tv Best of Bloomberg Technology Bloomberg December 31, 2017 4:00pm-5:00pm EST
♪ i am cory johnson. this is the best of bloomberg technology. we will bring all the text -- top tech stories. coming up, is the iphone x just too expensive? the analysts cut the numbers. and here is the strong sales of the alexa. how this smart contact vintage amazon product plans for 2018. among other cryptocurrency is emerging and been -- breaking out of bitcoins
chadha. this at a weak demand for iphones and a holiday season. they start sales to decline about 10 million units next quarter while they seize ship -- -- they see shipments falling. the high price and a lack of groundbreaking innovations. we talked with that -- about that with housework. was releasedone x six weeks after the iphone 8. there felt that in london to for the next high-end smartphone, it would probably come in march, they get too close to that and it will be enough demand to stay at the numbers they have to get. think that particularly in china we have seen a lot of the local manufacturers are coming out with anna that farther the price point than what apple is in the offer. because known quite yet has the pace ideas, the 3-d sensor that the iphone has, as some of these
analysts have been run today, that may not have been enough. >> it seems part of the big part of the apple strategy is potentially new applications and's of -- and stuff that we don't really see a. the fund is a lot of stuff -- or it could, but they aren't out yet. there is no uses for it yet. >> it curbs things were apple. they are very servers have about what they have in the pipeline in terms of hardware. inn they unveiled the phone september and had a released in november, not a huge timeframe for developers to start coming up with new tools that you can download in the app store. it might be that we see far more compelling innovations that use these 3-d sensors. also, we will never know the mix between iphone 8 at iphone x's very if they sell a lot more
iphone x's, but the top line and the bottom-line because it is so expensive are going to do so well. there is always this chatter that china won't buy the expensive phone. what we have seen is quite the opposite, china loves the big expensive phone. they're willing to pay for that luxury item. >> the iphone 8 is still the same form factor as the iphone 6. there is that he's amount of change between those three generations of phones, 6, 7, 8. that means that the price for is still pretty high. it is not the end of the world and apple is selling iphone 8's rather than iphone x's because the method components were very cheap for them. >> it is hard to tell that, there are some estimates out there. they are not significantly worse than they are in the 10. >> even the sum of the numbers have come down, for this first quarter, this is the biggest apple has ever had.
itselforget that apple doesn't break out any iphone revenue numbers. what we will be seeing -- >> we won't know specifically. the forecast that -- the revenue forecast for apple -- that might already take into account some of this. technology bloomberg alex webb. another apple analyst says don't worry, be happy. >> 80 take the numbers for face value, for the production in the march quarter, that would imply about 50% of the phones in the next year will be the iphone x. that is the $1000 phone. investors are expecting that number to be 25 or 30%. never one,ected and
number two, i think this is a positive. >> take us back to the fourth quarter of 2017. they brought the a and the 10 at the same time. the 8000 or someone disappointing because everybody was waiting for 10. they will make up for the 10. do we have any indication that they made up for it the fourth quarter with the 10? >> we talked to some of the builders -- the suppliers and they have been struggling to keep up. if you look at the inventory, we look at 140 stores in the u.s. every day and they are just reaching. life. they are at 97% as of yesterday. my point is that if there wasn't a lot of demand for this phone -- the iphone x, you have more that the numbers will be reported in the next three weeks and i think they will do better than expected in terms of the iphone x. and i was going to boil the whole apple story down over the next two quarters into one
thought. it was that asp's average selling price of the iphone will be going up and i think that will be the key factor investors will focus on. >> there are reports, could be right to be wrong, there are some resistance on the price, it is over thousand dollars, to know whether customers are getting a little price sensitive when it comes to apple? >> we coming over with the suppliers and supplies really tight. this is an indication that demand is good. i think the simple takeaway is this, the asp's are going to go up meaningfully, we think it will be upgraded and 15% this year and it is important to note that the vast majority of people who buy iphones, greater than 80% globally bite on a monthly basis. you're talking about going from $40 to $48 a month and that a dollars different is reasonable for most people. >> does that make apple has to sell less of the iphone x's if the isps are going to go up? it look at your bang for your
