of global smartphone revenues, anywhere between 60 and 80% of global smartphone profits. apple really does consume a huge chunk of the bottom line for the mobile industry. >> hans, this comes at a time when samsung may be having an existential crisis in the smartphone business, where they are looking at their overall business, drastically reducing the number of phone they offer. >> i think it stems on samsung being stuck in the middle. apple is coming down with better branding and better ui. from the bottom up, sometimes it is focused on just 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

samsung is still the world's largest smartphone maker with 8% market share.hat is down in the third quarter. samsung semiconductor business is booming with $15 billion in the new fabrication plant for semi conductors. samsung has made a huge push into the internet of things. the co-ceo spoke earlier this week at ces. >> in 2017, 90% of all samsung products will use these devices. that includes mobile devices and televisions. >> has samsung found new revenue streams as its cell phone business is contracting? joining us is brian blair. glad to see you are surviving ces. apparently razr is not surviving. that is the first casualty. you look great. i think it is really interesting, samsung is reducing the number of phones they sell as they try to remain the most important company in cell phones. >> look at that apple model, apple has just one phone. they really have three a few think about the different sizes. -- if you think about the different sizes. there is something to be said about simplicity. at one point nokia -- it is a lot of work to manage the componen

not everyone can use smartphones. a tech company has created the first ever touch-free phone. paralyzed users can now control their gadgets. >> this engineer fell off a letter and has been confined to a wheelchair ever since. he now can use a smartphone. >> this age of technology --all the features with the internet on the phone. >> he coinvented voice command which works on the world first totally touch-free smartphone. you can operate the phone by human movements. he can now use most applications and enjoy the probably see -- the privacy of making his own calls. >> we couldn't even tell he was moving his face. we did a lot of work on the algorithm. >> he and his coinventor hope the technology can be applied to everything that requires touch even driving. >> there's been a long period. i had to take care of every aspect of his life. and now he became more like the father i knew. >> he says he is a man reborn after getting access to a smartphone technology so many of us take for granted. >> that is quite a touching story. >> will hand the brand with the business update -- will

-- third-largest smartphone. >> xiaomi ain't so little anymore. it now trails samsung and apple in global smartphone revenues. >> last year alone, sales more than doubled. xiaomi is flushed with cash following a private funding round valley way the company at $45 billion. that is worth more than blackberry, garman, and intuit -- garmin, and intuit combined. xiaomi officially launched its first android-based system. in 2011 xiaomi took on the iphone with its first smart phone. xiaomi surrounds its product announcements with great fanfare. but how did they rise so far, so fast? the distribution model is bare-bones. phones are sold only online and not a dime is spent on advertising. that helps xiaomi undercut competitors on price. the companies facing criticism over the similarity to the iphone. the company is targeting a handful of global markets, but its success in china may not be easy to duplicate on the world stage. venture investors are betting that little rice has a big future. what does today's big announcement mean for china? hans tung joins

smartphone sales continue to stall, but dig a little deeper. maybe there is a still relying for the korean electronics giant. samsung is still the world's largest smartphone maker by market share, and the semiconductor business is booming with companies investing $15 million in a new fabrication plant. samsung has also made a huge push into the internet of things. the co-ceo spoke earlier this week at ces. >> by 2017 90% of all samsung products will be -- devices. that includes televisions and mobile devices. >> that is the question. has samsung found new revenue streams? joining us from ces is brian blair of rosenblatt securities. let to see you are surviving ces. apparently your razor is not the first casualty. you look great. i think it's really interesting that samsung is reducing the number of phones they sell as they tried to remain the most important company in cellphones. >> i think you should look at the apple model. they just have one phone. really right now they have three, with the different sizes, but there is something to be said

china xiaomi has overtaken samsung is the largest smartphone vendor there. august, xiaomi focusing on budget conscious markets in the developing world, while in the -- while avoiding western countries such as the u.s. and you ok -- and the u.k.. now the company has released several new products. they are working on a water purifier. an airve released purifier, and it is expanding overseas. this year they say they are going to try to expand to thailand, russia, mexico. analysts are saying while xiaomi could be the big global consumer , we have to keep in mind whether or not xiaomi will be able to break the curse of number three in the smartphone market. held thoseung, they two positions and we have seen htc and elway, they have slipped right back. >> their business model is different here. they don't have bricks and mortar's. they do everything online. it will be interesting how they transform itself from a smartphone to a more consumer products. >> and how they use that on my smart phone sales, those flash sales they have been using so far. >> thanks for tha

