♪ emily: i'm emily chang in san francisco. this is "bloomberg technology." shares of apple climbing back up to the $1 trillion market cap after iphone sales have stabilized and massive buyback. qualcomm also out with earnings results with one key new piece of information. apple will pay as much as $4.7 billion to the chipmaker as part of their legal settlement.

as gopro's youtube channel hits 2 billion views, the ups, the downs, and the ups. first, apples bounce back. the iphone maker continuing to feel the love from wall street. as much as 7% at one point in trading on wednesday. one key to success, stabilizing iphone demand. something that had a positive effect in all markets. an important market, china. >> we did experience a revenue decline in emerging markets but we feel positive about our trajectory. our year-over-year revenue performance in greater china improved relative to the previous quarter and we have seen very positive customer response to the pricing actions we have taken in that market. emily: we have the managing

director of equity research, dan ives, and max from bloomberg businessweek. in studio, mark gurman. what is driving up the shares? is it a stabilization of iphone sales? or is it this massive buyback? this is more on the iphone sales. they were looking for that revenue number of about $30 billion. that is a big decrease. it is not as bad as it could be and there is clear momentum for the turnaround, especially going into the third quarter. emily: dan, would that be your read as well? dan: sentiment continues to be negative, specifically on iphone demand. once cook gave that guidance for june and talked about inflection bullsna, that is when the

got their feather in there cap. here, it is the service industries beaten. that 1-2 punch. emily: i do have this chart here on the bloomberg that breaks down. year-over-year decline in iphone white line. max, what do you make of the bigger picture? max: it is good news for apple. as the iphone market matures, obviously the pc market is shrinking probably. the market for mobile phones just doesn't have that much further to go. you need something to drive growth. apple has been talking about services, pushing these services. you just saw the launch of some new services in march. seeing that there is real -- there is new revenue here that is turning into eight substantial business is going to

be good news. a company that is sort of weathering, maturing. emily: apple shares getting closer to that $1 trillion market cap. just how far away are they right now? about seven, we are dollars and change away. i think the key point to add is that these services aren't true services like you see from microsoft or google. .hey are very much tied over time, unless they change that, this will still be driven by the iphone long term. emily: if apple does cross this one trillion mark once again, do themhink this will give more momentum? >> i think the comeback story that cook has engineered here is some of the finishing touches of

his legacy. i think if you get north of $1 trillion, we expect to see new highs over the coming weeks and months. i think it gives them mojo, it shows investors are buying into this. businesse the services , on a standalone basis, is to $45000 billion billion. we believe it sets the stage for apple to make a significant acquisition in content for it to be the final piece of the puzzle on that streaming content which will officially go live in the fall. there are so many outstanding questions about this service. apple shows them being blocked from other platforms because they are competitors to apple. how difficult is it going to be for tim cook to live up to that

given that the iphone is still their biggest moneymaker and sales globally are still slowing down? >> competition on these entertainment services is pretty steep. amazon has a huge catalog. hbo, substantial catalog plus these mega hits like "game of thrones." apple did bring out the star power at that event in march. they're going to need a big batch of content that they can offer people to justify the price. the other thing is, because it sales, in with iphone whoare either asking people are not iphone users already to pay for this subscription and buy new hardware, which could be

great for apple but could be a big ask. emily: we will dig in on qualcomm earnings in the next block but we did get this information, a specific number, apple pay and qualcomm to settle this. what do you make of that number? , apple got aspects good deal here. $4.7 billion compares to the $7 billion that qualcomm claims apple owed to them. emily: there was one estimate that that added up to like eight dollars an iphone but could go up to the mid-teens. is that included in the $4.7 billion number? ofi know we spoke to the ceo qualcomm and they are not talking about individual licensing agreements for the devices themselves, just this one lump sum payment. emily: we will dig into that a little bit more in the next block. mark, max, dan, thank you all.

