♪ >> you are watching "bloomberg technology." let's start -- start with a check of your first word news. president trump chooses jerome powell to become the next member of the u.s. bank. if confirmed by the senate, powell will succeed janet yellen when her term ends in february. president trump once the gop tax overhaul signed into law in time for the holidays. pres. trump: we are working to give the american people a giant tax cut for christmas. we are giving them a big, beautiful christmas present in

the form of a tremendous tax cut. it will be the biggest cut in the history of our country. say the planats primarily benefits large corporations and wealthy investors. trump's national security adviser says north korea could be returned to the list of countries the u.s. believes sponsored terrorism. it comes on the eve of president trump's trip to asia. it kicks off on friday. or trump campaign chair paul and his at his long -- associate rick gates will remain on house arrest through the weekend. a judge declined a request for manafort -- from manafort's lawyer for gps monitoring. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪

emily: i'm emily chang. this is bloomberg technology. applebee's estimates -- apple beats quarter estimates. details of my conversation with him cook at the -- as they clock winds down to the official start of the iphone x era. alibaba shatters second-quarter forecast on earnings day and plans to go full steam ahead. how china's e-commerce king expansion into new businesses helps double revenue. my wide-ranging conversation with former twitter ceo dick costolo. his take on holding big tech accountable for fake news on their platform and intensifying the crackdown on trolls and bots online. but first, to our lead. that is apple. out with quarterly earnings. the company forecasting holiday sales that exceeded estimates, suggesting strong demand and few

supply issues for the nine -- for the iphone x. shares hit records is weak and continue to rise in late trading. the iphone x going on sale in stores worldwide starting now. we have actually got live pictures of the apple store in sydney. these people have been waiting than 200vernight, more folks waiting for the iphone x. they just open the doors. .onsumers walking inside employees clapping. lots of photographs happening. people waiting outside of stores in tokyo and singapore to get their hands on this newfound. joining me in the studio, julie ask. julie, let's start with the numbers. they look good. especially the forecast. which means the outlook for the iphone x as of now is strong. julie: i think so. everything looks to be that way. i think it is a bold move to sell a device for $1000. a perv -- approves demand for theire devices is strong.

suggests some supply issues. i did ask him cook about this when i spoke to him on the phone moments ago. he did not seem too wary. he said his -- this is the most advanced iphone ever. we are getting started. i'm happy with how the ramp is going. i think we will make reductions in wait times. he says 10 a or tomorrow. we can expect to see that wait time go down. alisa: i think that is the -- julie: i think that is the case. no organization builds capacity to meet peak demand. they have been producing these devices for a while. apple meets or beats expectations. while they may be setting expectations at four to six weeks, i would not be surprised emily: if they got them sooner than that. emily:what is your take away when you look at the numbers knowing that this is a quarter coming up, we are looking at people in line for their phone in sydney? julie: i think it is exciting

for apple. when you look at the iphone x, that certainly represents almost 70% of their revenue. it will be interesting to see the details of the earnings release in terms of the other category. -- i wellpoint point will they breakout devices like that? keen eye one is a their services business to see at what extent that is growing. emily: they grew 34% year-over-year. the fast as it has ever grown. how long can they keep up that kind of growth? julie: certainly it is hard to get a big gross number. there will only be more momentum because they more devices i own, if i own a watch, smartphone, tablet, the homepod when it launches and december, there is only more incentive for me to sign up for things -- services. this ecosystem of devices begins to play in their favor. let's talk about china.

apple return to growth in china. there have been questions about whether people will want to pay up for a phone that is this expensive when you have alternatives that are at -- half the price or less. tim cook said we have returned growth there. the mac was strong. our best quarter in mainland china ever. our services hit an all-time high and china, double digits and china, the other businesses are doing well. specifically of whether people will buy the iphone x, he said we will see but i suspect china will really love the iphone x. julie: i think there is no doubt they are doing well. jaded thane is more we are. this has been a halo device. this is like going back to the early generations of the iphone one or two when people camped out outside the stores. what you may see as there is a lot of demand for this product. what we may see is a slowdown and how frequently i refresh that. $1000 costs what my laptop does. going to see people get closing to a 30 month cycle

