tim cook says the company is pleased. tim cook: sales of the watch exceeded expectations and they did so despite supplies still trailing demand at the end of the quarter. to give you additional insight, through the end of the quarter the apple watch fell -- was higher than the comparable launch periods of the iphone or the original ipad. vonnie: cook says one bullish side is that 73% of old iphone users have not upgraded to the device. in greece parliament will vote on the second package of austerity measures demanded by creditors. greece cannot get another bailout unless legislation is approved. alexis tsipras will have to ask for support from opposition lawmakers. his own party has rebelled against tax hikes and pension cuts. at&t's proposed takeover of directv has scaled an important hurdle. tom peters has -- the fcc could vote on the at&t deal this week. it was all in a day's campaigning for donald trump. in south carolina he blasted senator lindsey graham, read out his phone number, and urged people to call him. he t

here is tim cook speaking about iphone growth.phoneat's going on with , the growth is almost three times the market and if you look regionala narrower level, western europe grew four times market. japan, over five times market. we doubled in korea versus a market that is shrinking. ♪ alix: joe: i'm alix steel. i'm joe weisenthal. what did you miss joe:? alix: more than a thousand workers in new york city airports say they will walk off the job starting tomorrow night. they voted unanimously to authorize a strike at jfk and laguardia airports. the union represents security officers, baggage handlers and wheelchair attendants. the strike would be the largest since the union began organizing. joe: it is the fifth anniversary of a measure that seemingly made nobody happy. 2010, president obama signed the dodd-frank wall consumerform and protection act. it was the most sweeping reform since the new deal. but it remains a work in progress. a bipartisan group is already looking for ways to tweak it. alix: the republican presidential fiel

tim cook. he walked me through the quarter as he saw it. let me convey the insights he had there. let's start with the iphone shipments. 47.5 million. that was growth of 35% year over year but it was also basically in line with what the street had forecast. analysts were looking for around 47.3 million. cook telling me he thought of the iphone's performance as a runaway success. he said the momentum continues, talked about how they continued to take share of the smartphone market. i also asked him what percentage of the install base had now moved to those recent 6 and 6 plus models. he said only about 27%. that implies a lot of potential upgrade headroom. but that's not what investors are focused on. at least right now in the after-hours. ipad 10.9 million units. that's just missing the street's forecast. we know ipad has been a source of disappointment for the street. i asked cook about the product. he says he remains bullish. he talked about the new operating system, the enhancements, the pro

ceo tim cook says the company is pleased. tim cook: sales of the watch exceeded our expectation despite supply still trailing demand at the end of the quarter. to give you additional insight through the end of the quarter the apple one sold higher than the comparable launch times of the original iphone or the original ipad. >> 73% of old iphone users have not upgraded to the latest device. plus, more than double, more than apple coming up in a few moments. olivia: boeing's cash flow is surging thanks to the 787. earnings beat analyst estimates. they lowered their forecast for the year. also out beating earnings estimates. increasing prices and cutting expenses. it is a nice combo. the price hikes helped offset falling sales in the u.s. and stagnant demand overseas. at&t's proposed takeover of directv has cleared a hurdle. tom wheeler has weighed in and urged fellow commissioners to approve the deal. the same time, he demanded the company do more to spread broadband use. vote on the deal as soon as this week. and there has bee

still, tim cook sounded optimistic.hat is going on with iphone to 35% growth is almost three times the market. if you look at a little narrower regional level, western europe grew 30%. four times market, japan grew over five times market. we doubled in korea versus a shrinking market. caroline: he is talking very optimistically. china is the worry here. this is another concern, their forecast for the next quarter missed. we will see $50 billion brought in, that is still a hefty whack of sales. but it is only increasing by less than a percent on the previous quarter. that is a dramatic slowdown. usually you see cap percent growth. it looks like it is china weighing on them. 20% drop. tim cook said china's turmoil could create some near-term speed bumps. i also wonder my do they are trying to bring in new products. iphones are still the key cash cow. they are trying to bring in the apple watch. we did some math, we think probably 1.9 million watches sold. a billion dollars worth was added to that. you divide that by the a

