>> from pier three in san francisco, welcome to the best of "bloomberg west." where we focus on technology and the future of business. i'm emily chang. every weekend, we will bring you the best of west, the top interviews with the power players in global technology and media that are reshaping our world. it was a big week in san francisco as apple held its conference. plenty of highlights that yosemite, a8 and

new system for the desktop. and the integration before macs and mobile's. a new health feature called health kit and a developer called home kit. features aside, did apple hit a home run or were they missing something? our editor at large cory johnson spoke with author of "johnny ives." and she is the editor and publisher and has covered apple for more than a decade. we were joined by one the most widely followed analysts, found an author of simco. attend from finland to the conference. we asked him how the conference backed up. was amazing. one of the best shows. >> why? >> you need to get out more. >> very different.

>> no, you are right about that. i was a developer when i was at college. for me, when they announced the new language, it was a watershed event. these things do not come as often. apple has three of these in its entirety existence. what a means for developers is productivity, massive increase in types of applications they can build. it was all about all of these building blocks which have flooded in. 4000 api's. i do not think they have done anything close to 2000. it is a mind-boggling. my concern is that developer community, it was a wonderful event. that wasness analyst, not a lot to get excited about. the way i would put it, it is like going to a cement conference and learn all about

cement a you want to see the skyscrapers that can be built. they hinted. they can build a whole city. >> one of our earlier guests reminded us is a worldwide developer's conference. you have been knighting. would you agree? -- you have been nodding. optimistic.ng they show us they are looking at three massive areas. the home, health, and mobile payments. hugell of them have implications for the next few years and it is what tim cook said is true, these may be indications of the three things they are looking at which is an iwatch or home technology. jonny ivessakson --

-- pardon me. you are the expert on him and how he thinks. i think of his work is being very close to. wall-e, youipod or have to write when he is in charge and all types of new options ladled onto the experience. explain. been veryalways sophisticated. try to make it easy. the one button now a heap is three buttons on it. the operating system behind it. -- the one button now and he puts three buttons on it. they're hoping apple and developers make it easy to use. chris there is an old saying in design that it is very hard to make systems so ingenious. to makesense it is hard things easy. that's what we are seeing. it is being introduced.

all the things that will make it easy but complex at the level we are looking that. jony ive asus about a person and leader. what did you see as his trajectory with an apple? funny, because it is a maverick. it is surprising. they do not sell as many computers as ios devices. i am surprised they spend so much time on maverick. they cleaned it out and it looked great. very clean and simple. i think it looks beautiful. a very nice interface. and today keep a separate but making it work quite well with ios so the collaboration features have a handoff, the way they were able to start work. it shows that both are very

important. there's a clean a unified design. anesthetic. you can move from one to another. -- an aesthetic. >> i would say they are learning more from the design cues. they are coming from ios. starting to percolate or trickle-down. there is an interesting thing, from the designer's point of view, the devices are constrained. they are smaller. and so what did they are designing around the strengths and branding that to a more rich environment. that is the direction to go into. anding harder as a designer that is what we are seeing the benefit all. >> leander, you have a quote from jony ive. how does he think about innovation? innovate like craig --

is a innovate like crazy. gotten a lot of praise last week for the driverless car. people compare it to apple. when will apple come up with? google reinventing the future. people misunderstand. what they have is a demonstration of potential technology. it is not ready for prime time. apple does it all behind the scenes. what we see to the -- what was he today is results of many hard work. we will see the kind of innovation behind closed doors. aboutant to talk presentation today and will present and who do not know what it means. we heard from tim cook and greg. nothing from bill or jony ive. up --l schuler, heading

they did the demo of ios, i suppose. and he was represented by his team, i think. essentially, what we are seeing is a rotation of some fresh faces each year. we are seeing people we did not see before or may not see frequently. i've seen there is a concerted effort to show a team effort. >> and there are no stars? >> they are all starts. let's say it in that way. end, everybody will contributed, they took a bow. >> that was leander kahney and horace dediu. and my partner cory johnson. apple's chance to dazzle. what did experts think about the company's announcement? that is next on best of

