Qua Quarterly Sales drop for 13 years, and the guidance is coming in lower than expected. And this is tim cook talking about it on last nights Conference Call. As we continue through the june quarter, id like to remind you that remeasure the health of the customer demand in sell through, and despite the q2 channel of the inventory in light of the Macro Economic environment we plan to loe wer e channel inventor ris in the june quarter to impact the revenue in q3. Apple is the biggest laggard having a 44 point downside, and lets bring in dan morgan who is the Portfolio Manager of sinovis. What are you seeing . Well, it is a monumental quarter where they quit growing in the huge pace they were in the past, but it doesnt really change, carl, our opinion Going Forward on the stock. We have a big profit in it, and we are not go to the be making a change right now in terms of selling it. We are hopeful with the iphone 7 coming out with the previous history of the other instances of the other releases like the iphone 5 or 6, the stock has traded up in anticipation of the release and we are hoping it is going to happen again with the iphone 7. Is the capital return losing the luster, because in some of the previous quarters the dividend hike and the buyback increase would pacify the inv investors, and what happens now . You are rite. They increased the dividend by 10 , and announced another share repurcha repurchase, and that kind of the Financial Engineering that Companies Like hp and ibm had done for years to drive their stock has gotten to the point where the investors are like, hey, we need to see some growth, and increasing the dividend or splitting the stock is is not going to drive it up like it had in the past. And guy, is this just time for investors to accept a new normal in apple . I mean, it could be argued that the iphone is a once in a generation, and maybe once in a two generations sort of product, and Everybody Needs their own smartphone, and the revenues were high, but hidden from the consum consumers for a long time, because of the carrier subsidies, and the profits were off of the charts, and eventually the thing had to slowdown, and that time is obviously now. I see no reason why it should accelerate to the growth levels of before just because apple has the world pretty much covered now, and should we just accept, hey, it is a great par i the, and now it is time for the hangover . I hope that the party not over, jon. Again, we have to kind of look at the multiple, and we have talked about that before, and 10 or 11 times earnings and low, and not like it is trading at a huge multiple and so if they can scratch out 15 to 20 growth Going Forward on the 10 or the 11 multiple, it would be a valuable stock. Right. Let me toss that back to you, guy. Yeah, back to me. How about to me. All right. So i have worked at apple obviously and i have been outside of apple, and my observation is that things are never as good or bad as they seem for apple. So right now they seem bad, but not as bad as we think. The fundamental issue for me is are they making products that make you lust for them, that make you want to upgrade . So i have used the macbook pro since 2013 and not switched. I used to switch every year or year and a half, and i have not switched for three years and the iphones and the ipads i switch all of the time, but i have to be psychologically at the cutting edge, but for many people when you look at the iphone 6 and the 6s, is it that different . And the iphone 7 or the rumors of an iphone 7, it is going to be looking the same, and you cant plug your headphone into it . Is that a tradeoff for a better camera Strong Enough . The question for me is at all times with apple is, you know, are they making us lust for something that basically we want to give our atm cards to tim cook and say, tim, leave us enough money to eat, and otherwise, take everything that you want. And guy, what is the answer to that question . Yes. The answer is that apple has to create a product that was, you know, mcintosh to apple 2 and we need a product to leap to the next curve, and i dont know what it is, but it is not simply making the iphone smaller or the ipad, you know, bigger or sma smaller, and so what is the next leap . That is the toughest question of all. With steve jobs, you know, you were in a reality distortion field so you could believe that making an iphone smaller was a big deal, a revolution. Ah, not so convince anythingmore, and so we need a leap. And the question though, guy, of whether the revolution now comes from outside, and now tim cook saying on the Conference Call that we are always looking in the market about things that could compliment the things that we do today, and the features that we do or allows us to accelerate into a category that we are excited about, and we would definitely buy something larger than we have bought mus the far, and is this a company that is going to be doing some acquisitions . Well sh, he is hinting at th but although, you know, i could make the case that not invented here was invented at apple. So we shall see, i guess. And so, i wonder about the prospects for growth, dan, because some fundamental things have changed over the iphones life. They are not expanding geographically as they were before, a before, and they have the world covered and the Retail Stores have much more coverage than before, and there is not that opportunity to take care of, and early on, they would change skreep sizes from the four size the screen sizes from the 4 size to the 5 size to the 6f size. So the resolution was getting better, and so even if you liked the phone, you wanted to load it more quickly and you had to upgrade from the 2. 