Skip to main content

tv   Bloomberg Technology  Bloomberg  November 13, 2019 11:00pm-12:00am EST

11:00 pm
taylor: i'm taylor riggs intent -- in san francisco, in for emily chang. this is "bloomberg technology." we will get details on disney plus. we will get details. plus, tesla's global reach. the automaker gets the nod from beijing to start mass production in its china factory. this as tesla announces it is beginning a plant in berlin. we will have details.
11:01 pm
return of the mac. apple introduces its 16 inch macbook pro. starting at $2400. we will rate its function and design. first, to our top story, it's all about disney. they signed up 10 million customers in one day of launching their new streaming video platform. disney plus just became available yesterday in the u.s. and canada. the strong initial interest could lead disney to hit its target at 60 million to 90 million worldwide subscribers for its new service two years ahead of the original 2024 goal. to discuss, we are joined by chris palmeri. with the stock trading at a record high, how much more was 10 million than what we expected? chris: a lot more. hbs now, cbs all access, espn plus, the world wrestling network, a lot of these guys have been in business for a few years and none of them have hit
11:02 pm
10 million. disney did it in a day. it's an incredible feat. that's why you are seeing a record high. going back to 1974, this is peak disney. taylor: we could say that all the technical glitches yesterday, we could shrug those off. chris: that's what disney was saying. if you only knew how many people were trying to sign up, we couldn't plan for this. the question remains they had this incredible deal with verizon communications, something like 19 million customers could access the service for a year for free. disney is not saying how many of those people that say -- signed up were free customers, but even then disney is getting a wholesale rate from verizon. taylor: we talk about we don't know where the demand is coming from, but what is driving it? is it content or pricing? chris: all of the above. disney, just as they often do, does a fantastic job of marketing. they claim this was the biggest synergy campaign ever. they promoted it on monday night
11:03 pm
football. they promoted it on abc. they had advertisements in hotel rooms at the theme park, disney radio. they had their espn correspondents tweeting about it, all in an effort to get the word out. the price, seven dollars a month or in some cases free. pretty hard to top. content, everything from marble to pixar to star wars. they threw it all at this service. taylor: we're just now sit -- fit -- where does disney now fit in the streaming wars? chris: people have said they are netflix's biggest rival. netflix took a fall and disney surged. disney has become a tech stock now. it's trading not on earnings, but on potential subscriber count, which is estimated to be 60 million to 90 million in five years. people are suggesting they could get to that number quite sooner. taylor: bloomberg's chris
11:04 pm
palmeri, thanks for joining me. now to another top story we are watching, it's all about tesla. they are going to build an electric fark -- car factory not far from the birthplace of the internal combustion engine, in berlin. it probably won't be up and running until 2021. beijing has given the nod to a tesla plant in china. to discuss it all, we are joined by dana hull. the final hurdle was getting through china. how big was that? dana: it was the last box to check in terms of getting the permit to begin assembling and producing cars locally, which is what tesla has been trying to do all year. this is the last step. taylor: china is the world's largest electric vehicle market. is this what investors and analysts want to see in terms of getting that next man, that next market? -- next demand, that next market? dana: for years, they have been shipping cars from california to abroad.
11:05 pm
it's a big logistics hurdle and hugely expensive. it makes more sense to have local factories. one in china, the next one in berlin. this is unprecedented that the chinese government is allowing a foreign company like tesla to set up shop there. taylor: particularly amidst this trait fight. -- trade fight. i was tesla able to work with china and the chinese -- how was tesla able to work with china and the chinese government? dana: they have been shrewd in navigating the environment. musk has a very strong team. he has gone to china several times. he a player -- he appeared with jack ma from alibaba. there hasn't been much of a backlash yet. we will see how this plays out. taylor: we know that china is the biggest market for electric vehicles. europe potentially could be next. how big of a deal is the factory
11:06 pm
in berlin? dana: when you think of europe, germany is where all of the other automakers are. it's where the mercedes, daimler, bmw -- it's the heart of the automobile -- automotive industry. this is really important from an engineering standpoint. it's kind of letting all the other automakers know that tesla is here to stay. as everyone else gets dragged kicking and screaming into electrification, testily -- tesla is ready to dominate. taylor: could we see them become profitable in these overseas markets? dana: the question is can they be sustainably profitable. is this a one-off, or are they going to post a profit again? clearly there is demand for the cars. tesla has said europe could be stronger than north america. taylor: analysts have said it might be too bold to say that
11:07 pm
the u.s. market has matured, but it certainly is a much more mature market than europe or china. would you agree? dana: of electric vehicles -- in terms of electric vehicles? americans have a lot of cars and they tend to drive them for a long time. in china, you still have a lot of people entering the middle class and buying cars for the first time. you have a stronger incentive program than some of the european countries. taylor: there was a story about this, seeing what a burden to solarcity -- burden solarcity has been on tesla. what's your take? dana: tesla shareholders sued tesla and its board of directors over the fact that tesla bought solarcity three years ago, and this litigation has been ongoing. these depositions were unsealed. austin car and i dove into those. it shows how tenuous the whole deal was. musk pushed for it with investors and bankers.
