Here to welcome fans inside the store. The line here, i can tell you guys, does stretch down the block. The new features and functions, fans excited about obviously this is a faster phone, a phone with a display thats about 25 brighter, and that new camera, at least according to fans weve been talking to online, that is the feature that has them excited. We talk about this phone obviously initially, expectations did seem relatively tempered, but then we did get those better than expected preorder numbers and, yes, we know the carriers were offering aggressive promotions, but financial Analysts Covering the company did still see the data points as encouraging. Now the question is how many people will upgrade and can the upgrades jumpstart the iphone franchise . We know thats a franchise which has seen two straight quarters of sales declines. The great bull bear debate. Bears like Collin Gilles are not competent. They think these changes are too incremental. On the other hand, you have guys like piper gene munster. Hell argue theres just a large pool of people waiting to upgrade. Munster thinks theres about 275 million active phones older than a 6, and thats why he thinks a lot of people will upgrade even if the changes are incremental. Thats the debate on the street. Though we have seen, obviously, apple have that pop touching that ninemonth high this week. Back to you. Josh, thanks for that. Obviously, the apple marketing machine in full effect. Well be looking at scenes like this in new york and all around the world today. Lets get over to d. C. Kara swisher joins us as she does on fridays. Good morning, kara. How you doing . I was just thinking without figures this opening weekend, just having to go on what you see, its sort of like flying without instruments, isnt it . Yeah. Its doing what . Im sorry. I didnt hear you. In terms of watching apple, judging how well this phone is going to do. Yeah. It looks like people are excited about it. There are lines. Of course youre in palo alto, which is sort of the home of all the geeks so theyre going to want to upgrade. I think the question is how many people will upgrade, how many people will want to switch their phones if theyre in midprocess with their upgrade cycle and things like that. Obviously its a better phone. Its not as walt has said many times, they didnt break the bank here in terms of changing the entire the look and feel of it, which i was hoping for and i think he was also. But there are some nice things. You can drop it in the toilet, better battery life, for example. Im not worried about the toilet so im not upgrading. Most of i 7 and pluses are almost sold out, great marketing for the company, but how would you judge and grade the companys ability to gauge demand for a new product like this and then to meet that demand . I dont know. I think it will be interesting. Obviously, the stock is way up, people feel good about it. I think there was a lot of disappointment after the launch event. I think a lot of people felt, eh, i think walt called it aggressively fine. And so i think the question is will people get the new watches, are there enough people that want that gps thing, are there enough people that were in the 5s and want to come to 7s. But i think a lot of people and theyve been benefitting from whats going on at samsung i think a little bit. And so i think theres an opportunity here to do well. The question is when they do the next cycle of phones, will it be a drastic change. This is most of the attention is around this headphone jack situation. Its not a crisis as most people are making it out to be. The question is whether you want that phone or not. Theyll probably do very well, especially because there are so many 5s that people want to get to the 7. Kara, the unknown question to me, kind of the undercover part of the story, is the carriers more aggressive promotions versus the last cycle, which i think are accounting for a lot of them. What do you think is the cause of that . Sprint, for example, is saying get a 32 gigabyte iphone 7, which is the low end, for free can with an eligible tradein and everything from the iphone 6 up including some samsung phones count as a tradein that you can get for that. That was the sort of thing that carriers had stopped doing to protect their profits. Theyre pretty much saturated with smartphones now. Whats their incentive to try to get people to get the 7 . Thats what theyre doing. Thats exactly what it is. If you have a phone that everybody really wants, you dont have to discount and thats discounting, simple discounting. They want people to take this phone. You know, i think most people a lot of people are going to go higher that the more point is theres more storage and things like that. Its still an amazing deal for people if they want to get a great phone for cheap. And so, you know, its great that consumers can get it in their hands but then its a great phone for cheap. And so, you know, discounting is a signal should be a signal to everybody that some of the carriers are worried if people are going to do these upgrade cycles so, well see as it moves through. Its going to probably be a little longer process, but its nice to go to those events and the people screaming and tim cook doing selfies with people. But, again, this is an interim phone. I dont know how else to put it. Kind of an interim phone, but its not theyre having a party in palo alto. For being a place holder, its resulted in a nice 12 gain for the week. Decent. This morning i woke up, as an aside, speaking of phones and email and the like, theres a piece in the New York Times about Television Anchors and politicians going home and deleting their Gmail Account because of the lesson that colin powell has learned in a tough way this week. Would you do that . No. I say things mostly out in public. Im sure ive had emails that are terrible. But i think its interesting a lot of these politicians, one of them at the bottom of the story was funny, i cant