the two they would approach the size of a fortune 50 company those are two big initiatives under tim cookbles he points outgoing well over 50%. said if you tally the last four quarters wearables saying wearables would be bigger than 60% of companies in the fortune 500. here is cook talking more about the services segment take a listen. >> what's more we had double digit services revenue growth in all five of our geographic segments we surpassed 420 million paid subscriptions to services across our platform and we remain on track to double our fiscal year' 16 services revenue in 2020. >> reporter: and we know more services are on the way, apple card they just said will be coming out in august no hard date there, but also arcade, the gaming service, and the new video streaming service, too. pointed out that the end of the quarter with 211 billion in cash and a net cash position, he says, of 102 billion back to you. >> josh, thanks. josh lipton. let's bring in loup ventures founder and "fast money" friend gene munsters. highlights to you of the call? >> melissa, just the power of the ecosyst

emily: tim cook saying the app store all in the double digits. the and monthly viewers on the apple tv app are up -- he is saying monthly viewers on the apple tv app are up 40% year on year. what are you most excited about. apple plus, apple news, applecart, apple arcade? dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. you have apple care which nobody talks about, where if you break your phone they will replace it or fix it. there is the tv. they came out with a new package on apple tv. it was met with not much of an applause compared to netflix, amazon. you see more people writing apps, more gaming. , this music,ion is the tv. than aants to spend more billion dollars in content, try to compete with netflix. i think that is the more exciting component on the service side, seeing what they will do on the entertainment side. emily: we will be speaking about huawei a lot later in the show. a leader in 5g and competitor to apple in the smartphone business, and has become sort of a pawn in the u.s.

emily: tim cook saying the app store up in the double digits.his is significant as they try to grow their services portfolio. he is saying monthly viewers on the apple tv app are up 40% year over year. jan, which service are you most excited about to come this fall? is it apple tv plus, apple news applecart, apple arcade? , dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. they are mostly gaming. you have apple care which nobody ever really talks about, where it is this warranty on your phone, where if you drop it, they will replace it or fix it. then there is apple tv. they came out with a new package on their apple tv, it was met with not too much of an applause compared to say netflix, amazon, disney and fox. spaces ever-growing. you see more people writing apps, more gaming. where the action is, this music, the tv. that is what everyone wants to talk about. they have to decide if apple wants to spend more than a billion dollars in content, try to compete with netflix in bringing out shows.

jeff williams is more similar to tim cook than steve jobs. critics wonder if williams is up to the task of ceo, especially when it comes to iconic designs. women and we. the growing marijuana industry is increasingly dominated by men. jordyn holman joins us. first, to the markets. abigail doolittle has been watching tech shares. abigail: you are right, today is all about tech and chips. slightly, slipping between small gains and losses. up .3%.500, the nasdaq, 50% of its waiting coming from technology, so some nice outperformance there. the philadelphia semiconductor index, up 1.8%. on pace for its best day since the beginning of july. one of the best performers for that sector and tech, micron. micron is up four days in a row today, getting a nice boost. almost 10% over four days. investors piling in after the last good quarter but today goldman sachs upgrading to a buy from neutral. this is the best way to play that trend. but there are other stocks trading higher on a goldman upgrade. that is boosting the tech index to outperform the major

tim cook says it out loud.his story of, can they design another category-leading product, i think it's time to put that to bed. there's not going to be an iphone or another ipad these things change the world. are they going to compromise the user experience of these products to push their services is the heart of the question >> the other question it raises is what the bench looks like under tim cook are there any -- is there any reason to wall street to be concerned. >> so that is a great question johnny ive was equally as famous as steve jobs. that was his voice in all of those product design videos. >> angela aarons was a rock star and she left >> and part of that "wall street journal" story is they brought in a bunch of fashion people to market the watch and that didn't work out and now it's a health and fitness device, which is where the focus has been i think they're trying to show you the bench. >> you know, you just mentioned service, but i think the whole point of this report and even the comments you'

we were talking about tim cook moving production of the mac book back to china that was an interestingignal to send around the time of the g-20 but ahead of any sort of deal made. >> it's very clear we've seen this time and time again. moving to lower cost production, places don't really work the headline makes sense the idea of moving your entire supply chain to vietnam or mexico is a hard thing it will take a lot of time these announcements have just been window dressing in a time where a lot of these companies have to be very careful in their dance between the u.s. government and china because those relationships are very, very important it took them decades to make those relationships as far as their supply chains are concerned. so the idea of just kind of letting them go by the wayside doesn't make scene >> companies have to do their due diligence in trying to move their supply chain because they don't want to be caught on relying on china going forward if anything you see whether it's incremental, people will move their way way from china >> we saw that with cisco's earnings they