11:08 pm
the solar roof was drummed up to get the deal closed. whether investors care or not remains to be seen. the stock is still doing well. three years later, that was a bad deal. now more details about how bad it was are coming out. taylor: all things tesla. that was bloomberg's dana hull. time for two other top stories, starting with wework, reporting a loss in the third quarter, it could sing sales, and more than doubling -- reporting a loss in the third quarter, eclipsing sales, and more than doubling losses. this was all according to a financial document that was presented to bondholders on wednesday and reviewed by bloomberg. cisco's reporting a big miss on wednesday after the company released fiscal second quarter guidance that missed analyst estimates. they are citing a slowing global economy. shares fell in after trading.
11:09 pm
second quarter adjusted earnings per share will be about $.75 to $.77. the street's estimate was $.79. the ultimate backup drive. how an arctic bunker is preparing software for the end of the world. if you like bloomberg news, check us out on the radio. listen on the app, online, or in the u.s. on sirius xm. this is bloomberg. ♪
11:10 pm
11:11 pm
taylor: by now you know about the famous arctic sea vault. did you know there is also one meant to save the world's open source software? ashlee vance got a peek inside
11:12 pm
the apocalyptic code bunker. ashlee: we are here at 78 degrees north latitude, at the site of the future github arctic cold vault -- code vault. he is depositing 6000 of the most popular open-source projects in an archive inside this mountain. open the vault. this is how it works. the data is stored on a reel of film coated with iron oxide powder. the information can still be read by a computer, or if need be, by a human with a magnifying glass. how long with this last? >> dear competent for 1000 -- we are confident for 1000 years. ashley: you think this -- ashlee: you think this could last for up to 2000 years? github is the main place people go to write open source code.
11:13 pm
tens of millions of people hop on github and create the applications that make the world tick, which is why he wants to protect it from terrorist hackers electromagnetic pulses, and other unforeseen disasters. ok. it's basically a toolshed, but it's still cool. >> into the data vault. >> this is reel one of the get hub arctic code vault -- the github arctic code vault, and we are going to put it here for the next 2000 years. >> thank you. >> i think, 20 years ago, if you told someone that, 20 years in the future, in 2020, all of human civilization will run on open source code, written for free, and put into almost every product in the world, i think people would say, that's crazy, that's never going to happen. software is written by big, professional companies, yet here
11:14 pm
we are. how much of this is just making sure we can restore our way of life? we are all pretty optimistic about civilization. i think we can bet that humans will be thriving for a long time on planet earth. it's just like a time capsule. there's this amazing moment in history where the whole world is starting to run on software. that software is made out of open-source. open source is sort of in everything. taylor: joining me now to ascuss, much warmer ashlee vance. you didn't bring your coat. you described it as a toolshed. why there? why are they source -- the open source code there? ashlee: it's remote. there's a treaty in place that in times of war, it remains neutral.
