♪ emily: i'm emily chang and this is "best of bloomberg technology " where we bring you the top interviews from this week in tech. spotify files to go public. the ipoam are skipping dance and blazing its own trail to the new york stock exchange. plus, a bloomberg scoop. alibaba adds to its arsenal and its crosshairs. we will examine the decision to go all in on china's top takeout app. and backlash from the tech.

to pick a side on gun control. first, one of the most highly anticipated public offerings of the year is here. spotify is going public. ae company isn't filing for traditional ipo, but instead a direct listing on the new york stock exchange, skipping the roadshow and the process that goes with it. holdingrevealed it is onto the top spot among streaming services with 100 59 million monthly active users and 71 million paid subscribers at the end of december. we caught up with alex and in london, someone who knows about the european tech scene, we welcomed back caroline hyde. come back for what is going to be one of the key , spotifycoming of age coming to market. not filing for an ipo, just listing shares and we might

think it is to save banking fees because they don't need any more cash, we might also think they don't want the drama of an ipo. ist might be on their mind king ipo, maybe they don't want that. notably, this is very swedish. cool, the known to be ceo, the chairman, cofounder of spotify doesn't like the limelight. you can hardly find any videos of him. this is perhaps a company that just wants to be seen differently. emily: very swedish. what did we learn from the actual spears -- actual perspective? >> coolness factor isn't necessarily what investors look at. a don't get to go on these roadshows or ask questions. they will be looking at these financial results. grew 39% toevenue 4.1 billion euros, about $4.9

billion, but the company continues to lose money and that is something people will be paying a lot of attention to. is it going to hurt them to not have access? because when you think about the music streaming business, the big question continues to be, is this a viable moneymaking potential industry? spotify is the leader, by more than double of apple music, but that is great. 7 million premium surprise still -- subscribers are a small slice of the number of classical people out there who could be consuming music content. you are going to be getting a lot of coming through this 244 that investorse will be looking at as they decide the real valuation of the company because they will be the ones making the decision. in the room giants like apple and apple music. caroline, what does this

listening mean for the european -- listing mean for the tech scene? >> some of the numbers bandied of $20p to the tune billion, that is significant and much bigger than in recent history that we have seen in the european tech scene. we have to look back to the company that sold back to tencent a couple of years ago. that was $10 billion. last year, one of the biggest ones in europe was about valuation of $5 billion. hero.as deliver a we think of the recent ones that have come to the market and some of them don't live up to the heavy hype that spotify is going to hit. russia, germany's rocket internet, all about 5 billion. this is crucial, and more companies want to come to the market. funding circle in london also wants to tap the public market. funnel money to

back into the ecosystem for smaller startups as well because some big european vcs are going to cash in on the deal. the local ones, ones that were founded in sweden. companiesgoing to be that are also local to london. these companies will make money if they sell shares and will funnel it back in two european tech. dropboxe saw a few days going the traditional ipo route. that is one people are excited about this year, but do you think other companies will take this nontraditional listing route or is this an anomaly? they are looking at it and a lot of this will come down to the valuation process. the risk is that the stock becomes very volatile because the valuation will be set on listing day. it will depend on how many shareholders want to sell, who wants to buy and what price they are willing to change hands.

spotify has given some indications in private action -- and 23 billion. that is a big range. opending on how this stock process goes, what the volatility looks like going forward could be something people watch. when you ask private company ceos what do you think about being public, a lot of them talk negatively about the distraction of a stock price. if you have a stock price going around wildly, maybe you go to the ipo process and get a little more granular valuation before you list shares. emily: caroline hyde and alex barinka there. in the meantime, netflix ramps up spending. speaking at a conference, the is says the streaming giant set to spend upwards of $8 billion on content this year. he estimates netflix will have 700 original shows and movies on

the platform over 2018. joshg up, we hear from silverman about how he crafted the company's best quarter to date. plus, shares of fitbit hit an all-time low on disappointing earnings and a disappointing forecast. what is next for the wearables company? we hear from james park next. this is bloomberg. ♪

emily: shares rose as much as 25% yesterday as the company were ported earnings -- reported earnings that beat estimates. the online marketplace hit more than $1 billion in gross merchandising sales. i spoke with etsy's ceo and asked what is being done to boost revenue. >> the market opportunity we ofe is enormous and in a sea sameness from the same brands, the world needs at see more than other -- ever. we are proud of the fact that we had a $1 billion quarter, $1