"bloomberg west." ♪

>> welcome back to backs of "bloomberg west." apple conference keynote was a live stream worldwide. the company was really putting on a show for its developers. cory johnson eyes old with -- and i spoke with mr. schenck. they depend -- and on developers to fuel their business. how important the announcements were for his company. >> i think it was the most developer centric keynote i've been to. i get really excited about this stuff. >> consumers rely, what about me? about of the excitement the environment and language, it centric.eveloper

it will lower the learning curve. it is not what customers will see. >> do you think it will really lower the learning curve? i just heard new language. >> and that is all i know. >> is based on languages that developers, javascript. things people are familiar with. >> anything happens faster and cheaper? and ouris what i expect guys are excited about. developing on android and they are excited. chris are you developing on android -- >> are you developing on android? a mobile only company. we operate on all of the major platforms. >> from your perspective, does apple still have -- to back thisot

morning. android has really made some big strides. being very developer friendly. they went all out. make it easy to do beta testing and deploying different features two different people and a lot pi's communicate with each other. up until recently, it was missing from apple and i think they caught up. >> it is hard to judge the success during a keynote. apple's faithful will cheer at everything. a coffee cuphold and they will say, coffee cup! yes, he would. the mobile stuff, the crowd was very excited was beta testing. along out -- allowing apps to be tested by groups. a company could sell, for zynga

could bundle them all up together. >>. huge thing for us, product to be in general -- the huge thing for us, the productivity in general. of apps hooking into each other and the operating system. the mac and the phone. you are right, that consumers will not see a major change tomorrow but within two or three months. this is going to be huge for consumers. >> i can see that being huge for company especially like evernote . what about this whole idea of innovation? and if apple is still innovating? do you feel it is still there? as a is where we started company. we started because we were so excited about the iphone and we wanted to build something for it. it was our inspiration still at where we developed our first features and where we get feedback and where our top uses

are still using iphones. >> that is something that has not changed in the past three .5 years. it says a lot for the platform and the users. and also, it continues to deliver. >> how about you? uses are more valuable per user than android users. money. >> how wealthy that are or how much they spend? >> that is mac versus windows. ios versus android. android performs very well also. i think apple is very innovative. people can say they are not innovative at the innovation is the only way you have completely new looking piece of hardware. the in between, it is taking a great idea and making it better and better. last time ite happened was in 2010. maybe that is a long time.

maybe it should be happening faster. >> i am hoping there is new hardware later in the year. i agree. some kind of a fitness or watch would be fantastic. actually, with today announced today was deeply innovative. putting in this kind of functionality that preserves the security and feel of apple products as hard. incredibly hard to do. the fact that they kept it a secret is no small feat as well. orchestrate, a development language. a newmazed they introduce computer language and nobody knew about it before hand. you do not do it in secret. >> how long does it take to be implemented? everybody has to learn it, right?

>> i am going to learn it pretty soon. it's not like you have to switch. most people will not switch her right away. that's a much longer-term thing. we will look at and see apps appearing on it on day one. and components of apps where it can add performance. that will be the first things. you do not have to pore over the entire out. and phil libin. fcc for host stop the creating fast lanes? net neutrality fled at the fcc website. the best of on "bloomberg west." ♪

>> welcome back to the best of "bloomberg west." the fcc is growing -- is facing a growing backlash about net neutrality and fast lanes. tens of thousands of people flocked to the fcc website after mr. oliver urged viewers to post after a 13 minute monologue in support of net neutrality. >> right. the fcc are literally inviting internet comments at this address. and i cannot believe i am about to do this, i would like to address the commenters out there directly. good evening, monsters. [laughter] maybe the moment you spent your whole life for. indeed, the fcc website went down following the speech by john oliver. more than 49,000 comments on the issue. a huge number compared that most

topics have hundreds. cory johnson spoke with the former fcc chairman and ask if you ever seen a public response to fcc issues this big. theack in the day, and 1990's, we had aol, steve case was the ceo, the e-mail of 00litical lobbying, 400,0 e-mails were sent to the u.s. congress to tell them to keep the internet open. it is the same issue, many years later. hasthe power of the net grown and the chairman is getting an earful. level, i feel like i've not done a great job of explaining what this is. the notion is some things on the internet will be allowed to come to you faster. if some companies want to pay

