is. >> in particular consumers who identify closely with apple's brand and apple's eco system they are very closely connected to those devices they shop, when they shop, they transact we want to have payment capabilities close in line with how they are living their lives. the reason why digital first convenient and secure is coming to market with this. >> how much more secure is this with no printed number on the card you can get a one-time use number people don't have to worry about copying down a number. >> if the consumer chooses to get that, that helps but the real key here is happening behind the scenes where we are tokenizing that and taking the 16 digit number and scrambling into a code where only weigh and goldman sachs recognize. if it shows up somewhere else, we can recognize that and kill it >> more revolutionized about late fees and interest what go you think of that? >> i wouldn't call it ray criticism. anything that brings more transparency and awareness so they can better manage their consumer affairs is a good thing. more around the payment due dates, et cetera, apple i

when apple pay came along, apple took a lot of steps leading the industry. then allke touch id, of the other smartphones had to copy it. we took the touch id and moved it into apple pay. protects your identity and credit card purchases everywhere. it is also so unbelievably easy, especially if you have a watch. that is important. making life easy is what we were known for in computers. these were computers that you did not have to be an expert to use. now, apple pay, the upper credit -- apple credit card is even more secure. the looks of it fits apple's branding. apple's branding is to have a lot of secrecy about what they are doing, but also styling and beauty. this is the most beautiful card i have had in my life. i don't judge beauty not much. but it is. it doesn't even have a number written on the card. there is no camera that can peak at you and somewhat see what your credit card number is. there is no way people in a retail store ever get your credit card number. it continues that thing of protecting your privacy everywhere you go. what you go and wher

could apple card be the same? mark: i think a lot of people who use apple services will use the apple card to pay for those. you get the cash back, it is all in one place, you can basically have a credit card to pay for everything apple. i think it will be the default card for apple pay. i think the apple card will go as far as apple pay goes and vice versa. emily: thanks so much. lots more to continue to follow as we get closer to november and that apple tv plus launch. uber heading to court yet again. why one of the oldest taxi operators in san francisco is calling uber a monopoly. this is bloomberg. ♪ emily: the founder of chinese telecom giant huawei is warning that the company is at a live or die moment. being in internal memo, he urged employees to form a so-called commando squad to explore new projects. he said workers who fail will have their salaries cut and may even lose their jobs. the uncertainty caused by u.s. sanctions has hammered huawei's smartphone business. uber was hit with a renewed antitrust

apple pay is the best. i put my movie tickets on the watch, my boarding passes for flights on the watch. i get notifications all the time. a hotel, iuter in myed to the watch -- i use computer in the hotel, i moved to the watch and pretty much skip the phone. everywhere you go, look on the sidewalk or in front of you in the street, there are people walking along and not seeing anything except their phone. i don't want to be in that addictive type area. i skipped the phone for most things except for occasionally checking in. with $200ickly, billion of cash on the balance sheet, what should apple do with it? steve: i never even think about that. i do not want to think about money, large amounts of, where to put it. apple has been doing a very fine job. apple makes a certain amount of money, profit return on investment. you have to look for investments that will keep that return level hybrid -- return level high. i trust businessmen who know a lot more about business than i do are inside apple. taylor: when we

the apple 2 was a huge that it was actually really the 1st all usable personal computer apple 2 always you know i always thought it was magical because you could do almost anything you thought of if you were creative enough the apple 2 the 1st personal computer designed for the general public the sales are phenomenal it in bodies the computer revolution but it has a serious 100 and the person who has the solution is boogie. was the acro version of basic but it wasn't completely up to date that was a certain aspect of it that wasn't in there so they began looking around for another version of basic that ran on that ship at the apple 2 used and microsoft was a company that had it so they got in touch with bill gates. with basic microsoft supplies what the apple 2 lacks this is the 1st collaboration between bill gates and steve jobs but at the end of the seventy's thanks to the success of the apple 2 the spotlight is on steve jobs and then in 1980 they went public so there are all these people have stock that got very rich and it was one of the 1st public companies in the personal compute

for apple? tom: i would say market share but the other thing we are not necessarily thinking of for apple is a lot of their new initiatives are less affected by tariffs. proprietary video content, financial services, and their efforts and health care. the good news for apple, influence to both governments, the u.s. and china, and a lot of their growth initiatives less affected by tariffs. taylor: all about that diversification. thank you. dat was tom forte from davidson, and bloomberg's mark gurman. coming up, we take stock in what bonds have to offer. if you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg.com, and in the u.s., on sirius xm. this is bloomberg. ♪ ♪ taylor: we always talk about how trade is affecting the equity price. if it is true that smart money is in bonds, i wanted to talk about how it is affecting debt from these big companies and more importantly, the amount of debt they are issuing. bloomberg'sing in corporate bonds reporter and a technolog

