samsung's business?korean company with gigantic market cap. or as we, mark twain would say, the reports of my death are greatly exaggerated? >> i would say more the latter. i actually disagree with the statement on differentiation because samsung does that with its display quality. this is the note 4. a quad hd display. liz: a little higher. >> they're working on bendable displays for note edge and gr device that ties in with this that turns it into a virtual reality helmet. differentiation is not issue for them but i agree they have challenges on the high-end of the market. one of the big questions is around focus. they have so many different variations on a theme when it comes to their devices, just in the wearables market alone. they had four or five different smart watches and fitness bands already. i think not so much about throwing stuff at the wall to see what sticks. it is about figuring out what you do best. being able to execute on that. liz: larry, lawrence, rather, the stock is down about 18%

the largest profit dropped in five years for samsung. how does samsung get the magic back? at&t is to companies, but the split -- hp is in two companies, will be expensive. can the company overcome the massive charge to turn itself around? we will look into hp financial. and the next decade could be the decade of the robot. in 10 years, one third of the global workforce is predicted to be replaced by robots. super machines can do both physical and intellectual jobs. our leadough, to story. samsung is still the world's largest smart phone maker, but is starting to show up in samsung's earnings. the company forecasted a sales , its biggest since 2009 when a report orderly earnings next month. this is after about -- after apple rolled out its iphone. samsung is also getting pressure from other competition. these companies make cheaper phones. joining me now, editor at large cory johnson, and in washington, senior director of trade at the economic institute. are samsung's-- glory days behind it? >> it may not be behind it, but it is getting squeezed by both apple at the high-en

but keep in mind, samsung is in the majority of markets around the world. they have the threshold with these operators and retailers that will continue to cell phones. the difference is, when you look at it from an investor standpoint, they will not make as much as they made on each device in the past. they have to come to grips with that reality. >> apple may have 20% to 30% of global market share, but they will have 80% of the profit. >> and samsung has to comes to terms with that. they were pretty understanding in terms of rapid ability per device. >> what other devices are you watching? lenovo, lg, they actually did pretty well. >> the number one would be lenovo. there is the formal announcement of motorola coming together with them. and motorola is doing a lot of good things right now. there is no question in my mind that is the smart phone maker to watch. there's the caveat that they need to execute well with lenovo. >> an obvious the, xiaomi, their main market is china. how successful have they been elsewhere? i know they are looking at india and bey

samsung is still the world's largest smartphone maker -- samsung. this is coming after apple rolls out the iphone pushing out into phablet territory. they're also getting pressure from korean rival lg and xaomi. joining me now in studio, our editor-at-large cory johnson and senior director of congressional affairs and tread at the korean economic institute. troy, are samsung's stays behind it? >> right now they do face significant challenges in emerging markets. it's getting squeezed by apple at the high-end and low-end device series of newcomers. micro max, xaomi, firefox in southeast asia. right now, we're seeing two storms. the leadership transition going on in two, a challenge to dominate the smartphone market. >> read between the lines for us. there are more than the headlines might suggest. >> the headlines are sparse. one of the peculiarities of the this -- of this being a korean company, they are required to tell us in the quarter on the top and bottom line. what are your revenues and profits ballpark? this could have been a horrible sales o

that is where samsung had dominated. apple at the nov up behind is no flow -- and the cheaper price points feared their very popular in china and india. samsung is number four in china. they are seen competition. they do make televisions. for rival phones did not sell as well. s5 has been slowing down. the shares are down 15% year to date. there is a focus on next quarter. they have new phones coming quartered. -- forward. earlier ining out china. that will sell well in the fourth quarter. edge.e got the note that seems to be lined up to do relatively well. the push now is into chips. they are spending $15 billion on eight chip lantern south korea. is that where the growth is for the future? everybody wants the next flagship phone to really put apple up to the test. >> let's get more on this. the market is up. the signal seems to be the glass is half-full. is this a low point? >> probably. we are coming up on the christmas season and their new products coming up. -- has been some benefit from the currency. it would not b

