. >> have an apple phone, but i still use the google software because the maps are better. >> reporter: there are 3.5 billion searches every day but more to google than meets the eye. >> navigate to the golden gate bridge. >> reporter: if you have a smart phone, chances are you're using android. google's operating system. android will run on 80% of smart phones sold this year according to idc. been to youtube lately? google bought that company in 2006 and generates an estimated $5.6 billion in gross revenue per year and thanks to google, the days of paper maps and those gps units are long gone. so what is next for google? at the company's developer's conference in san francisco earlier this summer, google said it wants even using the operating system, whether at work, at home or in their cars. for "nightly business report", i'm josh lipton in mountain view, california. >> paul meeks has been a big believer of google and its stock. he's portfolio manager and head of technology research. paul, nice to have you on the program. i know you're a big believer in the stock. you say if someone

anyone with an apple phone, that will not be ready a couple of weeks. they don't have their full battery of resources but they have 20,000 fewer fans. we will have to wait and see. but i'm sure some changes will be made. >> thanks mark sayre. and plenty of people using the historic occasion to take a few stadium selfies. ej peterson tweeted this photo out before the game. laurie captured this one. cutest kids at levi stadium. go earthquakes. and these two celebrated their anniversary at the game. congratulations. >>> a southern california teenager is recovering tonight after he lit himself on fire on purpose. the dangerous dare spreading on social media. >> reporter: it is the newest internet craze. teenage boys applying hand sanitizer to their body and lighting themselves on fire. all the while video taping it and posting it online. they are usually in the shower where there is quick access to water. it is called the fire challenge. >> they challenge each other to light different parts of their bodies on fire. >> reporter: on thursday here in the 900 b

apple competes. the general smart phone industry is about a $335 asp. over one billion units. apple pays at a category of more than twice of that. >> brian marshall and corey johnson. i do not expect much change to the overall asp's on the high-end market where apple competes. the general smart phone industry is about a $335 asp. over one billion units. apple pays at a category of more than twice of that. >> brian marshall and corey johnson. apple is also taking steps to control of more of the user experience launching its own content delivery network. how much of a game changer if it? that story is next. ♪ >> welcome back to the best of "bloomberg west." apple takes a major step of controlling every piece of the user experience and is reportedly spending tens of millions of dollars to build its own network, its own internet backbone. a report said a small percentage has gone live in the u.s. and europe. apple has reportedly struck deals with large providers to deliver content on ios. this means the content can be delivered at faster speeds and without relying on technology fro

apple. >> phones are sold without subsidies. we are accustomed to a long-term contract. o for a retail price of about $230 or so. much more affordable. that is still a lot of money in india. >> india, the next mobile frontier. cory johnson, editor at large. thank you for watching this edition of "bloomberg west." you can get the latest headlines all the time on your phone, tablet, bloomberg.com, and bloomberg radio. see you later. ♪ . >> our best offer ever. $95 in free gifts.

apple wants the strongest, most scratch-proof glass for aye phones so it is looking at one of the most durable materials on the planet for inspiration. sapphires. apple has invested $7 million to produce its own synthetic sapphire screens in collaboration with g.t. advanced technologies and we may see this saphire glass used to the large screens of the two new iphones releasing in september -- unveiled at least. the vice president ryan black joins me in the studio with more. this is not like the jewel crushed up. >> that's right. >> synthetically produced sapphire. will it really be that much better than gorilla glass? >> i think it has the potential to be. one of the strongest materials out there. this would be kind of classic apple move to use a different material that really only they have access to and this level of quantity to differentiate their products from everybody else. >> i guess i said 7 million but it's 700 million they're investing in this collaboration. gorilla glass actually came about on a mass scale because steve jobs wanted it in the iphone. >> that's right. >> now

