chinese telecoms giant huawei aims to have five g. capable devices on the market by next year but the next leap in network technology is still in its infancy south china sea shenzhen city has been testing its first batch of five g. by stations delivering download speeds between one and three gigabytes per second. we aim to have small scale networks in some regions by twenty nineteen and available for commercial use by twenty twenty. germany is huawei second most important market and they plan to invest heavily opening as many as ten new shops in germany in the next twelve months they also i'm to have the new luxury model on rechelle shelves before christmas other than that growth might be slower than expected huawei has recently been caught up in the u.s. trade war over intellectual property concerns and the australian government has excluded the company from its planned five g. network on national security grounds german captains of industry would like to see more stringent security requirements and potential restrictions for compani

chinese telecoms join huawei aims to have five g. capable devices on the market by next year but the next leap in network technology is still in its infancy south china sea shenzhen city has been testing its first batch of five g. by stations delivering download speeds between one and three gigabytes per second. we aim to have small scale networks in some regions by twenty nineteen and available for commercial use by twenty twenty. germany is huawei second most important market and they plan to invest heavily opening as many as ten new shops in germany in the next twelve months they also aimed to have the new luxury model on rechelle shelves before christmas of of that growth might be slower than expected while way has recently been caught up in the u.s. trade war over intellectual property concerns and the australian government has excluded the company from its planned five g. network on national security grounds german captains of industry would like to see more stringent security requirements and potential restrictions for compani

that region >> one big thing apple is doing for china is recognizing they don't want to compete with huaweio, these brands that are putting out excellent devices at 300, 400, 500 dollars. zaire s they're saying we'll rely on our brand strength, apple is a big brand in china with a huge brand premium, and we won't cheapen ourselves to reach more people, but we'll rely on that brand strength, build on that and build profitability. >> we focussed a lot on the price, the oled screens, one interesting feature that has been introduced is the dual simand the e-sim, electronic sim. does this mean they will start their own carrier business as you look at e-simas a new business model for apple, what kind of opportunities does it hole >> e-simhas opportunities for apple. out of any company in the world, any handset manufacturer, apple has the best opportunity to do something with e-sim because its devices are so expensive, it's hugely reliant on carriers, stores and operators to provide financing for many handsets. very few handsets are budget for full price on day one. with the two-year contract spre

huawei also.hat apple is hoping to do is convert those people who didn't get their hands on an iphone x and are looking to upgrade from an iphone 8 or an iphone 7 one gentleman said he bought the iphone 8 last year, but didn't want to wait for the iphone x because of the delays. now he's ready to buy the iphone x s. and the price, would you pay $1,099 for a phone they say we're happy to pay the price. we're not spending that money on tablets and laptops, because everything you can do on those devices we're now doing on the smartphone apple pioneered the mega high-price inphone last year with the 999 iphone x. there were concerns that the iphone x would put a lot of consumers off but apple has proven time and time again that its user base is loyal, customers will continually upgrade to whatever the latest device is and they continued that strategy here there's a lot of excitement around these devices what's interesting to see is what this does to the average selling price. many wall street analysts

why wouldn't they want an experience that was as good as huawei can have?u look at a subjective perspective, you might say apple wants the best profits it can get, and clearly because qualcomm is expensive because you have to pay licensing, why wouldn't they try to do it themselves and maximize their own profits? so, there is a competing technology versus business argument going on here. it depends on whether the qualcomm technology can be push that pushed far enough to force -- can be pushed far enough to force apple to go with it, if the consequences of not using qualcomm are so great that it cannot afford not to do that. i need to be an engineer or civics major to tell you if that would happen. emily: qualcomm has been involved in licensing disputes before and not just with apple. is that the case that two parties come back to the table and end up working together and the relationship is just as fruitful? >> that tends to be these -- the case it's always darkest before . the dawn. both qualcomm and apple have been in similar disputes as well, with nokia

