to apples. you have apple pay, they have been talking about that. there is also paypal. what does this mean for competitors to amazon pay? >> for the direct competitors to amazon pay, like a paypal, that is particularly concerning. paypal's core customer set is a small and medium merchant trying to do sales online. amazon is directly targeting that same small and medium merchant that may be selling goods to the amazon platform. emily: compared to alibaba and alipay? >> we are familiar with paypal building here in the u.s. alipay built up as part of the alibaba online platform, similar to amazon in china. recently it has spun out and is under and financial and starting to expand pretty aggressively internationally as well. they have recently acquired moneygram here in the u.s. and are trying to expand internationally. emily: amazon is entering into so many new businesses. there are groceries now. are there any antitrust or regulatory issues on the horizon? >> the regulatory issue they may run int

apple shares up 6%. apple now at a record high as well. of course, the world's most valuable company in terms of market cap. that's all from me for now, see you ina that's all from me for now, see you in a moment for the news review. women in their early 60s are £32 a week worse off on average because they're having to wait before they can start picking up their state pension. pension ages have been put up for women, and while some are managing to carry on working, new figures show that typically they have lower incomes. simon gompertz reports. waiting for your pension and struggling to get by. shirley from aberdeen is 61, not working because of ill—health and she won't qualify for the state pension until she's 66. i can't afford holidays, i've given up my car. basically my life really. i've got a bus pass, would be! it's the only thing i've got really, not getting my pension, i've got my bus pass. i got my sanity! pension age is used to be 60 for women and 65 for men. by the end of the decade they will be 66 for both, the decade they w

so, how do you like them apples? apple's ceo is a modest sort, but tonight, no one woul criticize him for crowing because the king of cupertino, apple, shut down the worrywarts and beat profit and revenue estimates and oh, yeah, they sold more iphones than expected, too. apple earn 1.67 a share. a whole dime ahead of wall street's forecast. sales rose 7% to a shade below $45.5 billion or about a half billion a day. the company even grew its enormous cash reserves 13% to $261 billion. shares took off after the numbers came out. pushing them to an all time high. josh lipton has the biggest take away from apple's big quarter. >> 41 million. that was one big number in apple's latest earnings report. refer to the number of iphones bette than expected. analysts thought they would ship 40.7 million units. i had a chance to speak briefly with tim cook. he says the demand was better indice be he took down iphone inventory by more than 3 million units in the quarter. he said there is pause going on here. in order, consumers ar

even if you don't own apple, you have to watch david and melissa for apple earnings. [closing bell rings] kevin said it may give us 22,000 if apple does well. david, melissa. melissa: nice plug, liz, we love it. the hits keep coming. dow closing at north new record. we were shy of that 22,000. you can see the closing 29. i'm melissa francis. david: i'm david asman. this is "after the bell." glad you could join us. more on big market movers. here is what else we have for you in very busy hour. apple on deck. news on health of the world's largest publicly-traded company out this hour. wall street, anybody with a iphone are waiting to hear if the next iphone is set for launch this fall. everything you need to know as soon as it comes out. small but mighty. president trump focusing on plight of small businesses this afternoon. what he is pledging now to help this driving force of our economy. among our guests this hour, former white house press secretary ari fleischer, south carolina congressman mark sanford, lieutenant colonel oliver north is with us. melissa: back to th

as first reported by cnbc, aetna is negotiating with apple on a plan to offer a free or discounted apple watch as a perk to aetna's 23 million members. shares of both aetna and apple rose during the trading session today. >>> cnbc.com's health and technology reporter christina farr first reported the story. and she joins us now from san welcome, christina, food good t you as always. for apple a deal like this would mean obviously higher sales of the watch but why does aetna want to do that? and is there evidence that they could use that these wellness programs reduce costs for insurance companies? >> reporter: yeah, that's a great question, sue. yeah, it is obvious why apple would want to move in this direction. for them, it represents a potential boom in sales for the apple watch if it could partner with an insurer like aetna and that could just be the begin. on aetna's side, companies are still exploring ways to reduce health care costs by keeping their members healthier. rather than treating them when they're sick. and there's some evidence, although it's still limited, that a wearabl

on the basis of the apple ii, apple kept itself afloat for many years. the first few years of sales of the lisa and mac were very disappointed and it was only because of the strong apple ii sales that apple was able to say in business. in total, the apple ii remained an apple product for an astounding 17 years. a few years later, ibm joined the party. apple took out a full-page ad in the wall street journal and said, "welcome ibm" -- seriously. the ibm pc was not the most advanced computer, but it had the very important job of legitimizing personal computers for business. until this time, most businessmen looked at these microprocessor-based computers like the apple and the commodore as basically toys, suitable for home or education, but not business. it took ibm's entry into the field in 1981 with the pc to finally put a stamp of approval and legitimacy on the pc. you could actually do business tasks using an ibm pc. ibm's initial strategy, being a purveyor of mainframe systems, was to protect the mainframe at all costs. that was generating their billio

