do you think apple -- go pro and apple have nothing to do with each other. go pro goes back up because it's doing well because they are user generated content, social media, virtually wallty and quad copter. that's the 2016 story. >> ambarella. >> you said it and i have no more to say. ambarella is the buy. >> we have a lot more to say. keep an eye on apple. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition t

the app store itunes, apple music and apple tv. apple hasn't said what caused the problems. citigroup will refund $700 million to consumers and pay a $70 million fine for illegal and deceptive credit card practices. the consumer financial protection bureau says citi has to issue refunds to nearly 9 million consumers. >> the white house flag was lowered in half staff to the five service members who lost their lives in the chattanooga shootings. president obama ordered the flags lowered prompting criticism from republicans. >>> archaeologists retrieved a 2,000-year-old canoe from a river in slovenia. its exact age will be determined after further examination. that is your cnbc news update. back to you. >>> thank you, courtney. >> heading to the close. coming back a little bit. the dow down 185 points. it was down about 220 at the low. >> quite the discrepancy between the s&p 500 and the dow. s&p was down less than 0.5%. >> weighting of united technologies and of ibm. and apple not helping either. >> true. up next, the ubs analyst who

apple says the watch sold better than the iphone or ipod. some apple watchers just not convinced. one of those people is the s&pa keough said apple sold only $2 million in the quarter and we were looking for more than double that. sandra: the watches are not the big name. iphone cybercash co. -- cash cow for apple. some analysts come out. piper jaffray who still thinks the buying is going higher. >> is on the phone all day most analysts say the next big thing could be the car. what a self driving car, electric car, we don't know but that might reinvigorate the stock. sandra: highlighting performance in china, all analysts have written about the concern in china. we've been reporting on the slowdown in the markets they are. a challenging environment that apple has the pedal to the metal in china despite worries about the recent drop in equities markets. microsoft another big one this morning. a mover and premarket trading after the company reported a record quarterly loss. nicole, looks like it is off a couple bucks. sandra: you may see apple shave off 50 points. microsoft did not

it is all about apple. the tech giant reports in 30 minutes than all eyes are on the apple watch. alix: but first we will hear from chipotle, microsoft, and go pro in a few minutes. of $50 a prices barrel. what is one key indicator that could tip prices in either direction? down bye market ending about 1%. no other industry is off as much is that the s&p is off by have a percent, and it all boils down to ibm and united technologies. joe: they were a big contributor to the dow selloff rated but you can see by the diversions between the dow and the other indices, this was not a particularly ugly day in the market. this was a couple of docs, and the silly way that the doubt was greeted where a couple of stocks can have a huge impact. alix: it does point out that health care reit up about 57% of the rally we saw in the s&p so far this year. do not health care, you have industrials do not have technology helping. what goes on? are about to get a bunch of tech earnings coming out, so maybe they will save us. boldly earnings are crossing right now. julie hyman is looking at them right no

apple tends to be estimates. it is that i vote number. 47.5 billion iphones in the third quarter, the estimate was for 48 port a million phones. apple depends so heavily on the iphone, so if it has lower sales than estimated, that is a bubbly a problem. on the other hand, the average selling price with weeks 5991 -- six dollars $.59$699.91. the ipad average selling price was below the estimate. the estimate about $426. 4.8 million macs sold over the third quarter that matched estimates. we are also getting at least one number that is a forecast for the recorder. it is one that is pretty much in line. gross margin forecast for 30th .5% to 39.5%. right at the midpoint. the number that really stands out to me has to be the iphone number. 47 point 5,148.54 estimated. emily: this is typically a slower number for iphone sales. we're expecting them to unveil new iphones in september. i want to throw it to bob in san francisco. i am also looking at the china number, $13.23 billion in china sales and they have become a gr

