7onseptember 9th with a release date of september 23rd interesting couple of weeks. You had the interview in the Washington Post and they have been in the cross hairs of the Trump Campaign but thats not discouraging them from making another step forward into china. Yeah. I mean, they have to. They have to you know, they depend heavily on growth in china. Thats one of the big things cook has pushed and he has done, you know, he was sort of the mastermind of this turnaround in china over the last few years and that turnaround has sort of run aground in the last year or so. Its unclear if this is all apples fault. Some of their sales slow down is because of greater problems in china but the other thing is, they have been hit by competition from low cost phones and this has been what looked like their achilles heel for awhile and its unclear if they can change that around they need to make their phones more attractive at the price that they are. Theyre doing worse on a year over year basis than apple is. Part of apples sales decline is an inventory adjustment and maybe just in terms of the growth of the middle class thats all gone and more of a mature cycle going after middle class growth and the lte roll out. Isnt there the possibility that people ringing their hands like they did over samsung its just not going to happen . Thats possible. This year will be difficult because the 7 is not that different from the iphone 6 and 6s so it might be difficult to tell how sales react to this but over the next couple of years if we notice a turn around in china, smartphones generally but not with apple that will be a problem. This is a longterm play for them. This is like a huge part of the future of the company so i dont think we should look for immediate signs of any changes. Its been on a roll here. Up 13 since last quarter earnings. A glimmer of hope in the earnings. Also we learned that warren buffet and if thats wrong where does the growth come from . Or is it actually a value play . For the next few years we cant expect the growth that we saw in the past because the Smartphone Market around the world is at a steady state. Its saturated and new people will get smartphones but at a much lower pace than in the past. They are looking at services for growth and subscriptions and other things that people pay for. They have the wealthiest people in the world doing their product and it will be a new product sometime in the future a car or Something Like that. A collection of differ wearables but it wont be immediate with the phone i think. Thats over the kbroeth growth with the phone is over. Another story this morning, according to a report, sis coe will lay off 14,000 people. They are expected within the next few weeks. And letting some steam out of the kettle. Its a combination of both of those. A lot of the older Tech Companies are in. Hp, microsoft to a certain extent. They have to get new skills, enter new product categories. And that requires different types of people. This is a lot of people so i think not all of them are going to be replaced with people different skills. And these are the really difficult choices and you dont expect and and youre still showing profits so that you can reinvest in areas that you do think are going to grow but arent proven out yet and as you said its similar to the situation a lot of Different Companies are facing. Sis coe hasnt faced it in this crucial way before they have done little adjustments but now the feeling if youre going to do a big adjustment approximate youre going to avoid getting left behind. And the googles and facebooks dont have those Slower Growth areas. Yeah, i mean, this is the classic problem in the tech industry. You put a lot of money and what kind of service goes away. And might kill you. And if they make this transition well. And early and in a big way. Small incremental things along the way. You mentioned earlier we have seen this out of intel. And august 2014 the Company Versus 4,000 jobs. 1,300 in july 2012 and then 6500 in july 2011. We are talking about years and almost 20,000 job cuts at this company and its not alone to be fair but when does this cycle end . Havent these companies transiti transitioned yet . No, they havent it was built for how they were architected and theres a shift toward that. In those period of times they also acquired business and also rolled out of the server business and its done quite well and if youre a company in this position you want to do the cut in a big way and not have to keep cutting because theyre devastating impacts on morale if you end up on that lay off traed mill. More on this story tomorrow. Finally a great read. Your latest piece talks about the alternate universe that is instagram and snapchat as you say, an environment blessedly free of the news. Who would have thought thats what we would value now . Its very different than the facebook of 2008. What is interesting about instagram and snapchat, they released a new feature called stories last week which is similar to what snapchat had for awhile. What is interesting about these networks is because theyre based on your closer friends and pictures mostly, they are mostly free of the news and its a really wonderful experience. Were getting kind of with these networks back to the roots of like what people wanted in social networking in the first place. Many years ago before it was taken over by time lines and feeds and links to news articles. How much of this is political news fatigue . In other words we exit this cycle and how much is the year were in. Its probably the year were in and my demographic. I look at news all the time and these networks are a haich fven me. The people that use snapchat all