cory: live from pier 3 in san francisco, welcome to "best of bloomberg west," where we focus on innovation, technology, and the future of business. i'm cory johnson. every weekend, we bring you the best of the west. the clock is ticking until april 24. that is the day that apple starts selling the apple watch.

apple reannounced the watch at the san francisco yerba buena center. tim cook: apple watches the most creative device we have ever created. it is not just with you. it is on you. since what you wear is an expression of who you are, we designed apple watch to appeal to a whole variety of people with different tastes and frank references. cory: the watch comes in aluminum, stainless steel, and gold. apple also unveiled a new macbook. even though it is the second time apple has unveiled its watch, it still got a lot of attention. gene munster: i think this will take a similar trajectory as

other apple products like the ipod or the iphone. with consumers actually running out and buying it, it will probably be a year or a year and a half but they have laid the foundation for that. reporter: do you think customers, consumers pay attention to what the apple watches for? gene munster: that really depends. it will spark understanding for why people will want to go out and buy the watch. they gave some great examples, but some might be a small case. for example, remotely open your garage door. extremely valuable for those type of people. as far as the mainstream apps, that is something that will take time. reporter: they showed an uber app, a fandango app, all these

apps that work on the phone. what does it bring you that the iphone doesn't? gene munster: if you think of a typical teenager gets about 6900 messages per month or using your phone for payments on your wrist, the same reason why the pocket watch was displaced by the wristwatch. it was the same features but the simplicity of it and the friction. i think that is one of the parts is underappreciated. even though it doesn't sound like a big deal to pull out your phone, we will enjoy it. reporter: i wonder what kind of social behaviors we will now start to see. people glancing at their watches all the time. it's not necessarily a less obvious behavior than pulling out your phone and checking your e-mail. gene munster: this is how we have progressed over the last decade.

i think we have broke through unacceptable behavior with that. this will be variations of that. reporter: let's talk about the pricing. the $10,000 starting price for the gold edition has gotten most of the attention. but $549 for the stainless steel apple watch. is that in the sweet spot for most customers watch.?gene munster: for the early adoption phase, i think that is a sweet spot. maybe $550 for the average selling price. for the first year or the first two years, that is the right price. surprisingly, the iphone is at the same price that it was when it launched in 2007. the reason why the iphone has had such access is that it had such great value. i think it comes back to this. the price is just fine if consumers feel like they are getting a lot of value. reporter: does the apple phone move the needle for capitalization? munster: it adds about 4% this year to next year.

it will be a small uptick in profitability. which is something investors closely watch. to put into perspective, where we get more exciting is where we get the on the first year and a half. this could break out and be a bigger category for apple. cory: the gold watch is apple's most expensive single product and apple's entry into the high-end market. so why go with gold? bob o'donnell: part of what apple is trying to do is make a statement. what they are doing with the watch is trying to answer the luxury goods market. there is a lot of emphasis on the design of the watch and functionality. it will be interesting to see which becomes more important. for a $349 product, it is about functionality. for a $10,000 and up watch, it's all about fashion. on the high-end, if i buy a $10,000 watch, what am i going

to do when they upgraded to version 2 next year? i am shocked apple didn't say, if you buy the watch addition, you will get free upgrades of electronics because that is a tiny part of the cost for the next five years. reporter: you are buying a status symbol for one year. bob o'donnell: exactly. reporter: what about the apps? the apple watch will open a hotel door. you can send your heartbeat to france. not a lot of surprising use cases for the watch. why should people buy and use the apple watch? bob o'donnell: ever thing saw today we have seen before and you can do on your smartphone. the real difference with the watch is the immediacy of the reaction. so the question is how e-mail he do you want to be able to react to certain bits of information? you want to do this as opposed

to pulling something out. the interesting thing is, as we get bigger and bigger phones they get more cumbersome. if you got a 6 plus, it is harder to pull out so that glanceability. i'm not sure it's compelling enough for a lot of people. reporter: was anything that surprised you today? bob o'donnell: only that the price was higher than expected. i think the whole room let out a collect the gassed. there was a huge sigh of relief in switzerland as soon as those numbers came out on the prices. reporter: the star of the show was not the apple watch but a new macbook. talk about the macbook and what apple is offering. bob o'donnell: that was some of the most interesting news of the day. it shows you there is still innovation in the pc world. that is a beautiful design and it's in gold. everybody wants gold, everything apple-related. not real gold in this case.

