it looks just like an apple store. the person who oversees sales is a former apple retail executive, and when i walked in, i asked him, this looks like an apple store, and he said, carmine, it is an apple store, we're just selling cars instead of computers, but here's the point. i asked him, looks, the design looks exactly the same, but what is the theme, you know, what's the one thing that we're trying to get across, regardless of whether we're selling shoes or cars. he said, people have to stop selling stuff and think about how you want your customers to feel. we want people to feel good about our product. whether or not you leave having purchased the product, and that's the thing about the apple retail store. you can walk in today, credit card in hand, ready to put down $3,000 for a fully loaded new mac book pro, and after talking to you, if the sales specialist determines that's not the right one for you, you'll leave with a $1,000 mac book air. >> they are not on commission. >> they are not on commission and powered t

the fed act next. and will we see another blowout number from apple? coverage of the results coming up on "closing bell." the market at it's lows down almost 200 points today. the federal reserve believes that if growth does not pick up soon, the federal reserve will act in terms of providing more stimtlous this market. almost immediately the market reverses course, starts seeing a good rally, cutting the losses in half. financials the big beneficiary. that's where we saw a number of moves on the upside here reversing course at the end of the day. the do you down 103 points. the nasdaq down about 1% at 2862, and the s&p 500 tonight at 1338. it was those reports that the federal reserve is moving closer to act that lifted markets. we bring in strategy talk right now with david cudlan, david steinberg, and keith wertz. how important is new stimulus from the federal reserve right now? >> the market has been waiting for this announcement for a couple months now. the gdp being released -- i think the market is preparing the fed is preparing the markets for a

the whole apple thing is you buy the.ou buy the iphone, you buy the ipad, and in emerging markets they're not going to go all in like that. that concerns me. >> i agree with than, ron. i actually agree with you, guys. i actually think samsung is the apple of emerging markets. i think samsung is the one taking some of the best ideas of apple and probably going to deliver them at a better price point. but apple at 14 times earnings is cheaper than it's ever been. if i look at ibm and some other u.s. tech names that people get very excited about in terms of global growth apple is a better growth story at a better valuation. i'd be long apple against ibm here. >> and rich, i think if apple heard you say they're just a technology company or -- >> i like fashion. >> at 14 times earnings i think there's a reason it's cheap. investors are worried. there's something out there in apple. we just don't know what it is right now. >> worried. look at the move of the stock. and again, it's cheap because of the growth you're seeing in th

apples? >> this is astonishing, are we talking about the family past apple? >> both and the way thing danagers come together, yeah. >> kind of astonishing, again working on the idea that everything is passed down in families is it or is it not or is it coincidence. my father had a difficult relationship with his father from mexico. we knew our family had this chain of nurseries from mexico. i never understood because my father would change tg subject when his name came up. our grandfather was an orchardist at the turn of the century. >> which you hadn't even known. >> i didn't know it until i discovered this at the archive when i was trying to page through all of these things. then i discovered an obituary that had been written about our grandfather when he died when we were much to young to remember him. it was very, very long in the texas at the time. it detailed every, all the rare plants, specimen plants, horticultural, introducing them to texas. i was so excited about all of this. i used to say to my brother, this apple thing, you have gotten from your gr

and the five are apple, amazon, google and microsoft. what makes those the principal competitors is that they all own platforms on which other companies are building products and services said that they control these big egos systems in which are racists and services and software and apps. also competing with each other, at least in certain ways. you might say, well, apple is a harbor company. amazon mostly sells products and digital content. google is mostly search and advertising. and that's true, but they all are kind of in each other's business. they sue each other regularly. and so that is the big battle right now between those. >> host: when those five companies started they had one thing in common which is the did not care much about washington d.c. they did not have any kind of washington presence. now they all have a pretty prominent washington presence and growing. >> guest: yes. they not only did not care much about washington, they were pretty much determined to ignore government. at think it was sort of value to some extent,

