tv Bloomberg West Bloomberg September 25, 2015 7:30pm-8:01pm EDT
movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. emily: dunning for google again -- gunning for google again? ♪ emily: i'm emily chang and this is "bloomberg west." coming up, live as always for the latest iphone. will apple be able to bring up another sales record? plus blackberry confirms it's making an android phone. hen tells me the work for the company is over. plus, president obama and xi present a united front on
climate change. the big talks ahead in paris. first to our lead. for the second time in two years, google is in the u.s. government's crosshairs. the federal trade commission is looking into whether google restricted competitor's access to android. just last month, i asked the ftc commissioner whether the agency will be taking another look at the company followed the search engine investigation. take a listen as to what she had to say. i was not part of that decision-making process. i think it would be highly unusual for the commission to go back and reopened that case. emily: to be clear, i was asking about a different investigation, but i said -- should the u.s. government take another look at google? joining me from washington, bloomberg's team leader for financial crimes. what do you make of the commissioner's comments?
does this new potential investigation signify a change in attitude by the government towards google? sarah: it was a surprise to everyone to learn that the ftc is taking another look at google two years after closing the previous investigation. this time we are hearing their focusing on the android platform, whether google's properties are restricting or excluding other services that people might want to have. be fair, -- to be fair, this is in the early stages. i have spoken with a few tech companies. we don't have a clear sense of how much resources and energy they are going to put into this. it is not clear yet whether it's going to have legs. emily: how much do you think e urope's own investigations are swiping the ftc? -- swaying the ftc? sara: europe is way ahead of the ftc.
they are sending out questionnaires and studying at those responses. one thought is that the ftc did not want to be out of the loop and felt it needed to have its own way of looking at what is going on with google. that is just a theory. we don't have a lot of of information at this stage about what they are thinking. emily: there was an interesting op-ed in the new york times saying that no government agency is keeping a big enough eye on the u.s. companies, tech companies in particular. sara, is that something you would agree with? sara: we love our monopolies, we love our big tech companies. in the u.s. it's not illegal to be a monopoly, whereas it is much trickier in europe. at the same type, the singgns that the ftc is going back to this does indicate that things may need to be looked at more closely. they are partners with the justice department.
they already said they were not going to look at google after the ftc closed their last case. it really is in the ftc's hands if they are going to do anything. emily: our bloomberg news reporter, sara. i know you'll keep us updated, thanks so much for checking it. turning to the other giant in silicon valley, that is apple. diligently lined up at stores around the world to get their hands on the 6s and 6s plus. ceo tim cook even tweeted out this pic of the first customer to buy the phone in the world in australia. with 3-d touch, a better camera, and a new roles of them gold color will help -- new rose-gold color will help apple? with us from ann arbor michigan, mark, senior editor of 9-5 mac.com.
i actually have my new iphone 6s in rose gold, which anecdotally seems to be the most popular color. at least 35% of people in line were waiting for the rose gold color. it's pink, but a nice shade of pink. i want to start with you. you conceived apple retail stores. give us an idea of what is going behind-the-scenes at apple today. it's not a huge design change in terms of the new phone. but there are a number of important update here. >> yeah, it's an extremely exciting day for everyone at apple, especially in the stores. it is their chance to shine. i had the blessing of being a part of many iphone launches apple. the team is ready. i am sure they are delivering fabulously. this is going to be another great iphone. whenimes in the odd years there isn't a big change of the industrial side, the most
important things happen on the inside of the phone. 3-d touch and 4k video will be game changers. emily: mark, do you think these updates are big enough for apple to have another record-setting weekend? mark: absolutely. if you look at past updates like the 3s and 5s, the 6s has tons of new features. 4k video recording, 12 megapixel camera, and the new 3-d touchscreen will be huge drivers of sales. ron, it's interesting -- we're back to lines of phones. you made an appointment and you got your watch by reservation. does it make sense to you to have these two different types of strategies for two different types of products? what do you think about the current head of apple retail is handling things so far? ron: i think angela is doing a fabulous job. i talked to the teams that apple and they respect and admire her.
