emily: apple prepares to unveil new iphones. the top things you need to prepare for for that big event. i'm emily chang and this is "bloomberg west."i coming up, documentary filmmaker shines her spotlight on the excesses of san francisco's tech community. will speak to nancy pelosi about the widening income divide. plus, the latest started to get its unicorn horn.

and mark zuckerberg lands on the top of vanity fair is new list. 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. what exactly will we see? 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 we know about the new features of the phone? adam: it will look like the ones that are out there now. the iphone 6 and six plus. it is part of the bump 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. will this be enough to have another quarter like that? ryan: i think that quarter is unsustainable 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. emily: what kind of a quarter? millionting around 65 compared to 75 last year. alex: i think people are grossly underestimating what the iphone success can do for apple this go around. you go back to the iphone 4s, this is going to be the new greatest iphone apple has ever made and it really is going to impress. we're expecting better battery life, more processing power,

better connectivity. all of these things given that , we are now in the sweet spot, we think it's going to be another banner order for apple. -- quarter 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? >> it is expected to be announced tomorrow. the biggest features are probably going to be the app store that it will introduce that will allow outside developers to come in and build applications for it. like you said, apple has not been able to strike content deals with media companies. they will be able to offer a variation on the cable bundle. it has been rumored for a long time but they have not been able

to strike those deals. they are opening up the app store so we will wait and 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. my question is, this is an iphone company at this point. 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. and the apple tv can be the central hub of a smart home. going onto the internet of things applications coming out, like the new doorlock coming out that will work off the apple tv. it's more than just a tv and more than the iphone. 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: i see the potential for

apple tv to be big, but do you think it can be as big as the iphone? >> the last point is key. 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: will they or will they not unveil this mammoth ipad? that you have been reporting on. >> the bigger ipad is expected to be announced tomorrow. this will be a bigger model that further blurs the line between a tablet and a 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, in part because of the

success of the iphone, people being able to do more and more with the handset, ipad sales have begun to fall. people hold onto the devices longer. they see business as an area where it can do better. emily: is a big ipad enough to save it? >> the key is having an enduring business model like microsoft has. if you can embed more devices that become a part of the fabric in the way that businesses that istheir business, transformative for apple than just being a consumer company. this holds true that is an important piece. maybe not the volumes iphones are doing, but it a critical piece. the recent deals with cisco and ibm, it holds true that it is an important these. 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. tv is one where you will see more. there are some compelling use cases if you go around apple tv looking for a show it's a very , clumsy experience. emily: it is very clumsy. and it's very difficult to search. >> yes, that is a problem that they could work for. 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. part of that is because of the investments. emily: is there more to the a.i. idea then better search? >> yes, it spans the business line. it's the way you interact with phones and the internet of things devices. 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.

>> it's a slow-paced because initially people look at it as something that's kind of nonexistence. i think it's more about proving the day-to-day basis. emily: i'm feeling more enthusiasm here than i expected. >> and i think this is going to be a good opportunity where the lines to warm again. what we have heard is there have been some issues on the supply chain. they maybe don't have as many iphones as late -- they would like. if people want to get in early, they probably should go out and get in line for this one. >> i think the price cuts will be interesting as well. there's huge demand still for the iphone six and 65. -- six plus. 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 quarter will likely come in lower than prior expectations. it did not stop summit research from cutting its price target to $81 from $91. and it's 10 month stop 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. more sales generates than black friday and cyber monday combined. to a new partnership are watching, microsoft will begin selling a service tablet to get -- surface tablet as part of a

big push to get big corporate customers to buy the microsoft tablet. the newest part of the deal is dell. when it begins selling these products, 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 services. we don't know if hp will be offering anything similar. up next, the newest member of the uniform club tells us the importance of a billion plus valuation. house minority leader nancy pelosi sounds off on her colleagues across the aisle in targeting silicon valley. ♪

