WEBVTT - Apple Unveils iPhone 14 and Satellite Capabilities 0:00:02.200 --> 0:00:05.560 From the heart of where innovation, money and power Collie 0:00:06.320 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:28.880 Emily Jay. I'm Emily changing Coopertino and this is Bloomberg Technology. 0:00:28.960 --> 0:00:31.960 We are alive from Apple's campus where the company just 0:00:32.080 --> 0:00:37.320 unveiled its next generation of devices and upgrades to new iPhones, watches, 0:00:37.320 --> 0:00:41.720 and AirPods, focusing on health, safety and satellite connectivity. And 0:00:41.760 --> 0:00:44.519 there was one big surprise the price of the bottom 0:00:44.560 --> 0:00:49.519 of the line iPhone unchanged despite the worst inflation in decades. 0:00:49.560 --> 0:00:51.879 We are going to give you the full download, but 0:00:51.960 --> 0:00:53.680 first I want to get a look with Apple bringing 0:00:53.720 --> 0:00:56.920 Carolina Milan as of creative Strategies. Who's here with me 0:00:57.440 --> 0:01:00.280 at Apple headquarters inside the Steve jobs the for the 0:01:00.280 --> 0:01:04.399 first time in a few years. Actually, um, how significant 0:01:04.400 --> 0:01:07.480 do you think these upgrades are? And key are people 0:01:07.480 --> 0:01:12.000 going to buy these new devices with increasing inflation higher 0:01:12.000 --> 0:01:14.240 than you know it's been in forty years. I think 0:01:14.240 --> 0:01:16.440 it's been interesting to see that the focus today has 0:01:16.520 --> 0:01:19.360 been on real pain points that consumer have and also 0:01:19.480 --> 0:01:22.920 hit on the key drivers that you see consumer talk 0:01:23.000 --> 0:01:25.640 more and more about. Which is better life, is a 0:01:25.720 --> 0:01:29.480 better display, is a better camera with low light conditions. 0:01:30.360 --> 0:01:33.000 You saw that, and you saw out Tim Cook opened 0:01:33.120 --> 0:01:35.840 devent today talking about the value of each product and 0:01:35.880 --> 0:01:38.560 then the magic that the three products that we were 0:01:38.640 --> 0:01:41.200 here for today bring together. And I think that's what 0:01:41.560 --> 0:01:44.520 you have when you're thinking about upgrading. You might have 0:01:44.600 --> 0:01:47.440 one of these products that are older than another and 0:01:47.560 --> 0:01:50.720 you want to get into the cycle so that you 0:01:50.760 --> 0:01:53.480 can take better advantage of the new features, but also 0:01:53.520 --> 0:01:55.880 feel that magic that Cook was talking about. Well, I 0:01:55.880 --> 0:01:58.880 wonder if the most significant announcement was the price of 0:01:59.040 --> 0:02:02.840 that you know, lowest tier iPhone fourteen and it being 0:02:02.880 --> 0:02:07.000 the same as the iPhone thirteen was last year. Yeah, 0:02:07.480 --> 0:02:10.640 the price are the same is a good and depending 0:02:10.680 --> 0:02:13.320 where you're looking at it right that we have seen 0:02:13.400 --> 0:02:16.639 some of the consumer electronic companies bringing their prices up 0:02:16.760 --> 0:02:20.160 earlier in the year because of the inflation. Others we 0:02:20.280 --> 0:02:22.799 kept on the same. I think what was interesting to 0:02:23.160 --> 0:02:26.160 maybe sweeten a little bit that price point is the 0:02:26.240 --> 0:02:29.200 deals for the trade ins that you've seen Apple mentioned 0:02:29.240 --> 0:02:31.720 through the careers in the US and directly from Apple 0:02:32.040 --> 0:02:35.639 eight hundred two thou dollars depending on what model you've 0:02:35.680 --> 0:02:40.440 traded in. So let's talk about the the other things. 