The blue apron ceo discusses a transition from unicorn to publicly traded company, life after an ipo, and the Meal Kit Companys strategy for fending off growing competition. But first, to hourly. Apple ushered in a new era for the iphone tuesday at the new steve jobs theater in cupertino, california. Ceo tim cook unveiled a suite of new products, with the muchanticipated iphone x grabbing the headlines. Iphone x, the most advanced iphone we have ever made, with incredible new design, face id, true death camera system, and more powerful technologies than we have ever put in an iphone before. It really is the future of the smartphone. Emily apple also rolled out an updated watch with Cellular Connection and a settop box that supports Higher Definition video. We spoke with mark gurman and our editor atlarge cory johnson to get their First Impression of apples new products. Its really its a nice phone, edge to edge. Im said that it doesnt go on sale until november, as a fan of the product, and as an investor it misses a whole quarter of sales. But yes, it is nice. Emily in terms of the product itself, it is light, small, especially if you have been carrying and iphone 7. What struck me was the height of the screen, you dont have to scroll so much to see what you want. And the facial Recognition Technology is key. I was able to set up my own face, you twist your head around it twice, it is quicker than putting in fingerprints. I feel like i was the first person to enroll my face, because i was trying to do it. It works really well. If you have a touch id app, it will automatically convert. Well,ntegrated it really and you can see more video. Emily so corey, i know you will be getting your hands on one soon, im sure. But from your perspective, you are looking at the big picture. How big of an upgrade cycle do you think thisll actually be given, that 80 of people who will buy it already have an iphone . Obviously the biggest change in iphones ever was not having a phone and having a phone, and that happened 10 years ago. Its a big upgrade cycle that they are facing an opportunity for. One of the thing apple has found over the years is when people upgrade from an iphone to another iphone, its a system in so they tend to stay, when people leave an android they will quickly switch to an iphone. Overtime they grow larger and larger. The time between buying phones has been growing longer and longer, which suggests that the upgrade cycle could be a big one for apple. But the question is the unanswerable question is will t he consumers really feel the need to get this new device . These bells and whistles seem to be nothing to experience with your phone, but something looking at your neighbor, that will help them to sell this phone. The thing marcus mentioned, the thatl recognition stuff, might be a more pleasurable experience for the user but it is something the person will see and respond. Emily it is a significantly different new formfactor, new haven, several analysts suggested to me that it might discourage people from buying the iphone 8. Why would you buy it if you could spend a little more and get the most expensive . I was speaking to gene munster who was here at the event, and he said, nevertheless, it will be a home run. What do you think . Talking about the 8 . The x will be a home run, i agree. Emily the 8 . [laughter] [applause] i dont kno i dont know why anyone would buy it. They raised the price, and you are 300 between the 8 and x. You look at that in terms of dollars per month, thats probably five dollars or six dollars more per month. I dont know why anyone would not get the x on an installment plan. That comes back to why the delay. How many would be available in stores . But if they wait, they have more capacity, they have more people, giving more factories. I think they are saving up for a big november 3 launch. Emily and it will be available in many more countries than it typically is on the first day. Is a lot of ways happening at the same time, three new phones, multiple countries per wave, a big expansion. Emily i want to talk about the apple watch. They really emphasized the Health Features of the apple watch, the sports feature, they introduced the watch with a surfer wearing the watch while riding a wave in getting a call on it. Obviously i know you are obsessed with fitness trackers. Apple said today that this is the most popular watch in the world. But what is your take on just how much bigger a product category the watch can be . The iphone watch was launched with an i dont know business plan. They threw a bunch a stuff out there and wanted to see what would sick. Dr. Oz was there when they announced the watch, and we got to cover that event. They have always thought that health would be a part of it, for what they have since figured out that it was fitness that drove the sales of their devices, and indeed the fitbit. They had a lot of success with that product, focus primarily on fitness. We see that apple has figured out, as much as they thought fashion would be a part of their watch, fitness is in fact the thing. Certainly showing off the Water Proofing that other Computing Devices dont have in a very big but alsot paddling surfing and swimming and everything else. Emily right. If you are in hawaii, in tahoe, apparently it works. Lets talk about the apple tv settop box they demoed. The demoed the four k capacity the 4k capacity. It is impressive, but not if you dont have you asked me, were there any surprises. This is a big shock to me. If you have 1080 p video in your itunes library, they will convert those to free. That is not something i would have imagined apple would do. Typically its a different video quality. Theyre upgrading them. Then when you buy ne they will charge youw the same price. Its a great thing. Emily bloombergs cory johnson and mark gurman. Did rush into the demo room right after the keynote, got his hands on the new iphone x. Take a look. We do have one more thing [cheers and applause] we are here at the steve jobs theater