Galaxy Gear Not a Flop?: Bloomberg West (11/19)

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Nov. 19 (Bloomberg) -- Full episode of "Bloomberg West." Guests: Veeva's Gordon Ritter, Glu Mobile's Niccolo De Masi, Radiumone CMO Eric Bader and Bloomberg's Angela Greiling Keane. (Source: Bloomberg)

Live from san francisco, welcome to the late addition of "bloomberg west," covering the companies that are reshaping our world.

The focus is on innovation, take knowledge, and the future of business.

-- technology, and the future of business.

The new ipad mini goes on sale without the fanfare that usually accompanies a launch because apple did not announce the date of the launch.

Move over, amazon.

Meet allie baba.

-- alibaba.

You may never have heard of it.

Staggering fingers topping cyber monday and black friday combine.

Google glass getting its -- groupon.

You can listen to music as easy as making calls.

There was no great fanfare with the new ipad mini, now available for purchase.

The rollout is atypical for apple.

Usually they announce it a week in advance.

In another twist, it is not being stocked in apple stores as of right now.

Demand appears to be strongest for the largest storage and 70 models.

Those are scherping -- shipping and 5-10 business days.

Are supply concerns the secret reason behind the quiet rollout?

How much could this hurt sales?

I want to bring in a leading authority.

He has been covering apple since he was 4, 2 decades.

He is an analyst at piper jaffray and joins us now.

There you are.

I am glad you got the fashion memo.

Nice work.

Apple, have they given up on a strategy or is this about supply and demand?

I think it is about supply and demand.

A sometimes feel like doing something stealthy.

The higher capacity is starting to stretch out in turns of the lead time.

That is part of it.

And i think they realize they do not want to wear on people.

They had the iphone launch a month ago.

A couple of weeks ago with the ipad air.

I think they realize there is a limit to how many of these events you can do and get away with.

I have always wonder about the event, let's talk about the line.

I have always thought the line was a bunch of bogus marketing.

The company that can manage the acquisition of semi conductors, snapping them into a circuit board, the purchasing old the glass, the packing them into boxes, the shipping them across china, is suddenly surprised when a bunch of people show up at a line.

Does that continue to be an effective marketing tool?

Or have the samsung and taken that away?

We have looked at the major product launches, i am surprised even apple does not understand what the line should be.

For example, with the ipad air, we noticed some of them were quick to handle a couple hundred people in there might have been 15 people at the stores waiting in line.

Apple sometimes does not do a good job of managing this.

There are times when they try to generate a little bit of buzz and hold back supply to create more buzz.

Obviously when you ask apple that question, their answer is emphatically no.

They do not do that.

I think it does go on.

I'm also curious about the way, i think i saw you in your life when we were in new york when the new iphone was released, and you are actually out there in a sweatshirt walking around measuring what?

What we do, we think of it as a movie in the first weekend.

In this case, the first day.

We try to measure the lines at six locations and based on that we get a flavor of what the buzz is around the product.

Surprisingly, it has been a good indicator.

The other thing we do, and i thank those of you i may have surveyed, it is easy to get feedback as far as what they are buying.

When we did the ipad air survey couple of weeks ago, the capacity of the people has gone up, it was 40 gigs average capacity for the ipad one year ago.

We have surveyed that it is now 60 gigs this year, which is surprising.

That is a trend people are upping the capacity.

Is that good news for apple?

Obviously for revenue.

You hit it right on.

We estimated large part, 30% of apple's trough is coming from the capacity.

Higher-margin, extremely high margin.

They charge $100 and it costs them a couple of dollars.

I was making a point earlier today this was a significant product release.

Seems like the latest iteration but in the world, apple is one of the biggest companies in the have so few products, and ipad mini is actually a really big deal.

How big of a deal is this to apple?

If you look at the actual numbers, think of the iphone 5 s, probably about 25% of their business.

The next biggest product is going to be a tie between the ipad mini and the iphone 5c. so this is a big deal.

Think of it as a tie for the second most important product.

15% of their total revenue.

So a very important product.

Even though a not a lot of fanfare today.

Extremely important for apple and i can guarantee you can cook is checking his sales feed every 15 minutes on days like today.

By point of reference, you're probably talking about $25billion $25 billion in annual revenue for that one device, sorry, i am the carrot topple bloomberg west, for this one device, 25 billion dollars in sales.

