tv Best of Bloomberg Technology Bloomberg January 2, 2017 12:00am-1:01am EST
>> i'm caroline hyde, this is the best ofwhere we bring you t interviews from this week in tech. coming up, the u.s. hits russian officials with sanctions over what washington said was an unpress dened interference with the presidential election. plus, the rice of the robots -- rise of the robots and whether a.i. can peacefully co-exist inside america's offices.
and we'll take a look at the biggs breakthroughs from a.i. assistance to rockets becoming a reality. obama administration has imposed sanctions to russia. it's the first public retaliation as the officials said was an unprecedented attempt to hack with the presidential election. we speak the policy reporter nick quartem. nick: there are nine people and entities on the list. one is the f.s.b. which is the inheritor agency to the k.g.b. so russia's prime intelligence agency. the other is this military service the g.r.u. we've been speaking to analysts all afternoon who say you won't
necessarily see individuals targeted as a result of being mention there had. though individuals of the g.r.u. are mentioned as among the nine. it is sending a huge sigflal the obamaed a mintstration pointing out the -- huge signal in the obamadministration pointing out looking for ways to punish russia for the election related hack. caroline: the name and shame approach has been used before used? there covert ways >> absolutely. the diplomatic sanctions and the economic sanctions that you're seeing them publicly announced. that does not close the door to covert measures, that does not close the door to cyber measures and we may or may not know about
them. obama did imply that this might not be the last of the retaliation on this. which would seem the days are waning here if you're going to do anything else we're probably not going to see it. the russians today came out saying that they too are likely to retaliate. the one thing to watch is to see if the united states faces any additional cyber attacks from the russians and whether or not the trump administration rolls any of that when he takes office later in january. caroline: the fact that russia might bring these counter measures as soon as tomorrow, what are the people you're speaking to reacting to in terms of the retaliation and what they're bracing themselveses from russia? nick: what we likely know about that case would be an expulsion of american diplomats. excel to a it the
for at the. one thing that the obama administration was weighing in the last couple of monlts these are discussions they've been having for quite some time is how far down this path they want to go. because if they continue with covert actions and press ahead with actions that would perhaps attack russian infrastructure or wipe hard drives or delete their bit point accounts or whatever it is, then you're getting into the cyber war situation and that could escalate much more quickly. ex-pedges just the expulsion of diplomats but when you have these two major powers that's something the obama administration and the trump administration wants to consider carefully.
caroline: we heard that these were bipartisan. both sides wanting to push. donald trump at sound cooler about this. have a listen. >> i think the computers have complicated lives very greatly, you know, the whole hage of computer has made it where nobody knows exactly what's going on. we have speed. i'm not sure that we have the type of security that we need. >> he sort of says everything and nothing the fact that he wants people to get on with their lives. what do you think is going to be the reaction of donald trump if he seems to leading this country ? will he unwind all of this? tara: it's sort of unprecedented and an executive order was refused to include deterrents with anybody messing with our election process.
any executive order is to take any sort of cyber action that affects the election in any way whether that tease leaking of e-mails or attacks on election systems themselves. that's part of u.s. policy and part of o's executive order that we will retaliate with sanctions. to say that computers complicate our lives doesn't seem like a policy response. the reality is that cyber security is one of the foremost threats the united states faces in terms of cyber attacks on our infrastructure's and in terms of economic espionage on private companies on the pentagon and on our nuclear facilities potentially. to sort or -- of brush it aside doesn't mark a clear public policy. it will be interesting to see what donald trump does in response when he takes office. this is in response to a diplomatic behavior that
impacted d.n.c. servers and e-mails is to deter future not state actors from doing this sort of activity again. so taking a position is key to prevent that not just in terms of punishing russia. this might help the trumped a intstration -- administration. caroline: take it global for us for a moment because we've got french elections, german elections, netherlands elections to name but a few next year. and we know russia acting with domestic politics and not just limited to the united states. there were reports from the u.k. that maybe united kingdom is exposed as well. how much do you think this is a global issue? will other countries come in behind the united states? tara: it will be interesting. we will see the european countries follow suit. and they will designate those individuals and not engage in
financial transactions and trade and whatnot. again, you might see europe take action if they're the victim of the cyber attack. i'll be curious if europe jumps onboard. they may very well because they will be future victims as well. it's in everyone's best interest to make these multilateral and take a firm stand on this together. caro: that was tara maller and bloom berling's foreign policy reporter nick waldem. this week the u.s. accused three chinese hackers making $4 million in illegal profit after hacking the serverses of several new york law firms. it's allege they'd bought shares in at least five companies before deals were announced. some of the trans actions volve intel and chip maker intemune. they are pushing to freeze their assets. coming up, holiday cheer for am zob. why tech gadgets want out as shoppers got mobile. and a reminder that all especial
>> they told us they sold nine times last year. but we don't know how many they sold last year. and the company is very red sent to release any figures. mark mahaney stiment about $1 illion top line of alexa product for very little profit. but there could be three times that number. amazon is expected to do $45 billion in revenue in the quarter. but selling a lot of these things is good not just because for amazon. but it creates a fly wheel effect. or ore they use alexa google the more they use amazon.