sales onf merchandise at sea and international sales through 2017. we grew faster in the fourth quarter than we have grown in recent quarters. we are doing that by doing the basics. a better scotch -- job of search and discovery, 50 million unique items for sale at at sea. finding the right view is important. we are doing a better job on trust and reliability so you know things like when can i expect this item to arrive and what is the return policy? our marketing capabilities are getting better and it is showing up in the results. emily: you have also been cutting costs. josh: we have been focused on going faster and in order to, we need to have an organizational structure that is clean accountability and little bureaucracy. unfortunately, that meant in the third quarter of last year, we needed a leaner structure and did a layoff. and wel was to go faster

announced we have done more than 350 product enhancements just since may. over 20% of them led to demonstratably higher gms. we are going higher -- faster and serving the community better. emily: how are these changes coming off? through hardm went times over the summer and difficult changes, but we are seeing we are serving the community better and the team is feeling great about that. you've got giants in the room, amazon especially -- how big a threat are they? josh: betsy is unique in that we have 50 million items that don't have a catalog, they are made by hand by millions of sellers. you can't find that anywhere else. at sea is where you go when you wanted to feel special. the traditional world of retail, you have price, convenience and selection. the old bodies you can only do two.

amazon and retailers do all three well. but in our space, the way they is 1000. prices by 1000t order anything on that sea. byy items on at sea are made hand and to order, customized for you and as a result, they are not warehouse. in terms of selection, you have 15 million items by over 19 million makers. etsy selling itself, is that on the table? josh: we feel great about the opportunity -- opportunity we have. we have a big opportunity and we can grow more quickly. you are seeing evidence of that today. we feel great about the trajectory we are on. emily: but could you thrive better within a larger company or even an off-line craft store?

thrivinghink we are well today and the results we posted demonstrate that we are really unlocking a lot of growth and a lot of value, which is great for our sellers and buyers and all of our stakeholders. given up youre designation, part of the way you demonstrated your public commitment to being a responsible business, but what does that say about the possibility of running a socially conscious business? josh: our day job is socially responsible. we have 1.9 million sellers, 80% women and they count on us to wake up every single day and deliver on their behalf. we are a socially responsible organization. what has changed is our focus and education -- execution. you need to hold yourself to a higher bar and we are. emily: that was at sea ceo josh silverman. fitbit faces long-term challenges amid falling demand.

shares hit an all-time low this week on disappointing earnings results. what is the next step? cory johnson spoke with fitbit ceo james park on tuesday. 2017 was a challenging year and played out a lot differently than we expected. for us in the wearables category, the shift to more fully featured smart watches is happening even faster than we anticipated. we did launch our first smart watch into the category and it did outsell our prior product surge, but it was not the massive shipment driver that we anticipated and that was reflected in our financials and that is what investors are reacting to. >> it strikes me as an interesting problem. i look at the apple launch, it -- inproduct inserts search of a use case.

i felt fitbit was the use case, monitor steps helps people live healthier lives and at least a physical fitness focused product. as you move from bands that count steps to watches that can do a lot more, do you start to lose that focus? how'd you make it a mass-market product, not just for runners, but people who want to lose 10 pounds? >> absolutely. we will maintain our focus on health and fitness. emphasis shifts from trackers to smart watches, and a lot of that will come in the product features. there are specific health and fitness apps, a long battery life of over four days, helps with sleep tracking an hour at is the number one app on itunes and android. for health and fitness. platform independence plays a we integratelly as

more deeply into the health care in ecosystem. i strongly believe the focus of health and fitness, regardless of -- is the winning strategy. 2017, while ionic wasn't the success we anticipated, we achieved a lot as a company. we met our for your guidance in earnings. we exceeded our projections for free cash flow and are incredibly operationally efficient. over $50 million below target investors. stated to we deepened our reach in care and i think one of the more interesting aspect, if you think about not just devices, but our active user base grew to over 25 million users. >> what is the dynamic there? how do you shift products that have more users? one thing investors had been concerned about in the past was

what is our level of retention and usage? is this a product people buy and put in their drawer after a few weeks or months? we are demonstrating that even declined andnts our user base grew, that means we are getting better at getting on ourto stay longer devices and platform. that is going to be important as we shift our business model from being device centric to one that is more around software services. >> let's talk about the shift in the business model. for a long time, it seemed the might be unit sales going into a big company and getting everyone there to wear a fitbit. but there are companies. if you monitor your steps using fitbit, you get credit toward buying stuff like gift cards. now you talk a lot about health care and have been for more than a year, is that everything are a focus one in the same?