the red. here's what we're following today. apple falls short. is the drop in the stock a rare buying opportunity? we're talking to a shareholder and the analyst who's downgrading the company. ford's europe problem. the carmakers continue to struggle as europe slams on the brakes. and netflix nightmare, if you watched the show yesterday, you made a winning trade on this stock ahead of the earnings. we're taking positions on the fallout today. welcome to the "halftime report." we're trading all of those stories with brian kelly, mike murphy, joe terranova and j.j. kinahan today. a call to break up the big banks by none other than sandy weill, the man who founded the financial supermakt. he made that stunning comment on cnbc this morning. >> i think what we should probably do is go and split up investment banking from banking, have banks be deposit-takers, have banks make commercial loans and real estate loans and have banks do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail. >> here with her first on

first let's look at the apples to apples bits. for starters, there's the wireless business.companies reported strong wireless results. whose were better? all right, across the industry, churn is on the decline. that's a key metric. the percentage of subscribers who leave during the quarter. for post paid customers, basically normal wireless subscribers, verizon came in at .84% while at&t's churn was .97%. higher. with low churn comes fewer new subscribers so another and verizon saw the gross subscriber additions decline for the quarter. that could change when the iphone 5 comes out. however, the really stand-out part of the wireless business for both was the margins. another's wireless margin was 48%. verizon was 49%. apple to oranges. they calculate them differently. on an apples to apples business they were roughly equivalent. that's good. at the same time both companies are looking to reduce subsidies for phones. they pay the makers of the devices. that could be a boon for business which we have to hope for. new additions cost real money which is why when we saw the gross

the beginning. then i began bombing him with questions about apples and fruit. there was one moment that did change things in my perception, which is we were walking one day, i worked the fields and packing house routine, 5:00 a.m. routine. we were walking at dawn with the pickers who were all working, my brother was walking ahead of me. i saw all the shades of green, i was able to get my own ego out of the way. i thought he is amazing. this brother of mine is amazing. he has built up something astonishing here. it was almost like he was no longer invisible to me. i could begin to see him. then when i watched him walking ahead of me, i realized he has the same gape i do. we are probably so much more alike than we ever allowed ourselves to think. that was a beginning moment for me. >> one of the narratives that runs through this book, particularly as he becomes more sick in the last part of it, you are the relentless, you are going to be okay, there is going to be hope, if i make enough contacts, i'll fix this. he is the almost unfailing despite his occasional req

the first time around for apple. and i think at some point you have to wonder whether they're going be able to keep it up. as far as the demand overseas it will not be there for europe. we see a lot of signs that the emerging markets are under pressure. i continue to be a little bit skeptical. i have been skeptical before and have been proven wrong time and time again. >> apple's impact in the afterhours session. about 120% of the nasdaq. it was a one off and beeel be okay. >> you're talking six months before the next product comes out. this is going to cause problems. it will cause problems for anybody who is long. i i think there are a couple of things. you asked the question will am tell us whether this is head winders a demand contraction. just as tim cook said on the previous earnings conference call, so optimistically, i would expect he would do the same thing this evening. he should be doing that. they have a con of capital and cash that they could put to work. that is a put under the market play itself. tennis

the session of about 1%. do you think as a technical strategist, mark, that apple does represent more than the apple store? does apple tell us something about the rest of the market? or is this just a simple apple story? >> i think it's a simple apple story. the stock bottomed at 586. it's not that big of a deal. they show great outperformance. until that changes, you need to stick with stocks that show price strength. >> thank you, we'll see you soon. thank you so much. >> thanks so much, a touch under 45 minutes to go. dow industrials at the lows of the day down 185. nasdaq weak as well approached a 1 1.5% decline. airlines taking off as you know, will consumers get fed up with flying and stop paying those fees? many people believe the housing market is the key to jump starting the market and the economy, and a new report could be just what the bulls are hoping for. tdd# 1-800-345-2550 the 5-day moving average just crossed above the 20. tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2