and now, apple pay, the apple credit card is even more secure. the looks of it fits apple's branding. apple's branding is to have a lot of secrecy about what they are doing but also styling and beauty. and things like that. this card is just the most beautiful card i have had in my life. i don't even judge beauty that way. i don't put a high value on it. i don't, but it is. it doesn't even have a number written on the card. there isn't a camera that can see what your credit card number is. there is no way people in a retail store ever get your credit card number. it continues protecting your privacy, everywhere you go. what you buy and where you buy it shouldn't be tracked that closely, in my mind. i don't want it. we see that you bought a milkshake two hours ago. i don't want somebody coming up to me and saying that. taylor: you are giving us free advertising because you keep flashing your iwatch around. if i heard you correctly, you said it was one of your favorite pieces of technology. the iwatch when it came out, let's call it mediocre. since

apple shares have rebounded. according to bank of america, apple is facing a much lower impact from tariffs as a result, and the impact to company earnings could be minimal if products are exempt. to discuss the continued trade standoff we have eugene munster, and in los angeles, bloomberg trade reporter sarah mcgregor. sarah: phyllis and over the last 24 hours, still no sign of how china will tell -- will retaliate, right? sarah: we don't have a clear picture yet of how china will retaliate. a whirlwind,uch the trade war, so many ups and downs. -- companies like you said, the apples of the world who have more time to get their holiday gear in, will be held, while not helping apparel makers or footwear makers who will still get those september 1 duties, and we are still no closer to a deal with china. emily: you concluded it is unlikely apple will be hittite -- hit by tariffs, but you still have the apple watch, still set for tariffs september 1, two weeks away. how likely is apple going to dodge this? eugene: a

for apple the card is a way to keep existing i tune users hooked on apple products at a time apple isli dng. they are betting it will entice users. for goldman sachs it is a high-profile push further into consumer services. the bank is hoping that the apple card can translate into new customers of its consumer bank marcus, but will users adopt it? >>m a big fan of the apple products. i would have to look into the flexibility of it. >> i mean i already have everything linked to my ipne, so my wells debit card, credit cards, all of that h stuff. my information on it. i would trust them with everything else. >> i haven my ameripress added to my apple pay. i don't think i need --pe onally i don't need anymore than that. >> reporter: one thing is for certain, the collaboration between the tech titan and banking giantbe watched closely by silicon valley and wall street alike. for "nightly business report", deirdre bosa, san>francisco. efore we go here is another look at the day's final numbers from wall stheet. dow rose 311 points to 26,029. the nasdaq climbed 107 and the s&p 500 added 37. th

the apple 2 was a huge that it was actually really the 1st all usable personal computer apple 2 always you know i always thought it was magical because you could do almost anything you thought of if he were creative enough the apple 2 the 1st personal computer designed for the general public the sales are phenomenal it in bodies the computer revolution but it has a serious handicap and the person who has the solution is boogie. was the acro version of basic but it wasn't completely up to date that was a certain aspect of it that wasn't in there so they began looking around for another version of basic that ran on that ship at the apple 2 used and microsoft was a company that had it so they got in touch with bill gates. with basic microsoft supplies what the apple 2 lacks this is the 1st collaboration between bill gates and steve jobs but at the end of the seventy's thanks to the success of the apple 2 the spotlight is on steve jobs and then in 1980 they went public so there are all these people have stock that got very rich in it was one of the 1st public companies in the personal comp

so that's helpful, i think, rather than just apple cash, which i just had all my other cards on apple, but i'm not using them on apple pay anymore miami using just the apple card. >> kara, for consumers who are using it as a credit card, we know what credit card rates are like in this country, one of the big selling points here is that it gives consumers intelligence on what they would need to do to avoid large interest payments. has that been impressive to you? >> yeah, i like it i haven't paid my bill yet i've charged a lot on it, but it's a little wheel that tells you how much interest you owe. don't worry about it, carl my credit is excellent it's this little wheel that you play with that shows how much interest you pay it gives you a whole lot more information than most credit cards. again, it's designed for the phone. and so you're used to the wheel movement on apple's device, if you ever had an ipod or anything like that, so it gives you that information and you can scroll, if you pay now this much, you'll pay this much in interest, and you should pay this now here this is the

