to tell us more, mark gurman. what do we know about the new high-end echo? something they have been working on for quite some time. it is designed to fend off competition from products like google. the thing to know is the homepod, sonos one, and google home max have not been that successful on their own. this is amazon saying we need a device that has as good audio quality as these ones to stay on top of the game right now as they are according to your chart. emily: can amazon create something as good as audio quality as sonos? mark: for sure. everyone else has done it. google, apple. all those smart speakers. they all pretty much sound the same. i'd be shocked to see if amazon could not pull it off. it will be a little wider, maybe taller. they need that because one of the key components to all of these sounds, the woofer and tweeters, the actual circular speakers. they need a bigger woofer that creates more space and the additional tweeters. right now, the amazon echo has one tweeter. this one will have four or five tweeters which should be comparable to t

mark gurman joins us for more in los angeles. tell us what is going on.t do we know about the speaker and what strategic purpose does it serve? initiatives.f many while the echoes are good for alexa voice control, you can control your lights and more, things, truth be told, the audio quality is not up to par with some of the higher end speakers like sonos. this new device is designed to bridge that gap. a high and amazon made speaker for music listening. taylor: every time we get excited about a new product launch, amazon announces an upgraded product. can you put this into perspective you echo -- perspective? towe are not expecting them reveal this product into next year at the earliest. be some minoro upgrades to the existing echo and the echo show with the screen. basic echoes without for sound quality. a key thing next year. the robot will be a year after that. things are going slowly but it is still happening. romaine: let's talk about the robot. this is the most exciting. robot that waser made a year or two ago. i'm told the amazon robot is similar

emily: joining us now is mark gurman in l.a., josh in d.c. and mark still with us in new york.k, what does this mean? mark: for apple, does not mean anything. tariffn't expect to get relief on the macro. the price is $6,000 for the base model so it is already expensive. i found it odd that apple would request a tariff waiver on a computer. i understand if it was always made in china, but up until this model for the past six or seven years, this line was actually produced in texas. basically, they are trying to move it from the u.s. to china while maintaining benefits of being in the u.s., so one can see why that would be a controversial topic for this administration. emily: i found it surprising they would do it so publicly especially after moving production to china from the u.s. was this a last-ditch effort? mark: i guess. it is their responsibility to do what is best for the bottom line and their margins. we can be sitting up here and criticizing apple for not doing that. they are doing what they have to do. it is an odd circumstance, series anof events. emily: josh, talk to

mark gurman, tom giles, jenny leonard, thank you all.napchat's growth accelerated in the second quarter. details on the latest earnings report, next. this is bloomberg. ♪ emily: robin hood markets has posed a new round of funding at $76lues the company -- $7.6 billion. robin hood became popular with millennials for allowing people to trade stocks for free. after reporting second-quarter earnings, it looks like the social media company is in recovery mode. after snap's disastrous redesign last year, it came out with a new version of its android mobile app. it also gave an upbeat forecast, saying it expects a daily users 207 million into the quarter. daily active users coming in quite above estimates. is it all because of android? sarah: it is also because snap has made some very popular augmented reality filters that change people's faces, change the way buildings look. some fun ones like a gender swap filter you may have seen. it speaks a little bit to the risk of the strategy that snap is betting it can be as creative as that every quar

joining us to discuss, tom got gurman, and, mark ben rhody in washington.en: we don't know a whole lot. we are looking at here is a sort of complement to a task force that the federal trade commission announced. doj share antitrust oversight. what is especially interesting that theye believed had split up the companies, the doj would only be looking at google and apple. now it looks like they could be looking at something more high-level. they could be doing criminal referrals to other parts of the agency. these companies could be facing scrutiny from both agencies. emily: the doj had taken oversight over alphabet and apple. the ftc was going to be looking at facebook and amazon. now this means that both agencies could be looking at these companies? a very broad -- it is giving itself a lot of leeway to take a broad look at these industries to find out whether further action is needed. this is basically them sending the signal that we are casting a wide net, we are not going to limit ourselves. all this talk about us getting this and the ftc getting that, w

joining us to discuss, mark gurman who covers apple. what does this mean? means for apple, getting a jumpstart in developing their own modems. modems is key in order for apple to connect to the internet anywhere in the world. right now, they use a combination of modems from qualcomm and intel. apple has been looking at ways across the entire portfolio, all the components inside the products to reduce reliance on third-party suppliers. building their own modem would do that. by buying intel's motive business for, $1 billion a few hundred engineers and patents. it seems like a win-win for apple and intel after looking to sell the business. emily: we will continue to fall that what -- follow that one. you have a new piece about apple's coo, jeff williams, who has tim cook's old job. a lot of current and former employees about his management style with johnny ives leaving. he has basically the entire design team reporting to him. tell us about jeff williams and what you have learned. mark: williams is a very respected manager, ceoo of apple. he does more than w