we could use a smartphone to get a cardio gram. >> you can use it for a lot. it's a central thing. if you think you are having an ar ith mia, instead of going to the emergency room you pull up your app for the cardio gram and you have that you put your fingers on - circle with your heart, and you have a cardio gram. >> what do you do with it? >> well that cardio gram - you don't have to read it you have a computer algorithm built into the app. >> it's not that expensive. >> it's $69 and approved by the f.d.a. for consumers. it will save people with heart continues a lot of trips to emergency rooms or clinics. >> and you have the possibility of doing a sonogram and checking your blood pressure. >> yes, well in the next year there'll be a watch with every heart beat. >> constantly... >> you don't have to suppress start, it keeps going. >> that is nice about that. it can give you an alarm if it's too high or low. >> it shows up on your smart phone and has the contents of your life. if you were in sleep or traffic. that is extraordinary. instead of single occasional measurements you ge

and reduce the number of smartphone models. sony is aiming to return the mobile division to profitability in fiscal 2016. >>> well executives at apple have surprised analysts and really thrilled investors with their latest earnings report. they say both profit and revenue have hit record highs. the results were fuelled by good sales of the iphone 6 smartphone. the executives say in the october to december quarter the firm's net profit rose to $18 billion. that's an increase of almost 38% from a year earlier. and revenue rose to nearly $75 billion, up 29.5%. apple sold roughly 75 million iphones during the quarter. that's nearly 1.5 times the figure from a year earlier. apple's ceo tim cook said in an earnings conference call that the firm will release its wearable computer apple watch, sometime in april. >>> well japanese firms are promoting technologies for disoos ter preparedness at a conference in california. and like japan, the u.s. state does suffer from major earthquakes. local government officials and politicians gathere

you can take a smartphone app. and can diagnose whether your child has an ear infection. that's where things play. we don't have patients treating themselves, we are talking about showing up to the doctor, consulting the doctor to get guidance, wisdom and experience. >> so the patient gets the diagnosis from his apparatus and has the doctor do what is necessary to treat the patients. what does it mean for hospital. some say it means the ends of hospitals as we know them. >> i wrote about that in the book. hospitals are a vulnerable entity, not bus he used him. it will be as is. operating, procedure. but the regular hospital room will be replaced by your bedroom. you can do all the monitoring like an i.c.u. in your house and bedroom. it's inexpensive. there's no risk of infection. it's convenient. >> it's fascinating. it brings up interesting issues that could very well, as you say, change the world. pleasure to have you with us. again, the book is "the patient will see you now", it's available in book stores and online. we'll be back with more of "consider this". >> al ja

speaking of smartphones, china's largest smartphone maker enjoyed 2014. this event revenue doubled last year -- very same revenue doubled last year. take a look at their unstoppable rise. what is the secret? >> it is a big boost. you cannot beat good quality and low prices. they sold millions last year 68.1 million to be exact, and they say there is more. next week, the ceo will release the new phone and announce a key, important product. we do not know what it is but we will lockout. -- watch out. . they are valued at $34 billion but that could double to $100 billion. they say it has the same potential as facebook and alibaba. but low prices and value is not easy to create so their margin is lower than apple, 13% versus 22%. already the third-largest vendor behind samsung and apple. >> hoping the comparator samsung and apple -- how do they compare to samsung and apple? >> xaomi is catching up. as you mentioned, they are trying to expand through different branches. they started as a software maker but now they are making tv settops. they are producing wat

the chinese hand set maker unveiled a new smartphone.s said to be thinner and lighter than the iphone 6 plus. the ceo said he juans him to be the biggest smartphone maker within ten years. joining us on the phone from beijing is eunice. you're with us. take it away. >> thanks a lot. well xiaomi translates to little rice but they're not short of ambition. today it launched the xiaomi note which is going to be a direct competitive to apple's iphone 6 plus and they took the stage in front of hundreds and hundreds of people and he basically went speck to speck taking on the iphone 6 plus. it's going to come in two models. the base model in black and white but you can get the proversion in black, white or gold and the company says the phone is going to have a great camera, 13 megapixel camera at the rear and 4 mega pixel at the front and it's different from the iphone in that it will have quality sound. the biggest selling point is that it is going to be thinner as well as lighter and a little bit shorter than the iphone 6 plus. now this phon

