Apple's New iPhone is Here | Bloomberg Technology 09/12/2023
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: AND I AM LED LUDLOW LIVE IN CUPERTINO AT THE APPLE CAMPUS. THIS IS A SPECIAL BLOOMBERG TECHNOLOGY FOR COVERAGE OF APPLE'S IPHONE EVENT. CAROLINE:
WE WILL HAVE THAT EXTENDED COVERAGE ON APPLE, IT'S PRODUCT LAUNCH AS THE COUPLE FACES INTERNAL SHIP DELAYS AND A SHIFTING SUPPLY CHAIN. WE WILL BREAK DOWN EVERYTHING YOU NEED TO KNOW, AND WE WILL COVER GOOGLE'S BIGGEST ANTITRUST CHALLENGE YET AS THE DEPARTMENT OF JUSTICE AND 35 U.S. STATES SUE THE SEARCH GIANT, ACCUSING IT OF A MONOPOLY. AND WE WILL HEAR FROM ENDEAVOR
PRESIDENT AS THE COMPANY COMPLETES ITS TAKEOVER OF WWE AND COMBINES IT WITH USC -- WITH UFC TO CREATE A PUBLICLY TRADED GIANT. WE WILL TALK THE STREAMING IMPLICATIONS AND SO MUCH MORE AHEAD. WE HAVE TO BE DISCUSSING WHAT IS HAPPENING IN THE WORLD OF APPLE. THIS IS AN EXCITING TIME IN TERMS OF THE IPHONE 50 LAUNCH. I FEEL LIKE -- THE IPHONE 15 LAUNCH. I FEEL LIKE WE KNOW WHAT TO ANTICIPATE. THERE ARE A LOT OF HEADWINDS
FACING APPLE. DO YOU THINK WE COULD SEE THE TAILWINDS TODAY? ED: IT IS WHY THE IPHONE IS EVERYTHING. THAT IS WHAT WE ARE EXPECTING. FOUR VARIANTS OF THE NEXT GENERATION IPHONE 15, A BASE MODEL, A PLUS, DAVE AND A PROMAX. APPLE RESERVES ITS BIGGEST TECHNOLOGICAL UPDATES FOR THE PRO LINES. IS IT ENOUGH TO CONVINCE THE CONSUMER TO UPGRADE? WE KNOW THERE ARE HUNDREDS OF MILLIONS OF OLDER GENERATION IPHONE HANDSETS.
ARE THEY GOING TO BE ABLE TO BOOST VOLUMES OR ARE THEY GOING TO RELY ON HIGHER PRICES? CAROLINE: FOR WILL WE SEE REVENUE START TO INCREASE? THIS IS THE $200 BILLION JUGGERNAUT. WE ARE PLEASED TO WELCOME MARK GURMAN WHO HAS BRACED US FOR WHAT TO EXPECT THROUGHOUT THE ANNOUNCEMENTS. IS IT ALL ABOUT GETTING THEM TO PAY A HIGHER PRICE? MARK: CERTAINLY APPLE IS PUSHING. ITS LATEST FEATURE IS AN ADVANCEMENT TO THE HIGHER END MODEL. THEY WILL BE DIFFERENTIATING THE PRO MODELS FROM THE NON-PRO MODELS MORE THAN EVER. THE HIGHEST AND MOST EXPENSIVE PRO MODEL IS GOING TO HAVE ADDITIONAL FEATURES LIKE A PERISCOPE CAMERA WHICH MEANS IT CAN HAVE A WIDER RANGE OF ZOOM USING HARDWARE, SO BEING ABLE TO ZOOM IN DOUBLE THE AMOUNT YOU COULD ON THE REGULAR 15 PRO WITHOUT DEGRADING THE QUALITY OF THE IMAGE. THEY ARE PUSHING PEOPLE TO THE
TOP WITH BETTER CAMERAS, TITANIUM, AND FASTER PERFORMANCE. >> YOU REPORTED ABOUT APPLES LATEST GENERATION ADDITIONAL MEMORY. THERE IS A COMPUTE FACTOR. THERE IS A EUROPEAN UNION MANDATE FOR U.S. BC.
TELL US WHAT YOU HAVE REPORTED. MARK: THIS WILL BE APPLES CHIP MANUFACTURED AND WHAT IT ALLOWS IS BETTER BATTERY LIFE AND BETTER EFFICIENCY. YOU'LL SEE BATTERY LIFE UPGRADES ON THE 15 AND 15 PROMAX AND BACK TO THE DIFFERENTIATION POINT, THE HIGHER END PHONES WILL GET THE A 17, WHILE THE ENTRY-LEVEL PHONES WILL GET THE A 16 CHIP FROM THE 14 PRO AND 14 PROMAX. IN TERMS OF U.S. BC ALL FOUR MODELS WILL GET USB-C INSTEAD OF LIGHTNING BUT THE PRO MODELS WILL GET USB-C WITH FASTER DATA TRANSFER SPEED WHICH WOULD BE GOOD IF YOU TAKE HIGH-RESOLUTION VIDEO TO CONNECT THEM TO YOUR COMPUTER AND TRANSFER THEM OVER A CABLE. YOU'LL BE ABLE TO DO THAT AT A
MUCH FASTER RATE WITH SPECIALIZED THUNDERBOLT CABLES. CERTAINLY THE TALK OF TODAY WILL BE HOW THE PRO MODELS WILL HAVE EXTRA BELLS AND WHISTLES TO BRING PEOPLE UP TO THE HIGHER END MODELS. ED: GREAT, SO ALL OF THOSE LIGHTNING CABLES I'VE BEEN ACCRUING SINCE 2012 ARE COMPLETELY REDUNDANT. I'M EXPECTED TO BRING IN CREATIVE STRATEGIST ANALYST. WE
WILL GET TO THE USB-C DEBATE. THE BIG DISCUSSION WE HAVE HAD IS THERE IS AN UNKNOWN NUMBER OF OLDER GENERATION IPHONES, WHETHER IT IS TENS OF MILLIONS OR HUNDREDS OF MILLIONS, WE HAVE REPORTED WHAT WE THINK IS COMING. IS THE TECHNOLOGY UPGRADE ENOUGH TO SPUR THIS GENUINE UPGRADE CYCLE? >> I THINK IT IS. MARK WAS TALKING ABOUT MOVING PEOPLE TO THE HIGHER PRICE POINT. THERE ARE TWO MARKETS. YOU HAVE THE EARLY ADOPTERS AND THE PRO USERS AND THEN YOU HAVE THE HUGE BASE OF PEOPLE THAT HAVE DEVICES THAT ARE FOUR OR FIVE YEARS OLD THAT NEED TO CONTINUE ON THAT PATH. CREATING MORE SEPARATION BETWEEN THE PRO MODEL AND THE NON-PRO MODEL IS TO PULL GET PEOPLE TO MOVE UP.
ED: I FOCUS A LOT ON THE TECHNOLOGY FROM A PROCESS COMPONENT, BUT SWITCHING TO TITANIUM SIDES IS INTERESTING. WHY WOULD THAT MAKE A DIFFERENCE? >> FROM A CONSUMER PERSPECTIVE GETTING INTO THE STORE AND HOLDING ONE OF THE NEW PHONES IS THE MOST TANGIBLE EXPRESSION OF THE PHONE BEING DIFFERENT. SOMETHING YOU YOU SO MUCH DURING THE DAY WAIT MAKES A DIFFERENCE. IT MIGHT ALSO ADVISE PEOPLE TO GO TO THE HIGHER FORMFACTOR BECAUSE IT IS NO LONGER SO HEAVY.
THERE IS ALSO A SUSTAINABILITY STORY LINKED TO TITANIUM IT WILL BE INTERESTING HOW FAR APPLE PUSHES THE STORY TODAY. ED: USB-C. DID APPLE WAIT TOO LONG? THE EUROPEAN UNION HAS A 2024 DEADLINE. WHAT IMPACT WILL THAT HAVE? CAROLINA: FOR PEOPLE IN THE ECOSYSTEM, IT IS ONE LESS CABLE.
FOR THE PRO VERSION, IT IS NICER FOR CREATORS. IT IS USEFUL. IT IS NOT JUST ABOUT DOING THE MANDATE FOR THE REQUIREMENT. IT WILL BE INTERESTING TO SEE HOW THEY SPIN THE STORY. FROM A PORTFOLIO PERSPECTIVE, YOU START TO SEE DISCREPANCIES WITHIN THE PORTFOLIO. NOW WE HAVE ONE CABLE ACROSS
THE BOARD. I AM SURE THE AIRPORTS WILL ALSO GET USB-C. CAROLINE: I AM ALL IN ON ONE CABLE. TELL ME HOW THEY WILL SPIN THE GREEN ELEMENT. YOU JUST TOOK US THERE. THE SUSTAINABILITY ELEMENT. IT SEEMS LIKE THAT WILL CREEP IN AS WELL. CAROLINA: IT SEEMS SO WITH MATERIAL AND THERE'S BEEN A LOT OF SPECULATION ABOUT THE RELATIONSHIP WITH HERMES.
IF YOU LOOK AT APPLE'S DNA AROUND SUSTAINABILITY THEY HAVE ALWAYS HAD A STRONG STORY. THEY HAVE A GOAL TO BE CARBON NEUTRAL BY 2030 ACROSS THE SUPPLY CHAIN AND PRODUCTS. THEY ARE ALREADY CARBON NEUTRAL FOR THEIR OWN OPERATIONS TODAY. IT WOULD BE INTERESTING TO SEE WHETHER THE MATERIAL IS ONE ASPECT OF IT. WE SAW THE BADGES ARE ALL RECYCLED. IT SEEMS LIKE SUSTAINABILITY
WILL DEFINITELY BE A STORY. CAROLINE: WHAT ABOUT THE WATCHING GENERAL? HOW MUCH ARE THEY CONTINUING TO INNOVATE ON THAT PROJECT? HOW IMPORTANT IS IT TO THEM? CAROLINA: IT IS A VERY IMPORTANT PRODUCT BECAUSE HEALTH AND FITNESS IS AN IMPORTANT STORY TO TELL AND THEY HAVE MADE A HUGE IMPACT. IT HAS BEEN INTERESTING TO SEE HOW MUCH THE ULTRA VERSION OF THE WATCH IS TAKING CONSUMERS BY STORM. IT IS NOT JUST FOR THE FITNESS. WE WERE TALKING ABOUT THIS ON THE PROGRAM AND SAID THERE A LOT OF WANNABES HEALTH AND FITNESS PEOPLE THAT WILL BUY THIS WATCH. FOR APPLE IS ANOTHER WAY TO LOCK CUSTOMERS IN. I KNOW THEY HATE THAT TERM BUT
IT IS TRUE. IF YOU HAVE YOUR PHONE AND YOUR WATCH IT IS HARDER FOR YOU TO MOVE AWAY AND MOVED TO A DIFFERENT BRAND AND ECOSYSTEM. ED: THE COMPANY STORY FOR APPLE HAS BEEN CHINA. IN THE JUNE QUARTER IT WAS A RECORD IN GREATER CHINA.