emily: tim cook was so if you sit about how the watch was doing. -- so it if you sit-- tim: the watcht did exceed our expectations. they did so despite supply trailing demand in the end of the quarter. to give you additional insight through the end of the quarter, the apple watch sale was higher than the comparable watch. -- comparable watch period of the original iphone or ipad. emily: if the phone is doing so well, it brings us back to why will they tell us how many they sold? according to bloomberg data, it's looking like 1.9 million watches shipped? tim: at least 1.9. the cfo talk to me about increased revenue that the watch was being included in more than 100% because of the watch. analysts are saying maybe $2.5 million. the issue is that apple does not want to keep their competitors of how the watch is doing in various ways. this is a new product and they want to see how it does in the market place. emily: let's talk about your interview with the cfo, who told you about china. there has been volatility in the equities market. we think that is a relatively small portion of the ch

we're firing on all cylinders, that's how ceo tim cook described apple's performance to me in an interview me that the iphone continues to perform strongly, it is a runaway success, he said. apple shipped nearly 48 million units in the quarter. but that was a disappointment. at least relative to expectations. although analysts at morgan stanley argue this was a function of management taking a more conservative approach to channel inventory. cook was quick to mention the watch, which he said beat expectations. the sell-through he said was higher than ipad units at launch. which wells fargo points out was 3.3 million units, the watch will be a top gift during the holidays and he had this to say about the watch. >> a major highlight over the past quarter for all of us here at apple was the launch of apple watch in april. as you know, we've been very ex-site to get this product to commerce, we started taking preorders on april 10 and demand immediately exceeded supply by a wide margin. the apple watch sell-through is higher than the comparable launch periods of the original iphone or the origi

angie: jim cook it was better in cook saidweek -- tim it was better in the first week.ly better than iphone and ipad ofes in their first weeks being introduced to the world. is that a consolation prize? >> that is true. but you have to remember a couple things. those products were introduced years ago when apple was a smaller company and did not get as much attention. to those products were introduced to the u.s. only, where the watch was not released completely worldwide, it was released in several countries. damn lies,bout lies, and statistics. angie: what should we be looking at specifically when it comes to apple? why are you concerns -- concerned? >> the biggest concern is iphone sales. clear it is, it is doing very well, as it always has in asia. the question mark you have heard is, luxury goods in china. apple has been counting on china for growth. year-over-year numbers were great. quarter over quarter, not so great. part of that is chinese new year. but you still need to look at that as a percentage of revenue. china actually went down two points. that is the b

we spoke to tim cook yesterday about the earnings.h good morning. >> sara, if tim cook is concerned at all, he is not showing it. apple's ceo was as confident and positive and upbeat as ever when i spoke to him. cook told me the quarter was, in his words staggering with revenue declining strongly. the iphone is a run away success with apple continuing to take significant market share from rivals in the quarter. cook made a point of saying apple is seeing the highest raid of android switchers ever. what about china? that was a big worry heading into the report. namely whether the swoon in the stock market there would ripple into the broader chinese economy and weaken apple sales but sales in greater china jumped 112 %. it's hard to find problems cook told me with a growth rate like that. but at least this morning investors are not sharing in cook's enthusiasm. one problem, apple shipped nearly 48 million iphones nature. a strong number but disappointing. bulls are unbowed. they noted plenty of apple fans still using the 4 and 5 who wil

should tim cook have given us more detail? >> communication this time was weak by apple. we should know what the apple watch sales are. we don't know whether they're 2 million, 3 million, 4 million. some analysts expected 30 million for the whole first 12 months but to me that's not important because we vnlthaven't had a full quarter of apple watch sales and it's just a breaker into the new market. the internet of things. >> i mean it won't account for a major part of the revenues the iphone is accounting for 2-thirds of the group's revenue. should we get too worried about what period am watch sales will do or won't do? are we not too hung up on that? >> we are. investors should look at it as an ecosystem company. >>> a bunch of teams that they're leading in. >> i want to focus on the tablet division. ipad sales lackluster yet when we look at microsoft's report they're up triple digits. does that tell us that apple is not doing a great job in their ipad strategy and microsoft is winning the race? >> as i said the ipad is one element of its ecosystem. the key is users are