11:15 pm
even on top of it being remote, you're down in this cave, so it's protected from whatever existential threat you can think of. it is this idea of putting it in the middle of nowhere. taylor: are they really preparing for an apocalyptic scenario? ashlee: that's part of it. it's not connected to the internet. open-source code runs just about everything in the world these days, so it's good to have this backup. it was marking this moment in time of how far open-source software has come and just this idea that humanity have gotten together to do this great, collective effort. part of it is just an archive, like you would do for a library. taylor: what are they hoping to use the library for? are they hoping that they will look back and be able to use what we've done today? ashlee: you could. it's on this film. if there was something horrible that happened, you don't need a computer to read it. you could just sit there with a magnifying glass or analog technology and read the code and
11:16 pm
restore it. a a lot of it is just the symbolism of there was this moment in time when humans did this thing. taylor: i want to talk about this fundamental idea of open-source. github has championed this idea of open-source. they are owned by microsoft, would you think of as a patent-living, capitalist company. where is the tension in your story? ashlee: as someone who has covered open-source for 20 years, microsoft bought github last year. to a lot of the people who were hard court open-source fans this, the most surprising thing -- they have changed a lot. they have embraced open-source. purely cynical manner. this gives them access to all of the world's best and brightest open-source developers, which
11:17 pm
was an audience they didn't really tap before. taylor: in your article, nat said he would consider himself successful, as they created a new middle class when it comes to open-source software. what does he mean? ashlee: if you work on a big open-source project, android or or linux , you probably get paid by one of these companies, but there's this group of coders who are hobbyists, and they make software we all depend on. we just don't know about it. there's no real system in place to get them paid by companies or personal patrons. github is trying to move to this sponsor model, where you could support the developer and let them do it full-time. taylor: what's the feeling about open-source? you talk about how it is not publicly funded, but everyone can participate, yet you have big tech companies like google, facebook, amazon that have now used all of that to track us. it isn't free. what is that tension? ashlee: there's this great irony
11:18 pm
that open-source software started out as this rebellion against microsoft. it was about freedom of intellectual property and the freedom to do with technology what you want. whether it's google, amazon, facebook, their entire infrastructure runs on open-source and this has been flipped on its head monitor people, so it's the underside of the story. taylor: was it freezing? ashlee: it was incredibly cold. taylor: bloomberg's ashlee vance, thank you so much for joining us. coming up, we discussed the state of enterprise software networking and security with the ceo of juniper networks. "bloomberg technology" is livestreaming on twitter. this is bloomberg. ♪
11:19 pm
11:20 pm
11:21 pm
taylor: earlier this year, juniper networks bought mist systems. this was done with the goal of bringing ai into the internet of things space. the company is wrapping up its fifth annual summit in las vegas, which is where ceo rami rahim joins us from. congratulations on the summit. i want to talk about some of the announcements you are making, particularly within security intel. what are you hoping to achieve with that? rami: security is absolutely top of mind for pretty much all of our customers, ceo's, cio's, boards of directors. it's all about leveraging the network infrastructure to obtain data and information and
11:22 pm
insights that can allow us to improve the security posture overall, in any enterprise setting. the one thing that every malware security attack has in common is that it needs to traverse a network to do it work and we can leverage that as a tool to prevent the bad guy from doing the harm that they typically do. taylor: last month when you came out with your earnings, you cut your fourth-quarter revenue guidance. what was driving that? rami: we actually had a great q3, in that we saw significant growth in our enterprise business at 8% year-over-year, good growth in cloud at 6% year-over-year. security was over 22% year-over-year. we are really proud of that. in the telco space, the telco is a challenging market for ourselves and for our peers. we are being a little bit cautious going into the q fork -- q4 timeframe. we did guide to year-over-year growth that is modest, but we are a bit cautious primarily because of the dynamics in the
11:23 pm
telco space. taylor: one of your peers, cisco, cited a slowing global economy. how do you view that enterprise i.t. spend? rami: we saw a little bit of weakness in terms of some of the orders near the end of the q3 quarter for us. primarily because there is a little bit of mark option in -- bit of more caution in how they are making decisions. we are a relatively smaller player in the enterprise segment. we have plenty of room to grow. i've never felt better about the technology offerings we have in the market today. i believe that, even in the face of some softening in the macro environment, we can do very well going forward. taylor: with the mist acquisition, when can we see that pulling demand to the rest of your enterprise product
11:24 pm
portfolio? rami: like you said, i'm actually in our customer and partner event here in las vegas. the excitement level from customers and partners about the mist technology is off the charts. if you think about an analogy of self driving cars, just like there is this need for a self-driving car in the market today, there's also a need and drive towards a network that drives itself, runs itself, provides a really superior end-user experience. this brings all of that to bear into the enterprise market, through its ai technology. we are taking that and applying it across our entire portfolio. tremendous excitement. we are seeing great momentum. it will start to meaningfully add to our revenue in the next year, in 2020. taylor: it would not be a technology show if we didn't mention both ai and 5-g.
