Health kit and a developer called home kit. Features aside, did apple hit a home run or were they missing something . Our editor at large cory johnson spoke with author of jony ive. And he is the editor and publisher and has covered apple for more than a decade. We were joined by one the most widely followed analysts, founder and author of simco. He came from finland to attend the conference. We asked him how the conference stacked up. I think it was amazing. One of the best shows. Why . You need to get out more. Cirque de soleil is was very different. No, you are right about that. I was a developer when i was at college. For me, when they announced the new language, it was a watershed event. These things do not come as often. Apple has three of these in its entirety existence. What it means for developers is productivity, massive increase in types of applications they can build. It was all about all of these Building Blocks which have flooded in. 4000 apis. I do not think they have done anything close to 2000. It is mindboggling. As far as my heart is concerned and the developer community, it was a wonderful event. If i put my hat on as a business analyst, that was not a lot to get excited about. The way i would put it, it is like going to a cement conference and learn all about cement and you want to see the skyscrapers that can be built. They hinted at that with the new oss. They can build a whole city. One of our earlier guests reminded us is a Worldwide Developers conference. Not the Worldwide Press conference. You have been nodding. Would you agree . He is not being as optimistic as he might like to be. They show us they are looking at three massive areas. The home, health, and mobile payments. And all of them have huge implications for the next few years and it is what tim cook said is true, these may be indications of the three things they are looking at which is an iwatch or home technology. Youre the jony ive expert pardon me. You are the expert on him and how he thinks. I think his work is being very close. Fewer buttons on a device, whether the ipod or walle, you have to write when he is in charge and all types of new options ladled onto the os experience. Explain. It has always been very sophisticated. Simplified to make it easy. The one button mouse if you put three buttons on it, people will click the wrong button. The operating system behind it. Always very, very sophisticated. Theyre hoping apple and developers make it easy to use. There is an old saying in design that it is very hard to make systems foolproof, because fools are so ingenious. In the sense it is hard to make things easy. Thats what we are seeing. It is being introduced. All the things that will make it easy but complex at the level we are looking that. Talk to us about jony ive as a person and leader. This is the first time he has gone to put his stamp on the desktop. What did you see as his trajectory with apple . It is funny, because it is a maverick. It is surprising. They do not sell as many computers as ios devices. I am surprised they spend so much time on maverick. They cleaned it up and it looked great. Very clean and simple. I think it looks beautiful. A very nice interface. They keep it separate but making it work quite well with ios so the collaboration features have a handoff, the way they were able to start work. It shows that both are very important. Theres a clean and unified design. An aesthetic across them both. You can move from one to another. I would say they are learning more from the design cues. They are coming from ios. What we saw last year is starting to percolate or trickledown. There is an interesting thing, from the designers point of view, the devices are constrained. They are smaller. And so what did they are designing around the strengths strengths the constraints and bringing that to a more rich environment. That is the direction to go into. Constraints make you work harder as a designer and that is what we are seeing the benefit all. Leander, you have a quote from jony ive. The real risk is to think it is safe to play it safe. How does he think about innovation . He is innovating like crazy. Behind the scenes. Google has gotten a lot of praise last week for the driverless car. People compare it to apple. When will apple come up with . They havent had anything in 3 years. Here is google reinventing the future of driving. People misunderstand. What they have is a demonstration of potential technology. It is not ready for prime time. Apple does it all behind the scenes. What we see today is results of many years hard work. We will see the kind of innovation behind closed doors. I want to talk about the presentation today and will present and who do not know what it means. We heard from tim cook and greg. Nothing from jony ive. Bill schuler, heading up they did the demo of ios, i suppose. And he was represented by his team, i think. Essentially, what we are seeing is a rotation of some fresh faces each year. We are seeing people we did not see before or may not see frequently. Ive seen there is a concerted effort to show a team effort. And there are no stars . They are all stars. Lets say it in that way. Politically. Also, at the end, everybody will contribute, they took a bow. That was Leander Kahney and horace dediu. And my partner cory johnson. This is apples chance to dazzle. What did experts think about the companys announcement . That is next on best of bloomberg west. Welcome back to best of bloomberg west. Apple conference keynote was a live stream worldwide. The company was really putting on a show for its developers. Cory johnson and i spoke with mr. Schank. And they depend on developers to fuel their business. I asked phil how important the announcements were for his company. I think it was the most developer centric keynote ive been to. I get really excited about this stuff. Consumers say, what about me . All of the excitement about the environment and language, it is very developer centric. It will lower the learning curve. It is not what customers will see. Do you think it will really lower the learning curve . I just heard new language. Codes i dont know if it made it simpler or harder. And that is all i know. It is based on languages that developers know, javascript. Things people are familiar with. You think it