with apple here. my colleague and i discovered that indeed is going away. >> you have reported it will happen this month. what are we expecting when this program debuts? >> the program will launch this month. you will be able to sign up. to be able to still get the credit card. what this is going to do is they are going to get consumers away a single credit card. apple has a lot of people making apple purchases, as well as subscription service transactions through itunes, the app store. for goldman sachs, this is going to make them more of a consumer name. up-to-date it has been business focused high network individuals. this is something that is going to be mainstream. >> some controversy around siri. apple suspending the program whereby human employees actually listen to some of our queries to siri to supposedly improve how she or here performs. this after a story by the guardian exposing some of these internal practices. apple has made privacy a cornerstone of its marketing strategy and the way tha

obviously apple has been working to build out its service offerings, apple tv plus, apple arcade coming this fall, and for the first time, the iphone made up less than half? >> that was a huge market for the company. people have been concerned with the smartphone market slowing down, people are extending the lifetime of all the phones they spreadnd so they have to the wealth to different devices. they are giving more love lately to the mack, which is great. they have this new macbook coming out. the ipads, apple watches memorial. the story they will tell -- more incremental. the story will be the new hardware with the services. i'm sure we will learn more about the services and how they tie in. to make it work better on apple hardware than other hardware platforms, so that will be interesting to see him tell that story. we are still in this era of apple's cycle that is lower than people would like to see, so that raises questions longer-term. emily: julie, would you agree? engineer,being the these are big steps forward. if you think about the future of experiences, more immersive, bette

apple tv, we are learning more about that. apple pay. what they are doing in health care. i think they are also changing the subject a bit. emily: as you consider where to put your money, are tariffs being factored into your considerations of apple in particular? some have said tariffs will never hit apple. but is this something you are thinking about? >> we think about taxes, which is what a tariff is. taxes provide incentives or disincentives. not having a tax is better than having a tax, but we think the services platform that apple is building is going to overcome a lot of this and maybe even speed those services along. emily: let's talk about services. we've got new details about apple tv plus this week. we were expecting it to be unveiled in november. there are new trailers out for some of the shows. and yet, of course, netflix is the gorilla in the room. disney is coming out with a service starting at seven dollars a month, fairly cheap. we don't know for sure what apple will be priced at yet. but how optimistic are you about apple tv plus? cathie: having learned th

coming up, good app -- apple. wall street breathes a sigh of relief as apple guidance for the second quarter was not as bad as some thought. we breakdown latest earnings including iphone sales services, and wearables. plus, chinese telecom giant huawei feels the burn of u.s. sanctions. we have an exclusive interview with the chairman in the midst of a sales plunge whose says the company has a plan b. and the cost of being "cool." a former executive testifies the company fired as many as 100,000 workers in recent years in an effort to compete with companies like google and amazon. the latest on multiple age discrimination lawsuits facing big blue. our top story of the week, apple earnings. the tech giant forecasting revenues that topped analyst estimates, seeing a surge in services, which now contribute to a fifth of total sales. apple also reported the iphone represented 48% of revenue, the first time it has made up half of sales in several years. in a way, this is progress towards apple relying less on the flagsh

our top story of the week, apple earnings. the tech giant forecasting revenues that topped analyst estimates, seeing a surge in services, which now contribute to a fifth of total sales. they also reported the iphone represented 48% of revenue, the first time it has made up half of sales in several years. in a way, this is progress towards apple's less reliance on the flagship product and more on new lines of business. i got reaction from bloomberg businessweek's max chafkin and a portfolio manager, dan morgan, who manages about 240,000 shares apple stock for his clients. dan: it is an interesting report. if you would have told me they would have missed on both services and revenue, i would have said there was no way they would beat on top and bottom line. but as you mentioned, wearables, 5.53 billion, that was a big plus. they also used about $21 billion of cash on the quarter to repurchase shares and increase the dividend. i think they kept it at $.77. so they did some other things to kind of help along, which initially you w

revenues and so apple is a high-profile company. they could certainly be targeted uniquely or more broadly in terms of tariffed u.s. goods in china. so there's risk on both sides. you know, the potential tariff in the u.s and then as you were all talking about before, potential retribution from china >> tony, when you look at the dow, of the four worst-performing stocks today, three are tech names and names you cover. apple, ibm, also intel well, maybe you don't cover intel, but in terms of the sell-off in these names, does it makes sense to you and how much worse do you think it could get, given the fact that there are so many unknowns and uncertainties out there? >> sure, well, in ibm's case, part of the sell off attributable to them is they had a webcast on friday and there was sort of mixed news out of that they provided some updated guidance for the current quarter that was below consensus, and so i think you have investors reacting to that generally, ibm has much less exposure to china. in fact, very limited exposure, only abo

