Roughly 50 of the island 3. 3 Million People remain without power. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im nabila ahmed. This is bloomberg. Cory im cory in for emily chang, and this is Bloomberg Technology. Apple shares take a hit after lackluster demand for the iphone x. Celebrate a very strong holiday season. We will look at how the smart home tech gadget fits into amazons plans for 2018. Rallyingwhat a ride, at 16,000 after last weeks big fella. What does this mean about bitcoin bubble . First to our lead. Apple analysts lowering the iphone x shipment projections for the first quarter, citing weak demands during the holiday season. Shares falling more than 2. 5 . 10 million fewer units will be in q1nq1 2018 sold 2018 compared to the current quarter. Joining us right now is alex. We talked about this on Bloomberg Radio a while ago, and this is really interesting because it is a projection of what is about to happen in the quarter that starts next week and what just happened. Alex it has been one of the concerns heading into the christmas quarter. The iphone x was released six weeks after the iphone 8. There was a fear that maybe if they got too close to the release date of the samsung next highend smartphone, which would be in march, the close to that and it will not be enough demand to sustain the numbers. Cory competition is another part of this . Alex exactly, yes. In china, a lot of local manufacturers coming out with with very similar features. None of them have the face id 3d sensor that apple has come of as some analysts were writing today, that has not been enough. Cory it seems a big part of apples strategy with this potentially new applications we have not seen yet read the phone does really cool facial recognition stuff, but there are not a lot of applications for that. There is no real usage for it yet. Alex the curse of being apple is they are circuit of the terms of what they have. When they unveiled the phone in september ahead of its release in september, that is not a huge timeframe for developers to start coming up with new tools that you can download in the app store. It may be over the next 12 or 18 months where we see much more compelling innovation. Cory we will never know the mix between iphone 8 and iphone x, but if they sell out more iphone , they are going to do so well. There is always chatter that china and india will not buy the expensive phone. What we have seen is the opposite. China loves the expensive phone and will pay up for the luxury item. Alex the iphone 8 is largely the same fall back to the design as the iphone 6. Not a huge amount of difference between those phones. That means the material has come down for the iphone 8 but the price point is still high. Not the end of the world if apple sells more iphone 8 than iphone x. Cory they are so close margins on the eighth even . Alex it is hard to tell. Not significantly worse than on the 10. Cory the estimates even though the numbers have come down are still convincing. The biggest firstquarter apple has ever had. Still yearoveryear Revenue Growth and one of the biggest, most Profitable Companies in the world. Not apple does break out my phone numbers. Cory we will know iphones. Not specifics. Alex not which ones they are. That means the forecast for apple, that might already take into account. Cory and we will never know about the home pod. Alex even if it had been out this christmas, we saw estimates they would ship 50,000 units. 50,000 units at 300 a pop is not a lot of money. Cory big whoop. Alex i am glad you said it. Cory thank you very much for your discretion. Theng up, the iphone became first u. S. Company with a billiondollar market cap back in november. In june, they unveiled the home pod that will ship in early 2018 or so they say. We will see. Emily chang sat down with mr. Cook and asked him about the vision for the companys future starting with the home pod and how tough that is in an already crowded market. What we have tried to do is build something that is a breakthrough speaker first. Datings deep in our dna back from itunes and ipods so we wanted something that, number one, sounded unbelievable. I think when people listen to it, they are going to be shocked over the quality of the sound. Of course, it does a lot of other things and all of those are important as well, but we wanted a really high quality audio experience as well. Emily you are very focused on how this can reinvent music. What about the other things . Make a phonee to call, order a car, order groceries . There are lots of things you can do with it. There is a lot of things that siri knows how to do from the phone, and so we will start with a patch of those as shown today during the keynote, and you can bet there is a nice followon activity as well. Emily lets talk about ecommerce. Ecommerce is very important to these devices. I can order paper towels on my amazon echo. Does this tell us about amazons aspirations in retail . I would not read into it in that regard. What i would we get into it is apple is a company that cares about music and wants to deliver a great audio experience at home. Infeel like we reinvented it the portable player area and we think we can reinvent it at home as well, and we know that people want a speaker now to do more than that. Obviously we want a speaker to do more than that. We are sort of combining what has been thought of to be two distinctly things until now and i think people will love it. I know they are. I am a user, and i think they will be blown away with the experience. Emily how long have you been working on this . Tim multiple years. The Underlying Technology in here is something to behold. Experience that we want to and the quality we wanted like apple products in general, they take multiple years to do starting from the Core Technology and building up to the product. Emily you have people out there saying finally what took so long . Tim for us, it has never been about being first to something. We did not have the first mp3 