they have like a barometer on their phone and the waterproof stuff. do you expect apple respond and throw in chips and new possibilities >> think about it, the cell phone market is a two billion market and smart phones now are over 50%, over a billion units. this is largely a mature market. think about pc's other than the form factor, has much really changed? not that much. >> right. >> we tried in netbook thing and it didn't work. the form factor of the p.c. is not evolving and we feel smart phones have reached a similar point of maturation. >> apple executives say it's the most exciting product line he has seen in 25 years from apple. tim cook agrees. what else could there be? will an iwatch come out this fall? is there something more? is it just the new phones? >> the commentary from the senior management team, obviously, is trying to rally not only the troops internally but also the public as well. >> yeah. >> so you don't believe him? >> how could a big iphone be more exciting than the original? >> and nothing is going to move the needle from apple perspective with

apple. they can get this right. >> is the phone with a bigger screen enough? >> i don't think it matters. new is what matters now. i think apple has several things that went into the most current phone, the 5s, that are tremendously innovative one of which is the fingerprint security and another is air drop, the local sharing of files. those things were only on one product and now air drop is on a bunch of products but as things spread around, they become much more valuable. i think this generation will take that forward. we are no longer in the early days of cell phones. it is really hard to get people excited about a cell phone today. from apple's point of view, put out new products, ideally they will be great and even if they are only ok, they will still be good enough because the stock is trading for less than the s&p 500. >> you are saying they could be better? >> how about just getting icloud to work equally well? >> i think we have all had those headaches. >> if i were in charge of the company, i would recognize that they have two operating systems today -- macintosh and ios. icloud

my apple phone. i love it. it's my favorite thing.terms of the stock, stevie's talked about this. pete's in the stay the course mode and that's the right course to be. if you look at it now, here we are bouncing up at that level. we topped out at 2012. the fact that we're remaining leads me to believe we're about to take the next wave higher. if you haven't been in this name yet, why don't you wait for a clear, decisive breakout. that breakout comes at a close of 101. you could say so what, it's here already, which is fine. you can play a tactical level and say i'm waiting for a close of 101. >> last week they were into the september 12 expiring calls. why are they buying that particular month and strike? the reason they're looking at that 97 101, they bought it 10,000 times last week. folks are looking at exactly what guy is talking about. they think it will go up to 101. they don't see much more up side. they're willing to take the risk to finance that buy. there's a bullish tone. 600,000 calls against 200,000 puts. the bulls contin

they are apple. >> is a phone with a bigger screen enough? >> i don't think it matters. hat matters right now. apple has several things that went into the most recent current phone that are really tremendously innovative. one is the fingerprint security. another is airdrop, the local sharing of files. those things were only on one that as things spread around, they become much, much more valuable. this generation will take that forward, but we are no longer in the early days of cell phones. it's really hard to get people excited about cell phone today. and ideallyproducts they will be great even if they are only ok, they are still going to be good enough because the stock is trading for significantly less. could beu saying they a lot better when it comes to potentially connecting my home and my life? icloudabout just getting to work equally well? >> i think we've all had headaches. charge, i would recognize they have two operating systems, macintosh and ios. icloud is a third operating system and if they were to treat it as an equal partner rather than subordinating it to

. >> apple did not seem to get it right the last time. when the phone under performed for them. what does apple do? we do not talk about how well they have manage the supply chain. what does it mean? they are tried to launch this in a bigger way. huge point. up a there are 300 million iphone estimate 100h we million are not eligible to upgrade. there are 200 million and in the install base ready to migrate to the larger phone. typically, what we have seen with launches recently, it launches and peaks and comes down. 60think this is going to be million, 70 million units. multi-quarter refresh cycle. we think it will draw expansion. >> what about other new features? what else can they do besides screen size to move the needle? we have heard about battery innovation. i just read about wi-fi charging wirelessly essentially. what about this kind of technology? >> of my off-line -- my iphone five is less than 50% charge for the day. we have a long way to go. first will be larger screen and second better battery performance. >> it will be physically bigger battery and more power. >> thi

