Apple's iPhone 16 Demand Decline and EU Tech Regulation Changes

Apple faces declining demand for the iPhone 16, raising concerns about its market position.

### Tech Trends: Apple Sales, EU Resignation, and TikTok's Legal Battle
* 📱 Weak demand for the new iPhone 16 Pro model has been reported, with initial sales **dropping 13% year-on-year**, causing market panic.
* 📉 The NASDAQ 100 has seen a decline after a five-day run-up, with analysts noting **concerns regarding Apple's performance** and external factors such as the **situation in China**.
* 🇪🇺 In the EU, a key tech enforcer has resigned, prompting speculation about the **future of digital regulations**, as Ursula von der Leyen pushes for a **gender-balanced commission**.
* ⚖ TikTok is set to challenge a U.S. ban in court, arguing that the law **infringes on the First Amendment rights** of its **170 million users** in the U.S.
* 🔒 The U.S. government claims TikTok poses a **national security threat**, raising questions about how courts will balance **free speech against security concerns**.
* 📉 In the aftermath of recent developments, shares of Trumpet Media fell following a **security incident involving former President Trump**.
* 📊 Companies like Boeing are also feeling the pressure, considering **hiring freezes and furloughs** after a recent strike.
* 🌐 As competition in the tech sector intensifies, the landscape continues to evolve with **new partnerships, regulatory challenges, and market fluctuations**.

>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY, WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. COMING UP THIS HOUR, WEAK DEMAND FROM THE NEW IPHONE 16 PRO MODEL. ED: PLUS, THE MOST INFLUENTIAL TECH ENFORCER OF THE EU RESIGNS. CAROLINE: AND THE BATTLE WITH THE U.S. GOVERNMENT BEGINS. FREEDOM VERSUS NATIONAL SECURITY. WE CHECK IN ON THE MARKET THAT IS CURRENTLY SINKING, PERHAPS NO SURPRISE, WE HAD A FIVE DAY RUN UP IN THE NASDAQ 100. WE FALLEN ACROSS A REBOUND IN

MEGA CAP BIG TECH. TODAY, MONEY COMES OFF THE TABLE. AND THERE'S A KEY PLAYER IN THE SECTOR, ED. ED: YEAH. IT IS A DOWN POINT ON THE SIDE. SECURITIES INTERNATIONAL OUT WITH A RESEARCH NOTE, SAYING INITIAL SALES OF IPHONE 16 GENERATION THE PRO, 37 MILLION UNITS, A DROP OF 13% YEAR ON YEAR FOR THE FIRST WEEK OF SALES, THAT CAUSED SOME PANIC IN THE MARKET. SEVERAL OTHER ANALYSTS NOTE OUTSIDE TODAY, CITING CONCERNS FROM CHINA, THE TIMING OF APPLE INTELLIGENCE. ONE COMBER VOICE IS BLOOMBERG REPORTER ANURAG RANA. ANURAG: WE HEARD APPLE WAS TALKING ABOUT INCREASING THE MODEL BY 10%. SO THINKING ABOUT A LOT UNTIL THIS POINT, WE THINK IT IS

STILL TOO EARLY TO BASICALLY CALL THIS, SO WE WILL WAIT ANOTHER 30 DAYS, 35 DAYS. HERE ARE SOME OFFICIAL COMING FROM APPLE ONE DAY, ACTUALLY ANNOUNCED THAT OUR TO REALLY FIGURE OUT WHAT-- CAROLINE: CAN YOU GIVE US CONTACTS AS TO HOW MUCH YOU LOOK AT TS SECURITIES AND HOW MUCH THIS PREORDER DATA FLUCTUATES WITH REALITY? ANURAG: IT DOES SOMETIMES FLUCTUATE, SOMETIMES THERE ARE SPIKES IN DEMAND. IF YOU LOOK AT IT FOR A 12 MONTH CYCLE. IT COULD VERY FOR QUITE A BIT. THIS IS THE BIG QUARTER FOR APPLE. THIS IS WHERE WE COULD SEE SOME JUMP IN CHINA. ON THE OTHER CITED COULD GO THE OPPOSITE WAY IF CHINA IS WEAK. THERE IS SO MUCH DEPENDENT ON THE NEXT 30 TO 90 DAYS, MORE

THAN JUST THE FIRST THREE DAYS. ED: ANURAG, AWAY FROM THE EARLY PREORDER DATE OF IPHONE, OTHER ANALYSTS TALK ABOUT CHINA IN THE CONTEXT OF DOMESTIC COMPETITION. NOW THAT YOU HAVE SEEN WHAT HUAWEI HAS TO OFFER, HOW DO YOU MODEL THAT DOMESTIC COMPETITION IN CHINA? ANURAG: THERE WAS A BIG SPIKE IN DEMAND BECAUSE OF HUAWEI RELEASING THE 5G PHONE, AND YOU COULD SAY THERE WAS A REFRESH ON THAT CYCLE IN THAT BRAND, BUT APPLE HAS TO FIGHT QUITE A BIT NOW TO GAIN MARKET SHARE IN CHINA, AND IF THERE ARE GOING TO BE ANY DISCOUNTS ANYWHERE IN THE WORLD FOR CHINA, WE THINK IT WILL BE CHINA AT THIS POINT. THE NEW PHONE THAT CAME OUR WAY, I DON'T THINK IT DOES

DAMAGE TO APPLE IPHONE SALES, IT'S TWO DIFFERENT CATEGORIES, FRANKLY. CAROLINE: WE ARE SEEING WEAKNESS TO APPLE AT THE MOMENT. WHAT'S THE NEXT DATA POINT, WHAT'S THE NEXT READ WE SHOULD FOCUS -- FOCUS ON? ANURAG: WHEN THE COMPANY ANNOUNCES RESULTS IN, YOU GET SOME OFFICIAL COMMENTS AS TO HOW THE PREORDERS ARE, THAT'S FAR MORE IMPORTANT. THE SECOND THING WE WANT TO SEE IS WHEN ARE THE AI FEATURES COMING OUT AND WHAT IS THE BUZZ AROUND IT? THAT CAN CHANGE CONSUMER SENTIMENT VERY QUICKLY, IF THERE ARE COOLER THINGS THAT PEOPLE CAN PLAY WITH AND DRIVE THE SALES AS WELL. CAROLINE: ANURAG, SO PLEASED TO GET, AS ED PUT IT, YOUR CALM VOICE ON THE SHOW. PIVOTING TO THE EU, THE TOP LEGISLATION FORCES HAVE

RESIGNED. THE LETTER POSTED ON X OUTLINED THE SURPRISE MOVE, SAYING FRANCE WAS ASKED TO PROVIDE A DIFFERENT NOMINEE OF THE EUROPEAN COMMISSION, WRITING THAT IN LIGHT OF THESE RECENT DEVELOPMENTS, FOR THE TESTIMONY FROM QUESTIONABLE GOVERNMENTS, I CAN NO LONGER EXERCISE MY DUTIES. FOR MORE, JOHN PHILIP PACELLI FINDS US FROM BRUSSELS. HE HAD A KEY HAND IN SHAPING THE RESPONSE TO A SEEMED TO BE THE GROWING POWER OVER U.S. TECH. WHY IS HE OUT? JOHN: SEEMS TO ME MOSTLY BECAUSE HE AND VONDA LINE DIDN'T GO WELL TOGETHER. IF YOU READ THE LETTER, THERE WAS A DEMAND FROM FRANCE -- THAT FRANCE, BECAUSE OF PERSONAL REASONS, HE WASN'T

