perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. emily: apple overhauls its products. we have all of the highlights including the iphone and upgraded apple tv and watch and ipad. ♪ emily: i am emily chang and this is "bloomberg west." apple shows better cameras and what they call live photos and how much will it 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 apple pencil. is it a laptop killer?

all of that ahead. it is all apple today. apple revealed the iphone 6s and new features including 3-d touch, a camera, 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. a lot to talk about. i want to start with the event. you gave it a seven out of 10. 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. there were good parts and lacking in some places. the pacing was a little off. from a product standpoint, solid

upgrades. 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. why do you think, 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. live photos to even the 3-d touch not on iphones. you look at what is unique about the phone. it is not just a typical s upgrade. they did so much that makes it stand out.

not just appealing to apple owners but switchers. the trend we are seeing in our data is record number of android switchers. they are prepared to position and cater to new users. emily: some of the features. the camera. front and back got an upgrade. live photos and screen will serve a flash. 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. since the iphone 4s, -- now 12. it is a long time without -- 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 in the same sensor size. they have advanced sensor technology to do that. emily: you probably know apple more. what do think about the new camera technology? how significant is it? when i try to live photos, i was excited when i thought about my kids. om malik: 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. nintendo is really in trouble. i think all of the point-and-shoot cameras, that market is going to the smartphones. this probably better than my camera right now.

can't wait to try it. it is that good. emily: i think it will get better. om malik: people like of those kinds of gimmicks. i think there is something, the quality of the images is far superior than i have ever seen from my phone. emily: what about 3-d touch? i am not sure why they changed 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 bajarin: there's not been any huge upgrades. all of the gestures they have brought in advance of the first big upgrade or new interaction. that is why i think it is significant when you look at the multitouch and developers took advantage.

they wrote apps and created new ways to interact with software. and now it is two of those and i would expect more. things that developers can take advantage of and 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. emily: how significant, in terms of the technology to make this all work? nikhil bhogal: 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: are these updates going to drive sales? they had 74.5 million phones shipped in the holiday season.

ben bajarin: i think it will. 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. i do not think people fully grasp how big opportunity is and make the point 27% by end of the quarter. still a huge number. they are selling to new users in ways they have not. all of those things compound. we are bullish. emily: ben bajarin, om malik, and nikhil bhogal. thank you so much. great to have you here. now, last year, failing to own apple was a mistake and this year it is amazon.

the online retailer has contributed the most to mitigate losses in the s&p 500 this year. amazon is enjoying a perceived safe haven when investors want nothing to do with emerging markets. they get 50% of revenues from north america and is less exposed than its peers. apple had slumped in china. a stock we are watching, netflix. shares rising. the company saying it will expand into hong kong and south korea early next year. the ceo said he hopes to get it into china. last week, they started in japan. they plan to complete a global expansion by 2016. they have subscribers in over 50 countries. a third stock, china-based

internet retailer rising for a second straight day. jd announcing a two-year buyback of up to $1 billion. betting china will do more to stimulate its economy. up next -- apple tv. 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 exceeded estimates. it said it surpassed 50,000 customers and the ceo will be on our show tomorrow. team up with apple and 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 and the remote got an upgrade. 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.

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 malik: this is the big thing people missed. i was looking at the cofounder making the presentation. my addiction problems are way worse because now you can see video. it is not like a -- or high-fashion is perfectly shoppable on a big screen. that is huge. >> the other thing is it allows the experience of shopping to be a social experience. people in the same room can interact, the idea of you shopping together and that is hard to do on a device. if my wife wishes to buy furniture, she will have me huddle over the ipad and we will go over options.

now you can relax and sit back and have friends and discussed, does it look good? you can put it on the screen, what apple just showed you is you have laptop space and desktop space and wall space. apple in these different spaces will get used differently. what we see, so far it does not exist on wrist space and everywhere else. safari have a proxy. browsing is off limits in these places or does not make sense. it is going to 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 bajarin: i think so. it has never been a platform for developers. most of us if you live in developed country, their hardware is pretty terrible. no getting around how bad it is pretty is like having a platform that developers can take advantage of. what would you do if i gave you -- you could do things with the mic on the remote? what will their developer still? 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 shows. but, tv, apple tv has been a niche product. can it become a major product?

