And carl quiis live at the Performing Arts Center in california, just 1. 3 miles from apple. You know, carl, there is a real historical sort of echo that theyre having this event at the flint center, a place they havent used for Product Launches in quite sometime but some of the most important ones actually were unveiled. Absolutely true, tyler. This is where steve jobs unveiled the mac in 1984. 30 years ago. Its been four years since apple introduced a completely new product category and four years since this is the first new category for tim cook, of course, who succeeded steve jobs as ceo. This is the worlds biggest tech company, guys. Brought us the modern graphic based pc, modern smartphone, the tablet, the music player. So over the next hour, we are going do get some specifics finally after a lot of speculation about a bigger phone, about a watch, about a payments product. About a Health Product and even though the stock traditionally does not act well on launch days, some bulls have argued in the past few weeks that this cycle might be different given the fact that apple said their pipeline is stronger than its been in 25 years. You know, carl, a lot of people down playing the payment device. But i dont know. That might be a little sleeper out there because when you look at the access that apple has to all of those accounts, all of those credit cards, all those debit cards, i mean, 800 million was one estimate thrown out. Thats a huge number. 800 million itunes accounts, sue. You can imagine all those retailers to love to make it easy to use a watch to buy a physical product at a point of sale. Of course, the hurdle for apple especially after that celebrity hack is convincing not just the retailers but the consumers you can trust our network. You can trust us even though were charging a certain piece of that transaction. Were wondering whether tim cook might make some comments about security today even though he did in the wake of that celebrity hack. Yeah. But certainly the payoff would not be immediate but over time the bulls are arguing it could be very, very substantial. If you can own that kind of access to transactions, it really could be a real stream of capital down the road. But as you point out, not only did apple have its Security Issues ten days or so or ago, but just in the past 24 hours we hear about what may be the biggest breach of Payment Security that weve seen so far at home depot so consumers who are just by nature a little worried about giving too much information to retailers or other providers, this comes at a delicate time for them. Do we have any time line on how quickly this Payment System is that thats whats announced could roll out . Not really. I mean, i think thats probably why the iwatch has been such an uncertain factor going into today. Right . The sense is that were not going to get a physical product for sale until next year, probably earlier in the Development Cycle and want a chance to know the product. Start building some apps for it. Get the retail environment on board, get the consumer on board. Think back to before the ipod. Right . Before the ipod came out, they had to convince the Music Industry to sell songs for 99 cents. That was a major negotiation between apple and an entire business. Theyre hoping i think to recreate that in health, retail and then launch the hardware just as they did all those years ago. Yeah. I think you are absolutely right on that, carl. All right. Well check back with you. Hes going to bring us the breaking news and headlines of cupertino, california. And tim cook is apparently now going on stage. So we should get some headlines very quickly. And throughout the hour, as we show you whats happening in cupertino, we want you to weigh in. Go online throughout the whole hour, the poll is open for the entire show. Our question today is, whats your move based on todays apple event . Go to cnbc. Com vote. Joining us now is hugh johnson, chairman and cio of johnson add vidsers. Good to see you again, hugh. Nice to be with you, sue. You like apple at this juncture. What are your expectations . What do you really need to see from the company . I dont need to see a whole lot. What i need to see is a continuation of what apples so good at and thats, one, a product simple to design. The design is simple. Easy to use. I dont think theyre going to depart from what made them great and thats basically it. Now, its going to be obviously a larger iphone. Were probably going to be seeing something thats wearable. All of thats going to be in the cards. But again, easy to use and i doubt seriously if theyre going to depart from that basic ingredient or characteristic of just about everything apple does and got them so many loyal followers or buyers. All right. Hugh, i know one of the thing that is you do watch at least after reading one of the notes i believe you do and that is the question of the margins that apple can deliver against its revenue stream. That is really important to you and important particularly in determining the price youd be willing to pay and the returns on the stock you might expect. Absolutely, tyler. What were assuming is that were going to see Revenue Growth of 4 to 5 and the real issue is what will happen to margins . We have margins, Profit Margins deteriorating just a little bit. And