FAMILIAR WITH. BRETTON HAS ALWAYS BEEN A HEAVY HITTER MAVERICK WITHIN THE COMMISSION. HE LOVED THE LIMELIGHT, IT PROBABLY RUBBED SOME PEOPLE THE WRONG WAY. AT THE END OF THE DAY, YOU MENTIONED THAT BRETON HEADED SOME OF THE MOST IMPORTANT COMES THE TECH. THOSE THINGS ARE DONE. THOSE LOWS EXIST BUT THOSE IN FORCING THEM ARE IN PLACE. EVEN IF BRETON IS NOT THERE, HIS SPIRIT AND KEEP LIVING IN THE POST. NOT A BIG WORRY FOR THE COMMISSION. CAROLINE: WILL HIS GOES LIVE ON IN STEFAN CITROEN, WHO HAS ALREADY BEEN TAPPED? JOHN: IT'S NOT CLEAR. IT'S GOING TO BE FOR SURE METEOR -- MEATIER THAN WHAT WAS ON THE TABLE. YOU GET THAT IF YOU PROPOSE ANOTHER NAME.

STEPHAN CITROEN STEPS IN, LET'S SEE WHAT HE GETS. IT SUPPOSED TO BE A BIG MONTH. IT MIGHT NOT BE TO DO WITH DIGITAL. ED: THERE ARE SOME ISSUES IN THAT EU TERM, A LOT OF THEM WATCH THIS PROGRAM. WHAT'S ON THAT AGENDA INFORMING A NEW COMMISSION AND THAT TEAM SHE WANTS TO ASSEMBLE? JOHN: IN THE AGENDA, SHE WANTS TO MAKE IT CLEAR SHE ISN'T PLEASED WITH THE FACT THAT MOST MEMBER COUNTRY STATES HAVE PUT FORWARD MALE CANDIDATES AS OPPOSED TO MALE AND FEMALE. SHE WANTED TO GUARANTEE GENDER BALANCE, AS THEY CALL IT. BUT SO FAR, IT COUNTS AS GOOD AS IF IT WERE MEN. WHEN IT COMES TO THE ACTUAL AGENDA, WE GOT A GLIMPSE OF WHAT IT MIGHT CONTAIN LAST WEEK.

WHEN THE LANDMARK REPORT WAS unveiled by Mario Draghi, the former Prime Minister of Italy and President of the European Central Bank. Ursula von der Leyen has made it clear that she would use the pro-competitiveness agenda for her next mandate. Ed: Regulation was a big priority for this term, how much of it will be for the next five years? Gian: It depends on how much von der Leyen decides to cleave to the letter of the report. If you go by that document, the time for regulation is kind of -- the time for regulation was the past. The future is all about encouraging innovation, competitiveness, big mergers of national champions in telecom defense contractors. So, it should be less about

REGULATION AND MORE ABOUT BUILDING THINGS UP TO ENCOURAGE EUROPEAN TECHNOLOGY COMPANIES TO EMERGE. IF THAT'S WHAT HAPPENS, REGULATION WOULD BE THE BACKBONE, THE BEDROCK ON WHICH A NEW KIND OF AGENDA WILL BE BUILT, WHICH WOULD BE MUCH MORE ABOUT INNOVATING THAN REGULATING. ED: GIAN, GREAT TO HAVE YOU ON THE SHOW FROM BRUSSELS. THANK YOU. SHARES OF TRUMPET MEDIA ARE DOWN IN TODAY'S TRADING FOLLOWING ANOTHER SHOCKING DEVELOPMENT IN THE U.S. PRESIDENTIAL CAMPAIGN YESTERDAY WHEN MEMBERS OF THE SECRET SERVICE ENGAGED WHAT LAW ENFORCEMENT DESCRIBED AS A RIFLE-WIELDING POTENTIAL ASSASSIN NEAR FORMER PRESIDENT TRUMP. GUNFIRE ERUPTED AT HIS PALM BEACH COURSE WHEN HE WAS

PLAYING GOLF. IN THE AFTERMATH, TRUMP EMAILED SUPPORTERS TO DECLARE THAT HE WAS SAFE AND WELL. I THINK IT'S WORTH POINTING OUT THAT ON FRIDAY HE SAID HE WOULDN'T SELL OUT OF THE SHARES. WHAT HAVE WE GOT COMING UP? CAROLINE: A U.S. APPEALS COURT'S HEARING CHALLENGES TO THE TIKTOK STANDBY LAW -- TIKTOK BAN. BOEING IS MOVING, WE UNDERSTAND THEY ARE LOOKING AT A HIRING FREEZE. THEY ARE INSTITUTING THAT AND CONSIDERING TEMPORARY FURLOUGHS AFTER SOME EMPLOYEES WENT ON STRIKE ON FRIDAY ACCORDING TO A MEMO FROM EMPLOYEES. THIS IS BLOOMBERG TECHNOLOGY ♪ ♪. ED: ALIBABA AND SMALLER RIVAL JD.COM UNDER PRESSURE AS

INVESTORS AWAIT THE POTENTIAL FALLOUT FROM U.S. PLANS TO BEGIN TECH -- TAXING CLIP -- TAXING PACKAGES WORTH LESS THAN $800. CLOSING A LOOPHOLE THAT TEMU HAS USED FOR YEARS, LETTING THEM CARVE OUT A MARKET AT THE EXPENSE OF AMAZON. WE WILL KEEP TRACKING THAT. TODAY TIKTOK IS TAKING A FIGHT AGAINST A U.S. BAN TO THE NEXT LEVEL IN THE AMERICAN COURT SYSTEM. THE D.C. CIRCUIT WILL HEAR ARGUMENTS AGAINST THE NEW LAW SIGNED BY JOE BIDEN BANNING TIKTOK IN THE U.S. IF ITS CHINA-BASED PARENT COMPANY BYTEDANCE DOES NOT DIVEST OWNERSHIP BY JANUARY 19. WE HAVE A FORMER HARVARD CENTER CHIEF OF STAFF FOR AMY KLOBUCHAR AND HE JOINS US NOW.

THE HEART OF THE ARGUMENT IS THE FIRST AMENDMENT. THAT THE LAW IMPINGES UPON THE FREEDOM OF SPEECH OF TIKTOK'S 170 MILLION OR SO USERS IN THE UNITED STATES. HOW SUCCESSFUL IS THAT ARGUMENT GOING TO BE? >> WE WILL FIND OUT. IT'S A TOUGH CASE. FIRST AMENDMENT RIGHT OF FREE EXPRESSION, COURTS DON'T LIKE TO TRUST THAT NARROWLY. AT THE SAME TIME YOU HAVE WITH THE U.S. GOVERNMENT IS CALLING A UNIQUE SECURITY THREAT THAT HAS UNPRECEDENTED REACH AND DEPTH. YOU HAVE STRONG ARGUMENTS ON BOTH SIDES AND EVERYONE IS WATCHING TO SEE WHICH WAY IT WILL COME OUT. CAROLINE: THE THREE OF -- ED: THE THREE OF US HAVE DISCUSSED THIS BEFORE, WE WILL DISCUSS IT AGAIN.