the time probably have no interest in news and may not have this problem. Snapchat tried to offer a kind of news. Theres a lot of celebrity news. Theres a lot of stuff that might be interesting to younger people thats on there. They cultivated relationships with news companies. Its hard to find elsewhere so its a different kind of news environment and its actually really exciting. Its offering a different web and services that were used to. But snapchat is more and more into news like yours and mine. I dont know. I hear you more on instagram to an extent but they want that engagement and they know that news, maybe not political news but news is a way to get it. Im looking at snapchat now i see buzz feed and i see cnn. People, mtv, all kinds of things, especially about the olympics that theyre trying to push at at us. Its difficult to find much about donald trump or Hillary Clinton on there. Theres some about the election but a very different kind of news atmosphere. One of the things that happens with the network, the reason that people dont think of book as much for sharing personal stuff anymore is because its so big and its hard to know who is going to see it. That is sort of the curse of all of the networks and they have to try hard to keep it personal and small and intimate while growing at a huge pace and trying to get everyone in the world on them. Its tu. Follower count is not as important on some of these alternate sights and platforms. Always good to see you. Thank you so much. Good to be here. Thank you. Lets get pack to rio. Andrew ross sorkin joins us there live. Hey andrew. Hey, carl. We do have break news for you on what is a developing story now a brazilian judge ordering ryan lochte to stay in brazil as Police Continue to investigate what you might recall was what we thought a robbery that took place on saturday night and conflicting reports at the time. His mother saying he was held at gun point and then officials saying it didnt happen and then him coming back and saying it did happen. He talked to billy bush about it on the today show and now theres reports about the Police Questioning whether it happened at all. Lochte is already in the United States. So this is not going to apply to him but this is casting a little bit of a cloud over what took place over the weekend. The whole question about security here and it is a developing story as it continues of course. Separately we wanted to bring you business statistics here. Team usa merchandise is a hot seller. Rio 2016 sales are up 100 year to date compared to the london games in 2012. The top sellers, a nike hat, also a dual usa brazil pin and nike team usa logo tshirt. One is coming into question on social media. It is an official American Flag and works better because of the small sizes. Its not just the fans that like to be decked out in athletic gear. In todays ask the athlete we asked who has the best uniform. The best uniforms are basketball. Gymnastics, theyre pretty. Probably the swirms because i know how difficult the suits are to get on. Mine doesnt have the best uniforms. We have the worst uniforms. We look like were in bath robes. I like cycling. Indoor cycling and the helmet and all the uniform. Volleyball. Theyre sexy. But maybe too sexy. I would say yeah gymnastics. They have it sparkles. Water polo because we are almost naked. That nice isnt it . One of the athletes as you just saw there was ryan lochte and carl you were just here and saw the competition in person. Did you have a favorite eun forl you want to weigh in on . No, i like the way you worked your way around the Beach Volleyball discussion earlier this morning on squawk. Have we figured out why they wear that weird tape . Yes. We have. Its some kind of athletic thing that keeps the muscles together. Thats what i have been told but i dont know enough about it. I watch it on tv and im going to pick the gymnastics leotard. 1,200. Doesnt get prettier than that. Pretty cool. Well talk to you soon. Well bring you more news. Thanks. Meantime, edna is pushing back on claims that it threatened to quit obamacare if the government blocked a deal for the company. Bertha is live following this one for us. Thats right. They were responding to requests from the doj as part of the process that included a request to outline how a decision not to approve the deal might impact the Company Including its participation in the Affordable Care act. The move to with draw from the Obamacare Exchanges if not in retaliation for the doj blocking the deal that is what lead to the ultimate decision. The spokesperson saying that drove us to announce the narrowing of our Public Exchange presence for the 2017 plan year. Interestingly in that letter that was dated july 5th, they have outlined that if the deal didnt go through and they had to look at what their exposure was that they would probably cut back on their expansion. They had looked to expand to as many as 20 markets and only do ten markets in. Effect they decided only to do four. Back to you. Thank you so much. When we come back, a major shake up for Donald Trumps president ial campaign and target putting the blame on apple for weak sales in q2. Well take a closer look at those claims and then Steve Wozniak on the company thats the biggest disrupter right now when squawk alley continues in a moment. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Well talk about whether the acquisition and recently named new ceo whether that can boost the semiconductor stock. He is the ceo of cypress semiconductor. Thank you for having me. A new young ceo at a company that was run by an iconic guy for quite a period of time. Where do you see yourself and your generation taking this company at a time of a lot of volatility in semiconductors. Well, you said it right and i have cypress 3. 