he is more of a tim cook than a steve jobs.: and psychedelics, where better to look at them burning man? jason: this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: and i am carol massar. join us for "bloomberg every day on the radio from 2:00 p.m. to 5:00 p.m. you can also catch up on our daily show on itunes, soundcloud, and bloomberg.com. jason: and find us online. in the technology section, apple's heir apparent, he is much more like the current ceo than founder steve jobs. carol: he became the second most important person after it was announced johnny ives would leave the company. jason: there is reporter mark gurman in los angeles. mark: at these major tech companies, apple included, there are two types of succession planning. there is what happens if something happens to the ceo tomorrow, and then there is the long-term replacement succeeds the ceo if he retires at a normal age. jeff williams is about three years younger and fits the mold for both. if something wer

maybe tim cook will have a little more on the earnings call.se of intel's 5g business, that 5g chip business, what that means for apple going forward, if they can make their own phones. when is the introduction of this new generation, next generation 5g iphone that we're expecting? maybe not this year but 2020 hopefully. connell: 2020 is the focus from that, for that. lance, your outlook for apple a stock up seven bucks after-hours, more than 3% what do you make what you heard so far of the quarter? >> nothing here really surprises me except maybe the wearable numbers which have gone up. they must sell a lot of airpods and apple watches to do that. they're performing pretty much at this point in time as i expected. i think the really important thing what is tim cook going to say on the call as it relates to 5g? how is he going to characterize the intel acquisition, intel mobile acquisition, how will he explain or probably not explain what's not going to happen in the fall which is 5g iphones? we're not going to see them. he has got to sort of n

tim cook has to play them both ways and he has to thread the needle here.t will be one that think apple is one of the most important pieces of this entire trade game. >> you think it is going higher? >> well, stay tuned to "options action" for that >> i like that. >> just quickly remember how important apple is it is no longer a growth stock if you are playing style versus value versus growth, it is an 8% weight in the value index. >> let's take a quick break. coming up, wall street is hungry, hungry hippos, folks investors have been gorging on fast food stocks but could serious hunger pains be coming their way? we will dig in plus a tale of two stocks, best of times and worst of times for these two names. we will break down today's big movers live fromim sare tesquin new york, much more "fast money" right after this ♪ >>> this cnbc program is sponsored by zantac. eat your way, treat your way every day, visionaries are creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more

david: tim cook pushing back on the narrative in the media that jony ive's departure stemmed from cook'sack of interest in design. cook said that narrative shows a lack of understanding about how apple's design team works. what do you think? how do you justify that? >> i think the interesting part of this story was that it was so big that tim cook wrote it in a personal e-mail to a journalist to refute it. so it really got stuck in his craw. the interesting point i think about his e-mail was that he did not actually say how much he was inserted into the design process which was one of the big negatives. david: he's clearly not a steve jobs. he's the guy -- after all, apple put together stuff that other people were putting together but they put it together with a design form that was unique. it's that design form that jobs had that tim cook doesn't. susan: steve jobs is a visionary. in this article, they criticized him for being operational. that's kind of what he was. he was a c.o.o. thrust into the ceo position. david: that's jony ive. susan: basically the "wall street journal" article

i think tim cook will talk a little bit about how they are looking at other regions., malaysia perhaps, all the typical regions that offer low cost manufacturing. that kind of lift takes at least a year. i think they have been doing it quietly and i think activity will pick up. caroline: tim said, we are confident about what is to head interesting, europe slowing down given the economy and the fact that we are waiting for next quarter's releases. talk about what we are expecting .n the next set of iphones this i'm glad you raised point because what we typically sell with apple was new every two. a brand-new iphone, a hardware update every two years. said we are now on a three year cycle. i think, this year, we are probably going to see a feature upgrade to the hardware. maybe camera systems, fingerprint sensors, but i don't think you will see the major upgrade like we saw with the iphone x. i think the big lift on that front is coming in september 2020 with the 5g version of the iphone. caroline: we wonder how the intel purchase integrates into all of that. butler of

when i played that out to tim co cook, at josh knows, crickets. they are not there yet but i will get them there. i will get them there. and what i need is just one analyst who covers clorox a 2% grower to cover apple and we'll get a 260 price tag. >> you've been trying to get apple in a different basket for a while. you believe that this is a transitionary quarter from iphone to ecosystem. >> without a doubt that is how i get at 260 that is a 20 multiple on next year's numbers still a discount to every package good company but if you tip to where revenue a recurring stream, you cannot keep that multiple down. you cannot continue to give it a 16, 17 multiple. >> katy huberty did complain one of the letdowns was app store growth did not translate into total services acceleration. >> i think she was using 16% growth if you include the 300 basis points president trump please notice stronger dollar, 300 basis points you do get to 18. was there is a certain stream that may not be that good? i'll tell you i get that apple credit card august 1 and there