8% GROWTH. HOW IMPORTANT IS THIS IPHONE 15 TO THAT MARKET? DOES IT GET TRACTION WITH THE CONSUMER IN CHINA? CAROLINA: IT IS VERY IMPORTANT AND I THINK THE STORY ABOUT THE PROCESS AND THE PRO IS IMPORTANT FOR CHINA. CHINA HAS ALWAYS BEEN A MARKET ABOUT REAL TECHNOLOGY SO THE PROCESS IS SOMETHING THEY LOOK AT CLOSELY VERSUS DESIGN AND MATERIALS. I THINK THAT SEPARATING THAT PRO LINE WITH A DIFFERENT PROCESS OR A DEDICATED PROCESSOR THAT CAN GIVE YOU MORE WILL BE CRITICAL FOR CHINA. ED:
CREATIVE STRATEGIES PRINCIPAL ANALYST. THIS IS A STRONG START TO OUR SPECIAL COVERAGE FOR BLOOMBERG TECHNOLOGY. CAROLINE: LET'S GET BACK TO WHAT IS HAPPENING IN TRADING. IT IS A RISK OFF DAY AROUND THE APPLE WAIT AND SEE MODE. WE ARE OFF .5%. IN THE COMMODITY SPACE WE ARE
SEEING A DRIVE HIGHER. OIL ON THE HIGHER SIDE. I AM LOOKING AT BITCOIN. HIGHER VERSUS THE U.S. DOLLAR AT THE MOMENT. UP 4%. VOLATILITY BACK A LITTLE BIT. I WANT TO DRAW ATTENTION NOT ONLY ON WHAT IS HAPPENING.
PAYPAL IS GETTING EIA BID, TIGHTENING ITS RELATIONSHIP WITH UBER. I AM LOOKING AT ORACLE. IT IS DOWN THE MOST SINCE 2002 AS THE COMPANY IS SAYING 30% REVENUE GROWTH IN THE CLOUD IS NOT GOOD ENOUGH. THEY WANTED TO SEE MORE IN THE TERMS OF THE ANALYST COMMUNITY AND INVESTOR BASE. ATTRACTS A LOT OF OF NAMES TO
THE DOWNSIDE. CAROLINE: GOOGLE FACING ITS BIGGEST ANTITRUST CHALLENGE YET OVER ACCUSATIONS IT HAS MAINTAINED A MONOPOLY OVER THE SEARCH MARKET VIA AGREEMENTS WITH TECH RIVALS. THE COMPANY FACING A PAIR OF LAWSUITS BY THE JUSTICE DEPARTMENT THAT COULD RESULT IN THE BREAKUP OF THE 25-YEAR-OLD SEARCH GIANT? FOR MORE LET'S BRING IN JENNIFER REI WHO HAS BEEN LISTENING INTO OPENING STATEMENTS. DOES THIS DEAL REMINISCENT TO THE 1990'S? JENNIFER: IT REALLY DOES AND THERE'S SO MANY PARALLELS BEING BROUGHT TO THE BIG CASE AGAINST MICROSOFT THAT WE KNOW ABOUT. IT IS SIMILAR. THERE ARE ALLEGATIONS. MICROSOFT WAS ENTERING AGREEMENTS TO BLOCK OUT NETSCAPE AND JAVA AND THE ALLEGATION IS GOOGLE IS ENTERING AGREEMENTS TO TRY TO BLOCK OUT RIVALS LIKE BEING AND DUCT DOUG: AND OTHER COMPANIES -- LIKE BING AND DUCK DUCK GO.
THERE ARE SIMILARITIES BUT THEY'RE ALSO DIFFERENCES BECAUSE OF WHAT TECH COMPANIES HAVE LEARNED FROM MICROSOFT. CAROLINE: THE ARGUMENTS COMING FROM ALPHABET, ARE THEY GOING TO DIVERGE FROM WHAT WE LEARNED IN THE 1990'S? JENNIFER: THEY WILL SAY WE HAVE DONE NOTHING TO PREVENT ANYONE FROM USING BING OR DUCK DUCK GO. AND MICROSOFT IT MADE IT VERY DIFFICULT FOR ANYONE USING A MICROSOFT PC TO DOWNLOAD NETSCAPE. IN THIS CASE IT IS EASY TO CHANGE YOUR DEFAULT SEARCH ENGINE. GOOGLE MAY HAVE THE AGREEMENT
TO START AS THE DEFAULT, BUT YOU CAN CHANGE YOUR DEVICE. IT IS QUESTIONABLE AS TO WHETHER THIS IS REALLY FOR CLOSING COMPETITORS OR ISN'T IT? WE WILL SEE HOW THAT TESTIMONY COMES OUT ABOUT HOW STICKY IT IS TO BE THE DEFAULT AND HOW MUCH USERS SWITCH BACK AND FORTH. CAROLINE: IS AN INTERESTING, WE ARE SUDDENLY THINKING THEM NAPOLI IS UNDER ATTACK FROM CHATGPT, THE IDEA THAT AI IS THE COMPETITOR. JENNIFER: THE INTERESTING THING ABOUT TECHNOLOGY AS THE MARKETS CAN CHANGE SO QUICKLY. THIS IS ONE OF THE THINGS ALL THE TECH COMPANIES WILL CLAIM. I MAY HAVE A MONOPOLY BUT THIS COULD CHANGE ANY DAY AND WE ARE TRYING TO HOLD ONTO OUR POSITION.
TECHNOLOGY CHANGES AND YOU CANNOT JUDGE IT THE WAY ANTITRUST JOB -- ANTITRUST LAWS ARE JUDGING IT RIGHT NOW. YOU HAVE TO THINK ABOUT CHATGPT. I THINK CHATGPT IS A BIGGER THREAT TO GOOGLE THAN THIS TRIAL. CAROLINE: INTERESTING. JENNIFER RIE, SO PLEASED TO HAVE HER HERE. WE WANT TO DIG INTO THE LEGAL IMPLICATIONS. PROFESSOR OF LAW AT VENDOR ABOUT.
WONDERFUL -- AT VANDERBILT. WONDERFUL TO HAVE YOUR PERSPECTIVE. ARE YOU BRACING YOURSELF THAT THEY COULD LAND THIS ONE? REBECCA: ALL ANTITRUST TRIALS ARE HARD TO WIN AND THIS IS NO DIFFERENT. THE GOVERNMENT'S ARGUMENTS ARE GOOD AND IF THEY HAVE A CHANCE IN A WINNING IN ANY CASE THEY HAVE A CHANCE OF WINNING IN THIS ONE. I TAKE ISSUE WITH THE IDEA THEIR TRACK RECORD HAS BEEN BACK.
THEY HAVE LOST A LOT OF CASES IN TERMS OF THE OUTCOME, BUT THERE BEEN IMPORTANT HOLDINGS THAT VINDICATE THE CURRENT ENFORCEMENT ATTITUDE THE FTC AND DOJ IS TAKING. CAROLINE: THIS IS NOT JUST ABOUT WINNING INDIVIDUAL FIGHTS BUT CHANGING THE NARRATIVE OF HOW FUTURE FTC'S AND FUTURE ADMINISTRATIONS MIGHT TACKLE BIG TECH. DO YOU THINK THAT HAS CHANGED? REBECCA: I THINK IT HAS. THERE WAS A CASE 15 YEARS AGO INVOLVING GOOGLE IN WHICH THE COURT SAYS THERE CANNOT BE ANY ANTITRUST FARM IN A MARKET FOR WHICH CONSUMERS DO NOT PAY FOR THE PRODUCT. THAT IS NOT LIKELY TO BE THE HOLDING IN THIS CASE BECAUSE WE REALIZED FREE PRODUCTS ARE NOT SO FREE.
THAT IS ONE EXAMPLE OF HOW IT HAS CHANGED OVER TIME. CAROLINE: IN TERMS OF THE TECHNICALITIES OF THIS CASE, HOW DO YOU THINK THE ARGUMENTS WILL LAND? WHEN YOU ARE HEARING ABOUT THE 0 BILLION BEING PAID BY GOOGLE FOR KEY RELATIONSHIPS WITH PHONE MAKERS, HOW DO YOU THINK THE ALTERNATIVES WILL LAND? REBECCA: I THINK THEY HAVE SOME STRONG ARGUMENTS TOO. THEY WILL ARGUE TWO THINGS. THEY WILL SAY WE ARE BIG NOT BECAUSE WE HAVE THESE EXCLUSIVE CONTRACTS BUT WE ARE BIG BECAUSE WE ARE BETTER.
CONSUMERS HAVE VOTED AND WE WON. WE ARE THE BEST SEARCH ENGINE. THEY WILL ALSO SAY THESE ARE NOT EXPLICIT CONTRACTS. COMPETITION IS A CLICK AWAY. THIS IS A LESS STRONG ARGUMENT AND I THINK THIS IS A LOT LIKE THE ARGUMENT MADE IN THE MICROSOFT CASE. PUT TOGETHER THERE IS AN
INTUITION THAT CONSUMERS LIKE GOOGLE. THEY ARE NOT DOWNLOADING BING AND DUCK DUCK GO. CAROLINE: WE ARE LOOKING AT ALPHABET SHARES UP 54%. IT DOES NOT SEEM LIKE THE ANALYST COMMUNITY IS FRETTING OVER A BIG BREAKUP. THAT IS LARGELY ABOUT WHERE ARTIFICIAL INTELLIGENCE TAKES US. DO YOU THINK THAT SOME RISK DOES NEED TO BE FACTORED IN?
