things began to look up again and apple gained a cult following after the death of co-founder steve jobs tim cook went on to make apple historic stock market success. today thirty everyone has i phones i pads i products and or oil t. on the air is significant they have been able to continue to sell product increasing prices higher margins the question of course always is can they continue it you know what's the next product they'll have what's the competition doing you know with the joke being that the next apple competitor is an eighteen year old sitting in a garage somewhere for now though there are plenty of current competitors to worry about it earlier this week china while way over took apple as the number two three mart phone maker in the world. new legislation in germany will make online retailers like amazon liable for the sales tax of foreign vendors using their platform. and others would be obliged to provide vendor names addresses and their revenues to the german tax authorities if they don't comply the retail platform operators would become liable themselves for the taxes. should it b

look up again the devices the design winning apple a cult following after the death of founder steve jobs tim cook took over at the helm under his leadership apple became the biggest stock market success in u.s. history brings some new features today that the everyone has i phones i pads i products and no oil to be on there is significant they had been able to continue to sell product increasing prices higher margins the question a question always is can they continue it you know what's the next product they'll have what's the competition doing you know with the joke being that the next apple competitor is an eighteen year old sitting in a garage somewhere apple's still has its current competitors to worry about earlier this week china's while way over took apple as the number two smartphone maker in the world. and here is another tech industry landmark abyan b. is ten years old today the home sharing website has disrupted the travel industry like none other shaken up business models turning tenants until hotel is and putting small independent hotels out of business as one of the first to capitali

look up again the devices the design winning apple a cult following after the death of founder steve jobs tim cook took over at the helm under his leadership apple became the biggest stock market success in u.s. history brings some new features today that the everyone has i phones i pads i products and no oil to be on there is significant they have been able to continue to sell product increasing prices high margins the question of course always is can they continue it you know what's the next product they'll have what's the competition doing you know with the joke being that the next apple competitor is an eighteen year old sitting in a garage somewhere apple's still has its current competitors to worry about earlier this week china's while way over took apple as the number two smartphone maker in the world. financial correspondent daniel cope is standing by in frankfurt don where do you go from one. dollar. yes exactly where do you go when you take a look at the earning reports this year guarantee apple delivered and delivered that's why investors are actually telling us that they find the curre

look up again the devices the design winning apple a cult following after the death of founder steve jobs tim cook took over at the helm under his leadership apple became the biggest stock market success in u.s. history brings some new features today that the everyone has i phones i pads i products and no oil to be on there is significant they had been able to continue to sell product increasing prices higher margins the question of course always is can they continue it you know what's the next product they'll have what's the competition doing you know with the joke being that the next apple competitor is an eighteen year old sitting in a garage somewhere apple's still has its current competitors to worry about earlier this week china is well way over took apple as the number two smartphone maker in the world. on its go straight to our markets correspondent cold in frankfurt. that one trillion that sounds very impressive but what does it actually make. yeah indeed it is a very oppressive i actually had really to think how many zeros they are after the one of the enter figured out when you put this

look up again the devices the design winning apple a cult following after the death of founder steve jobs tim cook took over at the helm under his leadership apple became the biggest stock market success in u.s. history brings some new features today actually everyone has i phones i pads i products and no oil to be on there is significant they have been able to continue to sell product increasing prices higher margins the question of course always is can they continue it you know what what. the next product they'll have what's the competition doing you know with the joke being that the next apple competitor is an eighteen year old sitting in a garage somewhere apple's still has its current competitors to worry about earlier this week china's huawei over took apple as the number two smartphone maker in the world. competition never sleeps and here is another tech industry mark b m b is ten years old today the home sharing website has this robs the travel industry like none other shaking up business models turning tenants into a hotel and putting small independent hotels out of business is one of the

