it will be hard to top the profitability and success of the iphone. appletruly the iphone company. north of 75% of the profits come from the sales of the phone. a major success story is china. revenue is up. middle-class consumers see apple as the badge of success. >> it is an era of apple. apple has conquered the world. >> i want to play games. all mobile phones are similar. the iphone functions for playing games. reporter: customers are almost religious in their fervor for religious products -- for the products. there are concerns. many say that apple should pay more taxes around the world. competitors are snapping at the heels. >> the financial committee will question things, like why they are not paying more taxes and not putting more to work in dividends or anything of that nature. reporter: next, a watch that will be launched in april. katty: for more on the i-p opping profits, let's go to dan. 75,000 iphones sold. >> a lot of phones. they got a lot of boost this time around because the generation was different than the last couple of generations. the

the good news for apple is the linchpin of the strength was the iphone and the iphone is really the foundationwhich all the other internet of things and compute and halo effect type of technology opportunities are there for apple. so i think there's a long way for this story and this stock to go. >> and, kayla, i would like to hear more about apple pay as people start to look to what could be the future drivers to keep the growth going. >> especially since we didn't get news of any major breaches during the holiday season. you would expect tim cook to be touting the strength of it, how much pickup there was in activity over the holiday, but i'm most interested in looking to see if apple had any currency issues because so far as i see, there's no mention of currency no mention of any specific currencies themselves in the release, and actually there's a headline that international sales made up 65% of the quarter's revenue. for every consumer company that's out there saying that the strong dollar is hurting us and that deflation is -- >> 65%. >> apple is basically shows us that's not the case. >

the ipad i'm not sure when that could pick up. i suspect if it does it will be apple that drives any turnaround. in the meantime iphoneses which compensates quite a significant degree. >> stewart, then apple pay which many were hoping we would see a glimpse of growth, at least as people start to get the iphone 6 and the capability. tim cook said 2015 is the year of apple pay but services revenue that captures any sort of sales they're getting from apple pay was only up 4%. wouldn't seem that's a meaningful revenue stream yet. what's your outlook there? >> yeah. the iphone was still 75% of total revenue so the other businesses are still relatively small in total and i think apple pay requires people to have the sense, the technology in their phone and buy the iphone 6 or 5s, point of sale to be upgraded and that's a process involved in doing that and then needs to be widely available so you don't thinks twice about using apple pay. for 2015 cook is right in talking about this being an important year for getting the footprint set up. in terms of revenues flowing i suspect 2017 might be a more reasonable year to expect s

when you think about the apple, iphone revolution, you need a place to put your iphone for charging and such. so there is an entire economy on etsy of hand made iphone chargers and that sort of thing. the shop here is maxilla and margaret who runs the shop out of pasadena, california has built an amazing business making these items. i have one on my desk. policy. a lot of things intersect here. this is from a shop called milk and honey luxuries out of virginia. sarah the proprietor makes what you see here silverware with stamped messages on them. we reached out to our sellers. we are very pro net neutrality and asked them to make goods to show congress and the fcc that we believed in the open internet. so sarah was in nursing school and started doing this on the side as kind of a stress relief. her business grew so much she quit nursing school. she got who el sail deal with nordstrom's and her husband who works in finance quit to help her do her job. i think we're building a beautiful world when women making things are pulling their husbands out of finance jobs. that's the world i want

>> we're not kidding, that just happen ed happened. >> apple is selling iphones as fast as the company can make them. he isn't kidding. apple shipped over 74 million iphones in its december quarter, way more than analysts had predicted. that's a hard number to actually comprehend. cook described the results this way. apple sold over 34,000 iphones every hour, every day of the quar by country. unit sales were very strong in the u.s. up 44%. but the real standout in the quarter was mainland china. there unit sales surged 100% as a man for the new iphone 6 and 6 plus boomed. analysts at piperafterry say mainland china accounted for 21% of apple's revenue in the quarter. of course there are challenges for apple in china, including local rivals who are competing fiercely for customers. but on a conference call with analysts cook didn't sound concerned. >> the local competition was there this quarter and has been there for many many quarters before about the local competition isn't new, i think we did really well there i'm proud of how we're doing. >> apple's stunning iphone results help so