but it is a beautifully designed notebook. with the toughening of the market for ipad, people have not given up on notebooks. the pc is not dead. we clearly saw evidence of that. that macbook is a beautiful piece of hardware, innovative design. apple is showing where pcs need to go and i think it's great. i think people will really like that one. report: i'm surprised they started the show with the show with apple tv. it is part of hbo now. what are apple's continuing ambitions in the tv world? bob o'donnell they want to build a bigger presence. it's not the cost of the hardware. there was no apple tv as in an actual tv. instead, it is about enabling service and they want to get you hooked into services that you can then use across the different devices. the big screen, the pc-sized screen, the ipad screen, and finally the watch.

cory: we will be right back. ♪

cory: this is "the best of bloomberg west." when the apple watch comes out people will be able to use it to check their e-mails, check on their flights, open hotel rooms, but the biggest is perhaps in the world of business. i spoke with invoicetogo ceo and daniel debow. >> the big difference is

productivity and speed of access. it's not about more functionality. it's how quickly you can focus into functionality. i want to be able to look down and glance at it and approve. that is the key difference. cory: they are checking it that frequently and that crazily that they need a watch to point to? >> it is a fair bit of time. when they do not find what they're looking for, they get distracted. the watch keeps you really focused. it is a glance, a quick movement. that is a productivity movement for salespeople. for anyone on the go. cory: the demo of your service on the watch wonderfully explained what invoicetogo is. a contractor hits a button on his wrist, there is an

electrician in your house. the moment he leaves, it stops. it is an intriguing location device. >> the watch allows us to take it to the next level. on the phone, you have to remember to start it and stop it. for small businesses, cash flow is why they are using invoicetogo. but if you don't remember to start the clock, you are not going to get played. this allows you, as soon as you start on the job site, you star billing. that makes our customers more money because they get the invoices out, fully billing for all the time they spent on site. cory: do you imagine for the contractors and the likes using the watch, that lets them know that an electrician or a plumber is on the job, let's me know for a fact that they were there and gives a plumber a competitive advantage?

>> we know them more detail you get, the more confident you have that work was actually provided. cory: do you expect therefore the watch as a business device to be a marketing tool for the service provider? >> i don't know if it will be as much of a marketing tool as it will allow them to access more jobs because they are going to know that they can bill that job professionally. that is something that we see in the small business segment. people want to be able to act as professional as a very big business. by being able to have really good invoicing, really clear estimates, all of these things are enabled through the smart watch. >> we have been working on wearables for over a year. yesterday, we launched

salesforce for apple watch. we built an application, the analytics cloud, that people can glance at data and drill into a very simple, almost gamified way. it also allows people to use the apple salesforce cloud platform. cory: for that actually going to the apple os. >> they will still use the apple tools as well. but it is the biggest cloud app in the world. they get security and workflow all the things you need to work a business application really fast. and now they can extend to the watch really quickly. it was great for us. one of the things that was interestingly was less a technical challenge, but learning how to rebuild apps for the watch. it's not the same as taking the

phone and shrinking it down. a three thinking how people are going to use this. cory: i was surprised your company took your limited resources and focus development on this watch. it is surely good for marketing purposes. if the you on "bloomberg west." but why did you make that choice and not develop other platforms that are widely in use? >> because we always believe in the small business person wanting to making themselves more efficient with technology. small business people absolutely want to adopt these platforms, but you have to do it anyway that is extremely practical. in our case, it is to help them make more money. it was a no-brainer. cory: we will be right back. ♪

cory: i am cory johnson and this is "best of bloomberg west." apple will be able to take their data learn at and share it with researchers. will it really move the needle in health care? i spoke with dr. eric schadt. dr. schadt: sophisticated devices like the iphone, you can do more. they can connect to seamless devices. they will be able to have blu tooth enabled in healers. we will know how much they will

have been inhaling throughout the day. bluetooth uses barometers to track the robustness. it is all the other devices that the research kit will allow us to connect to to assess somebody's wellness. cory: what data do researchers not have now? the ubiquity of iphones in this country in particular seems like it could collect a lot. but what pieces of information are you really after? dr. schadt: something like the iphone and the research kit enables is broad canvassing of populations beyond what we can get in a local area in a given medical center. the day that our app was up in the apple i store, we had 25 people enrolled in our study. that would take a researcher one to three years to accomplish that same kind of enrollment using traditional means.

