Compared to a year ago for the third time in a row. Apple did Beat Estimates on the top and the bottom lines, thanks to betterthanexpected iphone sales. Looking ahead, tim cook says apple is returning to growth, issued a bullish Holiday Outlook and commented on the companys product pipeline, including autos. Take a listen. Were always looking at new things, and the car space in general is an area that its clear that theres a lot of technologies that will either become available or will be able to revolutionize the car experience. So, its interesting from that point of view, but certainly nothing to announce today. All right, so, jason, is he being unfairly criticized by the do i have to wake up . Is it tim cook speaking again . Its like your uncle putting you to sleep every time. He says so much of nothing when he speaks. Listen, you want to talk about the cars or the phone first . Lets do the phone. I think we need to touch on the phone. Yeah, because the phone, obviously, we all know were reaching peak smartphone, and when you look at that chart of sales, its going up, up, up, and then flattening. Now we have to ask, is it going down like blackberry and aol and all of those other great products or just trend along . I believe its going to trend along. Its the best product made by apple. People who buy an iphone are not going to give it up, but theyre obviously taking longer to refresh them. And what are the new features on this phone that are absolutely compelling . You can take a hipster blurry photo, which nobody does, and you can take it in the shower with you. Okay, amazing. Not the reason to upgrade your phone. So i dont think we see growth there, but yum, yum when you look at the services revenue, thats the yum, yum in all of this, 25 billion a year now trailing and it went up Something Like 20 year on year. 24 . And if you look at netflix, spotify, uber and lyft, these are services businesses. Theyre getting good at services. They were terrible at services, and now theyre getting good at it and its going to be a highly profitable business, and i think it could double every four years. If it does, this could be something that could be very material. If youre not going to upgrade your phone, maybe youll pay 15 a month to us, maybe youll pay 200 a month for us in services. But morris, as a shareholder, as an investor, is it worth waiting two, four years to see what happens with services and whether or not that actually becomes a bigger cornerstone of apples overall earnings . Well, i think i feel the way jason does about services. I think were more optimistic than he is. The rate of growth in Service Revenue is phenomenal. The opportunity there is astounding. The demand for apps is accelerating. People are spending more money on apple play. And in fact, their largest market in that area now is china, where their phone penetration is still pretty low. So, if youre just looking at that as an aspect of a business, its a plus. We just look at this company as really reflecting the kind of philosophy we have as investors. We want to own great businesses, great businesses that are going to build value at an aboveaverage rate. And if we can find them at this kind of valuation, it makes it even more extraordinary. Its a cheap stock with does it matter im sorry i was just going to ask whether it matters to you, whether supply constraints matter to you or if thats just a great problem to have right now . Well, number one, its not the worst problem in the world to have. Everything matters to us because while we take a broad perspective, we look at things very intensively. And i think the thing that struck me about the quarter was had you gone back a month and looked at those numbers, you would not have believed they were going to generate them. And if you go to the iphone 7, which you might say is a step up from the 6, its really showing very strong demand. And i think that one of the things that you have to realize is that there are a lot of intensive phone users. The phone, this thing that i have in my pocket is probably the single most important device that people have around the world. And if they can get a better one, if they can afford a better one, they will get it. So, the 7 is a step up in power, its a step up in camera, its a step up in battery. And you start adding those things up, and it gives you strong demand. And theyre at the point one of the things they said yesterday was its hard to make a forecast because were selling as many as we can make. Thats of a highclass problem. Right. That sounds like a yumyum from morris. I dont know hes going to give us a yumyum, but it feels like a yumyum to me. Jon . Guys, i think what were seeing this quarter is the elimination of down side. Coming into this cycle, people were worried, the iphone 7 wont sell, theres not enough innovation. Samsung with all this stuff that theyre trying to throw into their higherend funds is going to blow apple out of the water. Does the services story really have legs . And we see answers for all of those. The iphone 7 is good enough to drive a strong upgrade cycle. Its a supply problem, not a demand problem. Samsung has shot itself in the foot at the very high end with the note 7 