♪ taylor: i am taylor riggs in san francisco in for emily chang and this is "bloomberg technology." coming up in the next hour, clicks before q. black friday sales breaking an online record. how the holiday weekend spending will turn out following cyber monday. plus crypto crackdown. , china continues its assault on crypto exchanges, and currencies are feeling the pressure. we will have the numbers.

and our extended conversation , with the ceo of qualcomm. why he thinks 5g will change the way we do business forever. it is starting to feel like the holiday season. americans got out their wallets over the holiday weekend, spending more than $70 billion on shopping over that four-day period. amazon is gearing up for the heavy spending month by heading back to basics, testing cheap warehouses. that will let merchants to store resources near amazon delivery locations. it will let merchants avoid storing their goods in amazon's warehouse base where they pay premium prices. to discuss, we are joined by y'somberg technolog spencer. what do we know about the new service called storage and replenish? spencer: we know they are giving this a try in southern california.

highlighted it nicely. the problem with amazon this time of year is it is always a race to create capacity. it has these expensive automated facilities with conveyor belts, robots shuffling things around. those facilities are expensive so it is not smart to use them for storage. amazon needs to supplement the storage capacity for those facilities with cheap, plain old warehouses nearby. they are kind of scouring the country for cheap warehouse space near their other facilities around the country. this thing could ramp up if it goes well this year. taylor: talk to me more about that. you said they have that one warehouse in ontario, california away, but notably that is only one, , which means it is not ready for cyber monday, for example. are there concerns that there were not more of these locations

heading into the holiday season? spencer: the tenter has been that during -- the tension has holidays,during the amazon hits capacity. it only wants the fast-moving inventory in there. it does not want to clutter up the space storing goods that are not selling. what amazon historically has done is it has simply raised storage fees to try to discourage merchant partners, these independent merchants that sell on amazon, to discourage them from putting things in their warehouses. the risk of that is maybe they can run out. this is kind of like the happy medium. we don't want your stuff cluttering our warehouses in peak season, but we will provide a warehouse nearby that is cheap so you can have the stuff nearby in case we do need replenishment. it is kind of like the next

phase of them wanting to de-clutter their warehouses. taylor: what has been the merchant reaction? spencer: if it goes well, it could be favorable. that has been the concern. up itsazon did jack storage fees they had to make , this critical guessing game. just enough to get through the holiday season. if i do not send them enough, i am losing sales. if i do not send enough, i am getting hit with high storage fees. this is a way to get a little bit of a buffer so you can send more than you think you are going to sell without getting penalized on the storage fees. there will be a cheaper storage solution nearby. taylor: we often hear that in the shipping business, it is that last mile that is the hardest. how does this help amazon both in the middle of the supply chain and the final mile to get the product to the front door? spencer: especially as amazon goes for this next day delivery

pledge, they are trying to ship more and more of their inventory to next day as opposed to two-day. if they are going to accomplish that, they have to have inventory close to shoppers. they have less and less time to react from the moment someone tocks buy on their website when they can get the order out the door. aen you used to maybe have handful of facilities that could adequately serve the entire country, now you need at least 16 stations to reach the majority of the population the next day. that means you need these ancillary facilities around it to feed into the system. taylor: bloomberg technology's spencer soper, thank you for joining us. to continue our discussion about cyber monday, let's bring in dan ides and stephen.

we have talked a lot about amazon. how has this cyber monday compared to previous years? steven: the holiday season is off to a really strong start. if we look at black friday, we see that the additional transactions this black friday versus a year ago. going back a year, that year was up about 20% over the year before that. taylor: in your opinion, is amazon the key player that is the key winner in all of this? dan: it continues to be their world. everyone else is paying rent. look at walmart, target, in terms of the eur year-over-year numbers. this continues from an investor be amazon. to some of the products, the apple,