buck, your phone is your highest utility you will get of any technology. i think people recognize that even though that is a big number, $1000. about overseas? china has been a big target for apple, there has been a thought that when you get to those kinds of prices, it is a lot cheaper. do we have a sense of how they are doing in china? >> we don't have as good of a sense that. the iphone 6 cycle three years ago, they did exceptionally well in china and in the last two years it has been more difficult. i suspect the first phase of the iphone x will do well in china but then competition will probably chip away. that was due must are speaking to david westin and how still on bloomberg daybreak: americas. victim's, big checks, google and amazon saw double-digit gains in revenue, there could be headwinds on the horizon. plus as much as 12 months for rightwe don't with the
>> as we close at 2017, tech companies are getting historic gains. by fast-growing sales and hopes of continued growth. a big tech reckoning could come in 2018 in the form of oversight in a fractured relationship with users. we discussed with james talk mark. >> i love the way that you have covered these companies because you're looking at a lot of these very big companies but with a skeptical eye and some of the top issues we have seen them shall. but when you look at them, who has the toughest halt in the company? >> it has been an interesting year. they have all posted tremendous financial successes and definitely grown much bigger than what many thought at the
beginning of the year. at the same time, we saw this regulatory scrutiny across all the companies, the election did not help but as we look at the 2018, i think you can handicap it as amazon is likely in the driver seat when it comes to favorable tailwinds -- favorable winds when it comes to regulatory environment. as you move down netlist, i think google is next, they used to be the politically savvy but then you have facebook and i think they're drawing fire from both sides of the political spectrum. i think it will get worse as we approach the midterm elections later in 2018. i think that scrutiny will be escalate from here, at least from a headline perspective. what you predicted for twitter? do you think this hurts financial results? of the weekend, facebook introduced the speech that let
repostedout if you something from a russian fake news site, i thought that was an interesting response is very quietly over the holiday weekend. >> i think financially speaking, full steam ahead for all of these companies, amazon continuing to get an even share. continuing to gain share against traditional media outlets, google the same story, twitter is trying to carve out a path of their own going more niche but at the end of the day, these companies will continue to grow. i think from a financial standpoint >> using a lot of headlines, who cares if it won't affect the financial results. but you havected to think about from a stock perspective, the degree of multiple expansion that is in there, i be say we have the earnings power but at the same time, valuations have been steadily rising for all these companies, they are still relatively attractive for
valuations relative to their growth rate but i think that is something investors will definitely need to consider. legal problemsd potentially. amazon comes into your business model and every ceo in america is afraid of that whether it is a small business or a large business. is it a time where regulatory concerns will concern amazon russian mark this present doesn't like the washington post which is owned by jeff bezos. >> i think it will come but it will come later. right now you're in a situation where you have amazon moving closer to other federal agencies. you have them shopping around their second headquarters where all the cities are clamoring for the attention to get that.
>> that means you will take off every single city that did not choose. that will solve it, that will make it. you have always difficult incentives that will open up from a headline perspective new jobs and whatnot so i think amazon is safe for now but at once you trigger some major headlines such as reaching a trillion dollars in value, i think that will reopen the floodgates for regulators to come in. but now they regulators are going to be more focused on things that can affect -- potentially affect election unless, that is of this was actually an issue, the ftc would have scrutinized the whole foods acquisition a lot more than just a one sends response which is -- we think -- putting your face -- government regulators >> i'm saying there are priorities and incentives.