the actually core smartphone business that blackberry is worth less over time.alue of their network. valuing this company is difficult right now. what samsung did is put a number out there that puts them -- it puts the evaluation of black -- back when blackberry was the blackberry everyone knew. based on what we are seeing blackberry is saying that is not close. we think it is worth more. we have a first volley and that is blackberry coming back and saying no, we are thinking of a much larger number. >> to some degree the beauty of blackberry or the eye of the beholder. there are certain comedies like samsung that could bring a lot more value out of blackberry because of those patents. for example, if samsung were to get some of the security patents that blackberry owns. the connected car things that blackberry is developing. samsung could make a lot more because they have so much market share in the smartphone business. it would have a greater value to a samsung that it would to another acquirer. it is worth noting that, if somebody look at the earnings over th

." >>> would you put your money in a bank you could only visit through your smartphone? meet the father/daughter team that hope so. >>> if you are like most americans you probably set a fitness resolution. we will talk to jenny craig ceo about diet, exercise andway staying on track with weight loss goals. >>> but as we head to break look at how the stock market ended the week. ring ring! progresso! it's ok that your soup tastes like my homemade. it's our slow simmered vegetables and tender white meat chicken. apology accepted. i'm watching you soup people. make it progresso or make it yourself. and try progresso chili. slow-simmered, homemade taste. ♪ >>> bancorp ceo jay sidhu ringing the closing bell at the new york stock exchange this week. he is part of a father/daughter team that is disrupting banking. they are launching a mobile only bank with no brick and mortar branches it is accessible on smartphones and tablets. jay sidhu is the chairman and ceo of both bankmobile and pennsylvania based bancorp. and thank you for being here. >> thank you. we're excited to be her

xiaomi has a very good chance of becoming the next samsung in smartphones.t some great manufacturing advantages. it's showing some incredible marketing savvy. so i wouldn't put them out of the running on a global sense by any measure. >> alex, it used to be a kind of two-horse race at the high end between samsung and apple and a lot of people thought for a while that samsung was leading in terms of innovation and sizing and cameras and all that stuff. now all of a sudden, these guys are coming out, on design, actually, and this is something that apple is very close to home with them. do you think when we get the iphone 6s next year, will apple have trimmed that camera. will they make it slick? will they start responding to this sort of stuff? >> what i like about what xiaomi did, it put the focus on that attention to detail, which is so critical for apple, because it has that premium reputation, and it is one of the few smartphone makers that earns a reasonable margin on its devices. so the bar is very high for apple, and that's where i think xiaomi got it r

but here, it's been changed for the smartphone. simply by tapping the screen, users can get product information on items they're interested in. major publisher -- has launched a new web magazine that's not based on a printed title. the firm put the wave fashion magazine for women straight online this month. it's also the first time for the publisher to employ a chief editor from outside the company. naoka osuka's books are popular among women in their 30s and 40s. >> you can read an e-magazine any time you want and you can take part by sharing information with your friends. >> reporter: with e-magazine, the publisher can also respond to the reader's questions immediately. the publisher also makes and uploads videos. the chief editor shows how to wear certain items with style. this can be hard to do in still photos. >> translator: ready? go. >> translator: when you tie the belt, keep the side with the buckle shorter than the other side. >> translator: lifestyles have changed. it's almost as if a publisher doesn't exist if it doesn't

are you too obsessed with your smartphone how do you break the adition? we ask dr.would was at surprised i read this college students for the love of god spent 8 to 10 hours on their smart phone. >> that is right. gerri: are you surprised by finding? >> i wish that i were. but i am not. that and i see both ends people who are addicted to their technology and people who having sexual difficulties and want to avoid sex there are both sides of that, sex is fraught withinsins intimacy, and all things that come up with that, do i want to be with you, i am angry with you, i don't want to bother. gerri: but unplug, get out of face-to-face. >> staying connected without being intimate, have you have these conversations but you don't have to deal with their day-to-day personalties, and the things that, now annoy you. gerri: is it really an,diction? >> they are what i call this, a soft addiction not a physiololl iphysio-- physiologic edition, but some of the things that go on dopamine it feels good. you look you get a reward, an e-mail popped up, someone just expected me, it f