do you have an an tried or apple phone right now? >> i do. >> they know when you're home and away.default what your home and work is. >> what type of security companies are being funded right now? what trends are you seeing and what grass-roots support is there so far? >> one of the latest things is robotics. a year ago we had a first-ever personalized drone. it's a robotic dragonfly. imagine having your own drone while you're getting coffee, you want to check if your dog is still outside. >> don't say the word "drone" around this one. he'll get in a tizzy. >> the big risk is not even the security. it's when they become self-aware. that's when we'll have the real problem. >> terminator comes to life. >> you've got a new app for indygo, go. >> last year you featured another robot from the jetsons. it was featured right away as soon as we launch in the apple itunes store. it really helps mobilize the experience. also taking away clicks. it takes advantage of all the mobile features. technology is moving so fast that you can't just say you have a good website. you really need to optim

before you get too excited believe me i was apple says a very small percentage of iphone 5's need this extra charge. to find out if your phoneas been recalled first check your purchase date september 2012 and last january and then check your serial number on apple's web site. >> disney getting into the drone business. it filed three patents to hold projection screens and fly light. that would make for a great and safe fireworks show. the third patent is to move puppets. talk about tomorrow land. today a starbucks pumpkin spiced lattes are back. kind of. what you have to do to get a psl and it's called psl early check out starbucks on social media, grab a passport clue they are giving away and whisper it to your barrista to get it right now. the national rollout september 2nd. you wacht to know it's more than roast beef. chicken, turkey, ham, steak and bacon all piled up on this sandwich that is called the meat mountain it is $10 but it's not on arby's menu. you have to tell your server in a secret request that you want this meat melt down. i don't know how you go about eating that. let's start with stocks on wall street. the

there will be two phones, two sizes, and there's the huge penalty-up demand for these larger phones among applearger phone. i have this smaller iphone 5. and i think everybody wants one. i'm willing to wait for one. i think a lot of consumers are like me, they have samsung phone envy and if they provide a phone wait an extra month. you've been waiting this long. >> to hear kara say a small iphone 5 which, remember, that is a five inch, right -- >> no, four. >> and 3.5 inches is what we used to have before. we keep getting larger phones. they seem larger and then it seems like the right size. >> investors seem to be sharing the sentiment investors will buy anything apple puts out. that stock hitting a new all-time high earlier in today's trade despite the broader market being down. certainly seems to be discounting any questions over the supply there. another stock big on the rally train today is sales force. that stock is the leader on the s&p 500 right now. earnings and revenue beat analyst estimates. it's up better than 7% after also raising full year earnings forecast. the ceo was on "mad mo

. >> apple didn't seem to get it right last time. their low-end phones underperformed for them. lk about how apple manages its supply chain. what does this mean when they do not know how this will take off and they are trying to launch this? they are taking a greater risk than ever. >> you bring up a good, huge point. of their base, about 100 million are not eligible to upgrade. that means there are 200 million within the existing phone base that is ready to migrate to the larger canvas. what we have seen is that it peaks and then comes down. now, we think that this is going to be 60 million units, 70 million units, 80 million units for quite some time. it will be quite a refresh cycle. >> what about the other new features? what else can apple do besides the screen size? there has been a lot of talk about extending battery life. not much battery innovation in the past several decades. i was reading in the "new york times" about wi-fi charging, wirelessly essentially. what about this may come out? my iphone 5 last less than a day sometimes. >> me, too. >> number one, i think that

is this what apple's new phones really look like? well, some are skeptical. se photos actually just show knockoffs designed to look like iphones. we will soon find out. re/code reports that apple will host a big media event on september 9th. back to you. >> josh, thank you. for more on the leaked photos, whether true or not, what can we actually expect from the iphone 6, let's bring in ben parr. first of all, do you think the photos are legit? >> i personally don't. i will give you two reasons why. there are multiple ones. one is like others have done, they did an analysis of the actual os on it and there are some mistakes that it seems like the pretenders made. for example, naming the app e-mail instead of mail, because apple never calls their mailing app e-mail. another one being just that the calendar app's fonts are off because the calendar app is different from the other apps because it changes dynamically day to day. the other thing, the hardware, the glass doesn't go all the way to the edge which is something that apple always does. it's a really good k

