>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang in . ♪

emily: i am emily chang, and this is "bloomberg technology." we are alive from apple's campus where the company just unveiled its next generation of devices. the upgrades to new iphones. watch and airports focusing on health, safety and satellite connectivity. one surprise, the price of the bottom of the line-was unchanged despite the worst inflation in decades. we will give you the full download. but first, we want to get a look at the markets and how shares reacted to apples big reveal. ed ludlow is back at home base in san francisco. take it away. ed: apple did not push to session highs till they got to the point of the presentation where we got the details for iphone 14, particularly the pro- and higher end models. we treaded water on the stock throughout the unveiling of the latest generation of apple watch and airpods, but we pushed

higher once the details of iphone 14 started to come up. appo 0.4%. on seven occasions over the past decade when apple has unveiled a new generation of handsets, the stock has actually declined and closed lower, so it was interesting to see that. this is a satellite operator that was down 16% at one point during apple's presentation and then jumped up 44%, ultimately closing down 1.4%. it has a pact to support the satellite and tech services apple is going to offer. gorman did not react but it is competing with the apple watch -- garmin. the technology sector was helped by a pause in the selloff that we have seen in the bond market. that performance the nasdaq 100. tech-heavy, of course. and u.s. listed shares of chinese companies, the golden dragon china index. interesting to see that it is

still down year-to-date, outperforming the s&p 500, but still on track for its first annual decline since 2018. emily: alright, ed, we will check in with you lower initial. i want to bring in our guest who is here with me, at apple headquarters inside the steve jobs theater for the first time in a few years actually. her significant do you think these upgrades are, and key, are people going to buy these new devices, with inflation higher than what it has in in 40 years? carolina: the focus has been on the opening point to the customer has and it also hit on the key drivers that you see the consumer talk about the battery life, battery display, is it a better camera with lowlight conditions? you saw tim cook opened with the value of each product and the magic that the three products that we are here for today bring

together. that is what you have when you are thinking about upgrading. you might have one of these products that are older and you want to get into the cycle so that you can get better advantage of the new features but also feel the magic that cook was talking about. emily: the most significant announcement was the price of the lowest tier iphone 14, it being the same price as the iphone 13 was last year. carolina: the price is good and bad, depending on how you look at it, right? have seen some consumer electronic companies bring their prices up earlier in the year because of inflation. i think what was interesting to sweeten a little bit the price point was the deals for the trade ins through the carriers in the u.s. and directly from apple, $800 to $1000 depending on what model you are trading in. emily: let's talk about the

other things, satellite connectivity, that was a really big deal. and how significant is that going to be in terms of driving more people to buy these phones? carolina: i don't know if the satellite is a purchased driver per se, but i think it is the extra peace of mind, same way that you think about insurance, you have it, you purchase it, you hope you never need to use it but it is there in case you need it. it is the same with the future of car crash detection, for example, peace of mind for parents with a new drivers coming on, a feature that is both on the watch and on the phone. all the way throughout the portfolio. so the safety was an extra, if you like, pillar on what apple built today. emily: emily: all right, let's talk about the apple watch ultra. significant pricing and news

there as well, very much undercutting garmin at the higher end of the market. they call it a dive computer, it can go 40 meters below the surface of the ocean. seems really cool, but how big of a market is therefore a niche, record smartwatch. carolina: you have the people who purchase the garmin, the wannabe, those who wish but can't commit that market is considerable. what was smart about the design is that despite the size being so large, it is very lightweight. i have a small rest like you do, and it looks humongous on the rest, but it is not heavy. so i think they have done a good job from a style perspective to grow the market only could have priced it at $999 if they wanted to. emily: what do you look for in terms of the numbers? i spoke with tim cook and he said they expect revenue to accelerate in september. of course, we know new

iphones are going to go on sale before the quarter ends so they can get some additional boost. how much of a difference will that make? it'd give the global economy a morale boost if apple is able to beat or even meet expectations? carolina: you have three lines that will contribute to that boost. it depends on the time of release for the iphone, getting into october as well, you have that carried through to the next quarter. we also have the airpods pro at $250, they will drive a lot of upgrades. there is a lot of price point there that will help the bottom line. it is the magic of all three coming together. emily: the airpods were a sleeper hit. and it has been a long time, people have been waiting for an upgrade. and a lot of people also lose their airpods, will they want to spend $250 and something that

is, yes, beloved, but also easy to lose? carolina: i have a teenager who always loses them and i feel that pain, but they make it easier to find them now, you can find each individual airpods in an easier way. the silly thing of the memoji engravings speaks to the popularity. your household with multiple airpods that live together and that will make it easier for the consumer to spot which one is mine. emily: and we were talking about new chips, faster, big-tech upgrades even though we might not necessarily see them as consumers. carolina milanesi of creative strategies, thank you for joining us. good to see you. coming up, apple seems to have supply-chain issues under control. will that keep up? through the holiday rush amidst rising global tensions? we will discuss.

