Al Qaeda Affiliate Says It's Behind Bangladesh Killings; Spain Faces New Elections; Prince Did Not Leave a Will; T-Mobile Adds 2.2 Million Subscribers.
RICHARD QUEST, CNN ANCHOR: Hello. I'm Richard Quest. Of course there's more QUEST MEANS BUSINESS in just a moment. When iPhone sales could be declining for the first time and Apple results are due out any moment now. They could be as we're speaking. A number of chief executives have their own earning drinking game We're going to ask T-Mobile's John Legere, why he insists on such vulgarity. Before that, this is CNN. And on this network, the news always comes first. Families of the Hillsborough victims say justice has been served after a jury ruled 96 Liverpool fans were unlawfully killed in a crush in 1989. The jury found the fans themselves were not at fault. The police error was a factor in their deaths. Margaret Aspinall, whose 18-year-old son was killed that day says she hopes criminal prosecutions will follow.</s>MARGARET ASPINALL, MOTHER OF HILLSBOROUGH VICTIM: What we have gone through, somebody's got to be held accountable. If I say prosecution, yes, I think they do need to be prosecuted. For what they put us through, the truth was there for 27 years. We never got that truth. A lot of that's come out in the court over the past two years. It's things that we have never seen. We haven't seen before. And that's what shocked me. And I thought that is been there. Why wasn't that handed over?</s>QUEST: An Al Qaeda affiliate has claimed responsibility for the brutal killing of two men in Bangladesh. They were hacked to death in an apartment in the capital of Dakar. One of the victims was the editor of the country's first LGBT magazine and also worked for a U.S. government agency. Half an hour from now, the first exit polls from the latest rounds of primaries in the United States. Five Northeastern states voting this Tuesday. Big wins for Donald Trump and Hillary Clinton would tighten their grip on their respective party nominations. Spain is to head for new elections. According to the head of the country's Socialist Party. It's been four months since the Spanish originally went to the polls, but they gave no party a majority. Now, King Felipe has met with the political leaders to see if a coalition can be formed after Sanchez says he doesn't have enough support and therefore elections are inevitable.</s>PEDRO SANCHEZ, LEADER, SPANISH SOCIALIST PARTY (via translator): it's not been possible and, therefore, we'll face a repetition of the vote. And I am saying a repetition of the vote and not a second round as some people want to call it. It will be a repetition of the vote as consequence of the in ability and unwillingness of Mr. Iglesias to lead the change with me and Ciudadanos, and in that way to put an end to Mariano Rajoy's government.</s>QUEST: The sister of the music legend Prince says that the late singer did not leave a will. Tyka Nelson is Prince's only full sibling, and she's asking for a special administrator to deal with his assets. Prince, who was not married and had no living children is believed to be worth $300 million. T-Mobile strategy has paid off in a big way with more than 2 million customers joining the network in the first three months of the year. The chief executive took to twitter to gloat. "AT&T and Verizon trying to buy out T-Mobile customers, but we still took their customers and kept ours," he said. John Legere has been aggressive in going after his rivals. And his company's been aggressive in courting customers with expanded network and perks like unlimited video streaming. It seems as though T-Mobile lags behind the leaders. Speaking to me earlier, John Legere said the trend is in his favor.</s>JOHN LEGERE, CEO, T-MOBILE USA: We added 2.2 million customers this quarter. That's the 12th quarter in a row over a million, so it's not a fluke. Six of the last seven quarters we have added 2 million. And then when you go down, you know, we had a million postpaid subscribers, which is, you know, seven in a row. And then 877,000 post-paid phones and interesting this quarter, 807,000 prepaid nets. Another trend coming is churn is low. So not only customers coming, they're staying. And the biggest news of our earnings today was service revenue up 13.6 percent and EBITDA up 98 percent. So we're cleaning their clocks is what it means.</s>QUEST: Do you think you have, if you like, not you personally, but a reputational issue that people don't believe --</s>LEGERE: Absolutely.</s>QUEST: -- that your coverage is as good?</s>LEGERE: Yes, and it's not like a reputation. It's a reality that our network investment in our coverage has changed so much that the issue that I spend every day doing is saying, who do you use? What is your opinion of T-Mobile? How old is it? Is it third hand or firsthand? And if it's more than a month old, it's old. So just try it.</s>QUEST: Bingeing and streaming. We were talking about it yesterday -- and Spotify, and the things -- they offer you great opportunities, but require huge amounts of bandwidth. And they require you to invest vast sums, don't they?</s>LEGERE: You have to invest vast sums to have a scale of network anyway. Doing things for consumers that solve pain points is fundamental principle of who we are. Music streaming, it's small amounts of data. It's very easy to stream music free. And what we did with BingeOn was fascinating. Understanding of the fact that a mobile device does not require 1080p and with a deal with a customer, if you agree to stream it at 480p we'll zero rate to video streaming. It actually lowered the utilization of the network on the day we turned it on by 12 percent.</s>QUEST: Why do you feel the need sometimes to be so personal?</s>LEGERE: You have such a great way of saying --</s>QUEST: In your -- some might say vulgar.</s>LEGERE: Vulgar definitely. Come on.</s>QUEST: You revel in it.</s>LEGERE: You know, I have said many times, I am my customers. I talk, I act, I say the things that you're all thinking about. You're afraid to say. And, and I am who I am. This is a consumer business for the most part and I relate to my customers. I relate to my people. And that's who I am. I don't take myself too seriously.