. >>> apple is offering to replace it for iphone 5 and the phones are defective, apple said that could mean a shorter battery life and all of the if he canned phones -- all of the affected phones for january of last year, apple users have the effected serial numbers. >>> and just minutes ago, on prices for homes, it shows prices were up 1% in june and that's the th month in a row, but for the first time since early 2008, growth slowed in all 20 states. vallejo, we have a lot of affects which definitely felt like the after shock in vallejo. >> time 6 1, the plane was diverted and the prohibited items which led to police being called. >>> but first celebrating television and the touching tribute to robin williams. . >>> welcome back to the ktvu channel 2 morning news. yet another after shock in the napa area, this latest 2.8 and it hit just a short time ago, the largest of this morning's after shocks at 2. 9, that was at 533 and it is the strongest earthquake. many say the shaking woke them up and alex savage was in the area where people felt the shaking and really on edge is what he twe

the growth in android phones came at the expense of blackberry, apple, and microsoft's window phone accounting for 249 million shipped in the quarter. with numbers like that, every app will soon be made available for android as well as the apple. >> a bill working its way to the california legislature would add more baby changing tables to men's rooms. now, there is no law requiring businesses to install changing tables. this measure doesn't demand it either. it simly says that if a table is being installed or upgraded in a woman's rest room, the facility must add one to the men's room as well. >> the modern family continues to evolve. you have things like households. you have single parents and dad who want sz to s to be involved raising of the children. i think this makes sense. >> estimating the changing tables will cost between 60 and $3 $300. let's head outside now. talk to spencer christian about the weather. >> yeah. well there's a lot it talk about weather wise. let's go back to doppler 7 hd. we have gathering thickening at the coast and quite a few clouds over the land areas throughou

we're going to get an apple phone. addition to the data sara mentions. i mean, are you feeling good about the month, at least? the month to come? >> i think more nervous about october. you know, if you look at the s&p going back to, let's say, may. last year. we thought about seven -- had seven, eight dips into the 100 day moving average. looking for another one in october. >> sorry to disrupt. also an argument saying none of the central bankers will want to rock the boat until the stress tests on the european banksened recapitalizations out of the way. taking you into october-november anyway. that's when they'll rattled cages. >> makes a ton of sense. having said all of that, if you look on a eck technical level, on charts, back year looking for another test, we still gained for 2100 in the s&p cash year-end. impossible to thread the needle waiting for the sell-offs. stay in the market unless you feel it's a much bigger entity of a sell-off. >> look at the crazy action in bonds. stronger u.s. dollar. what is your litm

apple. they can get this right. >> is a phone with a bigger screen enough? new is what matters right now. i think apple has a several things that went into the most current phone that are timidly -- are tremendously innovative. one is the fingerprint security. another is airdrop. local sharing of files. as those things spread around, they become much more viable. i think this generation will take that forward. we are no longer in the early days of cell phones. it is really hard to get people excited about a cell phone today. i think from their point of view, put out products and they will be great. even if they are only ok, they're still going to be good enough because the stock. >> are you saying they could be a lot better? when it comes to connecting my home, my life? >> how about just getting icloud to work equally well. >> i think we have all had headaches with it. >> i would recognize that they have two operating systems. mac and ios. icloud is a third operating system. if they would treat it like an equal partner rather than subordinated to the other t

accounted for 85 percent of global smartphone shipments in the second quarter quarter billion phones. apple is closer to receiving $450 million settlement for the customers with approval for the pay intermediate to my forward after conspiring to raise e-book prices. h.p. is teaming up with a designtory create a luxury smart watch that will feature traditional rounded face and choice of wrist straps and is come patible with apple and detroit dough voices -- >> more weather and traffic all morning and a brand new way to keep you updated. >> this is the news now, with both and traffic throughout the entire commercial break so you entire commercial break so you do not miss a >>> the sons leaning toward a ban on passengers making calls on airline flights. the major concern is calls being a distraction for others not a technical problem. rules allow passengers to use their mobile phones at the a rule could emerge by next year. >> leyla gulen? >> if you are headed out to a bart station near you, these are temperatures you can expect. 60 degrees in concord. 60 degrees in pittsburg. walnut creek is