the airpod, others. taylor: we just came off the investments of amazon, is that cost paying off yet? dan: i think that is starting to payoff but it will play out in , the next 6, 12 months in terms of next day shipping. that continues to be a core advantage of the amazon machine. when you see e-commerce right now, you are starting to see a narrowing in terms of the competitors right now. it is that last mile that continues to be the focus of investors to really close the get up. taylor: stephen, how much has the pressure increased to get the shipping time faster? n:ephen: amazon -- steve amazon has upped the game. earlier in the year, there was talk about amazon not

being able to sell what they called crap products, can't return a profit. a lot of it is coming from the competitive pressure that dan mentioned, traditional retailers with services like click and buy online and pick up in-store, they have had pretty good years taylor: i want to show you a is -- that has department stores hitting a rough patch, fallen 1.6%. this is hardly a new trend. dan, as you have mentioned, walmart and target, what are they doing to be able to take on the companies like amazon? dan: it is really around inventory. i also think it is some of the talent. i know many e-commerce players that they have hired at walmart, it is about inventory.

it is no longer asleep at the wheel. it is a narrowing of the cap. gap. consumers are smart. it is not just amazon. that continues to be in the eye of the street, who are the winners. you have to put a feather in the cap for walmart. taylor: are walmart and target also the clear beneficiaries? stephen: they are clearly pulling away from the competition. in the digital world just as you , have seen google and amazon pull away, as we look in specific categories of e-commerce, we see the same thing. the dominant players pulling away and finding niches where they do not have to compete with each other. taylor: who in your opinion has been struggling? who are some of the losers who have not been able to keep up? stephen: when we look at companies who had a big boost from black friday, it has not always been a positive story. fromve seen big boost

victoria's secret, forever 21, gamestop when we look at our data, we sometimes call it the trifecta. if i had a big boost around black friday but a big boost also in paid search, and they have following prices that is a trifecta that , is tough to rebound from. taylor: how do you incorporate the sense of the omni-channel, be curbside pickup, a great delivery service, how do you put that into your analysis? dan: it is all about the cost of getting an incremental customer. if you look at amazon, it is all about prime. once you are in that ecosystem, you will spend incrementally more. it is around the omni-channel, that is not just what amazon is focused on. that is why you look at these early cyber monday numbers, it is not just one player that is

going to benefit. you are seeing it across the landscape. taylor: dan, you cover apple, so i would be remiss if i let you go without asking quick question -- without asking a quick question here. forecast for the holiday season when it comes to apple. dan: in terms of airpods, 65 million units. the big thing is iphone 11 15% above0 to expectations. if that continues, this will be a stock that will have a three in front of it next year. taylor: stephen kraus and dan knives, thank you for joining us. shares dropped on monday for roku. this is after morgan stanley downgraded. the bank said roku could see revenue and profit growth slow meaningfully next year. before shares were up monday, 400% this year. coming up, tech stocks tumble with the nasdaq falling the most in more than eight

weeks. we will look at if it is caused by trade tensions or something bigger. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, bloomberg.com, and in the u.s., on sirius xm. this is bloomberg. ♪

♪ taylor: u.s. stocks in the red on monday with tech leading the losses. the tech heavy nasdaq closing down more than 1%. that remains the star performer in 2019. 25% gains this year. joining us from new york to discuss if there is a faang overhang or if there is room to ron craig johnson. ,talk to me for a moment about

today's price action. is something bigger happening or just a momentary pause? craig: i think this is just a momentary pause. the markets had a very sharp advance over 25% coming off of the lows we had seen in september. stocks have gotten a little bit ahead of themselves. from a technical perspective, we have seen 70 plus percent of stocks above rsi. i would not be surprised to see a little bit of profit taking. this is a market that has really been pushed higher really on the fomo trade, fear of missing out. we are going to some sort of trade deal done in washington and equity markets , will push ahead. perhaps equity markets. a little bit ahead of itself and today's

price action was a reaction to the commentary. i do not think it change any long-term trends. taylor: you have a chart in your 99 page report called the faang overhang. do you need faang to go higher in order for everyone else go higher? -- else to go higher? craig: i think you will see the faang stocks participate. the chart i had included in that particular marketing here for the east coast marketing this week was just to make the point faangwhen you look at double-a this is an equally , weighted index that is not broken out to all-time highs. despite the market having made multiple new highs this year, a lot of these stocks have this index. let me just add that, even if we don't see this faang index breakout to new highs, we will see the expansion and the