to apples. volpe -- apple pay, they have been talking about that. there is also paypal. what is it mean for competitors to amazon pay? >> for the direct competitors to amazon pay, like a paypal, that is particularly concerning. core customers that is a small and medium merging doing -- merchant trying to sales online. amazon is directly targeting and mediummall merchant that may be selling goods to the amazon platform. emily: compared to alibaba and alipay? paypalre familiar with building here in the u.s. alipay buildup as part of the alibaba online platform, similar to amazon in china. recently it has spun out and is starting to expand pretty aggressively internationally as well. recently acquired money gram here in the u.s. and are trying to expand internationally. amazon is entering into so many new businesses. there are groceries now. are there any antitrust or regulatory issues on the horizon? >> the regulatory issue they may run into. one of the areas we are watching closely is that they r

we don't expect apple to build a car. we expect them to build the software that manages peoples digital life >> let's talk about china. the revenue was disappointing in the quarter, down 10%. tim cook played it off and got into the vpn app issue deeply on the conference call. what's the status of the china market, second biggest market now for apple. he also talked up india as he usually does on the call >> right apple, i think, tried to soften it a bit by talking about other markets where they saw significant growth growth in the middle east doesn't matter much if you don't have growth in china and india the population centers there are so big we want to see them accelerate that again. >> a lot of people feel there's pent-up demand coming from china because this is the first product launch on the installed base where they can upgrade. >> people also wanted to see further economic gains in china and increases in income in china would help the high-end consumer that's where apple plays we're not so concerned about market s

. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder. and he just couldn't help himself and so he remade the company the way he wanted. and there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they needed someone to come in and say kill that project, kill that project. that's stupid. consolidate that. and focus the company. >> i'd like to announce one of our first partnerships today, a very, very meaningful one and that is one with microsoft. we're very, very happy about it. we're very, very excited about it. and i happen to have a special guest with me today via satellite downlink. >> i don't think steve jobs has ever experienced you know before or after that just people going boo, no. microsoft represented everything that these hard-core apple fans hated. >> if we want to move forward, it's the apple healthy and prospering again, we have to let go

we have seen apple disappoint before on their numbers with investors for giving apple. there is certainly more tepid revenue numbers just in anticipation of the new devices, the new iphones to come. this one that is anticipated really has to deliver or justify the amazing stock rally we have seen an apple. yvonne: absolutely, i think it is 30% this year. let's see how the rest of the markets will be. a little quiet on the d.c. front. here is how new zealand is faring. we just got the jobless rate 15 minutes ago, falling to 4.8%. the reaction on the kiwi, we are down 6/10 of 1%, .7421 for the currency. we are seeing the post rba reaction. a longer statement from governor philip lowe yesterday. in particular, talking down the currency. that dollar strength helping -- helping things a bit. for thetill at .7961 aussie. we see oil pullback ahead of that u.s. inventory report. going futures not anywhere. japan, the bank outperforming. dollar-yen, we're back above 110. these as speculation stoploss sell orders would twist under those levels. but they are above positive territo

still hungry for more apple. the tech giant expects big things for the next i pone as it publishes its latest results. live from london, that's our top story on wednesday, 2nd august. growing demand for ipads and its other services helped deliver an $11.3 billion profit and send apple's shares to a new record high. also in the programme: standing up to china — is president trump about to take action against trade practices that he thinks are harming america? markets in europe are mixed right now despite a record close the night before on wall street and a strong session in asia. if you're going on holiday, what do you do with these things, your pets? would you let someone stay in home for free if they agree to look after your pets for you? we will speak to the man who is trying to make a business from that very idea! we wa nt business from that very idea! we want to know how far would you relocate for work? let us know — just use the hashtag bbcbizlive. hello and welcome to business live. yes, do send in your

. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder, and he just couldn't help himself. so he remade the company the way he wanted. there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they needed someone to come in, say kill that project, kill that project, that's stupid, consolidate that, focus the company. >> i'd like to announce one of our first partnerships today, a a meaningful one. that's one with microsoft. we're very, very happy about it. we're very excited about it. i happen to have a special guest with me today via satellite down link. >> i don't think steve jobs has ever experienced before or after that people just going, boo, no. >> microsoft represented everything that these hard core apple fans hated. >> if we want to move forward, apple healthy and prospering again, we have to let go of a few things here. we have to let go of the not

remained the apple ii an apple product for an astounding 17 years. a few years later, ibm joined the property -- join the party. the ibm pc when it came out was not the most advanced to computer but it had a very important job of legitimizing personal computers for business. until this time, most businessmen looked at these microprocessor-based computers like the apple, the tsr 80 and the commodore as toys suitable for home or educational environments, but not for business. it took ibm's entry into the field in 1981 with the pc to put a stamp of approval and legitimacy on the pc. you could actually do business types of tasks. beinginitial strategy, it a purveyor of mainframe systems, was to protect the mainframe at all costs. that was what was generating their profits. a roomnframe computer is sized computer spinning hard drives with people running around. the ibm pc was initially viewed as something that would connect to those mainframes. and only later was it something that could stand alone and be used by an individual. we are now in the networkin

that taste of an apple, the sound of an apple and so on. this kind of simulation, even though we are doing it very deliberately right now as an example, is actually very quickly and very automatically occurring in your brain. it is kind of business as usual for how the brain works. in my book, how emotions are made, explain how the square and the apple are no different from what you are doing right now. you may think that you're listening to me speak, reacting to my words. but in fact, the brain is creating simulation predicting every single word that comes out of my - mouth and effects that another body part you would be surprised. your brain when i was doing something very remarkable. neurons in some part of your brain are changing the firing of neurons in other parts of your brain to anticipate what is coming next. here is how i like to think about it. your brain works like a scientist. it is always making a slew of predictions. just like a scientist makes competing hypotheses. and like a scientist, your brain is using knowledge, past ex

cheryl: usually this is a weak quarter for apple. it was the mac and the ipaq numbers they really pushed it over the top, especially on the revenue side. i was a huge surprise for many analysts. tracee: a lot of people looking for the shipping sales. i was a huge one as well to schools, businesses. i was interesting. 1000 bucks, lauren? lauren: i want to spend $1400 on the new iphone. i have to. i have the iphone 16 have to upgrade because my iphone fixes hanging on by a thread. you're going to get everything. transfer that is that they were thinking with earnings. people were waiting, so they weren't sure what to expect with iphone sales. cheryl: they were pretty good. the iphone eight could be the next big quarter. let's bring in mark vittner, senior economist at wells fargo to talk about numbers from apple. the revenue guidance better than expected. almost one of those quarters where you say what was not to li didn't like. they were spectacular. they reaffirmed the idea that it is ramping up and they are selling more stocks. that

apple plans to announce a new and improved apple tv set-top box in september. we will bring you the details, next. bloomberg tech is live streaming on twitter. check us out weekdays at 5:00 p.m. in new york. this is bloomberg. ♪ gmly: disney has added chairman and chief executive officer mary barra to its board. barra's election is effective immediately and brings the total board membership to 12. barra helped gm adapt to the auto industry's changing technological environment. she also sits on the board of stanford university. now to a bloomberg scoop. apple is seeking to revive its video ambitions, planning to unveil an upgraded apple tv set-top box that can stream 4k video thanks to a faster processor. apple tv trails devices from roku, amazon, and google in the u.s. set-top box market share. joining us, mark gurman, and still with us, our guest host for the hour, david kirkpatrick. what do you know? mark: we know apple is going to be announcing a new version of its apple tv set-top box in september, alongside the new iphones and lte apple watch. it will st

apple. this is a report that could telegraph about what they plan to do about the iphone 8 and how many they want to sell. back in 60. by a heart valve problem. but no matter what path i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily... ...and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i'm still going f

green light for apple. another exclamation point in this long strain of reported earnings that have been better than expected. setting revenue and earnings marks higher than people thought in the market keeps drifting higher. jon: david and i were talking about the amount of people who come up and ask us about the politics of d.c. and white has not affected the stock market. but it has had a big impact on the fx market. why? guest: i think the earnings strive stocks, not washington, d.c. thankfully washington, d.c. has been a sideshow to equities. the two things to watch our tax cuts. the market is expecting a modest one. and the geopolitical issues that are festering. off to the side, we watch earnings and they keep coming through and people keep buying stocks. take us through the technicals. what about people who say how can this in the stock market keep going on? >> the trend is the most important factor. before we start to think about maybe this is the top or the end, you have to see some smaller tops o