11:25 pm
you talked about pulling ai into your revenue stream year. what about 5g? rami: 5g is going to be very big. it's obviously very important for our telco customers and, therefore, important for us. telcos represent over 40% of our business. 5g is probably the most important catalyst for increased investment by our telco customers over the next two years to three years. it will happen over a two-year to three-year period. more of our routing and switching infrastructure to carry determined this amount of traffic -- to carry this amount of traffic. it will mean doing this safely. i do think it's going to be a really important trend for us. it's going to take a period of time before we can fully benefit
11:26 pm
from it. taylor: you do have a goal of returning about 50% of your free cash flow back to shareholders. why are there no other opportunities to invest internally? rami: fortunately, even with that goal of 50% of free cash flow returned through dividends and buybacks, we have a very healthy balance sheet that we can leverage for making acquisitions, creating value, like we did with mist. i'm quite comfortable that we have balanced capital returns as well as the cash we need to run the business and to make other inorganic moves. taylor: rami rahim, ceo of juniper networks, thanks for joining. coming up, tencent is out with earnings that missed the lowest analyst estimate after a weakening economy hurt advertising revenue. we break it down for you next. this is bloomberg. ♪
11:27 pm
11:28 pm
11:29 pm
11:30 pm
at the top a look global stories of the day. >> facebook has taken a lot of criticism from the outside recently, and there are internal critics too. there is an anonymous memo circulating that says facebook still has a problem with bias. executive apologized
11:31 pm
and said the company is working hard to do better. google reportedly will be the next big tech company to get into finance. according to dow jones, the search giant will offer checking accounts to consumers. the project will be rolled out next year. apple came out with a credit card last summer, and facebook is developing its own digital currency. and alibaba hopes to raise more than $11 billion in its hong kong listing. asia's largest company confirmed it started a listing with the hong kong exchange. the share sale is a big win for hong kong. the city's exchange will allow dual-class shares after resisting for a decade. those are your top global tech stories that we are watching. >> it's getting harder to believe in tencent's comeback. the social media giant's profit plummeted last quarter, worse than the most pessimistic analysts anticipated. that comes after an economic
11:32 pm
advertising,ressed and charges. to discuss, we are joined now by selina wang in beijing. tencent cannot get a break. what happened? selina: that's right. we were expecting 2019 to be the turnaround year after a rough 2018. there were months of freezes for its most profitable gains. instead, we are seeing weakness in many of its key sectors. profit plunged, costs rose. increasing payments for expensive content. you also had a 90% drop in one time gains. that's from the drop in charges for the increasing charges for many of its investments. it has a vast portfolio of investments. that includes companies like neo that have been dealing with financial troubles. it's an electric vehicle company. on top of that, you have this economic downturn in china that
11:33 pm
has put pressure on marketers who have cut back spending. it's also dealing with increased competition. it's also had delays for some of its media content. its gaming unit hasn't grown quite as quickly as analysts were hoping. you are also seeing continued regulatory headwinds with the chinese government considering putting gaming limits on teenagers, which is an important demographic for tencent. taylor: selina, what is the future headwind coming from the potential suspension of the nba games? selina: you heard president martin lau saying he doesn't expect there to be a long-term effect. he hopes the problem will solve itself, but doesn't provide a lot of details on how this is going to play out. the context is that tencent has a $1.5 billion deal to exclusively stream nba games. at stake here are billions of dollars in advertising and subscription revenue. temporarythat suspension between nba games, after the fallout between china and nba with that controversial
11:34 pm
tweet from the houston rockets general manager, the entire relationship between tencent and the mba is in question here. tencent had built its entire strategy around becoming a go-to destination for online content, streaming content. nba was an important part of that. though they have started streaming some games played outside of china, it is still unclear what the timeline is going to be like, if there will be future suspensions as well. >> we got all of the bad news, and there was a lot of them, out of the way. tell us, what are the bright spots? selina: investors are bullish on the future of the fintech and business services unit. you saw strong growth in cloud and payments. they are making a big bet on turning its popular pc games into mobile smartphone games. they have had great success with that for "call of duty." on top of that, they are hoping to offset some of the regulatory challenges at home by churning out their most popular titles
11:35 pm
