live from pier three in san francisco, welcome to "bloomberg west." i am emily chang. ball atthrows a curve apple, six days before the new big-screen iphone. unveils two new versions of its galaxy at including one with a curved screen. we look into who will win the fight. whether it is samsung, the ituneshacking, the outage or something else, shares of apple are getting pummeled

today. the stock is down 4%. is it just a temporary blip or a sign of something bigger? it is the nation's most popular with the nfl kicking off tomorrow, we take a look at the media power from its 20 $7 billion television deal to how technology is changing the way fans watch and experience the game all part of our special, the nfl's media empire. of, samsung adds its fire to its rivalry with apple. six days before apple shows off its own big-screen iphone. the new tablets are the galaxy which features, a screen that is curved over the right edge of the device using flexible display technology. samsung announced a virtual reality headset.

wearable,off a new the smart watch, all of this happening in berlin, beijing, and new york. cory johnson was at the new york event and joins us with more. you got your hands on some of the stuff. what is it like? >> it's like a phone. a was interesting they made big deal about what is very note devices new announced, there is no timetable for shipping, prices or carriers. the same thing with the samsung edge. ithas a bevel on one end of so it can offer on-screen commands like a menu. interesting. groundbreaking. something they showed off two years ago. these products introduced, but it is more than a handshake than ahab. you could not buy them.

this is about getting ahead of apple. >> obviously samsung's tablet have slowedsales down, not unlike what is happening with apple. have dominated tablets until now. is going, next week, to be giving them competition. look, there is going to be some changes in the way the businesses work between what a phone is and what a tablet is and what is between. phonesot these big sized from samsung like the note and a bigger iphone next week. i wonder what it will mean with the many tablets and the sales of those devices. we understand apple was going to come out with a bigger ipad next year as well. market is getting bigger. >> samsung took a swipe at apple

during the event, the band maroon 5 said there was going to be an iphone burning? they announced to the galaxy phone with a cap dancing child on the stage. his time they had maroon 5. they were talking about a proprietary music program. it felt like it was trying to put samsung in the forefront of discussion. >> what about the virtual reality headset? now partnering with facebook's oculus to make a virtual reality headset. where is this going to go? >> it is the same as the phone, when is it going to happen? product make. they had a handful of them today. they did not have them actually market or planhe

for when that is going to happen. the device itself, i have used is oculus reality itself, it basically the same thing. it is an interesting but very beatta like experience. >> i know you tried it on. what was it like? there i am trying it on. it is really fascinating. and there were people behind me and next to me. the camera angles are interesting. i can imagine a creative filmmaker having some interesting time with this as well. bloomberg created a nap so you could have an infinite theer of screens, for

bloomberg obsessed. the other thing that was interesting but told the whole story was the watch. a expected them to announce samsung watch, and they had one in the demo room today. there was no announcement. the people said we are not talking about a watch today. i said there is a watch rate here. what do you mean? we are not talking about the watch. there were a handful for people to try on. it is an interesting device. i was describing it as dick tracy device, and stephanie ruhle called me old. it let you make phone calls, directions while you are walking. it is interesting. it is not ready for prime time because they were not ready to discuss it. >> you are old. who are we kidding? >> older. >> cory johnson, thank you so much. cory was not the only one who got his hands on their new

devices. sam grobart was also at the product unveiling this morning. take a look at sam's take. >> is it september? are we downtown manhattan? be another samsung event unveiling three new products, the galaxy note 4, edge, and vr. the note 4 is a flagship tablet. it features a 5.7 superbright display. to 50% in onlyed half an hour. the note edge has a revolutionary new display that actually curves off the side. that is a you can access apps and information without disturbing the main display. provides virtual reality. it was designed in conjunction with oculus and is powered off of the note 4. this has been a trippy year for

samsung. they have been getting pinched in the marketplace. i has been competition from chinese manufacturers and at the high-end, companies like apple and others remain competitive. what we are seeing today is as far as the u.s. is concerned, samsung gets putting his chips on the high-end of the market. with major events coming up for motorola and apple, we will see how the battle for the luxury end plays out. samsung'sbart at unveiling today. apple has one of its own next week with the new iphone. or iphones, plural. the company is battling a rash of problems. shares are taking a beating. that is next on "bloomberg west ." ♪