of the retail price of apple. apple itself takes 54% and the rest is third-party parts. so china -- the effect on china is very small, when the tariff is raised for apple iphones. >> i just want to ask quickly -- your take on where things go from now and in particular, how are thing being framed back home in china and whether you think it's likely that president xi is able and/or willing to back down. >> well, by the way, i don't live in china. well, i live in hong kong, which, of course, is part of china, but not mainland. and i saw that there was a psychological toll last year in the chinese economy. that is the confidence level really dropped, almost not bottom and this year, it has recovered, as i just mentioned. i think that this trade war is going to last for some time. both sides are digging in their heels. i think, eventually, at this particular moment, the american economy is doing very well so people don't so much feel the impact of the trade war, except the exporters like apple, which have been affected

trade is front and center for apple investors. the company sheds millions of dollars in market value as the spotlight shines on its chinese production base where almost all of the world's iphones are made. suing taiwan semiconductor for using patented chip technologies. the u.s. trade agency imposes import bands that could roil the market. first, to our top story. days after escalating the trade war with china, president trump says beijing badly wants to make a trade deal. pres. trump: i think they want to make a deal. i'm not sure they have a choice. the united states, which has never collected $.10 from china will, in a fairly short period of time, will be over $100 billion in tariffs. taylor: to discuss more, i want to bring in peter. it is very interesting. we sat here friday and the stocks in chipmakers dropped 4%. the sentiment has improved. would you agree with investors that we got an improved reading today on trade? peter: it is mildly better. the reason that trump is saying the chinese won a deal, to me that shows that t

apple took that even further. they have actually stopped people being able to advertise and attract users the way they used to with cookies. that has been devastated for facebook and google. the needle is really swamped. it has been -- the needle has really swung. it has been interesting to watch. it has moved into the big tech companies and they are fighting amongst themselves. that is what we advise our companies first of all, to work hand-in-hand with the regulators and much more close contact rather than just to take them on. there were times that central bodies were not as educated as they are now. the second thing, we are interested in looking for opportunities for new companies to come in. what is the alternative when we adst use google pay for anymore. we have new companies in the data and advertising world, transforming it. this is a huge market opportunity. emily: sarah, what our next steps in the eu? sarah: the eu is on the leading dataof antitrust data had and screw -- antitrust data and scrutiny. ther

we do not know about apple's price yet. how optimistic are you about apple tv plus? >> having learned that they are pouring $6 billion into the circat, which is netflix 2016,. netflix to 14 netflix closer billion now. >> 16 billion. in the morning show with jennifer aniston, there a lot for that, each up so costing more than game of thrones. there a lot, content providers on the big winners here. i do think this is going to be not just a one horse race. i think people will take several services and it is problematic for cable and for traditional broadcast tv. thinkingw much are you about the antitrust issues, the doj opening it antitrust investigation to big tech in general, the ftc looking at facebook, states looking at big tech, there could be more. >> rise. we do think about that. we have pulled back on many of the big names because, partly because of this issue. we do not -- we think it will be litigated for years and years. break moblong time to l into the baby bells. that ended up working out ok for investors. so it is not always a bad thing. but the legal hass

on the other side i'm long apple in hedge funds but forget that i'll own a lot of poor trading in apple to josh's point, let's say you bought it in 2014 and didn't have the bad behavior in the stock that i did you just held the stock. you're a double in the price of the stock. >> right. >> if you bought 100 shares, those 100 shares are now 125 shares. >> why the heck do you try to trade it. >> well, as i said before, i own the bad behavior in apple. >> i get it. >> whatever. >> i've made some mistakes in trading apple but let's not make the focus of why i screwed up. >> its not about you but trading versus owning it. >> it's so popularized i think a lot of people, it's in the headlines all the time there is a belief just a couple of weeks ago it fell because people believed it would be weaponized in the trade dispute but i think underneath it this buyback, this capital allocation story, which i tried to emphasize at the end of last quarter. >> as you usually do like the mr. buyback. >> apple is the greatest capital allocation story they have reduced the size of share cash from 200 billi