this is bloomberg. ♪

emily: apple seems to have managed supply bottlenecks spurred by the pandemic but now it has to navigate the chips act and a new policy designed to boost u.s. production of tech products, and that includes approval of semiconductor exports to country of concern, including china. we want to bring in our equity analyst from cfra, angelo zino. let's talk about supply chain management for these new products. is apple going to be able to get

these all these new watches and airpods to people who need them, in time for the holidays? angelo: for the holidays, yes, we think so. we think it is interesting that clearly the timing of this event being on september 7 and the actual launch of the phones, i mean, we were talking about september 16 i believe is when shipment starts, a week earlier than we had anticipated, i think that in itself should tell you that they are absolutely managing the supply constraints that may be they had to contend with more severely earlier this year but in a much better situation. they should be better positioned in the next couple of months than others out there. i will say that as far as these phones are concerned, i mean, it is more supply driven than demand-driven in terms of expectations for the september quarter. we expect some supply constraints in a couple of weeks. it is interesting how they put

the launch of these phones. we had the iphone devices that will be available at the end of next week where the other one will be in october. that will help them also navigate constraints and put more emphasis on those pro devices, which of course are higher priced and have better margins. emily: when you look at the apple website and the shipping times, a lot of those times have come down, which is sort of a gauge of how much trouble they are having making these products and getting them to customers, the iphone, the mac, ipad, all of them coming at which point they come. we have seen various chip companies continued to struggle when we look at their earnings. what is it about apple that they aren't having these issues? angelo: i would say there in a much better position than

others. the biggest reason is they are the largest purchaser of semiconductor goods out there on a pure play basis. they utilize their own smartphones. ample kind of outsources all of their semiconductor needs. so they have to -- they have delicate needs and because of that, they are first in line to get those goods. at the end of the day, though, when we look at supply constraints and where they continued to be the most severe, definitely it is your microprocessors, microcontrollers and what have you. apple does need to purchase those types of components. but again, they are in better position than others out there to get those orders fulfilled.

emily: obviously, we know how interconnected apple supply chain is with china. they have been trying to diversify that and likely it will not be so intertwined in years to come, but that is still the case for now. how will rising global tensions impact appo, how will the chips act coming to play? angelo: clearly, longer-term, apple wants to diversify its supply chain. their emphasis will be more so in in here than other regions of the world, rightfully so because when you think about where the demand upside could potentially come from from apple over the next decade, i think india is a big reason we are bullish on appo, the natural wealth effect that will take place in india the next 20 years. so it makes sense for apple to start expanding into that region. that being said, apple remains

well-positioned. -- well-positioned in china. we don't expect them to shut down any production at there. as more and more chip companies out there evolved within china, there is actually a possibility where apple could potentially use their local semiconductor manufacturing industry as well. we do expect them to continue to look for ways to expand and further diversify outside of china, and india will be key. i don't know how much an impact that chips act will have within the u.s., but time will tell. emily: the big question remains, how many people will upgrade their devices in the middle of a downturn when they are already paying more for everything else. how significant do you think the pricing we heard today -- the apple watch ultra, 790 nine dollars. iphone 14, $799.

same price it was last year as the iphone 13. that seems to be pretty significant. angelo: yes, someone said there was a possibility they could have raised their prices on the pro devices. but i am kind of happy that they didn't, to be honest with you. first of all, our forecast for the upcoming cycle here in terms of the iphone 14 cycle is no growth on the unit side of things. however, we expect the average selling price to increase 3%. clearly, they are ditching that mini, adding the 6.7 inch-plus device. for they have announced on the pro side of things relative to what they have done with the two standard devices, you could potentially see more consumers gravitate out there towards the pro devices, at least for the september quarter and the december quarter.