who do you think deserves credit for this, is this the journey that steve jobs put apple on or can we thank tim cook to fill, and i think today's news shows tim cook is billing them very efficiently, very admirably. he's very good on execution. what is it that he's executing then?” he's very good on execution. what is it that he's executing then? i think he's managed to keep the momentum going. the brand loyalty for apple, their building on the fact apple is an iconic american brand and their managing to sell it and keep that prestige, that cachet around the world and get that average sales price, which shocked many analysts, of $724, and largely to do with the iphone x, or some people call it the iphone x, or some people call it the iphone x, or some people call it the iphone x, that is the most popular phonein iphone x, that is the most popular phone in most major chinese cities today despite, as dave pointed out, some much cheaper rivals from china. of course, the iphone is ubiquitous, is there not a point when you reach saturation and the company can't really sell any more, expand into any more

fouryears later, steve jobs died, tim cook took over and a lot of people said can they carry on makingress? we talk about the success of apple, a phenomenal success , the success of apple, a phenomenal success, the success of the iphone. so much credit put on the shoulders of steve jo bs so much credit put on the shoulders of steve jobs and so much credit put on the shoulders of stevejobs and the english designer. but how much credit should we give the business acumen of tim cook, who took over the helm in 2011? of course, we have also seen huge growth in terms of their cloud storage, selling apps, music streaming etc? what he has done is basically take this extraordinary product and integrate it into an amazing financial machine. apple's whole logistics operation, the way it integrates the chinese manufacturing operation with its design in california, he has made that tick over smoothly. he may not be the inspirational figure that steve jo bs be the inspirational figure that steve jobs was, be the inspirational figure that stevejobs was, but he has grown a whole new business in servic

very underrated and very understated because he believes the product speaks for itself not steve jobs and not tim cook. the product. and obviously, and jobs may be the greatest mind of all of our lives. but what tim did and tim does is say i will put out the best possible product and that will develop an ecosystem. that will develop a service revenue stream but i won't put out a product that is not any good i will put out a product that presents 98% satisfaction and nothing less thing of all of the products trying to reinvent, come up with the best products. tim will reinforce, look, if you put out good things, good things happen it was great when i spoke with him when josh and i had the privilege to have this great call, we kind of go over what's going on in the quarter. the reaction to that and looking at it, there are volume restrictions about how much we're allowed to buy. and the stock doesn't trade that much think about this, volume restriction. doesn't trade that much. i mean, you know, what he's saying, then he followed up by saying, look, i think the stock is undervalued the thing is we're go

if you look at bill gates, he had an extremely good operator if you look at steve jobs, tim cook hadat worked so i think that's a fundamental. but that alone is not enough it's not a solo, it's a choir. you need to have a strong team that plays all the roles, all the positions are played well. so it's back to this point that it's just not a solo sport nor is it just two people who can do the whole thing it's team building i think at an executive level and i think that's important here. >> when we consider the polarizing debate we have on this stock like we had in the first hour, it seems almost everyone has agreed the stock, whether you're a bull or bear, can benefit for some kind of change in leadership if we see a change indeed so the people believe he's the genius behind the company don't get bearish, but also there's the operational help, how much could that be worth in stock terms are we back to 420 >> that has to prove that it works in demonstrating the production remains on track. all the tangible things you have to look for. i think in refreshing the board or enlarge the boar

if you look at something like apple and have someone like tim cook. steve jobsisionary and tim cook nature all the factories were humming along, apple was doing good deals. tesla clearly needs someone of that caliber to come in and fix the machinery of the company, and e line can do his elon thing. tois impossible for me imagine tesla without him and for it to have anywhere near the same value or cachet or brands. .mily: bloomberg's ashlee vance one of the most anticipated --stions since musk tweeted funding secure -- what does the sec doing about this? there have been multiple reports of ongoing inquiries. for an insider's view, we spoke to theresa goody. she served as an attorney for the sec. teresa: the inquiry is serious if they are issuing subpoenas, so there is a formal investigation in place. once there is a formal investigation, that is when you get the subpoenas. thethe sec is acting very swifty and quickly and pursuing this investigation full force ahead. secured?" teresa: the funding secured thing, that you have funding secured when you do not as $420