overall breath of the market in that case. a lot of money gets tied up in those faang stocks. i think that could be a very healthy broadening of the market. i think at this point in time, you are starting to see that happen. taylor: one of these stocks in your thesis is apple. apple's market cap is worth more than the entire s&p 500 energy sector combined. walk me through why apple is not overvalued at these levels. craig: first and foremost, let's start with a chart, then i will walk back to the valuation side. michelson does a great job from a fundamental -- mike olson is a great job. you can see that we are making in a series of higher highs and higher lows. the stock had broken out of a nice consolidation range over the last six or seven months.

from my perspective, this looks like a stock that had taken a time consolidation and is starting to work its way higher. when you look at the overall apple products leadership, it is not a stock that looks like it is tremendously expensive at this point in time. i still think there is more room to go. if i could add my peter lynch perspective, my wife and i had a chance to go to the mall of america on black friday. the apple store, i am not sure you could have gotten more people into that apple store. taylor: so you are not factoring in regulatory and antitrust overhang in any of these tech stocks? craig: i spend time thinking about price, trend. what i am seeing in these stocks -- right now i don't have trend on a lot of these large cap names. i think that is adding to the

fuel of the wall of worry. you continue to see stocks, tech stocks, apple, some of these other names continuing to climb that proverbial wall of worry. right now, until i get a trend change, we need to play these stocks to the long side. taylor: i would note that none of these stocks were on your bear thesis. is it a fundamental or technical issue? craig: when i was going through and looking for names to include, i was viewing this market from a more positive perspective. i was pointing out stocks that were more constructive looking. i did have a-net, a smaller name. overall, some of these big stocks and tech names look good. sky works looks constructive. there are a lot of names in the semiconductor space that, to me, look like names that still have room to run and work. taylor: we would love to have

you back and be able to expand more on that thesis. that was craig johnson from piper jaffray. coming up, the french president once had a tech friendly credential, and now, he is calling for greater control over big tech bloomberg technology is livestreaming on twitter. follow our global breaking news network on tictoc on twitter. this is bloomberg. ♪

♪ taylor: t-mobile has jumped to an early lead in delivering 5g. the service being offering now will not be the hyped 5g experience that wireless services have been boasting about. t-mobile says it will offer a much better 5g network if its takeover of sprint is he proved. -- is approved. french president emmanuel macron

has toughened his stance on big tech. he has imposed a new tax on global tech companies that collect 25 million euros in digital sales in france. the tariff, which will be retroactively applied from the beginning of the year -- the move follows a raft of fines by the european union against companies like facebook and google. i want to bring in laura davidson in washington, d.c. france has been much more tough when it comes to big tech. what are the new laws and conversations france is now having taking on big tech? laura: they are looking at a tax saying the consumers in france are not necessarily paying for the service but that the consumers are there and france should get a piece of that pie. you are seeing a lot of other

countries the u.k., new zealand , looking at passing those laws. in some cases, we have seen more of these get on the books. the u.s. sees this as their tax revenue. these are american-based companies and they are saying, , if anyone gets to tax facebook, google, amazon, that is us. taylor: it is interesting how .he conversation started has the conversation shifted now to an antitrust or data privacy concern? laura: that is part of the concern, but really the big , tension point is you get the u.s. saying, look, you don't get this money. all of the other countries are saying you are , operating here, you have employees here, our residents are using the service. what we have seen at the large multilateral level, you have 133 countries sitting down and trying to see if they can figure out some system of which company gets to tax which company's portion of their

