i'm alex in new york in for emily chang. and this is "bloomberg technology." big blue is a big deal. i.b.m. looks at the cloud with the $33 billion acquisition of red hot. former army captain commanding victory on the back of a social media storm. we will look at the role technology played. tech recoils from gab. gab is at the center of a storm against extreme ideology as it promotes itself as a haven for

free speech amount look at the role played in the brazil pole. and the pittsburgh synagogue shooting as ahead. to our top story. i.b.m. throws its hat into the cloud computing ring. they are buying red hat though $33 billion. they spoke to bloomberg earlier about the sale. >> we have been working with i.b.m. for many, many years. and really over the course of this entire year we started to do more together. we made some big announcements in may at our summit of more work we are doing together. we started speaking more seriously back in april, and so it has been something that has kind of continued to evolve, and it became a natural next step. in terms of why we see so much value for red hat is we do see tremendous opportunity for open source in the enterprise, and as the leader there, we see a large market and a growing market in front of also.

what we have lacked is scale in our go to market. we have lacked a depth of customer relationships because we are a newer player coming up. we have lacked deep industry vertical expertise, and we lack the overall level of investment we need to meet our full potential. i.b.m. brings all that. together we can dramatically accelerate the red hat business and grow i.b.m.'s business as well. >> what about from your point of view? a lot of people said i.b.m. needs to make a move. this is a big move. this is one of your biggest during your tenure as c.e.o. why did you decide this would be an important part of your legacy? >> we have been reshaping i.b.m. for this moment. this has been about resetting the entire cloud landscape, and this is the inflection point to do it. chapter one of the cloud is over.

they have moved the first 20%. that is done. but the 80% ahead that is a $1 trillion market, and this is the moment. and to go after it, they need a hybrid cloud. they need what jim and i do tomorrow, on prim, a private cloud, many public clouds. they need it based on open standards. they said they are tired of the lock-in. we are the true open source, the portable answer for them. we need to manage multiple clouds, and they have data spread everywhere that we can securely pull all together. this next chapter is the $1 trillion market. 80% of their work loads are going to move. we talked about our expertise and services and ability to that. we catapult ourselves into number one. you have to remember, jim lennox, i.b.m., open source, we are the biggest contributor to the open source community.

we have a long history of that. linux is the starting point for the cloud and it is a destination. when i say phase two, we own starting point and the end point now. that is a great move for i.b.m. and it is why it is so really accelerating all of i.b.m. and good for our high-value model. >> i.b.m. chairman and c.e.o. let's take a deeper dive with daniel ives, managing director and one place. you remember the days when i covered this company from 2013 to 2015. she is saying now is the inflection point to cloud. some may argue that inflection point has already happened. what do you take of them making this admission that they can't build it in house. >> they should have done an acquisition when we were talking in those days.

they didn't do it. they were hanging their hat on walson, and that didn't do it. -- hanging their hat on watson. that didn't do it. this can reshape their software practice and reshape their global business services practice where they have lagged to companies like accenture, lloyd and others. -- and deloit and others. alex: and that global services practices is still a majority of revenue, dan. when you think about how this business does get integrated, jenny made her name on that service side in consulting back in the day. how much pressure is on her to have a seamless integrate with red hot into the broader culture and products fit? >> there is a lot of heat in the kitchen to integrate this successfully. there is risk and opportunity as she talked about. right now for cloud, they needed to make a big strategic bet. if you look at it, there is v.m. ware, red hat and a handful of

others. if they were going to do it, they needed to do it now. definitely a few years too late, but integrate is going to be the key to the street. how does this affect microsoft and amazon, a two-horseracing cloud. can i.b.m. become the number three player? alex: who is shaking most in their boots right now? is it amazon, the number one, or who is most fearful? >> amazon and microsoft are drinking cap chin owes. they are drinking cappuccinos. it is their world. i think you are seeing a lot of consolidation. cloud air at work. you are going to see a lot more m&a in cloud. this is just the tip of the iceberg. the scale, that is really going to be the issue about these two players coming together. alex: and that did seem to be what those two executives talked about.