>> it is a little different. primarily, our business before had been about selling devices to enterprises. we had large installations, 50,000 units, we had several thousand units with target, but the difference is what our business model is behind our health business. we are moving to one more based per month,member which is occurring in nature and more predict double. one of the more interesting things is looking at risk sharing models, where we happen a share of anyin savings and health costs that we achieve for our users. >> done deals like that? >> there are promising steps. we already have a deal with new cross blue of south carolina. the recent partnership we have with united health care around diabetes management has the potential to move to a risk

sharing payment model. these are kind of contracts that will be really significant, more than 2% of revenue per deal? chris: it is hard to say what the revenue will look like, i think we are taking a lot of concrete steps in 2018 and you can expect to see health care being more meaningful to our business going forward. emily: fitbit's ceo james park with cory johnson. a bloomberg scoop. alibaba edging out investors to be the sole owner of delivery start up. we will head to hong kong next. if you like bloomberg news, check us at on the radio. you can listen on the bloomberg radio app, the bloomberg.com and sirius xm. this is bloomberg. ♪

emily: in china, alibaba is wrapping up the competition with

tencent over food delivery. alibaba has agreed to buy shares of the startup that it doesn't already own from investors. the e-commerce giant are ready had a 23% stake in the company. ele.me. hisith alibaba buying in about buying that last delivery network. ele.me is already china's delivery platform. this would give alibaba access to nearly 50% of the market. this also benefits their new retail strategy. the company does have grocery store lines, they are promising within 30 groceries minutes of a three kilometer radius and also, they have their own business that offers a similar neighborhood service. the acquisition would help them consolidate the businesses and streamline the resources.

>> how does this impact with other players in the market? lulu: right now it is breakneck competition between alibaba and tencent's backed company. it is looking to become a behemoth valued around $30 billion already. occupying about 40% of market share, even though haslast quarter, alibaba the upper hand. they still need to put in a great deal amount of money. it is a cash burning business the right now, the company having an acquisition of ele.me would help consolidate the business and competition. -- help competition. emily: how do you see the broader e-commerce market playing out? lulu: in this space, remember that baidu also wanted to join -- ele.me, but right now it is

just alibaba and tencent ultimately. baidu will be fading out of the space. they will be focusing on artificial intelligence and their search business, which is their core business. and going into the neighborhood and all online and off-line retail business. it is a cash burning business that drags down on margin. we are seeing only alibaba and tencent having the long-term cash to play out this war. amazon has agreed to buy ring, a california-based smartphone company that makes video cameras, doorbells and other security. the deal is valued at about $1 billion and pushes amazon further into the smart home market. the sale.hase advised we brought in our bloomberg ipo reporter for all the details. alex: the ceo went into shark

tank, asked for about $700 -- $7,000, was valued at 7 million and half a decade later, they are selling for $1 billion according to a person familiar, to amazon. perhapsnding for ring, can look back to some of the shark sensei look at what we have done. for amazon, it is an important step as they continue to push and to these more consumer hardware. we have seen amazon really try in the past six months to embed themselves in consumers homes. you saw with amazon key, the key to unlock for delivery so they can deliver packages, and you have seen it with amazon echo. withinems to fit nicely that entire ecosystem because amazon's and goal isn't necessarily selling hardware, is this getting hard -- it is getting hard work in a platform. emily: talk about how this fits into the delivery strategy.

amazon has been really focused on the last mile, now they have this concierge service, key, where amazon can go into your home and drop off packages. how does it tied together? alex: when you use a ring smart camera, you can have the person on the ground talk to it. if you are on your phone or pc, you can talk back. that kind of actually relationship where you are not a passive watcher, but can engage with the person there. deliveryan amazon person who is verified, you can open the door, tell them where to leave it. amazon has been pushing services like housecleaning and dog walking. anyone who is showing up at your door can be let inside when you are not there. you keep spending within the broader amazon platform. emily: what do you make of the price of this deal? alex: full disclosure, i own a ring doorbell and was shocked. the product is good, but $1 billion?