>> great to have you on the show. part of the day but give us a sense of the mobile element that you're covering. >> they know consumers are going to be using a couple of apps. amazon is dominating that space. maybe there are a couple of retailer who is can make a dent there to use the app on your phone in realtime ordering things while you're lying in bed in the store price checking from your app. i think a lot more and more debate is not going to be around who has the best website but who has the best app and the best mobile platform because that's where consumers are moving in the retail space. >> are they managing to lock in
some of the payment shannon? shannon: i think that were doing better than that were a couple of years ago. but when you hear corey and the way amazon continues to dominate the space and are drawing more and more consumers with their ecoo system with prime and the harder it gets for brick-and-mortar. they're always two or three steps ahead of them. amazon's got a great app. as soon as they get two, three day shipping. amazon is doing one-hour shipping. they've got a good app. now they've got something like alexa to compete with. they're trying. and they're making progress. but i don't know if there are any signs they're slowing amazon down. >> amazon released again, without any actual numbers but they went to category by cat girl of their top selling products and they were wonderfully random and weird. i went through about 30 of their
items what i noticed really chep items. $7.99. power chord for bathtub baby toys. the prices were so low is that the amazon has no margin for these things. they're taking money away from other retailers and that changes the nature of retail and pushes it towards amazon. >> i think that's amazing on who has won out. i was really intrigued by not only the breakdown from a generation point of view, consumers are pretty positive over 35 but millenials they're not sounding too confident. if you're a clothes seller, it's still not a pretty place to be. >> amazon's now getting into apparel. so they've got one more thing that retailers have to compete with. >> yes, this year for apparel. i don't know if it's going to be
catastrophic but it's not going to be awesome. given where the consumer is at, it could be awesome. but the consumer is not wanting to spend on apparel. there's a lot more excitement happening in other areas like tech right now where they rather be spending their money. maybe you were able to get the same number of presents for the same number of people but you paid less and the retailers got a smaller margin on it. i don't think we're going to see a -- nothing really has changed at least this holiday season compared to last season, i don't think. maybe we'll see an incremental benefit but not a huge boost. >> 63% of millenial voters voted against donald trump. that may have a big waiting in terms of the optimism that those people feel. if 63% voted against that person and that person wins they're not feeling good about anything right now. the time period in which they were polled were during this time of the trump transition
team came together. and that may have an affect on millenials. maybe not the way they're pending money. caroline: as we just covered the echo is a massive success. the smart speaker shows there a's lucrative consumer market for voice-activated market in the home. omething that others can't gnore. caitlin: the top five most valuable tech companies in the world are all betting big on the success of virtual assistants that respond to voice commands. the race really started with amazon's surprise hit, the echo, powered by a digital assistant named alexa. alec baldwin: alexa, how many championships has dan marino won? >> dan marino has won zero championships. dan marino: alexa, how many oscars has alec baldwin won? >> alex baldwin has won zero oscars. alec: well played, marino. alexa, stop. caitlin: echo debuted in mid-2015 and by april 2016
consumer researchers reported that amazon had already sold more than three million devices. and it was cheap, selling for the relatively low price of $180 a pop, but the real pay-off was in amazon's core e-commerce business. >> we think it is one of the faster growing businesses for amazon, and more importantly, it actually adds into the ecosystem that amazon has where they only have a bunch of traffic coming to their website, but this is a chan for amazon to grab the traffic, which is not online. caitlin: echo owners are spending an estimated 10% more time on amazon.com after buying the smart speaker. and amazon stock has popped more than 70% since the echo came out in the u.s. so it's no surprise google wanted in on the action. >> credit to the team at amazon for creating a lot of excitement in the space. we have been thinking about our own unique approach and we're getting ready to launch something later this year. caitlin: that something was google home. it hit the market in october,
