WEBVTT - China Seeks to Broaden iPhone Ban 0:00:01.360 --> 0:00:05.680 This is Bloomberg Business Wait inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business, finance and tech news. The Bloomberg Business Week 0:00:13.720 --> 0:00:19.000 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.520 --> 0:00:23.240 All right, Jessman and Paul Sweene here in the Bloomberg 0:00:23.360 --> 0:00:26.560 Interactive Broker studio and so much focus today. Paul has 0:00:26.600 --> 0:00:29.000 been on this story about how China is seeking to 0:00:29.000 --> 0:00:33.000 broaden this iPhone band to state firms and looking at 0:00:33.040 --> 0:00:34.680 what China's really trying to do here. 0:00:34.720 --> 0:00:35.640 And this also does. 0:00:35.520 --> 0:00:37.680 Come ahead of next week. We do have that September 0:00:37.720 --> 0:00:42.159 twelfth iPhone fifteen Apple Watch event that is quickly approaching. 0:00:42.240 --> 0:00:44.599 So investors really want to get a sense here as 0:00:44.640 --> 0:00:47.080 far as what this really means for Apple as well 0:00:47.120 --> 0:00:50.559 as companies when they are doing business in a country 0:00:50.760 --> 0:00:53.599 like China. So who better to bring back with us 0:00:53.640 --> 0:00:57.600 than Mark German, chief Technology correspondent at Bloomberg News, joining 0:00:57.680 --> 0:01:01.760 us on zoom from our Los Angeles. Mark I will 0:01:01.800 --> 0:01:04.800 look us through the latest developments here and just kind 0:01:04.840 --> 0:01:07.640 of broadly what this really is going to mean for 0:01:07.720 --> 0:01:09.920 Apple as well as other companies. 0:01:10.640 --> 0:01:12.680 Yeah, thank you both so much for having me. As always, 0:01:13.040 --> 0:01:16.760 this ban has become broader than just a ban of 0:01:16.800 --> 0:01:19.720 iPhones at work of government agencies. This is also related 0:01:19.760 --> 0:01:23.319 to state owned companies. Right in China, there are plenty 0:01:23.319 --> 0:01:26.560 of conglomerates that are operated or owned by the Chinese government, 0:01:27.000 --> 0:01:29.600 So certainly this is pretty broad. Now, I've seen some 0:01:29.640 --> 0:01:32.400 analyst reports indicating that this is very limited. Right, If 0:01:32.400 --> 0:01:35.480 Apple loses five hundred thousand or a million iPhone unit 0:01:35.560 --> 0:01:38.039 sales because of a ban at Chinese entities, it's not 0:01:38.080 --> 0:01:40.839 necessarily a big deal, But that misses the bigger picture. 0:01:40.959 --> 0:01:43.880 The bigger picture is Chinese nationalism. I don't think there's 0:01:43.920 --> 0:01:45.959 going to be an outright ban of iPhone sales in 0:01:46.040 --> 0:01:48.760 China for consumers or anything close to that. But you 0:01:48.840 --> 0:01:51.840 definitely have to consider the idea of consumers in China 0:01:52.280 --> 0:01:54.600 pushing back on the idea of buying iPhones because they 0:01:54.640 --> 0:01:57.400 see that their government is pushing back on iPhones in 0:01:57.480 --> 0:01:58.440 their own entities. 0:01:59.480 --> 0:02:01.920 Mark, what do we know about the quality of the 0:02:02.080 --> 0:02:06.320 Chinese phones in China? I mean it's me Chinese consumers 0:02:06.360 --> 0:02:09.040 are like any other consumers. I mean, they will go 0:02:09.080 --> 0:02:11.799 where they deem value and so I'm trying to get 0:02:11.800 --> 0:02:13.720 a sense of how good are those Chinese phones. 