emily: we have the top things you need to watch for at tomorrow's big event. ♪ emily: i'm emily chang and this is "bloomberg west." coming up, a documentary filmmaker shines her spotlight on the excesses of the san francisco tech community. will speak to nancy pelosi about the widening income divide. startup to gett its unicorn horn.

and mark zuckerberg land on the top of vanity fair. all of that ahead on "bloomberg west." apple is gearing up to host a big event tomorrow and unveil a new version or versions of the iphone. last year we saw the most significant redesign of the iphone since it came out in 2007, but we're not actually seeing another major redesign this time. more like a minor upgrade. so, what exactly will we see? covers us is adam who apple. we have the program director for the mobile division and a senior wireless tech analyst. thank you all for joining us. everyone is so excited about tomorrow, even though it will be a minor upgrade. adam, i will start with you. what do you expect? what do we know about the new features of the phone? adam: it will look like the ones that are out there now. it's sort of a pump part of the cycle where apple focuses more on the software. you will get a better camera and processor and some other new

features, but like you said, is not as big as an upgrade as last year when there was anticipation for the bigger screens. emily: last year we saw a huge upgrade cycle, 74.5 million iphones shipped. ryan, will leave upgrades be enough to have another quarter like that? >> that is not sustainable to continue forward. we are expecting less volume in the fourth quarter. having said that i don't think it will be an unsuccessful order by any means. we are expecting 65 million compared to last year. >> i think people are grossly underestimating what the iphone success can do for apple this go around. you go back to the iphone 4s, prior to the five series was the most successful. new,is going to be the

greatest iphone apple has ever made and it really is going to impress. we're expecting better battery life, more processing power, better connectivity. given that we are now in the sweet spot, we think it's going to be another banner order for apple. emily: i am always excited, whether it's going to be bigger or not. adam, what about the apple tv? we've heard so much about apple trying to strike deals with the content company, now planning to do original content of its own. are we going to see a new set-top box tomorrow and how different is it going to be? >> the biggest features of it will probably be the app store , it will allow outside developers to come in and build applications for it. apple has not been able to strike these new deals with media companies and will be able to offer a variation on the cable bundle. they have not been able to strike those deals.

and so they are opening up the store and we are waiting to see what kind of apps that developers will make. gaming will be part of this. emily: we have not seen an upgrade to the set-top box for three years. it has been a long time coming. can the set-top box become a big enough product that it's not a niche product and it helps drive overall revenue? >> i say absolutely yes. apple is more than just an iphone company. it's an ecosystem company as well. apple tv can be the central hub of a smart home. looking at those applications that are coming out, like the new doorlock coming out that will work off the apple tv. it's all the devices working well together. that is apple's great advantage right now. apple can harmonize the ecosystem the way others cannot.

emily: do you think it can be as big as the iphone? >> it's not just about the tv, it's about connecting the home. i do think it can be as big as the iphone. i think it is the hub that will start to build these other things out. content is the other one that can clearly put this ahead of iphones. it's not the easiest thing to do. emily: ipads, will they or will they not unveil this mammoth ipad? >> the bigger ipad is expected to be announced tomorrow. it will further blur the line between a tablet and laptop. tim cook has said the ipad has a lot of opportunity with business customers. this is a device that is really geared toward that. the ipad, with more people began to do more and more with the handset, ipad sales have begun to fall. people hold onto the devices longer.

emily: is a big ipad enough to save it? >> the key is having an enduring business model like microsoft has. if the devices become part of the fabric in the way businesses business that is , transformative for apple. it does matter. >> the recent deals with cisco and ibm, it holds true that it is an important these. -- piece. this is critical. emily: let's talk about the software and siri, there was a big hint about an upgrade to siri. that goes along with this conversation about apple and artificial intelligence. how much smarter are these new phones and the new set-top box when it comes to the software driving it? >> there is more and more

integration into the different products apple is doing. there are some compelling use cases if you scroll around apple tv looking for a show, it's a very clumsy experience. emily: and it's very difficult to search. up, itou can speed that is a product that can work. but it's a product they had been improving, and artificial intelligence is a key part of that. when siri was first introduced, it was mocked because it was clumsy, but it has been improving. that is because of investments in the company. emily: is there more to the a.i. idea than search? >> it expands the business line. it is about how you interact with things. i don't know if you've ever come across the amazon echo. that is a.i. done right, and it is brilliant. it is huge. maybe someday the apple car.

