Latest / Bloomberg Intelligence / Gene Munster on GOOGL: VR Is Big Theme For Next Decade (Audio)

Transcript

Gene Munster on GOOGL: VR Is Big Theme For Next Decade (Audio) · Bloomberg Intelligence

• 0:03
  Speaker 1: Global business news twenty four hours a day at Bloomberg
• 0:06
  Speaker 1: dot com, the Radio, plus Globolact and on your radio.
• 0:09
  Speaker 1: This is a Bloomberg Business flash from Bloomberg World Headquarters
• 0:13
  Speaker 1: on Katherine Cowdery Bloomberg. Taking Stock is brought to you
• 0:16
  Speaker 1: by c I T. From transportation to healthcare to manufacturing.
• 0:20
  Speaker 1: C I T offers commercial lending, pleasing, and treasury management
• 0:24
  Speaker 1: services for small and middle market businesses. Learn more at
• 0:27
  Speaker 1: c I T dot com Put knowledge to work. Wall
• 0:31
  Speaker 1: Street is retreating after fluctuating between gains and losses earlier. Today,
• 0:35
  Speaker 1: Investor c is six chance of the Fed raising rates
• 0:38
  Speaker 1: in December. That's up tem percentage points from a week earlier,
• 0:42
  Speaker 1: and it follows comments from Fed Bank at Cleveland President
• 0:44
  Speaker 1: Loretta Mester. Utilities falling for an eighth session, while consumer
• 0:48
  Speaker 1: stables and phone companies retreat, with their relatively generous payouts
• 0:52
  Speaker 1: losing favor as bond yields climb. We teck the markets
• 0:55
  Speaker 1: every fifteen minutes throughout the trading day on Bloomberg Radio.
• 0:58
  Speaker 1: Down Industrial average is down nine the eight points half
• 1:01
  Speaker 1: a percent trading at eighteen thousand, one fifty five. SMP
• 1:04
  Speaker 1: five foundered down eleven points, a loss of half a percent,
• 1:07
  Speaker 1: trading at twenty one fifty. Then Azack is down fifteen
• 1:10
  Speaker 1: points three tens of a percent, trading at fifty two
• 1:12
  Speaker 1: eighty five. West Texas Intermediate crude oil down just two
• 1:16
  Speaker 1: cents of barrel right now, trading at forty seventy eight.
• 1:19
  Speaker 1: Spot gold down three percent. That's a loss of forty
• 1:21
  Speaker 1: dollars and ten cents announts trading at twelve seventy two
• 1:24
  Speaker 1: sixty and that tenure Treasury down seventeen thirty seconds, driving
• 1:28
  Speaker 1: the yield up to one point six twelve percent. And
• 1:31
  Speaker 1: that's the Bloomberg Business Flash. This is taking stock with
• 1:35
  Speaker 1: Pim Fox and Kathleen Hayes on Bloomberg Radio. Google. Google
• 1:41
  Speaker 1: is introducing a new phone. It's called the Pixel. It
• 1:45
  Speaker 1: also is introducing an Amazon Echo Fighter. And here to
• 1:48
  Speaker 1: tell us more is Gene Munster. He is managing director
• 1:52
  Speaker 1: of Piper Jaffrey in Minneapolis. He can be followed on
• 1:55
  Speaker 1: Twitter at a Gene Munster. Alright, Jean, tell us what
• 1:58
  Speaker 1: is the most relevant for you? Is it the the
• 2:01
  Speaker 1: Echo Fighter that the Google has introduced, Alphabet has introduced,
• 2:06
  Speaker 1: or or is it the new the two new phones
• 2:08
  Speaker 1: the pixel and the pixel XL, the pixel and the
• 2:11
  Speaker 1: pixel sl THO. They are called Hero Phones, which basically
• 2:14
  Speaker 1: Google puts them out. This is a rebranded Nexus phones
• 2:18
  Speaker 1: and they put them out there so other hardware Android
• 2:21
  Speaker 1: hardware manufacturers like Samsung or HTC can get an idea
• 2:26
  Speaker 1: of what having Android in its purest form looks like.
• 2:30
  Speaker 1: And imagine if Android was an iPhone. That's essentially what
• 2:34
  Speaker 1: these pixel phones are. The reason why that's a significant
• 2:38
  Speaker 1: is this is going to implement day Dream, which is
• 2:41
  Speaker 1: a new platform from Google that will help VR work
• 2:45
  Speaker 1: more seamlessly on your phones and you put them in
• 2:48
  Speaker 1: those headsets and this is a big mackerel theme for
• 2:51
  Speaker 1: the next decade is going to be VR. And so
• 2:54
  Speaker 1: that's why we see this being the more important of
• 2:57
  Speaker 1: the two announcements. The just this importance of moving the
• 3:01
  Speaker 1: VR theme forward. Uh that said, is that the home
• 3:07
  Speaker 1: the Echo competitor is important because it's an example of
• 3:11
  Speaker 1: how we're using technology and more of a seamless environment
• 3:15
  Speaker 1: and probably the best example of how the interface of
• 3:19
  Speaker 1: technology is changing. It used to be a keyboard, mouse
• 3:21
  Speaker 1: and touchscreen and now it's our voice, our eyes, gestures
• 3:26
  Speaker 1: and eventually can be our thoughts and using voice is
• 3:29
  Speaker 1: a powerful thing that Google has happened into at home.
• 3:33
  Speaker 1: It's a big, big step, it seems they're taking in
• 3:36
  Speaker 1: so many directions. I am. I guess I'm especially interested
• 3:40
  Speaker 1: in the handsets, the phone part of this because, for example,
• 3:44
  Speaker 1: Mark German, one of our Bloomberg News correspondents, following this,
• 3:48
  Speaker 1: he said, behind the pixel, Google's first real threat to
• 3:52