one of the things they do is attack the things that can affect their political prospects. >> 2018, the bigger story for 2018 is all these copies have been growing in their own right but i think what you will see in 2018 is for the two started a growth onto each other's territory. you have the googlers amazon battle brewing, you have google verse facebook battles brewing. i think those battles will continue to escalate so it will be a question of not if these these will get better -- companies will get bigger if shares will start to be shared between the two. >> you do have amazon growing a big advertising business. you the devices like echo, actually see amazon getting into
search in its own way or. y. >> you are limiting the way to his sibley search on google. on googlevely search when you introduce this on amazon. then you look at the contents out of the equation where they are -- amazon is likely going to be the biggest content spender in the industry, potentially even if losing netflix so what are the applications therefor youtube and facebook as well. technologies must of nauseous product of the presenting may have been fake news. sarah filings at the hip -- fake news hit of the year. and what social media company's could do to contain it. when we realize how quick and easy they spreading misinformation on social media can be. fake news canable
be. it was a get-rich-quick rich quick seem to caption on online advertising. we also learned it was a tool to disrupt democracy. internet agency reach over 100 50 million americans with inflammatory posts intended to start, with over issues like race and religion. this was done with 80,000 point .es posts >> these ads are just the tip of a very large iceberg. lacks resulted in google, facebook and twitter all caps to find in hours of congressional hearings about russia's tactics and how they can track to stop them. but it is not limited to the u.s.. the spread of fake news became a global issue in 2017. france and germany successfully fighting in their own elections while other governments are using facebook as a call to spread propaganda. a genocide in myanmar and an attack in the philippines and much more. just what can they do to rain
this end? people to goiring through all of these. twitter said they shut down thousands of accounts and are taking steps to get top or on extremists while investigating further. no matter what the sites do, one thing is for sure, they can use will get harder to stop. facebook often argues that is the technology company, not a media company. but to take on figures in 2018, it may have to be both. fake news in 2018, it may have to be both. >> tom will talk to us about punctuated equilibrium. it will help us explain innovation. amazon could be a big winner again. we'll take an in-depth look at the e-commerce giant. this is bloomberg.
♪ >> he has been part of the fabric of silicon valley for a walk. one of the titans of enterprise software. tom is now the ceo of c3 iot. he focuses on software for the digital transformation. down, he seemss to have big ideas. works we are working with some of the largest corporations to computing an artificial intelligence and take advantage of the internet of things to engage in what is being called digital transformation. corey: and taking companies that are digital and all the ways they work and helping them get there. this step function that has come online in the 20%
through two change everything thet the way they do business processes, deliver products, services, it is -- this is like other we have seen before. corey: i love the way that we look at technology to see new things, there was this idea of pop weighted equally rim, a notion from geology which basically says -- come if i'm paraphrasing -- by the time you have seen it, it is too late, the big changes in evolution happen even faster than we can record them. a newlogy, if we see plant species or a new kind of animal, the big change of this thing coming to exist has only happened, it happened in technology. this took when what is going on where we see an exponential growth in the adoption -- the growth rate of the adoption of these new technologies. cloud computing, internet things, artificial intelligence,
the other aspect of this that i you,t quite explain, like i'd better have this business for a few decades now. as we move to come to this many commuting -- many computing -- mini-computing. i was trying to figure out why these things were driven by the cio rather than the ceo. of thea page out evolution. darwin thought that the evolution of the planet was a continuous function. were thinking in the military technology business, continuous function and everything is constantly -- it wasn't even until this century that evolutionary balance -- it didn't happen this
not apeciation was continuous process because darwin cannot explain the gaps in the fossil record. was steve engle describes is this concept of peng shuai to equilibrium. he says going back even the last 400 million years which is in history ofrt the planet, we had six mass extinction events, the most recent being 65 million years ago when that meteor hit as other like 85% of the species on earth disappeared, including the dinosaurs so after we had this massive extension of that, we have the mass speciation which was good for us because the memos filled the space. let's go ahead in the corporate world, since 2000, 50 2% of the fortune 500 copies have disappeared. they have merged and gone bankrupt. >> i cannot believe that since 2015, so many of them had gone away, some have gone with you
