emily: i'm emily chang in san francisco. this is bloomberg technology. coming up, apple sales crushed wall street estimates. second-quarter revenues surging. ceo tim cook saying apple in time -- and products helped users meet the moment. more on the numbers and analysis. plus, a huge revenue beat for facebook. putting sales of $26.17 billion. growing more than 47%. marking at least nine straight

revenue beat for facebook. we have all the details. microsoft president brad smith says google is hurting the open web and may be a threat to democracy. he joins me for a wide-ranging conversation about antitrust scrutiny on big tech as the company nears a $2 trillion market cap. he also talked about president biden's corporate tax plan. it was a big day for tech giants apple and facebook. both reporting after the bell. both reading on revenue. with more on that, kriti gupta and ed ludlow. kriti: i want to show you the tech broadly this with display earnings is not doing well. nasdaq 100 on a three day timeframe, negative the switch. this is after the two days slide. let's see if it rebounds tomorrow. it was enough to lift the s&p 500.

i want to show you where the new york thing index is. 0.3%. twitter, snapchat, apple. all of those tech names, that is where they are at that is really even with the broader tech underperformance. that is what cap the s&p 500 flat today. even volatility was down a bit. we have to talk about the semi conductors on a tear for the whole year. now you are starting to see them plateau. it will be interesting to see how they go into this next month. that is the big picture. let's go under the hood with ed ludlow. ed: three big names. three big beats. three tech stocks popping in after hours. let's start with facebook. ad revenue soaring 47%. all the love it has felt during

the pandemic persists. this time around, add pricing is going up. add volumes are going up. they did caution about headwinds that targeted advertising. that relates directly to the apple ios update, which we will be covering this week. if we take a look as well at qualcomm, the chipmaker having a blowout quarter. eating estimates across the board on sales. there is till -- there is still the tight supply issue. a good headache if you are a chipmaker, but qualcomm is at the mercy of third parties like tsmc and samsung. it has to prioritize sales to higher end products where the margin is better and it has to think about industries like the automotive industry. let's talk about apple. incredible performance across the board from apple. iphone sales better than expected. services sales better than expected. they added $90 billion to the

existing share buyback program, which has left investors happy after hours. apple is a stock that has trailed the s&p 500, that has not performed that well year today. we will listen in on the call. emily: thanks for that. want to keep talking about apple. crushing wall street estimates. principal analyst julie oscar joining me now. apple doubling its profits on soaring sales of the ipo and -- of the iphone. what are the takeaways? >> apple crushes it every quarter. apple is in all the right businesses. we are working from home more. we are even working out at home.

emily: let's talk about -- tim cook talked about this being a period of sweeping innovation. apple has been working toward this strategy of a family of products. you can choose from many models of an iphone if you want to buy now. >> when we talk about sweeping innovation, that is something that could apply to the past decade. i do believe apple has been building a family of products and services where the more services they offer, the more products i want to buy and the more services i want to buy. they have build out an ecosystem that has been effective in generating more revenue per customer over the past decade. very thoughtful. emily: absolutely. where do think the next generation of innovation is going to come from? we are expecting a big september event like they always have. they just unveiled this

of imcs -- this new line of imacs. they can connect all of these products in a more seamless way. >> there are a couple things to look at. especially when you look at markets that are fairly mature like the iphone or laptop computers, someone like apple where you are talking about real innovation, has to be talking about new industries. what i would be expecting to see from a services standpoint, where are they going to go with health care? where are they going to go with education? where are they going to go in industries where they have not been as strong? they got a bit of a late start with media. they are in fitness and wellness. with innovation, we look back and say apple made a big jump forward. it is going to be in some adjacent industry where we are seeing greater adoption of

