>> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation and the future of business technology. i'm emily chang. the new iphone does not come out until friday, but they are flying off the shelves. they received 4 million orders in the first 24 hours. a new record. this leads to a strong demand for other new apple products like apple pay and apple watch. one of the most prominent venture capitalists in silicon valley. i sit down with peter thiel to

talk about everything from paypal, which he calls a failure, to the coin and what it takes to become a special entrepreneur. and salesforce is one of the tech companies leading the way when it comes to philanthropy. i talked to ceo marc benioff the latest multimillion dollar donation to san francisco schools. now to our lead -- a record-breaking start for iphones shipping on friday. priya rhodes -- pre-orders -- topped 4 million in the first day. some customers will have to wait until october to get their new phones. with the iphone accounting for half of apple's lumen -- revenue last year, is the company

sitting on another monster? the author of a blog referred to as the most accurate apple analyst on wall street -- i guessed for impression, how did this lodge compared to previous launches. >> it looks really good off the bat. the thing is, you have to measure against the firsts of growth we have seen in the past. the question is historically, it doubles every time we have a new release of the iphone. this year we are seeing that major release. variant. an s it is a new number. will we see a doubling of the figures from the iphone 5? that would be the question. the first data point, we saw a doubling of the pre-order figures. for the launch weekend, which is the next weekend, we would have

over, the iphone 5 shift cumulatively for it to double, it would have to ship around 10 million units, or i should say sell 10 minute unit -- 10 million units. the question is, will they be able to do that? will we see 10 or more? it is possible. in fact, if we think on a daily basis, we just saw 4 million units in 24 hours pre-order. over theere sustained weekend, we would see 13 million. in previous periods we have seen a roughly 121 relationship between the number of -- one to one relationship between the number of pre-orders and the weekend of the launch. >> does apple intentionally keep to boost demand?

they have them plenty of these launches before, or is it a supply problem? >> i believe it is a supply problem. make aery difficult to lot of things very quickly, as you can imagine. the constraints we hear about all the time in terms of -- in fact,hortages those rumors come frequently, every year there is something holding up the production line. year the problem was also that mechanically, the chassis for the iphone was very difficult to manufacture. , whichd a lot of milling required a lot of machinery running in parallel. this year, the process is a little bit easier to execute, so we might be able to get more shipments volumes. no credence to the idea they are holding back. i think they're trying to serve as many people as possible.

>> what are your reservations when it comes to the 6 and 6 p lus. we still do not know how it will perform when consumers get it in their hands? >> i got a chance to look at one at the launch event. they look very, very nice when you hold them. up to theery standards of apple in terms of tactile feel, overall shape and aesthetic qualities. as far as performance and battery life, we do not know. they cited that they have across-the-board improvements in battery life. from apple's point of view, i think performance will be out there. the memory on two of the units, exceptionally high memory numbers. i think we will see a resection, i think, as in previous years, we will probably see the product rated number one in terms of customer satisfaction.

>> when do think we will be able to walk into an apple store and get whatever phone we want in whatever color we want? >> i think that will not happen until december. i hope so. obviously that is the peak of the gift using -- giftgiving season and going into the chinese new year, early next year, we will want that supply available though the company can maximize value. i cannot guarantee because there are so many markets it launches into nowadays, trying to get into over 100 countries, that you have all of the variants available at all of the points of sale. that is a challenge. hopefully by december they will really be able to meet demand or supply and demand might match. speaking of upgrade cycles. the iphone is on a two-year big upgrade cycle. what about the apple watch?

what you see in terms of how the product will roll out? >> apple watch is interesting because it is a new category. usually with category launches we have had a delay between the announcement and the shipping date. this is been one of the puzzles this year. why is it so long? it probably is going to be five to six months. they want to have developers to be ready with apps when the shipment comes. another might be that they felt leaks would occur during the production ramp time, because most of the leaks come from the supply chain and is that has broader, you tend to get more leaks and you have lost the element of surprise. what is interesting from a value point of view is the apple watch is priced at at least $350. we are look in that probably at that we're looking probably being much more high end with solid gold frames.