for international audiences. so they do have many areas they are hoping can offset the challenges at home, but it is unclear if they are going to play out, but we are hoping for a better fourth quarter than third quarter. taylor: has alibaba now cemented its lead over tencent? selina: if you look at the market share, the market value, there's a huge win that alibaba is making over tencent from an investor perspective. you can look at the stock markets. part of that is because of the different regulatory headwinds that these companies are facing. as i mentioned, tencent is dealing with regulatory issues on its media and gaming business lines, whereas alibaba has been outpacing, overall, e-commerce and retail consumption in china. they are able to weather this economic storm in china and actually come out on top. we saw them report strong quarterly earnings, and also they reported a blowout $38 billion, a record single day
11:36 pm
-- singles day sale. it's not because of management capabilities. a lot of it is because of headwinds that are out of these companies' control. but certainly the regulatory headwinds are causing investors to be cautious. taylor: bloomberg's selina wang, thank you for joining us. we will have much more, coming up next. this is bloomberg. ♪
11:37 pm
11:38 pm
taylor: just do it. bloomberg has learned that nike says it is pulling its products from amazon in an effort to establish and generate its own e-commerce sales. nike and amazon entered into the pilot program in 2017. the decision comes at a time when branding retailers have grown uneasy with amazon's own line of products that mimic
11:39 pm
sought-after labels. nike says it will continue to use amazon's cloud services. sticking with e-commerce, e-commerce company brandless is competing in a crowded market. it aims to become the number one destination for generic health and wellness products. joining us to discuss the company's growth strategy is the ceo, a veteran in the retail industry. he has held executive roles at target, walmart, and a fashion startup, among others. give me your perspective. you are wrapping up your first six months. what's been the biggest challenges? >> thank you for having me, by the way. challenges, i don't know. i would say that, first, brandless is a consumer-products and goods company that is operating only on the internet, so it's one-of-a-kind. that's a very unique situation, as it is. of course, we have, coming in, looking at the strategy and
11:40 pm
looking at what to change to get the growth, numbers that we would like to have as time goes by, we have changed our strategy. taylor: can you give us any specifics on growth numbers, where you would like to be? john: we would love to be a $1 billion revenue company, which we think we will be somewhere around the end of 2022, and we will be profitable in mid-2021 at this point, based on our strategic direction. >> you are doing a reverse shift , e-commerce going into brick-and-mortar. why? john: brilliant observation. most cbg companies start in wholesale, where they manufacture products and put it in other people's stores. we started on the internet, selling on the internet only. what we are doing now is completing that cpg journey. we have dominance from an internet perspective, but we are just entering into the wholesale side. what customers have told us is that they want to see our product where they shop, not
11:41 pm
only on the internet, but also in local stores, so we are taking that route. taylor: you've come from companies like target and walmart. interesting, those companies have created their own generic brands, some of their own private labels. how do you compete with that? what is their incentive to let you into those stores? john: i don't believe we compete with their private labels. what we do is we have a unique branding story. brandless is not just one item, it is many items. today we have about 325 items, and we will grow that in a very curated assortment. but we are not that black-and-white, generic label that you saw 30 years ago in a safeway store, in your grocery store. it's very different. if you look at the brand and the brand values that we have, look at the product, it is very simplified. it has cleaner ingredients. there's less writing even on the front of the packaging. it's better for you and better for the planet. many private label brands don't go anywhere close to that.
11:42 pm
non-gmo and all these other things that we aspire to be the best at, they don't necessarily do that at that private-label level. taylor: you were known originally from being at a three dollar price point. in baby products and pet products. some of the products are now listed at $9. why? john: no magic to nine dollars, but from a dollar store perspective, we see some of these items living in brick-and-mortar stores. on the internet, we are going more into beauty and wellness. that's one of the reasons we launched into cbd. from a wellness perspective, it is plant-based, nonpharmaceutical. our customers are asking for it to help them in their wellness journey. it's a category killer for us. we have jumped into that space. some of the lesser priced items you will see in brick and mortar stores. many of these other types of items, beauty, wellness, cbd, will be present on the internet. taylor: you're a softbank portfolio company. what has it been like working with softbank?