apple aims to reach $50 billion in annual services revenue next year from streaming as well as apple music and other subscriptions. >> thank you well, a group of state attorneys general is reportedly preparing to move forward with a joint anti-trust investigation of big technology companies the wall street journal says the effort is expected to formally launch as soon as next month it's a hand full of platforms and use their marketplace to stifle competition a big move there against a big technology. >> social media companies cracking down on a massive misinformation campaign in hong kong details live from the ground coming up next then china takes another step to sure up it's economy as it prepares for an even longer and more drawn out trade war we are live in beijing as well plus, disney on the defensive over new whistleblower allegations. a very busy hour still ahead when worldwide exchange returns after this [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily com

tom: the good news for apple, they have investors to focus on what's next for apple, and you touched on a lot of it. but as we saw today in qualcomm's earnings, you have a mature market for smartphones, and you have seen it in the iphones with declining unit sales the last couple quarters, and i anticipate that will be the case until we have a 5g device, likely next fall. for apple, it is really about payments, about financial services beyond payments, health care. as you talked about, premium video content. advertising, but in a way that protects the privacy of the consumer, too. i think the story for apple, either the service of story or the non-hardware story depending you want to phrase it is a good one, and investors are warming theo it, which is why stock is up after the earnings announcement last year. emily: they do go hand-in-hand. for people to use the services, they need to use the iphone, and for more people to use the services, may be people need to use the iphone. how does apple drive in the midst of a smartphone slump? tom: the key for apple has been the install base.

so i think in terms of tariffs, we don't think apple -- the reason we downgrade apple is because tariffs. i don't think it matters too much for our business, so we continue to -- even without tariffs, apple the iphone sales will continue to be weak if the tariffs increase. >> krish, a lot of focus on this upcoming apple tv plus launch in the fall, and getting reports now that there's been a big boost to content spending, 6 bl billion dollars, how much should apple be spending on content if the company wants to make a meaningful push into this arena? >> yeah, i mean, clearly the numbers are in the billions of dollars. right? the question is what magnitude are you talking about. there were press reports about 6 billion. reading an analysis, came up with about 2.8 billion we also done like a standard matrix approach base on how much they need to spend, and you know, you can even think of like netflix kind of numbers running close to $15 billion the real question at that point, you know, what is the big opportunity cost for them? how many subs are you going to get? i think as the cost goes h

we're not sure what apple will be priced at yet. how optimistic are you about apple tv? >> having learned they are pouring $6 billion into the content, which is netflix circa i think probably 2016. emily: netflix is closer to $14 billion now. >> yes, yes. i think they have a good shot. some of the shows, i know "the morning show" with jennifer aniston, they are paying a lot for that. each episode costing more than "game of thrones." they are paying a lot of content. -- paying a lot. content providers are the big winners here. going -- do not think this is going to be just a one horse race, i think people will take several services. it is problematic for cable and traditional broadcast tv. emily: how much are you thinking about the antitrust issues? the doj opening an antitrust investigation. the ftc looking at facebook. the state looking at big tech. there could be more. >> we do think about that. we have pulled back on many of the names we had, partly because of this issue, but we think it will be litigated for years and years. it took a long time to break the mom bells

apple ceo mr. cook has argued that unlike your peers who run at base businesses, apple is coming that fundamentally is privacy oriented. do you believe apple is a privacy oriented business? >> yes, absolutely weekly privacy is a fundamental human right. >> well then, why has apple allow google to be the default search engine on safari? >> apple has come with all of its products can focus on what is the best consumer experience. so when it comes to search we conducted an open petition to see what would we think would be the best for our consumers. and consumers have always gone to google. we ultimately sought google but we also make another -- a number of options to give to the so it's easy to change your default on your iphone to other search engines that perhaps have more privacy protections. >> apple charges of developers 30% tax on in app purchase the first year and 15% every year thereafter in a statement for the record spotify argues a charging 30% tax on in a purchase is apple forces provider

you have apple tv plus, apple arcade coming this fall, and for the first time, the iphone made up less than half? bob: let's not forget, that was a huge marker for the company. people have been concerned with the smartphone market slowing down, which it has been, people are extending the lifetime of all the phones they have, and so they have to spread the wealth, so to speak, around different devices. they are giving more love lately to the mac, which is great. it is great they have this new macbook coming out. the ipads, apple watches more incremental. the story i am sure they will tell when they do their event in the fall will be the new hardware with the services. i'm sure we will learn more about the services and how they tie in. they will want to make it hook into apple hardware better than other hardware platforms, so that will be interesting to see them tell that story. fundamentally, we are still in this era of apple's innovation cycle that is lower than people would like to see, so that raises questions longer-term. emily: julie, would you agree? julie: again, being the engine