revenue. on one side of the other, you have the u.s. and france. france saying, we will abandon our digital tax if you can get 132 people to agree to something. taylor: how does the u.s. respond to protect our entrepreneurial spirit in the tech sector? laura: that is something we are waiting to hear about today. the u.s. trade representative has been looking at this. they opened up this investigation to see if there should be some sort of trade reaction. they are looking at tariffs, some way to punish france to say, look, if you will do this to our tech companies, we will do something to some of your products. president trump in the past talked about tariffs on french wine, for example. we do not know exactly will be in this report. it will be a 90 day waiting period with comments and back and forth. the u.s. is seriously looking at

starting a tit-for-tat battle here. taylor: it is notable that they are not ruling out -- how would you do that in the e.u.? laura: they are trying to figure out, where would you draw a line of what is big tech and what is a smaller startup? you are looking at pharma, manufacturing. it is a really big 800 pound gorilla that makes it really hard to get every side to agree to the tax. this means that some countries like the u.s. could end up losing out on tax revenue while some countries india and china could end up winning. taylor: bloomberg's laura davison, thank you for joining us. coming up, china is cracking down on cryptocurrency but miners are still creating tokens. we will look at the global you fight this is bloomberg. next. global effect

this is bloomberg. ♪

♪ taylor: this is "bloomberg technology" global link, where we join "bloomberg daybreak: australia" to bring you the latest in global tech news. i'm taylor riggs, with shery ahn in new york and haidi stroud-watts in sydney. let's take a look at the top level tech stories of the day. shery: goldman sachs made its third and biggest latin america fintech bet yet. the bank is lending $125 million to mercadocredito in mexico. it plans to use the funds to triple its $100 million working capital portfolio. goldman's previous two loans were to two mexican companies. another blow to the co-working

market space, wework competitor rocketspace is pulling out of london. the u.k. employees have been told last month they would be out of work by december 20. bloomberg has learned san francisco-based rocketspace will refocus on funding services for startups. india's shopkeepers are uniting to take on the likes of amazon. merchants staged around 700 sittings at bazaars across the country over the past week complaining that global e-commerce giants are engaging in predatory pricing. in october, india's government announced an investigation into the accusations. amazon and walmart told bloomberg their operations comply with local laws to operate as third-party marketplaces. those are the top global tech stories we are watching. taylor: the end of the year has not been particularly kind to bitcoin and other cryptocurrencies.

cryptold's most famous losing -- well gaining today , 7/10 of 1%. it's now at a nearly 20% decline over the last month. it is not just bitcoin. other cryptocurrencies have also fell off after chinese authorities crackdown on the trading assets. joining us to discuss is spencer bogart, general partner at blockchain capital. take a look at the cha i am showing inside my terminal, all about the fundamentals. trying to hold in support of the 200 day moving average, but the rsi does not look oversold just yet as you can see on the screen. your thoughts? spencer: overall, china late has -- china lately has been driving through the price action of the last couple of months, but you would think it is challenging to read between the lines on what

china is doing. we have seen favorable moves in terms of xi jinping's move to blockchain the whole country. we have seen some moves like bitcoin miners who were once put on a list of industries being eliminated from the country, it has been removed from the list. we have seen some crackdown on some of the smaller, shadier crypto exchanges, some of the larger ones seem to be getting more credibility within the country. haidi: how much does the fate of blockchain, of bitcoin, these digital assets depend on a clear trajectory from china? because as we know with a lot of their policies, it can be one step forward, a couple of steps back, sideways maybe. there is not a great deal of consistency. how hard is that for people who are betting on the future of digital assets? spencer: absolutely. i don't think bitcoin's future is in anyway dependent on what china does. it is helpful to zoom out and get away from the near-term headlines because in general, any short-term trading strategy around bitcoin is the wrong one.

i think the question people need to be asking is, is bitcoin going to be more successful over the next five years than it is today? if we look at the underlying trends, they are very constructive. bitcoin has gone from being a joke a few years ago to processing $1 billion to $3 billion of transactions daily. if we look back over the past two years bitcoin has processed , more than $1.6 trillion of transactions. whether it is that or the other startups we are seeing, particularly a lot of the on ramps of companies like coinbase, we are seeing a lot of positive growth across the industry. taylor: what about some of the regulatory overhang and the struggles that facebook, libra has had to face? does that help or hurt? spencer: the regulatory overhang is real. there are concerns the regulators can make it more difficult to acquire bitcoin. but overall, bitcoin does not necessarily need regulatory approval the same way libra does. it was launched in this nondescript kind of way and now spread around the world.