priced $50ess than the echo and loaded with google's own conversational interface, which leaves with us the elephant in the room. >> hi, it's me. it's sure great to be on the mac. caitlin: apple's assistant siri has been out for five years since it debuted on the iphone 4-s but it's use has been mainly used to the iphone, which could be a problem for apple, because by some estimates only 23% of smartphone owners actually use voice assistants like siri on a weekly basis. >> it's so important of a category and amazon has so proven that there is a customer demand and that it's a sexy new kind of interface for information, that apple would be insane not to get out there with a product that's similar. but it's all about the implementation, and it's also going to be a real disadvantage not to have been first. caitlin: but then again, apple wasn't first with the smart phone or tablet market either. and back in september, bloomberg reported that apple is, in fact, pushing ahead with an echo style competitor. so we can only expect this arket to keep growing in 2017,
with idc forecasting shipments jumping 130% to 21 million. caroline: caitlin meehan with that report. and we'll bring you more on the breakthrough tech of 2016, including the hits and the misses in the quest for reusable rockets. that is a little later. in dealnews this week, volkswagen is making another move to expand europe's biggest carmaker for manufacturing into mobility services. vw is buying canadian mobile parking payment operator pay by phone. terms of the deal were not disclosed. pay by phone has posted more than $215 million in transaction this year with 12 and a half million customers. the move is part of matthew miller's response to technology e developments such as mobility services, automated driving and electric powering systems as the company emerges from its diesel emissions cheatingcandal. tesla, which acquired solar city earlier this year, and panasonic are steppingp their
partnersp announcing they will begin production of photo cells and modules next year at a plant in buffalo, a city in upstate ew york. panasonic is investing roughly a quarter of a billion dollars in the venture. it underscores deepening ties between the two companies, jointly building a $5 billion lithium ion factory in nevada. after the break, we'll find out how a robot is helping the immobile to become mobile with thought alone. that special report from chile, next. this is bloomberg.
caroline: welcome back to the "best of bloomberg technology." jerusalem-based software firm mobileye announced a partnership based software firm announced a partnership with a mapping consortium of several german utomakers. this is one of several partnerships forged a this year as self-driving technology rapidly grows. under the deal, mobileye
software which uses sensors and ata analysis to find a car's position on the roads in real time will be integrated into his navigational mapping technology. shares rose on the news, the most since august. this year bloomberg businessweek's ashlee vance has crisscrossed the globe to see how pioneers in different countries are pushing the limits of technology. in the season finale of "hello world" he travels to chile to see their unique take on the incubator concept. take a look. >> it's called the idea factory. or if, for those in the whole brevity thing. they support tech. politicians stop by to smooze. kids get a chance to learn. it is not a factory designed to build the next google or facebook. it focuses on things for chile and south america, and they have got hyper local branches hidden in unexpected corners of santiago. there are tech incubators all
over the world, but you won't find many in a neighborhood like this. it has another building here that's been set up to inspire local youngsters and give budding inventors a helping and. ♪ ashlee: here, things are a bit more lively than in palo alto. and it suits the place. i showed up on a demo day when kids from the neighborhood pour through the gates to check out its gadgets. there was plenty of eye candy, but nothing beat this. hello, robot. it's like every other video conferences robot on a stick, but this one is basically lethal. hat's so cool. ashlee: all of the gadgets come from this man. francisco quevedo.