the ipad. figures last quarter exceeded all expectations. from october until december apple made a net profit of $18 billion. that is 38% up from the year before. profit margins on the iphone are high. apple keeps production costs low by having most of the work done in china. sales there are also hitting new highs. apple is now the biggest smartphone company in china with 21% of the market. >> let's see what else is moving the market. this wrapup from the floor of the frankford stock exchange. >> good news for the german consumer. the mood at a 13 year high. also in news from some companies. from germany but also the united states. the market didn't do that much with it. the dax during the middle of the day actually in the red, losing some points. one of the reasons for that is greece. the new head of the government rolling back and stopping privatization. people are worried about the consequences for international moneylenders. greek shares dropping by about 9%. bonds also taking a dive. the yield for 10 government debt of greece rising above 10%. not tenable in the run -- long run the traders say. >> we will stay in frankfurt for a closer look at today's numbers. germany

analyst say the turning point happened once apple signed that deal back in 201 allowing them to cell the iphoneina. and another analyst being quoted saying they forecast around 2 million more iphones were sold in china than the u.s. and north america in the quarter overall. >> apple doesn't have its own way looking ahead. we have all these upstarts, some of them more than upstarts producing a lot of rivalry here. >> yes still the most popular smartphone maker in the country there, similar to app until terms of design language and their marketing as well. but overall they have dirt cheap prices that we've seen in that market there. so it is tough to beat. then you have the run ins with the chinese government. you may remember the latest iphone release was delayed by a month because of the long review process. >> let's check in on some of the stories making headlines around the world. japan is shocked to the news one of its nationals may have been killed in syria. they demanded a $100 million ran some for each of them. the message from website sent after it was posted. united states says it's pre

the dominance of it. it is extraordinary. >> it is driven very much by the iphone. 70% of the revenue comes from the iphone for appleevery other products group at apple is in record territory. you are looking at the yellow line. that is the dominance of iphone. is it a good thing that apple is so reliant on its products? >> they have been consistently proving every tech journalist wrong. we talked about how terrible the at&t network was and it has been fined. who needs an ipad? it turns out everybody does. >> brian weiser is with us. the world that is talked about is ecosystem. what is ecosystem? >> it is all interrelated participants. it is media owners, advertisers developers of apps. to the extent that everyone has to think about apple first one they are building something, whether you are going to design and add -- that is just an example of how they catch everybody. >> apple is the new html. >> they have a lot of power. one of the things a lot of investors are hoping for is that yahoo! becomes the default search engine. >> how? >> that is what yahoo! would like. >> i would like a pulitzer prize. [laughter] >> i

the demand in china. and if you go to even hong kong, they were selling iphones for $2100 and this is the high end iphone 6 they go for 1,000 at the appleres. people were strapping iphones to their bodies taking it across the border. it adds to the momentum going into this earnings report. obviously already expectations are high. how much of that is in the stock and how big is the beat going to have to be to get investors excited about this report? >> well, sara, what's very interesting is the set up here. this is just a stepping stone into a great year. and i think a transformational cycle for apple. and that is the fact that they have entered, they will be entering a new product category with apple watch and i think this iphone 6, iphone 6 plus is a major cycle. >> brian, congratulations. you had a bullish call on the stock. you've been one of the people to say this isn't just about a refresh. help us understand the other parts of the business that will move needle because it won't be smart home, apple pay any time soon, not the iwatch. is this only a hardware story? i agree the asps will be protect and be fine. >> when you look at, f

also the product itself is a snazzy smart iphone, folks familiar with the ios, the apple operating system will want to keep it. what about some of the more serious angles? the allegations of health safety and human rights abuses at some of the iphone suppliers there in china. i'm worn figure customers in china even know about those reports. if the company itself is doing anything to address that. >> well, that's certainly an issue that any international company sourcing from china is going to have to face. i don't think that's going to be unique to apple at all. but i don't really think that that's where the consumers are really focused in on at this stage of the game. i think that what they're really being drawn into is that for a while now we've got really big screen sizes that's been popular in this country. now that apple's caught up and provided those devices, they're doing well. >> is that what you see this as more of a catchup rather than an innovation that the initial iphones and ipads were promising to be? the company is kind of teasing this apple watch. but you struggle to think

the highest level in more than six years. there is no question apple is at the top of its game selling 74 million iphones in the first quarter. the largest quarterly profit ever for any company ever apple is making big growth in china. with such lofty numbers, is there room for more growth? can china be the key to that? when the earnings cross and that, my mouth opened. lorne the way optimistic analyst estimates of 65 million. >> no question about it. one of the data points i took away from the call yesterday's day sold 34,000 iphones in our every hour during the quarter. it speaks to a tremendous quarter that apple put up. the question as to what extent can they continue that momentum. >> i read an analyst note saying the problem is the numbers to good, they can never do this again. it is insanely stupid way for wall street look at something. here is this company on deaths door one decade ago. >> or you can think about it more recently, there were significant questions about the next generation of iphone products and what other categories apple would pursue. there have been disappointments along the way. yesterday was a pret

