Meet the Galaxy Gear: Bloomberg West (09/04)

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Sept. 4 (Bloomberg) -- Full epsiode of "Bloomberg West." Guests: Samsung's Ryan Bidan, Wedge Partners' Brian Blair, GigaOm Founder Om Malik, Lookout Founder Kevin Mahaffey, Blogger Sonny Dickson and Bloomberg's Nicholas Thompson and Ari Levy. (Source: Bloomberg)

Live from pier three, welcome to the late edition of "bloomberg west," where we couple of -- cover the global technology companies changing our world.

Let's get straight to the rundown.

We break down the pro and cons of the newly announced galaxy- geared to smart watch.

Linkedin has been a poster child for a successful tech ipo was shares quadrupling since it's published debut now linked and plans to raise another $2 billion through another shale sale -- share sale.

He claims to have the inside scoop including pictures of unreleased apple devices including the new iphone and he joins us live to explain where he got it.

First, to the lead.

The smart watch race is on as samsung beats apple to market . the galaxy gear was unleashed today at its event in berlin and new york.

It goes on sale they also unveiled the note 3 with a 5.7 inch screen and more accessories.

There is also a new 10.1 inch full-size tablet.

How do the new products look and feel?

Jon erlichman was at the event and had a chance to check them out.

A good to these events and they are always interesting and full of energy.

Sometimes the hype gets you away from the actual devices but the real story will play out as people get a chance to hold these things and see what they were.

Here's more on that part of the story.

Like with any big new product announcement there are two sides to the story from samsung.

They will likely get top marks for coming out with cool products that may be arguably have early adopter advantage.

Here is the smart watch, and it will be available very soon.

There's lots of speculation that apple will be moving into this business and samsung can say we have something you can buy today.

The cool factor is this.

Compared to the galaxy note 3 there are a lot of interesting things you can do.

You can initiate phone calls and talk your watch, send texts and e-mails.

You can access facebook and twitter.

There's a lot of different stuff you would normally be doing with your phone or tablet that you could now do with this watch but here the other part of that story.

The best bang for your buck comes when it is paired with the note 3. if you add up the price of buying two products, do you really want to do that?

They're coming up with this device that works best when paired with this other device simply to get a leg up for the competition but not really ready of a full rollout of the smart watch.

Looking good with all of the galaxy gear.

How did it feel?

Did you think it was something you would want to wear every day?

I think people would feel totally comfortable wearing it.

You interview the founder of heavily and people are getting very comfortable wearing devices and they've always been wearing watches so it would not a much different.

It does not team that their son.

People are used to google glass.

I do think that an apple and samsung you have two companies at both moves quickly but have very different strategies.

Samsung seems like they want to get this out and get the quick reaction and get another one out almost as quickly whereas apple probably doesn't feel the pressure to necessarily change course just because there are markets . this is a device that right now only works at it's best if you buy the tablet they just unveiled, the note.

If you could buy and appeared with an iphone immediately maybe it would have been a different story.

I want to bring into the story nicholas thompson, editor of new yorker.com and joining us from stamford connecticut, brian blair who covers samsung and he was also at today's event.

It also tried the watch out and you love this thing despite the naysayers out there who say maybe there is just too much in this one watch.

Why do you like it so much?

It's an incredibly elegant device.

It's nicely made.

It looks great on your wrist and it has a beautiful 1.6 inch amoled screen.

Pebble has limited functionality.

It is monochrome.

It does a few things well like notifications for text messages and e-mails.

This is that watch plus 10 years.

This is a huge leapfrog over that.

It has apps.

It has a companion you can really customize really well.

They are not calling it a watch.

It is a wearable device.

The reason i like it is because it looks great and it's a really nice companion to the smartphone.

This is a way for us to bring a lot of those core functionalities in a way that is much more intrusive than i think google glasses.

The google glass for him was not easy and natural.

That's why i like it.

I think it will be very popular.

Nic, what do you think about the product?

Is this the next big thing?

This is the beginning of the smart watches that came out after that.

It works when it's paired with your phone and it has pretty limited battery life and it doesn't do the thing -- why would you buy a watch?

Why would you replace what you can do with your phone for your watch?

One, quick notification.

For caller id, that's a great feature.

It's constantly in touch so you can do all kinds of health things with it.