those, that will be very difficult to pin down. what is also interesting is how long these phones will be in people willg before upgrade? we are used to a two-year cycle for phones, three, four year upgrade cycles for computers or macintosh. we do not quite know what watches or smart watches will be replaced. know what is the replacement cycle. >> especially if you get that 18 karat gold one. thank you, as always, for joining us here on "bloomberg west." product linesw from apple? maybe an apple tv? and how secure is apple pay? ceo tim cook answer some of those very questions coming up. here, too, --

>> i'm emily chang. this is "bloomberg west." apple's ceo tim cook says the new payment system apple pay will forever change the way we buy. but with the news that dozens of ,ude celebrity photos hacked questions of how secure is apple pay? paypal challenges apple's security in a full-page ad saying that users want their money is safer than there's selfies. cofounderf paypal, peter thiel is out with a new book called "zero to one." in an upcoming episode of studio

talk to himown to about why he thinks a pile -- paypal was ultimately a failure to why bitcoin will not survive either. not one of those four. i think that there is something that is quite extreme about the personality is that build startup questions. >> so building a bomb is a good thing. >> it is not a good thing. having some extreme personalities, i think, is a good thing. >> as successful as paypal was, membersssful as so many of the paypal mafia have been, you yourself think that paypal was a failure. why? >> it was a failure in that we did not achieve our vision of a completely new currency system for the world. >> what about bitcoin? doesn't that get closer to what you imagine? >> i am probably psychologically

biased against it. if we could not succeed at a bell, i am probably tempted to think of reasons no one can succeed. -- if we could not succeed at paypal. i think it is probably too cumbersome. >> should paypal be spun off? >> are our synergies. it may be something ebay should consider in the future, but i think ebay was right to resist carl icahn. >> if it was spun off, who should be ceo? >> it is critical to have someone with the cents, not just someone running an operating business. >> one of the paypal mafia? >> i do not want to name any names, but obviously someone there would be good. >> my interview with paypal cofounder peter thiel. there will be a full airing of my interview on studio 1.0 coming up in a few weeks. turning now to alibaba. couldinese commerce giant

potentially have the biggest ipo in history. is this a good thing? covers ipo's per alert. it is good for some, not for others, right? >> the more you price your ipo, the more you can marginalize investors and set of valuation and a good deal based on where they think the stock could go in a year or two.. of course that is a risk. would price at $80 a share to be in line with their chinese internet counterpart. so, they still have a lot of room to run. they are keeping that mindful, also making sure that they encourage those investors to buy about 20 billion worth of stock. >> what parallels do you see with facebook? don't they want to avoid the

facebook problem where the ipo may have been priced too hi? facebook did not recover for quite some time. >> right. they raise the range they were going to price the hair once and at the high end of that range. we do not know where alibaba will price its ipo yet, but it is starting to look similar. relative to peers, alibaba is still seen as pretty conservative, still seen as pretty cheap. thursday, we will find out where they do price those shares before the ipo. a promised investors he would not seek too hi a valuation. as a valuation. as it goes up, will investors defect? >> i think so. i think this is seen as a really cheap play relative to the growth story they're talking about, the growth story being

the huge market in china and the increasing internet users in china. relative to that, they see it as cheap. as the price is getting higher and higher and higher you risk a lot of the investor community defecting aced on the value of the shares. >> now, the roadshow is still going on. why bother? why don't they just close the -- close the doors, close the book? >> the radically, they could. they could say we are pricing this thing tomorrow, we're going to clean our hands and be done with that. you risk making investors very unhappy if they planned to see jack ma, who is seen as a superstar in asia. they are going to hong kong, singapore, london, the u.s. on thursday. none of those investors would be very happy. the last thing you want to do the beginning of your life as a public company is to separate relationship with long-term

investors. of course, they will be up early tomorrow, but they will continue to have orders after that. >> what is your biggest take away from this roadshow? biggest surprise? what we should watch for? >> what we should watch for? >> what is interesting is what we keep hearing about, the growth story in china. we cannot miss this. it is so big. we have been hearing this for months. the growth. the business model. the financials looked very strong. and then there is the side that talks about the significant risks related to their corporate governance sculpture, their variable interest structure. there is a bifurcation of opinion on this company, and it is interesting to see which pull and pull will ultimately win out on listing day. >> all right, bloomberg ipo reporter leslie picker. we will be watching year.

talking aboutack, the stepspy and salesforce.com is taking to fight intimate equality in san francisco. and how often does tim cook think about steve jobs? his answer, next. ♪