>> i would agree. a.i. is huge potential for it's a slow-paced because initially people look at it as something that's kind of nonexistence. emily: i'm feeling more enthusiasm here than i expected. >> it's going to be a good opportunity for the lines to form again. what we have heard is that there have been issues with supply chain. they maybe don't have as many iphones as they would like. if people want to get in early, they probably should go out and get in line for this one. >> there is still huge demand and six, there are price cuts and that will be interesting as well. emily: we will be watching for that. we will be watching all of your headlines coming out tomorrow. a stock we are watching today, alibaba's head of investor relations spoke in new york. he said the company will have tough comments in the third quarter and the september

-- comps in the third quarter and the september quarter will likely come in lower than prior expectations. they say that investors have taken these comments out of context, but it did not stop summit research from cutting its price target to $81 from $91. and it's 10 month stock slide has wiped over $140 billion from its market value. separately alibaba announced the single day shopping festival on november 11 will be focused on globalization of off-line to online themes. it is huge. it will generate more sales than black friday and cyber monday combined. to a new partnership are watching, microsoft will begin selling a service tablet to get big corporate customers to buy the microsoft tablet.

the newest part of the deal is dell. it will offer warranties and customer support just like it would from one of its own products. microsoft gives access to enterprise level customers and dell gets to expanded support -- expand support services. we don't know if hp will be offering anything similar. up next, the newest member of the uniform club tells us the -- unicorn club tells us the importance of a billion plus valuation. house minority leader nancy pelosi sounds off on her colleagues across the aisle in silicon valley. ♪

emily: breaking news coming from yahoo!. we will get to our editor at large, cory johnson, but again, breaking news headlines coming out of yahoo! we will give you the update as we have it. this is having to do with the irs situation and some of their tax obligations dealing with the alibaba spinoff. i will get back to that when we have cory back with us. today in unicorn news, $160 million has been raised from insight venture partners. that is according to tech crunch. the latest round of funding at $1.2 billion.

outside europe, they operate in india and mexico. you can choose if you want to ride in silence, light chat, or have a conversation. it is certainly an unforgettable name. cory johnson is with us, our editor at large. he has been taking a look at the headlines. what does it mean when it comes to the irs and how much yahoo! can be taxed on this alibaba spin off? corey: yahoo! made a smart investment a long time ago. they want to sell the investments without paying taxes. distributing it to the yahoo! shareholders has been their plan. the big thing with the irs saying this spinoff is ok, and they've been waiting for word

from the irs. there has been nature being -- irs thatfrom the future decisions would have a different rule applied to them. the irs has refused to take a meeting with yahoo! about this, so it's unclear what it means. it tells us the irs never just signed off on this proposed deal from yahoo!, that the taxable burden for the spinoff, the whole reason the structure was proposed is not kosher with the irs, at least not yet. emily: yahoo! shares are sharply down right now after hours on this news. obviously investors are trying to get a sense of exactly what it means. thank you for that update and we will continue to follow this and bring you updates as we have them. now back to valuations. okta is thempany

latest startup to claim unicorn status, as of today, they just announced new funding. the ceo joins me now with the details. this whole unicorn thing is becoming like a badge of honor. >> a horn of honor? emily: some of the concern we've heard from the skeptics is that startups seem to care more about their valuations than actually giving value to the customer. how do you separate the two? >> we take the long view. we are out to build important independent technology company for the long-term. we don't think about the valuation. when we went out to raise this round, we were worried about having a valuation that was too high because it puts pressure on you to have to grow into it. it restricts when you can actually go public.

we think that going public is really putting the puck on the ice, so we are excited to move forward, build our company and go forward. emily: so you are worried about the valuation too high. i thought that only happened in -- on hbo's silicon valley. did you take a lower valuation than some were offering? did you take my from different kinds of people? >> we wanted to make sure all the investors heard our story, that we are about connecting any company and empowering their adoption of modern technology and telling that story and getting that awareness in the market as we eventually go public in the future. after that it was make sure it is fair, because were going to go public and we want the valuation we get now to mark the cost. if you look at our numbers now, it's pretty close to if we were a public company, not some pie-in-the-sky company with public valuations.

emily: we've been talking about a cyber security bubble. there are a lot of private cyber companies that are very highly valued. i was talking with one ceo about this very point. and all of the other companies out there, it seems to have become a crowded space. listen to what he had to say. fundedgood idea is being that it can keep being funded forever. that is going to have to change. they have no idea how to change that. that is a nonprofit. they should reincorporate as nonprofits if that's the way they are going to run their business. emily: is that happening? >> he makes a good you have to point. stick to the fundamentals. emily: so what is it that okta offers that other companies in the same space don't?