to apple's $10 app called apple music >> the billion dollar number is a significant number, but in the grand scheme of apple, it's pretty modest. apple has $225 billion in revenue, will spend about $12 billion in r&d next year, so this is a relatively small number for apple, given its huge size. >> so far apple's investment in original content has been limited and tied to music and apps so this is a real departure to push into scripted shows, similarities to the ones you would find on hbo and netflix. apple declines to comment, but it has hired some big-name tv veterans, including sony's former chief, and -- to run original entertainment if apple -- it and amazon spends a reported $4.5 billion annually, and netflix says it will spend $6 billion this year. it will be could oug15% after tt apple has entering this market in addition to its deep pockets, it can immediately launch its exclusive content globally, because the app store is, of course global. julia, thanks so much. looking for produce their own original shows, who will be the big winners and losers roger mcnamee po joins us. go

apple music, the app store, icloud, apple care, apple pay, these have all been solid revenue stream for apple services business. in a few minutes, we'll find out how much they contributed to apple's bottom line. one big thing that they will look for when earnings release. >> a troubling report about the streaming giant's debt load or future obligations, however you want to characterize it coming up in fast take. >>> time now for a snoebs news update with sue herera >> here's what's happening, everyone senate minority leader charles schumer inviting president trump to visit upstate new york after an interview in which the president said it was okay for people in that region to flee to their homes and move to had a better area with better jobs. >> he should come visit. he should come visit and see why poem love upstate new york so much i wish he were other today it's a beautiful day and he would see how gorgeous it is, and it's one of the prettiest, nicest places to live. great lifestyle, great quality of life. a lot of the old-fashioned values reign supreme so i think he shouldn't have s

apple shares up. julia: got my apple ready. scarlet: don't miss this. user bank of india announces its decision at 5:00 tomorrow morning. joe: loretta mester and john williams both speaking tomorrow. julia: earnings on tesla. scarlet: a programming note. be sure to tune in as we are joined line at 8:30 a.m. new york time. do not miss that. joe: that will make headlines. scarlet: bloomberg technology is alisa: i'm alisa parenti in washington. you are watching "bloomberg technology." president trump is standing by his eldest son on the accuracy of his statement regarding a meeting with the russian layer. that is after reports that trump himself dictated the july 8 statement, which says they -- discussed the adoption of children. emailed showed it was a means to deliver damaging material about hillary clinton. secretary of state rex tillerson says the u.s. is applying peaceful pressure on north korea. they raise concerns after recent icbm launches. he also says the american people want better relations with russia. he will meet this weekend with the russia

apple plans to announce a new and improved apple tv set-top box in september. we will bring you the details, next. bloomberg tech is live streaming on twitter. check us out weekdays at 5:00 p.m. in new york. this is bloomberg. ♪ ♪ emily: disney has added gm chairman and chief executive officer mary barra to its board. barra's election is effective immediately and brings the total board membership to 12. barra helped gm adapt to the auto industry's changing technological environment. she also sits on the board of stanford university. now to a bloomberg scoop. apple is seeking to revive its video ambitions. the tech giant is planning to unveil an upgraded apple tv set-top box that can stream 4k video thanks to a faster processor and highlight live tv. apple tv trails devices from roku, amazon, and google in the u.s. set-top box market share. joining us, mark gurman, and still with us, our guest host for the hour, david kirkpatrick. mark, what do you know? mark: we know apple is going to be announcing a new version of its apple tv set-top box in september, alo

profits from apple watch, apple tv and other productsjumped from apple watch, apple tv and other products jumped more than 20% compared to last year. but revenue from china fell for the fifth straight quarter. we go to our north america technology reporter. he talked us through the results. america technology reporter. he talked us through the resultsm was kind of in line with what they we re was kind of in line with what they were hoping for. there are some big wins, particularly for the ipad. that is a product that has essentially been declining forjust over the last three years. this quarter, it showed some growth. i think that can be attributed to the new ipad brough, the software that i’u ns new ipad brough, the software that runs on the ipad and other iphones. apple also pleased with the performance of their services departments —— ipad pro. things like their services, the app store and so on. the service is part of a bull alone could be made a fortune 500 company. alone could be made a fortune 500 company. apple is keen, although they could rely on the success of they could r

. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder. and he just couldn't help himself and so he remade the company the way he wanted. and there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they needed someone to come in and say kill that project, kill that project. that's stupid. consolidate that. and focus the company. >> i'd like to announce one of our first partnerships today, a very, very meaningful one and that is one with microsoft. we're very, very happy about it. we're very, very excited about it. and i happen to have a special guest with me today via satellite downlink. >> i don't think steve jobs has ever experienced you know before or after that just people going boo, no. microsoft represented everything that these hard-core apple fans hated. >> if we want to move forward, and see apple healthy and prospering again, we have to let go o

. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder. and he just couldn't help himself, and so he remade the company the way he wanted. and there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they needed someone to come in and say kill that project, kill that project. that's stupid. consolidate that. and focus the company. >> i'd like to announce one of our first partnerships today, a very, very meaningful one and that is one with microsoft. we're very, very happy about it. we're very, very excited about it. and i happen to have a special guest with me today via satellite downlink. >> i don't think steve jobs has ever experienced, you know, before or after that just people going boo, no! microsoft represented everything that these hard-core apple fans hated. >> if we want to move forward, and see apple healthy and prospering again, we have to let g

. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder, and he just couldn't help himself. so he remade the company the way he wanted. there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they need ed someone to come in say kill that project, kill that project, that's stupid, consolidate that, focus the company. >> i'd like to announce one of our first partnerships today, a a meaningful one. that's one with microsoft. we're very, very happy about it. we're very excited about it. i happen to have a special guest with me today via satellite down link. >> i don't think steve jobs has ever experienced before or after that people just going, boo, no. >> microsoft represented everything that these hard core apple fans hated. >> if we want to move forward, apple healthy and prospering again, we have to let go of a few things here. we have to let go of the not

apple, 12%. will the new note 8, the new iphone coming in september, the essential phone -- will that shake up the numbers significantly? mark: i don't think the essential phone will shake up the numbers. i think it will be a niche player. i think essential will be happy with that. they are probably not going to get a single percentage point. the chinese makers are right on apple's back. maybe they will cross them, maybe they won't. the iphone will be constrained for the first few months of the launch, the premium model. we will get a good indication of where the answer -- the iphone versus apple -- the apple versus samsung fight will be. emily: what do you think will -- selina: it will probably top what it did for the note 7 and the s8, which blew previous versions out of the water. there's a lot of excitement here. samsung is regaining its lead as the number one smartphone player. estimates say the united states, both apple and samsung have about 3/4 of the market. there's a lot of stickiness t

apple music has half that. netflix has 104 million paid streaming subs and they don't have a streaming service, so to me, if you think about the f sfs business becoming a great er par of the whole, it needs to be something more >> all right i'm sitting home watching apple up almost 6% new record high. what do i do i know a big iphone 8 release is coming and i don't know what to do right now >> couple of away. there's a good changs we retest the high of $134 and change. >> we have him on tonight. >> we do looking at him right now that was my view a few weeks ago, so clearly, i was wrong i don't know what happened with ipads, but even crushed the ipad number some people refound the ipad for some reason. to answer your question, listen, i thought it was going to 134. i was wrong. what do you do with this i'm not certain. i'd love to go to the conference call, but i got to believe you'll see a pullback. >> you got out of apple a while ago. what would make you reconsider is this quarter strong enough? >> i'd probabl

he has unveiled apple watch and apple music and made apple's largest acquisition in history, buying beats. he has taken on issues like the environment, philanthropy, equality, and education. he stood up to president obama on user privacy and maintains a dialogue with president trump despite the disagreement on climate change. now is iphone sales plateau, whethers remain about it's the big innovation -- where that big innovation at apple is going to come from. we sat down at the annual development conference sec out new territory for the company's future from tv to cars and apples are's category in years, a smart speaker called home pod, a direct challenge to amazon and google. on this edition of "bloomberg studio 1.0," apple ceo tim cook. tim, thank you for joining us. tim: it is great to see you again, and unbelievable to be here. emily: let's start with the new smart speaker. why should people buy homepod instead of amazon echo at this price? tim: what we tried to do is we built something that is a breakthrough speaker first. . , dating deep in our dna back to itunes and ipod. and so, w

. >> stave came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder. and he just couldn't help himself and so he remade the company the way he wanted. and there was no one to oppose him because the company was exhausted. >> steve jobs had exactly the abrasive but incisive personality that apple needed at that point. they needed someone to come in and say kill that project, kill that project. that's stupid. consolidate that. and focus the company. >> i'd like to announce one of our first partnerships today, a very, very meaningful one and that is one with microsoft. we're very, very happy about it. we're very, very excited about it. and i happen to have a special guest with me today via satellite downlink. >> i don't think steve jobs has ever experienced you know before or after that just people going boo, no. microsoft represented everything that these hard-core apple fans hated. >> if we want to move forward, it's the apple healthy and prospering again, we have to let go

apple, 12%. will the new note 8, the new iphone coming in september, the essential phone -- will that shake up the numbers significantly? mark: i don't think the essential phone will shake up the numbers. i think it will be a niche player. i think essential will be happy with that. they are probably not going to get a single percentage point. the chinese makers are right on apple's back. maybe they will cross them, maybe they won't. the iphone will be constrained for the first few months of the launch, the premium model. we will get a good indication of where the answer -- the iphone versus apple -- the apple versus samsung fight will be. --ly: what do you think will selina: it will probably top what it did for the note 7 and the s8, which blew previous versions out of the water. excitementot of here. samsung is regaining its lead as the number one smartphone player. estimates say the united states, both apple and samsung have about 3/4 of the market. there's a lot of stickiness to the samsung ec