It does a lot of notifications stuff that it does not do the health stuff that watches will eventually do win the features they talked about like making a phone call homophones are really good at that.

Impressive that i got it out there first, i agree.

It looks cool.

This particular watch at this particular price with these particular specs paired with the phone will not end up changing the world.

Here's the thing.

It it has a number of fitness applications built in.

There is a running application and a few fitness apps that come right with this so they will be there out of the gate.

299 is the price point next year, 199. the price will come down.

This will sell tens of millions of units but not right out of the gate.

It's going to change and i'm sure we will see a nap that's going to work on other android devices by the end of the year and that is what will get this to 5 million and 10 million units globally.

This is the first inning.

We're going to see these watches for the next five years and we will see the space evolve in a meaningful way.

I can lot of people who were naysayers, they were wrong a year or two later, you will make the same comments about the smart watch category as we go ahead.

What about the fact that sam sun beat apple to the punch ? we have reported they were working on iwatch, does that matter?

We both agree it's in the first inning.

He thinks they had a homerun and i think it's only a single.

It's important that they beat them to to the punch for perception reasons.

There is a perception that is spread through the press in litigation and the fact that samsung rep toffee iphone.

Whether you agree, that is public.

Obviously, they are not going to take ideas, but it does help in the public imagination to say, the first watch came from sam.

It matters.

If you think about the mp3 category, there were mp3 players for years before we ever saw the ipod and that will be the challenge of whoever comes along in the space.

Apple, lg, qualcomm that will be a watch that they hope that other oem's takeover.

It will be who finds the best outbound that is what we touched on earlier.

There is a lot of functionality in the big question -- what is the big feature to bring in big volumes . brian blair, nicholas thompson, jon erlichman, don't go anywhere.

More on the moment including the samsung ceo tried out a steve jobs catchphrase after the break.

? i'm emily chang.

This is" on bloomberg television, streaming on your ipad, and on bloomberg.com.

Samson is not the only company getting into smart watches.

Qualcomm will be settinglling one called the talk.

It will let the wearer get notifications to a connected phone.

It will only go on sale in the u.s. in limited numbers and will retail between $300-300 $50. more on the samsung released today on the samsung notes 3. broadway style shows and dance performances are common.

Back of me to discuss this are jon erlichman, brian blair, and editor nicholas thompson.

How did this event compared to other samsung events and to the apple event the same to be different -- event?

This seemed to be different.

People made a few jokes at their expense tied to this.

There's a big gathering of executives central for a company like samsung.

Why not check times square to get people to try out these devices?

They see a jumbotron handing out some sam sun hats.

-- samsung hats.

It's getting a little tired, the presentation we have seen.

How can we be different?

We covered the launch of the moto x. a very low- key event, eric schmidt with a small group of journalists.

They want to be different.

They want the event to stand out as much as they want the event to stand out.

One thing they did it differently with the simultaneous events in new york and berlin.

When everyone is talking about is the head of mobile dropping a line right out of the book of steve jobs.

Let's take a look.

Now, we will learn about the new galaxy note 3, galaxy gear, and companion devices.

There's just one more thing.

When he said "one more thing," i got a little bit more excited and it turned out to be a 10.1 inch tablet.

If you're going to say that, you better have a really good "one more thing." i was on samsung's side of patent litigation but they should sue them for trying to rip off the event.

Apple should sue the entire tech industry.

Going through the features one by one, building it up, and now samsung has an event not only like the classic capital events but they use that line and it does not lead to a jet back at the end.

It was delivered earnestly and with humor.

Brian, get in on this.

For all of the positives, they do not have a steve jobs-like icon.

How big a disadvantage is that?

It would be nice if there is a single point guy.

It's not a huge disadvantage because at the end of the day it's about the product and samsung is better at marketing down almost anyone else out there.

They are doing a fine job even if they over did the last event and people made fun of it, it still got a vast amount of global press.

The galaxy s4 still went on to sell tens of millions of units.

It would be great to have a point guy, it would be nice if they could find that person.

The pressure is on apple next week.

Do you think they have taken any of the wind out of their sale today?

They have not.

They mentioned it earlier but they will be recognized as an important first mover in this smart-wearable category.

They established that today and it was critical.