0:02:14.520 --> 0:02:17.960 The Chinese phones are getting better. Whalwei is rolling out 0:02:17.960 --> 0:02:20.200 a new phone. It's called the sixty Pro. It is 0:02:20.280 --> 0:02:23.519 quite impressive. It has a larger battery, a larger display, 0:02:23.680 --> 0:02:28.280 and far higher resolution cameras than the new iPhone fifteen 0:02:28.320 --> 0:02:31.399 Pro Max that's going to be announced next week, so 0:02:31.440 --> 0:02:34.000 certainly that's something to keep an eye out. It also 0:02:34.040 --> 0:02:37.560 has a price that undercuts the latest iPhone, so certainly 0:02:38.240 --> 0:02:39.920 that is something to keep an eye on. It also, 0:02:39.960 --> 0:02:41.920 as we've shown in our exclusive tear down in the 0:02:41.960 --> 0:02:45.320 last week or so for my colleagues in Asia, that 0:02:45.480 --> 0:02:49.160 it has a fairly advanced seven animeter chip using homegrown 0:02:49.360 --> 0:02:53.560 Chinese technology. And that's interesting to watch because right now, 0:02:53.760 --> 0:02:56.560 you know, the US has been banning exports of US 0:02:56.600 --> 0:03:00.560 components to component makers in China. So certainly China is 0:03:00.560 --> 0:03:04.360 showing that despite those bands and those export and import restrictions, 0:03:04.360 --> 0:03:06.960 that they're able to release some key components that really 0:03:06.960 --> 0:03:08.160 power these new devices. 0:03:08.639 --> 0:03:11.720 What do you think could potentially be some surprises next 0:03:11.720 --> 0:03:14.040 week that investors might be hoping to look for at 0:03:14.040 --> 0:03:14.440 the event. 0:03:15.840 --> 0:03:20.119 I'm not anticipating any surprises next week, it'll be pretty straightforward. 0:03:20.120 --> 0:03:22.600 You'll see four new iPhone fifteen models, too low and 0:03:22.680 --> 0:03:24.680 too high end, both in the same six point one 0:03:24.680 --> 0:03:27.000 inch and six point seven in screen sizes. You'll see 0:03:27.000 --> 0:03:30.000 a new titanium design for the iPhone fifteen Promee Promax. 0:03:30.040 --> 0:03:32.679 That's the first redesign in three years. You'll see on 0:03:32.720 --> 0:03:35.280 those higher end phones, a better battery life, a lighter 0:03:35.320 --> 0:03:37.520 frame in the A seventeen chip built on the new 0:03:37.560 --> 0:03:40.240 three and animeter production process, so a little leg up 0:03:40.240 --> 0:03:43.280 on what China's got in their new Wawei devices. The 0:03:43.320 --> 0:03:47.600 Apple Watch upgrades will be very minor. Faster processors, new components, 0:03:47.640 --> 0:03:50.000 new colors, a black version of the Apple Watch Ultra, 0:03:50.720 --> 0:03:52.320 and then on the air pods you'll see a move 0:03:52.400 --> 0:03:56.040 to USBC that new charging standard from Lightning, which is 0:03:56.080 --> 0:03:58.920 also going to be present on all four new iPhone models. 0:03:58.640 --> 0:03:59.080 Ay Mark. 0:03:59.120 --> 0:04:02.120 Apple also is working on a revamped iPad pro for 0:04:02.160 --> 0:04:04.640 next year, and actually would be the first major overhaul 0:04:04.680 --> 0:04:06.000 in about half a decade. 0:04:06.120 --> 0:04:07.800 What do we know so far about that? 0:04:08.720 --> 0:04:10.960 Yeah, the IPD pro that's going to be announced around 0:04:10.960 --> 0:04:12.840 the middle of next year. They're going to be moving 0:04:12.840 --> 0:04:15.520 to oh LED displays on those for the first time. 0:04:15.920 --> 0:04:18.800 OLED is the screen technology that Apple uses across many 0:04:18.839 --> 0:04:21.039 of its iPhones at this point. They started rolling it 0:04:21.040 --> 0:04:24.159 out with the iPhone ten back in twenty seventeen. Quite 0:04:24.200 --> 0:04:27.119 a bit better contrast, better color reproduction. It just looks 0:04:27.120 --> 0:04:29.840 better overall. And so that display technology will be at 0:04:29.839 --> 0:04:32.680 the heart of that iPad pro revamp, along with the 0:04:32.680 --> 0:04:35.320 new Magic keyboard with trackpad that has a metal design. 0:04:35.560 --> 0:04:38.520 It'll make the iPad look more like a MacBook. 0:04:39.080 --> 0:04:41.480 So talk to us about I wonder what Tim Cook 0:04:41.560 --> 0:04:44.200 is saying these days, Mark about China. I know he 0:04:44.279 --> 0:04:46.039 was over in China, you know, a month or so ago, 0:04:46.240 --> 0:04:49.120 and how important China is, not just from their supply 0:04:49.240 --> 0:04:51.760 chain and also as an end market. What are the 0:04:51.800 --> 0:04:54.880 folks of Koopertinos saying about kind of the I don't 0:04:54.920 --> 0:04:58.280 know the intermediate term relationship. 