Live from pier 3 in san francisco, welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world.
I'm emily chang.
Our focus is on innovation, technology, and the future of business.
Let's get straight to the rundown.
Apple rolls out the new iowa seven operating system.
This is the first launched under johnny isakson.
Will it win over users?
Is google hunting for the fountain of youth?
We will talk about the new venture focusing on beating death.
Facebook ceo mark zuckerberg gets unprecedented access in washington today.
He gives a status update on facebook's relationship with the nsa and why he is pushing for immigration reform.
First, to the lead.
A turning point in apple history.
Iowa seven got the first new redesigned to be downloaded for free.
As the tech giant ups the stakes in this battle with android.
It hasn't gone 100% smoothly.
Some users accounted an error message.
One tweeted -- another writing -- bloomberg west reach out to apple about the issues and did not hear back.
Could it be because demand is so high?
It is the first software overhaul overseen by johnny isakson -- johnny ives.
Tell us all about iowa seven -- ios 7. so many people are trying to learn about it.
Some people who are trying to download it, others are trying to figure out how it works.
Here is more on how it comes together.
When apple unveils its software, it is -- it's executives used appletalk.
You get gorgeous animations . harmonious layouts, precisely chosen color palettes.
What happened to my phone?
This is the biggest redesign since it was introduced.
Multitaskers will notice you can swipe through apps that are running.
Those things that pop up when you need to update, they go way thanks to automatic updates.
You will see improvements to search, an audio version of face time.
For anyone who has a phone on, you can just have -- you can just tap on everyone you want to share with.
Software is where different companies can differentiate themselves from each other.
If you have a fairly new ipad or ipod touch, you are joining the ios 7 club.
Get ready for that precisely chosen color palette.
Apple is hoping all of the iphone users will end up with a positive experience because this is using software to potentially sell more hardware.
You spoke to a lot of developers about this.
What are they saying?
This is just as important.
From developers, we spoke to the ceo of ever note, the chief operating officer of pandora.
Company that spent a lot of time getting ready for this event.
Pandora was planning to update.
If you think about it, if you have got new software and the experience changes, and the apps you like haven't changed, you are left with a certain sentiment.
That is where we are seeing developers moving as quickly as that will -- as apple to make sure they are ready.
As reviews come out, how much is riding on the success?
I want to bring in cory johnson with the drill down.
What does it mean for apple?
I'm trying to figure out what it means.
I downloaded it a couple of hours ago.
I am downloading it.
It is an interesting consumer experience for all of those hundreds of millions of users.
Or the business, it leaves the business along.
This leaves the stock chart along.
As the business gets more saturated, the stock prices stop moving.
It declined over time.
We are up 230% year.
What is going on here is the business of selling iphones.
People like the experience.
The clean software the design has gotten more cluttered over time.
That has had an impact on sales and open the door for competitors to commence with products that are a whole lot cheaper but offer different things.
They are not completely back to the drawing board but are remaking things.
The revenue growth they have seen maybe the most important part of this thing.
The number of funds that are out there in the universe.
The number is huge.
140 form -- 144 new sales in the last 12 months on top of the others that are out there more than a year old.
It makes it a bigger deal than the phones we got excited about last week.
What does it mean for competitors that ios 7 and two new iphones are here?
Their goal is to make is not just a phone operating system, but to make a harmonious with other apple products they can take an apple phone and selling experience on an ipod and imac.
Those things adds up to what hundred 40 billions of the last 12 months.
They want that to grow by having a happy experience.
When they mess with the software that runs three of the four devices, it is a big risk for the company.
They needed to be going right.
How has apple software changed under johnny ives?
My guest joins me now from mountain view.
What went into your redesign?
Thank you for having me.
It is the biggest step apple has taken.
We really embraced it.
We have been working to be pro- user.
It has fantastic reviews so far.
I'm a huge pulse user, and i am excited to use the next generation of paul's. what is different about your app and what is possible because of ios 7? you can really see how fluid it is.
It is not just a simple refresh.
You feel like you're not using an app or a screen.
It is a movie that keeps running , and you do not see the screen changes.
I'm excited to see that power be in the app.
We have made it extremely simple to go between a bunch of screens , and let the content shine.
And to have the navigation take a step back.
Lex linked -- linkedin is not ready.
The team is excited to work with ios 7. for us, pulse is the first design update.
The whole app is coming out soon.
Can you give us any update on how pulse will change under linkedin?