tim cook has said he doesn't want to give details because competitors are looking for it. is that why apple is not being so transparent? guest: if you step back, this is a high-quality product. for a company so large to move the needle on its sales, need to have a large market, a growing market, and a profitable market. with apple watch, there is a potential but the initial start to the category has not been pleasant. it may be comparable to the ipad -- scarlet: the ipad had a huge launch. guest: and look at the ipad franchise now. olivia: ipad had a much bigger launch. have a goodif you launch, you have to have staying power. it is not easy for a company like apple to enter into a new category like that and hit the cover off the ball. olivia: and we know what of the big problems is people like to ditch their wearables. 60% of avenue -- of apple revenue comes from the iphone. are you worried they are too dependent on one product? if they keep getting market share the way they do, you have to guess they are going to reach the saturation point. i would guess it is pretty low

ceo tim cook says they sell more units than i thought they would any iphone did exceptionally well.e still a lot better than 40% year-over-year. >> the media. you love them. they love you. so was your frustration sometimes with the media -- is the media, myself included, a refocused on the wrong things, demanding too much of you, too too much of government? are we to inflammatory? what is your feeling? >> first of all, the media is a bunch of different medias. some get on my nurse more than others. maria: president obama making his final appearance on "the daily show." the president took a moment to put the blame on congress for the pirates targeting scandal. the federal communications commission improving the detail for $48.5 billion. sec wants something out of it for customers. they told the two companies to build a network 10 times the size of at&t's current network of fiber-optic cable. executives at theater and chrysler after two researchers hacked into the software they cheap suv and and controlled its feet. researchers, one of which is an nsa analysts say this is an industryw

tim cook said the china turmoil is creating near-term speed bumps. we saw the chinese weakness, a 21% overall quarter on quarter drop. but the iphone is still the cash cow. those sales fall short and that makes everyone sent a shiver down the back of their spine. but they are slumping in terms of their sales and of the watch did not sell as many as they hoped. that is apple. let's get on to microsoft. apple is the number one stock. the most valuable in the world. what is number two? this one. microsoft saw an $8.4 billion write-down. they are laying off more than 11,000 people and that will hurt. we saw significant write-downs and a net loss overall. the largest ever quarterly loss for microsoft. the nokia deal weighing heavily. read member we are buying less pcs. they are seeing windows struggle a little. there is hope for windows 10 launching july 29 to speaking very upbeat about what it will do for sales. cloud as in other areas of growth. cloud revenue's like we anticipate with amazon and sap yesterday, we saw cloud infrastructure jumping 86%. th

tim cook saying china is creating speed bumps. everyone is worrying that we can't see growth in asia. manus: why is it -- these numbers from china do people doubt the ability of china? why are we disappointed with china? paul: we saw a little bit with ibm. they signaled that china was lackluster relative to expectations. to the extent that investors were baking in a stronger china market to offset the weakness in other developing markets, that story is not playing out to the extent investors think. we are seeing a little bit of a reset for expectations. francine: is this the unraveling of the tech rally? paul: i don't think so. the bulls are seeing some strong numbers out there. the pc business continues to face headwinds. overall, when you think about tech spending, it is one of the growth areas in the economy. a couple days ago tech was thought of one of the few areas where you can find organic growth. caroline: there is an issue of how much people are being too over concerned. we were speaking to the leader of arm holdings. the

at some point they will. >> this is the test as far as tim cook, steve jobs, can the company continuesinnovate as it once was. that is the question. i got to tell you as far as wall street analysts still calling for the stock to continue to go higher despite valuations, despite being arguably expensive and whether or not -- people -- analysts don't like it and investors like it. to buy what they know like rachel is saying. >> the cash on the balance sheet wasn't $200 billion in cash, much of it overseas but what will they do in terms of acquisition, filling in growth? >> didn't give a lot of color on the conference call as far as that but that is the question with technology companies we know are sitting on boards of cash. how are they going to put this to work over the next couple years? no clear indication from apple, very tight-lipped on that sort of thing. >> they an end up sending e-mails from your watch? >> it is so funny. my kids are trying to figured that out. >> i can check, have my phone next to me. there's a learning curve. >> sounds like you are not using it. >> that is the