0:02:40.720 --> 0:02:43.480 Satellite connectivity. I know that was a really big deal 0:02:44.000 --> 0:02:46.960 and how significant is that going to be in terms 0:02:47.000 --> 0:02:50.320 of driving more people to buy these phones. I don't 0:02:50.320 --> 0:02:54.240 know that the satellite is necessarily a purchased driver per se, 0:02:54.360 --> 0:02:56.760 but I think is that extra peace of mind the 0:02:56.840 --> 0:03:00.080 same way as you think about insurance, Right, you have it, 0:03:00.280 --> 0:03:02.919 you have to purchase it. You hope you'll never use it, 0:03:03.040 --> 0:03:05.440 but you know that is bear in case you need it. 0:03:05.639 --> 0:03:08.959 And it's the same with the feature of car crash 0:03:09.040 --> 0:03:12.200 detection as an example piece of mind for you know, 0:03:12.360 --> 0:03:16.640 parents with new drivers coming on feature that is both 0:03:16.720 --> 0:03:19.959 on the watch end, on the phone all the way 0:03:20.040 --> 0:03:23.840 to the you know, throughout the portfolio. So the safety 0:03:24.120 --> 0:03:27.960 was an extra, if you like, pillar on what Apple 0:03:28.080 --> 0:03:30.960 built today across the portfolio. All right, let's talk about 0:03:30.960 --> 0:03:36.120 the Apple Watch. Ultra significant pricing news there as well, 0:03:37.040 --> 0:03:40.720 very much undercutting garment at the high end on the market. 0:03:40.760 --> 0:03:43.040 They called this watch your dive computer. It can go 0:03:43.160 --> 0:03:45.840 forty below the surface of the ocean. I mean, it 0:03:45.840 --> 0:03:48.000 seems pretty cool, but how big a market is there 0:03:48.040 --> 0:03:52.320 for a niche rugged smart watch. The reality is that 0:03:52.520 --> 0:03:55.760 you have the core people that would have a garment, 0:03:55.840 --> 0:03:57.840 and then you have the wanna be and the market 0:03:57.840 --> 0:04:00.240 for the wanna be, you know, the ones that wish 0:04:00.240 --> 0:04:02.280 but it could do an iron then, but they can't. 0:04:03.280 --> 0:04:06.240 It's considerable, right, And I think what was smart about 0:04:06.280 --> 0:04:09.160 the design is that despite the size that is so large, 0:04:09.440 --> 0:04:12.320 is very lightweight and so you know, I have a 0:04:12.360 --> 0:04:15.520 small risk like you do, and and it looks humongous 0:04:15.520 --> 0:04:18.120 on the risk, but it's not heavy. So I think 0:04:18.160 --> 0:04:20.200 they've done a good job in trying from a style 0:04:20.279 --> 0:04:22.720 perspective to appeal to a broader market. And they could 0:04:22.720 --> 0:04:25.600 have price if they wanted to, but they did not. 0:04:25.920 --> 0:04:28.359 So what are you looking for in terms of the numbers. 0:04:28.400 --> 0:04:31.080 I spoke with Tim Cook at the end of earnings 0:04:31.440 --> 0:04:34.120 last quarter and he said they do expect revenue to 0:04:34.360 --> 0:04:37.640 accelerate in the September quarter. Of course, we know that 0:04:38.240 --> 0:04:40.279 new iPhones are going to go on sale a week 0:04:40.320 --> 0:04:42.359 before the quarter end, so they can get some additional 0:04:42.920 --> 0:04:46.240 uh boost there. You know, how much of a difference 0:04:46.279 --> 0:04:47.680 is that going to make? And could it give the 0:04:47.680 --> 0:04:50.360 the global economy kind of a little morale boost? If 0:04:50.400 --> 0:04:54.080 Apple is able to you know, beat or even meet expectations, 0:04:54.360 --> 0:04:57.279 I think you have three lines that will contribute to 0:04:57.320 --> 0:04:59.640 that boost. Right, you have the iPhone, and it's interesting 0:04:59.640 --> 0:05:02.960 that they picked at different times of the release for 0:05:03.080 --> 0:05:06.800 the iPhone getting into October as well, so you have 0:05:06.960 --> 0:05:09.839 that caring through to the next quarter. But you also 0:05:09.880 --> 0:05:14.599 have something like Airport Airports Pro that at two fifty 0:05:14.880 --> 0:05:17.200 World drive a lot of upgrades, so there's a lot 0:05:17.240 --> 0:05:20.400 of different price point there that will help the bottom line. 0:05:20.800 --> 0:05:22.720 Um and as I said, is the magic of the 0:05:22.800 --> 0:05:25.280 three coming together. The air pads were kind of a 0:05:25.279 --> 0:05:27.240 sleeper hit when they came out, and it's been a 0:05:27.240 --> 0:05:28.719 long time. A lot of people have been waiting for 0:05:28.760 --> 0:05:32.080 an upgrade, you know. Was also said today that a 0:05:32.080 --> 0:05:33.719 lot of people lose the air parts as they're gonna 0:05:33.920 --> 0:05:37.760 spend two hundred fifty dollars on something that is, yes, beloved, 0:05:37.839 --> 0:05:43.080 but also easy to misplace. Well, uh speak for an experience. 