WEBVTT - The AI Arms Race and Apple's India Sales 0:00:01.440 --> 0:00:06.720 From Mahard where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Luve Love. 0:00:25.320 --> 0:00:28.040 I'm Caroline Hyde at work Bloomberg's World headquarters in New 0:00:28.120 --> 0:00:29.000 York and. 0:00:28.920 --> 0:00:31.440 I met love Loo in San Francisco. This is Bloomberg 0:00:31.480 --> 0:00:32.559 Technology coming. 0:00:32.360 --> 0:00:33.160 Up in the next hour. 0:00:33.200 --> 0:00:37.200 Alphabet slumps after a report that Samsung has considered replacing 0:00:37.280 --> 0:00:40.680 Google with Microsoft's being as the default search engine on 0:00:40.720 --> 0:00:41.360 its devices. 0:00:41.560 --> 0:00:43.680 We discussed the impact of the AI. 0:00:43.520 --> 0:00:47.560 Race, plus Apple's sales in India. Ramp Up will bring 0:00:47.600 --> 0:00:50.640 you the details and Bloomberg's exclusive reporting which is two 0:00:50.720 --> 0:00:53.800 months ago until WWDC and the. 0:00:53.760 --> 0:00:57.480 Hashtag Love is Blind Live turn to hashtag lover is 0:00:57.560 --> 0:01:00.320 late as Netflix was hindered by traffic issues around the 0:01:00.320 --> 0:01:02.720 popular reality shows Live reunion. 0:01:03.520 --> 0:01:06.920 But first, there's just really one story that's making big moves, 0:01:06.920 --> 0:01:09.760 and that is that New York Times report that Samsung 0:01:10.080 --> 0:01:14.319 is considering replacing Google Search on its installed devices for 0:01:14.440 --> 0:01:18.200 Microsoft's being searched. Microsoft moving three tenths percent up to 0:01:18.240 --> 0:01:20.840 the upside, but look at Alphabet down more than three 0:01:20.840 --> 0:01:22.920 and a half percent. That puts it on track for 0:01:22.959 --> 0:01:26.200 its biggest drop since early February. So clearly the market 0:01:26.240 --> 0:01:29.560 paying attention to what this potentially would mean. The New 0:01:29.600 --> 0:01:32.480 York Times article talking about a potential hit to revenue 0:01:32.480 --> 0:01:35.959 of around three billion dollars for Alphabet, the parent of Google. 0:01:36.200 --> 0:01:38.600 A lot of detail in that report, but clearly the 0:01:38.640 --> 0:01:39.480 market paying attention. 0:01:39.560 --> 0:01:42.720 Caroline, Yeah, and really we see the money move. We 0:01:42.760 --> 0:01:44.840 also want to get to the integrity of Mark Berg 0:01:44.880 --> 0:01:46.679 and whom a police to say is joining us covering 0:01:46.720 --> 0:01:49.800 all things technology, particularly the world of Alphabet out of 0:01:49.840 --> 0:01:54.440 London and Mark When you're trying to analyze how important 0:01:54.680 --> 0:01:56.600 these sorts of narratives are coming from the New York 0:01:56.600 --> 0:02:00.120 Times reporting and they're like, oh, is it realistic that 0:02:00.160 --> 0:02:02.760 this could all be down to artificial intelligence in some way? 0:02:02.760 --> 0:02:05.760 And the way in which they're wrapping them. 0:02:06.200 --> 0:02:08.000 I think this is realistic in the way that it 0:02:08.000 --> 0:02:12.519 comes down to competition. This is the Times report talked 0:02:12.560 --> 0:02:15.480 about how it's shocking to people inside Google. This is 0:02:15.520 --> 0:02:17.440 something they didn't expect for a long time. We have 0:02:17.480 --> 0:02:21.720 this lock on the mobile world right. Android phones are 0:02:21.720 --> 0:02:24.800 built on Google, they are packaged with Google Search. Samsung 0:02:24.960 --> 0:02:28.120 for years have been trying its own versions of artificial 0:02:28.120 --> 0:02:32.919 intelligence services, voice assistant services. They've all kind of failed miserably. 0:02:33.720 --> 0:02:36.760 Apple has has Siri, but is stuck with Google on search. 0:02:36.880 --> 0:02:39.480 And now for the first time, we have this credible 0:02:39.520 --> 0:02:41.240 idea where a company is saying we're actually going to 0:02:41.240 --> 0:02:44.080 go to BING, and everyone including the market, is taking 0:02:44.120 --> 0:02:44.880 it seriously. 