remember which senator, but he goes, the russians already have my email so whats the point . So im not going to delete it. Its an interesting question. We communicate on these twices in a very unfettered way. I think especially because colin powell is sort of seen as this elegant, stoic man and then in emails hes kind of gossipy, hes kind of mean, hes funnelny in some cases. And so i think thats you know, thats the dichotomy of that you express yourself in these places and think that its private and its not. Text, the same thing. Theres all kinds of areas that youre just not safe. Good thing we have encrypted messaging xempt its a bad thing or a good thing. I use telegram a lot for especially private stuff that im doing. Soond i think people should begin obviously you want twofactor authentication, you want to be as protected as possible. The fact of the matter is these are very sophisticated hackers and they can get into a lot of stuff as difficult as it may be. P careful what you say. If you dont want to see it on television with john fortt talking about it, you probably shouldnt type it. I dont think ive written anything about you, john, but i apologize in advance if i have. Everybody must be talking about me. That john fortt. But i like carl. Carl, nothing mean about you. We all like carl. Who doesnt like carl . Like, come on. Kara, thanks. See you soon. Kara swisher joining us from washington, d. C. , today. Youre looking now at a live shot of republican president ial nominee donald trump in washington promising a major statement at this campaign event. Were going to monitor this and let you know if any headlines cross. He has already started out talking about his new hotel in washington, which is going to get some attention today, as well. Yeah. Well keep our eye on that. Meanwhile, were also watching shares of amazon getting a boost this morning. Analysts at Rbc Capital Markets upgrading the price on the stock from 840 a share to a round 1,000 there. Tied for the second highest target on the stock, this as the company prepares for sundays emmy awards going in with 16 total nominations. The analyst who made that call, mark mahay knee. Great to see you. Youve been paying attention to the pillars making up the fly wheel at amazon and alexis seems to be something gaining momentum. Why do you think it has such a big potential here . Okay. So alexa, what we mean by that are these voiceactivated devices they have in the market. Theres the echo, tap, the echo the most popular one, about 180, a small device. No screen, you just interact with it through voice and you can actually ask it to place orders for you on amazon. Based on our survey work, its not got only about 33 Brand Awareness against amazon customers so less amongst the general populace, but thats pretty general given its been in market for about a year. About 7 Million Units shipped so far. A data point in the survey said about a quarter of alexa device owners already are using it to more frequently purchase products from amazon. So this has the ability to be a prime a fly wheel driver for amazons Retail Business in a way that prime in the past was as well. It gets you to purchase more products. Your share of wallet and purse with amazon will continue to expand. This seems like theyve got a hit on their hands in the early stages. Dont you think the fact that, yes, 33 of customers are aware of it, but only 6 have rushed out and bought it, means that maybe its not a musthave for people . Yes, youre absolutely right. Its not yet a musthave. Could bit over time . Thats the question. The broader point of our survey report is were seeing prime adoption ramp pretty materially now. When we first started tracking this three years ago it was about a quarter of amazon customers were prime subscribers. Now its about 50 . Alexa comes in and its just another factor. Amazon doesnt need any one factor, but it has a series of factors building together whether its more thirdparty vendors on the marketplace, more products including groceries, now whether its more devices that are tied into amazon and theyre making alexa functionality common across multiple different devices. You now have 3,000 developer apps as part of the ecosystem, if you will, for aelectric San Jose Sharks and thats going to keep building like theres a new ecosystem thats being built across technology. Dont tell anybody this, but it is happening, but its alexa and it doesnt get that much appreciation in amazon stock but it will. Lets talk twitter. Up around 4 this morning, which is a pretty good amount for twitter, above 19 bucks a share at this moment. And this the morning after the nfl debut, which i was surprised. I was kind of poohpoohing it yesterday, they were going to have interface difficulty. But it looked great within the app last night, though i found it a little difficult to find inside the app last night. What are your thoughts around what twitter might have proven last night and where it needs to go from here . John, i watched some of that game on twitter last night, and it was an interesting immersive experience, the ability to watch the bills jets game live and watch the tweets below it. It kind of added to the entertainment value. Now, i just dont know how many more people are really going to want to do this and whether it takes that 66 million roughly u. S. Monthly average user base for twitter and materially increases it or not. I think thats still a question mark. Ill be skeptical on that. We are skeptical on the stock. Were not buyers of it. That First Experience was better than i thought it was going to be. The nfl is not a fat enough train to hitch your wagon too, what is . What would move users then . Its an open question. Twitter was incorrectly pitched as a broad platform. Theres nothing nearly as useful as social about twitter as there is about other things like an instagram, like a snapchat, and like a facebook, all of which are materially bigger than twitter. This is really kind of a pr News Wire Service on the internet. They need to change the user interface, change the way people think about twitter, and maybe the nfl will do that, but then id also raise the open question of do people want to really use twitter for Live Streaming of events . The whole point of twitter and a lot of the internet was to make things on demand, where you take out the time dimension of the service. I dont know. Its an open question. I wish i had a great answer to how they double or triple their mau base. They obviously dont have it because its flat lined for six quarters in a row. Maybe it turns the corner. I doubt it, though. One step perhaps in that direction, mark. Well see. Appreciate your time. Have a good weekend. Thank you. Mark mahaney from rbc. Intel shares rallying after the Company Raised its revenue forecast for the third quarter. The company now expects 15. 