0:04:57.920 --> 0:04:59.960 With end or risk which China. 0:05:01.120 --> 0:05:03.440 I mean, they're not saying much and there's really nothing 0:05:03.480 --> 0:05:06.000 they can do. You know, all of their new iPhone 0:05:06.000 --> 0:05:09.000 fifteen pros are going to be built in China and 0:05:09.200 --> 0:05:11.159 they have to sell one hundreds of millions of those 0:05:11.200 --> 0:05:14.200 devices over the next couple of years. Twenty percent of 0:05:14.240 --> 0:05:16.760 their sales come from China, right, So there's really nothing 0:05:16.760 --> 0:05:20.200 that could be said from their standpoint. I'm sure they 0:05:20.279 --> 0:05:25.479 are worried internally, but from an outside perspective, they'll definitely 0:05:25.520 --> 0:05:28.159 show excitement about their future in the region. 0:05:28.760 --> 0:05:31.320 Something else I'm curious about, as would we do see 0:05:31.480 --> 0:05:35.800 US China trade tensions rising up again, How does that 0:05:35.839 --> 0:05:38.840 affect new production sites that are sort of changing the 0:05:38.880 --> 0:05:41.280 way that Apple's devices are made. 0:05:42.520 --> 0:05:45.279 Yeah, I don't think at this point there's any going back. 0:05:45.320 --> 0:05:48.440 I think Apple is expanding its supply chain outside of 0:05:48.520 --> 0:05:53.520 China to places like Thailand, Malaysia, Vietnam, and India foremost, 0:05:53.880 --> 0:05:56.880 so I certainly think that that's already a given. It's 0:05:56.920 --> 0:05:59.200 already a done deal. So I'm not really sure there's 0:05:59.200 --> 0:06:01.000 anything more that could be done on the tariff site 0:06:01.040 --> 0:06:04.200 to accelerate Apples push outside of China. That's already full 0:06:04.240 --> 0:06:06.040 blown and going full step ahead. 0:06:06.560 --> 0:06:09.599 Hey, Mark, when don't we have phone particularly with the phones. 0:06:10.040 --> 0:06:12.680 Is there any opportunity going forward or expectation that there 0:06:12.680 --> 0:06:15.120 will be any kind of leap frog type new versions 0:06:15.160 --> 0:06:18.080 coming on or is it just incremental here, incremental there, 0:06:18.720 --> 0:06:20.320 and then people are just going to get into some 0:06:20.400 --> 0:06:23.400 type of renewal cycle every three, four or five years. 0:06:23.440 --> 0:06:24.880 Is that kind of how they think about it. 0:06:26.240 --> 0:06:27.480 I'm not sure how they think about it, but I 0:06:27.520 --> 0:06:28.880 can tell you the way I think about it is 0:06:28.880 --> 0:06:30.880 that it's going to be very incremental over the next 0:06:30.920 --> 0:06:32.480 you know, three to four years or so, it's going 0:06:32.520 --> 0:06:35.880 to continue to be. The new devices this year are incremental. 0:06:36.839 --> 0:06:38.919 And while I say they're incremental, they're still going to 0:06:38.920 --> 0:06:41.279 be the most significant overhaul so the devices we've seen 0:06:41.320 --> 0:06:45.240 in three four years. So certainly you know you'll get 0:06:45.240 --> 0:06:47.720 your opinion from You can ask one hundred people their 0:06:47.720 --> 0:06:49.520 opinion and you might get a hundred different opinions. 0:06:49.520 --> 0:06:52.359 Well, I'm going with yours. I also talk to anairog ronnie. 0:06:52.400 --> 0:06:53.920 He knows a lot about the phone and he tells 0:06:53.960 --> 0:06:55.760 me when I need to upgrade. 0:06:56.640 --> 0:06:59.599 When it comes to different countries like India, I know 0:06:59.640 --> 0:07:03.040 that has definitely a hot place that companies have been 0:07:03.040 --> 0:07:03.559 going into. 0:07:03.600 --> 0:07:06.120 What's kind of the story there when it comes to Apple. 