0:02:46.320 --> 0:02:48.520 Mark As we look at search as a marketplace, I 0:02:48.520 --> 0:02:51.040 think Google has more than ninety percent of market share 0:02:51.480 --> 0:02:55.800 globally across platforms based on third party data. But I 0:02:55.800 --> 0:02:58.400 guess the question at this point is how real is 0:02:58.440 --> 0:03:01.320 it for Samsung and it's two hundred and sixty million 0:03:01.320 --> 0:03:04.640 devices shipped last year to just pivot to a completely 0:03:04.680 --> 0:03:06.000 new preferred search app. 0:03:06.680 --> 0:03:09.800 I mean, that would be unprecedented in some ways. You 0:03:09.800 --> 0:03:12.880 know that is you're certainly gonna have some adoption with consumer. 0:03:12.919 --> 0:03:17.160 I imagine Samsung listen is going to take this very carefully, 0:03:17.280 --> 0:03:19.400 right Like, they don't want they obviously want to sell 0:03:19.440 --> 0:03:21.679 more phones, and they don't want a world in which 0:03:21.680 --> 0:03:24.680 they ship a device with with BING and they're selling 0:03:24.760 --> 0:03:28.000 fewer phones. But this is a lot of leverage here 0:03:28.040 --> 0:03:29.920 with this deal with Google where they set across the 0:03:29.960 --> 0:03:32.920 table and Samsung is the biggest hardware partner in the 0:03:32.960 --> 0:03:36.240 Android world and something that they've been working closely with 0:03:36.280 --> 0:03:38.320 Google for a long time. The complication here is that 0:03:38.360 --> 0:03:40.920 you know, Google also provides Android for Free, which is 0:03:40.960 --> 0:03:43.560 not just search, but it's the play store, right, It's 0:03:43.640 --> 0:03:46.520 it's all the suite of apps that make. 0:03:46.400 --> 0:03:48.200 The Android phone work. 0:03:48.680 --> 0:03:51.400 And Google of course has their own Pixel Phone that 0:03:51.440 --> 0:03:56.480 has struggled to really become anything as serious contender along 0:03:56.480 --> 0:04:00.560 with Samsung and Apple. But we understand why Google for 0:04:00.760 --> 0:04:03.760 has been applowing billions of dollars into that for a 0:04:03.800 --> 0:04:05.600 scenario just precisely like this. 0:04:06.360 --> 0:04:08.400 The irony, of course all of this mark is that 0:04:08.480 --> 0:04:12.960 we all associated really the world of artificial intelligence with Google, 0:04:13.080 --> 0:04:14.960 the focus on deep mind from very early on the 0:04:14.960 --> 0:04:17.919 way and from which they've deployed large languid modules and 0:04:18.160 --> 0:04:21.240 AI vision into many of their use cases. What did 0:04:21.279 --> 0:04:24.159 you make of Snapitche in particular taking to the airwaves 0:04:24.440 --> 0:04:27.000 over the weekend and how he spoke perhaps people feeling 0:04:27.040 --> 0:04:28.520 that they're kind of behind on this race. 0:04:29.839 --> 0:04:32.320 Yeah, it was an interesting approach going in sixteen minutes. 0:04:32.520 --> 0:04:34.920 I mean they're talking at audience. I guess is Middle 0:04:34.960 --> 0:04:39.240 America is telling the world that we are the message 0:04:39.240 --> 0:04:40.720 they've been saying for years. So if you listen to 0:04:40.720 --> 0:04:43.200 any Google earnings call, this has been a consistent we 0:04:43.240 --> 0:04:46.440 are ahead on AI, and I think that was certainly true. 0:04:46.520 --> 0:04:49.240 What I do think what chat GIBD did, and I 0:04:49.240 --> 0:04:51.680 don't know necessarily there's gonna be a lot of comparisons 0:04:51.720 --> 0:04:55.120 about the technical prowess, but what they actually came out 0:04:55.160 --> 0:04:57.599 with a consumer application that people can interact with and 0:04:57.640 --> 0:04:59.720 companies can interact with. Right like, every startup in the 0:04:59.760 --> 0:05:04.520 world world is testing out the Church GBT API, something 