5 to the lg to the lte and none of that stuff is happening anymore and so should we not see a slowdown because of that and all of the maturity. Well, jon, that is quite a question. But anyway, if you are looking at the big macro scale, and do you feel that there is any opportunity at all in china . I mean, 13 of the market share, and the average selling price in china is 299 or south of that . I am concerned then and a possibility to bring up something in that market share just based on the pure population to give them the opportunity to get the next leg. Yes, but tim cook is saying that the demand for the se which is starting at 400 is larger than they expected and they have to sell three ses to make up for two premiumpriced iphone, and even if the volumes go up, the revenue may not in china. Right, the average selling prices are fall iing, and that a key in following the stock in terms of the gross margin, and that is the conundrum, jon. Can they do iter or pull it off or a losing game not only selling into china, but india, and the emerging markets where the average income is much less than the u. S. And they dont have the subsidies that we have or starting to extinguish here in the u. S. In terms of the carriers. So that is a big conundrum, and another thing that you is not talked about is services. They did a little bit over 5 billion, and 10 in the apple pay and the itunes and tv and could that eventually become a Bigger Picture in the product mix and sort of like ibm where the services were 50 of the revenues and im not saying that they are going there, but could they use the leverage to expand in terms of garnering more dollars per user so to speak, and that is something that could be on the table also. Dan, Big Questions being asked today, and good to have you with us. Thank you. Dan morgan talking about some apple. Thank you, carl. And up next thank you, guy. And here is jack dorsey talking about the user growth with an exclusive with Julia Boorstin. The total audience is massive and we have 8 Million People experiencing tweets on a regular basis. That is immense and you cant go to any media or the Television Screen or outdoor space or the billboard space with seeing hashtag or twitter space. That is everywhere and we want to see that strengthen and improve. Normally, guy, the user growth is challenged and the sale side makes up for it in twitter, and that didnt happen here. But they have good user growth, right . Sorry. Say that again. They had pretty good user growth, and higher than anticipated user growth, right . Well, 1 , quarter e on quarter, and flat in america, i think that some people might have been looking for more . Yeah, well, we are always looking for more. For twitter, the issue is that they have to add greater yutiliy to peoples lives, and maybe they are peaked out at this ubiquity of the hashtag and the ubiquity of the tweets, but fun damt ally, it is a useful service. It is a challenge for them to monetize that. That is the question for them. It is not really, you nknow, obvious how you monetize the tweets. Jon, in the meantime, they are adding the value to the employees pocket, and so if you are a share hoeholder, you shou apply at the company to get some of that. Yes, and that could happen if you can code. I think that twitter continues to have a couple of challenges. One of them is to me the Twitter Product itself, an unless, you know, you have a tv show like we are on here now, and you are trying to communicate with an audience, it is kind of clue ji and complicated and i view it as more being the infrastructure than the actual product. Periscope is more like a products and why tont ta build more things on top of twitter . El well, to be fair, the emphasis is live video, and coincidentally, it is also facebooks emphasis right now. And this is another piece that is not ringing true. On the earnings call, and before, and they were talking about the prince dies, and you have to go the twitter to be a conversation, and facebook is where i had the richest interaction of around prince and people who appreciated the music and posting videos off of youtube like the old George Harrison remembrance and i saw it pop up time and time again on facebook and not twitter. And so they dont have a monopoly on the what is happening now that they project they have, not any more. And guy, you have 1. 5 million followers on twitter, and would you find richer engagement on the facebook . Well, i have to say that i think that you are right. Just the simple 140 character limit, and the difficulty of adding the video if possible at all or the pictures and facebook is a richer environment. I have noe tticed with periscop and Facebook Live, i have more followers on facebook, and 5x on twitter. So for one fifth of the amounts of fol lores on facebook versus twitter i get 20 to 30 times more interaction with 1 5 of the followers and so the emmel fa sis is on the Facebook Live video than periscope because i get so much interaction with the Facebook Live, and i cant do both at once. So that is the issue, and to their credit, they are making the changes moments, and to the board and adding the gifts while you were away and nfl, guy, they are going to say that is the turning point once the season starts in the fall . I guess so. Im not that big of a football fan, and i like to have my brain when i die. That is they is a big bet. Im not so sure i would make that the bet. That is certainly an american bet, right . Nfl is an american phenomenon. So it is kind of scary that, you know, the company is betting on a professional sport. That is, hmm. I think that, you know, the b bigger bet is utility. How does this really make people more creative, productive, more entertained, more informed and it has to with be a Bigger Picture than football. Yes. And guy, you have such a sharp eye for these thing, and to hear the skepticism in your voice is illustrative to some viewers i am sure. We love the guidance and we talked about before the print and good to get your take after it. Take care. Thank you. Guy kawasaki. And now, carl mentioned a drag on the dow which is now down by 48 point, and apple is dragging the nasdaq down for as it has been for several weeks at this point, and remember that you have inventories for the oil and the gas coming in a touch higher and we have been tracking tha that, and we have a fed meeting to be the determinant in how we go from here, and the averages are in the negative territory, and the nasdaq by more than 1 , and the yahoo shares are mixed after they added four new mem r members to the ceo including jeff smith, and Marissa Mayer is calling it a constructive resolution. And ebay shares are rallying after that companys revenue Beat Estimates and the company is seeing the first sales increase in the past five quarters, and you can see what the investors believe of that with the stock up 4. 