three production, and whether the car cuts into the sales of luxury cars. and the square continues its banner year with a better-than-expected quarter. we will speak exclusively to the ceo jack dorsey. apple shares soared to a record high after better than expected revenue forecast. the figures calmed analyst concerns that the new iphone may be delayed. apple doesn't talk about future products, but in a phone call with the ceo tim cook, he says it appears that more users are waiting to upgrade due to reports about the new iphone. he said it feels like the rumors are much louder and more frequent than in the past. we do believe that has created a pause. it is likely larger than previously. we broke down the guidance and earnings with the julie ask. >> there is a lot to look forward to hear. on the one hand, the market is going to grow about 50%, so there is a lot of upside in that market. there is a lot more to come. a lot of upside like virtual assistance. there is all of the services they sell, whether it is apple pay. emily: he told me that over the last 12 months, services have become a fortune 500 company. we cannot be happier without that business is going. >> yes, i think they have to be happy about that. it is an important revenue stream for apple as it will be for other competitors going forward. these hardware markets begin to mature. emily: what is your take on the broader apple ecosystem? we focus a lot on the iphone, and we know we are expecting a new iphone in the fall. but everything else is moving the boat, essentially. >> yet. i agree with that. it was impressive that in the third quarter when you saw iphone unit sales be basically flat, that services like store downloads and music subscriptions, that rose strongly. so the question for me, is can the service revenue continue to grow quickly, even if iphone sales don't? how independent services revenue from the iphone? emily: on that note, everyone was focused on this revenue guidance, because it may give us some indication on when the new iphone will start being accounted for in the revenue. what do you make of it? on the one hand, the services could make up for a greater portion of the revenue. but all the other hand, the iphone can come sooner than we think. >> services will move the needle that much in the near term. apple is still a hardware company. 60% to 70% of their revenue still comes from the iphone. that is there is category. emily: let's talk a little better about china. we saw a 10% decline year-over-year, but that decline is slowing. last quarter was a 14% decline. when i spoke with tim cook about china, he said the results were very encouraging. we thought we would improve some, but but ipad results were strong and the services industry was very strong. the iphone on a year-over-year basis was essentially flat, so they feel good. what you make of this? >> no matter what tim cook says, the most important question for apple is, how will the next version of the iphone sell in china? and we somewhat i see, i don't see a lot of encouraging signs. this was the sixth quarter in a row where apple had declining revenue in china. apple got a big lift in iphone 6 sales in china. i don't know what the iphone demand is in china for the next version of the iphone. to me, that is the biggest question hanging over the company. emily: we do look at the rankings all the time and there are those local brands that are now surpassing apple in china. >> one of the things to look at is apple gets 85% to 95% of the profits in iphone as hardware sales. apple is not trying to win the race. they are not trying to be, and they won't be the, the number one smartphone company in the world. the question becomes, how are they doing with china with middle-class or affluent? and if they can buy an ecosystem of devices, is one point. the second thing that will guide how well apple does in china is how well they do with services and the chinese language and providing the services that the chinese population wants. emily: something else that is interesting is that with the new iphone, we are expecting in the fall, we could see a four digit price tag on the highest priced iphone. the one we are expecting will have an oled screen. even as competition in china is rising, the prices going up. are consumers going to want to pay for it? >> i don't think anyone knows what the demand is going to be for an iphone that is in the $1000 to $1400 range. some analysts who follow the market in china, they say price is sort of an interesting signal. that if it is expensive than it is considered a luxury good, and then people might want it more. but, i do not think anyone knows what the demand is going to be like for a $1000 and up iphone. emily: i want to point out a number of things. we saw ipad sales increase. tim cook out enthusiasm for air pods. this is a lower revenue product. they are increasing their production capacity for it and are very optimistic. >> yeah, there has been a six to eight week wait for air pods since they first launched. they should increase capacity, right? it's a good product. the ipad market, that is a little bit harder. everybody is trying to find -- from the business side, is it going to compete with something like the surface or microsoft tablets? it doesn't quite have that functionality. so, it will be a bit of wait and see to see what they do with the ipad in the long-term. emily: last word. even if air pods are doing well, the ipad is doing better. is the iphone all that matters? >> apple is the iphone company for the foreseeable future, yes. emily: in other earnings, sony's turnaround seems to be on the right track. the company reported company profits