i think there is still an element of the apple club. think the broader point is it's a premium, high-quality product. >> they're not trying sell -- you talk about the kind of -- they want to semiyou other stuff, and the value now is going to be different for the value in the future. it's going to be about a much more seamless wireless phone and all these other aspects that are going to change. they're not trying to do that yet. >> well, i don't think anybody's really got the story in place, certainly not yet. there are a lot of phones being sold in china, but those are generally being sold by domestic manufacturers at a much better price point. it's not like anybody else is selling them in china. there are also a lot of android tablets being sold in china, but only be used as tv substitutes rather than post-p.c. replacement devices. apple has got a very strong ecosystem in china. android does as well. in fact, android is probably stronger in china because ought companies customize it so much to integrate their services. but as i said, i

. >> apple has experience in the china, the chinese characters are different from english. driveed a different engine to do that and apple does not have a good one to be uploaded in the app store. >> that was interesting. i did not realize the part about chinese characters and the difficulty of the language. >> it is such a closed system, it is hard for them to adapt to different markets. >> when it comes to the competition, there is samsung which is the leader in china but apple has a lot of companies nipping at its heels. many of them are cheaper. huei is another one offering phones at a cheaper price. >> they are doing better than apple. yawe joininghe coo us today, jane lee. you guys are pulling back on your networking and telecom which is your core business in the united states. mentionedyour ceo this thing. you have had difficulty with u.s. lawmakers concerned about your relationship with the chinese government. can you talk to us about your u.s. business right now and where it stands? actually, we are not leaving the u.s.. on the contrary, we are growin

apple is. you see how this is impact european markets. theikes of arm and dialogue, you see them down in early trading. >> let's continue our conversation with our guest. we had a more disappointing set of numbers from apple. what does this tell you about technology? the trend that many are talking about is the move towards a lower price hand set. is that something you're interested in as an investor? are you focused elsewhere? >> i guess it is not surprising. this is because we have new and sets that are cheaper. we want to play it through micron that builds flash memory chips. pricing power has returned to the sector. ry to get nine times earnings. that is the stock that will benefit from proliferation. >> away from -- partially sticking with the hand sets you like google, don't you? >> google is a complete dominance the online ad spending space. they are building momentum. hey are the dominant player. we really like to company. in this market where growth is hard to come by, this is one company that is growing. >> there are not many compan

difficulty of just the language. >> apple is a closed system. it is hard for them to adapt to different markets. >> when it comes to the competition, there is samsung which is the leader. apple has a lot of competition. a lot of them are cheaper, there is xiaomi. >> they are doing better than apple. >> a lot going on. we have the coo of huawei joining us from san francisco. you are pulling back on your core business and in the united states. i believe when you are taught taught -- when you spoke with some french journalist, you had difficulty with the u.s. lawmakers concerned about your relationship with the chinese government. can you talk to us about your u.s. business right now? >> we are not a leaving the u.s. we are growing our business. i know there are a lot of media about the interview. when you have $40 billion and you are caught in the crossfire of two large world economic powers, it is hard to not get sentimental. the truth is, this is one of the greatest markets. we like it here. >> does it mean you will continue to sell your telecom

apple bulls. nahal, why not? >> the primary reason why we're not raging bull on apple is that a, they're exposure to emerging market is saturated, and they're maturity. they have a high retention rate but we question whether or not that retention rate will stay as high as it is one to two years down the road as users become more and more familiar with the android operating system. >> all right. alex, what about you? let's talk about the quarter in particular. we mentioned they could be turning in some of their best numbers ever. is this as good as it gets? >> i think people are expecting a good quarter from apple, and i think a lot of it is coming from the beginning of iphone sales on the china mobile network which is obviously a massive opportunity for them. but with that baked in i think the real problem for apple right now is that there hasn't been enough innovation not enough change to the story other than the incremental addition of china mobile to really get you excited structurally for the name. you mentioned the

we are weeks away from a meeting of the minds. appleeo tim cook will be sitting down with a samsung executive and we would tell you all of the details coming up next. ♪ >> welcome back. i am emily chang. we are a month away from apple and samsung, and samsung, cap agreed to mediation in february. -- and they have agreed to mediation in february. we started by asking bryan about the meeting and whether he think it will yield anything new. >> i think this is a real effort to put all of the legal battles behind them. it is a distraction for both companies. they are using money that could be going into product. they want to get this behind us and focus on our own products. >> is it possible? >> it is. a lot of bad blood. if they have to come to the table with a solution and hopefully they will and will be great for them not to be tied up in court and focus on what is going on. let them fight it out into the public. >> you talk to either of the companies and they said they were rather not be doing this. cook said i hate litigation. hate it.