0 moving forward. Its an error of change and more connectivity into the new Growth Markets that were in automotive, industrial and you just called it. The iot business we just acquired. If youre going to remain independent and theres a lot of m a activity going on now. Whats the driving principle . What are you trying to put together thats going to keep you ahead of the pack . If you look at the history of cypress, we have a lot that im here to really unlock and deliver to our shareholders but also our customers so regardless of a lot of the m a activities we are looking at driving growth, driving value crew wags and the value and the Growth Markets we focussing on. And they have been focussing on growing and focussing on some markets growing faster than the general trend. You already mentioned the buzz word. Investors want to hear. How far away from actually seeing results of that and is there room for all in this space . Is there that much growth in this category. A lot of the companies are working on iot. You need to look at complimentary technologies that come into the play. And for example with every iot and every radio theres a microcontroller next to it. We provide that as well. And deliver value in solutions and in software so thats where the capability, really of iot is more of a capability that targets automotive. You know, cars are connected cars today and all are under the iot umbrella. Thats the growth thats going to fuel it. So a couple of quick questions. How is the expansion, integration going . Theres a number of cuts associated with that and roll for tj rogers in the future. Youre sort of talking about it or has that been decided . The merger is behind us. Im very happy to say we had a very good track record of closing and delivering on those we committed at the time of the merger and now were operating at a Single Company and just to touch on the acquisition thats also hit the ground running. We have taken it the day afterward. Very excited to do that. Tj and i are always in communication. Hes a technology expert. Hes highly interested in the technology. Cypress being a technology company. Him and i always have contact. All right. Just a few days in on the job. Thank you for joining us here on squawk alley. My pleasure. A lot of discussion about the whereabouts of ryan lochte and some of the usa team swimmers as we get now a statement from the rio court. Lets get back to Andrew Ross Sorkin in rio. Andrew. A lot of discussion against and the u. S. Swimmer gold winner saying he was held at gun point and lochte has already left the country and local Police Arrived at the Olympic Village and has to meet with ryan lochte and james feigen and collect their passports in order to secure further system from the athletes. We were not able to make the athletes available as additionally we do not make athletes travel plans public and cannot confirm their current location. Well continue to and he has already left the United States and a statement questioning what exactly he said and whether this took and security video showing some of these players late in the evening with their watches and wallets. Lots of questioning being asked. This is an on going story here and an important one because it raised all sort of questions about security in rio given a gold medal athlete being held at gun point. A hot of talk about it. We should also say he denied it originally and then came back and said it happened and now Police Suggesting we dont know if its true or not but were going to continue to follow this story as it progresses here and bring you the news as it happens, carl. Up next, a major shake up for Donald Trumps president ial campaign. What it means for the rest of the general election when we come back on squawk alley with the dow down 60 points. There are many things you dont want in industrial strength smash like an administrative assistant. Your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. We go to john in washington with more. Good morning, john. Good morning, carl. The last few weeks have not been kind to Donald Trumps campaign. He has fallen behind nationally and in the battleground states and appears to have decided he wants to spend the rest of the campaign doing things that make him feel good that is to say he resisted the coaching from his Campaign Chairman to adopt a different persona, a more disciplined persona. He said yesterday i dont want to change. I dont want to pivot. My campaign is me. The moves he made today underscore that. But hasnt run a president ial campaign has been brought on as the campaign manager. Her role is to travel with donald trump and the First Campaign manager said she makes donald trump feel calm when she is around. So thats one role she is going to play also she is going to do television interviews. The Top Executive at breitbart news. Its a far right News Organization that indulges in the same kind of rhetoric that donald trump has used about immigrants for example. Its been at war with the republican establishment. Most recently promoting the primary challenger to paul ryan t House Speaker and it adds up to whatever it means for the Trump Campaign and few strategists think theres any significant chance he could turn that around and catch hilary clin clinton. Its likely to accelerate the move from resources from the president ial campaign to republican donors trying to prop up house and Senate Candidates and hold their congressional majorities. The Trump Campaign is now so far off the rails i dont know anyone who could make a case for investing money in the president ial. Thats what were going to see fro