Samsung Holds First Global Developer Conference

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Oct. 28 (Bloomberg) -- Bloomberg's Cliff Edwards reports on Samsung's first global developer conference. He speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

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

Samsung is hosting its first global development developers concert -- conference.

It is stepping up its effort to compete with apple.

For more on the conference, let me blink -- bring in cliff edwards.

I think they really feel because they are so tied to the google android operating system and there are so many other competitors there, it needs a way to stand out.

They need to have stuff on top of the operating system that is samsung only that makes people want to buy samsung product.

How do developers feel about samsung?

What challenges do they face?

The big challenge they face is the challenge everybody faces which is -- people go where the market is.

They go where the most sales are going to be.

That usually ios first and then android and they try to -- it is a shotgun approach.

Samsung is trying to marry devices of a want you to be able to use your samsung phone to turn on stuff on your television or use your phone to play games and bring those games your television when you get home.

Tim cook has said that apple paid $13 billion to developers.

How does that compare to samsung?

Are they paying that much?

No, they want to.

They are going to focus at this conference on spending money marketing and supporting you and they want developers to know that we are a cash cow and will spend some of that on you.

I believe they signed a deal with the nba?

That's a huge win for them.

It is a marketing thing.

You will know samsung but when you see celebrities and stars and whatnot using the devices, you definitely think that maybe you should, too.

What does that mean for apple?

Apple does not make a push for these type of things.

They are pleasantly surprised they say when these types of devices are used by stars and whatnot.

They are like your buddy else may say if you want to use our stuff, but it.

Cliff edwards, we will watch for your reporting on this developers conference today.

Twitter kicks off its 10 day road show today starting with a stop in philadelphia.

The company will have to woo investors by pointing to the 230 million users that brands are eager to reach.

The twitter focus on ad sales could pose a problem.

The companies operate in costs are growing faster than revenue because of restrictions on outside developers.

By shutting out the startups and programmers, twitter has to depend on its own talent to create new products and services him and driving up costs.

The r&d spending jump from last year.

Is this business model sustainable for twitter?

Let me bring in ari levy.

Explain how twitter is different in this situation than apple, google, and facebook when it comes to outside developers?

If you look at the others, you are talking about portals.

Games and outside apps come to their applications in order to spread -- to get users.

Twitter does not have that effect.

People come to twitter to look at messages and share messages and what other people are saying they have not a good out -- but they have not figured out how people will spend money.

Because of that, twitter has had to focus on advertising almost of the exclusion of everything else.

They don't want to let other people get a piece of that advertising revenue until they figure out their own business model.

Facebook, google, and apple have relied on outside developers to keep their own cost down.

Is what twitter is doing sustainable?

It is certainly a risk in that you have to continue to pay developers and incentivize them to stay.

In silicon valley, developers are incredibly expensive.

Investors are betting on this company.

They should be betting on long- term growth.

What the developers will bring to twitter is escape velocity.

They will figure these things out before anyone else can.

By spending so much money on r&d, they will scare away a lot of competition.

They said we will spend half of our revenue on research and development and no other companies willing to do that.

Part of that cost goes into actual talent, the people they are hiring.

At any other tech company successfully had a similar model?

Typically where you see high r&d costs at emerging tech companies are on the enterprise side like his miss software.

They spent a lot on r&d and sales and marketing.

They have to know their product for big corporations as well as get into their hands.

These are the types of products where you cannot see any level of failure.

You don't see a lot of examples on the consumer side of company spending half of the revenue on r&d. ari levy, thank you.

We will be covering the roadshow starting today in philadelphia.

He helped build baidu into the fifth largest website in the world part i spoke to robin li in my exclusive interview coming up next on "bloomberg west." ?

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

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