>> welcome back to "bloomberg west." i'm emily chang. techforce is leaving the

community in giving back. they donated $5 million to the san francisco school district g whichmillion to code.or brings programming classes into the school system. i talked to marc benioff about the responsibility of the tech community to give back. take a listen to what he had to say. >> companies are really successful here. complete not equanimity. not everyone is participating in the success. that is why companies have to give back. they have to provide key services at the social framework, at the very level them,our communities need and health care, in education. this is where we can do a lot and salesforce is very committed to doing that, but also even evangelizing others to do that as well. >> i oust him about the crisis over commuter buses and whether google, facebook, yahoo!, and others should do more to improve

the situation. >> i believe these buses have to be regulated. if companies are going to bring their bosses through -- busses through our city, they should be paying a significant tax. >> more than one dollar a day? >> more than one dollar way. it is significant wear and tear on our infrastructure and our citizens. companies that want to have a bus here better pay to have a bus here. he will be at the game force event including speakers like hillary clinton and mark andreessen. i asked him what to look forward to. >> over 100,000 people will be here. 5000 people -- 500,000 people will watch it online. there'll be a lot of the prizes. agenda.weeted a secret

going to be for unbelievable days. anmarc benioff referring to analytics product we expect them to unveil. meantime, he is stepping down from the board of cisco in november. he was on the board for just teed up years. time for appleng -- from the new iphones to apple pay, the apple watch, and beyond. ceo tim cook gives us a glimpse into its future, next. ♪

>> it is 26 minutes after the hour which means bloomberg television is on the markets. i am olivia sterns. let's get you caught up. the dow in the green. the s&p in the red territory. extending the retreat we saw last week. the nasdaq also selling off, down about 1% right now. in terms of individual movers, we're also keeping an eye on care acts. they are cutting their full-year forecast. they are citing weakness in the crane market. they really live -- they relied on that is as purported as

revenue last year. and bank of america -- up just 1% at the moment. will fill ahe similar role at bank of america and bolster asia and business. more "bloomberg west" after the break. ♪

>> you are watching "bloomberg ont," what we focus innovation in technology. i'm emily chang. apple received more than $4 million in the first day for the new iphones. tim cook was on "charlie rose" to speak about the new product being unveiled. >> these are the best iphones we have ever done. i think you will agree -- >> this is my iphone, and look at the size of it. this is the iphone 6. >> it is the best phone we have ever done, the thinnest phone we

have ever done. the screen is just to die for. it is super fast, lightning fast. it has a whole new realm of wireless technology. streaming fast on the wireless networks. it is really unbelievable and it feels unbelievable in your hand. hold it. it is really unbelievable be design. and his team did such an incredible job here. it is really seamless. like a singular form. >> yes. next -- thishat is represents a continuation of the iphone. >> a leapfrog, i would say, but yes, it is the iphone 6. it is not the first iphone. but it is the biggest advancement ever in iphone history. so, we think the upgrade cycle here and the number of people

who will switch from other smart enormous. will be >> were you challenged by what samsung does and what it has in the development of this size personal smartphone? couldestly, charlie, we have done a larger iphone years ago. it has never been about just making a larger phone. it has been about making a better phone in every single way. things we have shipped when they're ready. we think the display technology here, the battery technology -- everything else and the software -- you can on here, you can still use this phone one-handed, because you can tap it twice and the screen will come down. so, the ingenuity here and the fact that we have integrated software, hardware, and services, which i think only , now can do -- this phone

is the time for it. newpple pay, the company's team at system, will roll out in october and work with the new iphones. is it secure? take a listen as tim cook talks about the security features of apple pay. >> our system is much more systemshen credit card with which people pay. which is what people like. they like the card. we do not let them know what you are buying. we do not want to collect all this stuff. i do not want to know where you are spending your nights. we firewall all this stuff. we do not keep it. it is not on our servers. so, we kept what is great and fixed what wasn't. did not see at apple's event?

