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 three announced the watch at the san francisco yerba buena center.

tim cook: apple watches the most personal 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. 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. 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. 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 want -- 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? 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. 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 collective gasp. 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 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.

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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 the bow. >> 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. 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. 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

electricity inure 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 tricking 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. it put 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 they want -- 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 liu 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 wanted 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. 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. 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. and collecting that information and securing it 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 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 low 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. 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 civil device that apple device -- 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. 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 are watching the "best of bloomberg west." google spends millions on projects with self driving cars and google glass and even spacex. google's venture arm is making noncorporate investments. even trying to extend human life. their search for mortality is on the cover of "bloomberg markets" magazine. bill marist has been instrumental in leading it into health care and life sciences. check this out. >> i think outlandish is the

right word. the headlines are a little like science fiction. we are investing in real science. the magazine is not nonsense. people are getting caught up in the headlines, about living forever, 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 life sciences, where we put 36% of our capital into.

the goal of those companies is to help people not suffer from diseases and die of congestive heart failure or cancer. cory: your approach is not just biotech, describe flat iron. bill: it is our largest investment, founded by two ex googlers. a cancer genomics ontology database where they are selecting 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. cory: sounds like 23andme. you get a file of your spit and they give you feedback about who you are and where you came from. the use that to create this giant database of genetic markers. bill: it is no point since, 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 23andme 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 ups, having to do with regulations. the innovations the companies are developing but up against a limit what policy was made to address. 23andme 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. companies are doing a great job trying 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 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 country without the fda. true cooperation with those policymakers, to help them understand what the company is trying to do and the company needs to understand why this race relations are 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. 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 to her. 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. we have to represent the people you work for. we don't. 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 advantage diversity. cory: you want to provide opportunities for people obviously hiring 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. i would love 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 hirers are not always aware of. these things like people being passed over because their name looks different -- the example given when lakisha jackson applies for jot and emily smith, the number of callbacks are half when the name is lakisha jackson. >> we have 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 -- it is astonishing, you can even be depressed it. you had mentioned one, changing the names on top of resumes so that they are identifiably hispanic or identifiably african-american or seemingly white. the difference in callbacks is three or four x. there is one i've never seen before, blows your mind, she had lighted "crossing while black," that drivers will stop for a white person in a crosswalk, i think it was three or four times

more frequently than they will stop for a black person in a crosswalk. over again, she had this wonderful piece of the presentation where she had a student with whom she was working who was completely natively fluent in spanish and english. his real name was von baker. they sent him on video job interviews under his real name and alejandro diaz martinez, and some were some fluent in english, some were hispanic, and the same on the spanish eye. the difference in callbacks on video interviews was night and day. cory: we knew there was a problem. when hiring people -- the one that got me was the discussion of the berkeley computer science

class, mostly dudes apply, when they changed it to the joy and love of computing, more women applied. what do you do when you are hiring to get away from that bias? >> what we have been working on is making sure that 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 university campus, when i diverse person comes on campus if they don't feel like the diverse community there is available to them, and they understand how to get them, they have higher attrition rates, companies have the same problem.

even if you hire diverse people, the culture from the time of the interview is not around more types of diversity or understood, you end up with more diversity issues. cory: that was tim armstrong and randall rothenberg. "best of bloomberg west." ♪

cory: i am cory johnson, this is the "best of bloomberg west.' one of woodlands lesser-known passion, emily chang cut up with would been at a fundraiser for a nonprofit called build. it promotes entrepreneurship in public schools. >> and not for newer could be a business person, a musician on anybody who can have an idea and turn it into reality. 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 important because i had a lot of failure along the way. there was a company i didn't start that i failed at. emily: how do failures drive you today? >> 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 oxford our can have is perseverance. a willingness to fail him the picker self up again and take another shot. if you do not have that grit you will get run over. emily: i am on your board. what attracts you to this? >> i think that the work in making school relevant to kids is important.