phone. she got an iphone because it was more comfortable and she could fit it where she wanted it to be. i expect apple to go bigger, but i don't think we will see anything over five inches. just because i think you get into more of a niche market. and really you've seen the 4.5 inch, 4.7 inch phones have large uptake across many markets. that's a better sweet spot. it lets people see video on their phone. people have been clamoring for bigger screens to do media and that stuff. i think that is probably where we will end up. >> what do you think? >> we'll certainly see the 4.7. the 5.5 is interesting. again, remember, apple needs to grow in other markets, notably china. in china, the 4.7 is actually not so big. it is kind of on the smaller side. they like five plus. part of apple's idea is, let's build products we can sell around the world. yes, maybe they're a smaller piece of the market in the u.s. but they might be significantly larger in other parts of asia where they want to grow. >> we will see if samsung sneaks in anymore announcements. michael gorman, thank you. thank you both. what role is soc

apple has a protected and unique ecosystem. it's difficult to switch from a samsung to an ios phone. so apple i think ultimately will have a positioning in the marketplace where yes it will have lower share like the mac has 6% unit share today. i think the iphone will be a premium product. it's difficult. you have to repurchase them, et cetera. so i do think the difference in ecosystem is really important. apple as the iose and those switching barriers were low. >> they were grouped together, if you look at the market share change, that was not different. does that factor in the new iphone and what do you think about total dollars, not just market share? >> i think part of it is that apple will have this protected high end whereas samsung gets about half of its sales from low to medium size phones and low to medium price phones, therefore they have to slug it out a lot more. the high end smartphone market is largely a replacement. people have been waiting for this phone. there is a lot of anticipation. >> the prices will be the same for, you know, a similar size screen but for the lar

on their calendar if that's you according to the news blog you september 9 is the date of apple next big i-phoneaunch. it has been widely speculated apple announce touch screen on the phone that display 4.7 inches and 5.5 respond to go some sun which has had with bigger display on the gallon see and note series. >> well it was once the stuff of fighter jet now in some end cars and son maybe your car even if it's an old beat up junker. he just unveiled today that just about any vehicle. >> altitude. so do cast look display information seem to float in tonight mayor as you came us on what its there whip your field of view. don't think about it don't look down. >>reporter: he wanted that apology without big nar cary called it. you. >> high project to have quality that un on the screen projected like it's 2 meet work was the night phone. >> fwlm were you reply. >> share my location. brewing plug into theen port to show data like speed and god it navigates. >> turn left. >>reporter: heat up disflorida into stop pardon me we have doing that it you can play bright and give the device a number up to con

when i was saying these giant phone was a huge thing everybody thought i was crazy. apple giant phone, 5.5 inch, samsung note, 5.7 inch. it's how big can it get? we're going to need bigger pants. i want to buy levi stock. >> what about between apple and s samsung and international markets? can they bleed stateside? >> when companies get into patent disputes, s they toned settle. not got for the companies and partners in some respect. remember, samsung makes some chips apple uses, blows my mind they can be so antagonistic and also partners this is what they want. >> reach for the lawyers just like the bankers are getting bad news of the deals not going through. it's the international lawyers who suffer when these battles end up going down the drain. carl? >> they garve them the aed vice to drop it. they built a few hours along to that decision. >> figuring out way to get paid. i'm no expert in that stuff. >> what about the markets? >> used to be companies would get absolutely sunk by these losses. these are the things that put palm down the drain. these are the sort of thin