red hat has the growth and the small size, and i.b.m. has the scale. but revenues have fallen by a quarter since she took over in 2012. do you look at i.b.m. as a growth story? they are reigning in buy backs and not giving out as much cash? >> we talked about this section or seven years ago, that they should be buying more companies like this. this gives them a lot of good products to sell to the market. it could benefit somebody lying -- like an amazon, microsoft or google, because you about shift more work loads to the cloud. are they going to be really open in terms of working with these red hat products to move some of the product to other cloud and not just say hey, why don't you move this to i.b.m.'s cloud? that really is a big thing, because if they are not open, that could be an issue. >> red hat is already working with amazon and microsoft. is that a cultural shift for i.b.m. to say look, our products

have to be cloud agnostic. do they have to change their d.n.a. to make that work? >> they have to. we have seen with microsoft that is the only way to show people that you are agnostic to whoever the end party in. you try to stick your own technology in between, they will be in for a surprise. alex: back to your point about software acquisitions. i covered the m&a space. everybody is talking about software is where it is at. semi-conductors are slow. in terms of the knock-on effects of this deal, who do you think should be looking at who's out there, the potential target? which of the big tech companies will need their own red hat to be in the mix? >> i think right now you look at the core tech players is that are going out there, obviously like microsoft, oracle, cisco, you look where everyone is looking. you look at names like pivotal, in terms of some players that could be consolidation candidates.

alex: and the new i.p.o.'s are getting picked off every other day. >> in this location, this is what we are telling investors. stocks would be down 30% or 40%, and they are in there with bids. this puts a bid in the sector. it shows where the evaluations are in terms of. -- in terms of m&a. is i.b.m. successful and where are the impacts? alex: valuations have been high. with github at a nice premium, does this change the narrative for buyers? are they opening pocket base? -- their pocket books now? >> you are going to see a surge in m&a. how much will security play a part in this hybrid strategy they are pushing with the head

-- with red hat acquisition? >> privacy is the most important thing because you are moving data from one ecosystem to another ecosystem. it has to be protected while it is in transit. alex: great stuff here. we will be continuing to walk watch and hear from both of you into how this acquisition gets integrated into i.b.m. thanks for joining us. more unrest at snap. the company has lost its vice president of u.s. sales, christine o'hara after she was promoted to business officer. but then he change his most. -- changed his mind. they went as far as notifying o'hare of the proceedings, but two days later rescind thad offer, instead hiring jeremy

gorman. now o'harea is the latest to leave the social media platform. she said she is leaving due to changes in team structure. coming up, looking ahead to facebook's third quarter earnings and a discussion on the impact of the u.k.'s digital service tax on big tech next. if you like "bloomberg news," check us out on the radio. you did listen on the bloomberg app, bloomberg.com and sirius-xm. this is bloomberg. ♪

alex: playstation 4 is like the videogame character that can't be defeated.

five years after its debut, sony's console is enjoying one of the strongest product cycles in the business. this is thanks to a steady stream of popular game products. they shipped twice as many ps-4's as x-box ones. that puts them in good place to conquer the next challenge. ed via thever web. the technology finally appears close to being ready. looking ahead to facebook earnings out tuesday. the social media giant is expected to report third quarter revenue of $13.billion. that is up 34% there a year earlier. those cheery projections, belie a quarter of turmoil, including executive departures, threats of regulation, and now the government is government is proposing a digital tax. joining us from portland is brian weaser who covers facebook for pivotal research in new