apple takes over, then samsung takes over.y, it is still the biggest supplier of smart phones. 25% of the market globally. so obviously things are changing. it is still the number one manufacturer at the moment. the question is can it keep up. it's interesting that apple, which notoriously tends to keep very, very closed doors and do its own thing, obviously listened to the patter of the sales teams on the floors. it's listened to what consumers want and it's decided okay, you know, bigger phones were big in the '90s and now perhaps they're going to come back. >> just very briefly, samsung seems to be betting on the chip business, increasing that. it's already the biggest in the world in memory chips. can the chip sales offset the fall in its smart phone sales? >> every single phone, no matter what brand it is, no matter where it's come from it needs a chip. if they can corner that market, which they've already done pretty well, it should keep the wolves from the door, aaron. >> great stuff, zoe. we appreciate your input. >>>

troy, are samsung's stays behind it? faceght now they do significant challenges in emerging markets. it's getting squeezed by apple at the high-end and low-end device series of newcomers. xaomi, firefox in southeast asia. right now, we're seeing two storms. the leadership transition going on in two, a challenge to dominate the smartphone market. lines fortween the us. there are more than the headlines might suggest. >> the headlines are sparse. one of the peculiarities of the this being a korean company, they are required to tell us in the quarter on the top and bottom line. what are your revenues and profits ballpark? this could have been a horrible sales of refrigerators and best buy for all we know with it being such a big number but it follows a trend where we are seeing an increasing sales decline for three quarters now from samsung. we know they've been losing share across the board in smartphones. you'll see a lot of stories out there saying the apple iphone 6 is killing samsung. there were only a few days into th

samsung in korea is up around 1%. that's despite guidance, which suggests it might have its first annual decline in earnings for the first time in three years. and japan is up about 0.7%. that's off the bank of japan monetary policy on hold. bonds, ten-year treasury yields in the u.s., dipping down a bit. 2.4%. nonetheless, range bound between 2.4% if we're thinking of thinks bearishly, if they're more positive. interestingly, the ten-year german bond dips below 0.9% yesterday. it is now just back above 0.9%, a bearish signal there. let's look at forex. we've seen a bit more movement in the dollar against the yen. yesterday, in fact, the dollar declined 0.9% against did yen. a little bit further weakness yesterday, perhaps that's because we didn't get further loosening from the bank of japan this morning. the euro/dollar, 1.2626. we'll be discussing currencies a bit later. seema, over to you. >> wilfred, coming up on the show, is coffee becoming the in you new champagne? we investigate the jump in price for our favori

i can get a cheaper alternative than samsung.f i want a big phone, i can think about getting an apple. how do they improve in the smartphone business? >> that is where they were hurt. it is the margins, the profitability that are being eaten into. what an was want to see is their next set of false selling well. they unveiled in germany and they brought it to the stores in china faster because they wanted to beat apple and they have the note 4 and many think it will sell well. they also have the note catch. that funky one that drops down. a curved screen. read our text messages on an angle. generally, that is meant to be flying off of the shelves. what people want to see is the s6. they want to the killer product, the main flexion. the new one to bring back sales. -- the main flag ship. the future samsung. it is all about diversification. not just about winning and smartphones. analysts want to see them hold onto market share in india and see them unveiling these new products. what about chips? samsung's huge business, about 1/4 i

a chart for you, apple versus samsung. apple up 25%, samsung down 17%.n, you have always said apple is going to $1000 per share, which after the split is 100 or dollars per share. i take it this is going to back up your point of view. >> samsung can't make any money on the phones. what value is it to shareholder, apple has operativ a pretty mar, call it 30% on operations. samsung has problems as they have a lousy job, an increase in smart phone mobile sales yet the margins fell out down into the cellar. looking at a 60% decline hopper in profits, they are not making any money on it. stuart: it seems apple iphone and everybody else. would you argue with that one, michael? >> not at all. bad timing for samsung. 10 million in the first weekend, already setting sales and then you say the biggest competitor is doing a really lousy job of making any money. samsung will invest into a chip plant. so they are obviously in a huge transition. not for apple. stuart: they will spend 14, $15 billion on a chip plant in south korea? >> they are in transition, the big ph