welcome back. i am emily chang. the week has been filled with challenges for apple. photos of nude celebrities were stolen from apple accounts followed by an hour-long itunes outage yesterday and china mobile has started pre-orders for a mysterious new iphone in beijing. over 53,000 pre-orders have been placed. down more thann 4%. how dangerous is this decline head of one of the most important launches ever? now.satariano is with me is selling the phone and it does not out yet. what is up with that? >> they wanted to get a jumpstart on the market, i guess. forstock has had a good run

a while. investors were anticipating this new device. a few analysts threw cold water on expectations saying the new wearable device will not be a huge profit driver. dampening expectations little bit. apple'smay downgrade stock. >> we think this is a wonderful opportunity ahead of a big product refresh next week. we're going to have them competing in the larger sized smartphones. going tohey are revolutionize mobile payments with their freeing her print scanners -- with their fingerprint scanners and bring the light the need for security. and with the new security features, this is a buying opportunity. the icloud was never breached in this celebrity scandal. is apple -- if apple accounts

are broken into, is the responsibility on apple? cant is a problem apple help solve with the new security measures we think they are putting in place. better trust his own -- trust zone security. >> what does that mean? have aou wanted to fingerprint scan to be an extra level of security for what you are doing the cloud, that is an option that is going to be available to you. with the focus on security, with apple and its development system come a able to do it in a stronger fashion than anybody else, that is going to drive iphone sales and reinvigorate the category. >> what will we be hearing at the apple event about security? >> you will hear more about how the touch id is going to be implemented. apple bought a company that makes fingerprinting technology and they have been including that in the iphone 5s. you will see more of that.

as a something they see differentiator between some of the other products on the market. obviously when you have some of these things, like with icloud, it raises concerns end of somebody's going to be sharing health information, that is another thing, financial information. it is something in the back of their mind, if they can protect my photos, why should i give them this information? for more andsking more sensitive information, or will be. payments, they have had a credit card information for a long time. can we trust them? >> i would say they have had this information without material breach and this icloud intrusion is a minor wrinkle in an otherwise stellar track record. what i think will happen is rather than push people away from the new technology, it will bring them toward it. so that people have the best, most secure, newest systems to protect the sensitive

information. especially now as it is financially, american express, mastercard, and visa are behind the new offerings. >> why are the shares feeling pressure today? >> a little bit of profit taking. a little bit of worry. and that has been a tremendous buying opportunity. and then to give samsung it's due. it has had a nice product refresh today, the note 4. so maybe today is more samsung's moment in the sun. theamsung has dominated tablet market. there has not been competition from apple in that market. adam, do you think apple can shake things up? 5.5f they come out with a inch screen, a lot of people are going to buy it. they are popular in asia. that is where samsung has been strong with these note devices. you saw them come out today with

some new designs. a lot of the technical -- technology companies are going to try to get ahead of apple and we will see what happens going into the holiday. i expect these devices will be popular. downblet sales have slowed . what can we expect from tablets? >> apple will keep pushing on tablets, and it has its enterprise thrust. the "thablet" market is a hybrid people who won the functionality of both in one device. with apple entering this category with new functionality, stronger processing, better nfc communication, all of these bells and whistles is going to be a big upgrade cycle for them. >> how optimistic are you about a smart watch? >> we think it is coming.

i don't know about the timing. oledll be used an display. it ties in really wonderful in a moment payments world with nfc, and we have indications all of these technologies will be in the new iwatch and because they are there, we think it will be successful. has lot of potential news been trickling out about the apple event, what is going to happen. it seems like more than usual. any surprises we should be looking out for? >> if i knew, it would not be much of a surprise. a lot of stuff has been trickling out about what these devices are going to be. nobody knows what the watches are going to look like. that is going to be the big reveal. they have done a good job of keeping the lid on its supply chain. that is part of the reason why there is going to be a lag. there are reports that won't

come out until next year. part of that so people would not see it. a little bit of a christmas morning thing they are going for when the device will come out. >> christmas morning is so fun. >> this year especially so. it will be more than just the iwatch. apple has some surprises in store. >> like what? >> it is not going to stop in terms of just a simple wearable. apple, home automation, car play, all of these things tying together. andll right, alex gauna adam satariano, you will be at the apple event and we will be there. very much looking forward to christmas morning. are you ready for some high-tech football? the 49ers are moving to silicon valley and we have an inside look at their new stadium. that is next. ♪

welcome back to "bloomberg west." i am emily chang. the national football league has built a $27 billion television the drives its revenue. what role will technology play in that expansion? show, weest of the will explore that question in our special, the nfl's media empire. we have a sneak peek at the stadium. home, levi it cost over billion dollars to build. located in silicon valley and showcases innovation in ways no other pro sports stadium has done before. but the stadium has had his share of problems.