>> they're headwinds in terms of what you'll hear on the conference call from tim cook. >> $30 from its all-time high. >> okay. and i have stated not that i believe that the faang's are going enclosure, but i believe you did not have to be in the faang's to get the appreciation of technology that you could get out of some other names, names like motorola solutions which is performing very well but you're talking about apple being $30 above the all-time high yes, that's the high from 2018 >> the low >> the low how about getting back above the may 1st high in 2015 in may apple went from 215 to 170, that's a 18% decline, because of the concerns as it related to was there going to be a brand image problem in china now, the question becomes was some fundamental damage done in china? the evidence suggests yes, possibly, it was so you might be looking at a valuation and a price for apple that is pricing in exactly where it should be we will not know the answer to that until tim cook tells us on the conference call how the business has looked in china >> weiss, how do you see this? >> i see it

if something were to happen to tim cook, everyone we talked to says jeff williams would be able to slidet the company missing a beat. in terms of long-term succession planning, it depends how much around.im cook will be if you will be the ceo for the next five or seven years, he is almost 60. jeff williams would be able to slide in. around. so he is the heir apparent. the nexty likely to ceo depending on what happens to tim cook, not that there is any reason for him to step down in the imminent future. but long-term, i don't think that person is even at apple right now. carol: talk to us about mr. williams. what kind of person is he? what has been his experience inside the company? >> the recurring theme is that jeff is very modest. someone called him the most modest apple executive. some of the higher brass who say he hashere driven stock options, they drive bugatti's, jeff williams is not like that. in meetings, he can be demanding , but at times, he leverages his lieutenants to the barking. the neat thing is that he is almost purely an operations person but he does have product inside

this will be key for them, this is tim cook's challenge.ing: apple right now is a company in transition. they are figuring out how to leverage their iphones that they have sold around the world. they have a lot of leverage. there is roughly almost one billion iphones out there. there is a lot of platform for them to work on. i do believe the catalyst would be the services business going forward, specifically we are most excited about things like apple pay. you have the apple credit card launching here in a couple of weeks. we think that is going to be a big driver of future revenues. apple has done a good job figuring out how to leverage those iphones. i think they need to execute on that in the moment. about apple is trading at 18 times earnings. do you think moving forward, because it will become a different company, maybe a five-year window, does the market attach a different multiple to the stocks because it will become a different company? king: i think you are right. it will not have the same multiple as before. apple never really has

last night, tim cook wrote to our colleague at cnbc said this is nonsense.part of the email. this is absurd, although the reporting don't match with reality. >> well, i wonder what jony ive has to say about that. >>> coming up, axios' nick johnston has a look at the one big thing. >>> and on "morning joe" new questions over disturbing posts allegedly made by border patrol agents. the shocking statements allegedly made by the agents, joking about the death of migrants and migrant children and making derogatory comments about latino members of congress. >>> democratic congressman ro khanna will explain why an investigation is needed right now. >>> plus, deval patrick and stanley mcchrystal join the conversation to talk about their challenge to the 2020 presidential candidates over national service. "morning joe" is just moments away. oe" jisust moments away nothing feels like connecting with the people that matter. holiday inn. holiday inn express. we're there. so you can be too. depend® fit-flex underwear for all day fun... features maximum absorbency, ultra

on the earnings call tim cook described the change as a success in diversification >> what's more, we had double digit services revenue growth in all five of our geographic segments we surpassed 420 million paid subscriptions to services across our platform and we remain on track to double our fiscal year '16 services revenue in 2020 >> as tim cook said, that decline in iphone sales wrauf s offset by growth we're talking about ipads, mac computers, and that services business which includes the app store and apple pay. as for fears for the u.s./china trade war, investors were relieved to hear greater china sales dipped only slightly that was a change from earlier in the year when the company saw a pretty big drop. apple shares, brian, as a result, up about 4%. $9 that means just about every bit of the dow's premarket gain anticipated for the opening bell is just apple stock alone. back over to you >> it's a price weighted index so you get a big priced stock like apple making a big move, then the dow is higher we'll see you in a few minutes. >>> we are just getting started. on deck, one

to what tim cook is talking about?ly -- i wouldn't say was overly negative, but had a negative edge to it did feel that design has fallen in terms of its importance, that as was said and cook denied, of course, his focus is not necessarily on that. and then mr. ive himself had been more disconnected from the overall process over time. >> i don't know. >> caring for an ailing parent -- >> why the innovations i walk around italy, i walk around wall street, walk around midtown, and everybody has white things falling from your ear if they were so ugly or weren't designed -- oh, no, he designed them too give me a break. there is a team. >> right. >> and there is -- it is a group of people. and everybody knows this group of people. the article acted like there wasn't a group of people michelangelo and then just people that -- the pretenders. >> meanwhile, apple itself. >> the winner in trade talks >> yes the winner in trade talks, you feel as though if things had continued to worsen, apple is in a precarious position. >> yes