WHY DOES THE POLITICAL ENGINE NOT TAKE INTO ACCOUNT MORE THE WISHES OF THE USER BASE, THE 170 MILLION AMERICANS WHO LIKE USING TIKTOK? DOUG: IT'S VERY DIFFICULT FOR LAWMAKERS TO GO AGAINST THE WILL OF THE VOTERS, BUT IT HAPPENS WHEN THERE IS A SERIOUS ENOUGH THREAT THAT THEY ARE WILLING TO REACH ACROSS THE AISLE AND HOLD HANDS AND DO SOMETHING DIFFICULT TOGETHER. WHEN THE LAW WAS PASSED, YOU SAW DEMOCRATS AND REPUBLICANS VOTING FOR IT IN BOTH CHAMBERS IN OVERWHELMING NUMBERS, GIVING THEM COVER. IT'S DIFFICULT TO CRITICIZE ONE PARTY WHEN THE OTHER IS DOING IT JUST AS MUCH. CAROLINE: DO YOU THINK IT WILL BE A JUSTIFIED BAN? DOUG: -- BAN?

DOUG: I DON'T KNOW, IT'S UNCHARTED TERRITORY. SEEMS LIKE THE FIRST AMENDMENT ARE VERY PROFOUND. AT THE SAME TIME, THE JUSTICE DEPARTMENT HAS LAID OUT WHAT MANY BELIEVE ARE VERY COMPELLING REASONS THAT TIKTOK IS A THREAT TO NATIONAL SECURITY. OF COURSE, A LOT OF THAT JUSTIFICATION IS DONE IN CLASSIFIED FILINGS THAT WE, THE PUBLIC, DON'T HAVE ACCESS TO. EVEN TIKTOK'S LAWYERS DON'T HAVE ACCESS TO THIS. MUCH OF IT WILL BE DECIDED BEHIND CLOSED DOORS BY JUDGES IN THE U.S. GOVERNMENT, AND WE WILL FIND OUT WHAT HAPPENS SHORTLY AND FROM -- BEFORE THE ELECTION. CAROLINE: TALKING OF TIMELINE, FEELS LIKE THINGS HAVE CHANGED A LOT SINCE LAST WE SPOKE. THE FÜHRER AROUND IT HAS DIED

DOWN AND I AM WONDERING MORE BROADLY IF YOU THINK THAT THE FOCUS FROM LAWMAKERS IS AS ARDENT, WHETHER THE DATA WILL BE AS PROVEN OUT FROM A SECURITY THREAT PERSPECTIVE, AND WHETHER A BAN WOULD FIX THAT. DOUG: PRIOR TO PASSING THE LAW, THE EXECUTIVE BRANCH AND CONGRESS GATHERED A GREAT DEAL OF INFORMATION AND FILINGS BEAR THIS OUT. A LOT OF PUBLIC REPORTING ABOUT THE LINKS BETWEEN TIKTOK AND THE CHINESE COMMUNIST PARTY. THEY HAVE MADE THE CASE, THE QUESTION IS WHETHER THE FIRST AMENDMENT PERMITS THIS TYPE OF REALLY DRACONIAN RESTRICTIONS. THIS IS AN UNPRECEDENTED ACTION BY THE U.S. GOVERNMENT AGAINST A MEDIA OUTLET. THEY ARE SAYING THAT THE FACTS OF THE CASE ARE UNIQUE.

I THINK THAT WE KNOW ENOUGH ABOUT THE FACTS, NOTWITHSTANDING CLASSIFIED FILINGS, TO HAVE A SENSE REALLY OF WHAT THE STAKES ARE. NO MATTER WHICH WAY THE CASE COMES OUT, PEOPLE WILL BE UNHAPPY. EVEN IF THE GOVERNMENT PROVES THEIR CASE AND FINES. OUR SECURITY REASONS THAT ARE STRONG ENOUGH TO JUSTIFY THE ACTION, THERE IS A PRECEDENT THAT WILL BE SET ABOUT WHAT THE GOVERNMENT CAN DO REGARDING TECHNOLOGY AND PLATFORMS THAT A LOT OF PEOPLE ARE WORRIED ABOUT AND COULD POSSIBLY BE ABUSED BY THE GOVERNMENT IN THE FUTURE. IT'S OFTEN SAID THAT TOUGH CASES MAKE BAD LAW AND THAT MAY BE WHAT HAPPENS HERE. ED: AS A STUDENT OF THE LAW, I LOVE THIS BIT, BUT THE COURTS BALANCING THE FREEDOM OF SPEECH

ARGUMENT AGAINST THE NATIONAL SECURITY ARGUMENT. THIS IS WHAT THE DOJ SAYS. GIVEN THE BROAD REACH OF TIKTOK IN THE UNITED STATES, THE CAPACITY FOR CHINA TO USE THEIR FEATURES TO UNDERMINE AMERICAN INTERESTS CREATES A NATIONAL SECURITY THREAT OF IMMENSE DEPTH AND SCALE. HOW DIFFICULT WILL IT BE FOR THE U.S. TO PROVE THE NATIONAL SECURITY THREAT? DOUG: IT DEPENDS ON THE LEGAL STANDARD THAT THE COURT EMPLOYEES. THERE ARE DIFFERENT LEVELS OF SCRUTINY ABOUT HOW CLOSELY THEY LOOK AT GOVERNMENTAL MOTIVATIONS AND JUSTIFICATIONS. IF THEY APPLY STRICT KNEE, THE BAR IS HIGH IN THE GOVERNMENT HAS TO SHOW THAT THERE IS A COMPELLING GOVERNMENT INTEREST IN THAT THE LAW IS NARROWLY TAILORED TO MEET THAT AIM. IN THE BRIEFING THEY WILL TRY

TO LAY OUT THE CASE, BUT IT'S A HIGH BAR. AGAIN, THIS IS A CASE THAT IS SO UNIQUE, THE PRESIDENT ON POINT DOESN'T SEEM QUITE RIGHT. WE KNOW THAT THE GOVERNMENT CAN PREVENT FOREIGN OWNERSHIP OF RADIO AND TELEVISION COMPANIES, BUT THEY DO THAT UNDER THE LICENSING AUTHORITY. THEY HAVE MUCH MORE RESTRICTIVE POWERS WHEN IT COMES TO PRINT SOURCES. IS TIKTOK MORE LIKE A PRINT SOURCE OR MORE LIKE A RADIO STATION OR TELEVISION STATION? IT'S SOMETHING DIFFERENT AND THE COURTS WILL HAVE TO CONTEND WITH THAT. CAROLINE: BRIEFLY, FROM TIKTOK WE HEARD THE SAME ARGUMENT, THE BAN REMAINS THE SAME, DEVASTATING BUSINESSES. YOU UNDERSTAND THE WORLD OF LOBBYING, HAVING WORKED IN THAT

WORLD PREVIOUSLY. WHAT WILL IT BE LIKE BEHIND THE SCENES? DOUG: SO, WHAT'S INTERESTING ABOUT -- ABOUT THE LOBBYING EFFORT BEFORE IT WAS PASSED, TIKTOK PUT A LOT OF MONEY, RESOURCES, AND EFFORT INTO TRYING TO PREVENT THE LAW FROM PASSING AND IT WAS ENTIRELY INEFFECTIVE. WE CAN TALK ABOUT THE TACTICS AND THE STEPS THAT PEOPLE THINK BACKFIRED, BUT MORE IMPORTANT IS THE FACT IT SEEMS THAT IT'S A FOREIGN COMPANY AND MORE IMPORTANTLY THEY HAVE DIFFERENT RIGHTS UNDER THE U.S. CONSTITUTION, RESTRICTED IN THE METHODS THEY USE THE LOBBY AT A LOT OF U.S. TECH COMPANIES DON'T LOVE TIKTOK IT WILL BE HAPPY TO SEE IT GO AWAY. THEY HAVE THEIR OWN LOBBYISTS, SO IT GOES BOTH WAYS.

