♪ >> i am caroline hyde. this is the "best of bloomberg technology." oure we bring you from all top interviews from this week in tech. galaxyiews are in, the s8 hits the market. eight congress and zuckerberg's plan for augmented reality. the scoop that has twitter buzzing, a $400 juice are

feeling the squeeze. anticipation has been growing around the release of samsung's with moresmartphone than one million advanced orders, a new record for samsung's home market, but will the demand be there. growth is expected to slow down this year. analyst and with an cory johnson. there is a lot riding on it. samsung has a reputation to repair. we collaborated with the to do this quick study to see. the note 7 issues did not seem to be a barrier. they said that was not a .eterrent for them to consider

with existing owners, it was is ino i don't think that the mind of a consumer as big of a deal as people made it out to be. they may be more cautious in their review to say this happened. i think they are playing the cards, but the reviews have been good, and people have been screen, so ithe don't think the note issues are as bad as people think, but now samsung needs to ramp up their marketing. toy: you have been cautious get to excited about s8. cory: i don't think i have been excited about a device ever

appeared samsung needs this to work. when thes at a time refresh cycle is lengthening. got a little past because the consumer dynamics , so they were able cyclep a cycle or half a and have a shot to maintain their leadership. caroline: ahead of the game when it comes to the iphone eight, we , and he wasing saying what we were expecting, and a lot of it was in the s8, and xiaomi as well. >> within this research, we look

consumersivers things d in, andintereste screening camera were still be .ighest purchase drivers we will see a move to bevel design, then that trickles down to the low end. want as bigers will of a screen as possible in a small form factor. sticking with smartphones, the man who founded the world's most valuable company is confident apple will remain on top of the game. we sat down with steve wozniak and disruption technology. >> disruption does not mean a big, widescale, all jobs. this means the company comes

across with a new idea, new approach and everybody says that is the way of the future, and a lot of companies get disrupted, put out of business. that is what disruption means to me. when human life gets disrupted, every change in technology has changed how we live life. it has been dramatic from personal computers, smartphones, high-bandwidth mobile. you could say that disrupted the ways of the old. using some of the things that were so precious to i always look the way to change is we create a new world is different, we lose some things of the past, but it is good. it is too early to come to that sort of horrible, overall

assessment. i think we have a pretty good employment level right now. caroline: what about apple's role and what products they will unveil. o kind of features do you think will need to come from the smartphone to remain a dominant force. >> i am not annexed for it. i don't speak for apple. i read as much as you. i've probably read less than you about what the possibilities might be. look toompany has to stay huge, keep alive, and keep going. apple has done it by spotting new trends come a making changes, going new directions. in ald like to see apple huge market, like self driving cars. what is apple going to offer that is different from everyone else that will put it in a leadership position?

store andany phone that's what you see on all the willphones, so maybe apple take a leak and self driving cars, and that will be the way for everyone. caroline: fascinating. apple has clearance for trials for autonomous technology. whereu an optimist about in deed apple and the big tech players will remain? will we see facebook, google, and apple still the top most viable companies in the world and that time do you think? >> know, there are always new things that become these huge entities that take our life sometimes in a new direction. apple, google, facebook will still be huge and large. the trouble is you get to a certain point of wealth that 60

years is too soon a time to disappear and go out of business. the only way apple could go out of business is to merge with google and changed its name. just a joke. caroline: that was steve wozniak. tablets, appleve let' controls 25% with its ipad, but can it keep up? market government got his hands on the latest ipad and new red iphone and took a closer look. this is the cheaper ipad, $329, the cheapest apple has come out with. you will want this ipad if you are buying in bulk. save untilooking to an ipad pro model comes out, it is good especially if you don't need support for the smart keypad or stylus. the new ipad is faster than old

ipad air models. for investors, it reinvigorates the ipad line at a time when tablets are in question. a pro user, you might like the option to look at two windows side-by-side. it makes it easy to search for things then view them. you can also copy text between the two sides. in the notes app, you can use two fingers like a cursor. , taphlight a hair graph it, cut and paste. it makes it really easy to manipulate a few characters to make sure you are highlighting what you want. sale.w ipad is now on you can find us each week on facebook, twitter, and the bloomberg technology homepage.

thank you. ♪ that was bloomberg technology reporter market kerman. coming up, we head to facebook's f8 conference next. like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

now to facebook's annual developer conference this week. his keynote address, mark zuckerberg signaled a major focus going forward will be augmented reality. >> even if we were at the toll a little slow, i am confident we can push this augmented reality platform.