in addition, we typically collected data and research studies and snapshots and single digit -- single visits. we can collect that data longitudinally. we don't have to collect parts of information during an office visit. we can collect it throughout the course of somebody's life. cory: that is very interesting. i am interested in where a person is giving loads of genetic data that you don't have the consistent tracking of said people. are we entering a scenario where there is a lot more data available for things like research for diseases that we have been trying to fight for so long? dr. schadt: exactly. what we can do now with the smart app technology is we can

again, be tracking a myriad of different physiological parameters on somebody, blood pressure, heart rate, ekgs, the inhalers, barometer he, and so on. you are not collecting at one point in a time, but longitudinally. that will give us a wealth of physiological data. when combined, it will create the holistic picture on somebody's health and then help that target their disease, to classify their disease, and how to make them well. cory: dr. eric schadt at mount sinai. the apple watch as many health tracking features. heart monitor that can collect it on your wrist. while your health information can be useful to doctors, how can you be sure it doesn't fall into the wrong hands. i spoke with miller newton. miller newton: wearable devices make it possible to collect very personal information about us

daily. in securing that information is critical. cory: i use it to figure out when i am asleep and how well i am sleeping. i use it to monitor my steps. that is not especially secret information, like when i go to bed, i suppose. is it about the level of privacy or is there something we can glean from that? miller newton: it is more of a front end, a pretty low powered front end to your iphone or ipad. as applications become more prevalent and available in the next 12 to 18 months with biometrics and things like health kit and home kit, the device will be able to track anything connected to the internet.

the information becomes even more critical when it's shared with your physician or with the health care provider. or with your company. the only way to protect that information is to increase at -- encrypted at the information data level. the first benefit of the iwatch is the fact that most of us use a four-digit pin code to access our iphone. with the iwatch, you will be able to have multi-factor authentication. in order to access any of the information generated either on your phone or your ipad or your watch, the physical presence of the watch combined with a catchphrase will be required to either -- cory: you can add to that the thumbprint or the fingerprint and that you have a third level. miller newton: most of us use single-facet authentication

which is easily crackable. our company has a smart platform and we help companies around the world encrypt information through our smart encryption platform at the data level. so it is persistent encryption that follows information whether it is on a mobile phone or a wearable device or wherever it goes. in the cloud. cory: you've got to work with apple to make such things. miller newton: we absolutely do. cory: we have the keys of the kingdom, everything that the nsa is after, you are in there talking to them about security and the device. miller newton: their developer environment tools are prevalent. so we use their development environment to create our apps and they are tested on every

single device that apple produces. cory: they made a really big shift after the iphone 3 where they did not want to keep data that they could not keep it safe from government spies -- i'm making this up, sort of. after the risen program happened , apple changed the way they collected data. i'm not sure if i'm connecting to dots that should not be connected. miller newton: that is exactly right. not just apple, but google and yahoo! and microsoft. the encryption part of protecting information is relatively easy. it is in managing the keys, the encryption and decryption key is where the complexity is. if you encrypt the device and the user is really one who has that key, the information will be safe and the government can't ask apple or us or anyone for access for that information.

that is one of the biggest changes we see happening. cory: "best of bloomberg west" will be right back. ♪

cory: you're watching the best of "bloomberg west." googles venture arm is making noncorporate investment in a number of arenas. eating trying to extend human life. the searcher immortality is on the cover of bloomberg markets magazine this month. bill marist -- check this out. bill: i think outlandish as the

word. the headlines are little science fictiony. we are investing in real science. cory: the magazine is nonsense? bill: the magazine is not and that is not what we are talking about. we are talking about investing in companies helping people to live healthier, longer lives. cory: did you approach this, thinking new stuff as possible they all can fall under the theme and if i can learn that theme i can select the companies that will be successful. bill: we start with the team -- theme. life sciences, where we put 36% of our capital into. the goal of those companies is to help people not suffer from diseases and not die of congestive heart failure. the sorts of things that affect lifespan. cory: your approach is not just

biotech, describe flat iron. and why you have but $130 million into it. bill: it is our largest investment, founded by two ex googlers. what they are building is a cancer genomics ontology database where they are collecting information from a hospital system about cancer patients, patients treatments and outcomes. they use that to provide us to help better the outcomes for future patients. corey: sounds like 23 to me. you get a file of your spit and they give you feedback about who you are and where you came from. they use that to create this giant database of genetic markers. bill: it is no point since, both -- know coincidence. both companies that live at the

intersection of technology and large datasets. genomic data is a great example where we can bring a lot of value to help those companies. cory: when you look at the pickups 23 me has had -- it is pushing against, not just the limits of technology -- but of government and how government looks at it by. how do you help a companies get through those roadblocks? bill: all of our company's basic -- pface hiccups along the way. the innovations the companies are developing but up against a limit what policy was made to address. 23 me is trying to do something that has never been done provide genomic information to you, and laws written 10, 20 100 years ago never had that in mind. the companies are doing a great job trying to do -- try to work that out. cory: in your role, will you

take on the advocacy of these things? some of the reason the laws were written were reasonable, snake oil is just a metaphor, but once upon a time it was actually sold and the fda is saving us from selling snake oil and planting go gonads into the armpit. that is why we have an fda. do you feel like you have to educate the fda? bill: there is a critical role none of us want to live in a world -- a country without the fda. through cooperation with those policymakers, to help them understand what the company is trying to do and the company needs to understand why this regulation is in place and why bad things can happen without them and adapt them together. our advocacy is on both sides. cory: managing partner for google ventures. we will be back ?.

