smug mug, talk about the future of cameras, the ceo of arm talking about chips and 14-year-old app developer. this week, simon segers, the ceo the world's most important chip company, on the internet of everything and how he plans to power it. plus, smug mug founder, don mccaskill and 14-year-old app develop, daniel singer. our reporters, "time" magazine's harry mccracken and john schwartz of "usa today." this week on "press here." good morning, everything is all powered by chips designed by a company called arm. not many people outside the tech industry are that familiar with

arm, but's grown to become one of the most important chip companies, if not the most important chip company in the world and it's british. about the only thing it doesn't likely power is your desktop computer, the one device almost nobody cares about. simon seegers is the new ceo of arm or more prop letter i arm holdings, the british -- the biggest technology company by market cap is all of the uk, joined by john schwartz of "usa today," harry mccracken of "time." i want to talk about how it's designed and how it's slightly different from other chip companies. give me an idea what arm makes or powers. who are your customers? >> you listed many there we are in pretty much every mobile phone you could buy. we are in almost every smartphone, almost every tablet and then a whole raft of other things, everything from dishwashers, anti-lock brake systems in cars. >> i got the list? not bad. not bad at all.

>> now for the viewer to understand, you designed the chips, you -- but you don't manufacture? >> that's right. actually describing us as a chip company is possibly incorrect. >> so, describe arm then. >> we describe ourselves as a semiconductor, intellectual property licensing company. we design microprocessors, we design lots of other things that sit around microprocessor and then license them to people for them to go and build chips. >> who are some of the companies you are working with? >> samsung, texas instruments, marvel, lsi. >> i am thinking just samsung alone that runs the gamut of dishwashers, televisions that list pretty impressive. >> marvel, for instance, i would have thought marvel was a chip company. but in ways, they the manufacture chip and they are doing it off of your design? >> what our licensecies do is taken a arm proser isser, building block of a

sophisticated chip, add all their ip, know how, put the complete design together and get it manufactured. so using the processor, bits and piece wes do as a key building block in a much more complex system. >> you talk about one of your more valuable customers that is apple. when we see the ceo of apple pointing to a chip and saying it is the apple.chip, it is their chip but based on your technology? >> yeah, we have a number of different licensing models. some people take a design that we've done kind of off the shelf, other people take a more fundamental definition of process, architecture, build our own, how that gets described varies a little bit. ultimately based on the instruction set. >> company names is apropos, you are like the switzerland of the tech industry, an arms dealer in a sense.

>> but's interesting as we get to more wearable computing and other chip sensings like in kitchen appliance, nothing but good news for you guys and probably has had a significant impact on your market value, i would assume, the last couple of years? >> what we're seeing in lots of mark sets the need and deet sire to integrate intelligence into lots and lots of different things to lawyer the power consumption, connect to the internet, provide some other service on top of the functionality, security you can lots of reasons you want to embed intelligence. >> necessary one of the companies you work with? they are starting to work around not just thermostat but fire alarms, see them going to every potentially small appliance in a house. >> some intelligence in something that appears -- a thermostat, actually adds some real benefit. two nests in my home and i know

went's time to get up in the morning because it comes on automatically. and it switches itself off automatically when everybody leaves the house, helping me pay less for energy. so it's great. the processor in a chip from our licensees. >> how come intel and amd, the companies are dominated pcs for decades don't dominate mobile gadgets? basically a different kind of thing? >> that's question tough ask them. >> why are you doing so well? >> well, we -- from the outset, we focus olded on designing very small, very low power processor as a building block that could be put into a chip that could doing? else that something else was going to be the outset, we didn't know what the answer was so we tried to design things which are going to be generally useful in lots and lots of different markets and found to be. >> i know you have been around a long time, i found computers in the '90s, technology, the vision

mobile devices would be everywhere. >> really, the vision was around creating this process standard, building an ecosystem of other companies who are going to make it easier to integrate into other device. when it started, we were developing chips for apple newton, that needed to run off a battery, performance and low power consumption. those features just turned out to be use envelope pretty much every other part of electronics. >> a certain amount of, i'm not going to call it dumb luck, but fluke a sense in a time in which intel and amd were focused on computers and people could not buy computers fast enough and microsoft was the most valuable company in the world, you didn't make computer chips for comp suitors, you made them for other things and then all of a sudden, kind of out of nowhere, it flopped. and all of a sudden, the other things, the most important things that we own, and we don't much care about the computers.