recall and pulling that off the market. So, the question now is where exactly is the up side over the next four quarters for apple . You can look out beyond and wonder about cars, and i think thats a waste of time. You can look at the mac announcement where we expect to see this new interface, this touch panel on the mac, bringing touch i. D. To the mac and tying that more into the ecosystem along the theme of os10 sierra or mac os sierra i think theyre calling it now. I think that needs to be the focus, how much more can apple squeeze profitwise out of this cycle and wheres the next, bigger upsurge in growth . Were already looking ahead to the next iphone due next year. Now that doesnt look like such a rough few quarters in between now and then, given that, again, elimination of downside, guys. Lets talk some cash management, guys. Obviously, the cash pile growing to 238 billion. If the cash horde was its own company, it would be the seventh largest in the s p, the 14th Largest Public Company in the world. Jason, is that being used efficiently, that number right there . Well, obviously, obviously not. I mean, there are so many Amazing Companies that you could put this to work with. Now, obviously, the tesla train has left the station. I dont think they can buy it. But if you look at the services sector, theyve been obsesses with services. They seem to be able to do that right. They did hardware well, theyre doing services well. Theyre terrible at software. Well get to that later. But if theyre good at services, that puts spotify, a ridesharing service, perhaps, or a netflix or a hulu, someone like that into the mix, right . And when you see at t looking at content, this makes it very interesting. Disneys looking at twitter. Theres some content play or services. And what i think they should do is they should take a book from amazon prime. How many people have apple music and icloud, and apple care . Probably nobody has all three. Why not put all three together . Yumyum, 10, 20 bucks a month, then they could build up. What if 10 , 20 of users do that . They have 100 Million People giving them 20 bucks a month for the services in one package. So you dont have to make a decision three, four times with your services pack. I get spotify, netflix, you know, or movies, music, backup, care for my product, you know, and cloud storage. This would be an amazing product for them to launch. Its an amazing proposition. Certainly the company has begun talking more about acquisitions in recent quarters. But morris, the problem with the cash is that so much of it is held abroad. If there was a deal to be had, would you want to see apple bring this back to the u. S. Or continue to use it where its domiciled . Okay, well, number one, if i look at it on a nearterm basis, they dont have to bring it back right now because their borrowing power is enormous. I mean, this is just a bulletproof Balance Sheet in a Company GeneratingFree Cash Flow in excess of 11 a share every year. And i say in excess of that number. So, you know, we have a lot of investments that we like, but this one i think is at this point very prototypical. There is tremendous amount of optionality here. The Balance Sheets optionality. I think it did touch on one thing, kayla, and thats the fact that after this election, we may or may not get Corporate Tax reform. If were fortunate enough to do so, that will just help a lot of American Companies like apple to put their money to work far more productively. Im not counting on it, but it sure would be a nice thing. Yeah, i mean, how obama hasnt solved this is just a complete failure of leadership. Because were getting penalized three times with the overseas money. One, we dont get the taxes. Two, we dont get to buy American Companies with it. Is there nothing to buy overseas . No not enough. Tell me a Great Company overseas spotify. Okay, now wheres the second . Okay, carl, i proved my point. And financial, maybe. Maybe, but all the companies are here. Lets bring that money home and create jobs here and lets buy the companies here. Its just absolutely a complete disaster that we cant figure out a way to come up with a number thats okay with tim and google to bring this money home. Failure of leadership. Certainly repatriation is going to be a much louder discussion in the coming weeks after this election is done. Morris, jason, great to have you two guys. Jon, were going to talk to you in a few minutes. Thanks so much. My pleasure. Thanks, carl. Meanwhile, we want to check in on the markets. The dow has gone positive just moments ago. The s p has as well. Its up about just one point. The dow is up about 53. The nasdaqs still negative, of course, apple weighing there. Were watching oil, which had come back considerably after losing about 2 earlier this week. And so, were keeping an eye on oil as well, especially after we got inventories. And shares of pandora under pressure. The Music Streaming Service disappointing on the top and the bottom lines for the most recent quarter, also issuing a fullyear forecast below estimates. Stock down 8 . And watching shares of alphabet as well. The companys google Fiber Division pulling the plug on expansion plans. Alphabet access ceo