if we do that, if we put that through our number crunching sort to speak, we get a price of about 106. If we assume stable margins, and i think you can assume stable margins, talking about a price tag of about 122. I think not only we talk about stable margins, but when we talk about the Payment System, and the shift from just hardware to software, we could be talking about Revenue Generation and higher margins but lets leave that out. Lets just say stable margins, 122 per share. You know, hugh, if indeed we get an overall Market Correction which you said you would not be surprised to see in october or september, would you add to the apple position . Apple would be dragged down with the rest of the market most likely, perhaps less because technology is in favor right now, but would you add to positions on any weakness . Most likely i would, sue. It is really a question of whether i want to increase my overall asset allocation. Apple is at the top of the list. I have a 2 position now. I would like to increase to 3 . Apple is 3 of the market and maybe higher so thats probably where i would look. All right, hugh. We are going to see you in a little bit and let you go for right now. Appreciate it. Okay. Power lunchs coverage of apple continues now. Joining me here at post9 is Todd Rosenbluth and ivan wineseth. Welcome, guys. Nice to have you here. Thank you. Ivan, you have a strong buy since october of 2012. You talked about underlying fundamentals being good across the product line almost. So what will your expectations on apple and i guess what would make you change that strong buy if anything . I want to see things that change the breadth and width of the supply rhine a. Iwatch or body function, Health Monitor and interactive device. Those are all positive and continue to expand the apple ecosystem. You know, todd, you made a very interesting point in the notes that you can debate whether the stock is fairly valued, overvalued, undervalued, whatever, but it is so broadly owned and that impresses you. Yeah. It was mentioned earlier by carl. Its actually the largest growth stock. Were getting our first look at the new iphone apparently and well have it for you in a second. One down. Continue your thought. Yes. It is a growth stock but whats also interesting about it is paying dividends, almost 2 . Widely held in dividend portfolios and vanguard and now a value stock and in 20 of the value stocks we at s p capital iq cover. You may not realize you have exposure to apple in the growth, the value, the dividend and even various other strategies, as well. How important, ivan, is this event for tim cook himself . I mean, it is four years since we have seen any new Innovative Products from apple and theres been some worry about whether the company can still innovate the way it did under steve jobs and the stock turned negative right now. This is very important. 2013 was a very bad year for the stock. 2014 is a great year. So if he had a back to back bad year, that would have been very bad. They have to do continue to show they can innovate with new products so if they release a new type of wearable like an iwatch, this will be the first new product category to oversee the launch of. Do you have confidence in mr. Cook and guiding the company . Overall, yes. I would like to see him do more with the cash. The company does not need the excess cash balance he has. They did more and they need to accelerate that. What about acquisitions . Would you like to see acquisitions . Yes and no. Depending on the type. You want to see acquisitions that fit in expanding the ecosystem and not see companies waste their cash on bad acquisitions. Todd . It is sitting on an enormous amount of cash. So i mentioned dividends and why its in the number of dividend portfolios is expectations to return more money to shareholders increasing the dividend and so its youre going to see it in various ways. We have a hold recommendation on the stock. 103 target price. You will find it in portfolios but we are not adding to it heading into this event. Depending on what they unveil, would that move to you change your hold rating or more than an event to do that . More than an event. We do things from a 12month time horizon. Wed have to revise that target higher based on what comes out and seeing what comes out specifically. Jeff of double line capital was on our show earlier, actually, he was on earlier this morning, and he had some interesting comments on apple. So lets listen to him and see whether or not you agree with him. Go ahead. I think apple looks exactly like it did before. Overbelieved. They have tremendous guidance. People love it. Innovation has been what i predicted that sishsly in 2012. Tootie frootie colors. Doing fairly well and bullish about the new rollout but i think thats priced into the stock. I think i dont think its i would sell it. Interesting, ivan, right . Very interesting. He wouldnt buy it but sell it and he thinks a lot of this event is priced into the stock. I dont know what the right thing to do is around the event. Usually the stock sells off after the event. Ap ple is a cheap stock. The point of 3 of the entire stock market, yet its underowned in indexes and portfolio managers, so the stock is cheap. Its a Key Technology stock. The ecosystem extends to suppliers and other technologies, an enabler of Cost Reduction and communication. So it has such a huge halo and umbrella. Carl . Sue, we have gotten two new phones out of the Worlds Largest tech companies. The iphone 6 and the iphone 6 plus. 4. 