i'm not saying it was -- it was a fortunate turn of events as well, the thing you did well turned out to be the thing we all wanted. >> the success has a bit of luck there love to say we were all sitting around going -- the future, this was going to happen. obviously, we weren't. we were just focusing on how small, how low powered can we make it, can we deliver the design to other -- lots of other companies so they can build other chips and then just see it pervade into all these other markets as they grow. >> you don't think -- so we have this kind of seminal moment where the pc industry is being passed by the mobile industry, but it's not going to go away, hear everyone talking about t. >> i bought at least five apple products that aren't five pcs since i bought my last pc. >> i acknowledge that if you go by office buildings, you're at the cutting edge though. come on, scott. office building like -- >> or a lot of apple products.

>> just like it's almost -- sometimes i hear about the pc is dead. it's -- it is on the wane but a long time before that goes. >> there's going to be uses for pcs for a long time to come. walking through the software here, there's a ton of pcs people are using but what we are finding is the smartphones, tablets, are providing a different form of utility to the pc. you don't have to use it, say at your desk, you can use it wherever you are and it seems to be the way people are preferring to access the internet. that's kind of a virtuous circle there. people creating new ways to access the internet and new things to do with it and also kind of self-feeding. >> there is a step beyond the mobile device known as the internet of things. we talked about that briefly, the dishwasher, the, the whatnot, have chips inside of them, allowing them to talk to other things and you are well positioned for that as well. >> yeah, when you look at the lineup of products that we have, we have, you know, very high performance processors going to

tablets and smartphones, are going into servers and enterprise network requirements, a big computer requirement and also have really small processor which are optimized around the kind of compute load that i sense are embedded in the parking spaces in san francisco, for example, needs, which is not very much. so, really what it's about is about optimizing the amount of compute performance you have for the task that you're actually trying to deal with and in the internet of things, you don't need very much. so optimize it for low power and you get the best result. >> speaking of low power, something i would like to see in the new gadgets is better battery life. you are making inroads and your partners are, but is there any major breakthroughs coming down the pike? >> have to make that the last question, simon, but by all means answer. >> sure. i mean, energy efficiency is a big deal, helped by manufacturing process and i

think there's just a constant challenge that we have as engineers of optimizing the processor, optimizing all the i.t. that sits around it, the consumption based on the battery why you have you've connected through it. >> simon searing the ceo of arm holdings. thanks for being with us. we wish you continued luck. up next, santa will probably notice fewer my cons in its bag this year, the death of the camera when "press here" continues.

welcome back to "press here." the cameramaker, cannon, says it expected to sell fewer cameras this year compared to last for the first time in history. people don't need cameras when they have iphones. don mccaskill has made his fortune through photography, though not as a photographer but

as the founder of the website, smudge mug, which allows both amateur and professional photographers to showcase their work. think to have as a very, very fancy flickr. he started the site with his dad. in fact, he actually talked his dad into it. thanks for being with us this morning. big data me here. you get to see what people are using and i realize a good majority of your high-paying customers are using cameras i couldn't possibly afford, made by my con and cannon and even fancier. but what are you seeing? have you seen the change in the average user? >> yeah, there have been big changes, the drop in price so you can buy kit at cost co-on the one hand and how awesome photograph city on phones on the other hand i think is squeezing a point and shoot and compact camera market so consumers are probably buying a lot less of them when they prefer to shoot -- >> the pocket cameras. on your grass, you're seeing pocket cameras. >> that's right.