and europe, but the smartphone markets, the emerging markets, if you really want to think about it, i many people in the u.s., you know need to buy another smartphone if they already do not have one? >> so among the investors in the most recent round was the very optimistic yuri milner the russian investor in a lot of big technology the buddies, with facebook, and also there in size in groupon, and listen to what he had to sing in terms of talking about that investment and how he chose it. he said, i was attracted by the size ahead of them. i do not think there is a company that has reached this as fast as them. in terms of its speed of growth. but, i would add that it is probably unprofitable. the company has made a point of saying, we are going to offer a top experience because our profits are so small. does that put the company in a little more risky than otherwise? >> one thing technology company's have been embarking on in the last few years is to make sure they have the biggest share possible. we do not know what they have in stock, but it is possible for them to offer some digi

. >>> smartphones are to adults as security blankets are to toddlers. researchers found anxiety, heart rates and blood pressure all increase when people are separated from their little phones. doctors also had phone owners perform simple word puzzles. they did worse when separated from phones. researchers suggest it could be soothing to keep our phones close by during difficult tasks. otherwise keep a healthy distance and turn them off at night. but a lot of people sleep with the phones with them. >> exactly. complaint leave themcan't leave them. >>> a mega movie star is giving thanks to his bay area roots.

he said he's hoping to be the biggest smartphone maker in the world in the next five to ten years. for "nightly business report," i'm eunice yun in beijing. >> that's a story worth following, right? that is ambition. that's it for "nightly business report" for tonight. i'm sue herera. thanks for watching. >> i'm tyler mathisen. have a great evening, everybody and we'll see you back here tomorr >>> the following kqed production was produced in high definition. ♪ >>> calories, calories calories! >> wow, it rocked my world! >> it just kind of reminded me of boot camp. >> i don't know what you had, but this is great! >> it almost felt like country club food to me. >> don't touch. it's hot! >> i gotta tell you, you people

the smartphone face was profitable for samsung back in 2012. much of that having to do with the lack of innovation coming out of apple. given that we've had the iphone 6 and sales have been much stronger than expected can samsung continue to stay competitive in the smartphone space? >> i think samsung has been a leader for a long time in the smartphone space. it should have adjusted its core weakness, which is a lack of software. in the next face of smartphones which is going to be attacked by apple at the luxury end and at the lower end, samsung is in a weak position. >> yes, the margin in smartphones is massive, but can't it shift, can't it evolve with the times and still be a tech giant for the next decade? >> i think what we can open is if you're not a first mover or a second mover, you're in trouble. if you look at the operating system for samsung or tvs, samsung is way behind. its operating system is way behind and i don't think it will be smart enough to catch up. >> when you view the samsung phone, you won't even know that operating sys

he said he's hoping to be the biggest smartphone maker in the world in the next five to ten years. for "nightly business report," i'm eunice yun in beijing. >> that's a story worth following, right? that is ambition. that's it for "nightly business report" for tonight. i'm sue herera. thanks for watching. >> i'm tyler mathisen. have a great evening, everybody and we'll see you back here tomorr >> this is bbc world news america. >> funding of the presentation is made possible by the freeman foundation. the newman's own foundation, giving all profits to charity. kovler foundation. and, mufg. >> build a solid foundation and you can connect communities and commerce for centuries. that is the strength behind good banking relationships.

." >>> would you put your money in a bank you could only visit through your smartphone? meet the father/daughter team that hope so. >>> if you are like most americans you probably set a fitness resolution. we will talk to jenny craig ceo about diet, exercise andway staying on track with weight loss goals. >>> but as we head to break look at how the stock market ended the week. thank you cable. for the slower internet upload speeds. for making me wait longer to share my photo albums. thank you cable, because if we never had you... we wouldn't know the incredible difference verizon fios makes. the numbers don't lie. in customer satisfaction studies, fios is rated #1 in internet speed and reliability, and hd picture quality. get a fios triple play online at an amazing price guaranteed for two years and get a $400 bonus with a two year agreement. hurry! it's your last chance! this offer ends january 17th. call the verizon center for customers with disabilities at 800.974.6006 tty/v ♪ >>> bancorp ceo jay sidhu ringing the closing bell at the new york stock exchange this week.