the real question is can apple be a serial category creator. we've got another couple iphone cycles coming, what after that? is it wearable computing? there's probably some crazy stuff coming and the stock will need it longer term. >> this is not a show me situation, correct, steve, my last question, you'd buy it right ahead of the numbers? >> i certainly would buy it for the next 6 to 12 before the numbers come out. this is a buying opportunity. >> steve, thanks so much. good to have you back on the show. >> thank you. >> steve's got a different time horizon. i think pete could speak to this, i think the option's market pricing in a 5% or so move. with the stock at 605, with the s&p weakening as we speak, the hope is they say something that disappoints folks, you see them move down to 580, which you've seen before and you get an opportunity to buy the stock cheaper. >> the stock was up as we said it was flexing its muscle a bit, in an otherwise down market but as the market has weakened overall, apple has gone into negative territory. let's fin

that's the real game changer is apple tv. but iphone is where the dollars and cents go. and how are they competing against android? that was what most investors are curious to see. >> should apple buy twitter? >> i think it would be an interesting combination. there's no doubt, scott. but on the other hand, when you look at what they have with itunes and the max store as well as bricks and mortar they contact people very aggressively, through various measures both on the internet and personally. so i don't know that they need to do that. i would think it could be more of a joint venture than them buying twitter. >> again, they have 155 million people that buy things on itunes all the time, scott. that's a lot more valuable to me than however many hundred million people there are on twitter that have never bought anything that are buying things through twitter. i'm making a difference shags there between the folks that are buying things every day, whether movies or music or whatever, i think those are far more valuable i-balls than just people on twitter. >> i think we're

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the death penalty. >>> u.s. computer giant apple and south korean computer, competitor, samsung electronics have entered a legal battle over smartphones and tablet computers. jury selection began at the federal courthouse in san jose, california. the firms have fought about 50 similar trials around the world since april of last year. lawyers for apple are asking the court to stop samsung from selling smart phones and computers in the u.s. and demanding compensation for the loss of market share. the apple side says designers at samsung copied the iphone after the smart phone hit the market in 2007. samsung's lawyer argue the iphone was not an original design and say people at apple based their model on others from sony. samsung counter sued. lawyers claim apple infringed on patents for communication technologies. the trial expected to take four week. billions of dollars and control of the u.s. smart phone and tablet market are at stake. >>> it is clear the apple/samsung face-off is getting more intense. the two phones are almost on p

apple the most important stock on the nasdaq. the nasdaq is weighted, apple is the heaviest. cisco is on the nasdaq index and it's part of the dow 30 industrials and it has investors worried as well. a day ago one of its little competitors spooked the company by moving into cisco's business. we'll get more perspective to these numbers and take a look at the shocker from netflix as well coming up in just a little bit. >>> scott, thank you very much. we have an update to some breaking news in southern california where people were bracing for some after shocks after a moderate early morning quake. when you sit on top of it it doesn't feel moderate. magnitude 3.7 quake striking two miles from marina delray, south of santa monica. we can tell you so far no reports of any injuries. the usgs says that quake may have felt stronger than it kwully was because of it's shallow yeppy center. >> a car with four children inside peppered with bullets after someone started shooting on interstate 80. we go live to hercules for more. two people were hit by that gunfire? >> reporter: that's righ

now apple is the most important stock on the nasdaq. nasdaq is weighted apple is the heaviest. folks let's look ahead on this on this apple crisis. this crisis such that it is could actually get worse because apple's disappointing numbers cover -- i got by desk calendar, april, may and june but the new iphone won't be out until october. meaning there are three more months of full financial quarter, july, august, september where fewer people will be buying apple iphones because they want that new iphone 5. as far as iphone sales it will get worse before it gets better. >>> this morning the san francisco sheriff's department is facing a brand new controversy. lieutena lieutenant being arrested on domestic assault. this arrest coming as ross mirkarimi is fighting removal for his own domestic incident with his wife on new year's eve. a commission has to decide whether or not ross mirkarimi should actually keep his job. >>> here's something you don't hear every day on a college campus, watch out for mountain lions. one of the big cats have been spotted recently off the uc berkeley ca