  Speaker 1: the iPhone? Is it a real threat to the iPhone?
• 3:54
  Speaker 1: And how how much is that Google's intent? It's it's
• 3:59
  Speaker 1: their intent to build a phone that is competitive. In
• 4:03
  Speaker 1: order to be competitive, you have to be a competitive
• 4:06
  Speaker 1: to the iPhone. It's not going to change iPhones fortunes
• 4:09
  Speaker 1: over the next several years. What is going to happen
• 4:13
  Speaker 1: is that most likely is that you're going to see
• 4:16
  Speaker 1: Samsung users they're looking for a reason to go to
• 4:18
  Speaker 1: a different phone. At this point, HTC, other Android manufacturers,
• 4:23
  Speaker 1: those people that would are loyal to Android. But this
• 4:27
  Speaker 1: is not going to be enough to get a person
• 4:29
  Speaker 1: who's committed, and we measure how committed people out of
• 4:33
  Speaker 1: their iPhone, it tends to be close to n to switch.
• 4:37
  Speaker 1: I'm wondering if you could describe for us this combination
• 4:41
  Speaker 1: that is supposed to take place. I guess in the
• 4:43
  Speaker 1: living room right where you've got your phone. You're going
• 4:46
  Speaker 1: to have your Echo or your Aloe or your voice
• 4:50
  Speaker 1: recognition device, and then maybe you're going to have your
• 4:53
  Speaker 1: Roku or your Firestick from Amazon or the Apple television.
• 5:01
  Speaker 1: How is that all coming together and what does that
• 5:03
  Speaker 1: apply for investors? Well, right now, it's it's not coming
• 5:08
  Speaker 1: together very seamlessly. You just described it perfectly. Is that
• 5:11
  Speaker 1: you have a lot of different solutions that are kind
• 5:13
  Speaker 1: of all doing something slightly different that kind of want
• 5:16
  Speaker 1: to all circle back to your primary hub, which is
• 5:18
  Speaker 1: your phone and some of the applications on top of
• 5:21
  Speaker 1: your phone. The substance of how this is going to
• 5:25
  Speaker 1: come together is there will likely be a box eventually,
• 5:28
  Speaker 1: whether it's a Roku box or a fire TV or
• 5:31
  Speaker 1: Apple TV that has some of these personal assistants to Echo,
• 5:35
  Speaker 1: like the listening the active listening features, and then also
• 5:40
  Speaker 1: can control your TV. And that's when your TV becomes
• 5:43
  Speaker 1: the hub that's been referred to for a long time.
• 5:46
  Speaker 1: You'll still have your phone. Eventually, your phone is going
• 5:49
  Speaker 1: to be foldable because glass is going to be foldable,
• 5:52
  Speaker 1: and it will become your tablet, So your tallet probably
• 5:54
  Speaker 1: goes a way over time, and you have some device
• 5:57
  Speaker 1: that's carried with you all the time and then a
• 5:59
  Speaker 1: device in your home, and those two will probably be
• 6:02
  Speaker 1: from the same You'll probably be running the same platform
• 6:04
  Speaker 1: on both of whether it's iOS or Android. From an
• 6:06
  Speaker 1: investment standpoint, gen, how do you assess this this big project?
• 6:12
  Speaker 1: This is this a big undertaking from alphabet slash Google. Well,
• 6:18
  Speaker 1: it's they spend a lot on R and D. They
• 6:20
  Speaker 1: spent about twelve million dollars a year on R and D.
• 6:22
  Speaker 1: That compares to Apple about ten billion, and so there's
• 6:25
  Speaker 1: a lot of different places that they can go with
• 6:28
  Speaker 1: twelve billion dollars. If you're going to try to think
• 6:32
  Speaker 1: of how much of that money is going into some
• 6:34
  Speaker 1: of the stuff that we've announced today, it's probably relatively small.
• 6:38
  Speaker 1: We're probably talking about a billion dollars worth. And and
• 6:41
  Speaker 1: they spend most of their money in trying to make
• 6:44
  Speaker 1: search better. And part of making search better is is
• 6:47
  Speaker 1: this artificial intelligence the ability to use voice and your
• 6:50
  Speaker 1: common stream of speaking as a way to engage with Google.
• 6:55
  Speaker 1: And so there are places that play into that. The
• 6:57
  Speaker 1: key takeaway is this is there investing money, not all that,
• 7:01
  Speaker 1: but a lot of money into this, and what they're
• 7:04
  Speaker 1: trying to do is really get ahead of how we're
• 7:06
  Speaker 1: going to interact with computers in the future. And that's
• 7:09
  Speaker 1: why it's so important for Google, whether we're enacted with
• 7:13
  Speaker 1: computers through virtual environments or through more voice like at
• 7:16
  Speaker 1: home and so those combined. Well, Gene Muster, thank you
• 7:21
  Speaker 1: so very much. He's managing director at hyper Jaffrey talking
• 7:26
  Speaker 1: about the new Google phone and home products announced at
• 7:30
  Speaker 1: Altfit's big event today. I'm Kathleen Hayes along with Pim Fox.
• 7:36
  Speaker 1: This is taking stock on Bloomberg Radio. Keep it right here.
• 7:40
  Speaker 1: This is Bloomberg coming up another revolution when it comes
• 7:48
  Speaker 1: to the telephone industry. You're gonna meet Craig Walker. He's
• 7:51
  Speaker 1: the founder and the chief executive of dial Pad. That's
• 7:55
  Speaker 1: next