11:43 pm
john: softbank has been a tremendous partner. there on our board. i would say softbank has been fabulous. they assist me in everything i need and the team in what we need. taylor: after the we work debacle, we saw heightened scrutiny in corporate governance and profitability. how much more pressure has softbank put on you to increase profit and corporate governance since the wework debacle? john: zero. you have to always have a path to profitability. if you don't have that path laid out, it's going to be very difficult. they are supportive of our efforts as we go through that journey, in every regard. taylor: have you given specific timelines on that profitability? john: no, not at all. other than the fact that we have enough cash to get to profitability. so it's not a fundraising issue. we don't have that problem,
11:44 pm
which is kind of unique for someone like myself coming into a company. very often i have to go raise money as well as operate the company, and that's difficult. in this case, we have plenty of money to make it to profitability. taylor: what's been the most asked question from investors of you in the last year? john: that's a really good question. i didn't expect that. taylor: thinking softbank or? john: it's around possibility. how big can we make this grow? is this really a horizontal play? if you speak to some of the investors, they feel as if we have the capability to not only own beauty, but also wellness. we have a travel line, luggage products. we have a blender product today that is just blowing the charts off from a sales perspective, that is a challenger to vitamix. we have pots and pans that are challengers to allclad, at a
11:45 pm
much lower price point. if you think about that and think about going horizontal with your strategy, that then gives you some level of scale. even the billion-dollar number is just what we see today, but that will change over time. taylor: when it does, we would love to have you back. that was brandless ceo john rittenhouse. thank you for joining us. john: thank you for having me. craigslist's cofounder and chairman sat down with bloomberg's jason kelly to discuss his concerns at the 9/11 memorial and museum's second annual summit. take a listen. >> the country is facing an attack, particularly on the integrity of our elections. i feel that i can modestly help the people doing the real job of protecting our elections, which is the same as protecting our country. my contributions are modest, but somebody has to do it. >> how did you come to this, because you have been very specific and focused, it feels like, in your philanthropy?
11:46 pm
you have identified three major areas. how did this become one of them? >> it came through the confluence of a number of paths. one is that i'm interested in cybersecurity, and yet our foreign and domestic adversaries are attacking voting systems, using cybersecurity methods. there is also information warfare, where bad guys are using so-called influence operations, or maybe just dirty tricks, to attack elections, to attack voting rights, that kind of thing. >> one of the interesting things, craig, is this intersection of your work around journalism and around election security. what is that nexus? craig: the immediate nexus is two-part. one is that bad guys, foreign adversaries and their domestic allies, have figured out how to game the rest.
11:47 pm
they have figured out how to introduce this information and generally phony news, such that american citizens don't get the information they need to make smart decisions. meanwhile, they are also using cybersecurity techniques to attack our voting systems, possibly in subtle ways. for example, they are working with their domestic allies to purge voters who should not be purged. what's worse is we fear that they might do things like tinkering with a legitimate election registration record, such that when a person goes to vote, they have to file a provisional ballot. if a bunch of people do that, that slows down the line a lot. we know that's a thing, and that's a thing that can be prevented. people like me work with the people who do the actual operations. my contributions are small. i get people to talk to each
11:48 pm
other and help out. that's not a big thing in itself, but a nerd has to do what a nerd has to do. >> when you think about where we are in 2019, there's so much manyof a tech/, and so existential questions around our relationship with technology. as someone who has been involved in this, looking at it, studying it, what do you make of that? craig: techlashes and adoration go in cycles. my focus is that, right now and for years, we are in an all-hands-on-deck situation. people need to work together. we need to focus on what we have in common. and we do have some differences. let's deal with them as reasonable people together. i'm telling everyone work together, especially this year. find out what our small differences are, and work on them, viewing them as small
11:49 pm