0:07:06.880 --> 0:07:09.120 Well, the strategy for Apple in India is to replicate 0:07:09.240 --> 0:07:11.239 the success that they've had in China over the past 0:07:11.240 --> 0:07:14.440 fifteen years. That is the creation of the country as 0:07:14.480 --> 0:07:17.160 both a production hub but also a key sales hub. 0:07:17.200 --> 0:07:19.640 Apple sees China as a market that it only has 0:07:19.840 --> 0:07:21.960 one to three percent penetration in, so there's a long 0:07:22.000 --> 0:07:25.720 way to go. Very few people comparatively have iPhones in India, 0:07:25.800 --> 0:07:28.280 and so Apple sees it as a completely untapped market, 0:07:28.520 --> 0:07:30.600 just like they saw China fifteen years ago. And the 0:07:30.600 --> 0:07:33.360 success that Apple has had in China over the last 0:07:33.360 --> 0:07:35.920 decade plus has been unprecedented, and they want to replicate 0:07:35.960 --> 0:07:38.320 that in India and they've started to lay the groundwork 0:07:38.360 --> 0:07:41.000 for that with two retale stores. They're working on three more. 0:07:41.040 --> 0:07:44.080 I've written definitely think they're going to start doing more 0:07:44.120 --> 0:07:45.640 for India on the product side as well. 0:07:46.120 --> 0:07:48.440 But I've also heard, as it relates to India maybe 0:07:48.480 --> 0:07:51.800 just emerging markets in general, that some people argue they 0:07:51.840 --> 0:07:54.360 just need a lower price phone. They can't go into 0:07:54.480 --> 0:07:57.680 some of these merging markets with their current lineup. It's 0:07:57.720 --> 0:07:59.800 just too expensive. What do you think about that? 0:08:00.760 --> 0:08:02.680 I don't necessarily think that Apple is going to do 0:08:02.720 --> 0:08:05.880 the lower cost phone in China's in those emerging markets, 0:08:05.920 --> 0:08:07.720 it's very hard for them to put the skews on 0:08:08.040 --> 0:08:10.760 a geography basis, So I think they're going to just 0:08:10.840 --> 0:08:13.400 push their lower price devices harder in those regions, like 0:08:13.440 --> 0:08:15.560 the iPhone se and some of the older models of 0:08:15.560 --> 0:08:18.200 the iPhone, like the iPhone twelve and thirteen, the base ones. 0:08:18.760 --> 0:08:21.320 I also think that they can lower prices once they 0:08:21.320 --> 0:08:25.320 get some tax relief based on production locally. Obviously, India 0:08:25.360 --> 0:08:28.480 lowers import taxes and such if you produce locally, which 0:08:28.520 --> 0:08:30.680 is one of the driving forces behind Apples work there. 0:08:31.280 --> 0:08:33.840 So I certainly think they're going to push pricing plans 0:08:33.880 --> 0:08:37.120 and installment packages rather than cut prices in India. 0:08:37.160 --> 0:08:41.280 Also, Vietnam has emerged as a popular. 0:08:40.920 --> 0:08:43.000 New hub for Apple. What do we need to know 0:08:43.040 --> 0:08:43.520 about that? 0:08:44.480 --> 0:08:47.559 Yeah, India or Vietnam. In addition to India, Malaysia and Thailand, 0:08:47.559 --> 0:08:49.520 that's one of the other countries where Apple's pushing. They 0:08:49.559 --> 0:08:52.440 opened up an online store there last year, which is 0:08:52.440 --> 0:08:54.640 one of the early indicators of when Apples trying to 0:08:54.640 --> 0:08:58.000 plant the flag in a particular new market. They have 0:08:59.320 --> 0:09:01.800 some retail presence, they're on the third parties, I'd imagine 0:09:01.800 --> 0:09:07.000 they would expand with more first party retail stores there eventually. 0:09:07.480 --> 0:09:11.320 I also anticipate Malaysia to be similar in that they're 0:09:11.320 --> 0:09:13.480 going to grow a retail footprint there too, and you're 0:09:13.520 --> 0:09:17.600 seeing some macro production in Vietnam, but primarily Apple watching AirPods. 0:09:18.120 --> 0:09:19.720 Hey, Mark, thanks so much for giving us your time. 0:09:19.760 --> 0:09:23.200 Appreciate getting the update of Apple certainly in the news today. 0:09:23.200 --> 0:09:25.240 Plus they're going to have their new product launches coming up, 0:09:25.280 --> 0:09:27.000 so we'll be in touch with you. Mark Herman, he's 0:09:27.000 --> 0:09:30.520 the chief technology correspondent for Bloomberg News. He's just the 0:09:30.559 --> 0:09:31.760 ace on it. He really is. 0:09:32.080 --> 0:09:33.040 He knew the news there. 