they respect her leadership. she's doing a great job. every launch requires a slightly different strategy because of the nature of the supply chain. in this case, apple has nine years of launching iphones. they have enough quantity that they can have both an ability for some reservation, but just to show up, like you may have done, and get a rose gold phone on day one. every launch may be different, but angela and the team are doing a great job carrying the torch for apple. emily: this is the first time they released the phone worldwide at the same time. with the last launch, they held phones back in china. anecdotally, we are hearing lines are shorter. some analysts are saying that is because you don't have people in my trying to get a bunch of phones to sell on the black market. mark, what do you think is going on with the supply chain? the fact that they have been able to release these phones globally -- what does that say about how they got here?
mark: like ron said, they perfected the supply chain management and output of icons after releasing new models after 2007. if you look at the shift times and anecdotal evidence, they are doing a much better job this year and having supply and demand, particularly on the iphone 6. shipping within 3-4 weeks at some carrier sites. but the iphone 6 is readily available. a family member ordered the 6s from the verizon website and it's being delivered today. you know better than anybody what the real story is with the apple supply chain. but there has voiced in a suspicion is that apple holds back supply to create demand and this frenzy around these new product launches. is that true? ron: i don't believe it is true. apple makes as many as they can with the focus on delivering the quality they need to.
it's just been the case for the past few years that demand has far out struck their ability to supply. the goal is always to get as many new products in the customer's hands as quickly as possible. --ly: mark, it's interesting apple certainly doesn't want to seem like a luxury company. but you do see them adding more luxury accessories to the product, with the watches. what do you make of that evolution at apple? mark: i think they want to appeal to everyone. certainly to the high-end, but they want to be within reach. about this year's iphone launch is that they reduced the prices pluse older iphone 6 and 6 from 2014 by $100 apiece. that will spur a lot of sales, which are still popular in many parts of the world. these discounts on still-great phones shows that apple wants to
appeal to everyone. emily: ron, two questions -- would you agree with that, and you areoy -- njoy, creating is white glove experience for the delivery of electronics, including four iphones. tell us how that works. ron: with us, it's very easy. with the iphone you go to at&t's website, order a phone online, and pick free hand delivery. we can help you set up the phone and teach you how to use it in as fast as four hours. someone at the at&t.com site now can have a delivery tonight in new york or san francisco, which we think is a breakthrough in how to buy a new product. emily: is apple a luxury company, ron? ron: apple is a company for everybody. if you think of things we wear , and the watch as a wearable, there have been ranges of products that people like to
do. you can get a sport band for casual, or a more luxury brand. i think apple is a premium brand that serves a luxury customer and in everyday customer. they have to deliver merchandise strategies for all. thank you both to my guests for joining me. i'm going to try out my rose gold phone. ceo john thain tells us why his next phone won't run on blackberry's own operating system.
expected loss and smartphone shipments hit their lowest level in eight years. ceo john chen says the worst is over. he's hoping that consumers will come back for a handset that runs on android operating system. i'm asking him why he is now working with google. >> the thing that has always hurt us is ecosystem support. in working with google in being able to put up blackberry know-how into the latest upgrade system, that should appeal to a lot of people, especially professionals and more high-end consumers. emily: if you're high-security customers embrace -- if your high-security customers embrace the handheld phone, would you be compelled to stop selling the blackberry phones? what would it take to do that? >> that's a great question. first off, the blackberry tan phone is still the most secure
phone in the market. we have a lot of high-end government users on that. we pledge continue to support about. we have a new release coming out in march next year. a software release that provides another level of security certification. the government and regulated industry customers will be taken care of. we will continue to develop security for the android space. there will be a time where the customer will say "okay, that i can certify." timeline.o particular john, we have to talk about revenue. you said it would not fall below $500 million. this quarter it came up short. how much lower can it go? or is this bottom?
windows of ramp backup? -- when does it ramp back up? >> i made a statement in the earnings call that i expect q3 q2optic f -- to uptick from and q4 to uptick from q3. we should see some uptick in the next 2 quarters. emily: you are very bullish about blackberry software in cars. we saw volkswagen deliberately changing emission standards. apple is reportedly pushing ahead on its own car. what role do you see for blackberry in cars going forward? >> car is a really big market. because it's about iot. car is the first frontier of that. you interact with your phones and your home wi-fi.
