♪ emily: i'm emily chang, and this is "bloomberg technology." coming up, apple's numbers before the most anticipated iphone launch yet. we spoke the ceo tim cook about a quarter. his thoughts, coming up. numbers forposts the quarter. the big focus on tesla's model three production, and whether the model can compete with its luxury cars.

and a square has a better than expected quarter. we will speak exclusively to the ceo jack dorsey. apple shares soared to a record high after better than expected revenue forecast. the figures calmed analyst concerns that the new iphone might be delayed. apple doesn't talk about future products, but in a phone call the ceo tim cook, key says it appears that more users are willing to upgrade about the new iphone. said to usid -- he that it appears more users are waiting to upgrade to increase media reports about the new iphone. he says that it seems they have been louder and more frequent than in the past. we broke down the guidance and earnings. >> there is a lot to look forward to hear. on the one hand, the market is going to grow by about 60%, so there is a lot of upside in that market. there is more to come should

there is a lot of upside to come with things like virtual assistant and home assistance. there are also all the services like apple pay. emily: he told me that over the last 12 months, the milestone of earnings have been projected to be met, but not this soon. >> yes, i think they have to be happy about that. it is an important revenue stream for apple as it will be for other competitors going forward. emily: what is your take on the broader apple ecosystem? we focus a lot on the iphone, and we know we are expecting a new one in the fall, but everything else is moving the boat essentially. >> yeah. i agree. it was impressive that in the third quarter when you saw iphone unit sales be basically

flat, but services like app store downloads and apple music subscriptions rose very strongly. so, the question for me is can the services revenue continue to grow quickly, even if iphone sales don't? how independent services revenue from the iphone? emily: on that note, everyone was focused on this revenue guidance, as it may give some indication on when the new iphone will start being accounted for in the revenue. what do you make of it? on the one hand, the services could make up for a greater portion of the revenue. but all the other hand, the iphone can come sooner than we think. >> services will move the needle back in the near term. apple is still a hardware company. 60% of revenue still comes from the iphone. that is there is category. emily: let's talk a little better about china. we saw a 10% decline

year-over-year, but that decline is slowing. last quarter was a 14% decline. when i spoke with tim cook about china, he said the results were very encouraging. he said that they thought they would improve some, but ipad results were strong and the services industry was very strong. that the iphone on the mainland was essentially flat, so they essentially feel pretty good. what you make of this? >> whatever tim cook says, the most important question for apple is, how will the next version of the iphone cell in china? and we somewhat i see, i don't see a lot of encouraging signs. this was the sixth order in a row -- this was the sixth quarter in a row where apple had declining revenue in china. apple got a big lift in iphone 6 sales in china. i don't know what the iphone defend is in china for the next

version of the iphone. to me, that is the biggest question hanging over the company. emily: we do look at the rankings all the time and there are those local brands that are now surpassing apple in china. >> one of the things to look at his apple gets 85% to 95% of the profits in iphone as hardware sales. won't ever be the number one smartphone maker in the world. the question becomes, how are they doing with china with middle-class or affluent? and with those i can buy an is oneem of devices point. the second thing that will guide how will apple doesn't china is how well they do with services and the chinese language and providing the services that the chinese population wants. >> something else that is interesting is that with the new iphone, we are expecting in the fall, we could see a four digit price tag on the highest price

iphone -- on highest priced iphone. even as competition in china is rising, the prices going up. our consumers going to want to pay for it? think anyone knows what the demand is going to be for an iphone that is in the $1000 to $14,000 range. some analysts follow the market in china, and they say price is sort of an interesting signal. that if it is expensive than it is considered a luxury good, and then people might want it more. however, i do not think anyone knows what the demand is going to be like for a thousand dollar and up iphone. emily: i want to point out a number of couple of things -- want to point out a number of things. out thatpointing enthusiasm for air pods. it is a lower revenue product,

but they are increasing production capacity and optimistic. >> yeah, there has been a six to eight week weight for air pods since they first launched. they should increase capacity, right? it's a great product. with the ipad market, that is a little bit harder. on the business side, is it going to compete with something like the surface or microsoft tablets? it doesn't quite have that functionality. it will be a bit of wait and see to see what they do with the ipad in the long-term. emily: last word. is the iphone all that matters? >> apple is the iphone company for the resealable future, yes. -- for the foreseeable future, yes. emily: in other earnings, sony's turnaround seems to be on the right track.