differences, and we are going to get through this as a much stronger country. it will be good for everyone. taylor: that was craigslist cofounder and chairman craig newmark. peloton shares shot up in wednesday trading. the company is said to be working on a cheaper treadmill and a rowing machine. explored has also peloton has also explored apps -- for amazon's fire tv and the apple watch. a look at the update of the new macbook pro. that's next. this is bloomberg. ? ♪
11:50 pm
11:51 pm
taylor: facebook says it removed nearly 2 billion fake accounts
11:52 pm
last quarter. the social network added that, in the last six months, it took down 11.5 million posts of child exploitation, including child pornography. the posts violated content policies across facebook and instagram. other posts removed included terrorism content, hate speech, and drug sales. and a follow-up to a story we brought to you earlier this week, goldman sachs says it now plans to allow household members to share an apple card credit line. this comes after probes into claims of gender bias in the underwriting process. spouses were getting different credit limits. goldman, the card's issuer, has claimed it does not take gender or marital status into account when determining credit worthiness. this all comes as u.s. senator ron wyden says he is investigating the bias claims. and apple introduced its first major update to the macbook pro laptop in three years on wednesday. the new laptop will come with a
11:53 pm
slightly larger 16-inch screen and improved keyboard. joining us to discuss is bloomberg's mark gurman in los angeles. is it all about the keyboard? mark: it's all about the keyboard. the interesting thing to me on this is that it really shouldn't be all about the keyboard. the reason we are talking about the keyboard is because apple redesigned it after there were years of complaints on what is known as the butterfly mechanism keyboard they launched in 2015. so if they had moved to that design, we wouldn't be talking -- had not moved to that design, we would not be talking about it now. the new models they are shipping are a big improvement on the keyboard side. taylor: who is the target audience, software developers and video editors? mark: this is the macbook pro, their highest-end laptop. it is one of the most popular macs, other than the macbook air. there's no limit on who will buy these, but they are designed for
11:54 pm
video editors, software developers, gamers, anyone who wants to drop $2000 to $3000 on a computer, but there are students who buy these as well. taylor: talk about the price point. you mentioned $2400. the desktop goes for almost double that. is there a demand at this price point? mark: absolutely. these macbook pros have had the same general pricing schemes for about a decade or more now. the macbook pro was first launched in 2006, the powerbook system before that. for many years, they have been in that pricing category. a lot of people thought this 16-inch model would come in quite a bit higher, but apple is actually replacing it. the good news, this is cheaper than some expected it would actually come out to be. taylor: and where does the macbook fit into apple's overall revenue strategy and product strategy? mark: the mac represents about
11:55 pm
10% of apple's sales, generating between $23 billion and $27 billion annually for the last seven or eight years. it's been an incredibly steady seller for apple. it has brought in a good chunk of revenue. 10% is a lot. in terms of its future, apple seems pretty dedicated to the mac. this was not always the case. two or three years ago, it seemed like the mac was dying, on its way out from being an apple product line. but a lot of people complained. people noticed apple was taking a long time to update its computers. they sort of abandoned the pro-market, but the last two or three years, it seems like apple, specifically its marketing head, really took the issue head-on and turned this thing around. the mac appears to be more important than it has been in some time for apple. taylor: the last few days, i've been obsessed with the streaming wars. i have to ask, how much of the demand of the new buyers could be buying this because they get apple tv plus when they buy a
11:56 pm
new product? mark: i don't think anyone is going to buy the new macbook pro just to get that free year. we are talking about a $2300 machine and tv plus is five dollars a month. if you are going to be subscribing to tv plus, chances are you are an early adopter who already bought an iphone or something more recently. there may be a few people. maybe you, taylor, but i don't think most people. taylor: you know me. i'm not going out and buying a huge, expensive computer at that price point. that was bloomberg's mark gurman. thank you for joining us. and that does it for this edition of "bloomberg technology." "bloomberg technology" is livestreaming on twitter. technology, and @ follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪
11:57 pm
11:58 pm
11:59 pm
12:00 am
>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. >> in a letter dated back to december 27, 1904, to the secretary of treasury, president theodore roosevelt wrote a short two sentence letter. this was in typical theodore roosevelt bravado style. my dear secretary shaw, i think our coinage is artistically of atrocious hideousness.


info Stream Only

Uploaded by TV Archive on