rather than a 24 month cycle? so they can justify the cost for the month fight month basis. emily: tim cook is pleased with the sails. are you concerned about the iphone x cannibalizing sales of the iphone 8? julie: apple is good at this. they bring out a new product. there are two new products. they are good at adjusting the prices on the other products that have been out on the market longer. the rollout watch happening around the world over the next 24 hours, what will you be watching for? don't know if there is something specific we are watching for, but i will be interesting to see two buttocks and they release numbers on what -- anecdotally, the demand seems to be strong in san francisco. alisa: we are listening -- emily: we are listening into the earnings call. you will be listening to that call. a will be catching up with

call throughout this show. thank you. we continue to watch the price of bitcoin move higher. surged $7,000. the latest boost in the price said after the cme group it plans to enter it is bitcoins future by the end of the year. earlier on bloomberg television, goldman sachs ceo finds his outlook on the cryptocurrency. >> i have a level of discomfort with it. discomfortvel of with anything that is new. i have learned over the years that a lot of things work out well that i do not love. emily: meantime, another banking ceo commented on bitcoin. speaking at a news conference in thech, tidjane thiam called digital currency the definition of a bubble. coming up, we will discuss alibaba's dominance in the chinese market as the company turns in another blockbuster earnings report.

break, take another look at this live shot from sydney where the time is friday, 8:00 a.m., the iphone x on sale at the apple store. this is bloomberg. . ♪

♪ of monsterr a year growth, alibaba has raised its outlook for full year revenue growth. this is after china's biggest company blew past for cast -- forecasts. former reaction, we are joined by kevin calendar -- kevin counter. alibaba is a top holding in the index. what was your biggest take away?

biggest takek the away was acceleration. it is amazing that a company of that size can grow at the rate it is growing. the growth rate has accelerated from two months ago, it was growing 40%. lots quarter it was in the low 50's. this morning with a 61%. emily: what are your thoughts on the retail plans? kevin: i think it makes a lot of sense. you see a lot of the same things happening here now where amazon has bought whole foods, gives them distribution points, physical locations in a more diverse area. both j.d. and alibaba have been aggressive in this regard. both are partnering with gas station operators. it is exciting and a new chapter of online to off-line. looking ahead to singles' day very same. how big do you think singles' day will be this year and how significant? kevin: one of the things that has been interesting is the singles' day growth year over year have not been as great as

the annualized numbers. we are forecasting a conservative 20 billion to 22 billion. it could exceed that. certainly, we will be at least 20, and possibly 22. one of the things that is exciting about singles' day nowg physicalgoods. you may have seen john and insurance when public a couple months ago. alibaba is an investor in that. million return insurance contracts that day alone. something like 13,000 a second. i think it will be an exciting singles' day as it is. think 61% growth as the quarter had. emily: how do you think about the future of alibaba in the context of a chinese economy at large? how optimistic are you that the chinese economy will continue to grow? i am very optimistic and confident it will continue to

grow. the rate will slow down as we have seen in the last decade. it will go from 6.5% to 6% to 5%. breadth of- involvement, a lot of people -- i think it is not just the e-commerce with alibaba. it is alipay, payments, physical locations. i think there is a lot of growth still left for the sector and alibaba. they: the ceo was us about outlook for subscribers. did not give a straightforward answer. but talked about how the program is different from amazon prime. what is your outlook? kevin: you're right. they did not give very clear guidance. are goingase numbers to have to flatten. they have got a pretty decent percentage of the population. i think flattening will be the

curve in terms of members. spent byof amount members, i think that number has a lot of room to go up. and in two different directions. surging.ares have been can the share price continue to grow? kevin: in the long-term, share prices follow earnings. in the short-term, they follow sentiment. i think valuations are still quite reasonable. if you are looking at the whole sector of emerging-market internet companies, they beat 35 to 38 for alibaba urine about the same looking forward. 60% revenue growth for alibaba and 40% growth for the sector. on a pe growth bases, it is about one where is the s&p 500 has a pe of 25. and has less than 5% revenue growth. think investors would admit to long-term timeframe will not do well. emily: how much growth are you expecting to see in the cloud and how critical is that cloud unit two alibaba's future?