the company reported company profits that topped analyst's estimates. shaw -- sony saw strong demand. they showed a healthy music business, and increasing sales for their consoles and games. we will have more earnings later in the show, including tesla's record cash burn. how elon musk continues to spend big to be more electric cars to the road. plus, our exclusive interview with jack dorsey on square's booming business. and sky high tech evaluations and silicon valley's relationship with the white house. this is bloomberg. ♪

♪ emily: square's lending business is booming. i sat down with chairman and ceo

jack dorsey to ask him about what is driving growth. we talked about square's burgeoning market of customers. jack we realized recently that : we are not really competing with financial institutions and banks and traditional lenders. our average loan sizes $6,000. we are competing with people going to their friends and family in asking for a loan. and that is a massive market. emily: i also asked dorsey what the thinks of the skyhigh valuations of other tech companies. take a listen. , so: i am not an economist i don't know how to answer that question. we live in a market, and markets decided to value it at this particular thing, but there will always be evan flows -- ebb and flows.

that is not something we can control. we control whether people want to use something we are building. the answer seems to be yes, and they use it enough that people that asked for recommendations about what tools should they use? trying to get out of this nasty contract, where should i go? that is the thing we control and focus on. emily: you must have a keen insight into the health of the u.s. and the global consumer. where do you see people spending and not spending? peopleou know, we see going to our sellers, and we see purchasing and those trends continuing to be positive. and i think the great thing about square's business is that it is nondiscretionary. so, everything else can fade away, but you have to be able to make the sale. we feel good about what we are seeing in the economy and how we will continue to thrive and support that. emily: there have been a number

of reports about sexual harassment in the tech industry. people have lost their jobs. there is a new about the lack of women in tech. what are your thoughts on that? jack: it is something where -- it is a situation where we have to bring a lot more attention to it. our focus has really been on inclusion first, making sure we are building an organization and an environment, and a company that people feel like they belong, and people feel like they can contribute to. and they can feel a part of. thatso need to make sure it is not just an environment for people belong, that -- but where they can also contribute to decision-making. and that they can help make sure that they continue -- that they help own our outcome. emily: the gap between silicon valley and president trump still

seems quite large. what roles do ceos of tech companies play, and leaders like you, jack dorsey, can do in closing that gap? jack: i think we really need to speak up. if we cannot speak up, and not be open and transparent about how we feel about policy shifts, we are going to move backwards as a country and is a world. that is my role. that is her company's role and our industry's role, but it is every citizen in this country's roll -- really as well. i will use my experience to inform what i believe is right, and what i believe is necessary. emily: is somebody who runs a company that most a lot of money around, how concerned are you about not just economic, but political uncertainty right now?

jack: well, every entrepreneur or leader has to deal with uncertainty. we have to be comfortable with that. uncertainty,mic people talk about is not something i necessarily feel on a daily basis to affect my decision-making. the i am concerned with is economic disparity we are seeing, not just in this country, but around the world. -- wer goal as a company will have a barry's small part, but a part nonetheless, to continue to provide tools for people to engage in the economy and participate in the economy. and we will do our best to do that. that is what we are focusing on to try and help fix. we're not going to do it alone. but we are going to have a loud voice as we do. emily: last question. how does that impact where square goes next? you have been expanding abroad. where to next? jack we want to go everywhere. : we want to be a tool and service that is successful for everyone in the world.