york, and sarah from new york. sarah, i want to start with you. i feel like tech investors have been waiting for things to turn a bit cheerier, and yet this october has been as scary as the halloween month potentially promised. what is going on here? are investors tired of these things? >> it has been kind of ugly. a couple of things going on. you can couch it as this momentum trade unwinding. a lot of these big tech names are all momentum names as well. if you look at the momentum factor, it has really been taking a hit this quarter. if you look at the new york stocks and that index taking a hit. the s&p 500 information and technology sector as a whole. some are say yes, they are exposed more to china in trade, and you hear about the regulatory issues. you have the issues on the single company front, but also at large as you see the names get pulled down as a whole. >> you say folks are rotating

out of this momentum trade, that makes me wonder is this bull market coming to a fruition if folks aren't so excited about the fast movers? how much underpinning is are people underpinning risks or looking at it and saying maybe it is time that it is finally over. >> we are starting to see a lot of risk mitigation, but i wouldn't say that investors believe this bull market is over. people have said that tech has been so important to this bull market. as we have seen some rotation out of the very large tech names, we have seen a rotation into value. you see names like financials, utilities, consumer staples, some of the more classic value plays or defensive plays are getting a bid. investors feel relieved that other sectors of the market can take the leadership position as tech falls off. alex: facebook is set to report earnings on tuesday.

what in particular are you watching, and how much was that big sell-off last quarter haunting investors as they are looking to those results? >> well, in terms of what i would be looking for, it is just ongoing commentary about what should be continuous expense increases and deceleration of revenue. it is really the pace at which both are are occurring as management expected. i am not sure the company fully acknowledges the scale of investment it needs to make, for advertisers and everyone involved. the risks are still to the down side there. and that is not even getting into spending on content they need if they want to play on real tv advertising budgets, which they do. in terms of the downturn, i think to your comments earlier it has been more momentum driven more than anything. i think regulatory risk is a factor, but i don't really feel

that investors fully comprehend how much is wrong with facebook yet. alex: and that is a big statement there. where specifically do you think the street should be looking in terms of what you do think is wrong? >> everyone can form their own judgment if they list the problems for themselves. i have a something of mcgee i have listed a taxonomy of mismanagement. the company is structurally badly mismanaged. if you go through the dozen or so groupings as i come up with them, you question why there aren't more risk. the other issue investors aren't fully comprehending, it is the groat gunshot growth in the -- is the growth on the advertising market. advertising not based and own arc. you have to look at the share wallet that they can capture from advertisers out there. i think when investors start looking at the pool of available money from advertisers, they

start to realize that they can't be modeling facebook the way they have been modeling it. that starts to cause a reset of expectations over the long run. >> when you look at where analysts are pegging facebook for the upcoming quarter, last quarter they were surprised and folks didn't like that. it was more than about $120 billion in value got knocked off that stock in one day. in terms of analyst expectations, what are you looking at from an equities professor from facebook tuesday. >> when you speak to analysts, a lot of people say they hope it doesn't get any worse. there is going to be a lot of focus on expenses, how brian was just talking, because we need to see what they are doing, how much they are spending ahead of the midterm elections and privacy concerns. and active users and engagement. so analysts are expecting a bit of a pick up from users from $2.23 billion to 2.billion. >> when you look at facebook, instagram has been pushed into

the limelight here as the main core product. it has had issues. how much pressure is on instagram to perform, especially in the context of instagram's leaders are now out the door. what are investors looking for out of that part of the business? >> first of all, investors are looking at the wrong things when they look at instagram, because instagram is an integral part of facebook when it comes to the way they make money and the way they are run notwithstanding the change in management. there is one sales force for the combined entity. there is one pool of advertising. unless you believe they are going to take a $20 billion capital expenditure budget and build a rocket to mars and establish an advertising eek -- ecosystem. there is one market. it is the same issue on a combined basis. >> we have had a lot of swings from some of other tech giants

that have reported, amazon, et cetera. are investors still looking for big volatility after earnings? >> i would suspect so. a lot people were hoping after netflix, amazon and others, that we would get this boost in the market, and we didn't. netflix, even though they killed it, we didn't get the boost in the market we were hoping for. a lot of people are looking to facebook tomorrow, maybe apple, and think maybe those two can surprise to the up side and get us out of the funk. if not, the damage could be more. alex: thank you for joining us. ahead, delays plans an i.p.o. we've have details. and bloomberg is life streaming on twitter. this is bloomberg. ♪