so the question is, will they switch over the way, say, people switched from spotify to apple, apple music, and things like that so it will be interesting to see if that survey, which is very good for disney, actually happens. and i think that's where i want to see if it actually picks up like that. >> what's your take, kara, as to whether once we get past this launch, that we start to see content costs come down. in a weird way, this competition for a company like netflix could help in the media more long-term if that does actually materialize. >> well, i don't know. you know, you would like many more players in this kind of market, because costs are great for consumers. and it's great, you know, consumers get better prices, and on the content cost price, it's great for content creators that all of these people are vying for their content. i think what happened is when there's this much fragmentation, though, it's going to be problematic for consumer choices, for these companies to figure out, and it's all going to be based on hits and the things people want to watch. and disney, to

emily: now, thus far, apple goods like the apple watch and air pods have not been tariffed, max. so how do companies deal with this uncertainty? sarah and i were talking yesterday, and she indicated it is increasingly looking like there is not going to be a short-term resolution. max: i think you are seeing companies talking more and more about manufacturing outside of china. manufacturing in india or other countries would be a possibility. the entire high-end manufacturing ecosystem for consumer electronics is in china right now. the other thing is they could raise prices, as sarah says. part of the problem is, already, the iphone is kind of under pressure from consumers. consumers have been hesitant to upgrade. the upgrade cycles are getting longer. and you wonder, if you start raising prices given a little bit, that could change the economics for apple. emily: coming up, u.s. sanctions continuing to bite the chair of chinese telecom giant huawei. they say there has been a dramatic slowdown of sales growth in the midst of a trade war. in an exclusive interview, with liang hua,

apple is a luxury goods company. and its phones are a thousand dollar at this point they've re-anchored us in that price. and things we believe will come as updpragrades to the iphone ae better cameras, faster processors, slightly better screen i don't think it matters whether johnny ive is here or not or tariffs are coming or not. i think november is when we expect the appletv plus service to launch. you know, it was just mentioned. and i think in some ways, knowing that services are -- this is an incremental -- these are incremental refresh -- services that are so critical to the company. in some ways, that's almost more interesting than the september event. >> and hany, upgrade cycle have said slower and slower by the year is there anything apple can do that's innovative enough that can really encourage people to upgrade their iphones thim around that have been sitting on therapy hands previously >> i think you're going to see better optics and some interesting 3-d sensors. you might start seeing some ar, augmente

apple saw this coming. there has been discussions about this for the past two years or look at the price hike they made to the iphone x a couple of years ago. you look at how high the storage prices are bringing up the prices last year. you look at the $200 pricing .reece in the -- price increase you look at the premium for the new air pods to get the wireless charging case. my take is that these price increases, whoever will be impacted, it is already built into the price and consumers have already been paying for the last year. emily: so the run-up in apple shares, could it just be a short-term bump? we have no idea what will happen with the trade talks. it could be a new normal between the u.s. and china. >> i would say if were talking about january and february for the reprieve, let's say they were supposed to go into effect in january and then moved into march, investors would be overreacting. midmove from september 1 to december specifically for the iphone, ipad and macbook align. it significant becau

when you set up the apple pay or the apple card, rather, in apple pay, the first question it says is do you want to make this your default payment method. they're really getting you. i'm curious to see how this pushes the other credit card companies in terms of just the security features alone. they've been talking a lot about that, a lot of it they're not telling us about. but a lot of it is -- it's a very secure system when you consider -- when you consider i can show you my credit card on tv, you know there's -- and if you stole it, i'll just get another one. cheryl: we'll see if other companies try to kind of up their game along with apple. i don't know. airline points, there's a lot of other offers out there, so we'll see how -- >> that's always the thing. lauren: and there's bitcoin. >> and venmo has their credit card as well. cheryl: brett larson, thank you. >> growing space. cheryl: catch brett on fox news headlines 24/7, sirius xm channel 115. it is official, former colorado governor john hickenlooper said he will seek the nomination for cory gardner's seat, a must win for t

our top story of the week, apple earnings. the tech giant forecasting revenues that topped analyst estimates, seeing a surge in services, which now contribute to a fifth of total sales. they also reported the iphone represented 48% of revenue, the first time it has made up half of sales in several years. in a way, this is progress towards apple's less reliance on the flagship product and more on new lines of business. i got reaction from bloomberg businessweek's max chafkin and a portfolio manager, dan morgan, who manages about 240,000 shares apple stock for his clients. dan: it is an interesting report. if you would have told me they would have missed on both services and revenue, i would have said there was no way they would beat on top and bottom line. but as you mentioned, wearables, 5.53 billion, that was a big plus. they also used about $21 billion of cash on the quarter to repurchase shares and increase the dividend. i think they kept it at $.77. so they did some other things to kind of help along, which initially you w