. >> how confident are you in the future of apple under tim cook? >> i think he is doing a great job. we have seen great products this month with the new iphone. i have a six plus. apple is a great company, the greatest story in american business. look, steve was the greatest of the greatest, we all know that. being the follow-on will be tough. >> steve jobs and larry ellison were personal friends, but how were the different as bosses? >> both are phenomenal visionaries. both have a feel for where the industry is going and work hard with teams to create that reality. i think that where they are a little bit different is there a was maybe a little more of a suit and tie person, steve was always in his jeans and black turtleneck. their styles were remarkably the same. i think that is why they got along so well together. >> in what way? >> it gets back to that passion. they were passionate, dedicated, focused. the number one issue for both of them, their business. nothing was more important to steve than apple, nothing is more important to larry than o

tim cook announced the subscription service and you can try it out for free. a crowd of other streaming services apple has 800 million users registered with its regular music service itunes. if apple manages to convince 10% of those users to stream music with apple, it will automatically take the lead in this fast-growing market. kristof is following this from the business desk. another streaming service? a whole lot of old names we have all heard of before. how is apple going to try to set itself apart from the competition? >> apple tries to be cheaper. if you are offering a cheaper model and service many people your family, for example. it has artists exclusively. taylor swift is only on apple music digitally. and there is another way these companies try to set themselves apart. the personal needs. if you are jogging spotify has the idea that the music you are listening to actually adapts to this situation. >> pretty spooky stuff. it i is a rapidly growing sector. >> there are others than apple. people are reluctant to pay for things they find on the interne

tim cook said he is happy with how the product is selling. with us our bloomberg news reporter tim higgins, who covers apple from san francisco. what do we know about how the watch has been selling? what new details are we going to get? tim: they have been pretty clear they are not going to release sales results for the watch. it will be in with "other." it will be looked at closely to try to get an indication of how the watch has been doing. emily: frank, why so quiet about sales? it leads one to believe maybe they are not doing that well. frank: i think apple is a conservative company. they don't want to talk about something less than a full quarter's worth of sales. they also want time to digest how people are adapting to it, so they can build a storyline. emily: there is a report out of kgi that apple iphone sales are going to fall this quarter. what's your thought on that? tim: we have seen it suggested that iphone sales are going to rise. emily: this would be a painful sales drop. what's your take on the sales report? frank: when we look

but tim cook needs to play it straight with wall street and investors and say this is what's going onwatch right now. >> donald trump took a dig at today saying it's a company that benefits and no one says boo about all of their foreign business and how do they make all this stuff abroad. do you think he would be friendly to the technology? >> not necessarily technology. i think he's saying there is a war in capitalism. there are silicon valley company that is have 50% profit margins versus an exxon mobile. we're picking evil companies over bad companies based on their ideology and nothing else. >> so for the four of your that got the apple watch touche. thank you very much. we mentioned test. for over 60,000 california foster children, having necessary school supplies can mean the difference between success and failure. the day i start, i'm already behind. i never know what i'm gonna need. new school new classes, new kids. it's hard starting over. to help, sleep train is collecting school supplies for local foster children. bring your gift to any sleep train and help a foster child s

tim cook already says he will not show the numbers, he will do a bunch of the other stuff.evenues, 65% is coming from the iphone. the iphone is incredible. the iphone 6, the larger one is doing really incredible things, particularly in china, as well as the rest of the world. would you put all of that together, the watch is interesting. i was just as interested today to see that they are hired yet another percent in the auto area. aboutre not only talking tv, but they are talking about cars and joe. joe: >> it is to see, but not going to make or break? >> there are things that they can do. the first thing is, make it good enough to fit under a cuff. when my cuff is buttoned, it does not fit under a cost. they idea of a design is something that does not intrude on life in any way. and that is a problem. theas to be connected to iphone, that is a problem. when you look at apple in who they are in who they have been over the past 20 years, it is basic design, basic original you could take out the box and you understand. the apple watch is not that. someone described it as work

why some are concerned about the company's pace of innovation and what tim cook can do about it. ♪ iy chang, this is a special "bloomberg west" from new york. qualcomm is cutting jobs since its worst jobs outlook since 2009. and a debate in new york in trying to limit

