johnny ives referred to xiaomi's phones as theft. ♪ emily: xiaomi has also been accused of copying. referred to xiaomi's phones as theft. he said you stole his designs. how do you respond to that? hugo: this copycat melodrama all boils down to one edge on one particular phone model, which people said it looks like the iphone five. i've been the first to say it does look like the iphone 5. that edge, by the way, is present in so many other devices, but it was in many ways, people projecting their bias against chinese companies on to us. people could not bring themselves to believe that a chinese company actually could be a world innovator, could build amazingly high-quality products and, by the way, sell them for less than half the price of a high-end apple or samsung device. i think that drama has quickly started to vanish. i would point out to the device that you have -- there is nothing you can point to that even remotely resembled it. emily: you don't think it looks like the iphone 6 plus? hugo: it is white. [laughter] hugo: how else does it look like the iphone 6 plus? emily: yo

why is xiaomi still a private company? do think that is moving fast and being able to change direction quickly is important to us. when you are a public company, you are more restrained in your ability to do that, to massively allocate investment into something that may not pan out for some time. i think just being more flexible and being able to move quickly is the reason why we will be private for quite a long time. emily: what does an ipo look like? hugo: five years away. he has been giving the same answer for the last couple of years. emily: how does xiaomi live up to a $45 billion valuation? hugo: there are so many services that people haven't even started thinking about. $45 billion is just the beginning. emily: hugo barra, thank you for joining us. so great to have you. ♪ ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me you've got the power, to turn on the light shape the best sleep of your life. sleep number beds with sleepiq technology adjust any wa

why is xiaomi still a private company?o think that moving fast and being able to change direction quickly is important for us. when you are a public company, you are more restrained in your ability to do that, to massively allocate investment into something that may not pan out for some time. so i think that being more flexible and being able to move quickly is the reason why we will be private for quite a long time. emily: what does an ipo look like? hugo: our ceos answer to this question is five years away. he has been giving the same answer for the last couple of years. emily: how does xiaomi live up to a $45 billion valuation? hugo: we are only in eight markets up until now. there are so many services and new products that people haven't even started thinking about. i think $45 billion is just the beginning. emily: hugo barra, thank you for joining us. so great to have you. ♪ ♪ >> i was told when i started that i could not be a director because i was a woman. and i have been directing now for many years. but certainly

at five years old, xiaomi rivals apple and samsung in the chinese smartphone market and is valued at $45 billion. but worldwide it is not a household name. former google executive hugo barra intends to change that. born and raised in brazil, he left a top job as the public face of android to take xiaomi global. joining me today on "studio 1.0," is xiaomi vice president of global operations, hugo barra. hugo: hi, how are you? emily: so great to have you here. hugo: my pleasure. emily: how is your chinese? hugo: coming along slowly. maybe next time, we can do it. emily: i will hold you to that. that is a big promise. hugo: two years from now, three years. it is a hard language. emily: i understand they call you tiger brother. how did you get that name? hugo: our ceo, a social media rockstar, superstar did a simple post and said hey guys, hugo is joining us from google, we have to give him a name. people went crazy.

. ♪ emily: xiaomi may be a new kid on the block, but it is no longer so little.ears old, xiaomi rivals apple and samsung in the chinese smartphone market and is valued at $45 billion. but worldwide it is not a household name. former google executive hugo barra intends to change that. born and raised in brazil, he left a top job as the public face of android to take xiaomi global. joining me today on "studio 1.0," is xiaomi vice president of global operations, hugo barra. hugo: hi, how are you? emily: so great to have you here. hugo p

born and raised in brazil, he left a top job as the public face of android to take xiaomi global.e, xiaomi vice president of global operations, hugo barra. so great to have you here. hugo:

xiaomi was seen as the next alibaba, but they came up short in terms of hitting their numbers.a problem for them and there will be some pressure on that valuation. ride hailing app. a lot of money has gone into peer-to-peer, and online to off-line companies, including massages you can get on demand, chefs, or car washes. we could see a shakeout in those sectors. on-demand economy is exploding here as well. drop going sharp into the last quarter. scrutiny forter smoothies startups -- for some of these startups? is overig debate whether this is a normal downturn or something exceptional. china has not seen this kind of trump, partly because they have never seen a venture boom what this before. peer-to-peer venture capital money is getting tougher to come by so it will be difficult to see how these companies fair in the year ahead. emily: if the economy keeps struggling, do you see venture capitalists pulling back? they are certainly pulling back to a certain extent. the vc's who have been there a long time say that this is normal. the economy is slowing down and there are tons of

xiaomi founder's plan is to become the world's biggest smartphone company.t seems the company did not get the memo, falling short of the revised goal to sell 80 million handsets. the beijing-based firm says it missed its target because of the decline in smartphone demand in china, local rivals reportedly sold over 100 million smart phones last year. uber ceo has issued a big warning saying china will soon surpass silicon valley in innovation. speaking at a conference in beijing, in the next five years, there will be more innovation, invention, entrepreneurship happening in beijing than in silicon valley. he is also looking to hire a chinese ceo to head up operations there. what are some of the biggest, most innovative companies coming out of china? back with us is my guest host for the hour. we should qualify travis's statements, he is trying to build a big business in china. what is your reaction? >> it is somewhat self-serving. you just raised a huge amount of capital in china. we are not really in a competition against beijing. we have had this argument w