It may be more than that.

Think of that, it could be 35 billion dollars.

Something like that.

It is a lot.

Is there a notion with that kind of number, bigger than they have put it before, while there is a clamoring for something new when something great, the size of the business is the thing that is new and great and maybe they do not need new staff?

I think from consumer standpoint, they do need to invent new things.

Typically people who have iphones love them.

About a 90% repeat buyer factor.

Given they have had a good experience with their iphones, i recently was serving people on the street about what they want from apple.

It is funny to hear responses.

I would say this, people are very opinionated about what apple should invent next because they want apple to make their lives better, which is funny.

I am all for a better life.

Gene munster, thank you very much.

Are you a google glass explorer?

We have news that might be music to your ears.

That is next on "bloomberg west .' ? welcome back.

I am cory johnson.

Already, people with knowledge of the situation save liberty global is an early-stage talks to acquire this not get existent service and use it in the european cable market.

Bloomberg had room ported that intel is talking to verizon about acquiring this technology.

-- had reported that intel is talking to verizon about acquiring this technology.

Now they can get to their playing music library and listen to their favorite tunes.

Jon erlichman is rocking out in los angeles.

Are you on the google glasses listening to tunes doing searches?

I'm just analyzing the geeks.

No, it is a fun story.

Google lists selling a special pair of stereo earbuds for this feature.

Our next guest has already tried the music app.

He's the president of a software development company and joins us via skype from pennsylvania near philadelphia.

So, class makes the move to music.

You do need these $85 earbuds.

Is it worth it?

It will actually way from the bone conduction audio.

You can side loaded today.

It is fascinating to be able to say a song and have it play in your head.

We want to give people an idea of what that is like.

We are going to play a glass video.

It does take time to load.

So if you're listening to us on radio, bear with us for a second.

Here is the demo video you did for us today.

All right.

You chose "panama" by van halen, i would prefer a shot of you rocking out.

But what was the experience, it took five or 10 seconds?

Just a few seconds.

I was walking down the street.

I said listen to whatever play list you like and it will play it for you.

A lot of people obviously think about what each new feature will mean.

Nothing case of a company like google, some look at something like musical access, maybe wonder if it is slow to gain traction and whether this is a way to help that.

What would you say to that?

I think a feature like this bolsters the ecosystem.

This is something that makes all access tremendous.

A couple of versions ago, google added a feature to search for music.

If you are listening to music in a club or in a bar, you can actually have glass tell you what music is playing.

Then had why hear the music?

How can i purchase the music?

With all access, you can do that.

It is interesting to see how glass, fits into google's other properties.

With this sneak peek, we are saying that it very much fits into their music played.

What does it mean for other players in providing music services?

Pandora, spotify, apple has been talking about their success of the itunes radio service.

All of a sudden we are talking about wearable devices and music tied to those.

Does that change the story a little bit?

I think it opens up the opportunity.

The hysteria headphones that were announced for glass -- the stereo headphones that were announced for glass turned it into an audio type experience.

If you look at people how people spend hundreds of dollars on the beats headphones and similar brands, that kind of market is an area of interest to google.

If you look at the entry price to glass, you can have something that is your layer and your high fidelity audio is a neat opportunity for them and pushes another use of glass.

Any idea when google glass is going to be available to everybody?

The average consumer?

Something special happened today.

Google has opened up the website.

You can get on the waiting list.

It is no longer some random weight.

You can get on a first-come, first-served list.

You can go to the website today and put her name and to get a pair.

There you go.

A little bit of inside.

Always appreciate it, det ansinn . joining us near philadelphia.

Cory?

I think that is the van halen debut on "bloomberg west." good stuff.

Now to a place where you cannot wear google glass or fire up your ipad or use your cell phone.

Imagine that, cell phones, 2012, americans and 2.3 trillion minutes on their cell phones.

But there is a place in america where they cannot be found here it it is the land of wireless forgotten.

A small town known as greenbank.

Our correspondent has more.

Over 326 million wireless subscribers plaintiff the united states with cell phone noise.

There is at least one oasis of silencing greenbank, west virginia.

Its residents live in a 13,000 square mile area called the national radio quiet zone to protect the research done here at the national radio astronomy observatory, the home of this telescope.