6 billion in revenue plus or minus 300 million, up from a previous midpoint of 14. 9 million. Intel pointing to science of improving pc demand, some channel fill in. Meanwhile, oracle shares slipping after missing on both the top and bottom lines last night. The ceo said currency moves after the surprise brexit vote were a major culprit. Remember, oracle reports a little earlier than others before brexit. And execs were actually happy with the quarter overall, she said. Now, guidance for the Cloud Business came up two points, but the overall revenue guidance that oracle gave was slightly lower than street wanted and that was the main factor pulling the stock down last night during the call. When we come back, a lot more to come. Regulators officially recalling Samsungs Galaxy note 7 after warnings over battery fires. Man who ordered the recall, the head of the Consumer Product safety commission, will join us live. Plus the future of daily fantasy after a long legal battle across the country. Well talk to the ceo of fand l fanduel. And ken burns on why he has an historical obligation in his mind to speak out against donald trump. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. But your time is over. Had a good long run. Its time for something new, something simple. Grown right here in california with absolutely no antibiotics ever. Food were comfortable eating, making, serving. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. The u. S. Consumer Product Safety Commission issuing an pentagon official recall of the Samsung Galaxy note 7. Join us is the chairman of the cpsc, elliott kay. Thanks for being with us. Good morning. Thanks for having me. Im wondering in the age of social media where news spreads so quickly, did samsung do the right thing in this case . I mean, back in july, you called a hover board recall of a half a Million Units huge. This is twice that size. We were hearing mixed things from samsung initially about the scope of the issue here. They were offer ing ing to do tradeins before you announced the recall. Is this how things go now . It shouldnt be. Thats not the way rerecommend it and as this case proved thats certainly not ideal. What is the ideal . What should have happened . What should have happened is the Company Comes to us right away and we can quickly turn around once we get the information we need the proper recall. Its much better for the companies because they get a smoother process and its better for consumers because they get an independent verification that the remedy is the right one. Whats your understanding why samsung didnt do that . Had they not identified the cause of the problem . Does the company need to know exactly what the source of the issue is before they come to the cpsc . No. The law is a very low threshold. Once they identify any type of problem, they are not supposed to wait and investigate it. They are supposed to come to us right away and we can work with them both on the investigation and getting the word out. How much sooner ideally would samsung have come yo to you . We were seeing reports on social media and even out of samsung about what consumers should do before the cpsc had said anything. I think it was almost a week ago we were first seeing that word out of samsung itself. Yeah. For a recall to work properly, we need to know before the company is alerting the public, and obviously that did not happen in this case. Thankfully, were in a place now we have a good remedy in place whether its the refund or the replacement. Can you think of historical precedents to this one in terms of the degree of danger, the size of the recall, and the number of units that had already been sold . Where can we go to history for something on that . I think when youre talking about batteries, you get into these arias, and hover boards is a good example. I think that was a perfect one. And my sense is that were probably going to end up seeing more of this and thats certainly a concern of mine. Why is that . Why do you think well see more . I just think theres a lot of Competitive Pressures that are understandable to try to turn these products out. Consumer demand drives smaller, thinner devices, and manufacturers are under a lot of pressure to meet those specs on a very tight time line. Of course this isnt just a samsung problem. Weve mentioned several incidents with the hover boards and also hp had an issue with laptops at an earlier date. Im just wondering if there comes a point where the cpsc does something more broadly about lithium batteries, because they are present in so many Consumer Products. Yeah, and this is one of those things that keeps me up at night. We dont have the broad Regulatory Authority to intervene earlier, but we are going to take a look at with our authorities what we can do to try to bring all the relevant parties together to have a more forwardthinking view. In the Manufacturing Community in particular about how to address these hazards. I dont think this is the end of it, thats for sure. Are you thinking of dell, kayla, that had the issue with laptop batteries . I might be. Okay. In a perfect