xiaomi had a good year a couple years ago.me over the years, apple has been a solid performer for all of them over the years. when apple starts to slip up a little bit, slow down. slowdown in arst decade. all of the other suppliers will feel the chill. .he one rock they relied on it is going to be weak in 2016. the fact that apple has come out and given us these numbers is going to tell the supply chain what they need to expect this year. emily: the bloomberg terminal breaks down how reliable these suppliers are on apple. foxconn gets 52% of its revenue from apple. we talk about apple diversifying its revenue streams. what is beyond the iphone? what is their next plan? how are these suppliers trying to diversify their companies? are they focused on creating new revenue streams outside of apple? >> they are trying desperately. the chairman and ceo of foxconn has for years and years tried to diversify away from apple but he can't do it. there are two reasons for that. they are so good at what they do. they are so good at making

expected to have fallen for a second consecutive year, the company coming under immense pressure from xiaomi and manufacturers out of china. things could get even worse, because the company's warning of challenges in 2016 to maintaining earnings guidance. good news for investors. samsung is planning to go shareh with $2.5 billion buyback between january and the end of the month and april 28th. this is the second part of the buyback the company announced, vowing to invest pressure to return value and placate foreign investors.they have been very unhappy with the company, looking through numbers that dropped today they will not be pleased either. rishaad: thank you. let's look at one of the earnings after hours. mark zuckerberg with a big smile on his face. we will look at other stories making headlines. here is juliet. very big smile. we think mark zuckerberg may have actually recouped in one night, the big spike in facebook share price, when he lost last year. share price soared in 12%,-hours trade off, over after they delivernoarter of ret estimates. fourth-quarter sales rose to $5.84 billi

mobile market in china contracted with the past three quarters, while shipment delays also hurt xiaomi'schina is their main market, accounting for more than 90% of total sales. cap cow has made a $1.5 billion bid for low-end entertainment. melon streams the widely popular korean music also known as k pop. emily: we've been watching these messaging apps closely. how big of a deal is this? how will this take over help them? yvonne: if you think of chatting in korea, you think of kakao. its the number one messaging app in the country. give it access to the biggest these extreme and service in korea, and it is huge. they are trying to reduce the dependence on traditional forms of business and diversify its revenue. tapping into k's is one way to do that. they also want to expand offshore. this could be a potential big deal. how they are going to monetize this is a big question many analysts are asking. if you take a look at how each generation -- each user generates revenue, kakao generates four dollars per user. whatsapp generates six cents per user. there is an opportunity for monetization

it needs to make inroads against samsung and xiaomi. shares closed slightly higher in new york.he stories on the bloomberg terminal. back to you. angie: coming up, believe it or not, january was a record month for chinese firms doing deals in the u.s.. is the spending spree likely to continue? we will take a look back. you are watching "first up." ♪ angie: welcome back. japan's economy minister says he will provide an explanation today about allegations of financial impropriety to be published in a tabloid magazine. the magazine's website claims he and his secretary violated political funding laws by allegedly taking around $100,000 from a construction company. the economy minister says he has not fully read the article, but he will investigate and explain himself to the public. of a taliban faction says his group attacked a university campus and killed 19 people. at least forgot men stormed the university, firing at random. they were eventually killed by security forces. the motive behind the attack was said to be revenge for pakistan's crackdown on military groups. u.s., briti

it's also the low end china manufacturing story continuing to lose market share to the xiaomi.e analysts have criticized him for having to broad of a product range. no focus on the high-end or low-end. there's too much going on and as a result, they are not waiting on either end of that product spectrum. ♪ ♪ betty: you are watching "bloomberg best." i am betty liu. as he mentioned earlier, aig unveiled a new strategic plan week.eak -- this it will sell its dealer network, conducting additional public offering of its mortgage insured unit, and cut costs while returning $25 billion to shareholders in the next two years. will this approach they've off interference from activist investor carl icahn? i asked ceo peter hancock about that plan. iswe laid out this morning what we are going to do over the next two years to make this company more focused, more profitable, and returned $25 billion to shareholders. that speaking to all of our shareholders, all of our policyholders, all of our regulators and stakeholders. i'm sure we will not satisfy all them, but we need to deliver a susta

xiaomi is also missing 80 million sales targets for the year. the market, it seems, is changing.tomers are not upgrading as often, or they are waiting for newer phones, or they are quite happy with what they had. it is not a good report from samsung. david: i want to ask you about some folks in washington. josh earnest talking about some folks paying a visit to silicon valley here to talk about cyber security with executives. able toinly being demonstrate their ability to protect some of privacy is good for their business model. having that technology be used by terrorists, i'm not sure is. they would know better than i. i'm not involved in running their business and and not able to look at their numbers, but i do speak with a lot of confidence in saying the vast majority of these technology companies are run by patriotic --ricans and i do believe and you can ask -- they are more liquid have the conversation .ith you than me but i have confidence that those companies run by patriotic americans are not interested in seeing their tools or technology used by terrorists to harm innoc