switching gears now. british defense secretary gavin williamson has been fired after leaks over a secret government meeting with chinese firm huawei. theresa may said the government has lost confidence in williamson. huaweid agreed to let participate in some aspects of britain's new 5g network. coming up, what qualcomm expects apple to pay after their legal battle finally came to a close. if you like bloomberg news, checksum on the radio, the bloomberg app, bloomberg.com. this is bloomberg. ♪

emily: back to earnings. qualcomm shares falling after hours despite a beat on revenue in the second quarter with $4.8 billion. investors didn't seem impressed even with qualcomm saying it expected to see a windfall with its two-year legal battle with apple of about $4.5 billion. the problem, a forecast of continued weakened demand in china. we will get to abigail doolittle and ian king is still on the phone dealing with these results. they are saying iphone demand in china has improved or at least stabilized. these numbers from qualcomm tell

a different story. abigail: in terms of the quarter they just reported, they did beat top and bottom line estimates. the third-quarter earnings guidance of adjusted earnings of ,.70 to $.80 at the end interesting to what you just saw a, the divergence between apple, their strength with qualcomm having a weakness, it goes even deeper. when you look at that fourth quarter guidance -- that first quarter guidance, you break down the royalties, those are impressive. it tells you the handset business, the core business, is weaker. the expectations they've been talking about in terms of declining movement. they are all about the high end handsets. the high-end handsets for qualcomm not doing very well and likely to be made up from some of their other businesses.

that divergence probably has a lot to do with the high end .andsets that qualcomm emily: we now know the number apple is paying qualcomm to settle this global legal dispute. $4.7 billion.o how are investors responding to that? abigail: i spoke a couple of times this afternoon and his work suggested that the payment was better than what he had forecast. from that perspective, it is relative to the expectations. i think that is something investors will really want. terms aresaying the

-- what was the exact language? in line with general practices. payment, itat seems, according to at least ana and some of the reaction -- because it was actually down more, that that is acceptable. a little bittalk more about the details and what we know. there are some analysts saying this breaks down to eight dollars per iphone and that could go up to the mid-teens. is that fixed or could it grow over time? abigail: that is a little bit beyond my area of expertise relative to qualcomm and apple. we willas time goes on,

have more of an idea of that. perhaps it could grow over time but that is outside of my area of expertise. what youlk to us about are looking into. abigail: such a run-up this year. for qualcomm, to some degree, this was a bit of a relief quarter. when you put it into perspective the 50% rise on the year, falling 2% in the after hours is not a huge move. the stocks, semiconductors, a really hot sector. after the brutal fourth quarter. the question is whether or not that can stay in place. if you look at the trend, pricing for those areas of memory, they are declining so you have chip stocks moving higher while there are lots of fundamentals moving in the wrong direction. it will be interesting to see how that divergence plays out.

apple talking about strength in china and for their iphone, there was quite a tailwind today for some of those apple suppliers. it will be interesting to watch to see whether the pricing for memory and some of the other fundamentals is correct, some of these stock prices that are high as the sky. at the end of the day, you can bet that they will probably come back together, which historically has happened. bloombergs abigail doolittle, continuing to watch the market. thank you. the day came and went on march 29 and the u.k. remains in the eu for now. what comes next is a prime concern for the president of india's second largest ip provider, infosys. exclusivek at this

conversation. >> it is something that is of huge concern to a number of our clients and therefore a huge concern for us as well. we work very closely with our clients and what they are telling us is that the uncertainty is really impacting them, impacting their investment plans. the big concern for our private -- for our clients, they don't know what impact it will have on their business, what impact it will have on their people, and what impact it will have on their end line. it is uncertainty and the uncertainty about the uncertainty. no one knows if there is a fixed date. there has been a comparison drawn previously to y2k. but most of us know when y2k would come to a head. itself, what are the options in terms of

preparation? how are you anticipating it? >> the impact largely comes because of the impact we see on our clients, the ability to see if talent can be mobile beyond the u.k., for instance. working very closely. we are working with our partners to get an amsterdam early sense of what they are thinking. we are working with their employees. >> securing talent -- >> if you look at localization of talent, it has been a huge initiative for us. we have initiatives going on in other parts of the world

including in the u.k., in europe, and australia. also part of the acquisitions done over the past couple of months have helped us build a base of talent. had a base in london, acquired a country in the nordic that gives us salesforce talent. >> is this adding to your costs? adding to capabilities in the region. these isn we have done to have the ability to scale and the ability to add unique skill sets. copresident there with our own haslinda amin. does facebook have a fighting chance? we will discuss, next. "bloomberg technology" is

livestreaming on twitter. you can check us out @ technology. this is bloomberg. ♪

sued overla has been a fatal crash in california. the autopilot of eight model x allegedlydel x crashed into a barrier. the family of the person who died said the model lacked safety features despite being design -- being described as state-of-the-art. the competition in original content continues. in recent weeks, apple joined the game, announcing its original streaming service. disney has unveiled a platform. netflix has admitted to selling