at the new apple park campus. This is the iphone x. You can see it has edge to edge screen, a notch for 3d, face recognition sensor. On the back it has the glass back, stainless steel edges, it looks really nice, welllit screen, which makes colors pop. They split the status bar, Wireless Charging on the back. Overall, the screen is a little bigger than the screen for the lus, but overall it feels like its about the size of an iphone 7. Because of the super slim bezel. People have been asking about the side button, it is longer. You can hold it down to get siri. Also, doubleclick for apple pay. Now to go home, you just wipe from the bottom. You can do multitasking as well, swipe between different apps. You can see so many more messages at once, it is great for video as well. The iphone x goes on sale november 3 after preorders through the end of october, starting at 999. There is a 256 gigabytes version as well. Mark Bloomberg Technology herrmann, giving us the first look at the new iphone x. Up, President Trump has blocked the chinese backed investor from buying a u. S. Chipmaker on National Security concerns. We will discuss what it means for relations between the countries. Plus, we speak exclusively with the blue apron ceo, post ipo, and the new strategy for fending off competition. This is bloomberg. Emily social media is now a red hot focus of special counsel Robert Muellers investigation into the 2016 election and possible links to President Trumps associates, according to u. S. Th officials. How are zeroing in on russia spread fake in damaging information through social media. s team is seeking additional evidence from Companies Like facebook and twitter about what happened on their networks. Last week it was revealed that facebook had discovered 100,000 in ads connected to fake accounts, likely run by russia. President trump has blocked a chinese backed investor from buying oregonbased semiconductors, the first time in a quartercentury a u. S. President has halted a foreign takeover of an American Firm because of National Security risks. The spurned buyer is canyon Bridge Capital partners, a private equity firm backed by chinese managers. We spoke to our editor about this story. A very small company, nothing in the market cap. They make programmable programmable watches. Thats right. These are the kind of things that companies can use, they dont have to design the whole chip, they can just make it do certain stuff. These chips have traditionally been used when you have to design another chip, you knock it out, see how it works, then away we go. They use it because it has a lot of actuality. Then you specify it was to have done that. Yes, you can change the function after it has been locked out. Its all complex, but it doesnt seem no. This is a company not a large company,. The product itself, you could argue, could be used in various ways that could be useful for the military. The we are talking about is broadening of this sisyphean purview, the hardening of the sedans of washington for china. Orto france if france germany did it they might not face the same pressure. That would be the case. Itself,echnology in there is a suggestion that some of it could be embedded to the monitoring use, if a company could somehow see whats happening, if they were disseminated through the marketplace theres an element of that in the networking equipment. 28 of revenue. Fpdas, bute ofin, i want to stress, course security is the stated reason, of course security is the reason when we look at these things, but fundamentally, the u. S. Semiconductor industry, the u. S. Government does not want china coming in and taking those key capabilities away from it. Loss competes in this area . Intel. Alterra. Alterra was a lot more focused on networking and bigger. They divide the market between them. Is there a notion there seemed to be a suggestion that it was being used in a lot more stuff than it used to be. I thought of it at the time as kind of an accelerator into a networking chip. This has always been the argument, that these chips have had a specific use case, narrowly confined to communication, but even more narrowly confined to chips. This suggestion was they were going to get into data centers. Microsoft is using them in data centers right now. That is happening, but not very quickly. I think a broader point here is we have seen the chip industry consolidate massively, and we are down to 60 market share for the top 10 companies. Essentially the market has shrunk. China needs to get into that industry, it doesnt have anybody in that top 10 for semiconductors. It will throw a lot of money at buying expertise, buying into domesticated industries with things like we have seen today. It seems that it would also limit the ability of all the other Semiconductor Companies to get higher prices in the market, with the notion there might be a chinese bidder. If you are a company like lattice, from scale, what do you do . Everybody else is getting together, you havent been bought and you cant buy anybody else, where do you go . One haven was all this money that china had said it was going to spend, that will be our rainy day fund. Emily our editor at large, cory johnson, with ian king. Coming up, why we may see self driving trucks on the road before autonomous taxis. Will hear from the ceo of waymo, next. This is bloomberg. Emily this week, a u. S. Appeals court cleared the way for way most lawsuit against uber to proceed to trial. They claim uber stole trade secrets for self driving cars. The judge declined the request to send the suit arbitration. The case centers around waymos allegation that a former employee of both companies took thousands of prior terry files from waymo to uber. The judge also ruled that waymo will get access to a key piece of evidence, a report that aims to scrub him of any of googles proprietary information, and examining ubers acquisition of his company for 680 million in stock. Cory johnson spoke with him about all things uber. A very influential engineer