0:05:43.120 --> 0:05:45.640 I've a teenager that always loses them, so I feel 0:05:45.760 --> 0:05:47.800 I feel that pain. It made it easier about to 0:05:47.800 --> 0:05:50.720 find them today, fair enough, right, so you can find 0:05:50.720 --> 0:05:53.680 the case and you can find each individual AirPod in 0:05:53.720 --> 0:05:57.640 an easier way. And I think the silly thing of 0:05:57.720 --> 0:06:01.680 the emoji engraving speaks also to that popularity where you 0:06:01.720 --> 0:06:05.920 have households, where you have multiple airports that lived together, 0:06:06.080 --> 0:06:08.240 and that will make it easier for the consumers to 0:06:08.279 --> 0:06:10.159 spot which one is mine. And again with all of 0:06:10.160 --> 0:06:15.080 these products, we talked about new chips faster, clearly you know, 0:06:16.480 --> 0:06:19.240 big tech upgrades, even though we might not necessarily see 0:06:19.240 --> 0:06:23.520 them as as consumers at Carolina Milan as of creative strategies. 0:06:23.560 --> 0:06:26.120 Thank you so much, thanks for joining us. Good to 0:06:26.120 --> 0:06:30.000 see all right coming up? Apple seems to have supply 0:06:30.080 --> 0:06:33.720 chain issues under control. Will that keep up through the 0:06:33.760 --> 0:06:37.240 holiday rash? M it's rising global tensions? We will discuss 0:06:37.520 --> 0:06:52.320 this is Bloomberg. Apple seems to have managed supply bottleneckt 0:06:52.320 --> 0:06:54.719 spirt by the pandemic, but now it has to navigate 0:06:54.760 --> 0:06:58.000 the Chips Act and a new policy designed to boost 0:06:58.200 --> 0:07:01.839 US production of tech product that includes approval for certain 0:07:01.960 --> 0:07:06.080 semiconductor exports to countries of concern, including China. I want 0:07:06.080 --> 0:07:09.120 to bring in CFRE, a equity analyst, Angelo Zeno. Now 0:07:09.240 --> 0:07:11.320 for more so, Angela. First of all, let's talk about 0:07:11.320 --> 0:07:15.200 the supply chain management for this new slate of products. 0:07:15.280 --> 0:07:17.400 Is Apple going to be able to get all of 0:07:17.400 --> 0:07:20.600 these new iPhones and watches and air pods to people 0:07:20.640 --> 0:07:24.520 who want them in time for the holidays. I mean, 0:07:25.000 --> 0:07:27.280 as far as getting it in time for the holidays, yes, 0:07:27.400 --> 0:07:30.000 we think so. Um. Yeah, I think it's interesting that 0:07:30.280 --> 0:07:34.120 clearly the timing of this event clearly being on September seven, 0:07:34.280 --> 0:07:37.960 and the actual UM launch of the phones, right, I 0:07:37.960 --> 0:07:40.480 mean you were talking September six, case, I believe is 0:07:40.480 --> 0:07:43.160 when shipman start um pretty much a week earlier than 0:07:43.200 --> 0:07:46.200 we had previously anticipated. To be honest with you, UM, 0:07:46.240 --> 0:07:49.000 I think that in itself should tell you that they're 0:07:49.040 --> 0:07:53.240 absolutely managing the supply constraints that you know, maybe they 0:07:53.240 --> 0:07:55.720 had to content with more severely earlier that year, in 0:07:55.760 --> 0:07:58.240 a much better situation, so they should be better positioned 0:07:58.240 --> 0:08:00.720 here over the next couple of months, um than others 0:08:00.800 --> 0:08:03.520 out there. Now, I will say this, um, as far 0:08:03.560 --> 0:08:07.040 as UM these phones are concerned, I mean, it is 0:08:07.080 --> 0:08:11.240 more supplied driven than demand driven. In terms of expectations 0:08:11.280 --> 0:08:13.520 for the September quarter. We do expect them to be 0:08:13.600 --> 0:08:16.200 supplied constraints to some extent here over the next couple 0:08:16.240 --> 0:08:18.320 of weeks. And I think it's really interesting with how 0:08:18.360 --> 0:08:21.760 they kind of land, uh kind of uh put the 0:08:21.840 --> 0:08:24.040 launch of these phones right. So, we have the phone 0:08:24.080 --> 0:08:27.840 four phones four devices will be available UM at the 0:08:27.920 --> 0:08:29.960 end of next week, where the other one will be 0:08:30.080 --> 0:08:33.200 UM in October. So that will help them also better 0:08:33.320 --> 0:08:37.600 