happens faster and cheaper . That is what i expect and our guys are excited about. Developing on android and they are excited. Are you developing on android . We are a mobile only company. App only. We operate on all of the major platforms. From your perspective, does apple still have we got a lot to back this morning. Android has really made some big strides. Being very developer friendly. They went all out. Make it easy to do beta testing and deploying different features two different people and a lot of epis communicate with each other. Up until recently, it was missing from apple and i think they caught up. It is hard to judge the success during a keynote. Apples faithful will cheer at everything. Tim cook can hold a coffee cup and they will say, coffee cup i would buy that. Yes, you would. The mobile stuff, the crowd was very excited was beta testing. Allowing apps to be tested by groups. A company could sell, for zynga could bundle them all up together. The huge thing for us, the productivity in general. The extensions of apps hooking into each other and the operating system. Its the interoperability of the mac and the phone. You are right, that consumers will not see a major change tomorrow but within two or three months. This is going to be huge for consumers. I can see that being huge for company especially like evernote. What about this whole idea of innovation . And if apple is still innovating . Do you feel it is still there . It is where we started as a company. We started because we were so excited about the iphone and we wanted to build something for it. It was our inspiration still at where we developed our first features and where we get feedback and where our top uses are still using iphones. That is something that has not changed in the past 3. 5 years. It says a lot for the platform and the users. And also, it continues to deliver. How about you . Our apple uses are more valuable per user than android users. Measured by what . Money. How wealthy that are or how much they spend . That is mac versus windows. Ios versus android. Android performs very well also. I think apple is very innovative. People can say they are not innovative at the innovation is the only way you have completely new looking piece of hardware. That only happens every few years, the in between, it is taking a great idea and making it better and better. I think the last time it happened was in 2010. Maybe that is a long time. Maybe it should be happening faster. I am hoping there is new hardware later in the year. I agree. Some kind of a fitness or watch would be fantastic. But i think actually, with today announced today was deeply innovative. Putting in this kind of functionality in a way that preserves the security and feel of apple products as hard. It is incredibly hard to do. The fact that they kept it a secret is no small feat as well. To orchestrate, a development language. I am amazed they introduce a new computer language and nobody knew about it before hand. You do not do it in secret. How long does it take to be implemented . Everybody has to learn it, right . I am going to learn it pretty soon. Its not like you have to switch. Have to use swift. Most people will not switch to it right away. Thats a much longerterm thing. We will look at and see apps appearing on it on day one. And components of apps where it can add performance. That will be the first things. You do not have to pore over the entire out. Sam shank and phil libin. Can a tv host stop the fcc from creating fast lanes . Why john olivers rant on Net Neutrality flooded the fcc website. That is next on the best of bloomberg west. Welcome back to the best of bloomberg west. The fcc is facing a growing backlash about Net Neutrality and fast lanes. Tens of thousands of people flocked to the fcc website after john oliver urged viewers to post comments in a 13 minute monologue in support of Net Neutrality. Right. The fcc is literally inviting internet comments at this address. And i cannot believe i am about to do this, i would like to address the commenters out there directly. [laughter] good evening, monsters. [laughter] this maybe the moment you spent your whole Life Training for. And indeed, the fcc website went down following the speech by john oliver. There are more than 49,000 comments on the issue. A huge number compared that most topics have hundreds. Cory johnson spoke with the former fcc chairman and ask if you ever seen a public response to fcc issues this big. Back in the day, in the 1990s, we had aol, steve case was the ceo, the email of of arranged the first email of political lobbying, 400,000 emails were sent to the u. S. Congress to tell them to keep the internet open. It is the same issue, many years later. And the power of the net has grown and the chairman is getting an earful. On some level, i feel like ive not done a great job of explaining what this is. The notion is some things on the internet will be allowed to come to you faster. If some Companies Want to pay for that. Theres a bigger framework and i was wondering when you were at the fcc, how did you position the internet and decide how to regulate it . The fundamental view of the fcc ever since i was there in the Clinton Administration has been the internet really ought to be open to all users and that include people who put content out and just want to see the content. And it ought to be neutral that anybody can put content out and anybody can access it. I am on the board of issa and we we assia and we are launching this friday a particular application which anybody can download for free. Download for free assia on a smart phone. You will be able to measure in your house, your wifi speed. You will be able to find out if you are getting the internet that you paid for. If you are from comcast, you will be able to find out if they deliver. The point of the fcc is you ought to be able to go as fast as you purchased. You should bid to go and the fast lane you chose to any website and any content. I think its a fundamental, it gets at fundamental beliefs about government responsibility. Fundamentally, if comcast has to deliver everything at a high speed, they take on a greater cost for the burden of a what . For the benefit of home . Of whom . For the benefit of the you and me. Do you want to the cable guy or