that topped analyst's estimates. sony sell strong demand for smartphone. they showed a healthy music business, and increasing sales for their consoles and games. we will have more earnings later in the show, including tesla's record cash burn. how elon musk continues to spend big to be more electric cars to the road. plus, our exclusive interview with jack dorsey on square's lending business. and sky high tech evaluations and silicon valley's relationship with the white house. this is bloomberg. ♪ ♪ emily: square's lending business is booming. i sat down with chairman and ceo jack dorsey to ask him about what is driving growth. he talked about square's burgeoning market of customers. jack: we realized recently that we are not really competing with financial institutions and banks and traditional lenders. our average loan size is $6,000. we are competing with people going to their friends and family in asking for a loan. and that is a massive market. emily: i also asked dorsey what he thinks of the skyhigh valuations of other tech companies. take a listen. jack: i am not an economist, so i don't know how to answer that question. we live in a market, and markets decide to evaluate it at this particular thing, so we will always have ebb and flows. that is not something we can control. what we control is whether people want to use something we are building. the answer seems to be yes, and they use it enough that people that asked for recommendations about what tools should they use? trying to get out of this nasty contract, where should i go? that is the thing we control and focus on. emily: you must have a keen insight into the health of the u.s. and the global consumer. where do you see people spending and not spending? and what is your confidence? jack: you know, we see people going to our sellers, and we see people purchasing and those trends continue to be positive. and i think the great thing about square's business is that it is nondiscretionary. so, everything else can fade away, but you have to be able to make the sale. i feel really good about what we are seeing in the economy and how we will continue to thrive and support that. emily: there have been a number of reports about sexual harassment in the tech industry. people have lost their jobs. it is renewed concern about the lack of women in tech. what are your thoughts on that? jack: it is a situation where we have to bring a lot more attention to it. our focus has really been on inclusion first, making sure we are building an organization and an environment, and a company that people feel like they belong, and people feel like they can contribute to. and they feel a part of. we can say that but we also need to make sure that it is not just an environment where people along, but where they can contribute to decision-making. and to make sure they help own our outcome. emily: the gap between silicon valley and president trump still seems quite large. what roles do tech companies play, and leaders like you, jack dorsey, can do in closing that gap? jack: i don't think there is any role that tech companies play. i think the most important thing is to have an open conversation and speak up. if we can't to speak up and transparent about how we feel about policy shifts, we are going to move backwards as a country and as a world. so, that is my role. that is our company's role and our industry's role, but it is every citizen's role as well. i will use my role and my experience to inform what i believe is right, and what i believe is necessary. emily: as somebody who runs a company that most a lot of money around, how concerned are you about not just economic, but political uncertainty right now? jack: well, every entrepreneur or leader has to deal with uncertainty. we have to be comfortable with that. and the economic uncertainty, people talk about is not something i necessarily feel on a daily basis to affect my decision-making. what i am concerned with is the economic disparity we are seeing, not just in this country, but around the world. we will have a very small part, but a part nonetheless, to continue to provide tools for people to engage in the economy and participate in the economy. and we will do our best to do that. that is what we are focusing on to try and help fix. we're not going to do it alone. but we are going to have a loud voice as we do. emily: last question. how does that impact where square goes next? you have been expanding abroad. where to next? jack: we want to go everywhere. we want to be a tool and service that is successful for everyone in the world. we have a lot more friction in our industry because we have to work with banking partners and work with regulators. every local market has its own rules and regulations, so we are going to take our time because we want to do it right. we do not need to be first in market. we just need to be the best option out there. emily: our exclusive interview with square ceo jack dorsey. coming up, bitcoin's big split. how the top crypto currency exchanges are reacting to the offshoot. this is bloomberg. ♪ emily: we spoke with mark mahaney to get his take on what is ahead for tech stocks. market: the demand trends remain consistent. that was our 30th revenue quarter in a row. our 17th quarter in a row of 50% year over year as revenue for facebook. about 20% year-over-year for 10 years for amazon. we have seen very consistent demand. investments are heavy and will be heavy the next year. these companies want to maintain these growth rates and they think they have a lot of new opportunities to go after, whether it is amazon talking about advertising revenue, or it netflix spending money to build its