The largest movable one in the world, it's reflecting surfaces 2.3 acres.

It observes the top of stars, the basic sugars, the proteins, the building blocks of life have been discovered by the telescope.

Its data is analyzed worldwide.

You are like the nsa of silence -- a science.

That is the way of putting it.

We are the collection agency for universal radiation.

So why the quiet zone?

The energy it receives is equivalent to the energy given off by a single snowflake hitting the ground.

With only white noise on the radio, living in greenbank is a little like traveling back in time.

Your life is a little slower.

A little old-fashioned.

This tour sells everything.

If you need to call home, use the payphone.

It is a couple of miles down the road.

In case you were wondering, it cost $.50 to make a local call these days.

Greenbank has someone to enforce the law around 10. chuck -- around twon.

Own.

They are popping up already.

Most residents comply.

But there is some rebellion.

Him but he had a wi-fi access point set up.

-- somebody had a wi-fi access point set up.

The name of it was "screw you." i live in the city.

All of the cell phones drive me crazy.

I don't know of any other place i would rather live.

We were all sitting around the table eating, i said, listen, everybody looked around.

I don't hear nothing.

I said that is what i like about this.

I love that story.

In case you were wondering, his microphone was hardwired.

There was no wireless injured in that story.

Alibaba has shattered sales records, many in the u.s. have never heard of.

That is next on "bloomberg west> ' ? i am cory johnson.

This is "bloomberg west," streaming on your iphone and tablet and bloomberg.com.

Alibaba has been celebrating record-breaking sales after china singles day, when singles buy gifts for themselves.

The company sold more than $1.75 billion in merchandise.

That is up 80%. the number is also greater from the $2 billion sold on sober mind i last year.

-- on cyber monday last year.

I asked analyst paul sweeney what the secret is.

It just goes to the extraordinary growth that china is seeing in its retail sales generally speaking but primarily on e-commerce, extraordinary growth.

Year after year after year and ali baba is the largest online marketplace, it is really position to really take the lion share.

Talk to me about how you try to put ali baba in the context, should we think of it as a chinese amazon.com or in what ways is a more than that?

It is almost like an amalgamation of amazon, ebay, because it does have that market plagues aspect to it and in terms of the overall size.

It is a little bit of a hybrid if you will.

What is interesting in china, we are seeing some serious growth and in commerce.

I was in china visiting a lot of these companies.

The culture of retail sales lends itself to e-commerce.

I think a lot of the e-commerce companies are finding a lot of success as they transition from bricks and mortar to e-commerce.

As mobile broadband continues to expand in china, that bodes well for trends in general and then obviously ali baba in particular.

In what way is the fulfillment different?

It is much more challenging.

We see it with amazon.

Jeff reseau says -- jeff bezos says he is spending more on the film and centers, trying to get them closer to the end consumer.

That has a negative moffett impact on amazon.

-- negative profit impact on amazon.

They are simply a middleman between the buyers and sellers.

Alibaba takes a commission as well as some advertising revenue.

Not in this area really -- not necessarily the infrastructure amazon needs.

I do not understand why alibaba is growing faster than online in china.

I think we are starting to see the share of retail sales to e-commerce is actually, last year it went up to 6.3%, up from the year before.

Approximately a 50% increase year to year.

That share shift from traditional bricks and mortars to e-commerce is really, and it is expected to continue if you look at the forecast, for the next decade, at least.

As the leading player, alibaba is positioned.

I think they are benefiting from the secular trends in retail.

I feel like i'm going to have to pay attention to this as they get closer to an ipo in the u.s. is the focus on the company.

What are the numbers of the singles day and what do they mean for the ipl?

Clearly it is good timing for alibaba in the sense it raises the awareness about the overall growth of e-commerce in china.

From that perspective, it bodes well for it as it comes to the market.

One of the challenges coming to raise its capital and do its ipo in the u.s., the name is not as well-known as some of the other consumer internet names like google or facebook or twitter.

There's going to be an education aspect to it.

I think investors in the u.s. and other parts of the world are very used to and know very well the amazon and ebay story.

It is just a question of trying to extrapolate those metrics and those dynamics to be overall e- commerce profile of china, which is obviously expanding very dramatically.

That was paul sweeney.

Twitter is adding new timelines.

We are going to show you the latest effort to stay competitive and helping users stay organized.

