joining us we have sophia and mark gurman. you're going to get to apple, but, sophia, let's talk about tech overall. you thing about valuations, you think about fundamentals and in the performance we are seeing in tech to start this year. is it justified, this pickup? >> i think if there is going to be a valuation compression is going to be in tech. it is the first thing people well sell. when markets are this nervous, i wrote down here on my reporters notepad, because i still live in the 20th century, valuation expansion drove almost one third of s&p 500 returns last year. cannot really continue? when you consider the crowding, especially among headphone -- hedge funds, katie, i know you are thinking that the u.s. can outperform europe, but if you look at the crowding i don't think it is sustainable. i think it is a dangerous place to be. i think once the market does turn, and we have already seen a were -- a preview of those reversal trades in the bond market and dollar this week, i think it is a preview of what can happen.

mark gurman covers apple and joins us with more context. lyst view but you are constantly doing channel checks. what do we know about the demand story around the iphone? mark: barclays is showing the holes that do exist in the apple story. if you are on wall street or you are an investor. certainly things have an ok for apple. i continue to believe they will be ok for the next year or so. we are not talking about some sort of breakthrough year in terms of sales. certainly the hardware, new products will be significant. obviously the vision pro headset, the first mixed reality device is going to be launching within a month from now. you'll see a revamped ipad in the spring. a new macbook air. and larger iphones. but there is nothing that is going to amount to any considerable growth. the new product category, the headset is unlikely to bring in any material revenue. anything of significance for a few years. the iphone change barclays was talking about is indeed what is happening this year. the iphone updates are not going to be a major overha

for more, let's bring in bloomberg technology reporter, mark gurman. apple in reverse on the car. that's a good one. yes, sort of. their initial plan was to release a level four car, autonomous vehicle that can self drive with level four capabilities. that means the car can drive almost entirely on its own in almost any condition. they are scaling back, moving to something called level two plus. that is in line with what tesla has today, maybe a little bit better, and they are doing that because getting to level four, getting to these more advanced levels of self-driving and self-driving autonomy is very difficult, very challenging. they are scaling back and they are tilting the debut of the car. they had planned to launch it around 2026 and that is now going to be between 2029. a bit of a revamp or shakeup here. annabelle: if they are delaying the launch to 2029, as you said and it will have this level two plus plan, similar to the cap abilities of tesla today, why does someone want an apple car in six years from now or five years that has got those capabilities? mark: there's go

according to bloomberg journalist mark gurman, who specializes in leaks from apple, the company is readye unshakable internal rules, all due to new european legislation. now smartphones and tablets from the apple company cannot install an application other than a proprietary app store, which prevents users from installing it. russia , for example, has lost many programs from bank car sharing, but the new law on digital markets in the european union, which comes into force on march 7, obliges the largest corporations, including apple, to give users the opportunity to download programs from third-party sources. moreover, mobile application developers should gain the right to accept payments through any services, and not just through a proprietary payment system, which retains up to a third of each transaction, so here's... brand gurman apple plans to divide the app store into two separate stores, one for europe with its new laws, different for the rest of the world, where everything will work as before, at least until someone else adopts laws similar to european ones . by some coincidence,

bloomberg's mark gurman, the latest power on thank you. that does it for btec.ice, and i lost 172 pounds on golo. when i was a teenager i had some severe trauma in my life and i turned to food for comfort. i had a doctor tell me that if i didn't change my life, i wasn't gonna live much longer. once i saw golo was working, i felt this rush, i just had to keep going. a lot of people think no pain no gain, but with golo it is so easy. my life is so much different now that i've lost all this weight. when i look in the mirror i don't even recognize myself. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> welcome to bloomberg "etf iq." i am scarlet fu. >> i'm katie greifeld. happy birthday to the biggest and oldest etf.