player. We did not have the first smart phone. We did not have the first tablet. There was a tablet shipping a decade before. Very few people used it. Arguably, we shipped the first modern mp3 player. The first modern smartphone, the first modern tablet, but we were not first in any of them. For us, it is not about being first. It is about being the best and giving the User Experience that delights them every time. Patientslet that in result in shipping something that is just not great. Emily it is the 10th anniversary of the iphone. You unveiled the new ils, ils 11 io, ios 11. Tim i can tell you ios 11 is unbelievable. Both for iphone and for ipad, there are incredible things in. T from peertopeer payments it is the biggest ipad release ever. And it area i have great personal excitement, i am excited about all of this, but i am incredibly excited about ar. You saw the demos that were done today. I think this is profound. Getink wed today as we this developer release out in the hands of the developers, we will have the largest augmented reality platform in the world, and i think we have launched ar in a way to large numbers of people. I am incredibly excited to see what some of the developers will come out with ar. Emily you talk a lot about ar and vr with regard to developers, but when will consumers see an apple vr . Tim that is obviously something i am not going to answer, but with a Core Technology and as a andform, the first thing arguably is always the most important is to build the foundation and from that foundation, you can do many things off of it, but first you have to have a solid foundation, the developerso will like what they find in the developer kit on the ar. Cory emily chang with apple ceo tim cook. A rocky year at uber ends now. They have agreed to yell the u. S. Prime auto release sell the u. S. Prime auto release business. It releases the ceo business on costcutting at uber. Financial terms not disclosed. Amazon can be a big holiday winter again. 4 billion people 4 Million People getting a trial at amazon in a week. We look at picking up ecommerce. Bloomberg technology is Live Streaming on twitter 2 00 on the west coast, 5 00 on the east coast. This is bloomberg. Cory amazon once again could be the big winner this holiday season. Millions of alexa enabled devices were sold worldwide. Amazon sitting in the top seller spot across all corners of the site. Trials and prime paid memberships in one week over the holidays. Joining us now is mark. I am not kidding. Away six over the holidays, seven. There was a device with alexa and it. It seemed like the goto gift. One was an echo, and the other was the fire stick that was alexa enabled. They want to get the devices out, but secondly, how many more alexa enabled devices there are. Usage shirts you should search for alexa enabled devices. Speakers from a likable, so we will get the echo system out there as a big win and they put in a press release that they saw millions of prime Customers Using alexa to order products on amazon so not only are they selling the device when you are selling the convenience which will be easier to turn around in the kitchen and say alexa, order more coffee. Customers are doing that. Cory i think that is why they open up the platform. 450, not for nothing. But a really fantastic device. Terrific sound, but it is not made by amazon. Why would amazon give that away . You get the amazon echo system embedded in multiple devices, amazon has more ways to offer you products and deliver products. You can interact with amazon not just when you are here, your desktop, with your phone, but also when you are driving you can order from your phone. Cory alexa enabled device for your car. Mark right now, we are too conservative. Without a were 40 million alexa echo installed devices. The number is probably 50, and could be given 60 million. Even 60 million. We think there are 60 million amazon prime customers in the u. S. They added 4 in one week. There was another one. The number of units that they eithered at expedited for prime or same day or next day doubled yearoveryear. Cory a revenue run rate or growth rate of about 25 . Is there but the point is more than just a price advantage and selection advantage that amazon has. They are building to get you products faster than anybody else. It matters. It matters as he going to christmas and do not have the gets ready to go. You can still order them on the 23rd or 24th and you recognize that advantage and use that when you shop with advantage throughout the year. The convenience is the new mode at amazon. Ory 31 predicted growth that includes a lot very fast growth at amazon web services. It is intriguing to me that of all of the different positions we see these guys going into, do they still go back looking at b2c selling phones to people . They might into electronics, video, whatever, even drugs, whatever, but it is about selling volume of goods to people. Mark i think so. It is building up the customer relationship. One of the strongest relationships consumers have is with the people we get our money in ordersponse to get products. That is a strong we tell relationship. You can have a media relationship, but very companies very few companies have that kind of relationship. Relationship, they are providing you goods and services, entertainment, and convenience where you can find products around the house. Yes, they are breaking into new categories, extending into groceries, the single Largest Consumer category. They are now the largest category of apparel. Cory drugs . Mark i think it is almost inevitable that they go there. I think it is still three to five years out but inevitable. Cory one interesting thing about alexa, is they are really getting brand a little bit, which they have never done. Amazon seems to have a philosophical belief of the cheapest thing. Brand is the opposite of that. Opportunityates the for amazon for a private label and create a revenue opportunity. Apple, the app store takes a 30 tax on all products