7 inches and 5. 5 inches. Thats pretty much we were looking for and the street started calling that larger display the iphone 6 pro. The iphone 6 l. Looks like apples going with the term 6 plus. A next generation retina hd display. The thinnish phone apple has made. 6. 9 millimeters. The stock up 2 and Traditional Apple fashion, fallen back to just about flat. Heres sound of tim cook speaking just a few moments ago. And i couldnt be more excited and more proud to show it to you now. Thats chapter 1, guys, in the presentation thats going to go on and bring us some larger news down the road. Some people have reported having some problems streaming this event. Sue and ty, well see what that means later on. For the time being, between the iphone 6 and the iphone 6 plus, we are going to need bigger pockets. We are. And it wont fit in my evening bag as nicely which is a problem. Let me turn to the guests very quickly if i could. Tyler, go ahead. I was going to ask carl if we have any information on what the pricing will be for these phones. I have seen the 399 price cross but i have no context for that. Im sure theyll get into pricing soon. Phil shiller is now speaking after cook. Well hear about that in a few moments i think. I was going to join the conversation, talk to the guests. Ivan, you got part of what you want. But i wonder, given the fact that theyre a little late to the bigger screen following samsung, is that enough . Is the screen big enough or does samsung still have that market locked up . They have the market, the bigger screen locked up in the note line which is much bigger than the standard galaxy line. Right. So it gives you a choice. You cant go too big because then it does become hard to make it fit in your pocket or your purse. Too small you cant enjoy all the functionality that the phone gives you. Todd . This is a shortterm aspect. We have to see the longer aspect of how it helps the margins. We talked about pricing, what to do with the cash. Mentioned earlier, it is underowned in the growth portfol portfolios. We could see apple move higher. Well keep you right here at post 9 and talk to you throughout the hour. Ty . We know the dimensions. We know its thin. We know its big. We dont know whether what some of the other enhancements are as of this moment. For example, what have they done to improve the camera quality where another area where some of the other rivals have leapfrogged apple . Check out the incredible stats of the iphone launch sales, three days after each launch. The street expecting 6. 5 million unit sales. Thats what they expect as we head out, a check on apple shares. Tim cook has been ceo since august 24th, 2011. More than three years now. The stock is up 85 since then postsplit. As we head out, take a look at mcdonalds. Those shares going the other way. 52week low entering correction territory after posting weaker than expected drop in august sales. Third worst performing stock this year in the dow down 5. 4 . Well be back with more right after this. Future. Thank you for being my hero and my dad. Military families are uniquely thankful for many things, the legacy of usaa Auto Insurance could be one of them. If youre a current or former military member or their family, get an Auto Insurance quote and see why 92 of our members plan to stay for life. Welcome back. Shares of electronic arts, the stock is currently down about 1. 25 . Theyll remove ray rice from the video game in the wake of the video showing the runningback punching his nowwife in an elevator. Rice was cut and suspended by the nfl ea will remove rice by friday. Earlier, nike said it was severing the ties with rice, as well. You can see nike shares off the session lows down by well call it 1 1th of a percent. More details of the iphone. Lets go back out to cupertino. Back over to you. Theyre coming out. Apple likes to throw out metrics of the product and 84 times faster than the original iphone. Theyve thrown out as usual some metrics on the iphone store up to 1. 3 million and then metrics on the chip. 25 faster. 50 times the original iphone chip. Also 50 more Energy Efficient than the a there is 7, tyler. Thats a discussion of battery life. Back to you. Okay. Lets bring in tech writer and friend Natalie Morris and dan ackerman. Natalie, faster chip, faster speeds and also as you point out, an upgrade to the ios operating system that will now make it more sympatico with i d ipads, right . They had to redo this because they were opening the screen up. The question is, is it eating into the tablet market now. It will be like the ios for the mini. When you turn it, it will be a completely different experience and make for that landscape to be used most efficiently. So, yeah, were kind of putting it theres something smackdown of the mini and i phone. Lets turn to you. From what you have heard about these two new phones, do you think that they will cause people to go out and buy . I think thats the thing thats happened to apple. People saw the big screen phones and they said, oh, im going to get one of these but said if apple has a bigger screened