HOW DO YOU THINK PEOPLE ARE BRACING THEMSELVES? REBECCA: AS FAR AS MARKET RISKS I DO NOT KNOW THAT THIS TRIAL POSES A HUGE RISK TO GOOGLE'S BOTTOM LINE. I THINK THEY ARE MORE LIKELY THAN NOT TO WIN. THAT SPEAKS TO THE WEAKNESS OF OUR ANTITRUST LAWS. GOOGLE IS DOMINANT FOR REASONS OTHER THAN THESE EXCLUSIVE CONTRACTS. I THINK A BREAKUP IS UNLIKELY. I THINK OF THE GOVERNMENT MEN'S -- I THINK OF THE GOVERNMENT WIN --I THINK THE TRIAL MATTERS MORE FOR PRESIDENT AND ANTITRUST LAW. CAROLINE: THIS WILL LOW -- THIS WILL ROLL ON. I THINK WILL BE INVITING HER
BACK. CAGE MATCHES HAVE BECOME PART OF A TECHNOLOGY SHOW MORE THAN I ENVISION. LET'S LOOK AT WWE AND UFC COMBINING AND TRADING ON THE NEW YORK STOCK EXCHANGE. I WILL BE DISCUSSING IT WITH ENDEAVOR COO MARK SCHAPIRO. CAROLINE: TIME FOR TALKING TECH. ARM PREPARING FOR THE BIGGEST
IPO OF THE YEAR AND THE CEO IS PITCHING INVESTORS A PIVOT. INSTEAD OF FOCUSING ON ELECTRONICS THAT SELF OR PENNIES, ARM IS DOING COMPLEX DESIGN WORK TAILORED FOR A KEY AREA OF GROWTH. CURRENTLY IT IS LISTING IS OVERSUBSCRIBED 10 TIMES. ALIBABA WILL PUT ARTIFICIAL
INTELLIGENCE AND USER EXPERIENCE AT THE TOP OF ITS PRIORITIES AS ITS NEW LEADERSHIP LOOKS TO CLAIM CUSTOMERS IN MARKET SHARE. TIM SCOTT STRESSED THE APPROACH TO GO AI FIRST WHILE -- SENATORS IN AMERICA WILL QUESTION TOP TECHNOLOGY LEADERS AS CONGRESS QUESTIONS A RAPID RISE OF ARTIFICIAL INTELLIGENCE. IT WILL BE A CLOSED-DOOR INAUGURAL AI FORUM. YOU'LL SEE ELON MUSK AND MARK
ZUCKERBERG ATTENDING TO ANSWER QUESTIONS AND CONCERNS ON THE BURGEONING TECHNOLOGY. MEANWHILE, TALKING OF THOSE INDIVIDUALS, REMEMBER WE WERE TALKING ABOUT CAGE MATCHES? WE ARE TALKING ALSO ABOUT FIGHTING MORE BROADLY. ENDEAVOR COMPLETING ITS TAKEOVER OF WWE AND COMBINING IT WITH UFC TO CREATE A FIGHTING MACHINE CALLED TKO.
EARLIER I DISCUSSED THE NEWS WITH ENDEAVOR CEO AND PRESIDENT MARK SCHAPIRO AND THIS IS WHAT HE TALKED ABOUT IN TERMS OF THE COMPETITION. MARK: THE MARKET COMPLETELY OVERREACTED LAST WEEK. ULTIMATELY THEY SAID THEY WOULD MAKE IT 00 MILLION INVESTMENT IN THE VFL.
WE ARE FANS OF ANY ENTITY THAT SUPPORTS MMA. A RISING TIDE LIFTS ALL BOATS ON THIS ROAD -- ON THIS FRONT. THE UFC IS THE NFL OF COMBAT SPORTS. WE WELCOME IT. I THINK THE OVERREACTION WAS ABOUT FIGHT OR PAY.
IF THERE IS MORE COMPETITION AND MORE BRANDS COMING TO THE TABLE, IS FIGHT OR PAY GOING TO GET OUT OF CONTROL? IT CANNOT BE FARTHER FROM THE TRUTH. THE REAL GROWTH OF UFC HAS BEEN DRIVEN BY HIGH-MARGIN REVENUE STREAMS SUCH AS OUR MEDIA DEALS AND SPONSORSHIPS AND AT THE END OF THE DAY AND A OR PAY INCREASE CAN BE ABSORBED BY THE INCREASES WE ARE SEEING IN REVENUE STREAMS AND RESULTS IN MARGIN INCREASE. CAROLINE: LET'S TALK ABOUT THE BOARD YOU SAID YOU WILL BE CONTROLLING. IT IS A BIT OF A RISK WITH
MCMAHON OF WWE. HOW DO YOU SEE THAT AND HIS REAL DEDICATION AS EXECUTIVE CHAIR? MARK: HE IS VERY SIMILAR TO DANA WHITE. VINCE MCMAHON IS A FOUNDER, A PIONEER, INNOVATOR, UNBELIEVABLE RELATIONSHIPS, AND HE HAS GROWN THE SPORT FROM NOTHING TO BE THE GLOBAL BEHEMOTH THAT IS. I WELCOME HIM BEING EXECUTIVE CHAIRMAN. ARI AND I ARE VERY EXCITED TO PARTNER WITH THEM. WHILE WE'VE NOT BEEN ABLE TO GET IN AND INTEGRATE WE HAVE SEEN A WILLINGNESS TO DO THAT. TERRIFIC COMMUNICATION,
TERRIFIC COLLABORATION, AND I THINK HE RECOGNIZES THE AREAS OF BUSINESS HE HAS UNDER MONETIZED, AND THAT IS WHY THE MERGER, THE PARTNERSHIP. WE CAN TEACH THEM SOMETHING, WHICH MEANS YOU HAVE SEEN ENDEAVOR AND WWE CAN TEACH US SOMETHING. CAROLINE: HE HAS BEEN SUBPOENAED. IS THERE A LEGAL RISK? MARK: FEDERAL LAW ENFORCEMENT AND REGULATORY AGENCIES ARE DOING THEIR INVESTIGATIONS AND THERE WILL BE TO PROCESS AND WE WILL NOT GET INVOLVED. WE WILL STAND BY AND TAKE OUR CUES. HE WILL DO HIS DAY JOB AND IF SOMEONE ELSE TELLS US SOMETHING WE NEED TO DO DIFFERENTLY OR PIVOT WE WILL. GUY: -- CAROLINE: LET'S TALK ABOUT CHARTING A COURSE. IN THIS ECONOMIC ENVIRONMENT
WHERE YOU ARE VERY EXCITED ABOUT THE OPPORTUNITIES TO MONETIZE AND GET MORE BRANDS, BRANDS ARE SCARED TO SPEND MONEY. THE ECONOMY IS VOLATILE. HOW DO YOU SEE THAT? MARK: I SEE THE THREE SECOND SPOT, TRADITION -- THE 32ND SPOT , TRADITIONAL AD BUDGETS ARE BEING COMPROMISED. FROM AN EXPERIENTIAL STANDPOINT, WE HAVE 350 FANS ANNUALLY, WE HAVE ONE BILLION SOCIAL FOLLOWERS. ADVERTISERS WANT ACCESS TO THOSE FANS. CAROLINE: MEANWHILE WE HAVE TO TALK APPLE ONCE AGAIN. WE WILL BE JOINED BY MARIBEL LOPEZ.
CAROLINE: WELCOME BACK. WE ARE GOING TO CHECK IN ON THESE MARKETS. THE DAY AHEAD OF CPI PRINT FOR THE DAY OF MICRO NEWS WHEN IT COMES TO APPLE. NASDAQ 100 OFF TWO THIRDS OF A PERCENT.
THERE ARE CONCERNS ABOUT THE MACRO HEADWINDS AND SOME OF THE READ ACROSS FROM EARNINGS. BITCOIN GETTING A PUSH HIGHER AT 5% ON THE OUTSIDE. 26,300. A LOT OF VOLATILITY IN CRYPTO AS WE ANTICIPATE WHETHER THE BE AS AFFECT SALES BUT FRANKLIN TEMPLETON SEEMS TO BE ADDING ITS WEIGHT INTO THE RUSH TO GET A SPOT. BITCOIN ADDING MOOD MUSIC. I'M LOOKING AT THE COMMODITY
INDEX UP .1%. THAT IS MORE ABOUT THE STRENGTH OF OIL AND OPEC SEEING THEY ARE SEEING TIGHTER MARKETS. I WANT TO SHINE A LIGHT ON WHAT IS HAPPENING WITH ORACLE, WORST DAY SINCE 2002. WE SEE LEVER NEW -- WE SEE REVENUE GROWTH NOT LIVING UP TO EXPECTATIONS. THE MARKET WANTED HIGHER.
WE ARE SEEING INTEL ON THE UPSIDE DIVESTING STAKES IN A NANO FABRICATOR. WE ARE SEEING A 10% STAKE UPLOADED. I AM LOOKING AT APPLE. MAYBE THERE IS THE QUESTION OF HOW MUCH WE ARE WORRIED ABOUT THE HEADWINDS OF CHINA. WE ARE WORRIED ABOUT THE CHIP IMPLICATIONS.
WE ARE OFF 1.5% AS THEY ANTICIPATE THE UNVEILS IN CALIFORNIA. ED: THESE APPLE EVENTS, THE BAR IS HIGH FOR THE MARKET MOMENT. THERE BEEN 12 IPHONE LAUNCH
EVENTS GOING BACK TO 2011. STOCKS ENDED UP DOWN NINE DAYS OUT OF 12. THERE'S SO MUCH MORE TO RECAP. WE ARE 30 MINUTES FROM THE START OF APPLE'S EVENT WHERE WE ARE AFFECTING FOUR VARIANTS OF THE IPHONE 15.