i want to bring in mark gurman and an analyst at a firm with a buy rating on apple.t is your take? we added to the conviction list. on the same day they downgraded, we upgraded. we have a strong name already and what i think he is missing is that this has pivoted to a subscription and services company, which implies margin expansion. they just hit 60 million apple music subscribers. it allows you to revalue apple based on subscription revenue which is far more visible and less hit driven than a device revenue. emily: walk us through rosenblatt's argument. touably, it is due disappointing iphone sales and the fact that 20% of sales from china. mark: that is a big part of it. to theaking us back trade war and the fear that iphone sales are going to go down. a mixtend to agree with of both perspectives. apple is trying to position itself as a service company and sales are in danger of not doing so well. frankly, i don't think a lot of people are going to flock to apple's new services. the apple news plus is not doing as well as apple thought it would do. another hand, t

to tell us more, we have bloomberg tech reporter mark gurman. .n studio, marybelle lopez one thing we hear tomorrow --what are you expecting? >> i am expecting it will be down single digits. we have been following this industry for a while and decline is consistent. emily: iphone revenue in particular or apple overall? >> we are looking at the sales of what would have been units. emily: what do you think is driving that? maribel: there hasn't been enough innovation in the space compared with the cost and most people have a phone and don't need one now. mark: overall sales are likely 54 billiond 53, dollars. apple was once this high and mighty company that could do no wrong and not have annual or quarter consecutive sales drops. now it is entirely possible that it will be the third consecutive year-over-year drop. inly: what are you expecting china specifically? we saw sales kind of follow for cliff, then they stabilized -- fall off a cliff, then they stabilized. maribel: there are incredible options in the chinese market. with apple, the transition from hardware to services is what to

mark gurman joins us. tell us what drove the gains.s seeing a higher profit margin because they are shedding some of their core businesses like a modem unit. it is also an uptick in pc's. tablets and smartphones are supposed to be the next thing. you are seeing strong pc sales windows side. that is leading some of the higher performance for intel. paul: intel has got rid of its struggling cellular modem unit. apple bought it. why did they make a purchase? build theirwants to own modem business and the best way to do that is to suck in a ton of patches, engineering talent, -- patents, engineering , and more. i guess you can make an argument that it is pretty much close to nothing in terms of how much money, over $225 billion apple has on hand in terms of cash. it is a no-brainer for them. we knew this was coming for weeks when they put up for auction and then a private mystery buyer emerged. it was pretty clear the apple. we are here today with the official announcement. how does this affect the dynamics for apple's relationship with su

our colleague mark gurman has reported these will be incremental upgrades, not a design overhaul. they are going to bring in more revenue in general than we thought they would. max: that is a good sign obviously if you are an investor. these 5g phones, i think people talked about apple going 5g next year. that could open up a lot of territory in terms of new services, new experiences. maybe all of a sudden your watch gets much more useful. the watch is doing well. this is this is bigger than the bigger this business is than the ipad right now. see if be interesting to 5g can bring it all together somehow. emily: tim cook saying the app store all in the double digits. the and monthly viewers on the apple tv app are up -- he is saying monthly viewers on the apple tv app are up 40% year on year. what are you most excited about. apple plus, apple news, applecart, apple arcade? dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. you have apple care which nobody talks about, where if you break your phone they will replace it or fix it. t

jason: there is reporter mark gurman in los angeles. these major tech companies, apple included, there are two types of succession planning. there is what happens if something happens to the ceo tomorrow, and then there is the long-term replacement succeeds the ceo if he retires at a normal age. jeff williams is about three years younger and fits the mold for both. if something were to happen to tim cook, everyone we talked to says jeff williams would be able to slide in without the company missing a beat. in terms of long-term succession planning, it depends how much longer tim cook will be around. if he will remain the ceo for the next five or seven years, he is almost 60. jeff williams would be able to slide in. so he is the heir apparent. he is very likely to the next ceo depending on what happens to tim cook, not that there is any reason for him to step down in the imminent future. but very much long-term, 20 years from now, i don't think that person is even at apple right now or a name anyone has heard of. carol: talk to us about

the engineers across the country but also key apple partners. , asie: fantastic reporting always, mark gurmanthank you. you can read more on this story and others in bloomberg's businessweek. time for the latest business flash right now. the credit rating company equifax has agreed to pay $700 million to resolve investigations into a massive data breach. the hack compromise some of the most sensitive information for 141 million people. the largest operator of the grounded boeing 737 max will not ring back older 737s to fill the void. southwest is canceling 150 flights a day, says it is taking a hard look at the fourth quarter in case the max remains grounded. back olderbringing planes, they may slow down the current retirement of their jets. investors will not be able to check their portfolios or receive quotes the invoice command. td ameritrade says it hopes to one day allow a tool to permit trading on the go. still ahead, the cannabis industry is even less diverse than banking and tech. why women say they are being pushed aside. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm

our colleague mark gurman has reported these will be incremental upgrades, not a design overhaul.hey are going to bring in more revenue in general than we thought they would. max: and that is a good sign if you are an investor i think the real excitement is 5g. have been talking about apple going 5g next year. that could open up a lot of territory in terms of new territory, and you experiences. we know maybe are apple was becomes more useful. the watch has been doing really well. this business is bigger than the ipad right now. it will be interesting to see if 5g can bring it all together somehow. emily: tim cook saying the app store up in the double digits. this is significant as they try to grow their services portfolio. he is saying monthly viewers on the apple tv app are up 40% year over year. jan, which service are you most excited about to come this fall? is it apple tv plus, apple news applecart, apple arcade? , dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. they are mostly gaming. you have apple care which nobody ever