the products for all of the concern people had in the transition away from steve jobs to tim cook and notion that somehow they would lose their magic on product, that hasn't actually happened. to me the future for apple is it remains very bright. i think there's a very real chance as this privacy stuff becomes better understood, consumers will shift away from android and to iphone products and to the apple ecosystem simply because apple has demonstrated a serious commitment to its customers, not treating them as users, not treating them as the product but treating them as actual customers. >> roger, what do you think the psychological impact of an apple hitting the trillion dollar mark could be in terms of other companies potentially doing it, amazon, alphabet, some other big cap tech names do you think if we see one cross the threshold, do we see more behind it? >> i think we're going to see amazon cross it before long. i suspect the magic of the number will disappear. i think the real question is how long does the market cycle last, and morgan, i don't have any idea on that if it la

combined with ordinary logistics and -- extraordinary logistics and execution on the part of tim cook. steve jobshe ball rolling, but you have to give tim cook credit for being able to have this many products that are this good and do it so consistently, and the results are showing it. is it going to be smooth sailing though? just about every company that is part of the global supply chain is concerned about trade tensions. craig said on think we can be smooth sailing -- >> i don't think we can be certain it will be smooth sailing. i suspect it will continue to build iphones that people want to five. .- to buy the fact that they assemble all their products in china is a cautionary fact we have to keep our eye on. it's not inconceivable apple could get caught up in the midst of that. able toare they will be navigate it, but we don't know. ramy: we have been talking about how it's the era of and services. how do you see that playing out with so many competitors out there? >> they are still fundamentally company, but other business has been taking off amazingly well. certainly, apple music is neck a

he deefs a lot of credit for steve jobs vision and probably the greatest execution that's ever been accomplished >> tony, do you think tim cook gets the credit he fully deserves >> you know, i would say he has a tough -- as many innovative products to market as steve did. and tim has done a great job in take iing a 150 billion tlrs revenue company and continue to create new avenues for growth and continue to sustain profitability. so it's a different era at apple. a company that is now an enormous company, which requires a different set of management skills and i think at times, tim is not appreciated as much for those contributions. >> bobby mercer was a fine ba ballplayer, tony wasn't mickey mantle didn't make him a slouch by any stretch. i get where you're going with that john, you wanted to say something? >> i was going say that steve was always out to take a huge risk and push the envelope as much possible and he turned out to be right in hindsight tim actually leads a little bit more from behind he doesn't try to you know, invent the next new thing that happens, but he's created a machine of earnings capability that's u

mark, you also make the point in your story that tim cook has had a lot of successes, even though he has caught a lot of flack for not being steve jobs. mark: this is no accident. when you remember that tim cook took over as ceo back in the fall of 2011, there was so much talk of, is he going to steer the company to new heights? is he going to be able to do more than stabilize it? at the same time, there was a lot of talk of, will he let this company go? will it become a company that became under john scully and other past ceos who succeeded steve jobs originally? the answer was a resounding no. this is that a market cap that was three times what it was when steve jobs passed away, and that is just a number, but the numbers are still representative of this historical marker, which represents so many new products over the years, apple watch, etc. emily: apple isn't the first company to hit the trillion dollar mark. it was actually petrochina, which fell as oil prices fell. caroline, you are digging into other historical markers here, and having the highest market cap isn't necessarily the recipe for success. caroline: certainly not. c

mark, you also make the point in your story that tim cook has had a lot of successes, even though he also caught a lot of flack for not being steve jobs. mark: this is no accident. you remember when tim cook took over as ceo. was he going to be able to steer the company to new heights? was he going to do more than stabilize it? at the same time, there was a lot of talk, was he going to let the company go? is it going to become like the company became under past ceos who replaced steve jobs originally? the answer was a resounding no. this is at a market cap that is three x what it was when steve jobs passed away. that is just a number, but the number is representative of this historical marker that represents so many new products over the years, smaller products, the apple watch, etc. emily: you point out that apple is not the first company to hit the $1 trillion in market cap. it was petrochina, which quickly fell. caroline, you've been digging into some other historical markers. having the highest market cap is not necessarily a recipe for success. caroline: certainly not. cast your mind to microsoft a keyey text player, -- tech play