international content library. these companies remain in growth and investment mode. there is no scenario under which margins are not want to expand here. emily: let's talk about advertising revenue. facebook and google still dominate the pie. i mean, is there any room for other players at this point? >> like a snap for a twitter? emily: yeah. that is a big sigh. >> yeah. it is. it is unknown. whether they can get to a couple billion in revenue, probably. we call it the experimental budgets own. they all want diversification from google and facebook. but in order to get much more than that, there is no one out there really getting $5 billion in ad revenue. you have to prove your roi, and come up with innovative advertising formats. snap has a better chance of getting there, but it is starting from a much smaller base. emily: snap has been struggling. are you worried about snap? >> absolutely. we initiated $24. we clearly do not know the stock yet. we will see what happens. emily: you are holding that? >> yes, we are sticking with it, because there are two things that the company needs to do. first, they need to re-accelerate their growth, it is the same thing with twitter. if the users decline, the stock will decline. snap needs to get that growth rate accelerating. they rolled out a self-service advertising solution. they need to do that to get more advertisers on the network and cause their ad revenue growth to stabilize. it is still growing triple digit. it is snap. we think the valuation does not reflect that. emily: do you think they can keep it up though,? >> i think so. one, they are fixing their android problem. they were blindsided. like facebook was, four or five years ago, with the mobile thing. emily: the mobile thing? >> yeah, the mobile thing. the android thing is what blindsided a snap. snap needs to make sure it's app is fully integrated on all android devices. the second thing they need to do to continue to grow at a faster level is to keep rolling out better and better features. snap maps falls into that. i thought that was a pretty cool feature. they have to do more of that. if they do, they will grow. if they do not, then i do not think be a use will flatlined at best. emily: amazon forecasting potential quarterly loss for the first time in a while, being very aggressive about moving into new investments like grocery. are you concerned? >> no, not really. 20 years of growth, investment, losses, gains, i think they have proven -- emily: big bets. >> yes, they are big bets. the best single trend is cloud computing and that was amazon's big bet. they had the third-party marketplace, the kindle family of devices has been pretty good. i think these echo devices, they have a home run on their hands. by the way, groceries is a very large, logistics business, and amazon is logistics. a little bit of concern. over time, they have built up the trust, at least for me. emily: amazon seeing more success. netflix, of course, spending billions of dollars on original content. now you have competitors like hulu now. do you think netflix's burn is sustainable? is it paying off? >> i will not side so much with netflix. we have run surveys. we find that amongst amazon customers, 50% of them are netflix subscribers. of prime users, it is 70% of them. a growing percentage of netflix subscribers. i think what is happening here is the death of the big bundle. and consumers, especially the more advanced internet users, don't go into prime, and they are going to netflix. you got this huge, secular tailwind, the shift over to streaming and netflix is the biggest beneficiary of that. do you know why? they have great content, that is one. the proof of that point is the fact they are going to add more subscribers this year than last year in the u.s. we are not at the end of the s curve for netflix. emily: that was mark haney. history has been made in crypto currency. the number one digital currency, bitcoin, has split in two. the move comes after a long debate over how to scale bitcoin and increased block size. those are the files in which transactions are recorded. causing a new strand called bitcoin cash. caroline hyde joins us from london to explain what is next. caroline: the split is philosophical in nature. it is what they want to see bitcoin become. part of the ecosystem is wanting to see bitcoin remaining a sustained value. a safe, digital asset class. there has been a growing clamor for the scalability to keep up. the fact that transactions have become sluggish and costly. had you scale? and they have been able to compromise, segue up to that in that they have gotten most ecosystems to agree to increase the block sizes by double. from one megabyte to two megabytes. that was not enough for a small group of asian entrepreneurs and investors. they wanted even more scalability, going from one megabyte to eight megabytes. it happened today with bitcoin cash. almost like a stock split in the same way they have the same history, now we have two different currencies going into different directions. instead of fostered on different business models, they are supported by different digital technologies underlying them. the protocol, the so-called block chain is not different. emily: so, what does this mean for bitcoin traders? caroline: a lot of volatility, a lot of question marks, a lot of hand wringing, and a lot of decision-making about if you want to back bitcoin cash or not. what we have seen is not everyone, the whole ecosystem, is going to back this new digital currency. if you own any claim right now, you are allowed to get bitcoin cash automatically. but that is only if you have had your bitcoin stored in the supportive