>> bloomberg has learned that india's biggest wireless carrier is delaying a planned initial public offering of its africa unit due to emerging oil and company stocks. it was originally aim to go list the unit in london by march, but now it has pushed back that share sale by half a year. it plans to seek an enterprise value of $8 billion for the africa business. that is according to people familiar with the matter. wal-mart sam's club is looking to get high tech. it is opening a test store in dallas called samples store now whereled sam's club now shoppers will be making purchases on smartphone. the location will feature electronic shelf labels that instantly update prices, and augmented reality displace that

-- displays that can transform digital shopping carts into pirate ships. it shows how wal-mart is put more invent dollars into the chain. universal pictures had another strong weekend with the latest installment of its halloween movie series. the horror flick beat the competition for a second week bringing in $32 million in north america alone. global earnings have reached $172 million. warner brothers a star is born with bradley cooper and lady gaga held on to the second spot with $14 million in ticket sales. ahead, brosolanaro swept to power in brazil's proceedings election on sunday. we discuss the role that social media played in his win, and what other countries should take from it. plus, tech companies recoil from gab for its link to the pittsburgh synagogue shooter.

and the debate over free speech on the internet is front and center again. this is bloomberg. ♪

i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience.

my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. alex: this is "bloomberg technology." i am in new york in for emily chang. jair bolsonaro swept to power in brazil's presidential elections sunday, making a hard pivot to the right. bolsonaro had a right wing platform. the win promises to strengthen brazil's ties to the united states. his rise to power was like that of president trump. it benefited greatly from social media. what's app is one of the main tools used. increasingly it is also a part of politics. a recent pole found that 44% of voters used it what's app to learn politician information.

the app spread alarming amounts of false information and news. let's head to rio de janeiro. cris co-authored a report. and david is with us. cris, i want to start with you. 44% of brazilians were getting their political news there these days. what did you find when you looked at the messaging going back and forth. how much is real and how much of what we call fake news? >> what we see is a big, big amount of misinformation going back and forth on the what's up app system.ht'hat's we have analyzed about 50 images, for example, and out of those 50 images we got actually to analyze, we only found that

four of them were totally true. that is like a very little amount of good information being around in brazil. that is very low amount of good information. >> four out of 50? that is very low. when it comes to where we have been concerned about disinformation, a lot of focus has been put on facebook and twitter, but it seems like these more private conversations is where it is at. cris, how concerning is this, that these are a little more out of the public eye, not on a message board. >> here in brazil, we just finished the elections. we have spent about two years analyzing and trying to figure out how to fight misinformation on facebook, twitter and google, the social media that we usually read every day. now we have this whole new world being opened up. how do we fight misinformation

on encrypted platforms? that is something that we in brazil didn't figure out very much and someone else may need to figure out. >> david, puts this in terms of lacks. -- in terms of this election. bolsonaro was not in the public eye before this candidate cycle. how much did this kind of ground swell of social media actually change his assent to power? >> it is tough to know for sure. what's app, it is not so popular in the u.s., but it is encrypted from end to end, so you really don't know what the impact is. he built a very big social media following both on facebook and twitter, and a lot of the stuff goes through what's up, but you really don't know how much. certainly was much more concern about the use of it and how it influenced in the first round. cris could probably speak better to that, but it seems as though