a new apple tv product. when will we see that? here is cook talking about the possibility. >> tv is one we continue to have great interest in. i choose my words carefully there, but you know tv is one of if we are really honest, it is stuck back in the 1970's. think about how much your life has changed and all the things around you that have changed, and yet tv, when you go in your living room or wherever it may be, it almost feels like you are rewinding the clock in the time capsule and you are going backwards. the interface is terrible. it is awful. >> the biggest acquisitions since tim cook took over at beatsis the purchase of electronics. tim cook explains why he chose

to buy the company. re are geniuses. they had teams underneath them i really liked. they has deep knowledge of music industry. dre knows artists. artist.n they started a subscription service. todawned on me when i listen theirs for a while, i feel completely different. the reason is, they recognize human duration was important in the subscription service, that the sequencing of songs you listen to affects how you feel. it is hard to describe, but you know it when you feel it. and so, that night, i could not sleep that night. i thought, we need to do this. when you think of apple,

there is one man synonymous with the company and that is steve jobs. here is cook talking about how ats has a major presence apple, nearly three years after his passing. dna. is deep and apple's his spirit will always be the foundation of the company. spirit is deep in apple's dna. i think of him literally every day. his office is how it was. >> on the fourth floor? >> on the fourth floor. his name is still on the door. >> you can catch charlie rose's conversation with tim cook tonight at 8 p.m. eastern. meanwhile, apple upgraded the website to make it possible to delete the u2 album they gave away for free last week. reshapingtors

industries -- you can watch streaming on your tablet, earphones and bloomberg.com.

>> i'm emily chang. on this is "bloomberg west" bloomberg television, streaming on your phone, your tablet, bloomberg.com. "vanity fair" just published its innovators top disrupting the industry. tech innovators once again topped the list including elon musk, tim cook, and for the first time, alibaba ceo jack ma. fair"g us, "vanity max chafkin. what was the biggest mover?

>> elon musk for us was the big mover. there have been four companies in silicon valley that really mattered, apple, facebook, amazon, and google. we have found that this wildly ambitious basically start up guy is rising above those companies in the cultural consciousness. he is like the coolest guy in silicon valley right now. he is the guy that when you ask someone like larry page who does he most admire, that is who he says. >> the ceo of wilbur, probably r jumped from 43 to number nine, even though they are facing regulatory challenges around the world. you seem pretty optimistic about him. >> who would have predicted a taxicab company would be this important? but it seems to be happening. 18 $.2investment round, billion, i think. 2 billion dollars.

i think that they are impressed by the robust response to the controversy. he is clearly a fighter. i think it has showed. i think it is probably help the helped the company. >> when you guys were arguing about who should go where or why -- >> there are a couple of debates. i guess one that has been hanging around for a couple years is apple. in the wake of steve jobs' passing, it has been hard to know where they are. well they did not move up this year, that is largely because google and elon musk looked so hard. >>jack ma, the new prince -- new prince. but hardly new. >> uc alibaba making a big impact with a lot of companies. in a lothem investing

of companies, yahoo!'s balance sheet really dependent on what happens with ali baba. bigyou have guys like silicon valley investors looking to profit handsomely. i think this will have reverberations across the tech landscape. fewack dorsey dropped a spots, number eight to number 13. >> -- number 14. >> yeah, it has been a tough year for jack dorsey. on one hand, square, which was a huge success story, it is running into some problems. it is not clear they can get out of this low-margin business of swiping credit cards. twitter on the other hand has had problems with user growth. although it looks like they are righting the ship again, it does not look as robust as something like facebook, which seems to be cylinders.ll

>> you also put jay-z and beyoncé near the top of the list. can you tell me if they are getting divorced or pregnant? that is what i want to know. >> i can't help you with that. we did separate the entries. what is interesting about beyoncé, she breaks the rules of media. the visual of him did everything that people say you cannot do. there was not marketing, distribution, and yet it exploded. that is a credit to out powerful she is, how loved she is, and how jay-z and beyoncé can both marshall fans. >> i will have to check out tmz for the rest of the story. thanks, max chafkin. you know him best as mr. sulu but did yourek," also know that actor george decay has more than 7 million fans on facebook? we will talk about his success

and the new documentary when "bloomberg west" returns.