i did talk to ceo tim cook. let me run with you through the report how he saw the quarter.mance was a run away success, that the momentum continues. that apple continues to take share in the smart phone market. a couple of interesting data point tim cook told me he said only 27% of the install base has moved to that 6 and 6 plus. the indication there the suggestion is there is plenty of potential upgrade head room left. he also noted android switcher to ios, the highest rate ever. as for the ipad, that has been a source of disappointment for the treatment. 10.9 million. street was looking for 11.1 million. cook telling me he pointed to the new enhancements productivity tools, that partnership with ibm as well as way knows is in the pipeline. he said on the commercial side he saw plenty of momentum. as for the watch, giving us color there. he said it is exceeding apple's expectations. there are 8,500 apps available. there will be more points of sale. you'll be able to buy the watch in more places. he didn't say where or when but you will be able to buy the watch in more loca

why some art concerned about the company's pace of innovation and what tim cook can it do about it. ♪y chang, this is a special "bloomberg west" from you newark. -- from new york. qualcomm is cutting jobs since its worst jobs market since 2009. e-commerce entrepreneur mark

emily: speaking of another big company that you're not fond of, you once wrote that tim cook has createdquetoast, say-nothing, uninspiring, margin tweaking image for himself. you also said that apple should bypass tesla and make elon musk the ceo. do you still believe that? chamath: yes. emily: why? chamath: i think that he is very good at what he does. i think he is probably an exceptional operationally minded ceo. it is just the question is, can that person inspire the type of creative types to build the next lily pad? my intuition on this is no. you go to a company like apple, death marching to a trillion dollar market cap. think of the amount of wealth that is created in a place like that. but then think of what that means for that individual engineer who has the next great idea. if you're trying to build the next great thing, where the person at the top is not necessarily optimized for thinking that way and being as, maybe as disruptive, and rather wants to create a more holistic, communal work environment, i'm not sure greatness comes from those boundary conditions. emily: can appl

everybody was criticizing the chairman of apple, tim cook for a long time. finally he turned corner. apple went to the moon. jeff bezos looks like finally the market believes in what jeff bezos is doing. melissa: we'll see. he turn ad lot of investments into profits now. that is what everyone was waiting for. that is really the focus. thanks to you, lori rothman. david: what a day. melissa: cheryl casone to take you through the next hour of fox business with "risk & reward." take it away. >> tim cook's stomach is turning right now. jeff bezos is doing this, guys. hello, everybody. welcome to "risk & reward." this hour we'll begin with mr. trump. donald trump visiting the texas border and true to form he had plenty to say. we'll show you. you will hear from "the donald" himself. you've been hearing about it last hour, amazon earnings blew away every analyst, every trader, every expert. >>> more proof a report that contradicts the president. there is nothing to see here if you're obama. we'll talk about as well. risk and reward

tim cook says their market share grew throughout the world and apple watch sales were better than expected. now, revenue at microsoft came in at around $22 billion. down 5%. its net loss reached more than $3 billion. company officials site sluggish sales of its shrinking operating system. and also two massive layoffs in the handset division they bought from nokia. microsoft hopes to turn around its performance with the launch of windows 10 later this month. although apple reported strong earnings, investors were disappointed that the iphone shipment numbers fell short of analyst estimates. this led stocks in japan to snap their six-day winning streak. our business reporter gives us more details from the tokyo stock exchange. >> the nikkei 225 has risen by more than 5% over the last six trading sessions. it was about time to lock in profits. that coincided with some negative headlines during the u.s. earnings season and this is what we have for today. the nikkei has fallen from its four-week high ending at 20,593. about 1.2% lower. the topixs was down for the first time and fell about 1.1%.