bonds to bring in more cash for its original content. those aren't the only players. in 2017, something was designed to bring people behind the scenes of professional athletes. a new series starring golden state warriors star steph curry will air on facebook watch. watch? facebook >> facebook watch is pretty unique in that the athletes that we are working with or have worked with over the last two years have an existing community. they have fans who have already signed up for liked a page. steph curry, i think, has something like 8 million people on his facebook page. another 25 million people follow him on instagram. it is a community that is already engaged and asking for

more content. emily: it is an interesting choice given all of the other available platforms out there and the many reputational issues that facebook is going through at this moment. do those concern you? gotham: not really. i like to think of this is one of the places within the facebook ecosystem, especially the athletes, that are inspiring, sort of aggregating this community, engaging this community. steph, in particular, he has a mission that he is sort of trying to spread. in that respect, it is sort of like the perfect platform. there is already that audience that has bought in. emily: tell us a little bit more about " steph vs. the game." we started at the western conference finals last year. over that time, the story chronicles, can steph and the

warriors win a third consecutive forth in fiver years? a 31-year-old athlete at the top of his game, but aside from those 82 games across the season, what is the anatomy of that greatness? really getting underneath that, who is he, what is he motivated by, what is the backstory we are seeing from this guy at the peak of his powers right now? emily: we were just seeing video of a baby steph shooting baskets. somecontent creator, in ways it has probably never been better to be a content creator, but have you ever been concerned that there's too much content now? gotham: for sure. not only are there so many platforms and so much content, but with steph curry in

particular, he's very much on social media. his wife is very much on social media. a story that feels fresh or some sort of perspective, that itself is a challenge. but i think it is also an opportunity. it is an amazing time. we are not bound by format, not bound by structure. it used to be that you do half hours or hours. now you figure it out as you go. platformsso many that, when you have something like this, there's a lot of places to go out into the marketplace like this. emily: we will watching this rollout and of course your work also contributed to by tom brady, michael strahan. thank you so much for joining us. co-founderudacity joins two discuss the new scholarship they are rolling out with facebook about deep

learning and ai specifically tied to privacy. that, a digital startup helps families navigate family-planning. this is bloomberg. ♪

udacity hasyears, been helping students learn the skills in the new wave of tech. as demands for privacy and security tools grow, there's an update any -- opportunity for new talent. udacity is partnering with facebook for a new scholarship. good to have you back on the show. talk about this new scholarship, secure and private ai. is a new program we have

poor people and companies that care about privacy and security in the ai space. when you do machine learning, you get all of this data. there's always a chance that data gets compromised. it sounds magical, but it adds massive amounts of security to any machine. emily: it is interesting that you are announcing this in partnership with facebook. facebook is notoriously not focused on privacy. >> we work with facebook, google, amazon, anybody. privacy is a universal concern. it doesn't mean we always get advice. but everybody cares. emily: how would you describe the pull of talent who can focus on privacy and security related issues?

it is almost nobody right now. it is a very new topic. with the level of cyberattacks song up by state actors and on, the sophistication of the defense has to go up as well. very few companies are good at this. we train people with the latest skills. we really build the latest and best so anyone on the planet can become a privacy expert. emily: should we be worried about our privacy and how well we are being protected by the current generation of technology? >> we are learning about it every single day. this is something that as technology progresses, there is always good news and bad news. we have to defend ourselves from the bad news and focus on the good news. emily: you announced this at a facebook conference.

it obviously works well with mark zuckerberg's new strategy going forward to be more privacy focus. you made a joke that fell a little flat. -- he made a joke that fell a little flat. >> i get that a lot of people aren't sure that we are serious about this. exactly have don't the strongest reputation on privacy right now to put it lightly. there was a slightly awkward pause because that is an understatement. you think this strategy can get facebook back on track? believe in silicon valley at large, i am not singling out any company, we need to take the super seriously. and it starts with training. to get the right skills. it has been amazing what has happened the last 10 years.

with thing the genie out of the bottle. is the lacking responsible, ethical, and technical training that makes us all secure. emily: is it just the technical expertise that is missing but it is also the values? it seems like values have not caught up with what people want. >> we have to have a very broad discussion across the nation about what we stand for as americans. we have to have a dialogue that goes all the way to washington. to see what is right for us. that dialogue is now beginning. i see udacity playing a big role in this. we have 75,000 graduates. it keeps people all across the nation. we can bring those values to anyone in the tech field. emily: give us an update on the latest on udacity. how many of these degrees have you awarded?