are you happy with tim cook's strategy there?e, it is still a big challenge for them and, you know, they have some new phones coming out this fall, the iphone 11. probab much is going to happen there, but next year they're supposed to be issuing their 5g, potentially a foldable phone that will compete against samsung. i think that's going to hopefully generate some of the upgrade cycle they're looking for. >> dan morgan,nk tou so much. dan is with synovis trust. >>> and on wall street the dow snapped a today with a modest decline. certainly earnings are important ut so are the trade talks i shanghai, and it probably didn't help that president trump renewed his attacks on china just as the talks were getting that seemed to contribute owday's minus signs with the industrial tank 23 points to 27,198. nasdaq was down 19, the s&p slipped by 7. r eamon javerseports tonight from washington. >> reporter: even as the u.s. delegation arrived in shangha today for a new round of trade e talks, presi trump gave a conflicting assessment of chi

innovation, that kind of transformation and revolution cannot be carried out by the current ceo, tim cookh this is such a hard and tough question but fundamentally what we see is when companies are capable of making these major shifts, there tens to an top overhaul at the top management team. if you look at microsoft, it's the current ceo, an outsider, who made this major shift. you look at dell computer, its major reinvention is taking the company private to change dell from selling pcs to private solutions. apple is a homogenous team, the next ceo, jeff williams, insides would say he looks exactly like tim cook it's hard to tell what's going forward, but a major shift coming out from the current management team would be hard to see in the foreseeable future. >> thank you very much for your time this morning. appreciate your time. >>> the democratic primary race for the u.s. presidency pulled up to the motor city last night. ten hopefuls locked horns for the first of two debates in the midwestern city. jay gray was there to watch. >> reporter: from the start, the ten democratic hopefuls

based on the proposals that are being debated right now in the g. 20 and even the head of apple tim cook said his company would be willing to pay more tax if the legislation if the rules would actually see for that i mean they're saying of course they're avoiding tax right now tim cook i said the specifically but that's because that's how the system is designed to work if the system was designed to make them pay more taxes they would do it. or until to thank you so much thank you. and from a man at the center of a bitter legal battle over whether he should be allowed to die has passed away in hospitals doctors in france removed life support more than a week ago against his parents wishes he had been in a vegetative state after being involved in a car crash his case is divided his family and the french nation. they held a vigil for him pro-life supporters who followed the fight through the courts to save his life now they are mourning the death of a bath. the death penalty was abolished in france and we can say whatever we want to about that we abolished the death penalty for the guilty b

based on the proposals that are being debated right now in the g. 20 and even the head of apple tim cook said his company would be willing to pay more tax if the legislation if the rules would actually see for that i mean they're saying of course they're avoiding tax right now tim cook and so the specifically but that's because that's how the system is designed to work if the system was designed to make them pay more taxes they would do it. out until to thank you so much thank you. this is d.w. still to come that dream lives on in football fever as the national team prepares for the quarter finals of the african cup of nations will join in the. first so the european union is to put climate change at the top of its agenda for the next 6 months finland has just assumed a block 6 month rotating presidency in the finnish province that believes the e.u. should provide global leadership on this issue until then says it is important to take the demands of the continent's young people seriously. 16 year old. spent many fridays travelling 2 hours each way to protest at the finnish parliament hold

based on the proposals that are being debated right now in the g. 20 and even the head of apple tim cook said his company would be willing to pay more tax if the legislation if the rules would actually see for that i mean they're saying of course they're avoiding tax right now tim cook so the specifically but that's because that's how the system is designed to work if the system was designed to make them pay more taxes they would do it all right. thank you so much thank you dodge madagascar which is in the grip of football fever the national team defeated 3 time champions nigeria to top their group in the africa cup of nations they now face to mizzou in the quarterfinals it's a huge deal for the island nation. celebration as it may well already well champ hands full fans on the streets of the capital singing for the national team. not against the have won 3 matches in iraq and now they're just 2 wins away from the championship game. it's one of the all time fairytale stories in africa cup of nations history and the whole nation is behind them. 24 year old to. sue is a huge fan he's been