and samsung's pain really apple's gain? walt mossberg brakes it down. and myspace co-founder chris dewolf coming up later on this water. yo, bro, you on woo-woo? are you kidding me? everybody's on woo-woo! [elevator bell rings] woo-woo? lock and load, people! we're going all in on woo-woo! ok? mark! comp us up a profile page! copy! susie! write us some posts! ready! grace! upload some videos! uploading! i want sponsored woos. i want targeted woos. we want to be all up in your woo-woo feeds! gordon! register our woo-woo handle! janice?! we need an ethnically ambiguous woo-woo mascot. we're cashing in the q4 budget, people, and we're buyin' some followers! hahaha! yeah! [applause] woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! oh yeah! [laughing] dude. are you still on woo-woo? naaaahh, man, my mom's on woo-woo. ♪ >>> a quick check to be markets at this hour. dow down triple digits, 147. s&p down 15, to 1950. nasdaq down about 37. and here's morgan. >> as you mentioned had nasdaq trading near lows of the day. down abo

coming at the expense of samsung. how did the company come up so fast? >> it may be a new kid on the block, but the scrappy cell phone maker known as little rice is no longer little. the ceo helped found the company in 2010. a few months later, they launched their first android-based firmware. it took on apple with its first smart phone, the mi1. it has introduced new products every year with the great fanfare. how did it rise so far so fast? first, there is the price. at $270, it costs less than half the cheapest iphone in china. then there is the business strategy. it sells directly to consumers online with limited quantity available. a recent web sale in china brought in 203 $1 million in orders. -- $231 million in orders. it sold 100,000 phones in under 90 seconds. it plans to expand outside of china to the new markets. the little from its domain name, proving this $10 billion startup is starting to think a lot bigger. rise, iore on xiaomi's want to bring in the director of mobile devices at idc. cory johnson with us here at the studio as well. how d

we are focusing on samsung, and we want to get it right.is our focus today, getting it right with samsung. >> what about hollywood? what have your conversations been with the entertainment companies? >> hollywood is getting excited. being based in orange county, we are close to l.a. we have been in touch with a number of directors and actors, yada reeves came down recently -- keanu reeves came down recently. of us in the country -- in the kumbaya, the matrix was exciting. it's need to have that connection to l.a. and hollywood. a lot of the film producers are looking at -- is this going to be the next generation of real-time cinema? where you feel like you are in the movie? when you experience how good it can be, watching film on traditional 2-d screens start to be less compelling when you can be in the movie itself. >> how long before we see something i can buy -- and oculus headset on the market? do you have concerns that facebook hasn't marketed hardware before? >> we want to get it right. right thegotten it last 30 or 40 years. you put

samsung reading sprint faces what is being called an ugly quarter., tokyo is being battered by a powerful typhoon with torrential rains and 200 kilometer per hour wind. we have the latest. what is it like outside this morning? >> well, it is pretty ugly out there. i had a tough time getting in. i broke out the rain boots. it is windy. my umbrella got blown inside out. and my train was late today. some trains or lines are operating. >> and how is it affecting business so far? >> well, in one prefecture, which is pretty close to where the storm made landfall today, ,oyota has suspended operations and they are still deciding what to do. operations byyed a few hours at uw of their factories. there are hundreds of flight cancellations throughout the entry, both from the two main japan carriers, including jal, a nd for jal, some of the cancellations were for international flights. >> and what has happened so far? >> well, you know, we have seen some images that are pretty devastating. rivers that look like they are overflowing or close to overflowing. surg