craig barrett, who overseas goes goog fiber will be stepping down. When we return, shares of mondelez getting a bump. Check out the action. Company chairman and ceo Irene Rosenfeld will be joining us next on a first on cnbc interview. Interit with paypal, google and more. Brad smiths going to join the show. Then, hes been called the one to watch when it comes to a twitter deal. Bret taylor coming up in just under 20 minutes. The Conference Call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Mondelez shares moving higher after raising profits forecasts for the rest of the year. Joining us on the phone, a first on cnbc interview, mondelez chairman and ceo Irene Rosenfeld. Irene, good to have you with us. Good morning. Good morning, carl. Everyones paying attention to your view on acorrie ps currency. Whats driving that revised view and how much of it is operating margin . Well, a lot of it is operating margin. We had another quarter of very solid execution, despite the that is correct that it continues to be a pretty challenging environment out there. And so, the key drivers are continued Margin Expansion with improving vol mix, and all of that allowed us to deliver another quarter of doubledigit earnings growth. Were up about 28 year to date and were up 42 in the quarter. So, were very pleased with the performance, particularly in this very challenging environment. Yeah, you did say challenging macro. Top line not yet where you want it to be. Whats a reasonable expectation in the year ahead, given your space . Well, as i said on the call, carl, were not expecting change in the underlying macro environment, and so were focused on controlling what we can our cost structure, our investments, our innovation pipeline, and thats whats allowing us to continue to deliver very Solid Earnings growth, even in these challenging times. Looking at organic net revenue. You talk about emerging markets up, too. But then power brands up 2. 5. Can you tell us what that means and whether that continues . Yeah, we have a set of brands that we call our power brands. They represent about 70 of our revenue. And these are the brands theyre the brands, the wellknown brands that you would know oreo, milka, cadbury, tride trident. These are the brands that are typically growing faster than our average, and they have higher margins. And so, as we invest behind these brands, we not only help our top line, but we help our bottom line. We grew our power brands 2. 5 , as you said, in the quarter. Were up over 3 year to date, in excess of our category growth. So, were finding good returns as we continue to fuel these brands, and thats a key driver of the improvement that were seeing in the volume and the mix underneath our revenue growth. It sure feels like youre getting a lot more interested in chocolate, not just entering the category in china, but premium chocolates here in the u. S. How far does that go . Should hershey be worried . Well, as we said last month, we saw no viable path forward in our conversations with hershey, and so we decided to put our pencils down. So, yes, chocolate is a very attractive category. We think on an organic basis we have a number of assets that we believe can yield incremental growth. We Just Launched chocolate in china. Its the second largest economy in the world with very low percapita consumption, so we think theres a real opportunity there. And here in the u. S. , which is the largest Chocolate Market in the world, we have very strong trademarks in the form of oreo and green and blacks that will enable us to create a sizable business here in the u. S. Finally, we mentioned currency at the top here. Its always hard to get companies to be clear on where they see forex going, but does the dollar break out of this range here or not, do you think . Were not counting on it, carl, again, and frankly, our forecast coming out of the Second Quarter is pretty much our forecast as we come out of the third quarter. Once again, its put some pressure on us to price, particularly in a number of the emerging markets, but we think its quite manageable within our overall algorithm. Congratulations on that quarter, irene. Its good to have you on the phone. Thanks for joining us first. Thank you. Irene rosenfeld, chairman and ceo of mondelez. And still to come on squawk alley, a big announcement from intuit, inking relationships with apple, google, American Express and others. Why its good news for Small Business. Thats up next. And then, alphabets brain drain. Why changing its name may not have been enough to keep top talent around. Bret taylor weighs in. You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. 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Intuit announcing Strategic Partnerships with apple, google, paypal and more. Joining us now from the quickbooks connect conference in san jose is the chairman and ceo of intuit, brad smith. Brad, great to see you. Hi, kayla. Thanks for having me this morning. Walk us through how these partnerships came together, how you expect them to progress and how intuit will monetize them. Well, several years ago, intuit made the move from a north american desk Top Software Company to a clouddriven product and platform co