0:09:33.440 --> 0:09:36.760 He joining us on Zoom from the Los Angeles bureau 0:09:36.920 --> 0:09:40.079 speaking in nice office that lost LA is awesome. 0:09:40.160 --> 0:09:40.560 Oh yeah. 0:09:40.559 --> 0:09:42.440 Like when I first went to LA, I was like 0:09:42.720 --> 0:09:45.880 boy for Bloomberg, which every office is overwhelmingly nice. 0:09:46.160 --> 0:09:48.120 I was like, eh, this is I was. 0:09:48.120 --> 0:09:50.719 Coming in And as soon as and I went back, 0:09:50.840 --> 0:09:55.440 like a year later, they changed offices. Spectacular, top of everything, 0:09:55.720 --> 0:09:57.880 and you know that's all I did was sayah, and 0:09:57.920 --> 0:09:58.920 they make the up grade. 0:09:59.000 --> 0:10:01.520 I have to know what it's like compete to this office. 0:10:01.559 --> 0:10:03.640 Awesome. They just and they've got a great view. 0:10:04.240 --> 0:10:06.760 They're right in Century City. 0:10:07.080 --> 0:10:09.760 Great office space there, so great job. That's where mister 0:10:09.800 --> 0:10:11.480 German is. So are you gonna upgrade your phone? 0:10:11.679 --> 0:10:13.839 You know what the battery is not quite good, So 0:10:13.880 --> 0:10:15.280 I feel like I might have to And. 0:10:15.160 --> 0:10:17.640 A lot of folks say, you know, maybe that's what 0:10:17.840 --> 0:10:19.960 Apple does. They kind of give you a battery life 0:10:20.000 --> 0:10:22.560 and then when the battery starts coming out right. 0:10:22.480 --> 0:10:25.440 In time for an upgrade, and there you go. So 0:10:25.520 --> 0:10:26.439 we'll see how that plays. 0:10:26.440 --> 0:10:28.959 Like S and P five hundred off three tents and 0:10:29.000 --> 0:10:32.120 one percent, the Dow up just fractionally, nastak off nine 0:10:32.160 --> 0:10:34.840 tenths of one percent, yields they are kind of pulling 0:10:34.880 --> 0:10:37.040 in a little bit tenure Treasury three zero point two 0:10:37.160 --> 0:10:39.960 six percent, So we keep an eye on that. 0:10:40.000 --> 0:10:41.040 We're gonna work coming up this. 0:10:42.679 --> 0:10:46.240 You're listening to the Bloomberg Business Week Podcast. Catch us 0:10:46.280 --> 0:10:49.600 live weekday afternoons from three to six Eastern Listen on 0:10:49.679 --> 0:10:53.720 Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, 0:10:54.000 --> 0:10:56.280 or watch us live on YouTube. 0:10:57.040 --> 0:11:00.400 Let's talk companies now look software company. 0:11:00.480 --> 0:11:03.920 Brian Robbins. He's a chief financial officer for get Lab. 0:11:04.200 --> 0:11:08.200 He joined us on Zoom from Sunset South, Carolina. Are 0:11:08.240 --> 0:11:08.960 you kidding me? 0:11:09.440 --> 0:11:10.960 Sunset? I mean, how good is that? 0:11:11.320 --> 0:11:12.400 I've been to Sunset South? 0:11:12.400 --> 0:11:13.400 Now it is nice. 0:11:13.520 --> 0:11:15.640 I need to get in the low country to scam. 0:11:15.679 --> 0:11:17.920 I have to figure out what's behind this. Hey, Brian, 0:11:17.920 --> 0:11:19.960 thanks so much for joining us here. Talk to us 0:11:19.960 --> 0:11:22.439 about get lab. Just give us kind of the thirty 0:11:22.480 --> 0:11:25.920 second elevator pitch what you guys do, kind of you 0:11:26.160 --> 0:11:28.360 where you fit into the tech space. 0:11:29.520 --> 0:11:32.520 Absolutely thanks for having me on the show today. The 0:11:32.559 --> 0:11:35.680 best way to describe get lab for a non technical 0:11:35.720 --> 0:11:39.559 person is comparing it to the iPhone. And so about 0:11:39.559 --> 0:11:41.920 ten years ago, I used to travel about every week 0:11:42.280 --> 0:11:44.760 and I would pack a duffel bag of electronics. I 0:11:44.760 --> 0:11:47.040 would take my walk hands, I could go jogging in 0:11:47.120 --> 0:11:49.120 the park. I would take a camera so I could 0:11:49.160 --> 0:11:51.840 take pictures of all the cool sites. I'd have my 0:11:51.920 --> 0:11:55.880 Garmin GPS because you know, the ride share and companies 0:11:55.920 --> 0:11:59.400 weren't around to basically get somewhere if Matt Quest wasn't right, 0:12:00.120 --> 0:12:02.240 have my BlackBerry and have all the charges, and I 0:12:02.280 --> 0:12:04.840 have to take a duffel bag of basically all the 0:12:04.880 --> 0:12:07.480 electronics to go on a business trip. And then comes 0:12:07.520 --> 0:12:11.120 to iPhone and all the applications got integrated into a 0:12:11.120 --> 0:12:15.199 single platform and the user experience just went off the charts. 