we like talking about apple products, but this makes apple incredibly important. joe: there have been a few phenomenons in recent years. one is that it is impossible to you are s&p unless owning apple. it's also impossible to imagine the rally overall could continue if apple is weak, given how important it is. alix: it accounts for about 7% of s&p income, so just for a profit wise standpoint -- talkingething we were about earlier after google reported, you look at apple and google and how big they are. there's massive inequality between them and the other companies. a few big companies and then a bunch of smaller ones. another thing that you brought up last week -- analysts see this quarter as potentially being the worst quarter for-profits the financial crisis. a lot of that is due to energy. the energy crash ringing down earnings overall and the rest of the s&p not looking quite as bad. we have these week earnings, insert to look like it might be possible that we might get the worst quarter yet. alix: and what you brought up -- do we really trust the estimates m

apple earnings are just released. we're taking a look at those numbers are 47.5 million iphones sold in the third quarter. that is slightly lower than as the mets trade -- the ban estimates. what is your take on these iphone numbers? >> the number me estimates, a dollar $.84 versus the dollar $.80. the average is about $.16. on the top or bottom line it was a mess. obviously the iphone sales were a little bit lower than expected. emily: earnings per share did beat this is not atypical of apple. >> and other really interesting number is the china sales of 13.23 billion dollars. there has been so much concern about the china economy at the big stockmarket plunge that we saw over the last quarter. emily: what is standing out to you? julie: we have the ensemble of everything, and we can pick out what is most interesting. first of all, the company's earnings per share coming in for sense of estimates. apple tends to be estimates. it is that i vote number. 47.5 billion iphones in the third quarter, the estimate was for 48 p

include apple music, apple tv, the apps store, let's hope they get them back up and running. the three big tech companies with earnings after the close, ibm king king, one reason the dow is down a one hundred points, microsoft, yahoo! run-throughs them quickly. microsoft expected to report earnings per share, $0.56 per share, a big right out and restructuring charges related to its mobile phone business. apple is trying to read good that, listen for any details on that and upcoming windows 10. then you move on to yahoo! $0.18 a share is the expected earnings, marissa meyer has been calling about mobile being its growth engine, as wall street journal phrases it, and bearing fruit, the biggest juiciest piece of fruit of all, earnings per share is $1.81 is what is expected, iphone sales of the most critical number to watch, 49.4 million units expected for the quarter, that accounts for neely 70% of apple revenue in the last reporting period, someone else is here to talk about it and i know you are trying to log on to your various apps and services on the apple apps store. you ar

apple, yahoo!, microsoft boeing just in the last half-hour. >> we have got the best analysts in just a few moments. why he says this morning is the time to buy. before we get to that, the top news stories of the hour investors would like to know whether the hits can keep on coming for apple. this morning, they appear to be skeptical. shares of apple have fallen after iphone sales rose 35%. its stillness estimates. the sales forecast came up short as well. they were planning on selling a lot. sales of the new apple watch were less than what analysts had estimated. 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

but now apple becomes a prove me. the multiple, you'll see it compressed, and now the street's going to -- you see more skeptics out there, especially going into the next few quarters. and that's what they're trying to get through on the conference call, trying to show the light at the end of this transition period. >> how do you stick with an outperform rating on a prove me stock? >> i view it as this is a name when i look out to the next year or two, i view it as one that is really going to own consumer technology, not just on the iphone 6 but as well as other streaming areas and wearables and when we look in 2017. at nine times ex cash i continue to view this, i'm going to an island for two, three years i'd own apple all day long. and this doesn't change our thesis. continues to be bullish here. i view it as a small step back but ultimately real bullish on apple given that iphone 6 and 6s upgrade cycle. >> all right, dan, we'll let you jump back onto the red phone. karen, what's your take on what we know so far fro

but it is apple watch. will be difficult to figure out the number, grouping it with ipod sales and apple tv and beats electronics. if other product sales are over 3 billion, that is sign they sold anywhere two to three million apple watches. david: $49 billion. just to put that in perspective. last year at this time they had 37 billion. imagine growth like that. this company is a juggernaut. melissa: absolutely. david: the number is coming right up. new york state is reinventing by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business can a a subconscious. mind? a knack for predicting the future. reflexes faster than the speed of thought. can a bu