so, could samsung go the way of nokia?ld say first of all that samsung remains very, very profitable. in that third quarter of this year, july, august, and september, it made $4 billion. but that was still a big decline. a decline of 60%. so it's all in the wrong direction. two reasons really. it's getting picked on at the top end of the mark by apple. the iphone 6, the big iphone 6. samsung started with these bigger phones, and they took off. apple's now following, and more than following. and the other thing that's hitting samsung is at the bottom end of the market, cheap, high quality phones from chinese companies and indian companies are biting away at the bottom end. samsung's retaliated by saying that it's going to address that middle and bottom range of the market with new products competitively priced. that remains to be seen. one thing about this market, though, it's partly electronics and technology and big brains stuff. of course it is. but it's also fashion. and fashion can be awfully fickle. >> steve evans the

what samsung has done is use this 60 gigahertz frequency. wi-fi all around you, that will not [indiscernible] talk.s all tech you have a smart phone and i have a smart phone. if i want to give you a movie, one gigabyte big, it will take me less than three seconds. it could be a big game changer. samsung will allow high definition videos to be screened live in real-time. samsung's head of research says this could open up new possibilities for wi-fi technology. this technology could be available as early as next year. >> the impact could be quite huge pushing forward. [indiscernible] the timing of this is very important to the game. >> it's a good thing that they have come up with wi-fi technology that could give it a competitive edge for its smartphones because the smart phone business has been dragging down samsung. it's quarterly operating profit plunged 60% from last year. analysts say maybe they could focus on providing the chips that are used to make smartphones, that they provide to other makers as well. the semiconductors business anot

samsung feeling the hurt today.e also want to get a check on the markets which are mixed at this hour. the dow sees outsized gains largely because of the visa. remember that is a price-rated index and visa responsible for most of the games gains on the dow. solar shares are fully rally mode. after hours yesterday one of the reasons why the stock was on fire. visa adding 125 points to the dow right now. shares of dream works slipping. even though earnings topped estimates. it is unclear why the stock is down. maybe because ceo threw cold water on the takeover speculation. especially rumors about of bank coming in. >> two key executives flying the coop at twitter. why this could be bad news. and shares of f5 networks rallying this morning after revenue topped analyst estimates and the guidance came in line. the ceo joins us in a cnbc exclusive in a moment. and is the fight over apple pay a heating up? or is it already over? more later on. how do you beat the number one seed? you just have to win 70% of your points at

jill, looks like samsung is having little bit every fun at apple's expense. tell us about that. >>> yes, that didn't take long, right? samsung is poking fun at apple over bend gate, as you remember, of course, that's when some customers complained the new iphone six plus bent in their back pockets. so samsung newest ad for its galaxy note four says its phone underwent a three-point bend test, they say our hips are stronger than we think, samsung's new smart phone by the way is available for pre-order right now. erika, natasha. >> yes, it took all after hot minute to get on that. >> new they would be right on that one. thank you. >> thanks, jill. >>> coming up p after the >>> good morning, jess. >> good morning, erika, good morning to anyone just waking up and getting -- getting ready to head out the door. rough start, only 453, on the schuylkill expressway, just at conshohocken, where you can see headed westbound into the king of prussia area moving real slowly. key are -- we are compromise ago shultz their and right-hand lane, due to disable vehicle that tur

is that it is going to impact samsung? theyof the reason introduce them is to take on samsung.stion is the big screen, the tablet. where the trends are going. that is one of the areas. samsung, having been the giant of the larger screen. the consumer will tell you future. >> thank you very much. just a simple man with a simple phone. >> you have two of them. i'm sure that mean something. 6:25 in london. number three smartphone vendor, still quite a small player in china. they are targeting 10 new markets in 2014. starting with sales in india and singapore. operating system. it sells direct over the web. >> it is amazing how it has become part of the vernacular. i thought i would look at the markets. index, how global at these are faring, was more hawkish. down 0.4%. th looking at.r the two year yield on the treasury note. it rose by nine basis points. already, investors reappraising their rates expectations. >> you can join the conversation on twitter. >> coming up, we are going to stay with us. ♪ >> for combat. let's -- welcome back. let's look at the foreign exchange markets.