>> i had high hopes going to the quarter but apple defied everyone's expectations. on the blowout iphone numbers you talked about. three factors played together. one was samsung faltering. apple gaining share. apple launching the products in china and there was a demand for larger screen sized phones. on the chinese front what was spectacular is that the china revenue contributions now are very comparable to that of all of europe. now this defies the investment community that said if you want to sell to china you have to sell cheap phones. i think it debunks that and people will be looking at china as not a low cost country but people that can spend money and finally the capital gains. the country talked about $130 billion returns of the 130 billion. could they authorize another 100? 130 billion? this is a market cap company so potentially they could return their market value to investors. overall i think it was spectacular. no complaints. i think we're in the stock and recommending investors to hold on to it. >> some saying this is a good growth and value play for shareholders. but let'

when you think about the apple revolution, the iphone revolution, you need a place to put your iphone for charging and such. so there is an entire economy on etsy of hand made iphone cases and chargers and that sort of thing. so the shop here is mag sill la, and it is run out of pasadena california and margaret has tilt a -- built a really amazing business making these items. i have one on my desk. policy. >> creeps in. >> a lot of things intersect here. this is shop called milk and honey luxuries based out of virginia. sarah, the proprietor makes what you see here, silverware with stamped images on them or stamped messages. we reached out to our sellers. we're very pro-net neutrality and we asked them to make goods to show congress and policymakers and fcc we really believed in the open internet. sarah wasn't nursing school and started to do this on the side as stress relief. her business grew so much, she quit nursing school. got a wholesale deal with nordstrom. her husband who works with finance quit to help her do her job. we're building a beautiful world where women making things

business to higher capacity storage devices and the 64 gigabyte and also more demand for the iphone 6 plus. given apple is premium in terms of selling prices that means gross profit dollar growth in the iphone business could expand by $18 billion over the next year or 40%. >> boy, that is just an amazing forecast there. what is your price target on this stock? >> our price target is $130. it would highlight that could even prove conservative as we don't have a scale in gross margins. we've got relatively conservative estimates for the apple launch and additionally don't assume they'll announce new services over the medium is likely. >> you're underestimating compared to the street anyway the sales of the other devices, the watches and the like. perhaps you get a surprise on the upside out of that. >> yeah i think as we go over the course of this year and next year we'll see that. the $10 eps power could in fact prove conservative. >> all right, thank you very much for being with us tonight. we appreciate your time. >> thank you. >> cole mindergarcher with suites. >>> a systemically important financial

and analyst says the apple iphone sales top to the u.s. for the first time. is would be last quarter. apple reports results of this week as for iphone shipments, and they say china will also be ahead of the u.s.. this successful trip to the u.s. by modi, two nations vowed to deepen bilateral ties, particularly in trade, with the u.s.. here is the relationship by the numbers. ♪ well, let's take a closer look of president obama's trip to india and take a look at what the both sides want to achieve here. over ties between washington and new delhi, it certainly was not warmed a year ago. >> it certainly wasn't. remember one year ago, they were taking away the road barriers at the office there in new delhi, and it shows that the diplomatic route is ancient history, and this is especially after weredent obama and modi walking in new delhi, and this is the start of a three-day state visit between the two w, the two eyes. this is been a difficult year with not a lot of movement on key policy issues, but this is starting off in a strong vein. to pave the way for u.s. c

if that wasn't enough they also sell the biggest product of all-time, the apple iphone.you can't make your company work and you can't make more than 17% since 2009, you are doing something wrong. that's all. >> interesting. dan, what do you say? >> he nailed that mcdonald's thing. >> but he is wrong on at&t? >> well, yeah. at&t is a utility. >> it is not a utility. >> it is go to operate with you as the ceo with. a 5.7% dividend yield it is probably a decent buying proxy to own right here. >> that is my point. it is a buy proxy that hasn't gone up. gone up 17% with a great product to sell. they can't sell something else? >> what are you talking about? >> you guys argue all night. guys. >> since 2015, i understand some of the businesses they are in. most of the businesses have been struggling and for reasons probably out of his control. but they have zero clarity. it is apparent by their last quarter and the guidance they gave. it is shocking that nobody talks about the lack of clarity they have. if you are the ceo of a company, you have to have a better handle on things