Some small things have changed.
What is the vision for the future of paul's -- pulse?
When we did the acquisition, it is bringing the best content that pulse has.
If you take that, we are shooting for being able to provide you the right content for your professional world.
We have done significant steps in that direction.
You can browse channels, we can read your pulse on polls 00-- on pulse.
I'm looking forward to that.
What is the difference in terms of developing for ios 7 versus android?
What are you doing to prepare for android sub date -- android's update?
The user experience comes first.
We design how we want users to feel.
We leverage the backbone capabilities to have a different experience in both android and ios.
Working closely with apple, we are working closely with google to make sure each user has the best experience.
Thank you for weighing in on what it is like for developers.
Great to have you.
Google is launching a health company with apple's chairman at the helm.
That is next.
? googles next big innovation could be at the doctors office.
The search giant is launching a health and focus well-being company.
How can a big consumer player navigate a challenging field of health care?
Josh stevens joins us now with more.
The company was cofounded by former head of google health.
I think the story is fascinating.
We do not know a lot.
What do you think?
We are thrilled.
Google is making an investment in consumer driven health.
There has been a push towards consumer's taking control of their health, understanding their data and taking action to improve their future health and get in front of issues before they come issues.
Uri cofounder -- your cofounder helped start google health.
Any insight from him as to what is going on?
Adam was a pioneer and a decade ahead at this time.
If you look at what is going on now, more americans are tracking their health data and tracking their health progression in the same way that google health envisioned.
We see this as a continuation of what was one of his early visions.
How do you give people the information they need to know about themselves and track the progress?
It seems they are focused on aging and chronic diseases.
Raising the question, can google key or death?
Can google really make huge innovations in terms of extending our life span?
We think so.
Here is what we know.
80% of health care costs are due to preventable issues, that if consumers knew about those risks earlier in their lives, it could prevent early issues that could be managed from becoming major issues.
Diabetes type two, obesity, smoking and couple cases that come from it, poor diet choices, sedentary behavior.
These issues -- as you become 40 years old, 50 years old, that is when the issues he come major health risks.
What are they going to do?
Are they going to work on telling people not to eat poorly or try to cure cancer?
We do not know the details.
What we do know is that no company in the world has greater consumer reach online and google.
If there is going to be someone who is going to take a change of consumer driven health forward, and advance health, there is no better company we can imagine and google.
What you think of our levinsohn running this?
Esa -- he is up bill gates of the industry.
To bring that depth and credibility to google, it will help accelerate their credibility.
Other companies doing something like this?
Something like this, we do not know everything google is contemplating.
We need to hear more from google on that.
What we do know is that google is well-positioned because of the consumer reach they have to help more consumers take advantage of their own health data.
And to act on the data.
We will be waiting to hear more.
Thank you for joining us today.
Facebook ceo mark zuckerberg takes his fight for immigration reform to the nation's. is he making progress?
? facebook founder and ceo mark zuckerberg is in washington dc today taking his fight for immigration reform to the heart of the political world.
Besides meeting with lawmakers, he said them with the atlantic editor-in-chief, james bennett, to talk about immigration and why it is important to silicon valley.
Most of the folks who i knew who run tech companies feel the high scope are of the issue is very acutely.
We all have a bunch of engineering roles that we are trying to fill.
His is not a matter of trying to hire people instead of americans.
We will hire all of them.
The issue is that there are not enough talented people who can bring into the country.
That is a real issue that people feel.
On this issue, if you poll the majority of americans, they want to get something done.
Even on specific technical language him of the majority of folks will support something.
Folks on both parties seem like they want to buy and large move things forward.
There is a cop located issue with a lot of different aspects.
Of course there our disagreements on specific.
I've only encountered people who have good intentions and want to move this forward.
Baker by the people in their districts -- they care about the people in their districts.
All these folks know way more about the sensitivities than we do.
We want to be there to help the fort -- help support folks who are going to take challenging the stations.
They believe it is the right thing.
I want to ask about the nsa.
Are you satisfied the approach the government is taking twitter defined -- taking to identify tracking, that that approach is sufficiently respectful of your users privacy?
What i can tell from the data that i see at facebook, the more transparent the government could do about how they are requesting data from s, the better everyone would feel about it.
I push for transparency anyway.
I think in this case, it would be in their interest in terms of resolving this on the facebook sitede.
That was mark zuckerberg in washington.
Megan hughes was inside today's event.
What can you tell us about what is happening behind the scenes?