for that. there's a bigger framework and i was wondering when you were at the fcc, how did you position the internet and decide how to regulate it? >> the fundamental view of the fcc ever since i was there in the clinton administration has been the internet really ought to be open to all users and that include people who put content out and just want to see the content. and it all to be neutral that anybody can put content out and anybody can access it. i am on the board of issa and we are launching this friday a particular application which anybody can download for free. on aoad for free issa smart phone. you will be able to measure in your house, your wi-fi speed. you will be able to find out if you are getting the internet that you paid for. -- if order from, past

you are from comcast, you will be able to find out if they deliver. the point of the fcc is you ought to be able to go as fast as you purchased. you should bid to go and the fast lane you chose to any website and any content. ,> i think it's a fundamental it gets at fundamental beliefs about government responsibility. fundamentally, if comcast has to deliver everything at a high speed, they take on a greater cost for the burden of a what? for the benefit of home? >> for the benefit of the you and me. do you want to the cable guy or cellular company to be between the eu and the content? they are between you and the content. do you also want them to close some doors and open other?

slow some access speeds and speeds?d some that is the fundamental issue at the fcc. the starting point is knowing that you are getting what you paid for. to know if you are getting what you paid for. >> and not that we have concerns over what what roberts' viewpoint. if somebody has that control, it erases free speech. i was surprised to see john oliver take it on. let me play a brief clip. >> you bet. visit these companies have washington in their pocket to conveniently to a degree. >> comcast has spent $18 million in lobbying last year. more than any other company. rankingto be clear, the of influence is number one, the

military-industrial complex and number two, the provider of the -- [laughter] viewersbloomberg west got a look at that before. issue that wee try to bring coverage to earlier, what about the revolving door concern and the concern that tom wheeler and others cannot be fair because there've gotten so much influence from lobbies in washington? dashing back the when the internet was in its early days, all of us in washington, we were having this discussion, we wanted the internet to be a platform for grass roots. what you are seeing in these comments to the fcc is basically what we hoped for. we hoped everybody call log on to the fcc website, sorry it crash, it needs to be beefed up.

i want people to download this free app from issa and put on their smartphone and measure the bandwidth in their house and to tell the fcc if they are getting what they paid for. au will get a heck of reaction from government if you report you are not getting what you paid for. and if you are, complement your cable guy or cellular guy. it is a free app. --there is the fact that [indiscernible] kind of pathetic to some the faster countries. >> there is nothing wrong with the whining about it. download for free app and submitted to the fcc if you are not getting what you paid for. tell them you do not want to be in japan to get fast internet. >> reed hundt. coming up, we look at the rapid rise of chinese phone maker,

xiaomi. we explore, next. ♪

>> welcome back to the best of "bloomberg west." i am emily chang. here is a look at xiaomi and their rise to power player. >> xiaomi welcome back to the best of "bloomberg west." i am emily chang. xiaomi is no longer little. found then helped

company. he launched its first android-based firmware. xiaomi took on apple with its first smart phone. they have introduced products every year with great fanfare. so far soaomi rise fast. first, there is the price. if it costs half of the cheapest iphone in china. then there is the business strategy. they sell directly to consumers online. $241-day sale brought in a million in orders. when the new phone will launch last year, they sold 100,000 phones in under 90 seconds. they plan to expand outside of china. just drop the little from its domain name. this $10 billion startup is

starting to think a lot bigger. corey and i spoke with redstone who was in beijing where he attended the tablet launch. he spoke with bin lin. this takes an in-depth look at technology companies outside silicon valley. is ajoining us from london former google exec. >> i think it is very impressive. one of the things that we need to point out is xiaomi is successful not because it is a low-cost copycat. it is easy in the west for us to think that. they have a great product and an affordable price. as brad mentioned in his article, their business model is very disruptive. they are not a

global power yet. be disruptiveld to somebody like apple or samsung. >> part of that is selling direct to consumers. there are no can -- retailers. >> that is a 25% margin. they also don't advertise. they grow up relying on social media. that is attracted to the star power. that is a big question. can they translate that to other countries? >> the google dna that runs to this happening is interesting. standpoint, what do you see about this company that has taken notice from google? >> that is a great question. there is a flavor. it is commoditizing a layer and giving it away. xiaomi is not given away the hardware. they can't be very much market on this -- margin on this.