we remain optimistic in terms of units, to percent or 3% above the street. . we do get a little more concerned on the macro side of things in the next two quarters. emily: angelo zino from cfra, thank you for giving us the big-picture view. appreciate it. coming up, elon musk's request denied. we will get the latest on thatnext. this is bloomberg. ♪

emily: shares of twitter jumping in yesterday's sunshine after a delaware judge told elon musk we cannot delay the trial with twitter. of course, he tried to walk away from the 44 billion dollar deal. ed ludlow is here with all the details. ed, a big loss for elon,

meaning he will not be able to pull together additional discovery. what is a signal for the judge? ed: best day for twitter shares since july, the idea being that a brisker timeline further trial favors twitter. the brisker schedule boosts the odds that twitter will be able to enforce the original deal terms, which is $54.20 a share, valuing twitter at $44 billion. the judge said she could not delay the trial but even four weeks. musk's team were december. it could bring harm to twitter's business that she could not justify. emily: so, one win for elon musk. he can use the complaints of this whistleblower that recently emerged, to an explain. ed: this is the whistleblower

who filed a complaint on august 23, basically saying that twitter had security deficiencies making its platform vulnerable to hackers and in this complaint that he had been told by a senior twitter executive that there was a spot issue. another judge is saying that incrementally, the musk team can go out incrementally ahead of the trial to include the information that was in the august 23 whistleblower filing in their liberal armory, so to speak. but it all comes down to musk having to prove the same impact, the same legal point that he had to along, which is material adverse effect. street analysts and bloomberg intelligence analysts see this being in twitter's favor at this point. emily: alright ed ludlow, thank you. meantime, tuesday night,

alphabet ceo sundar pichai defended the company in response to claims that it is anticompetitive. he also commented on google's decision to remove former president trump's truth social app from the app store. alex barinka was in the room for the remarks and trends us now. alex, let's start with the anticompetitive acquisitions. no surprise he defended alphabet and google's position, but what do you make of how he did it alex: he brought it up pretty much at every turn. whether he was talking about the ad market were about commerce or competition with tiktok, he brought it back to this argument that alphabet is not anticompetitive, that in fact there is a lot of competition on the market. now, it is a timely argument for him to be making. last night our colleagues reported that the doj may be bringing another anti-competition lawsuit against google on their ad business.

remember there is already a suit from the doj alleging that the company dominates the search market. so it seems like antitrust is definitely on the mind of the alphabet ceo and he wanted to remind us that they have rivals out there in the market as well. emily: meantime, he gave some more detail than i think we would have expected about their decision to remove trump's truth social app from the google play store. tell us what he had to say. alex: that's right he pointed to what is coming back to the -- right now which is content moderation. he said googles play store has standards for what they expect the apps on the platform to participate in when it comes to content moderation and he said it seems like they are looking at that more closely. he also pointed out that the google play store did bring up parler recently.

but for truth social, that content moderation peace and making sure that they can abide by the standards that google expects, that seems to be the breaking point at the moment. emily: meantime, he talked about his goal to make google 20% more productive, which is really significant given how massive that company is. does that mean layoffs? angelo: -- alex: potentially. we talked about finding productivity gain. he gave some past examples like having multiple music applications on different sides of alphabet's platforms and combining those into one. he also talked about things like teams that have perhaps three managers as a decision-maker when there should only be one and that slows things down, so perhaps you don't need that many people.

google is struggling like the rest of the ad-driven businesses in big tech, so he is looking to efficiencies and it sounds like right now they're going through a holistic process of figuring out where they have duplications of the business that they can narrow down and were perhaps the business should be moving faster with fewer voices, to make sure it is hitting those productivity goals. emily: alex barinka for us, you will be back tonight and we will be looking for your dispatches. coming up, more on apple's far out play, how game changing satellites could be. more from cupertino next. this is bloomberg. ♪ >> so we have new iphones, new watches, new airpods. what will people want to up great in a downturn when they are already paying more for gas and groceries? that is the question. ♪

when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't.

the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you.