You call them a lions den.
We know that he has had a few of these meetings.
He is very clear in the interview with the atlantic that immigration is the reason for the visit.
That is why he is here.
They are talking about a myriad of issues behind closed doors.
He has already met with chuck schumer of new york on the issue of immigration.
He is thanking him for the work that he has done in the senate.
They expressed optimism about the work on the issue in the house.
berg was asked in that -- zuckerberg was asked, who was he most excited to meet?
He said -- he was careful not to name a single person.
He said house members.
Clearly, there is recognition there is a lot of work to do in that chamber on the issue immigration.
There is no imminent movement on a bill there.
Last week, he came down hard on the government's response to the nsa surveillance.
What was the takeaway on that issue?
What's he has blunt?
We saw a softer zuckerberg.
He said the government blew it.
To be fair, in today's event he was asked about the content of the government program.
On the issue, he said he couldn't speak for the entirety of the program.
He did say sometimes they asked for stuff that was overly broad and they pushed back.
He hammered in that issue of transparency.
That seems to be what is important to him.
He was asked about his own politics.
Is there something -- this is something we have wondered about.
What did he have to say about his own political leanings?
There has been mr.
About that issue.
Back in new york -- he backed chris christie.
He was pose that question.
He didn't really answer.
He went around and talked about -- she said i am pro-knowledge economy --autonomy.
He says that fits under that umbrella.
We will have to figure out what that means.
Megan hughes, thank you.
Head of apple's latest iphone release, the one dominant player may cut even more jobs.
? . you are watching bloomberg west where we focus on technology.
Pandora has a big victory over as cap.
Pandora can play all songs without any restrictions.
This came after some publishers try to remove their licensing rights and negotiate directly with online services.
Simply clicking the like button has been ruled a form of constitutionally protected speech.
The decision returned a lower court ruling.
It came after a man fired people for liking his opponents -- the political opponents.
There has been a temporary halt on the sale.
This came after a shareholder suit to give shareholders a chance to vote on the deal.
While america's team flies down the bay, sales growth at the company falls.
Cory johnson is back with more.
Oracle plus growth, meager growth.
2%. service revenue, falling 8%. software revenue, 7%. when you look at the company, one of the first things we always look at is the stock chart.
It is with the market tends to think of this company.
For oracle, the stock has risen in spite of really consistent fallout.
I have been in new york all week listening to people talk about quantitative easing.
Yes, it drives up stock prices.
Look at the sales growth for oracle over the last six quarters.
Over 18 months we have seen this company grow at a much slower and slower pace.
Just 2% sales growth.
They were thinking it would be 3%. the stock is up 15%. at the same time, revenue growth is so much slower.
You could really see the problem they are having getting people to buy their software.
What's about to money?
Is oracle still making money?
There was a time when oracle just printed money, but the profit growth is slowing quite a bit for this company.
But profit growth, $8.4 billion in the last quarter, that is a little bit more than laster by $200 million.
You can see the trend of there.
Again, you do not see really strong growth from this company.
Obviously, this is a big acquisition.
Everybody has been wondering how the integration has been going.
What can you tell us about that?
They have said they are downsizing it, in too many places doing too many things at once.
We have not seen the bottom of it.
It continues to fall out.
It is not falling as much, maybe we're getting close to an end.
I said that 13 weeks ago when it was only down 19% year-over- year.
Down 7% year-over-year.
They did not buy that business to see it shrink.
They bought it to accelerate the growth in the rest of the company.
Instead, you are saying the shrinkage in the hardware business.
The slow growth in the services business.
Oracle's problem really reflects a loss of the problems.
The enterprise customers are not buying a lot more.
The company slowing down and the sales team losing 70 out 1. new zealand in the lead.
-- 7 to one.
New zealand in the lead.
In the meantime, blackberry could cut its workforce by 40% by the end of the year.
The layoffs will reportedly affect several thousand employees in all their -- in all departments.
It comes with the release of blackberry's z30. what news could have on their hopes?
I am joined by brian blair.
First of all, for two percent.
That is almost half the company.
What is your -- 40% . that is a must-have the company.
What is your take?
I think it is smart to get really lean right now.
Anybody who is buying this company or considering buying pieces of it does not want to take on the full load of employees.
They are probably looking for ip, they are looking for patents.
This is a smart move in preparation for a sale.
And where are we in preparation for a sale?
We have been talking about this for months.
When is it going to happen?
