San francisco, the information founder of lesson, guys. Apple is the big story, after the bell, analysis is going to be out, and a lot of people are liking to hear that they are going to have down year, and a lot of people dont want to go into the paper with expectations so high, but this is the opposite. Well, talk about negative sentiment of a company with 50 billion in revenue. But we have seen the device, it is a device with huge sales and hard to repeat. But people are ultimately talking about there is going to be a new phone or the device or the car or the tv or something. And jessica, we often hear the ceos of the smaller Tech Companies try to invoke the law of larger numbers, and so with the recent law of numbers, how much does it apply to apple and the earnings each quarter . It absolutely does. This is the same story every quarter whars is going to be happening to the iphones sales, and the long deklining growth, and it is going to raise the question of what is next, and that is a big question, because what else can you go to the phone . You can make it smaller ore bigger and that is the interesting question, but quarter to quarter, Everybody Knows the story, and everybody who watches apple, and it is about the story, and it is all about cycles. And the new narrative is the e ecosystem and not the hardware, and the bullish calls over the past several months are looking to double the Service Revenues by 2020, but how do you value the ecosystem so big and broa broad . Well, historically, apple has been terrible at services. Their own applications have not been well run. There are rumor that they may be interested in the drop box which would be ideal, and all they have have to do is to look at the Sister Company amazon to see what they have done in the services, and how big of a division that could be for the hardware and the vertically integrated hardware company. And terry, the fact that we have not heard the investors talk about buybacks in previous years, and is that a success with the cash . Well, i would not characterize it a success when you consider how much is in the till. It is an enormous amount of money for the company that the scale here, and the dynamic space, you would think good uses for the money other than what they are doing with it now which is earning close the zero percent interest. And also tonight, shares nose dived after twitter reported shares down, and they are still down 25 so far this year, and so, jessica, is there a camp for that user growth to reignite, and not in this quarter other quarters . Well, the campp is still skeptical about the user growth igniting, and with the nfl deal they ignited, there is a question of streaming the games the online is going to ignite the fundamental use of twitter. People want to see different o Product Innovation, and stuff to compete with snap chat and other companies. And when we look at the stock of dorsey and the rollout of periscope, are we looking at the incremental progress or treading the water . Somewhere in between possibly, because they are interesting moves, and jack is a product guy. He has good ideas, but moving the ship in that direction, and keeping up, because stuff is changing very, very fast now in the mobile app consumer experience. I think that it is not just video in the periscope form. There is a lot more that can be done. Even if twitter were to launch a product in that space could they scale it faster than a facebook could, so a lot of the pieces need to fall into play, and still look at the talent of the company, and we saw a lot of the executives leave, and interesting today if jack talks more about the bench. And the stock has been higher in this company, terry, higher than any other tech company, and so can they afford to keep people . Well, all of the people need top people, and this is a factor of life, but the narrative here is wrong. The comparative narrative of twitter and facebook and the user growth story. And facebook at 1. 6 billion, and Mark Zuckerberg says he wants to triple it, but it is not the right company to compare it to. And who do you use . Well, the comparison of the consumer growth is a mistake, because they have Enormous Growth off premises which is to take their signal, and earn a revenue not necessarily on the twitter platform. It is not to say they should not keep innovating on the product, but the more opportunity more so than the other companies is off premises. But it is not a new idea . No, and quite frankly, the two acquisitions in this area, they have proved very, very good for them, and they are helping to drive the revenue growth. This is a company with more demand than supply, and having a strategy that gives them more inventory is a good thing. Yes, right. And five east coast states are holding the primaries today, and speaking of the elections, this oped from wall street journal is getting attention, a thirdparty candidate who can channel the innovation, and what do you think, terry . Well, i love the innovation, and the nation needs a third r party, but we have to be careful not to apply what the digitrazzi think. Because we have seen the popularity of trump, and the masses think differently than we do on the coast. And so we have heard some rumors that cheryl sanberg may have political leanings with the book lean in. And also, more that could be potentially siphoned into a political idea . It is farfetched. Silicon valley has d. C. Where it wants in that figures out here can have a ton of influence through money and policies and their company, and they think bigger than washington in terms of the platforminfluenced way. I cant see it happening, but i like the name innovation party, and maybe the name of a facebook Conference Room