0:05:04.600 --> 0:05:09.960 that really they locked into this kind of magic that Google, 0:05:10.080 --> 0:05:14.360 despite maybe a technical lead, hasn't really unlocked. That being said, 0:05:14.400 --> 0:05:16.160 you know, I think that you know, Google's been investing 0:05:16.200 --> 0:05:18.479 so much in this, it has so many, so many engineers, 0:05:18.800 --> 0:05:21.920 you can't count them out of this. But certainly, and 0:05:22.320 --> 0:05:25.480 sort of like the narrative and technology companies as everyone 0:05:25.600 --> 0:05:26.920 wants to try Chat GBT. 0:05:28.240 --> 0:05:30.480 Another part of the New York Times ARSCH call Caroline 0:05:30.520 --> 0:05:33.279 was the idea that Google is going to bring AI 0:05:33.360 --> 0:05:36.600 functionality to search. And actually Google did issue me a 0:05:36.680 --> 0:05:39.720 comment and a statement saying, by the way, we've been 0:05:39.800 --> 0:05:42.919 using AI in Google Search for years, and they'd believe 0:05:42.920 --> 0:05:46.200 they've done so in a safe and responsible way, you know, 0:05:46.400 --> 0:05:48.200 going back to the idea like we've been at this 0:05:48.279 --> 0:05:50.560 for a while. Anyway, I thought that was interesting. 0:05:50.240 --> 0:05:52.440 And Amazon said the same thing, didn't they in Adi 0:05:52.520 --> 0:05:56.520 Jasse's letter, We've been doing this for decades, by the way, team. 0:05:55.640 --> 0:05:58.640 Yeah, exactly, all right, blueblosmart Berg and out of London. 0:05:58.680 --> 0:06:01.440 Thank you so much with this topic and bringing Rowhit 0:06:01.480 --> 0:06:06.080 called Carne of Roth Capital Partners. The markets have given 0:06:06.120 --> 0:06:10.799 a clear response row Hit to this story. Alphabet shares 0:06:10.880 --> 0:06:14.359 down the most since early fed. What's your reaction to 0:06:14.440 --> 0:06:19.320 the threat of Microsoft being getting traction in the Samsung 0:06:19.440 --> 0:06:20.400 smartphone space? 0:06:21.760 --> 0:06:21.960 Yeah? 0:06:22.000 --> 0:06:24.960 Absolutely, I think thanks for having me. I think for 0:06:25.000 --> 0:06:27.600 the first time in fifteen years, there is a some 0:06:27.880 --> 0:06:32.640 serious competitor to Search, to Google. I think that's what 0:06:32.680 --> 0:06:35.240 the market is telling you. For the last fifteen years, 0:06:35.520 --> 0:06:38.279 we have never had a real competitor. You never remember, 0:06:38.600 --> 0:06:43.240 people had Aol, people had Yahoo, people had being Facebook, 0:06:43.240 --> 0:06:47.520 even troide search. Obviously, Apple tried Search. Every company has 0:06:47.560 --> 0:06:51.000 tried to be a dominating company in search and hasn't 0:06:51.040 --> 0:06:54.720 budged Google at all. Last ninety days, people are questioning that, 0:06:55.080 --> 0:06:57.840 and that's what we are trying to figure out whether 0:06:58.480 --> 0:07:02.320 is this a sentiment or perception issue or is this 0:07:02.800 --> 0:07:06.240 twelve months from now a real fundamental issue. Right now, 0:07:06.279 --> 0:07:07.880 it is just a sentiment issue. 0:07:07.960 --> 0:07:11.040 In my opinion, Caroline, we can go back to the 0:07:11.120 --> 0:07:14.800 third party data, right, he is always ninety percent of 0:07:14.840 --> 0:07:17.160 the search market, at least globally. 0:07:17.480 --> 0:07:20.200 Yeah, And I think to that point ed, where was 0:07:20.600 --> 0:07:24.240 accusations last week being made that actually, if Google wasn't 0:07:24.280 --> 0:07:28.360 so monopolistic in its power, perhaps we'd see further iteration 0:07:28.440 --> 0:07:31.160 in chatchipt and not being owned just by open Ai. 0:07:31.280 --> 0:07:34.680 But row hits speak to that speak to what perhaps 0:07:35.040 --> 0:07:36.760 the CEOs and the pitch I is trying to make 0:07:36.760 --> 0:07:39.880 an argument for, is that they've been a a trusted 0:07:40.080 --> 0:07:46.080 arbiter of this sort of reskilling, retooling, generational shift in technology, 0:07:46.280 --> 0:07:49.120 and maybe the pace is not being quite so controlled 0:07:49.120 --> 0:07:50.360 by other competitors. 