sold in the apple store. Google home does the same thing. Right now, amazon does not get any of that tax revenue, but you get 100 million, 200 million alexa devices and alexa enabled devices out there and when the consumer says i need more coffee or diapers or a car service, all of a sudden you will have providers that can bid against each other for placement in the voice search results and you have apple platform revenue. Cory another run. Thank you very much. Always a pleasure. Mark good to see you. Cory some of the biggest banks in the u. S. Are offering perks. How the financial industry is taking a page out of a playbook, next. This is bloomberg. Cory from startups in Silicon Valley two heavyweights like facebook and google, Tech Companies have prioritized perks for employees from a limited occasions to preworkout classes. The financial industry is now trying to play catchup. Our guest joins us in new york. Laura, i love this story. It is an aspirational story like boat magazine or something. Who has it better than me . What are they doing for their employees here . Laura what they have decided to do is really introduce a Pilot Program into the Investment Bank bankertrader, investment is allowed to take is provided they have been there 10 years, and they are authentic between a fourweek and six weeks sabbatical for the number of years they have been there. Cory they have not been known in my story and for benevolence to its employees or creativity for the products they offer and the way they take care people. Laura exactlylaura . Whatre commenting on anybody who works at bank of america knows. They are viewed as one of the more stodgy banks. The ceo views the firm as changing, becoming more technological. He likes to describe the company as a technology company, but some of the perks that come along with being a Technology Firm or some of the advancements on the Trading Floor are at large within the banks branches, that is not really there. Cory i wonder where this goes. What are the perks . What are the things new yorkers look at Silicon Valley companies . Is it the fooseball machine, the pingpong tables, the time off . Laura yes. You hear a lot of the younger hedge fund analysts talking about the unlimited vacation. That is one thing that you see them really pick up if they offer that as a perk. Taking a sabbatical, even though it is a shorter sabbatical, but 4 to 6 weeks to focus on something they have not had time for, which is to recharge their batteries after being worked to the bones like some of these Investment Bankers or traders are. That is something that people tend to salivate over. It raises eyebrows and the Banking Community saying here is a bank that will offer you this so the long time off is something people look forward to. I dont think that is the discount to any of the great perks like google has like doing your dry cleaning. The street from us here in san francisco, they offer the same kind of sabbatical thing, but they are competing with the banks for the same technological and programming talent. Laura exactly. The banks very much understand this. Brian moynihan talked to brian weston about this. What he said was this allows us to retain more people. They dont think it is just about grabbing those technology talented people that the banks want, but it is also about keeping people there. Cory great stuff. Thank you so much. Coming up Silicon Valley titans joins us to talk about punctuated equilibrium. It is a big idea and i think youll like this because it weps understand where will see innovation for the future. This is bloomberg. You are watching Bloomberg Technology y. The border wall donald trump ,romoted on the campaign trail a prototypes in the desert outside san diego. Congress has not approved the funds to advance the project. That Vladimir Putin convened today to formally nominate him for presidency after he announced he would seek reelection as an independent candidate. Putin has been in power for 18 years and is expected to win another term. Top Election Officials have barred a candidate from a president ial run. The kremlin hinted at possible legal repercussions over his calls for a boycott of the march president ial election. Injamin netanyahus allies parliament are pushing through a bill that critics say could be used to silence investigators. That comes as a corruption probe into the prime ministers dealings. The proposed legislation would for bid police from submitting written recommendations on whether to indict a suspect. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. It is just after 5 30 in new. Ork, 6 30 and hong kong im joined by david with a look at the markets. Underway intting the asiapacific. Flat on that market. When you look at futures at the moment, roughly looking at moderate gains at the open. The next market to open is australia, and futures up 11 points. When you look at other things we are following, the yield 2. 71 , when japan opens up it is what happens to these oilrelated stocks. Im looking at my most active 59. 80, a lot of that ones down to an explosion one of the pipelines and this bullish look at the budget when it comes to saudi arabia. Supplierspplerelated , modest gains, slight volumes as we approached the open of major markets here. More from Bloomberg Technology next. Cory this is Bloomberg Technology and i am cory johnson. One of the titans of enterprise was acquired by oracle. I was there. Good with if i have seen youw since we were kite boarding and you are getting after it early last year, but you have been doing great things. What problems are you trying to solve . We are working with some of the largest corporations constituting Artificial Intelligence and taking advantage of iot to engage in digital transformation. That taking companies arent yet digital and to get there . Yes. Using new technology that has come online to change everything about the way they manage their business processes, deliver products, services. It is like nothing we have seen before. O