is that the new samsung? yep. have a good one, man. don't be a wallhugger. sorry.ltra power saving mode and interchangeable battery on the samsung galaxy s5. the next big thing is here. ( cheers and applause ) that's it for the report, everybody. good night. captioning sponsored by comedy central captioned by media access group at wgbh access.wgbh.org >> from comedy central's world news headquarters in new york, this is the "the "daily show"" with jon stewart. ( cheers and applause ). captioning sponsored by comedy central >> jon: welcome to the "daily show." my name is jon stewart. our guest tonight-- it's a good one-- jeremy renner. jeremy renner is going to be here for the new film "kill the messenger." man, is it a good story. first, remember the big financial crise, 2008? ( laughter ) if you remember tyou weren't there, man. ( laughter ) that was woodstock. anyway, it tanked the economy. well, when was the last time you got good and angry about it? want to? ( laughter ) all right. you asked for it. remember how we gift wrapped $184 billion to insurance giant a

. >> i was the partnership with samsung going? >> great.are one of the leading hardware companies in the world. certainly one of the biggest mobile companies in the world. partnering with them, and try to connect more people in virtual reality -- it is hard to pick a better partner than samsung. it has been exciting working with them. there are challenges. any two companies coming together to build a product together -- we are the software, they are the hardware -- that is always going to be a challenge. they have been receptive to what needs to be done. john carmack, the legendary programmer, has really gone in under the hood and made a lot of modifications. he has openly talked about those modifications, samsung accepted them, worked with us, to then deploy that to users. >> who also you partnered with? sony has their own headset. do you consider them a competitor? the virtual reality space needs more the one company. we hope it is an incredible industry that explodes. there will be hardware companies, software companies. we are excited t

samsung has issues. now all of a sudden here essentially saying, we're kind of going to not really -- >> now we're many digits, however long, as well. it's difficult areas to get invested in. we mentioned buy due, alibaba, apple, as well. where do you stand on nasdaq tech stock only? >> i think from our perspective, clients are very interested in the space, but they're very challenged in saying where are the valuations and what is the opportunity set? i think in terms of particularly the institutional investors that we work with, they're a bit technology shy at the moment. and the places they're looking are around the smallest businesses and the smallest opportunities. >> a bit of trading at significant discounts from the nasdaq, let alone some of the higher rate appears. >> ibm and in some cases you can make the argument they already have it. to the extent that you're generally invested, these stocks are ready. huge components of the indices that they're in. so where do i go from here? what does this me

one important thing about these samsung devices here if you use the samsung charger, it will charge fromero to 30, or 50 percent in 30 minutes. >> wow. >> thirty minutes. >> thirty minutes. >> all it takes. >> yes, indeed. >> and, we have to make it complicated for security and we're back on. >> we're back on. >> this is what it looks like, when you get the phone. >> let show another cool feature. ultimate was wide selfie. looking up at the the monitor. we will try to keep a steady hand. but, you move the phone from side to side, and it will process a selfie. it is jittery there. >> yes. >> samsung did it for us. >> look at that. >> like a wide selfie. >> all of the kids on line it will crop picture down for instance gram. >> i was just saying that for kids. >> yes, better smile. lou good. >> thank you. >> when you take pictures at least i have the samsung, i don't know which one it is, what is that one. >> you have got the the s4, the s5 and s3. >> i have to crop it down for instance gram. the this is more social media friendly. >> more social media friendly and more fun to get to the c