0:07:51.240 --> 0:07:53.680 I think so as an in Google be trust In 0:07:53.720 --> 0:07:57.080 my opinion, they have the data, they have the consumer behavior, 0:07:57.240 --> 0:07:59.720 they have the consumer front end to Internet, and they're 0:07:59.800 --> 0:08:02.640 all that over the years, and they've gone through iterations 0:08:02.680 --> 0:08:06.080 through mobile, through desktop and various different ways. So, in 0:08:06.080 --> 0:08:08.920 my opinion, from a stock perspective, I feel Google will 0:08:08.960 --> 0:08:12.880 come out of this probably unharmed or maybe even stronger. 0:08:13.120 --> 0:08:16.600 In the interim. I think Chad GPD it proposes a real, 0:08:16.680 --> 0:08:20.120 real issue to how kind of search is going to 0:08:20.160 --> 0:08:23.480 evolve over the next six months. Whether Google is ahead 0:08:23.520 --> 0:08:25.680 of the curve, We're always going to be a follower, 0:08:25.720 --> 0:08:28.120 will dictate the stock price in the next six months. 0:08:28.120 --> 0:08:32.200 I feel Google is going to be following the narrative 0:08:32.240 --> 0:08:34.520 that chat GPD is setting out there. That that makes 0:08:34.559 --> 0:08:37.479 it a little bit harder for Google management to be aggressive, 0:08:37.760 --> 0:08:40.240 and I feel they need to step in front and 0:08:40.520 --> 0:08:44.200 come out with more aggressive product launches and open up 0:08:44.200 --> 0:08:46.760 their AI kimono, if you will, in a way that 0:08:47.160 --> 0:08:48.320 Chad GPT has done. 0:08:49.600 --> 0:08:49.760 Right. 0:08:49.760 --> 0:08:52.079 Hey, you've got a one hundred and eight dollars eighty 0:08:52.120 --> 0:08:53.960 seven cents target? 0:08:54.000 --> 0:08:56.160 Is that right on Google buy rating? 0:08:56.920 --> 0:08:59.760 How much of what you see in alphabet is the 0:08:59.760 --> 0:09:04.800 potential that BARD brings the legacy of work in artificial intelligence. 0:09:06.480 --> 0:09:09.160 By the way, just to clarify price target as one 0:09:09.280 --> 0:09:11.040 twenty six, you're. 0:09:11.000 --> 0:09:12.800 Right, I apologize one twenty six. 0:09:13.320 --> 0:09:17.079 Yeah, all good, I think again. In my opinion, Bard 0:09:17.160 --> 0:09:19.600 is just one of the several experiments that we will 0:09:19.640 --> 0:09:23.400 see from Google just to highlight that what you were 0:09:23.400 --> 0:09:27.640 discussing earlier that look, we have been doing AI AI 0:09:27.720 --> 0:09:31.040 research and everything that the industry is talking about for 0:09:31.120 --> 0:09:34.079 the last maybe a decade. CHAD GPT is based on 0:09:34.120 --> 0:09:37.240 the technology that was created by Google eight years ago. 0:09:37.360 --> 0:09:40.240 Chad GPD started maybe six years back. So again, Google 0:09:40.280 --> 0:09:43.480 has been the foundation of global AI research for many, 0:09:43.480 --> 0:09:46.200 many years. And I think that's where we'll see more 0:09:46.240 --> 0:09:49.400 experiments and more consumer use cases unlock over the next 0:09:49.960 --> 0:09:51.840 for three to six months. And I think Google needs 0:09:51.880 --> 0:09:55.280 to step their game up in the PR as far 0:09:55.280 --> 0:09:56.360 as PR is concerned. 