it came down a bit in the second round after the courts began reacting to this. it was a big bombshell report saying a company or companies were financing mass what's app messaging to people, the brazilian electorate, and that really had a big impact on the first round, but we don't know how much. we won't know how much. >> what we do know is that tough talking does make for viral content, david. in terms of what he is kind of pushing out there in terms of the messages, how much is it tough talk, and how much is there actually policy behind some of the ideas around security, gun laws and privatization that he has been really pushing? >> well, i would say that is an issue not just regarding bolsonaro, but a lot of the candidates in this race entirely. it wasn't about policy propose proposals. this wasn't a race where

everyone is saying i am going to do x, y and z and he was the only one with bluster. there was that on all sides. he made clear where he stands in terms of traditional family values, and liberalizing gun ownership, policies like that. others say he has always been fixated on the idea of leveraging brazil's economic growth by mining the amazon. that is something you didn't see much of during this campaign but is nevertheless one of his big policy focuses, as well as privatization as we mentioned earlier. that is something we didn't see as much in the race, but is a cornerstone of the economic model they are going forward with. >> cris, i think it also does come down to a question of how do you define fake news? we are looking at gab, the platform that is pushing the far

right information. it has been present here and down in brazil. a lot of the followers of the new chiefdom down there is on gab. how do you parse what is news and what is not in an election important as this one? >> there are many platforms right now popping up with dirty information. what we do is we actually have a methodology that is part of the ifbn. it is the international fact checking network. it is being spread all over the world right now. what we did, this weekend on saturday and sunday, we have like an initiative, a collaboration between all of the platforms there doing fact checking here in brazil. just to give you an idea, we actually worked for 24 to 48 hours, and we debunked about 50 articles that were false information. that is a lot. that gives us a ratio of one lie per hour in the last weekend of

the location in brazil. that is a lot. >> cris and david, thank you both for joining. speaking of gab.com and the role it played in the brazilian election, the social network is now under scrutiny in the u.s. it is a two-year-old network that billed itself as a free speech alternative. it has been a haven for neo nazis, nationalists and others. now it has been linked to the synagogue shooter. before he barged in and opened fire, he posted one last message on gab. the gab home page currently has a statement, part of which states we are most censored, smeared and no platform start up in history, which means we are a threat to the media and to the silicon valley old guard game. =-- oligarchy.

gab isn't going anywhere. let's bring in our panel to discuss. our reporter josh, and david kirkpatrick, found of of techtromony. david i want to start with you. when it comes to misinformation, facebook has been the platform we are looking at, but gab looks like a similar beast here without the moderation that we see facebook and twitter pushing into. how do you bridge the gap? >> there is no question that we have seen some of the most hateful dialogue moving to the more specialized platforms. what's app, and others, these are at platforms for playing distortion. there is no easy answer to what we do. i think we need facebook, twitter, youtube and other major sites to continue their efforts to essentially ensure that hate speech is kept off, particularly threats of violence.

one of the things i worry about is a site like gab with no resources, which attracts people with franc views, it doesn't have the financial capability to really do the moderation if they were to, for example, say you cannot make threats of violence here. they clearly haven't been doing that, and that is why this got through. >> i can't help but ask myself if this is what gab would be like if -- what facebook would be like if there was no moderation, if they would look like a gab. facebook has dragged its feet on calling itself a media company and slow to the moderate content game. is this fuel for them to take a closer look at what is going on, on the site and use the resources to keep an eye on things? >> i think all of the larger social media platforms are really trying to say the right things about this. over the last year or two, they have increasingly owned up to it, at least rhetorically, saying we are going to do something different.