in theirey announced quarter, i think the cloud and even here for amazon, the web services, i think both of those businesses are still very much in their early stages. i know as an entrepreneur, i have about two -- i am about to send my first cloud related deals with amazon web services. i think it is probably still quite early for that business in china for alibaba as well. ofly: kevin carter, founder bm qqq, alibaba one of the biggest holdings. thank you for stopping by. the bitterer in legal battle between apple and qualcomm. qualcomm has sued apple accusing them of failing to abide by the terms of the software license. they filed the suit against apple wednesday in california state court in san diego. the two companies are embroiled in an escalating dispute over

technology licensing fees that qualcomm charges for patons the covers the basics of how phone systems work. apple says qualcomm is charging too much and is leveraging its market position in chips illegally. coming up, house republicans unveil the tax cut plan today that impacts big taxes immensely. we will give you the details. that is next. take another look at this live shot from inside the apple store in sydney where current time, just after 8:00 a.m. on friday. the anticipated iphone x on sale now and around the world over the next 24 hours. we will be watching. ♪

emily: president trump said today that semiconductor broadcom will be returning its headquarters to the united states from singapore. hot can join the president in the oval office for the announcement where the president town said the amount of money that will come into the u.s. as a result of the deal. pres. trump: they will move back to the united states and to the united states is something that is very special and important. you have been seeing this happen and numerous companies minimum expansions and sometimes plans. with this commitment, more than $20 billion in annual revenue will come back to our cities,

towns, and the american workers. republican leaders rolled out their sweeping tax plan in washington this thursday cutting the corporate tax rate to 20% and reducing the number of individual brackets and eliminating the estate tax. several of the biggest corporations in the u.s. would no longer be able to escape taxes on the trillions and overseas profits they have accumulated. estimate, u.s. companies have stockpiled as much as $3.1 trillion offshore. the largest stockpile belonged to apple at more than 200 billion dollars followed by microsoft, cisco, alphabet, and oracle. joining us now with how this impacts big tech and center capital, mark milian. what does this mean for a company like apple? a lot ofy generate their profits locally. the 20% tax rate is a good thing.

they also have an immense amount of money overseas. overseas cash is a big source of concern. they are going to continue to tax foreign subsidiary years going forward, assuming the tax plan passes which is the big assumption. not great for big international companies keeping long money overseas. emily: apple has nearly $250 billion overseas. -- we are looking at a rate of as high as 12% when we thought it would be close to 10%. bloomberg has been talking to analyst that say it is business unfriendly. i spoke with the cfo of apple if themoments ago, ahead of earnings call, he told me we have always been a strong advocate for comprehensive corporate tax reform. it will drive investment in the u.s., job creation in the u.s., however he said we do not know the details.

given the gridlock in washington, what we see now is nothing close to what we will see lake -- later. mark: i think that is key. they are probably telling investors to not worry too much. this is not even the final tax plan. they will continue to make markups to this. it may not even pass. they have a very ambitious month and i have to get this through which is kind of crazy in the world of washington. explain the impact you expect us to have on the private markets. as it stands now. say this plan we see now is what will you will see. mark: it has a lot of great things for private companies. for example, there was a lot of carry interest which would have affected a venture capital very much because they make their compensation from these carry interest investors. that did not show up in the bill. the venture capital trade group in anso told my colleague

interview that they are expecting changes to the way that startup employees exercise stock options which allows them to do for when they have to pay taxes on a huge chunk of their compensation. which they get in stock. is a great thing for a startup employees out here. caveat isexpected this tax on university endowments which are huge investors into venture capital funds and hedge funds and private equity. they will be paying 1.4% tax. they are a little freaked out about it that they are targeting universities. emily: what does it mean for individuals? valleycally silicon billionaires. mark: they tend to skew liberal anyway. get the high-end tax break that the republicans,

especially the president and the leaders in the republican party have been pushing for in the senate. also, the exemption for electric cars getting tax breaks, all the tesla lovers out here may not be able to get their tax break. emily: in terms of process, what are we expecting in the next months ahead? a lot more gridlock, debate? mark: it will be a race to the senate to finish. they are describing this as a water down tax bill -- watered down tax bill. there is going to be a lot of fighting over what gets pulled out. and among the wider republican party in the house. that is just the house. emily: mark milian, bloomberg tech team, thank you for breaking it down. declined, big tex ceos to testify before congress this

week. we find out what twitter's former top executive thinks about what this -- things about the capitol hill hearings. live shoter look at a from inside the sydney apple store. the current time, almost 8:30 a.m. the highly anticipated iphone x on sale now. apple ceo tim cook is speaking in the company's earnings call as we approach the holiday season. he said, we expected to be the biggest quarter ever. we will continue to monitor headlines from the call. we are listening and now. this is bloomberg. ♪ who knew that phones would start doing everything?

entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com.