LET'S KEEP THE CONVERSATION GOING. MARIBEL LOPEZ JOINING US ON BLOOMBERG TECHNOLOGY. ONE THING WE HAVE NOT TALKED ABOUT IS THE CAMERA UPGRADE ON THE PRO AND PROMAX. HISTORICALLY CAMERA UPGRADES ARE IMPORTANT. HOW IMPORTANT ARE THEY THIS TIME AROUND? MARIBEL: THEY ARE A VERY POPULAR FEATURE WITH CONSUMERS. THEY ARE LOOKING FOR BETTER CAMERAS AND THIS TIME WE HAVE THE OPPORTUNITY FOR HARDWARE-BASED OPTION COMBINED WITH AI SOFTWARE SO WE EXPECT A BIG LEAP IN PERFORMANCE. PERHAPS WHAT ALL OF THE
WANDERLUST IS ALL ABOUT. ED: CAROLINE AND I HAVE BEEN VERY BUSY FOR THE LAST SEVEN DAYS TALKING ABOUT CHINA. BLOOMBERG REPORTED CHINA'S CENTRAL GOVERNMENT IS EXPANDING A CLAMP DOWN ON THE USE OF FOREIGN HANDSETS, IN PARTICULAR IPHONE FOR GOVERNMENT AGENCIES AND STATE BACKED ENTERPRISES. IS THAT A CONCERN AHEAD OF THE LAUNCH OF THE NEXGEN IPHONE? MARIBEL: WE SEE IT AS STILL POSTURING.
WE THINK IT IS A LONG WAY FROM A WHOLESALE BAN ON APPLE TECH IN CHINA BUT IT IS CONCERNING BECAUSE IT STARTS WITH THE GOVERNMENT AND IT COULD ROLL INTO GOVERNMENT OWNED COMPANIES OR GOVERNMENT-CONTROLLED COMPANIES. THERE IS A LOT OF OPPORTUNITY AND RISK ASSOCIATED WITH THIS. I THINK IT IS TOO EARLY TO CALL AS AN ISSUE FOR IPHONE SALES IN THE NEAR TERM.
CAROLINE: IN THE NEAR TERM IS THE U.S. ECONOMY AT ISSUE WHAT YOU THINK EVERYONE IS STILL WILLING TO PAY UP FOR A MORE HIGH FUNCTIONING AND LIGHTER DEVICE EVEN THOUGH THE PRICE POINT KEEPS GETTING HIGHER? MARIBEL: WHERE WE ARE IN THE MARKET IS APPLE IS TARGETING A PREMIUM CONSUMER. THEY ARE STILL WILLING TO PAY FOR THESE DEVICE UPGRADES. WE ARE EXPECTING A PRICE INCREASE ON THE PROMAX BUT WE ALSO EXPECT THAT PREMIUM BUYER WILL BE WILLING TO PAY THAT. THE REAL RISK FOR APPLE'S IF
THEY DO NOT HAVE THE SET OF SMALLER CHEAPER PRODUCT CATEGORY DO THEY SEED SHARE TO SOMEONE ELSE IN THE MARKET. THE PERSPECTIVE IS WE DO NOT CARE, WE WANT THE PREMIUM BUYER. CAROLINE: WHAT ABOUT THE COMPETITIVE SPACE THAT IS WEARABLES? HOW MUST FOCUS -- HOW MUCH FOCUS DO WE GIVE THE WATCH? MARIBEL: THE WATCH IS SOMETHING WE HAVE CONTINUED TO WAIT FOR THE BIG BANG ON IT IT IS ONLY BROKEN THROUGH A CERTAIN SET OF THE CONSUMER BASE. I THINK WATCH BUYERS ARE VERY ATTRACTED TO THIS PRODUCT AND WILL CONTINUE TO BUY UPDATES TO THIS PRODUCT BECAUSE IT IS PART OF THEIR OVERARCHING HEALTH AND FITNESS GOAL. THE BIG QUESTION IS CAN WE GET
NEW MARKETS INTO IT. THEY MADE A PLAY FOR THE ELDER POPULATION AND A LOT OF PEOPLE HAVE BOUGHT THESE DEVICES FOR THEIR FAMILY MEMBERS. WE STILL SEE OPPORTUNITY. THERE IS STILL AN OPPORTUNITY FOR THE WEARABLE IN THE WORKPLACE. PARTICULARLY AS WE LOOK AT
FIRST-LINE WORKERS. IT CAN PROVIDE HEALTH AND SAFETY. WE HAVE NOT SEEN ANY PENETRATION IN THAT MARKET. 2024 COULD BE THE YEAR WE SEE THE WATCH GET BETTER ENTERPRISE PLAY AS WELL. ED: THE OTHER BUCKET OF THINGS WE EXPECT ARE A MOVE TO USB-C, USB-C INTO THE PRO AIRPODS, AND THE WATCH CHANGES WE JUST OUTLINED. HOW MUCH IMPORTANCE TO PLACE ON THE OTHER BUCKET WE JUST TALKED ABOUT? MARIBEL: THE OTHER BUCKET IS NICE TO HAVE. THEY STILL SELL THE PRODUCTS
WITHOUT THE USB-C, BUT THERE ARE THEY NEED TO ADDRESS. IF YOU'RE GOING TO DO IT IN ONE REGION YOU HAVE TO DO IT IN ALL THE REGIONS. WE THINK IT WILL BE GOOD FOR CONSUMERS AND OPEN UP THE ECOSYSTEM TO A WIDE RANGE OF COMPANIES THAT ALREADY HAVE USB -C PRODUCT. THAT WILL BE GOOD FOR APPLE AND THE PEOPLE WHO BUILT AROUND THE SMARTPHONE SMARTWATCH SYSTEM. ED: THERE IS A PIECE OF DATA THAT HAS BEEN STUCK IN MY HEAD.
TIM COOK TALKED ABOUT SEVERAL QUARTERS OF SLOW DOWN IN THE SMARTPHONE MARKET. SALES DECLINES FOR APPLE. IF YOU LOOK AT IDC, THEY GREW MARKET SHARE, EVEN IN A MARKET PULLING BACK AGAINST SAMSUNG. WHAT DOES THAT TELL YOU OF APPLE'S ABILITY TO GAIN MARKET SHARE? MARIBEL: IT HAD TREMENDOUS RESILIENCE AND WHAT IS LOOKING AS A SMARTPHONE SLOW DOWN AND SMARTPHONE WINTER, SIMILAR TO WHAT WE SEE IN THE PC MARKET. THERE COULD BE DOUBLE-DIGIT DECLINES. WHAT WE ARE SEEING HAPPEN WITH
APPLE IS THE STRENGTH OF THE APPLE ECOSYSTEM IN TERMS OF THE APPLICATIONS AND IN TERMS OF THE COOL FACTOR HAS KEPT THEM IN THIS MORE RESILIENT POSITION. WE EXPECT THAT SINCE THEY ARE THE ONLY PROVIDER OF IOS SOFTWARE THEY WILL HAVE STRENGTH THROUGH THE NEXT SEVERAL QUARTERS DESPITE IT BEING A DIFFICULT MARKET. PERHAPS NOT AS STRONG AS WE WOULD LIKE TO SEE THEM PERFORM, BUT I STILL THINK THEY WILL DO WELL COMPARED TO THE MARKET AT LARGE. CAROLINE: IF THEY NEED TO REMIND US OF THE VISION PRO AND THE COOL FACTOR THERE? MARIBEL: THEY DO BUT THE REALITY IS IT STILL SEEMS LIKE THAT BEING A MARKET THAT WILL AT A TOPLINE AND BOTTOM-LINE DOLLAR TO APPLE IS STILL QUITE A FEW QUARTERS AWAY. I THINK THEY WILL TALK ABOUT IT SO THEY CAN KEEP THE MOMENTUM ALIVE AND GET PEOPLE THINKING ABOUT IT FOR 2024, BUT I'M NOT SURE IT WILL BE A BIG YEAR FOR THAT THIS COMING YEAR. CAROLINE: LASTLY, EVERYONE IS WAITING FOR
A VOID TO BE FILLED BY APPLE. WHAT THEY ARE GOING TO BE DOING ABOUT ARTIFICIAL INTELLIGENCE. HOW THEY WILL BE WEEPING THAT WITHIN THE SERVICES. YOU TALK ABOUT THE POWER OF THE APPLE ECOSYSTEM. I THINK ABOUT FINTECH AND SIRI IN THE WAY AI MIGHT UP THE ANTE. ARE YOU WAITING FOR THAT MOMENT? MARIBEL: I THINK WE ARE STARTING TO SEE THAT MOMENT. WE SEE IN THE CHIPSETS THAT
APPLE PROVIDES. BACK ON THE EARLIER DISCUSSION THIS IS BEEN A BIG CONCERN FOR APPLE. BEING ABLE TO CONTROL SOME OF THE HARDWARE BEHIND THAT ALLOWS BETTER POSITIONING TO EMBRACE THE AI WAVE THAT IS RUSHING OVER US AT THIS POINT. I THINK THEY WILL HAVE A STRONG SHOWING IN AI RELATED PRODUCTS AS A RESULT OF THE POWER OF THE PROCESS. IT KEEPS THE PHONE EXPENSIVE BUT IT KEEPS THE PHONE INTERESTING. CAROLINE:
MARIBEL LOPEZ, GREAT TO HAVE YOUR TAKE. IS IT INTERESTING THAT SHE ENDS THE POINT ON IT KEEPS ALLOWING THEM TO UP THE PRICE POINT BUT IT MAKES IT MORE INTERESTING. ED: IF YOU ARE DAN IVES OF WEDBUSH YOU POINT TO 250 MILLION OLD GENERATION IPHONES AROUND THE WORLD DO FOR UPGRADE AND THAT DRIVES VOLUMES.
IF YOU ARE OUR ANALYST, HE WAS SAYING LOOK AT PRICES. IPHONE 14 PRO IS 999 U.S. DOLLARS. WHAT IF APPLE PRICES THE IPHONE 15 PRO INCREMENTALLY HIGHER OR SUBSTANTIALLY HIGHER THAN THAT? ARE THOSE FIRST ADOPTERS WILLING TO SPEND AT THAT PRICE POINT? ED: AND WHAT DID -- CAROLINE: AND WHAT DOES IT DO FOR THE OVERARCHING AVERAGE SELLING POINT? DOES IT MEAN WE STILL SEE PEOPLE GRAVITATING TO THOSE PROS? DO PEOPLE DECIDE I CAN FORSAKE AN UPGRADE IN MY CAMERA AND SPEED TO THE CHIP. I WOULD RATHER HOLD OUT AND WAIT UNTIL I CAN GET AN IPHONE 15 ON THIS GENERATION.