navigate the constraints and put more emphasis on those pro devices, 0:08:37.640 --> 0:08:43.240 which of course our higher price and better margins. So interestingly, 0:08:43.240 --> 0:08:46.800 when you look at the Apple website and the shipping times, 0:08:46.920 --> 0:08:48.920 a lot of those times have come down, which is 0:08:48.920 --> 0:08:50.920 sort of our gauge of you know, how much trouble 0:08:51.280 --> 0:08:53.760 are they having, you know, making all of these products 0:08:53.760 --> 0:08:58.240 and getting them to customers. The iPhone, mac iPad, you know, 0:08:58.320 --> 0:09:01.000 all pretty much coming you know, when you want them 0:09:01.080 --> 0:09:03.559 to come. One of the biggest pain points going to 0:09:03.640 --> 0:09:05.679 be though over the next few months. I mean, we've 0:09:05.720 --> 0:09:09.400 seen various chip companies continuing to struggle as we look 0:09:09.400 --> 0:09:11.440 at their earnings, and you know, what is it about 0:09:11.480 --> 0:09:14.800 Apple if they're not having these issues? Yeah, well so 0:09:15.080 --> 0:09:17.280 i'd say as far as you know issue, I'd say 0:09:17.320 --> 0:09:19.960 they they're much better position than others out there. And 0:09:20.200 --> 0:09:22.640 the biggest reason is, you know, they are the largest 0:09:22.720 --> 0:09:27.480 kind of UM you know, purchaser of semiconductor UM goods 0:09:27.600 --> 0:09:30.360 out there on kind of a pure play basis, right, 0:09:30.360 --> 0:09:32.040 I Mean, if you take out samsull and which kind 0:09:32.040 --> 0:09:34.680 of UM you know, utilize this kind of their own 0:09:34.760 --> 0:09:37.000 semi can you know, their own smartphones demands to kind 0:09:37.000 --> 0:09:40.400 of feed their own business. That's not necessarily the taste 0:09:40.440 --> 0:09:44.120 here UM with Apple. Apple kind of outsources all their 0:09:44.200 --> 0:09:47.720 semi conductor needs out there, so they have significant needs 0:09:47.720 --> 0:09:50.440 out there and because of that, UM, they definitely get 0:09:50.520 --> 0:09:52.719 kind of their first in line in order to kind 0:09:52.720 --> 0:09:55.960 of get those good UM. At the end of the day, though, 0:09:56.080 --> 0:09:58.160 we kind of look ahead here in terms of where 0:09:58.160 --> 0:10:01.120 the supply constraints continue to be most er. It's definitely 0:10:01.120 --> 0:10:03.719 at this more trailing edge technology node. It's more yer 0:10:03.840 --> 0:10:07.480 kind of UM you know, your microprocessors, that are your 0:10:07.480 --> 0:10:10.040 micro controllers and what have you of the world. Then UM, 0:10:10.080 --> 0:10:13.559 Apple does need to purchase those type of UM components. 0:10:13.600 --> 0:10:16.760 But UM again they are in better position than others 0:10:16.840 --> 0:10:22.320 out there to UM get those orders fulfilled. Obviously, we 0:10:22.360 --> 0:10:25.240 know how interconnected Apple supply chain is with China. They've 0:10:25.280 --> 0:10:28.400 they've been trying to diversify that and it likely won't 0:10:28.400 --> 0:10:31.800 be so intertwined in years to come, but that's still 0:10:31.840 --> 0:10:37.400 the case for now. How will rising global tension impact Apple? 0:10:37.480 --> 0:10:41.240 How will the Chips Act come into play. So, you know, 0:10:41.400 --> 0:10:44.360 I think longer term, you know, clearly Apple does want 0:10:44.360 --> 0:10:47.400 to further diversified its supply chain, and they clearly are 0:10:47.520 --> 0:10:49.679 looking to do so. We think kind of, um, their 0:10:49.760 --> 0:10:52.680 emphasis is absolutely going to be more so in India 0:10:52.760 --> 0:10:56.199 than other regions of the world. Rightfully so, because when 0:10:56.240 --> 0:11:00.000 you actually think about where the demand upside could potentially 0:11:00.080 --> 0:11:03.040 come from from Apple here over the next decade, I 0:11:03.120 --> 0:11:06.280 think India is a big reason. Um, if you are 0:11:06.320 --> 0:11:09.480 a bowl on apple from the natural natural wealth effect 0:11:09.520 --> 0:11:11.559 that will take place in India over the next ten 0:11:11.600 --> 0:11:13.880 twenty years. So it makes