i know there has been some restructuring and reorganization. 86,000ave awarded undergraduate degrees and more graduate degrees. i think we are now beginning to reinvent a new degree. it is becoming the fourth degree. credential from top companies as a way to recruit people who want to be lifelong with us. and who want just be done with learning after college. brushing upcontinue on the tech skills. we can transform the entire american workforce. to make more money and have a better life. you wear a lot of hats. you are also the ceo of kitty hawk, yourself flying car company.

give us the latest on where it is. when can i ride in it? >> i think you were the first journalists to ever be an eight google self driving car a few years ago. it seemed like a crazy idea. the same way the flying car seems crazy. we are still in the development phase. it is not safe enough yet to unleash to the people. but we have this vision. get you from can downtown san francisco to berkeley and three minutes. emily: how does your vision incorporate what is already other? we have ridesharing, we have taxis.rking on flying there many different theories about what the roads and skies are going to look like. what is yours? >> i have a long history.

for a long time, i believed that the self driving car would be the thing that solved all traffic problems. kill 1.2 million people every year in traffic accidents. realized, if you go three or four feet up in the air, there's nothing to hit. no kids running around, no bicycles, no curbs. whatever you care about is not exist. if i am a futurist and a visionary, i believe it is inevitable at some point that on our daily commute, we will go up in the air. emily: when does that happen? the $10,000 question. not today. i hope we will have something on the market in the next 3-4 years. using --ogle is still

working on self-driving car's. so is it over. who owns this market? will they always be many different players? question. a good the market is still very open. none of the companies have all of the big business. the most successful today is tesla. i believe on the ground, there will be one or two companies that on the market. whichme logic by ridesharing is owned by two companies, not 50. the more cars you operate, the shorter it takes to get one, and the better the user experience. so which two companies? >> i would have to think for a long time. emily: not tesla? >> i am and not an analyst.

i'm impressed by what they are doing. i love the autopilot feature. but i think it is a long shot from the autopilot all the way to city driving. i have to ask you, just got faae approval for drones to deliver consumer goods. >> they are an airline. who would've thought that a search company becomes an airline? emily: well this have a role in delivery? i think the insight that google and amazon has is very correct. at some point, it will be better to transport things through the air. the reason it is faster and safer and more energy efficient than the ground.

between bat and what google and amazon are doing and what we are doing, our package is a person. me getting about around faster than my amazon package. we are roughly the same size and weight. much easier to design the aircraft for me than for amazon packages. emily: always good to have you here. father of the self-driving car. thank you. up, tech is transforming every aspect of health care. that includes women's health. how one startup is embracing tel e-medicine to keep women in the workforce. this is bloomberg. ♪

emily: women control 80% of health care decisions. maven wantsstartup to use tele-medicine to give women and families better access to health care and information with the larger goal of keeping parents in the workforce. it provides a virtual clinic where you can connect with professionals and access services. the founder and ceo. tell us how important women are in making health care decisions for themselves and their families. >> women are often the chief medical officers of their homes. caref the first big health

experiences you can have is having a baby. that falls on the woman's shoulders. growing the baby into pediatrics and all of the other decision for the family is often controlled by the women. one of the things we saw when i started this five years ago is if you just design a business and a system that focuses on women as the primary consumer of health care, you can design a better program. we have a lot of different digital programs. you have access to our tele-medicine network, which has different specialists. you can talk to them at any time of the day or night. aey can be anyone from consultant to an ob/gyn. you get a care concierge that helps you navigate this use experience. emily: this is covered by

insurance? ensure -- mainly to employers and health care. i think one of the biggest problems is a lack of specialists that are covered in the system. a lot of times, and insurance network won't have a specialist they need. we built this with an eye toward specialty. emily: there are other tele-medicine companies out there. doctors on demand, mail-order services. what separates you from that? largest women's health network. they don't have the specialists that we do.

they don't offer any of those programs. emily: what do you say to folks that virtual care can create a disconnect between patient and specialist? or that patience than i care for as well if all of their care comes from virtual sources? we are very much a complement to what is going on during pregnancy. patients are complaining about issues that have to do with mental health or nutrition, things that are out of their control, they can actually referred them to maven. doctors in general are extraordinarily busy. but patients have a ton of questions. so they are able to have a support network to get a lot of those questions answered before coming into an in person visit. it can be much more effective and efficient. emily: is one of your goals to keep on women in the workforce?