That is next.

? you are watching "bloomberg west," focusing on the future business.

I am cory johnson.

Let's get to the top headlines.

Dish network chairman is not ruling out a possible acquisition of t-mobile.

He said all options on the table as the company tries to acquire more wireless airwaves.

Dish made a failed attempt to buy sprint this year and it reported a 300% rise in third- quarter profits and a two percent gain in sales.

Vodafone plans to spend one point $6 billion to upgrade its network by 2016. the money will come from the sale of its verizon wireless stake back to verizon.

It brings its infrastructure to more than 11 billion dollars.

Vodafone intends to blanket parts of europe and emerging markets with four g service to ignite slowing sales.

Etsy topped $1 billion in sales for the first time.

It passed that milestone last month before the holiday shopping season after selling 895 millions worth of goods the previous year.

The ceo expects mobile to play a bigger role in the business.

We use e-mail every day but could that practice really be hurting productivity?

Anyone with e-mail knows that has to be true.

Justin has worked with people like dustin moskowitz to improve productivity.

They all -- they launched a platform.

He joins me now.

I hate e-mail.

This guy chris we interviewed, covers all devices, he said e- mail is somebody else's to do box for you.

That is definitely true.

When you think about the situation, it is dammed if you do, if you don't. on the one hand, we are so dependent on it to stay on the same page, but every second we spend, whether it is reading an e-mail, writing an e-mail, or sitting in a meeting, all this work about work is time we are not spending doing our job.

And it also is soul sucking and contributes to employee disengagement responsible for half $1 billion in lost productivity.

Symbiosis to do list for you, there are so many e-mails in a corporate environment, initially it, she's -- it unleashes productivity and is still being added to smaller businesses.

But it become such a cya function as opposed to something you have to know.

May be the worst part is you would think after all of that work, spending the time to write all of those e-mails, it would actually have clarity.

You would be able to see your to do list for the today or all of the tasks necessary between the next milestone and the things we're supposed to talk about.

Despite all of that work that went into sending those messages, amazingly we still lack that clarity.

There is no single central trustworthy repository the team can look to to see everything they're supposed to be working on.

Some of the people involved with the internet when it first got publicized in the early 1990's, there was an edict about the responsibility of users.

If somebody e-mails you, it is polite and necessary to e-mail back.

I wonder, at side of user behavior, how do you make a business out of fixing the problem of e-mail?

We built a different software system that replaces the communication functions of e- mail but also combines the task management in the meeting agenda functions.

So you get rid of exchange and outlook?

Those become relegated to second-class citizens in the organization.

Customers say 90% of the e-mail disappeared after a docking -- after ofadopting asana.

Not even those messages were happening and they are saying -- and now they happening in asana, because you can actually see the things we are supposed to be working on, what is the status of each thing, what are the questions on the project, the whole team has a single place they can be on the same page and have clarity.

So many of those messages up, have you started this, are you working on this, just disappear because everybody can see, here is what is going on.

You still have knuckleheads who say, i can't deal with this.

I am busy.

Check with me in one hour.

They respond, i will check with you in one hour.

How do you fight against that user next thing?

A lot of that, what people were doing, they want information.

Instead of needing to go to someone and say, hey, do you have that power point, if you can see, here is that piece of information or here is the status, or know that because they have put it on their personal to-do list, i do not have to bug them.

How do you make that happen?

In the traditional world, you have your e-mail in your personal task list on a piece of paper somewhere.

You are keeping what you are working on and no one else can see that information.

If they want to see if you're going to get to that today, they have to but you in person.

At asana, all of that information is in one place.

So the effect of that is i can see this is on your list of things today.

I don't have to bug somebody and ask them, do you know who was working on this project?

I can let in asana and see this is the person that has the ball on that third that is intense productivity.

Probably to the extreme.

Asana cofounder, thank you.

We will talk some more about this.

Change is coming to twitter.

Creating customized timelines around events.

How will this help the company?

That is next on "bloomberg west.

" ? this is "bloomberg west." i am cory johnson.

Talent agency caa is out of the bidding board for a big agency representing stars like taylor swift and peyton manning.

Five groups are bidding to acquire img.

But was img's price tag too high for caa?

Jon erlichman is back now in l.a. this is a fascinating story i don't think the world knows is going on right now.