takes a lot of sense 0:11:13.880 --> 0:11:16.959 for Apple to start kind of um expanding into that 0:11:17.040 --> 0:11:20.480 geographic region. But that being said, Apple remains very well 0:11:20.520 --> 0:11:25.240 positioned within China. We don't necessarily actually expect them to um, 0:11:25.280 --> 0:11:28.280 you know, shut down any type of production out there, 0:11:28.760 --> 0:11:31.720 to be honest with you, as more and more chips 0:11:32.000 --> 0:11:35.400 companies out there kind of evolved within China, exactly a 0:11:35.440 --> 0:11:39.560 possibility um where Apple could potentially use their local semiconduct 0:11:39.559 --> 0:11:42.760 their manufacturing industry as well. But that's being said, I mean, 0:11:42.800 --> 0:11:45.640 we do expect them to continue to um look for 0:11:45.720 --> 0:11:48.800 ways to expand and further diversify outside of China, but 0:11:48.880 --> 0:11:51.320 India will be the key there. I don't know how 0:11:51.400 --> 0:11:53.880 much of an impact kind of the chip sacks will 0:11:53.920 --> 0:11:56.400 have um within the US, but I think only time 0:11:56.440 --> 0:12:01.640 will help. The big question remains how many people are 0:12:01.640 --> 0:12:04.960 going to upgrade these upgrade their devices in the middle 0:12:05.120 --> 0:12:09.200 of a downturn, when they're already paying more for everything else. 0:12:09.679 --> 0:12:12.120 How significant do you think the pricing that we heard 0:12:12.160 --> 0:12:16.920 today the Apple Watch Ultra seven nine, the new iPhone 0:12:16.960 --> 0:12:21.360 fourteen at seven the same price it was last year 0:12:21.920 --> 0:12:26.520 as the iPhone thirteen, that that seems to be pretty significant. Yes, 0:12:26.679 --> 0:12:29.040 I mean it looks that. I actually I thought there 0:12:29.080 --> 0:12:31.200 was a possibility they could have raised the prices on 0:12:31.280 --> 0:12:33.600 some of those pro devices, but I'm kind of happy 0:12:33.640 --> 0:12:35.319 that they didn't, to be honest with you, when you 0:12:35.400 --> 0:12:38.480 kind of look um an Apple here. First off, our 0:12:38.720 --> 0:12:41.439 forecast for the upcoming cycle here in terms of the 0:12:41.440 --> 0:12:44.600 iPhone fourteen cycle is actually no growth in terms on 0:12:44.640 --> 0:12:47.120 the unit side of things. However, we do expect average 0:12:47.120 --> 0:12:51.040 selling prices to increase about three at least recent and 0:12:51.080 --> 0:12:53.880 that's going to just be the actual improving mix. I mean, 0:12:53.920 --> 0:12:57.640 clearly they're ditching the the mini out there UM adding 0:12:57.640 --> 0:13:00.800 the six point seven inch um plub device, and then 0:13:00.920 --> 0:13:03.520 you know just just what they've been now on the 0:13:03.559 --> 0:13:06.280 pro side of things relative to what they've done with 0:13:06.320 --> 0:13:08.560 the two standard devices. I think that's a big enough 0:13:08.640 --> 0:13:11.520 gaps where you could potentially seem more consumers kind of 0:13:11.559 --> 0:13:15.319 gravitate out there UM towards the pro devices. At least 0:13:15.360 --> 0:13:18.439 for the September quarter and December quarter. UM, we remain 0:13:18.559 --> 0:13:21.880 very optimistic in terms of UM units. We were about 0:13:21.880 --> 0:13:23.800 two to three percent above the street. We do get 0:13:23.800 --> 0:13:26.040 a little bit more concerned on the macro side of 0:13:26.080 --> 0:13:27.920 things as we go with some marching tune quarters and 0:13:27.960 --> 0:13:33.000 the Psycolosten. All right, Angelo's you know, c fr, I 0:13:33.200 --> 0:13:35.160 thank you for giving us the big picture of you 0:13:35.440 --> 0:13:47.600 appreciate it. Shairs on Twitter jumping in Wednesday session after 0:13:47.600 --> 0:13:52.000 a Delaware judge told Elon Musk, no, we can't delay 0:13:52.080 --> 0:13:54.840 this trial with Twitter. Of course, Ellen trying to walk 0:13:54.880 --> 0:13:58.160 away from that forty four billion dollar deal. Bloomberg's at 0:13:58.240 --> 0:14:02.240 Ludlow here with all the deep tales and kind of 0:14:02.240 --> 0:14:04.800 a big loss for Musk here, meaning he won't have 