apple has been -- apple has had a few slip ups. much to the consternation -- for instance, magazine publishers and others, apple has not been willing to give them even your basic information unless you allow it. that is -- that has annoyed a lot of the magazine publishers. apple is more restricted, but they just ride that they have 400 million customers this credit cards they have. i do not mean that they stole the credit cards, but when you signed up as a customer at itunes, you entered a credit card. we have talked about companies like aol, dell. is one of the big five going to be a dinosaur? >> it is certainly possible. apple was 90 days from bankruptcy 15 or 16 years ago. 90 days. after being built wunderkind 10 years ago. they are probably the single most influential tech company in the world. they are highly profitable. market capitalization is enormous. google did not exist, you know, 30 years ago. anyone of these companies -- one of the things i love about covering the sector, people do fail and it is not a stigma. if you fail, you can

the u.s.. sam sung trying to show that apple copied the design from sony. this court case has high stakes. >> there is a chance that you will get yourself in trouble as much as there is a chance that you will deal a knock out blow to your competitior. the court is working with a jury pool of 72 to find 10 for the final jury. apple and samsung plan each to call 20 witnesses. the trial will run 10-20 weeks. juriors will be asked if they have a phone or tab let and connections to apple or samsung or read the book steve jobs biography. some wonder if samsung can get a fair trial. >> they will believe in the legal system. people will for the apple products. >> after an all-day process, 10 jurors are seated. and that meaning opening arguments will begin tomorrow. projected legal cost for samsung and apple is $20 million. in san jose, david louie abc 7 news. > apple is accused of stealing other ideas. apple's voice recognition system known as suri infringes on twus u.s. patents. they expect to be compensated based on the number of suri iphones that were sold. >> a

we saw part of the apple team going in. dozens of journalists from all over. >> this is a clear decision one way or the other. it will have a tremendous impact on the industry. it could free up many design elements or bod -- for broader use. it could also -- the decision went apple's way and could restrict the -- certain ideas. >> reporter: apple is alleging that samsung's tablets infringe on the trademarks and utility and design patent. samsung has counter sued and billions are at stake as the jury weighs designed in deciding whether samsung created an alternative or whether it copied apple. >> this trial may decide how much competition there is in the smartphone industry. if samsung apple's primary competitor ends up paying punitive damages that would be a very hefty blow for for any company. >> reporter: this could have an effect on the business land say as wells the consumer market place. one person told the judge he's an engineer for apple and that brought a chuckle in the courtroom. back to you. >> thank you. we'll be

the apple side says designers at samsung copied the iphone after the smart phone hit the market in 2007. samsung lawyers argue it wasn't an original design. they say apple based theirs from sony. samsung counter sued. lawyers claim apple infringed on patents for communication technologies. the trial is expected to take at least four weeks. billions of dollars and control of the u.s. smart phone and tablet market are at stake. >>> as court's gather the jury it is clear the face off is only getting more intense. the two firms were almost on par for global share of the smart phone market last year. apple had 18%. samsung had 17%. however samsung has been gaining momentum since the beginning of this year thanks to a new smart phone model the company launched in may. samsung leaped to 32% share for the april to june quarter while apple dipped to 16%. for tablet computers for the time being at least, apple had an overwhelming global share last year of 62%. what's complicating the two companies relationship is that apple is actually samsung's largest client. the u.s. computer giant relies on t

lee cbs 5 >>> the apple be taking aim at the social media market and, apple considering making an investment in twitter. the maker of ipads has not had much of a presence in social media an alliance with a sweater could give apple a running start the paper reports apple may be considering an investment worth hundreds of millions of dollars. garlic ice cream and garlic boston and some of the streets of the gilroy garlic festival. since the first festival 30 years ago organizers have dished up 78 t of fresh garlic. you can find information at cbs s f dot com >>> and upstate new york gets hammered by tornado as inspectors assess the damage people deal without our. >>> we have the most stable weather in the united states evidence by low clouds of short at ocean beach the numbers raging at 78 and oakland airport and 75 in santa rosa apparent must be nice, cheering on team usa from the shallow end. back in '08, we didn't have these u-verse wireless receivers that let you move the tv around wherever. no siree, bob. who's bob? and if you didn't have a tv outlet, well then you couldn't watch diddly-s