CAROLINE: DOUG, THANKS FOR JOINING US. LET'S TALK ABOUT CHINA A LITTLE MORE. IT HAS CLAIMED A BREAKTHROUGH IN THE DEVELOPMENT OF HOMEGROWN CHIPMAKING EQUIPMENT, AN IMPORTANT STEP IN OVERCOMING U.S. SANCTIONS, WHERE STATE-LINKED ORGANIZATIONS WORK ADVICE HE USED A NEW MACHINE WITH A RESOLUTION OF 65 NANOMETERS OR BETTER, A SIGNIFICANT STEP UP FROM THE PREVIOUS MOST ADVANCED INDIGENTS -- INDIGENOUS EQUIPMENT. ED: COMING UP, A LOOK AT THE NEW PARTNERSHIP BETWEEN MOSSIMO AND GOOGLE. A LOT GOING ON THERE IN THE BACKGROUND. THIS IS BLOOMBERG TECHNOLOGY. ED: APPLE SHARES ARE UNDER PRESSURE, OFF OF SESSION LOWS, DOWN 3%. THE SECURITIES SURVEY SHOWS

PREORDER SALES FOR THE IPHONE 16 GENERATION ARE DOWN 13% FROM THE 15, YEAR ON YEAR, DEMAND NOT WHAT WE THOUGHT IT WOULD BE. CAROLINE: MARK GURMAN WRITING OVER THE WEEKEND THAT IT WAS THE HEALTH SIDE OF THE EQUATION THAT STOPPED THE SHOW. AS APPLE SINKS THIS MORNING FOLLOWING THE PRODUCT LAUNCH, THEY STILL HAVE THEIR LEGAL FIGHT WITH MASIMO, WHICH HAD PROMPTED A U.S. BAN ON WATCHES FEATURING THE TECHNOLOGY. NOW THEY HAVE PARTNERED WITH GOOGLE AND QUALCOMM TO DEVELOP A REFERENCE PLATFORM TO BRING MORE SMART WATCHES TO MARKET. JOINING US NOW, JOE KIANI, CEO OF THE COMPANY. WHAT IS THIS, IMPRESSIVE HEALTH FEATURES BUT APPLE WATCH, WE JUST HEARD THE NEW UNVEILING AROUND SLEEP APNEA AND THE LIKE.

HOW DO YOU COMPETE THERE? JOE: WE COMPETE BASED ON BOTH SIDES. WE HAVE CONTINUOUS, ACCURATE SPO TO PULSE RATE. WE CAN EVEN MEASURE HYDRATION. PULSE RATE VARIABILITY. NOBODY ELSE HAS THAT. IN FACT, I DON'T UNDERSTAND HOW YOU CAN TRACK SLEEP APNEA WITHOUT SPO TO. CLINICALLY, IT'S NOT DONE. IT WILL BE INTERESTING TO SEE IF APPLE IS PROMISING THINGS THAT THEY CANNOT DELIVER AGAIN, OR IF THEY REALLY HAVE FIGURED OUT HOW TO DO IT. TIME WILL TELL. CAROLINE: SO, YOU ARE OFFERING THE PLATFORM WITH QUALCOMM. YOU ARE OFFERING MORE SMART HEALTH FEATURES. FEELS THAT WAY. IF YOU DON'T THINK THAT APPLE CAN DELIVER WHAT WAS PROMISED, DOES THAT MEAN MORE COURT ACTION? WHERE DOES YOUR FIGHT, WE STAND

WITH APPLE AND THEIR SMARTWATCH? JOE: WE HAVE ENJOINED APPLE FROM SELLING SPO2 IN THE U.S. THERE IS A TRADE SECRET CASE THAT WILL BE HEARD. IF WE WIN THAT, WE WILL HAVE A BROADER INJUNCTION AGAINST THEM SO THAT THEY CANNOT EVEN DO PULSE RATE AND ARRHYTHMIA DETECTION. IF WE WIN OUR PATENT CASE, WHICH IS ABOUT HOW YOU DO THIS WITH VERY LOW BATTERY CONSUMPTION, THAT WILL BE A LIGHTER INJUNCTION. POTENTIALLY, THE INJUNCTION COULD GO WORLDWIDE AND BROADER. BUT EVEN MORE THAT I'D LIKE TO TELL YOU ABOUT IS THIS PARTNERSHIP WITH GOOGLE THAT WE ARE EXCITED ABOUT. EVERY ANDROID USER NOW CAN HAVE A REAL SCIENTIFICALLY BASED CONTINUOUS, ACCURATE WEARABLE WITH THIS DESIGN THAT WE ARE

CREATING FOR THEM. I THINK THAT IN THE NEXT COUPLE OF YEARS YOU WILL SEE A SLEW OF PRODUCTS, FROM LUXURY PRODUCTS TO SMART WATCHES, FROM YOUR TYPICAL ANDROID WORLD, THAT WILL BE AN INCREDIBLE OFFERING FOR OUR MUTUAL CUSTOMERS. CAROLINE: I HATE TO SAY IT, WE'VE ONLY GOT A MINUTE. YOU'VE GOT SOME FASCINATING THINGS HAPPENING. YOU HAVE A PROXY BATTLE GOING ON AT THE MOMENT WITH MORE GOVERNANCE WHERE THEY WANT MORE BOARD OVERSIGHT. HOW DO YOU FIGHT THAT? CAROLINE: WELL, PELOTON WAS FOUND TO HAVE LIED TO SHAREHOLDERS. A FEDERAL JUDGE FOUND MULTIPLE LIES, HELD THEM IN CONTEMPT. SO, YOU HAVE SOMEONE WITH NO INTEGRITY THAT TALKS ABOUT GOVERNANCE. YET YOU HAVE US WHO HAVE DONE

EVERYTHING RIGHT. MORALLY RIGHT, NOT JUST LEGALLY. AND WE HAVE MADE ALL THIS PROGRESS, FROM BRINGING THE BUSINESS THROUGH COVID TO THE INCREDIBLE GOOGLE PARTNERSHIP. I THINK THAT THIS SHOULD BE 91% TO 9%. THE ONLY ONE VOTING FOR HIM SHOULD BE HIM. CAROLINE: JOE, WISH WE COULD GET MORE INFORMATION FROM YOU. MAYBE WE'LL GET YOU BACK AFTER THE 19TH. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED: I'M ED LUDLOW, IN SAN FRANCISCO. CAROLINE: LET'S GET A CHECK ON THE MARKETS. AFTER THE PREVIOUS WEEK, WE PULLED DOWN WITH ANTS -- ANTICIPATION AROUND WHERE THE FED HEADS THIS WEEK WITH RISK COMING OFF THE TABLE AND KEY STOCKS OFF THE TABLE. BOND MARKET, PRETTY MUCH DOWN

