emily: apple overhauls its products ahead of the holiday shopping season. we have all of the highlights including the iphone and upgraded apple tv, watch, and ipad. ♪ emily: i am emily chang and this is "bloomberg west." coming up, apple shows off iphones with new touch interactions and better cameras that can issue what they call life photos. how much will that drive sales? apple tv, that's the first makeover in three years and its own app store. and a supersized ipad pro with a

keyboard and stylus, or as they call it apple pencil. , is it a laptop killer? all that ahead on "bloomberg west.:" it is all apple today. apple revealed the iphone 6s and new features including 3-d touch, a camera that can shoot 4k video, and live photos that come to life. we also have some the most influential apple watchers with me including om malik, ben bajarin, and nikhil bhogal. there is a lot to talk about. but i want to start with om, you gave it a seven out of 10. why just seven? om malik: the only way you get to 10 is with steve jobs. he is not there. they did a good job. there were too many things. during the event, you felt there were good parts and that they were lacking in some places. i thought the pacing was a little off. from a product standpoint, solid

upgrades. hence the seven from my point of view. emily: an iphone company and let's start with the iphone. i got to try out the two new phones. i saw the rose gold. i think i might like that color. what do you think? it is not a huge design change. there are little things that are significant. ben bajarin: a couple of interesting things. when you look at the product line, people say they look the same but apple said it's redesigned. it starts with the chip. things they are doing with the chipset to bring about capabilities -- and the games, i cannot believe those games are happening on a phone. even that camera thing and that is driven by the hardware changes. all those features from live photos to even the 3-d touch not on iphones. you look at what is unique about the phone. i would say it is not just a typical yearly updgrade.

they did so much that makes it stand out. the most important thing is that it is not just appealing to apple owners but switchers. the trend we are seeing in our data is record number of android switchers. it means those features are now prepared and in place to position to cater to new users for the first time. emily: let's talk about some of the new features. the cameras, both the front and back camera got an upgrade. there is this live photo thing, your screen will flash when it takes a selfie, which i like. what strikes you about the new cameras? nikhil bhogal: one thing to think about is for the last few generations, apple has not upped the megapixels. once the iphone 4s, they have been doing eight megapixels. now it is 12. four years is a long time to go without a spec bumb. what a lot of people do not see is every generation adds new sophisticated technology and that's why the pictures get better.

12 is such a meaningful number because it is 50% more pixels and they have been able to cram 50% more pixels into the same sensor size. they have advanced sensor technology to do that. emily: om, you love pinterest more than anybody. what do think about the new camera technology? how significant is it? when i tried out the live photos in the demo room, i got excited about it when i thought about my kids. but kind about a glorified gift. om: the thing about the camera, whatever apple does with the iphone is basically if you are a , company which makes products which are not high-end, you are kind of out of business. i think nintendo is really in trouble. -- nintendo wii is in trouble. i think all of the point-and-shoot cameras, that market is going to the smartphones. this is probably better than my onyx 100.

i can't wait to try it. it is that good. the live, it is a little hokey. emily: i think it will get better. om: people like those kinds of little gimmicks. i think there is something to it. the quality of the images is far superior than i have ever seen from my onxy 100, for example. -- onyx 100. emily: what about 3-d touch? they call it forced touch when it comes to the watch, i don't know why. but they call it the whole new way of interacting with your phone. you can still open in e-mail but if you press more deeply, it opens more shortcuts. ben: when you look at what they've done, there have not been huge upgrade to multitouch. this is the first big upgrade or new interaction level. that is why i think it is significant, particularly when you look at multitouch and developers took advantage.

they wrote apps and created new ways to interact with software. through these new adjuster paradigms -- gesture paradigms that apple brought. things that developers can take of, and more importantly to do things , quickly. get to deep layers without going into the app. eliminating five clicks and deal with one click. those little conveniences are nice and add up and save time. emily: how dramatic is this may engineering perspective to make this all work? -- is this from an engineering perspective to make this all work? nikhil: that technology has existed for a while but to take that and mass-produce it and fine-tune it so the user experience comes out great is the challenge. apple has consistently been great. emily: overall, our these updates going to drive sales? they had 74.5 million phones shipped in the last holiday quarter.

i am told there is no way they can be that. ben: i think it will. emily: you think it will? ben: from our data, the research we are doing, staggering numbers of people considering switching. the market is maturing where those with a low end phones are looking to move up. again, they are stealing in china. i don't think the people grasp how big the opportunity is. 27% by end of the quarter. 35%. still a huge number. it's not adjusted their existing base they are selling to new , users in ways they have not. all of those things compound. we're pretty bullish. emily: ben bajarin, om malik, and nikhil bhogal. thank you so much. great to have you here on the show and get that behind the scenes on apple's background. now, last year, failing to own apple was a mistake and this year it is amazon. amazon has searched city 7% while apple uppwe -- has surged