technology. emily: tim cook on the earnings call saying all-time mac revenue hit a record. that was fueled by custom versions by that m1 chip. >> anytime a company and especially a hardware company like apple with a vertically integrated stack, not only can they have more power to deliver really differentiating experiences, but they can do so in a way that is more secure, protects consumer privacy and those are all things consumers notice and will buy from apple. it is not very transparent to consumers. the more of that stack apple controls, the more differentiated experiences will be over the long-term. emily: tim cook saying about this quarter it reflects the

enduring way our products have helped users meet this moment in their own lives as well as the optimism consumers seem to feel about better days ahead. that is an interesting segway. we have gone through this major transition. now we are going through and other transition in the workforce. people going back to work and school. is the demand for devices going to be the same? i know many of us will do even more online than we did before. but also, folks are going back to the office kids are going back to school. >> there is a bit of that. i hope it is in that model. that has to be part of what you are counting on. if you look historically, a lot of us had two smartphones. maybe we are going to have a second laptop or the kids are going to have a tablet because school systems want to be

prepared. people are still going to want those devices and services that work at home and give flexibility. even when you look at people going back, there are still a lot of hybrid models in place. i don't think there are any signs we will see weakened demand. emily: they talked about ted lasso and its success during the last apical deck the last apple spring-loaded event. always great to have your commentary. coming up, we are going to be talking about facebook. shares climbing after the company reported a revenue beat. its ad game is still strong. plus, microsoft president brad smith not mincing words when it comes to antitrust concerns about big tech. his thoughts on why google has created a big problem.

he is coming up later this hour. >> google has fundamentally sucked most of the oxygen out of the opportunities for people who create content.

emily: facebook shares up after hours after the company reported a first quarter revenue beat. let's get to it with an analyst at insider intelligence. whether the digital ad market would keep up. here we are. what do we know now? >> we know facebook is

weathering the storm. facebook got stronger in 2020. as a result of the pandemic. it is now verging on almost a quarter of the worldwide digital ad market. we know based on the q1 results that facebook has continued to benefit from the pandemic with ad revenue up 46% year-over-year. user gains as well. not as strong as the ad revenue growth has been. again, it is hard to keep seeing this quarter after quarter, but they keep beating expectations and it is pretty remarkable. emily: and yet they say there are headwinds coming weathered as regulatory changes or put form changes or changes apple has made to its operating system that could impact ad tracking capabilities across the web. what do we know about how that will impact facebook at how it is impacting facebook so far?

>> one thing we know is facebook ready much always says every quarter there are headwinds. and they seem to be those headwinds almost every quarter. you have to take that starting with a grain of salt. that said, i do think what is going on with apple with the challenge of the changes apple is making with the ios 14.5, which is going to limit tracking and the ability of facebook no more -- facebook to know more about what it did outside of the facebook platform, i think these are concerned that are weighing on facebook paid at the same time, we are also seeing the company make a lot of strides in developing new ad products, in developing new measurement capabilities and e-commerce offerings. it is hoping -- the company is

hoping it will help it to continue to fend off these challenges apple is proposing or is posing, excuse me. emily: meantime, we are around the world, coming out of lockdown. what does that mean for facebook and its family of products if people are spending less time online, or will they be? >> that is something we have been talking about internally. we were expecting facebook usage would start to decline. the frequency of usage would start to decline after seeing a bump in the early part of 2020. that has started to happen in the u.s. and canada, which is not unexpected on our part. we are still seeing growth gains in monthly active users in regions like the u.s. and canada and europe. they have continued to show gains in asia-pacific and the rest of the world. from that perspective,

facebook's family are doing well. instagram is definitely growing to an it is getting audience only among young people but increasingly among older people. whatsapp, we don't have specific numbers from facebook on how they are doing, but it remains to be one of the most popular messaging platforms around the world. when it comes to facebook's position as a place to reach people when you are thinking about it as an advertiser, it is still very powerful and it has a lock on a huge portion of the internet audience around the world. emily: how much does facebook's brand reputation concern you as a risk? more focused on facebook and less of a concern at instagram. that coupled with competition from tiktok, how big of a risk is it? >> it weighs on me, but it weighs on facebook as well. we are seeing in the past couple of weeks and months, facebook saying it is going to take more steps to do things like let people change up their newsfeeds to show more positive things or