let's get more with our technology reporter, mark garment -- mark gurman.s a pretty dramatic step for apple. reporter: absolutely. thank you for having me. incredibly dramatic, the idea of apple removing a future from its devices to avoid this continued litigation. let me tell you where things stand as of today. as over friday, january 12 and the u.s., the u.s. customs and border patrol agency approved, if they remove the software from the watches, they are able to continue selling the watches. on tuesday, january 16, apple is hoping the u.s. federal appearance court circuit -- federal appeals court circuit will rule in its favor to have a one year stay on this issue meaning the oxygen watch can continue to be used for the next year or so -- sold or euro so without having to relet the new -- replace the new software. this is a really important piece of news we got today. one important -- the more important drumbeat is tomorrow. haidi: will we found out more in terms of how this is likely to impact consumer demand? this was such a highly touted feature. even

let's bring in mark gurman for more on the smartphone battle.was something that tim cook really leaned into in the last earning particular in china. they felt they were the best-selling handset so how significant is this that apple dethroned samsung over the course of 2023? >> certainly a victory given everything going on, it's a big deal. i think they got a little bit of a boost on iphone sales across 2023 because of the production hiccups at the end of the calendar year of 2022. if you remember, right after the 14 wrote launch, apple had to pause production for several weeks due to china's existing covid protocols which had to shut down foxconn and the peripheral factors. use of the sales and those unit shipments hold off until the calendar turned when the issue was resolved. then you combine that with the success of the iphone 15 pro out of the gate. this is good news for apple. i think samsung has tried to diversify their smart phone line. they have the flagship phones which are the phones that are being introduced today, the galaxy s series

ed: mark gurman leads our coverage of apple, thank you very much. complex story that has every twist and turn. coming up, we get the macro outlook for the tech sector with a portfolio manager for the genesis technology fund and holds a lot of chip stocks but also the holder of apple shares and we will get her reaction to this big news story. from san francisco, this is bloomberg technology. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant cont

mark gurman, thank you. coming up on "bloomberg technology," ford is cutting its workforce that is responsible for making the f-150 lightning pickup truck. there is a lot of discussion when it comes to ev demand. we are watching apple shares. on the back of the boa upgrade, the stock has also been added to the tactical outperform risk. various risks surrounding the iphone maker could be overdone. this year, a lot of concern about growth and china. isi, a little bit more bullish. this is "bloomberg technology." ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com ed: breaking news just out a few moments ago. op

. >> bloomberg's tech reporter mark gurman with the latest. let's turn to japanese tech giant nec.t is see growing demand for its japanese language generative ai which was launched last year. it's ceo says they are seeing applications booming in 2024. >> last year, we launched japanese language-based our own generative ai. very compact and very well functioned to suitable situations, and also it's very secure. >> what are the future investment plans since there is great demand for it, and what are your targets? >> actually, this is coming from the other decision which was made three years ago. at the time, our researchers pushed me to invest into buying agc for their own researches. at the time, i did not imagine how this is leading to our innovations, but at that time, we invested about 100 million to provide the r&d environment to our researchers. they come up with the ideas and create very compact size and versatile and very easy function to the digital environment. that is the kind of investment we made first. next year and this year, we continuously invest into this field, int

you will see our coverage of apple appeared we are so advantaged by having mark gurman over all of the apple. this is the one time where that magnificent seven and i know they are all different stories but we really need to hear the nuances of amazon, the nuances of microsoft and the others. tesla is its own little story with elon. this is the one time you do not just want to sit down. jonathan: president biden's top middle eastern fires met with the prime minister and discussed regional tensions and efforts to secure the release of hostages held in gaza according to a u.s. source and two other sources familiar with the trip. it is interesting, great reporting from the likes of the team. i secret meeting took place last month between ukraine, its group of seven allies will be a small group of countries to dryly -- countries to rally support for holding peace talks with russia. you have these two wars happening on the surface that were off sink from the outside looking in. looking at what's happening in gaza between hamas and israel. we are learning about the complications. tom: what is