I was joined by sam grobart to discuss. We talked about the deal and what it means for apple. A huge deal for apple. It gives them a potential boost as they are sent. There market shares number and little flat or a little bit down. You go put this and the content. The largest carrier in the u. S. Is verizon. A hundred million subscribers. 700 million figure for china mobile might include other things not balls but it is twice as big as verizon. Apple only has 10 stores in china. They are trying to increase the number. This adds 3000 retail outlets. Apple stores have been very successful. China, obviously, it is a big plays. Cap it into that Network Among 3000 of them, it is huge for apple. It gives it way deep into the country that is more than the big cities. When it comes to cost, that has been the big problem. The iphone. It is so expensive. 870. 730. Thatll supposedly the cheaper one. Do not tell tim cook. He said it was pulled to the different one. We see this and the prices. Consider how that compares to the competition that apple has to face. Unsubsidized cost for xiaomi is 300. Significant difference. Xiamoi makes phones that look like iphones. The ceo models himself off steven jobs. I spoke to the ceo of baidu about this. Robin said Chinese People want bigger screens. Samsung and other Companies Offer this. I spoke with robin li about apple. Listen to what he hasto say. Apple has experience in the u. S. , but in china, the chinese characters are very different from english. You need an input engine method. Apple does not have a good one. They did not allow it to be uploaded. That was interesting. I did not realize that about chinese characters. Apple is a closed system. It is hard for them to adapt to different markets. When it comes to the competition, there is samsung which is the leader. Apple has a lot of competition. There is xiaomi. They are doing better than apple. A lot going on. We have the coo of huawei joining us from san francisco. You are pulling back on your core business and in the united states. I believe when you are taught french journalist, you had difficulty with the u. S. Lawmakers concerned about your relationship with the chinese government. Can you talk to us about your you business right now . Your u. S. Business right now . We are not a leaving the u. S. We are growing our business. I know there are a lot of media about the interview. When utah have 40 billion company and focus him when you have a 40 billion company and you are caught in the crossfire of two large World Economic powers, it is hard to not get sentimental. The truth is, one of the greatest markets. We like it here. Does it mean you will continue to sell your Telecom Equipment to you as businesses . U. S. Businesses . I am response will for the Enterprise Business and mostly i. T. Engaged in a lot of partners and i. T. Professionals about our product line and so far the reaction has been extremely positive. Many people would like to see a supplier like huawei, who can do computer storage and networking and who also has a very solid financial. One of your main competitors has been cisco. You trail right now. You are growing faster than they are. One of the things people talk about is your ability to, with lower profit margins. What you hear from your customers about these prices you are able to offer . Are they surprised . Well, actually, what we focus on is the next inflection point. Not our competition per se. We inc. The bass competition olds who can do Cloud Computing we think the best competition is who can do Cloud Computing. We need a large platform. We had to reinvent those equipment to adapt to the Cloud Infrastructure and that is what we are good at. The Networking Infrastructure and Cloud ComputingInfrastructure Provider for 15 top world carriers. We are ready. Jane, i want to ask you a bit about what is going on in the united states, the revelations abide Edward Snowden and the extent of the surveillance policy. Has that impacted your business at all . Has it give you a boost with companies saying we are worried about the the u. S. Government relationship with some of the companies we have a working with . Well, actually, on the contrary. Giving everybody perspective that we need to separate politics from business. Government needs to do what they need to do and that is the situation for both of the u. S. And china and others. Meanwhile for business, we are private company and trying to innovate. Expand over 14 of our revenue. And it makes the conversation that was jane li. A u. S. Appeals Court Strikes down Net Neutrality and it can have an impact on Tech Companies especially netflix. That story is next. Well, actually, on the contrary. Giving everybody perspective that we need to separate politics from business. Government needs to do what they need to do and that is the situation for both of the u. S. And china and others. Meanwhile for business, we are private company and trying to innovate. Expand over 14 of our revenue. And it makes the conversation that was jane li. A u. S. Appeals Court Strikes down Net Neutrality and it can have an impact on Tech Companies especially netflix. That story is next. This is thats a bloomberg west. A shift could be coming for everybody who uses the internet. Net neutrality rules have been striking down that require all Internet Users be treated equally. This Means Companies may potentially charge more for certain kinds of content. The fcc has vowed to fight it. I spoke to sam grobart and jon erlichman. I asked what it could mean for netflix. I think immediately, the stock Market Reaction with the shares down. Do they have to change the pricing model . The all you can eat, does it go away. The quick answer is, not just yet. First of all, Everybody Loves to talk about house of cards and orange is the new black, people using netflix in a big way. The numbers would suggest that spending one hour on netflix every day even though it eases up broadband is not near the total television that people