glasses we all want, the same technology, and this is another step on the path of their. caroline: we went live to the f8 developer conference with sarah frier. >> snapchat announced they this 3-d overlay on the real world just in time because facebook comes out at their big developer conference and basically says this strategy that snapchat has come we are going to win at it, so zuckerberg is confident that despite the slow start that they are going to be the ones that are going to get people used to augmented reality, first through their phones, then through some sort of device. made a big push into virtual reality with the purchase of oculus, many questioning the price they paid, but they are not giving up on

the are, but there is a focus on the space they launched today. >> the are has become this incredibly crowded market. has become this incredibly crowded market. it is the social communication, software that helps people build their relationships like they do on the main app, so what they introduced was faces where you can hang out with your friends and family in this avatar world. caroline: plenty of energy from the speakers and developers in an crowd, but there was awareness made by mark zuckerberg, noting this tragic occurrence over the easter , a murder cleveland taking place and sadly broadcast on facebook. out to thets go families and friends of robert

and we have ar, lot of work and will keep doing all we can to prevent tragedies like this from happening. caroline: are you surprised he mention this? verythink his word choices interesting, prevent tragedies like this from occurring. ?hat is the tragedy this murder went viral? this will be tricky for facebook to navigate in the future. humansly so heavily on to flagstaff when it needs to be taken down. when it was fly, it took 28 minutes to take it down, but the internet moved faster. what they need to do, and others have echoed this, is to use artificial intelligence to determine if these videos are

inappropriate for the platform much earlier on. are stillthere opportunities it would seem. sarah frier, fantastic reporting from f8. thee was also news on company's messenger platform. facebook announced new features its primary app. i asked about his goals to make messenger a one-stop shop for users. >> it depends on what you are trying to do, but there are lots of things that belong in a conversational context to it when you think about the messenger app, it is the place you go to to coordinate plans him of making reservations, building a playlist with friends, or many other things that require some form of conversation and coordination, so instead of switching to other do it right there and then inside of messenger

natively, so it is easier to do the things they were already doing. no cape: therefore switching, keeping within bots.nger, and using tho there was a lot of hype in 2016. can it live at to the hype in 2017 -- live up to the hype in 2017? every new technology has a hype cycle when it lives on a platform as largest ours. i feel like we have made a ton botrogress, up to 100,000 s, 65 main businesses, of which 20 million respond to messengers on messenger every month. things are happening and they are happening because we have learned a lot and because we

have built a successful ecosystem around the product. caroline: of course for those viewers out there, internet bots is a way of having applications run swiftly, therefore give us the monetization strategy. how will businesses be using this in pain you? are thinking about monetization is if we create more value inside of conversations in messenger for businesses, then you want to create more of these, and a great way to do this is to buy ads in newsfeed in the main facebook product, then open conversations inside messenger. it is creating a new demand for ads, and over time we will test ways for companies to advertise inside of messenger that does not get in the way of messaging. caroline: how big of a part of

facebook's revenue do you see messenger being? you have a target? -- do you have a target? >> we don't break that out. it is very early. that anyy something companies who have built a presence on the platform could start doing since last december, so it is very early still, still very small, but we base that isuser what it is and a thriving echo ecosystem that we will be a wood to build a strong business. caroline: still ahead, what bill gates says about brexit and how it can affect scientific research in the united kingdom. that is next. uber has lifted the veil on its finances. we will run through the numbers. this is bloomberg. ♪

caroline: this week, celebrations for the fifth anniversary end geneva, switzerland, producing a roadmap for the control, elimination of the world's tropical diseases by the end of the decade. though gates helped to kick off the event, and manus cranny set down for an exclusive interview. ofy discussed the impact u.s. taxes, immigration, and brexit. take a listen. structures, you can't say they are unimportant, but the basic idea of what is going on, whether it is drug companies coming up with new drugs or software, it depends on the

innovation and are you meeting the basic needs people have to communicate, manage their business and things like that, high taxrnia is a location, and yet silicon valley remains the center of huge innovation, stronger today in terms of its share of the digital innovation than at any i am notistory, so downplaying tax issues, but what ceos and tech companies wake up thinking about every day is how they are going to use ai, where does their ai connect customer problems. >> your mentioned your meeting in terms of informing the president and go thing his knowledge base. when you talk about a threat of an insular america and an immigration. how big of a threat is in

immigration change in america. ? >> america hasn't had a door for immigration for a long time. we have a lot of comfort get a policies that have to do with ,inging family members over some skills-based programs like fill a jobf you can that can otherwise be filled that helps the american economy, you can do that. there is this area of uncertainty. ,f you want to grow jobs bringing foreign talent end, starting to companies or filling new roles, that is a net jobs accretive. people are worried you are bringing in people and lowering wages, so having systems that differentiate between the job substitution peace versus that uniques around