you can do anything from a telematics to advanced driver assist and safety to controls, entertainment systems, and so forth. think about car as a big application in its self. businessn make a good out of the connected car. we provide a lot of the basic operating systems environment into a car. ford and volkswagen, to name a few. we have about 250 brands around the world. we think there is a good business there. we already do quite a good amount of business there. emily: what is the goal? last million is what's count was. there is no upper limit to the goal. the car is a replaceable item. we will get from cars to other
things like truck tracking and medical devices, asset management. it's a pretty big space. even if we just focus on transportation, it is a big space. emily: blackberry ceo john chen. you can watch the full interview online at bloomberg.com. now to chinese president xi jinping's visit to washington dc. tensions have been high over cyber security. president obama and president xi joined in a meeting before a press conference. today, i can announce that our two countries reached a common understanding on the way forward. we have agreed that neither the u.s. or the chinese government will conduct or knowingly support cyber enabled theft, theft of intellectual property, including confidential business
monthly users. now twitter is installing a tool that includes polls and daily results. polls, added embedded including one that asked -- boxers or briefs? boxers are winning 2 to 1. it's friday, that's why that story is ok. present ob -- presidents obama and xi reaffirmed their commitments to cutting carbon emissions and pledged billions to help poor countries do the same. also today, pope francis warned the one assembly to do more -- warned the un assembly to do more on the environment, after hammering out an agreement of over 200 nations to rein in pollution causing emissions. join me from new york to discuss these goals.
thank you so much for joining us. it's great to have you. how important would you say is this announcement from presidents obama and xi to other nations ahead of these talks in paris? christiana: it's critically important. there are no doubt these are the two greatest economies. they are also the two greatest polluters. for them to take action and to do it together is very important. assuming,es they are certainly the u.s. has passed response ability, china is looking into the future. they are assuming responsibility together. it's an important example of how, not just working individually and separately, but rather by joining forces and efforts, everyone can do more than what we are doing right now. on both accounts, a very important model in the world. emily: state leaders are one thing. mark zuckerberg is another. he's going to be speaking at the u.n. over the weekend about
sustainability. how important are business leaders like mark zuckerberg? christiana: critically important. it's absolutely clear that policy is critical and it has to be the bedrock of change. that is what every single country is doing now, individually, within their own borders, as well as contributing to the construction of the international regulatory framework that is going to guide of this transformation over the next 10-20 years. but that is not the end of the story. that policy then needs to be enacted and taken to the ground to make the difference. that is the purview of the private sector. it's also the responsibility of some national governments. it's an important collaborative framework that is being built between national governments on one side, establishing the policy, and then those lamenting it and actually getting the work done.
-- then those implementing it, including operations and civil society. emily: we talk about a clean energy, innovations in a solar and wind -- where do you see the most promise? christiana: it is definitely in the family of renewables. really quite amazing what we see happening in front of us. it is being reported, although we will break a few days -- we will wait a few days to have confirmation, that india, by 2030, they will be generating 250 gigawatts of renewable energy. that is the equivalent of 175 hoover dams. china, on the other hand, we have confirmed that china installed last year four times as much wind power as the united states. by 2030, china will actually have 1000 gigawatts, which is
the exact same as the united states' total generation capacity now. these developing countries are truly taking the lead in investing in renewable energy. they have understood that that is where the future is. that makes sense for them. emily: quickly, we talked about nuclear energy on the show. i recently spoke with a ceo of a nuclear startup called trans atomic power. is this still a long way off? christiana: that's a question every country is having to decide for themselves. on nuclear, at least three factors have to be considered. first, safety, certainly. secondly, increasing costs because of added security measures, as opposed to decreasing cost in renewables. and third, extending the grid. eres, u.n.istiana figu
margaret: i'm margaret talev. phil: and i am phil maddingly, it would appear you are not the only one who wanted to get out of washington. john boehner: ♪ my, oh my what a wonderful day ♪ phil: on the show tonight, values and voters. but soon, it is soon to be a vacancy. today in a slow news day, speaker john boehner said sayonara to capitol hill announcing he would resign from conger said the end of october. here is the reasoning that john boehner gave. b