we have a lot more friction in our industry because we have to work with banking partners and work with regulators. every local market has its own rules and regulations, so we are going to take our time because we want to do it right. we do not need to be first to market. we just need to be the best option out there. emily: are specific there with square -- that was our exclusive interview with square ceo jack dorsey. coming up, bitcoin's big split. how the currency exchanges are reacting. this is bloomberg. ♪

spoke with mark mahaney to get his take on what is ahead for tech stocks. >> the demand trends remain consistent. that was our 30th revenue

quarter and a row. 20% year-over-year for amazon. we have seen very consistent demand. investments are heavy and will be heavy the next year. these companies want to maintain these growth rates and they think they have a lot of new opportunities to go after, whether it is amazon talking about advertising revenue, ornette like spending more money to build out its international content library. there is no scenario under which margins are not want to expand here. emily: let's talk about advertising revenue. facebook and google still dominate the pie. i mean, is there any room for other players at this point? >> like a snap for a twitter? emily: yeah. that is a big sigh. >> yeah. it is. we call it the experimental budgets own.

they all want diversification from google and facebook. but in order to get much more from that, there is no one out there really getting $5 billion in ad revenue. you got a really proves your roi and come up with innovative advertising formats. snap has a better chance of getting there, but it is starting from a much smaller base. emily: snap has been struggling. are you worried about snap? >> we clearly do not know the stock yet. we will see what happens. emily: you are holding that? >> yes, we are sticking with it, because there are two things that the company needs to do. first, they need to reseller rate their growth, their daily average user growth. same thing with twitter. if the users decline, the stock will decline. snap these to get that growth rate week celebrating. they rolled out a self-service advertising solution. they need to do that to get more advertisers on the network and cause their ad revenue growth to stabilize.

there is no triple digit add revenue grower out there. emily: you think they can keep it up though? >> i think so. one, they are fixing their android problem. they were blindsided. like four or five years ago, facebook was with a mobile thing. emily: the mobile thing? >> yeah, the mobile thing. to make sure it's app is fully integrated on all android devices. the second thing we need to do -- need to do to continue to grow his keep rolling out better and better features. snap maps falls into that. that was a pretty cool feature. they have to do more of that. they do, they will grow. if they do not then i do not , think be a use will flatlined at best. emily: amazon forecasting quarterly loss for the first time in a while, being very

aggressive about moving into new investments like grocery. are you concerned? >> no, not really. 20 years of growth, investment, losses, gains, i think they have proven -- emily: big bets. >> yes, they are big bets. the best single trend is cloud computing and i was amazon's big bet. they had the third-party marketplace, the kindle family of devices has been pretty good. the echo devices, they have a home run on their hands. by the way, groceries is a very large, logistics business, and amazon is logistics. over time, they have built up the trust, at least for me. netflix, of course, spending billions of dollars on original content. now you have competitors like hulu now. do you think netflix's burn is sustainable? is it paying off? i will not side so much with

netflix. we have run surveys. regular amazon customers, about 50% of them are netflix subscribers. of prime users, it is 70% of them. i think what is happening here is the death of the big bundle. and consumers, especially the more advanced internet users, don't go into prime, and they are going to netflix. you got this huge, secular tailwind, the shift over to streaming and netflix is the biggest beneficiary of that. do you know why? they have great content, that is one. and the proof of that point is the fact they are going to add more subscribers this year than last in the u.s. we are not at the end of the s curve for netflix. emily: that was mark haney. history has been made in crypto currency. the number one digital currency, bitcoin, has split in this comes two. after a debate on how to scale bitcoin and increased block

size. the files in which transactions are recorded. causing a new strand called bitcoin cash. caroline hyde joins us from london to explain what is next. the split is philosophical in nature. it is about what they want to see bitcoin become. part of the ecosystem is wanted to see bitcoin remaining a sustained value. a safe, digital asset class. there has been a growing clamor for the ability to keep up and that transactions have become sluggish and costly and how do you scale? and they have been able to segue up to that in that they have gotten most ecosystems to agree byincrease the block sizes double. from one megabyte to two megabytes. that was not enough for a small group of asian entrepreneurs and

investors. they wanted even more scalability, going from one megabyte 28 megabytes. it happened today with bitcoin cash. almost like a stock split in the same way they have the same history, now we have two different currencies going into different directions. they are being supported by different digital technologies that align them. the protocol, the so-called block chain is not different. emily: so what does this mean , for bitcoin traders? caroline: a lot of volatility, a lot of question marks, a lot of hand wringing, and a lot of decision-making about if you want to back bitcoin cash or not. what we have seen is not everyone, the whole ecosystem, is going to back this to digital currency pair if you own did claim right now, you are allowed to get bitcoin cash automatically. but that is only if you have had your bitcoin stored in the

