Pencil. Is it a laptop killer . All of that ahead. It is all apple today. Ande revealed the iphone 6s new features including 3d touch, a camera and live photos that come to life. We also the most influential apple watchers with me included True Ventures partner and cofounder of june and former apple engineer. A lot to talk about. I want to start with the event. You gave it a seven out of 10. Get to 10 isay you with steve jobs. He is not there. They did a good job. There were too many things. Parts and good lacking in some places. Little off. As a from a product standpoint, solid upgrades. Emily an iphone company and lets start with the iphone. I got to try out the two new fonts. I saw the rose gold. Why do you think, not a huge Design Change . There are Little Things that are significant. A couple of interesting things. When you look at the product line, people say they look the ate but apple said redesigned. It starts with the chip. Things are they are doing with the chipset to bring about capabilities and the games, i cannot believe those games are happening on a phone. And that camera thing is driven by the hardware changes. Live photos to even the 3d touch not on iphones. You look at what is unique about the phone. A is not just a typical s upgrade. They did so much that makes it stand out. Not just appealing to apple owners but switchers. The trend we are seeing in our data is Record Number of android switchers. They are prepared to position and cater to new users. Emily some of the features. The camera. Front and back got an upgrade. Live photos and screen will serve a flash. Which i like. What strikes you about the new cameras . One thing to think about is for the last few generations, apple has not up the megapixels. Now 12. Phone 4s, it is a long time without what a lot of people do not see newvery generation adds Sophisticated Technology and thats why the pictures get better. Numberuch a meaningful because it is 50 more pixels and 50 in the same sensor size. They have advanced Sensor Technology to do that. Know appleprobably more. What do think about the new Camera Technology . How significant is it . When i try to live photos, i was excited when i thought about my kids. Om malik the thing about the camera what ever apple does with the iphone is basically if you are a company which makes ,roducts which are not highend you are kind of out of business. Nintendo is really in trouble. I think all of the pointandshoot cameras, that market is going to the smartphones. Mys probably better than camera right now. Cant wait to try it. It is that good. Emily i think it will get better. Om malik people like of those kind of gimmicks. I think there is something, the quality of the images is far superior than i have ever seen from my phone. Emily what about 3d touch . I am not sure why they changed it. The whole a new way of interacting with your phone. In email butopen if you press more deeply, it opens more shortcuts. Ben bajarin theres not been any huge upgrades. All of the gestures they have brought advance the first big upgrade or new interaction. That is why i think it is significant when you look at the multitouch and developers took advantage. Crated newapps and ways to interact with software. Of those and iwo would expect more. Things that developers can take advantage of and to do things quickly. Get too deep layers without going into the app. Eliminating five clicks and deal with one click. Those little conveniences are nice. In terms of the technology to make this all work . Nikhil bhogal that technology has existed for a while but to take that and massproduce it and finetune it so the User Experience comes out great is the challenge. Apple has consistently been great. Emily are these updates going to drive sales . Phoness 74. 5 million shipped in the holiday season. i think is a well. From our data, the research we are doing, staggering numbers of people considering to switching. The market is maturing where those with a low end phones are looking to move up. Fullyot think people grasp how big opportunity is and make the point 27 iv end of the quarter. Still a huge number. Selling to new users in ways they have not. All of those things compound. We are bullish. Emily ben bajarin, om malik and nikhil bhogal. Thank you so much. Great to have you here. Year, selling, on apple was a mistake. Own apple was a mistake and this year it is amazon. The online retailer has to mitigatethe most losses in the s p 500 this year. Amazon is enjoying a perceived safe haven when investors want nothing to do with emerging markets. Fromget 50 of revenues north america and is less exposed than its peers. Apple had slumped in china. , stock we are watching netflix. Shares rising. Saying itell will expand into hong kong and south korea early next year. Ceo said he hopes to get it into china. Last week they start in japan. Complete a Global Expansion by 2016. That have subscribers in over 50 countries. , chinabased Internet Retailer rising for a second straight day. Jd announcing a twoyear by that of up to 1 billion. Betting china will do more to stimulate its economy. Up next apple tv. Break down the first big update since 2012. Emily we have breaking news. Boosted revenue outlooks for fiscal year 2016 and thirdquarter revenue exceeded estimates. It said is surpassed 50,000 customers and the ceo will be on our show tomorrow. Up with apple and i want to focus on the tv because we saw the first significant update in three years. He even changed his shirt. Fromts as a gateway netflix, hulu, hbo, and itunes. Her Party Developers will be intimate apps for the tv operating will be able to make apps for the tv operating system and the remote got an upgrade. You are saying thank goodness, it is about time. Do consumers need their tv to do everything their iphone and ipad can do . Joining me as founder of simco and om malik and ben bajarin still with me. Do i want to shop and plan my vacation on my Television Set . Definitely, you want to shop. Emily of course i do but does everybody . Om malik this is the big thing people missed. Cofoundering at the making the presentation. My addiction problems are way worse because now you can see video. It is not like a or highfashion is perfectly shop mobile on a big screen. That is huge. The other thing is it allows the experience of shopping to be a social experience. People in the same room can interact, the idea of you shop together and that is hard to do on a device. Wishes to buy furniture, she will have me huddle over the ipad and we will go over options. Now you can relax and sit back and have friends and discussed, does it look good . You can put it on the screen, what apple just showed you is you have laptop space and desktop space and wall space. Apple in these different spaces will get used differently. What we see, so far it does not andt on wrist space everywhere else. Safari have a proxy. Browsing