THE PEOPLE YOU'RE SPEAKING TO IN CALIFORNIA, I FEEL THEY ARE EARLY ADOPTERS, THEY WILL BE IN NO MATTER WHAT. CAROLINE: THEY FOCUS ON THAT -- ED: THEY FOCUS ON THE TECHNOLOGY SO THE PROCESS HAS FASTER SPEED AND THE OTHER BENEFIT IS BETTER BATTERY LIFE AND BATTERY PERFORMANCE. LET'S ALL AGREE THAT BATTERY LIFE ON IPHONE IS KEY. CAROLINE: MR. TWO PHONES, I AM SURE YOU WILL AGREE. WE WILL HAVE A BIT OF A BOOK CLUB MOMENT AND DISCUSS TWO NEW BOOKS DETAILING THE THOUGHTS AND ACTIONS MADE BY POLARIZING FIGURES. SAM BANKMAN-FRIED, ELON MUSK. STAY TUNED. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: IT FEELS AN AGE AGO BUT THE COLLAPSE OF SAM BANKMAN-FRIED'S FTX SENT WAVES ARE THE CRYPTO MARKET IT IS IN TIME FOR A NEW BOOK CALLED NUMBER GO UP. BLOOMBERG'S INVESTIGATIVE REPORTER ZEKE FAUX GOES DOWN A RABBIT HOLE TO LEARN ABOUT DIGITAL TOKENS. IN MY FARE IN SAYING YOU CAME BACK UNDERWHELMED BY THE WHOLE SITUATION? IT FELT AS THOUGH IT WAS FUNNY, ABSURD, BUT AT TIME SHOPPING. REMIND US HOW IT BEGAN. ZEKE: I STARTED OUT FOMO. I SAW MY FRIENDS GETTING BIG SCORES ON TWO POINT. I THOUGHT THE WHOLE THING WAS
ANNOYING -- ON DODGECOIN. I GOT SUCKED IN AND DECIDED TO INVESTIGATE AND I FOUND MYSELF ON A CRAZY ADVENTURE. TWO YEARS LATER I WAS IN CAMBODIA INVESTIGATING CRYPTO FUELED HUMAN TRAFFICKING AND I WAS AT SAM BANKMAN-FRIED'S PENTHOUSE IN THE BAHAMAS JUST BEFORE THE COP SHOWED UP. EVEN THOUGH I RESISTED I AM GLAD I WENT DOWN THE CRYPTO RABBIT HOLE. CAROLINE: I IMAGINE WHEN YOU START TO DESCRIBE WRITINGS AROUND HUMAN TRAFFICKING THOSE ARE THE MOMENTS YOU NEED BUT DO NOT WANT. WHAT WAS THE DARK UNDERBELLY OF WHAT WAS HAPPENING? ZEKE: YOU HEAR THINGS THAT CRYPTO MIGHT BE USED FOR MONEY LAUNDERING OR OTHER ILLICIT PURPOSES STOP I FOUND THEIR WHOLE OFFICE PARKS IN CAMBODIA WHERE THERE ARE FLOOR AFTER FLOOR OF PEOPLE WORKING AROUND THE CLOCK UNDER THREAT OF TORTURE, SENDING SPAM TEXT MESSAGES TO PEOPLE IN RICHER COUNTRIES TRYING TO TRICK THEM INTO INVESTING IN CRYPTO AND OTHER CRYPTO AND GAMBLING SCAMS. CAROLINE:
WAS THERE ANY REPERCUSSION? ULTIMATELY WE HAD TO SEE A BLOW UP OF GARGANTUAN PROPORTIONS FOR REGULATORS TO START TO BECOME INVOLVED AND DIG MORE DEEPLY IN WHAT ULTIMATELY WAS THE FTX SLOW DOWN. WHAT ABOUT HUMAN TRAFFICKING? WHO IS LOOKING AT THAT? ZEKE: IT STARTED GETTING MORE ATTENTION FROM INTERPOL AND THE U.N. IT HAS BEEN IGNORED. WHEN I WENT TO TALK TO SAM BANKMAN-FRIED FOR THE LAST TIME AT HIS APARTMENT, I WAS LIKE HAVE YOU READ ABOUT ANY OF THIS, DO YOU REALIZE SOME OF THESE CRIMINALS ARE SENDING MONEY TO YOUR EXCHANGE? HE IS LIKE, "HM, THAT SOUNDS BAD." CAROLINE: GO INTO HIS PSYCHE. YOU SAW HIM AT THE MOST
EXTRAORDINARY MOMENT BUT WHAT YOU THINK HIS OVERWHELMING DRIVE WAS. THE TRIAL IS HAPPENING RELATIVELY SOON AND HE IS DEEMING HIMSELF NOT GUILTY. ZEKE: BUT I MET HIM I WAS FASCINATED THAT WHEN HE WAS A TEENAGER HE WAS LIKE I WANT TO DO SOMETHING GOOD FOR THE WORLD. SOMEBODY CONVINCED HIM THE BEST THING TO DO WOULD BE TO GET RICH. 10 YEARS LATER HE IS ONE OF THE RICHEST GUYS IN THE WORLD, AT LEAST ON PAPER. SOME PEOPLE THINK IT WAS ALL A
LIE, HE WAS A MONSTER THE WHOLE TIME. I THINK THIS BELIEF IN HIS OWN SELF-RIGHTEOUSNESS LED HIM TO TAKE INSANE RISKS AND LED HIM TO WHERE HE IS TODAY. CAROLINE: HUBRIS. ULTIMATELY THE REASON CRYPTO IS
A MEDIA GIFT THAT KEEPS ON GIVING AN EXTRAORDINARY RABBIT HOLE IS IT A CELEBRITY MEETS VAST QUANTITIES OF CASH MEETS OVERNIGHT SUCCESS MEETS RIDICULOUS ACRONYMS ALL BOARDED INTO ONE. THERE'S A LOT OF SHOP IN FREUD AND -- YOU BOUGHT AT ONE POINT. HOW DO YOU THINK THIS ENDS UP PLAYING OUT? ULTIMATELY EVERYONE LOSES MONEY? ZEKE: EVERYONE WHO HAS SEEN THE LAST COUPLE OF YEARS, IF YOU PAID ANY ATTENTION IT IS HARD TO SAY LET'S RUN IT BACK AND WAIT FOR THE NEXT CYCLE. I THINK THAT IS PRETTY UNLIKELY. IT WAS FUN TO BE A PART OF IT THIS LAST TIME.
I GOT TO GO TO APE FEST WHICH WAS A WEEKLONG PARTY FOR PEOPLE WHO OWN THESE UGLY CARTOON JPGS. CAROLINE: BUT THAT IS CREATED LOYALTY, THAT IS GRADING A CLUB. YOU THINK THAT IS DEAD? ZEKE: FOR $20,000 YOU GOT TO MILL AROUND WITH DRUNK DUDES. I GOT TO CONFRONT JIMMY FALLON ABOUT THE INVESTMENT ADVICE HE GAVE THESE PEOPLE. I WAS HAPPY I WENT. MOST PEOPLE WILL BE MORE MAD ABOUT THE MONEY THEY ARE USING THAT HAPPY THEY GOT TO SEE AMY SCHUMER TELL SOME JOKES. CAROLINE: MAYBE JIMMY FALLON WAS.
PLEASED YOU ARE THERE EITHER BUT I'M GLAD YOU WERE THERE TO TELL THE STORY. WHAT AN AMAZING READ. ZEKE FAUX, WE THANK HIM. "NUMBER GO UP" IS AVAILABLE FOR PURCHASE. THE BIOGRAPHY OF ELON MUSK IS SHEDDING LIGHT ON HIS BEHAVIOR. WALTER ISAACSON'S ELON MUSK COMES OUT THIS WEEK. ANYTHING SHOCKING IN THERE AS
SOMEONE WHO COVERS THE INS AND OUTS OF ELON MUSK DAY IN AND DAY OUT? >> WHEN YOU START TO COVER ELON MUSK YOU REALIZE YOU SHOULD NOT BE SHOT. THERE WERE A FEW ANECDOTES. HE HAD MORE ADVISORS THAN I REALIZED. PEOPLE LIKE DAVID SAYS LOVE OF WARNER BROS. DISCOVERY ADVISED HIM THAT YOU ARE ENGAGING IN SELF-DESTRUCTIVE BEHAVIORS THAT ARE NOT HELPING ADVISORS SPENT MONEY ON YOUR PLATFORM AND THEY HAD AN HOUR-LONG CONVERSATION AND HE WAS LIKE YOU SHOULD FOCUS ON VIDEO AND MAKE YOUR ADS BETTER. I THINK ELON MUSK IGNORED THAT
BECAUSE HE CONTINUED TO SEND OUT TWEETS AND THINGS THAT IRKED ADVERTISERS. I DID NOT NOTE SAYS LOVE ADVISED HIM AT THAT POINT. CAROLINE: HOW MUCH OF THIS IS ABOUT LEADERSHIP STYLE? HOW MUCH WILL THIS INFORM US ABOUT WHAT COULD BE HAPPENING WITHIN THE BUSINESS AT THE MOMENT? AISHA: IT GIVES YOU SOME SENSE OF HOW HE IS AS A LEADER. THERE ARE A LOT OF STORIES OF HIM GOING OUT AND TAKING CHARGE WERE MAKING ERRATIC DECISIONS, WHICH WE ALL THOUGHT HE WAS DOING THAT AND NEW FROM WHAT HE WAS DOING WITH TWITTER, WHICH IS NOW X. YOU START TO SEE BEHIND THE
SCENES HOW MAY PEOPLE WERE SAYING YOU SHOULDN'T DO THAT, EVEN DOWN TO HIS OWN BROTHER WAS SAYING I DON'T KNOW YOU SHOULD TWEET THAT AND HE WAS NOT ABLE TO'S SLEEP AT NIGHT BECAUSE HE WAS WORRIED ABOUT WHAT ELON MUSK WOULD TWEET. THERE WERE MORE PEOPLE IN HIS INNER CIRCLE ADVISING HIM AND HE MADE HIS OWN DECISION. CAROLINE: DOES IT THEREFORE DRIVE AN INVESTOR BASE, LOOKING FOR SOMEONE COMPLETELY HANDS ON THE WHEEL OF TESLA AND SHOWING HE IS DOING WHAT IT NEEDS TO BE DOING WHEN IT COMES TO AN INCREDIBLY VALUABLE PRIVATE COMPANY THAT IS SPACEX? AISHA: I THINK INVESTORS ARE PROBABLY MIXED. IT SOUNDS LIKE SOME VENTURE CAPITALISTS HE IS CLOSE TO LIKE THAT ELON MUSK WAS WILLING TO BREAK THE RULES AND DO THINGS PEOPLE SAID CANNOT BE DONE. OTHER PEOPLE WERE LIKE I DO NOT
WANT TO DEAL WITH THIS. IT IS TOO ERRATIC AND I CANNOT TRUST WHAT DECISION HE WILL MAKE. THE CHAIR OF TESLA WAS LIKE WE ARE CONCERNED ABOUT HOW YOUR WORK ON TWITTER AND X IS DISTRACTING FROM WHAT YOU'RE ARE DOING ON TESLA. IT IS A MIX. CAROLINE: IS A MIX. HE HAS X AI. A FASCINATING DEEP DIVE ON THE
BOOK MANY WILL BE EYEING UP. COMING UP, WE GO BACK TO CUPERTINO AT THE APPLE EVENT. ED LUDLOW HAS THE LATEST ON THE UNVEILING.
