First, to our lead. Apple is already facing production delays for the topoftheline iphone x. The delays come to two problems with the 3d sensor manufacturing process. Reports say makers of the components used facial recognition are struggling to reach adequate production levels. Bloombergs alex webb gave us the details. Alex what we know from the report yesterday, there were problems with the three sensors. That is causing delays. The wall street journal cued off that. They dug into it more. The sensor which projects the infrared interface which maps your face for the apple 3d facial recognition system that apple has. We dont know the extent to which how many phones are on the shelves. Emily to what extent do we know how all of these things are going to impact supply . Alex going back to the start of september when apple unveiled the phones. The iphone 8 and the iphone x, as far as i know, they staggered the releases. The iphone 8 is already on shelves, and you can go out and buy one right now. There is a sixweek window until the iphone x, because we knew there were some problems with the oled screen. Apple said those delays were taken into account when they made their projections. The current quarter, the one that ends on the 30th. We dont know to what extent the 3d sensor delays were taken into account when they said the release date would be november 3. If it was, investors dont have anything to worry about on this front at least. If they did, they might be in short supply come that day, and they will not able to meet demand. That might be a cause for concern. Emily could this be or give us some answer as to why the release was staggered with the iphone 8 last week and the iphone x is not out until november . Alex it could be one of the factors. There are only a handful making these oled, organic lightemitting diode displays, which give the sharper display for the iphone x. There had been some problems getting the 3d Sensor Systems working. We were not aware of the extent of the issue. We are looking to see what the case is. The problem seems to be in the module makers. You have all of these different components that are pieced together to make the three sensor package itself. The Sticking Point seems to be there. The delivery of those components, they are doing ok. Its the module assembly, those, and south korea, and the japanese company, which is owned by foxconn, those seem to be the basis of the issue. Emily tim cook was the supply chain genius. He probably knows more than anyone at apple. At this point, theyve been working on the phone for months, if not years. Why wouldnt they be able to stockpile some of these components . Alex it speaks to the fact that people have been worrying for a while about the extent to which they are able to deliver blockbuster advances in smartphones anymore. Apple is really trying to push the envelope and get the technology available. The iphone is the bestselling smart phone in the world. Samsung sells more but there are a bunch of different models. Because it is the bestselling in the world, and they are trying to do this cuttingedge technology, a lot of these companies are not yet at the stage where they can deliver all of the components necessary. On some of the Conference Calls over the past couple of months, they have had a big Capital Expenditure as they tried to ramp up production and meet apples demand. Clearly, that has not been a success as anticipated. Emily all of this is coming at the same time that the iphone 8 is out, and people are complaining about features not working. What do you make of that . How could that impact sales . Alex there is always a little bit of that. The launch of any product, there are teething problems. Usually, most of it is solvable with a software patch. We had the watch last week that had some connectivity issues. There have been some problems of crackling audio. I literally got my iphone 8, so we will have to see if that is the case. Apple has said they will be able to remedy it with a software fix. I would not worry much about those things as an investor, at any rate, it is the supply rate which is a much greater concern. Emily amazon has found its hardware calling with the amazon echo. The tech giant held an event in seattle to unveil a number of new products including alexa accessories. The product revamp shows the tech giant will not back down to the likes of apple or google. Bloomberg techs mark gurman attended the event and joins us from seattle. Mark this is amazon stepping up to the plate and heralding itself as a major Consumer Technology player. It is no longer just apple and google. Amazon is saying they are here now and they stepped up their smart home game. They have several new echo speakers are in. Emily mark, you review these products, how does this stack up to google home and what apple is planning to unveil in december . Mark google has their home speaker. Its the center of their smart home world. Apple has their home pod speaker coming out in december. That will become the center hub of their smart home world. Around those products, have other devices, apple has the apple tv and the iphone. Google has the pixel phone and their tv products and other operating system, android. What amazon is saying is we are going to make the smart home our category. We are going to take over every part of the home. Not only do they have a smaller, midtier speaker, but they have a new and a speaker that allows you to connect to appliances in the network. They have a new fire tv product and a new echo spot. That really stole the show. It is 130, halfcircle device. It will have a 2. 