supportive wallet, in the supportive areas and companies that will allow you to have both bitcoin and get bitcoin cash as well. fred wilson, who is a backer of point base, saying i don't want bitcoin cash. keep it because i do not believe in the underlying technology for now. so, if you are a bitcoin user, you have seen a lot of turbulence, a lot of companies drawing their coins out of the exchanges, because they are not try to put it into a different exchange. for the time being, you are seeing a lot of people trying to work out where the prices go. i can to you about three hours ago, the first bitcoin cash, the new digital currency was mined. at the moment, it is trading at only about a 10th of the price of bitcoin original. what is next for bitcoin?

will be seeing were offshoots? caroline: it is interesting. so-calledivision, a hard split. that is why you have a theory him -- that is why you have -- saying wehere and are could see a new precedent being set. good we see more and more? impenetrablemore bitcoin? now, that is been undone. that is the key question, can is keep on happening? the strongest will survive. emily: bloomberg's caroline hyde there in london. tesla just rolled out the model 3, starting at $35,000, but will it attract the masses?

and all episodes of "bloomberg technology" are live streaming on twitter. check us out. this is bloomberg. ♪ is this a phone?

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♪ emily: welcome back to the best of "bloomberg technology." i'm emily chang. tessa started deliveries of the long-awaited model 3. the company said it has taken more than a half a million orders of the electric vehicle with people forking out deposits of $1000 each. so, while the car live up to the hype and appeal to the masses? take a look for yourself. >> the very first tesla model 3. 30 new owners are getting the keys to their cars tonight at a celebration at the factory in fremont, california. the big challenge will be keeping up with demand. the model three was unveiled to great heights last year. tesla's inroad to the mass market with a base price tag of

$35,000. elon musk has reaffirmed they will be turning out 20,000 model 3's by the end of the year, and 50,000 by the end of next year. it will be a hard task. >> friendly, we are going to be -- frankly, we are going to be in production hell. welcome, welcome, welcome to hell. [laughter] for at least six months, maybe longer, i look forward to being alongside you going through hell , and if you are going through hell, keep going. emily: some say the model three could be as transformational as the iphone and it may well be the most daring feat yet for elon musk. will it be just another electric car, or a car that will change the future of all cars? days after that event the company reported record earnings

, including a record quarterly cash burn rate. it almost doubled the $622 million in through the first up tor, up to the lead the model 3 roll out. covering all things tesla as details of earnings emerged. board, they spent less. they spend less than investors had feared. model 3 investments are through the roof. they installed the solar roof. the fears of cannibalization were not as realized. emily: let's talk about the cash burn. i am looking at the bloomberg. tesla spending $1.6 billion in the second quarter. they woulde signaled spend heavily to bring the model 3 to market, so they still have $3 billion in cash on hand to

give them to the end of the year without having to do any kind of race. emily: let's talk about production. he did say over the weekend when they unveiled the model 3, that he would be going into production hell. what is the trip through hell mean for investors? >> well, i mean, the trip through hell is on everyone's's mind. what does he mean? is there a supplier issue or a snafu? there was nothing in that any earnings report. emily: he is saying they can get through 5000 model 3's a week by the end at this year? is that possible? >> that remains to be seen. the cars that were handed over to employees were largely handbuilt so now they will begin the true beginning of mass production. 5000 a week from 30 or 50 is pretty steep. everyone is wondering what the ramp looks like and are there any potential roadblocks. and what does he mean when he says hell? they are sticking to the