analysts had forecasted apple would ship some 47.3 million iphones in a conversation with apple's ceo tim cook. he told me that only 27% of the company's install base had moved those newer 6 and 6 plus models. that suggests plenty of upgrade head room ahead. at least in the after hours, investors seem to be focused on that in-line number. for nightly business report i'm josh lipton in cupertino, california. >>> microsoft reported better than expected earnings in revenue, but took a hit from restructuring charges and soft demand from some of its products. the world's largest software company reported earnings of 62 cents a share. the company reported revenue that was slightly more than $22 billion. but investors wanted more sending shares initially lower after the report. kayla digs deeper into the results. >> from the face of it microsoft's fiscal fourth quarter looks like a beat all around the problem was, the company's quarter was mahred by a massive write down of its nokia ago we saying that happened just a new years ago, it was forecast to be a $6.7 billion writedown. when you peel away wh

no product will get more attention than apple's new iphone which tim cook expected unveil this fall. microsoft launches windows 10 the new version of it is operatin system. another theme to watch, tech companies splitting in two. ebay's spinoff of pay pal is scheduled to be completed on july 17th and hewlett-packard on november 1st with one company focused on business software and services and the other on personal computers and printers. finally, how will these changes play out with microsoft, twitter and google with a n cfo in the spotlight as investors wait and whether the company returns some of it is $64 billion in cash to shareholders. that's your second half tech outlook for "nightly busine josh lipton. >> here's what to watch for in the banking sector in the second half this year. investors in financi names will want to pay close attention to the fed. a rate hike will make bank business models more profitable y baked in already. some of the most rate sensitive names are up more than 10%. payday for investment banks after a record first half former injuries and -- for mergers

tim cook talked a lot about that yesterday.e to grow as much in china as they have previously. >> it still doesn't make sense to me that their profits rose 38%. they still had very strong sales. they were off expectations by 10% and they lose $66 billion. >> this is a company worth $76 billion. as soon as there's any signs of slowing, that's bad for app >> they sold 47. that's still pretty good. >> but apple always beats their expectation, so if they're $3 million under, i'm with the market on this one, gayle. >> did they create the expectations or did stock analysts create it? >> stock analysts did. apple said w we're only going to- sell 5 million next month. >> let's talk about the apple watch. all three of you have one. i have mine in a box. i'm going to take it out soon. they didn't release the numbers. why not? >> they said a long time they weren't going to release it. they didn't want to give any advantages. they weren't released. but if you dig into the earnings and look in the category where the apple watch s you can se

now, tim cook did his best to sort of inject another perspective. said, hey, look at china. sales were up 112% over the same time last year. in fact, there were the sales were up in every region where apple sells the product. there's a lot of room. like a quarter of the iphone owners have upgraded. and they're seeing more android switchers than ever before. apple is trying to at least inject its own optimism that there's still room to grow here for the iphone. >> and right or wrong, a lot of the conversation circled around the apple watch. >> yeah. >> it's not a very big story in the scheme of things when you consider earnings otherwise. but this is tim cook's first initiative, and it doesn't sound like it did very well. >> well i don't think we have hard data. i don't think they were forthright. >> isn't that interesting? >> well i think it's early. >> it surpassed expectation. >> it surpassed expectation, the first real foray was china. and i think we're overemphasizing a short-term, one quarter blip. we're in mile 4. >> i notice you're wearing an apple watch. >> left it a

tom: tim cook does not have that vision. tim cook wants to put paypal out of business.do on a technological business to beat apple pay? emily: their big thing is hiring and to make sure technology is going to continue to involve your cyber security is important. he says how paypal is a trusted brand and has not had a hack attack since its existence. brendan: one thing that apple has with its apple pay is just a lot of credit cards on file. pay paul does as well. -- paypal does as well. who has the advantage? emily: apple has so many more customers detailed information that paypal does not have a time. brendan: and we chang has an interview with dan shulman coming up at 9:30 a.m.. that is going to be on bloomberg. we are talking about paypal which has a bigger market cap than the company it spun off from good our twitter question of the day -- is the euro crisis over? could it please, please be over? i'd be thankful. between us. -- tweet us. ♪ tom: good morning. we would like to keep you up to date on important adjustment. richard greenfield says facebook hired by a good

the question whether or not people believe what tim cook said. he said the watch in early stages of availability is doing better than. iphone and the ipad. >> no, no. certainly what tim cook said. >> it is not doing bad did i, that's for sure. >> but he didn't provide a single number, nothing to quantify his statement and that worries me. >> i saw tim cook in sun valley. i said, hey, how is the apple watch doing. big thumbs up. no number. >> went to apple store, with broken ipad and broken iphone. sometimes i think they have more people working there than actual customers. i looked around at employees which were only people i saw wearing the apple watch, the iwatch and i never saw anyone actually looking at it or using it. so like they went and they got it because it was hot thing to get. newest gadget. i did not see anyone, robert, using it. i'm just saying i'm skeptical about the performance of the watch. >> well, i have been from the beginning. it looks like one of those 1980s watches. >> swatch watch. >> i mean as a auxiliary item, as a one i