0:09:57.720 --> 0:10:00.440 Right here called canne Rough Capital Partners than thank you 0:10:00.480 --> 0:10:03.360 for your quick reaction to that story, Caroline in. 0:10:03.320 --> 0:10:05.000 Google would trust quite the key line. 0:10:05.000 --> 0:10:07.240 Meanwhile, let's stick with AI ED because or the first 0:10:07.280 --> 0:10:11.959 wave of academic research applying chatchipt to our world of finance, 0:10:12.280 --> 0:10:15.800 it's arriving. Two new papers have been published this month 0:10:15.840 --> 0:10:19.240 alone that deployed chatchipt in market relevant tasks, One in 0:10:19.320 --> 0:10:22.560 deciphering whether the Federal Reserve statements are hawkish or dubbish, 0:10:22.679 --> 0:10:25.840 whether they pro interest rate cuts or against them, and 0:10:25.880 --> 0:10:28.160 the other in determining where the headlines are good or 0:10:28.200 --> 0:10:32.480 bad for stocks open AI. Get this said, aced both 0:10:32.760 --> 0:10:36.800 tests with chatchipt and I think, of course money managers, 0:10:36.840 --> 0:10:39.720 particularly the quants, have been using large AGORID models for 0:10:39.720 --> 0:10:40.240 a long time. 0:10:40.320 --> 0:10:43.480 But this is about democratization once again, in. 0:10:43.480 --> 0:10:45.079 My mind, goes back to that story we were telling 0:10:45.160 --> 0:10:47.400 last year as well about all of Wall Street hiring 0:10:47.480 --> 0:10:50.760 talent away from the technology sector, people that could use 0:10:50.800 --> 0:10:53.800 and interpret the data generated by these tools. 0:10:54.360 --> 0:10:57.120 And the point being is to whether or not you 0:10:57.160 --> 0:10:59.600 can easily trade on these sorts of numbers, whether it 0:10:59.640 --> 0:11:02.200 means that it all has to be owned by certain 0:11:02.600 --> 0:11:07.400 well very wealthy hedge funds and quant teams that have 0:11:07.559 --> 0:11:10.760 the power the money to hire such expensive talent from 0:11:10.760 --> 0:11:13.640 the technology world, or whether in fact people can start 0:11:13.640 --> 0:11:16.440 turning to these plugins like a Chatchy Beuta to just 0:11:16.720 --> 0:11:18.600 well certainly cost saved to a large extent. 0:11:19.280 --> 0:11:21.440 And when you have Bank of America's Brian moynihan and 0:11:21.520 --> 0:11:24.959 JP Morgan's Jamie Diamond talking about AI tends to give 0:11:25.000 --> 0:11:26.760 it a bit of a momentum, which we will also 0:11:26.800 --> 0:11:37.959 stick with. On Bloomberg Technology, Let's get straight to Apple. 0:11:38.040 --> 0:11:40.200 Shares of the iPhone maker down half percent. 0:11:40.200 --> 0:11:44.360 Bloomberg reporting overnight that sales in India reached six billion 0:11:44.440 --> 0:11:48.080 dollars for the twelve month period through March, which represents 0:11:48.080 --> 0:11:50.920 a fifty percent sales growth for the same one year 0:11:51.000 --> 0:11:54.040 period a year earlier. We're learning more, Caroline, about this 0:11:54.200 --> 0:11:56.880 market India in terms of sales, and we know about 0:11:56.880 --> 0:11:59.439 the supply chain story. Let's bring up this chart and 0:11:59.480 --> 0:12:02.760 look at actually the breakdown of Apple sales globally, because 0:12:02.760 --> 0:12:06.360 India is not technically broken out this Bloomberg reporting. According 0:12:06.400 --> 0:12:09.560 to sources, it's lumped in with the rest of Asia Pacific, 0:12:09.600 --> 0:12:12.240 which is seven percent of sales for the full year 0:12:12.400 --> 0:12:15.319 twenty twenty two. But it seems like we're growing traction 0:12:15.440 --> 0:12:18.200 there a market where the high price points have been 0:12:18.240 --> 0:12:20.760 a difficult one for Apple to crack. But we know 0:12:20.800 --> 0:12:23.840 that Tim Cook is in that country right now, Caroline. 0:12:23.559 --> 0:12:25.959 Yeah, and it's all about this growing middle class willing 0:12:26.040 --> 0:12:29.000 to spend on those higher price points. It's just talk 0:12:29.040 --> 0:12:31.640 across the board on all things Apple right now. Bloomberg's 0:12:31.679 --> 0:12:34.320 alex Web clocking in late for us over in London, 0:12:34.440 --> 0:12:37.199 just discuss for the first and foremost We've got so 0:12:37.320 --> 0:12:39.360 much to go through with Apple, but the India focus 0:12:39.440 --> 0:12:42.000 the fact that they are able to only do supply 0:12:42.080 --> 0:12:43.640 there but also see the demand there. 