apple's number one market be china? china may have overtaken the u.s. and iphone sales in the quarter that just ended. was the first quarter with iphone 6 and iphone 6 plus sales. china is becoming increasingly important for apple. we are a year into the partnership with china mobile. apple moved a new store drying huge crowds and prompting a tweet from co to tim cook. -- ceo tim cook. i spoke with an analyst at creative strategies and bob o'donnell. >> a couple of things about apple with the iphone in china. the chinese market has been very focused on large phones. it was the iphone 6 and 6 plus that triggered this interest. the chinese market is not interested in smaller phones. until apple had an offering, that was one of the issues. in a lot of the emerging upper middle and upper class, they are incredibly brand conscious and apple is a luxury brand. you get the combination of this brand affinity and a phone in the size they are looking for, it makes sense that they are a huge hit. it shows you how the company is moving and adjusting their business worldwide area and >> there were thoughts of this

silicon valley with his one big takeaway from apple's results. >> reporter: the big number from apple's latest earnings report 74.5 million, that's the number of iphones apple shipped in its latest quarter. and that's way more than analysts have predicted. wall street had forecast around 66 million. ceo tim cook told me iphone was a standout that apple was selling those iphones in his words as fast as they can make them. and was really around the world the u.s. up 26%, mainland china up 100%. iphone still accounts for about 50% of the company's revenue and estimate two-thirds of the company's gross profits. for "nightly business report" josh lipton in cupertino, california. >>> more now on the rough day on wall street. stocks plunged following some big earnings misses from big blue chip companies and worries that a stronger dollar and tumbling oil prices will dampen future sales and profits in many sectors. on the worst day on the markets in three weeks the dow fell 291 points. and that's the good news. at one point today the blue chip index was off close to 400 points. united technologies the only gainer in the index today. the nasdaq snapped a six-d

apple is iphones and iphone 6s. yahoo! has a floor under asian assets but apple will have blow out numbers are to the iphone 6. yesterday was an awful, awful earnings day. today will shape to be a very good one. into the weekend are good if you own companies like apple. i used to own it. i don't own it anymore. david: would you buy it now, it is about 110? >> not yet. i think one of the things that reason he sold apple i felt like i didn't need to buy an ipad anymore. i didn't need up to grade my iphone. >> guys, jump in here. liz: go ahead, cheryl. >> a couple of crucial headlines. they will spin off into new company. this new company will distribute the shares. basically she is splitting things off and that was something else we were looking for now. this is crucial. this deal completed first quarter, excuse me, fourth quarter of 2015. they have got a lockup agreement with alibaba. will take some type, i want to be clear on this. from what i see here they will continue to hold off on the stake in yahoo! japan but split into two different businesses to make this transaction happen so the core internet business

the line on pricing. the iphone 6 and iphone 6 plus put apple over the top. how would push past makers but xiaomi and lenovo at a higher price? i'm joined from milton kings, england. let's start in england. how would you do find these results and how surprising his this turnaround? >> the results are really good. they had a really strong quarter. they blew past pre-much everybody's expectations. it is well-known they're going through a tough period at the moment. >> your results were it little different from earlier in the week. there is virtually no distinguish went. i have a hard time figuring out these numbers every quarter. is this just about a new phone release? or a new format? >> it is essentially the public wars. those five inch smartphones that are the cross between a phone and a tablet those wars are heating up now. samsung was the clear leader. with those big screens coming out they have taken the fight right back to samsung. there is a real battle now. >> do you think this is a one quarter phenomenon of a wildly successful device coming from apple

the american economy. i guess you could say it's all about apple. today apple announced its first quarter financial results and the numbers are simply stunning. apple sold a shocking 74.5 million iphones, setting a record for unit sells. tim cook says on average they sold 34,000 iphones an hour every day of the quarter. this boosted the company to a record profit of $18 billion for the quarter. overall, the company brought in over $74 billion in revenue. this is higher than quarterly revenue from microsoft and google combined. by some measures it's the largest quarterly profit ever to be reported by a publicly traded company. it's amazing. apple ended the quarter with a strag staggering $178 billion of cash on their balance sheet. that's a whole bunch of zeros, folks, and it is enough money to buy ford general motors and tesla and still have $41 billion left over to go to a picnic. no surprise here. apple stock ended up 6% today at $115 a share. meanwhile, america's automobile industry is roaring. gm hasd a record year in 2014. president obama was exactly right to be touting the booming american economy in his state of the union address. >> since 2010 america has put more people back