CAROLINE: THE APPLE WANDERLUST EVENT STARTS IN A FEW MINUTES. 1:00 EASTERN TIME, SIX MINUTES. YOU ARE LIVE IN CUPERTINO. GETTING EXCITED? ED: I AM GETTING EXCITED. THIS IS A BIG EVENT AND FEELS
LIKE A MUCH BIGGER EVENT THAN WWDC WHEN WE GOT THE VISION PRO. WWDC IS ON THE DEVELOPER SIDE. THIS IS ABOUT I FOUND. IT TOUCHES PEOPLE OVER THE WORLD. WE KNOW WHAT IS COMING. FOUR VARIANTS OF THE IPHONE 15. WHAT WE DO NOT KNOW IS ABOUT
PRICING. WHAT IF THEY RAISE PRICES IN A BIG WAY? CAROLINE: IT DOVETAILS INTO A MOMENT WHERE THEY HAVE BEEN LOOKING FOR NEW TYPES OF BUYERS. A MIDDLE-CLASS GROWING IN INDIA BUT THAT SPEAKS TO THE SUPPLY CHAIN CHANGES WE SEE AT HAND AS WELL. ED:
THIS WAS REALLY IMPORTANT BLOOMBERG REPORTED. THIS WILL BE THE FIRST LAUNCH WHERE IN INDIA ASSEMBLED IPHONE WILL HIT THE MARKET IN INDIA AND OTHER MARKETS AROUND THE WORLD STRAIGHTAWAY. TRADITIONALLY IT IS MADE IN CHINA AND THEN SIX MONTHS TO NINE MONTHS LATER THE LOWER SPEC BASED MODELS OF IPHONES START PRODUCTION IN FOXCONN FACILITIES IN INDIA. WE ARE HEARING THEY ARE
ACCELERATING THAT, WHICH SPEAKS TO THE SUPPLY CHAIN STORY. CAROLINE: AND SHOWS THE FOCUS ON DIVERSIFYING CONSUMER BASE. AT THE MOMENT WE SEE HEADWINDS COMING IN THE CHINESE BUYER.
YOU WILL BE TELLING THIS GLOBAL STORY BUT IT IS AN INVESTOR-BASED STORY. WE WILL BE ALL ACROSS IT. WE HAVE OUR COVERAGE CONTINUING. IT IS A BLOOMBERG TECHNOLOGY EXTENDED SPECIAL EDITION. WILL BE FOCUSED ON APPLE AS WE COUNT YOU DOWN TO THE ANNUAL PRODUCT LAUNCH A FEW MINUTES AWAY. LIVE FROM NEW YORK IN CUPERTINO
AND THIS IS A FOCUS ON A RAFT OF PRODUCTS, THE HIGH END, THE OVERALL 15, WHAT THEY WILL HAVE ON OFFER, THE CAMERAS, THE CHIPS, AND A FOCUS ON THE SMARTWATCH. FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. ♪ >> FROM THE HEART ORB INNOVATION MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: I'M CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: AND I'M IN CUPERTINO, THE APPLE CAMPUS AND THIS IS A SPECIAL BLOOMBERG TECHNOLOGY AND EVERYTHING IPHONE AT THE WANDERLUST EVENT. CAROLINE: THE FOCUS ON AIRPODS ON THE
WATCH IS WELL WITH SO MUCH TO DRIVE FORWARD AS WELL AS THE HEADWINDS WHEN IT COMES TO CHINA AND SUPPLY CHAIN AND THE IMPORTANT SHIPS THAT I KNOW YOU LOVE SO MUCH. WE GOT THE PERSON JUST PERFECT PERSON TO SET US UP, TOM GILES JOINS US WITH WHAT WE ANTICIPATE WITH A FULLY FLEDGED VIEW OF WHAT WILL BE DELIVERED. HOW MUCH IMPORTANCE IS THIS TO AN INVESTOR BASE? >> YES. SAY THAT AGAIN? CAROLINE: WHAT ARE YOU THINKING ABOUT IN TERMS OF HOW IMPORTANT THIS MOMENT IS TO THE INVESTORS AND THE CONSUMERS? >> THIS IS A HUGE MOMENT FOR APPLE. THERE'S BEEN A LOT OF
ANTICIPATION FOR THIS EVENT. THIS YEAR, IS PARTICULARLY HIGH AND THAT'S FOR A COUPLE OF REASONS. WE EXPECT THIS TO BE A MAJOR UPGRADE IN A LOT OF AREAS, CAMERA CHIP, THIS IS APPLE'S MOST IMPORTANT DEVICE.
THEY ARE GOING FOR THE GUSTO HERE BUT THERE IS A LOT OF UPGRADES AND CHANGES IN THIS IS NOT INCREMENTAL. IN THAT REGARD, THIS IS HUGELY IMPORTANT. THE BACKDROP HERE IS A DECLINE IN GLOBAL SMARTPHONE DEMAND. THAT'S SOMETHING APPLE IS HAVING TO FIGHT AGAINST.
CAROLINE: I THINK WE ARE HAVING TECHNICAL ISSUES BUT I WANT TO DRIVE IT HOME IN TERMS OF WE UNDERSTAND THE POWER OF THE IPHONE AND WE UNDERSTAND THE $200 BILLION OF REVENUE PER YEAR. THE PRICE POINT MAY WELL RISE SO HOW MUCH CAN THEY INSURE A CONSUMER WOULD GO THERE? I THINK WE'VE LOST TOM GILES UNFORTUNATELY. IN CUPERTINO, THERE'S GOT TO BE A LOT OF EXCITEMENT WITH A LOT OF PEOPLE WAITING WITH BATED BREATH FOR THE UPGRADES. ED: I WILL REMIND OUR AUDIENCE THAT THERE IS A REASON APPLE TREE RECORDS THIS PRESENTATION AND RAISE IT LATER TO GET RID OF THOSE TECHNICAL ISSUES. DELIGHTED TO BE JOINED ON THE APPLE CAMPUS BY AN ANALYST.
WE'VE GONE THROUGH ALL THE SPECS WE ARE EXPECTING IN A FOCUS ON THE HIGHER END PROMAX AND UP DATED SILICON AND CAMERA. WHAT IS MOST IMPORTANT TO RETURN APPLE TO GROWTH? >> THERE IS STILL A LITTLE BIT OF SPECULATION BUT I THINK THERE'S GOING TO BE SOME KIND OF FEATURE WE HAVEN'T HEARD ABOUT YET BECAUSE IT'S CALLED WANDERLUST SO SO THIS MEANS TRANSLATED TO BE THE DESIRE TO TRAVEL AND I THINK WE ALL HAVE THIS DESIRE TO TRAVEL AREA SINCE THE PANDEMIC AND WE HAVE MOST OF IT BEHIND US. I THINK THAT WILL BE SOMETHING AROUND CERTAIN SENSORS THAT WILL MAKE WORK OUT AND TRAVELING AND MOVING AROUND EVEN MORE PRECISE AND MORE ACCURATE AND MORE ENGAGING BASICALLY.
THERE WILL BE LOTS AROUND PRECISE SENSORS AND THOSE KIND OF THINGS. ED: THEY ARE SHOWING VIDEO WITH PEOPLE USING OLDER GENERATIONS OF IPHONES. THE IPHONE SEEMS TO BE EVERYTHING.
EXPLAIN HOW IMPORTANT THE REFRESH CYCLE IS FOR APPLE. >> APPLE TARGETS DIFFERENT USER GROUPS. ONE USER GROUP IS THE EARLY ADOPTERS THAT USUALLY OPERATE THEIR PHONE EVERY TWO YEARS OR EVERY YEAR. THAT'S THE GROUP THEY TARGET WITH THE HIGH END DEVICES. THEN YOU ALSO HAVE A VERY LOYAL USER GROUP THAT IS THE IN THE MID RANGE AND MORE ON THE BUDGET SIDE THAT SOMETIMES THEY UPGRADE ONLY AFTER FIVE YEARS. AS LONG AS YOU CAN UPGRADE THE OPERATING SYSTEM.