>> makes total sense. >> this is the theme of the show, death to the pc. >> how about big changes? >> i don't like the word death. you take a photo and post it on facebook. that is okay. is the quality enough of an issue to create a big enough business for you or opportunity for you >> these are people's priceless memories. you know, the birth of a child or a wedding or a fabulous trip to rome or something and they want that stuff to be preserved and to look beautiful and all that sort of stuff and cameras today are just so much better, including the camera on your phone are so much better than they've ever been, so people are -- >> is there anything that the camera industry could do to reverse this or even slow down this decline, anything beyond dropping their prices significantly? i'm just -- or is it just too

late? >> that's good question. i'm not sure. i bet if you luke at why cameras so popular is the software on the phone is so smart. you can do the editing and sharing and everything, right as you take the photo or set of photos and yet you can't do that on most dflrs or mirrorless or compact cameras. i think there's room for innovation on the software side to make it easier to do interesting things with your photos, right when you take them on other cameras and maybe that could help shore up or research seams. i don't know. >> do you ever say smart phones catching up with slrs or a difference between the best phone and the best camera? >> i think there probably will be a convergence. right now, really hard to get around the fact that the dslr has a much bigger sensor, the more light it captures, the better the photo it takes.

>> a zoom lens. there are some interesting experiments going on, particularly with electronic manufacturers, samsung and sony, camera manufacturers, my con and cannon, where they're mounting zoom lenses on phones or they are just making the lens itself a full-blown camera no real camera, just the lens and you control it with your smartphone, so they are separate devices. you know, those are a little quirk gr right now, i think it's early days, but something there around, you know, let's continue to innovate, let's try new things, let's melt great hardware with great software and i think magic's gonna happen. >> you did decide to make your own iphone app, camera awesome, you named t was that because -- is that a victory or a defeat in the -- in the -- in the -- in the professional camera and photography field? >> you know, i think it's more of a sign of things to come. we built camera awesome and 20 million people use it and love it because i was frustrated with

the software that was available on the iphone, but i think there's a lot of extra -- >> i'm perfectly happy with the software on the i phone but also when you use camera awesome makes it a heck of a lot easier to use your service. i can upload my photographs to smug mug, if that's my destination. >> you can also upled to facebook and pick casa and google plus and everywhere else, too. we just wanted to make it really easy to do things with your photos immediately after taking them instead of them sort of sitting in a digital shoe box, right? so make it really easy to edit, really easy to share, wherever your family or social network lives, not just smug mug, although smug mug is built in with the other services. >> when do you photographs, are you involved with video at all or -- >> no we have a full 1080 high bit radio and camera awesome has video modes, too. >> do you weddings or something like that thinking about how the typical -- i don't know why i'm

thinking about this but the wedding was classic, you had the photographer set up, even things like cultural events like that might completely changed based on the side of camera, the video. >> we are seeing some of that already, where some weddings will put out little cards on the table or whatever with urls to a smug mug gallery. >> been a while since i've been to a wedding, but i think it has, just about everyone would have one photographer and -- >> crowd sourcing is ceremony, right? >> you are trying to do something, smug mug costs money the user. in an environment of u.n. tube and flickr, you are charging -- you're going to say it's better, that's fine. that's got to be a difficult business to be in though, because flickr's gotten a lot better. >> yeah, we sort of addressed the market need that nobody else does, a place to really securely

archive and store your photos and display them beautifully to whoever you want. very private. and of course -- >> right, right. and that alone that quality, entrepreneurial lesson here, right, the quality people will pay for quality and depend ability. >> absolutely. >> fair enough, we will leave it there don miss cass skill, thanks for being with us. normally not pay attention to a startup which got $200,000 on funding on sand hill road. after all, 200,000 is a rounding error, unless you're 14 years old, when "press here" continues.

welcome back to "press here." the create over the app snapchat was offered billions of dollars for the app, sure lay sign of froth thinkness in technology.