that was the first thing i thought of. >> as police responded inside. apple store employees blocked the doors and moved customers to the back room. >> effort that door opened, i was trying to figure out if that was going to be a apple representative or the shooter. so in my mind i'm trying to figure out how i should position myself to cover my family. >> i was scared and then i felt like i wanted to pass out. >> several people locked down inside the mall posted pictures of heavily armed police as they evacuated customers. meals na re purses, nobody had eaton yet, drings spilled everywhere. >> one person posted this image of damage. for the burks it's a reason to hold their kid a little close tore night and a reminder how close they came to tragedy. >> that is a life changing moment. i'm in a situation where i could have lost my whole family in one day. >> he hosts a radio show focused on issues surrounding domestic violence. based on what we're hearing you can understand why all of it is hitting a little too close to home tonight. >> it's going to be a long n

consider how that compares to the competition that apple has to face. unsubsidized cost for xiaomi is $300. significant difference. >> xiamoi makes phones that look like iphones. >> the ceo models himself off steven jobs. >> i spoke to the ceo of baidu about this. robin said chinese people want bigger screens. samsung and other companies offer this. i spoke with robin li about apple. listen to what he hasto say. >> apple has experience in the u.s., but in china, the chinese characters are very different from english. you need an input engine method. apple does not have a good one. they did not allow it to be uploaded. >> that was interesting. i did not realize that about chinese characters. >> apple is a closed system. it is hard for them to adapt to different markets. >> when it comes to the competition, there is samsung which is the leader. apple has a lot of competition. there is xiaomi. >> they are doing better than apple. >> a lot going on. we have the coo of huawei joining us from san francisco. you are pulling back on your core business and in the

the tree thus the apple tree. i've got a taller tree europe the us. with full sets of facts they can fly across the front of their parents it is. just keep watch for the young. worst owl is all the land safely at the far bank sixty meters away the next one takes. it is sleek white chicks. still the young how manages to reach the other side all by itself. they're the parents will teach you to come in his hand. porch scope of the village. farmers in the snow. farmers. given that the creatures. lights are interconnected something living in harmony with each eye. the us. can. dunedin. it is. he chooses the stillness of me to coast in northeastern japan. it is harvested from whence this is a significant sign of recovery. take it. that's a taste of salt water the stitching would deal with something important eugene some form of pre ch

caps onive apple certain things. probably thehing to happel -- happen to apple mostly because it does not work. people never talk about that. >> and my experience it has i think lot better. what is the interesting things you see from apple is within the results you can see something that is a pile of application over $4.5revenue of billion. they have developed a big business of the product that have come with the business. >> i want to get back to the question of whether they can sustain a long-term growth. this is a company that has unmistakably and successfully positioned themselves of the high end of the computer business. that bmwd the for re: in steve jobs used to say of computing. lowballed middle class is growing. going back to the emerging market story earlier, the fact is there will be more people with discretionary income. the company continues to position itself is likely to have a huge long-term upside. around has solidified the idea is they will sell the minority of devices that take the majority of the profit. low e

the mac line still around. apple recently introducing its latest mac pro desktop computer. jessica? >> it is fun to see them. thanks, scott. >>> san francisco's fire chief made a special visit to the north bay to celebrate the birthday of one of the two known survivors of the 1906 earthquake. bill dell monty turned 108 years old this week. he was just 3 months old when the earthquake and ensuing fire basically leveled san francisco. he now lives in a retirement home in greenbrae where the fire chief met him for lunch. a steak and a glass of scotch. he recalled the moment after the quake when he was just an infant. >> my mother, the kitchen, she put the tablecloth, wrapped it around me and a bundle and put it on a cart. we went down broadway street to the ferry. >> wow. >> there was fire on both sides of the street. >> he says he's not planning to attend the upcoming ceremony to mark the 108th anniversary of the earthquake. so the chief and dell monty recorded a video message that will be shown at the ceremony at the fountain on market street this april. the only other survivor of the