phone subsidies this year. this could raise prices of apple and samsung phones.a cola has agreed to buy 70% stake in monster beverage for just over $2 billion. the move is the sign of coke increasing its bet on the energy drink market. chiquita said it will continue with the plan to purchase an irish competitor. the deal would create the largest banana company in the world and cut chiquita's tax bill by relocating its headquarters to ireland. the battle for vivendi's brazilian assets is heating up. a is getting ready to offer. will it trump telefonica's bid? look, we will, give you a tie up with our own brazilian unit and also offer you some key content outreach into italy. this is what could would away from telefonica. saying, let's get into bed together. we will team up with your unit in brazil? why is it so alluring? brazil is such a growth market, particularly in the internet. a week ago, telefonica came up with its own deal that rivaled the spanish rival -- it owns a chucnnk of telecom italia. sneaky, telefonica. because telefonica already knew that telecom

you can watch estimate on your phone, your tablet, bloomberg.com, apple tv, and amazon fire tv. ♪ >>'m emily chang, and this is bloomberg west. back to our top story, ali baba, tencent, and the china e-commerce market. one of the issues going public is ali baba's affiliate, all he ay, which technically has a different owner. is this good or bad for ali baba investors? leslie picker covers ipos. y haselationship with ali[a been a little bit, gated -- the hasionship with alipay been a little complicated. what exactly does this new deal means? >> back in 2011, the purpose of spinning this off was because the chinese government restricts foreign investment in payment services. it was a spun it off, bit controversial, because of the way they left some major shareholders, such as yahoo!, out of the conversation. it was spun off, and what yesterday's restructuring agreement does is, it essentially says, if it were to do its own initial public offering, that ali baba would have an unlimited ability to get a windfall from that. --ore, they were cap did they were captured about $6 billion. --

adam: market share in united states 6, on a global perspective futures morning apple's smart phone, the their smart phones take the stagnation of sales going forward with competition in emerging markets, expecting 450 to 460 million of these devices sold next year but expects the apple's share and samsung could be cut going forward because of competition from cheaper product in places like china. stuart: see world, we should use the stock before the break, a third of its value, you're going to tell me why. liz: we broke this story earlier this year that this was coming. see world in a world of earnings problems. ticket sales have been flat and the this was in place before the film last -- blackfish came out last year showing the marquee attraction kills endangers people. the problem is blackstone took see world public, dropped a lot of debt on the balance sheet, the cash flow may not be sufficient to service the boat load of debt, an end -- musical acts continue to cancel performances at see world. ito you, market cap right now equals the size of the desk on the balance sheet, wall stre

at home we are all apple, but at work, i've got a samsung device. at first i had to adjust to the bigger phoneke it. are apple customers going to want the bigger phone, or is it going to backfire on them? >> indications are they are going to want it. we typically do surveys about a thousand people four times a year in the u.s., and about a third of them say that's what they've jumped from, ios to android, for the bigger phone. think of it as a third of the market essentially they're missing right now, so i think there is going to be some good demand. the carriers have a good insight, and they're telling apple based on our research that this is going to be, basically, a blockbuster upgrade. so i think the simple answer is everybody has a different opinion about the screen size, but it's about a third of the market that they're going to really ramp into that they haven't been able to get before. adam: okay. so there are a lot of participants watching right now like -- parents watching right now, but let's talk about this from an investor standpoint. apple's losing market share globally in the sm

coming up, apple gears up to announce big screen iphones on september 9, but are these phones apple'sext blockbuster roduct? we'll discuss next. "bloombergback to west." i'm emily chang. apple he will -- the mystery of when apple will unveil its large screen iphones appears to be fall. analysts are predicting that apple will sell a record number of handsets during this launch due to consumer demand for larger screens. not one but two new iphones with even bigger screens. this one is 4 inches, right? >> moving up two levels, i feel. over has lost market share the years to companies like samsung and others who have introduced bigger devices. there is an appetite for these, so they are going to take advantage of that. >> do we think they will keep the original screen size? >> that's a good question. i imagine they will have some models that do have that size. the question is whether it will be something entirely new or them keeping the older models. for thedoes it mean ipad, given that ipad sales are already slowing down the? >> ipad sales have been slowing down over the past several qua