since the early ipod in favor of a new are smaller 19 pin connector >> apple is always the company that looks forward and they have always been willing to break old kings whether it is software or hardware to move ahead and i think at some point they had to move on from that connector so it will annoy people but they will get over it >> most apple users have invested hundreds or thousands of dollars in third-party accessories for their home or their car that uses that connector to feed music voice or video through their systems. those accessories may suddenly be obsolete. >> is a bad thing. you invest a lot of money buying these products and you want to be able to use them so i would discourage apple from doing it >> some people are not as technologically savvy. it will be a harder impacted them and they will not be able to make the switch is as easily but i'm sure overtime everyone will get used to it >> most other non apple ute devices use a u.s. be connector that can be used across multiple brands but apple appears to be going its own way with the new connector >> they always do thin

and the five are apple, amazon, google, facebook and microsoft. now, what makes those the principal competitors is that they all own platforms on which other companies are building products and services. so they control these big ecosystems in which hardware exists and services and software and apps, and they're all also competing with each other at least in certain ways. now, you might say, well, apple's a hardware company, and amazon mostly sells products and digital content, and google is mostly search and advertising. and that's true, but they all are kind of in each other's business, and they sue each other regularly, so that's the big battle right now between those five, among those five. >> host: well, when those five companies started, they had one thing in summon which is they didn't care much about washington, d.c., and they didn't have any kind of washington presence. >> guest: right. >> host: now they all have a pretty prominent washington presence and growing. >> guest: yeah, they not only didn't care much about washington, they were p

if you wanted to use any of his products, it was easier to buy into the whole apple ecosystem. omething only a complete control freak could have pulled off. his personality, passions, products, and private life were all intertwined and closely guarded. the more of it that walter isaacson got to see, the more he learned. what was his house like? >> isaacson: his house in palo alto is a house on a normal street with a normal sidewalk-- no big winding driveway, no big security fences. >> kroft: could you drive in the driveway? >> isaacson: you could walk into the garden in the back gate, and open the back door to the kitchen, which used to not be locked. it was a normal family home. and he said, "i wanted to live in a normal place where the kids could walk, the kids could go over to other people's houses. and i did not want to live that nutso lavish lifestyle that so many people do when they get rich." >> kroft: there was no live-in help and no entourage. he was worth $7 billion, but not materialistic. and he told isaacson in a taped interview that he had learned early on what mone

is smaller than the current ipad. appleuppliers are said to have been told to prepare for mass production of the new tablet come september. this seems to be an admission that perhaps there is a strong, robust market in the smaller end of the tablet size though steve jobs reportedly said on a conference call that a sub eight-inch tablet would be dead on arrival. >> google is showing it isn't. the main competition is the kindle fire. interesting to see how amazon will react to that. both the kindle fire and the nexus are proving jobs wrong that sub eight-inch could be successful. >> another story regarding apple is the uk patent suit. the judge basically said some of the htc phones do not infringe on apple phones. one is the slide to unlock. they said, that's not necessarily a valid apple patent. the other is the functionality of touching the screen in two places at once to zoom out or make something else happen. it's a relative loss for apple though they have won on other grounds. >> windows technologies were first unveiled