5inch screen. It is like an apple watch screen. You can get video calls from it and watch video and listen to music. Read lyrics, get contacts, learn about your day, your calendar, your weather. Amazon is coming out with smart home devices and speakers for all parts of your life. You alluded to the bmw partnership. Amazon is trying to stick alexa wherever you are. Emily do you think we will see more partnerships in the future . With other carmakers, for example . Mark this is the third one. They announced partnerships with volkswagen and ford at the beginning of the year. We have not seen many new models with the alexa functions as of yet. Bmw was on stage at the event today. At the Seattle Office you see behind me. They talked about how some of the new cars will come out in the middle of the year with alexa. It is interesting will someone buy a new car just because it has alexa support in it . I dont think its going to drive sales or new purchase intent for consumers on the car side. But it certainly is a big win for amazon, being able to get somebody in their home driving home, they can just say, alexa, whatever, and they can buy it through their car. Its a big win for amazon. Emily in using amazon alexa, it certainly has the cool factor. But alexa still gets confused sometimes. It seems the Voice Recognition has a long way to go. Did amazon address any of that today . Mark we saw a lot of new functionality on the developer side. They introduced a lot of firstparty products. In terms of functionality, they are relying on third parties. There is new deep integration with other devices, like lights and thermostats that you have in your home. There are new ways to integrate your life, there are new echo buttons that have games that connect your home speaker to alexa. There is ways to go in this voice space. There is a lot of ai stuff they are working on. There is a presentation that is going on now. I am missing that, but it is worth it, totally worth talking to you. [laughter] emily they are teaming up to develop self driving cars. The automaker and the ride hailing a service announced they will share data to develop a system needed to design affordable driverless automobiles and get them onto local networks and eventually get them onto lyft networks. This move comes as fords rival bought a stake in lyft last year. Those two companies are still considering other options to expand ridesharing. Coming up, ellen pao opens up about her public fight against sexism in silicon valley. We will hear about life after the court case. This is bloomberg. Emily dyson, best known as the manufacturer of vacuum cleaners, will build an electric car by 2020. Founder james dyson said tuesday emily dyson, best known as the manufacturer of vacuum cleaners, will build an electric car by 2020. Founder james dyson said tuesday that the company is investing 1. 3 billion to develop the car, plus batteries to power it. Dyson said his electric car would be radically different from those being designed by other carmakers, including tesla. Ellen pao continues to make headlines. It has been five years since her trial became one of the most prominent cases of its kind in silicon valley. While she may have lost the suit she helped start the conversation of a gender inequality. She has written a book about her experience called reset my fight for inclusion and lasting change. I talked to her about rehashing things now. Take a listen. Ellen so many women and men came up to me and told me how much my story had inspired them, and how much it gave them comfort in the experiences they had. How they connected it with them. I wanted to give them all the facts, give them the whole story, and see if i can help other people through writing the book. Over time, give the inspiring ending to what was a terrible experience, that you can get through all of this and continue and have a career and move forward and also try to change tech and the business world. Emily you wrote in an oped that though a lot has not changed, the one thing is people now acknowledge sexism in the industry. Do you think the outcome would be different today . Ellen i do not know if we would be here if we had not filed suit, so it is hard to say. We have changed the conversation. No longer are women forced to defend themselves, so its much easier for people to say ive been harassed or discriminated against. People believe it. If it hadnt been for the women who came after me and shared their stories, would we be where we are today . I think someone now has a better shot. Emily we have seen so many allegations, a rash of Sexual Harassment stories in Venture Capital, uber, has any of this surprised you . Or are you just not surprised at all . Ellen most people familiar with the highest level of tech and Venture Capital have heard the stories. I think what has been surprising is so many people now have come forward. It started with a bunch of women who came forward in the last few years and with susan fowler coming out with such a detailed and specific blog post and her being accepted and not being taken down, that has opened the door for more people to come forward and changed the conversation. Emily Ubers Travis Kalanick has resigned. What went wrong at uber . Ellen early on i dont know the details. What happens in companies, you get this culture and you want to be harddriving, and you want to push and break the rules. That ends up not being limited to the business side. It goes into your interaction with employees and your peers and the people who report to you. You dont think the rules apply, and you do whatever you want. That ends up breaking down into legal areas. Emily what responsibility do vcs have . I dont know what it is. Letting the bros or bro culture run wild. Ellen i think they have a huge responsibility. The investors have a responsibility for letting the Venture Capitalists run wild. The problem is, you have got the fox guarding the hen house. You have people who dont have clean hands who are trying to manage people and tell them youre not supposed to do these things when they are doing them themselves. As a board member, you have a huge responsibility to the employees of the company and the other shareholders to make sure the company is operating within the bounds of the law and is building a culture that will help it be successful and that is diverse and inclusive, because we know that has better financial results. Emily you go into detail about the boys club environment, what you experience at kleiner perkins, and not just sexist jokes but racist jokes as well. If the