this would mean apple is unveiling two new phones and a watch. >> we will see.opefully they are correct. we know they have been working on this watch for some time. over 100 employees at headquarters working on the watch design. but we also know that if it is not right, they will not launch it. one reason they are so secret is that they will frequently pullback products right before lunch if they are not quite right. this might be a small market, but because the company is so big. >> back in south korea, the head of samsung is still in the hospital. the heir apparent, we presume he is ready. but we did a big profile on jae lee, who is set to succeed his father. is he ready, and what kind of turmoil is going on at headquarters with this succession crisis? >> clearly, this is a big time for samsung, with the head being in the hospital and having to do this transition under the circumstances. the way samsung is structured, right now jae lee is the only person in position to succeed. in terms of is he ready, this is something we will see in time. he is going to take

apple was unwilling to give up every product spec. >> not surprising. >> and maybe saw cited as a surprise. i makings like xiaom phoneschina and may be scared the secrets could be shared. >> it means apple products cannot be bought with chinese government money? how much will it hurt? how much of the government buys the chat -- apple products? >> it is about the same with the u.s. in terms of gdp. we do not know. we know how important china is to apple. into china, a significant part of apple's overall picture. we see it growing dramatically over the time. .nd it has been a profit center apple is a company that makes a lot of money and a lot of the money is made in china. $5 billion last year. much of the market is not the government about consumers. >> cory johnson, our editor in large, and thank you. the u.s. military has just conducted airstrikes in iraq. some of the advanced technology that the military isn't using. you can watch us streaming on your tablet, phone, bloomberg.com and apple tv. ♪ >> time for on the market. where stocks ended the day. march.ggest one-day gain since turning around the march. losses we

phone. it is kind of what we would expect. it just shows how often samsung really does -- i hate to say it -- slavishly copy apple. look of theat the general phone, it's very much like what we have seen apple do. -- tol be interesting it see if apple will do a bit of a twist where it might be a bit more curved. samsung will be a step behind. to beplastic on the back, clear. it is metal on the edges and plastic in the back. it will still look and feel very nice. it is a big challenge trying to compete these days, because these phones are big -- are getting to be so similar. read, is news that i it a flagship phone? it has some flagship specs. the cameras not as good as the galaxy s5, for example. but i still think they -- >> i still think the flagship phone is the galaxy s5. the screen is not as big. i assume that was made for battery purposes. it is using less power because of the thinner chassis that they have put in the phone, and they've had to put in a smaller battery. that is a concern. from a hardware perspective, it looks like a hot -- like a flagship. it fits in a bit better with what we have seen from lg a

what you may see in a couple of months if apple comes out with a larger screen phone, and the way iowate allows you to customize the iphone, you may see apple taking a larger share of the high-end market away from samsung. >> samsung is also coming out with a couple of higher-and devices later this year, over the next six months as well. that has been a strategy, but is it the right strategy? you have been doing so much work on market share and crunching the numbers. how are they looking? >> the pressure from the ones below it is really starting to take effect. they have got to continue to focus on maintaining a position at the high-end. the market share will be driven by the low end. they have to focus their strategies in these two areas. their marketing investment, which has taken them to the top over the last couple of years, has been focused at the flagship. the reality is that they have got to change up that flagship strategy that has somewhat gone stale now for two or three years. >> benedict, is it you who said that samsung is dominant but paranoid? >> the cloned nokia. people t

apple was unwilling to give up every last product to the government. xaomive companies like and others making lenovo, making giant phones china. >> this means that apple products cannot be bought with public chinese government money. >> right. >> how much is this going to hurt apple? how much does the chinese government by apple products anyway? >> in terms of government spending, it is about the same as the u.s. in terms of percentage of gdp. we do know how important china is to apple. le comingales of app into china in the past two years has become a significant part of apple's overall revenue picture. we have seen a growing dramatically over time. there has been a really important profit center for apple. a lot of that money is made in china. it is a huge market for apple. much of that market is not the government, it is the consumers. >> thank you, something we will continue to watch. the u.s. military has just conducted airstrikes and iraq. up next, some of the advanced technology the military is using . you can also watch us streaming on your phone, tablet, bloomberg.com, and apple tv. ♪ >> it is 26 minutes past t