apple pay, jack? at what point will analysts get a little impatient and say i want to see revenues from that? >> boy, i think over the next couple of quarters. i tell you when. three quarters from now. keep in mind, the huge upgrade cycle we had for the iphone is because of the bigger screens. there are people out there who haven't come off the contracts yet, when they come off, they'll want the bigger screens. that's all that matters for the next couple quarters. after that apple needs its next trick. liz: guys, who can take on apple? >> i can jump in there, liz? liz: sure, jim. >> mobile payments is one of my favorite topics and categories. apple, there is an example where there are a lot of innovators. big players, not the least of which is paypal and number of start-ups behind them. i wouldn't cede the mobile payments industry to apple by any stretch. liz: okay, but mark, overall. >> where things are going, if you're looking at mid to long-term, facebook and oculus with virtual reality, that's the

it's two-thumbs up for apple. you can use both thumbs there for apple, david. as a long term play how does microsoft look to you? >> it's a little trickier it's a company which was successful in earlier generations of technology. namely around pc's if we look at the shift over to mobil devices, microsoft is a far distant third behind apple and google in terms of the operating system software that's being provided. obviously, microsoft's predicaments are somewhat underscored by the fact that we're going to be giving away our window's 10 operating system to consumers. something they won the have done in the past. a company that has substantial resources both financial and technical, nevertheless somewhat disconcerting to see a company go out and spend $9 billion to buy a company, and then within approximately a year and a half later, write off the full value of that as well as also fire the substantial number of employees related to that business. the hope here is under new ceo, the company will find a better direct

top 30 -- 22 out of the top 30 suppliers for apple as far as how dependent they are on apple as a percentage of their own revenue -- 22 out of 30 are here in asia. as he would expect, if apple is your biggest client and they are performing to par, you would expect the clients across the stock prices to fall. this manufacturer -- some get 50% off their revenues. similar proportions of the revenue for a lot of the other companies. you have a touch screen maker in taiwan -- you flip the board and look at japan, similar. not all are declining but a majority are. this one gets 50% of their revenue from apple -- over to south korea, and you are seeing something similar. when you look at this board, some of these companies are both viable and suppliers of apple -- a good example is samsung. one part of the business sells them chips in the other is a direct competitor. that is a fairly complex relationship. how is this playing out in the market? we have seen better days. we are down about 1% overall, slicing and dicing across the sectors. you see that apple is playing out as far as asia is concerned

now to apple music. it has been one week since apple launched its own music streaming service, taking a bite out of other services like spotify and google play. it is free for 30 days, but after that, apple is charging $9.99 per month. including access to 30 million songs. what is the verdict? we tested it out. although from l.a., senior vice president at nielsen entertainment. david, what is the verdict? david: everything looks great so far. a lot of people going to apple music. a lot of people trying new music. with the numbers we released on downloads we don't see any negative impact at this emily: point. your review is a bit more mixed than that. not everything looks great according to you. stephen sure, i think apple : nailed the song selection. they have at least as anybody else, if not more. i'm not sold on the interface. spotify and google play have their own problems, but i think apple's system is a little harder to navigate and use on a daily basis than competitors. emily: interesting, david, y

obviously a start with apple. shares are off of their lows, still down after iphone shipments and guidance disappointed last night. our own josh lipton talked to ceo tim cook just before the conference call and josh joins us in san francisco as well with more. good morning, carl. we're firing on all cylinders, that's how ceo tim cook described apple's performance to me in an interview cook told 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 highligh

it's now just apple. do we care about mac books and the imac and computers anymore, or is it literally only the phone? >> yeah, pretty much only the phone. i mean, we care about those things, i guess. we care about everything that they do because that's our job, but the phone dominates profits and without the phone the other stuff doesn't matter. you have to get the phone right to get the stock right. >> you've got a neutral in the stock, andy. what do you need to hear tonight to say, you know what i? want to slap a buy on that thing. >> well, you know i don't know if there is anything we could hear tonight. we're focused on what happens in the next cycle. i'm big believer in the stickiness of the operating system and not negative on it by any stretch but we're certainly concerned that you had an upsized cycle and we'll see negatives in the next cycle and i don't think we'll hear anything tonight that will change our view. >> you're so tied into itunes and all the apps that you could never change if you w

