the a.r. kit will allow developers to build rich a.r. experiences far beyond what we've experienced in a.r. today. the demos that they showed today i think really caught people's attention. >> we're just having a pretty robust discussion here on the desk, gene, about apple's multiple valuation. karen was making the breakdown, karen, you're saying 80% of it, 80% of the multiple is hardware. and so, therefore, it may be a hardware multiple. >> the majority, overwhelming majority by a lot is hardware. which should get a cheaper multiple than services, leaving that service multiple, even with the cash, something that's extraordinarily high. >> how do you work through that, gene? >> reporter: well, their hardware piece, they gave up the 96% satisfaction. the work that we've done, there's about 93% revibrate on our iphone. in some ways, this idea of iphone as a service to the hardware almost becomes a service because this is a utility. i understand that it takes many years for the multiples on these stories to change. but as investors get more

a.r. is interesting.that was something where they are entering a landscape that hasn't been nailed down yet. as far as the home stuff, it sounds right now like it's pushing more into the music space, like sonos. i don't know how much much a threat it will be to something that's super open like alexa, because that is the question, how well will it tap into other things. it has air play 2 home pod but will it play all services, will it be open to all players and that's something amazon is really open to and google is opening up to as well. >> why is it a problem that all the digital assistants have female voices and are seemingly female? >> i'm so happy you asked about that. actually i thought one of the biggest pieces of news yesterday was that siri is getting a new voice. that will be the new voice on the home pod but also in ios 11. again, apple is the only or basically the only of the assistants or siri is the only of the assistants that have male and female voices. of course, it defaults to female but

i am incredibly excited about a.r. you saw the demos done today. think this is profound, and i think we today, as we get this developed and into the hands of developers, we are going to have the largest a.r. platform in the world. i think we have launched it in a large way to large numbers of people. i'm incredibly excited to see what developers will come up with in our a.r. kit. emily: more of our exclusive interview with tim cook coming up. if you like bloomberg news, check us out on the radio. you can listen to us on the bloomberg radio app ♪ emily: california is the home to tech giants that bring home millions in tax revenue and jobs to the state. we spoke with john mckenzie in beijing. game isompetitive getting more intense. america cannot rest on its laurels. time try toore reduce taxes on the rich instead of generating more investment in both the private and public sector. that is kind of where i think washington is going right now. emily: now back to our exclusive interview with apple ceo tim cook. we moved on to politics. the president urg

i am incredibly excited about a.r. you saw the demos done today. think this is profound, and i think we today, as we get this developer release out in the hands of the developers, we will have the largest augmented reality platform in the world. i think we have launched a.r. in a large way to large numbers of people. i'm incredibly excited to see what developers will come up with in our a.r. kit. emily: more of our exclusive interview with tim cook coming up. terrorsays apple finds threats while protecting consumer privacy. if you like bloomberg news, check us out on the radio. you can listen to us on the bloomberg radio app and in the americas on sirius xm. this is bloomberg. ♪ ♪ emily: california is the home to tech giants that bring home millions in tax revenue and jobs to the state. governor jerry brown spoke with john mckenzie in beijing. he said america cannot rest on its laurels as competitive pressure from china grows. >> the competitive game is getting more intense. america cannot rest on its laurels. we are going to spend more time trying

augmented reality is where you still see the real world which you can't in v.r., but you can in a.r., you know? you looking through -- you're looking through something like this. i can see you, but i can also see virtual objects. kind of like pokemon go but in a much more sophisticated way. and then everything to do with cars which has all got to do with a.r., a.i., v.r., all these things coming together in cars. my bloomberg bna, it starts lying to eastern also on c-span. recently on c-span, new orleans mayor on the removal of a robert e lee statute . >> to actually lay out the reasons why these statues were erected in the first place. why we were taking them down and what we could do to recover from the age old battles that had divided us for so long. and because of new orleans role in thatdark period of our history, we were after all one of the country's largest slave markets . i felt that i and other people in the city had a special responsibility to help our nation continue to move through racial discord. >> actress maresca heart attack at a bipartisan task force aimed at ending

a.r.ne today. i think this is profound. thesek as we get developer releases out in the hands of the developers, we will have the largest augmented reality platform in the world. a.r. inwe have launched a way to large numbers of people and i am incredibly excited to see what some of the developers are trying to come up with. >> you talked a lot about a.r. . but what about consumers? when will consumers see it? >> that is another thing i can't answer, but with a core platformy, and the armor, the first thing, arguably in some ways the most important, is to build the foundation and from that foundation you can do many things but first you have to have a really solid foundation. so i think the developers are really going to love what they find in the developer field on a.r. david: that was apple ceo tim cook speaking with emily chang. abheyre, we are joined by lamba. welcome back to the program. >> good to be here. david: were the headlines this high? how big was it? >> it was definitely one o