if so, how? >> one of the big statistics thatis a bit disturbing is 42% of mom strop out of the workforce. and 75% of them say they want to stay in. it was issues that we could not control like childcare or financial issues. sometimes it was just not having the right manager or not returning to work -- in a supportive environment. these were the issues that carried over into a short paid leave. tohelp people in this return work. get back on their feet, get healthy, talk to your coaches. by the time they enter the workforce, they are more confident and ready to go. part of our program has manager training. we are able to give feedback on that level. what are some of the issues that are being faced? emily: what does your outlook more broadly on how technology

will continue to change the health care market? health care has been very slow to change and adapt. is a completely different in five years? >> great question. emily: i can't even email my doctor. >> i have just come away from a health care where everyone talks about this. health care does take a while. but within 10 years, you are going to start to see meaningful impact on virtual care. that is one of the most exciting trends. but really leveraging ai to solve more complex medical cases. and make anything more efficient. there are so many problems. don't get me wrong. we have to basic problems of front of us. which is cut of what we are doing. before we can get into this other area. emily: i am looking forward to that. thank you so much. opro has tempted

to make drones. but now it is going to its roots. the ceo talks about the company's biggest obstacles and opportunities ahead. this is bloomberg. ♪

emily: shares of square are falling after hours on wednesday. but the company beat on first-quarter revenue. this as its cash register and payment processing businesses face increasing competition from companies like paypal. it grew by 150% in the first quarter. announced a few to channel has passed 2 billion views. a big milestone for a company

that has seen many ups and downs. toat down with the founder talk about competition in the sports camera market and the challenges that lie ahead. take a listen. we were trying a lot of new things. just because you are successful in one area, does not mean it is successful in another area. you are an all-star jury does not mean you can go and play quarterback. in an effort to grow beyond our initial success, we tried many different things. emily: at one point you thought you would be a media company. >> i think we still have a opportunity in these areas and more. right not have the approach. the right skill set. i think we may be took on too much, too soon. we would have been better served on what our focused core purpose in the world is.

which is to help people capture and share expenses that would otherwise be difficult to do. now we are back to that. and wouldn't you know, the is this is growing again. we are on track for profitability again. also got into drones. that at the time also made sense. but then the drone started falling out of the sky and it was all caught on your cameras. what went wrong there? >> it was a very big deal because it was a veritable problem. there was a sense that holds the battery into its compartment. it was made out of plastic and it would deflect over and lose its retention. then you only have to have a battery pack out just a little bit too lose power. once we replaced it with a metal hinge, problem solved. our challenge in the drone spaces's not because of that additional product failure. just abecause there is

lot in the consumer drone market. it is not as big as everybody thought it would be. there was not enough profit to be made. it was too expensive to be in. emily: there is competition. sony, chinese companies that are trying to do what you do. how do you continue to differentiate your core product when there are folks out there that are trying to make it cheaper and better? >> reinvented and push the limits every year. i have been very vocal about our idea -- need to come out with exciting products every year. one of the lessons learned was in years that we did not come out with something new and exciting, sales dropped. we maintainedsons

our leadership position in every market that we sell and around we areld is because relentless with developing new innovation and new products. we are running at vape if that is difficult for anyone to keep up with. some of ourd competitors. they have not come out with new products recently. we are wearing everybody out. ofly: there was a threat tariffs between the u.s. and china. you decided to move some of your projection out of china. tell me about that. we are moving our u.s. bound camera production to mexico. the rest ofeeping world production of cameras in china. cameras that are going to europe or destined for asia will still be produced in china. but the u.s. bound production in mexico avoids tariffs. , we do not want to be a deer in headlights.

we want to be the one driving the truck. we are not going to hit the deer either. don't worry about the deer. but we don't want to be the deer. say and ourave more destiny. so we said let's go research where else we could build our products for the u.s. market. we landed on mexico. through our research, we learned that there were also financial benefits, logistical benefits to doing so. regardless of tariffs or no tariffs. threat or not the terror to our products became real, we are happy to be moving our u.s. bound production to mexico. you can catch that full gnterview tonight on "bloomber 1.0." that does it for this edition of

" bloomberg technology. we are live streaming on twitter as always. we will be back tomorrow. this is bloomberg. ♪

>> i am paul allen in sydney. >> i am sophie kamaruddin in hong kong. we are counting down to asia's markets open. >> here are the top stories we are following in the next hour. u.s. stocks fall. leaving policyma