how does an apple car fit into the apple ecosystems? guest: the car category is not growing that much. it's not particularly profitable. margin on a car is about 17%. scarlet: i'm not sure what your comp is -- is it ford or tesla? guest: single digits is good. profitable, unit growth is in the single digits, but it is very large. of the three, so it take0,000 per car, give or don't knowcars, i how apple gauges how attractive it is relative to those three factors. we will wait and see. it will take a long time. scarlet: they have a lot of cash. olivia: they have room for a loss leader. i'm a lot more interested in an apple cars and an apple watch. thank you very much. olivia: still ahead, ibm revenue falling yet again. ♪ olivia: welcome back to the bloomberg market day. scarlet: let's go straight to julie hyman for a look at what's happening in the markets right now. big news concerning chesapeake and its use of cash. julie: we have gotten used to seeing chesapeake on the bottom of the s&p 500. --ay, it still on the bottom i'm getting

it's kind of a chicken little way to play apple again. apple is still up about 10% on the year. if you think about it if apple was unchanged like a lot of the large cap tech we've seen, this index would be down a lot more. and it's actually a lot of performance or bad performance in the whole sector being masked by apple and facebook. >> so you say chicken little because you put the trade directly on apple in terms of bearish trade? >> apple is very range bound to me. i think we have a pretty well defined range however you want to draw the lines, carter. we've been talking about it here. i think a lot of money is going to continue to hide in apple for the time being because we know that they have $195 billion in cash and they will use it to buy back their stock. >> in fact, the trades that dan has been recommending typically over the course of the last several weeks in apple have been working out for exactly that reason. i think those types of trades will continue to work well there. >> we're almost near correction territory for apple. >> that's right. and apple being again 4% w

really they were not sure john apple. charles: apple is though one that we have seen chipolte now higher. microsoft is starting to work its way back. go pro is down but i am not so sure how much they hold. >> you may try to put lipstick god the pig. apple is the biggest company in the world i am lifting and the valuation is extremely attractive how do they sell 58 million of the product? and now we will talk united technologies later quarter to quarter revenue slowing of the economy is not only important for china is important i think that is the reason why apple is down this hard. the conference call will tell the story. charles: china was spectacular that is the big chunk of that. house short-term oriented and performance oriented people have become. there was the new ones around the edges and people jumped the gun without thinking through these. charles: yesterday you said the market bush crash i have a lot of people saying he was right. >> they give for that compliment but they key if you were let lung dash dealing wi

apple. how is apple affected by this whole thing in terms of china right now? certainly you have a huge number of sales over there, but actually the americas are still where apple has the most sales. it's something where you're leaning on the growth, you're expecting the growth, and i don't think necessarily the growth shows any signs of slowing, at least yet, over in china. >> we're going to get to the sectors in a moment. but guy, there is a difference in terms of the materials. it seems like the materials and the energy and the commodity stocks are getting hit hard on the china news than some of the retail and consumer stocks. >> the poster child for global growth, specifically china for years, had been freeport mcmoran. look at that stock today, down 7 1/2%, probably trading at -- it's got to be close to a ten-year low. at a certain point it makes sense but they seemingly push the buttons at all the wrong times in terms of acquisitions over the last six or seven years. freeport mcmoran,