aggressive timeline. half a million cars in 2018 and a million cars by 2020. emily: let's talk about inventory. are we seeing anymore the van for the model as model x is softening -- model s or model x is softening? >> when they released the sales figures this month they were on a drop, you see the rise of inventory on a balance sheet. what they have said is they want to get more model s and x's, out to stores. -- some stores are operating without any fleet models, and they have to have extra cars for test drives. that is an interesting question for the call today. is the rising inventory something to be concerned about or are you making sure that your showrooms have the latest and greatest? emily: in the upcoming semi truck? the model y. any new details? >> the model y is a crossover. they are looking forward to adding the semi to the fleet. that is supposed to be late september. emily: and what about solar panels, the solar roof, as well

as gigfactory. what are we learning there? >> they have started to install the panels for employees to fully test the before they roll out. it is interesting to figure out what is solarcity at this point? is the brand going away? there was a mention of this project in australia, which is a big energy storage project for south australia. emily when it comes to : deposits, what is the likelihood that all those orders for the model three comes through and are completed? >> it depends how long you are willing to wait and whether you will qualify for the federal tax credit or not. right now, you get up to a $7,500 tax credit on an electric car, but that begins to ratchet down once tesla hits a certain volume. the big question is, where are you in line? how important is that has credit to your pocketbook as you make this purchasing decision? if you live in a part of the

country that you will not get the car for another year, can you wait that long? emily: uber is getting more competition in bangkok. japan's line is expanding its taxi service to the city. the company will start offering its by the end of the year and will team up with the bangkok taxi cooperative network and initially operate 20,000 cars. coming up, hyperloop one get one step closer to its futuristic transportation reality. we will talk to the cofounders about this historic tech. and we speak to airbnb's global head of risk management on what the platform is doing to garner public trust. this is bloomberg. ♪

♪ emily: hyperloop one just completed the second phase of testing in the nevada desert. a prototype accelerated reaching 192 miles per hour. the pod lies above attract using magnetic levitation in a nearly airless to limit aerodynamic drag and allows for a top speed of 700 miles per hour. we spoke with the cofounders about what this means. >> we are now 300 people strong. up the last 2.5 years of

starting the company has been about improving the technology. now we have shown at hyperloop one that hyperloop is real and works, and now the move into the dawn of commercialization of hyperloop. so, as all the travels we have been doing in the conversations and dialogue and studies of governments around the world, we have shown in the videos you saw, the actual full-scale hyperloop working with the pod, traveling at incredible speeds, faster and faster. and now, we move on to the commercialization process of actually building this out around the world. emily: so, sherman, i have the ticket you gave me. [laughter] emily: to right hyperloop. when will i be able to use this? >> um, sooner than you think. but keep that ticket. that is a buried specialty, emily. you're guaranteed to have a ride on the hyperloop of hyperloop one. that is a promise from the both

of us. emily: so josh, what is the timeline? -- upill you have it open and running for cargo and passengers? getting it into mass manufacturing, that is what is next for us on the engineering side. and we think we will be able to do that by the 2020 one timeframe. emily: sherman, how do you overcome cost barriers and safety concerns? sherman: that is a great question. basically, the way we have it -- architected the hyperloop is to make it the cheapest, fastest, safest, cleanest form of public transportation in the world. the way we designed it, the reason it can be cheaper is that the motors we designed only have to be on the line every 30

kilometers, where as other solutions have continuous maglevs and motors that are way more expensive to operate and maintain and build out. so, what you will see in the future, which is there a similar -- which is every go similar -- which is very similar to what we have seen with paris and brussels being connected with high-speed rail, there are not even any flights between those two cities anymore. everyone is taking the high-speed rail route. what is interesting about hyperloop one is that our solution essentially will be an ip solution and a control system and automation solution. so be want to engender thousands of companies around the world that are building these hyperloops around the world using our technology. emily: now, elon musk is the one who came up with the original white paper on hyperloop technologies, and she has said he has said -- and

that he does not want to commercialize it. now he has just waited "just received approval to build underground new york, baltimore, washington dc, new york to d.c. in 29 minutes." what do you make of this apparent push into hyperloop with this company? sherman: hyperloop one is vary focused on getting the real hyperloop out to the world. very big plays. infrastructure is difficult. to move forward. you need collaboration of governments around the world. we have been in deep discussions with governments for a long time. and we can build it over ground, underground, tunneling is just one of those solutions. very expensive to just do tunneling. we want to have a multi modal solution and spread that around the world. emily: so, we are hearing from sources that elon musk may want to build all the components.