-- thanks to apple. but things are changing as they's -- as they shift services. others sure seem to think so. >> we believe this is key to the services business and the opportunity is 100 million consumers in the next 3-4 years. that is the golden goose. iphone is the meat and potatoes, what services are key to growth -- but services are key to growth. emily: we spoke about the shift with none other than steve wozniak. >> we have been able to transition. we started with the name apple computer and has moved into personal products we dropped the computer from our name. being flexible and being able to ship with the demands of the market is very important for a modern ongoing company. services, apple is a huge company. apple can only move in directions that will be very large in dollar volume. we have looked into other products like watches. heck, that is about my favorite piece of technology in the world. when apple pay came along, apple took a lot of steps leading the industry. things like touch id, all

what apple's goals should be. i found it fascinating that one of the big fights at apple health according to your exclusive report is that there's a group that doesn't think they're doing enough. i can see that in silicon valley, that you had gathered all these smart people together at apple of all places, you say, all right, what are we doing sfl a ? we will figure out how your heart beat works when you are jogging. i can see people would be frustrated. >> it's a hard and weird problem to have if you are apple. you could do absolutely anything in health care. if you think about being a patient in the system, it doesn't really work very well. there's so many things wrong with it from the lack of transparency that a company like grant rounds that we talked to is trying to fix to just endless issues with inefficiency. if you are an apple employee, you want to do big and bold things. i spent about a year and a half talking to all sorts of people internally and externally about this. what came up was just we could be

the apple 2 was a huge that was actually really the 1st all usable personal computer the apple 2 always you know i always thought it was magical because you could do almost anything you thought of if he were creative enough the apple to the 1st personal computer designed for the general public the sales are phenomenal it in bodies the computer revolution but it has a serious 100 and the person who has the solution is boogie. was the acro version of basic but it wasn't completely up to date that was a certain aspect of it that wasn't in there so they began looking around for another version of basic that ran on that ship at the apple 2 used and microsoft was a company that had it so they got in touch with bill gates. with basic microsoft supplies what the apple 2 lacks this is the 1st collaboration between bill gates and steve joel but at the end of the seventy's thanks to the success of the aapl to the spotlight is on steve jobs and then in 1980 they went public so there are all these people have stock that got very rich and it was one of the 1st public companies in the personal compute

apple saw this coming. there has been discussions about this for the past two years or so with the trump administration. you look at the big price hike they made to the iphone x a couple years ago, $1000. you look at the storages of the iphone x max, you look at the ipad pro last year, you look at the additional apple watches. you have to look at the premium you have to pay for the airpods if you get the wireless charging case. these premiums have already been built into the price and consumers have already been paying for it for the last year. emily: so the run-up in apple shares, could it just be a short-term bump? we have no idea near-term what will happen with the trade talks. there is a most more certainty that over the long-term this is a new normal between the u.s. and china. mark: i would say if were talking about january and february for the reprieve, let's say they were supposed to go into effect in january and then moved it to march, investors would be overreacting. we saw and 8% jump in the stoc

on the apple side. -- key parts on the apple side. they may actually shield consumers from looking at the iphone and thinking, maybe it is not the most -- device, because now it is my link to my doctor. i will keep the service. through services increases, for samsung looking at health and the active with watch they just announced a few days ago, it is probably the first step. financial services may be harder for them. reporter: and the galaxy, the nearly $2000 phone that if you rip the sticker off, this green protector would destroy the thing. how is that impacting the note 10? do you think it will be followed? -- fall outs? >> i don't think so. i think simpson has a strong, loyal base. samsung -- samsung has a strong, loyal base. think that the people being skeptical-- analystreative strategy caroline milanesi there. >-- emily: they are calling out google on building a speaker with wally, next. -- huawei, next. this is bloomberg. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, be