how is apple tv momentum going in china asked apple keeping the momentum going in china? >> the stock issues -- in the chinese market, there is concern that will bleed into the middle class buyer. analysts we talked with think that the previous quarter was pretty strong in china. continuing signs there has been greater interest. people that had bought cheaper phones in the past are being encouraged to buy these larger-screen iphones. emily: there has been a huge selloff in china. any indication about how that has impacted apple? >> you know, no. the reports coming back about the small percentage of the total population in china that is actually involved in the stock market suggest there is not going to be a broad impact unless it impacts the mood. if you are talking about people were feeling the hurt from the stock market decline, that seems to be a smaller chunk of the population. it's only if it alters the fundamental mood of the company, and i don't think we are seeing signs of that. it is kind of opaque in china. it's hard to figure out what's happening. emily: frank,

apple in the middle. what this shows you, these are the biggest suppliers of apple. we have sorted them according to as far asle they are percentage of revenue. those stocks in the red, on the way down. some are listed in the u.s.. 15% of their revenue comes from servicing apple. you go through the list, a number of companies. depending on how this is sorted, top 30. 21 or 22 based in asia. a lot in taiwan, a few in south korea. one or two in hong kong. these companies fairly dependent on apple. when apple misses an estimate, you expect the stock prices to reflect that pressure. sales falling for apple, raising questions about the company's prospects. about whetherions the next quarter will be strong or lackluster. a strong performance by any standards. 35% increase in iphones in the quarter. margin,ealthy profit but it fell short of what analysts were seeking. this combined with the revenue contributed to the 8% after hours drop. as investors tried to figure out isther iphone demand falling. the concern is apple will have a hard time selling more of the devices. man

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%. this is an area of growth but overall there is concern when it comes to sales overall and another one and another tech giant where we saw sales disappoint and we saw shares fall after hours. sales missed forecasts to this quarter they are anticipating this quarter to be worse than expected. they will see sales reduce compared to this time last year. even though we are

. >> and don't forget they -- apple tonight is a low multiple stock and apple is i think less vulnerable than ibm. this is the multiple in ibm, it's incredibly low but people say -- >> this is a market about global growth and multiple expansion. >> tonight is going to be bananas. apple, microsoft, go pro and chipotle after the bell? >> i know. i'm looking at tonight and i'm taking out winners of ibm education, they are very smart. i apologize. with these numbers, i have to do my show live tonight. this is the most explosive after hours -- maybe yahoo says they can't get the tax break. maybe apple will say they're not doing the watch. chipotle itself is hard. >> i'm looking for seeing it. i'm counting the days. >> you're counting the days until the brightling comes back? >> yes, and more than a brief appearance. days and weeks again like it used to be right here. i used to covet that watch. >> it's a chick magnet. i can tell you that. as a 60-year-old, i put that on hello ladies. this tells me where i'm supposed to be. i have weather like it's no tomorrow. >> we have some more earnings to

and you'll see names like -- look at apple. people are selling apple anding buy these names. they're using apple as a source of funds today. >> how do you reconcile, guy? because there are times on this show, and i'm sure people out there wondering when you say oh, you know, what the prudent thing is to take some off the table at these levels, take some off the table and then leg back in when there's a pullback. >> there's no cookie cutter answer. every stock is different. netflix is one we've tried to stay i with you folks. google and i'm going to be honest with you. the move we saw over the last couple weeks i didn't know what it meant. was it a short covering rally ahead of a disastrous quarter or was it building up to something? turned out to be the latter. with that said i think google takes the next move higher from here. i think you stay with it. i think you stay with netflix here despite the fact that people will say on valuation and stretch you could have made arguments like that in netflix for quite some time, same arguments with amazon. other stocks like tesla last

anti-apple side. it is a real lightning rod for people to look at. angie: his $2.5 million a good number? >> it is a good number for a brand-new category. it is a not so good number for an apple product at this stage in the company history. angie: jim cook it was better in cook saidweek -- tim it was better in the first week. saying it didally 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 as

but what if this ends up being apple apple's etzel? >> this is going to be a real test for tim cook and his creditability and how he reports the apple watch figures. we know the apple watch is an accessory because it links up with the iphone. but tim cook needs to play it straight with wall street and investors and say this is what's going on with the watch 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 diffe