It is a great one that ties together the worlds of wall street and hollywood.

You have agencies interested in acquiring another agency, and they have backing from some big private equity firms, ca, for example, had teamed up with tpg and then you have a firm like wme teaming up with silver lake, which owns a stake in wme.

I think price is an important thing, cory.

My understanding is that not only was caa not all that comfortable at 2.5 billion dollars, it was not comfortable at $2 billion.

Price is important when you think about who benefits the most from a deal like this.

We know that caa already has a well-established a sports agency.

So the question always was, or is this a business they can attach to caa?

Sounds like what they would have had to do was bring these two together and that can be a messy process.

Rices what you pay, value is what you get.

I wonder how peter sherman sees the value in this deal.

Peter chernin has teamed up with a hybrid equity firm.

He is one of the more interesting players in hollywood.

He worked for years next to rupert murdoch.

These days he's on the board of twitter and pandora.

He is still producing films and tv shows.

He has been hungry to do one of these larger deals.

He was very active in trying to acquire who luke.

Its owners -- hulu.

Its owners decided they did not want to sell.

There are not always these kind of big sales taking place.

I think the question comes down to who wants the business the most and all of these players do have deep pockets.

Peter chernin, somebody who has teamed up with a private equity firm.

Interesting stuff.

A good one to watch.

Thanks a lot.

Less than one week after it went public in a big ipo, twitter is changing some big things in their business.

Deciding to introduce a new tool that will let users customize their timelines.

Tweets can be organized into different timelines centered around a specific topic or event.

Sara joins us from new york.

This is an interesting change.

Maybe a big one.

Could be a big one.

Twitter has been spending big on r&d. more than half their revenue on r&d in the third quarter and they are really ramping it up.

They are bidding on new product development to bring in and engage more users and recruit advertisers to the platform.

So this is one of their major moves.

It will of course be useful for everyone from tv channels trying to do live events to news organizations trying to cover them.

Would you be able to see multiple timelines in a single page?

Twitter owns tweetdeck where this is going to live.

It is sort of a way people organize their tweets.

They can put them into certain allegories.

-- searching categories.

People curate a special timeline for a particular event and then he can go ahead and embed that on a website, put it where they want, and it will be a stream of what is most important for that topic.

This is interesting to me not just as a user, i am more of a hoot suite guy, but it does occur to me, if you have multiple timelines on a page, you have multiple revenue streams.

And the company could suddenly see an acceleration in revenue growth.

Yes, it is definitely the kind of thing you see a lot of networks trying to do with live tv.

They are trying to promote twitter as a place to go to tweet about.

"breaking bad," what have you.

This is a way for twitter to cement itself as a real-time platform.

Twitter is where things are happening now.

Facebook is a place where things happened a few days ago and people are talking about them.

Twitter is trying to capitalize on that.

Imagine if a network had you watching free broadcast of the same time.

Interesting stuff from sarah frier.

Thanks a lot.

One quick programming note before we go to break, we are looking for entrepreneurs who would like advice on building or launching a startup.

Submit a short pitch fewer than 10 slides including accor and information on your vision and the problem you're solving and send it to our face but page -- our facebook page.

We will review the pitches and we may feature some of them on "bloomberg west>." one startup is bringing gunshot detection technology to school campuses.

That is next.

? this is "bloomberg west." i am cory johnson.

Can technology help fight crime?

One startup is being put to use all across the country.

Take a look.

A shot rings out on the streets of oakland.

Where was it?

Did somebody shoots back?

Was the shooter in doors?

And terry technology solution to the problem of gun violence.

It is a tool for urban police.

Using highly sensitive sensors to capture the sound of the gunshot and specialized software to analyze and locate each incident.

We can say front yard, back yard, near the driveway.

The call comes from here.

Ralph is the ceo of the company that invented shot spotter.

We want to have law enforcement have the confidence to get to that location quickly, get out of their car, and recover physical evidence, often times captured.

Here is how it works.

Sst installs hundreds of hidden sensors in the community.

As soon as the shot rings out, it is picked up by three sensors to try to triangulate the location.

These are each of the centers.

It is instantly reviewed by a team of experts at a command center in silicon valley.

Distinguishing gunshots from regular noise is a challenging problem.

The math problem around locating with a high degree of confidence a specific location within five feet is challenging.