emily: welcome back to "bloomberg technology." i am emily chang in cupertino, where apple just unveiled a

of products. let's talk about it with maribel lopez, founder and principal analyst of lopez research. to have you back here in person. interesting, they unveiled a ton of new things, some features geared for everyone and some towards more niche users, whether outdoor enthusiasts, or there was also a focus on women's health. what stood out most to you? maribel: what was interesting was that we are in a really mature state of the market, and we have to do things that are definitely for the niche market like the outdoor enthusiasts. but you still want in every release to make sure there is some different everybody. we had temperature sensors for women's health, satellite, which is in all of the iphone 14s so anybody can have emergency calling. it is a balance of various -- very specific things. like you can have a dive computer on your watch. what a range. emily: i know!

women are half the population. how compelling are some of these women's health features, in terms of convincing a new audience to upgrade? maribel: if you are going to hurt every day, you want it to do things that matter in your life. nothing is more important to women at certain points in their life than being able to understand what is happening with their menstrual cycle. i think that makes sense for a broad percentage of the populace. maribel: also doubled down on pregnancy there, privacy has been apple and tim cook's there -- privacy. they have said, we are doing this better than everyone else, protecting you and your data. how important is that in terms of marketing? maribel: there is a bifurcation of those who care about privacy and those who don't. those who monetize you and your data. no one is excelling at that message better than apple now. emily: apple is also building out its own advertising

business. is there some hypocrisy there? maribel: we don't know yet, is the short answer. we don't know exactly what type of data they will collect, what they will do with it or what the privacy constraints are. but it is clear that everybody wants advertising dollars. . emily: let's talk about the video, all the different deserts and snow-covered mountaintops that they went to. but how big a driver do you think this will be? they officially undercut the high-end garmin watch significantly. maribel: i look at this very similar to how the mac was designed for creative's. the watch is now an outdoor enthusiast specialty. you don't need a dive computer, you don't need a garmin watch. if you are a triathlete or someone who just wants all-date battery life and know it is going to work, they struck a

chord. these are complaints that have been in the marketplace and now they have address them. emily: let's talk about what this means over the longer term. 50% of apple's revenue comes from the iphone you will not purchase an apple watch or airpods if you don't have an iphone. are you seeing them becoming more reliant on the iphone? maribel: the world is more reliant on the smartphones. the iphone. has to have those features because it tracks the entire ecosystem with it and that will not change. emily: emily: when you look out over the holidays, potentially a very busy quarter, but the customers are under pressure, they are paying more for gas and groceries and basically everything. iphone is staying at the same price -- thank you, apple -- what do you think this upgrade cycle is going to look like in the downturn? maribel: the upgrade cycle is going to be contentious. people have to make choices between what they will buy. are you going to have an iphone?

having said that, the smartphone is so critical to what people do in their lives that they will choose a smartphone over, say, apc. there is still a great opportunity for the fourth quarter to be a great quarter for apple. emily: maribel lopez, good to have you back on the show. thank you for stopping by. all right, coming up, we will talk more about those satellites and just how game changing that new technology can potentially be, the ability to send sos messages without cell service. details, next. this is bloomberg. ♪

>> unlike stationary cell towers, communication satellites are hundreds of miles above the earth and flying over 15,000 mile per hour. to connect to these satellites, you need to be outside with a clear view of the sky. and the band is so limited, that even sending a text message is a technical challenge. typically, the only way to tap into such a network is with a device that uses a bulky external antenna. we knew that approach just wouldn't work for iphone. so we invented another way. we designed and built custom components and specific software so that iphone 14 antennas can connect to a satellite's unique frequencies. emily: there is one stock that went wild during the iphone 14 unveiling, and it wasn't apple. bloomberg's ed ludlow is back now with a look at global star,

very important partner. ed: globalstar. 15 minutes into the apple presentation, globalstar is down 16%, and the stock has halted pending news. on stage at cupertino where you are, they are discussing the satellite test capabilities that the latest generation of iphone hazard. few minutes later, the stock begins trading and you see it on the right of your screen, a jump from a decline of 16% to a gain of 41%, before ultimately closing down 1.2%. now, there have been rumors for almost a year that globalstar would partner with apple to be there satellite operator. apple is going to pay globalstar fees to provide the service. this is a big win for a tiny company, $3.7 billion market cap sales in the hundreds of millions of dollars each year, but for them it is a really big win. emily: big win indeed, putting a