. >> any new platform called a.r.it allowing developers to use augmented reality, add items and have them build their own world. >> innovation was all around. this 10-year-old developer has invented five apps and showed them to apple's ceo tim cook. >> it was amazing. when i showed him my apps, he was really, like -- he was astonished. >> wwdc continues tomorrow with a special guest. michelle obama will have a fire side chat with developers. in san jose, janine dela vega, abc 7 news. >>> should lyft and uber be considered a public nuisance? what the city of san francisco wants to do to get the courts involved. >>> raindrops in june are coming our way. i'll have the accuweather forecast coming up. >>> next, why this is the season for flower thieves. >>> plus, an arrest made in the murder of a tourist in one of san francisco's safest neighborhoods. stay with us. [ birds chirping ] [ inhales, exhales ] [ announcer ] cigarettes are not just dangerous when they're smoked. [ rat squeaking ] they're dangerous long after. cig

a cool new platform is called a.r. kit.se augmented reality, add items and have them build their own world. innovation was all around. this 10-year-old developer has already invented five apps and shown them to apple ceo tim cook. >> it was amazing. and when i showed him my apps, he was astonished. >> reporter: wwdc continues tomorrow with a special guest, former first lady, michelle obama will have a fire side chat with developers. >>> apple also announced a new safety feature for ios 11. it will include a do not disturb while driving mode you can turn on. once on, the phone can tell if you're driving and automatically mute your messages and notifications. they'll autoreplay with a text that you can't reply. >>> mickey drexler, the ceo of j crew is stepping down amid rumors of bankruptcy. they shaped the image to its catalogue and brick and morder stores as well. but the company has hit the hard time with preppy look and high prices falling out of fashion. j. crew is carrying a massive $2 billion in debt. home of the home

. >> any new platform called a.r.it allowing developers to use augmented reality, add items and have them build their own world. >> innovation was all around. this 10-year-old developer has invented five apps and showed them to apple's ceo tim cook. >> it was amazing. when i showed him my apps, he was really, like -- he was astonished. >> wwdc continues tomorrow with a special guest. michelle obama will have a fire side chat with developers. in san jose, janine dela vega, abc 7 news. >>> should lyft and uber be considered a public nuisance? what the city of san francisco wants to do to get the courts involved. >>> raindrops in june are coming our way. i'll have the accuweather forecast coming up. >>> next, why this is the season for flower thieves. >>> plus, an arrest made in the murder of a tourist in one of san francisco's safest neighborhoods. stay with us. you don't let anything keep you sidelined. that's why you drink ensure. with 9 grams of protein and 26 vitamins and minerals. for the strength and energy to get

apple has yet to get on board with a.r. and v.r. in heavy ways that the competitors have.s in pediatrics. it's unlike anything you have ever seen before with education and physical hairpy -- >> neil: i'll take your word for it. all i want to do is just call and order a pizza. on that legal, i'm as basic as they get. do you get a sense this has to live up to enormous hype and it has to deliver the goods? >> enormous? yes. and there's some fear that my colleagues just wrote about this, apple is doing too much. steve jobs montra was less is best. create something amazing, don't overdo it. now apple has all the colors, all the products, all the different prototypes. there's fear too this year, if they introduce three phones, is that anniversary phone going to overshadow their other phones? are they going to hurt their own demand and cannibalize their other products? it's interesting how the company has grown and the philosophy has changed. >> neil: ladies, thank you all on this breaking news day. meantime, we want to pay attention at the nation's airports. we'll be welcoming t

it connects people to professional interior designers integrating a.r. technology.hat won over jessica alba, who was also on the show. there are more shows to come, including a documentary on sean combs in june, one on clive davis in the next few months and car poole karaoke debut ns augus in august. it could help differentiate them from rival services like spotify and give a boost to the services business where they jumped 18% to more than $7 billion. got a cracked iphone screen? apple has a solution. they will be bringing their custom horizon machine that can fix such damage to 400 locations by the end of this year. that's going to include third-party locations like best buy and independent service providers. before this, they had restricted the use of that machine to its own 495 stores. back to you. >> did you watch it, josh? variety says it is not terrible but a bland tepid knockoff of shark tank. that seems pretty harsh. >> that is pretty harsh. listen. at the end of the day, what apple's ceo, tim cook, is doing, i don't think they are targeting amazon and netf

but i think anything that all e alludes to a.r. is a big focus for investment.oftware applications that perhaps open up that possibility -- >> and that's the big expectation for the new phone, in terms of the hardware that will come in the fall. but you need the software piece, as well. do you think that they tip their hand today on that? >> well, we'll see. i think we'll be trying to read the tea leaves on that front. look, they're going to be quiet with respect to the phone and potential enhancements to that. but i think as you talk to developers and understand some of the underpinnings, through some of the new advancements, we'll try to get a better feel for that. >> right. any updates to their camera software will be an indication of how -- what a.r. might look like this fall if there is something. beyond the actual phone updates, there's supposed to be potential glasses or something that might sort of go along with it. that's a way to look at it. >> you tell me. i thought that this conference was for developers. >> it's for developers. it's a software updat

i know gene munster wants to see do we see any new a.r. features. and it's probably not just software. might also see some hardware updates, maybe updates to the laptop lineup, the mac represents about 10% of the company's total sales as well as reports maybe we see that new siri enabled smart speaker, apple taking on amazon and google. right now amazon controls about 70% of that market but apple would have advantages of its own, huge install base and, of course, a big retail footprint nearly 500 stores around the world. guys, back to you. >> josh, thank you. josh lipton in san jose. for more on what to expect let's bring in an apple analyst and managing director at btig and our own john forte joins us for the conversation. walter, i will kick it off with you. this is a stock that moves on the notion of an iphone 8 super cycle so in terms of what they could announce today, whether it be an ai chip that has been reported in the past or ar, what are you looking for? >> i mean, what you talked about, software that maybe gives you hints about hardware b