like tim cook, he is a true tested apple veteran he also like cook is experienced as an operations guys taking on more responsibility in product design too the watch has been his baby for years. and of course we learned that when jony ive stepped down to design are going to be reporting to jeff williams i think that's interesting in part, kelly, because at apple they are now focused most are on operations than product design of course you saw tim cook come out and rebut those reports. it's not so much that one is superseding the other. is it possible that just operations and design maybe they work more hand in hand together than in before because apple today is just a very different company. it's so much bigger, it's so much broader, selling hundreds of millions of products. maybe the ascension of jeff williams kind of speaks to that trend. >> josh lipton >>> just about 15 minutes to go until "power lunch." here's tyler mathison. >> we are going to take a second-half playbook and we are going to talk housing in the second half and take a look at what could be expected there as interest

what are we going to hear from tim cook regarding the supply chain. what are we going to hear from tim cook regarding the president's comments last week where the mac pro computer is not going to get the tariff relief that they were looking for. >> that doesn't sound to me like stock-moving information got to hear about iphone and services growth. >> it's iphone weakness which we all know numbers have been coming down versus how much are services going to grow. is it going to decelerate? >> it can keep up the pace >> exactly right. >> to make up for the growing growth in iphones. >> especially because the carry is higher margins than iphones very important to the bottom line. >> yes. >> the question is is it preval% services growth or 16? i saw 18% growth yesterday from another analyst so the numbers are all over the board. >> that's why we need to know. >> i mean, this is everything. >> like, that's the biggest question, and i think it's not a question on how weak the iphone sales are. we know they are going to be bad, and then you have to look throu

. >>> coming up, tim cook says don't believe the headlines on internal divisions >>> bitcoin comes backn to earth. >>> big cars are still in big demand. >>> and people are paying others to help them calm down >> remain calm >> it's all ahead in rapid fire. the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. but prevagen helps your brain with an ingredient ♪ originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back let's catch you up on a few stories that should be on your radar today. it is time for rapid fire. here with our takes and to break dow

come on, weiss >> it's true i bought in spite of tim cook, actually and i disagree i don't think they're doing such a great job. services growth has slowed it's gone from near 20% to 15% to this quarter 13%. >> it's actually 18% >> it's actually -- if you factor -- 13%, but if you factor out some of the details they've got right now from the financial, legal side of things, it's an 18% run. >> i'm sorry i don't deal with creative math. i deal with -- >> it's not creative math if it's fact. >> it shows that -- >> yet he's buying >> it shows revenue -- >> i buy it because of fan boys like you >> has nothing to do with being a fan boy. >> no, that's cool he can be. i've only owned this the longest any of stock i've owned. >> i teed you up for toni. >> i bought it because the 2020 launch of the 5g phones are going to be the biggest upgrade cycle we'll ever see and they have to parks ss, as we seen in prior quarters when the x was launched, there's a pass up until that occurred so you get a pass on this for the next year. okay this can be a phenomenal, phenomenal grower, but it's not because

tim cook is incredibly good at what he does. but the big picture, if you look at where the company wants to go. it wants to build areas of its business where it does not have the proprietary pricing power or the originality or inspirational please buy me product features it does in other areas. i think it will be challenging. >> we just heard from tim cook on the e call. the apple card will roll out next month. mac ipad sales are growing as well. so as you mention, they are trying to find growth in other areas. especially when iphones are not selling at the levels they used to. >> but those areas aren't in areas where they have a world beating product. that is not markedly different from spotify. so it's not the same as when you have devices in the jobs era or at the end of the jobs era that were unlike anything else you could get anywhere. kristina: the reports that would encompass 5g technology. speaking of 5g, the acquisition of the intel property. what do you make of that and what hurdles do you think apple could face in the

what has tim cook been saying? number one on my list is china where apple booked a much better than expected quarter. sales were down 4%, but this compares with high double-digit declines in the last two quarters. in my view, we are seeing improvement in a key region that accounts for about 20% of sales. i would say this -- iphone sales were little bit weak, but if you look at all other products, not iphone sales including services, they were up much higher than people expected. up 17% year on year, according to the company. they are doing well across the board which to me tells me they are getting a very good grade on diversifying the business. the iphone, which in some quarters not too long ago, represented 65, even close to 70% of revenue is now about half the business. they continue to diversify and really push those key growth drivers, including services and some of the newer products like the apple watch and ipod -- air pod, part of me. what appleiphone is still needs to be getting into consumers hand in orde

you have a new piece about apple's coo, jeff williams, who has tim cook's old job.f current and former employees about his management style with johnny ives leaving. he has basically the entire design team reporting to him. tell us about jeff williams and what you have learned. mark: williams is a very respected manager, ceoo of apple. he does more than what his title seems to indicate. he oversees all product development at apple. he is in all the meetings with a lower level engineers. he's also a pretty modest guy. his big beach house in coastal california, he calls his shack. he has a knack for being pretty modest. he used to drive a toyota camry even though he was at an executive level. he would cycle between office meetings with far more junior employees. he's pretty much on the ground with the engineers, visiting the factories very often. he is a big part of what keeps apple running. if something were to happen to tim cook in the near term, he would be able to step in and there likely would not be any hiccups. emily: wink-wink in your story about him possibly