>> the hardware has not changed a lot. it is not an expression of where this market it goes. it has been the hardware. even conversation about commerce, it has been bad. we've not had interactive commercials because the hardware has been so bad. we have need hardware. maybe we're not there yet but we are trying to put the pieces together. the new apps as part of the skeleton. emily: a step toward it. om malik: i will take a contrasting position. i think it is a transition a 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 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. anybody from eight to 15, they are growing up and think about tv from youtube and apple is very good at redefining the current paradigm. ok, this is great. let's see how people do things now and figure out what will happen later. and i will say it is a good product for people who are 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 attending a tech summit hosted by the chinese government in seattle later this month.

the chinese regulator has invited several executives to a forum. 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 and could hit chinese companies with sanctions for attacks for trade secrets. apple's new partnership with a french powerhouse. which designer is going high-tech with apple and the apple watch. why apple is betting on the ipad pro. ♪ tim cook: this is the ipad pro! it is the most powerful ipad we have ever created. it is amazing, advanced technology and innovation. ♪ emily: time for the daily byte.

today's byte is $1100, the starting price of the hermes strap for the iwatch. 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 to attract business users and also musicians, designers bring apple said the ipad pro is faster than 80% of pcs shipped and comes with a stylus or apple pencil.

will it jumpstart demand for the ipad? john jackson from idc outside the apple event and horace dediu and ben bajarin and om malik with me. horace brought his 2 ipad's, put together, it shows the size of the new ipad pro. it is huge. horace dediu: approximately 2 ipads. quite a bit more to get the full size. what you end up with is essentially dual screen capability. you can simulate, as an analyst, we love this, data showing apple versus microsoft. we could do a side-by-side and see changes in the behavior of the companies. that is just like going from a bathtub to a swimming pool. it is all containing water but just so much more room.

emily: john, do think the ipad pro will bring ipad sales back to life? john: i think it is enough to move the needle a little bit. we were expecting it. some of the capabilities that horace dediu is demonstrating right now. it is priced at the same as of the surface pro three and really this is, the enterprise market and according to intel about one billion pc's in the world poised to be refreshed. a big market to fight for it. i think the jury is out if there is enough here in this product and certainly some innovation here. 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 who said, "if

you see a stylus, they blew it"" is he turning in his grave? om malik: i think so. a company that is becoming mediocre in terms of marketing and not being clear. emily: mediocre? you have a problem with that? om malik: let me finish. the stylus was for a reason. the ipad meant having a whole new set of gestures and class of applications. they have swung back to being mediocre from that standpoint. big screen or not, it does not make any difference. the stylus is a step back but does because it is added one more layer to the complex device that is out there. >> i vehemently disagree. the difference between the pencil and the stylus is the

stylus was meant to act as a pointer, replacing a mouse. that is in the sense of a tactile object that conveys the sense of the hand on the screen. the difference is it is never intended to be about addressing the screen but allow you to draw. that is why it's called a pencil and not a stylus. you can live your entire life without it and you have -- emily: if you press more deeply -- om malik: it is all about semantics. i learned a whole new set of gestures, interactions with the device with a 3-d touch. more gestures and bring in another device to add more complexity. from that standpoint, maybe on the extreme end of it but i feel it is not a great move.

>> some market changes and consumers are more savvy. this product is a diverse set, artists now have a tool. if you try it, it is really good. there is a market. not for everybody. you do not have to use it. people love the ipad today and can benefit -- >> you do not have to use it. om malik: believe me, not steve jobs' way. emily: we have to leave it there. steve jobs changed his mind many times. om malik and ben bajarin, horace dediu, and john jackson, thank you 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 forget to watch the box ceo tomorrow. ♪

>> this program is from the u.s. money reserve. a company not affiliated with the u.s. government or the was met. -- or the u.s. mint.