and the timing isn't great... apple'shone was once the market leader, but samsung's smartphones are now outselling the i-phone. ultimately, it's a case that will determine which comppny was the real innovator... and that can have a big impact on the tech industry and what features you see on your gadgets. i'm alison kosik in new york. -----end----- cnn.script----- a woman fights and beats cancer... twice! twice!but now... she's battling a rare bacteria... where doctors believe... she got it. it.more problems with city speed cameras.how to know if you were wronfully ticketed... and when you could get a refund. and when you could get a refund. wow, look at this bed! this nightstand! this wardrobe! what are you doing here? you're in ikea. my dream bedroom is in ikea? yes. what's that bedroom over there? that's your husband's dream bedroom. whatever your style, take home your dream bedroom together. ikea. the life improvement store. extreme downpourswhat a maryland congressman says they mean tonight on fox 45 news at 95 at 39

it is written not to conceal or destroy the apple, but she gave it a place. th is always hisarumentha av t rs aig inndtif as a proslavery, antislavery and specifically different classes in the constitution familiar with the previous compromis the discountedasre h ar i rsti psiabthsae e titve tonut mepltete provisions as anticipated time of slavery would no longer exist in the united states. slavery dosn'tppeain cotion ly psohe enc sohe oer nende sly go l a anakin swears, the founders meant for slavery a of course results towards ultimate exnction. othe are deprivations obous mprose oslavy in waha w o prse nt t mie d amths pruspre. inreobout proslavery, antislavery. the argument and make in the book is in order to understand hao rs ttion you lashet t thclio ssnt ue ntahat it says about natural rights and what it means about natural rights in the constitution is framed in order to make a declaration of reality. vealled into usion gume madbpel edk la ar nc jma hr and said it really was a proslavery document. not ony that, that ideas and clarions theves e ect dte

apple and the last earnings, they spoke about the strength in china. we need to be concerned if we are long apple? >> i wouldn't be concerned. obviously china's economy is slowing. i think you have got a phenomenon over there for apple that is very unique. the penetration rate is very, very small today. and the company really came into vogue, i would call it 2010. this is the status symbol of status symbols. i think we are still very, very early in this process. just remember the mobile internet now. we have about 167 million 3g subscribers and over a billion mobile subscribers and apple has a tiny piece of that subscriber base. very early. much more to go. >> i was in hong kong and very interesting there were more blue shirts, more apple employees. that is just one store but probably one of their most popular busy stores. they might have picked a lot of the low hanging fruit in china for now. they don't have 4g phones yet. an droid, they already have all the 4g phones. it is a great growth opportunity in china. >> stick around to find out which bellwe

they say that at the apples to be paying the sea. sts say that apple wince-0- wins will a that samsung and one not be allowed to sell their products. >>mark: the dow jones is up with modest gains. the dow jones is down 10 points right now. >>darya: friends and family of a santa cruz woman are morning after their friend died after falling from a party us this morning. all of them were on their way back from a concert when a fight broke out between two women. the 2010 your old woman and an -- love and women fell out of the door and onto the highway. one woman was taken hospital and the other woman was hit in killed your the driver was sober and was not charged for this accident. this new legislation and in the future situations like this will be different. this is just past from the assembly and in this mission could prevent things like this from happening >> currently the driver is not responsible and he cannot take any action. this legislation will prevent that and in there are lot of bus operators especially party bus operators tax -

one of the most challenging aspects and excruciating painful for me writing apples and oranges and say what is my responsibility here? how can i put this on the page? how i drove my brother crazy. >> one of the things i want to ask you about, your books, you are known as an investigative reporter, long complex narratives involving dramas and situations. i am curious to know what was hardest about memoir with somebody living their life as a working journalist? let me preface it a little bit with someone who has similar tendency. this is from 2005. i would like it if you would read from here. >> perfect. yeah. this is a moment in the book where, i am kind of flipping out writing about my brother. i am listening to tapes, because of course i have gone back to the orchards, my brother has died at a young age. i have gone back to the orchards to do interviews, i keep doing this dancing about what it is really about. i am saying i am outside the event although in the middle of it. it is protection, part of the latex that is covers me. making tapes, to crack the grid that i can understand on