samsung losing ground to apple. and some some electronics posting the biggest drop in quarterly profit in almost five years. is as samsung struggled to maintain its leadership in the smartphone business. its other divisions are now putting these -- in the spotlight. the company announced yesterday it plans to build a $15 billion chip plant in south korea. for more on samsung's involving our guest joins me now. in mu of the smartphone sales, the chip business is doing well. >> it is. one of the things happening with chip sales and specifically memory is that you have a consolidated market. you have fewer suppliers. there is not much supply coming on line, and as a result prices are controlled. and demand is ok. lots of memory going into smartphones and tablets, and even the pc business. >> the good old pc business. exactly. they are not dead yet. fewer players control pricing, and so they are doing fine. as one business struggles with samsung, they are trying to pivot to the chip business. chipe they able to use the

apple's major rival is samsung. it's trading up today in the market.t there that dropped -- develop that would new wi-fi technology will allow much faster data transmission. sherry is with us now. it's going to be five times faster than the current stuff? and, and the way we feel it will be 10 times faster. i have a movie, i'll send et to your device, it will take less than 10 seconds for one gigabyte movie so that's super fast. uncompressed high-definition videos can now be strained in real time. how can they do this? because you and i are using 2.5 devices. ga hertz >> i'm sure mine is much slower than that. >> five giga hertz, another frequency not very commonly used and that's allowing people to make use of wi-fi without interference from crowded wireless services. samsung seems to have overcome those issues and they're saying new possibilities have been opened up and they're open hoping to make this technology available as early as next year. >> i hope it doesn't move very quickly because their operating profits are seriously under pressure. >> pl

we are focusing our partnership right now son samsung.get it right and that's our focus today is getting it right. >> what about hollywood? what have your conversations been with the entertainment companies? >> hollywood is getting really excited about this. that's an area that being based in irvine and orange county we're close to l.a. we've been in touch with a number of directors, a number of even actors. keenu reeves came down and got excited about it. he's kind of to us in the company, the matrix and these films are really inspirational. so to be able to show it in bullet time and starting to work in real life is pretty exciting. so it's neat to have that connection to l.a. and hollywood. and a lot of the film producers are looking at, is this going to be the next generation of realtime cinema where you actually feel like you're in the movie. and once you experience it and start to see just how good it can be, watching film on pradigsal 2-d screen starts to be a lot less compelling. >> that does it for this edition of the best of blo

. >> what is hitting samsung sales here? , samsung is no longer having those golden day smartphone business competitions from cheap chinese rivals. manufacturers like xiaomi are selling more overseas. china mobile is taking steps to billion inbout $2 smartphone subsidies. that means customers will have to pay almost doubled to get a samsung device. that would of course help manufacturing company xiaomi, not so much for samsung. the high-end market is still whichdominated by apple, now offers bigger screens. my parents are opting for samsung just because they could look at the screen better. now they do not have that advantage anymore. investors are starting to factor in these challenges. samsung has lost about 17% of its market value this year, or approximately $32 billion. >> will they be able to recover next quarter? >> what does it take to recover? >> that is the big question. analysts will need a neustar device, like a successor to the start device, new like a successor to the galaxy s5. still come, putting the fallout o

hugely significant system i cannot remember samsung made a loss.facing very tough competition and a new breed of competitors and nokia and elegy. lg. these are new private copies that have very rich and governments from their home aomitries in particular xi and they are pricing samsung out. >> subsidies rolling out of china. >> it as pressure overall. for appleh pressure to go up with a screen sized story going to affect? >> i do not think it makes a huge deal. out for had been there with samsung competing. up kind ofing catches up a bit. samsung thehelp does not materially shift. not anybody posing a serious threat to them. i do not see things changing much. it is all the low end. the chinesewhere are making $100 handsets but have high-end chips. the same compresses the going to the falls -- they goes into the fault of the developed markets are making. i do not think they can do it. >> we will leave it. nice to see you. .ech specialist, james gautrey knifeafter the swiss army maker has been stagnating. the company is revamping itself. hans nichols