phone, maybe ill switch back. If the contract is up this fall and ready to go back with a samsung year for a year or two. Does anybody, natalie, do a Product Launch better than apple . You think about the way jobs did it. It was brilliant theater and these were transformative business moments, as well. Does this how does this rank there for you . Apple is someone we judge on performance and the live stream on the web is down for about 15 minutes and when it did start going, it went back to the beginning and then it put some voiceover translation into an asian language that i dont speak and not sure chinese or cann cantonese. Thats a big flub and overshadowing what theyre announcing. Dan, i asked you, you know, we dont know yet about pricing of these phones and how quickly they will be available but, boy, we have people already sitting outside some of the stores, the anticipation is huge for that. People are already lined up. Thats phony. People like to get in line to be on tv or their own products. Apple likes to go their own way and pricing they follow the conventional wisdom and that says like a 4. 7 or 5inch phone 200 on contract. The bigger phone is 200 on contract. And we give them a ton of credit. Everything leaked ahead of time. I want to ask both thats true. I think theres been more leakage around the edges here than has traditionally been the case with apple products. Dan, are you an apple product user . I think of most as platform agnostic. Right now im using an Android Phone but i have been an iphone user in the fact and 5. 5 inches i may go back. Natalie . I like the bigger phone and using a bigger nokia for a while and i have a purse so i dont have to worry about it fitting in the skinny jeans. I have space. I think men want to put it on the person to see if it feels comfortable. Plenty of Android Users feel that way. I have a larger phone, android, and i have no problem in the suit jacket, jeans, whatever. You know . But thats too much information for everybody. All right. Natalie, dan, stick around. We will. Sue, down to you. All right. Ty, given what we have just laid out, the smartphone wars get hotter. Check out the major players. Apple with 41 of the u. S. Market. Rival samsung with 27 . As for apple stock, since announcing the stock split and earnings in april, the stock is up 30 . Check out this live video from las vegas. Thats the ctia conference, a wireless show in nevada. Theyre all glued to the apple event and so are we. This special edition of power lunch with the dow down 76 points is back in 2. And a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. I wish. Please, please, please, please, please. [ male announcer ] the wish we wish above all. Is health. So we quit selling cigarettes in our cvs pharmacies. Expanded minuteclinic, for walkin medical care. And created programs that encourage people to take their medications regularly. Introducing cvs health. A new purpose. A new promise. To help all those wishes come true. Cvs health. Because health is everything. All right. The iphone 6 and the iphone 6 plus official here in cupertino as apple makes the unveil underwaunde underway. Theyre arguing on the 6 plus, the larger 5. 5inch phone just announced, 80 hours of audio, 14 hours of video, 12 hours of 3g browsing and 24 hours of 3g talk. Right now, inside the flint center, ty, showing off gaming capabilities. Also mentioning something called a barometer to measure elevation on your phone. So that is an enhancement there of Battery Power and battery life. A key metric there. The coverage of apple continues and jon forte at the gathering in las vegas and contributors max chafkin. Welcome to both of you. Jon, from what you have heard so far, what do you think . I think this is the good part now. The m8 processor and this is going to allow you to measure not just how many steps youve taken but the elevation, between when youre walking and cycling and also now theyre starting to get into the camera, enhancements that they have made there. Focus pixels. Something theyre talking about that should make the camera quality better. They tend not to focus on mega pixels and just focusing on that doesnt tell the story. You end up with pictures that dont look as good and focus on the sensor and the quality of the lens and making the case what theyre able to do in software, focus pixels is going to be important. So the thing that is we are getting in this part of the keynote, talking about the m8 i think leap forward to the iphone. The i8 measuring motion is what you expect to get into more with Health Tracking so this is the important part right now, guys. Jon, thank you very much. Max, what do you see that excites you or that disappoints you . Its basically met expectations. Apple kind of fallen behind a little bit in terms of samsung with the larger screen devices and as they often do, theyre a little late to the game and what theyre putting together looks pretty great and i think iphone users will be happy and may pull some of the android user ofrs, as well. Especially in asia where large screen phones are a bigger deal. Sue . Max, i was wondering what you thought of natalies comment earlier that its a little bit smaller than the ipad mini but more of an ipad experience. Could it eat into their tablet sales, do you think . I think it for sure