>> i'm mark crumpton in new york. you're watching bloomberg technology. here is a check of first word news. white house press secretary sarah huckabee sanders denied reports that chief of staff john kelly is being considered for veterans affairs secretary. sanders also dismissed reports that kelly made disparaging remarks about president trump. she says the president and kelly are "very happy with his current position." "the wall street journal" reports the pentagon is investigating the allegations made against former white house physician ronnie jackson. he is accused of drinking to excess on overseas trips, overprescribing medications, and mistreating lower ranking employees. the cia declassified more information about gina haskell's

career today, but the two-page dossier fail to disclose details on assignments that the new york times reported involved the president's nominee to lead the agency overseeing the torture of terrorism suspects abroad. california is among 17 states suing the trump administration over its plans to rewrite fuel efficiency standards. the proposal by epa regulators looks to scrap emissions standards for vehicles manufactured between 2022 and 2025 after epa administrator scott pruitt complained they needed revision. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. crumpton. "bloomberg technology" is next. ♪ emily: i'm emily chang live from

the conference in beverly hills, california. this is "bloomberg technology." coming up, apple shares on the rise after the tech giant sold more than 52 million iphones in the quarter, but did it reflects strong demand? highlights and analysis through this hour. big headlines including plans for the social network to become a matchmaker for its billions of users. and more highlights, arianna huffington joins us to talk about the goals for uber for the next year. apple second-quarter numbers are in. revenue in line up 16% from the , quarter last year, down from second the $88 billion the company brought in in the holiday quarter. that is typical. apple sold 52.2 million iphones, holding up to estimates. questions surround the future of the iphone x.

the average price was $796 last quarter to $728 this quarter. apple is rising after hours as well as suppliers. joining us now to dive deeper is the vice president at forrester research and our "bloomberg technology" executive editor. a lot to digest here, including the forecast for next quarter is higher than estimates. overall, what is your big picture take on these pictures? >> yes, i think the big picture take on these numbers is it is really good. estimates are what they are. they are estimates. the numbers are up dramatically same quarter over last year. i think overall, the numbers are good. emily: what about the concern that people are buying the cheaper priced phones? i did just get off the phone

with apple ceo tim cook. in general, around concerns around the iphone. he said it was the most popular iphone. the first time since we flipped the line with the iphone 6 and 6 plus that the top iphone has been the best-selling. i think it is an incredible result if you think about it. do you have concerns about dropping? >> i would not be concerned. for a number of reasons, one, smartphone adoption in mature markets is plateauing. these devices are very expensive. more and more like buying a pc but the upgrade cycles are slowing. it is harder to convince consumers to upgrade their phones every two years. so i think it is in line with what my expectations would be. the reasons to upgrade my phone are becoming more and more subtle. less and less about the camera

and the screen and the nifty features and more about the subtleties that artificial intelligence fueled. emily: i asked him about dropping, and he talked about how our last letter to this quarter, they take out inventory and that is often at a higher price. what is your topline takeaway given all the fears that your smart phone demand is slowing, that the results would not be so great but that they have beat analyst estimates? >> there was a lot of pessimism in this quarter and it is hard to fault it. there is talk of a buyback to $100 billion. they have this cash. people have been saying it is basically the size of netflix. a lot of money to put in the hands of shareholders. but i think the fundamental story at apple is it has held up very well despite a lot of pessimism, despite a lot of evidence in the market that the

smartphone boom is ending. i do not think that for the mental story changes, but apple is doing very well in spite of it. they talk about beneficiaries, straight in china. the world's largest smartphone market. a market where competitors have been taking share them. it remains to be seen exactly how things pan out with those competitors. we will know or the coming weeks. for now, they have been holding up very well. if there is something to be done as a smartphone boom slows, it has not been happening for apple. if you look at the rest of this year, apple realizes people want lower-priced devices. as mark has reported, you will see later in the year the introduction of a lower-priced device that has a lot of the functionality that the currently high-priced devices have. they recognize they cannot let

go of the lower end of the market. they recognize that not everyone wants to spend $1000 on a smartphone. emily: now, apple's tim cook on the call right now. we are listening in. i want to talk about services that grew some 30%. we talked about how he thinks the real competition is not spotify but convincing people to pay for a music substitution service. -- subscription service. they have 40 million paying subscribers, 8 million in trials. what do you think when you look at these services numbers and break them down? julie: i think the first thing is the service revenue is up by 30%, but as we look forward and talk about it after that smartphone sales are going to puerto, apple needs to look to other products for growth and to services. it is very solid growth off of a