culture is that broken, can it be fixed . Ellen i dont know if the Bigger Companies and the older funds can be fixed. I know in working through project include and capital teams, there are ceos, founders that are committed to diversity and inclusion, and they want to build companies that include everyone. That are tied to the community and the customer, and theyre going to build the best product. I have a lot of hope. I believe that the next generation of companies that are successful will have this inclusivity across all of their activities. I dont know about the ones that have been around for a while and talk about lowering the bar, as you have heard. Finding that next white, male nerd. How do you change that attitude . Emily youre referencing a comment that mike morris from sequoia made to me a few years ago. Venture capital firms like sequoia, they have one of woman partner now. Do you think these maledominated firms, are they actually going to be surpassed if they have the best returns and the best reputations . Ellen i know a lot of women and people of color who will not go meet with them because they dont think they will be treated fairly. If you look at the language, i am lowering the bar to bring in people from different groups, they dont think women or other groups are equal to the men they typically invest in. How do you work for somebody like that and let them invest in you and expect to get the same out, as other people . Or as you would get with a different investor who actually believes you are capable and as likely to succeed as other people . Emily that was ellen pao. We will have more from our conversation with ellen later in the show. Coming up, facebook is making a larger push to attack advertisers as it is broadening its Media Coverage as President Trump calls out the company for fake news. We break down the new media landscape. China has a new warning for whatsapp. We will discuss the status of the messaging service and what that means for facebooks inroads into the country. This is bloomberg. Emily Facebook Says it has had success fighting fake news. They launched an effort to combat fake news with new things. While the right wing alternative for germany made historic gains in the election, they said in a blog post that these actions did not eliminate misinformation entirely in the the election, it did make it harder to spread. The level of false news was low. Sticking with facebook, President Trump is taking aim at the social network, saying they were always antitrump. The networks were also antitrump. The tweet comes after facebook reveals will turn over the 3000 political ads that were bought with russian money in the president ial campaign. How will it affect facebooks push to attract advertisers as it broadens content offerings . Gerry facebook is making an aggressive push to take away advertising dollars from tv networks. They Just LaunchedFacebook Watch, and there are a lot of Online Publishers that are producing content for that. That is where this is big push, a 70 billion market for television advertising. Facebook wants a piece of it. Google wants a piece of it. The tv networks, they have the lions share of that. There is a shift to digital. Emily are they concerned about the news and the russian issue . Advertisers . Gerry absolutely. Advertisers are extremely conservative. They are concerned about their brand being next to something that is controversial. Youtube had a problem with that earlier this year. Advertisers are very concerned about their content showing up alongside fake news as well. Emily ben, what is your take . Ben i am hopeful facebook is successful in shaking some of that money out of television. That is the model we are building a group nine, creating content for these platforms, in advance of the money showing up and knowing that consumer attention has shifted there. Ad dollars always lags consumers. Over the next three years, you will see money start to move more and more from tv into where people are spending time, which is mobile specifically. Emily facebook and google are gobbling up that time, how much is left over for Companies Like you . Ben when you look at how tv has traditionally been bought, advertisers are buying from the cable networks. In digital, you are buying from the plot forms are other than media brands. That is problematic as a media brand. A shift is happening now and it will take a long time, as facebook and google, snapchat and twitter as well, are looking at that 70 billion in tv and wanting to get it, they have to place more value on premium content because that is so important to advertisers. In meeting that, they need to share some of that pie. That is what facebook has done with the launch of watch. Theyre starting to pay creators for content. They are doing more to share advertising. It is still early. Also the competition between these platforms is important. When youtube was the only show in town, publishers have no leverage. Now with multiple platforms sort of competing for premium content, it is a good time to be a premium content creator. There will be a huge business, although it will take time. Emily you guys have a show called the comeback kid. It doing very well out here. Ben we have 24 shows. Emily what engagement are you seeing . Ben comeback kid is the number one show on Facebook Watch so far. Were seeing over 20 million views per episode, over 20 million minutes of viewing per episode. You can all that up to almost anything in linear tv. An enormous scale. Granted, all of our shows are not the number one show on the platform, but collectively, in less than three weeks we have had over a hundred million views, half a million followers to the shows. If the Linear Network tv version of a tivo subscriber to a program, we are building engagement and are pleased with the early results. This will shake out over an an extended period of time. Emily gerry, do you think the Traditional Networks will embrace Facebook Watch . Or is it a wait and see . Gerry i think its waitandsee. You talked about trump and Media Companies colluding, my conversation w