Next week, i don't know if the event will while people but people will be very impressed with this iphone 5c. the variable from a tech respective if it has the fingerprint sensor from their acquisition last year and what is the capability?

Is there a larger e-commerce play behind it?

The pricing of the 5c will be the number one question asked.

The other stuff, i think we pretty much already know.

Brian blair, bloomberg contributing editor brian blair -- nicholas thompson and our own jon erlichman.

How important was it that sam sun beat apple to the wearbles market?

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

I am emily chang and this is "bloomberg west." you can catch our early edition at 10:00 pacific, 1:00 p.m. pacific.

Sam sun is aiming to change this by preloading software from mobile security software look out on all the new phone models.

That includes the galaxy note 3 announced today.

Jon erlichman attended the launch and joins us now from new york with more.

Click security tools like this could give them an edge as they go after government contracts and business customers.

For more on this, let's bring in lookout mobile chief officer kevin.

Good of you to join us.

How did this partnership come together?

We've been working with samsung for a little while.

Ever since we learned from their big investment in securing mobile devices for businesses, we knew it was a great partnership because we both have a vision of allowing people to use their phone to play angry birds at the same time as using business apps and data safely.

We found the ricin technology we have that complements their compartmentalization solution really well and it's been a great art shipped so far.

Give us an example of the kind of stuff you are ultimately protecting the samsung users from.

Absolutely.

The number one issue is phishing attacks.

Lookout is going to be integrated into the container to protect users from unsafe websites as well as other forms of attack that might compromise security.

A great story by one of the bloomberg reporters today that people should check out on the web which basically sends the message that pcs for the most part come preloaded with all sorts of security tools.

I think they said something like 70%. for smartphones, it's such a small number comparatively.

The story suggests that people have this false sense of security with their phone.

What have you found as you have built up a business and you talk to people> people hate the security products on their pc.

It pops up telling you to be afraid that your computer is at risk if you do not buy a subscription.

With mobile devices, user experience is so important and companies who have the best user experience win the marketplace.

One of our goals is to make sure that security is something you want on your phone and not something that you tolerate.

It is my prediction that in the next three years virtually every mobile device will have the option of security as you purchase.

With companies like google for example, when the search experience changes and you start using new devices, what about security?

The fact that we are moving to new devices whether they are glasses, wristwatches, is a complicating matters from a security gecko -- security perspective?

It is changing particularly for businesses.

At first, they lock down their desktops or networks so that you could only visit and install certain software but now we have a world where people use phones, watches, sometimes cars that all interact with sensitive personal data and bringing insecurity and a world of devices with dual roles as making it a really complicated world where old models of simply locking it down will not work.

This is where we are investing very heavily working with our nurse like samsung as well as carriers like sprint, t-mobile, deutsche telekom, orange to make sure that these connected devices are the same level or better.

Kevin, thanks for your time.

Jon erlichman in new york.

As a disclaimer, my husband works at the mobile.

Linkedin wants to raise $2 billion in a new teixeira sale -- in a new share sale.

Also -- ? you're watching." -- you're watching "bloomberg west." james packer has bought a larger stake in the real estate website zillow.

He is betting big on the u.s. housing market which hit a five- year high in early home starts.

The samsung has unveiled a smart watch and sony has its eye on wearable computing.

They can interpret hand gestures.

They plan to further develop chips so they can be used in self driving cars and medical equipment.

The tech blogosphere is talking about a video that accidentally featured an unreleased feature of the new google nexus phone.

It is bigger than the ones already on the market.

They have since taken down the video.

Linkedin has filed to raise $1 billion in a new stock sale offering twice the size of the company i the oh and it comes after linkedin shares up more than quadrupled in the past few years.

Ari leavy covers startups and he joins me now with more.

Why are they doing this?

You look at a fivefold run-up in the stock and you're able to to sell a tiny number of shares and raise money and twice the amount of money.

Money is never free, but this is as close as you get two free money.

They are able to bring in $1 billion at a time when interest rates are rising.

It's actually cheaper for us to sell equity than it is to sell debt, different than those who preferred the debt route.

Is that what they are aiming for?

They are shooting for $1 billion and they are selling a certain number of shares.

They will ultimately raise about $1 billion when this is over.

What are they going to use the money for?