the first event's of thousands of fans in traffic and twice in the last week, the turf had to be ripped out and replace. i got an inside look at the stadium. check it out. fans. 170,00 suites. one point $3 billion. >> we are talking about a world class stadium. are kicking off the season in a brand-new stadium. >> the fans are going to love it. >> intel and sap have signed on to be ad partners and yahoo! with sponsoring the fantasy football lounge. >> we have more tech partners because of everything have the vision we are trying to build. we wanted this place to be the manifestation of silicon valley. flatscreen tvs are

mounted and fans can look to the end zone. >> this is the largest outdoor hd video board. it is 200 feet long. most stadiums can't compete with the high definition experience fans get watching foot wall at home. the new stadium is in santa clara, 45 miles south of san francisco in the heart of silicon valley. at means it has to woo the smartphone said. maybe in someor cases make a phone call because the lines are tied up or the bandwidth is not there. >> you will be able to check twitter, go to instagram, and most importantly send texts. engineersers have hired from facebook and google. those engineers have built a special game day cap featuring instant replay. it is an experience where even

concessions are ordered from the phone. the stadium, you can order a beer or a hotdog. whether you are front row were in the upper deck. >> wi-fi access points are within 10 feet of every seat in more than 200 phone charging stations have been installed. bandwidth, 40 gigabytes, four times with the nfl mandates. what about traffic issues and glitches? >> there is going to be a learning curve for everybody. he have tested a lot of sound. it is going to be loud coming back down onto the field. you won't know until you put 70,000 fans in here. >> nobody is more pumped than the players. >> i can't wait. i have dreams about the stadium. vernon davis.ry the nfl launched an apple tv channel, but how far away are we

from watching live games online? that is next on "bloomberg west ." ♪

watching "bloomberg west" where we focus on the future of business. i am emily chang. the nfl starts its season tomorrow. the seahawks hosting the packers in the league has built an empire on the back of a $27 billion television deal that drives its revenue. how much more can the nfl grow and rock 'n roll the adoption of tech play in the expansion -- and what role will tech play in the adoption of that? .ory johnson is in new york andy, welcome back.

the nfl is unveiling nfl now whereby mobile highlights will be available, but not yet full games. how far away are we from the nfl making full games available online when we want to watch it? >> the over the air tv networks have built that golden egg because it reflects how our society consumes information and sports. i'm waiting for nfl now. nano second immediacy. virtual season tickets. we are a few years away from that, but the league is trying to generate every dollar they can. high-tech is something that is a bit of a challenge. 27 billion dollars is huge and the nfl commence a real-life human experience. people will sit on the couch and watch games live. i wonder how much does the amount of money they get from

television actually hold them back from embracing of the kinds of technology? >> clearly it does. we are at the juxtaposition, people are looking down, not up. we more they look down, are really losing the connectivity to the game itself? it is a great game and that is why the nfl has been able to grow their revenue streams as much as they have. diverse mediaore forms, it seems the benefit of sports, not just the nfl, is the immediacy of the audience it brings. it does not get man in a demographic, they have to watch the murder shows because they can't time shifted. -- timeshift it. sponsors look at the it isi's, isn't it ironic

a retail company. and you give me an app for traffic, bathrooms, it and the hottest brought worst in the stadium? stadium?orst in the towe know the nfl has been silicon valley, visiting companies like google. what are they talking about? >> they are talking about the color of blood that flows through sports veins, which we have talked about before. it is green. so they are trying to figure out, how do we open up new revenue streams without creating a cannibalization of where the $27 billion is coming from? that is going to be the challenge. the other challenge, which is underscored here is the way other links are growing. the nba has grown internationally. soccer is already there. the nfl has problems in terms of international growth.