sales of their new apple watch were less than what analystss expected but tim cook says the company is pleased. >> sales of the watch it did exceed our expectations and they trailingspite supply demand at the end of the quarter. insight,ou additional through the end of the quarter, the apple watch sales figure was higher than the comparable launch time of the original iphone or the original ipad. scarlet: he says one bullish sign is 73% of old iphone users have not upgraded yet and sales in china doubled. the country's biggest home-improvement chain is getting bigger. home depot is buying interline brands. maintenance and repair products. five people are being charged in connection with that damaging cyber attack against j.p. morgan last year. investigators say the hackers were not detected for two months and information of 76 million households were stolen and suspects were arrested in florida and israel but one is still at large. big that is making a on a drug for alzheimer's disease and we will learn more today at an industry conference. it could be the first market treatment to kee

tim cook said only about 20% of the install base moved to the 6 and 6 plus.hat leaves a lot of potential upgrade head room and it is not just current apple users that could upgrade, it's first time buyers. there are more and more switchers coming from android. the only risk to 6s adoption for that group is he thinks that they move instead to discounted 6 and 6 plus models. we will find out this fall. >> thank you. we should let you know that part of the nine to five photos will speed up downloads dramatically. >> and it will improve battery life. we had a lot of chats about apple musics and why this is now a services and software company. but the refresh cycle very, very powerful. i think the expectations for next quarter are not terribly high when you consider where we have come from. >> let's look at qualcomm then. the stock looks awful. even though they have had a buy back and major changes, i don't think they will move the needle this quarter. if anything you may want to sell some of it. >> i like apple into the refresh cycle. it will be a great refresh c

tim cook is bullish on the future of ipads. once they figure out the upgrade cycle a lot of people will want to upgrade. for the watch, the feeling is the apps are not there yet. a lot of apps that the punch has not been improved in the market yet. they're coming out with an -- thatto the software notwatch has -- that have been improved in the market yet you by all accounts it is doing better than the first few months of iphone back in the day. it took a while for iphone to ramp up to become the ubiquitous product it is now. the apps community took a while. apple andside of seeing that we see microsoft down, ibm tanking yesterday, is this the tech bubble bursting even if it is really not a bubble in the public markets? -- itapple was forecast is always the main event in tech earnings accounting for pretty much all the earnings growth we see out of the sector for this quarter. long-term prospects are pretty good. i looked at numbers on compounded annual growth rates in earnings going for the long-term, three to five years. the t

turning earnings announcement with ceo tim cook said sales were strong and meeting expectations.ctual sales for put into a basket so the iphone is really their cash cow when they were a little vague how well they are doing with the watch. some people thought they didn't necessarily do as well. dagen: and will be a big if people gave. nicole: i think there's a lot of people that wanted. the cheapest is around 350. if you go up to gold, 10,000 or 18,000. kick it off with 400 bucks. dagen: that sounds more my speed. thank you, nicole petallides. suffering the worst one-day drop in eight years will run down the numbers for you. in the u.s., big weekend earnings. twitter and facebook out among others. twitter found a new ceo. maybe we find out checking u.s. stock futures. right to report on the dow. you are watching "fbn:am," your first look at morning market and breaking news. ♪ dagen: breaking news this morning. the bears are back with a vengeance in china. the shanghai composite down 8%. the biggest one-day drop since 2007. we have the latest details. u.s. stocks under pressure ahe

you look at a company like ibm, and apple, with earnings down, if you google it, and ibm, you get, tim cook, and how is he going to do, but if you google, ibm, get a plethora of articles about can she safe them. >> women need to be viewed as individuals based to style. charles: we have to go, they are yelling at me. but, carly fiorina was given shaft when she was dismissed. >> i agree. >> mark herd road a lot of her investments. >> that is right. >> you think you were fired up on that one check this one, cheaters beware, the hackers who broke into ashley mad sop ashle, they are unveils the names, we'll be back to talk about it. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. ci