he's something of a local celebrity and has kanye west's vels of passion. [speaking in spanish] ashlee: rodrigo was an officer in the chilean army and then he had a revelation and became a robotics entrepreneur. his most inspired invention is this wheelchair. people can control it by tilting their head or making a gesture. soon roderigo hopes it will move by thought alone, by reading impulses from a brain wave monitor. [speaking in spanish] ashlee: roderigo's helpers were
surprisingly gentle as they gave me the power of telekinesis. [speaking in spanish] >> that is how i turn it on, three blinks. oh, my god. like a genie. ♪ [speaking in spanish] ashlee: that's crazy. amazing. caroline: and you can catch the full episode of "hello world" this weekend on bloomberg elevision. plenty more still to come, including man versus machine. we take a deep dive on what a more automated world means for your job prospects in the coming years. if you like bloomberg news, check us out on the radio. you can now listen to bloomberg radio app, bloomberg.com, and in the u.s., on sirius xm. this is bloomberg.
i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. hey, drop a beat.flix? ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked
♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. ♪ caroline: welcome back to "the best of bloomberg technology." i am caroline hyde. this year's $85 billion deal between time warner and at&t has many wondering if mergers like this will be the new normal in 017. network owners are under growing pressures they continue to lose customers to online services like netflix. so has cable tv reached a tipping point? we put the question to bloomberg editor at large cory johnson and gerry smith, bloomberg news media reporter. gerry: you think about the television industry, it is like a slowly melting ice cube. there are still about 98 million people in the u.s. that
subscribe to pay television, but it loses a couple million subscribers each year. and eventually, you know, media companies look around and say this is not an industry that is growing anymore. maybe we need to partner up and find someone, whether it is another distributor, or do a merger with another media company potentially. everyone is looking around in the fast changing landscape and looking for some security. caroline: not an industry that is growing, tv, but there is an industry growing on the back of it, the likes of hulu, netflix. are they really disruptors and all of this? cory: i think so. i think this over the top notion of subscribing tv is very different. it is a clear and present danger to the existing media companies, and i think they know that. we can see the responses. time warner has had great responses with hbo go products. and what we can see from other companies. and other companies are struggling with these things, but i think there is also a belief that under a trump administration, they will be much more business friendly and let businesses do what they will.
look, the reason some of these deals have been opposed by the the justice department, some of them did not happen because they knew they would be opposed by he justice department is not because there were more democrats on the fcc then republicans. there will always be that kind of balance, as mandated. and the justice department is different under different administrations. the reason they opposed it was because it was bad for the consumer. the affected consumers will not be different based on who is in office, but the approval of these things might a different. caroline: we just heard cory talking about the way which older your media companies have responded, some of them offering skinnier bundles, not all 100,000 channels, or options. is that catching on? gerry: we are seeing more and more of that. ust recently at&t introduced directv now, which has a starting price of $35 for 100 channels, although the price eventually goes up. it remains to be seen how
popular these are, but if they do catch on, there is a real threat to a lot of these smaller cable channels. some of these media companies have more than 20 cable channels, and a lot of them get very little viewership. if these packages catch on where here is only 20 or 30 channels in them, we will start to see a lot of those marginal channels potentially get shut down. caroline: i imagine we will see a few of those names next year, ory. cory: it matters from the editorial standpoint. on the news basis, we want lots of news providers, not a few. on an entertainment basis, we have seen some great entertainment come out of netflix netflix, house of cards, narcos, luke cage. we have seen the same thing out of amazon, where we have seen the man in the high castle, transparent, some shows that would not have seen the light of day were it not for experiments in other places to broadcast, and our society is richer for it. so the notion of consolidation
should be something of concern to consumers, not just the balance sheet of the businesses involved. caroline: so far we have seen the older guard consolidating. what about the new kids on the block? amazon has a lot of cash you can put to work. we know jeff bezos does not mind flashing that cash. will we see them eating up some of the older content providers? gerry: there is always some speculation going on. there was speculation about netflix, and disney at one point this year. another company we have not mentioned is buzzfeed. nbc has invested $400 million in buzzfeed, and i think we are going to start to see more and ore of these old media companies and digital publishers joining forces because the old media companies want their younger audience, and the buzzfeeds of the world really like the money that is in television. cory: to that point, the buzzfeed deal is a g route.