xiaomi is dependent on the android ecosystem and being compatible with it. product.s a google is a flavor variant of top of that. it is very important to stay in sync with google and android. >> let me ask you a question. if google was a more active participate -- or to submit in china, if they can have pure android in chana -- china, would be as successful as it is? >> i think so. i do think so. i certainly think that the mui is the other thing that people don't appreciate. that is the innovation. it is very much based on user

feedback. they push out software on a weekly basis. that is a very google thing. to launch something and continuously innovate on it. you can imagine that they would call their phone a beta phone. lin was a longtime google executive. they all came with their different backgrounds and brought their own superpower to help give xiaomi what it used today to get to the top. >> the reason that he felt free and had the entrepreneurial spark and left a google was because they organized its operation. a lot of the googlers were based in beijing. they felt that there work was being lost by the reorganization in china. he told me that was the spark that had him leave.

some of the other founders and early employees were free to build this company. >> i want to talk about the suite of products they have. let's listen to the launch. this is what is the potential. we want to make the best android tablet out there. i hope that our efforts will put some pressure on apple that not all android tablets are hidden away. we want to make a tablet that everyone wants to use. >> this is a guy who has been compared to steve jobs. he was not wearing the black t-shirt and jeans. ?he ucf goes of jobs in lei jun >> he is much more humble. he sort of apologized in some way to the low memory version of the pad.

they were not as disruptive with prices. he said the ipad is a great product. steve jobs never would've done that. >> cory johnson and brad stone. he has a cultlike following in china and has been compared to steve jobs. and howtly is lei jun has he been able to wow the chinese market? that is still ahead on the best of "bloomberg west." ♪

>> welcome back to the best of "bloomberg west." i am emily chang. on a special mission of atoomberg west" we looked xiaomi. the driving force is ceo lei jun . he is called the steve jobs of

china. he has a cultlike following. how has he dropped -- driven their success? lei jun may not like for his company to be compared to apple, one look at him onstage and you can't help but think of steve jobs. accident. lei jun read a book about jobs and decided to emulate him in style and substance. many has his hands in places in the chinese technology community. he understands the holistic view of what consumers want. spent six years at a chinese software company. he worked his way up to ceo while at the same time founding and e-commerce company.

in 2010, he teamed up with a google engineer and other founders and xiaomi was born. while apple may have inspired him to start the company, is quick to point out the differences. >> a lot of people think we are chinese apple. i feel this captures part of it. i feel we are very different from apple and more like amazon. part to a rockstar ceo, they are growing fast a big threat -- be to both apple and amazon. >> for more on the man behind xiaomi, we were joined by the managing partner. they were both early xiaomi investors in. he wore that black t-shirt all the time. not at the most recent event. i asked why.

>> that is on purpose. there was some interesting press that will come out. the comparison to steve jobs was too much. he reveres steve jobs very much. he did not want people to mistake that he is the next steve jobs. ?> who is lei jun he could have retired. he was very wealthy. he decided to start a smartphone maker. >> when i first got to know him ambition, most entrepreneurs think about building a weapon and going to war with one weapon. he wants to build a military apparatus. he will have a browser, a phone, an entire ecosystem around the mobile revolution. that is how he looked at it.

what drives him is the financial. it is also impact. this is what got him going. >> he had some scars from his early e-commerce foray. now and hadwell some rough years. oya for a lot.l j >> it was an early internet space in china. every single one of them he felt that he did not capture the right trend. startup,as doing the jack mock and probably were just starting out. was the hardest working guy

in the business. thought mobile was the next big trend. he captured it and mailed. >> he works six days a week. >> seven days a week. i can show you that. 1:00ll respond to you at in the morning. >> would you say that he is on alibaba? of >> the real question is how much bigger does it go. xiaomi is a very ambitious company to go global. inh an internet company colorful hardware, you see the opportunity for him to go into other markets. that was hans tung and brad

stone. you can catch the full special on your tablet and boomer.com. the hottest trend in business today is the walking meeting. trail.hnson hits the ♪

>> welcome back to the best of "bloomberg west." i am emily chang. long presentations and interruptions, traditional meetings may be the latest thing silicon valley is making obsolete. many of the top executives are taking a page from the late steve jobs. they are shunning the conference room in exchange for the walk and talk. jeff weiner is known for taking walks.