THREE BASIS POINTS. BITCOIN, 57,000, THAT'S BEEN UNDER PRESSURE WITH THE FEDERAL RESERVE POTENTIALLY CUTTING 50 BASIS POINTS. HAVE A LOOK AT THE INDIVIDUAL MOVERS. I TALK ABOUT WHAT'S DRAGGING THE BENCHMARK, AND IT IS APPLE FOR ONE, WORRYING SIGNS THAT TF INTERNATIONAL SECURITY ANALYSIS SAYING THAT THE IPHONE 16 PRO SIDE OF THE EQUATION, THE DEMAND NOT AS STRONG AS PREVIOUSLY. ANURAG RANA SAYING MAYBE IT'S JUST MORE A SIGN OF SUPPLY SIDE. LOOKING AT WHAT'S HAPPENING WITH ARM RAMPING HIGHER OVER THE PREVIOUS WEEK, PULLING BACK THE BENCHMARK, IT'S NOT QUITE A BUY AT THE MOMENT, INTEL UP BY 3.5%. WE COVERED IT A LOT LAST WEEK AND INTEL ACTUALLY GOT THAT

$3.5 BILLION TO MAKE PENTAGON CHIPS. WHAT HAVE YOU GOT? CAROLINE: ANOTHER MEGA -- ED: VODAFONE JUST ANNOUNCED A DEAL FOR NEW AI TOOLS TO HELP WORKERS CREATE EXCEL CHARTS, PRIORITIZE EMAILS, AND COLLABORATE WITH ONE ANOTHER. LISTEN TO THIS. >> THINK OF COPILOT AS THE UI FOR AI, HELPING YOU BREAK DOWN THE SILOS BETWEEN YOUR WORK ARTIFACTS, COMMUNICATIONS, AND BUSINESSES -- BUSINESS PROCESSES. AND WE ARE JUST GETTING STARTED. CAROLINE: WHEN MICROSOFT STARTED THEIR PRESENTATION AT 11:00 NEW YORK TIME, THE STOCK WAS MODESTLY LOWER, NOW IT'S HIGHER. IN THE CASE OF VODAFONE, IT'S KIND OF EVIDENCE OF HOW WORKERS MIGHT USE AI IN THE WORKPLACE FOR ACTUAL STUFF.

GIVE US THE DETAILS. >> YEAH, THIS IS A PRICEY OFFERING. MICROSOFT, IF YOU DO THIS, THEY ARE ASKING YOU TO PAY $35 PER MONTH PER USER IN ADDITION TO WHAT YOU PAY FOR OFFICE LICENSES. TODAY IS TWOFOLD, DEMONSTRATING NEW FEATURES AND DEMONSTRATING TO CUSTOMERS THAT PEOPLE ARE ACTUALLY USING IT AND IT IS SAVING THEM TIME AND HELPING THEM DO THINGS. YOU KNOW, ONE OF THE THINGS I MENTIONED WITH VODAFONE, WHO HAS BEEN TRYING IT OUT, IS THAT THE EARLY TRIALS FOUND THAT WORKERS SAVED ABOUT THREE HOURS PER WEEK, PER PERSON. THAT MIGHT SOUND MODEST, BUT IT'S A START. THEY HAVE TO DEMONSTRATE THAT THESE ARE USEFUL TOOLS AND NOT JUST A FUN THING THAT COMPANIES

SPEND MONEY ON WITHOUT KNOWING HOW TO USE CAROLINE: EFFECTIVELY. CAROLINE: CALL THEM COPILOTS, AGENTS, EVERYONE IS DISCUSSING IT. NOW WE HAVE SALESFORCE, MICROSOFT, NOW COMPETING AGAINST THEIR OWN TECHNOLOGY PROVIDER, OPENAI HOW DOES IT DISTINGUISH ITSELF? >> THE EVENT TODAY IS FOCUS NOT ONLY ON CONSUMERS, BUT CORPORATE CUSTOMERS. MICROSOFT HAS A LONG STANDING STRONGHOLD IN THE CORPORATE COMMUNITY SPACE WITH OFFICE. TODAY'S COPILOTS ARE FOR THINGS LIKE XL, TEAMS, WORD, OUTLOOK EMAIL, AND WHETHER IT IS COMPETING WITH OPENAI, SALESFORCE, OTHER BUSINESS SOFTWARE COMPANIES, THE FISH STRONG BEACH AT THAT MICROSOFT HAS WITH CORPORATE CUSTOMERS OFFICE. TO THE EXTENT THAT THEY CAN

CREATE USEFUL ARTIFICIAL INTELLIGENCE FEATURES THAT WORK WITH OFFICE. THAT'S SOMETHING NO ONE ELSE CAN OFFER. ONE OF THE BIGGEST WRONG CASE IT REALLY PEOPLE HAVE NOT BEEN ABLE TO REPLACE MICROSOFT IN HIS SPREADSHEET. FINANCIAL ANALYSTS WHO LIVE IN EXCEL SAY THEY CAN'T LIVE WITH ANYTHING ELSE AND THEY'VE BEEN WORKING ON TRYING TO GET IT GOING IN A USEFUL AND CRITICAL FASHION. THEY ANNOUNCED NEW FEATURES AROUND THAT TODAY. IN PARTICULAR, THAT THEY ARE GOING TO INTEGRATE PYTHON PROGRAMMING LANGUAGES, REAL POPULAR FOR DATA WORK, INTO THE EXCEL AI COPILOT WITHOUT KNOWING CODE. YOU CAN MAKE A REGULAR PLAIN SPEECH INQUIRY. ED: YOU HAVE COVERED THIS FOR A LONG TIME. THEY ARE REALLY GOOD AT SELLING

STUFF, SOFTWARE, THAT YOU COULD PROBABLY AND OTHERWISE FOR FREE SOMEWHERE ELSE. THE COPILOT IS $30 PER MONTH PER YEAR PER USER. WITH THIS MANY EMPLOYEES YOU WOULD THINK THEY WOULD START HAVING IMMENSE REVENUE GROWTH. WHEN DOES THE STREET THINK THEY WILL? EVERYONE IS TRYING TO FIGURE THAT OUT AND IT'S GOING TO BE HARDER, LET'S BE CLEAR, THEY REPORT EARNINGS, IT'S NOT LIKE THEY ARE BREAKING IT OUT IN A WAY WHERE YOU CAN SAY THAT THIS INCREASE IN OFFICE IS DUE TO COPILOT. THEY AGAIN GAVE SOME NUMBERS, BUT THEY DON'T, IT'S POSITIVE FOR MICROSOFT BUT NOT TERRIBLY SPECIFIC. THEY SAID FOR EXAMPLE THAT COPILOT CUSTOMERS INCREASED BY 60% QUARTER ON QUARTER. THE NUMBER OF CLIENTS WITH