they're at 1.2 million preorders for the apple. he talked about the web browsing, 57% of the china web browsing, they're not even there yet. what happens is system sunk when you finally get 760 million folks over there to be able to have the opportunity and be in apple and start to use the product line. >> so is there certainly is a lot of upside to the march quarter and following. >> i should also say if i was going to throw that out there at the top if i recall krekcorrect once we called apple, we didn't do this, our children did, they wiped it away. perhaps they did that for the other customers, as well. >>> rich bernstein, grace us with your time. thanks for sticking with us here. >> sure. >> let's get back to this conversation about why you don't see a bubble that so many others have been talking about and raising the question of whether one exists. and what are the facts is that you say there are stocks here in the united states that are undervalued. >> that's right. that's right. first, scott, i want to say that i think my pa

looking at apple's move to boost sales in china. theountry's biggest mobile carrier begins selling access to millions of customers today. it took six years from -- for apple to get the go-ahead from chinese authorities. was it worth it? that greating is not and china, if you get in a subsidized phone, -- and unsubsidized phone, it could be $800. >> here's the apple juggernaut coming out of 2009, everything is great. i am on the street corner by the iphone store. where howard would comment say shut up and buy it. former apple ceo john school he does not think pricing will be a problem. >> even at their premium pricing, they are going to sell and a lot of iphones. just in the first day since they announced it over one million orders have come in, china mobile is offering a free iphone with their highest data rate plan. former apple ceo thinks the current ceo, tim cook, is putting the company in a great place. >> apple sells high-quality products. they are in a great addition, tim cook has done a terrific job positioning them to make money

a locally made phone will be in the neighborhood of $300. >> here's the apple juggernaut coming out of009, everything is great. i am on the street corner by the iphone store. buy, buy, buy. i was wrong. here is where howard would comment say shut up and buy it. >> former apple ceo john sculley he does not think pricing will be a problem. >> even at their premium pricing, they are going to sell and a lot of iphones. just in the first day since they announced it over one million orders have come in, china mobile is offering a free iphone with their highest data rate plan. >> former apple ceo thinks the current ceo, tim cook, is putting the company in a great place. >> apple sells high-quality products. they are in a great position, tim cook has done a terrific job positioning them to make money not just on hardware, but it is starting to commoditize, to make money on the services. app store, itunes. even in china, is a terrific amount of usage of their services on the iphone, even though the market share of the iphone is relatively small. >> apple's stock is bouncing back, sculley has lo

>> it is important because the perception is that apple is behind it in this regard. not outwardly trying to buy any pieces of the smart home puzzle. we could see a television from them in the next 24 months. that could be a way that they get into the smartphone business. they are not going after these connected up i just stopped let's you think the television will happen? >> i do. there is some evidence in the supply chain that we could see a smart watch or some kind of a wearable this calendar year. i do not think there is any evidence in the supply chain that we will a tv. >> with the tv industry, the panel-making, that is a lousy business to be in. >> it is not a great business to be in. but we are right at the beginning of seeing an upgrade cycle. these televisions that are twice the resolution of tvs over the last 10 years. >> samsung came out with a huge one. >> everybody is showing one. a lot of them are bendable or at curved. this is an opportunity for apple to get in. they have played around with a lot of things that do not come to market and is to be one of

foxconn makes the apple iphone. s the source of 70% of global supply of platinum. >> welcome back to "countdown." >> 6:44 here in london. it is set to report its biggest loss since the financial crisis in 2008. tois setting aside billions handle legal and compensation claims. our next guest says there are a few bold moves that he needs to make. we're joined by christopher wheeler. good morning to you. is that it? is the slate clean? as he wiped the get -- as he wiped -- has he wiped the debt? >> i don't think they are clean yet. in the wording of the release they said that the estimates of the mortgage to go change with united states is a sickly dpi dpi swipesing -- is on going we have a foreign investigation going. i can't believe that we won't have further one-off charges. there is no such thing as one-off charges these days. i can't believe we won't have a few more charges which will claim earnings in capitals over the next two quarters. >> it is been the capital that is your key concern. is about 8.5% if you are

the big reveal! apple reports earnings today. will it set the market in motion for the week? in todays cover story... a weight debate ignites on the road. can trucks handle a heavier load? and... why retailers are bracing for the cold shoulder from consumers. plus... will a pop star's recent run ins with the law put a dent in his financial success? first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's monday. january 27th. i'm angela miles. in today's first look: from tanking to turn around? that's what investors are hoping for in today's market action. friday -- the market took a nose dive., dow dropped below 16,000 losing 318 points. the nasdaq 91 and the s&p is now below 1,800. gold made a 6 dollar gain -- oil dripped 48 cents. depsite the down day- shares of juniper networks jumped 6% on word hedge fund jana partners has taken a huge stake. obamacare enrollment hit the 3 million mark as people sign through state websites and at healthcare.gov. the health deparmtne expects to reach its ultimate