>> welcome back to "bloomberg west." i'm emily chang. stories making headlines this hour. let's get to our "bottom line" anchor mark crumpton in new york. >> a big cameron says it would be a painful divorce if scotland were to vote for independence. speaking in scotland for the last time before the september 18 vote, prime minister cameron pledged additional powers for scotland if it votes to remain in the u.k. for potentialst buyers after closing down this casinos. revel

fans of the los angeles dodgers will be able to see the kings' final six baseball games for the first time this season. decided to cable has end a season-long blackout as the dodgers fight for a playoffs sport -- spot. >> what you have coming up today? >> we will look at the gm recall according to the first series of claims for a victims compensation fund. the initial death toll from those faulty ignition switches could have been higher than ever thought. ken feinberg said down with our yang yang from washington. >> all right, mark crumpton, we will see you at the top of the hour. best known for his iconic role

as mr. sulu on "star trek" george takei is known for his social media presence and his work advocating for gay rights. "to be takei" gives a behind the scenes look at the actor from his childhood in a japanese internment cap to his work on the "star trek" series. with thewn to talk actor. we started by talking about his huge social media following. take a listen. >> the reason i started with social media is to bring attention to this musical we develop. first we had to raise the awareness of that dark chapter of american history, and then to let them know we have a musical of it, and then to develop that into of people enthusiastic potential ticket buyers. the best way to do that is through social media. >> you have a particular voice

-- firstly, this wonderful baritone voice in real life, but a particular voice in social media. it is both informative, sarcastic, smart. it is really right for the medium and i wonder how that has grown on you? >> by trial and error. the basic audience base when i started were sci-fi geeks and nerds. so, i had to grow that. i found that humor is a thing that got the most like sand shares, so i started and doesting on that, the audience grew larger, then i started injecting social justice for one -- internet >> it snuck up on you? >> no, it was all part of the strategy. no sneakiness here. it was all part of the strategy. >> have you go about selling that part of the story?

fans, whenhow many george runs into fans, which is everywhere, but one of the places is comic-con. who say, thank you for making my mornings better. people check facebook every day to see what he has said. i think people appreciate the smart humor and then they appreciate the social justice as well. it is things people can relate to, thoughtful, funny commentaries that are pretty genius generally. you have that wonderful line of how he put the social in social media instead of the me in medi a. >> i need to ask you about this "star trek" self. we do this technology show.

am running with a try quarter, a communications device. if someone gives me a phaser, i will have a completely rounded out. do you look at things in mobile technology and see these things from "star trek"? 23rdtar trek" was from the century. we are at the 21st century. we have far surpassed everything except the transporter and work technology. we have not surpassed that, but almost every other technology is way beyond what we had on "star trek." communicator.r it was amazing back in the 1960's. no cords. and we talked to people wherever we were. amazing. now we take pictures with it, we send texts with it, do research with it. pages forur facebook new updates from you. >> [laughter]

>> how do you feel you have been attached to technology? to be attached to something that is so futuristic, so technology driven, has that changed to win anyway? >> it certainly has, but if anything that should be attached to leonard nimoy or jimmy doo han. he was the engineer and spock was first officer. it should have been them. it happened to the helmsman of the starship enterprise and later the captain of the starship excelsior. >> it is interesting that "star multiethnic crew, like nothing we had ever seen before on television, and then you as a gay activist to get to the next level. >> that was gene roddenberry's vision of the future, where you see our diversity as a strength by working together in concert, each entry beating his or her unique talent or perspective or

unique vantage point. in fact is what is true. part of the united states' great strength is our diversity, and now we're recognizing there are aspects of diversity that you cannot see like sexual orientation, but now that society is changing, we're discovering people who make enormous contributions to our society have this kind of invisible aspect to diversity. >> all right, our editor-at-large cory johnson speaking with actor george takei krut the director of the documentary. ,ime now for the b-west byte one number that tells a lot. our special guest businessweek's brad stone, with the byte today.

what have you got? >> 152. untenable number of days that amazon and has shipped the book company have been fighting. what does that mean? a lot of authors are suffering. a group of authors including james patterson and stephen king took the fight to do bezos' boss undermining their ability to support their fans. >> very quickly, your book is published by hachette. do you worry about this? >> curiously it is not being harmed by amazon right now, but i do worry for the new authors whose books are not available for pre-order. amazon is making it more difficult for them to make a

living. thanks for watching this edition of the show. we will see you later. ♪

>> from bloomberg world headquarters in new york, this is "bottom line." today the number of people killed by gm technicians which is maybe much higher than initially estimated. how scotland's independent voters may affect the biggest industries. how now maybe the time to invest in vintage watches. to our viewers in the united states and those of you joining from around the world, w