WEBVTT - Gene Munster on GOOGL: VR Is Big Theme For Next Decade (Audio)

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<v Speaker 1>that's the Bloomberg Business Flash. This is taking stock with

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<v Speaker 1>Pim Fox and Kathleen Hayes on Bloomberg Radio. Google. Google

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<v Speaker 1>is introducing a new phone. It's called the Pixel. It

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<v Speaker 1>also is introducing an Amazon Echo Fighter. And here to

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<v Speaker 1>tell us more is Gene Munster. He is managing director

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<v Speaker 1>of Piper Jaffrey in Minneapolis. He can be followed on

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<v Speaker 1>Twitter at a Gene Munster. Alright, Jean, tell us what

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<v Speaker 1>is the most relevant for you? Is it the the

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<v Speaker 1>Echo Fighter that the Google has introduced, Alphabet has introduced,

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<v Speaker 1>or or is it the new the two new phones

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<v Speaker 1>the pixel and the pixel XL, the pixel and the

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<v Speaker 1>pixel sl THO. They are called Hero Phones, which basically

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<v Speaker 1>Google puts them out. This is a rebranded Nexus phones

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<v Speaker 1>and they put them out there so other hardware Android

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<v Speaker 1>hardware manufacturers like Samsung or HTC can get an idea

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<v Speaker 1>of what having Android in its purest form looks like.

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<v Speaker 1>And imagine if Android was an iPhone. That's essentially what

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<v Speaker 1>these pixel phones are. The reason why that's a significant

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<v Speaker 1>is this is going to implement day Dream, which is

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<v Speaker 1>a new platform from Google that will help VR work

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<v Speaker 1>more seamlessly on your phones and you put them in

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<v Speaker 1>those headsets and this is a big mackerel theme for

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<v Speaker 1>the next decade is going to be VR. And so

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<v Speaker 1>that's why we see this being the more important of

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<v Speaker 1>the two announcements. The just this importance of moving the

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<v Speaker 1>VR theme forward. Uh that said, is that the home

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<v Speaker 1>the Echo competitor is important because it's an example of

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<v Speaker 1>how we're using technology and more of a seamless environment

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<v Speaker 1>and probably the best example of how the interface of

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<v Speaker 1>technology is changing. It used to be a keyboard, mouse

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<v Speaker 1>and touchscreen and now it's our voice, our eyes, gestures

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<v Speaker 1>and eventually can be our thoughts and using voice is

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<v Speaker 1>a powerful thing that Google has happened into at home.

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<v Speaker 1>It's a big, big step, it seems they're taking in

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<v Speaker 1>so many directions. I am. I guess I'm especially interested

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<v Speaker 1>in the handsets, the phone part of this because, for example,

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<v Speaker 1>Mark German, one of our Bloomberg News correspondents, following this,

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<v Speaker 1>he said, behind the pixel, Google's first real threat to

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<v Speaker 1>the iPhone? Is it a real threat to the iPhone?

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<v Speaker 1>And how how much is that Google's intent? It's it's

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<v Speaker 1>their intent to build a phone that is competitive. In

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<v Speaker 1>order to be competitive, you have to be a competitive

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<v Speaker 1>to the iPhone. It's not going to change iPhones fortunes

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<v Speaker 1>over the next several years. What is going to happen

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<v Speaker 1>is that most likely is that you're going to see

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<v Speaker 1>Samsung users they're looking for a reason to go to

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<v Speaker 1>a different phone. At this point, HTC, other Android manufacturers,

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<v Speaker 1>those people that would are loyal to Android. But this

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<v Speaker 1>is not going to be enough to get a person

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<v Speaker 1>who's committed, and we measure how committed people out of

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<v Speaker 1>their iPhone, it tends to be close to n to switch.

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<v Speaker 1>I'm wondering if you could describe for us this combination

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<v Speaker 1>that is supposed to take place. I guess in the

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<v Speaker 1>living room right where you've got your phone. You're going

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<v Speaker 1>to have your Echo or your Aloe or your voice

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<v Speaker 1>recognition device, and then maybe you're going to have your

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<v Speaker 1>Roku or your Firestick from Amazon or the Apple television.

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<v Speaker 1>How is that all coming together and what does that

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<v Speaker 1>apply for investors? Well, right now, it's it's not coming

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<v Speaker 1>together very seamlessly. You just described it perfectly. Is that

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<v Speaker 1>you have a lot of different solutions that are kind

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<v Speaker 1>of all doing something slightly different that kind of want

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<v Speaker 1>to all circle back to your primary hub, which is

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<v Speaker 1>your phone and some of the applications on top of

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<v Speaker 1>your phone. The substance of how this is going to

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<v Speaker 1>come together is there will likely be a box eventually,

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<v Speaker 1>whether it's a Roku box or a fire TV or

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<v Speaker 1>Apple TV that has some of these personal assistants to Echo,

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<v Speaker 1>like the listening the active listening features, and then also

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<v Speaker 1>can control your TV. And that's when your TV becomes

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<v Speaker 1>the hub that's been referred to for a long time.

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<v Speaker 1>You'll still have your phone. Eventually, your phone is going

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<v Speaker 1>to be foldable because glass is going to be foldable,

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<v Speaker 1>and it will become your tablet, So your tallet probably

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<v Speaker 1>goes a way over time, and you have some device

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<v Speaker 1>that's carried with you all the time and then a

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<v Speaker 1>device in your home, and those two will probably be

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<v Speaker 1>from the same You'll probably be running the same platform

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<v Speaker 1>on both of whether it's iOS or Android. From an

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<v Speaker 1>investment standpoint, gen, how do you assess this this big project?

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<v Speaker 1>This is this a big undertaking from alphabet slash Google. Well,

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<v Speaker 1>it's they spend a lot on R and D. They

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<v Speaker 1>spent about twelve million dollars a year on R and D.

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<v Speaker 1>That compares to Apple about ten billion, and so there's

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<v Speaker 1>a lot of different places that they can go with

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<v Speaker 1>twelve billion dollars. If you're going to try to think

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<v Speaker 1>of how much of that money is going into some

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<v Speaker 1>of the stuff that we've announced today, it's probably relatively small.

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<v Speaker 1>We're probably talking about a billion dollars worth. And and

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<v Speaker 1>they spend most of their money in trying to make

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<v Speaker 1>search better. And part of making search better is is

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<v Speaker 1>this artificial intelligence the ability to use voice and your

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<v Speaker 1>common stream of speaking as a way to engage with Google.

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<v Speaker 1>And so there are places that play into that. The

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<v Speaker 1>key takeaway is this is there investing money, not all that,

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<v Speaker 1>but a lot of money into this, and what they're

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<v Speaker 1>trying to do is really get ahead of how we're

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<v Speaker 1>going to interact with computers in the future. And that's

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<v Speaker 1>why it's so important for Google, whether we're enacted with

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<v Speaker 1>computers through virtual environments or through more voice like at

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<v Speaker 1>home and so those combined. Well, Gene Muster, thank you

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<v Speaker 1>so very much. He's managing director at hyper Jaffrey talking

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<v Speaker 1>about the new Google phone and home products announced at

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<v Speaker 1>Altfit's big event today. I'm Kathleen Hayes along with Pim Fox.

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<v Speaker 1>This is taking stock on Bloomberg Radio. Keep it right here.

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