organizations say they were valued at 450 million, it is a two-time bump. for amazon, it is a small check. jpmorgan advised ring, amazon didn't even have an advisor working with them. they just shelled out the come -- money for this deal. it seems to be another one of these bolt ons amazon has been collecting as it continues to fill this set of tools it has to keep getting into people's homes. emily: they did a big deal with whole foods last year. do you think amazon is going to be in the future? alex: they are definitely on my list of tech m&a. they don't have anything that i don't know about right now, but even the whole foot deal fits perfectly. whole foods shows up with your food, you get them in the door with ring. emily: that was bloomberg with

alex barinka. next, the gun debate hits the tech world. the backlash over the nra and streaming services. that is next. this is bloomberg. ♪

emily: welcome back to "the best of bloomberg technology." in the week since the parkland high school shooting that saw 17 teenagers gunned down, gun control activists have managed to get companies to sever ties with the national rifle association. there is one group they have not swayed yet, big tech companies. stillstreaming services offer access to nra tv, the free online channel focused on pro-gun content. can activists pick a side in a hot button political debate? we spoke with spencer sjoberg

and serena weighing on wednesday. >> since the shootings happened in florida, we have seen growing calls from activists and consumers to stop tech companies from streaming nra tv. we have seen one of the student survivors also make strong calls to hundreds of thousands of colors -- followers to cancel their prime subscription and stop using fedex. emily: i have a couple of tweets, one from alyssa milano saying -- we are calling for a one-day boycott of amazon, apple, and fedex. shipt shop, stream, or with consumers. weweet from the student -- should probably just get ebay instead of amazon. ebay is a government corporation and does not support nra tv. for these companies like the car

rental companies, it is just about ending a financial relationship. they are no longer offering member discounts. for streaming services, they could running to free speech issues by silencing a media source, and there is concerns they could be alienating a large portion of their user base, since a significant part of the u.s. population owns guns. emily: amazon does not sell guns. apple does not sell guns. what do you make of this threat? spencer: it shows how far gone -- gun activists are willing to go in terms of brand association. people are taking on bridge to the fact that it is associated with the nra merely by offering the nra tv through its devices and services. it is a question of simply association. nra.org and watch

nra tv all day long. ,ou do not need apple or amazon but any association with the nra brand is coming under target from gun control activists who feel like they want to see some sort of action taken to marginalize this pro-gun lobby. emily: roku has specifically said they will not remove nra tv. they would only remove a channel if they were doing something illegal. what response have we heard so far? >> a lot of them have declined to respond, amazon being one of them. they try to stay politically neutral. they do not want to alienate their user base. the past few days, we have seen the calls to amazon escalate. thatpeople are tweeting they are canceling prime subscriptions and more people are talking about how to buy the products that you want on amazon without going to the website.

people are tweeting responses from amazon asking them to cancel this nra tv streaming. amazon is feeling the pressure, but i think the response from these companies will be similar to what roku said in terms of being politically neutral. emily: you have been following the conversation on social media. at a certain point, as amazon going to have to respond? spencer: that is what has been fascinating, is there standoff. the people on twitter, on social media are encouraging one another to keep up the momentum, and it has gone beyond one tweet to encourage amazon to stop streaming nra tv. now people are probably posting photos of the response they get when they cancel their prime accounts. they are even coaching one another on how to buy things online without using amazon. that part is actually kind of

funny. you mean, you can buy something online without going to amazon? yes, you can. they are strategizing to use amazon for reverse show rooming. you want to find the product on amazon and go directly to the seller. there is a big conversation, not only about boycotting amazon but people boasting about canceling prime memberships and coaching one another how to boycott amazon with minimal disruption to their lives if they have been dependent on the service. emily: thank you. youtube's new moderators brought into spot fake news, misleading, and extreme videos stumbled in one of their newest tests. they mistakenly pulled right wing channels and videos in the wake of the parkland shooting. some youtube channels began complaining about their accounts being pulled entirely. reinstateid it would

videos removed in error and would continue enforcing existing policies. just how do you spend $100 billion? tohad to barcelona -- head barcelona for the softbank vision fund. brendan carr joins us about his renewed push for 5g. this is bloomberg. ♪

emily: this week marked one year since snap went public. sarah frier walked us through the year that was, the ups and downs. sarah: it has been one year since snap ipo, and there are still a lot of questions. it made huge changes. it rolled out a bidding based advertising model which caused the prices to fall, and it redesigned the snapchat application to separate friend posts from posts from celebrities and the media.

there was one tweet by a social media superstar that wiped out $1.4 billion of snap's market value in one day. they posted their first quarter actually beating analyst estimates, causing it to surge 47%. the fan base is growing steadily, with active users growing to 200 million, but internally snap did not meet its goals so employees did not get cash bonuses. the leadership team has been working to improve, trying to work on their transparency, but evan spiegel has a reputation for not appreciating criticism, and has lost a slew of top executives since the ipo. one point analysts keep making -- facebook's first year public was crazy too. emily: that was sarah frier. when it comes to tech investment funds, softbank's vision fund reigns supreme.