steve jobs referred -- returned to the fold. it was one success after the other carried in the seven years and jobs' death, tim cook has launched key new devices like the apple watch, iphone x. he has also pushed the company deeper into new services like apple music, which is now a key revenue. the team is in stopping there. they are keeping apple on the technological edge, self driving cars, augmented reality. cook told bloomberg in an interview "i don't really think about it. that is the truth. i still view apple as a pretty small company the way we operate. it is not numerically, but the carried totion is grow beyond $1 trillion, apple has to keep turning out cutting-edge smartphones while finding its next big hit and growing the digital services business. a larger version of the iphone x and a cheaper model with many of the 10's features are on the way. ar could revolutionize personal commuting again -- computing again while a great online video pushed is coming soon to an apple screen near you. more, here to tell us mark gurman and caroline hyde. you haven minnesota, covered this company for years. what does this mean? app

steve jobs as i recall. i want to talk about apple, often times tim cook is compared with steve jobs, unfavorably compared jobsechanic of apple. would you say that's fair criticism that he's not the visionary, that jobs was? >> no, he's definitely not the visionary but he is every bit talented in completely different arena, yeah. stuart: what's his talent? >> so tim is a great leader, he's a great manager, he's a great what i like to saw steward of what he was left by steve. today we have a company in apple that's unique in consumer goods whatever inia. they are what i call maybe first ever essential luxury brand and that kind of means two things, first the company bestowed upon consumer identity with social currency and two, it creates addiction, once you buy into the apple ecosystem your life runs on ios and can't and don't want to get out of it so he's created that and it's magical. stuart: built-in vehicle for money creation and profit creation that stretches into the future and it's because the services, the ecosystem, that's pretty much guarantied to grow just extraordinary strong, right? >> absolutely.

apple's if tim cook is steve ballmer. think about after steve jobs died in 2011. the market cap was $350 billion for apple, roughly. this has largely been done on the back of tim cook. the new products he's introduced, new services. and of course the buybacks play into that. but he has done a -- taken a much different tack in the way he manages this company. and investors have rewarded them for that. vonnie: when are we going to see something new from apple? mark: that's a good question. apple will be holding a big splash event in september. lots of new devices in the pipeline. three new iphones, a bigger phone that is going to have the look of the iphone x, but a bigger display. a lot of people in asia have been asking for that. that is very much a single device ecosystem. a cheaper iphone, for people saying the iphone x is too expensive. revamped model, a cheaper macbook laptop. but nothing new, nothing we haven't heard of. for things that are going to be game changers, we are looking at 2020-2021. that's going to be an augmented reality product, a headset where

makes apple different than other high-tech companies, i think tim cook has done something that really is the next step that's beyond what steve jobsve jobs created a loyalty with users that is unparalleled in the world what tim cook has done, he's built a loyalty with shareholders a shareholders and he's done it with the high prices that apple charges for its products, which he's earned with its apple reputation, with his product reputation and he's build a brilliant business model, he's buying back stocks, about $100 billion of stocks this year, he's has a huge reservoir of additional capital, he gives out dividends. so he doesn't have to be on the bleeding edge of innovation. remember, he's valued as a growth stock so he's positioned the company well, so he doesn't have to make a bet on does apple go out and buy tesla and things like that he can just watch the scale and see what's going to be important and adapt to them. >> it looks like there's th this ---microsoft, google parent, alphabet and microsoft do you have a guess who's going to get there first >> i think apple has about 10 times more cash than amazon. i think jeff bez

tim cook to step in. >> tim cook is the perfect person. that logistical expertise is exactly what he did for steve jobs. it's like a perfect match.le is considering a low cost laptop that will resemble the current mac air. a high-resolution retina display. also considering launching iphones and watches with larger screens in the coming weeks. samsung has overtaken zte in the battle for supremacy in mobile networking equipment. dell says samsung is now the the topchallenger to .hree, ericsson, nokia zte was hit by a technology ban in the u.s. this is bloomberg. ♪ i'm all about my bed. this mattress is dangerously comfortable. when i get in, i literally say ahh. introducing the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize air flow to keep you cool. hello bed of my dreams. order online we'll build it, box it and ship it to your door for you to enjoy. sleep on it for up to one hundred nights and love it! or you'll get a full refund. returns are free and easy. i love my leesa. today is gonna be great. re