get me a redd's apple ale. yeah me too. redd's apple ale. also in strawberry and green apple. (cheers and applause) >> jon: welcome back! so, over the past couple of weeks, we have been drinking cold syrup before the show. i'm sorry, we have been encouraging you to send questions you always wanted to ask us. i haven't been drinking nyquil before the show. (laughter) anyway, we wanted you to send questions you always wanted to ask via twitter. tonight i answer those questions in the segment we call -- hey! it's going to be -- uh i'm sorry, thought we were doing the round table. >> have a seat jon. >> jon: sure, what's this about? >> people want answers stewart! >> jon: i know. happy to give them. >> yeah, prove it! at benefits babe wants to know who was your favorite guest of all time? >> jon: jimmy carter, president jimmy carter because-3 usually he's drunk and right afterwards he's like can we go look for whores? (laughter) >> you think it's funny, don't you, mr. chuckles? i don't want to do this, but i have to! >> jon: what are you doing? oh, don't -- don't do that. no no, n

boohoo, apple is eating my lunch. apple is big. it eats people's lunches. they're not a monopoly. what's the government's -- >> they only earn 92% of all smartphone profits in the world. >> but they don't have dominant market share. they're able to extract profits have a very small base is good for them and this is very much like the example we point to, microsoft with the browser. apple needs to have a place and now the government is saying you can't compete. >> here is my question. could an app like a spotify or pandora restructure in a way it charges customers to avoid doing an in-app payment? just lead the user to the browser then to process the payment? would you avoid having to pay apple? >> that's what amazon does. you can't buy a kindle book through the kindle app. you have to go to the browser. 80% of the market is and right devices. a much bigger market to go after. >> the apps are more worried about leakage out of the apps, people who would not be buying the service if they were led out of the app. they want to capture the person within the app but they don't want to gi

a apple does not do. -- something apple does not do. >> thank you very much. sarah, back over to you. sarah: i think i photobombed your chat. i got so excited. i speak for 13-year-old girls everywhere. tennis news now. some of the sports biggest names have been on court for the first-round matches at wimbledon today. roger federer underlined his fine form with a straight sets win over bosnia's player. rafa nadal defeated brazilian baluchi in three sets. andy murray is further after a straight sets win after his opponent from causing stan -- kazakhstan. germany's angelique kerber whitewashed her compatriot. in soccer, germany is up against another challenging opponent in the quest to win a women's world cup. they now face the world's number two, the usa. germany currently boasts the best offense and the strongest defense. people are dancing on the streets of montreal before the kickoff. take a listen. >> just like this jazz band playing showtime at the women's world cup. the international jazz festival is just a way for soccer fans to kill time before the big m

that is typical with apple. china,re concerns that where the margin growth should be, is a space to watch. >> china is the greenfield opportunity for apple. in the u.s. and western europe, we're well penetrated from a smartphone perspective. the concern is twofold. the second part is we heard different metrics on the quarterly calls relative to the previous ones, talking about shares of people switching from android. we were talking extensively prior to the last two quarters with the greenfield opportunity is, we do not care about our share and now the tone has changed, saying look how many people we have switched from mandrake to iphone. those factors combined seem to be suggesting maybe the market is not accelerating by any stretch and you combine that with the china macro issues, the numbers not look so great. it is surely not the apple watch that has investors concerned. you see this with the iphone, the first iteration -- consumers are smart enough to know you have to wait until the second generation unless

apple fans can get their apple watch fixed in a brand-new place. nicole has the story for us. nicole: and excited woodforde tech careers. best buy will be the first major u.s. retailer to offer the apple watch in august. a month after apple began selling the watch, the company says it will offer the product at major chains best buy. apple watch will be available at more than 100 best buy stores in the u.s. and spent over 300 helpless before the holiday shopping season. they won every single person to ask for an apple watch for the holidays. apple has made it available to a few high-end boutiques to push the wash as a fashion accessory. turning earnings announcement with ceo tim cook said sales were strong and meeting expectations. they didn't say the actual 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