67%. apple has dropped .21%. perceived safe a haven status. a gets 57% of its revenue from north america. by contrast, apple has tumbled among concerns about iphone demands in china. a stock we are watching, netflix. shares rising today. the company saying it will expand into hong kong, taiwan, singapore, and south korea early next year. the ceo said he hopes to get it into china in 2016. last week, when netflix started its service in japan. they plan to complete a global expansion by the end of 2016. they have subscribers in over 50 countries. shares have risen about 100% this year. a third stock we are watching, jd.com, china-based internet

retailer rising for a second straight day. jd announcing a two-year buyback share initiative of up to $1 billion. shares continue to rise. betting china will do more to stimulate its economy. up next, the apple tv reimagined. we break down the first big update since 2012. ♪

emily: we have breaking news. box boosted revenue outlooks for

fiscal year 2016 and third-quarter revenue forecast exceeded estimates. it said it surpassed 50,000 customers globally and the ceo will be on our show tomorrow. continuing with apple, i want to focus on the tv because we saw the first significant update in three years. ben even changed his shirt. it acts as a gateway from netflix, hulu, hbo, and itunes. third-party developers will be able to make apps for the tv operating system called tvos. if you have apple tv, you are saying thank goodness, it is about time. do consumers need their tv to do everything their iphone and ipad can do? joining me is founder of simco, horace dediu, and om malik, and ben bajarin still with me.

let's start with that question -- do i want to shop and plan my vacation on my television set? horace dediu: definitely, you want to shop. emily: of course i do, but does everybody? om: this is the big thing people missed. this is the big thing about the apple tv. i was looking at the cofounder making the presentation. i was like wow, my addiction problems got way worse because now you can see video. it's not like a tiny screen you are shopping on. high fashion is perfectly shoppable on a big screen. that is huge. it's going to be huge, just wait and see. >> the other thing is it allows the experience of shopping to be a social experience. people in the same room can interact with one another. the idea that you shop together. that is hard to do on a device. you can imagine if my wife wishes to buy furniture she will

, have me huddle over the ipad and we will go over options. suddenly you can relax, sit back, have friends over. you can discuss things, like does this look good? you could put that on the screen. apple just showed you is you have laptop space and desktop space and wall space. when an app lives in these different spaces, it will get used differently. what we see, safari does not exist on wrist space and wall space. it does exist everywhere else. safari is a proxy for all browsing. browsing is off limits in these places or does not make sense. i would not say it is being blocked. it will just be a different space. emily: tim cook said this is the golden age for television but the viewing has not changed. he said the future of television is apps, is it true? ben: i think so. what is interesting about the big screen is that it has never

been a platform for developers. most of us, if you live in developed country, you are beholden to a box, and that hardware is pretty terrible. best has some of the developers on the earth compared to other ecosystems -- and say what would you do if i give you the sdk? maybe eventually they put a camera in and give you more capabilities. how can their developers advance the platform? that is the interesting part of it. that is the hook. we have never really seen a big developer community take advantage of the big screen because they never had a platform. emily: i am excited about the search capabilities that i could tell the remote to find me new kids movies, skip ahead seven minutes. wait, what did you say? it will skip back 15 seconds. but, tv, apple tv has been a niche product for apple. can it become a major product for them? just $149?

>> the hardware has not changed a lot. streaming boxes being the best we have -- it is not an expression of where this market it goes. it has been the hardware. even conversation about commerce, the commerce has been bad. we've not had interactive commercials because the hardware has been so bad. we needed a hardware revolution on the tv. apple says this is the foundation for the tv, maybe we are not there yet, but they are putting the pieces of the puzzle together. the new apps as part of the skeleton. it is an evolving narrative. emily: a step toward it. om: i will take a contrary in position. i think it is a transition product. tv is on the big screen, changing channels, watching apps, the same thing. i am of the belief that kids growing up today are watching, consuming video on the phone and the phones, which are like

tablets. and that is where the future of television lies. i do not think it lies in the big screens. i think tv is going to be for our generation and maybe two generations behind us. 5-15,e who is in the age that generation is growing up thinking about tv from youtube whenever they want. apple is very good at redefining the current paradigm. and say, okay, this is great. let's see how people do things now and figure out what will happen later. i will go against the grain and essay is a good product for people who were not of the next generation. emily: om malik and ben bajarin and horace dediu, you are sticking with me and we will talk but the monster new ipad. staying with apple, tim cook is reportedly attending a tech summit hosted by the chinese government in seattle later this month.