is off limits in these places or does not make sense. It is going to be a different space. Apple bank emily tim cook set is the golden age for television but the viewing sprint has not changed. Hes at the future of television is apps, is it true . Ben bajarin i think so. It has never been a platform for developers. Most of us if you live in developed country, their hardware is pretty terrible. No getting around how bad it is pretty is like having a platform that developers can take advantage of. What would you do if i gave you you could do things with the mic on the remote . What will their developer still . That is the hook. Really seen a big Developer Community take advantage of the big screen because they never had a platform. Emily i am excited about the Search Capabilities that i could tell the remote to find me new shows. But, tv, apple tv has been a niche product. Cannibal, a major product . Can it be a major product . The hardware has not changed a lot. It is not an expression of where this market it goes. It has been the hardware. Even conversation about commerce, it has been bad. Not had interactive commercials because the hardware has been so bad. We have need hardware. Maybe were not there yet but it are trying to put the pieces together. The new apps as part of the skeleton. Emily a steps toward it. I will take a contrasting position. I think it is a transition a product. Tv is on the big screen, changing channels, watching apps, the same thing. That kidse belief growing up today are watching, consuming video on the phone and the phones are like tablets. And that is where the future of television lies. I do not think it lies in the big screens. Going to be for our generation and maybe two generations behind us. To 15, they eight are growing up and think about you to whenever youtube and apple is very good at redefining the current paradigm. Ok, this is great. Lets see how people do things now and figure out what will happen later. And i will say it is a good are notfor people who of the next generation. In om malik and ben bajarin and horace dediu, you are sticking with me and we would talk but the monster new ipad. Staying with apple, tim cook is attending a tech summit hosted by the Chinese Government in seattle later this month. The chinese regulator has invited several executives to a forum. Has confirmed he is attending. It will coincide with president xi jinpings first day visit to the u. S. And amid warnings from washington and could hit Chinese Companies with sanctions for attacks for trade secrets. Apples new partnership with a french powerhouse. Which designer is going hightech with apple and the apple watch. Why apple is betting on the ipad pro. Pro ook this is the ipad powerful ipad we have ever created. It is amazing, advanced technology and innovation. Emily time for the daily byte. Todays byte is 1100, the starting price of the hermes strap for the iwatch. Apple is partner with the french luxury brand to create a leather strap for the model and special faces that represent traditional hermes watches. If you want the hermes strap and watch face, only 1500. To the ipad. The larger ipad to attract Business Users and also musicians, designers bring apple said the ipad pro is faster than the 80s 80 of pcs shipped and comes with a stylus or apple pencil. Will it jumpstart demand for the ipad . From outsideat idc the apple event and horace dediu and ben bajarin and om malik with me. Ipads, putht his 2 together, it shows the size of the new ipad pro. It is huge. Horace dediu approximately 2 ipass. Quite a bit more to get the full size. What you end up with is essentially dual screen capability. You can simulate, as an analyst, we love this, data showing apple versus microsoft. Andould do a sidebyside see changes in the behavior of the companies. Aat is just like going from bathtub to a swimming pool. It is all containing water but just so much more room. Emily john, do think the ipad pro as a to bring ipad sells back to life . John i think it is enough to move the needle a little bit. We were expecting it. Some of the capabilities that horace dediu is demonstrating right now. It is priced at the same as of the surface pro three and really this is, the Enterprise Market and according to intel about one billion pcs and the world poised to be refreshed. A big market to fight for it. I think the jury is out if there is enough here in this product and certainly some innovation here. Whether there is another to submit it and move the needle forward in a material way for apple. Emily a much retweeted from steve jobs who said if you see a helus, they blew it . Is turning in his grave . So. Alik i think a company that is becoming mediocre in terms of marketing and not being clear. It was a mediocre emily mediocre . You have a problem with that . Om malik let me finish. The stylus was for a reason. The ipad met having a whole new set of gestures and class of applications. To being swung back mediocre from that standpoint. Big screen are not, it does not make any difference. The stylus is a step back but does because it is added one more layer of over low to the complex device that is out there. Vehemently disagree. The difference between the pencil and the stylus is the silence was meant to act as a pointer, replacing a mouse. Of ais in the sense tactile object that conveys the sense of the hand on the screen. The difference is it is never intended to be about addressing the screen but allow you to draw. That is why its called a pencil and not a stylus. You cant live your entire life without it and you have emily if you press more deeply om malik it is all about semantics. I learned a whole new set of gestures, interactions with the device with a 3d touch. More gestures and bring in another device to add more complexity. From that standpoint, maybe on the extreme end of it but i feel it is not a great move. So market changes and consumers are more savvy. Set,product is a diverse. Rtists now have a tool if you try it, it is really good. There is a market. Not every body. You do not have to use it. People love the ipad today and can benefit a note you do not have to use it. , not steveelieve me jobs way. Emily we have to leave at there. Steve jobs changed his mind many times. , horace and ben bajarin dediu and john jackson, thank you for joining us. We will watch to see how the sales of the holiday quarter. A big announcement from apple. That does it for this edition of bloomberg west. Dont forget to watch the box ceo tomorrow. John him john heilemann. Mark and i mark halperin. And all due respect to Hillary Clinton you seemed to have learn from a master. Literally it was like a pledging conference. We literally had to break into a meeting. Literally. Literally. Literally. John on the show tonight, the former Maryland Governor martin omalley. But first, the rally. Some sort of vote is going to happen on the