tim: it is almost classic apple. they beat expectations the shares soar and the rare occasion they do not meet expectations they get punished in the market. part of it gets to the investor belief and looking at these numbers to say how the iphone line is going to do over the next 18 months or so. there is concern that iphone sales have peaked at record levels and this is only downhill. betty: what are the indications? have they peaked?\ tim: the company sees a lot of potential in china. they feel like there is a large percentage of people who own old iphones but have not upgraded and they say they are turning android customers at a great level. they feel there is a lot left in the product. some of the issue as we get into september, later this holiday season will be the next iteration of the iphone. by all accounts it will not be a revolutionary device, more evolutionary, kind of the pattern it follows after a big launch such as what happened last september. investors and analysts are wondering if they can match the

in this case, apple hired the right people. they pulled editors from people like pitchfork and rolling stones, and in some cases, collaborated with those publications. people who really know music and what people are listening to. it uses the right people and the right algorithm when you need it. emily: i will keep listening and see if it works better for me. thank you both. that does it today from san francisco. tomorrow, i'll be joined by the former cto of quip, brett taylor. much more ahead on "bloomberg west". ♪ ♪ >> from our studios in new york city, this is "charlie rose." charlie: greek voters took to the polls on sunday. a referendum last week. the vote resulted in a resounding rejection of austerity. more than 60% voted against the terms set by the international creditors. officials warned greece could be ejected from the eurozone.

the apple is called the artic apple. the company also gave us this time lapse footage demonstrating the attributes of the fruit. the apple on the right has been genetically modified so despite the passage of time, it doesn't brown when it's been cut open. after 18 years of testing, the apple got the stamp of approval from the fda, usda and epa. >> are these apples safe to eat? >> yes they are safe to eat. they've been rigorously tested by fda, really to a fault. >> the apple was created by engineering it's own dna so it produces less of an enzyme called ppo, which causes browning. by silencing or turning off genes that control production of ppo, scientists have essentially created a non-browning apple. sounds like a neat party trick but it could also help reduce food waste the big question is: will consumers bite? >> the arctic apple is important because it goes to the consumer rather than to the farmer. and i think this is the first wave of products that we'll see targeted that way. >> when i think of sliced apples i th

we are positive because of apple essentially. apple has some stuff to worry about. china is the fastest growing markets are medically slowly. going forward based on the china exposure. apple will not tell us how many watches they have sold, but they will include the sales and a category called other products. if the numbers greater than $1.7 billion, you know it smash hit and a strong u.s. dollar could affect apple's gross margins expected to reach 39.5%. shoot i see this? the company hired the auto veteran according to this link and page. there is the page. dagen: applecart rococo car. i would buy almost any car except a tad slow for some reason. complete apple coverage this afternoon as the result at 4:30 eastern time right here on fox business. we will also get results from two more tech heavyweights. nicole has more on that. nicole: we are talking so much tech. and adjusted fourth-quarter profit of 56 cents per share. revenue $22 billion. the number expected to fall 6% year-over-year due to climb in sales windows software, and you are the three things to watch w

will apple reveal how its watch is selling? what to expect from apple's third-quarter earnings. and stephen hawking supporting a $100 million alien hunt. bernie sanders is the latest political candidate to up his snapchat game. sanders joins bush and clinton on the act. ♪ emily: it is time now for "the daily byte," one number that tells a whole lot. today's number is $100 million. stephen hawking and yuri milner are backing a $100 million alien hunt, the first of its kind. it is being run through the u.k.'s national academy ofg science. participants plan to investigate 10 times the amount of sky that has been previously researched through the use of high-powered telescopes. hawking said, "we believe that life arose spontaneously on earth, so in an infinite universe, there must be other occurrences of life." another story -- an accounting scandal at toshiba. they must restake profit from the last six years, almost triple the company's earlier estimate. toshiba overstated its bottom line under pressure from management. the president is scheduled to hold a news briefing tomorrow.