there are 40,000 nodes around the world supporting bitcoin. its success does not hinge on regulatory clarity, but as the overhang clears, it is definitely constructed for bitcoin. haidi: if you say trading is not the way to view or play bitcoin, and you need to take a longer-term step back to look at the possibilities, how do you actually capitalize on that opportunity if you are not trading? spencer: i think one thing's position sizing. to take a step back, i think it is a bolder bet to say bitcoin will be less successful over the next five years than the past five years. all the trends suggest otherwise. whether it is the value of transactions processed like i discussed or weathered it is people looking at, what you people think of bitcoin? we ran a survey in fall 2017 in the middle of a raging bull market, we had another one in spring 2019. it surveys more than 2000 american adults. we use it to gauge the general

population's awareness, perception, familiarity, and propensity to purchase. what we saw over that period, despite a significant market decline, the metrics were up across the board. people are learning more about bitcoin. they have more convictions in the future and there will be more purchasers moving forward. taylor: more people are learning about it. the retail audience is more engaged. they are understanding more. can you assume -- we hate to use that word -- that bitcoin continues to move higher? spencer: i think so over any reasonable time horizon. we do not make any investments or bets on a weekly or monthly basis, over the next three years, we are very constructive on the price of bitcoin. one thing that is coming up in a few months is the halving, bitcoin's third halving. this is the rate of new issuance. year, we20 of next

have the next halving. the rate of new issuance falls, it is a little bit less selling pressure. taylor: we will have to have you back to discuss. thank you to blockchain capital's spencer bogart. plenty more global stories ahead. this is bloomberg. ♪ g. ♪

♪ taylor: the e-commerce, cloud, advertising and markets amazon targets should grow by double digits between 2019 and 2025. this is all according to bloomberg intelligence. e-commerce could expand at about a 10% compound annual rate. pivotal research analyst michael levine says amazon estimates remain stubbornly too high and people should sharpen their pencils going into 2020. michael joins us now.

let me talk, given that it is cyber monday, any thoughts on how amazon could be poised to benefit from a big day like today? michael: i think they are very well-positioned. you did not really have the value prop of one-day day shipping last year. that seemed pretty aggressive from an advertising perspective. we think they are definitely gaining share. taylor: i want to talk, if you take a look at a chart here that i am showing in my terminal, it is frankly that amazon has been underperforming the rest of the retail audience. you mentioned the one day shipping. is that investment, is that cost paying off yet? michael: i think it is too early to say but when i look at the , quality of the management team, their track record of execution, i think they are making the right bets. the one thing i would frame that is worth noting is they rolled this out in the june timeframe. something i found striking was how quickly walmart went ahead and responded.

so, my thinking is if probably you are seeing some plan in the wings by the likes of walmart that may have pushed amazon over the brink. i think they are making the right investment decisions. i think it increases the value proposition of prime. it is not going to be cheap. to your point, when you are framing the relative performance of the stock, just looking this morning, you see how much estimates have come down for 2020 since the beginning of the year. it has been pretty profound. taylor: so, the first line in your note here is amazon estimates remain stubbornly too high in our view. what segments within amazon appear the most overvalued to you? michael: i don't know if i would call it overvalued, that if i think through the three major segments of the business -- retail, which obviously has been impacted by the one-day shipping cost. aws and advertising. i think that people's estimates

for aws, and we were pretty alone out there in terms of talking ahead of this quarter, saying you will not see any sharp rebound in terms of margins. we still stick in the camp. i think we were a little more hopeful a few months ago that you would get to q2 of 2020, you see a rebound when the step up happened in terms of hiring aggressively and the one-day shipping. we think those two headwinds will be a bit more persistent than the current thinking. a little bit of both. taylor: talk to me more about the margins within the aws business. i heard more and more recently that they are having to do some discounting to make sure they are gaining market share relative to microsoft's azure cloud product to stay ahead of google's cloud product. has that been factored into the analysis that discounting into cloud space?