they are not quite sure what to do. meanwhile, with gab, you are seeing how a lot of piece companies talked before they realized they were important. hey, people are going to say what they are going to say and we are a conduit. >> being a haven fee speech -- for free speech seems like noble for gab. how are users reading supposed to pars through what is real and what is not? >> i think with gab in particular it is worthwhile to point out that they have two sort of conflicting messages they will make. the first is they will say we are a free speech platform. how can you possibly be against that? at the same time, their c.e.o. andrew torba is very familiar with the standard, angry right wing rhetoric. he is very comfortable in those worlds. so he will say those things while getting distance from those things and saying you can put anything you want on gab, so

you can't really hold me accountable. >> a platform used to just be a platform. there was no moderation. that was the beauty of the social media sharing sites. folks are picking their camps now. what does all of this say about the ecosystem of the internet these days? who is a media company, and who is not? is that even a thing? >> i think that is a really important question. i personally believe, talking to a lot of team about facebook almost every day, facebook's only recourse it faces with hate speech and political manipulation is to move more and more towards viewing itself as a media company, which means it is responsible for what is there. but the volume that is there is so gigantic, they will need an amazing number of new employees and every last tool that artificial intelligence can give them. even then they probably won't be able to keep it down. what we do about misinformation,

at the moment we don't have the answer to that. >> i want to get to something in terms of knock-on effect. the alleged pittsburgh shooter posting on social media sites, folks don't want that out there. a lot of folks don't want that out there. but is there fear that tech companies start knocking out content and being a story about them being gatekeepers. >> that happens when you are a media company. the "new york times" is not going to put somebody on here somebody advocating violence again jews. that is the prerogative of a major media company. unfortunately, we have these very marginal, little low-financed right wing oriented sites like gab and others that really would like to see their usage increase by incendiary content. that is the problem. >> david kirkpatrick, and josh,

thank you for joining us. coming up, a saudi arabian conundrum. how will he balance the things in the kingdom with the murder? plus, apple is set to give two of its product lines upgrades at the new york event. we will discuss what is rumored. this is bloomberg. ♪

alex: as the details of journalist jamal khashoggi's murder unfolds, they find -- softbank has found themselves entangled in controversy. the cornerstone of the japanese investment companies like uber

and we work. now they are trying to invest an estimated $45 billion into a softbank fund. as the khashoggi killing sparks debate, that threatens the fund's future. doubt on the future of the vision fund. joining us now to discuss his unusual venture, john verones. we hear from these people that they are the backers of the executives. but now l.p.'s are in the spotlight. how much concern is the saudi backing in the vision fund? is it something that is having a visceral reaction in the valley? >> thanks for having me. yeah, i think it is fantastic that that conversation is really reaching the heights that it is. we are now talking about where the money comes from, and i think it is good for the ecosystem.

alex: conversation is one thing, but action might be another. is there fear that folks don't want soft bank with its l.p. partner, saudi arabia in their cap table. will some turn down investment in these massive funds because they don't like who they are aligned with. >> the best entrepreneurs always have a choice. now they are starting to ask where the money do comes from. it matters to them, the track record of some of the l.p.'s that are involved now with some of the most prominent v.c.'s. the ceo has used his things of investment grandeur to make some change. is there a possibility that he could actually go out and try to effect change in saudi arabia? is that something you see out of sun? >> wow, i don't know that i'm qualified to say what he is going to do in saudi arabia. alex: let me talk to something

that unusual ventures is an expert in. your l.p.'s are chosen in a is - in a particular manner. you are conscious of who is backing your funds. can you talk us through about why you have chosen to do something that frankly is unusual? folks are selective, but maybe not quite as much as you have been? >> entrepreneurs are our most precious resource. as a venture capitalist, you work for two constituents. you work for the entrepreneurs and for the investors who give you money. when we started unusual, we felt there was an opportunity to do something that was better for entrepreneurs. we also felt the responsibility to drive the industry forward. that had everything to do diversity of the venture capitalists themselves, to where that money comes from and where that wealth creation goes after the fact. we feel like it is one of the most impactful places we will see growth in the economy going forward. we went to children's hospitals, historically black colleges and foundations because we wanted to be working for them, and we believed our entrepreneurs would care about that.