10,000 USERS DOUBLING. WE DON'T KNOW WHAT THAT TRANSLATES INTO WITH RAW NUMBERS OR REVENUE. WHEN I BEGAN BY SAYING $30 PER USER PER MONTH, THAT'S THE LIST PRICE. MOST CORPORATE CUSTOMERS DO IT THROUGH A MULTIYEAR ENTERPRISE AGREEMENT. THE WAY THAT AGREEMENTS WORK IN THIS INDUSTRY, THERE IS DISCOUNTING. WE DON'T REALLY KNOW IF THESE EARLY CUSTOMERS ARE RECEIVING ANY KIND OF PROMOTIONAL PRICING. CAROLINE: THANK YOU, DANA BASS. LET'S KEEP THE DISCUSSION GOING WITH MICROSOFT. ADAM WORKS A PORTFOLIO FOR MICROSOFT AND PLENTY OF OTHERS. GREAT TO HAVE YOU. SOME OF THE FUNDS THAT YOU MANAGE HAVE SIGNIFICANT ADVANTAGE OVER MICROSOFT. ARE THEY EARNING THE MOMENT? ADAM:

AS YOU TALKED ABOUT BEFORE, WE ARE PRETTY EARLY IN A $30 PER USER, PER MONTH. THAT'S A LOT TO ASK, AND HAVING THESE TOOLS BEING USED AND PEOPLE FIGURING OUT HOW TO USE THAT WILL TAKE A WHILE, BUT THE USE CASES ARE FOLDING OUT, AND WE WILL SEE THIS OVER THE NEXT SEVERAL YEARS, FOR SURE. CAROLINE: THE QUESTION IS, WHAT IS PRICED IN? ARM HAD A MASSIVE RALLY LAST WEEK. THE CHIP DESIGNER CALLED IN TO SAY THAT THE PRICE IS ALREADY REFLECTING THE UPSIDE. IS THAT THE CASE FOR THE TECHNOLOGY MORE BROADLY AS WE SEE RATES GETTING CUT? >> TO TALK ABOUT THE MAG SEVEN IN ONE CASE IS HARD, RIGHT? SEVEN COMPANIES WITH DIFFERENT CLOUD BUSINESSES, SO THEY

OVERLAP, BUT OUT SO THAT THEY ARE VERY DIFFERENT BUSINESSES. THERE IS A LOT OF CONSTERNATION IN THE MARKET. YOU'RE CLEARLY TALKING ABOUT THE WHOLE PIECE OF WHAT'S GOING ON AND SOMETHING TO PAY ATTENTION TO. CONCEPT, GENERATIVE AI IS STILL EVOLVING. IT'S STILL EARLY DAYS. THE MARKET HAS DESIRE FOR INSTANT CESSATION, THAT WE WILL JUST SEE IT ALL OF A SUDDEN, BUT THIS IS A SUPER COMPLEX PROBLEM. WE NEED TO GET THE COMMUTE IN PLACE, IT'S REALLY HARD TO TALK ABOUT IT, BROADLY SPEAKING, BUT SOME HAVE BEEN OVERPRICED. LOOKING BACK AT 23, THERE WAS A GUY WHO WAS A WINNER AND FAST-FORWARD, YOU HAVE SEEN SOME SEPARATION. INTEL, FOR EXAMPLE, OF 95% LAST YEAR, DOWN 60% THIS YEAR.

WE ARE SEEING A SEPARATION OF. THERE WILL BE WINNERS, LOSERS, NOT EVERYONE IS GOING TO WIN, AND A LOT OF THESE SOCKS HAVE PRICED IN GOODNESS AND OTHERS WHO HAVEN'T. CAROLINE: YOU CALL IT -- ED: YOU CALLED IT EARLY INNINGS AND NOT SEEING SOMETHING IMMEDIATELY TO THE SATISFACTION OF THE MARKET. NOW THAT THAT IS OUT OF THE WAY, WE WILL DISCUSS THE KIND OF JACKET THAT THEY WERE WEARING. IS THE STORY FOR YOU THE BIG PICTURE AI INVESTMENT CYCLE STORY? ADAM: ONCE AGAIN, IT'S HARD TO SAY, BROADLY SPEAKING, TO CAPTURE THE COMPANY, BUT IN TERMS OF AI I THINK WE ARE STILL VERY EARLY IN THE CYCLE. SOME COMPANIES I THINK YOU'RE GOING TO MASSIVELY BENEFIT, HERE, AND WE WILL NEED TO SEE

IT OUT. WHEN I LOOK BACK, JUNE FELT
LIKE EVERYONE WAS IN THE BOAT. NOW THERE'S A LOT OF SKEPTICISM
AND CONCERN THAT'S HEALTHY FOR THE MARKET.
THIS WILL BE A JOURNEY WITH BUMPS ALONG THE WAY.
THE STOCKS DISCONNECT WITH FUNDAMENTALS AT DIFFERENT TIMES.
SOMETIMES A PRICE INTO MUCH. SOMETIMES THEY GET TOO NEGATIVE.
YOU HAVE GOT TO THINK ABOUT IT FROM THAT PERSPECTIVE AS YOU
MANAGE MONEY IN MY JOB FOR INVESTORS. CAROLINE:
EVERY DAY I -- ED: EVERY DAY I THINK ABOUT HIGH
BANDWIDTH, GPU, ETHERNET, AREAS OF THE MARKET THAT ARE
UNDERAPPRECIATED IN THAT SUPPLY CHAIN.
WHAT AREAS DO YOU FEEL LIKE ARE UNDERAPPRECIATED OR
MISUNDERSTOOD? ADAM:

THERE'S A LONG ANSWER TO THAT, BUT OVERALL, IT'S BEEN THIS EMPHASIS ON SHIPS -- CHIPS. THESE ARE DATA CENTERS, SUPERCOMPUTERS. BLACKWELL HAS SEVEN DIFFERENT SHIPS THEY DESIGNED. IT'S A FULL SYSTEM, A FULL STACK SOLUTION WITH SOFTWARE. THE ALGORITHMS AND THE LIBRARIES THAT ARE REALLY IMPORTANT TO MAKE THIS WORK. WITHIN THAT, YOU MENTIONED HIGH BANDWIDTH MEMORY. WITHOUT IT, THAT'S CRUCIAL TO MAKING THIS EVOLUTION OF AI HAPPEN. THERE ARE A LOT OF INTERCONNECTS THAT ARE SUPER IMPORTANT IN TERMS OF NETWORKING. ETHERNET IS IMPORTANT. THERE ARE OTHER INTERCONNECTS, LIKE A STERILE LABS BACK IN MARCH. OPTICAL AS WELL. A TON OF THINGS MAKE THIS HAPPEN. PEOPLE NEED TO BE THINKING ABOUT IT NOT ON A CHIP BY CHIP BASIS, BUT ON A SYSTEMS LEVEL.