and wants and worldcom's, some have just had a, massive mergers that it taken a sailing businesses, this seems to be a top of their game, take out before they were hit by that asteroid. >> maybe ibm is next. then you have what you talk about everyday on the show, what you and i are living on in silicon valley is this mess speciation that is going on with with his new dna, the airbnb, that movers. when the new iphone comes out and someone says it is not that different from the last one, the big change was when there was no iphone, when there was no clouds when there is a crowd, ridding after it is a step change but that they changed the one that matters. >> telik medications as we knew it when you and i grew up is gone. it has been replaced by the portable computer and the portable communication device. works are that can reinvent themselves enough to survive
this new digital age? i was going on, it is in the finest of places like caterpillar or john deere, paris, now in rome. defense, -- t of >> it has to evolve, it can go away. why is the ceo at the table making these technology decisions? he or she was never there before. i think the fear is that you get on the train or you will be on the tracks. >> not never got 545 -- for buying ibm. maybe someone will get fired for buying ibm now. walmartu are looking at -- you are in a world of hurt. if you look at tesla, if you don't adopt, if you don't
change, it won't end well. corey: his house what you are talking about with iot. process,talking about not just software that we will figure out for you. >> i do think that the internet of things was about the censoring of value, it isn't, the internet of things is about everything is coming on computers, changing the formfactor of these devices, eyeglasses, heart monitors, cars, thermostats, refrigerators, everything is a computer and then you apply a lot of that where the power of 50 network is a function of billion nodes and swear, that is a pretty problematic network. works that was tom, the ceo of c3 iot. >> bitcoin is not the highest rising cryptocurrency, that honors belongs to ripple. the ceo will tell us what will happen with all the tens of billions of dollars that his company is sitting on.
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corey: welcome back to the best of bloomberg technology. i am cory johnson. ripple is breaking out of bitcoins shadow. it is up more than 21,000%. more than any other cryptocurrency. the ceo of ripple joined us to argue that ripple has functionality that bitcoins only dream of. >> there is a lot of hype in the space but i think there's a lot of reality and ripple has been very focused on how we create you -- create real utility. in this case it is for cross-border payments which is a multibillion-dollar problem. if we can reduce the friction there using these technologies, we create a lot of value for
consumers, banks, the whole ecosystem. >> i know that travels overseas and you can see massive fees slapped on their own money, often from the same bank that they use in their native country and they know what it promises, let alone the use businesses at western union that others have moving currency. you are looking for beyond that. few banks that's in on top of the entire global payments infrastructure. all of the other banks and the paying them to help settle the global liquidity that is required for converse, retail and across the board, it is kind of amazing we still live in a world where to send money to london today, the fastest thing for you or i to do would be for you to drive and fly the money to london. that is crazy, we live in the age of the internet and we can move our own money in real-time. and as you said, the cost can be really high. >> is fascinating, it seems like
the kind of thing that i love when you talk about these things. when you make the sale for this business -- to them do you make a sale? >> we were solid technology to banks, part of that is a software sale. part of that is for customers that want to take advantage of a digital asset for liquidity. what that means is instead of pre-funding the joint of dollars the banks have with other banks around the world, they pre-fund that amount that sits there, it is really dormant cash sitting there, with digital assets, you can make that real-time to enable a payment across the board into another currency in real-time. today ripple is doing that into mexico with companies like wallets. we see that expanded with other partners and customers overtime. >> but take to the bloomberg terminal. when we created this monster of cryptocurrencies on the
bloomberg, we listed the prices of these cryptocurrencies and the and behold, number two right there, is ripple and when i look at what that has done over the last year, holy cow, look at that game. that is a stunning gain for anything. particularly in the last few weeks as we pointed out earlier. but that price right now of a dollar 23 will call it -- how many coins or have many xo peas does ripple on right now? >> they own 61%, there is 100 billion units and we are about 61% of them. i think there is no doubt a 2017 has been the year of crypto. of cryptothe year that x rp has outperformed every other digital asset out there. so year to date as that chart showed, we were up 20,000%. you about $75es billion worth of coin right now? >> that gives us a huge strategic asset to go invest in