</s>QUEST: Twitter.</s>LEGERE: Yes.</s>QUEST: You have 2.4 million followers.</s>LEGERE: So far, yes. It's a long day.</s>QUEST: You tweet constantly.</s>LEGERE: Yes.</s>QUEST: You tweet incessantly.</s>LEGERE: Yeah.</s>QUEST: You tweet almost to a Trump-esque.</s>LEGERE: Ah.</s>QUEST: Why? What for you is --</s>LEGERE: See, twitter and social in general, it's not a game. This is a major tool I use to run my business. I'm constantly in touch at a moment's notice with my customers. Everybody else's customers. I can learn exactly what's going on. I get great feedback.</s>QUEST: Double-edged sword though. If somebody tweets and you don't rely. They have a problem.</s>LEGERE: No, I always reply. I reply. See, what I do, I've got large customer service teams. All I need to do is see it. I need to see that message and by the way, when I do and I reply, the big benefit is who's watching. 100,000 people that see, holy crap, that person just wrote to that guy about service in their home and he wrote back and they're taking care of him. I'm going over there.</s>QUEST: John Legere talking to me earlier. Now Apple results are outand iPhone sales are topped estimates. But these were estimates that were very sharply revised down overall. So you've got iPhone sales that are -- which account for two thirds of the revenue. And they fell quite sharply. We'll give you the numbers in just seconds. It's something like 16 percent year-on-year on the quarter. And other things also missed, other product sales were down quite sharply. That includes the watch and along with some of the services. And revenues overall, it missed the revenue estimates. Pete Pachal is with me from "Mashable's" Technology Editor. Good to see you, sir.</s>PETE PACHAL, TECHNOLOGY EDITOR, MASHABLE: How are you doing, Richard? Good to see you.</s>QUEST: So let's go through this collection.</s>PACHAL: Let's do it.</s>QUEST: I have the results here. The headline numbers, I mean, the headline numbers show revenue quarter versus quarter down from 58 to 50 billion. Revenue is sharply lower.</s>PACHAL: Revenue is down and it just shows Apple is iPhone company. The bare existence, their profits, their revenues are tied almost completely to the iPhone. It makes up roughly two thirds of their revenue, this one product. So if iPhone sales decline as they did in this quarter, 16 percent, you know, the company follows.</s>QUEST: This one. Let's start with this one. There we to. The iPhone's down 16 percent, 51.2. How serious is that for them?</s>PACHAL: It's fairly serious. Remember this is the quarter before the iPhone SE. So they had just announced the iPhone SE, the small screen iPhone, which is a significant market for them. One, because people, a lot of people prefer the smaller phone and also it's a cheaper phone. So it should do logically do better in those growth markets of China and India. So next quarter if we still see some serious drop-off, that would be a huge reason for alarm and this time expected. It is not good -- for long term not good.</s>QUEST: Of course it's not good. This, I mean, now they brought out the larger iPad.</s>PACHAL: Yes, the Pro.</s>QUEST: The Pro. But the numbers down 10.2 million iPads sold in a quarter, down 19 percent. I mean, I'm not suggesting the day of the tablet is over and suggesting don't take two and call the doctor in the morning.</s>PACHAL: Yes, absolutely. Tablets are definitely on the slide. They've been on the slide for a while. I think they peaked for Apple like around Christmas 2013 and then we started moving on to wearables and other gadgets and whatnot. So with the iPad it's never going to be that thing the iPhone was. Credit to Apple, they single handedly created the tablet market and it will always there. It's just never going to be that bell weather that iPhone is. Oh, the watch. I see what you have there.</s>QUEST: The watch.</s>PACHAL: Yes.</s>QUEST: What's happening with the watch?</s>PACHAL: You know --</s>QUEST: They don't break out the numbers. They only break it out as revenue and the revenue, if you go is basically down sharply q-on-q but not year-on-year.</s>PACHAL: Yes, it's a bit of a mystery how well it's going. You can do reverse engineering math, but because the price of the watch varies so wildly, it's really hard to get a beat on exactly how many of these things they have sold. But we do know it's the most successful wearable ever, but it also shows that's not saying much. Wearables and the Apple watch had not going to be -- I think pretty much clear, they're not the must have device that a smartphone is.</s>QUEST: Right. So we have --</s>PACHAL: There we go.</s>QUEST: We have the Mac. We have the phone. We have the iPad. We have the wearables. Put it all together with this set of results. Is apple in trouble?</s>PACHAL: Apple in the long term is in trouble. Because these -- all these products in one way or another, except for maybe the watch, were kind of transcendental. They really either created a product category or revolutionized it. Right now, as far as we can tell, they don't have something that is, you know, imminent that's going to change things. There's been talk about a car. That's probably years out if it's ever going to happen. We heard about the Apple TV service, another rumor. That's probably a little more short term. That could change the game for them. That probably is the best shot. But it's really an open question whether Apple makes the deals to get, like, a Sling type TV service best in class. Where you can get over the top, you can get all the TV via the internet. I don't know if they can do it.</s>QUEST: We're very grateful sir that you come in and help us understand the machinations of this.</s>PACHAL: My pleasure. Thank you very much indeed.</s>PACHAL: Cheers.</s>QUEST: Thank you. We'll continue QUEST MEANS BUSINESS tonight. Three decades on and the disaster at Chernobyl looms large in the global consciousness. I'm going to take you inside the fallout shelter. You'll see what it was like in the fallout zone when I visited Chernobyl.