wallet, in the supportive areas and companies that will allow you to have both bitcoin and get bitcoin cash as well. for example, fred wilson, who is a backer of coin base, saying i don't want bitcoin cash. keep it because i do not believe in the underlying technology for now. so, if you are a bitcoin holder, you have seen a lot of turbulence, a lot of companies drawing their coins out of the exchanges, because they are not try to put it into a different exchange. for the time being, you are seeing a lot of people trying to work out where the prices go. i can tell you about three hours ago, the first bitcoin cash, the new digital currency was mined. at the moment, it is trading at only about a 10th of the price of bitcoin original. emily: he is bullish about other cryptocurrencies. what is next for bitcoin? will we see more offshoots? caroline: it is interesting. this happen to ethereum. last year we saw a division, a so-called hard split. that is why you have a theory and and classic. will that be the demise of bitcoin cash as well? many are saying we could see a new precedent being set. could we see more and more? do we have a more impenetrable bitcoin? many felt, overall, this was the joy of bitcoin. now, that is been undone. that is the key question, can this keep on happening? the strongest will survive. emily: bloomberg's caroline hyde there in london. coming up, tesla just rolled out the model 3, starting at $35,000, but will it attract the masses? we will discuss. a reminder, all episodes of "bloomberg technology" are live streaming on twitter. check us out. this is bloomberg. ♪ . emily: welcome back to the best of "bloomberg technology." i'm emily chang. tesla started deliveries of the long-awaited model 3. the company said it has taken more than a half a million orders of the electric vehicle with people forking out deposits of $1000 each. so, will it be -- will of the car live up to the hype and appeal to the masses? take a look for yourself. >> the very first tesla model 3. 30 new owners are getting the keys to their cars tonight at a celebration at the factory in fremont, california. the big challenge will be keeping up with demand. the model 3 was unveiled to great heights last year. tesla's inroad to the mass market with a base price tag of $35,000. elon musk has reaffirmed they will be turning out 20,000 model 3's per month by the end of the year, and 50,000 by the end of next year. even elon musk admits it will be a hard task. elon musk frankly, we are going : to be in production hell. welcome, welcome, welcome to production hell. [laughter] where we are for at least six months, maybe longer, i look forward to goingg alongside you through hell, and if you are going through hell, keep going. emily: some say the model 3 could be as transformational as the iphone and it may well be the most daring feat yet for elon musk. will it be just another electric car, or a car that will change the future of all cars? days after that event the company reported record earnings, including a record quarterly cash burn rate. it almost doubled the $622 million it went through the first quarter, up to the lead up to the model 3 roll out. covering all things tesla as details of earnings emerged. >> it was a beat all across the board, they spent less. they said they were going to spend a lot but they spent less than investors had feared. they started installing the solar roof. model 3 investments are through the roof. they installed the solar roof. the fears of cannibalization were not as realized. that have seen an increase in the x sense of the -- since the 3. emily: let's talk about the cash burn. i am looking at the bloomberg. tesla spending $1.6 billion in the second quarter. >> they have signaled they would spend heavily to bring the model 3 to market, so they still have $3 billion in cash on hand to to get them through the end of the year without having to do any kind of race. emily: let's talk about production. he did say over the weekend when they unveiled the model 3, that he would be going into production hell. what to does a trip through hell mean for investors? >> well, i mean, the trip through hell is on everyone's mind. what does he mean? is there a supplier issue or a snafu? there was nothing in that any earnings report. we will probably hear a lot about that on the analysts' call. emily: he is saying they can get through 5000 model 3's a week by the end at this year? is that possible? >> that remains to be seen. the cars that were handed over two employees friday night were largely handbuilt so now they will begin the true beginning of mass production. 5000 a week from 30 or 50 is pretty steep. everyone is wondering what the ramp looks like and are there any potential roadblocks. and what does he mean when he says hell? they are sticking to the aggressive timeline. half a million cars in 2018 and a million cars by 2020. emily: let's talk about inventory. are we seeing any signs that demand for the model s or model x is softening? >> that was the fear when they released the sales figures this month they were on a drop, you see the rise of inventory on a balance sheet. what they have said is they want to get more model s and x's, out to stores. some stores are operating without any fleet models, and they need to have extra cars for test drives. that is an interesting question for the call today. is the rising inventory something to be concerned about or are you making sure that your showrooms have the latest and greatest? emily: and the upcoming semi truck? the model y. any new details? >> the model y is a crossover. they are looking forward to adding the semi to the fleet. they are supposed to unveil it in late