and accelerate division that we see for the value there i was describing. an me this is all about opportunity to participate and accelerate a division we have had for some time. there's been excitement around digital assets broadly. rp's specifi x cally. we have had the best performing technology but to complete a bitcoin transaction, it takes about $40 and transaction costs are slow. it takes several hours on average and in contrast, x rp is very efficient, it settles at about three or four seconds and cost fraction of a penny. while i think there are lots of cases you can have for utility a bitcoin, it will not be a payment solution in its current form. i think it is a store of value. i think there is value there but when you talk about what's in other cases, in all these digital assets it comes back to what is the utility, the problem
being solved and if there are real customers that can take advantage of that. >> if you are sitting on $75 billion of assets, do you envision a scenario where you will sell any of that? >> we use a lot of that to invest in the ecosystem, in december we actually publicly produced a quarterly mark report talking about what goes on in the hrp market and we sell a makers to with market incentivize market makers, we want to make sure we have very tight with edited between x rp and other digital currencies and we want to go into the mexican peso. we want tight spreads between the mexican peso and x rp. exchanges globally to make sure there is very good liquidity to deliver on that. >> there was the ceo ripple. ciber currencies unprecedented surge in the last months of the year, a weird handful of stocks have glommed onto this and
appropriated excitement around the blockchain, one of the biggest one ubi blockchain, the internet was stuck with more than 1000% this year. i wrote a story about the coming for bloomberg news. you can find it on bloomberg.com and i talk about the blockchain bump with julie. example of a prime what is going on in the past month or two in particular in that there is a juice maker that tried to put them there, there is a sports bra maker that the size to put this in their name. and he's company that does the same thing. who would have thought, blockchain could help the manufacturing process for sports bras. none of them are actually doing anything and it seems like it is just adding that to the name, sort of like the late 90's and early 2001 companies were adding dot-coms are the name, not really doing anything with the internet but their stocks would surge. it is just deja vu all over again.
i was the money manager and looking for stocks i would not believe in, i would look for things that were right along the line with the trend. this one, i don't know that his fate were real or what it is but when i saw that it has both internet of things and blockchain in his description and has your revenue and over a billion dollars in dilation i thought this one is worth kicking around a little bit. no revenue, itt has $15,000 in cash. their brains are about to $20,000 per month, it doesn't seem like a company that was one that should be soaring and valuation. inhink there was a quote your story from a professor saying that the profile of the company is scary and that the summation of what this whole thing is. trolley, the accounting professor at the stanford business school has written very
positively about chinese rivers murders him in a refined this one concerning. the other thing i did was go back and look at the progeny, who was behind this deal and i was both surprised to see that they only list for executives and three of the people in the company, one was a former director and to her former executives, it was on the caught american bioengineering. their product was called the urine stopper. in stoppingise was bedwetting. >> you managed to get bedwetting into a headline at bloomberg. i love that. >> that is my finest achievement as a bloomberg employee. i talked to one of the lawyers for the coveting and i said if these guys have expertise in bedwetting, how can they have a company based in blockchain russian mark besides the part where they work with brady pressure protons that will energize the product and it was berkeley,r california known as things turned out to be
true, what is the connection between bedwetting and bitcoin? >> no one has its breeze with bitcoin, that is the best part. >> there is a reason that people don't have blockchain or bitcoin on their resume, it is so new they have not had time to added. but blockchain has been around a little while. i might take an argument with that, it might seem if you have experience you would want to have that on your resume. it seems like they weren't easy to get in contact with when you were writing the story. coming up, 2017 was a bobby 12 months for uber, let's look at the challenges, this is next. this is bloomberg. ♪
down in the $59 billion valuation not too long ago. joining us now to discuss the news, brad is sentiment across from me. -- sitting right across from a. his were not what it used to be? you can't escape the fact that is essentially less valuable than it was a couple of years ago and it was valued at $69 billion and that we are talking about a 30% haircut. you can make all kinds of excuses -- that this is a transaction not from the company itself but from its existing shareholders. it has been a bad year for over and that has hurt the valuation of the company.