>> it is 11:29 in hong kong. latestjuly with the first word news. has republicans have begun rolling out proposals for tax reform, something the president trump says will be a christmas present for america. pledged actionan that he sends his ironclad political will to revamp the tax code for the first time in three decades. the plan includes cutting the corporate tax rate to 20%. as he prepares to leave for a 10 day visit to asia, president trump has praised china's xi jinping over north korea. trump told fox news that the

chinese leader has been helpful and imposing sanctions on kim jong-un's regime. he believes the north korean nuclear problem can be solved. pres. trump: president xi has terrific, most people have been saying, whether it is cutting the banking system offer north korea, cutting the oil to north korea, cutting supplies, i must tell you that north korea is a thing i think we will solve. if we do not solve it, it will not be very pleasant for them. it will not be pleasant, i guess, for anybody. spacey is said to have been dropped by his talent agency after new allegations surfaced about his behavior on the set of "house of cards." we are being told they parted ways with the shamed actor. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

this is bloomberg. we are entering the last 30 minutes of the trade in hong kong, to give you a sense of how asia is trading. there is no consistency, fairly clearly. we are poised for a fifth straight weekly gain. higher, acrossit the currency markets, you will notice of the aussie dollar, these are the big movers. nothing much as far as g10 is concerned. starling as up a little bit from the open. the commodity markets, nothing much here. we are also looking at a bit across crude. the big story, on markets. massive gap across sovereigns here. let's have a look at this one. for any of you guys wondering why global equities have not sold off yet, despite four rate

hikes, why conditions are loose. see, the correlation. you can make something out of that. as conditions remain lose, do expect the equities to remain well dipped. interesting chart. have a look. ♪ yesterday, lawyers for twitter, google, and facebook were being grilled by lawmakers. while their councils were forced russianr about possible interference occurred on their platforms, their ceos were notably absent. i spoke with former twitter ceo to get his thoughts on what went down before congress this week. and began by asking how much responsibility these three companies bear? >> i think it would separate into two things. i think, they have responsibility once they have understood the problem.

to discover the scope of it and go at. i think they are doing that. mistake towould be a say that they bear responsibility for missing it. this is stuff that has come to light after the election. it was not anything i think anyone knew had happened in previous elections. make sure we get out of it this time. everyone has been seemingly surprised by it. it is now a matter of doing the detective work to figure out how deep and brought it was and go attack that as quickly as possible. emily: twitter has announced some changes. what changes do you think twitter should do? >> i think jack has made a pretty broad and aggressive statement about we will be more transparent about political ads that are purchased. and we will be more aggressive on abuse. i think those are great steps. ceo,have said, when i was i would like to see us be more aggressive. the ads are one thing, but some people say the ads are

not the problem. it is the number of fake. accounts. the number of people pretending to be somebody else. saw twitter said yesterday in the hearings that they think 5% of the accounts on the platform are bots. emily: do you agree with that? some people think it is a lot more. >> i trust the folks inside the company. if they are getting -- giving a number publicly in front of a senate and house hearing, i -- i believe that is the correct number. ,he thing you have to remember sometimes there are researchers who say the numbers are higher than that. here is our data. they are going off these raw api feeds. i mean that they are looking at the tweets coming through these programming interfaces before twitter delivers them to users. emily: is it true that to some degree, these networks are essentially ungovernable? you have hundreds of people

trying to monitor more than 300 million accounts. >> no. i do not think that is true. i think you can apply all sorts of machine learning techniques. and other kinds of algorithms to do the things you should be doing and be doing a better job of. they protecting the community and making sure that the information that is being delivered on the platform to the greatest extent possible is not foreign propaganda, and fake news to use the term of the day. emily: keith was on the show yesterday and he tall -- called these proceedings fraudulent. >> that does not surprise me. emily: he believes it is ridiculous to blame these cuts -- these companies for potentially swaying the election and spreading this information when there is a broad spectrum of miss -- of what

misinformation actually is. what do you think? try to take a more nuanced approach to the answer. on the one hand you could say people lie on tv all the time. you can point to one or two news networks and saying that was not remotely true. facebook, twitter, google's problem, it is everybody's problem. my position is a little bit more, we have to take responsibility for trying to prevent this from happening again. as the leaders in the technology field that are delivering a letter of this information to users using algorithms that we think are best suited to deliver them the right information, we make -- we need to bear responsibility for addressing this. i do think -- i was very proud of twitter's counsel who was and is one of the more ethical people you could ever