the tape if that surveillance tape exists. >>> still ahead on "way too early," how do you like them apples? how the new iphonesed apple into record sales. wait until you hear this number. >>> and tiger woods all smiles once again, and for the first time explaining how his tooth got knocked out. remember that picture? that story and a check on weather when "way too early" comes right back. stick around. ♪ >> "the challenger" with a school teacher and six regular astronauts on board was consumed by a giant fireball explosion less than two minutes after it was launched into the bright blue florida skies at 11:48 eastern time this morning. the path to space was filled with debris and with death. all seven people were killed. [coughing] dave, i'm sorry to interrupt... i gotta take a sick day tomorrow. dads don't take sick days, dads take nyquil. the nighttime, sniffling sneezing, coughing aching, fever, best sleep with a cold medicine. ♪ >>> our great city still stands! [ applause ] tonight we are moist but unbowed. it all began yesterday when elected officials got news they hoped they would never hear. it was goin

. >> reporter: the launch of apple's iphone six last october was met with unbridled enthusiasm. larger screen was a did hedeparture from past iphones but if sales are any measure a welcomed one. how many apple products do you have in your home? >> quite a few, two ipads five iphones that's seven. >> reporter: why do you love apple? >> it's so streamlined examine and simple. >> if my 65-year-old father as well as 11-year-old brother and sister it's a good product. >> reporter: apple ceo tim cook describes the demands for the new iphone as staggering, 35,000 sold per hour during the last quarter of 2014, nearly 75 million altogether. driving corporate profits to a whopping $18 billion. apple products remain incredibly popular in the united states. with every new product launched customers lineup outside the flagship store here in new york. but its it's growth in china that's behind the record-setting profits. last year apple went from sixth place to the number one seller of smart phones in china. sales grew 70% and now almost on par with europe. >> apple was helped by the fact tha

the people buying the apple iphones like ron is talking about. corporate america is doing well, i wouldn't put money in the treasuries, put money in corporate america, dividend paying stocks and get a return there. i like apple too because it pays a nice dividend. david: terrific discussion, thank you very much. dan neiman, ron wiener, nicole petallides, joe cusack, and scott shellady. >>> dangerously cold temperatures as arctic air blasts the country. cheryl: rick reichmuth on how long the freezing temperatures last, rick? >> we have a little bit to goechl it's january, we have a long way to go. the cold blast, overnight lows, 9 degrees in memphis, 7 in tulsa. 17 in mobile. that is cold to get that cold, and we have not recovered all that much. in the 30s across texas and oklahoma. 28 in memphis, 30s toward the panhandle of florida. it's cold. and then another batch of cold air coming in behind this little clipper system. not a lot of moisture with this, but we'll get some snow across the big city, chicago, couple inches of snow, and around the g

apple will announce this week it has sold more iphones in china than in the united states for the first time this year. apple struck a deal with china mobile back in december 2013. more apple, apple pay is succeeding at its top goal, namely, getting people to use it. retailers see big demand for the service with one commenting saying, quote, our customers are saying it's safer. >> apple pay is great. i just used it last night at whole food doing my storm preparation. it was manic in there. on the china issue, this is greater china. not exactly a surprise if you're following the trajectory of iphone sales. very key because samsung was looking at china as a very important market and it's getting hit at the top end by apple. and at the low end. so apple strength there does matter, but it makes it particularly important because they're opening up these retail stores before chinese new year. >> tim cook said in 2013 that the tipping point would at some point come, that china revenues would ellipse revenues here in the u.s. what do you think made it happen so soon? do you think it was the lar

apple, which is ipad sales, down 18%. mac sales surprisingly, were up 15% in that quarter. what is going on with the eyes had. >> going back to the iphone six. it is like a mini ipad. this is in another sense. >> are they cannibalizing it? >> it is not beyond apple to do so. they did it with the iphone, the ipod. we are not even talking about the ipod anymore which, several years ago with the revolutionary music player am a now it is an afterthought. i have got a clunker, a paperweight. apple will do that. and there are more than making up for the weakness in ipass with the iphone. >> it is certainly not worrying the investors right now there tom, great to see you. the managing editor for technology here at bloomberg. back on the fed and the economy the keyword surrounding the fed decision this afternoon will be patients. economists do not expect any major shifts in monetary policy but the global event may be altering expectations for the interest rate left off in june. peter cook covering today's decision. with me is carl. peter, i want to start with you. according to economists we survey over 40% still see liftoff in june. you are sta