emily: breaking news coming from yahoo!. yahoo! saying the irs did not grant requested ruling. we will get to our at large, cory johnson, but breaking news headlines coming out of yahoo!. we will give you the update as we get 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. however today in unicorn news, , $160 million has been raised from insight venture partners. the latest round of funding

ballot at $1.2 billion. blabla is a ridesharing service between cities. outside europe, they operate in india and mexico. as far as the name, writers can bla if they would like to write in silence. light chat, or have a conversation. cory johnson is with us, our editor at large. he has been taking a look at yahoo! headlines. what does this mean when it comes to the irs and how much yahoo! can be taxed on this alibaba spin off? cory: yahoo! made a smart investment a long time ago. now they want to sell that without paying taxes. distributing it to the yahoo! shareholders has been their plan. but the irs has not signed off on it. there are many steps for the approval. the big thing with the irs saying this spinoff is ok, and

they've been waiting for word from the irs. there was a suggestion that 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. at the very least, it tells us the irs has not 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. the crowd software company is the latest startup to claim unicorn status as of today, they just announced new funding.

evaluation of about $1.2 billion. the ceo joins me now with the details. this whole unicorn thing is becoming like a badge of honor. how do you think about it? >> a horn of honor? emily: yes. but really, some of the concerns we have learned is about skeptics, 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 at any one point in time. when we went to raise the round, three months ago, we were arried about having an -- valuation that was too high. it puts pressure on you to have to grow into it. it restricts when you can actually go public. we thing going public is really putting the puck on the ice, so we are excited to move forward, build our company and go forward.

and not limit our options. emily: so you are worried about the valuation too high. i thought that only happened in silicon valley. how did that impact how you ran the round? did you take a lower valuation than some were offering? >> we wanted to make sure all the investors heard our story, that we are about connecting any company to any technology, and powering 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 be marked the public cost. that is what we found happened. 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: i know security is just

one thing your company does. 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. on the other companies out there, which it seems to have become a crowded space. take a listen to what he has said. >> there's so much interest in this area that any i -- good idea is being funded to the point where it can keep on going forever. that is going to have to change. there are many companies were cost of sale is higher than revenue. they have no idea how to change that. that's called 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 point. if you are running a company, you have to stick to fundamentals. emily: so what is it that okta offers that other companies in the same space don't?

>> we make it easy for companies to deploy high security. we also make it very easy for deployment. 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. emily: he seems to think we will see mass consolidation in the industry, some companies going bankrupt or selling for nothing. 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 cool off and we can do some m&a. small companies with great talent and build the market. consolidation would not

necessarily 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's not going to happen. you cannot talk about it until it happens. emily: so you can come here and talk to us before. 's ceo.ou, okta 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. nancy pelosi: people do what they do, but i would like to see them be more progressive 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. whether its 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. alexandra explained how the film became a critical review of the companies in silicon valley. to san francisco to tell the story of what is happening in my hometown. 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. that to me was a real lesson in access journalism. emily: "san francisco 2.0" airs on hbo later this month. it is really good. watch it. 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 whopping 350 times surge over the last five years for the house renting platform. 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 other people on their like tim cook and larry page. john: it is a competitive list for sure. part of the thinking was that zuckerberg seems to be doubling down on the notion that vr is the future. platform that facebook is investing and trying to own. facebook came into the world before the preponderance of mobile but really after many of , us had phones in our pocket. it seems vr is an opportunity to not just control the tech but control how we consume it also. emily: travis is number two, which is interesting. uber is certainly powerful but still has a lot to prove. john: it sure does.

we will see over the next few years what it can do. the opportunities for uber are enormous. did they want to take on fedex? 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 that he is very ambitious and he is going to drive it somewhere. emily: chris sack on the list, dubbed the unabomber according to reporting by you given what he is doing at twitter. quickly, taylor swift on the powers that be. why? john 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. ♪ we live in a pick and choose world.

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