0:12:44.960 --> 0:12:46.080 Yeah, there are two pieces of this. 0:12:46.160 --> 0:12:49.079 Clearly there's part of the de risking of its manufacturing 0:12:49.120 --> 0:12:51.600 by just trying to pull a little bit out of China, 0:12:51.640 --> 0:12:55.760 and we should highlight it is really just a little bit. Coincidentally, 0:12:55.760 --> 0:12:58.840 it's about seven billion dollars in sales. Just a billion, 0:12:59.040 --> 0:13:01.640 sorry in revenue they generate from products that have made 0:13:01.679 --> 0:13:04.640 their six billion is what they're doing in sales now. 0:13:04.720 --> 0:13:07.160 Quite often, when when people talk about India, they say 0:13:07.200 --> 0:13:09.560 it's ten years behind China. I mean ten years ago 0:13:09.600 --> 0:13:11.959 Apple was still doing in excess of twenty five billion 0:13:12.000 --> 0:13:14.560 dollars in sales in China. So it's got a long 0:13:14.640 --> 0:13:16.959 way to go to get up to what is now 0:13:17.000 --> 0:13:19.880 in excess of seventy billion dollars a year in China. 0:13:20.000 --> 0:13:23.440 But it is clearly making traction that price sensitivity that 0:13:23.600 --> 0:13:26.360 Ed talks about, clearly a massive deal lots of people 0:13:26.480 --> 0:13:28.560 encountering out there, is going to take a long time 0:13:28.600 --> 0:13:30.240 for them to be able to take a meaningful chunk 0:13:30.400 --> 0:13:32.719 out of the unit sales at least that Samsung does there. 0:13:34.240 --> 0:13:35.880 We know that Tim Cooks on the road has been 0:13:35.920 --> 0:13:39.760 tweeting pictures of himself in India. Bloomberg had reported that 0:13:39.840 --> 0:13:43.320 he himself will attend the opening of both the Mumbai 0:13:43.320 --> 0:13:46.680 and New Deli stores this week. We are waiting for 0:13:46.760 --> 0:13:50.160 June and WWDC. It's all good focusing on one market, 0:13:50.160 --> 0:13:53.120 but we're also interested in product and this is supposed 0:13:53.160 --> 0:13:55.240 to be the biggest WWDC ever. 0:13:55.280 --> 0:13:56.800 What are we expecting, Alex. 0:13:57.840 --> 0:13:59.240 Well, I don't know about the biggest ever, but it's 0:13:59.280 --> 0:14:01.760 only the biggest launch for a very long time. We're 0:14:01.800 --> 0:14:05.240 going to be seeing this new headset. According to you know, 0:14:05.240 --> 0:14:08.360 our colling Mark German's reporting, this is as we know, 0:14:08.520 --> 0:14:10.760 this is for developers. Therefore, there's going to be a 0:14:10.760 --> 0:14:16.120 big emphasis on what is likely to be called xroos 0:14:16.160 --> 0:14:18.880 that is going to be to their mixed reality headset, 0:14:18.920 --> 0:14:21.960 what iOS is to iPhones, what mac os is to 0:14:22.120 --> 0:14:26.000 Max and MacBooks. There's really going to be a huge 0:14:26.000 --> 0:14:30.560 effort there to show developers what they can do and 0:14:30.600 --> 0:14:33.240 so crucially why it's going to be worth their while 0:14:33.400 --> 0:14:37.120 developing for this platform. Developers are really Apple's edge when 0:14:37.120 --> 0:14:39.600 it comes to any new product. You know, Facebook, Meta 0:14:39.680 --> 0:14:43.280 have really struggled to get a good developer base into 0:14:43.320 --> 0:14:47.120 their product lineup. If Apple can convince it's developers to 0:14:47.240 --> 0:14:51.040 make good apps, then it will give the headset when 0:14:51.040 --> 0:14:53.880 it's released, perhaps later this year, a real leg up 0:14:53.880 --> 0:14:56.720 in competing with this very much nascent space. 0:14:57.440 --> 0:14:59.760 Yeah, Caroline, that's the two debates of the industry. Right 0:15:00.080 --> 0:15:03.640 much demand is there for high end augmented reality headset? 0:15:03.680 --> 0:15:05.280 And how much emphasis do they want to put on 0:15:05.360 --> 0:15:07.680 health when it comes to your smart watch? 