the big event. >> apple earnings. $65 million, that's the number i'm looking at -- 65 million, that's the number i'm looking at. the number of iphonespple is forecast to have sold in the last quarter. roughly the population of france. that should blow your mind. cory johnson crawled out of bed in a snowleess san francisco to preview apple. i saw you wearing a hat. talk to us about apple. is it about the iphone number? what should we be looking for? >> this is strangely, for the market, those who trade of this, a crucial quarter. a full sale of iphone 6 and six plus sales, a new iphone. two years before that when we had iphone 4 and iphone three releases, we had big moves. the stocks sold off quite a bit. one of the things we might walk a from when we get results tonight not just the importance of the iphone, but the importance of apple and china. it will illustrate the position apple is in. they do not lead in market share. they have only about 20% market share but 80% of industry profits. china may be the biggest market for the iphone. >> compare and contrast 89 billion microsoft versus apple almost double that one hundred 55 billi

the company dodged a $9 billion tax bill in 2012 alone. more on that in a moment. but first we have reports on apple's success. >> the march of amy's iphone last october was met with unbridled enthusiasm. the device's larger screen was a departure were last iphones but the cells are a welcome one. >> how many apple products do you have in your household? >> two ipads five iphones. seven. >> why dubai apple do you buy iapple? >> their streamlined. >> it sold nearly 75 million all together driving corporate profits to $18 billion. apple products remain incredibly popular in the united states. with every new product launched customers line up outside the flagship store here in new york. but it's growth in china that is behind these record-setting profits. >> in the last year apple went from sixth place to the number one seller of smart phones in china. sales grew 70% and now are almost on par with europe. >> apple was helped that they sealed collaboration with tran mobile the biggest service mobile provider in china. they just started working together. so actually we expect apple to better going forward. >> overseas markets are seen as cruci

of the apple iphone users. 60% say they are not going to buy the apple watch. >> because many people don't wear watches anymore. a wearable does not have to be a display device. it could track calories or you're walking or track your activity and heart rate. you don't necessarily have to have it at his -- as a device you wear. you have a nice display on your phone. >> i am not convinced yet. let's move on to the other gadgets -- the bmw i3 has an active assist part of their features. you can park this car remotely or through your smart watch. what about that? >> i have always joked that the ces is the car electronics show. the key speaker on the first night is daimler and the second night will be forward. you've got a lot of the automotive guys getting involved. the car has smarts and they are realizing that people are bringing their devices into cars so they are interfacing the car electronics with the phones to make it a more productive product. they look at navigation systems and self parking. >> the questio

the food network. apple will sell an iphone who don't want to be bogged down to one carrier. >> starbucks has a new coffee called the flat white. >> it is available in starbucks nationwide. some in the bay area already serve the flat white. they hope having it on the menu at starbucks will be more exposure. >> it means we'll get more customers excited to taste it even more. >> the flat white technically isn't new. the drink has been popular in australia and the u.k. for years. >> will they make those little hearts? >> we'll take a little love in the morning, right, christina? >> always, any time. love is what i love most about living in this great world. we've got some great things happening. as we get into the next couple days, we're still going to be sparing the air so do keep that in mind. if you suffer from asthma or respiratory issues, you want to limit your outdoor activity for today. it's illegal to burn. good thing our temperatures have really warmed up. our overnight lows are in the 40s. 40 degrees to kick off the day right here, beautiful san jose and you're at 42 degrees on the peninsula. mike

it is bigger lighter, and thinner than the apple iphone 6, plus the cost them a $371. smartphone seller. an investor, now the biggest in the new york times company. it exercises options to buy 16 million shares. leading the paper 250 million dollars to get through the financial crisis, they got paid back 150% of its money in interests and late fees. no early fees. catch all the latest in tech and media every week that 1:00 the eminent 6:00 a.m. eastern time only on bloomberg west. now turning to media ourselves, nominations for the academy awards came out last hour. and word man was nominated for nine oscars. it tied with the oddball comedy "the brand boot test hotel. we are joined now from los angeles. i am struck. a film like word man, i would expect them to pick one of those. the grand budapest hotel i am a diehard wes anderson fan. it was not that great. it was no rushmore. >> i completely agree. i am not the world's biggest wes anderson fan. it seems either someone in the academy love this moody or people felt the need to award a guy who has been overlooked in the

the law of large numbers, how can it stay like this? isn't this a one-trick iphone pony ready to blow up at a moment's notice? these are the irrefutable questions that i'm already hearing about apple's remarkable quarter. in the 74 million iphones it sold even as the stock left $6.17 today on record-breaking results on a hideous tape. a hideous day. you know i've got no answer to them. none. not because i don't know the answer but because those questions have been among the most costly series of inquiries imaginable. year after year not quarter after quarter, year after year that kept you from owning the greatest stock of the greatest company on the face of the earth. i find them insulting because they're being asked by people who are ignorant of the facts and the history of this fabulous company. for ages the critics who don't know the stock have been asking those kinds of questions about apple and what have they accomplished? they doubted the ipod, iphone, ipad iphones 4, 5, and 6. the big iphone, doubted china would like the new phones. every single one panned out fabulously. the only times that products ran out of gas was when apple decided to cannibalize its own devices with ne