the fourth quarter. that's widening its lead over second place apple which sold 51 million. the biggest growth was in low-end smart phones made by chinese manufacturers. >>> with all those smart phones you need a lot of glass screens. that's where corning comes in, the maker of gorilla glass supplies screens for samsung and apple smart phones as well as for tvs made by sony, lg and lenovo. but corning shares took a hit today. they fell more than 6% after the company warned about price declines for its lcd glass screens. they are under pressure from a rival product called sapphire glass. corning's chief financial officer talked about why his products are better than sapphire glass. >> our job is to make a gorilla product that's better than sapphire. we think sapphire has a number of weaknesses. number one, it's at least ten times more expensive than gorilla, transmits less light, it's actually heavier than gorilla and thicker. it has better scratch resistance but it can fail when it has any kind of scratch scratches. >> despite that competition corning says it ex plates glass

we have seen apple very strong in the enterprise. that will continue. ey trend we saw a need back cap of 2013, apple moving into the enterprise. in the back end 2013, apple moving into the enterprise. >> brian blair, sam grobart, jon erlichman, thank you all for watching this edition of "bloomberg west." we will see you tomorrow. ♪ >> welcome to "lunch money." i am adam johnson. the former ceo and what he hates about washington and why he is telling google. how did he get here anyway? the head of the world passes largest ad company tells you how he got to the top. and why the long face, amazon worker? we will take a look inside the fight to unionize this giant. the man who gave us the real world knows how to win. that is coming up. finally, in sports, brooklyn going to london as pro ball goes global.

the looking over our shoulder? do you need a meeting with tim cook? apple's view is that this case is misguided from the beginning. a bunch of book publishers conspired together and apple's view is that at its worst, it's a case of five mice conspiring against a cat. overall, apple was not making the book market less competitive. that began and that leads to the secondary fight which would add on that silicon valley is getting in their business and you can see where this is going. >> it is interesting that the big giant in the book, amazon, is hardly mentioned. it is focused on what steve jobs did -- you call them five small overtures, but it's five of the six that conspired according to the court. they effectively rose the price of electronic books, making them overpay for the books. >> that is the case against them. to go back to the fundamentals of the case, the argument of the prosecution is that yes, this is bad for consumers and there is clear conspiracy. the argument for the other side is the book industry was threatened, amazon it was going to take it

the closing bell in 28 minutes. apple cook succeeded building his own great wall, the great bridg bridge in china, ac. the ceo finally getting apple products into the hands of the biggest mobile carrier in the world, china mobile. it is america's favorite spectator event of the year, we watch the athletes of the super bowl, and we watch the ads, the commercials are yet go onto facebook.com/lizclaman. tell us which budweiser super bowl ad was your favorite because they will be rolling out some of their classics. ♪ [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. we're open to it. my dad has atrial fibrillation,. he has the most common kind... ...it's not cause

, a bite of the apple, a bite of the apple. i don't know that that would ever happen in the united states, but i tlirng is an argument, suzanne, to be made that she was acquitted, she was sent home, and the case -- the evidence remains really the same. and so to have another court retrial her in absentia, she wasn't really there, using the same evidence and coming up with a guilty verdict just, i think, flies in the face of our system here in the united states, which is why i just can't imagine that the u.s. would honor an extradition request. >> all right. well, we'll see how it all plays out. it is really quite bizarre. sunny, barbie, thank you for your analyst. >> it's important to remember there are other people involved, raffaele, her ex-boyfriend. he's facing 25 years. he got picked up on the bordera. let's not forget meredith kercher. >> the victim and the victim's family who must be reliving this every single time there's another bite of the apple. >> they worry they'll never find out exactly what happened that night. >>

what finally brought the china mobile users, potentially 760 million subscribers, to apple? ell, i think on both sides what you have is a desire to stem a decline in the market share in the world's largest wireless market. china mobile has seen its share of subscribers in this market decline to about 62% from 72% in 2009 when its rival china union come introduced the iphone. at the same time, apple has seen its share of the smart phone market in china decline to about 6% from 10% two years ago. so both of them are facing a decline in market share. >> so how is the reception when iphoned hit the shelves today. there were no big queues and that is kind of what we were expecting. >> yeah, there didn't seem to be as much excitement as people might have expected. we sent reporters to three locations in beijing and shanghai and each of the locations that we went to, there were only about six people waiting when the doors opened. tim cook did appear at the shop at china mobile headquarters and handed out some autographed phones there, but at other locations things were fairly quiet.