will and part of the reason theyre doing it. I think basically moving to a place where a lot of people have a larger screen phones, rather than a phone and a tablet. And i think thats part of the reason theyre doing this watch, as well. Because with the watch, you leave your phone in your bag because its so big and then use the watch to get email or check things quickly. Jon, i want to bring you in on maxs point there because my own experience is with a larger screen smartphone, i use it now for almost all of the things i do computingwise, whether its electronic banking, emailing, checking the news and so forth. I find myself relying less and less on the ipad mini. Is that potentially i mean, better for apple to cannibalize its own product than for someone else to but do you see that happening . Well, i think certainly if theres cannibalization, its better for apple to do it with a higher margin product like the iphone 6 plus than to let somebody else do it and what you have is a situation where samsung and a few others able to own that market above five inches and right now its a story of cannibalizing those folks, not so much ipad and i want to point out we expect an ipad event this year and ipad competing with pcs so if they come out with a larger ipad or add features that make it more productive, then you could end up with expansion in the phone and the tablet segments. Thank you very much. Appreciate you being with us. Sue, down to you. Lets get a check of the markets. The dow down 60 points, the gold market just about to close and its negative across the board. About a 5. 50 drop in the gold market. Palladium, almost a 3 drop there today and the Copper Market we have a better than 2 drop so the commodities complex under pressure once again in todays trading session. To the bond market right now because we have a big pop to the upside in terms of yield on the 10year note earlier this morning. Art cashin pointing out that it could be based on yesterdays San Francisco fed paper cautioning that the fed might lift rates sooner than later and see the yield on the 10year note at 2. 5 and thats off of the highs of the trading session so youre up to date on the bond market. Lets go back out to carl in cupertino. Carl . Just there on the camera elements, theyre making a big deal. Faster auto focus. Two times the previous generation. John mentioned the 8 mega pixel, the eyesight camera. Lets you make pictures in lower light. A flash calling a true tone flash. And then on the 6 plus, guys, an optical image stabilization lets you take better, sharper photos in lower light and burst photos where you take a picture, it detects smiles and blinks and then allows you to take the best photo of a series of photos of that shot. By the way, phil shiller just said he thinks the iphone is the world east most popular camcorder. A lot more still to come and see if the iwatch is coming when the coverage of the apple launch continues live from cupertino. Wait, wait, wait, its wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. Whenwork with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Welcome back. Apple supplier gt advance tech makes the displays in the iphones. Bouncing down about 6 off of the lows of the session. We are watching the suppliers in reaction to whats happening with the new apple iphone 6 launch and now back out to california. Carl has new details, more on whats happening with the iphone 6. Back over to you, carl. The details are coming in. Tim cook tweeted for the first time from his iphone 6 backstage. Says its amazing, quote, you are going to love it. And then a front facing hd camera for face time and also something of burst selfies to take a series of selfies and pick the one not blinking and theyre definitely smiling. Apple apparently according to the words of Joe Wisenthal said apple just changed selfies forever. Over to you. Thanks, carl, very much. Our coverage continues right now and back with us, hugh johnson of hugh johnson advisers, Todd Rosenbleth and ivan wiseseth. Lets talk about the health space and quantify what it might mean for apple. Ivan, you said apples not always first in the space but once they get in there, they dominate the space. Yes. So, so far, were getting a little hint of what the health app might be or the Health Portion of the phone line. Are you impressed . So far. I mean, most of them do measure movement, a key function people want and so many applications and apps to measure people with Health Illnesses or Health Problems and people to track and improve their fitness and a huge market. You would agree with that i think, todd. I would. This is why apples a good part of the portfolio. A Consumer Discretionary component of the business but this is a Technology Company thats growth oriented. Carl . Yes. Sue, tyler asking of pricing. I think we have the first indication. On the 6 with the contract, 199. By the way, all of this available september 19th. 199 to 399. That would be going from a 16 gig up to 128 gigs. On the 6 plus, 299 to 499. Again, a 16 gig up to a 128 gig. At the high end, ty, almost 500. At the low end for the smaller phone, about 199. More details well give them to you. Thank you very much. Hugh, we have the price point. We have a little hint of the health component. But the stock has been weak as it kind of is