muni riders will soon be able to use their smartphones to pay for their fares. the agency is launching a new app that will allow riders to use their credit or debit cards to buy a ticket. managers will be able to show their phones to drivers as proof of payment. a spokesman for muni says the new app will also allow for faster boarding. muni plans to launch the service this summer. >>> well, she says s is one of her top priorities. coming up in the next hour of

i believe that why they don't build the tv goes back to the power of the smartphone, which is, a smartphonerade cycle is two years. i think what apple figured out is the upgrade cycle for tv's is five years or 10 years. the tv, effectively, is fated. the tv will become a dumb peripheral for the smartphone. you will use chromecast, one of these things, and beam to the tv. the tv will be the dumb recipient of the content. i think they think that is a low margin business that other people can pursue. >> what is the future of elon musk? >> obviously he will build the iron man suit. [laughter] i think it is obvious. obviously, in the suit, he will fly to mars. [laughter] so he has some work to do between here and there. there is basic inventions he still has to master. there are three guys, three founders who are really revolutionizing. we are a lucky industry. we have all these people who are incredibly well-known known and built these amazing companies. marc is certainly one of those. peter thiel, elon musk, and larry page -- you talk to them and listen to what they say or read the stuff they

smartphones are prevalent now both for the consumers to be able to place their order from smartphoned their devices. and then personal shoppers use this smartphones actually do the grocery shopping for the customer. that's a big changes well. >> i can tell you how many venture capitalists have sat in that chair and read i'm sick of hearing about the uber of this and the uber of that. but it really is a uber like model. the consumer uses the technology on the front end. >> is very convenient for the customers to be able to place their order from local stores that they know in their neighborhood. and having fulfilled by one of our personal shoppers, who was doing this is a job supplemental to maybe something else they are doing on the side. >> one of the interesting things, going through the experience, was that certain items didn't scan correctly, or certain items weren't available as requested by the customer. it really involved that person who knows what they are doing, shopping for the goods and services. was that a learning experience for the company? >> i think so. had to ensure

smartphones are prevalent now. people can make orders via smartphone, ipad.nd the shoppers use the smartphones. to do grocery shopping for the customers. that is a big change. >> i cannot tell you how many venture capitalists have set in that chair and said, i am sick of hearing about the uber of that and this. but this is really an uber-like model. where both the consumer and the provider is using the same technology. >> right, and is very convenient for the customer to place the order from the local stores that they know in their neighborhood and have it pulled by one of our personal shoppers who is doing this as a job. supplemental to something else they are doing on the side. >> where the interesting things going through the experience in the store, certain items did not scan correctly or some were not available in the size requested. it really involved that sort of person who knows what they are doing shopping for the goods and services. was that a learning experience for the company? >> yeah, i think so. we had to ensure we are training our personal sho

he said he's hoping to be the biggest smartphone maker in the world in the next five to ten years. for "nightly business report," i'm eunice yun in beijing. >> that's a story worth following, right? that is ambition. that's it for "nightly business report" for tonight. i'm sue herera. thanks for watching. >> i'm tyler mathisen. have a great evening, everybody and we'll see you back here tomorr gram was provided by the health trust working to make silicon valley the healthiest region in america for everyone. and by first 5 santa clara county. first 5 santa clara county supports the healthy development of children prenatal through age 5. you've already heard the news: obesity is way up and so are diabetes and other diseases. they say it's all because we eat too much, we aren't active enough. well, it's time for some sweet revenge because it's not our fault. the truth is that all calories you eat are not equal. in this program, dr. robert lustig explains the truth

i-cracked is a bay area based business that in offers on demand, on location smartphone repair.eir website and ask for a repair, you see the picture of the certified and vetted technician that will be calling up to set an appointment. you choose when and where to meet. it can be in your home, at your office, be a car, a parking lot. a nearby cafe, wherever you want. they will come to you. most repairs take less than 30 minutes. i used an iphone sick with a cracked screen to test out their service. he opened up the phone and got to work. this is what the inside of an iphone looks like in case you're wondering, and this what is the home button looks like when it's removed from the phone. ten minutes later he was attaching the new display screen to make it was fullily functional. it's around $130, give or take, and very convenient. in some cases, you might pay $20 or so extra for the convenience of 0i-crack convenient to you. ed here has been with i-crack since the beginning and has fixed thousands of smartphone screens. so i had to ask him what the main caution of broken screens?