0:12:15.480 --> 0:12:18.600 And so get lab is an iPhone for software developers. 0:12:18.960 --> 0:12:23.760 We allow software developers, operations, and security professionals to create 0:12:23.880 --> 0:12:28.160 software faster, better, cheaper, and more secure. It doesn't matter 0:12:28.240 --> 0:12:31.360 what industry you're in or what geography, everybody uses the 0:12:31.400 --> 0:12:32.480 same platform. 0:12:33.440 --> 0:12:37.840 You just had earnings released in recent days and the 0:12:37.960 --> 0:12:41.839 stock if you look at this Paul Tickersingle GTLB up 0:12:41.920 --> 0:12:44.440 almost ten percent this month after the company did report 0:12:44.559 --> 0:12:48.480 second quarter results that did beat expectations and raise their. 0:12:48.320 --> 0:12:49.920 Full year forecast. 0:12:50.040 --> 0:12:52.720 What are you seeing when it comes to customer buying 0:12:52.800 --> 0:12:55.200 patterns and what do you think that really tells us 0:12:55.280 --> 0:12:58.120 about the economy. 0:12:58.200 --> 0:13:01.240 Yeah, you know, great question. Every company has to become 0:13:01.280 --> 0:13:06.199 a software company. Consumers are demanding data. We're understanding where 0:13:06.240 --> 0:13:09.040 their package is at. You know, like Amazon, they'll send 0:13:09.080 --> 0:13:11.680 you a text now if the drivers you know, eight 0:13:11.720 --> 0:13:14.599 stops away, and where your package is at. So everybody's 0:13:14.640 --> 0:13:17.320 creating software, they're putting them in the cloud. They're doing 0:13:17.400 --> 0:13:20.400 it for revenue generation and also to save money. And 0:13:20.480 --> 0:13:24.760 so get lab basically eliminates point solutions and allows people 0:13:24.800 --> 0:13:28.160 to do everything on one platform with a single application. 0:13:28.720 --> 0:13:31.400 And so even with the tougher economy, we're seeing a 0:13:31.400 --> 0:13:34.200 lot of companies come to get lad to save money. 0:13:34.800 --> 0:13:37.200 If you use our ultimate product, which is our high 0:13:37.280 --> 0:13:40.360 end product, it's ninety nine dollars per month per user, 0:13:40.760 --> 0:13:43.200 and it has a six month payback and over three 0:13:43.280 --> 0:13:45.960 years it's over a four hundred percent return on your investment. 0:13:46.880 --> 0:13:49.520 That sense pretty compelling for a lot of buyers. I 0:13:49.559 --> 0:13:49.880 would think. 0:13:49.920 --> 0:13:53.040 Talk to us about Google Cloud, how you guys partner 0:13:53.080 --> 0:13:53.800 with them? 0:13:55.080 --> 0:13:59.080 Yeah, absolutely, we have a partnership with Google Cloud. We're 0:13:59.120 --> 0:14:03.520 currently using their large language models to train some of 0:14:03.559 --> 0:14:06.480 our AI products that we're working on. You know, get 0:14:06.600 --> 0:14:11.280 Lab's core feature is to make the developers, operations and 0:14:11.679 --> 0:14:15.720 security professionals faster and better at creating software. And one 0:14:15.720 --> 0:14:17.840 of the ways that we're doing that is at an 0:14:17.840 --> 0:14:20.800 AI to our product. And so we currently have ten 0:14:20.920 --> 0:14:24.440 products under development. We have one that's generally available today 0:14:24.480 --> 0:14:28.160 called Suggested Reviewers, and we're working on one called code Suggestions. 