september. emily: and what about solar panels, the solar roof, as well as gigfactory. what are we learning there? >> they have started to install the solar roofs on the homes of some employees to fully test the before they roll out. it is interesting to figure out what is solarcity at this point? is that a brand going away? there was a mention of this project in australia, which is a big energy storage project for south australia. emily: when it comes to more than half a million deposits, what is the likelihood that all those orders for the model three comes through and are completed? >> it depends how long you are willing to wait and whether you will qualify for the federal tax credit or not. right now, you get up to a $7,500 tax credit on an electric car, but that begins to ratchet down once tesla hits a certain volume. the big question is, where are you in line? how important is that tax credit to your pocketbook as you make this purchasing decision? if you live in a part of the country that you will not get the car for another year, can you wait that long? emily: uber is getting more competition in bangkok. according to reports japan's , line is expanding its taxi service to the city. the company will start offering it by the end of the year and will team up with the bangkok taxi cooperative network and initially operate 20,000 cars. coming up, hyperloop one gets a step closer to its futuristic transportation reality. we will talk to the cofounders about this historic tech. and we speak to airbnb's global head of risk management on what the platform is doing to garner public trust. this is bloomberg. ♪ emily: hyperloop one just completed the second phase of testing in the nevada desert. a prototype accelerated reaching 192 miles per hour. the pod glides above attract using magnetic levitation in a nearly airless to limit aerodynamic drag and allows for a top speed of 760 miles per hour. we spoke with the cofounders about what this means. >> we are now 300 people strong. the last 2.5 years of starting the company has been about improving the technology. it works now, we have shown the one isne does hyperloop and that hyperloop real and works, and now the move into the dawn of commercialization of hyperloop. so, as all the travels we have been doing in the conversations and dialogue and studies of governments around the world, we have shown in the videos you saw, the actual full-scale hyperloop working with the pod, xv1 traveling at incredible speeds, , faster and faster. and now, we move on to the commercialization process of actually building this out around the world. emily: so, sherman, i have the ticket you gave me. [laughter] emily: to ride the hyperloop. when will i be able to use this? >> um, sooner than you think. but keep that ticket. that is a very special tickets emily. , you're guaranteed to have a ride on the hyperloop of hyperloop one. that's a promise for me and josh. emily: so josh, what is the timeline? when blue have it open and running for cargo and passengers? it's have to make sure them be reliable for 30 plus years and get it into a mass -- we have to make sure it is reliable for 30 plus years and we have to get it into mass manufacturing, that is what is next for us on the engineering side. and we think we will be able to do that by the 2020 one timeframe. emily: sherman, how do you overcome cost barriers and safety concerns? sherman: that is a great question. basically, the way we have architected the hyperloop is to make it the cheapest, fastest, safest, cleanest form of public transportation in the world. the way we have designed it, the reason it can be cheaper is that the motors we designed only have to be on the line every 30 kilometers, where as other solutions have continuous maglevs and motors that are way more expensive to operate and maintain and build out. so, what you will see in the future, that is very similar to what we have seen with paris and brussels being connected with high-speed rail, there are not even any flights between those two cities anymore. everyone is taking the high-speed rail route. what is interesting about hyperloop one is that our solution essentially will be an ip solution and a control system and automation solution. so we really want to engender thousands of companies around the world that are building these hyperloops around the world using our technology. emily: now, elon musk is the one who came up with the original white paper on hyperloop technologies and he has already said that he does not want to commercialize it. now he has the boring company and he just tweeted "just , received approval to build underground new york, baltimore, d.c., new york to d.c. in 29 minutes." what do you make of this apparent push into hyperloop with the boring company? sherman: hyperloop one is vary -- is very focused on getting the real hyperloop out to the world. the world is a very big place. infrastructure is difficult to move forward. you need collaboration of governments around the world. we have been in deep discussions with governments for a long time. and we can build it over ground, underground, tunneling is just one of those solutions. it is also very expensive to just do tunneling. we want to have a multi-modal solution and spread that around the world. emily: so, we are hearing from sources that elon musk may want to build all the components. what would it be like to go up against him? sherman: we are very -- we are being able to do this in 2.5 years, have 300 brilliant minds -- we are very focused on execution. there is probably many, many partnerships in that space to be pursued. emily: so, there has been some turnover, particularly on the tech and