the band that goes on sale today has some heavy competition from samsung gear. the pebble, the fitbit but most of all apple's smartwatch which is slated to hit the market next year. we would like to know, do you think microsoft's band will take off? which smart watch will emerge victorious? you can get in touch with us, world wooitd@cnbc.com, or tweet us@krns wex. >>> brazil's central bank hiked interest rates to 11.25%. in a shocking move, just days after the re-election, five of the board members voted for the move. investors unanimously expected the rate to remain unchange. >> the sensex has returned just over 10% since modi took the helm. a lot of optimism is boeing priced in in terms of what modi can deliver. >> now, the u.s. consume ser back and visa is reaping the rewards with stronger than expected earnings. we check in on the credit card giant after the break. xkçvowçvç >>> visa post ago 14% in net income to $1.4 billion. visa shares were up after hours on the back of that better-than-expected earnings report. you can see year-to-date, still down about

aaron is here looking at samsung still? >> yep, samsung pretty much off a cliff. hello, geeta. samsung has warned it's had one of its toughest quarters for years and will see profits plunge by some 60%. now, it is the smart phone business that's being squeezed by fierce competition from apple's premium smart phones. the new ones, the biggest greens. and also undercut by chinese rivals. much cheaper, like lanovo. to combat this downturn, samsung has announced plans to invest some $15 billion into a chip-making factory, a move that samsung hopes to hold on to a lead position in that market, also to offset the decline that it's seeing at the moment. we'll have more on "gmt" coming up in just over an hour's time. how about this? the bank of japan ended its two-day meeting on a bit of a mixed note, because the board unanimously voted not to increase the country's economic stimulus package. however, the central bank delivered a cautionary line on the world's third largest economy, offering words of warning about the slowing housing market and weakening industrial output. basically ja

[crowd cheering] see the perfect shot before you take it with hdr preview on the samsung galaxy s5.g thing is here. >> stephen: well come back, everybody! and my guest tonight has a new book called "the innovators" about the history of the computer. in the early days, you had to watch pornography on punch cards. please well come walter isaacson! (cheers and applause) thank you very much! walter, thanks for coming back! no need to get up. you're one of my more impressive guests -- and i've had presidents and popes on here. you're the c.e.o. of the aspen institute, which means you're a bonzillan, former chairman of cnn, former editor of "time magazine," written about steve jobs, and you have a book called "the innovators," how a group of hackers, geniuses and geeks created the digital revolution. how do you differentiate between hackers and geniuses and geeks? >> a hacker has a whole lot of fun. we sort of misuse the word hacker today. >> stephen: they're dangerous people, like cyberterrorists, aren't they? >> no, they know how to do pranks and short cuts on theaters. i'm trying to re

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samsung does not make the android operating system. it comes from google. google just tries to monetize through searches. in most businesses today, this is trying to become more direct with their customers. that's a theme on the internet. we were building software to sell to harvard guys to sell to retailers to sell the consumers. -- to sell to hardware guys. the feedback loop had two layers at least of people who wanted to change and morph it. apple built the hardware in the stores. they were direct. there was not two layers. samsung built the hardware. they basically took over android from google and build everything. that was their experience. indirection is tough. in this century, people are learning to be very direct with their products. ♪ someone told me that yahoo! had a chance to buy google early on. larry wanted to go back to business school. >> i know the price. $1 billion. >> larry and sergei wanted $1 billion. like $800they offered million and they said they wanted $1 billion. that's the price. capitalism, but here's one. did you have a chance t

it doesn't mean samsung owns the business.ve been very innovative with the thinness of the screens and things like that. and they have got manufacturing all over the world. when google got into phones people made fun of it. maybe they will be good in. but it's a tough business it. really is hard and dominance does matter. but you never know. maybe they are trying to spur innovations in technology with this lego. it's so google, the lego idea. so wow. and ooh look at what they are doing now. whatever. they got the money from search. and the poor people over in search handing them the cash to do this. it's fine. they are rich. they can do that. >> finally, one 35,000 square foot high question. we've had the bill girlies of the world say cash burn ratios are too high. more volatility in stocks. the nasdaq and big high flyers give back lot. is that a emotion or feeling creeping into the valley? >> there was a fun valleywide head line that says --. and all of these people have just raised a lot of money, which is interesting. they