0:14:28.200 --> 0:14:32.280 Well that will actually help populate code based on what 0:14:32.920 --> 0:14:36.480 you ask, you know, ask the software to do, and 0:14:36.560 --> 0:14:40.000 so we're using Google's large language models to actually train 0:14:40.080 --> 0:14:43.160 the software to do that. We have a different approach 0:14:43.200 --> 0:14:46.160 than other people where we're doing it with a privacy first, 0:14:46.320 --> 0:14:48.600 and so we want to protect the IP of customers 0:14:48.640 --> 0:14:51.760 that use it, and we don't want to allow that 0:14:52.240 --> 0:14:55.640 IP to be training other companies software. 0:14:56.080 --> 0:14:58.720 Whenever I hear AI, obviously we know, Paul how much 0:14:58.800 --> 0:15:00.840 it is all the rage this year from so many 0:15:00.840 --> 0:15:03.360 different industries, but I'm curious as far as when it 0:15:03.360 --> 0:15:06.560 comes to developer demand what that really means right now, 0:15:06.600 --> 0:15:08.720 when it comes to some of those AI tools. 0:15:10.120 --> 0:15:12.680 Yeah, you know, AI is important. It's another tool to 0:15:12.760 --> 0:15:16.600 allow developers become more efficient. But you know, this is 0:15:16.640 --> 0:15:19.160 a first time in my career where the media has 0:15:19.240 --> 0:15:23.360 actually talked about something way before the technology really being 0:15:23.440 --> 0:15:27.320 generally available. And so in the software development process, we 0:15:27.480 --> 0:15:31.720 just released a devop support that basically talks about in 0:15:31.800 --> 0:15:35.760 the process of making software, only about twenty five percent 0:15:35.800 --> 0:15:38.360 of it is actually done on coding, and so some 0:15:38.520 --> 0:15:42.680 of the AI tools will make coding more more efficient 0:15:42.720 --> 0:15:45.560 and more quicker, but you know, some of the other 0:15:45.640 --> 0:15:49.280 tools out in the market, this quickness and suggestion of 0:15:49.360 --> 0:15:52.800 code has actually created more vulnerabilities. And so our product's 0:15:52.840 --> 0:15:55.960 not currently generally available. It's in private beta. We hope 0:15:55.960 --> 0:15:58.760 to have it generally available later this year, and we're 0:15:58.760 --> 0:16:01.600 working on making sure that the code quality that's being 0:16:01.680 --> 0:16:06.200 recommended is of high quality and has very limited vulnerabilities. 0:16:06.800 --> 0:16:09.200 Hey, Brian, just about thirty seconds. How do you guys 0:16:09.280 --> 0:16:12.160 view cybersecurity? How is that engendered into your software? 0:16:13.240 --> 0:16:16.720 Yeah? Absolutely. Security is top of mind for every company, 0:16:16.840 --> 0:16:20.600 right and the security market continues to grow because you 0:16:20.640 --> 0:16:24.120 have the builders, the buyers, and the hackers, and the 0:16:24.120 --> 0:16:27.520 hackers are always getting better at trying to create different 0:16:27.560 --> 0:16:30.920 mouse traps to breach into the companies. And so one 0:16:30.960 --> 0:16:33.320 of the advantages of our platform is you actually have 0:16:33.360 --> 0:16:37.040 security integrated into the software development process. So the old 0:16:37.080 --> 0:16:40.480 way of actually creating software is the developers would actually 0:16:40.520 --> 0:16:42.920 code and develop the software. They then throw it over 0:16:42.960 --> 0:16:45.640 the wall to the ops and the security teams and 0:16:45.680 --> 0:16:47.720 they would come back and say, hey, you have the 0:16:48.360 --> 0:16:52.640 security vulnerabilities, please go rewrite these lines of codes. Our 0:16:52.720 --> 0:16:55.760 security function is actually built into the software, so as 0:16:55.800 --> 0:16:58.400 you're right in the code, the security is actually telling 0:16:58.440 --> 0:17:00.760 you you have a vulnerability, you need to fix us, 0:17:00.840 --> 0:17:03.000 and we'll fix it in all your code where that 0:17:03.080 --> 0:17:03.960 vulnerability is at. 0:17:04.240 --> 0:17:07.080 Fascinating stuff, coders, That's what we should have done back 0:17:07.119 --> 0:17:07.800 in the day coding. 