the new york times reports the chinese regulator has invited several executives from facebook, google, uber and more to a forum hosted by microsoft. alibaba founder jack ma has confirmed he is attending. it will coincide with president xi jinping's first day visit to the u.s. and amid warnings from washington that it could hit chinese companies with sanctions for digital attacks for trade secrets. up next apple's new partnership , with a french luxury powerhouse. we will tell you which luxury designer is going high-tech with apple in the apple watch. and why apple is betting on the ipad pro. ♪ tim cook: this is the ipad pro! [applause] it is the most capable and powerful ipad we have ever created. it is amazing, advanced technology and innovation. ♪

emily: time for the daily byte, one number that tells a whole lot. today's byte is $1100, the starting price of the hermes strap for the apple watch, and perhaps the flashiest part today. apple is partnering with the french luxury brand to create a leather strap for the model and special faces that represent traditional hermes watches. if you want the hermes strap and watch face, only $1500. to the ipad. the larger ipad designed to attract business users, but also musicians, designers. apple says the ipad pro is faster than 80% of pcs shipped in the last two months.

it comes with a stylus or apple pencil. will it jumpstart demand for the ipad? jackson withjohn me. horace dediu and ben bajarin and om malik with me. first of all horace brought his , two ipads, and if you put them together it shows the size of , the new ipad pro. 12.9 inches. it is huge. horace: approximately 2 ipads. quite a bit more to get the full size. what you end up with is essentially dual screen capability. if you go into portrait mode, for example, you can simulate. as an analyst, we love this stuff. data showing apple versus microsoft. we could do a side-by-side and see changes in the behavior of the two companies. that is just like going from a bathtub to a swimming pool. the way i see it, it is all

containing water, i just so much more room. emily: john, do think the ipad pro is enough to bring ipad sales back to life? john: i think it is enough to move the needle a little bit. we were certainly expecting it. there was some foreshadowing with the announcement of ios9 and some of the capabilities that horace dediu is demonstrating right now. it is priced at the surface pro 3. according to intel about one billion pc's in the world poised to be refreshed. a big market to fight for it. to me i think the jury is out if , there is enough here in this product. and certainly some innovation here. but whether there is enough to cement and move the needle forward in a material way for apple. emily: a much retweeted quote

from steve jobs in 2010, who said "if you see a stylus, they blew it." is he turning in his grave? om: i think so. a company that is becoming mediocre in terms of marketing and not being clear. emily: mediocre? do either of you have a problem with that word? om: let me finish. the stylus was a think he marked for a reason. the ipad meant having a whole new set of gestures and interactions and applications. they have swung back to being median and mediocre from that standpoint. big screen or not, it does not make any difference. i think a stylus is a step back. it just adds one more layer of cognitive overload to an already complex device. >> i vehemently disagree. the difference between the

pencil and the stylus is the stylus was meant to act as a pointer, essentially replacing a mouse. this device is a tactile object that conveys the senses of the hand onto the screen. the difference is that it was never intended to be about addressing the screen. it's actually allowing you to draw. that is why it is called a pencil, not a stylus. you can live with your entire life without it and have a great experience. emily: if you press lately, it is a thin line ---- if you press lately, -- press lightly, it is a thin line, if you press deeper, it is a thicker line. om malik: it is all about semantics. i learned a whole new set of gestures, interactions with the device with a 3-d touch. from that standpoint, maybe on the extreme end of it but i feel

, it is not a great move. >> the market changes. the market evolves. consumers are becoming more savvy. this product is catering to a new diverse set. now that drawers and artist have a tool with pencil position. if you try it, it is actually really good. there is a market. it is not for everybody. you do not have to use it. grandparents, my wife, my kids -- you know she performed -- in no shape or form do you have to use it. om: believe me, that is not the steve jobs way. emily: steve jobs changes mind many times. om malik and ben bajarin, horace dediu, and john jackson, thank you all so much for joining us. we will watch to see how the sales of the holiday quarter. a big announcement from apple. that does it for this edition of "bloomberg west." don't miss the box ceo tomorrow.

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>> from our studios in new york city, this is "charlie rose." ♪ charlie: a world-class conductor who has been the artistic general director of the mariinsky theatre since 1996. theater'se became the musical director. he was the conductor of the london symphony orchestra. in 2000, he had a vision for a new opera house, which after several technical setbacks, opened on his 60th birthday in 2013.