things they are more interested in. facebook is trying to tamp down on the relentless onslaught of negative and divisive content that has plagued it for a long time. these things remain to be seen. this is not an easy challenge to change a news feed or make it a better, more positive thing. it is something facebook has to do. if it can succeed in that, it is going to attract -- continue to attract users and have people coming back. i 100% agree this is a big challenge. tiktok is also a big challenge as well, especially for the younger audience. emily: all right. more to continue to work through.

we will keep listening to the facebook earnings call. thanks so much for stopping by. coming up, despite strong first-quarter results of that the estimates, shares are falling. we will speak to a ceo and get reaction on that next. this on the back of the most massive cyber in history. this is bloomberg. >> we set an all-time revenue record continuing momentum from the product category. in fact, the last three quarters have been its three best quarters ever. ♪

emily: fireeye reported better-than-expected first-quarter results. the company saying it was one of the strongest quarters in history. analysts were mostly positive on the report shares continuing to fall. joining us now, the ceo. a big quarter, but shares down.

analysts saying there is no positive catalyst for the stock one forward. what is your reaction to that? >> i don't think that is correct. i don't think most analysts are saying that. we have never been more relevant. we posted 46% billings growth in the emerging strategic portions of our company. people have to know the whole story. five years ago, over 60% of our business started a steady decline. today, 69% of our business has revenues growing at 25%. it is in the cloud security category. it is the professional services that are uniquely differentiated. i have never been more bullish than now on fireeye. the side of our company that is growing faster and is more relevant is now the larger half. it is a law of numbers. we will have faster and faster aggregate growth every single quarter.

emily: it was one analyst from piper stadler who said stocks were a positive catalyst. i hear your point. there is definitely the need for services and software you provide given this spate of massive cyberattacks. it has been one after the other. what is going on? have adversaries entered an entirely new era? >> it is a tough year. for all folks who make security their living, my hat is off to you. in some way, it is showing our security is getting better. you have to have implants to break in. we are responding to more zero day based attacks or attacks where there is simply no patch available for them. more this year than the last few years combined. we are not finding them soon enough.

there is usually a victim or two to the zero day. we have been armed. they have been found by bad actors. we are running it after the fact. the best way to describe the internet, it is a hostile neighborhood. you have got to come prepared to fight and defend yourself. emily: so as folks moved back to the office and we go through another massive workforce transformation, what are the biggest threats you see on the horizon given that so many different actors out there and state actors as well are more brazen than ever? >> why do believe if you watch geopolitics, hacks follow where the money goes. hacks follow political conditions. there could be nations making different political squeezes. i don't think much will change on the threat horizon whether you're in the office or out of the office. the attackers are 10,000 miles away.

they don't know where you are at. they will still attack. you can monetize ransomware in russia, north korea, in iran. with no risk or repercussions. there will always be ransomware actors, extortionists using the internet and again, based on geopolitical conditions, we are going to see modern nations developing all offensive capabilities and exercising those capabilities without rules of engagement that are clearly defined. emily: i am curious -- if we are getting any closer on attribution. microsoft attributed the exchange hack to a group no one had heard of before march. do you know what it is and who has the most incredible intelligence to be attributing these attacks? >> it depends on the types of attacks. there are times where cisco has great intelligence. amazon web services has great web intelligence. our intelligence collections arm, that is the tough thing

about cyberspace. you can see the planes if they are attacking in the air. you can see the army on land. in the cyber domain, everything is invisible. without the -- with the invisibility cloak, you having a tough time. it is a gray area of domain. people are hiding their true identities. i have no reason to think microsoft has it wrong. emily: the chinese government has repeatedly denied allegations it was involved. does the chinese government have any credibility here on this issue or is there some nuance we are not getting? >> i can't tell as to the truthfulness of different asian -- different nations and the diplomats. i just know the evidence we see, they are most consistent with the chinese threat actor. i have every reason to think microsoft got that attribution right.