michael: my sense is you have basically gotten adoption along a couple of main chunks of the business. infrastructure, everybody understands it at this point. database, they have been incredibly successful at in terms of storage, incredibly successful at. the workloads are getting more complex. trying to explain to somebody the value of, ok, i can migrate away from oracle, one database on aws. people get that. when you start to get into things like ai, machine learning, clients and a lot of lot of cases areload o not ready for themselves either. i think a lot of the lean-in in terms of hiring is this recognition of getting the next series of workloads to migrate over to public cloud is going to take a lot more handled by way of comparison. for what it's worth, if i look relative to microsoft, microsoft really does not have a strong a cultural of account management. i think amazon is probably

thinking they can use this to their advantage in terms of gaining share. taylor: how much of the lowering of the estimates can be attributed to a regulatory overhang, antitrust, all of the headlines that come out of washington? michael: i think it is probably a rounding error. the lion's share of the estimates in terms of where we revised, we actually cut our numbers pretty aggressively for aws. we took it down a little bit. we came to this recognition that, yeah, you will lap one day shipping basically stepping up, but what has not happened is a big fulfillment center buildout. we will look back in a couple of years and we will realize, wow, they actually needed to do a lot to get to an efficient ecosystem of doing one-day shipping. but, this really just started a couple months ago in the big picture. taylor: michael levine, of pivotal research, thank you for joining us. we have a few headlines we want

to bring you. the first is the u.s. is proposing $2.4 billion on a tariff on french goods. this appears to be in retaliation over the digital tax that france has enacted. again, proposing $2.4 billion tariff on french goods over the digital tax. the second headline is the u.s. is now considering probing a similar issue on both turkey, austria and italy over those digital taxes. we will bring you more as we get them. still ahead, the youtube ceo susan wojcicki has appeared on primetime tv in the u.s. to defend the role of the video sharing platform. we will find out what she says, next. this is bloomberg. ♪

♪ taylor: the ceo of youtube says her company is making progress in curbing the spread of harmful clips. in a tv interview with cbs's "60 minutes," susan wojcicki

defended youtube's role as an onn platform and pushed back calls to revoke laws that shield the company from liability. the video sharing platform has been under pressure from advertisers and regulators over conspiratorial and extremist clips. joining us to discuss is bloomberg's mark bergen. coming out and defending the video and content on youtube, what did we learn yesterday? mark: this was an overview of what susan and youtube have been talking about for the past year. a lot of the messaging has been -- they call it the four r's, responsibility. a lot of employees are late to this but they are working to recommend a lot of this content less. in january, they introduced something called borderline content. they gave examples. if a youtube video that has an outright lie about a medical cure or something false about something like the holocaust or 9/11. their plan was rather than taking the videos down because

they don't violate the terms of service, we will recommend them less. that has been there tactic. their tactic. last night, susan shared some results that said 70% -- americans are seeing 70% less of that content. taylor: continuing to say we don't want to be held liable for the content because if so, we have to review it and if we review it, you will see less content. mark: she did a good job of arguing something youtube has said publicly and privately in d.c. they were talking about section 230, which is a law with youtube and facebook that does not make them liable for user generated content. this is the first time i have heard discussion about the possibility -- she asked if they should be liable for the content they recommend to viewers. susan says if we had to do that, we would have to spend a lot more time moderating that and people on youtube would have

less of the data. in a sense, youtube would not really be youtube if we have to be responsible for the content. taylor: another thing that caught my eye has been political ads. we know that google has fallen somewhere in between facebook and twitter. continuing to run an ad from president trump which makes , misleading statements about joe biden because they say does not violate our policies but they will take down other ads that are blatant lies -- can you walk me through those policies? mark: google and youtube have been pretty opaque in this process so far. they put out a statement saying they are changing their ad policies and one thing that will change is looking at all ads that they say have misleading information, specifically about voter suppression or the election. it is a political ad that says, i don't know, tell voters to vote on wednesday rather than tuesday, that is one they would take down. something like the biden ad from the trump which was about a candidate, that not qualify.