engineering side. how are you handling that? josh: we have had no shortage of people interested in working with us. we just brought in a new head of hardware engineering who came from google x as well as a new software lead starting in about a week and a from now. half so, we are seeing candidates knocking down the door. emily: the cto moved on and there was a lawsuit and i am curious, what you learned from that experience and how you are moving forward? sherman: you know, we are incredibly focused, as josh said, on building the real hyperloop, building it around the world as we have shown with the xp one pod, traveling at those speeds and breaking these speed records. we are very focused on the future, and that is all we care about. emily: talking about the future, sherman, i have to ask you, you are one of the earliest investors in uber. what are your thoughts on travis kalanick's recent resignation and who do you think is the right person to lead the company forward? sherman: i think uber is one of the great companies of our generation. it impacted the world and the scale of its reach, it has lessons to teach and that historic run. it is the fastest growing company in history. at those speeds, they will have some friction and they have taken that a very seriously. and i think it is one of the greatest opportunities for an incredible leader and ceo to get to come in, and help lead a company that is at the forefront of where transportation solutions are going. emily: that was hyperloop one cofounders sherman and josh. airbnb is taking big steps. the peer-to-peer hospitality site plans on doubling down on three key areas. safety, connection and a support. airbnb continues to combat complaints on its screening process for host and guests. we spoke with nick shapiro. nick: there is a crisis of this trust right now. -- this trust right now. people are trusting less in institutions and trusting in each other more. and airbnb was designed specifically to build that trust. we went back and looked through how we can leverage that new phenomenon and that is when we started to come up with that hierarchy of needs and, we need to facilitate that trust. emily: so, what does that make? you are using technology to facilitate it. nick: yeah, absolutely. first and foremost, people need to know they will be safe. they need to feel safe. we do a number of things to use technology to do that. we risk assess each reservation. we run global watchlist checks. against him of our users worldwide and we background check hosts and guests in the u.s. just being safe is not enough. we use technology to build connections. there are detailed profiles. there is a messaging system where you can learn more about each other and there are reviews to look at previous history. that, people need to know that they are not alone. airbnb is there for them. so if they get to a listing, and it is not what they wanted or as advertised they have someone to reach out. emily: you have a national security background. i am curious about how your experience informs to what you are bringing to airbnb, and how you can complement that? nick: great question. airbnb, the tech sector sharing economy is filled with some of the most optimistic people in the world. emily: exactly. nick: brilliant. and also very optimistic. i come from a background and bring a different light to that. i am way more cynical. it is because of the previous experience i have had. but i think a healthy dose of cynicism, optimismith the right that engineers bring to the table and brilliance is a good partnership. emily: the hotel lobbying groups are upping their attacks on airbnb. there is one recent ad connecting the platform with terrorists. how do you respond to that? nick: it is disgraceful and a disrespectful and despicable. i know people who have lost their lives. people have fought very hard and to have an issue like that politicized to make a business point, or to continue to price gouge their consumers, is very hurtful. safety is the number one priority at airbnb. trust is the fundamental currency in the shared economy and what we focus on the most. we do things like background checks. hotels don't do that. emily: talk to me about these background checks. there was a recent report of a woman who was a guest who was saying she was sexually assaulted by a host and she claims that a background check would have revealed that this host had been arrested in the past for battery. he denied the allegations. you know, how are you handling this case, and what do you actually tell guests about their hosts and vice versa if something is flagged? nick: that is a good question. first, let me say, the behavior this woman encountered allegedly is abhorrent. as soon as she told us we , removed the host from our community. we offered her our full support. background check was done on the host in question, and there were no prior convictions. when you do a background check and there are recent charges but to no convictions it , is hard to hold someone accountable if they were acquitted of an offense. emily: is it making you think differently about the process? nick: every incident should make you think. one incident is one too many for us. safety is our number one priority. we are always going back and saying, should we have done something differently? we are going to do that every time something happens. emily: lastly, you are getting into these magical trips, and connecting actual people who are going to take you around for a more well-rounded experience. this is increasing the amount of time that guests will spend with these people. what does that mean in terms of trust and safety? nick: you know, i think