emily: the time it takes you to identify atac -- a hack has condensed from summing like over a year to just 24 days. i know that is good, but also bad. what does that tell you? >> ransomware is shortening it. what you are talking about is called dwell time. from the moment a company is compromised to the moment they know it. if you know right away, you can respond right away and diminish the consequence. 24 days, we almost had to divide the types of investigations. we did over a thousand investigations in the timeframe we reported on. ransomware and extortion, you get the alarm well. -- alarm bell. that is shortening the timeframe. that being said, as an industry, everybody is detecting attacks faxed or -- attacks faster than 10 years ago. emily: fascinating stuff. thanks so much, kevin.

coming up, we are going to talk about qualcomm, the world's largest smartphone chipmaker. we will break down the results next. this is bloomberg. ♪

>> we have material improvement in supply, until the end of this calendar year, result of capacity planning we put in place. investing in new capacity coming online. multi-sourcing, redesign of products to make use of the available capacity. emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. that was qualcomm ceo cristiano among talking about the company's outlook on supply chain issues. i spoke with him and the current

ceo. global chips shortage has caused many semi conductors to revise their production timelines. take a listen to what mullen cap had to say, especially when it comes to 5g. >> the 5g strategy is playing out pretty well actually. we are working through getting more supply. but i would say at this point, we feel like we have more tailwinds than headwinds and we are growing into a market that is pretty favorable from the perspectives of overall demand, but also the opportunity as -- across oems are opening. emily: that is his last earnings call today as ceo. with maran how the company fared and earnings result, the company that cristiano amari is in hand -- is inheriting, i want to get to add letlow. walk us through them numbers.

at: it is a nice problem to have. look at how investors responded. not just to the beat across the board, but the upgraded outlook of the current quarter. why we care about qualcomm is it is such an important chipmaker when it comes to smartphone demand. flip the board. let's go through the numbers. what is so amazing about this is there were supply constraints. they depend on samsung who manufacture the chip on their behalf. they prioritize chips for more expensive products and that helped them boost sales. they could have had better sales if there were no supply constraints. they are having to maneuver in the meantime. that really boosted the top and bottom line. that -- this is the key thing, in the biggest picture, demand is exceeding supply right now. that is something that qualcomm and all chipmakers are having to work through. flip up the boards for a final time. qualcomm has really lagged the philadelphia semiconductor index in a pretty big way. this was a good set of numbers. the strategy seems to be good. the outlook for the current quarter and the rest of the year

appears to be good. especially when it comes to supply issues. was this the turning corner for the stock? that is the question that investors will have going forward. emily: ed ludlow, thank you for that roundup. we will be speaking to qualcomm ceo tomorrow right here on bloomberg technology. you don't want to miss it. meantime, president biden will deliver an address to the joint session of congress this evening. we are getting excerpts of what will be included. he will say america is on the move again. he will also say wall street did not build this country. with more, i want to get to emily wilkins in washington who has a preview of the highlights. what more do we know about what president biden will have to say? emily w.: we knew a little bit about this earlier this week. now we are getting more details. president biden is planning on making a direct appeal to

americans who feel like the country has left them behind. these are a lot of voters who went for president donald trump in 2016 and 2020. president biden is trying to tailor a message that will win them over saying look, this plane will create jobs, it is going to create jobs that you can have and apply for even if you don't have a college degree or an associates degree. it is jobs that are not going to be leaving the country. it is blue-collar jobs. that is how biden is pitching part of this plan to americans. it is the j word, we hear over and over again, jobs, jobs, jobs, jobs, jobs. expect to hear a lot more of that tonight. in addition to the fact that we will be hearing more about the social infrastructure aspect of the plan, that includes items such as universal prekindergarten for three and four-year-olds, two for years of community college, an increase in the amount of government-funded pell grants for low income students attending college, as well as measures on childcare and paid leave. emily: so, looking through these remarks, and to your point about jobs, president biden will say