third smartphone maker behind apple and how did it do that selling cheap phones but the smartphones arecent quality. the company says it's going after the premium brands. today the ceo announced its latest phone, this is called the xiaomi note and they said that this phone is going to go directly head to head with apple's iphone 6 plus. now, the phone itself packs a lot of punch, a lot of new features, they say that it's going to have a 13 megapixel camera, 5.7 inch screen, another feature is going to be a high fi audio. another thing is just that generally they were saying this phone is going to be thinner, lighter, and just a bit shorter than the iphone 6 plus. the price is also attractive at $371 for the base model. but for the pro version, which is seen as the higher end model, that's going to go for $532, which is cheaper than what the iphone 6 plus goes for here in china. but at the same time it's much more expensive than the phones that xiaomi is phone for here. it's another way we're seeing xiaomi really go ahead with apple and apple's second largest market. guys? >> eunice yoon

but ipad down 18% for the quarter. >> if you have a larger smartphone screen do you need a tablet? >> absolutely. >> so in a way their larger smartphone is eat agoway sales perhaps from the tablet division. >> indeed. with apple's record results we're asking you is the company better than ever with ceo tim cook at the helm. >> let us know what you think. quite a bullish call there. get in touch with us. e-mail us with the worldwide at cnbc.com or you can tweet us at cnbcwx. >> to the positive side yahoo! made investors very happy by announcing it will spin off it's remaining $40 billion stake in alibaba. the shares will be transferred tax free into a new publicly traded company with the inventive name. the transaction is expected to be completed in the 4th quarter of the year after a lockup here. it's been a focus for the company. >> after an exhausted review we're pursuing this transaction as we believe it maximizes values for shareholders and optimizes efficiency and certainty. >> days before alibaba reports it's earnings chinese regulators criticized them over the selling of fak

need to buy another smartphone and don't already have one?stors in the first round the first russian investor in technology. listen to what he had to say in terms of talking about did that to investment. he said he was attracted by the size of the opportunity. i don't think there is a company that has reached $1 billion in revenue as fast as xiaomi. but, i would add that it is probably on profitable growth into the company has made a point of saying we're going to offer a top experience because our pets are so small. is that the future of the company in a little bit more risk than it would be otherwise? >> they are trying to make sure they have the biggest mind share possible. they might offer some digital services. gaming. internet videos. once they have a huge customer base they have established the phone as a delivery device not a profit center. >> so they are profiting from the goods and services that come across the phone? >> i would say so. >> so we should be looking for other investments from xiaomi that might not pay phone-related, bu

analysts say 2015 could see the number of smartphones top the $2 billion mark globally, making up over 80% of internet usage, and emerging markets like india, pakistan, nigeria are looking set to knock countries like britain and the united states out of the top division of smartphone nations in the coming year. >> we are seeing a global present. there's a slew of them. we'll see more of a push into markets such as india, places in africa, south america, and just more of a global presence for digital only media. >> the story with a new government, more economic development attracted western media. buzzfeed, india, "huffington post", and others are covering india in a more significant way. as a result indian audiences have more choice than they had before. that's a healthy trend. >> one of many trends to watch come. >>> that's the "the listening post" kick start for 2015. next week, back to the usual format, monitoring the global media, covering the coverage of new, and question dominant narrative that media outlets behaviour around the world. see you then at the "listening post". >> i t

it tracks criminallial impacts -- cranial impacts and sends the data to your smartphone. it won't tell you if you had a concussion but it will tell you the likelihood of an event. you can take that to your doctor and get it looked at like you should. >> what is that egg shape by your left hand? >> reporter: i was going to ask what you think it might be. any guesses? >> looks like a big thermos. >> or a space heater. >> reporter: the thermos is pretty close. what it actually is, a wine chiller. it's a single bottle wine chiller. you put it inside. it works over blu tooth with your cell phone. different wines, different temperatures. when you're ready to go, you just pick it up and it will stay at the temperature for ten hours. >> you mentioned something about a smartphone. i've been to ces and phones are all the big rage. what's the latest thing in smartphone technology? >> reporter: phones are all the big rage. this is the lgt -- the flex. it's curved so it's got that wow factor but it also has a self-sealing back. you stick it in your pocket and you have keys or change a