lot of speculation to rest. thank you, ed. i want to talk about apple's new satellite connectivity and bring in christopher quilty, founder of quilty analytics which works exclusively in the satellite and space industry. i know this is something you have been following for a very long time. on stage today, apple talked about how this took years to put into practice -- hardware, software, infrastructure innovation. how significant is it that apple says it can now pull this off? christopher: it is a good innovation and also a first step. the service as announced today is fairly limited. worse case scenario, good to have as a background technology. betty have been watching the broader industry landscape, there's lots of things happening with satellite and phone connectivity in other companies including spacex and t-mobile. just two weeks ago t-mobile announced the service that is

substantially a more viable service. companies that are working with handset manufacturers, ast space, global, link and supposedly android and google are coming up with satellite phone connectivity also. emily: let's talk about the t-mobile and spacex example. what do they offer that apple does not? chris: the fundamental difference here that matters is the spectrum. in the case of the apple announcement, they are using dedicated satellite-only spectrum which means apple has to put, as they said, specific hardware, antennas and chips to work with that satellite only hardware spectrum. in the case of what spacex is doing with t-mobile, or ast working with vodafone and at&t, they are using the carrier spectrum so there is no change to be made to the device itself.

all the work will be done with the satellite. in the case of a company like ast they are subtly one of the most powerful satellites out there to do the work that the handset can't because the handset has no modifications made to it. emily: if this is a good first step, as you say, what do you imagine the second and third step might be? chris: so, clearly, this is an opening salvo by apple. a provides a basic level of service, can probably draw some extra interest in the iphone 14. but given what is happening in the broader landscape if apple is serious about this, they would have to look at potentially building the satellite constellation of your own, perhaps not a surprise that globalstar does have a filing for over 3000 satellites to potentially launch. they have to build satellites, unlike the second-generation or recently-ordered third-john

delights that have more power and are optimized for working with the consumer handset. emily: do you imagine that some day apple might be interested in building a competitor to starlink, for example? chris: not exactly starlink. starlink's main purpose is broadband. it is not apple's game. i think the reason they partnered with globalstar, they are probably one of the weaker players in terms of their current revenue and their customer profile within the mobile satellite spectrum industry. what they do have is a very good spectrum position. if they eventually use the full aspect of that spectrum, there is the potential to offer a higher data rate, service certainly nothing that would compare with the

starlink service, but maybe even a lower-level 5g service in the longer term. emily: alright, fascinating to look that far out, if you will. chris quilty, quilty analytics co-founder, thank you. we will be more back with "bloomberg technology." this is bloomberg. ♪

>> these incredible products each offers so many great capabilities and work seamlessly together in a way that only apple can deliver.

emily: the apple ceo tim cook there. before we go, i want to recap the day's event. i am joined by mark gurman, our resident apple expert, and julie. mark, i want to start with you. obviously, you have previewed so many of the things we saw today, but there must have been some surprises. what stood out the most to you? mark: leading up to the event there were a lot of analysts expecting price hikes integrally under iphone 14 pro and promax. i didn't believe it was happening and little did we know, they announced today the price hikes, there interesting in light of inflation, price increases from meta's and samsung and others. however, there are some information-related price hikes in europe and india. if you want an iphone 14 pro, it will be the same $799. if you look at the fine print,

some of that carrier deals this year are not as aggressive as last year. last year you were able to upgrade from a 12 promax two 813 promax and get $50 cash back. this year that same upgrade to a 14 promax will cost most people hundreds of dollars. so the carrier deals are not so aggressive. emily: julie it is almost a given. every year you get a new iphone and the price goes up. what do you make of apples play here question mark is a genius or not? julie: i think it is a nod to the consumer headwinds we have seen with people facing. i think it is smart. you heard tim cook say it is essential a lot. "it is essential." it is essential to our health and essential to our safety. i think it is smart marketing. emily: mark, when it comes to the technology, we are seeing more significant upgrades than we saw last year, but some

people might still look at this phone and say it looks like basically the same phone. but those technological upgrades that look into any ship, better battery life, are so hard to do. can you talk to us about the significance of the inside changes that we can't see? mark: if you look at the jump from 13 to the 14, not talking about the probe models, i can safely tell you that there is no reason for you to upgrade, there is no faster processor, the battery life is about the same and that camera enhancements going from the 13 to the 14 are not that significant. but when you get to the pro models, there are some changes. they turn an ugly portion of the iphone into something that looks awesome, right, changing that knowledge into a softer area, you can see when your uber is arriving, when your music is playing back. that is technology that they have spent years developing.