people buy using starbucks i.d., all kinds of things on ap the phones. applesers you are used to buying. a natural sense. they've got to strike deals with all kind of retailers. that will be interesting. retail and payment it's people. the group of people signed up will be interesting. >> apple has the customers everybody wants. the cream of the crop. they're the people actually buying things on digital, not just looking at ads. this customer base, it's who nordstrom wants, the same buying at starbucks. the higher-end consumer. it has potential. >> by the way, highest close of the year for apple, yesterday record high on apple today as well. >>> next up, google following amazon's lead becoming the latest company to test delivery drones. the company apparently tested drones in australia earlier this month carrying supplies like candy bars, dog treats, radios and water to some farmers. google calling it project wing and apparently started working on the drones back in 2011. they are warning not to expect this stateside for several years, kara. a lot of regulatio

apple getting in there. pop them in your ear. works with run keeper on the phone.e don't know price or availability. >> price point is key. melissa: jonathan, with those in your ears right now. i could picture you doing this. >> innovating certainly in the ear phone market. i don't know if 50-cent. melissa: fitty, my friend. >> fitty cent, compete with what dr. dre was able to do with beats. that was $3 billion acquisition. i don't think fitty can repeat, well-done. airbnb users better watch out. there is new sight, hunt bnb, tracks airbnb rentals to be shut down. this is pretty clever. set up for people who rented their apartment someone else and rerenting it on airbnb and they're mad about it. everybody is after these guys. scott, what do you think? >> this great. technology gets better and better. capitalizing on what airbnb example is all about. look, you will find a lot of people jumping on for the very reason you noted. there will be probably be more technology. look what is coming out of the uber deal with lyft. there is disruptive technology that people use

apple's biggest release ever. there is a pent-up demand. that could potentially reach into samsung's market share. unique is in the situation that they are trying to be the phone company for all people. they have the high-end with the galaxy line, and the lower end popular. been apple continues to be popular at the high-end. and the upstarts are challenging at the low end. they are in a low -- they are challenging themselves. 9.september we will be there. >> the fishermen of deadliest catch risk their lives to catch crab. we will ask one of the stars of the show about tonight's big season finale. >> i am emily chang, and this is "bloomberg west." for war on minute -- four more on what makes the show so popular, the captain himself is here. via skype from dallas. for joining us. congrats on the finale tonight. i hear it is going to be an epic finale. give us some hints. what will we see? >> the season was difficult for all of us. we had some severe weather and it ended with a bang up. >> if you are going on a roller coaster ride, that is what tonight's show will be about. last, hit with an arctic a hurricane, and had some serious issues on a number of boats. on

they must fall within a certain range of serial numbers and can go to apple's website to find out if your phoneypically, prices for the old iphone would drop 20% more warm-up before and after apple would introduce their new found throughout the earth starting to lock in an customers for the new phone this way he will now have to worry about being without a smart phone while waiting for the new one. welcome home! woah, this kitchen is beautiful! give him the tour. let me show you! soft-close drawers, farm sink! where's my room? we had to take just a little bit for the kitchen. ranked highest in customer satisfaction. ikea kitchens. welcome home! give him the tour. woah, this kitchen is beautiful! let me show you! soft-close drawers, farm sink! where's my room? we had to take just a little bit for the kitchen. ranked highest in customer satisfaction. ikea kitchens. >>> the "insider" with perspective on today's top trending stories. >> the "insider" hits the emmys with a -- bang. ♪ >> all the red carpet pda and backstage makeout. >> i got dressed with my husband. know what i'm saying? >> oh. sofia