>> the first thing is, we are a security company and we make it easy for companies to deploy high security. it easy for them to deploy new applications. a lot of security technologies lock things down and restrict users and make it really complicated. our first thing is access. we make it easy to adopt applications that help our customers do better. security is an aftereffect of that but not the primary impedance that a lot of security companies run into. he seems to think we will see mass consolidation. do you see that ahead? >> we raised $75 million additionally. we are going to put it in the bank and wait to see if valuations do cool off and we can do some m&a. pulling off with not be a bad

thing. emily: when is the ipo? >> we are planning for it. as soon as we are ready to talk about it, that means it is not going to happen. so you should come here and talk about it before. emily: thanks so much for joining us. now to polytech. where silicon valley meets the hill. i caught up with house minority leader nancy pelosi right here in her district of san francisco. tech dollars are in hot demand as fundraising for the 2016 presidential race heats up. i asked her what she makes of the gop courting ceos like mark zuckerberg. >> people do what they do, but i would like to see them be more aggressive in congress in their policies as far as the tech community is concerned. whether it's tax policy and tax credits or innovation, whether its investments in education. innovation begins in the

classroom. whether it is investments in infrastructure, which are essential to all job growth. whatever they do politically is one thing. i would like to see an interest in the tech and science community. emily: she was in town for the premiere of her daughter's documentary. film,ancisco 2.0 is the and sandra explained how the film became a critical review of the companies in silicon valley. >> i went door to door to all the tech companies and try to get them to talk to me, and they wouldn't. so instead i ended up talking to people who really are not happy here in the first place. lessonthat was the real in access journalism. emily: "san francisco 2.0" airs on hbo later this month. it is really good. still ahead, an inside look at vanity fair's annual list of the most disruptive innovators who are reshaping their industry. that is next. ♪

emily: time for our daily byte. today's number 17 million. that's the number of people worldwide who booked to stay at airbnb. it is a 300 times surged over the last five years. earlier this summer the company raised $1.5 billion in funding and is working to approve a ceo for its operations in china. now to vanity fair's power list of the top 50 leading innovators and disruptors worldwide. mark zuckerberg has climbed to the top spot from his previous

rank of number five on the list. joining me as someone who helps put the list together, john kelly. thanks for joining us. it seems obvious that he would be at the top of the list, except when you think of the therepeople on their -- like tim cook and larry page. why give zuckerberg the top spot? >> part of the thinking was that zuckerberg seems to go down on the notion that vr is the future. facebook came into the world before the providers of mobile , but really after many of us had phones in our pocket. so it seems vr is an opportunity to not just control the tech but control how we consume it also. -- kalanicks planet

is number two. uber is certainly powerful but still has a lot to prove. >> the opportunities for uber are enormous. do they want to disrupt the other unicorns that are out there? the options are quite limitless. it will be interesting to see what he ends up trying to do with that company. nobody doubts he is ambitious and he will drive it somewhere. emily: given his relation of what is going on at twitter, quickly, taylor swift on the powers that be. why? >> taylor swift clearly is disruptive in her own way. she represents an old fashioned form of media. she seems to be able to get the media to bend to her will. when you look at spotify, it's been an enormous success story. emily: we will have to leave it there.

great list, we will check it out. ♪

>> from our studios in new york city, this is "charlie rose." [applause] charlie: tim cook is here. he is this ceo of apple. he succeeded steve jobs in august, 2011. he joined apple against his better judgment. he has said apple in early 1998 was very different than the apple of today. the company had been losing sales for years and was considered to be on the verge of extinction. he has also said working at apple was never in any plans i will outline for myself, but it was the best decision i ever made.