talent, the government will probably try to do that harder. the fact it is evaluated in the framework of jobs and economic growth, that is fine. high skill immigration can meet that test. educating somebody and having them leave the country where other jobs could be created around that person is in a great jobs move. >> an irish man with two looking at brexit, but you as a global technology man, how do you look at the u.k.? , or an a long goodbye opportunity i for the u.k.? what is the threat from brexit as you look at it from your vantage point? microsoft,, whether where they have a huge lab there , cambridge, or for the

foundation. a billion dollars of active grants to institutions in the u.k. to build new tools , it after the united states is by far the number two place with a huge distance to number three, so maintaining that scientific excellent's excellence 10 having the right type of r&d collaboration, where the u.k. has been a huge net recipient of r&d dollars, i have been pleased with the chancellor and the prime scientificve said leadership, creating good jobs, having the strength is fantastic in the u.k., that they will work to maintain that, because it would be a huge loss for the

world and the u.k. if that was not done. it can be done. they made it a bit more complicated by not being part of the eu, and just the uncertainty about the rules about people, r&d,, some people are getting concerned about that. our foundation will be here 10 years from now, 20 years from , and i we can be calm am sure we will get asked as these choices are being made had to keep that very strong scotland where ,ivestock is unbelievable imperial oxford, i think they are being careful to make sure they are not dropping off on that. caroline: coming up, the state .f diversity in the workplace that is next.

a reminder that all episodes of bloomberg technology are live streaming on twitter. check us out at @bloombergtechtv weekdays at 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪

caroline: welcome back to the "best of bloomberg technology." spotlight hass, a been placed on silicon valley's lack of diversity. as a response, companies have in making efforts to become transparent on diversity efforts, publishing diversity reports and pouring millions into initiatives with the aim of recruiting and retaining more women and minorities, but much of what they have done has shown incremental results. we sat down with anita hill and

ellen pao. ago, there was not nearly the public reaction we have today. today, specifically with the ,ill o'reilly situation corporations have responded and resisted and pushed back the idea of adding their names to this kind of behavior. you have a public that has been in raged and is responding. women are protesting, telling their own stories, a public conversation. 25 years ago, we had a president it and went along with it. this time, the public is not buying it. caroline: the public sentiment has changed. as in 2012 the same

when you came up against your previous employer? do you think things have changed for the positive. ? >> i think they are believing people when they bring up their experiences. i think people are now recognizing there is a bigger problem, that there is discrimination and harassment in the workplace, and it happens to anyone and it is no longer what did this victim do wrong, but this problem needs to change, so a different perception than 25 years ago when people were less educated. caroline: how is technology making the difference? to tech scene is starting show slightly better numbers when it comes to females in the workforce, but clearly still evidence of sexual discrimination when they are there, and black and latinos in many companies seem pathetic. systemic problem that

started decades ago when they companies became successful and they were started by white men and they made money to invest and other white men. it is an epidemic of power matching. it is something that has happened to women. it has happened to racial and ethnic underrepresented people of color, two people who are lgbtq, every group that is not part of that founding set of fathers from silicon valley, so had to change that culture to make sure everyone is included come and not just a few more women or black employees him of it making sure you are getting the best employees for the job and giving them the opportunity to do their best work? someine: are you holding

startups or technology companies in the light to show the way things can be done? >> there are some companies that are thinking about it in a helpful way where they are starting to experiment. to thinkk you need about inclusivity of all people, not just certain groups. you have to think about it comprehensively across your company. it is making sure they are on mentors ande sponsors, promoted equally, given the same opportunities across the board, and the third eases measuring, so the companies taking the time and effort to see what levels of diversity they have, what the sentiment of the different groups inside those companies to helpl have the data them succeed. the question is, are you going to take that data, share it across your team, and focus on these problems? >> for me, one of the clea

ar pieces of information about the bill o'reilly problem is about changing the culture and environment to make sure that when you put all these things in place that you actually follow through with an idea of increasing and maintaining increase diversity. caroline: that was anita hill and ellen pao. now still ahead, this week kicks off with netflix earnings and subscriber gains in the first quarter fell short. we will explain what is behind the slip. bloomberg got its hands on a $400 juicer that has raised millions from the sea firms. we will explain next. this is bloomberg. ♪

caroline: netflix released earnings, and investors are

focusing on customer additions, and the numbers were below expectations. than half aore million behind consensus estimates. with ainto the numbers company that collects data on streaming viewership. by missing estimates for the first quarter, they will have to come through with a strong addition in the second quarter, and challenges they face around subscriber churn will not subside anytime soon, so the pressure will get real and the second quarter. caroline: what about the content? we are expecting it thicker and faster and the second quarter, house of of cards in particular. are they lining up the comment to draw in these new subscribers? substantialas made