THIS EVENT IS USUALLY AROUND THE HIGHER END AND THE MIDRANGE TYPE OF DEVICES AND USERS. FOR THOSE USERS THAT MAY HE WAIT LONGER FOR UPGRADING, APPLE ALSO HAS SOME INTERESTING PRICE OFFERS USUALLY WITH THOSE THAT HAVE BEEN INTRODUCED EARLIER IN THE YEAR. OR MAYBE EVEN LAST YEAR. ALL OF THIS WILL BE IMPORTANT, IT'S THE WHOLE THING ABOUT APPLE TARGETING THE DIFFERENT USER GROUPS BUT ALSO REALLY PAYING ATTENTION TO THESE DIFFERENT SEGMENTS AND TRYING TO MAKE THEM HAPPY. ED: YOU ARE WATCHING BLOOMBERG
TECHNOLOGY SPECIAL COVERAGE OF THE APPLE WANDERLUST EVENT. WE EXPECT IPHONE 15 AND I HAVE AN ANALYST WITH ME AND IN THE EARLY STAGES, THE PRESENTATION STARTED AND THEY'VE BEEN TALKING ABOUT HOW APPLE DEVICES HELPED CONSUMERS AND USERS AND USERS IN MEDICAL EMERGENCY SITUATIONS. YOU MENTIONED SENSOR TECHNOLOGY AND WE KNOW THERE ARE SOME UPDATES TO WATCH BUT TALK ABOUT THE HEALTH CARE SEGMENT AND THE EMERGENCY CASE SCENARIO WITH APPLE. >> AT WWW. D.C. WE SAW SOME INTERESTING
DEVELOPMENTS WITH IOS AND THE ABILITY TO SUPPORT PEOPLE WITH THEIR PHYSICAL HEALTH AND ALSO THEIR MENTAL HEALTH. WE ARE SEEING APPLE EXPANDING SIGNIFICANTLY INTO A DIFFERENT AREA. IT'S ABOUT OUR BEHAVIOR, OUR HEALTH AND MENTAL AND PHYSICAL HEALTH. IT'S PART OF OUR EVERYDAY LIFE
AND WE NEED TO EMBRACE IT WHERE WE CAN USE SPECIFICALLY THE APPLE DEVICES TO SUPPORT US IN OUR JOURNEY FOR HEALTH. ED: I CAN CONFIRM THAT TIM COOK IS SPEAKING ONSTAGE AND HE SAID HE WILL TALK ABOUT THE APPLE WATCH AN IPHONE WHICH IS NOT SURPRISING. ONE THING THAT WILL IMPACT CONSUMERS EVERYWHERE IS THE MOVE TO U.S. BC. IT'S THE EUROPEAN UNION MANDATE AT THE END OF 2024. HOW WILL THAT AFFECT APPLE? >> IT HAS A BIG EFFECT ON APPLE BECAUSE THEY HAD TO MAKE A TECHNICAL AND PHYSICAL CHANGES TO THE DESIGN AND BASICALLY TO THE ENTIRE ROADMAP OF DEVICES THAT WILL BE COMING. THERE WILL BE MORE ON TOP OF THAT.
CHANGES WILL BE MADE BECAUSE THE EU WAS ALSO LOOKING FOR BETTER REPAIR ABILITY OF DEVICES. APPLE HAS TO INVEST IN NEW DESIGNS TO MAKE THOSE DEVICES MORE REPAIRABLE AND MAKE SPARE AIRPODS AVAILABLE AND MAKE THEM AFFORDABLE TO USERS SO YOU CAN DO YOUR OWN REPAIR IF YOU WANT. THAT IMPACTS APPLE AND THE ENTIRE INDUSTRY, REALLY. ED: TIM COOK IS TALKING ABOUT WWDC, THE ULTRA CHIP THAT WENT INTO THE 15 INCH MAC BOOK AND SAID THE FEEDBACK AND RESPONSES BEEN FANTASTIC. WE WILL SEE IF THE FEEDBACK AND
RESPONSES THAT GOOD FOR THE NEXT GENERATION OF IPHONE WHICH IS WHAT WE ARE FOCUSED ON AND IT'S SO GOOD TO HAVE YOU HERE IN REAL-TIME DURING THIS APPLE WANDERLUST EVENT. BACK TO YOU. CAROLINE: SO GREAT TO HAVE THE ON THE FEELING SENSE OF THIS MOMENT. WE ARE HEARING FROM TIM COOK SAYING APPLE IS STILL ON TRACK TO SHIP ITS VISION PRO IN EARLY 2024. WE ARE ANTICIPATING THE ANNOUNCEMENTS REGARDING THE WATCH AND THE AIRPODS AND THE NEW WAYS YOU CAN CHARGE THEM THROUGH USB AND WE ARE WAITING ON THE IPHONE 15 RANGE. THIS IS ABOUT CONSUMERS BUT IT'S ALSO ABOUT REALITY AND THEY'VE GOT HEADWINDS AS THEY ARE WORRIED ABOUT THE CHINESE CONSUMER AND SUPPLY CHAINS AS WELL. HOW WILL THEY MANAGED TO OFFSET THAT NARRATIVE AT THIS MOMENT? >> DON'T FORGET, THEY'VE ALSO GOT HUAWEI IN THE MIX.
THEY ARE OUT WITH A NEW PHONE AND A NEW OPERATING SYSTEM. THEY ARE GATHERING A LOT OF MOMENTUM. THERE IS A LOT THEY HAVE TO DO HERE TODAY TO PROVE THAT THIS IS A REALLY SPECIAL UPGRADE. THIS ISN'T YOUR AVERAGE INSTANCE WHERE THEY ARE ADDING A FEW THINGS AROUND THE EDGES. THERE ARE SUBSTANTIAL CHANGES IN YOU TALK TO MARK BERMAN, HE SAYS THIS IS A MAJOR SET OF UPGRADES AND THAT'S WHAT APPLE IS DOING TO TAKE THE ATTENTION OFF THE COMPETITIVE THREAT, THE PRESSURE FROM THE CHINESE GOVERNMENT ON USING THE IPHONE IN THAT COUNTRY, THE PRESSURE FROM HUAWEI. THIS IS TIM COOK'S MOMENT TO TAKE YOUR ATTENTION OFF OF THAT AND SHOW ONCE AGAIN THAT WE ARE ADDING SPECIAL FEATURES TO THE IPHONE, THE FASTER CHIP. THE TELEPHOTO LENS WITH THE
CAMERA THAT'S LETTING YOU TAKE THESE UP CLOSE PHOTOS WITH THE IPHONE, THINGS YOU CAN'T DO WITH OTHER DEVICES. THIS IS HIS MOMENT TO REMIND PEOPLE THAT WE ARE DOING THINGS THAT ARE REALLY SPECIAL WITH THIS CAMERA AND REALLY IMPORTANT BECAUSE IT MAKES UP HALF THE COMPANIES REVENUE. CAROLINE: ANALYSTS STILL SEEM CONVINCED BY ALL OF THAT. I'M LOOKING AT 35 BY RATINGS. THERE IS A 15% UPSIDE POTENTIAL. WE HAVE HAD THIS NOT TO THE
OVERALL MARKET CAPITALIZATION OVER THE LAST FEW TRADING DAYS. ULTIMATELY, HOW IMPORTANT IS THE FACT THAT THEY CAN'T JUST GO UP ON PRICE POINT BUT HOW RESILIENT IS THE U.S. CONSUMER NEED TO BE AT THIS POINT? >> APPLE HAS TO WALK A FINE LINE WITH THE WAY THEY PRICE THIS DEVICE. THAT'S WHY THEY'VE GOT MULTIPLE DEVICES THAT WILL BE GETTING UPGRADES TODAY AND EXACTLY WHERE THEY WILL TINKER WITH PRICING, HOW MUCH DO THEY ADD THE HIGH END FEATURES TO THE LOWER END DEVICES, THIS IS THE KIND OF THING THAT APPLE SPENDS A LOT OF TIME THINKING ABOUT VERY STRATEGICALLY. THEY TEND TO BE VERY SMART ABOUT IT, NOT LOADING TOO MUCH INTO LOWER END DEVICES SO THEY CAN STILL SELL THEM AT A LITTLE BIT OF A DISCOUNT TO THE HIGHER END DEVICES. HOW DO THEY KEEP THOSE MARGINS GOING IN THE RIGHT DIRECTION? THERE IS GROSS MARGINS ARE GOING IN THE RIGHT DIRECTION SO HOW DOES APPLE DO THIS PARTICULAR AT A TIME WHEN YOU ARE SEEING OVERALL DEMAND FOR SMARTPHONES GLOBALLY DROPPING OFF.
Q2 WAS A TOUGH QUARTER BOTH FOR THE IOS AND ANDROID. THAT'S THE GOOGLE OPERATING SYSTEM THAT'S IN SO MANY GLOBAL DEVICES. SOMETHING THAT APPLE DID IN THE SECOND QUARTER WAS THEY WEATHERED THE STORM BETTER THAN ANDROID. THAT'S WHAT TIM COOK WANTS TO SEE APPLE CONTINUE TO DO GOING FORWARD. CAROLINE: WE WILL HAVE SO MUCH MORE FROM TIM COOK AND WE THANK YOU SO MUCH REGARDING THIS BIG UNVEIL. IT'S OFFICIAL, THE S9 OR THE
WATCH HAS ARRIVED. WE WILL HAVE WHAT THEY CALL MAJOR PERFORMANCE IMPROVEMENTS. JEFF WILLIAMS IS ON THE STAGE OF THE MOMENT INTRODUCING THE NEXT GENERATION OF THE APPLE WATCH.
IT WILL INCLUDE THE NEW CHIP AND THE MOST POWERFUL APPLE WATCH CHIP TO DATE. WE WILL TALK ABOUT THE INTRICACIES OF THIS WITH RAY WANG, HIS TAKE ON THE BIG ANNOUNCEMENT AT THE APPLE EVENT. THIS IS BLOOMBERG TECHNOLOGY. ED: THE LATEST HEADLINES COMING OUT OF THIS APPLE WANDERLUST EVENT CENTER ON THE NEXT GENERATION APPLE WATCH, THE S9 SERIES WITH AN UPDATED PIECE OF SILICA AND S9 CHIP. 30% MORE POWERFUL GPU. IN TERMS OF THE THINGS THIS MAN ITSELF IT WILL -- WITH, DICTATION IS MORE ACCURATE. THAT'S ALL DAY BATTERY LIFE AND IT'S BASICALLY THE SAME AS PRIOR GENERATIONS. ALSO THE ABILITY TO ENGAGE WITH SIRI DIRECTLY WITHOUT LATENCY IN A MORE SECURE METHOD, THAT'S WHAT THEY ARE LEANING IN ON WITH HIS LATEST WATCH. CAROLINE:
THIS INTEGRATION WITH THE HOPE UPON IT, YOU ADJUST YOUR CONTROL AND THEY GOT TO BE PUSHING THE WAY IN WHICH THEY ARE STANDING OUT FROM A CROWDED SPACE WHEN IT COMES TO CONNECTED DEVICES, THE WAY IN WHICH WE MEASURE OUR HEALTH. THERE HAVE BEEN OTHER VARIATIONS AS WELL. ED: SOMETHING COOL THEY JUST ANNOUNCED WITH THE LATEST GENERATION WATCH SERIES NINE IS GESTURE CONTROL. WITH A ONE HAND GESTURE, YOU CAN ENGAGE WITH THE WATCH, IT'S CALLED DOUBLE TAP. I DON'T KNOW HOW ANITA MOVING THAT IS BUT WE WILL FIND OUT BECAUSE THERE -- IT HAS A STRONGER PERSPECTIVE AND THAT'S RAYWANG, THE CEO AND PRINCIPAL ANALYST, GOOD TO SEE YOU IN CUPERTINO. BASED ON WHAT I JUST REPORTED ON THE APPLE WATCH SERIES NINE, WHAT DO YOU MAKE OF THAT? >> WELCOME TO MY HOMETOWN TOWN OF CUPERTINO.