Does this mean big acquisitions are on the way?

It's hard to see which companies they would buy.

They have a rich stock price and there may be some companies that would be more interested in the cache the stock price and now we have the cash to go after $200 million deals because they have that 800 $50 million on their balance sheet.

Linkedin has performed better than any tech ipo but are there any risks here?

Sure.

You're going in at roughly 240 dollars per share and the stock is the third worst -- $240 per share and it is the third highest tech and were hoping on a multiple on that price.

It needs to go to 300, 400, 500 and this is already rich stock that needs to increase further.

Ari levy, thanks so much.

Samsung unveiled its new smart watch, the galaxy gear, and it would be near the launch of the new smart phone.

How important was it to beat apple to the wearable computing market?

Jon erlichman is back with more.

Think of the pr buzz google is generating with its own wearable device, google glass.

For more on marketing this product, i caught up with director of product marketing at samsung.

I asked how long the road has been.

Many think about the impact event and how long it takes to get here.

When we launched the galaxy s4 it is one and done at radio city music hall.

How do we want to per trade this in the world?

But there are processes along the world.

We're constantly working on these devices and we are working on the galaxy note 3 as we finished the galaxy note 2 so it's a constant pipeline of innovation.

It is not just sitting down to take a deep breath.

We are constantly innovating.

Right after the first, onto the next.

You you are wearing your very fashionable lxe gear and you have the latest note -- galaxy gear and the latest note device.

If you want to get some of the features tied to what you can do with a watch, you have to have a note 3. explain what that means.

Quick sure.

If you look at the wearable category of smart watches, there are a lot of common elements.

Quantified self things like pedometers and then things like notifications which delivers its from the phone to the device.

We want to do something different.

We want to create an ecosystem where you can use them in tandem.

If you have your galaxy gear a loan, you can take pictures, shoot 80 oh, obviously find out the, run standalone applications -- shoot video.

You have the ability to get notifications, upcoming appointment alerts.

I can lift up my notes and it will take me to that.

You call me and i get the notification here.

There are lots of cool stuff that leverages the interaction between the two.

The year itself is priced at $299. -- the gear is $299. when can i use it with other samsung devices and other devices period?

To be truly successful it is to be compatible with everything out there.

It is extending the smartphone experience to your wrist.

We are not talking about launching a watch.

We are launching a companion device for your telephone.

Expanding your note capability and making it easier to access.

The model for us initially is in about -- isn't about the standalone device.

It is an extension of the smartphone experience.

There are some devices already out there.

There has been a lot of pebble about apple getting into this business.

Do you think coming out with this device now helps you with this messaging?

We are out here and we have something in the market right now.

We characterize it as relentless innovation.

We want to bring them in as quickly as possible so not resting on our laurels.

Where the galaxy note 3 embodies the latest available smartphone technology, the gear has the latest wearable technology.

Because you have the latest ideas we are bringing to market as quick as possible it helps to reinforce the innovation story.

They may not necessarily feel the innovation back into the smartphone when you start talking about different form factors.

People really start to notice.

That was ryan bi dan, director of product marketing from samsung.

For a while now, now we could see something apple tv related as early as next week.

More on that next.

? i am emily chang and this is "bloomberg west" on bloomberg television, streaming on your ipad, and on bloomberg.com.

Bloomberg news has received these exclusive images of jeff bezos leaving the offices of his new company.

He agreed to bought -- by "the washington post," and his first visit to see the editors was this week.

A new phone will be unveiled but could apple also debut something new having to do with television?

My next guest thinks that maybe we could.

We have been talking about samsung.

How impressed are you with the things that were unveiled today, the watch in particular?

You already know what's going to be on the show.

We broke the watch story on gigaom.

I was off on the processor speeds and such.

This is a very nice way for samsung to get ahead of the news curve and get ahead of the apple news because when it comes, it is talk of the town of a very long time.

Mostly because they do interesting things or they do not.

They have a way of capturing a momentum in that sense.

From a product standpoint.

The galaxy line of phones and tablets are interesting and obviously they sell a lot.

I was a little underwhelmed by the watch.

I would not put it on my list just yet.

I am an analog watch and i think there is a certain quality there.

I did not see that from the galaxy gear.

I don't think i needed.