might b and it has the ring to it. So i have to chuckle when i read jims oped. And it is funny, because we were talking about the job growth with cramer in the 9 00 a. M. Hour, and if swrou a kyou Computer Science degree right now, it is golden, and if not, it is harder. Is there a part of america that resents the dijirati group and the success . Yes. It is going in the world of where the tech is important, to a world of where tech is important to everyone. And the Innovative Technologies can help pretty much everyone in the country for daytoday tasks. But the jury is still out whether their policy views actually applies to middle america. Although, i did read another piece of how many meetings barack obama has had with google executives, and it seems that the Technology World has had significant influence on the white house. Yes. And jessica, any read on how v vandaheiss piece has . Well, it is a subject of what comes up at cocktail party, and people are not sure how the improve anything including politic politics, but as it has come up, it is back to the w well, i could run for office or i could build a company that people all around the company are using and invest in philanthropy, and people are going to be choosing option b. Yes, that is the track record so far. Thank you sh, terry for taking hour off. And now, we go to jon fortt who is at the collision conference. We will have the ceo of in i intoit brad smith coming up, and we will go on the stage to talk about technology change, and it is interesting, because they Just Announced this morning that online revenue turbotax is up 15 , and it controls the direction of the revenue overall all year, and the stock is up in the early trading and close to all time highs, and so it is is going to be interesting to talk to him about the recovery of certain mistakes that he made, and remember last year turbotax and the Small Business and the blowup that almost happened. And here at collision, it is enterprise, consumer, and social is a part of it, and a few people doing the live stream here on facebook, and periscope as well. And so this conference from the same people who brought us web summit has gone broader as the int internet has gone more broader. And now, we will look forward to that, jon fortt in new orleans. The markets at this hour are losing steam. We saw Consumer Confidence and durable goods in march come in light, and the dow down a fraction by 1 , and the s p 500 has managed to go into the positive territory, and the nasdaq is down by 0. 0. 30. And now, the stock is down on whirlpool, and the same for dow as they are planning with dow chemical. The ceo of roku is going to tell us as well as more with the exclusive interview with nike founder phil knight, and what he is looking into. And we are getting more news on the Credit Rating of exxon mobile, and so with more on that we go over to you. Well, sorry to break n but they have had the aaa rated company dropped down, but it is stable. The reason it is important is because exxon mobile is only one of three companies in the u. S. Who had that aaa rating and the only two remaining are johnson and johnson and microsoft, and so, again exxonmobils rating cut from aa to aaa. They are also going to have weakening commodity prices, and also, they are going to take a look at whether or not those issues remain through around the 2018 time frame. Guys, that is a big deal when s p cuts exxonmobils rate. Yes, that is a big read. Dont go to paris. Dont go to la. Dont go to tokyo. Live there. Hey, welcome come in, come in. When you airbnb, you have your own home. Make your bed. Cook. You know, the stuff you normally do. Wherever you go. Dont go there. Live there. Even if its just for a night. Woelcome back to squawk alley. Im jon fortt. And talking to the ceo and founder of roku anthony wood. And i want to dive into the tvs because we were talking about how from zero to 8 of the smart tv market being r oshoku tvs, a tell me how it is going to the affect the business overall, and how many of the tv buyers are taking advantage of the roku service . Well, it is the platform for tv, and we monetize it through the large margin licensing iing services, and with wep want to get as many rokus out there, and we have the player out there, and stream more than three times as many hours compared to the biggest competitors like amazon or google for example. And one of the big goals is to drive up the streaming hours, because as many people are streaming as possible, and stream 5. 5 billion contend which is up from the year before. And we started with the players, and of course sh, the tvs is a h for us, and we license the platform to tv oems and they sell the roku tvs and have five manufacturers to build the tvs and six models will will ship this year, and what is happening in the smart tv is that all tvs are smart tvs and manufacturers are switching from the Homegrown Solutions to the license Solutions Like roku, and we are leader there, and the Business Model is that we dont stream the tvs b ow on the billing system to monetize that installed base. I wish i could get granularity on the Conversion Rate on the buys, and maybe you can tell me that, but what about the streaming sticks, are they a thing of the past, or less interest, because less people are using them . No, there are multiple ways that people get streaming, and tvs are increasingly the big Growth Engine for us, but the streaming players are important, and we Just Launched the new streaming stick, and so we will sell millions of those, and it is still an important way for us to distribute the platform, but 39 million tvs sold in the u. S. , and they have an operating system like phone, and many of them are going to be