the fund has invested in uber, we work, and just this week, door dash, and they are not stopping. the ceo spoke with caroline hyde on what comes next in hitting that $100 billion commitment. >> the message is simple. it is not just about the industry. it is entrepreneur first. the vision, the passion, the ability to grow, not just grow in terms of revenues but are able to recruit, have the bandwidth to go out and hire senior management. it is believed they can do it because that is what we push on an market capital. how are you create exponential growth using that capital? number they cannot be

two because going from number two to overtaking the market leader takes a lot more effort than drawing from number one. caroline: market share in a country or globally? rajeev: in a country. obviously asective they are truly disruptive. there is a consumer need for them. there is a consumer need to sell used cars for people living in smaller towns, or even living in larger towns where they could not get a better price. homes,her it is cheaper with the ability to have an online real estate broker sell your home faster for a better price, etc., etc. caroline: you have $100 billion eventually to put to work. when does it close?

rajeev: sometime this summer. caroline: you have the rest of the eyes of the community on you worrying about valuations being pumped up. is that a concern? rajeev: it would be good for them at the valuations go up, because they can exit at those prices. a lot of the early investors have exited a lot, predominately , with our investments because we do primary and secondary, including uber and dd and we work, where early investors exited and sold secondary shares. caroline: you mentioned uber, dd, companies in the spain space. ridesharing. how does it work when you have competitors? rajeev: they are not competitors because dd is in china. uber is the rest of the world. a little bit of overlap, but i

believe it is quite synergistic because at some point there's r&d to be shared, and the benefits are immense having 30 companies in your portfolio growing to 70, 80 over the years. caroline: william urge them? rajeev: they definitely become joint ventures. --d cars took uber drivers to uber drivers, insurance companies, like selling car insurance to uber drivers. caroline: you are buying insurance at the moment. rajeev: it is early days. caroline: what about the expansion into other areas. where are you not seeing enough of deals? theou want to see more in banking sector from a geographical perspective? rajeev: the thing about deals, our ability to process them is

important. we have been in business for 30 months. desire we could only that we see more from europe. we have made substantial investments in the u.s., our number one destination. we made a few investments in china and india. we would like to see more from europe. emily: that was softbank vision fund ceo speaking with caroline hyde in barcelona. in just a few weeks, the fcc will vote on a plan to ease federal regulations for 5g wireless equipment. brendan carr proposed new rules that would install small cells equipment for the network. they will power the new speedy networks. this is in part, a larger effort , wirelessndividuals carriers, and chipmakers to

ensure your us -- ensure u.s. leadership. are trends boring -- that transition is going to enable a lot of the innovation you are hearing about now, autonomous vehicles, the internet of things, remote surgery, ai, we need to upgrade our network to get it to 5g to support those appointments. we are working with the fcc to cut the unnecessary regulatory red tape. emily: the regulatory costs are one thing and the financial costs are another. these are extremely costly. how do telecoms handle that? : we estimate it should take 275 billion dollars in investment to deploy 5g, and these are -- can make a big difference in that -- making that economical.

streamlining is estimated to cut 80% of the regulatory costs of deployment. that means cell sites that are economical to deploy to push the 5g network further out and supply service to more americans. emily: how does wireless infrastructure fit into the infrastructure plan overall? broadband is a key piece of that. need to reform a lot of our other infrastructure deployment rules, our broadband deployment rules are right there , and at the sec, we have the authority to do that. we are voting on a plan that would speed the production. emily: a task force that was examining these issues, local regulators would lose control. what is your response? brendan: there is a couple of different issues.

the one in march looks at federal, environmental, and historic permitting processes. the other goes to the question of state and locals, and their role in deployment. we are also taking a look at the state and local. we all have an important role to make sure these deployments are economical. the costs of deploying these networks are high enough. we do not need unnecessary regulatory red tape. i think we are all looking at ways to streamline the deployment rules. emily: how would you rank the u.s. when it comes to global competition? there is progress in south korea. where does the u.s. fall right now in the hierarchy? we lead theht now, world when it comes to the deployment of 4g wireless, and that is why we need to update our regulations so we can deploy 5g. a lot of companies look to the united states and saw that we