it is the apple iphone. tied with samsung for global leadership of smart phone sales. th have 20% of the market in china. quarterly earnings past -- matched estimates at viacom. growth in advertising slowdown. jetblue's fourth-quarter earnings beat estimates and airlines have been flying high because of cheaper fuel and rising demand for travel. back on ali baba, shares sliding in the free market -- premarket after the comely missed estimates. dropping over 5% as revenue missed estimates and they spent more on developing apps. things are heating up inside the e-commerce company. employee perks include free food housing, even getting married. >> when you enter ali baba's headquarters, is a lot like stepping into any tech campus in silicon valley. there a starbucks to fuel all nighters, look at classes -- yoga classes and three cafeterias. the perks don't stop there. alibaba takes it one step further, helping employees find love, marriage and even starting families. it may look like any other tech company, but the culture here is unique. employees refer to each other as a

the apple watch. people want the apple watch are going to get the iphone 6. >> i want the apple watch because i like wearables to flick and do things and use apple pay just by flicking my wrist. i think that the whole history of computing over the past 70 years is make it more intimate more personal more fashionable, make it more beautiful, and where do you get there? you get apple. when you start talking about that. making the flag stone floors, you know, out of the siena marble from florence everything about it is beautiful. we're entering an age coming out of the recession and all where you're going to want really beautifully made things and, of course, i'll want that watch. >> so do you. >> and then dr. j, are you buying and investing in apple here? >> i am not for the reasons that jon mentioned. not because i don't think that apple's a tremendous company. i do. if i have to buy one of these tech companies right here apple would be on my short list. the reason that i'm a little -- have a little trepidation is that i think the street will be unimpressed by the sales of the iwatch. >> are you going to buy o

the extra large devices. apple sold nearly 75 million iphones in the last three months of 2014. that serves drove company revenue up, apple ceo calls the demand for iphones staggering. >> the most common food allergy is from peanuts. but a new medical break through means scientists might have found the cure. >>> got 20 hear this story, a cat in tampa, pr there may only have eight lives left. bart was hit by a car and presumed dead. his owner was so distraught about burying the cat, he asked a neighbor to dig a shallow grave. five days later the cat is back. the little guy is going to need some surgery but he should recover in six weeks. >> zombie cat? >> i don't know, bart was determined to get back to his owner. >> how about mind the bear? one nurse stunned to see a giant polar bear roaming the streets wandering along a train blat form. the eight-foot tall creature is actually a puppet cooperated by two puppeteers who studied the polar bear's movements. >> it's time for the real story with gretchen carlson u it starts now. >>> a deadline passing for a hostage swap between isis i

apple mobile devices. >>> if for the first time ipad sales may show a decline. about 6 million fewer last year than 2013. analysts say apple is a victim of its own success. the new, larger iphones are eating into ipad sales and other manufacturer's fablets. but don't cry for apple just yet. the stock was up nearly 40% for the year. >>> but apple lost this year in one area to the arch-rival samsung. a survey finds samsung phones had a higher customer satisfaction score than the iphones. there wasn't a huge difference, and the survey was taken by the iphone 6 is 6 plus were announced. still, samsung was up significantly from the year before. >>> and keeping with a theme here. pricing on apple products was known for being up there. but for a couple of price is right contestants, the current price is an apparent bargain. >> up for bids an iphone 6 which could certainly cost a pretty penny. the first bidder aimed high to the tune of $7500. >> what? >> and the second competitor got what he was getting, pulling the jerk move of bidding a dollar over his competitor. >> the actual retail price was high, though. $1,969. higher. >> maybe they have a samsung and weren't aware? i shouldn't

the bell. number four, how well the iphone cell? apple will release orderly earnings. ion of how the new products performed. we talked earlier about what i think are going to be the three key things. we talked about iphone 6. we talked about mac versus ipad sales. the third thing people will talk about is apple versus the expectations for apple. the company itself and what we expect out of it in the next year. >> tim cook has been running it great. his first new product will be the watch. that is a very radical departure. that they run across and information platform will they lose sales from laptops to ipads? you have to think about their strategy. we've got it covered top to bottom. >> what a turnaround for tim cook. >> he was the operations guy. he must have the baton from being steve's partner. he's got the vision for sure. he is doing great. >> yahoo! is releasing their earnings later today. marissa mayer is our number three story. she is going to talk about their stake in alibaba. it's nice to have a $40 billion problem. shareholders were not happy with what she d