alex: one of the best kind of quotes of the year in my mind was when bill was talking to emily chang back at the goldman conference earlier this year. he said something that i have seen but he put into good words. v.c.'s these days want to be in the best companies, and so they are programs not putting as much pressure on management teams when it comes to governance as an investor should. are we at an inflection point where v.c.'s should be taking a tougher stance, even if that means the next deal down the road, they are not given that stake or spot in a company? >> well, bill is a smart guy, and he has been doing this a long time. i think the best entrepreneurs are going to start asking the question. that is really what it is about. we have starred with transparency. it is not different than the gender equality issue that we have been talking about a lot in the past year the the entrepreneurs didn't always used to ask about that. now you are seeing them step up and say how about that gender equality at your firm?

similarly you are going to see the same thing with the investor base. v.c.'s will be thinking more about where they get that money and where it starts with. that is where the change begins. alex: are you seeing c.e.o.'s ask you more about you l.p.'s these days? are they caring about the ones who are backing them? >> in the past week, absolutely. this has been an amazing surfacing of the issue. there has been a real backlash. from our perspective, it is great. alex: well, that is unusual ventures co-founder and managing partner, john verones. thank you for joining us. coming up, apple is releasing even more hardware before the holiday season. what updates to expect for the ipad and the mac coming up. this is bloomberg. ♪

alex: apple may have released its latest phones and watches last month, but the company isn't stopping there. on tuesday the tech giant is hosting a second event here in new york where it is expected to launch a lot of new hardware. at the center of the stage, the revamped ipad pros with face i.d., and a new mac mini for professionals. they come without notable changes as the iphone continues to drive sales. here is mark. you are in-house expert on all things apple gadgetry. what are folks expecting out of this event here in new york? >> exactly what you said. i couldn't have said it better myself. the two main things will be the new ipad pro and a new low cost 13-inch laptop, which will be a successor to the macbook air. neither of these products have seen updates in quite sometime. the mac book air, the last time there was a major revamp was

back in 2010. steve jobs actually announced that, and it was one of the last products he announce the as c.e.o. the ipad pro hasn't seen notable changes since introduced in 2015. there was a fair size upgrade back in 2017. but there will be the biggest revamp in the product's history. alex: in the scope of apple, these are not the kind of products that they have been refreshing the most. how do these fit in the scope of apple products? how important are these two new offerings? >> well, they are extremely important. it is very interesting because when the ipad first came out, they were positioning it as the new computer. the device peaked at about 36 -- 26 million unit sales in 2004. now they are at 13 million in the who will dare core door of -- in the fourth quarter of

2018. so sales have fallen in half in just four years. they need to revitalize the category if they really are going to continue pinning the future of computing on the device. alex: i know you love to go deep on exactly what is new, given the ipad pro as it ant replayed the computer as it was supposed to do. what is new about the new i of pad? -- new about this ipad? >> i will give you my bullet point list. the main thing been face i.d., facial identification, removing the home button. it is old the jumbo versions. updated camera, perhaps with that portrait mode feature. there is going to be a new charger, so they are going to be changing the connector for the first time in six years for the ipad. that is sure to cause some sort of a firestorm over hardware. they will be going from a fire connecter to a usbc connector.

now if you own an ipad and iphone, you are going to need two chargers. and new graphics chips and odds and ends. the apple's business pens, there fans, the apple pencil there will be a new business option. you will be able to slide your finger across it to change the brush stroke size and that. >> perhaps we will see some of those out in a while taking -- out in the wild taking those nice portrait pings. mark, thank you for joining. that does it for this edition of "bloomberg technology." tune in tomorrow for full coverage of facebook earnings after the bell. we will also bring you all the headlines from that event we just discussed. i'm alex, and this is bloomberg. ♪

>> our top stories this morning. president trump predicts a great deal with china on trade. the yuan weakens to its slowest since may 2008. >> the end of an era in europe as angela merkel prepares to step down. who will be next to take charge of the world's fourth-largest economy? and into austerity is .romised that wha >> and as th