the samsung galaxy s9 plus has a larger screen but can cost as much as $859 and the huawei is close tothis comes amid looming trade tensions between the united states and china last week president trump said apple should move production back to the u.s. to lower prices analysts are divided over the potential impact of tariffs on apple. bank of america says a 25% levee could demand destructive measures for apple neil campling kindly joins us this morning in london do you think that idea that this increase in prices after tariffs would kill demand? is there a price point beyond which apple dare not tread >> not for apple itself. i think apple is able to pass on the cost of the devices through its supply chain you're already seeing that pressure play out at the moment through its supply chain companies in asia and europe but the demand dynamic is a question which i think already we're seeing, if you look at the volume for the overall smartphone market, data shows it's down 2.5% year-on-year in the last quarter for the global industry apple is the premium price vener as vendor there is not

>> only thing change something the rise of the chinese manufacturers in huawei and and huawei looks likethey have gone ahead of apple in overall market share worldwide. the question is, if they are going to battle them and samsung at same time as well as all others coming forth. neil: some of the another announcements we're told of maybe a new ipad offering be revamped watch that might be not physically larger but the screen itself will be larger, might offer heart tracker, hard-based tracker, will that change the dynamics any? >> i don't know, we'll have to see, apple watch when they added cellular capabilities in the last version, that was supposed to be at big game-changer got this to be a more common consumer device. wee we haven't seen that yet. the series one may have outsold the series three this last quarter. the game has inreally changed. we'll see if they have anything to change that. neil: my problem with the apple watch, you have to constantly charge it. maybe i get a day or two tops out of it. and for a lot of people that want it monitoring when they sleep, all that other st

cooperate with the chinese communist party on matters like artificial intelligence or partner with huawei and other companies effectively arms of the chinese communist party. and credible reports suggest that they are working to develop a new search engine that would satisfy the chinese communist party's censorship claims. perhaps they didn't send a witness to answer these questions because there is no answer to those questions. and the silence we would hear right now from the google chair would be reminiscence of the silence that witness would provide. i want to ask both of you, would your companies consider these kinds of action that is privilege a hostile foreign power over the united states and especially our men and women in uniform? ms. sandberg. >> i'm not familiar with the specifics of this at all but based on how you're asking the question i don't believe so. >> also no >> so, thank you for that answer mr. dorsey, let's turn to da that miner, a service that provides basically all of twitter's data the last time we had an executive from twitter before this committee in open settin

these included the chinese company huawei and zte. i found portions of this audit very troubling. and the findings could affect many american. -- americans. i believe the american people deserve to see this information. will you commit to making public the portion of your audits that 's partnershipbook with the smartphone manufacturers. >> i appreciated the question at the chance to clarify this issue. with regards to the audits, our third-party auditor does audits on a rolling basis every two years. we have given to us, shared them with the ftc voluntarily and will continue. i cannot commit, right in this moment, to making it public, because it has sensitive information. but we will certainly work with you to see what disclosures will be prudent. this, because that is a constructive answer and i have not other things to cover. i am just going to assume that you will work with this, we understand the question of redaction on sensitive matters. can't you get back to me within a week with respect of how facebook handle what i think is troubling information? >> we will get back to yo

equipment maker huawei has been in the crosshairs, along with another equipment maker.of them are key to the development of5g -- of 5g. both were involved across the world to develop 5g technology. getting a bigger capital pool behind those companies does enable them to develop that technology and to take the lead in it. these companies sell their goods worldwide. so it is a trade issue from that perspective. if they have the best cutting-edge equipment, it will certainly give them an edge, certainly in emerging markets in the emerging world. ramy: if this merger actually did happen, how would it affect the entire communications landscape in china? a prettyl, it would be dramatic change. already the chinese government through mixed ownership reform has been able to offer packages that include data through its investors. a third of the company is now owned by tencent, baidu and alibaba, the big three e-commerce companies in the country. so they are already offering tieups to deliver not only services, but only entertainment content and that sort of thing. but by giving t