the stock has benefited from its relationship with apple selling the iphone. earlier this month, it hit a four-year high. today, the stock fell 3.1%. it was the second biggest percentage loser in the dow. the biggest loser was cisco systems. shares fell 5.8%. volume more than tripled. the selling came after cloud software company v.m. ware announced a buyout of a technology networking company, possibly threatening new competition. more people keep signing up for netflix online streaming media services, but the company is spending more money to get them. while earnings were more than double estimates, coming in at 11 cents per share, they were down considerably from a year ago. netflix has been investing in overseas expansion, as well as exclusive content deals to attract subscribers. shares were up a fraction during the regular session, closing at $80.39, but plunged as much as 14%, below $69 per share, in after-hours action. the total number of subscribers were on the lower end of its forecast, and the company's third quarter outlook was weaker than anticipat

samsung claims apple is the one doing the copying that apple's inspiration came from sewny. samsung claims by initiating the lawsuit apple is trying to stifle competition and limit consumer choice. afterall, a judge has banned a version of samsung's tablet until the dispute gets sorted out. if samsung is found guilty, then more of the product could be banned in the u.s. for apple it means tougher competition. apple's iphone was once the market leader but samsung is outselling them. ultimately, it's a case that will determine which company is the real innovator. i'm reporting from new york. >>> well, gas prices have gone up more than nine cents in the past few weeks. the national average is now sitting at $3.51. the major reason is the price of crude oil. the largest single component as increased by $3 a barrel over the past two weeks. >>> air travelers will finally get relief from soaring air fair price. next month fairs are ex-- fares are expected to drop 10% to 20%. in the first three months of 2012, domestic air fares were 5% higher than at the same time last year, so a li

. >> and waiting for the next iphone. apple are sure there will be a new model that the sales of the current one are down. that's a reason why apple reported lower earnings than expected. $9billion instead of 10. >>> and apple is releasing a new operating system today called mountain lion t is only available as a digital down load. and this costs $20 less than the last one. >> and it is making money, net flix net income well. investors are worried about licensing fees. and stiffer competition for the service. >>> and a new web stream shows the brown bears in their natural habitat. the views are free. have a great day. >>> a celebration take as dangerous turn. two cars in a care have van plunged into a river in china. rescuers used ropes to get everyone out. the area has seen a large amount of rain here lately. >>> and thousands of people in new york, they're in the dark after severe weather rolls through. high winds and hail and trees up rooted. crews will be cleaning up and working to restore the services to the customer. 12,0

>> all about corporate earnings this time of the year. apple's numbers in the three months through june fell short of forecasts despite a surge in profit. looks like many consumers are opting to wait for the release of that i new iphone model. the u.s. electronics giant said on tuesday that its quarterly net profits stood at $8.8 billion, and that is up 20% from a year ago. sales also jumped 22% to $35 billion. but the strong figures were still lower than many analysts had expected, that's because unit sales of the iphone fell 26% from the previous quarter. the hugely popular smartphone accounts for neither half of apple's total sales. many consumers postponed their purchase of the product. they have apparently been anticipating the launch of a new model in the near future. >>> meanwhile sales of the ipad tablet soared 84% compared to the previous year. its new model had just come out in march. apple's top executive, tim cook, expressed confidence in the firm's ability to boost its earnings further. he says apple will continue to launch innovativ

the bit of a structural issue. how much can portfolios own of apple? currently 4% of the s&p 500. nies get to that kind of a level generally they start to have some issues. apple is an interesting case of low valuation. clearly looks very cheap. versus questionable momentum. you know, the big numbers, it's fwot to slow a bit here. ultimately we think it's going to work to the upside. specifically if you look at the iphone introductions, the stock tends to trade in a range before and just after an introduction. and then take off. our guess is that's going to happen again with the iphone 5 which should be coming out this fall. >> mini ipad, tv as welcoming down the pike in your estimation? >> perhaps. the mini ipad about an eight-inch screen probably comes out toward the end of this year. in the past jobs has actually talked about the problems with that product. at the time it was more android products, their competitors, that were there. i think they probably will fill that gap between four and ten inches. itv is tricky. margins in tvs aren't what apple is looking for. they've got t