no apple watch sales numbers. on the company would say of the sales exceeded in turn will expect nations since the april launch. the company's forecast for the next quarter day of low expectations. joining me right now is s&p capital analyst angela zeno. good to have you on the program. you have a hold on apple. were you surprised by the numbers? >> we were not surprised however overall the numbers came in fairly well. top line about 49.6 billion. we were looking at 50 billion, slightly below expectation. the earnings front came in fairly okay. maria: would you recommend clients. new work in the stock today? >> no, we wouldn't. we see significant risk as we head into the december quarter. we are looking at more along the lines of low single-digit growth where you see growth now north of 30%. significant deceleration. >> 121 a change. right now 123, 124. a lot of guys playing at 130 straight in the options land. if it goes below 120, guys will have to start hedging seriously to get it moved down to 110. right now w

coming up, buzz on an update to apple tv. what does it say about the company's future streaming business? and these people are seeing color for the very first time. a story so cool we have to see it behind glasses that correct colorblindness. ♪ ♪ emily: apple may be releasing a new set-top box this september -- keyword "may." the report says the updated version will have better storage, improved operating system and will come with an app store an software development kit. it will supposedly work with siri. apple declined to comment, but what could it mean for the company's future in media? hunter walk is with me, my guest host. we also have idc crawford del prete via skype and our technalysis founder, bob o'donnell. crawford, i want to start with you. i have my own set-top box, but i have not felt the need for an upgrade. how much better could this new set-top box be and will it be an update to make people upgrade? crawford: i think it could get a lot better. there are apps that can be developed to make it more engaging.

not be that bad for apple. that things are progressing. i saw the stock begin to turn up there. and of course, it's been riding as you've pointed out, multi-week down session, bordering on a correction. that's inspiring some short covering in here, too. >> it's not all good stuff. because this all could fall apart on sunday before we let you go, how should people be setting up for possible volatility on monday? >> i think you want to set up as best you can. for a little bit of a hedge here. they saw what happened in the last 24 hours, before people in the u.s. even got a shot at anything. the markets spiked higher when hollande of france said the proposal looks somewhat credible. so i would think you might use as the najarians say an option strategy. give yourself a little protection, i would not strain to have too high of a position going into the weekend. >> art cashin, from ubs. >>> pc sales keep on crashing. that according to two new market research reports out this week. including tablets, including a 9.5%

we're not owning apple for this quarter. we're exposed to apple for two reasons. the u.s. consumer is about to experience a significant resurgence on the back of stronger real income growth in addition to the fact you're getting stable asset prices and restored savings rate. number two we're in apple because we're seeing rising capital investment across u.s. corporates, right now we're in the m & a phase and for the last few years we've been at the share buy-back phase. the next thing is for investors to go on investment. any hardware exposure will be exposed to that in a goodway. >> have you been adding to the apple position. >> it did touch 120. >> we've been stable in our position. >> we're not owning it for this quarter. our view is we're playing from the perspective we want to be exposed to u.s. technology. we've owned google, apple, a number of other exposures. we're comfortable with our positioning, we may look to add to our positioning given the selloff we've had today and we'll see how far it goes, we're disposed to the theme. >> what kind of market do you think w

an apple car. here to tell what to expect later today is angela zeno, analyst at iq. 70% is phone. your estimate for phones for the quarter? >> we're looking at 52 million for quarter. >> wow, is that, that's got to be above consensus i'm guessing, yes? >> i with say the street slooking in the high 40 million range, overall the momentum continues for the larger screen phones. the iphone 6 and 6-plus. overall i think what you're seeing sheer ongoing strength out of china. where the company has gone from single digit market share numbers last year to now you know market share numbers closer to the 15%, which really kind of you know where they are, relative on a global basis. >> why do you think that apple won't succomb to this momentum falloff we saw in chine toward the end of the quarter? >>. >> i think when you look at what apple has done here recently, they push all the right buttons when it comes to china. increasing their retail footprint. coming out with the largest screen phones, which the chi