it is the eighth round. not including the seed money they have taken. netflix is a business that does not generate a lot of free cash flow. we might expect the same thing bout hulu. we don't know their financials. we don't know the financials of amazon prime. right now, there is still a frothy market. there are still high valuations. we will see if businesses can be supported by wall street when they can't support their own operations. that is the thing that could dissuade investment. if the rules of the road were to change, and netflix cost would rise, that could affect the valuation. disney could get a much cheaper deal under different fcc rules. right now, netflix can sustain themselves thanks to wall street, but not thanks to their own efforts. that sort of activity keeps acquisitions from happening anytime soon. caroline: that was cory johnson and bloomberg news media eporter gerry smith. donald trump has credited softbank's masayoshi son for bringing jobs to the u.s. the president elect announced
that sprint will create or return the positions to the u.s. the company has yet to determine where these jobs will be located, but they will be in customer care, sales, and other functions. this came weeks after japan pledged to invest $50 billion in the u.s. economy, and they are part of his overall 50,000 jobs commitment. mr. trump: so we have a combination of sprint for 5000 jobs, and that is coming from all over the world, th are coming back into the united states, which is a nice change. also, oneweb with 3000 jobs, a new company, and we have gone through masa, a terrific guy, nd we appreciate it. caroline: it has been trade and globalization that have been blamed for the widespread manufacturing jobs in the u.s., but some are pointing to a different culprit, robots. with driverless cars and chat bots doing things that humans normally do, how much will technology and automation isrupt industry as we know it?
what can the incoming workforce do tstem the tide? we discussed these questions with dennis yang. dennis: in 2016, we have heard a lot of discussions form around trade policy, globalization, and immigration. in reality, you look at the numbers, a lot of job displacement comes from technology automation. let's take u.s. manufacturing as an example. if you look at the output olume, it is near the all-time high, but over the course of the last several decades, the number of people that industry has employed is down 7 million jobs. the vast majority is due to technology automation, not necessarily from globalization. caroline: so productivity seems to be on the up thanks to robotics. there was a great study out of oxford saying almost half of jobs are at risk due to machines. are we going to perhaps a bit of a bill gates situation where this is actually underestimating what happens in the shorter term, under estimates the
long-term? could this be more of the jobs? dennis: i think it will be a -- i think it is going to be nderestimated. technology as a general trend, it tends to accelerate. it is different from immigration policy or globalization, where you can create policy to stem it. in technology, not only does it tend to accelerate faster, you cannot un-invent things. you think about the nature and the pace of change, things are always going to appear faster than we expect them to. caroline: so you think actually shorter, oxford without an outlook of the next decade or so. you think it could be shorter? dennis: i do. dennis: this year alone, the big items we were discussing in the mainstream. one is autonomous vehicles. hat will have a huge impact on the trucking industry, one of the hugest employers in the u.s., and the other is on self-serve kiosks and restaurants. millions and millions of jobs could be affected, and that is
just on the low end. as technology gets more powerful, you have to think it will displace more high-end jobs as well. caroline: so this is helping re-skill or up-skill workers. s this what the answer is? does the government say donald trump coming in, in just less than a month, will we see a focus on re-skilling? hould there be a larger safety net for those who potential can't be? dennis: certainly training and reeducation has to be a part of that conversation. that is certainly what we do. so, if you think about it, there are two things we think about. the first thing is this notion of lifelong learning, people are working a little bit longer. a lot of the conversation on education is in the first stages of life, but the world of work is changing quickly. people need to constantly learn new skills. the second piece is the most important valuable skill an individual can have going forward is the ability to learn something new, because it's going to be really difficult to predict the future world of work.
caroline: if you are coming in here and talking about this, i want to know how much in 2017 will some of the startups, of course, we have seen some of them fighting back and particularly disruptive industries. we have seen the effects worldwide, not just in the united states but in germany and the united kingdom, taxi companies fighting off the likes of uber. change is coming. you talk about a fourth industrial revolution. do startups and companies that are doing the disrupting need to talk out more about this and the ays in which people can be helped who might indeed lose their jobs? dennis: absolutely, that needs to be a part of the broader conversation. i think it is different from an education standpoint in that lifelong learning is really a new technique of education. in the past, most people think of education in the early years, k-12, higher education, if you are lucky enough to have a degree or diploma, they did not really consider what happened fterwards.
this goes back to the notion of lifelong learning that the need to constantly reskill the jobs you do have to stay relevant. caroline: dennis yang. ceo of the online learning platform. another tech company is planning for an ipo. app dynamics plans to list on the nasdaq under the ticket appd. they help companies check out their apps are running so they can respond swiftly to connection slowdowns or crashes. facebook has more competition in the live video front. twitter has updated its streaming service, periscope. it will now feature 360 degree live videos that can connect directly onto the service. this move is part of a renewed focus on gaining traction during live events. the feature allows users to tilt and rotate their phones for a full panoramic scene. coming up, the short-sellers' warning that rattled nvidia. will one of 2016's greatest tech stories become a 2016 cautionary tale?