0:14:04.840 --> 0:14:08.520 as much time to pull together some additional discovery. What 0:14:08.640 --> 0:14:12.440 is this signal from the judge? Yeah, best day for 0:14:12.480 --> 0:14:15.360 Twitter shares since mid July. The idea being that a 0:14:15.440 --> 0:14:20.720 Brisker schedule timeline for trial favors Twitter. Most analysts, including 0:14:20.720 --> 0:14:24.480 our Bloomberg Intelligence litigation team, would say that that Brisker said, 0:14:24.520 --> 0:14:26.760 you'll boost the odds that Twitter will be able to 0:14:26.880 --> 0:14:29.320 enforce the original deal terms, which is, you know, m 0:14:29.400 --> 0:14:32.440 a fifty four twenty centers share valuing Twitter at fort 0:14:32.560 --> 0:14:36.560 four billion. And Judge Kathleen st Jude McCormick basically said 0:14:36.600 --> 0:14:39.120 that she couldn't delay the trial by even four weeks. 0:14:39.160 --> 0:14:41.880 Remember must team, we're asking for December because if she did, 0:14:42.200 --> 0:14:45.560 then it could bring harm to Twitter's business that she 0:14:45.560 --> 0:14:53.840 couldn't justify. So one win for Elon Musk is that 0:14:54.160 --> 0:14:59.000 he can use the complaints of this whistleblower, which recently 0:14:59.440 --> 0:15:05.480 emerge to an extent explain. Yeah. So this is Peter Zako, 0:15:05.560 --> 0:15:10.360 who filed a whistleblower complaint on auguste basically saying that 0:15:10.440 --> 0:15:15.200 Twitter had security deficiencies making its platform vulnerable to hackers, 0:15:15.320 --> 0:15:17.720 and in this complaint that he'd been told by a 0:15:17.760 --> 0:15:22.560 senior Twitter executive that there was a spots issue that Now, 0:15:22.600 --> 0:15:25.000 what the judge is saying is that incrementally the must 0:15:25.040 --> 0:15:27.280 team can go out as part of discovery ahead of 0:15:27.320 --> 0:15:30.920 trial to include some of that information that was in 0:15:30.960 --> 0:15:36.280 the August whistle blur filing in their legal armory, so 0:15:36.360 --> 0:15:40.800 to speak. But again it all comes down to Musk 0:15:40.880 --> 0:15:44.480 having to prove the same impact, the same legal point 0:15:44.520 --> 0:15:47.400 that he has had to all along, which is material 0:15:47.440 --> 0:15:51.360 adverse effect. And again Street analysts, Bloomberg Intelligence, this Gation 0:15:51.400 --> 0:15:54.600 analysts see this being a Twitter's favorite at this point. 0:15:56.440 --> 0:16:00.000 All right, lad blow, thank you Meantime, on Tuesday night, 0:16:00.240 --> 0:16:05.400 Alphabet's CEO Sundar Pachai defended the company in response to 0:16:05.480 --> 0:16:09.200 claims that it is anti competitive. At the CODE conference. 0:16:09.240 --> 0:16:12.960 He also commented on Google's decision to remove former President 0:16:12.960 --> 0:16:16.120 Trump's truth social app from the app store. Bloom looks 0:16:16.120 --> 0:16:18.440 Alex Barnka was in the room for Purchi's remarks. She 0:16:18.560 --> 0:16:22.880 joins us, Now, so Alex, let's start on the anti 0:16:22.920 --> 0:16:27.560 competitive accusations. You know, not a surprise that he defended 0:16:27.560 --> 0:16:30.000 Alphabet and Google's position there, But what do you make 0:16:30.080 --> 0:16:33.760 of how he did it? Yeah, Emily, he brought it 0:16:33.840 --> 0:16:36.280 up at basically every turn sendor was on stage for 0:16:36.280 --> 0:16:38.960 about forty five minutes, and whether he was talking about 0:16:38.960 --> 0:16:43.520 the ad market, about commerce, about competition with TikTok, he 0:16:43.600 --> 0:16:46.920 brought it back to this argument that their company, that 0:16:47.000 --> 0:16:49.840 Alphabet is not anti competitive, that in fact, there is 0:16:49.880 --> 0:16:52.280 a lot of competition on the market now. It is 0:16:52.320 --> 0:16:55.560 a timely argument for him to be making. Just last month, 0:16:55.600 --> 0:16:58.400 our colleagues reported, based on their sourcing that the d 0:16:58.480 --> 0:17:02.920 o J maybe bringing another anti competition suit against Google 0:17:02.960 --> 0:17:05.800 on their ad business. You'll remember that there's already a 0:17:05.840 --> 0:17:08.359 