tv Bloomberg West Bloomberg September 25, 2015 10:30pm-11:01pm EDT
>> gunning for google again, the antitrust spotlight on the search giant for the second time in as many years. ♪ >> i am emily chang. this is "bloomberg west." coming up, live is always, the latest iphone, mobile apple ring up another sales record you ron johnson joins us. blackberry confirms it is making an android phone. the ceo tells me the worst is over. president obama and xi jinping, united front on climate change.
what the deal means. first, for the second time in two years, google is in the u.s. government. -- crosshairs. the federal trade commission looking into whether google restricted competitor access to android. last month, i asked whether the agency would take another look at the company following the search engine investigation. take a listen. >> that case was as -- was closed before i joined the commission. i wasn't part of that decision-making process, but it would be highly unusual for the commission to go and reopen the case. >> i was asking about a different investigation, but said, should the u.s. government take another look at google. joining me now, is bloomberg's team leader for enforcement coverage. what do you make of they -- the commissioner's comments
echo -- comments? does this new investigation signal a change in attitude? >> it was a surprise that fcc is taking another look at google two years after previous investigations. they are focusing on the android platform, and whether google is restricting or excluding other services. to be fair, this is very early stages. they have spoken with a few tech companies. we don't have a clear sense of how much research and energy they will put into this. it is not clear yet whether it will have legs. emily: how much do you think europe's investigation is swaying the fcc? sara: europe is way out in front. they have been sending questionnaires to companies. they are starting to look and study those responses.
one and the -- one thought is the ftc did not want to be out of the loop on this and felt it needed to have its own way of looking at what is going on with google. that's really just a theory. we got have a lot more information at this stage but 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 i on -- eye on u.s. tech companies. is that something you would agree with? sara: we love our monopolies, big tech companies. in the united states, it's not illegal to be a monopoly, but trickier in europe. fact theme time, the ftc is going back to this indicates that maybe things need to be looked at more closely. the justice department has already said they were not going
to take a look after the ftc said they would take a look at -- after the ftc closed their last case. it is in the ftc's hands if they are going to do anything. emily: i know you will keep us updated. thank you for checking in. turning now to the other giant in the silicon valley apple. devotees diligently lined up to get their hands on the latest iphone. tim cook even tweeted out this picture of the first customer to buy the phone in the world in a store in australia. but will 3-d touch, a better camera, and a new rose gold color help have apple -- help apple have another record-setting weekend? joining me is ron johnson. former head of retail for apple. and mark gurman. breaking a lot of apple stories these days, mark is.
i have my new iphone 6s, rose gold. anecdotally it 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. i want to start with you. you conceived apple retail stores. give us an idea of what is going on behind the scenes at apple today. it is not a huge design change, in terms of a new phone. but there are a number of important updates here. ron it is an extremely exciting : day in the stores. it is their chance to shine. i had the blessing to be part of many launches at apple, and the team is ready, and i am sure they are delivering fabulously. this will be another great iphone. in the years where there is not a big industrial change, some of the most important changes happen inside the phone.