michael: apple brings a lot to this party. they have devices, people watching video on their phones and on apple tv and computers. but at the same time, they also got a lot of data and they know what people are watching and they know what people are doing. but at the same time, it is very difficult to produce hit tv shows. youtube is using data to be able to decide what shows they will produce. for example, they are doing a spinoff of "the karate kid," because they know people are watching old clips of "the karate kid," or doing shows about dancing because they know what people are looking at. in apple's case, it is not as easy as going to the video store, or the content store, and saying, just serve me up a hit series. that is very difficult to know what to produce. there is an old line in hollywood -- "no one knows nothing." that means no matter how may times you have made a film, you may not know what will make the next film or next tv show successful. i think it is going to be evolves,ng how apple and at the same time, the

we've seen what apple has done, slowly bolting on new services you have seen apple pay, apple music come to market, apple dabbling in original content it's interesting to see where they go with that, whether they wrap that in to the apple music service or create a stand-alone netflix-style service. there's a lot of availability for apple to go into new areas and new segments they've been talking about the potential of imessage and what happens to imessage. we've seen with the likes of wechat in china, that's a one-stop shop for music, payments, loans. it's interesting to see how apple develops out the imessage department there's plenty of room to maneuver this is something that can only increase in terms of revenue and scale. as apple garners more users, perhaps on those new devices, that's bright spot >> are you going to splash 1,1,1 00 on that new phone? >> not me. i just entered into a new contract >> i wonder if the high iphone8 will drive inflation up. tim cook had a lot to say about apple. head online to read our full interview with him we're back after a short bakreak >>> welcome

our top story today is going to be apple hitting the all-time highs. the company beat on the top of the bottom lines last night issuing stronger than expected guidance for the september quarter. strong device shipments are building the best revenue growth in seven quarters, jon, with unit revenue growth in all categories and surprise ones >> ipad, i was looking for more than half the ipad's life now, it has been in decline so this performance up year over year, at least sparked some hope that that might be shifting. but i want to see a couple more quarters before being confident of that. the two things that seem most significant to me off this call were the low inventory levels, the big sell through they had in this quarter, and the aggressive guide into the start of what we expect to be an iphone launch, given that so many people had expected the highest iphone to be delayed somewhat. what does this mean? are we going to have more iphone models out than we have had in the past perhaps updated models why is tim cook so confident >> andy, all the buzz a

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apple has $225 billion in revenue. they will spent about $12 billion in r&d, and this is a relatively small number for apple, given its huge size. >> so far apple's investment in original content has been limited, and tied to apple's core focus on music and apps, such as carpool karaoke and planet of the apps. that makes this push into content like "game of thrones" is a big departure. apple declined to comments, but it's hired some veterans to run the video efforts, also tapping the former head of wgn and tribune studios to head its area for development. >> if it -- that's still just about half of what time warner's hbo spends annually. now amazon reportedly spends about 4.5 billion, and netflix will spend $6 billion this year. >> this position of sorting starting later in the game is not unusual for apple. now, whether they will be ultimately successful or not remains to be seen. they certainly are the war chest to win. i mean, they are more cash than anyone else, and they generate more cash flow than anyone else. >>

the products category showed strong growth for the apple watch, air pods, and apple tv. in home pod will likely join december. forerms of revenue services, the app store group revenue by over 20%. apple said revenue for services will grow by 2020 or 2021. altogether, apple had a solid q3 quarter ahead of high volume quarters ahead of high sales. coming up, a market check, dollar coming back a fraction. also, goal declining, down a bit. oil below $50 a barrel mark. should be good news for sri lankan airlines as it tries to charter a different course. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with new set of the white house. anthony scaramucci has been removed from his role as communications director after just 11 days, which he had widespread media attention. his exit comes on the same day general john kelly was sworn in as president trump's new chief of staff. john kelly is someone who is seen as someone to bring order to a chaotic west wing. ca

liz: apple doesn't like that. apple, though, tim cook was talking about cars and robot cars, he said it's automation, we are pushing on software and automation, apple services, the services part of the business, the sales there bigger than facebook, bigger than capitol one. bigger than travelers, 27 billion is big. stuart: huge. >> by the way to talk about cars, tesla into the mix in terms of acquisition for apple. the other thing that's interesting is it all hinges on the next iphone. that's why they boosted the ipad sales in the quarter. heading towards the rollout, it better go-be -- be good. stuart: very powerful on wall street, david, tesla could run out of cash making the model 3. that's what you're referring to, isn't it? >> that would be a pretty happy marriage if they need cash,