still one more, take a look at the 30-minute chart of apple, where each tick in the chart represents pple had a bunch of upward swings, none of which lasted for more than $13.89 of upside. so before she's going to bet on a rebound here, she wants apple to demonstrate that it can put up a sustainable rally with the swing that's worth more than 14 bucks, in other words, longer than any of these numbers, okay? if it can do that, that's when she thinks apple will be ready to work. she's got time and price going here. she says she's stalking apple, just waiting for the moment when the market confirms that a real rebound is at hand. enough apple, how about twitter, which is the embodiment of the social, mobile and cloud trend. one of the most important themes in "get rich carefully." noticed an interesting pattern in twitter. check out twitter's 30-minute chart where, again, every little tick represents 30 minutes of trading. brodin thinks twitter has made a two-step or zigzag pattern, which suggests to her that after being hammered pretty hard over the last few weeks, the stock might not h

specifically, the much owned and talked about apple. among the momentum players twitter. these are two of the most important tech stocks in the market. tonight we're going off the charts. happens to be one of my colleagues at realmoney.com. i've said this before going to say it again. it's crucial. you should never make any investing decisions base ed soly what you see in the charts. you have to do homework on the underlying company otherwise you won't have a clue about what to do. however, as i explained in my new book "get rich carefully," the charts can be useful to a style investor like myself. look, i want you to be just like me. and when i say fundamentalist, i mean warren buffett or ben graham, not like the taliban. you have to meld the two. let's start with apple which has become a value stock, the polar opposite of twitter. look at apple's weekly chart, the last time we checked in five weeks ago, she told us apple is running up against hurdles of resistance starting at 575. without a breakup over that hurdle, apple would be vul

that's what could be the new base for customers and apple here. they did a deal with china mobile, the major cell carrier here, and that deal was six years in the making. you just saw how tim cook came here, really putting his face on this deal. it's taken six years and it's taken many trips from the ceo in recent months to ink this deal. what it does mean is it could mean 10 million or 20 million more iphones sold in china this year, and it is a boost for apple in china, which has been struggling a little bit against its competitors. >> apple's still far behind as the biggest provider in china. what about price? that's going to be important. and i know the first question that tim cook was asked by a customer in a store was, are you going to make one of the bigger screens? chinese consumers don't like a 4-inch screen. they want a bigger screen. >> reporter: well, that's right, and that's where samsung and other makers here in china have really edged apple out for the chinese market. chinese customers want a bigger screen, they want a cheaper phone,

not all of it have the same impact and duration of apple. ot get far history without running into the meteorite rise of apple. and 38 years after the club started, steve wozniak is getting the rockstar treatment at its first reunion in years. >> everyone in the club talked to me and had ideas, that what inspired me. what should really be useful for people? i wanted to be a part of this so bad. >> he owned a computer store called the byte shop. after watching apple one, he invited jobs to the store the next day. >> i told him that if he would assemble and test the apple one computer that i would buy 50 of them. >> the price -- $500 apiece. it was their first deal landing in 1976.000 cliff that was basically the seed capital to get the company off the ground. it,ften getting credit for wozniak has high praise for the entire club. >> i was just a geek very steeled -- skilled. these were the intellectuals i admired. >> this club had a huge impact in technology. how big was the turnout at the reunion that just happened? >> about 150 people. it was

the latest from apple. more earnings from the tech sector this week and we will continue to bring them to you. siemens reporting quarterly results this morning in the first full quarter of the new ceo. hans nichols is in berlin with all of the details. how did he do? how did they do? >> they did all right. these are mixed results. you can see that reflected in the stock. orders are up some nine percent. revenues down three percent. we have gone and sifted through the numbers. the strong euro eating into some of their orders. the infrastructure unit doubled revenue. that is doing better. perhaps the most interesting is the fact that they are delisting from the new york stock exchange. this could be joe kaser's first empowering his workers. he is talking about trying to increase shareholders among employees. of course, some five percent of their shares were traded on new york, so it is not a massive shift. it does seem to be bringing the moreny back and have a employee-led focus. as they try to become more pro