what would it be like to go up against him? -- we aree are very being able to do this in 2.5 years, have 300 brilliant minds -- we are very focused on execution. there are many, many partnerships in that space to be pursued. has been somere turnover, particularly on the tech engineering side. how are you handling that? no -- we have had no shortage of people interested in working with us. we just brought in a new head of hardware engineering who came from google as well as a new software lead starting in about a week from now. so, we are seeing candidates knocking down the door. emily: the cto moved on and there was a lawsuit and i am curious, what you learned from that experience and how you are moving forward? sherman: you know, we are incredibly focused, as josh

said, on building the real hyperloop, building it around the world as we have shown with , the xp one pod, traveling at those speeds and breaking records. we are very focused on the future, and that is all we care about. emily: talking about the future, sherman, i have to ask you, you are one of the earliest investors in uber. what are your thoughts on --vis's recently nation travis kalanick's recent resignation and who do you think , is the right person to lead the company forward? sherma sherman i think uber is one of : the great companies of our generation. it impacted the world and the scale of its reach, it has lessons to teach and that historic run. it is the fastest growing company in history. at those speeds, they will have some friction and they have taken that seriously. and i think it is one of the greatest opportunities for an

incredible leader and ceo to get to come in, and helped lead a company that is at the forefront of where transportation solutions are going. emily: -- emily: that was hyperloop one cofounders sherman and josh. airbnb plans on doubling down on .hree key areas - airbnb continues to come back complaints on its screening process for host and guests. we spoke with nick shapiro. nick: there is a crisis of distress right now. people are trusting less in institutions and trusting in each other more. and airbnb was designed specifically to build that trust. we went back and looked through how we can leverage that new phenomenon, and that is when you started to come up with -- it is

about a hierarchy of needs and , we need to facilitate that trust. emily: so, what does that make? you are using technology to facilitate it. yeah, absolutely. first and foremost, people need to know they will be safe. we do a number of things to use technology to do that. we risk assess each reservation. we run global watchlist checks. we background check hosts and guests in the u.s.. just being safe is not enough. we use technology to build connections. there are detailed profiles. there is a messaging system where you can learn more about each other and there are reviews of previous history. on top of that, we know that people need to know they are not alone. airbnb is there for them. so if they get to a listing, and it is not what they wanted or as advertised they have someone to , reach out. emily: you have a national security background. i am curious about how your experience informs to what you are bringing to airbnb, and how you can complement that? nick: great question. airbnb, the tech sector sharing

economy is filled with some of the most optimistic people in the world. emily: exactly. nick: brilliant. and also vary optimistic. -- and also very optimistic. i bring a different light to that. i am way more cynical. it is because of the previous experience i have had. but a healthy dose of cynicism, matched with optimism and brilliance is a good partnership. emily: the hotel lobbying groups are upping their attacks on airbnb. there is one recent ad connecting the platform with terrorists. howdy respond to that? nick: it is disgraceful and despicable. i know people who have lost their lives. and do have an issue like that politicized, to make a business point, or to continue to price gouge their consumers, is very hurtful. safety is the number one priority to airbnb. trust is the fundamental currency in the economy and what we focus on the most.

we do things like background checks. hotels don't do that. emily: talk to me about background checks. there was a recent report of a woman who was saying she was sexually assaulted by a host and she claims that a background check would have revealed that this host had been arrested in the past for battery? he denied the allegations. you know, how are you handling this case, and what do you actually tell guests about their hosts and vice versa if something is flagged? nick: that is a good question. first, let me say, the behavior of this woman encountered allegedly is abhorrent. we removed the host from our community. background check was done on the host in question, and there were no prior convictions. when you do a background check in our recent charges, previous charges, but no convictions, it is hard to hold someone accountable if they were acquitted of an offense. emily: is it making you think differently about the process? every incident should make