>> this also took a well-to-do, who were the sellers in the steel? that i like this is the 9 billion but i don't like it at 49 billion, i was a 48, get me out. >> you have benchmark, an early investor, and the benches and other venture capital. travist know yet about is still on stem percent. owns 7%. it was a very ambiguous or negative economics for uber. the company lost $4 billion and there was a belief in the company for a long time that they could raise money and conquer and kill all the little guys, the regional players and that hasn't happened. basis destructive competition in places like india and singapore and brazil. they have are you deals in russia and china, this deal can help alleviate some of the competition because softbank has
invested in all these other companies as well. on chineseailed investment, a big chinese investment and to me it seems like they got out of the deal pretty good. they also bailed on their ceo and entire executive suites. they bailed on a lot of ways that they run the business, with a run for seamless this of the transactions, getting in the car, getting there and getting out. >> i would describe it as a year when the manifest destiny of over, to be a monopoly in ridesharing around the world is gone. that haven't because of the controversy but also happen because there were savvy investors out there that's entremed's opportunity for these other players and part of it was over his controversy but part of it was like capital flooding into the market and boosting and propping up players like a lot with usa and it is not at all, google will not be the dominant player.
uber is taking evaluation haircut. you've known me long time, you know i like my conspiracy theories, let me posit one, the last round of investors in uber had a deal that they would not get diluted in the future, that any these evaluation would only be a. we have certainly seen that in a lot of venture deals. had to pay they billion dollars at a high valuation while almost simultaneously paying a lot less at a much lower valuation, it would not trigger that reissue and even more shares to the last round of investors. >> i like your conspiracy theory, i have no idea if it is true. >> the thing that i wonder is if over -- uber is not going to be this global takeover, how big is
it -- how big can it eventually get? it is losing staggering sums of money. if you invest in uber for a few years ago, thinking that it will go into russia and indonesia and africa and the restaurant delivery business and all these other places and justine role every competitor that no longer looks like a sure thing and so what is over worth if it can't be successful everywhere in the world? >> it seems the path is wonderfully less obvious and were obvious at the exact same moment. the time from now until ipo is longer and they want to get to an idea eventually. also, it gets simply because the varying shares of stock, the fact that shareholders don't -- a lot of money at stake ineverything has been tied
with this deal. note after voting, power for the earlier shareholders, softbank is taking board seats, governance reforms, this becomes a simpler country. sued.ark was just some of these lawsuits go they said 2019 for an ipo, this is the pressure for liquidity taken up the table with this deal. i think he has room to operate now. >> that was a rocky year for over. couple's looks at the past, present and potential future problems. >> 17, the you that uber probably wants to forget. travis resigned, dozens of executives left. allegations of central harassment by employees that
brought its company culture to life. but that wasn't all. lift continue to eat away at market share. one of those largest investors announced it is suing over, to top it all off, to round out the year, london lost his london license -- uber lost his london license and continues to be facing mounting legal battles from all over the globe. but uber is trying to turn the corner. with the new ceo bring in new legal heads and a coo as they try to right the ship. tourhad been on an apology , the second half of 2017. meeting with every regulators worldwide and bringing uber skeletons out of the closet. such as the massive pack of over 57 million accounts that have been covered up for more than a year. so how did uber's business there in 2017? it grew.