i believe both 3-d touch and 4k video are game changers. emily: you think these updates are big enough for apple to have another record-setting weekend? mark absolutely. : if you look at previous updates, the success in --6s in comparison has tons of new features, four k video recording, 12 megapixel camera, 3-d touch screen, they will be huge drivers of sales. emily: it is interesting. with the watch they tried something different, appointment, got it by reservation. does it make sense to you to have these two different kinds of strategies for two different kinds of products? how do you think the current head of apple retail is handling things? ron: angela is doing a fabulous job. i still talk to the teams at apple. they respect her, admire her,
believe in her leadership. she is doing a great job. every launch requires a slightly different strategy because the challenge of the supply chain to deliver. in this case, apple has nine years of launching iphones. they have enough quantity that they have the ability to reserve a reservation, but to show up, like you, and get a rose gold phone on day one. every launch is different, but the team is doing a great job carrying the torch for apple. emily: this is the first time they have released the phone worldwide at the same time. anecdotally, lines are shorter, but some analysts are saying that is because you don't have those people in line to buy phones to sell on the black market in other countries. mark, what do you think is going on with the supply chain, the fact they have been able to release these phones globally, what does that say? mark: they have perfected the
supply chain management and out output of iphones at this point after releasing new models every year since 2007. if you look at the anecdotal evidence, they are doing a much better job this year at having enough supply for demand particularly the iphone 6. , the plus is still shipping in 3-4 weeks on the website. the iphone 6 is readily available. i know a family member that ordered a 6s that is being delivered today. that is pretty quick, not something you would have seen in the last few years. emily: you know better than anybody about the supply chain, but there has always been a suspicion that apple holds back supply to create demand around d -- these new product launches. is that true? ron: i don't think it's true. apple makes as many as they can
with the focus on delivering the quality they need to. in the last few years, demand has far outstripped ability to supply. but the goal is to get as many of the new products into customers' hands as quickly as possible. emily: apple does not want to seem like a luxury company, but they are adding luxury accessories. bands for thees watches. what do you make of that evolution at apple? ron i think they want to appeal : to everyone, high-end, but also within reach. very important about this year's launch is they have reduced the prices of the older iphones by $100 apiece. that will spur a lot of sales of those phones, which are still popular in many parts of the world. the watch, plus discounts on great phones, shows apple once -- once -- wants to appeal
to everyone and have products for everyone. emily: two questions, would you agree with that? second, you are creating a white -glove experience for the delivery of electronics, including for iphones. tell us how that works. ron: it's really easy. with the iphone, you go to at&t's website, order a phone free handd take delivery. we can hand-deliver and set up the phone and you have a use it in as fast as four hours. so someone on at&t right now, they could have delivered tonight in new york or san francisco, which we think is a breaker in -- breakthrough in how to buy a new product. emily: is apple a luxury company? ron: apple is a company for everybody. you think of the things we wear, watches, there has always been a range of products that people like to do. apple is trying to be a company for all people, so you can get a
sport band for more casual, it is a lower price, or more luxury brand at the same time. apple is a premier brand that serves a luxury customer and in -- an everyday customer, and they have to develop merchandise strategies for all. emily: ron johnson, former head of apple retail. now ceo of enjoy. thank you. i will be trying my new rose gold phone this weekend. i have not gotten a lot of time to play with it. coming up, blackberry seeks a lifeline from google. the ceo tells us why the next phone won't run on blackberry's operating system. ♪
the company posted a wider than expected loss and smartphone shipments hit their lowest level in eight years. the ceo says the worst is over. he is betting consumers will come back for a handset that runs on android operating system. i asked him why he is now working with google. john: the thing that always hurt us is lack of application ecosystem support. in working with google and able to put out blackberry know-how into the latest operating system, it should appeal to a lot of people, especially professionals and high-end consumers. emily: if you're high-security customers embrace the android phone, would you be convinced to stop selling the blackberry operating system phones? what would it take to do that? hn: that is a great
question. first off, the blackberry is still the most secure phone in the market. we have a lot of high-end government users. we pledge to continue to support both that. we have a new release coming out in march of next year. that is a software release. that provides yet another level of security certification. and regulated industry customers will be taken care of. we will continue to develop security for the android space. there will be a time that the customer will say that i can certify, then we will switch them over. there is no particular timeline, because we are comfortable on supporting the software updates on blackberry. emily: we have to talk about revenue. you said it would not fall below $500 million. this quarter came up short. how much lower can it go or is this bottom? when does it wrap backup?