small place, but we'll see the peak of apps in the near future. apple will have to look more to its services and subscriptions as well as things like apple pay for future growth. i would expect that number to get much bigger over time apple is going to sustain its growth. emily: speaking of apple pay, tim cook just said on the call that apple pay users -- transactions tripled year-over-year. we will continue to monitor this call. you can watch the bloomberg blog. thank you both. coming up, after a high profile redesign, shares are plunging after hours. earnings falling short. we will have all the reaction to the results next. if you like bloomberg news, check us out on the radio, the bloomberg app, and on sirius xm in the u.s. this is bloomberg. ♪

emily: stocks crumbling in over 15% with the company fallen short of forecasts after rolling out a redesign of its main photo sharing app. the company missed on two metrics, daily active users and quarterly revenue. joining us now for reaction, debra. we are going to get to that momentarily. first, i want to talk about snap. they have momentarily beaten this quarter. another concentrate quarter.

is this going to be the rule in the future? >> this is definitely a challenging quarter for snap read no question. i think the big revelation, the big takeaway for me has been not only our users upset at snapchat because of the redesign, but now advertisers are concerned. that is a big issue because snapchat cannot stand to have any concern among its advertisers. those people need to be strong and solid on snap for sure. emily: what is the solution here? what does snapchat do aside from revert? debra: there is a number of great things. snap, it's active users are very engaged. keeping those users engaged is something snapchat will have to make sure they continue doing in addition to adding new users. on the advertisers's psy kamaishi like they are doing a

lot smart things. they transition to a self-served more programmatic advertising infrastructure. that is making it easier to buy adsense snapchat, which is think is helping them in the long run. but i think the advertisers need to be reassured that this is a company that this is a company dedicated to keeping its users on board and happy, so it has some work to do. emily: of course. the irony is not lost the you are at the facebook developers conference. facebook has in many cases topic from snapchat features and forwarded them to facebook and instagram. mark zuckerberg announcing a new dating service. i want to take a listen to what he had to say about it. mark: it will be in the facebook app but very optional. opt in. if you want them even make a dating profile. i know a lot of you will have questions about this. we designed this with privacy and safety in mind from the beginning.

your friends are not going to see your profile. you are only going to be suggested people who are not your friends who have opted into dating with your preferences. emily: what do you make of this new service in the context of all the very, very big important clinical issues that facebook is dealing with right now, including data privacy, election meddling, fake news, harassment, and now a dating service? debra: you know what, the way you phrased that is exactly my response. i think they did a great job of turning people's attention away from some of these big issues, at least temporarily. the dating app was definitely out of left field for a lot of people, myself included. it makes some sense, i think, because facebook's goal is to connect people, make them interact more, and certainly dating is a part of that. but i really do not know that this is something anybody expected out of facebook. it is quite surprising to me.

emily: is it something that could materially at the bottom line? it is a surprise they do not do some thing like this sooner, but then again, they do not do this sooner. debra: it was that facebook should have launched a dating app before. i think it will help their bottom line. dating apps and companies have been very successful. match.com being one of them as well as others. this is a business that facebook will get into and take seriously, but i think the proof is in whether they can put those privacy safeguards around the things they claim to like keeping information private from their friends, keep them safe from people seeing or interacting with them that should not be able to do that. with all the privacy concerns around facebook right now, i think the dating at is something people will pay attention to and try to make sense of whether

facebook is actually able to maintain people's privacy at the same time that it gets involved in dating. emily: all right, debra. always great to have you. thank you so much, debra. i want to get back to our top story, a continued look at apple's second order number s. caroline hyde is in london. she has been digging deeper and listening in on the call. what are you seeing? caroline: he really is talking up the power of the iphone x. it sent shivers down many suppliers spines as the numbers do not live up to expectations, but it is a standout product and a bestseller. have a listen to what he said. >> customers chose iphone x more than any other iphone each week in the march quarter just as they did following its launch in the december quarter. since we split the line with the launch of iphone 6 and six plus in 2014, this is the first cycle in which the top-of-the-line

iphone model has also been the most popular. caroline: talking up the iphone x, talking up wearables saying this is as a unit the size of a fortune 300 company, talking of this hot runaway success of the earphones that we all have been using, talking up the services side of the business as it sees a 31% increase in growth. that is pretty significant when you are seeing that is a ramping up of the area. i also want to point out the shares have been rallying because of the return to the investor base. you can see how much the cap file has been ramping up for apple in the past years. $285 billion in the previous q1 and for them. q2 came down a result slightly but they promised to give $100 billion, and that is a dividend being raised by some 16%. all of this pretty delicious to the investor base so far. shares holding on to their after

our trading highs but currently 4% higher. emily: caroline hyde continuing to monitor the apple updates. thank you so much. it will coming up, tech investors trying to bring more female founders into the old and changed the venture capitalists and startup culture. this is bloomberg. ♪

emily: silicon valley takes pride in its progressive views on issues, but a time for change on gender issues, inclusion. now she is using her influence to change the voice of the culture of silicon valley and beyond.

she joins me now here. also one of the early adventures bought by amazon for $1 million. what do you make of the acquisition? amazon pushes the boundary for new businesses. >> amazon is one of the biggest platforms in the world. i think they are very creative about continuing to double down and innovation and all the ways they touch our personal lives. home and safety and security is a huge area of focus in today's world. there are a number of different companies that could have become big in that space. bring did in and got of a drop of not as building an incredible hardware and software product, but also an ongoing revenue stream behind the scenes. emily: in a way, amazon's innovativeness is difficult for venture capitalists.

amazon can make a company by buying it or destroy your company by answering that business and making the company or the startup irrelevant. how does that impact your investment decision when the giants are bigger than ever? kara: absolutely. when you are a venture capitalists from you think about it was every time you make an investment. it really crystallizes who you should be backing every time you back an entrepreneur in a category that amazon might go into. it is something. emily: or facebook or apple or google. kara: for sure. if you have the latest age investors, it is amazon, amazon, amazon. they have their moving from congress to web services to nearly every category. we look for areas that the sales matching is not necessarily an advantage. it used the wind with the backend and supply chain an excellent return. now you have to really find the categories where plans get to a role.

an example, who or for whom. people are eating in very different ways. how does whole foods serve the whole 30 and all these different things? these are areas that amazon has yet to figure out. we have been small and nimble and can be an advantage. emily: you have been active as far as nonprofits preview increase the number of women found it businesses. this is after many years of underrepresentation. what kind of response have you gotten? i have heard a lot of congratulations but also for men saying, now i am feeling a little left out. what can i do? kara: it is ok if you are feeling a little left out. i think the responses are incredible. this is a movement that has come from women and men. it is important that we figure out how to get allies.

91% is male. it is the none that are going to make a change. i am very encouraged by how much enthusiasm there is for the organization. it happened very organically. it happened across firms and in a way where the benefit has been everything from doing things that i think men have always done. it may not be golf. it may be rose. and also sharing deals and women need to be thoughtful about how to bring them in. but even more important, the men who have had success, having them be out there and speaking about this even more than we do. emily: there has also been a front doing innovative things to build diverse teams. you build a version of the inclusion rider.

is it working? kara: yes. i think it is early days, but it is working in a couple different ways. a one, i will say that that rider did not come from me. it came from one of my male partners it came about a month ago, restarted putting it in. they said this is something we believe in. we can put in terms sheets and use and as a moment to communicate with entrepreneurs. what has been really exciting is seeing the entrepreneurs with what they are doing with it and how they are innovating around it. i will give you one quick example. invested in an early stage company run by a newer named will. he took it, sign it, we talked about it. he now reports on it every board meeting. i do not ask him to do it. in the first board meeting, he gave himself a b minus.

in the second meeting, a minus. when you start from the beginning, it is much easier to build a culture of inclusiveness and diversity. much harder to fix that after the fact. emily: absolutely. you are based in los angeles. what are you seeing specifically in los angeles that might be different than silicon valley? kara: first of all, half of my boards are in silicon valley so i love to visit but it is a stressful time in l.a. as we move from this era to building applications for industry from bits and bytes, we can build hardware and software companies like ring that came out of aerospace and defense heritage. we can build companies like spacex, who is building rocket launchers in l.a. it is an era where text is necessary but not sufficient.

we are focused on end-user problems that i think is pretty unique. emily: thank you so much for stopping by. nice to have you on the show. coming up, we will give talking about apple. we will be right back. ♪

greg is 1:29 p.m. in sydney. i'm paul allen with first word headlines. warning of uncertainty following the u.s. decision to delay still and aluminum chairs for another month. just hours before temporary relief is due to expire, the trump administration said it would allow another 30 days or negotiations. washington insists progress is being made. wilbur ross will be part of a high-level u.s. traits in heading for china this week. treasury secretary steven mnuchin will be joined by robert lighthizer who says the triple be a big challenge. he said the chinese system is working well for them, but not

for the u.s. and it would be good if the problem could be managed to suit all sites. brexit talks resume in brussels later with the u.k. proposing a new plan. chief negotiator david davis as he wants to move quickly on avoiding a hard left front tier in this bit happens next year. promising to work around the clock to find agreements ahead of the summit of global leaders. powered by more than 2700 journalists and analysts in over 120 countries. i'm paul allen. this is bloomberg. >> asian stocks are mixed but mostly lower with a few bright spots in sydney. one week to go before elections. the cost be being dragged lower -- kospi being dragged lower.

the apple cfo forecast weakness in memory chip prices, and overtime pay, at supplies are soaring in tokyo. aurora says now is the time to add submissions to the fundamental bottom. after the recent selloff, among the best performers in hong kong along with tencent. the dragon financial developers and auto players have seen the hang seng snap. best given up earlier gains as consumer shares fall. , is more dollar strength weighing on asian currencies. rupee is at a two-year low. checking in on bonds, asian debt is following the treasury checking on the bond space. indonesian debt and in

the commodities space, aluminum prices are falling in shanghai will still is jumping as donald trump adds to the confusion of the metals market. ♪ emily: this is "bloomberg technology." we are live at the milken institute global conference in beverly hills, california. i want to get back to the top story which is apple second-quarter results. while revenue in iphone sales in line with estimates, one area where the companies that out -- services. reported record service revenue of $9.2 billion, easily beating forecasts. apple pay generating record sales. here with us is caroline hyde. we have our "bloomberg tech" editor. let's talk about the service numbers and a potential.

we know that apple forecast and bigger quarter than analysts predicted for q3. alistair: a big relief and the services number really stood out. one particular number -- 30 million paid subscribers added in the recent three-month period. that is a very big number. that is people paying real dollars to sign up for an app or a service like apple music. they are agreeing to pay monthly going up to a year or even more. that is a new, very solid revenue stream. emily: apple also continuing its

share buyback program, announcing the new $100 billion purchase program. take a listen to what tim cook had to say moments ago on the call about that. tim: tax reform makes it possible for us to execute our program more efficiently, both through share repurchases and payment of dividend should the tens of millions of investors who own apple stock. emily: this is the largest increase they have had since they started the dividend six years ago. caroline, what is your analysis on this? caroline: i think what is interesting is they are having to reward investors because many have focused on the growth of the product that is the iphone. if you dig into the bloomberg, you can see how much they still do depend on this killer product. the iphone is about two thirds of their overall revenue. you can see the white line where it spikes. the average was just above 60% at the end of last year. from my analysis, how much they are talking of the importance of the iphone x. i love this one from tim cook that the iphone x is a super bowl winner even if you wanted to win by a few more points.

look, yes, iphones are still meeting expectations, about 50 million sold, but that is 3% growth. back in 2015, we sisi growth of iphone units at about 50%. this is no stellar super cycle, no major upgrade many were expecting. this is an iphone product that continues to sell well, but now looking to other areas of growth such as services, china, and notably, a reward for the investor base for their patients and $100 million coming their way. emily: services is on track to beat $60 billion a year in revenue. i want to talk about that international growth. we saw the company returned to growth in china this year. revenue had dropped. revenue in china grew 21% year-over-year. we also saw growth in in yet. tim cook tells me india remains a big opportunity. we continue to focus on it in greater china.

21% over year-over-year growth. the strongest rate in years. services also had a great quarter in china. and the iphone has been the best-selling smartphone for the quarter. alistair, what do you think of them continuing to post the strong numbers in china despite headwinds we have seen over the last two years? alistair: i think it is all about the broader array of iphones they sell now. the iphone x did not hit it out of the ballpark. the price concerns, with $1000 price tag, that is particularly important in countries like china and india. they have an iphone, saying they will have a new version of that, the cheapest iphone you can get. there is even going to be maybe three different types of iphone x's.

when you look at the average selling price, this quarter actually felt quite a bit. what is happening, especially in these other countries, people are buying the slightly cheaper iphones. still great for apple and great for the services business. emily: now, the one question that tim cook would not answer, i asked him about his meeting with president trump but we don't know what was discussed. we know that trade was one of the topics. that is the only question he declined to answer. on the call moments ago, he said he is optimistic despite concerns about a trade war looming. that china and the u.s. have this unavoidable mutuality and china only wins if the u.s. wins. what do you make of these remarks? caroline: i think fascinating. analysts clearly pushing him in this direction on the call. he is trying to say i'm optimistic overall that if u.s. wins, china wins. this is important when you are

seeing a return to growth in the chinese area. 21% growth in china. now we are going to see china rivaling europe. europe has always been there number two market. we are likely to see china get ahead of the game. i think it is important that this is once again another key area of growth for apple and that can be overcome even in the face of some headwinds that are trading issues that seems to be brewing between donald trump and china. emily: alistair, looking ahead, obviously, bloomberg has some of the best reporting on what to expect. mark reported that apple is planning to unveil two new iphones in the september quarter. what are we looking for a potential iphone unveiling in the fall? alistair: i think they need to keep momentum going. a lot of the concerns from buyers of high-end iphone demand waning -- i think if they nail these new versions, it will never be 50% or higher growth for the iphone line again, i don't think.

but if they can maintain single-digit, even 10% growth, then they can start tacking on these paid subscriptions over the top of that, that could bode pretty well. i don't think this has really happened yet, but i could easily see apple coming up with a collection of subscription offerings to maybe one set price, like amazon prime, attached to all of these devices they have out there. emily: all right, alistair barr, thank you so much, as well as caroline hyde. continuing to listen into that call. thank you both. as we reported, shares of snap have been plunging in after-hours trading. the company fell short of forecasts. this following a redesign of its photo sharing app, but the ceo

just addressed the complaints about the redesign of the investor call. >> our redesign created some headwinds in our revenue this quarter by disrupting user behavior and creating apprehension with an advertising partners. we believe our current path forward will address both issues and the advertising business has benefited and will continue to benefit from the tough decisions we make to make a healthy environment for our community over the long-term. emily: snap ceo evan spiegel there. coming up, arianna huffington talks about her mission to transform culture and her goals. this is bloomberg. ♪

emily: earlier, we caught up with former microsoft ceo steve ballmer and talk about his outlook on some big tech companies. he says he is optimistic about facebook after its latest learning results despite the controversy. take a listen. steve: if you look at last quarter's results, it would be hard to say it is too late. they still have a lot of momentum in their business, in the user account. i certainly don't think it is too late. they are smart people. i spent a lot of time over the years, a good amount of time with sheryl and mark. i think they will be very resilient. emily: ballmer also explain why he sold his entire roughly 4% stake in twitter. steve: i actually sold my twitter stake. emily: all of it? steve: i'm sure i own something index funds. but i did. i decided i am not really excited to be an investor. great thing to do but probably not for me. b, the price was pretty good.

emily: also, thrive ceo arianna huffington has been touring the globe on a mission to transform corporate culture. we discussed how much progress she has seen and where she things companies need to do more. arianna: there is tremendous progress because finally, companies are recognizing that it is not about business imperatives, but accelerating business imperatives. that culture is now seen more and more as absolutely essential for the success of a company. at thrive, we call culture the company's immune system. if the company's immune system is compromised, it will be much harder to deal with problems that are always inevitable. to be able to see disruption, to see the iceberg before it hits the titanic. culture is no longer the excuse

-- the exclusive province of hr. emily: a group of former facebook and google employees have started the center of humane society to warn companies and pressure to make some changes. what would you like to see from apple, facebook, google? arianna: the first thing i would like to see is from individuals. i think there are three ways we can effect change that is absolutely needed in terms of our relationship with technology. the first one we need to focus on is what are people doing? we are not powerless. we're created -- people put their phone in drive mode when they are having dinner with their family. it gives us a -- consumption of social media, games, apps, so we

know how much time we spent aimlessly. of course, i think what companies can do is make it less easy to be addicted to our phones. to make it less easy to lose ourselves. emily: facebook has been in a storm of controversy. among them, former facebook employees saying it is addictive. they are worrying about the impact on children. are you worried about that and should facebook be doing something more to make itself less addictive, which is also potentially undermining? arianna: we have the data. it is not a matter of opinion anymore. we have the data that shows us excessive use of social media is having an impact on people's mental health. teenagers especially. depression, anxiety are escalating. suicide. we see this as a global phenomenon.

companies have to do more. to make their algorithms less addictive. also, individuals have to do more. that is why we stress what individuals can do, because otherwise if we hold our breath and wait for companies to do something, we are going to suffocate. emily: i have to ask you for an update on uber. i know you have been very optimistic about his tenure. when you look ahead at the year of uber, what are three goals you would like to see him meet? arianna: i like his prioritizing safety. i think that has been a great initiative to make safety of riders and drivers a big priority for uber in the year ahead. the second priority that he has established is to make uber a true mobility company. buying jump, the bike company. getting more engaged with public

transportation. the third is culture. the culture of values and the work that remains to be done around inclusion and diversity. these three have been the biggest establish priorities for the year ahead. emily: 14 women who alleged they were sexually assaulted by uber drivers have signed an open letter asking uber's board to allow their lawsuit to proceed in open court. what is the response to that? arianna: so, at the board meeting, this is going to be discussed and the general counsel will give us all the arguments that we need to consider. emily: last question. the me too movement, there are some who think it has gone too far. do you think it has gone too far or do you think it has not gone far enough? arianna: i think it is an amazing historic moment.

so much pain and abuse have been inflicted on women is coming out in the open. it is a cathartic moment. but we have to remember due process. we always need to have the accused be able to have their say and we are moving in that direction. emily: my conversation with arianna huffington, ceo of thrive. coming up, we will wrap the day of apple. tim cook telling investors that the iphone x was the most popular phone in china in the second quarter. we will have more on that next. this is bloomberg. ♪

emily: now to a stock we are watching. shares fell to its lowest in five months, ending the day

nearly 5%. despite beating estimates, both gross merchant volume and growth in monthly revenue were down when referred to the same period last year. we have been following apple in this whole hour, listening into the call from revenue to iphone sales and more. ceo tim cook had this to say on the call about its strong services business. take a listen. tim: growing at a double-digit number year-over-year basis, so with that kind of change in the installed base and with the services we have now and others that we are working on, i think this is just a huge opportunity. emily: i want to bring back caroline hyde who has been listening into the call. obviously, a huge part of services revenue is apple music.

when i spoke to him earlier today, he talked about how he think the competition is not so much spotify, but the potential for people to sign up for a case -- paidd description subscription service. he said i see it differently than everyone else sees it. if you see the paid subscription services, you see the small number relative to the world population. the biggest challenge is not competing with each other, but for those who don't subscribe to subscribe and i think we are in a great position to do that. interesting now that they have 40 million apple music subscribers and 8 million subscribers, obviously driving that services revenue. caroline: this is a pie that will continue to expand for all, and spotify and apple can take chunks out of it. about $9 billion in one quarter alone. but that into perspective of what we have been seeing in

snap. snap makes seven times less that in an entire year. it brings in about one billion per year in revenue. apple brings in $9 billion in the first quarter. it just shows you how much the services side of the business is really out gunning so many other significant companies. this is a phenomenal area of growth, just this unit alone, and you add on to the back of it the growth you are seeing in china, up 21%. the area of growth in terms of the money going back to investor base. some $100 billion to go back to the investors. even though we are seeing the iphone sales stagnating slightly, up 3% in terms of year-over-year growth, we are seeing other areas of opportunity. this is why did you dig into the bloomberg and type in analysts expectations on apple, this is why. there is not one single sell rating. price targets continue to go higher. i like this comment from the call just now that the cfo says

we like buybacks -- we prefer buying back our shares than upping the dividend. why? because the stock is cheap, thinking they are undervalued. emily: interesting comments about health care. he said it is an area of great interest, we think we can make a big difference. a major strategic thrust. also talking about how the company has a heart study underway. we don't hear about future products, but a little hint. caroline: a hint of an area we are always super excited about. we have seen amazon team up with jpmorgan, berkshire hathaway to look at health care. apple looking at health care as a hardware maker. we will see how they continue to make inroads. wearables super important, especially from china in this call. emily: caroline hyde for us in london. thank you for monitoring those headlines throughout the hour. that does it for this edition of "bloomberg technology," live from the milken institute global conference.

we will continue our coverage of earnings. tesla on tap. we will be back tomorrow. this is bloomberg. ♪

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