when we have these kind of e vaents. Sometimes we see pressure in the stock. We came in a little over 100 a share. We were near the lows of the session. Now moving back up. What do you think so far, hugh . So far, so good. But i dont think theres anything overwhelmingly surprising in what i have heard. You have asked the right questions. We have a little bit of answer to the pricing question. Another question about the cannibalization of the ipad. Whats going to happen to the whole thing when we have the ipad introduction later on this year . It all gets at what i need to know and of course this is not for me to figure out. Its for smarter people than me is whats going to happen to the margins for apple as a result of these new products. Not only will we have a little bit of a deterioration in margins or stable margins. To me thats the key question. But if we do get a decline in the price of the stock with a correction, believe me, i think its undervalued now and when youre talking about a company with 150 billion in cash, you dont want to try to get too cute on the timing part of it. All right. Todd, what about margin pressure . That is the issue. Theyre going to grow revenues. They have great products to do that. Does it impact margins . Well see. It comes into demand and where it ends up happening. We think Earnings Growth is strong for the company. You mentioned about the cash. If the stock sells off, increase the dividend or buy back stock and what makes it a good part of the core portfolio. The pricing. You can go either way with it. Not surprised. Apple makes premium products. They do not make value based products and always priced at the high end and never deterred the consumers. Stick around. You are not done yet. Lets go back out to cupertino and carl. Hey, sue. I was dates on availability. Preorders for the iphone 6 and the 6 plus begin september 12th which, of course, the end of this week. Available on september 19th. A week from friday and several countries and then of course the update to ios on september 17th. By the way, sue, worried about this bigger phone cannibalizing the ipad, bear in mind that could be positive for apple. Gross margins are about to 20 higher on the iphone than they are on the ipad. Power lunchs coverage of cupertino continues in a moment. And Custom Communications solutions, your business is more reliable, secure, and agile. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. Watch this. Sam always gives you the good news in person, bad news in email. Good news fedex has flat rate shipping. Its called fedex one rate. And its affordable. Sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. Great. More good news its friday woo [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® can you start tomorrow . Yes sir. Alright. Lets share the news tomorrow. Today we failrly busy. Tomorrow were booked solid. We close on the house tomorrow. I want one of these opened up. Because tomorow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. When csx trains move forward, so does the rest of the economy. Csx. How tomorrow moves. With centurylink visionary cloud a brinfrastructure, and Custom Communications solutions, your business is more reliable, secure, and agile. All right. Power lunchs coverage of apple continues. Natalie morris with us and dan ackerman and max chafkin. They got all of those, dont they, max . Or at least they have. Let me remind you you can vote for the i pow wow question at cnbc. Com vote. Well bring you the results. How are you playing the apple event . Im buying, holding, selling. Theres 38 say theyre selling. It has no impact on me by 13 . Sue, as we watch that. Let me ask you, natalie, we know a lot more now, the chip is quicker. Processing speeds are better. The screen of the iphone 6 plus is going to be sharper. 401 pixels per inch versus 326. The camera with enhancements and not more mega pixels and apple down plays saying it is not really all that significant what theyre going to do is improve the images. Its also going to have a slower slo mo and a faster fast burst. Would this get you to go buy it . Oh, well, yeah, i want to try everything. Youre asking the wrong person. Will this get the consumer off the couch to go buy it . This is very compelling and also will it get the first adopters, the early adopters to buy it . One thing thats really been getting peoples attention is that the camera now has optical stabilization. Doesnt stabilize the person youre shooting, obviously. Stabilizes the lens. This is going to make a difference. You see beautiful iphone pictures and you will see more. Dan, we are moving into the portion of the program where mobile payments have taken center stage and see what else is left later in the presentation and focus here on the iphone enhancements, i think its worth noting here that this is clearly not a new product category. This is a reimagining, a refashioning of their very successful existing product. Yeah. Thats what theyre doing. Incremental steps forward. You make the camera better. There are products out there especially from samsung shooting 4k videos and not everybody has a 4k tv and the switchover is coming. I think at the end of the day the under the hood stuff like the digital wallet just starting to talk about on stage right now may be more of a game changer