0:15:07.840 --> 0:15:08.040 Yeah? 0:15:08.040 --> 0:15:10.080 And I think, actually, as that's a good point, isn't it. 0:15:10.120 --> 0:15:13.040 We're looking at this new, bright, shiny object. They're also 0:15:13.120 --> 0:15:16.280 updating the operating systems of some of their original products. 0:15:16.280 --> 0:15:17.440 I think are the watch is going to have a 0:15:17.440 --> 0:15:20.120 bit of a feature there. They've also got new Mac products. 0:15:20.200 --> 0:15:22.880 What else can we expect from them? 0:15:23.000 --> 0:15:25.080 I think that it does the actual new hardware. We're 0:15:25.080 --> 0:15:27.240 going to be seeing some new MacBooks. But you're quite right, 0:15:27.280 --> 0:15:29.680 they're going to be updating the full range of software, 0:15:29.680 --> 0:15:34.400 so xros, tvOS, mac os, iOS, watch os, all of 0:15:34.440 --> 0:15:37.080 these things coming with a few more bells and whistles. 0:15:37.080 --> 0:15:40.480 We're going to be seeing the Apple you know, self 0:15:40.560 --> 0:15:44.160 designed chips going into the MacBook Pro range, which will 0:15:44.200 --> 0:15:47.080 be something new and you know All in all, I 0:15:47.120 --> 0:15:49.720 think we're probably all those things are going to fade 0:15:49.720 --> 0:15:52.400 into insignificance given the attention that's going to be given 0:15:52.440 --> 0:15:55.000 to these new headsets. But there'll be lots of fun 0:15:55.080 --> 0:15:56.840 tools for developers to play with. 0:15:58.080 --> 0:15:58.400 All right. 0:15:58.440 --> 0:16:00.520 Thanks to Bloomberg, x Alix Web who line for a 0:16:00.560 --> 0:16:03.160 long time, is out here in San Francisco. He knows 0:16:03.160 --> 0:16:05.960 this company inside out just as well as Mark German. 0:16:06.000 --> 0:16:09.360 We're grateful to have him. 0:16:09.480 --> 0:16:13.480 All right, coming up the highly anticipated SpaceX starship. It's 0:16:13.520 --> 0:16:15.960 been put on hold. We'll tell you what happened next, Caroline. 0:16:16.120 --> 0:16:18.240 Yeah, and let's just for a moment take a beat 0:16:18.360 --> 0:16:20.960 as we look at some incredible shots of what could 0:16:21.000 --> 0:16:22.960 have been today as what actually. 0:16:22.600 --> 0:16:24.400 Is going on in the market right here, right now. 0:16:24.440 --> 0:16:26.920 We had some strongly economic data, particularly coming out in 0:16:26.960 --> 0:16:28.360 New York that hits sentiment. 0:16:28.440 --> 0:16:30.280 We see, of course good news being bad news for 0:16:30.320 --> 0:16:33.440 techtocs were up by four tenths of percent. This has Bloomberg. Oh, 0:16:33.480 --> 0:16:35.000 and also a comment on where. 0:16:34.880 --> 0:16:36.440 Only you should be putting your money to work from 0:16:36.480 --> 0:16:37.480 some experts as well. 0:16:37.720 --> 0:16:42.560 Cities Wealth Cio had this to say, So, companies. 0:16:42.160 --> 0:16:44.960 That have moted around them, you know, different technology companies 0:16:45.000 --> 0:16:48.040 and other industries where you can see both margin growth 0:16:48.280 --> 0:16:49.960 and revenue growth should be rewarded. 0:17:02.000 --> 0:17:04.159 It's time now for talking tech. Enil Musk. 0:17:04.320 --> 0:17:07.840 Well, he's incorporated a new entity called Xai. 0:17:08.000 --> 0:17:10.439 It's all calling to Nevada State documents. Now. 0:17:10.440 --> 0:17:14.000 While the documents don't list the company's purpose, Sarama speculating 0:17:14.000 --> 0:17:14.960 that these efforts could be. 0:17:14.920 --> 0:17:17.200 Part of a larger project to rival the. 0:17:17.240 --> 0:17:19.480 Likes of companies like open Ai, which, of course Musk, 0:17:19.760 --> 0:17:23.879 having initially helped found, is now frequently criticized and in 0:17:23.960 --> 0:17:27.440 other Musk news. Yes there's more, but SpaceX it's postponed 0:17:27.480 --> 0:17:30.040 the launch of its massive Starship rocket that was set 0:17:30.080 --> 0:17:32.399 to lift off earlier today. Now the company and CEO, 0:17:32.760 --> 0:17:36.400 of course, El Musk, confirmed there was a pressurization issue 0:17:36.640 --> 0:17:37.800 minutes before the launch. 