analysts say apple is a victim of its own success. the new larger iphones are eating into ipad sales and other manufacturer's fablets. the stock was up 40% for the year. >>> but apple lost this year in one area to the arch-rival samsung. they had a higher customer satisfaction score than the iphones. there wasn't a huge difference, and it was taken before the iphone 6 and 6 plus were announced. still, samsung was up significantly from the year before. >>> and keeping with a theme here. pricing on apple products was known for being up there. but for the price is right contestants, it's a bargain. >> a iphone could cost a pretty penny. first bidder $7500. >> what? >> and pulling the jerk move of bidding a dollar over his competitor. >> the actual retail price was high though. $1,969. higher. >> maybe they have a samsung and weren't aware? i shouldn't make fun of them. >> come on. >>> when we come back a small town police chief in the middle of an investigation after he shot his wife. was it an accident? >>> and here's the reason why a delta flight made an eme

guest: apple assembles the iphone and other products in china. the congressional research service did a great analysis of the value chain of the apple product. it found that three quarters or more of the value was produced by u.s. workers, both in technology, software, design but also the glass is produced in kentucky by one of our great american manufacturers. they ship back off from the united states and china where it is processed and assembled into the iphone. the value of that is really coming back to u.s. workers and higher paid u.s. workers in manufacturing and technology, and beyond. they are able to do it -- i don't work day-to-day with apple, you have to talk to them about their choices, but they have made a competitive and innovative product. so much of what we seen has been this ability to take the best of what is around the world and put it together. that is one of the great advantages that america has and continues to have, and we need these for -- free trade agreements to do so. how do they help apple? they make sure the tariff on t

the entire nation. apple is the number one market china? perhaps. analysts speculate that china overtook iphone sales in the first quarter, that the first full quarter of iphone 6 and six plus sales. we find out tomorrow when apple reports earnings after the ballot. china is becoming increasingly important for apple. a year into the partnership with the biggest carrier, china mobile, the largest carrier worldwide, just china. they have opened up a new store where huge crowds were drawn. that's just the start. cook said that apple plans to more than double its chinese store count to 40 by the end of 2016. joining us to talk about what this means is been and bob -- be n and bob from tech analysis. i river not too long ago apple saying that -- i remember saying that apple saying they had four stores in china. >> a couple of things about apple with the iphone in china. number one, the chinese market has been very focused on large phones. the iphone 6 in the six plus in particular really triggered this interest. they are not interested in smaller phones. until apple had an offering, that was one of

by the end of the quarter, our new iphones were available in 130 countries around the world, making this our most successful rollout ever. >> that was apple cook talking about record iphone sales. for more, let's bring in caroline hyde. give us a sense of how much this growth is about the bigger screens. >> the innovation, phenomenal. tim cook called this spectacular. investors seem to be agreeing. investors say these numbers are phenomenal. $18 billion in profit. the most on record in terms of corporate history. they are making $200 million a day. by the time i finished speaking, they wrapped up another half million dollars. they are managing -- look at where it is compared to its competitors. it takes ibm an entire year to make what apple has made in one quarter. it takes hp 20 two quarters to make what apple has made. if you had what microsoft and google have for this quarter, apple still smashes both of them combined. pretty phenomenal. it is the iphone 6 that came to the rescue. bigger screens. up to 5.5 inch screens. suddenly, you are getting the appetite from asia. samsung led the way. they always had these bigger phones. now, we a

there is no shortage of people lining up to buy the apple iphone six plus. >> super bowl weekend is finally4.5 million for a ready second spot -- for a 30 second spot. it is one of the most-watched super bowl ads in that amount of time. one of the creators of that bmw ad is the ceo of kbs. you put out the ad. 5 million people see it. do you care about sunday? >> sunday is the day you have 100 10 million people tuning in. it is the one time of year people are so engaged they care about the advertising. >> what is pretty funny is the beginning of it is old airtime from the 70's. >> we have a famous and fantastic creative department. you start with hundreds of ideas and you go through them. we sat there and we went through this. this one just stuck out. we found the clip on youtube. then we started talking about how we wanted to end the spot. you go through many concepts that this one cap sticking out. >> when did you start working on this? >> months ago. >> what is the risk in ads? you take a look at the go daddy ad. what is the risk? >> you have to do something that is on brand. you don't wa