cory: this is the "best of bloomberg west." the workforce in many tech company is straight, white dudes. but now the aol and advertising bureau art teaming up to bring more diversity to digital to go to, media, and advertising. a new nonprofit called the i-80 education foundation designed to recruit and foster more diverse talent. aol ceo tim armstrong and randall rothenberg stop by as part of the national listening tour. take a listen. >> the technology, media, marketing industry require a better and higher performing workforce.

in order to get that continuously improving workforce, we have to be more open to the diverse constituencies that make up our marketplace. our audiences in the united states and abroad. you have to represent the people you work for. we don't. if we are going to have a better workforce we have to be open to , higher degrees of diversity, ethnic diversity, and also economic advantage and is -- disadvantage diversity. cory: you want to provide opportunities for people obviously hiring his heart, -- is hard you want to expand your talent pool, but there is the issue of how your business changes because you understand the people to whom you're try to advertise. >> the biggest thing for us is that it is how do you have your workforce represent consumers and customer bases. if you look across the tech

industry, most companies are not representing the consumers that they are touching or need to touch. as much as diversity is a real social, cultural challenge in our industry, it is probably one of the biggest business opportunities. one thing i would like to see at my own company is how do we make our products and services more attractive to more types of diverse audiences. cory: this notion of how hiring works, it is interesting how these issues come up in a way that the hiresrs are not always aware of. things like people being passed over just because their names look different -- the example when lakisha jackson applies for a job and emily smith. the number of callbacks for lakisha are half.

>> we have think -- been doing work with someone working here with us today, and she has some of the best research i have ever seen on unconscious bias. it is breathtaking, astonishing, you can even be depressed by it. you had mentioned one. changing the names on top of resumes so they are identifiably hispanic or african-american, or seemingly white. the difference in callbacks is 3-4 x. there is one i've never seen before, a kind of blows your mind. she had headlined it "crossing wild black -- while black."

drivers will stuff for white person in a crosswalk, i think it was three or four times more frequently, then they will stop for a black person in a crosswalk. it was over and over again. she had this wonderful piece of the presentation where she had a student with whom she was working who was natively fluent in spanish and english. his real name was ron baker. they set him on video job interviews under his real name ron baker, and under the name, i think, alejandro martinez. some videos were totally fluent unaccented english, and somewhere hispanic, the same on the spanish side. the difference in callbacks on video interviews was night and day.

corey: we knew there was a problem. when hiring people,. the one that got me was the discussion of the berkeley computer science class. when they change it to the joy and love of computing, more women apply. what do you do when you are hiring to get away from bias? >> what we have been working on is making sure the diverse talent is involved in the recruiting process. if you and i are trying to recruit diverse people, it is different than if they are sitting across the table from somebody who is diverse. in the research study even in a university campus, when a diverse peoplerson comes in, if they don't feel like they community is diverse they have higher

attrition rates. cory: that was tim armstrong and randall rothenberg. "best of bloomberg west." ?

cory: i am cory johnson, this is the "best of bloomberg west.' a ceo, known for a lot of things, surfing, but one of his lesser-known passion, emily chang cut up with would been at a fundraiser for a nonprofit called build. it promotes entrepreneurship in public schools. take a listen. >> and entrepreneur could be a business person, a musician on anybody who can have an idea and turn it into reality.

emily: how did you do that? >> i dedicated myself to it. when i was 22 years old, i promised myself that i would work my tail off until the age of 30 at a minimum to succeed as an entrepreneur. that was extremely important because i had a lot of failure along the way. emily: the first companies started failed. >> there was a company i didn't start that i feel that. emily: how do failures drive you today? >> at the time, they scared me. failure is not easy. it wasn't like i thought, oh cool, i failed. success has taught me that one of the most important things and entrepreneur can have is perseverance. a willingness to fail him the picker self up again and take another shot. emily: by way of disclosure, i am on the board of the.

what attracts you to this? >> i think that build works in making school relevant to kids and exciting. entrepreneurship, the lessons the tools that help kids learn how to start a business, tying all the other classes together in a meaningful way, in a way that is fine. and frankly, in a way that can get -- they can get paid for. talk about motivation. you can get in a -- an a, but you can make some money doing it. if you can engage in kent, you can keep a kid in school. emily: you recently donated half $1 million doesn't let there be make you the sixth biggest philanthropic person in the united states. how do you plan to spend that money? >> i know one of the reasons i've been successful is because

i have an incredible support network. my parents telling me i could do anything. they believed in me and they help me yet going with my business. we would like to return the favor and help others realize their full potential as well. being an entrepreneur speaks to me. the benefits the kids will get. my wife and i are excited to support the. emily: how do you encourage innovation risk-taking with bingo pro -- within gopro? you have a wildly successful product. how do you keep a differentiated from the competition? apple is always moving. how do you keep go pro -- the best of the bunch?