paul and mike, thanks. >>> all right, coming up - >> did you get a christmas card from tim cook?know what i don't like to talk about private letters that i get or correspondence that i have with people i'm sorry. >> i'll talk to him for you. >> i did get a nice card. >> oh! i knew -- i can flesh you out. >> well -- >> i knew i would. >> you lead me into it we'll talk trade, the fed, the taxes and last night's debate withenor sat rick scott. he'll join us after the break. hi, tim. stay tuned you're watching "squawk" on cnbc we create financing options for your customers. to help them get the things they love instantly. our data provides insights into what your shoppers have already bought. so you can offer them what they might consider buying next. our financial and tech solutions are changing what's possible in all sorts of ways. so, how can we change what's possible for you? >>> welcome back, everybody. senate preparing to vote on the budget deal and while it's expected to pass, several republican senators are planning to vote against that deal including our next guest joining u

tim cook will make comments about china and when it comes to china and the tariffs, shame on him for get an exemption from the tariffs and the macbook pro. we're talking about a fraction for some of the parts. china will be a focus. cheryl: president trump tweeted and is frustrated, basically told apple and tim cook that he's not going to give them that ex. >>exexemption. he'll be asked about china and the tariffs. how do you think he'll respond. >> he's been diplomatic from the get-go. i expect him to be diplomatic. this is the cost of doing business now. cisco's ceo said it best a couple weeks ago. they had to adjust. they adjust the supply chain to minimize the impact of tariffs. apple can do the same. the mac pro parts originally were made in techs as. there's no -- texas. there's no reason why they can't find a way to sort them outside of china. cheryl: he's person especialls part. you men'sed services -- you mentioned services. we're looking for strong growth out of the apple watch. what about the apple tv, the streaming service, the gaming service is launching later this year

and services are a huge service for apple bigger than a fortune 50 company in less than the time tim cook was ceo. do not dismiss the streams or coming credit card street. that will produce more revenue than anyone on wall street is expecting including the uber bulls will be able to have a long term value of a subscriber when this is done, own it, don't trade it what else? lately we had a slew of reports showing american companies are cutting back exposure to chinese manufacturing. the old restoration hardware ship in sourcing and blew away the numbers and fell to $8 today. thanks to the leadership of its ceo gary freiedman why? they say it's and i'm quoting from the report a result of lower demand in the chinese light duty trucking construction markets, end quote that's closed down $8. that wants you want to flee from industrials and hide that benefit from lower interest rates like the one we're supposed to get tomorrow d.r. horton say making a fortune, great quarter or treks makes plastic decking that looks like real wood i got it you can't tell both split hard. it's up 19% as its addin

we also heard from ceo tim cook deflecting the worries about china.re was a marked improvement in greater china. we know that economic growth is something that is slowing in china. that is a major market for apple. so how is it dealing with those challenges? i mean, look, that is going to be the issue for apple because we have 60— 70 million iphones, it comes down to them putting a fence around their backyard. they need to see a ca ta lyst backyard. they need to see a catalyst for this upgrade. and that will be the focus, especially with lower cost competition, and you look at huawei and what is happening in the region, and that is why i think their bark is worse than their bite, and that is what you saw this quarter in terms of iphone and specifically china demand. as you heard our technology correspondent dave mentioned, as well, in the past whenever apple launched an iphone, that usually meant raising revenue and sales. that may no longer be the case, so how can they manage growth going forward is? yes, i think he did a greatjob summarising it, bec

and tim cook says he is return -- thrilled at the return to growth. results expected to confirm a 60% drop in operating profit rate >> >> and south korea industrial production for the month of june, when it comes to the seasonally adjusted month-to-month we are seeing growth of 0.2%. but still growth recovery from the contraction we saw in the previous. . estimates ofssing growth of 0.3%. the number for may has been revised to a smaller concoction that it was thought initially, to a contraction of 1.3% from a. year-on-year, it is a bigger contraction than expected, a contraction of 2.9%. the estimate was for a fall of 2%. it would mark the second consecutive month that the year on year gauge is in contraction for factory outputs and south korea. so both numbers missing estimates. the bigger fall is on the --r-on-year number from 2.9% of 2.0%. a down cycle in the semiconductor sector weighing on the economy. we are getting export numbers later in the week. that is also expected to contract for eight consecutive months. already the first 20 days of july

