tim higgins came from detroit. you come here to cover apple. what are the similarities between these companies? >> for one thing apple is a global company with a lot of cash. costs, about $1 billion for a new car to be created. >> it costs $1 billion to build a new car? >> generally speaking. it's an expensive time-consuming process. so apple has a lot of money, $178 billion. so not short of cash. they've got global operations used to doing supply chain management around the world, used to doing industrial design. used to dealing with retail network. so they have a lot of things in place. that said, designing and building cars is very complicated. something that trips up even long experienced automakers with regulations and safety and marketing. it's a very long lead time for developing a car. >> let's talk about the r&d spending those companies do. they spend boat loads of money on top of containerships full of money. the history of knowledge that they've built up. i guess it's the question, is there an accumulated bit of knowledge, or is it a

tim higgins, thank you very much. always get the latest headlines all the time on your phone, tablet, bloomberg.com and bloomberg radio. more "bloomberg west" next week. ♪ >> the following is a paid time life. the following is a paid advertisement from starvista. it was the decade of eight track tapes. am radio. and great songs on 45s. >> ♪ you are a fine girl ♪ >> ♪ dancing to the rock 'n roll ♪

cory: i saw your byline, tim higgins came from detroit -- any similarities between the companies? >> auto industry churns through cash. >> cost a billion dollars credit new car? >> it is expensive time-consuming process. apple has a lot of money in the bank, they have global operations -- they are use to retail networks all over the world. now, that said, designing and building cars is very complicated -- something that trips up even experienced automakers with marketing hitting up what the consumer wants. it is a long lead time for developing a car. >> they spend boatloads of money in r&d which is container ships full of money. the history, the knowledge they have built up -- is it abn accumulation? >> when you talk to engineers out in silicon valley, they feel like they do not move enough. guys in detroit say there's a reason why we are so slow -- we have regulations and challenges for putting a product on the road. >> is it about the way the cars are made? they are wrestling with union contracts, existing factors, wrestling with dealers. they have to figure out what to put in t

. >> tim higgins i love, i didn't think about this when the story crossed but then i saw your byline york came from detroit where you covered automakers you come here to cover apple. what are the similarities between these companies? >> apple has a lot of cash. auto industry churns through cash quickalism usually about $1 billion for a new car to created. >> $1 billion for a new car, for companies that have been making cars for a hundred years. >> it's an expensive, time-consuming process. apple has billions, they're not short on cash. they're used to doing supply chain management around the world, used to dealing with the retail network all over the world. in some ways they have a lot of things in place that global automaker would have. that said, designing and building cars are complicated, something that trips up even long experienced automakers with regulations, safety, marketing, hitting what the consumer wants seven years down the road. it's a very long lead time for developing a car. >> car companies spend boat loads of money on r&d on top of con tearerships full of money, and

apple continuing to rise our story by tim higgins. m tells us, and i looked it up and tim is right analysts have a 12 month average target price of $132. the highest target is $165. yesterday, we closed at $124. were apple to reach that mark the market value would exceed $960 billion. we are not quite at the barton target. here are the words of an analyst. he wrote, given apple's powerful iphone cycle, a big 4g round in china, and the launch of the apple watch in april, we believe there's is plenty to look forward to at apple during this transformational cycle. >> and don't mention the law of large numbers, which is misunderstood on wall street. it doesn't mean that apple can't keep growing according to mathematicians. i've chosen something from our website about netflix. netflix calls "house of cards" after a really release -- after early release. a technical fault inadvertently made season three of "house of cards" available on wednesday. this is one of their flagship original shows. kevin spacey won a golden globe. the due date for

as tim higgins wrote apple is looking to diversify their products. it is an interesting approach. google is in this space. tesla is seen as more of a silicon valley company than an automaker. everybody is looking to see what the future of the car is going to be. there is no guarantee that it will be gm, ford any of the traditional players. that is the space their coming into. it is already shifting. it is a wide open space for whoever has the best idea. betty: it really is. when we think of electric cars we think of tesla. they are still far away from producing a mass production electric car. who is furthest ahead in that area? >> there is a risk that no one gets there. consumers are not that interested in it. you have the leaf from nissan which is probably the closest thing to a mass-market electric car. there are a lot of risks. the amount of time apple is going to take to bring a car is short. toyota and honda and other automakers have gotten in trouble when he started to shorten their development times and had to lengthen them out. that is where these recalls came from. they g

higgins' idea. i wrote it with zach kanin and tim robinson. >> seth: right, two of the funniest dudes on earth. >> andbuff boys had maybe had some legal troubles. >> absolutely. and he sang the whole show out with the song he chose at random. he hit play and it was boyz ii men's "i'll make love to you." [ laughter ] he was like, "i'll make love to you." oh, no. i'm going to get in trouble again. >> seth: and so, but it didn't air. how did it go at dress? >> it went great at dress. but it's definitely the last sketch of the night. like, it's that sort of environment. >> seth: can't play a higher. >> i like where your head's at. >> seth: yeah. let's just do it. come on, i mean, when are you gonna -- >> but yeah, it was the last sketch of the night and then, you know, it went too long. i was fully in that outfit. they were like, it's cut. i had to be like, "that's okay." >> seth: take off your little buff boys wig. >> just take off my buff boy costume and not cry. [ laughter ] >> seth: buff boys cry a lot at the end of competitions. >> little buff boys, absolutely. >> seth: you have a new standup album,