the americans jobs plan is a blue-collar blueprint to build america, and it recognizes something i've always said. wall street didn't build this country. the middle class built this country. unions built the middle class. what is the town the president is trying to set here? emily w.: i think to understand this a little bit, look back to when president biden was candidate biden. one of the main areas where he spent a lot of time was in his home state of pennsylvania, talking to workers there who felt like the economy had left them behind. those blue-collar workers who used it to have those jobs that have now been exported to other countries. president biden, those individuals, those voters, they use to members of the democratic party. in recent elections, we have seen them shift to the republican party. this is president biden's bed to get, those individuals back with

the democrat party back voting with the democrats, back with the democrats as the party of the blue-collar middle-class. i think that is what you are going to see a lot of these policies aimed at, as president biden speaks this evening. emily: all right, bloomberg's elderly wilkins, we will be watching president biden's speech. stay with us. we will have special coverage of this joint address to congress here on bloomberg television and radio starting at 8:30 p.m. eastern time. coming up, microsoft president brad smith takes aim at alphabet saying google is not just stifling local news, but it is a threat to the open web. perhaps even democracy. he will join me in a wide-ranging conversation next. this is bloomberg. ♪

emily: microsoft shares have been down 3% on the back of earnings result. the cloud unit azure saw 50% growth year-over-year. microsoft beat estimates across the board on average, but missed the highest targets. this is microsoft's market cap nears $2 trillion. the stock has been on an incredible run. a wide-ranging interview, i spoke with brad smith about president biden's corporate tax plane, antitrust scrutiny, and got his take on investor reaction to the company's latest results. brad: we have seen a 55% increase or so in our stock

price over the last 12 months. it is not surprising we are seeing a bit of a step back. the reality is that it was a very strong quarter. it exceeded expectations. it had revenue growth of 19%, operating income growth of 31%. i think in some anyways, we were pleased to see was strength across the board. azure continuing to be a leader with 50% growth. strong pc growth. that was great to see. i think that is here to stay as people have rediscovered how valuable a laptop and a pc are. and's growth in graining -- gaming led by our xbox consoles. when we look across the board, every part of our business is doing well right now. emily: microsoft market cap has been flirting with $2 trillion which i know is -- which does not love talking about. but it is my compass meant pure what do you think? brad: stock prices are one way to measure what you do. of course, the world is going to look at it. but it is a yardstick or a

measurement today. and it will change tomorrow. i think the real question for us every day, especially when it comes to our strategic planning, is what does the world need for months in the year 2030? what will the world need from technology in the year 2030? how do we make the long-term investments that will continue to accrue to what we can achieve? in that instance, nine years from now. we are looking way beyond the stock price and today's price. emily: i have to ask you then about biden's corporate tax plane which would raise microsoft's taxes. i spoke to alphabet ceo who said google is supportive but tax policy is only part of the answer. the government needs to look at raising revenue in a coordinated way. what do you think? should microsoft be paying more

in taxes? brad: what we have said is we need to have a conversation about corporate taxes. i think we need to do it in a way that is sensitive to the needs of different parts of the economy. clearly, some parts of the economy, like the tech sector, have more capacity. we are doing better. we would certainly like to see our competitors paying their fair share of taxes. there are some in the industry that frankly pay a very, very low rate. but we also need to be especially sensitive to the international competitiveness of those parts of the american economy that operate on lower margins than tech. it is a real conversation that needs to be had. the nuances are really critical. emily: any competitors you would call out that you think are not paying enough? brad: no, it's owns like you are doing a good job of talking to people already. emily: moving to antitrust. your arrivals are getting most of the scrutiny. apple, amazon, google, facebook. why do you think you are avoiding the hot seat? what do you have to say about --