0:17:37.880 --> 0:17:40.480 It all right, let's stick with the big story, and 0:17:40.480 --> 0:17:43.120 we're joined by Bloomberg News is Space reporter Lauren Grusse, 0:17:43.119 --> 0:17:46.360 who is out there on South Padre Island in Texas. 0:17:46.520 --> 0:17:49.440 We know why there was a pause, a delay, a scrub. 0:17:50.040 --> 0:17:52.119 Will we see starship launch this week? 0:17:53.760 --> 0:17:56.800 You know that is all variable and honestly, this is 0:17:56.920 --> 0:17:59.359 just the name of the game. When it comes to 0:17:59.520 --> 0:18:02.719 covering rockets, especially the first launch of a brand new 0:18:02.800 --> 0:18:03.879 rocket like Starship. 0:18:04.560 --> 0:18:06.400 You know there are going to be scrubs. In fact, 0:18:06.520 --> 0:18:06.800 if it. 0:18:06.840 --> 0:18:09.320 Had gone off today, I would have been shocked, because 0:18:09.560 --> 0:18:11.800 that is just how these things go when you're testing 0:18:11.840 --> 0:18:12.800 a brand new rocket. 0:18:13.119 --> 0:18:14.720 Will we see it go this week? 0:18:14.760 --> 0:18:17.280 I really hope so, because I'm staying in South Padre. 0:18:17.680 --> 0:18:19.480 But you know, if I'm going to be stuck in. 0:18:19.400 --> 0:18:22.840 Any place, there are worst places to be stuck, Lauren. 0:18:23.040 --> 0:18:25.080 I mean, already we have from Ilol Musk trying to 0:18:25.160 --> 0:18:28.680 put perhaps a positive spin on it, seeming pretty optimistic. 0:18:28.840 --> 0:18:31.639 But I mean it also might align with one of 0:18:31.680 --> 0:18:32.560 his favorite days. 0:18:32.640 --> 0:18:34.680 Right, Yes, so. 0:18:34.800 --> 0:18:39.879 There is a possibility that we could launch on April twentieth. 0:18:40.400 --> 0:18:43.760 You know, there are certain things associated with a date. 0:18:43.880 --> 0:18:45.960 I won't go into them, but yes, I think it 0:18:45.960 --> 0:18:48.399 would definitely please Elon Musk if we did launch on 0:18:48.440 --> 0:18:48.880 that date. 0:18:49.920 --> 0:18:54.240 Right, This is significant, Caroline, Right, Starship sixteen point seven 0:18:54.680 --> 0:18:58.040 million pounds of thrust. That's double what Satin five was 0:18:58.080 --> 0:19:01.360 capable of doing in the seventeenth This is a milestone, 0:19:01.400 --> 0:19:04.640 not just for the industry, Lauren, but for mankind. 0:19:04.840 --> 0:19:06.600 Why, though, is it a milestone. 0:19:07.240 --> 0:19:09.320 Well, if you think about it, I mean, the reason 0:19:09.320 --> 0:19:12.399 that Elon Musk founded SpaceX to begin with was to 0:19:12.480 --> 0:19:15.960 start a human settlement on Mars. And you know, I 0:19:16.000 --> 0:19:18.600 spoke with analysts, you know, leading up to this. It 0:19:18.640 --> 0:19:21.080 really has all come down to this. This is the 0:19:21.280 --> 0:19:24.080 vehicle that they will eventually use to send people to 0:19:24.119 --> 0:19:25.000 deep space. 0:19:24.880 --> 0:19:25.800 Like the Moon and Mars. 0:19:26.040 --> 0:19:27.760 And the only way that they can make that dream 0:19:27.760 --> 0:19:31.120 for reality is if they prove that Starship can actually 0:19:31.200 --> 0:19:34.439 launch to space. So there's still an extremely long road 0:19:34.520 --> 0:19:37.680 ahead for before anybody is taking any steps on any 0:19:37.720 --> 0:19:39.919 other worldly surfaces from Starship. 0:19:40.240 --> 0:19:41.960 But the point is they have to show. 0:19:41.760 --> 0:19:44.400 That it can reach space and it can reach near 0:19:44.520 --> 0:19:47.679 orbital speeds and actually get into orbit before we have 0:19:47.760 --> 0:19:50.080 any chance of seeing this dream become a reality. 0:19:50.440 --> 0:19:54.080 And if it does happen, Lauren, very briefly, what do 0:19:54.080 --> 0:19:54.800 we expect. 0:19:54.480 --> 0:19:55.480 To actually happen. 0:19:56.720 --> 0:19:58.119