0:17:07.920 --> 0:17:10.240 Brian Roberts, chief financial officer at get Lab. 0:17:11.840 --> 0:17:15.399 You're listening to the Bloomberg Business Week Podcast. Catch us 0:17:15.440 --> 0:17:19.560 live weekday afternoons from three to six Easter on Bloomberg Radio, 0:17:19.640 --> 0:17:22.920 the Bloomberg Business App, and YouTube. You can also listen 0:17:23.040 --> 0:17:26.120 live on Amazon Alexa from our flagship New York station, 0:17:26.600 --> 0:17:29.359 Just say Alexa Play Bloomberg eleven thirty. 0:17:30.840 --> 0:17:33.360 All right, let's switch to a big, big topic that's 0:17:33.359 --> 0:17:35.480 going to be even more news as we head towards 0:17:35.480 --> 0:17:36.639 the twenty twenty four elections. 0:17:36.640 --> 0:17:37.119 It's always a. 0:17:37.119 --> 0:17:41.480 Big political issue, and that is gun violence. Cassandra Crafossi 0:17:41.560 --> 0:17:44.280 joins us. He's a deputy director of the Center for 0:17:44.440 --> 0:17:48.639 Gun Violence Solutions, located at the Johns Hopkins Bloomberg School 0:17:48.680 --> 0:17:53.520 of Public Health. She joins us on zoom from Charms City, Baltimore, Maryland. 0:17:53.840 --> 0:17:57.160 The Bloomberg School of Public Health is supported by Michael R. Bloomberg, 0:17:57.160 --> 0:18:01.840 founder of Bloomberg LP, and Bloomberg philanthropiece Cassandra. I guess 0:18:01.880 --> 0:18:05.600 the way I think about the gun violence issue in 0:18:05.640 --> 0:18:08.240 the United States is a tweet that I just took 0:18:08.240 --> 0:18:11.440 a screenshot of and I keep and it reads something 0:18:11.480 --> 0:18:15.159 like this. In retrospect Sandy Hook marked the end of 0:18:15.200 --> 0:18:18.280 the gun control debate in the US once America decided 0:18:18.359 --> 0:18:19.520 killing children was bearable. 0:18:19.840 --> 0:18:20.840 It was over. 0:18:21.480 --> 0:18:23.639 That's kind of how I feel about it. That's sad. 0:18:24.119 --> 0:18:26.080 Hopefully there are a lot of people who are still 0:18:26.760 --> 0:18:28.760 passionate about trying to change things out there. Can you 0:18:28.800 --> 0:18:32.520 tell us where are we with the gun violence situation 0:18:32.800 --> 0:18:34.720 in this country right now? 0:18:34.760 --> 0:18:36.680 It just seems as bad as it's ever been. 0:18:38.280 --> 0:18:43.760 Unfortunately, we have seen increases in gun violence, particularly since 0:18:43.840 --> 0:18:45.320 the start of the pandemic. 0:18:46.119 --> 0:18:47.760 There is some promise though. 0:18:47.920 --> 0:18:52.560 Our data for twenty twenty two indicates that overall gun 0:18:52.560 --> 0:18:56.480 death rates have declined slightly since twenty twenty one, but 0:18:56.560 --> 0:19:00.520 we're still substantially higher than we were in twenty nineteen. 0:19:01.400 --> 0:19:04.600 In twenty twenty two, we saw over forty eight thousand 0:19:04.600 --> 0:19:09.399 people die from gun related deaths. That includes homicide and suicide, 0:19:09.400 --> 0:19:11.639 which is the leading cause of gun death in the US. 0:19:12.160 --> 0:19:16.159 Cassandra, is there any reason to have any confidence in 0:19:16.520 --> 0:19:19.080 common sense gun legislation being passed? 0:19:20.680 --> 0:19:24.600 Certainly, we have to be optimistic. At our center. There's 0:19:24.720 --> 0:19:26.000 a large group of us. 0:19:25.840 --> 0:19:29.280 Doing this really important work, which would be even harder 0:19:29.520 --> 0:19:32.520 if we weren't optimistic that we could see change. 0:19:33.080 --> 0:19:34.560 We have an amazing team. 0:19:34.560 --> 0:19:39.080 Of researchers and policy advocates who work at the state 0:19:39.160 --> 0:19:43.040 and federal level. In June of last year, following the 0:19:43.040 --> 0:19:47.280 Buffalo and Uvaldi shootings, we did see the bipartisan Safer 0:19:47.359 --> 0:19:51.720 Communities Act pass at the federal level provided funding for 0:19:51.800 --> 0:19:55.760