say to the set -- to the skeptics who say regulators should look at microsoft? brad: i don't know that we are in quite the same market position as some of our competitors. we certainly get questions from time to time. we always focus on answering them and addressing them. i do think as all of this evolves, we are going to see antitrust regulators focus their energy in certain areas. certainly from our perspective, we have been very public about, for example, what we see as the impact of google on something like local journalism. it is interesting to just look at what is -- what has happened to what was supposed to be an open web. that was the promise of the internet. that it would be open to everyone. while it is at one level, the reality is that google has fundamentally sucked most of the oxygen out of the opportunities for people who create content. two actually earn a living through advertising. in 2005, news organizations in

the united states earned $45 billion, almost $50 billion, from advertising. that has fallen to $14 billion. it has created this huge hole in opportunity for people to earn a living by writing and creating news. where has all the money gone? it is very clear where it has gone. in alphabet's earnings yesterday, they showed that in a single quarter, they had almost $45 billion in digital advertising. so what google has fundamentally done is redesign and reengineer the web, so that if you want to make money from content based on advertising, you have to do it through their exchange by using their tools, and paying money to and through google. the open web is now open in theory only. because if people can't make a living by generating content, then they just are forced to go do something else.

when you see the impact of that, when you see the impact on local news, what you are seeing increasingly is a threat to democracy itself. so i think that is where we are going to see regulators move. and i think where we are focused on is seeing what we can do to restore some of these opportunities for others across the web. emily: so, you are also announcing this five-year on another note, five-year initiative to close the disability divide, including new technology, new investments, new skills and partnerships. there are so many disabled people who frankly are not in the workforce when they could be. why is this so important to microsoft? brad: i'm so glad you asked. this is an enormously important issue. i think we all have an

opportunity to learn more about it. when you look at the world today, and you just look at the demographics, you see two things. first, more than one billion people have some type of disability. temporary or permanent. and the number is growing. both because of the aging population, and unfortunately because of the legacy that covid will leave in its wake. second, we see an enormous disability divide. only 33% of people in the united states with a disability have a job today. that compares with 76% of their peers. people with disabilities, in short, are less likely to have a job, and are more likely to live in poverty. and this is something that we in the tech sector can do more to address. and that is why at microsoft, we are launching a new five-year initiative today that really is

focused on three things. one, making digital technology a more effective tool for people with disabilities, and for companies that rightly should want to hire more people with disabilities. two, we really want to use technology to open up the workforce, to help people with disabilities master the learning and connect with the skills and jobs, so that they can be the valuable part of the workforce they should. and third, make workplaces themselves more inclusive. more accommodating and welcoming. as we found at microsoft, people with disabilities have enormous talent. we just have to think a little bit differently to make it easier for these people to join us and work successfully. and when we do, we are a better business because of it. so we are very committed to this as an important initiative going forward. emily: microsoft president brad smith there. coming, enjoy technology, the latest start to hop into the game, we will talk to the ceo who is a former apple executive

and ran apple stores about the deal. plus his thoughts on apple's quarter. as we had to break, tim cook on the earnings call after the company's big revenue beat. he says shortages are expected to the ipad based on strong demand for both those products. he adds that services like streaming are gaining ground. this is bloomberg. a™ >> it is a milestone. for apple tv plus, racking up nominations and wins including its first off -- first oscar nomination. ted lasso in particular has been recognized with a multitude of awards and nominations. ♪

emily: enjoying the spac spotlight. enjoy technology announcing it is going public through a merger with marquis rain acquisition