investments in terms of developing original content, but in general, investors looking up the value of netflix just based subscriberevious acquisition was is a missed opportunity. if we look at the ways they can still monetize the audience, branded content, merchandise off of new original content they own, there is more diversification and opportunity to monetize audience for netflix other than whether they get 5 million or 4.5 million subscribers. is interesting. should we be shifting our attention away from subscriber growth and looking at other numbers? should we be looking at areas of opportunity to grow? i expect toe thing hear more of going forward, what

their innovation platform is good the concept of taking a couple of tv shows and selling to subscribers is getting more competitive and well-worn. they need and innovation platform to bring the competitive edge up in the second quarter quarter, so i would expect to see something there. caroline: dig into these innovation platforms. who would you see them selling the homegrown content onto? they are still saying no to sport. sports is out of their specialty and a very expensive arena for them to challenge other people in. across the over the top ecosystem come up most of the growth has been in ad-supported content, and i don't see domestically that they will start showing 15-second or 30-second ads, but having an

advertisement shown in luke cage and showing that household bought a hyundai, those are significant dollars, so a lot of the innovation may be in ways they can get brand engagement, sponsorship, and merchandising in particular. caroline: interesting area, maybe more product basement going forward. what about the ongoing splash of cash we continue to see? in 2017,n on marketing content to making the come at what point do we see a reigning in of this pending come or do we not? >> the revenue growth number support a company still in growth mode. at some point, they will need to figure out how to make the adjustment into more of a mature, going forward business. they need to figure out a way to

manage subscriber churn in a cost-effective way, and obviously avoiding mistakes on long-term content costs. all three will be important cost management tools as they evolve from a growth company to a profitable company. caroline: now to a bloomberg story that has taken the internet ice storm. u.s. based juice machine maker million.aised $120 bloomberg got its hands on the machine with a $400 price tag, but is it really worth it? ♪ >> this is the juicero, a by aressed juicer made startup in san francisco. when it launched, six under $99, in january, $399. it makes juice by squeezing packs of cut up festivals. presser you need this to get the juice out of its

packs, but we decided to give them a squeeze test of our own. after two minutes of squeezing, no expensive juice machine needed. ♪ that was the voice of the person who wrote the story gaining major traction online and on the bloomberg. fantastic piece, fantastic reaction. this is back by some stand out s that are perhaps embarrassed. >> huge venture funds invested in this company. kleiner perkins, google ventures all putting in about $120 million in two juicero. caroline: has there been any

response in terms of how juicero is reacting to this? it is such a punchy price tag. win on thehe us to record and did say he absolutely figured out on his own that the bags could be squeeze, but our understanding from sources of the company and investors that it is an issue that has not been broached or discussed come and perhaps the company does not see it as an issue. they would not go on the record with us. caroline: the company has a significant background in terms of design. it was intended to be the tesla of juicers. has 400 parts, a scanner, thisroprocessor giving it high price tag. originally the mess sheen cost $700 in january, and the company wants to be considered an innovative tech leader.

food tech is a huge topic in silicon valley. a lot of venture funds are pouring in money into companies like impossible foods, hampton creek, and juicero has caught the eye of a lot of firms in san francisco. up, the insideg track on uber. why the privately held company has decided to unveil its financials, next. plus, steve ballmer gives us details on his new venture aiming to make government data more accessible, next. this is bloomberg. ♪

caroline: former microsoft ceo steve ballmer believes in data. he believes in it so much that he has launched a comprehensive data look at government spending. if it has asked him gotten any easier. take a listen. >> measuring productivity is a

weird concept to me. measuring how people live, how they eat, what their housing looks like, how much money they have to spend on those things, that looks clear to me. obviously we all like having cell phones. it has changed lives and made things very different, and yet it does not show up in a particular way and some of the productivity numbers. to me, that may not be the most important point relative to what we are trying to do with usafacts. we have gdp, all the numbers out there, but i'm not sure it captures the citizens experience, and never will capture the citizens experience. tech orhen you look at the sharing economy, it is hugely popular, more and more people becoming part of it coming yet not making a ton of money. when you're looking at data, what you make of it? we don't have data that

relate specifically to the topic . my own sense is that tech is enabling people to do new things and cheaper ways, and that is all positive for quality of life . i am a big fan of tech. i was in the tech industry for a long time and i see a lot of potential for tech to transform people's lives. david: what is your information to president trump over how the tech sector has field innovation? >> i appreciated the value of people who were not u.s. citizens and the impact they could make it, particularly in these high skilled engineering .obs when i look at the broader set