the apple watch pro, we first wrote about it two years ago, this thing has been in development in one way or another since the original apple watch launched seven years ago. let's talk about the car crash feature, right?that required them to actually do car crash testing. they showed a video of that. that takes years. they needed to get this right. years of data collection. and the lengths they go to for testing and development for features like that probably go beyond what any company in the space goes through. emily: right. i have dropped my phone so many times. how will they know that is not a car crash, julie? chris: well, you weren't going 60 miles per hour. emily: what do you agree with there and what would you pick a bone with with what mark had to say? julie: i think the technical advances are very substantial but for consumers, it is very subtle. if you are just going from a 13 to a 14, you are, like, ok, it is a little better but if you

are going from, an 11 or a 14, you can't articulate it as a consumer but you are, like, that is so much better, so much brighter, the pictures are better. so it is the things are settle. i think the other thing they did was they added sensors. you get more data, you get more precise data, they can model more activities. my favorite is being able to track my kids at the pool. they can do that with these sensors. there is several things like managing the battery, like dimming the phone, the transparency, the spatial audio, a lot of things that are just really subtle. i think they are hard to communicate to consumers, but when consumers experience it, they have a wow effect. emily: what is your sense of how difficult supply-chain issues are going to be managed over the next six months? julie: not being an expert in the supply chain, it seems to be impacting the world economy, but

somehow, apple seems to be doing ok. emily: mark, you would agree, right? when you look at the lead times on these various products, they are not that bad. mark: so far on the apple, we are seeing only one of the three variations is shaping by the first of october, and september 23 for the apple watchband. the impact seems to be on the bands themselves, not the watch ultra, so if you are trying to get the watch ultra on launch day, my recommendation would be to purchase any band combination to get the watch and then worry about the band you want later. trying to figure out which bands are going to be more popular, that is going to be tougher for apple. also the watch ultra is one skew -- one color, one finish, one screen size, much less complex to produce when you have fewer skews. so i think they will be ok on

that. they will be fine on apple production -- iphone production. the issues with the ipad and mac supply, those seem to be, according to my research, 90% resolved. . we will see in october when they launch new variations. emily: one thing we did not hear much about was the mixed reality headset that you have been reporting on. an you are expecting it next year. unless there were some easter eggs today that i didn't see, did you hear anything that give you more clues as to what this headset will look like? mark: no, not easter eggs today. i am not expecting them to announce that until next year. and i think 2023 and 2024 will be the year of ar and vr for apple. nothing a r-related to the watch. there are some new audio features for the airpods pro 2

announced today. they might make their way into the speaker system of the reality pro which i believe will be the name of the headset next year, but we are still a few months away from seeing it come to fruition. emily: what about the "m" word, the metaverse? julie: i think apple is really good at timing the market. what we're seeing now is some precursors, which means luxury brands selling you a gucci purse, or roadblocks, something your children play. emily: i prefer real gucci at this point. [laughter] julie: the notion of these augmented reality glass is, we are not there with the technology at where we can get a comfortable headset that will allow consumers with a great price point. i agree with mark, we may see

something announced to the next couple of years, but i believe apple will come into the market when they feel it is ready, they feel the consumer is ready,. and there. is a good use case i think it is still too early. emily: they are still working through hardware and software issues with the forthcoming headset. i want to end with you and comments that tim cook made to me around the last earnings call , which aligned with your reporting that apple is going to be spending through the downturn. that is something they have always done. he feels like it has made them stronger on the other side. but also, that they will be deliberate about that spending. do you have any sense of where apple will pull back, or not, quickly. mark: you are seeing budget cuts across company. i don't think not in core areas. . i think you have enough people to launch the products they want to launch. they are doing a slowdown in

hiring, it is very difficult right now to get hiring approval at apple. you will see them spend probably the same on research and development the next year or so. no growth there. but i am not alarmed about the company's prospects. emily: bloomberg's mark gurman and julie, of forrester research. thank you all for watching this special edition of "bloomberg technology," from apple headquarters in cupertino. thursday we have a financial coming up, golden state warriors' andre iguodala will be joining us. if you are an iggy fan, you don't want to miss this. this is bloomberg. ♪

♪ >> good morning and welcome to daybreak australia. we are counting down to a mayor -- asia'