suit out there from the d J alleging the company 0:17:08.400 --> 0:17:12.520 dominates the search market. So it seems like anti trust 0:17:12.600 --> 0:17:16.320 is definitely on the mind of Alphabet CEO, and he 0:17:16.400 --> 0:17:18.600 really wanted to remind us that, you know, they have 0:17:18.760 --> 0:17:23.600 rivals out there in the market as well. Meantime, he 0:17:23.720 --> 0:17:27.600 gave some detail, more detail and I think we would 0:17:27.600 --> 0:17:32.119 expect about their decision to remove Trump's Truth social app 0:17:32.560 --> 0:17:34.719 from the Google Play Store. Tell us what I had 0:17:34.760 --> 0:17:38.840 to say, Yeah, that's right, he pointing to kind of 0:17:38.840 --> 0:17:41.000 what it's coming down to for removing it right now, 0:17:41.000 --> 0:17:43.760 which is content moderation. He kind of talked at length 0:17:43.880 --> 0:17:46.720 that the Google play Store has standards for what they 0:17:46.720 --> 0:17:50.560 expect the apps on UM on that platform to kind 0:17:50.560 --> 0:17:54.000 of participate in when it comes to content moderation, and 0:17:54.040 --> 0:17:56.520 said that it seems like they are looking at that 0:17:56.600 --> 0:17:59.680 more closely. He also pointed out that the Google play 0:17:59.720 --> 0:18:02.800 Store did bring on Parlor recently, so UM, there has 0:18:02.880 --> 0:18:05.879 been movement there for some of these platforms that seem 0:18:05.920 --> 0:18:08.359 to be friendlier to Trump or allow Trump on the 0:18:08.400 --> 0:18:11.439 platform in terms of getting them into the play Store, 0:18:11.520 --> 0:18:15.119 but for truth social that content moderation peace and making 0:18:15.160 --> 0:18:17.480 sure that they can kind of abide by the standards 0:18:17.520 --> 0:18:19.800 that Google expects seems to be the breaking point at 0:18:19.800 --> 0:18:25.560 the moment. Meantime, he talked about his goal to make 0:18:25.560 --> 0:18:32.000 Google more productive, which is really significant given how massive 0:18:32.480 --> 0:18:36.760 that company is. Does that mean layoffs? Uh potentially um, 0:18:36.800 --> 0:18:39.800 it seemed like yesterday he talked about UM finding kind 0:18:39.800 --> 0:18:43.760 of product productivity games. He gave some examples UM past 0:18:43.800 --> 0:18:48.919 examples like having multiple music applications on different sides of 0:18:48.960 --> 0:18:52.480 alphabets platforms and combining those into one. He also talked 0:18:52.520 --> 0:18:56.200 about things like teams that have perhaps three managers as 0:18:56.240 --> 0:18:59.040 the decision maker UH when there should only be one, 0:18:59.160 --> 0:19:01.680 and that slows things down, so perhaps you don't need 0:19:02.000 --> 0:19:05.879 that many people. But for Google, look, they are struggling 0:19:05.920 --> 0:19:09.000 like the rest of the ad driven businesses out there 0:19:09.000 --> 0:19:12.720 in big tech, so he's absolutely looking to efficiencies and 0:19:12.760 --> 0:19:15.439 it sounds like right now, um, they're going through kind 0:19:15.480 --> 0:19:18.080 of a holistic process of figuring out where they have 0:19:18.160 --> 0:19:21.560 duplications in the business that they can narrow down and 0:19:21.640 --> 0:19:25.359 where perhaps the business should be moving faster with fewer 0:19:25.440 --> 0:19:29.119 voices to make sure that it is hitting those productivity goals. 0:19:31.240 --> 0:19:33.840 All right, Alex Barnka for us, I know you'll be 0:19:33.880 --> 0:19:37.399 back at code later tonight, only looking for your dispatches. 