lead the world in 4g. they want to lead the world in 5g, so for this global competitiveness when he to step up to the plate and reform regulatory structures. i am confident we will lead the world in 5g, so as a country, we are in good shape. we need to reform regulatory structures. emily: why do you think the u.s. needs to lead in 5g? talk about the economic benefits when it comes to jobs and people. brendan: 5g, the deployment is estimated to enable 3 million new jobs in this country, if we get it right. a is estimated to add half billion dollars to gdp. we get a high speed rock band connection to more americans, that gives them access to jobs -- broadband connections to more americans, that gives them access to jobs. emily: if we do not take these

actions and the u.s. does not lead and 5g, how might u.s. citizens be harmed? brendan: there are countries that are more than happy to fill the void and be the first ones to deploy 5g. that will mean cutting certain is cutting-edge devices we are talking about -- cutting edge devices we are talking about will be deployed in other countries first. i want to see all those products that consumers are reading about launched here first. i do not want to watch that happened in another country, and at fcc, we are not doing that. we want to enable the private sector investment to take place here. emily: that was fcc commissioner brendan carr. the heavy wakes -- heavyweights take center stage. we weigh in on the battle between the iphone x and samsung galaxy ♪.

emily: some revolving doors in

tech. is aiming to scale its ad business ahead of a potential ipo. they are hiring a former executive at square and google. he was most recently squares business lead, overseeing international expansion come a customer support, and partnerships. she joined in 2018 after several years at google. wereis fray, the woman who brought on to clean house and a punishing year, is leaving just after eight months. she was on the management committee until the fourth elected ceos replacement. fray will continue to serve as an advisor to uber as she embarks on her own project to design a leadership program for executives centering on women and minorities. of theo the battle

smartphones, samsung has come out to its response to the iphone x. andas emojis, upgrades, stereo speakers. it was unveiled in barcelona. bloomberg reported apple is planning to release a trio of new smartphones this year, the largest iphone ever, and a less expensive model with some key features. apple is already running production tests with suppliers and an official announcement is expected this fall. mark gurman broke the story and joins us with more. mark: apple is working on three new phones this year. the big story is the bigger thee, a 6.5 inch phone, biggest they have done and the largest mainstream smartphone on the market. going to be an update to the iphone x design, the current screen size, plus a

cheaper model with many of the features people like in the iphone x. emily: how will this compared to the eight and eight plus? mark: apple has the high-end phones and the two low-end phones, but the problem is the eight and eight plus, while they are new and have some newer tech inside, outside is extremely outdated. those designs are the same ones that came out in 2014, so this will alleviate that. one of the new outward facing flashy features. emily: why do they think we want a bigger phone? mark: it appeals to markets in asia, where a lot of consumers are single device users. that means people who only have one piece of technology in their life. they watch tv, do their email, do their homework, people who do everything on one device, versus people who spread their workload across the phone, tablet, tv, so

this is appealing to those people. emily: what will competition be like between the two phones? mark: the samsung s nine is not a big update from the s eight. refresh,idcycle because samsung is holding its fire for this fall when it will come out with whatever they choose to call it, the galaxy will behe big feature this flexible, foldable, high-tech digital screen, which will be a new, i purchased -- unprecedented step. the iphone will be going toe to toe with that, so the apple-samsung war will be a significant moment to watch. emily: you often hear tim cook and apple talk about getting new users from the android platform. how many users are switching platforms from android to iphone or vice versa?

this tim cook dodged question on the last earnings call and normally he likes to tout those numbers. maybe it means the switching was not as frequent as they would expected, or they do not have the data. we do know that this bigger phone, the 6.5 inch phone will appeal to android users who are on the note 8 bandwagon. the lower-cost model will be bringing down the high-tech to a lower price, so that could be appealing to android switchers. emily: when it comes to the iphone x, what do we know about the mix, and how do we expect that to evolve? mark: we can glean a lot from past earnings results. $700,hone asp is north of because of the thousand dollar starting price of the iphone x. unit sales come -- came in below analyst expectations, so even

though the asp was higher, unit sales were lower than expected, 1% lower year over year than last year, which indicates to me that people are interested in the iphone x's high-tech features but cannot afford it, so they are left with the cheaper one that they do not want. coming out with a lower-cost model around $600 or $700 with new technology, that will be a boon for apple. emily: that does it for this edition of "the best of bloomberg technology." tune in thursday when you bring you -- when we bring you top female voices in technology. pao, justys and ellen some of the fantastic voices we have lined up for you. 5:00 p.m. in new york, 2:00 p.m. in san francisco. all episodes are live streaming on twitter. that is all for now. this is bloomberg.

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