the network level. it is a subject of negotiations when companies like apple going to the market. what features do they enable or disable for governmental electronic surveillance? apple has not disclose that. there's no doubt in my mind that they will be cooperating with the surveillance of the chinese want. that matches your shirt. >> i got this so that i could see it at 2:00 a.m. in a piano bar room it is great -- in a piano bar. it is great. >> you better erase that before the nsa gets to that if you travel. we have much more coming on "bloomberg surveillance." nba commissioner david stern and -- itcoming commissioner doesn't always have to be about [indiscernible] this is "bloomberg surveillance." >> good morning, everyone. mr. mckee has top headlines as morning. dozens of people wounded when an explosive device was thrown into a truck carrying antigovernment protesters. demonstrators have stays daily marches every day this week. they want the figure second elections to be postponed. in the u.k., retail sales up more than forecast last month. easily topping estimates for just a

it is the worst day for apple in a year. what has to be done to fix the company, if the company really needs fixing? or is who needs fixing really the trading community on wall street? we will look at what's in the pipeline. that's one thing lots of people are focused on. >>> durable goods numbers. i worry about these numbers every time they come out. they came in very weak today, down 4.3%. it brings up a question. how durable is the u.s. economy right now? we are going to answer it with the help of liesman and more. >>> and it's freakin' freezing, folks. from the north to the south, the weather is -- look at that jet stream. i always wanted to do this. some parts of the country are getting hit with record low wind chills. 3,000 flights have been canceled so far, 4,000 delays. air travel, a mess. and sue is at the new york stock exchange. sue? >> it's really cold down here as well, ty. you mentioned the fact that apple is having a pretty horrible day. but interestingly enough, the nasdaq is not. right now, the nasdaq is up j

>> that has to do with the mentality of one-size-fits-all. apple great experience here in the u.s. in china, the chinese characters are very different from english. you need an input method for that. apple does not have a good one and they do not allow one to be uploaded in the app store. there are a lot of things that the chinese users are not so pleased about the iphone. there is room for improvement. >> what do they not like? >> the smaller screen, compared to the samsung phone. they cannot upload or download their own input method engines. there are a lot of things. the needs are chinese-specific that may not be available on the ios system. >> is apple not as cool in china as it once was? >> apple is still very cool. they have a very loyal following. a lot of people, including my wife, use apple. for me, i am different. i am an internet executive. i need to know -- understand how the average mobile phone user feels. i use an android phone. >> galaxy? >> the galaxy note. >> the larger size? >> yes. >> you like the larger size? >> i like the larg

the impact. look at india, apple wasn't even a player in the market in india a year ago, now that india's rolled the number two selling brand there with the iphone. i think there's still a good story. but apple's not a high-growth company. it's so large. how can you be a true growth stock all the time? but you can have breakout products. and i'll bet you that apple recovers and then i'll bet you it goes way beyond where it's been once the end of 2014 is here. i think -- >> that's a pretty safe bet. people's expectations on the investment side are what -- >> and speaking of expectations, i wonder if you think there's any work they have to do just on the cosmetics of dealing with the street. you've read parts of the transcript from last night, it was at times openly hostile and there's a degree of skill in managing analysts, done you think? >> probably. but it's never something that, you know, in my era we didn't have cable television so we didn't have a lot of things so it was a lot easier. so, i can't really comment on that. but i do think that apple is so much in the spotlight, carl, that they h

the twitter sphere took off. >> sam grobart went to apple computer. e high ground that they will not go to the low ground. who is winning though we will make a lot of apple versus samsung we will sell one jillion phones and make no money? who was winning the battle? >> you are seeing the results. apple realizes it has to go down market to some degree as well. not going as low as some people say they have to, but they will increasingly be pushed in that direction. is a business of globalization and international korean company and a american company, a new mobilization or the same old globalization? one reason they are going down market is because so many of the consumers are coming into place the new middle class does not have the cash that they do in the united states and europe. and they understand you have to have connectivity, great products and have the same kind brand that your do in the u.s. >> samsung is fighting a little u.s.f the battle in that companies are very innovative in south korea and china. they are not generating pete all that are i

apple did report and disappoint. the company did beat the street's forecast. rts eps 14.50 on sales of 57.6 billion. apple's cfo saying no tech company has ever generated that much revenue in a quarter. also, best in photograph, so why did appear the stock sink here. in a couple reasons, one, a disappointing guide for q2, apple predicting revenue between $42 and $46 billion. that wasn't good enough for the street. they did sell more ipads and macs than analysts predicted. the bad news, they sold 51 million i phone, sounds good, but they thought apple would sell more like 54 million i phones, on the conference call talking about the iphone business, tim cook saying business was strong in the emerging markets and in china, but in north america, business actually contracted. cook pinning at least part of that blame on carryiers, which changed that upgrade policies, restricting customers who were used to upgrading earlier. carl icahn on the minds of investors. the activist has been arguing that apple needs to buy back more stock, apple saying it did return 7.7 bill