0:19:46.520 --> 0:19:49.800 Welcome back to Little More Technology. I'm emily changing Coppuccino 0:19:50.040 --> 0:19:53.400 where Apple just unveiled a new line of products. Let's 0:19:53.400 --> 0:19:56.879 talk about it all with Marabel Lopez, founder and principal 0:19:56.920 --> 0:20:00.240 analyst of Lopez Research. Good to see you back here 0:20:00.760 --> 0:20:03.360 in person. You know, I thought it was interesting. They 0:20:03.400 --> 0:20:06.159 obviously unveiled you know, a ton of new things today, 0:20:06.280 --> 0:20:09.880 some features geared for everyone and some geared towards more 0:20:09.960 --> 0:20:13.320 niche users, whether it's you know, an outdoor enthusiast or 0:20:13.359 --> 0:20:16.520 there was also a focus on um women's health. What 0:20:16.600 --> 0:20:19.800 stood outmost to you. What I thought was interesting is 0:20:19.840 --> 0:20:22.400 we're at a real mature state of the market right now. 0:20:22.680 --> 0:20:24.919 We have to do some things that are definitely for 0:20:24.960 --> 0:20:28.280 a niche market, like the outdoor enthusiasts, But you still 0:20:28.359 --> 0:20:31.480 wanted every release to make sure that there's something for everybody. 0:20:31.720 --> 0:20:34.120 So we had crash detection in the watch, We had 0:20:34.600 --> 0:20:38.679 temperature sensors for women's health. We had satellite which is 0:20:38.720 --> 0:20:41.320 in all of the iPhone fourteen so that anybody can 0:20:41.320 --> 0:20:44.119 have emergency calling. So it was really that balance of 0:20:44.480 --> 0:20:46.439 things that were very specific, like you can have a 0:20:46.520 --> 0:20:50.280 dive computer on your watch. That word multiple times dive 0:20:50.400 --> 0:20:56.720 computer cycle. I mean, what arrange? How let's talk about 0:20:56.720 --> 0:20:58.440 the every day that and you know women are half 0:20:58.440 --> 0:21:01.560 the population. How compelling are some of these women's health 0:21:01.840 --> 0:21:05.680 features in terms of convincing a new audience to upgrade. 0:21:06.560 --> 0:21:08.560 We want this watch to be for everything, right, if 0:21:08.560 --> 0:21:10.600 you're going to wear this every day, then you wanted 0:21:10.640 --> 0:21:12.359 to really do things of matter in your life. And 0:21:12.400 --> 0:21:14.680 nothing is more important to women at certain points in 0:21:14.720 --> 0:21:17.440 their life than being able to understand what's happening with 0:21:17.480 --> 0:21:19.480 their menstrual cycles. So I think that they really hit 0:21:19.800 --> 0:21:23.320 a curve that that makes sense for a broad percentage 0:21:23.320 --> 0:21:26.240 of the populace. They also double down on the privacy 0:21:26.280 --> 0:21:29.240 features there, because obviously we're talking about really personal information. 0:21:29.920 --> 0:21:32.760 Privacy has been Apple and Tim Cook's big thing. You know, 0:21:32.840 --> 0:21:35.640 they've continually said, you know, we are doing this better 0:21:35.640 --> 0:21:38.920 than anyone else. We are protecting you and your data. 0:21:39.240 --> 0:21:42.320 How important is that in terms of the marketing. I 0:21:42.320 --> 0:21:43.640 think one of the things that we're seeing is really 0:21:43.640 --> 0:21:45.920 a bifurcation of those that care about privacy and those 0:21:45.960 --> 0:21:48.719 that don't. Does have monetize you with your data? And 0:21:48.720 --> 0:21:50.360 those that are saying, O, hey, this is really about 0:21:50.400 --> 0:21:52.879 you buying the product and it's your information. And I 0:21:52.880 --> 0:21:55.040 think no one is excelling at that message better than 0:21:55.040 --> 0:21:57.640 Apple right now. But Apple is also building out its 0:21:57.640 --> 0:22:03.720 own advertising business, right is there some will I? Um, 0:22:03.920 --> 0:22:05.960 we don't know yet, is the short answer, because we 0:22:05.960 --> 0:22:07.639 don't know exactly what type of data they're going to 0:22:07.720 --> 0:22:09.159 collect with, what they're gonna do with it, or what 0:22:09.200 --> 0:22:11.879 the privacy constraints are around it. But it's clear that 0:22:11.920 --> 0:22:16.040 everybody wants advertising dollars. So let's talk about the outdoor 0:22:16.119 --> 0:22:20.200 enthusiasts and and and I mean, first of all the 0:22:20.280 --> 0:22:22.960 video was just absolutely amazing and all the different deserts 0:22:22.960 --> 0:22:26.520 and uh, you know, snow covered mountaintops. They went to 0:22:27.000 --> 0:22:29.639 um But how how how big a driver do you 0:22:29.680 --> 0:22:31.480 think this this will be? I mean, they obviously did 0:22:31.600 --> 0:22:36.520 undercut the garment watched, the high end garment watch significantly. Absolutely. 0:22:36.680 --> 0:22:38.560