>> will we see nfl games on youtube? >> the likelihood is we are going to see nfl games in every way, shape or form we can get it. you're going to have it on your glasses, when you are dreaming. leader, it isthe the leader in revenue, is it the leader in technology? >> every other league would argue that. say we are the leader in technology. the other key, technology has not really figured out sports yet. we have not seen the true power of technology and sports coming together. a lot of this is more pr than it actually is new revenue, new monetization and this is an exciting time. we will see more of it. tohow motivated is the nfl mess with the formula that has gotten them so much green?

how motivated are they to try new technology? wayhey are motivated by the their players get paid, the acquisition of teams, the value of teams moving from millions to hundreds of millions. so they are motivated by the green that flows through the veins of their business programs and they're going to look at every way, shape, or form to generate new revenue. >> i'm struck by how willing the league is to change their rules and make changes in the game itself in ways that baseball would never mention, like the designated hitter rule. you, int suggest to your experience, the owners and managers embrace new things like new technologies differently? >> if you look at the ownership coming into sports, steve ballmer, all of the other sports, these fortunes have been built on tech. you are going to see tech become

a major factor. a cautionary tale here is the game itself. many of these games have brought generations together. if you screw too much with the equation, you can really blow it. we talked about the empire of the nfl, empires have fallen. i'm not suggesting the nfl is anywhere close, but you have to be very careful with how -- without screwing up the game. >> andy dolich, always great to have you here on our show. thanks so much. coming up on our special look at is nfl's media empire, there a new player on the sidelines this year, microsoft. how the software giant is hoping to play a major role in the game. ♪

>> there is a look at some of the stories making headlines right now. i am emily chang. taking a dive into the nfl in a special we are calling "the nfl's media empire ." microsoft is bringing the nfl to your living room with its cap for the xbox one -- app for the xbox one. withs outfitted coaches surface tablets as part of a multiyear technology agreement. for more on the partnership, i'm joined by cory johnson in new burns strum, the

director of the microsoft surface. james, welcome. you got off to a rocky start on the sidelines. what happened and what has been changed? >> thank you so much for having me. cory, nice talking to you again. with the microsoft sideline viewing system, the new rule allows the surface on the sidelines is changing football and really in a way we have never seen. coaches and players are using the devices and they are making decisions, they are bring -- being more productive. it is part of this new partnership we have with the league. we are just getting started, to your point. >> james, talk to me about pete carroll and his reaction when you put it in his hands. >> because of competition

reasons, i would not talk about individual coaches. i have spoken to a number of coaches. this is a technology we worked with the nfl, video directors of all of the teams. it points back to that unique perspective of how we have been doing a lot of things. it is the software, the networking, the support and implementation. the coaches are really enjoying it. they think it is fantastic. >> what can you see on the tablet? changed from the initial day, there are some privacy rules. what can you see? >> yeah, you touched on privacy. that is something we take very seriously. i'm not going to speak for the nfl, then obviously is a concern for everyone. with this system, what you are looking at, we have not changed

the content necessarily. the rules allow a certain number of images to be printed. what we have done is mimic what is happening. we take a photo, the photo was four seconds before and four seconds after and is sent to a printer, they're trying to run around. instead, now when they hit the button to take the photo, then images showing up on the surface. there is some inherent capabilities with the surface that allows for pinch and zoom, and ations, favorites, categorization of showing results of each series and things like that, you could not do with paper and binder. ofif you're in the sidelines an nfl game or college game, it is amazing how ancient the technology is right now. rules. that is about the team wastold me one

watching the tv broadcast and saw the opposing coaches had laptops in their booth and actually got been censored by the division office. do you encounter that in the nfl? what had to change? >> specifically, and i'm not the expert, i won't speak for the nfl, but the rule had to change to allow the surface tablet on the sideline. that was a process we went through working with the league to ensure that was possible. this, the coolest thing you have seen happen on the field these tablets have made possible? hearing a story from one of the coaches where he talked about everything they do, everything they do is measured in seconds, from a play clock, tv timeout. he has the ability, as a player

is coming off kickoff return, the player may have to go back onto the field and be on offense. within moments, the player can show him what is going to happen. let's say the offense goes three and out. he is not going to have an opportunity for that person to have a conversation with his coach without getting back out for coverage. they might have missed some innings in the special teams environment that now they are able to address. one you're talking about 32nd printout and a rush around for a it does make ar, difference. the productivity is amazing. >> james bernstrom, thank you so much. i want to get back to new york and mark crumpton who is with cory. i know you are a steelers fan. where do you like to watch her football? do you want to see it online? >> i would rather watch it on

tv. there is a lot less things that can go wrong. i want my television, i want to watch it with a can of an adult beverage and i want to watch my steelers. i did not say champagne. i to announce as much as possible in the world and they put the game on tivo so i can fast-forward through the ads. you have to make sure nobody ruins the score. >> you know that is not going to happen. part of the idea is to watch the commercials. i like the commercials. you don't? >> no. >> that is why he doesn't respond to my e-mails for hours at a time. >> exactly. i'm hiding out. >> if the turf holds up. >> we can only hope. >> we will be watching to see how quickly the nfl embraces technology.