although i don't think he meant to when i say apple in extension, tim cook haven't gotten their fair share of prize. when will the analyst stop worry about the slowing of the cell phone business and focus on the vibrant service revenue screen people don't understand how to evaluate the new apple just listen to the headlines from the digital "new york times", quote, apple reports declining profit and stagnant growth again end quote which is better than the news print edition that said declining profits again and apple's latest quarter. the "wall street journal" weighs in quoting an analyst, asked about apple's relationship with the nigh niece and says quote it's not a matter of if but when apple gets in china. end quote. the problem with these two stories, how about the fact apple's china's business accelerated the quarter and so consistent it got stronger and stronger as the quarter proceeded, there is a tax cut and trade and stuff but hey, it was better here is what you need to understand iphones account for less than half of apple sales and you ignore the revenue stream. that's a s

i think of it more as tim cook is an amazing ceo.e's done a great job of taking what steve jobs gave him and taking apple to a whole new level. design is in apple's dna, so i think they'll be able to overcome johnny ive's departure. but an amazing career at apple for johnny ive and i think the company is still well positioned, going forward >> great we'll leave it there gentlemen, thanks for joining us, brent and tom. >> thank you >>> when we return, the winners and losers from the g-20 summit. why apple might be this weekend's biggest winner more on that and this morning's cease-fire rally, straight ahead. >>> and later, inside the secret koch brothers' summit. tooladspngt coro ris after the break. stay with us >>> welcome back the president restarting talks with north korea and china on denuclearization and trade over the weekend. kayla tausche has been all over the story. she's in washington on the difficult road ahead of negotiations kayla, the big topic today is, yes, a truce is nice, but how do you actually get a deal from here

ceo tim cook says the decline was actually good news. we'll tell you why.reserve's decision, the central bank expected to cut interest rates today, first time since the great recession back in 2008. markets and the health of the economy on tap right here. futures right now getting a lift from apple, trading up, 60 points, quarter of a percent on the dow. s&p futures up 4 and a quarter. nasdaq higher by 25. general electric out with a double beat. it raised its profit outlook. the company's cfo is stepping down and the search is underway for a replacement. the stock is up almost 5%. we've got more on that coming up. yesterday, the markets slipped after president trump made a comment about china trade talks, saying that china does not come through on its agreements and warned china not to wait for the 2020 election to do a deal. trade negotiators will meet again in september, this time in the united states. mnuchin and lighthizer are in shanghai today. markets this morning globally are mixed. take a look at the europe indices, fq100 down 50, cac up 4, dax up

thank bill gurley, for sure i'm definitely not going to be doing that >> it reminds me a bit of tim cooking that the ipad was the future of the laptop when -- >> oh. >> i think she jumped the gun -- for some people, arguably, the laptop was the future of the ipad >> no, no, no, the phone is. i use my phone, jon. the phone is the future of everything the use of the phone >> ipads are big if you're 10 years old. i can tell you that much kara, really fun we'll see you soon >> i'll be walking home. i'll be walking home >> great >>> up next, sprint and t-mobile are merging, but what does that mean for you boost mobile founder peter adderton joins us next on that and the implications for 5g after the break. don't go anywhere. hobbs & shaw. you want a war you've got one. [ "psa" by jay z ] we're never going to survive their firepower. we're going to need cars... and guns. oh i can handle that part. i got your back brother. and me yours. [ laughing ] [ screaming ] >>> welcome back to "squawk alley. the number three and number four american phone carriers, t-mobile and sprint, are one step closer

. >> it reminds me of apple before tum co tim cook >> yeah. >> okay.y i hear you >> brilliant guy at top, lots of ideas, always coming out with new stuff, people who love apple really love it, but, boy, their operations -- >> and part-time ceo >> hey a lot of parallels >> and a car person who is also a tesla person and see what they say. >> i mean, i just -- to me, i want tesla to be successful, because i want to believe you can create a car company and create, you know, in traditional industries, you can really break out and make things work so i'm cheering for them but this doesn't make me feel better >> well, that's why brand-new car companies are few and far between. >> yeah. >> roger, thank you. >> my pleasure >> good seeing you two days in a row, roger mcnamee. >> later this hour, livongo just opening for trade. the executive chairman joins us in just a few moments. that stock is surging off the bat, up 60%. stay with us so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commer