it's more of everything else, the apple brand. 's important. >> hoins person. >> on his person. it's now his primary phone, he told eunice. that's important because he's more than just an executive. he's also a very important person in china. and the sort of trouble that apple has had over the past few months, year and a half, complaints about customer service, things like this that seem to bubble up from the chinese establishment, once you start having somebody like that carrying the phone, maybe apple becomes cool again. >> although to steinberg's point, jon, i mean, the early take on cook when he was first named was that he was a supply chain guy. right? this is a supply chain story. then you get walter isakson on today, jobs biographer saying on "squawk box" the real innovation of this company comes from google. >> that's how i would put it. i watched him this morning on "squawk box." this is great. in is great operations. this is great execution. this is great steady growth. we wanted nest. we wanted something game changing. t

it is even more controversial than the apple ii. z's own bosses did not think they would sell. >> thank you for stopping by and sharing your glass with us. time for a look at what is moving on the hour. mark crumpton in new york. >> let's get you caught up on the markets. stocks continuing their decline. emerging market turmoil to blame. boeing, the world's largest playmaker, the biggest drag. they reported fourth-quarter earnings that beat analyst estimates. tupperware reporting a surge in profit thanks to continued strength in emerging markets. >> welcome back to the early edition of "bloomberg west." , for your bloomberg top headlines. you are looking at live pictures of the royal caribbean cruises ship carrying hundreds of sick passengers returning to port in new jersey. they are returning to new jersey after 600 passenger and crew got sick. another partrea, of the deep south is recovering from the snow and ice storm that caused major gridlock. many were stuck on buses. blanket the of snow area. part of the national guard had to

apple. the house of pain! yeah, apple the big story of the day. first off, apple is in a $44 decline isn't part of a broader market sell-off. far from it. they reported numbers that the analysts didn't like it, causing many to downfrayed on a terrific day. whose fault? fault finding committee. go to truth and reconciliation committee about what happened to apple today. is it apple's fault? is it the analysts' fault for expecting too much? does the fault lie with those who listen to carl icahn and then they get brained. here's the narrative. last quarter, apple sent out some ranges on the conference call and they beat the numbers. heps why they started with incredible bullishness. i think it was confidence. confidence comes with beating your open goals. unlike many didn't think, apple never said it would sell 56 million iphones which was the estimate that the community said. apple did nothing to refute it. it's going on for weeks, apple didn't think it was the job to refute it to temper it a little. this morning apple overpromise and underdelivered

they may let the market develop or not do anything all. apple has been active on the acquisition front to make their products more robust, whether which its maps product, or with their phones and ipads and computers. we will see if they come out with something that is different. scope thisale and business has grown into, it is hard to imagine any and that could be as massive as the ipad and iphone business. >> cory johnson, thank you. kleiner perkins co-finder tom perkins arced a firestorm after comparing treatment of wealthy americans to persecution of the jews in nazi germany. here to explain himself next. ♪ >> welcome back to "bloomberg west," streaming on your phone and bloomberg.com. i am emily chang. tom perkins is apologizing for comparing the war on the rich in america to the persecution of jews in nazi germany but the founder is defending his message saying wealthy americans are being demonized by the 99%. he originally wrote it in a letter but sat down with me yesterday to further explain himself. i asked him if he regretted the compar

you can also watch the speech on your tablet or apple tv. ears though and at a folk art collection belonging to a former jeweler bought in a record $13 million sotheby's, and it brought in a lot of money for the folk art community. story. a crazy there is a lot of colorful elements to this. one investor is in jail. we should start with that. >> yes. actually serving a six- year sentence in federal prison, but he was a trustee of the american folk art museum, and he worked on this collection over years, and it was a promised gift to the museum. there is the gift to the american folk art museum. preparing for the coverage of this option, i wanted to see, and it was part of this book, and they were all gifts, part of the museum collection, and they were all sold to pay creditors. there was the bankruptcy. a sickly $140 million in claims, and so the claims, trust, the liquidating trust got $10.5 million on saturday from that sale, and that would redistribute it to the creditors. >> i do not want to keep harping on his background, but he is in for