if i owned apple, i might retiring. >> how do you luke those apples? this quarter snuck up, they did the trifecta. they beat estimate for this quarter, next quarter. you know raised guidance it worked. it is a big dow component. cheryl: the -- looking like if that stock continues to perform overnight to tomorrow. >> apple up 9. that is about sense o 70s dow points. everything is weighted with it. we should have a good day. i believe we'll pierce through 22,000. apple should lead the way. cheryl: you know with apple, the concern, this is normally a weak quarter for them. >> yes. cheryl: because those with iphones are waiting for a new fall iphone, we think is the 8. >> 41 million iphones this quarter, that is crazy. cheryl: why did the consumer not hold back? >> they don't know when it is going to happen. for me, the battery life goes, you can't wait for upgrade cycles all of the time. they did it with america a c -- mac , and reoccurring revenue from iphone and itune business. cheryl: max sales up 7. 7%. >> back-to-school,. cheryl: is that it? >> july

look at apple. china is the second most important market but we have to watch it if we see this. >> the gop and debt ceiling and other things the companiesrevenue over 45 billion selling more iphones than expected on last night's earnings call. tim cook did highlight the service growth of 22% in the last year. >> service's revenue hit an all time quarterly record of $7.3 billion 22% growth over last year. with double digit growth in each of our geographic segments over the last 12 months our services business has become the size of a fortune 100 company, a milestone we have reached even sooner than we had expected. >> a lot of things coming together for the company does this signal the end of am trading at a relative discount >> we sort of hope it does this is one of these unique quarters where it was not just an iphone. it was ipad and actually the entire spectrum that did well and there was a quarter where you could think that apple was less product cycle and more franchise and the path gets easie

apple. we've already told you that that stock is probably going to go up 9 bucks, maybe 6% plus the opening bell. look at that. that's the premarket price. it's been trading at that level, 159.60, 9 and a half dollars per share, up and that's a 6% gain. if we get that gain in 49 seconds, it will push the dow industrials to 22,000, we closed yesterday at 21,963, with 36 points and small change away from 22,000 odds are we are going to hit -- look at that. futures show a gain of 40, 45, maybe 50 points at the opening bell for the dow industrials. we have the graphic ready. graphic on the screen, whether he hold it right there. >> maybe we shouldn't watch. [laughter] >> i'm nervous. stuart: if i'm wrong again, i have egg all over my face. what's that a watched pot never boils. maybe we should get rid of that. 10 seconds to go. i can see at the corner of my eye, they are all clapping and cheering, here we go, folks, three, two, one, bang, we are open, we are off and we are up 22,000. thank you,

jack screw that was hand cranked down to squeeze all of these apples, the apple chunks. and that was collected in buckets and from that point on you're going to ferment that juice. what we're doing, this is about 5% to 6% alcohol content when you're done. so the fermentation process for apples takes longer than it would for making a whiskey which was also made here, the main commodity. you're looking at 14 to 30 days of fermentation depending on the types of yeast that were used. in this case, what we're doing this time, we're fermenting with a champagne yeast, a little faster acting. so it took about 10 to 14 day to complete the fermentation. but in washington's tame they didn't know a lot about the science of the yeast. today that's very much a trade secret in many distilleries. they'll tell you everything that they do but they're not going to discuss the type of yeast they're using. and they have labs where they work on the yeast. but with washington, there's a naturally occurring yeast. he may have had the apple juice pressed and let it set in barrels and let the nat

apple hq. in cancernew era care. the fda approved the treatment that could destroy childhood leukemia. but the price tag is almost half $1 million. our reporter has been working on in aand we will go to anna few minutes and check markets in the meantime. the dow is up it. the s&p 500 adding to gains. the nasdaq composite index running away up 0.8%. apple helping move a little , ther as it is higher stock is rising no following the official confirmation the invitation has been sent out. let's get to anna, the fda approved novartis' breakthrough cancer drug and will cost nearly $500,000. for more on the reporting, less of debt to anna. -- let's get to anna. is it is the first in a string of approvals on the therapy? the latest in cancer fighting therapy? >> certainly, the first and likely what will be many therapies and many other gene therapy as it was the first approved in the u.s. inead has acquired a drug acquisition with kite pharma that is a cartoon that could be approved by the end of november. there are many, m