♪caroline: it was a big week for chipmakers. qualcomm was slapped with an $853 million fine in south korea for violating antitrust laws, raising questions for the profitability of the licensing usiness. while the shares in nvidia fell the most in 19 months. citron research came out bearish on the company, saying it belongs at $90. we broke it down with cory johnson and ian king. ian: there are a lot of risks which everybody has been sort of pointing out for some time. he is not breaking new ground. what he is saying that this is a company which has done well in gaming, and put up a lot of growth. it has come from gaming. all of these new market, the
automotive stuff, the ai stuff is fine, but they are relatively limited at this point. he is pointing out with a new news story has been. t is a lot of competition. caroline: if you dig into the bloomberg, i am checking out the rsi, relative strength index, it was above 17. we are now passing back down after the slump. t was the worst day in six months of the stock. with $90 as the call, that is 18% to go. how much should we be listening to these calls coming from andrew left? cory: andrew left is a genius, but maybe not in this case. i like him a lot. aroline: he did not talk about valeant pharmaceuticals. that is how he got his name, right? cory: he has done some good calls over the years. he does some really good research, or has access to some really good research, but it tends to be in more secure -- bscure names and small-cap stuff. when it comes to big cap names, overvalued things, i don't think that is his very best suit, nvidia, facebook, for example. his research is not so unique and out there on his own. he is just kind of calling into question valuation issues, not fundamental issues with the
company. again, he does some really terrific work on smaller names, but in this case it is not his best work. it is a holiday week so we will give andy a break. caroline: it did not quite wipe out the moves we saw yesterday. give us a sense -- qualcomm. fascinating, we are finally getting the fine coming out of south korea, but this just after china. how worrying is this? it is not the only place we investigated. ian: $800 million for qualcomm is nothing. there is a lot of money floating around there. people have much more important things, much more concerned about the business model, 70% of their profit comes from licensing revenue. so anything that potentially
affects how they are able to levy licenses on firms is a big deal, and that is the key concern that has been there and is manifesting itself. cory: it seems like this also gets to the core of how qualcomm s and how it is different from most chipmakers out there, not ust because it relies on intellectual property or licensing inventions as opposed to selling the physical chips, but also they had with that business model achieved market dominance, such that their licenses, their technologies are written into the very codes that make this work. you really can't make mobile telephony without qualcomm chips. ian: that is precisely their argument. without us, it the world would not exist. we should be getting our cutter back. please hand over your money. so far the courts have supported them. you have got to remember they
have been battling in and out of the courts about the very fundamentals that south korea found them guilty of transgressing yesterday for years, literally for more than a decade. what happened is they tend to win. caroline: in china, they have had to potentially reorient the way they price their products? ian: that is one way of looking at it. the other way of looking at it, which the star market looks at it, they were not really allowed to do business in china at all. so fair enough that this is a reduced rate. that is not a great trend. cory: that seems like a glass half-full reaction to the news out of china when that settlement happened. fundamentally china says, you cannot do your business here at all. but then they have to do it at such a lower rate and a less rate. i'm curious what you think about the argument, the korean argument, that says they can't or they should not be allowed to build against the entire handset, just against the hip. how could that differ in their regime of structure? ian: that is an absolutely huge deal. this is something that they have had to fight around the world and in other places. in china, there was a concern what would happen. a handset, $700, looking at the
full retail price, initially 5%, 3% of $30 is a lot less than what they are getting now. caroline: how much good this impact are indeed going forward? this is their argument. the licensing, it helps refuel the research and development, but it also helps them in particular, gives them a leading edge. s this a boon? if qualcomm continues to see these sorts of concerns and we see the shares continue to drop, who is the beneficiary? ian: that would be the handset makers like samsung. that is what qualcomm would argue is behind this. cory: and apple. ian: they are going to be paying a lower rate. that helps their margins. caroline: nvidia might be different. is their anger against qualcomm in years gone by that perhaps they undercut the market, suppressed prices to drive out competition? ian: there has been no price gouging. the argument is they have built this market position which is almost 100%.