what warren buffett told foxbusiness about tim cook, ceo, back in may that might've annoyed steve jobs but what made you money if you bought apple stock on what warren buffett said. another apple shareholder reacting to that tells us what is next in tim cook's kitchen. countdown coming right back. don't go away. ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. add-on advantage. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. >> apple financially is very

people no one can do it alone, and that's the weakness of entrepreneurs, look at steve jobs, the difference it made when tim cooks the operating executive that made apple go that operation has gone so smoothly even after steve tragically passed away, because of tim cook, he knows the business if there was a tim cook in the auto business, i think there are a couple out there, could really give him the freedom to go off and explore spacex and all these other ventures he has. he could be mr. outside, somebody's got to be the inside person >> one of the ironies of this whole episode is that it seemed as if elon musk was motivated by shutting out the shorts and get away from that scrutiny of the bears on wall street who kind of take apart his strategy and his business so after this, they're probably going to be more emboldened out there. the scrutiny of every production target and every move on the balance sheet is only going to be more intense now. >> i agree it will be more intense. you will no doubt see really two arguments going forward from here you'll see the bulls who will say look at market production, we're

charles: the idea, as the story is being written, that steve jobs was a visionary. >> sure. charles: tim cook is the guy who has been able to execute but what is the next big thing? >> you have got a phone coming out. there will be a phone this fall for sure. i don't think it will be as world-changing as the iphone x was. that was a big departure for them. they have this steady phone. the big question people have about cook, whether he can provide jaw-dropping moment. honestly it hasn't happened yet. he makes good products. there hasn't been steve jobs, whoa, moment. i don't think it will be this year, that is always something people are wondering, can apple make the leap. charles: have we given up on the watch being that product? >> yeah. i can't imagine it will pivot to world-changing product they wanted it to be. charles: you know this industry we develop, what could it be? >> yeah. charles: you have the phone, tablet, the ipad, all of these things made history. >> sure. charles: they weren't new per se but they were revolutionizing. >> you know, again, i know they have dipped into it a bi

success of its product like the iphone and ipad, as well as tim cook's leadership after taking over for the visionary cofounder of steve jobsing it iphone. >> but let's not forget that what is now the world's most valuable company was on the brink of bankruptcy as recently as the late 1990's. that was until the cofounder, steve jobs, returned to the fold. since then, it was one success after another. in the seven years since his death, the company was steered to new heights by launching new devices like the apple watch and iphone x. he has also pushed the company deeper into new services, like apple music. which is now a key revenue driver. and cook and his team aren't stopping there. they are keeping apple on the technological edge. delving into self serving cars, augmented reality and health care. what this he think of its latest milestone? "i don't think about it, that's the truth. i still view apple as a pretty strong company the way that we operate. i know it's not numerically, but the way we function is very much like that." to grow beyond $1 trillion, apple has to keep churning out cutting-edge smartphones while stil

one thing that really has happened that's different under tim cook than his predecessor steve jobs.a much more involved ceo with the financial management of this company. buying back shares.ingvian alsoy apple. when they don't have a killer product. they haven't had a killer product since 2007 when the iphone was released. but i'd never bet against april well all due respect to that man mr. wayne. >> let's talk about how and why apple has such a large market cap. >> the market value of bank of america, boeing, at&t, walt disney, volkswagen and ford combined is about equal to that of apple. is it a good thing for a company to be that big? >> sometimes when you get so big, you lose some creativity. that was some kind of a rap when tim cook took over in 2011. how are they going to move forward? but i also point out this is a trend in technology stocks specifically and the broader market. we refer to something called the fang stocks. it's facebook, apple, amazon, tf google parent aim alphabet. those stocks account for about half of the s&p 500 index's gains for the year, so this is a do