samsung doesn't make the android operating system. it comes through google, and google tries to monetize through searches. in most businesses today-- this is a business school lesson-- most businesses today are trying to become more direct with their customers. that's a theme on the internet. we were building software to sell the hardware guys who were selling to are taylors to sell to consumers. that is not very direct. the feedback loop from our innovation to that customer had two layers at least of people who wanted to change it and morph it. apple built the hardware, built the stores, they were direct. there was not two layers between them and their customers. samsung built the hardware. they basically took over android from google. they built buildeverything. that was their experience. indirection, tough. in this century, people are learning to be very direct with their products. >> rose: someone told me that yahoo had a chance to buy google early on. because larry wanted to go back to business school. >> that right. >> rose: thi

going toe to toe with samsung to make sure samsung was playing nicely. >> does it break the agreements>> i think he has proven himself to be a good diplomat as well. maybe laying down the law but sewing -- showing them some why it is a win/win relationship. >> he's very modest and says this is larry's job. he is clearly the number one deputy. i don't know if there would be any question if larry retired tomorrow that it's not a role he would want. >> and youtube does not count in this. google has always had this second layer but do you see a rising second-generation of leaders? >> that leadership team is all veterans. >> most of them have been there since the beginning. it is a leadership team that is incredibly loyal to the company and i don't see them going anywhere anytime soon. >> let's talk about his track record and how successful those products have been. >> and has been successful. you got the toolbar that started google's move into the browser and then you had the chrome browser, the market leader today, making up a lot of ground on internet explore your. >> and crushing safari

switch now and get the samsung galaxy note 4 for zero down.s without a prescription for frequent heartburn. get complete protection. nexium level protection™ here's the situation-- a contaminated energy drink has turned everyone into mutants. - ( roars ) - all this place needs is a hero. one who doesn't just survive, but does it with style! - ( rock music playing ) - ♪ i can't hide ♪ ♪ i'm too high ♪ ♪ ain't time for a drive-by... ♪ can you save sunset city? of course you can. it's a -- video game. announcer: rated m for mature. ( announcer speaks ) (cheers and applause) >> jon: ladies and gentlemen, thank you so much. i just want to thank austin, the entire city, the zach theater. (cheers and applause) thank you so much. i want to thank whatever process is used to smoke meat. (cheering) i honestly feel like a snake that swallowed an animal whole. and i may not eat again for weeks. but you guys, would you do another? >> yeah, we could do one more. >> jon:spoon! it's their new album "they want my soul." thank you guys again. ♪ ♪ ♪ i was on 45th

here with more on samsung's latest results is caroline hyde.not a good quarter. >> profit down 60%. ugly is how many people estimated it to be. it was a difficult quarter. profit -- thated was more than had been expected. the biggest drop in quarterly profits. that is when they started abiding by new rules. the run-up to these numbers, two thirds of the analysts that we track had already cut estimates on the outlook for samsung. they had anticipated this mess and largely is smart phone shipments. the profitability is falling. they are having to spend a lot more are kidding. it is all about apple have got bigger phones come of that is where simpson has dominated in terms of the size of the actual screen. if you have a lenovo, all these cheaper but still pretty dropped phones eating into china. >> they are being snapped up from the bottom and the top. they do everything under the sun. how do they fight back? is it -- they have launched a new phone, what have they got to do? >> analysts think that new phones will help. analysts are looking rather

samsung really is the story. samsung is a very popular name.you have a falling japanese yen that doesn't bode well for domestic currency there. smart phone sales for samsung declining. >> mcdonald's and yum brands falling. >> i don't know if yum pops on the too much expectation of a negative quarter. chipotles of the world are doing it. >> the traders go under the radar with three things to watch in today's market that might be missing. >>> these kangaroos mean business. look at that. the street fight that could have you booking a flight down under. today's worth trade and final trades up next. they're still after me. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four