Cellular Company to be between you and the content . They are between you and the content. Do you also want them to close some doors and open other doors . Slow some access speeds and increase some speeds . That is the fundamental issue at the fcc. The starting point is knowing that you are getting what you paid for. The assia application will let you know if you are getting what you paid for. And not that we have concerns over what what roberts viewpoint. If somebody has that control, it erases free speech. I was surprised to see john oliver take it on. Let me play a brief clip. You bet. These companies have washington in their pocket to conveniently degree. Almost unbelieveable degree. Comcast has spent 18 million in lobbying last year. More than any other company. Just to be clear, the ranking who buys government influence is number one, the militaryindustrial complex and number two, the provider of lizard lick towing [laughter] yep, bloomberg west viewers got a look at that before. I wanted to the issue that we we i wonder, to that issue, we tried to bring coverage to earlier, what about the revolving door concern and the concern that tom wheeler and others cannot be fair because thereve gotten so much influence from lobbies in washington . Back when the internet was in its early days, all of us in washington, we were having this discussion, we wanted the internet to be a platform for grass roots. What you are seeing in these comments to the fcc is basically what we hoped for. We hoped everybody call log on to the fcc website, sorry it crashed, it needs to be beefed up. Log on and submit comments. I want people to download this free app from assia and put on their smartphone and measure the bandwidth in their house and to tell the fcc if they are getting what they paid for. You will get a heck of a reaction from government if you report you are not getting what you paid for. And if you are, compliment your cable guy or cellular guy. But participate. It is a free app. There is the fact that [indiscernible] kind of pathetic to some the faster countries. There is nothing wrong with the whining about it. Download for free app and submitted to the fcc if you are not getting what you paid for. Tell them you do not want to be in japan to get fast internet. Cory johnson with reed hundt. Coming up, we look at the rapid rise of chinese phone maker, xiaomi. Apple competitor in under four years we explore, next. Welcome back to the best of bloomberg west. I am emily chang. Here is a look at xiaomi and their rise to power player. Xiaomi is no longer little. Ceo lei jun helped found the company. In 2010, he launched its first androidbased firmware. Meui. In 2011, xiaomi took on apple with its first smart phone. They have introduced products every year with great fanfare. How did xiaomi rise so far so fast . First, there is the price. At 270, it costs half of the cheapest iphone in china. Then there is the business strategy. They sell directly to consumers online. With limited quantity available. A oneday sale brought in a 241 million in orders. When the new phone launched last year, they sold 100,000 phones in under 90 seconds. They plan to expand outside of china. 10 new markets, trippling shipments. Xiaomi just dropped the little from its domain name. Proving this 10 billion startup is starting to think a lot bigger. Corey and i spoke with brad stone who was in beijing where he attended the tablet launch. He spoke with bin lin. This takes an indepth look at Technology Companies outside Silicon Valley. Also joining us from london is a former google exec. I think it is very impressive. One of the things that we need to point out is xiaomi is successful not because it is a lowcost copycat. It is easy in the west for us to think that. They have a great product and an affordable price. As brad mentioned in his article, their Business Model is very disruptive. They are not a global power yet. This model could be disruptive to somebody like apple or samsung. Part of that is selling direct to consumers. There are no retailers. They cut out the middleman. That is a 25 margin. They also dont advertise. Its one of the first Tech Companies to grow up relying on social media. That is attracted to the star power. That is a big question. Can they translate that to other countries . The google dna that runs to this happening is interesting. Through this company is interesting. From your standpoint, what do you see about this company that has taken notes from google . That is a great question. There is a flavor. It is commoditizing a layer and giving it away. Xiaomi is not given away the hardware. Most speculate they cant be very much margin on this. They are ok with that. Xiaomi is dependent on the android ecosystem and being compatible with it. Android is a google product. Xiaomi is a flavor variant of top of that. It is very important to stay in sync with google and android. Let me ask you a question. If google was a more active participant or to submit in china, if they can have pure android in china, would be as successful as it is . I think so. I do think so. I certainly think that the miui is the other thing that people dont appreciate. That is the innovation. It is very much based on user feedback. They push out software on a weekly basis. That is a very google thing. To launch something and continuously innovate on it. You can imagine that they would call their phone a beta phone. Bin lin was a longtime google executive. They all came with their different backgrounds and brought their own superpower to help give xiaomi what it used today to get to the top. The reason that he felt free and had the entrepreneurial spark and left a google was because they organized its operation. A lot of the googlers were based in beijing. They felt that there work was being lost by the reorganization in china. He told me that was the spark that had him leave. Some of the other founders and early employees were free to build this company. I want to talk about the suite of products they have. Lets listen to the launch. This is what is the potential. We want to make the best android tablet out there. I hope that our efforts will put some pressure on apple that not all android tablets are hidden away. In drawers. We want to make a tablet that Everyone Wants to use. This is a guy wh