roku. And we were chatting before break that we were surprised that we were talking about the new fcc regulation where the set top box makers are going to be required or the Cable Companies are going to be required to let boxes connect into cable, and comcast, our Parent Company is not in favor of this, and i think you are opposed to it . Right. We are opposed to fcc and the oped in the wall street journal, because there are so many ways to get the cable on the box that is not cable. You can buy a roku for under 50 and get Time Warner Cable as an app, and espn, and every major piece of content on the cable, and in fact, we signed a deal with x finity to roku app. So tons of competition with the set boxtop tv station, and there are a lot of the unintended consequences to the rule. We believe it is going to be driving up the prices of the Video Services for consumers, and it distracts from the real i issue. The e real issue is that there is a revolution happening in tv right now, and really the only thing to stop it is Broadband Access or, you know, so it is require requires that free access not in the sense that you dont have to pay for it, but there are zero rating where a broadband provider can preference their service to a thirdparty service, and that is the real throat stopping the streaming revoluti revolution, and that is what the fcc needs to focus on. And thank you for telling us more about roku and sticks are still a important part of the streaming process. And shares of tmobile are falling even though the Company PostedStrong Subscriber growth, and easily beat the analysts, and what we were told about this on the other side of the break. Shares of tmobile are sinking nearly 2 shares despite the company reporting stronger than usual subscriber growth. And there was a prediction that the Wireless Industry will see new consolidation Going Forward as john legere spoke to jon fortt. There is a broad gaming on in the next few years, and we do all of those things well. And so in the next five years, what is the issue . Because at t is trying to migrate, and time warner comcast, and so i still retain the belief that in five years, it is going to be hilarious that we thought there were four carriers in the Wireless Industry, because it is not wire le less, but the core way that you access wireless entertainment and Everything Else that you do. And along with tmobile losing, so did yeah and verizon. And the net ads would be higher than they previously guided, a his comments about consolidation though are so interesting, because sprint is the natural partner, but if you even so much as look at the twitter words between marcella clarrier and john legere, there is no way that is going to happen. And now, tax day may have passed, but the turbotax intoit is going to tell us why they have done away from the pcs. And the stock is down, and we will look at that. Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Good morning, everyone. Im sue her rera, and this is t cnbc update. A new poll shows donald trump and Hillary Clinton continuing to build the leads. Trump at 50 compared to ted cruzs 26 , and john kasichs 17. Bernie, and clinton is leading Bernie Sanders by 42 to 32 , and both increasing the e leads from the previous poll. And Johnny Manziel has been indicted by a dallas grand jury on a Domestic Violence charge according to court records. He is facing up to a year in prison if he is convicted. A new study by brigham and wom Womens Hospital says that women who work overnights may have increased risk of heart disease, and researchers followed 2,000 female nurses over a 24year peri period, and women who spent five years working the night shift were more likely to develop heart disease. And apparently, all is forgiven, and kelly ripa returning to the daytime talk show to gather the thoughts when learning that cohost Michael Strahan is leaving for good morning america. And her bosses have apologized for not letting her know in advance. Kayla, i predict more drama ahead with the search for the new cohost. And she just joked the Long National nightmare is over. Yes. And now we go to simon hobbs for the results over in europe . One is that the banks are do doing well, in the ur and spain. And the sterling in the pound is behaving well with strong gains going back to where we were in the beginning of the year, and attempting to erase some of the losses. We have a new poll, and the first big poll since the obama intervention on the brexit vote showing that 56 of all voters believe that they should stay in the uk, and only 14 believe they should leave. When you start to account for turnout, it is 46 , which is fine if everybody turns out to vote, but the problem with a ref remember dumreferendum is that not turn out to vote if they dont believe it will have any influence. So on that note, it is a tight bound. Spani spanish, and italian banks, and there is a report that the italian Prime Minister may resolve the decree which established the 20 basis tax on their transactions which would help with the probability. And the standout today is the charter on the nonloan condition, and losses are down 1 ax and the capital ratio is rising, so people are clearly cheering because it is going to be moving positively. And on both sides of the atlantic, b. P. , british petroleum, when you strip out the oneoff index, you will get the underlying profit figure of half a billion, and many people thought that they would report a loss w u for the oil major, that is not bad almost up 5 on the session so far. Back to you. Thank you, simon hobbs. Meantime, apple is reportedly o going to see the first Quarterly Sales drop for the first time in 13 years. We go to josh outside of the Head Quarters in cuper