at google, he starts this self driving Trucking Company all these self driving trucks, whats that all about . Theres a whole message about monetize a bowl sooner, but then uber buys them less than a year after he left google to become the central the auto Trucking Company. But they are not pursuing it at all, they just want to go back overs focus ubers focus is self driving cars, and they want to put that at the front of the effort. To see if theynd know any of their trade secrets have gone with him. That is the basis of this. Uber once arbitration because why . Because they dont want to do in public. There are lots of embarrassing details that could come out. Their arbitration claim looks like a stretch, and they lost. They were basically saying that waymo should be bound by its agreement to arbitrate things, even though they are only suing uber. They have a separate they tried to take their arbitration clause that alphabet had he happens to be exactly. Happens, and trial we are going to get some discovery that has surely been going on, but the trial in october seems soon. There is a key of the ruling here. Uber so it suspected that maybe there would be issues. They did all this diligence and had a cyber Forensics Firm look into everything that he had. That report is sort of tightly capped, uber has refused to give it up, didnt even mention it in the beginning. Finally a judge has said, you need to handed over to waymo. It will be interesting to see what happened, because we really havent been able to turn up these files. That was the explosive claim, that there were all these files that uber had, and so far waymo hasnt been able to say, there they are. Emily eric newcomer, speaking with our editor at large, cory johnson. Sticking with waymo, the ceo was on stage at the bloombergs sooner than you think conference at cornells campus on roosevelt island. He spoke with our Senior Executive editor, brad stone, about when we will get self driving cars on the road. I think the answer literally is the name of this conference. Its sooner than you think. We have been working on this at google and now at waymo for over eight years. We have driven well over 3 million miles. We are the driving simulation miles and last year alone, 2. 5 billion miles in simulation we are to the point now where the technology is feeling mature and ready. That is why we are spending a lot of time, particularly in phoenix but also in mountain view, called the early writer program, where we have families driving around in our cars, and we are beginning to understand how real people in real families alike to use the technology. That is the last part for us, understanding that, as we refine the technology. Yesterday was an interesting day in terms of another piece, the regulatory framework. The transportation secretary elaine chao put out a vision which someatement, consumer groups criticized for taking a handsoff approach, allowing manufacturers to test Driverless Cars on highways. On the same day, the ntsb came out and said they need to be more active, pointing to the unfortunate tragic crash of a man in a tesla. Where do you see the Regulatory Environment . What are your concerns about taking the steps forward safely . Great question. If you look at what the administration has done, and what we have seen in the last couple weeks, that is very encouraging for this technology, because we are in the early stages. We really havent served our first users yet, so it makes sense that we are careful and flexible so we dont unnecessarily or inadvertently squelch innovation. What we have seen in the house, which is something pretty special when you think about it, how many things has the house of representatives united behind recently . I can think of none, other than self driving cars, which passed recently that is very supportive and in line with what we saw from the secretary. I think that is great. It bears reminding everyone that there is a difference between the problem we are trying to solve, which is fully self driving and removing humans from the car and letting our technology do the whole driving task, and the different problem with Driver Assist technology. There is a difference between those things. That is what the ntsb was rolling on. Getting too comfortable with these technologies . What do you see as the danger . It is the fundamental conundrum that we face in this space. We learned it at google prior to becoming waymo in 2012. Where a pilot experiment, we put some of our employees in our self driving cars for highway use. We told these very smart users that they had to be very attentive, that we would be watching them with cameras in the car, and if they didnt behave and keep their eyes on the road, we were going to take this free car away from them. We ended up having to stop that pilot experiment after just a couple months, because those google employees couldnt stop taking their eyes off the road. They very quickly came to trust the technology to much. That is the fundamental conundrum of the driverless technology. If at some point the car needs to ask the human to pay attention, in the human has fallen asleep, got distracted, is in a deep conversation, and that could be a big problem. Emily when a ceo john krafcik, speaking with brad stone. Coming up, aqua fax is still reeling from the massive data hack that may have impacted anyone in the u. S. With a credit card. Can their insurance policy come close to covering the damages, and what are they going to do to stop the bleeding . Check us out at bloomberg tech tv. This is bloomberg. Emily welcome back to best of Bloomberg Technology. On emily chang. The massive equifax data breach could be the largest in history. The hack may have hit 143 million customers. A Class Action Lawsuit is to manning of to 70 billion in damages. Paul otellini carries an insurance policy for this, reportedly only covers 100 million to 159. Chief Information Security fortuneat 14 that hack. About the to include probably cooperating with local Law Enforcement to g