CAROCAROED: GREAT TO HAVE YOU HERE, ADAM. COMING UP, THE STATE OF THE VENDOR ECONOMY EVEN AS THE TIKTOK FUTURE IN THE UNITED STATES IS UP IN THE AIR. THIS IS BLOOMBERG TECHNOLOGY. LOWER INTEREST RATES THIS WEEK. WE WILL BE TALKING ABOUT THE ECONOMISTS BEING SURVEYED BY BLOOMBERG NEWS. THIS IS BLOOMBERG TECHNOLOGY. ED: OK, TIME FOR TALKING TECH. FIRST OFF, SPACEX, POLARIS ON CRUISE SPLASHED DOWN YESTERDAY AFTER THEIR HISTORIC FIRST COMMERCIAL SPACEWALK ON THURSDAY. THE SPACEX CAPSULE HURTLED THROUGH THE ATMOSPHERE BEFORE GLIDING INTO THE OCEAN FOR A LANDING. PLUS, AI START OFF GROK PARTNERING WITH ARAMCO TO BUILD

OUT DATA CENTERS IN SAUDI ARABIA WITH THE HOPES OF BECOMING A HUB FOR COMPANIES ACROSS INDIA. ARAMCO, EXPECTING IT TO COST AND THE ORDER OF NINE FIGURES. IT'S AN INVESTMENT INTO SOUTH AFRICAN POWER GRIDS. IT NEEDED REPAIR FOR AN UPGRADE OF THE GREED WITH $18 BILLION IN THE INTRODUCTION OF RENEWABLE ENERGY. CAROLINE: LET'S TALK ABOUT THE CREATOR ECONOMY. 1400 TOP GLOBAL CREATORS DISCUSSING THE STATE OF THE ECONOMY. AMBER, CONGRATS, A LOT OF YEARS UNDER THE BELT OF THIS EVENT. WHAT ARE THESE CONCERNS THAT THEY ARE WORRIED ABOUT? AMBER: LAST MONTH WE HAD 3 BILLION ON THE LTK PLATFORM AND WE CONTINUE TO SEE THE DOLLARS ROTATING IN AS THEY THINK ABOUT

THE FUTURE OF THEIR BUSINESS WITH TOP OF MIND FOR THEIR COMMUNITY AND WHERE THEY COULD RETAIN AND GROW THE COMMUNITY. FOR A CREATOR, THE PLOT IS THEY NEED A COMMUNITY THEY CAN ACCESS AND THAT HAS HIGH TRUST WITH THEM THAT THEY ARE ENGAGING WITH CONSTANTLY. FIRST OF ALL, WHERE IS THE COMMUNITY BEING BUILT AND HOW ARE THEY GOING TO CONTINUE TO ENGAGE THEM? ON THE OTHER SIBERIA RELEASED A MASSIVE SWEET OF AI TOOLS FOR CREATORS AND BRANDS TODAY. THESE ARE NOT THE TYPES OF TOOLS THAT ARE AI FOR TECH SAKE. DRIVING EFFICIENCY, DOING WORK FOR THEM, TAKING SUBJECTIVITY OUT OF DECISION-MAKING, WE EXPECT BIG OUTCOME DRIVE FROM BRANDS AND CREATORS. THE VAST MAJORITY OF EVERY SINGLE DEMOGRAPHIC IN THE UNITED STATES SAYS THEY ARE

SHOPPING FROM CREATORS, CREATOR-GUIDED SHOPPING HAS PRETTY MUCH ARRIVED, AND LTK POWERS THAT COMMERCE. CAROLINE: BUT THEY ARE NOT BUILDING COMMUNITY IN THE WAY THAT THEY WERE ON THE NORMAL PLATFORMS. WHAT'S HAPPENING, HOW DO THEY DRIVE DOLLARS? AMBER: IT'S A GREAT QUESTION, AND OVER THE LAST DECADE, THEY REALLY SPENT THEIR TIME INVESTING IN SOCIAL MEDIA PLATFORMS, BECAUSE THOSE USED TO BE THE PLACE WHERE THEY COULD COLLECT, NURTURE, AND GROW THE COMMUNITY AND MEET THEM EVERY DAY. OVER THE LAST SEVERAL YEARS, ACUTELY OVER THE LAST YEAR, THE PLATFORMS HAVE MOVED FROM BEING PEOPLE-BASED TO INTEREST-BASED. PEOPLE ARE SPENDING MORE TIME ON THESE PLATFORMS BUT ARE REPORTING MUCH LESS OF A PER PRODUCT -- PRODUCTIVE EXPERIENCE THERE.

THEY ARE MISSING OUT ON THE HUMAN CONNECTION. LTK HAS BEEN INVESTING IN A PLACE WHERE CREATORS CAN GROW THEIR AUDIENCES AND REACH THEM ON A DAILY BASIS. THE JOB OF SOCIAL MEDIA PLATFORMS, THEY HAVE ABANDONED AS THEY HAVE LEANED INTO, THEY WOULD OF COURSE, THE REVENUE MODEL. THEY ARE NOT CREATED TO HELP THE CREATOR REACH THE COMMUNITY, THEY ARE CREATED TO BE AN ADVERTISING PRODUCT, SO WE FILL THE VOID FOR THESE CREATORS AND THEY ARE DOING IT ON THE LTK, A VIDEO FIRST PLATFORM. IN THE LAST MONTH WE HAVE MADE SOME SHIFTS THAT HAVE RESULTED IN PEOPLE WATCHING OVER FIVE MINUTES AT A TIME ON A CREATOR CHANNEL. WE KNOW THAT THE CONNECTION WITH THE AUDIENCE IS IMPORTANT. HIGH TRUST IS WIDE -- WHY THE INDUSTRY EXISTS INVITE WORKS.

ED: ONE WEEK AGO, I WAS AT APPLE PARK FOR THE NEW IPHONE EVENT. LET'S SAY HUNDREDS, THOUSANDS, HUNDREDS OF THOUSANDS OF CREATORS WERE THERE. THEY ALL USE DIFFERENT TECHNOLOGY TO MAKE THEIR CONTENT AND PUBLISH IT IN DIFFERENT PLACES, AND I FOUND MYSELF THINKING -- WHAT A CROWDED FIELD. DO YOU GET THE SENSE THAT THERE ARE NOW JUST SO MANY CREATORS THAT THE VALUE IS A BIT OF A QUESTION? AMBER: THERE ARE MILLIONS OF CREATORS WITH MILLIONS OF FOLLOWERS. LTK WORKS WITH 300,000 GLOBALLY, AND HALF OF THEM ARE IN THE U.S. WORKING WITH PROFESSIONAL CREATORS. FOR THE BRAND TODAY, THEY DON'T HAVE TO DEPEND ON FOLLOWER COUNSELOR VIEWS TO UNSTICK -- UNDERSTAND THE INFLUENCERS AND

SEE WHAT THE CREATOR IS DOING FROM THE TOP AND ALL THE WAY THROUGH TO PURCHASE, WHICH IS BECOMING INCREASINGLY IMPORTANT FOR THESE BRANDS. THEY ARE LOOKING FOR R.O.I. THOSE ARE THE METRICS THAT THEY NEED. WHAT I LOVE IS THE SWEET OF TOOLS REQUIRED FOR A CREATOR TO DO THEIR WORK DEPENDING ON THE LIKES OF APPLE. THE FACT THAT I HAVE EVERY TOOL IN MIND POCKET RIGHT NOW FOR FREE IS INCREDIBLE AND WE ARE REALLY EXCITED ABOUT THE INNOVATION WE ARE SEEING FROM THE HARDWARE IN THE INDUSTRY. ED: AMBER VENZ BOX, GREAT TO HAVE YOU BACK. THANK YOU. TENCENT'S CO-FOUNDER, THE RICHEST PERSON IN CHINA AGAIN. TAKING THE TITLE FROM A BOTTLED WATER OWNER. TENCENT GAINS SWELLING AFTER GAMING'S WITH THINGS LIKE BLACK