cory johnson recently took a walk with them to see why he takes it outside. show me the way. this is your regular walk? >> this is where it begins. it it was very practical at first. when we were at the earliest stages of hypergrowth, we were doing facility planning. for one. of time, we have a lot of people and not enough space. one arson was responsible for training. he said i have a great idea. we would be in better shape. do your meetings while you are walking around. this was something that they had already started. they were sharing that as a tip to people in the office. it was so clever. you didn't want to spend more

money on conference rooms. >> we did. we have continued to expand. a place in san francisco. we have new office space in sunnyvale. this is a natural part of the growth of a company. gople very practically outside. it is very practically speaking you have to come up with solutions. it is so easily overlooked. >> what do you think you get from a walk and talk that you would not get otherwise? to.t would be hard the getting outside changes . there is incredible scenery. it is beautiful weather. there is something about being outside that is a huge benefit.

it beats the office. people interact and connect differently outside and they are walking together. it may be that they are able to be more candid because they are not making direct eye contact. they may be comfortable outdoors. clearly changes. an interesting part is it minimizes distractions. >> there is no checking on e-mail. >> i am not doing this. people can't interrupt this. that is the nature of the times we live in. this lets us get away from everything. we can pop -- focus on the person you're talking to. withat was cory johnson jeff weiner, the ceo of linkedin .

actor and director jon favreau joins us next to talk about how tech is changing the movies. ♪

>> welcome back to the best of "bloomberg west." i am emily chang. jon favreau has been a big name in hollywood since the 1990 hit swingers. he is been directing blockbusters like ironman. his latest film chef looks at social media. jon erlichman spoke with the director about everything from he startedlon musk. asking about technology and how it factored into the film. >> our generation is the one that resume that remembers life before twitter.

we have seen a lot of good things happen and we have seen people make their lives very complicated. i have been on twitter for five years. i am very careful i get on there. there are cautionary tales of what happens when you are too emotional or had too much to drink or think you are being funny or sarcastic. it is a whole different language that our kids understand better than we do. >> in the case of your film chef, there have been so many positive tweets and momentum. anthonyts from boardgame and elon musk. what does that do for a film like this? an experiment to cf social media is as relevant as the marketplace thanks. traditional marketing where you just dump hundreds of millions of dollars into commercials still rules the day. you see these huge weekends that

are dictated by very big marketing machines. i have been on the other side of this. the question now becomes can a word-of-mouth film that is well reviewed and touches a specific audience and touches them in a sincere way without a big marketing push behind it, can the word-of-mouth spread thanks to social media. this film has doubled up from two cities to 70 screens to 500 screens to over 1000 screens and that is thanks to social media. >> you encouraged robert downey to join twitter. when it comes to using social media, what is a difference between how it is used for a film like chef and how it is used by big studios? of nuts onlittle bit top of a sunday with the big studio. it would work without it. or a pop-upchef restaurant or a food truck or an

thegallery opening , independent film world really is impacted by social media. >> we mentioned elon musk. he is a friend. he was part of the inspiration for the tony stark character. is he an investor in chef? >> i have become friends with them over the course of working on ironman. spacex.to we faced at now everybody knows about spacex. when you look at iron man two, justin hammer's weapons factory with spacex. >> they have benefited from social media. the positive press was allowed them to avoid doing their own tv spots. interest ever have any in directing a tv commercial for tesla question mark >> i'm a tesla driver.

i put my name on the list because it one must was a friend. he did a cameo for us. i will sign up for his ilk are. i will make them feel good. gets on the first google one and it turned out to because of the year. i sold my other car. i haven't looked back. >> right now, there is a push in hollywood to get faa approval for the use of drones in productions. what do you think about drones in films? >> the use of technology to keep a set safe is a good thing. whether it is having a digital double for a very dangerous stunts are not putting a human in harm's way or if you could eliminate helicopters in rich areas situations and replace it with a controlled remote

controlled vehicle, it could be good. i think it is worth exploring. >> that was jon favreau with jon erlichman. that does it for this edition of the best of "bloomberg west yuriko you can catch us monday through friday. ♪

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