what it means is we need to work extra hard to peel back the curtain and let folks know what we do to help build this trust, and what we do to keep them safe. we want people to make informed decisions, and want them to know that when they are signing up for an adventurous experience, we cannot eliminate all the isks, but what he can do tell them is that what we do and make sure they make the best decision for themselves. emily: that was nick shapiro. coming up, facebook is betting big on hardware. how it is incorporating ai into a video chat device, next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app. this is bloomberg. ♪ emily: facebook came out with numbers on instagram this week. the company says its young users spend an average of more than 32 minutes a day on the app. for 25 years old and older, usage is more than 24 minutes a day. instagram is crediting much of the growth and engagement to its story feature which was launched a year ago in answer to snapchat's similar feature. instagram's version has more than 250 million daily users. facebook is said to be developing a video chat device for the home. it would mark the first major hardware product for the lab. the product could be announced as soon as next spring. we spoke with sarah frier who worked to break the story and julie, principal analyst at forrester. >> this is going to be basically video chat, facetime, as you know it, on steroids. it will be a big screen, the size of a laptop on a stick in your living room. that will have a really high end camera, that will allow you to talk with people as if it is a more immersive experience. one of mark zuckerberg's goals for the future is to bring people closer together. this building hardware lab, they want to come up with technology that would prevent us from having to be tethered to our phones. that we could be in a physical environment, and enjoy our lives, but still feel like other people can share those moments with us. that is the high level. emily: julie, do people want a device like this? julie: i think facebook has to make a play in the hardware space. if you look at where the future growth is going to come, you know, we have 33% of consumers using some kind of virtual assistants or a device in a home today. 33% using something like voice and 8% using a hardware device. voice services and services like facebook are absolutely critical to future digital experience and facebook has to make a play or be left out. emily: sarah, what else do we know about what they are working on? and how they position themselves against google and apple and that is coming out with the ipod? -- that is coming out with the homepod? sara: first of all, this voice touchscreen device could get a lot more fancy. you could add a 360 degree camera. the camera they are working on has this center technology that can lock in on things that move. say if your grandmother is calling to talk to your kids, he can hold up a painting, and the camera will follow it. the other thing that facebook is working on a something similar to the google home and alexa devices you are talking about. a more simple speaker that can use facebook power and the ai system they have been working on. we have heard from our sources that kind of thing could be killed considering the competition in the market right now. emily: ok, julie, if all four tech giants are doing the same thing with slightly different tweaks who is in the best position to succeed or is it anyone's game? julie: it is still anyone's game. everyone has their strengths and weaknesses. building hardware is not hard but assembling services and doing voice with language generation understanding is very, very, hard to do. google knows a lot about our day-to-day lives, apple has a great connected ecosystem of products, amazon knows about my shopping and music habits, facebook knows about my social media habits. emily: facebook doesn't make hardware, right? julie: it is hard to do. they do not make hardware come and it is very, very hard to do. the secret here is in the set up for ease-of-use. and how well it is done. this is hard to do. only 8% of consumers have one of these devices, and it will be something that we will find in every one's home in the next five years. emily: that does it for this edition of the best of "bloomberg technology." we will bring you technology throughout the week including earnings from snapchat. remember all episodes of bloomberg technology are live streaming on twitter. check us out at bloomberg tech tv. that is all for now. this is bloomberg. ♪ ? >> the thrill of living well is in the pursuit, the pursuit of the rarest experiences, the pursuit of the finest products, the pursuit of quality in everything you do. and in all of these pursuits, you need the best intelligence to make the best decisions. >> we know that she sells for a lot, but what makes her important? >> it isn't easy. it is difficult work. >> welcome to "bloomberg pursuits," where you find information that helps you to follow your inspiration. in this edition, how to make the most of a visit to mumbai. >> welcome to mumbai. nice to meet you. >> how to choose the sports car that suits you perfectly. >> this car has a lot er

Related Keywords

New York , United States , Japan , Nevada , Australia , Mumbai , Maharashtra , India , Paris , France General , France , China , Bangkok , Krung Thep Mahanakhon , Thailand , Whitehouse , District Of Columbia , California , London , City Of , United Kingdom , Chinese , Fred Wilson , Nick Shapiro , Jack Dorsey , Emily Chang , Josh Airbnb , Emily Chang Tesla , Bloomberg Emily , Bloomberg Caroline , Bloomberg Tesla , Caroline Hyde , Tim Cook , Netflix Emily ,