MYTH. CAROLINE: COMING UP, RECAPPING THE EMMYS AND HOW SHOGUN BECAME THE FIRST NON-ENGLISH SERIES TO WIN BEST DRAMA. APPLE SHARES OFF BY 3%. WHEN YOU ARE A $3 TRILLION COMPANY, IT MEANS $100 MILLION, FOLKS, IN ONE TRADING DAY ALONE. THIS IS BLOOMBERG TECHNOLOGY. ED: AFTER LAST NIGHT'S TV E-MINIS, SHOGUN, FILMED PRIMARILY IN JAPANESE, SET A RECORD FOR A SINGLE SHOW IN ONE YEAR, WITH 18 ACROSS THE PRIMETIME EMMYS. HBO CLAIMED TOP COMEDY WITH HACKS, BEATING OUT THE BEAR. DISNEY GETTING THE MOST AWARDS OF ANY COMPANY. LATE SUNDAY SHOGUN NIGHT FOR YOU SHOGUN, -- LATE SUNDAY

NIGHT FOR YOU, SHOGUN, ATOP ONE FOR ME THIS YEAR. BUT THERE'S A BIG SUCCESS STORY FOR DISNEY THERE. >> TO PUT IT IN PERSPECTIVE, BOB IGER WAS AT BOTH PARTIES, I THINK HE WAS THERE BECAUSE HE KNEW IT WAS A BIG NIGHT FOR THE COMPANY. WINNING TOP AWARDS FOR THE OSCARS AND EMMYS HAS NOT HISTORICALLY BEEN A CORE PART OF THE DISNEY STRATEGY AS THEY MAKE THESE BIG COMMERCIAL POPCORN TELEVISION SHOWS BASED ON THINGS LIKE MARVEL AND STAR WARS, BUT FX IN PARTICULAR IT HAD A HUGE NIGHT. COMBINED THEY WON 21 AWARDS. CAROLINE: YOU HAVE BEEN SPEAKING WITH TOP LEADERSHIP THERE AT THE MOMENT. I'M JUST REALLY INTERESTED IN YOU HAVE THIS EVENT COMING UP, OF COURSE, IN L.A., OCTOBER 9 AND 10TH.

WE ARE ALL GOING TO BE THERE BROADCASTING LIVE. CAN YOU QUICKLY TELL US MORE ON WHAT TO EXPECT FROM DISNEY? SADLY, NO DISNEY THIS YEAR, THEY HAVE AN EXECUTIVE LEADERSHIP RETREAT IN FLORIDA AT THE SAME TIME, BUT WE WILL HAVE PEOPLE FROM JUST ABOUT EVERY OTHER COUNTRY -- COMPANY, INCLUDING THE CEO OF COMCAST AND LIVE NATION, SOME FUN CELEBRITIES AS WELL. STEVE JOBS, KERRY WASHINGTON, CREATORS OF SOUTH PARK AMONG THEM. WE WILL BE TALKING ABOUT JUST THE CRAZY TIME IT IS IN THE BUSINESS OF MEDIA AND ENTERTAINMENT WITH COMPANIES MERGING, FIGHTING, REALLY UNSURE ABOUT THE FUTURE OF OTHER BUSINESSES. YOU GUYS TALK ABOUT APPLE, THEY KNOW WHICH BUSINESSES MAKE A LOT OF MONEY THAT WAY AND A LOT

ARE STILL TRYING TO FIGURE OUT THIS STREAMING THING. ONE SUCH DRAMA, DISNEY AND DIRECTV. MORE DRAMA TO COME? LUCAS: MORE CARRIAGE FIGHTS TO COME BUT NOT FOR DISNEY IN THE NEAR FUTURE. CAROLINE: LUCAS SHAW, SO ON IT. WE THANK YOU, UP LATE, ON EARLY FOR US. BLOOMBERG SCREEN TIME IS HAPPENING OCTOBER 9 AND 10TH. YOU DON'T WANT TO MISS IT COME LIVE WITH LUCAS AND A FEW HELPFUL OTHERS. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: FRANTIC START OF THE WEEK, YOU KNOW WHERE TO FIND US. THE TEAM OUT OF NEW YORK CITY, GOOD MORNING FROM THE TEAM HERE IN SAN FRANCISCO. BLOOMBERG TECHNOLOGY THIS

Apple Sinks, TikTok Starts Courtroom Battle With US | Bloomberg Technology

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Bloomberg Technology

Weak Demand for iPhone 16 Pro and EU Tech Enforcer's Resignation

The iPhone 16 Pro model is experiencing weak demand, with initial sales dropping 13% year-on-year, causing market panic.

Apple's ability to gain market share in China is being challenged by domestic competition, particularly from Huawei.

The resignation of the EU's top tech enforcer, who played a key role in shaping the response to U.

tech power, has raised questions about the continuity of enforcement efforts.

Ursula von der Leyen is pushing for gender balance in EU member state candidate nominations and plans to focus on innovation and competitiveness in her next mandate.

presidential campaign is facing turmoil after a potential assassination attempt on Donald Trump, leading to a drop in shares for Trumpet Media.

ban in court, arguing that it impinges on the First Amendment rights of its users.

The Controversy Surrounding TikTok's Potential Ban

Lawmakers are struggling to balance the wishes of TikTok's 170 million American users with national security concerns.

The overwhelming bipartisan support for the law against TikTok indicates a serious perceived threat.

The unique nature of the case and the government's unprecedented action raise questions about the potential impact on future technology regulations.

TikTok's Lobbying Efforts and Apple's Struggles

TikTok's lobbying efforts to prevent a law from passing were ineffective, partly due to its foreign status and the opposition from U.

China's breakthrough in homegrown chipmaking equipment is a significant step in overcoming U.

Apple's iPhone 16 preorder sales are down 13% year-on-year, and the company is facing legal battles while partnering with Google and Qualcomm to develop a reference platform for smartwatches.

Microsoft's AI tools are gaining traction, with a $35 per month per user offering in addition to Office licenses.

The tools aim to improve workplace efficiency, with early trials at Vodafone showing a savings of three hours per week per employee.

Microsoft's stronghold in the corporate community, particularly with Office, gives them a competitive edge in offering useful AI features that integrate with their software.

Microsoft's Copilot is priced at $30 per user per month, with a 60% increase in customers quarter on quarter.

The company's revenue growth from Copilot is unclear due to multi-year enterprise agreements and potential discounting for early customers.

The generative AI market is still evolving, and there is skepticism about its immediate impact, leading to a separation of winners and losers among tech companies.

The Importance of a Systematic Approach to AI Evolution

The focus on ships and data centers is crucial for the evolution of AI, with Blackwell designing seven different ships as part of a full-stack solution.

High bandwidth memory and various interconnects, including Ethernet and optical connections, play a vital role in this process.

The creator economy is also shifting, with creators seeking to build and engage their communities outside of traditional social media platforms, leading to a rise in creator-guided shopping.

The Impact of Creators and the Entertainment Industry

There are millions of creators globally, with LTK working with 300,000, half of them in the U.

Brands are increasingly looking for ROI and metrics from creators, making their work more important.

The Emmys saw Shogun make history as the first non-English series to win Best Drama, while Disney had a successful night, winning the most awards.