meet. i do think it would have been better if those hearings were more about problem solving and finding solutions and less about political theater. you get these long-winded statements that come with questions in the form of an accusation that seem to be designed to make the person answering the question look either complicit or stupid. choose one. i would like to see them be more about let's work together to find solutions and problem solve instead of blaming people and trying to get on the evening news. emily: do you think twitter is a media company? >> it certainly is in the media business. there is a sense in silicon valley that these companies are -- andms and only risk only responsible for distributing information and not making editorial decisions. the fact is, and i think jack has acknowledged this, is that these companies, all of them

come youtube, twitter, facebook, make editorial decisions all the time. this does not meet our standard for nudity or pornography or whatever so it can stay, this one does not need it so it has to go. need tothese companies admit, if you will, we make editorial decisions all the time and we need to live with that and understand that being in the media business, even if we are a technology company means we will have to take more responsibility for the editorial decisions. emily: what are solutions as you see them? you know how hard this is. dick: listen, let's be clear. fromds are not coming uncle vladimir wanting to pay -- it is not that simple. i do think that you should probably only take political ads

from organizations that are registered in the country in which the election is taking place. that seems like an easy one. and things like that. electionot let the atll outside the bounds of th region in which the election is taking place. extend- or its influence out of bounds. that seems like a simple and obvious one. the problem with legislation around just things like transparency are that the organizations are not going to the formerlves like soviet republic of so and so. they will name themselves something that sounds like, hey, that sounds like the iowa or grass-roots republican organization or democrat organization.

it has to be more about making sure the organizations themselves are registered and paying taxes and filing their forms, etc., in the countries or regions in which these elections are taking place. emily: you have been vocal about harassment on these platforms. twitter has said they are going to change the way they approach rs. they will be more transparent. too in the wake of the me campaign. the account getting suspended as she was talking about being sexually assaulted. do you think it is to do little -- it is too little, too late? dick: i think it is a problem they should address. they know they need to address it. they should be more aggressi in addressing it. same was true when i was ceo. i do not think it is too little too late. it is one of the most vital and important platforms in the world. it is literally the way to get information or your opinion about something out in a moment.

it will be that way for years to come. get more aggressive now. emily: is it a matter of being more -- dick: let me have -- add one thing. the word used is transparent. ist would also be helpful for these organizations to provide context for why a certain decision was made. it is one thing to say, we made this decision because of this specific tweet. then people might draw the conclusions. it would be helpful -- i get how hard this is comey you could spend all day doing it, but it would be helpful to sake we made this decision about this content, for these kinds of reasons. all yourt not solve problems are answer everybody's questions, but at least it will give a better understanding of what is going on and why some of these issues are as challenging as they are. emily: that was my interview with former twitter ceo dick costolo.

the parent company of bloomberg news is developing a global news network for twitter. american lawmakers are not the only ones concerned about alleged russian interference, the u.k. elections regulator is looking at whether russia tried to use social media to illegally influence the brexit vote. the commission said it is speaking to facebook and twitter to see who paid for political advertising in the run-up to the june 2016 referendum. coming up, two of the major players in the delivery world are heading in opposite directions. what do latest numbers tell us about hello fresh and blue apron. we continue to monitor headlines . here is what tim cook said about the company's explosive growth. >> our entire wearable business was up 75% year-over-year in the fourth quarter. in fiscal 2017, already generated the annual revenue of

a fortune 400 company.

emily: blue apron is struggling to send the bleeding since it went public. the lowest level since it launched its ipo in june. this despite third-quarter revenue beating analysts estimates. a forecast shows growth is showing dead. blue apron is facing competition from competitors like hell a fresh and amazon. the company is reeling from recent rounds of layoffs and problems getting their fulfillment centers in order. joining me to discuss his alex barinka in new york. alex, talk about the latest stock dive. alex: today was not a great day for blue apron on their third-quarter earnings report. sales beaded estimates but those estimates came down as folks are

not too optimistic about where this company is going. when i looked at the actual results, a few things jumped out at me. the first is you have to remember, this is a company that on its marketing spending. when it comes to customer acquisition, it is important for blue apron to spend marketing -- to continue to spend on marketing. spending on building out their operations, they have actually spent less on marketing as revenue. you can see here, 24.8%, that was the quarter before the ipo. that is the share revenue they spent on marketing. the estimate for the fourth quarter worked out to be around 15% of market -- of revenue going to marketing. why is that important? when you look at the number of customers and you look at the amount of customers the company is losing, pre-ipo they were sitting pretty at one million customers.