been his tim cook has best friend talking about the expansion and employment they will do in the u.s.pple would like to make the new macs in china. --le was making some enoughd trouble getting people, frankly, americans are physically larger, had trouble working with a small components and so forth. i would say it is probably not going to turn out to be that big of a deal. concern about china trade, regulation, it gets blown up. vonnie: previously, the company said final assembly is only one part of the manufacturing process. will apple like? to see.ll have in general it's proven very difficult for them to move things out of china. they are trying to work with foxconn and some of their assemblers to do things in vietnam, malaysia, but the supply chain is so strong and different in china, ultimately, they cannot move things like iphones to the u.s. they may find ways to satisfy the government here. this is not a high-volume product, per se, but we will see what they decide to do. these when you look at companies, whether apple or google, companies that have enjoyed a tremendous amount

tim cook talked to cnbc last night.ve made no significant changes and reiterated how many countries apple products are actually manufactured in outside of china from japan and korea to the u.s. with us today to discuss that and a whole lot more, former yahoo chief operator, welcome, good to see you. >> thank you >> so the supply chain worries on apple, where do you think they want to make stuff and where will they? >> i think where they want to make it is cheapest and where they can make the best quality they're playing the game now of sort of wak mow where you got to watch the tariffs. if you think about the long-term value of apple and where they're going. they were a phone company and now an e-commerce company and now they're trying to be a subscription company the supply chain things are things to talk about over the quarter but the long-term that's all going to be resolved, and they'll be wherever they need to be >> there was a day when there might be speculation about apple buying chag because they were so heavy i

just quick, the most interesting color regarding business in china might come tomorrow night from tim cook on the apple conference call. the last couple of quarters he's talked about what's gone and told us when there is a headwind and tailwind tomorrow night he should be able to offer insight what's it like >> can we talk more apple after the break? i have some ideas. >> we have a lot we will definitely talk apple. today ceo michael o'leary weighs on the impact of the 737 grounding on his business and didn't mince words on the earnings call earlier today. >> we were originally facing 58 aircraft for the summer of 2020, that's now 30 at best. it may well move to 20 it could move to ten and it could well move to zero if boeing don't get their [ bleep ] together quickly with the regulators >> comes after southwest announced friday its plan to pull service from newark airport as the boeing jet remains grounded stephanie, you own boeing. >> um-hum. >> the focus mainly when the jet gets back in the air on the impact on customers and whether or not they'd be willing to take a flight is also an i

ceo tim cook made the announcement me the earnings call yesterday.will make a physical card or users can use their iphone at a payment terminal. cook said some of his employees have been testing out the card. guacamole is free, but only for today. it is national avocado day. chipolte is giving away avocado for free with the meal purchase of the company or website. other companies are also giving away welcome only in various promotions today. that is your cbs money watch report. for more go to cbs money watch.com. >> break out the lime and salt. it is avocado day. >> i thought you were talking to quito tequila. >> they can go together. >> i was expecting actual drinks for a moment. >> the welcoming committee has not yet woken up. >>> it is an easy day for a weather person to fill in. there is not a lot going on. with state of the mark for average. think back to yesterday. we look and feel just like that. let me show you what it looks like. there is the view from treasure island looking back towards the city. it is dark, but if you are looking at the s

>> uh, [laughs] the answer is d, tim cook's 12-car-garage, final answer. >> yeah, not one of 'em yet.ay. >> second question, don. third one worth $2,000. to locate earring backs or other tiny items lost somewhere on the floor, "good housekeeping" suggests putting pantyhose over the end of your what? >> [laughs] i'm gonna have to try this next time we're cleaning the house. that would be c, vacuum hose. >> final? >> final answer. >> yeah, i guess it makes sense. kinda want to try it. >> absolutely. >> let's go for $3,000 with this one. >> all right. >> what is 80% of 100, divided by 8? >> i am terrible at math, so even though this is an easy question, i got scared for a second. but then we have to calm down, we look at the numbers. 80% of 100 is 80... and divide that by 8, the answer is d, 10, final answer. >> you did just fine at math. that's right. ha ha ha! >> math is the worst. >> here we are, $5,000 threshold question. get it right, guaranteeing yourself 5 grand. here's the question. in 2018, beyonce and jay-z released a surprise joint album called "everything is love," which they

. >> reporter: norah o'donnell asked apple's tim cook recently. >> is apple too big? is begin with size scrutiny is fair. would you agree with the statement? >> apple is big. let's start there. apple is enormous. on the other hand, apple will tell you that they have market competitors and they do. trip this comes in the wake of lawmakers and presidential candidates threatening to break up big tech. >> this is the first time that silicon valley is getting tossed around like a football. >> is this political? >> what is interesting is that tech is being demonized by democrats including presidential candidates, but is also getting swiped at by the white house, the current president and conservative forces in the republican party frceof joint it is stifling venture silicon valley says it remains to be seen if the antitrust investigation could change the landscape of big tech in silicon valley. >> they can present findings and make recommendations, but if you want to talk about breaking up big tech, that is something in the hands of congress. >> google was the only company