5 . And mondelez is on the rise, and the chairman and the ceo is going to join us in an cnbc exclusive. And plus more on the apple miss, and we will get more from tim cook, and the rico mossberg. And plus speaking out about the plans of an ipo with uber in china. More on that when squawk returns. Five States Holding primaries and leading to a big win for are donald trump and Hillary Clinton. And john harwood with more. It was a great night nfor th frontrunners and donald trump swept all five and topping 60 in delaware and rhode island and over 50 in maryland, connecticut and pennsylvania, and he immediately declared himself the Presumptive Republican nominee, and turned his fire to Hillary Clinton thinking of the general election. Well shgs, i think they the card she has is the womans card and she has nothing else going, and frankly, if Hillary Clinton were a man, i dont think that she would get 5 of the vote. The only thing that shes got going is the womans card, and the beautiful thing is that women dont like her. Okay. And look at how well i did with the women tonight. And democratic voters liked her plenty well last night, and Hillary Clinton won 4 of the 5 and losing only rhode island to Bernie Sanders and she is pulling away from the democratic nomination, and she fired back at donald trump. Mr. Trump accused me of playing the quote woman card. [ audience boos ] well, if fighting for Womens Health care and paid family leave and equal pay is playing the woman card, then deal me in deal me in, Hillary Clintons very close to the democratic nomination now, and it does not appear that Bernie Sanders can catch her, and bernie trump has to get to 1237 the number ta you need for the firstballot nomination, and it is possible that the opponents could deny him that, and he has to do well in california which closes the primary voting in june and indiana is next week, but Donald Trumps chances at the moment look good, guys. Interesting to see what ted cruz has to say now as he is planning an announcement later today. And up next, mondelez ceo is coming up after the break on the back of better than expected earnings, and plus, another look at twitter, and the shares are falling hard, down more than 15 at the moment. And jack dorsey is speaking to cnbc exclusively when we come back. We built our factories here because of a huge natural resource. Not the land. The water. Or power sources. Its the people. American workers. They build worldclass products. And that builds communities. And a better future. For all of us. Because making something in america means so much, to so many. Weathertech. Proudly made in america. Snack maker mondelez is out beating the quarter. We go to sarah on the floor with more. And they are applauding the bert than expected sales behind or rios and ritz crackers, and with us to discuss the results is Irene Rosenfeld of mondelez. Good to have you with us. Good to be back. And the organic growth is rising more than 2 , and beter than we thought, and is this an Inflection Point where you dont have to worry about the rising costs . Yes, and we had to teal with the rising cost of cocoa and the volatile environment, and so we priced a number of the businesses understand iing full well that there would be short term dislocation in the top line, but as we exited last year, we started to see the recovery, and im very pleased with the start to the year. It is another strong quarter, and we are executing well. The metrics are ample evidence of that. And another bright spot for the investors has been and continues to be improving margins, and something that we have heard from Big Hedge Fund inv investors like bill ackman even though he trimmed the stake, and also, nelson who sits on your board, and what can we expect on the margins as you continue to reform your supply chain and open up new factories . Well, without a doubt, the margin is a critical part of the story, and we have a critical target this year of 15 to 16 margins up about 200 basis points, and well on track to do that with the 15. 1 margin we delivered this quarter, and good visibility to get to 15 to 18 margins by 2018, and lot of it is coming from the number of initiatives in terms of reducing the overhead costs, and investing in the supply chain around the world. And you mentioned that the currencies are a pressure for you, and you are uniquely exposed interfashlly with a majority of the sales coming from abroad and why didnt you boost the guidance for the year given the weak nness in the u. S dollar, or is it just too early to do that . Well, simply, 40 of the revenues come from the emerging markets, sarah, and it too early to make a move. Without a doubt, we see the currency is looking more favorable than we had thought, but we are seeing the significant volatility in markets like brazil and russia, and we just want to be prudent as we look at the outlook for the whole year. That is where i wanted to go, and markets like brazil and china and what are you seeing on the ground in terms of the consumer spending, are things worse