nvidia failed in mobile, they underestimated. -- the pow twofere modem. -- the power of the modem. it was nothing to do with qualcomm's actual power then. there were companies stronger than qualcomm in the past. qualcomm had the right technology at the right time. that gave them this initial lead. there are arguments about what they have done with this market power, but the technology decisions and bets that were made back at the beginning of digital were won by qualcomm. caroline: bloomberg technology's ian king and editor-at-large cory johnson. facebook and google reigned supreme in the 2016 app wars. the two silicon valley giants dominated the list of the top app according to nielsen. facebook was number one with more than 146 million average unit users per month, a 14% growth over last year. not to be outdone, the company known for the world's most popular search engine grabs the the most spots on the list.
♪ caroline: 2016 was the year of populist movements from brexit to the trump election, but perhaps ironically the world's wealthiest seemed to benefit from the move against globalization, adding $237 billion to their coffers. that is according to the bloomberg billionaires index. if you break it down by industry, technology fortunes were the second-best performing in the ranks. that is despite worries that a trump presidency might introduce policies that could hurt their companies. warren buffett holds the top spot, gaining the most net worth
over the year, while microsoft founder bill gates and jeff bezos are in the top five. you can get a picture of the bloomberg billionaires index on the bloomberg. go to rich . 2016 was also a year of dramatic progress for the commercial space industries aiming to cut the cost of spaceflight. spacex and blue origin showed with a string of successful landings that reusable rockets re key to slashing the price. not all attempts were out of this world. >> lift off of the falcon 9 rocket. caitlin: 2016 proved there is a new kind of space race underway, one to develop reusable rockets and dramatically cut the cost of a launch. here is why that matters. spacex already leads the industry on cost at $61.2 million for a falcon 9 launch. its rival united launch alliance says it cannot get the price under $100 million until 2019. spacex believes that recycling the first stage rocket can slash
its price of spaceflight by a factor of more than 100, which is why it was so important. after failed attempts to land a rocket on a floating barge, spacex made history in april, sticking a controlled landing on a moving target. it went on to record three more ocean landings this year and two on land. steve: imagine the impact for every one-way flight of an airplane you threw away. it would cost you many hundreds of millions of dollars to fly anywhere. that is the rocket industry today. if you could reuse the rocket, it would be like air flight. you would be able to fly around and be used again. that is exactly what spacex is doing. caitlin: it is not the only one. blue origin, which is run by amazon ceo jeff bezos, is also testing mess, but for suborbital flights. it has had five successes to date. but spacex's streak of luck ended abruptly on september 1. an accident while fueling led to an explosion on the launchpad. >> they were fueling up the second stage probably. it is fueled with liquid oxygen
and kerosene, it is a mix, so obviously it is highly flammable. it does not take much to cause it to spark and cause explosion of this magnitude. caitlin: three months later, hat has had a domino effect on the launch schedule. spacex remains grounded and plans to resume flight in september are pushed to january. the manned mission has been pushed to may of 2018. experts are not worried about the impact on the industry as a whole. marco: in five short years, this company has become the establishment player within the launch services industry, and to come so far in such a short amount of time and have had as few problems as they have had is eally amazing. caitlin: spacex still has a backlog of 70 missions worth more than $10 billion. caroline: that was bloomberg's caitlin meehan reporting. that does it for this edition of the "best of bloomberg technology."
make sure you join us next week, where we are speaking with aol ceo tim armstrong. plus, we will be joined by the fitbit ceo, james park. we get his reaction to his app reaching the top spot on the apple app store chart. and we bring you all the latest intact throughout the week. tune in every day. remember, all episodes of bloomberg technology are now live streaming on twitter. check us out at bloombergtechtv weekdays. that is all for now. this is bloomberg.
♪francine: hello, i'm francine lacqua. hsbc is europe's largest bank with more than 235,000 employees across 71 countries. douglas flint is the bank's chairman, a role he has held for six years. during his tenure, flint has helped guide the bank during its economic realities and this year's rise of populism has brought a raft of new political realities. in an exclusive interview, i sat down with douglas flint and asked how he would rate 2016? douglas: very interesting