. >>> it wasn't the most popular computer in its day, but 30 years ago the apple macintosh offered a new way to see technology. scott budman has a look at a very influential little machine. >> and the macintosh was cool. >> reporter: a tour of high school students not even close to being born when this machine was introduced. with this ad. >> and that was the announcement of the macintosh. >> reporter: the apple mac is now 30 years old. the creation of wozniak and jobs that brought computer to the masses. >> basically almost anyone, there were 5-year-olds who could sit in front of a mac and do something interesting with it. that's unheard of for any previous computer. >> reporter: that followed the apple one, the apple two, and briefly the lisa, changing the game and silicon valley along with it. turning technology only not into something easy to use but something nice to look at. >> that ease of use and simplicity i think is an apple dna and that has carried forward for the last 30 years or so. and it's mainly from steve jobs i would think who has a sense for what is beautiful and wh

google is the internet, essentially. for apple that's not the case. lls products for a profit. that's going to come increasingly difficult if the more products are sold to the network. what will apple sell for the profit across the board? it's difficult. they will have to find a new product category and where is the next big product category of selling the device for $600 at 37% operating margin in a billion dollar market. it's difficult to find. >> yeah. because they invented these markets. >> they found a market fit for these things and were the first to bring them to market. we may see that as we watch the tv, although arguably i don't think that's the case for tv, but the question is, what is worth apple's investment? because apple maintained growth by selling 25 million units. and where is the next category? >> you can buy smart people. i suppose that deepmind acquisition is buying smart people, isn't it? >> you can argue that was the same with nest. they bought some of the best people in silicon valley. so apple and google's structures are comple

the chiefs of apple and china mobile are gearing up for a big day on friday, when the iphone will be a available to chinese customers at china mobile stores. >> it's a watershed day for apple. it's a huge announcement. >> up until now, iphones were only sold at its rivals, limiting apple's market share. after a long courtship, the tech titan sealed the deal last december. china mobile will get phones encouraging customers to use the high-speed data network. apple will gain access to the chinese company's vast network of more than 760 million subscribers. >> i'm so honored to be doing business with chairman xi and china mobile. they have the largest network, we're incredibly impressed with them. we have deep respect for them. and have had from the very first discussion that we've had together. we see this as bringing the world's best smartphone to the very largest and now the fastest network in china. >> many analysts believe that apple needed to brokary deal with china mobile to compete further in the fast-growing handset market where low-cost smartphones are gaining ground. tim cook

value is on the experience. apple is the master -- >> an excellent point, it is like apple. the own ecosystem. they create everything. they keep it in-house, they keep their heads down and they wait for the product is done and perfect before they release it. is disappointment, though, you may not get a sexy new product. part of the issue with the wii u, the consuls were issued but the games have fallen behind. console sales fell. but they may -- they are very similar in ecosystem. >> the problem wii has is the world moves mobile and they are not on the standard mobile product >> but they have their own mobile product -- >> but who cares to go they are all on smartphone. wii double that of the console -- even shopping is going mobile, right? >> exactly. >> you wonder if today brands time, that they are not around. >> i think you are spot on, carlos, and i think that is why marketing is shifting to relationship marketing that has to connect the dots between every way that you could be in connection with people. otherwise, the brands do disappear because there is too much compet

is that the right approach? apple has a very narrow focus strategy. at because is they have a narrow product line, it is easy to design apps for it and add-ons. that helps the other line of business, the app store. if you took the name apple out and called it sterns, everyone would've said it was a pretty good attorneys report. >-- earnings report. >> look at the profitability. >> it is not a great sign and that combined with the other struggles since tim cook took over -- >> you look rate on instagram. thompson, that's what you can do with this toy. >> it's a pretty case ,too. >> imagine when it becomes your wallet. ago, youle of years could not pull it up on another phone and now you can. >> this is the beginning of the story and nick thompson as our guest host. this is our twitter question of the day -- there was a clumsy message but does this message ring true? this is "bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. ♪ >> good morning, everyone "bloomberg surveillance." we have coverage of

>> the disappointing iphone sales. apple sold 51 million iphones in the first quarter where wall street expected around 54 million to be sold. that means apple is dealing with saturation at the high end of the market. the amount of iphones sold in the first quarter fell short of street consensus so while the overall earnings and revenue numbers beat estimates, it's the iphone and ipad sales that worry the street. that's why we're looking at shares down after hours. tyler? >> all right, seema mody thank you very much. >>> up and down session on wall street despite brief flurries and not snow, the majors extended last week's losses. investors were chilled by a 7% declining and the currencies and economies with several emerging market countries and the fed meeting that begins tomorrow. taper talk didn't cheer the markets very much today, either. the dow down 41 points, the nasdaq was off 44 with the tech sector weighing on the index and s&p lost eight. >>> the biggest gainer in today's losing session for the dow was caterpillar