there are also all the services like apple pay. emily: he told me that over the last 12 months, the milestone of earnings have been projected to be met, but not this soon. >> yes, i think they have to be happy about that. it is an important revenue stream for apple as it will be for other competitors going forward. emily: what is your take on the broader apple ecosystem? we focus a lot on the iphone, and we know we are expecting a new one in the fall, but everything else is moving the boat essentially. >> yeah. i agree. it was impressive that in the third quarter when you saw iphone unit sales be basically flat, but services like app store downloads and apple music subscriptions rose very strongly. so, the question for me is can the services revenue continue to grow quickly, even if iphone sales don't? how independent services revenue from the iphone? emily: on that note, everyone was focused on this revenue guidance, as it may give some indication on when the new iphone will start being accounted for in the revenue. what do you ma

iphone, we'll bring in guggenheim's apple analyst here and samsung's analyst. we'll start with you, rob. lately a lot of lower cost chinese manufacturers, or really a couple, have been gaining shares so how, if at all, does this change the landscape, should we expect to see a premium surge in terms of marketshare at tend of the year >> i think, keep in mind, apple and samsung have been competing at the high-end against surging chinese oems for several years now. so i don't think that is anything new you know, in apple's camp, what they have going for them is they are the only ones who make ios phones so if you want an ios phone, you have to buy from apple samsung really is the one who has to compete across the board. because it's selling android phones like everybody else >> medi, how much of apple's success over the past year, and the stock is up quite a bit as we talk about often, because they essentially have a power-play in hockey terms samsung playing with one fewer on the ice and does this fix that should apple investors be concerned, samsung investors be

you think apple is the only company that can change the tide? roger: i do. and it's because their business model is based on selling devices, not occupying your attention. the issue is not that facebook and google are managed by bad people. they are not. they are managed by good people. the issue is the business model. 10 years ago, we lived in a world where being a studio executive or running a network -- those were great businesses. from information scarcity to a attention scarcity. people were on their phones from the moment they woke up until the moment they went to sleep. there was so much available that the battle shifted from controlling content to controlling attention. google and facebook, because of their advertising models, used addiction to do that. think of theou moves tim cook is making? he is making privacy and issue. he is taking a stronger moral stand, a stronger political stand. roger: as an investor in apple, the ceo.m cook as i was a huge fan of steve jobs, but i don't know that steve e done as well in china as tim cook has done. i don't

overhaul fora big apple. they're preparing three new iphones, including upgrades to us. 7 ad -- and 7pl modelthird, premium pro will be more expensive, around $1000 u.s. it will have a 3-d facial recognition scanner the basically allow you to look at the phone in order to unlock it instead of scanning a fingerprint. and in today's story you mentioned, it will not have a home button. it will have a touch system for controlling the phone, for things like going to the home screen, toggling siri and opening up apps. betty: you buried the lead, no holds. hows almost unthinkable often we use that home button. apple, who were they aiming for with this new phone, at about $1000? >> i should know better than to bury the lead. the home a button -- home button, they're looking to sell this phone to people who are willing to pay the amount of money you would normally pay for a high-end laptop or computer. someone that uses their phone for everything, who once the latest technology, the highest end product they sell. they

emily: apple is lagging. i did sit down with tim cook back in june and he had this to say about being first. take a listen. tim: for us, it is not about being first, it is about being the best. and giving the user an experience that delights them every time. we don't let that in patients -- impatience result in shipping something which is just not great. emily: talk about the future when it comes to apple. which features are apple first in, and what features are they behind? tim: so, the os screen which is something that has been appearing in samsung phones for vertical integration, motorola has had them, the essential phones we have had on the show all have them. samsung has had it. 3-d sensors are going to be new. we saw the android, google play store come out after that. apple was the company that -- the smartphone in the beginning. emily: also when it comes to profits speed, apple has them first. >> yes, a couple months before that, i think i said the phone would have the big chip, but they did come out w

apple was extraordinary. and nobody expected it to be that good. that's damn near a record. if it isn't a record, i'd be surprised. that was a blowout quarter a lot of folks brought them up to the 160 strike. it was 160, 159-ish after the pop. that's about as high as they went with it here. so itwas only pricing up a mov of half the size that it actually got, judge, so a lot of people caught short or, like me, waiting for a pull back and didn't get it. >> so pete's in there and i wish i was. >> i'd call it a round talking to big investors on how they feel about where the market is, given dow 22,000 i'm going to give you some of the conversation i had with one. i'm not going to tell you who it is but this is what they said stay long stocks, absolutely and short bonds. greenspan was right about there being a bond bubble but not one in stocks. the market is not excessively expensive, though it's not exactly cheap. bear in mind, this comes on the heels of cautious commentary from the likes of howard marks and robert shuller and the ten-year today is at 225 >> right. >> what do y