these bookings reached 37 billion for the year. that is up from 20 billion in 2016. still, the company lost a massive amount of money, the years losses could reach over $4 billion. so what is on the to do list? andw cfo, a new board chair new directors. the forget, cutting losses and reducing redundancies but the legal matters loom largely. over and out with that face off in court in february over self driving waymo technology. the u.s. justice department rates these terms, looking into five different cases over pricing, bribery and trade secrets. but one thing is for sure, 2018 won't be the year that uber goes public and instead, it will be the year that it has to rebuild its reputation in the court of public opinion. coming up, we'll take a look
♪ >> amazon to be the biggest winner this holiday season. they saw tens of ninth of amazon and alexa enabled devices during the holidays but they won't tell us how many. they said i could not was the top-selling spot across all categories on the site. amazon also said that 4 million people started amazon prime, three trials or memberships -- free trials or membership over the holidays. a top to selling
items, one was an echo and the other was a feisty. there are a couple wins for the company, the tangential is how many more alexa enabled devices that are, you can go to amazon and search for alexa enabled devices and you will find your speakers, your light bulbs, it will be increasing numbers of things so they get the echo system out there, i also put in the press release that they saw millions of prime customers were using alexa to order products on amazon. not only are they selling a device but they are selling a convenient so it would be easier to turn around in the kitchen and say alexa order more coffee. obviously, amazon customers are doing that. >> i think that is the reason why they open up the platform. they have some of those devices like $450 and not for nothing, and hope she is not watching. but a really fantastic device, terrific sound but it is not amazon, why would they give it away? you get the amazon echo system embedded in multiple
devices and amazon just has more ways to offer product and deliver products so you can order an indirect with amazon, not just when you're here and your desktop, with your phone but maybe when you are driving you can talk to your car and order from alexa. a win, we are thinking we are probably too conservative given the numbers we were 40 million amazon and i left -- echo installed devices. the number is probably 15 to be 60 million. there are a couple of other things that i thought were really interesting. customers,of prime we think you're 60 million in the u.s., they added for in one week, with his instructions. quite father lower than it is all the times. >> but 50%, something like that, probably higher and then there was the other one. the verve units that they -- expedited, either a prime for same day or next day doubled year-over-year. people talk about this pricing.
>> this is a run rate. this is only 25%. >> the point is that there is more than just a price of adage. the biggest moat they are building on the company is they are building to get you product faster than anybody else. it matters, it matters as you are going into christmas and you don't have those gets ready to go. you can still order on the 23rd or 24th and you recognize that event's annual see that convenient advantage. that is the new moat at amazon. about 31% predicted growth. and that of course includes very fast growth in amazon and web services what it is intriguing to me that all of the different businesses that we should these guys going into, that -- do they all still go back looking at b2c selling stuff to people that mike and his electronics, video, whatever? specially drugs, whatever, but
it really is about selling volumes of this to consumers? >> i think so, it is building up the customer relationship and one of the strong as relationships consumers have is with the people that -- we give response,to and in this is in order to get products, that is a very strong retail relationship, you can have a media relationship but very few companies have that kind of media relationship, eddie netlist, google, facebook. and disney, multiple brands but a retail relationship and amazon, they are providing goods and some services, entertainment youanything jessica means can find around house, they are breaking into new categories, you know that spending into groceries, the single largest consumer category, and now the largest data of apparel in this country, there are still opportunities for that. i think almost inevitable that they go there. isaac it is so 3-5 years. >> at eight what is interesting about alexa is that if they're
really getting brand a little bit, they never really have. amazon seems to have a peoplephical belief that will migrate toward the cheapest thing. brand is the opposite of that. >> increase another revenue opportunity as in nobody's numbers. 30% tax onre takes a all products bought and sold on that in the apple store, google home does the same thing. right now, amazon doesn't get any of that tax revenue but you get 100 million, 200 million alexa devices and alexa enabled devices and all of a sudden, when the consumer says i need more coffee or diapers or i need a car service, all of a sudden you have providers that can bid against each other for placement in the search results and then you have platform revenue, that could be a really big win. >> that was mark. that does it for this edition of best of bloomberg technology. is, 2:00 out west,
♪ nejra: coming up on "bloomberg best," the year's most compelling conversations on business and finance in europe. the back-and-forth progress on brexit sparked constant debate. >> i want to negotiate a good free trade agreement with the european union. >> the situation after brexit will be worse for the u.k. nejra: facing political turbulence, european leaders regroup to promote reform. >> we need more vision, less bureaucracy. >> it is not risk sharing if we have the instruments to implement this common decision. nejra: it has been a year of transformation. for better or worse for some major banks. >> the buy word is always