when we had the fbi huawei phone, raise your hands. nobody raise their hands.if you would from zte, nobody raised their hands. after testimony, m director of intelligencey, an incredible he wise man, said the question should have been, do you know what is inside your phone? that was the right question. have hit on a couple of the competitors. --have questions now i'm a partner. [laughter] we have two questions. the first one, your assessment of the risk of military confrontation with iran after the u.s. withdrawal from the nuclear deal, either conventional or through proxies. obviously the iranians are active in yemen, in syria, iraq, lebanon. second, in terms of funds freed up by the jcpoa, how much in your perspective has iran spent on social, economic needs, and how much on military and proxies? the first iey: can't answer. [laughter] >> ok. lt. gen ashley: i can only talk around a little bit of the second one. obviously we watch rouhani, his investments. there are a lot of economic issues with iran. i don't know if this has come out before, but there's a lo

he asked, if you would buy a with huawei phone, raise your hands. nobody raised their hand. after testimony, my director of intelligence, who is an incredibly wise man, said, you know, the question you should have been asked was, do you know what's inside your phone. that was the right question. >> well, we have -- we have hit on a couple of the competitors. >> okay. >> we have questions now, actually i poured this for you if you want that. >> should i trust him? >> i'm a partner. we have two questions on the iranians. and the first one is your assessment of the risk of military confrontation with iran after the u.s. withdrawal from the nuclear deal, that might be either conventional or through proxies. obviously the iraqis are active in syria, in iraq. the second is in terms of funds freed up by the jcpoa, how much from your perspective has iran spent on ocean and other economic needs and how much on militaries and proxies from that force. the first is -- >> -- i can answer. >> okay. >> let me talk around a little bit of the second one. so part of what we did was, we obviou

huawei we see relief -- when might we see relief?is negotiations, president-elect negotiate and will not escalate to a trade war. i think the markets advance in august was a reflection of confidence in that scenario. no trade war, just these many spots. we said it tariffs were off the table, this market would be on the dow 1000 points higher very quickly. and the slight headwind yield curve is a slight headwind allof course, elections three of those can create a downslope. the least concerning of them is the elections. scarlet: another headwind, of course, would also be emerging markets. given what's going on with turkey and argentina, originally we thought they would be in a synthetic stories, but there does seem to be contagion concerns fling out. >> we don't have the same risk in 97 or 98 when you have the in russia devalued the ruble expertly. have that typeou of risk have that type of risk and i think we are really talking about very, very small emerging-market participants who have these issues. new think that three countries m

. >> i'm still not clear on why zte and huawei, these are extensions of the chinese government period become the infrastructure for the rest of the world. and the chinese do not care about things like privacy. and so when we had them in a place where it was clear that they committed a number of international violations, we had the opportunity to show a real message to china that we're not playing around and we let mem go instead, we're using tariffs which are pretty haphazard and are actually impacting american businesses so we understand how china is stealing our technology. we understand how china is trying to force technology transfer what other steps can we do that impact chinese businesses and china's investment opportunities in the united states to prevent them from doing that against us in china those are some of the areas that we are going to explore. and again, something that people aren't talking about is when you look at a decision that google made to separate from department of defense, was this influence in some form or fashion by -- >> but how much -- eric cantor is here

these included the chinese companies huawei and zte.portions of this audit very troubling and the findings could affect many americans. i believe, miss sandberg, the american people deserve to see this information. will you commit this morning to making public the portion of your audits that relate to facebook's partnerships with smartphone manufacturers? >> senator, i really appreciate the question and the chance to clarify this issue because it is really important. with regard to the audits, our third party auditor, pwc does audits on a rolling basis every two years but they're continue all. they're give into us. we shared them with the ftc voluntarily. we will continue to do that i can't commit right at this moment to making that public. that has a lot of sensitive information that could help people gain the system, but we'll work with you to see what disclosures are prudent. >> let's do this. that is a constructive answer. i have got other things i have got to cover. i understand you will work with us. we understand redaction on nat