tim cook who is running apple isn't running it the right way.ording to the key businesses he should be addressing, you argue he is not. explain. >> thanks for having me on. when we talk about a core business, we look at the earnings estimates and earnings reports coming out after the bell. we have to focus on the iphone. why are we learning more about the watch? the watch is wearable, a new market and apparently not doing very well because if it was selling in the millions and millions it was expected to sell we would hear about it. they would be crowing about it but they won't break that out as part of the earnings report. neil: what does that mean? disclosed apple shareholders regardless, and they could just be saying some new product launches have less bang for the buck and referred to the initial ipod sales, the initial iphone sales before they lowered the price. you are just not be leaving that. >> if watch sales were doing so great they would delineate that out. the second thing is we have been hearing a lot of rumors about an apple cart,

investors seem to be convinced tim cook is doing what he needs to do. that might not be the case for other tech companies that will be reporting later on today, whether it is yahoo! or microsoft. the common thread is you have new ceos trying to put their stamp on the company. ofissa mayer still has a lot work to do. now that the alibaba news has been announced, what will be the driver for yahoo! to get back on its feet and post revenue growth? guest: a lot of folks want better understanding of the tax situation and the spin off of that. analysts are looking for clarity and some of the write-downs from the note you deal -- no kia deal. analysts are looking for that from both of those companies. betty: back on chipotle and we had news rum shake shack. i know we want to hear about the pork issue, but what about pricing? guest: there is a chance a price hike is coming. hasn't deterred customers and gives you a indication of how strong this brand is. they have set we raised prices and it hasn't cover the cost, so they are still losing money on beef. the pric

tim cook has made a big splash, going on a lot of pr tours. apple relies on china for 29% of sales overall. the iphone 6 was a big hit, but we saw from ibm, china is an area of concern as well. emily: obviously, the massive selloff in tech. one of the interesting things happening is that the smart phone market is saturating, but at the same time, the replacement market is accelerating. people are buying new phones more quickly. maybe not as many people are buying their first phone, but they are buying their second or third more quickly. what we have been able to tell so far is that the iphone 6 and the six plus have been a hit with customers. revenue in china went up 70%, a big shopping quarter, the lunar new year, but it seems apple has not felt the china pinch. looking for clues about that and how well apple continues to do in china with all of this volatility. mark: you mentioned at the beginning, it does seem kind of close to the vest, tightlipped, but why? emily: it is apple, they are a secretive company. mark: we go through this every fe

i look the -- all the operational directives that tim cook has made. a great product and will be a great product when it comes. but i don't own the stock and i can't get excited about owning the stock because i think that the one big mistake that tim cook has made over his tenure as ceo is that he's wasted now $130 billion on apple's dividend and stock buyback policy. i don't think it has created any extra value for shareholders. one interesting thing is if you look back to september of 2012 almost three years ago, and you look at what their cash levels were about $120 billion then. they're $200 billion now. they're up about $80 billion but they've taken on another $55 billion in the credit card in terms of debt to fund their buybacks. and giving it i a way through a drive-through window. >> every company in the s&p 500 is doing that essentially. because borrowing costs are so low and cash is overseas. >> yeah. but the net result though melissa is that the increase in market cap between that point and now is about $130 billion. it is equal to this kind

but tim cook suggested that says that it could save the company in the holiday season. >> yeah they are build inventory and trying to get more of these out there because they think it's going to be the perfect stocking stuffer. if you think about it most people have phones a lot of people have tablets and computers. so if you are looking to buy an electronic gift for someone, a wearable does make a lot of sense. but the problem for apple and the smart watch market is finding a good reason to have one of these. but if you are buying it as a gift for someone else like your nieces or nephews, your children your parents, it's easier to say, oh, yeah you know i'll get them this. they'll find a reason to use it. >> and there are some studies out showing that early adopters are happy with the device. but how many find it functional and worth the money. quickly in the minute left iphones are outselling samsung devices in south korea. how significant is that? >> that's crazy. you know samsung has been struggling for the past year. they have had a lot of issues getting people to buy their devices