tim cook would make a good number two for the electric car company. >> tim cook is the perfect person. tesla, thatt logistical expertise is exactly what he did for steve jobske a perfect match. matt: let's speak to bloomberg opinion columnist and younger person alex webb to fill us in on what is going on. alex, he says it is just a dream. it is interesting. is there any chance tim cook will leave as ceo of apple to be the ceo of tesla? struggling.eally no, no chance. why would he go from ceo of the most highly capitalized country in history -- highly capitalized company in history to be elon's number two? like timeeds somebody cook who is operationally aware to go in and sort out all of the operational problems. it does not have to be tim cook, but somebody of that caliber to go in and get a grip. alex: this is the problem with the way tesla is run. they need a mechanic, an engineer. tim cook is a supply chain expert. tesla might have problems and supply chain, they are trying to reduce the cost of components. they have manufacturing problems. tim cook outsourced manufacturing to others in asia. get withld do well to those who make these cars, that would b

didn't think we need and are ready to buy with that being said, tim cook has done a phenomenal job of running the company. i think in terms of stevethe baton, he knew exactly what he was doing. and tim cook has run the company very well. >> do you think that the fact that apple has not made a huge splash in some of those areas you mentioned like the car or the home says more about, you know, apple's inability to see an opportunity there or the fact that those markets maybe don't really lend themselves to something and apple feels if it's a big enough opportunity at a profitable enough level >> you know, tim cook commented on the call yesterday that he does feel he has a presence in the home and that's through the iphone, through the apple tv, through the home pod but also through the air pads and macbooks and all that good stuff. so it's their philosophy i think that apple could do a better job at getting in the home i think apple tv is okay it could be better i think siri is definitely disappointing. you know, it's kind of become a joke at our office that siri can't pronounce a lot of our names and doesn't do a lot of things righ

influence on the overall look and feel sort of in a way that steve jobs did when he was creating the iphone, ipad, and the imac. collectively with tim cookt the head of the ship, the center of the wheel, that is how they get things done these days. >> the same day that apple reported earnings that helped send the stock to a benchmark level, we got the news that -- had passed apple in the volume of smart phone sales are there different categories with her spec to things like average selling price and so forth. do you perceive there to be any weakening or frailty in the apple ecosystem? the ecosystem, no. i think it is getting stronger than ever. i think it has become airtight at this point. how many people do you really know have an iphone that switch a way to android or other google phones or samsung? you go through the system and appleto it here at what has done his turn the iphone gradually into a hub where they can tell you a bunch of it to shuttle stop on top of it. let's say you upgrade your iphone every two or three years but every two or three weeks, you arecan tell you a bunch of o ryan app and downloading a new service and using

hailed as a visionary despite financial and production challenges while tim cook is often not known for not being as innovative as steve jobs>> which ceo is the best bet for now and the future we are joined by david garity. who do you choose? in terms of creating shareholder value i would think that tim cook is your guy, but visionary founder, it doesn't get more eccentric and perhaps brilliant than elon musk. >> tim cook is probably definitely the guy. you will not have as much excitement and hype as you get with elon musk. you will get steady growth year after year. >> david, which company would see a bigger share price drop if the ceo unexpectedly left? >> i think in the case of looking at the company you would have to say that elon musk certainly plays a larger role within investors perceptions at certainly tesla and on the private side with regards to space x. cook has been a very strong inheriter of the position created by steve jobs and for a company getting towards a trillion dollars at market cap it is 20 times the size of what tesla is now at about $50 billion. certainly elon has the passion and vision of a founde

steve jobs world? it became clear that wouldn't happen -- but now, seven years or eight years later, it is clear tim cooke to steer apple to new heights. new devices, this new services business, and many more moonshot projects to come. tim cook was clearly able to pull it off, to fill the shoes of a giant, one of the greatest investors -- greatest inventors in the history of the world. a great moment for tim cook personally, and for apple as a company. vonnie: i am so excited about hitting this number. it is psychologically important. it is going to be crucial to see how the business continues to sustain this valuation. int is needed from apple terms of more products coming to market, and as romaine was telling us, this is crucial. such a selloff, such pressure on the tech market. mark: the good news is we are starting to hear more about the plan earlier this week on their q3 2018 earnings call. the growth is slowing. they only grew 1% year-over-year in terms of unit sales. now they have this growing services business where they will make more out of the existing user base of nearly one billion iphones a