with frictionless digital payments. Max, what about that . If you look at the well, hold that thought. Lets go to carl. News on payments, this is what a lot of apple bulls have been looking for, perhaps even more than the phone itself. It is going to be called apple pay, a device, a service in which you use your thumb, hold the thumb down on a on the touch i. D. Button to verify the identity. Some on twitter saying it should be pay apple but for the time being that is the name of the product. Tim cook just getting into that subject right now. By the way, the new ads, they have hinted at, jimmy fallon, Justin Timberlake in those and the streaming is problematic for a lot of people and told its better to follow the live blogs on apple. Com. Sue . Well go to jon forte and you mentioned we were getting into the meat of the product announcements and the apple pay is latest. You know, there are a lot of people that down played that. Personally, i think that could be a real game changer for them and a e nor vous revenue stream. Yeah. Its kind of like getting involved in a land war in asia as they say in the princess bride. Tim cook alluded to that in the conversation during the presentation. Lots of people have failed to get payments right. The way apple will do it is using the touch i. D. Sensor in the phone and Near Field Communication also called nfc and other phones had this for quite a while. I guess they believe the combination of the technology and wave in front of a terminal and fingerprint to securely encrypt your Payment Information in the phone and use your fingerprint to unlock it is the right combination. Now they have to figure out how to get not just the Payment Networks but also merchants broadly enough to deploy Nfc Technology so that people can use this and historically apple is better at crafting experiences to control by themselves without having to pull in partners. Now they have to prove they can pull everybody in. I have that nfc thing. Not the National Football conference either. On my phone. I have got to say, i havent found that the terminal that is are willing to accept it and, oh by the way, swiping the credit card is pretty convenient. Carl, back to you. All right. Thank you very much, ty. By the way, jon mentioned nfc. Essentially you are using your credit card in itunes through passbook and said before that apple already has 800 million credit cards through its experience with itunes. Power lunch continues coverage in a moment. Dont go away. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Welcome back to power lunch. We are keeping an eye on the apple suppliers and seeing ripple effects in the stocks. Take a look at some of them really moving. Look at a possible, possible again supplier and speculation and also take a look at whats happening with mastercard, visa, american express. These are Payment Systems and payment companies. These shares are at least moving up toward the session highs and because of the new apple pay feature and may let the iphone be a payments processor. Check out whats happening with ebay. Its paypal Payment System is perhaps a rival to apple pay and ebay shares you can see all over the map. Back over to you, tyler. Dom, segued beautiful and lock down the i poll for the hour. Apple, oh by the way, is now sitting at the high of the day at 102. 25. So, that is a very nice little reception to what apparently investors have heard so far from mr. Cook. Max, let me turn to you. Of all the things you have heard this hour, what strikes you as the most important . Well, i think the most important thing probably just from what we heard so far is payments thing. I think thats a real opportunity for apple. Something we didnt have that much information about ahead of time and to me this is all a great setup for the product unveiling any minute, the watch or whatever this wearable is. I think if theres a game changer here thats where its going to be. All right. Let me ask my guests for their final thoughts if i could, todd, you first. Yeah. Apples a great stock to have in the portfolio. You probably have it. Growth. Ivw is an etf with the Largest Holding we have within the products is a large holding. Ivan . Strong buy on the stock. This is good news. Anything that expands the breadth and depth of the ecosystem is powerful and people arent talking about the fact that the total cost of ownership of an iphone in addition to the purchase over the twoyear contract is over 1,800 and apple participates in that revenue, as well. Another revenue stream. Tyler . Natalie, would you wear a wearable . You know, i abandoned them and then sit by the bed. Im concerned about security. Both in this pay system and in the wearables. So, you know, were all going to get excited about the technology as it is announced and i think coming days we have to ask these serious questions. Ladies and gentlemen, thank you very much for this important discussion and that will do it for power lunch. Street signs begins after this break. Especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. 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The apple watch is a square watch with a metal band and apparently other bands, as well. Stainless steel. A sapphire screen. A rotating dial. After laying out two new iphones, the iphone 6 and the iphone 6 plus, a