are watching. It is the early days for this. It is something that everybody in the industry is thinking about for sure. I am curious. A lot of talk among advocacy groups what it can do for competition. Generally speaking, the internet has been flat and open and will going to eight tiered model. Go into a tiered model. What does it mean . If you think about the lobbying power, all of the internet giants getting their way, thats a whole different story. If you think about the companies that have been able to set up shop very quickly through Amazon Web Services, if they have to pay changes, that may not exist. That is a bad thing for a big player because maybe they do not get the business from that player. I do think if you think about cable versus the internet, sony talking about an internet tv service. We know intel was talking about that. Maybe amazon. All of your tv, cable is come to the internet and companies are offering it for less, cable pays that. They will fight you. The Net Neutrality title is boring. Behind the scenes, huge lobbying effort and battle between traditional tv world and internet. We are talking about tv and count. Net neutrality advocates are painting a nightmare scenario where browsing is one tier and facebook and twitter is another and you have netflix and spotify, the most expensive on top. It could have major implications for everyone. But i think it could. We talk about the battle with the biggest players. Sam raises the question about the smallest players. Netflix, they could probably afford to pay a little warm weather forcing the consumer to pay more or verizon or whoever is dividing. You could make the argument that those names that you mention whether a facebook or a netflix, they become more powerful because of their price advantage because they got to scale earlier. I really think at the end of the day, it will be positioned that the consumer should not have to pay more just because of that are watching a lot. It comes down to how much you are gobbling up, how much broadband you are using . Nielsen said we but eight hours a day. Netflix diehards are watching a lot but not that amount. The technology, companies concerned about going to hd and ultra hd and also worried about compression technology. Not eating up bandwidth. They are thinking about that in the same way. Maybe it allows it to come to you without getting to this stop in the road where everybody is wondering if prices will change. Might this lead to possibly if it rolls out, sponsored access, wireless and data access from larger Media Companies which could give them an advantage where a smaller one will eat up your data . I think this opens the door for a lot of people to put their brand or message on the desk and positioned themselves in that way. I think if you go to the example of Amazon Web Services which has been the great place for people trying to take advantage of the stuff available to them, so absolutely, something to watch for. Sam grobart and jon erlichman. We are weeks away from a meeting of the minds. Tim cook will be sitting down with a samsung executive and we would tell you all of the details coming up next. Welcome back. I am emily chang. We are a month away from apple and samsung, and samsung, cap agreed to mediation in february. And they have agreed to mediation in february. We started by asking bryan about the meeting and whether he think it will yield anything new. I think this is a real effort to put all of the legal battles behind them. A distraction for both companies. They are using money that could be going into product. They want to get this behind us and focus on our own products. Is it possible . It is. A lot of bad blood. If they have to come to the table with a solution and hopefully they will and will be great for them not to be tied up in court and focus on what is going on. Let them fight it out into the public. You talk to either of the companies and they said they were rather not be doing this. Cook said i hate litigation. Hate it. Samsung feels the same way. There is a lot of law firms that are happy. They are make a ton of money. A lot of people would like to see it. My prediction is it will end at this year. It will be worked out. What sounds some will say we copied the iphone early on and one not to do it. Samsung will say we copied the iphone early on and we will not to do it. You saw some interesting stuff. Samsung came out with connected home. A big trend. It leaves me to wonder what apple is doing right now. They are not doing anything with connected home. It is interesting because with google acquisition of nest, google cares a lot about it. Connected to the thermostat. Other companies are moving. Qualcomm showed the way their devices and appliances are connected to the future. They are doing a new gateway. It will divert bandwidth where it is needed. Apple does not seem to care about this market. There is one way that are connected. It all comes through this. And that is true. If you have the new services and ties to a smart phone, apple is hoping when you think of a smart phone you think of theirs. Does it matter if they are missing this a boat . The home is the fabric of everything. The perception is apple is not trying to buy any pieces of the puzzle for the smart home. They do have the app. If you do see a television, that could be the way that they get into the smart home business. They are not going after these appliances. What you think the television will happen this year . But there is no evidence. There is evidence we could see a smart watch or wearable this year. I do not think there is evidence that we will see a tv this year. Do you think the tv industry, panel making, it has been a lousy business. Not a great one. We are at the beginning of seeing an upgraded cycle from traditional hd to 4k. Twice the resolution. Samsung came out with a huge one. Lg. Sony. All of them are bendable or curved. This is an opportunity for apple to get in the television business. You think they will . I think they will. They play around with a lot of things that do not come to market. This might be one. It is uncertain. Can i talk about Something Else i saw at ces . The connected car. Apps and parcels one of the biggest trends. Ford and jim and mercedes gm and mercedes. The little screen in your car is getting smart. Facebook and pandora and available in the vehicle. Google with android. They are trying to find partners. It will be a big battleground. Ios for cars. It is going to integrate with ios and we will see it throughout the year. Google is trying their own. Give me a time frame. Cars have a long lifecycle. If you buy a car, you have an option to the connected car. If you buy a tesla, you have it. Toyota models that can do pandora. There are a few cars in the act as a wifi hotspot. If you buy a new car, you can have that. It depends. When you look at google and apple, how do see them stacking up in terms of how much of the territory . Apple will win the car war because they are not trying to own the screen but be compatible. And let them own the screen. Google owns the screen in the audi. It is valuable real estate. Automakers are conservative. This speaks to apples strength. It is updated system. Android with some of the fragmentation is more the wild west. Not sure what you might be getting. The carmakers say i like dealing with one company knowing what i am getting. Lets talk more about 3d printing. I mean, will i be wearing 3d printed clothing and food . In 10 years, you will be doing some of those things. Ces, a lot of those stocks of moves in 2013. 3d printing. Up 100 . Some of the smaller players up even more. What was different is you got a glance at the whole ecosystem. Theres a whole ecosystem of Companies Working on 3d scanners and to the software to make it easier so you can have the option of buying the 3d printer in your home and making an iphone case or it rains or what ever you want. The big question is where is the Tipping Point . We do not know. We do know it is getting easier and cheaper to buy the machines. How much does it cost . A good one for 1000. It can make anything in a small form factor. For 500, you can buy a mediocre one. There are a few stores right in new york. You can actually go in and see what is possible now. We will see more across the country. A very important trend. Sam grobart with brian blair. From millions of dollars in debt to equity, foursquare ceo tells us about the mobile tech company come back. This is best of bloomberg west. We are talking about foursquare. They had doubters when they launched. They raised 41 million in debt. Many wrote them off as dead. The company has made a comeback, and in 35 million. I recently sat down with sam grobart and foursquare ceo dennis crowley. We have been about location discovery. The things we figured out last year were how to monetize the universe. The second big piece of it is exploring what we can do with ambient location. We think about what happens if you do not check in wherever you go. If your device knows youre in a new city or part of town or russia for the first time. You just walk into a bookstore for the first time. What can you do with those interactions . We continue to raise financing and are wellfunded. We want to get to continue working toward our roadmap. What can you tell us about growth . Both times we talked about 6 million checkins a day. Is that growing . There are a lot more people using foursquare. Theyre finding new places. Can i bring in a personal anecdote . I was never a big foursquare user. I did not worry about checking in. I am married and have kids. When i realized i could use it as a recommendation app, it was not about broadcasting my presence but i could see were my friends had been and what they like, it snapped for me. That is more in line with what i would like going forward. The checkin may not be for everybody, but people use it for recommendations. We get a strong signal that this is something the users love. We are continuing to explore that. We love that foursquare recognizes when you enter a place. If you walk into a clothing store, we can alert you. There is a special here, you can use your amax and serve 20 . This is telling you about the things that interest you. That is a powerful thing. Talk about the moneymaking potential. Youre expected to make a lot more money this year than you did last year. How . We build tools that are effective in helping drive customers and local businesses. One of the things that we do better than anyone else is we prove the effectiveness of the app. We have not had a way to generate or evaluate the number of people who came into your shop and a number of people who checked in. That is a check that we can do that no one else can do because we have all those check in. Can you give us any numbers . We do not have to share a lot of that. I would love to, but i do want to surprise. Last year was a great year for us in terms of generating revenue and getting product in the marketplace. Every quarter, we doubled revenue. We are expecting good things by the end of this year, too. I guess you are into wearables. Do you have a future in Wearable Technology . We think about what is of best version of foursquare. Not one you have to pull out of your pocket and use, what are the other displays it we might access . What can we do with displays of the wrist . What can we do with google glass . We have a prototype where you walk into a place it will buzz you and tell you friends are nearby or tell you about his two places. Sam grobart and foursquare ceo dennis crowley. Our special series on ai beyond robots is next. Welcome back to the best of bloomberg west. Im emily chang. We did a special series on Artificial Intelligence. We take a look at how ai has changed the way we communicate and will change the way we live our lives in the future. I had a chance to sit down with david ferrucci, a scientist and creator of ibms watson supercomputer. We started by asking how watson came to