Technology alerts officers on the ground with precise data.

It is a lot more than just an address.

If you are dealing with a situation with 10 shots fired, three from over here, seven from over there, when you push that led to an agency, you want to be able to communicate that.

The technology has been rolled out in 75 communities and in every city, police say the technology has helped reduce confinements -- reduce gun violence.

We were writing down calls for service on a piece of cardboard papered on the center console.

So to have this amount of information responding to a call is potentially life saving.

The sergeant says the data gathered from shot spotter has helped to the oakland police target bad guys with guns.

We use the technology to contain -- to pinpoint a neighborhood that had a lot of gunshot activity, coupled with other intelligence and we served a search warrant where we recovered multiple firearms, including assault weapons.

We made a total of eight arrests on that day.

The technology is one step to making the world a safer place.

Gun violence is a complicated , there is no single solution to the problem.

Sst is the company behind shot spotter.

It is now taking another step with a new product that focuses on schools.

Joining me now is the ceo ralph clark, who you just saw.

Good to see you again.

This issue of school gun violence is hard for me to get my head around.

I can't tell how big of a problem it is.

It is obviously shocking.

When you come up with a new product, what is it trying to do?

It addresses the new normal, the active shooter scenario, we are increasingly seeing in many schools and public spaces.

The fundamental problem with the active shooter scenario it is often three to five minutes before the first calls are made.

After the shooter has engaged.

So it complicated -- it complicates the tactical response.

Experts say minutes do matter with respect to saving lives.

Even the first hours, i am thinking of the shopping mall in kenya.

When there are situations like that when they do not know where the shooters are or how many there are, do you have any idea, you have probably done the work to figure out how much the problem gets in the second half- hour hour.

No question.

The average scenario can last 10 minutes long.

It has always been understood the longer the shooter can engage in his act of shooting incident, he can effectively kill more people and injure more people.

A very quick response and precise response is critical for law enforcement to be able to engage that active shooter and eliminate his killing ability.

How does it work?

We have taken a lot of the silence -- the science we have created and made it work in an indoor environment.

We had to significantly cost reduce our sensors.

We had to get to a form factor that would fit inside of a classroom or an office.

Your sensors are on top of, you did not want to show it in the piece we did, you did not want to figure out where they are, essentially they are on light poles or so on.

Sure, our traditional outdoor capability is outdoors, on top of rooftops.

We like it to be about 30 feet in the air.

It can sit in the middle of rooftops.

It does not require line of site.

The indoor sensor is different.

We have to have it in an office or a building or in a common area.

They are going to be much more visible.

They do not have to triangulation the weight the outdoor sensors do.

They are based on proximity.

Something called proximity mode.

Each sensor has a specific location.

If a gunshot happens in that room or classroom, the sensor will basically activate and communicate that alert through the outdoor sensor which uses its medications capability to send the alert back to our incident review center where an experts will make sure it was a gunshot before pushing the media alert to law enforcement.

In the case of shotspotter, it is a law-enforcement product.

That connection is easy.

If a school has it, do you have to make a separate connection to say we are installing this thing?

We will alert you if there is an incident?

The beauty of our system is we are well known in law enforcement.

We are in almost 80 cities.

When we deploy this technology in a school, we will open up a channel to directly to a law enforcement energy -- agency that can interact or engage the active shooter.

That alert can also go to mass notification systems that a school or campus might have to be able to direct people in certain areas in order to protect them.

Really quick, 10 seconds, has the business of spending exploded?

We don't know yet.

We are very early in the cycle.

We started about a year ago.

Our expectation it is going to be a significant business.

Thank you very much.

The bwest right, one number, jon erlichman joins us from los angeles.

The bwest light, 99,000, the number of microsoft employees will not be evaluated on a bell curve.

Managers will no longer need to break workers on a fix to scale, a policy some have said discouraged teamwork and forced poor scores on good employees to meet quotas.

One strategy, steve ballmer, who is going to be leaving, tried to get everybody on the same page toward a common goal.

One soon to be former employee.

We will see what the next boss has to say.

Remember, you can get the latest headlines at the top of the hower on bloomberg radio and all the time at bloomberg.com.

We will see you tomorrow right here on "bloomberg west." ? .

This text has been automatically generated. It may not be 100% accurate.

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