed, apple. neither will microsoft. joining me, the president of check analysis -- tech analysis research as well as our regular contributor joining us from swanky san diego. paul, good to see you. bob focusing here on the internet of things there is something we have hearing about for a year. it could have talked about any number -- what is new this year in the internet of things? >> i think what is new this year is we are seeing a variety of devices we have never seen in the past. i got press releases about smart toothbrushes. and bracelets. we are seeing a range of stuff we have never seen before. >> [indiscernible] bloomberg.com -- >> the issue is we have a bunch of individual products and what people want, i think, is this idea of a connect did home. but the reality is it is more of a disconnected home. i wrote a guest column in "usa today" on friday. you have this that has its own set of absent this has it set of apps and there is no way of pulling these together. that is the challenge i see. >> paul, there are so

apple. he strong-armed a lot of companies. google did notemployees. >> it was really something he led. it was interesting, he has been lionized. he has an image about himself. the things he was doing were so interestingly anti-competitive whether the book deals and trying to take over the business or take it away from amazon through price-fixing, and now this. >> the testimony is embarrassing. we already see how the ceo eric schmidt was bending over backwards to not alienate jobs. the companies just do not want any more of that. >> who will get the settlement? >> it will be spread through tens of thousands of these. the lawyers get a quarter of it. then these tens of thousands of engineers part of the class-action. >> brad stone, thank you very much. we should take a selfie, don't you think? it will be our first selfie. put it on. there you go. we will figure it out. thank you very much. her member you can always get the latest headlines on your phone, tablet, and bloomberg radio. we will see you tomorrow with more of "bloombert west." ♪ . .

apple at this point. the chinese guys are very aggressive. >> really quick, will we get to a point where there's not a lot of innovation to have with the smartphone and that's when the guys are going to threaten apple coming up from the bottom? >> it will be interesting to see what is happening. >> thank you. we appreciate your time as well. amazon web services is becoming such a behemoth. the company will be breaking up numbers. we are going to look at how big this businesses and all the disruptions it is causing across the world of technology. that is next on bloomberg west. ♪ >> time for a check of world news headlines. the pilots in the air asia flight cut the power to a critical computer system just before it crashed into the java sea. they disabled the flight augmentation computer, which renders them unable to address the alerts. russia's parliament passed a law beginning of the year that bans on an advertisement paid tv channel. this new rule could cut the revenue in the country. and rapper jay-z is taking on beats and spotify. he has launched the nordic music streaming company aspiro. he spoke to