come on, apple at 148. those were absolute gifts, and a lots of folks took advantage of them as far as the fact that they have rallied as much as they have in the face of everything that the market has thrown at them from the tariffs, which many of these ceos are dealing with right now, for instance guess today said that they were able to mitigate all of the tariff costs in their most recent earnings report. that's tremendous, and they're not the only one the ones who are winning are those like target and brian cornell, like what tim cook is doing, and that's why they're going to continue to trade up. i agree with joe, you don't need the faangs to lead, but if they start playing catchup here, to your point, there's a lot of upside and those are significant moves in the s&p 500 and the dow jones. >> let's put it in perspective the market's really done nothing over the last year and a half. these were the market leaders, extraordinary gains through the whole cycle. so with the exception of netflix, which is c

he likes meeting with the head of apple, tim apple, so he likes the idea of them coming to him and consulting with him. i think it is good to make compelling cases to him. the question is whether it change the next day. a lot of these tariffs have been all over the place from inside the white house and he changes on lots of topics. and so i think that it is probably good for tim cook to have had dinner with him and been engaged with him. i don't know the lasting nature of it because you never know with donald trump what he is going to say there one day to the next and i think stressing the issues around how many jobs dlaeted, making their case, is probably a smart one for apple to do because i mean, these free trade is very important to a company like apple and a lot of companies across the united states >> i was going to say, it does seem like apple's comments and other things have helped the president's thinking evolve. he is now talking about tariffs affecting consumers, christmas, big companies. a long way from saying that china is paying for all of this. >> well, you know, i don't know w

gene is talking about apple. huawei focused on their domestic market and took market share away from everybody else. there's plenty of unintended consequences. you can argue whether one particular product or component will be the subject or not. the overall impact is undoubtedly negative. that is why you've seen -- emily: even if apple's products aren't tariffed, it will affect apple in your view and mark -- your view? >> the longer this goes on, china has to think about, how can we get by without the u.s., without u.s. phones, u.s. components, screens, whatever is being supplied. e, how do you respond to that? the president did demand that u.s. companies start looking for alternatives to china and apple has a huge supply chain in china and also sells into the china market and may not really have a plan b. >> my first response is they need to clarify that if there was a prolonged trade dispute, all companies are going to be negatively impacted. i don't think apple products are going to be directly tariffed. the b

well, if india gets its way, it may welcome apple with open arms. the indian government eased foreign investment rules in a number of sectors, including manufacturing and retail, a move officials hope will attract companies like ale. they hope to start online sales in india within months, and alle and foxcon have been laying the ground work for manufacturing in india. to discuss in los angeles, we have mark, who covers apple for us, and david kill patrick. tell us exactly what india is doing here and what it might mean for a company like apple? >> so there have been plenty of reasons why apple has not been very successful in india with some having under a 1% or 2% phone market share. one of those reasons is they have had a hard time bypassing a lot of laws from the indian government which are required for certain companieo up shop there to produce a certain amount of its products in india. for a company with a supply chain elsewhere in the world, it is a difficult process. this would allow apple to work around that and eventually awe lou them to ope

this has basically been an iphone company for years and is now below apple's revenue. -- half of apple's revenue. it is probably a good sign because we have heard tim cook say over and over again that they want to increase services revenue, and here it is happening. emily: tim cook is speaking right now, saying he is thrilled to see a return to growth. you own a couple thousand shares of apple, how concerned are you about this tariff issue? >> the tariff issues as max was saying, it is kind of a double when he in regards to shipping phones with the company ministration. then you have -- with the trump administration. glassou have things like covers, sensors that are shipped into china that could be potentially on a tariff watch with the chinese government. the big question going forward is just what does apple do? do they try to raise prices, which they already have extremely high average selling prices compared to the competition, or do they just absorb the tariffs into the profit margins, and how does that work into the international expansion? you have annual average incomes in india

this year, with apple tv plus coming out and apple arcade. a lot of those focus around the apple tv itself. which actually is not a huge seller. i think on top of the partnerships we saw back in january, with samsung and lg and the other tv companies, we will actually see a smaller apple tv stick. i think it's going to be a low cost and it's probably not going to do everything the apple tv does but it's going to be focused on that whole services approach. apple wants people to subscribe to its services and stick around for awhile. liz: there's a chrome stick, a fire stick. we have to wait and see. your third bold prediction. >> my third bold prediction is apple is finally going to add a couple of new features to the apple watch that have been just begged for for awhile. the first is actually that always on display. you look at an apple watch, you kind of have to move your wrist to get it to wake up and do stuff, where the entire competitive market has screens that are on the entire time. i think this is going to be the year apple finally does