in that sense, they are taking the same position facebook has held. the trump campaign came out last week and said google was involved in voter suppression with this election campaign. they are in between a rock and a hard place. this was a full on policy across their advertising portfolio, not just political ads, which seems smart but the repercussions will , continue throughout 2020. taylor: all things google and youtube. that was mark bergen. thank you for joining us. 5g is fundamental technology change that will affect the way people do business. that is according to the qualcomm ceo steve mollenkopf. he sat down with caroline hyde to discuss the importance of 5g and the role qualcomm plays in this technological transition. take a listen. steve: i see it kind of the same way like electricity or water or these fundamental technology changes that change the way people do business, for example. that is really how people in the industry are thinking about 5g.

clearly, it will impact the cellular industry. you will see a lot of benefits for the consumer and operators. you will also see when you have the ability to connect everything in the world, it is going to change the way people do business. it is going to change the way factories are structured, it will change the way we deliver health care, logistics. this whole digitization of business and the infrastructure of the world will be very significant. it is actually one of the reasons why you see so much international desire to be first in 5g. it is because everyone knows the fundamental technologies are so important to the rest of the economy, make sure you are not behind. caroline: at the moment, what is the economic impact? do you have gauges of how this will be from the u.s. perspective, global perspective? steve: we issued a study that tried to look at the impact of 5g in goods and services out to 2035.

the number was $23.2 trillion. a tremendous amount of money. if we did that same study three or four years ago, it was $12.3 . it is already scaling. people are seeing this happening. the things they thought were going to happen are happening. i think it is a very positive element. when we look at the broad customer base or partner, a lot of people talk to us about, hey, i know i have to be doing something in 5g. help us figure out what that is. the number of people and the breadth of companies have increased. that is consistent with the proxy value i just gave. caroline: what are some of the more surprising industries that have walked in your door? steve: two of them. one is, i would say industrial, factories. what you want to see in factories is i want to be able to reconfigure it very quickly. and the data that comes off

my machines like a robot that is , making a car for example. tremendous amount of data comes off there. it is the actual fundamental ip of the car company. car, and how the can i reconfigure the factory? they can change how quickly how they react to the market in terms of having different model year, it can be reconfigured quickly. tremendous desire to do that. the other one is logistics. if you think about a city like new york, moving things around. we have not really done dramatic changes in the technology to move things around other than to just create more streets. when you can connect everything and figure out how to optimize that, and you can do all the ai and big data on moving goods and services, people and things around a city, and as cities grow larger, that is a tremendous advantage to those cities. there's a lot of desire for people to get things connected so they can start that in a big way.

caroline: do you feel a sense of responsibility that you are a driving force behind this technology, that you are in a race to win it for the u.s. to a certain extent? steve: probably broader than the u.s. our business model if you go way back to the highest level of it is about -- it is about creating a bigger pie. you are trying to make the market grow, and particularly in areas where a market is developing that did not develop before, we do well in creating value for our shareholders. what we think about is how do we create an industry that does not exist? what are the fundamental technologies we need to create? how do we scale them, share them with everyone? what we don't do, because we are not good at doing this, is figuring out what is the end product. what we try to figure out is what is the hardest technology and what can we deliver the biggest piece so that people can innovate on top of it? from that perspective, you look

and say, wow logistics is going , to be big. digital health care is going to be big. what do we need to do so that 10 years from now some company that , everyone will know will develop and use these technologies? if we can do that, we can deliver for our shareholders and really deliver for this goal to grow the pie, i guess. taylor: that was qualcomm ceo steve mollenkopf. that does it for this edition of "bloomberg technology." "bloomberg technology" is livestreaming on twitter. check us out, @technology. be sure to follow our global breaking news network, @tictoc, on twitter. this is bloomberg. ♪ whether you're out here on lte.

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