you think. one incident is one too many for us. safety is our number one priority. we are always going back and saying, should we have done something differently? we will do that every time something happens. emily: lastly, you are getting into these magical trips, and connecting actual people who are going to take you around for a more well-rounded experience. this is increasing the amount of time that guests will spend with these people. what does that mean in terms of trust and safety? nick: you know, i think what it means is we need to work extra hard to kill back the curtain and let folks know what we do to help build this trust, and what we do to keep them safe. we want people to make informed decisions, and want them to know that when they are signing up for an adventurous experience, we cannot eliminate all the risks, but we can tell them exactly what we do and make sure , they make the best decision for themselves. emily: that wasn't shapiro. coming up, facebook is betting

big on hardware. how it is incorporating ai into a video chat device, next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio at the -- on the bloomberg radio app be. this is bloomberg. ♪

♪ emily: facebook came out with numbers on instagram this week. the company says it young users spend an average of more than 32 minutes a day on the app. for 25 years old and older, usage is more than 24 minutes a day. instagram is crediting much of the growth and engagement to its story feature which was launched a year ago in answer to snapchat. instagram's version has more than 250 million daily juices. facebook is said to be developing a video chat device for the home. it would mark the first major hardware product. the product of the announced as

soon as next spring. we spoke with sarah frier tough to break the story and julie, principal analyst at forrester. >> this is going to be basic way video chat, facetime, as you know it, on steroids. it will be a big screen, the size of a laptop on a stick in your living room. that will have a really high end camera, that will allow you to talk with people as if it is a more immersive experience. one of mark zuckerberg's goals for the future is to bring people closer together. they want to come up with technology that would prevent us from having to be tethered to our phones. that we could be in a physical environment, and enjoy our lives, but still feel like other people can share those moments with us. that is the high level. emily: julie, do people want a device like this?

julie: i think facebook has to make a play in the hardware space. if you look at where the future growth is going to come, you know, we have 33% of consumers using some kind of virtual assistants or a device in a home today. 8% using a hardware device. voice services and services like , are absolutely critical to future digital experience and facebook has to make a play or be left out. emily: sarah what else do we , know about what they are working on? and how they position themselves against google and apple and other services? sara: first of all, this boys touchscreen device -- this voice touchscreen device could get a lot more fancy. you could add a 300 60 degree camera. the camera they are working on has this center technology that can lock in on things that move. say if your grandmother is

calling and to talk to your kids, he can hold up a painting, and the camera will follow it. the other thing that facebook is working on a something similar to the google home and alexa devices you are talking about. canre simple speaker that use facebook power and the ai system they have been working on. we have heard from our sources that kind of thing could be killed considering the competition in the market right now. emily: ok, julie, if all four tent giants are doing the same thing with slightly different tweaks who is in the best , position to succeed or is it anyone's game? julie it is still anyone's game. :everyone has their strengths and weaknesses. building hardware is not hard but assembling services and doing voice with language generation and understanding is very, radel hard to do. -- very, very, hard to do. google knows a lot about our day-to-day lives, apple has a great connected ecosystem of

products, amazon knows about my shopping and music habits, facebook knows about my social media habits. emily: facebook doesn't make hardware, right? julie: they do not make hardware very hardt is very, to do. the secret here is in the set up for ease-of-use. and how well it is done. this is hard to do. only 8% of consumers have one of these devices, and it will be something that will find in every one's home in the next five years. that does it for this edition of the best of "liberal technology." we will bring you technology throughout the week including earnings from his knee and snapchat. remember all episodes of bloomberg technology are live streaming on twitter. check us out at bloomberg tech tv. that is all for now. this is bloomberg. ♪ who knew that phones would start doing everything?

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♪ on "bloombergup best" the stories that shaped , the week in business around the world. another staffing change rocks the trump west wing. apple soars are seeing bright times ahead the barrels of oil , keeps rates low, and a stronger job report. >> the u.s. has a strong economic report, but i do not think it moves markets much. alix: the dow breaks through 22,000, so, where are stocks going from here? >> dow 30,000 is going to happen. >> the time to sound the warning is when everybody is making a lot of money. alix: from financials to commodities, it is a peak week for earnings season.