I believe they are trying as hard as they can to get something done by the end of this calendar year.
One of the things we are picking up right now is that both consumers and enterprise customers are really just stopping blackberry sales they had been considering over the past three to six months.
Ever since they put themselves up for sale, people have been wondering if this will remain a growing concern.
And i.t. manager or somebody considering purchasing blackberry, you have to take pause about buying these devices.
They are saying a real acceleration in decline and they do not want to report a week november quarter because they are seeing subscribers leave.
Their units are in decline.
What company would want to buy them?
Obviously, microsoft already bought nokia.
Google bot motorola mobility.
-- purchased motorola mobility.
We don't know if anybody is interested, what i think we could see a chinese player come in like lenovo or one of these larger asian players who can say, there is value to this 70 million subscriber base to the older blackberries.
Even if those are lower-priced devices, i could see them coming in and purchasing the devices division and sell those products at $150 and take a slim margin off of it.
I think it is likely to be one of those players.
I do not see any case for one of the big, microsoft or apple or google coming in for this one.
It is a big screen, five inch screen -- it does not matter.
We already know that nobody cares about to the bb10 operating system.
The first quarter of sales cemented that fact.
This product does not matter.
It is not that it is not innovative, it is just that nobody was buying the z10. nobody's going to buy a version of it with an inch bigger screen.
Users have decided they are not moving to blackberry.
It is unfortunate timing for this headline ahead of what apple is doing this week.
It is unfortunate timing to release this device today, but at the end of the day nobody really cares.
We will see small unit sales.
What is the fate of this company westmark what is the fate of blackberry?
-- what is that they did this company?
What is the fate of blackberry?
It will be broken up into pieces.
We sales -- we still see the devices division growing.
I think it is focused eerily on emerging markets.
We will seal -- we will still see parts of it sold in southeast asia, india.
We do not see any more high end devices being sold in north america or europe.
That is how this company whines down erie it is is still out there, but we do not see it in these markets.
Thank you, as always, for weighing in.
Well, they spend hours in front of the television every day but do not spend a dime on cable or satellite programming.
Who are these?
We will tell you next.
? i am emily chang.
This is "bloomberg west" streaming on television, your radio, and bloomberg.com.
There are people who have never subscribed to pay -tv.
They subscribed to netflix or hulu.
These lost customers outside of the traditional ways of viewing, i do not mean traditional like adjusting the thing on the tv, that happened once upon a time.
Comcast, directv, or none of it.
The impact of this from -- the impact of this will be explained.
What are you, a t? tv is changing -- what are you, 80? tv is changing.
Talk to me about these court never is.
There are a group of people out of college or maybe college age who have never subscribed to cable and potentially never will because they get to their viewing from netflix, amazon, youtube.
They pirate things.
They are able to cobble together another video for what they want to watch and they do not have to pay that $70, $80 a month bill.
A lot of them do not have high paying jobs yet.
This is a way to save money and get what they want still.
These demographics are interesting.
There is a sort of pain-in--what -- pain-in-the-butt el ement.
Do the makers of the boxes, apple, xbox, the cable box, are they trying to make it easier for these people to try to do that?
That is exactly what they want to happen.
The idea is to make it as simple as possible.
I think there are not too many 60 or 70 euros buying it.
The main question is not the technology.
It is how will they get the content.
They can get that stuff from netflix and hulu plus and put it all on there, but they are not getting live content.
They're not getting sports or broadcast channels.
They are not getting all of the other channels that are live streaming yet because those programmers are not selling them the content.
It lacks -- one of the functionalities of the net boxes they could circumvent the need for a cable box.
They would love it at the cable providers would provide xbox is in the home.
I suspect and understand from sources at microsoft that apple is trying to do the same thing with their product.
That is right.
If you make it easier, they are not going to sell your box.
That is the big fear.
Time warner cable has been out front saying, we are willing to play ball with you.
Time warner cable was in discussions with apple.
They said, we will put our app on your box.
But a lot of the other cable companies have said, don't really know that we want to do that quite yet because we fear the next step will be that you cut us out of the equation entirely.
Maybe that is why we didn't get an apple tv last week.
Good to see you in real life.
That is right.
Bloomberg east, here.
Do not have too much fun without me.
Disney is making some changes to its upcoming films of late.
That means two high-profile pixar films, the good dinosaur and finding nemo will be delayed.
The reason is for the next paris of the caribbean movie.
Jon erlichman is nla with more details.