entrepreneurship -- the lessons, the tools that help kids learn how to start a business, tying all their other classes together in a meaningful way, in a way that is fine. in a way that they can get paid for. talk about motivation, you're try to get in a, but you can make some money doing it, it makes it tangible why school is important and makes it engaging. if you can engage it did, you can keep them in school. emily: you raise totally donated money to fully debate, making busy sixth biggest philanthropic ever in the united states. how do you plan to spend that money? >> i know one of the reason i've successfully business is because

i have an incredible support network growing up. parents telling me i could do anything. they believed in me and they helped me get going with my business. we would like to return the favor and help others realize their full potential as well. being -- it speaks to me, the benefits the kids will get, so through our foundation, my wife and i are excited to support build. emily: how do you encourage innovation, risk-taking, within gopro? you have a wildly successful product, how do you keep it differentiated from the competition? apple is always looming. how do you keep gopro, what you are famous for, the best of the bunch? >> having failed a couple of 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. it is a point to wake up every morning a little bit scared that that might happen. never think that you have finally made it. emily: does apple scare you? >> no, competition is a good thing. they scare you a little bit, but that drives you and motivate you to stay running and running hard. that is something alive and well in our culture. it is important to never let yourself stop trying to reinvent yourself. emily: gopro had a wildly successful ipo, the stock has been a little bit volatile, and yet you have people comparing the company to apple. an analyst told me you are the next steve jobs -- how do you reconcile that? >> you just go do the best you can.

we are fortunate that we have a long-term vision at gopro that make sense when we sit down with investors and they understand our vision. it becomes a question of, are we do ones to execute and realize that vision? more often than not, people believe that we are and the stock will go up, it will go down, but come as long as we execute against that vision, we will be fine. cory: that was emily chang. this is the best of "bloomberg west" -- will be back. ♪

cory: this is "the best of bloomberg west." can radio thrive or was dreaming services mean the end? one of the men that could have a huge stay in this is howard stern. the rock 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. >> there is a fair amount -- that would be impacted if his contract is not renewed. i think serious itself is in a much better position from a content perspective that it was in 2010 when his contract cannot the last time. on the flipside, howard stern has more options. it remains to be seen, but i know there is the price that the company could very well walk away from. cory: this business took off from a revenue standpoint and more subscribers. it took off when howard stern joined this business. he made this business a viable entity.

>> he did. a significant number of subscribers, when they joined the platform, they went on to discover other content the company offered. it is debatable whether subscribers would leave it howard stern left, but there is a no question. there is a good chance that a big company may not renew the contract. the company spends about $300 million per year on content, expenses. in comparison to netflix, it is significant, because howard stern himself accounts for a significant portion of that. cory: howard stern puts it very well in your article, he said, the notion -- it is stupid, a waste of time, if you want to be in radio, forget podcast podcasts are for losers.

going -- is going to a podcast apple, something he should take seriously? no one has deeper pockets. >> there are so many different options, apple, they introduced their car play product last year, where you can use your smartphone in your car to take over your car dashboard. i can imagine google making a play for him with this new youtube subscription service. late night television, premium television like hbo, he could do a direct to consumer product over the internet. so many different options for him. he will consider staying with sirius xm, and one thing to think about, he has worked hard

to be a part of their growth. he is in a position to enjoy that. from some perspective, his show is doing well in a sense that he is getting the kind of a-list celebrities and guests he would never have gotten five or 10 years ago. he has madonna on his show today. you might want to stick around and enjoy what he has built. cory: car play is interesting, but it is only in a handful of cars. estimates put it at 3 million cars only -- >> by 2017. cory: maybe it is a loss leader for apple, but does he have to go to a place where the company would make money -- or enough where he could be a loss leader for the company, and drive a pandora? >> either way, it will be a risky play to bring him on

anywhere close to what he is being paid. i think you have to look at how the business has evolved over the last decade, since this relationship started. sirius, from an economic analysis perspective, they are in a better position. the automobile growth is back to the old normal levels. when they first got howard, they were spending north of $200 in subrcriber acquisition costs per ad -- today that number is down to $30. you can look at a number of metrics, and you can calculate that, if there was some kind of -- saved the amount of money they paid howard, granted they will lose subscribers, potentially in the millions, but it is easier today to justify where that threshold would be for the company to walk away. cory: that was felix gillette. that includes this weekend's edition.

watch us every weekday from 10 a.m. and 3 p.m. in the west -- 1:00 and 6:00 in the east. we will see later. ♪

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