smartphone user downloaded zero apps. >> ha ha! >> per month. in a world -- how do you reach new users when people aren't using -- aren't

chinese customers are still willing to pay premium prices for their smartphones. "the performance of the iphone is worth the price," he says. "boy now we are all used to the operating system so we don't switch brands." "my dad bought me the iphone," he says. "i like it. apple is aggressively expanding its storefronts in china offering a new massive store in china this week. too much fanfare. despite its rock star status, apple still faces challenges in china from government regulations and competitors like an upstart company that is selling incredibly well in china. still, with more than 800 million smart iphone user in the country, the sense is there are plenty of profits to go around. david mckenney, cnn, beijing, china. >>> and apple's smartphone appeal is global. let's take a closer look at the company's success. we turn to melissa chow in singapore, senior researcher manager with idc's worldwide mobile devices. up this for your time today. we want to zoom in to analyze what is making apple so successful at this time. and david mckenney kind of set this up for

. >> almost every consumer has a smartphone, how do they protect the smartphone, especially when youread reports of people hacking into the camera and getting it by reading the reflection in your eye. >> we use biometric authent sayings which reads the -- authent indication which reads the fingerprint. it would be difficult for a hacker to gain access to the information. the important thing is the encryption key is located on the device itself. that. they'd need the device. the hack is in a different country, it's virtually knock to penetrate the vault. >> thank you for joining us. thank you. >>> last week an egyptian court overturned cases against three of our al jazeera colleagues imprisoned in egypt and ordered a retrial. they have spent more than a year in detention over charges of supporting terrorists. two of our colleagues, mohamed fadel fahmy, and peter greste are petitioning shap egyptian authorities, based on a degrease to allow prisoners to deported. >> it acknowledges that the first trial was flawed. >> reporter: from australia, the brother of gaoled al jazeera journalist

need to buy another smartphone or don't already have one?the investors in the most recent round was the ever optimistic uri gelner. he was also in groupon so listen would he had to say in talking about that investment and how he chose it. he said -- i would add that it is probably on profitable growth and the company has said we offer a top experience because their profits are so small. does that put the future of the company in more risk than it might be otherwise? >> technology companies over the last several years are embarking on making sure they have the biggest mind share possible. they might offer some digital services or gaming or some kind of internet videos on the platform was they have a huge customer race. >> in other words, established the phone as a delivery device not a profit center so you can profit from the goods and services that come across the phone? >> i would say so. >> should we be looking for other investments from xiaomi that are not phone related? >> yes, we have heard rumblings that they have tied up with baidu an

smartphone user downloaded zero apps. >> ha ha! >> per month. in a world -- how do you reach new users when people aren't using -- aren't downloading new apps, and in many cases are using only a handful of apps that they find on their home screens? >> the good news is there are literally billions of apps being downloaded. so, there are definitely people downloading apps. so, you know, we have, for example, 250,000 new users every single day on flipboard that are coming in and setting up flipboard. so people are definitely still , downloading. but i also think you have to figure out, you know, smart strategies, so, for example, our publishing partners help promote flipboard. you need to make it in other people's best interests to promote your app and create an ecosystem ideally and that will help get you to rise above the noise of a million apps or so that you could possibly you load. -- that you could possibly download. >> two questions i want to make sure we get to. one is about the future of your economy. one is your own future. so the future

in the smartphone business, that could be worth a lot going forward.he patents they have are around things we are concerned about right now, which is managing wireless spectrum, security, and the physical fundamentals around how you actually -- what you can do with a smartphone, things like keyboards and other ergonomic issues. when you look at the different parts of the business, samsung is an interesting company. they are into security like no other android supplier is and they want to differentiate on top of the android platform. >> when you look at this company is there a sense they are doing everything they can to position is for sale? >> right now it seems like john has his head down, trying to position for growth. they are still kind of missing on sales. you knew look at where he's building, that hardware business is 45% of the business. service is 45%. the software side of the business is only about 8%. he is looking to grow it. he's doing that by going after a partnership like we saw with samsung a couple months ago allowing samsung to use bla