$300 is expensive even though i'm happy to spend much more on a watch.

I just did not think it grabbed me that i would run out and buy it.

Should apple be worried?

They should be worried about what they are not doing.

They start worrying about samsung, sony, microsoft.

We're expecting apple to to unveil at least one iphone.

There might be a new apple tv.

The set top box.

This is not the apple tv, that unicorn we have been talking about for months and months.

Do you think it actually exists?

Or could this unicorn be simply a better version of the set top box we have now?

A lot of the rumors around apple, half of them are true.

They were talking about the iphone long before there was an iphone.

They were talking about the ipod long before there was an ipod.

There is an iwatch and there is a tv.

The timing is a little hard to predict.

As someone who runs a prominent blog, how do you do with the rumors and speculation to separate fact from fiction?

You have sources.

If you've been doing it for a long time.

You here from certain people and you kind of have a mental check list and some things just don't make any sense.

I did not have enough information.

A lot of the speculation gets out . how big a problem is it that an apple tv set is not out yet?

Yet there are smart tvs and watches out there already.

There were a lot of tablets before the ipad launched.

You do not need to get distracted by what other people are doing.

That is the number one thing apple has to do.

The second thing is i feel apple as a company has lost a bit of a grip on its own storyline.

It cannot control its own message as well as it did during the steve years.

They need to take a step back.

How do we go back to taking control of our own story?

Is it because steve is not there?

I don't know why that is.

The majority of the reason is that there is a missing storyline is because steve is not there.

He was a central character to the apple storytelling.

The storytelling is very important and i think they need to find a new way of telling the story.

Honestly, that's not the right way we are thinking apple but also how do we tell the story?

They preannouncing products without really having a product.

We will be watching next week.

You will be watching next week as apple unveil something.

Om malik from gigaom, thank you.

Tomorrow on "bloomberg west," talking to the ceo from smart watch pebble.

That is tomorrow on the early edition of "bloomberg west," 10:00 a.m. pacific, 1:00 p.m. eastern.

Are these photos of the next iphone?

One tech blogger and australia claims to has his hands on a yet to be released apple phone.

He is here next on "bloomberg west." ? welcome back.

I am emily chang.

This is "bloomberg west." and blogger in australia has been posting pictures of what he says are new iphones and other unreleased products.

He joins me now via skype from melbourne.

Sunny, i looked at the pictures on your blog.

You think these are pictures of the new iphone that's not out yet?

They are.

How do you get these products?

They come from the supply chain like foxconn and all of those.

I get people to get them for me and then i release pictures of them.

Workers at foxconn give you the products?

Yes.

They take pictures.

I would get the parts sent to me.

Why would these people give his products to you?

There are legal implications.

I pay them.

And then you sell the products afterwards?

Who do you sell them to?

People who want to do videos on them, stuff like that.

How did you get into this?

I don't even know.

I just stumbled on it.

Other products that you have seen yet?

The gold iphone s, maybe a gray one.

They are doing the 5c in all 5 colors.

That will be coming out next week the people really have not seen much of.

I saw that on your youtube channel.

This seems to be a tremendous interest in seeing this product.

Has anyone from apple ever contacted you?

No one has e-mailed me yet.

I'm just waiting.

How much do you pay for these products?

About 250. u.s. dollars?

Yes.

For $250 you can get an iphone 5. are you at all worried or nervous about the legal petitions -- implications?

A bit.

I don't know what's going to happen.

You have your own youtube channel supported by ads.

You sell ads on your website which is fairly well trafficked and you also fix iphones and ipods.

You make quite a good living.

You could say that.

Anything tv related?

For apple tv?

It should come in a few weeks.

We will be checking in with you.

Tech blogger in melbourne, australia.

Check out his blog.

It is time now for the "b-west byte," the one number that tells a whole lot.

The number of one.

That is how many days of battery life you will get with the samsung galaxy gear . like your phone, this sucker needs a charge and often.

I pointed highlighting this is like with any new device, whether it is a smartphone are watch, it takes a few weeks of figuring out living with her to know with the experiences like like.

Battery charging is an important part of the story.

The pebble watch as a few days of charge.

We will speak to the founder about that tomorrow.

Thank you all for watching this edition of "bloomberg west." we'll be back tomorrow.

? .

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

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