What is happening here?
There is a lot of changes disney has made, but three we should highlight.
It to pixar films.
It starts with the good dinosaur which was going to come out next year.
There were reports that the director is no longer on that project.
That moves to 2015. finding authority, which is a sequel to nemo -- finding dory, which is a sequel to nemo gets pushed back.
Melissa sent is a new twist on sleeping beauty.
-- in a lots of ways, a film slate is just like product releases of companies like apple.
It is important.
But there are a lots of chess pieces.
You have to look at the board and see how the next couple of years will play out.
Jon, we highlighted disney delaying the release of the next pirates film.
How much of this has to do with the box office performance of the lone ranger which was obviously a flop?
You immediately see that in the headlines tied to the story, the fact that it was not that long ago.
You are right.
The fact that pirates was delayed and lone ranger was a movie that cost a lot to make and puts the bar pretty high.
I think the messaging has been pretty clear from disney.
This is a company that does want to make a big box office bets.
They do want to make calculated bets.
They are comfortable making bets on the well-known franchises they have got.
Marvel is an obviously -- is an obvious one.
The avengers movie, the sequel to the ironman films.
They are more cautious when it comes to the money.
The money they spend on each film or what could be viewed as the one-ops.
Movies like the lone ranger that is he has been making multiple bets on.
If the headline reads they spent 200 $50 million or more on that don't, they want to move away from that.
-- $250 million or more on that, they want to move away from that.
The pixar franchise, the star wars films that they purchased recently.
All right, jon erlichman our senior west coast correspondent.
A tool that helps you discover new web content is expecting a big boost in revenue.
We will ask the ceo why, next.
? welcome back.
I am emily chang.
This is "bloomberg west." stumbleupon is a discovery tool that helps you did -- explore the web.
It has been chugging along with a steady fan base.
For the first time, it is sharing its revenue numbers.
It says it expects revenue to grow as much as 33% this year.
It has seen a big boost from mobile.
It sales are up projected to come from mobile apps.
I am joined now here with more.
Obviously, it has been around a long time.
It has gone through changes.
A new ceo.
What is it today?
The division is the same.
It is to help people discover and explore content on the web.
You have search and you have certain do have social -- social media.
There are companies out there that has done a great job recommending products.
We are seeing our users on desktop but we are seeing a migration to mobile.
You will make $40 million this year.
How do you make that money?
Through advertising revenue.
We had a lot of brands and publishers participating on the platform.
With fashion week, we have seen the bigger houses spared.
You did have a number of layoffs this year.
You cut costs.
Is this the kind of growth you can keep up without cutting those kinds of costs and regularly?
What are you projecting for next year?
We're projecting another strong year in 2014. at the beginning of the year, we decided to focus on product engineering and design.
That is what we wanted to focus on in 2014. mobile interaction on tvs and game councils.
The bet is paying off.
My thing has always been, it is a cool idea, but if you're going to stumble upon something, don't you want to stumble upon it rather than going there to stumble upon something?
That is the challenge and what people are trying to solve.
Humans are curious.
They do want to explore and discover, but what do you use?
Don't we all discover things now in our everyday use of things like twitter, instagram, like ? i am stumbling upon things they're all the time.
I think every platform has a purpose.
One of the problems we have today is we have tons of information.
We need a way to recommend that content throughout our space.
You want to lean back and be entertained.
Stumbleupon has come up with a smart way to recommend content no matter where you are.
What is next?
We are focusing on international.
We have just lost our -- we just launched our android app in all of the european languages.
We are going mobile first on the international.
We think that is where the future is.
We're watching our users migrate t o mobile.
It is a natural way for us to go.
Tank you so much for joining us today on "bloomberg west." now it is time for the bwest byte.
We have the whole country triangulated here.
What do we have today?
Wax i thought we would stay apple-related.
It is 28,000,250 house and.
That is the number of ipods sold by apple in the last 12 months.
The ipod touch will also get an update today.
It is a huge business.
We probably ignore it because the ipad and iphone business dwarfs it.
This is the business that launched the revival of apple and in deed led to the phone and who knows what next.
That is fascinating.
We always talk about the ipad.
I would like to talk about the ishoe someday.
What do you make of this?
I am curious of how many people have to deal with an update?
How many people have an ipod?
Please, i do not want you getting an ipod touch.
You have your hands full.
I have weighed too many devices.
Thank you all for watching.
This text has been automatically generated. It may not be 100% accurate.