this past quarter, the third quarter, it is closer to 856,000. none of those things are good things for a money-losing company that is now jockeying against the likes of amazon and has a fresh competitor, hello fresh, across the pond that lifted and raised cash itself. what do they need to do to turn the ship around? alex: they talked about building out this the center in new jersey. they scrapped plans for another location in california. a lot of talk today was on improving margins and pushing profitability so that they actually have capital to put to use as they continue to build. that would give them the ability to spend more on marketing and to spend more on acquiring customers as they go forward. placeg to that profitable is important. but again, the stock dive today, some of that has to be because

they said today their guidance for the second half of the year for net losses, they actually expanded that to a midpoint of $135 million in the second half of the year. that is down by $10 million more than what they thought a quarter ago. emily: id think hello fresh is getting a more positive reception? alex: i think back to what hell afresh has said, they say we want to be profitable in 15 months. they are coming out confident saying we are moving into the u.s. market. for these companies, a lot of on the logistics operations. blue apron has stumbled on that with problems with their the film and center, with these unexpected problems shutting down plans for the california center. hello fresh teams to have more of their house in order. if you have the ability to build your operations and pushing from hell afresh's market in -- hello fresh's market in europe, you have a better chance of

competing with smaller markets and the specter of amazon with their new asset, whole foods. emily: alex barinka, from her new york, thank you. up, more highlights from the apple earnings call which is starting to wrap up. check out this live shot above the apple store in sydney. their hands onng the iphone x for the first time ever. we will talk about demand. there are lines in tokyo, singapore, and around the world. this is bloomberg. ♪

>> we ended the quarter with 268.9 billion in cash plus marketable securities. a sequential increase of 7.4 billion.

94% for the total was outside the united states. emily: that was apple cfo speaking on the apple earnings call moments ago. apple reporting reports -- reporting that demand is high, expectations may be higher with lines forming outside stores around the world. we have been watching people get their hands on the phone for the first time in sydney. and monitoring the earnings call. ceo tim cook says he cannot predict when supply will meet demand. joining us now, mark gurman who covers apple. he has been listening to the call. he has been live blogging. what are the takeaways? >> it is interesting, tim cook pretty much said they do not know if the reason the ship times are so long on the iphone x is due to low supply or high demand. my prediction is it is a mix of both. a lot of people want these

things and it is difficult to produce because the screen tech as well as the 3-d face recognition scanners. emily: cook told me he expects wait times will go down. today or tomorrow as they get a better handle on things and he said he is pleased that she is pleased with the ramp up. we are looking at live shots of the ramp up. they are waiting in tokyo. they are waiting in singapore. when will we have a better idea of how supply and demand will matchup? because ay i think couple hours ago, i notice on apple's online website, shipping times in greater china, germany, italy, if you other major regions including the united kingdom and australia are seeing shipping times reduced to 32 five weeks. -- three to five weeks. hong kong, we are seeing unavailable status on the

website. in the u.s. and canada, we are week shipping six time. there was an important question asked about pricing and the fact that apple now has a range of prices for the iphone x. $360 to $1000. what is it their actual strategy? strategy is interesting. i think they have price points for all sorts of market. the $350 base price point, to us the united states, that might not sound like a lot of money for people. but in places like india and other regions, developing markets, 350 dollars is quite a bit of money for a phone. we will see if they make a cheaper i found below that price for those regions to grow. someone was asking how they will grow further in china. they keep saying they will double year-over-year in terms

of revenue but making youtuber phone would help that. certainly at the high-end for early adopters, people who are willing to spend $30 and $50 per month of the phone. bloomberg tech mark gurman, thank you so much for joining us. in iphone x on sale now sydney, singapore, in tokyo, folks in their waiting outside this story in sydney to get inside, get their hands on an iphone x. we will be covering this for the next 24 hours. right here on bloomberg television. that doesn't it for this edition of bloomberg technology. we are livestreaming on twitter. p.m. in new york. that is all for now. this is bloomberg. ♪ bloomberg ♪

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