of numbers, the total number of people who come to the united istes under h-1b visas 65,000 relative to all people u.s., under visas to the it is a small number by percentage, two plus million come over all, 165,000 come on deck. of it is going into google and microsoft, but some is going to outsourcing jobs, the front end to outsourcers, for example india, so it is a broader and more complicated question, but based on a relatively small base of numbers. if you add all the new p visas, it is not a dramatically high percentage of the workforce. david: i heard you have an amazon echo. what is an upstart tech company

do in the face of a behemoth like that one, or microsoft a few years back, what is the best route to compete with the company like that? key is to find a place where you have a unique concept, product concept, and understand how it will fit the user, and try not to be in the place where the behemoth can logically and easily go. you don't want to be building something that would let her be done as a feature of the market leader, if you will, as opposed to an entirely new product, and less you are interested in having your company acquired by the behemoth. if we look at how amazon and , they had a going unique product concept and jumped on it quickly and drove into critical mass, and by the time that happened, it was far ,nough away that the behemoths

people weren't responding fast behemoths these new can grow up. david: your dad worked for ford and you drive ford cars, and we have seen the ceo going back-and-forth between washington a lot. is that a good thing and what is the role of government in encouraging innovation and entrepreneurship? day,ll, at the end of the i think business has to take care of itself when it comes to innovation. not that i either like or don't like a role for government, but it is the creativity of the people in the business that will lead to these innovations business execs can give input on tax policy, but at the end of the day, the number one drivers will be what the businesses do that are largely independent of government. caroline: uber has lifted the

vid on its financials. in an unprecedented move, the company showed the numbers exclusively with bloomberg and shows bookings more than doubled last year to $20 billion, net revenue was 6.5 billion dollars, while net losses were $2.8 billion. the revelation comes as the company's corporate culture comes under fire. our bloombergith technology reporter and brad stone. >> we have seen this movie before, right? , losses over $1 billion, $1.4 billion at the time, 50% of revenues, extraordinary. cooper has some advantages that amazon did not. it is a private company. a lot of people are still

willing to provide these companies money. cooper is expanding geographically as a platform, ubereats, kluber rush -- rush, so i tended to give these companies the benefit of the doubt. it has to grow into that loss and continue to show growth. what interested me is how murky some of the numbers are when you are looking at them. talk to us. the losses don't include stock compensation, automobile purchases. them as --ers to losses. they lost at least $1 billion in china, so we are looking at $3.8 billion, which is historic. it is hard to find a private company that has lost that much money. we are nothat, capturing the full extent of it. we try to look into the money

, so if you look at that, you can see the losses don't encompass the full extent of the cash burn. uber would say they are experimenting in parallel rather than in cereal. aty are doing everything once because investors are providing them the opportunity. uber has been able to try to do it all at once. spending,2000 dot there was a layoff of workforce, so there are dangers. caroline: investors have given them this cash and they have put it to work, and one investor is jeff bezos. >> jeff bezos invested early on,

so he probably, i don't know he would back this kind of company now. i guess we will see. this is a company that has gone out every year, the public scandals, and these numbers, which aren't for the faint of heart. i think we will see if they go back and braise capital, what that valuation is. the samet seem optimism is around ride hailing. if they can raise more money or we see a public offering, then we will see how investors react. maybe this is trying to distract us. is that your viewpoint? also, yet another push from uber to allow tipping in new york and california, do think that will be allowed? why don't they allow it? to readthink they need

ensure employees come investors, partners, that this company is not an floating and they think the numbers reflect well. lossess are going up, are flat, and that is what they will be looking at. on the tipping issue, i said i think they could launch tipping this year. they want to do it in the situation where they get credit for it and a way that is palatable to them. so i think it will be how theyng to see react. uber was not totally disowning the push, so it will be interesting to see whether they let new york be a test case, but there is soul-searching within the company about how to handle tipping. brad stonehat was and eric newcomer appeared that does it for this edition of the "best of bloomberg technology."

tune in for our exclusive conversation with the ceo of dropbox. all episodes are now live streaming on twitter. check us out at @bloombergtechtv weekdays. that is all for now. this is bloomberg. ♪

carol: welcome to "bloomberg businessweek." oliver: we are coming to you from inside the magazine's headquarters in new york. for starw attractions wars and avatar, inside disney's magic kingdom factory. with robert dek niro about how he prepared to play bernie madoff. carol: why the creators of this is spinal tap have been paid next to nothing, and that might be about to change. onver: all that ahead "bloomberg businessweek." ♪ carol: