emily: i am emily chang in san francisco. this is "bloomberg technology." in the next hour, the battle of the chilean air tech titans. apple fans get their hands on the latest iphones. who will dominate devices of the future? plus, facebook pulled back on presidential campaign support after the uproar of help it gave candidate trump in 2016.

and, gap in the family of brands age -- one to reach all ages and demographics. first, to the top story. it might be the biggest day of apple diehards. it's the first time they can get their hands on the new iphone. alto werein palo greeted by tim cook. perhaps the line was shorter due to online delivery and there is not a big design overhaul this year. just bigger, better, and it cheaper versions of the iphone x. this is all going down one day after amazon had its own a massive device launch yesterday featuring voice activated home appliances like a microwave and more. which of these tech titans will

dominate our connected lives in the near future? i have andy cunningham to answer that. he was one of the people who helped steve jobs launched the macintosh. and is the ceo of boomerang mark gurman who covers apple for bloomberg. mark, what the, what the make os today? will this reflect in initial sales? are more people ordering online? mark: we are seeing lines of year for thelast iphone x, but double what we saw for the iphone eight. if you think of the success in the order so far, i would sandwich it in between. the iphone 8 did not have strong demand but the tended. -- ten did. having few new features, that is affecting it. emily: andy, you worked for

steve jobs a while ago and now there is a family of iphones. what do you think about this strategy? andy: the real product is ios and all of the connections to it with peripherals and all of that. i think it is still one product. emily: so is it a smart strategy? andy: i think it is. the more accessories they can sell, the better. emily: in the meantime, mark, i want to get your thoughts on everything amazon unveiled. a lot of products. i think there are 70 some products. walk us through what you has real potential or what might be more of an experiment? is towhat we are seeing completely different strategies. apple sticks to a few things whereas amazon has upwards of seven new products unveiled yesterday. this microwave is an experiment

which they are not making themselves. it is just a amazon branded microwave. that will feed into their longer-term strategy. i don't know how many of the wall clocks will sell. the subwoofer products will be very niche products. the echo show will be very successful and the new echo dock with louder speakers and the echo plus. the echoes, those are the mainstream devices. in addition to perhaps the dvr for the tv product. the other stuff is around the edges, not going to make a big impact on their future. it is them throwing things at the wall to see what sticks. they hope maybe one or two sticks and they can turn those into long-term product categories. i don't see the long term strategy being the wall clock. guy whoe talked to the you saw on stage their unveiling

the devices. i asked him which devices he thought were most important and he talks about the speakers. what do you think sticks? >> i think some of the devices coming into the kitchen are extremely strategic for amazon. the reason is that this is the next trillion dollar play for amazon. once you get into the kitchen, you look at the grocery market. imagine after going after the microwave they go after the refrigerator. imagine it automatically ordering your cheese, milk, or whatever you are running out of. has where someone can come in and automatically get your products into your home into the refrigerator. to think about that market, that is an $800 billion market in the u.s.

going after that market is extremely strategic. they have to make a big couple of plays. this is on the heels of amazon, the news coming out that they will be launching 3000 stores in the next three years. this is part of a grand strategy. emily: andy, how do you think amazon strategy compares to apple's? andy: amazon is a big data company. it is not what apple is. they are a luxury brand and i call it luxury because there is a certain currency to having it in your hand. once your life is tied up to ios, your dependent on it. now while thisor marketplace is addicted to ios. when the next big thing gets introduced into the market disrupting ios, apple will be in a bad position. i don't think they will disrupt them self. a big thingseen

since steve died and they do not need a big thing. they are happy with incremental small things to collect more data and enable them to get into the grocery market and every market there is. health care is a huge opportunity and so is retail. everything is a huge market. emily: that said, google home has home speakers and that is a smart speaker that has amazon echo on a run for its money. cook last with tim year when the home pod was unveiled and i said look at all of this competition. take a listen to what he told me then. >> for us, it is not about to being first, it is about to being the best. giving the user an experience that delights them every time. impatiencet that result in shipping something

that is not great. emily: apple was not first to smartphones. apple -- and they want to be part of the connected home as well. do you think they can come in from behind or is amazon too far ahead? guru: if you are going head to head on one thing, you can see how the best product may win. i think with amazon's of strategy, they have a perfect network for it. once you launch a set of things around alexa, you have developers behind it, amazon advertising dollars behind it, and it is the full network that will make everything successful. they are not taking one thing like a phone or alexa speaker and going to market saying i will be the best. they are trying to use it as a means to drive the network --

market. steve jobs talks about the competition and i was on the earnings call when he said we can beat android tablets and they are dead on arrival. what would he be saying right now? andy: i don't think he would say dead on arrival, but he would say these are not the kind of appliances we are building at apple. we are building this great utility, amazing design, and private association. association when you have an apple product on your table. brand identity does not exist with amazon products. they are not moving in that direction. they are not creating a luxury brand. they are about the data collection. the more points to collect data and get into different markets like grocery, that is what they are looking for. at the productok

price point of each of these products, most of the projects that amazon launched are below $200. you can see they are not going after device profits. that's will not give you a lot of gross margins. if you look at how many times you will create prime membership , what is the value of the data so you know the mom is going to a particular area for their son to play soccer and maybe you need to put an amazon go store around it. the value is coming from prime membership and data and a lot of the movement they can get in the business. emily: all right. guru, mark, and andy, thank you.

onebook is pulling back support for presidential campaigns. we will take a look at that next. and, if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪

emily: facebook said it will not provide the level of support to future campaign candidates like --y offer two trump campaign to the trump campaign. republicans said that was crucial to trump's win. hillary clinton's campaign has big tech support with google's

executive chairman. to talk about this, we are joined by our tech reporter, sarah frier, and a former google executive. is a facebook going to stop doing and continue to do when it comes to presidential campaigns? is politicsbuilds politicsa business -- i can business. the more money you spend, the more people come into your office. in the case of the trump campaign, they had people coming in several times a week. to scalia used a term describe people really embedded to the campaign which was drastically different than the campaign -- clinton campaign strategy. they want to improve their website so there is more broad support for anyone that needs it. emily: i sat down with brad par

scale who is now the 20 campaign -- 2020and he had the campaign manager. listen to this. -- i thinkfacebook president trump one because facebook delivered his message. if facebook did not exist, it would have been tougher. emily: do you think without the same level of help, this time around, that will be a huge disadvantage to the trump campaign and others? >> there is a couple of things. one, i want to know what sarah said. bothoffered this to campaigns and the trump team took them up on the offer for more work. forward, whating is lost in the compensation is that facebook is a piece of that.

what brad has mentioned and other folks working on the trump team is that the amount of testing and volume they pushed has been a huge factor. facebook platforms to deliver donations and get people to sign facebook platforms to deliver donations and get people to sign up but the creative operation they put together is one of the major things differentiating them from the clinton campaign. emily: you worked on elections inside of google. google is being criticized for being less lenient. you have the president attacking google and this video leaking of a cofounder talking about how the election was offensive. tech companies, regardless of personal, political views, be engaging with political candidates? anton: that is a great question. i spent time in washington dc with google and worked around amazing folks that were really

trying to push forward a message of more people getting involved in the democratic process. whether it is google, facebook, twitter, all of the platforms are private companies. is of their goals among many trying to get more people involved in the democratic process. can communication methods be abused? that has been around for as long as people have communicated. about sarah, it is also aching for these platforms are metal proof which mark -- meatle proof. sarah: is it more trouble than it is worth? that we needed to do it differently and make it more transparent and make it more so that we are not in a position

where people can think we are biased. that was the problem with the trump campaign is that everyone said how could you give so much help to one campaign and not the other? how does that work? why would you do that? facebook told congress it offered identical support to are, but the optics of that untenable in this era where everyone is question biases of platforms. aily: how would you advise political candidate today in terms of how they should use technology? how should they exploit facebook to the intent -- extent it could be exploited? anton: they are all great platforms to connect directly. the president enjoys connecting directly to the people. when you run for office, being able to take your message to the voters is extremely important. the other thing around 2016 that gets lost in the conversation in the media side is that the

sidee involved on the 2016 were focused on advertising and sales. they are trying to work with them as they are a business. people have quotas and revenue targets. times, the conversations are algorithms or engineers. in reality, the people most involved were the ad sales teams. emily: you are already seeing how the midterm campaigns are handling this. how do you imagine 2020 will be different? , take these platforms trump campaign for example, facebook and these platforms were great for direct response. you're building your list, finding new donors, getting them to donate more. if those platforms remain direct -- great direct platforms, people will use it.

i hear now that there are more regulations and it is tougher to become a political advertiser. there are rules facebook has put onplace to help push back any abuse from 2016. all of those things have turned out to be positive for democracy and for facebook as well. anton, it will be an interesting couple of years. sarah frier, thank you. another tech billionaire is born. the farfetch founder talked to bloomberg. "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global news network, tictoc, on twitter. this is bloomberg. ♪

uber is an early talks to buy a food delivery company according to sources.

while the price is unknown, the company is valued at more than $2 billion. any offer from over -- uber would be's significantly above the valuation -- be significantly above the valuation. tch jumped and we spoke to the ceo and he explained how they will use the funds to grow around the world. >> there are two opportunities. one is the growth of online luxury going to 25% in the next seven years. this is a 100 billion incremental opportunity justin online luxury. then, there is 75% of on.sactions that we will go the question is, how will technology help brands and retailers improve the consumer experience in the digital area.

this is something that we are passionate about at farfetch. we have talked with chanel on an intermediate partnership. we are investing on multiple opportunities. >> when i think about where online luxury goods sales have taken off his asia. avenue -- a third of revenue from customers in asia. i know there is a partnership with jd.com, how have you been so successful selling in that market? very exciting as an opportunity. citizens is one third of the luxury industry. whether they are shopping at home or abroad. online access is low in china. that means there is an incredible growth one-way for that territory -- runway for

that territory. that led to the partnership with jd.com. we have our own team and website. we have local marketing and local service. it is a truly localized experience. that is what's driving incredible growth to the brand in that region. >> with the jd.com partnership, talk about how you are using we chat. you have helped retailers get onto stores on that cap. instagram is pushing hard to selling on their platform. app.chat is an amazing we have had over 900 million users.

you have instagram plus we chat and paypal in one app. that is very powerful and interesting. we are powering the we chat presence of luxury brands. we think that is interesting for the industry. this is something we will probably see in the western instagram or other apps becoming more integrated with platforms like ours. ceoy: that was the farfetch speaking to bloomberg. ge has been led through several transformations and the person responsible once to do the same for others. that is next. plus, gap is the only retailer to make the first gender

equality index. -- they tell us why their mission is more than just a selling close. that is next. this is bloomberg. ♪

this is bloomberg technology on emily chang. as ge's first female vice chair, she pushed the company to adapt to trends. green initiatives like eagle imagination along ,ith msnbc, hulu, nbc digital imagination at work. now she wants to help others successfully next navigate change. in her new book, she shares her own transformation story as well as ge's to guide entrepreneurs

and execs. she joins me now in the studio. you worked and of big company for a long time. what do you mean by imagine it forward? >> we need to think ahead. we need problem solvers. you could argue that maybe we need a few more people who can think about the unintended consequences of some of our technology. harness the hard to power of change. how can big companies is because ge be nimble in this new age of technology? taking the action to do it is another thing. you need to create two tracks and a company. you need your core established and you need people who are creating the future. there are different kinds of people with different measurements and different funding requirements. it takes a longer amount of time. >> had to the people creating the future convince the feature

in -- people in the first track to do things differently? >> they need to come together for certain things clearly. you need to set joint goals. you also need rebel pirates and people who come in to try to disrupt what is happening. that creates a lot of tension in the early stages. >> d you think it is possible compete with apple and google google and facebook? >> it is something to think about. a hundred 25-year-old company doesn't get to be that without knowing something about change. we can look at sustainability. the stakes are always higher as you get new companies disrupting. as investors, we watch amazon. they are getting bigger and more complex. the stakes are higher and the ability to take risks, the question might be can they

continue to compete and be as fast and nimble as we have known them to be early? >> that is my next question. amazon facebook and google are so big, it is hard to imagine them not being so dominant. do you see that in the future? >> you have to assume that that is an eventuality. hopefully, they are thinking about it area hopefully they are sitting there going are we still willing to take the same kind of risks as a public traded company and there are just different expectations? companies tend to get a bit more of an acceptance. traditionale companies. look at the challenges, take tesla. culture is a challenge. these companies can learn a lot from the established companies that have had to figure out adaptation. can learnof companies

a lot from the incumbents. companiesf these new are the most destructible? >> they are all destructible. -- disrupt the ball. have a head start. i was in the digital media world will miss on netflix as a tiny whisper. feet hulu. we knew that was coming. we didn't know how is going to get there. now you look at it 10 or 12 years later. the same forces will happen to netflix. feel like everyone needs to keep imagining forward new scenarios and new alternatives. >> your book is personal and it is rare to hear personal lessons from someone who has had the journey that you have. you were ge's first female vice chair. why julie? >> there was a management change.

and and hery came wanted a new team. that is what happens often. it was earlier than i expected to leave but a new guy new team. -- what are the challenges we need to know more about? there are so many, what don't they know? >> we need to embrace more difference. we hire people like us. it is a human trait we have to overcome. of excuses all kinds why they don't want to hire people who are different. women for a number of reasons most companies have a good track record of hiring woman and then they lose them as they progress in their career. we need to address that issue. we need to have programs that allow women to different ways to come back in and out of the workforce. those are happening, but it is

too slow. at the end of the day, we need to make way for more women. when he did have a pipeline that takes time. take your time out there fighting the future women leaders of your company. >> you have a killer line where you challenge male venture aretalists who have said we looking very hard for women but we are not prepared to lower our standards. you said who created the standards and if you can't find women who qualify that is absurd. what are some of the real reasons behind the scenes that women are not getting hired? we are have to population. >> people that want to take a risk on something different. it is not proven. they haven't had the same path as us. they clearly cannot be as capable at this job. you document that well. even the fall -- false promise of meritocracy, who is setting the merits? i think people are well-meaning

but they are not thinking through enough and exposing themselves and challenging their thinking to say is this really true, am i doing enough to challenge the believe? i think we let it pass. people are not taking enough risk to hire people who are different, disruptive, potentially going to build a brighter new future. it is the risk at the end of the day. >> we don't use the words visionary and a genius to describe women yet we use it to describe them. how fast do you see change happening? , you haveays ask me been there in the trenches behind the scenes. how fast are we really going to see the numbers shift? >> i am optimistic. there are a lot of people saying we have to make a change. i wish it were faster. for having worked a whole career had been moreere change. it is disappointing and frustrating. i see it for my daughters and young women coming up.

some of this should have changed by now. you are still having to work much harder. how is that possible? >> what is next? >> i am doing my book tour. then i will come back to work in a different way. a veryoing to be different path. >> do you think ge can get back to greatness? >> i think ge is great. it is a great company that makes stuff the world needs. it is in a bad place in the stock market right now with complex issues that they have to work through. people underestimated the complexity of ge. it is not an easy fix. , thank you sock much for stopping by. software maker adobe has agreed to buy marquette a.

they will compete against salesforce and oracle. it would be adobe's largest deal ever. coming up, gap wants to close the diversity gap. the ceo tells us he believes he can do well by doing good. is bloomberg. ♪ the executive exodus at tesla

continues. bloomberg has learned that the leader of global supply management has resigned. he is the fifth senior executive to lead tesla within the span of a few weeks. that coincides with a series of missteps by elon musk. and amazon online pharmacy can lead to the closing of 70,000 brick-and-mortar pharmacies in the united states. this according to a note from bernstein out today. says that small independent pharmacies are likely to be hurt the most. he estimates that by 2027, amazon might have 12% market share in prescriptions. the company bought pillpack over the summer. that as new concern two-year surge in demand for memory chips is fading. macron gave a revenue forecast that fell short of estimates. the company said its margins would suffer because of president trump's latest round

of tariffs on chinese imports. they have an assembly plant in china. gap is the only retailer that made bloomberg's gender equality index this year. 74% of global employees are women. beyond gender, the company wants to connect with everybody. the diversity of employees is a big part of that. we talked about strategy of a life -- to a wide base of consumers. the other side of these values is the important component of our value proposition. we are able to attract people here. of techin ground zero and we have a huge tech business inside his company. we are able to attract people because of the values that we have is a company. that diversity that we have inside the organization does showing itself in the

up in front of our customers. if you have a point of view whether it is racial diversity or gender diversity or whatever, that is exceedingly important and a product like ours where they are inherently emotional read >> do you have any examples of where you made it tweak or a shift on one side and you saw a shift on the other? >> let's go back to old navy plus. this has not had a significant presence and the plus product space. it is missing opportunity for us. bodyve a wide range of types and sizes and this company. some of the people who are most passionate are people who would meet me in the elevator and say i love this company but i cannot where our products. there was a lot of passion from people with more diverse body types in saying let's open up the aperture of our products so we can connect with more people. , there is an art

and science associated with it. having people in the building where the close every day super or to to getting it right. about diversity is willing to do the hard work where it is not working and a knowledge the bright thoughts. you have store managers who are women. that is not the only member -- measure of diversity. where do you want to do better? >> from a gender standpoint, we are exceptional. we have externally audited paid quality which i am proud about. i have four children, three are girls. to be able to lead an organization that has that is an excellent example starting personally for me. we have a lot of work to do with racial diversity in terms of representation. not equality, but diversity. the fashion industry has not historically been a racially diverse industry. that is something we are working on.

i also look at my board would since on the top of the company. i want to have more diversity on my board. i am very much connected with my chairman and our whole board in continuing to add diversity bush both gender and racial diversity. about advertising, there was a new york times story about the coo of uber looking at an ad about a mixed race couple and saying how often do people see mixed-race couples? it struck many people as tone deaf. how does it strike you? >> let me answer the question slightly differently. if i look across our advertising, when i was running cap brand in this building, we had a big t-shirt campaign over the summer and we didn't add two men in time the same t-shirt -- inside the same t-shirt.

sweatedmotional and we a little bit how people would react to it. we said that is part of the world we live in today. same-sex couples. we put it out there and we doesn't criticism, but it was overwhelming some work. advertising, we are trying to connect with everybody. that is one of the big virtues of our brand. democracy. there are plenty of mixed race couples. there are same-sex couples. it is the modern world that we live in. i want the way we present this company to reflect the world we live in. >> you see of your advertising in your customers? >> 100%. people write to me and talk to me. i sit on a plane and someone finds out what i do and they give the two hours of their opinion. aen they see a diversity in

body type or from a racial standpoint, it is always overwhelmingly favorable. >> our conversation with cap ceo. there was much more to it which you can catch at bloomberg.com. coming up, the rise of the videogame or as an athlete. how these competitors are getting their share of the limelight on traditional sporting networks next. we bring you our best interviews .rom the week tune in the saturday for the best of bloomberg tech. this is bloomberg. ♪

became stars, the

entertainment industry begrudgingly realized their value and to embrace them. now we are seeing a traveler -- similar trend in sports as professional gamers are recognized as athletes. some find that hard to believe it is a real thing. a professional will be on a magazine cover for the first time in its 20 year history. ceo andus now is the founder of skills. what do you think about putting a 27-year-old streamer on the cover of a magazine? >> this is a good role model for kids. e-sports is reaching the point where it is recognized worldwide. just like the off-line equivalent. as the name might imply, e-sports is short for electronic sports. it is the online activity we have recognized for dozens of years off-line with the sporting

community. >> are gamers athletes? >> absolutely. in the same way that you would call anyone who plays and off-line game an athlete. practicing in front of audiences that range in the millions. popular thanore many off-line sports. >> here we have a streamer on the cover of one magazine. what do you think mainstream people will understand or start to agree with you? thatere are projections speak to that. this year, you will have 200 million core enthusiasts watch e-sports worldwide. that is someone who watches one hour or more per day. e-sports as a movement and thing will have 2 billion people who are aware of e-sports by the early 2020's. e-sports has been rising over

the last 20 years. cusp ofight now at the where you see a transition from competitive gaming two spectators audiences and recognition of e-sports just like the off-line equivalents. >> skills has more than 18 million players. awarded millions of dollars in prizes. what do you do? >> skills isn't e-sports platform. we power game sports platforms to provide the experience for millions of consumers. consumers log into the network, they can then access and play in thousands of different video games where we power a competitive multiplayer environment. we recorded and broadcast those tournaments. you can play in many different varieties of formats using skills on thousands of games. >> are you thinking about things

around tech addiction? forcan't play basketball hours on end but you can play a videogame for hours on end. how do you think about the potential downfalls of that? sports,ny types of there are governing rules and protections for the consumers and the players. if you think about the off-line world, i grew up playing soccer. i played more than a few hours of soccer a day as a kid. many hours per day on the field or practicing shooting. it is the same thing that you are seem with video games. when you are doing something less strenuous, you are able to do it for longer periods of time. sayn't think anyone would that someone who plays a lot of soccer is an addict. they refer to them as an enthusiast. that is the cultural perception of gamers that is changing.

everyone is a gamer. there are 2.6 billion people playing mobile games worldwide. and more, what gaming will be recognized as an competitive gaming is the online equivalent of what is happening in society for thousands of years. >> what is your advice to parents? most parents i speak to are trying to figure out how to get their kids to not play video games. >> what is a videogame? that is another question when you think about the near reality of augmented reality and virtual reality and where will computing impact video games? i think about pokemon go. people physically gathering and wondering their neighborhoods playing a videogame. is that bad for those people or is it just a new form of activity that is transforming society? that is where it is interesting to think about the history of

when videogames were super basic on older computers or console systems like the atari versus today's computing environment and the near potential of video games. it is really just the different digital equivalent of what has been happening off-line. evolveent continues to and make use of these new forms of computing like virtual reality, we will see videogames become very much a mainstay of american and global culture. >> e-sports, the beginning of it going mainstream. thank you so much for stopping by. that does it for this edition of bloomberg technology. i'm emily chang. have a wonderful weekend. this is bloomberg. ♪ this isn't just any moving day.

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david: you have become the wealthiest man in the world. jeff: it was fine being the second wealthiest person in the world. [laughter] david: what more than books? jeff: i thought we can sell anything this way. what happens when you offer a free, all-you-can-eat buffet? who shows up first? the heavy eaters. i have no idea what you are talking about. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