john: i made a statement today in the earnings call that i q3 to uptick from q2 volume, and q4 to uptick from q3. you can call it a bottom but , that is what we expect to do. we should see uptick in the next two quarters. emily: you are bullish for blackberry stock, and i want to talk to about this. we saw with volkswagen this week using software to cheat emission standards. apple is pushing ahead on its own car. what role do you see for blackberry in cars going forward? john: car is a really big market. because it's really about iot, the internet of things. the car is the first frontier of that interacting with phones, wi-fi, and do anything from safety, controls, entertainment
systems, so forth. car is -- think about it being a really big application itself. a lot of people can make good business out of the connected car. we of course provide a lot of in basic operating systems cars, ford, volkswagen to name a few, 250 brands around the world. we think there is a good business there. we do already a lot of business there. emily: how many cars could blackberry touch, and what is the goal? john: 60 million is the last count. on the road today. there is no upper limit. cars are replaceable items.
we will get from cars to other things, like truck tracking and medical devices, so it is a pretty big space, it even focusing on transportation is a big space. emily: john chen, blackberry ceo. you can watch the full interview on bloomberg.com. now, chinese president xi jinping visit to washington dc, tensions have been high. over cyber security. president obama and president xi held private meetings this morning before a joint press conference. take a listen -- president obama: today, i can now announce that our countries have reached a common understanding. we agreed neither the u.s. or chinese government will conduct or support cyber-enabled theft, theft of intellectual property including trade secrets or other , confidential business information for commercial advantage.
now with 400 million monthly users. now twitter is adding features, including a tool that allows users to create polls and track results. twitter's cfo started tweeting embedded polls yesterday, including one that asked, boxers or briefs? at last check, boxers were winning two to one. it's friday. president obama and xi jinping presented a united front on climate change. the leaders of the world's top two economies pledged billions to help poor countries and to cut emissions. also, pope francis warned world leaders at the u.n. general assembly to do more than make "solemn promises" about the environment. all of this as negotiators hammer out a landmark agreement among nearly 200 nations to control pollution and emissions. u.n.ng me from new york is climate chief christiana figu
eres. thank you for joining us. how important is this announcement from president obama and president xi as an example to other nations? christiana: it is critically important. these are the two greatest economies. they are the two greatest polluters, so for them to take action together is really very important. it proves they are assuming certainly -- china is looking into the future. they are assuming responsibility together. it also is a very important example of how, by not just working individually and separately, but rather by joining forces and joining efforts everyone can do so much , more than we are doing now. on both accounts, a very important role model for the world. emily: leaders are one thing. mark zuckerberg is another. mark zuckerberg is speaking at
the u.n. about sustainability. how important are business leaders like mark zuckerberg? christiana: critically important. it is clear that policy is critical and has to be the bedrock of change, and 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 this transformation over the neck 10 to 20 -- next 10 years to 20 years, but that is not the end of the story. that policy needs to be an active and taken to the ground to make the difference, and that is the purview of the private sector. it is also the responsibility of some national governments. there is a very important collaborative framework that is being built here between national governments on one side establishing the policy, and then those that are implementing done,tually getting it
national governments and corporations and civil society. emily: we talk a lot about clean energy on this show. we talk about innovations in solar, wind. where do you see the most promise? christiana: it is deathly in the family of renewables, and really quite amazing what we see happening in front of our eyes. it is being reported, although we will wait for confirmation, that india will be by 2030 generating 350 gigawatts of renewable energy. that is the equivalent of 175 hoover dams. china on the other hand now has installed last year for times as -- 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. the developing countries are truly taking the lead in investing in renewable energy, because they have understood that that is where their future is, that makes sense for them. amalie: quickly, we talked about nuclear energy. i recently spoke to the ceo of a nuclear startup called trans atomic power. how critical could nuclear energy be to this cause? we only have about 30 seconds. christiana: that is a question every country will decide for themselves. on nuclear, three factors, safety, increasing costs because of added security measures as compared to decreasing costs in renewable, and finally, dependence on the grid. christiana figueres, thank you for joining
margaret: i'm margaret talley. phil: with all due respect to pope francis 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 ♪ >> on the show tonight, values and voters. but first, a soon-to-be vacancy. today in what happened to be a really slow news day, sort of speaker john boehner said , sayonara to capitol hill announcing he would resign from congress at the end of october. here is the reasoning that john boehner gave. john boehner: before i went to