>> having failed to couple times, i recognize that your business can always go away. you can never get complacent. i have had it all taken away from me before. you have to wake up in the morning, a little bit scared that that might happen. emily: does apple scare you? >> no. competition is a good thing. they scare you a little bit. that is a good thing. it motivates you to stay running and running hard. that is something alive and well in our culture. it is also important to never let yourself stop being a start up. stop trying to reinvent yourself. emily: go pro has had a widely successful ipo. the stock has been a little bit volatile. and yet, people have been comparing the company to apple. how do you reconcile that?

>> you don't. we are fortunate that we have a long-term vision at go pro that makes sense when we sit down with investors and they understand our vision. it becomes a question of, are we the ones to execute and realize that vision? more often than not, people believe that we are not and the stock will go out. cory: that was it would been emily chang.

cory: this is "the best of bloomberg west." can radio thrive or was dreaming -- will streaming services mean the end? one of the men that could have a huge stay in this is howard stern. one of the best known and best paid radio host on the planet. he rocked the radio world and

2004 when he bolted for serious, but his contract is up at the end of the year. stern and the future of radio are featured in this week's bloomberg businessweek. we spoke about this with the story's author. felix gillette. felix: there are fair amount of subscribers out there, probably about one million that would be impacted if his contract is not renewed. having said that, he is in a much better position from a contaent perspective than in 2010 when his contract was up the last time. on the flipside, howard stern has more options. there is a price that the company could very well walk away from. corey: in terms of subscribers this business took off both in numbers of subscribers and

revenue. it took off when howard stern joined the business. he made this business of viable entity. felix: he did. a very significant number of subscribers, when they join, they went on to discover the other content that the company offered. right now, it is debatable whether those of drivers -- subscribers would leave. i do believe that there is a good chance frankly, that the company may not renew the contract. the company spends about 300 to -- $300 million per year on content and expensive. while that pales in comparison to netflix, it is still significant. corey: this raises a philosophical debate.

howard stern puts it well in your article. he says it is stupid, a waste of time, if you want to do radio, forget podcasts. podcasts are for losers. is going to a podcast, apple something he should take seriously? >> there are so being developed apple. they introduced their car play product last year. i can imagine google making a play for him with his new u2 since christian -- youtube subscription service. also, premium television like hbo. he could do a direct to consumer product over the internet. so many options for him. he said he will consider staying with serious xm -- sirius xm.

he has worked hard to be a part of their growth. his show, from some perspective, is doing very well in the sense that he is getting the kind of a list celebrities that he would have never gotten 5-10 years ago . he has madonna on his show today. he might want to stick around and enjoy what he has built. corey: car play is interesting but it is only in a handful of cars. estimates put it at 3 million cars only. maybe it is a loss leader for apple. does he have to go to a place where the company would make money? or is it enough that he could be a loss leader for the company, like pandora. felix: either way, it will be a risky play to bring upon.

whether he is a loss leader or not. i think you have to look at how the business has evolved over the last decades after the relationship started. sirius, from an economic perspective, they are in a better position. the automobile growth is back to almost all normal levels. when they first got howard, they were spending north of $200, today they have got it down to $30. you can look at a number of metrics and calculate if they were to save the amount of money they are paying howard, granted they will lose subscribers, but it is easier today to justify where that threshold would be for the company to walk away. cory: that was felix gillette.

that concludes this weekend's edition. marcellus -- watch us every weekday from 10 a.m. to 3 p.m. in the west. we will see later. ?

betty liu: it's the biggest restaurant chain in the world, feeding 69 million people a day. >> we are a lightning rod. because of our size. betty: the food is fast, but what mcdonald's serves up takes years to make. >> folks believe that food just shows up on their table. betty: we go inside the golden arches. to find out what is in the secret sauce. and, how a restaurant built on burgers and fries stays competitive in a world of changing appetites. >> two all-beef patties, lettuce, cheese, pickles onions, on a sesame bun. it is all real food. ♪