my next guest has been given $200,000 to fund his messaging app called back door. now a $200,000 check does not sound like much, not these days, unless you realize that daniel singer probably had to have his mom drive him to the bank to deposit this check. daniel will not get his driver's license for another two years. thank you for being with us this morning. you looked away. almost exactly two years. you should know this you just had your birthday. >> one year and ten months. >> i was going to say every kid knows exactly when he is going to get -- we have had young people on here before, brianna gaforafar i believe was 18. you will be the youngest guest we have ever had. what is a 14-year-old gonna do with $200,000, daniel? >> well, so i mean, one of the biggest things for a startup is product, product, product,

product, you have communication, which is this great new mark that's teens love and the big spotlight in tech are teen hes.s ar pecks is great and use it to improve the product and marketing activities. >> i get the impression this is not your first startup. >> you would be correct on that. this is the second venture. the first was an anonymous social network which led to give feedback to your friends, family and co-workers. and we have 3 million users as of a few months ago.

>> wehner hear snapchat saying no did that really surprise you, given probably how popular it is among people your age? >> they call it oh, it's fad. henry blocket, teens it is a fad, it is a facebook -- facebook has been an eight-year fad now, google a 12-year fad, i think, don't quote me on that. but >> it is interesting, i like you to meet my 13-year-old son, i can't get him to put his laundry away. maybe you can teach him more --

>> have his parents on is what we should have -- the interview we should do. >> some people helping you, your age or older folks as well? >> yes, i mean, i have my dad, of course, he is older than me. we have five employees now, so yes, they are all older than me. >> do they go to work and you go to school, right? a break in the middle of the day to go to history class. there's school and in between our schedules, there's free periods, it is a complicated schedule, i won't bore you to death. >> sure. >> but i have periods that i'll read e-mails, phone calls, whatever we are doing. it works out but it is tight. >> can you get credit for this or people think it's cool that you're doing this? >> think it's cool. everyone is supportive there's no formal credit. i love doing this, this is what i love doing in life.

>> the stk for i phone when you were how old? >> i stated a design program when i was 10. complicated out there. channels were big back then and i always didn't like listening to rules alexis o'happenian without their permission. >> a frequent guest on their show. sure. >> and i think that, you know, i can do this, too, six years older than me, what's the difference, so just started learning these different skills, i particularly like design and then i applied it back and that turned out really well. >> go ahead, joel. >> i wonder if people who influenced you, mentored you, if you saw "the social network"

have an impact own good or bad? >> "the social network," i have seen the move joy, think an accurate depiction of what happened. movies tend to deviate for artistic reasons. elon musk i look up to and jack eben. that crowd. >> somebody offered 3 million for snapchat, then -- >> millions. millions. millions for -- and it's always astounded me, i would be out $100 million. but do you ever, and just playing imagination sort of thing with me, i'm not committing you to anything, would you -- how much would it cost to buy what it is you're making? surely would you sell at $1 billion? >> i mean, i don't really know at this point. i mean -- >> you didn't say yes. and this is why i admire you. i would sell a billion, john a

billion. not sure about harry. >> we're gone. >> 50 million. >> you didn't say, well, of course. >> the thing is it's not really about the money. i mean, it's about changing the way people communicate and, you the telephone, something that nd most teens, i know, don't do anymore this don't do phone calls it is really sad. i like phone calls. but it is fading away. to be able to change that, now with tech, doug it really quickly. you knows, snapchat is very new and instagram and facebook. >> we haven't got time. i'm sorry. daniel, i appreciate you being here. i expect you're going to be here often and eventually someday, you're not going to answer my phone calls. or those guys' phone calls. remember we used to be able to talk to him? i wish you the absolute best of luck. daniel singer is back door on itunes. >> yes. >> app store. >> google play. >> soon on google play. we will be back in a minute.

that's our show for this week, my thanks to my guests, i'm scott mcgrew. thank you for making us part of your sunday morning. wlap bloch \s

i'm damian true he yoerks today, a local latina author, plus, shopping with the coshopp. we begin with the annual holiday festivities the heart of festivities, with me is the director over christmas in the park, annual tradition in downtown san jose. welcome to the show. >> thank you for having me. >> we have video from last year, again, it is a festival of lights, if you will. here's some of that now. you said you have better product