what do you have to tell us about "bottom line"? is going to join us. he will sit down for a one-on-one conversation with stephanie ruhle. a lot to talk about. we heard today that the zelle is going to be in that stable for under armour and also the fallout afterward we received a kevin durant of the oklahoma city thunder is not going to be with under armour. he is going to the with nike. that is coming up at the top of the hour. >> mark crumpton, thanks so much. more of our special, the answer all'sme of the all -- footb big questions. to quarterurning sized sensors to track its biggest stars. next. ♪

>> welcome back to "bloomberg west." i am emily chang. the nfl season starts tomorrow and today we are taking a look at the league's dominance in a special we are calling "the nfl's media empire." the stars to keep healthy. how healthy is peyton manning's back? the nfl is betting that technology can help answer some of those questions. the league partnered with the zebra technologies to install quarter sized sensors under players' shoulder pads. for more on how the technology works and how it will be used, i am joined by the general manager largend our editor at cory johnson. how exactly does it work? how big are the sensors and what exactly can they tell us? >> we put quarter sized sensors

in shoulder pads, about the size of the end of your thumb. one on each shoulder. can tell you everything about their speed and movement, 25 times a second. so very quickly. how can fans benefited from this and how do coaches and players benefit from this? how do they use the information? >> in a couple of ways. for fans, one of those questions we like to ask all the time, why isn't that guy open? why can't he see the open receiver? we will now be able to see that through speed trails behind players on broadcast. >> it is amazing, they sort of illustrate the play by moving the player. are we going to see very different graphics to create

those graphics and will they be universal? we have worked on the graphics. this is one of those things that is new. when you track that movement, a bunch of new information becomes available. your example, the offensive line, what grouping of five people can make that push better than anyone else in the league? that is an interesting stat, and a new graphic. with were talking microsoft about their partnership with the nfl. there is a marketing aspect and functionality, but i would imagine you will have data coaches have never been able to see before. >> we do. and we also work with several teams in practice. for the first time ever we will be able to see microscopically how peyton manning haze in the game and in practice, which will be fun for the coaches and it will help ultimately extend the careers of athletes. we can help them repair and

recover after a game faster, if we know their level of exertion. >> any potential integration with fantasy football sports? sounds like it would be a good business play. a fantasy football player myself. i would love to see that. the nfl brings the best game to the world and ultimately this is all about the fans. so i think in the future you will see all kinds of things. >> what about colleges? i watch a lot of these things go from the nfl to division i schools. >> in this case we go back to division i. it will be interesting to see michael crabtree and his career, now you're looking for the next michael crabtree. you will be able to see that in di sports. interesting stuff. i wonder also, are there other

uses of this technology? how does the signal work? what is the receptor like? >> it works on what we call altra wideband, which is a different frequency than wi-fi, but the same idea. so the information travels through the air, very quickly, and from when a movement happens on the field to when you can see it on broadcast is about two seconds, maximum. so very quickly. in the play, we could put a speech trail behind the player and tell you how fast he is going. or the closing distance of a defender. , thanks so much. we will be watching for your sensors and their information on the field. it is time now for the "bwest byte" where we focus on one number that tells a lot. >> we were talking about some -- about samsung, 43%

is their command of the total profits in the mobilephone business. was just 35%ile, of revenue, 61 percent of the industry's profits. apple is making more money. samsung,interesting, since 2010, their market share in phones has tripled, excuse me, quadrupled. apple has not budged. >> interesting they have taken over for a lot of people. apple argues they have done that was stolen patents. it is a powerful company. going to be taking a deep dive on samsung versus apple versus everyone else in a big special tomorrow, so tune in for that. thank you for watching this edition of "bloomberg west." on of the latest headlines

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>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of business and economics with a mainstreet perspective. we begin with the release of the beige book, the anecdotal survey based on reports from the 12 banks of the u.s. federal reserve system. peter cook joins me with the details. >> good afternoon. the latest economic snapshot for the fed's 12 districts paints a pretty steady picture of the economy, continuing to grow but not necessarily