court. the startup operates mobile retail stores and helps customers set up their new tech purchases. the deal giving enjoy a value of $1.2 billion. here to talk more about it, ceo ron johnson who was known as the cocreator of apple stores. he ran a couple stores for a long time, former ceo of jcpenney. why spac? how did you come to this decision? ron: we have billing and joy for her seven years. it is time to capitalize company to take advantage of the opportunities we see around the world. shopping has been moving to the home for about 30 years. i think of it as commerce at home. last year, 25% of all purchases were done in the home and delivered to the home. our vision is that for certain products, people would love you to go through the door. we have now created the ability to bring the entire retail experience into the home, where you can do everything in the home that you can do in a store,

for free. we operate mobile stores, great companies in the world. british telecom and the u.k., rogers in canada. now with apple here in select cities in the u.s., it is a great time to raise money. it is a here -- a great time to go public. because we have near-term news into being a profitable company. emily: obviously, the apple store has been so central to the experience of buying an apple product. now and the pandemic, people have not been able to go to the store. i know you architected that strategy. do you think the apple store will still be as important in the future, given options like enjoy that are out there? and what we have all just been through in the last 13 months. ron: i do think the apple store will continue to thrive. the apple store just gets better and better. it has been a tough year with the pandemic, but they keep

creating new experience in the stores. with all of the new products, people will go there to discover. what happens in the world of retail though is tired retail gets out of favor. people are looking for the next thing. just like we look for the next product, we look for the next experience. so the apple store continues to provide an amazing experience. i think the stores will stay as busy as they have been. with enjoy, you have another alternative. in effect, you can go to the store, where the store can come to you. through our partnership with apple, we can do pretty much whatever you do in the store. we deliver the product, next day, to our timeframe. it's free. we set it up. to teach you how to use it. we carry the same point-of-sale use in the store so you can buy anything we have in our mobile store. we can carry up to 500 products with us in your driveway. we can take trade-ins. mostly, we can introduce you to the whole new world of services apple has to help you understand why apple fitness, apple news,

apple tv plus, apple music, why they are important to you. so the deep engagement is what the stores deliver. we deliver that in the home. it is not -- so now apple has more choices for its customers. that is what good companies do. they stay ahead from where the puck is going, so to speak. emily: do you think much will happen in physical stores in general? let's take apple out of the equation. having run jcpenney and so much of our behavior online has accelerated as a result of the pandemic, what does that mean for physical retail more broadly? ron: there is no doubt we are in, not a postwar world but a -- post-store world but a reduced store world. online has won. the convenience is too great. people want convenience. but they also want experience. so in the retail world, there

will be fewer stores. the great shopping centers like down where i live, stanford shopping center will be better than ever. we will still go to the mall and the mall will be different. you can work out at the mall, there are more restaurants, you can go discover, they have the great stores. it is the second or third tier shopping experiences that will go away. that means more and more people start online, that is why our company is in such an enviable position for the next few decades. if people start online, all we have to do is say for this product, instead of having convenience only delivered to the door, i would like an experience. when your product really counts, like you are getting a new cell phone and you want to make sure you are on the right rate plan, you are getting a new apple device, i think people will choose to have an at-home retail experience. that is what we are building. emily: all right. fascinating stuff. we have covered you from the very beginning. really interesting to hear your outlook on what is to come and what you have been working on. ron johnson, ceo of and joy. thanks so much.

we have been listening into the apple earnings call, as we were talking to ron. some more headlines coming out. tim cook saying he believes apple is in the early innings with the apple watch, the apple -- that apple tv plus is going very well. they are not going to be releasing subscriber numbers for apple tv plus any time soon. they are facing constraints from the overall chip shortage. i said earlier that they would be seeing shortages of the mac and ipad. now more color there that that is in part because of the chip shortage. tim cook also saying the iphone 12, which is the latest model, the most popular of all new models, so far. strong performance of the iphone 12 pro. a lot more headlines to come. we will keep covering this. don't turn away from bloomberg television. we will keep on apple earnings as the numbers continue to rollout. that does it for this edition of "bloomberg technology." "bloomberg daybreak: australia"

is coming up next. i'm emily chang in san francisco. this is bloomberg. ♪

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