THE IMPORTANT PIECE IS THAT THEY ARE GOING FROM SILICON TO CHIP TO MANAGE THE BATTERY LIFE. ALL THOSE ARE IMPORTANT ESPECIALLY WHEN YOU THINK ABOUT WHAT APPLE IS KNOWN FOR. THEY HAVE CONTROL OF THEIR ECOSYSTEM AND THAT STARTS WITH THE SILICA. THEY HIGHLIGHT THAT ON THE
WATCH AND WE ARE WAITING TO SEE IF THERE WERE OTHER THINGS THAT WILL BE MONITORED, OTHER INDICATORS THAT WILL DRIVE PEOPLE TO GO TO THE ULTRA IN THE SERIES NINE WATCH. ED: THE EXPECTATIONS IS THAT WE WOULD HAVE TWO SIZE VARIANCE OF THE NINE. THESE ARE THE EARLY EXCHANGES OF THIS EVENT. YOU ARE RIGHT, WE ARE WAITING FOR FORBEARANCE OF THE IPHONE 15. HOW IMPORTANT IS IT THAT THE HARDWARE UPGRADES ON THE PRO SIDE ARE SUBSTANTIVE TO DRIVE AND UPGRADE CYCLE? >> WE ARE TALKING ABOUT ONE BILLION IPHONES THAT NEED TO GET 5G OVER THE NEXT THREE YEARS.
AS WE MOVE THOSE IN THAT SUPER CYCLE, IS THE TELEPHOTO LENS ENOUGH TO GET YOU THERE. IT'S A REGULATORY REQUIREMENT BUT WILL IT BE SOMETHING AROUND THE BATTERY LIFE OR A FEATURE OR IS IT SERVICE THAT WILL TAKE PEOPLE TO THE NEXT LEVEL OF USING THE IPHONE? BUT THE BATTERY LIFE AND THE CHIPS MAKE A BIG DIFFERENCE AND POTENTIALLY THE 48 MEGAPIXEL CAMERA MAY MAKE THE DIFFERENCE. ED: LET'S CALL IT THE BASE MODEL SERIES NINE HAS DOUBLED THE BRIGHTNESS, THAT GOES BACK TO THE LAST GENERATION OF ULTRA. WHAT IS THE STRATEGY FROM APPLE? THEY ARE TAKING LAST YEAR'S TECH AND PUTTING INTO THIS YEAR'S RACE MODELS.
>> IF YOU WANT THE PRO OR THE ULTRA AND YOU WANT THE TOP LEVEL, YOU WILL PAY A LITTLE BIT MORE AND YOU WILL SEE THAT COME INTO DIFFERENT MARKETS. WE TALK ABOUT INDIA AND YOU MIGHT HAVE DIFFERENT PRICE POINTS GIVEN THE DEMOGRAPHICS. YOU WILL HAVE A DIFFERENT PRICE POINT IN THE U.K. AND A DIFFERENT PRICE POINT IN THE MIDDLE EAST. APPLE IS A LUXURY BRAND AND THAT'S WHAT'S DRIVING THEIR CAPABILITY. RIGHT NOW, APPLE IS TALKING ABOUT THEIR ENVIRONMENTAL GOALS AND THE PROGRESS IN SUSTAINABILITY AND MATERIALS.
IS THAT AN IMPORTANT FACTOR FOR YOU? >> ESPECIALLY WHEN YOU THINK ABOUT THE CIRCULAR ECONOMY AND HOW MUCH ENERGY IS REQUIRED TO CREATE IT DEVICE AND HOW MUCH YOU BRING THAT BACK IN. APPLE'S BEEN A LEADER IN SUSTAINABILITY AND ITS NOT JUST THE BATTERY BUT IT'S ALSO THE RECYCLING PROCESS. I PROBABLY TURNED IN A COUPLE OF PHONES TO DO THAT. ED: FORGET WHAT WE'VE REPORTED AND WHAT WE THINK IS COMING. WHAT DO YOU WANT TO SEE IN
THESE HIGHER AND I 15 PRO AND PROMAX? >> I THINK PEOPLE ARE LOOKING FOR BETTER FEATURES, THE ABILITY TO TIDIES TO MORE DEVICES AND LOOKING FOR THE EVENTUAL INTEGRATION BETWEEN MAC OS AND IOS AND THE WATCH OS AND MAYBE THERE IS A SNEAK PEEK INTO VISION PRO WHAT WILL TAKE IS INTO THAT AS THE REPLACEMENT FOR THE MAC. THAT INTEGRATION IS ALWAYS BEEN AND APPLE FANS DREAM THAT THEY WILL BRING THOSE THINGS TOGETHER. ED: RAY WANG, JOINING US IN REAL TIME HERE IN CUPERTINO, THE APPLE EVENT IS UNDERWAY. CAROLINE:
AND THERE IS A FOCUS ON THE ENVIRONMENT AND SUSTAINABILITY. THE LATEST HEADLINE AS IT WILL BE PHASING OUT ITS LEVER FROM ITS IPHONE CASES AND MANY TOOK THAT CUE FROM OTHERS. WE WILL HAVE MORE COMING TO YOU, THE ANALYSIS FROM APPLE AND THE VICE PRESIDENT WILL BE JOINING THE SHOW LIVE FROM CUPERTINO FROM NEW YORK, WE'VE GOT IT ALL COVERED. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: AND SO WE HAVE THE NEWS COMING FROM THE APPLE EVENT IN CUPERTINO THICK AND FAST. THE WATCH SERIES NINE, WE WILL HAVE THE ABILITY TO USE A HAND GESTURE, DOUBLE TAP, INTEROPERABILITY. THIS IS ABOUT BEING FASTER AND MORE POWERFUL AND WE ARE SEEING SOME NUANCED ANNOUNCEMENTS AROUND PERHAPS THE WIND DOWN OF ANY LEVER WHEN IT COMES TO BEING USED IN IPHONE CASES SO IT'S ABOUT SUSTAINABILITY. WE AWAIT THE IPHONE 15.
YOU ARE EXPECTING PERHAPS AN ULTRA VERSION OF THE WATCH SO WHAT MORE DO YOU ANTICIPATE? >> I EXPECT SIGNIFICANT INNOVATION AND IMPROVEMENTS ON THE LINEUP ESPECIALLY WITH THE IPHONE AND THE IPHONE PRO. WE HAVE HEARD ABOUT THE SUSTAINABILITY EFFORTS. IT WILL BE DISRUPTIVE TO HAVE THE DEVICE AS A SERVICE OFFERING WHERE YOU HAVE A BUNDLE OF HARDWARE, CONTENT AND SOME CIRCULARITY SERVICES. THAT WOULD BE A GREAT STEP. I'M NOT SURE WE WILL HEAR THAT SO IS IT GOING TO BE ENOUGH? I THINK APPLE MINCE ITS LEADERSHIP WHEN IT COMES TO INNOVATION AND THE BIGGER QUESTION IS GOING TO BE AROUND PRICING. CAROLINE: PRECISELY IN MANY ANTICIPATE
THAT PRICES WILL RISE AND THEY WILL BOOST THE AVERAGE SELLING PRICE AND WE ARE FOCUSING IN TERMS OF THE ENVIRONMENT AND THE EPA CHIEF SAYS APPLE DEVICES BY 2050 WILL BE NET ZERO. I'M INTERESTED IN THE HUAWEI AND CHINESE PERSPECTIVE AS WELL BECAUSE THERE'S BEEN A LOT OF HEADWINDS ON APPLE STOCK LATELY. IS INNOVATION ENOUGH FOR APPLE TO FIGHT OFF THE HOMEGROWN INNOVATION OF HUAWEI? >> I THINK SO FROM A PURE INNOVATION STANDPOINT.
THE BIGGER QUESTION ABOUT THE GEOPOLITICAL CONTEXT IN CHINA AND THE FACT THAT THE IPHONE HAS BEEN BANNED FOR MILLIONS OF EMPLOYEES WORKING IN PUBLIC AND STATE EMPLOYEES IN THE GOVERNMENT IN CHINA, WHAT WILL BE THE CONSUMER SENTIMENT IS A VERY BIG UNKNOWN GIVEN THE FACT THAT THE GREATER CHINA REPRESENTS ABOUT 1/5 OF APPLE REVENUE. THAT MIGHT BE ANOTHER REASON FOR A POTENTIAL PRICE UPGRADE IN OTHER REGIONS. CAROLINE: WE WILL KEEP AN EYE ON WHAT WE WILL HEAR. THANK YOU FOR BEING WITH US. THERE IS A FOCUS ON THE ENVIRONMENT.
THE FORMER EPA CHIEF SPOKE AT APPLE'S HEAD OF ENVIRONMENT OUTLINING THE EFFORTS AND TIM COOK SINGH BY 2030, APPLE DEVICES WILL BEAT NET ZERO IMPACT. EVEN THE NITTY-GRITTY FROM THE CONNECTED DEVICES AND INNOVATION, ARE WE BRACING FOR MORE? ED: I THINK WE HAVE A MORE SUBSTANTIAL UPGRADE TO THE SERIES NINE WATCH IN THE LOWER BASE MODEL THAN WE GOT. THE REAL FOCUS ON THE ENVIRONMENT IS THE STORY AND YOU CAN TAKE THE SERIES NINE AS A AN EXAMPLE, MORE THAN 80% IS MADE FROM RECYCLED MATERIALS LIKE TUNGSTEN AND COPPER.
THE PLEDGE FROM TIM COOK IS BY 2030, ALL DEVICES WILL HAVE NET ZERO. IT'S A COMMITMENT BUT AS WE MADE THE POINT, IT'S ABOUT THE SUPPLY CHAIN AND HOW THEY ARE ADJUSTING TO IT. CAROLINE: WE WILL SEE HOW TITANIUM COMES INTO THE MIX IN A MOMENT. YOU DO NOT WANT TO GO ANYWHERE, THIS IS A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY. WE WILL HAVE FULL RECAPS
2023-09-19 12:50
