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

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is introducing a new phone. It's called the Pixel. It also is introducing an Amazon Echo Fighter. And here to tell us more is Gene Munster. He is managing director of Piper Jaffrey in Minneapolis. He can be followed on Twitter at a Gene Munster. Alright, Jean, tell us what is the most relevant for you? Is it the the Echo Fighter that the Google has introduced, Alphabet has introduced, or or is it the new the two new phones the pixel and the pixel XL, the pixel and the

pixel sl THO. They are called Hero Phones, which basically Google puts them out. This is a rebranded Nexus phones and they put them out there so other hardware Android hardware manufacturers like Samsung or HTC can get an idea of what having Android in its purest form looks like. And imagine if Android was an iPhone. That's essentially what

these pixel phones are. The reason why that's a significant is this is going to implement day Dream, which is a new platform from Google that will help VR work more seamlessly on your phones and you put them in those headsets and this is a big mackerel theme for the next decade is going to be VR. And so that's why we see this being the more important of the two announcements. The just this importance of moving the

VR theme forward. Uh that said, is that the home the Echo competitor is important because it's an example of how we're using technology and more of a seamless environment and probably the best example of how the interface of technology is changing. It used to be a keyboard, mouse and touchscreen and now it's our voice, our eyes, gestures and eventually can be our thoughts and using voice is a powerful thing that Google has happened into at home. It's a big, big step, it seems they're taking in

so many directions. I am. I guess I'm especially interested in the handsets, the phone part of this because, for example, Mark German, one of our Bloomberg News correspondents, following this, he said, behind the pixel, Google's first real threat to the iPhone? Is it a real threat to the iPhone? And how how much is that Google's intent? It's it's their intent to build a phone that is competitive. In order to be competitive, you have to be a competitive

to the iPhone. It's not going to change iPhones fortunes over the next several years. What is going to happen is that most likely is that you're going to see Samsung users they're looking for a reason to go to a different phone. At this point, HTC, other Android manufacturers, those people that would are loyal to Android. But this is not going to be enough to get a person who's committed, and we measure how committed people out of their iPhone, it tends to be close to n to switch.

I'm wondering if you could describe for us this combination that is supposed to take place. I guess in the living room right where you've got your phone. You're going to have your Echo or your Aloe or your voice recognition device, and then maybe you're going to have your Roku or your Firestick from Amazon or the Apple television. How is that all coming together and what does that apply for investors? Well, right now, it's it's not coming

together very seamlessly. You just described it perfectly. Is that you have a lot of different solutions that are kind of all doing something slightly different that kind of want to all circle back to your primary hub, which is your phone and some of the applications on top of

your phone. The substance of how this is going to come together is there will likely be a box eventually, whether it's a Roku box or a fire TV or Apple TV that has some of these personal assistants to Echo, like the listening the active listening features, and then also can control your TV. And that's when your TV becomes the hub that's been referred to for a long time.

You'll still have your phone. Eventually, your phone is going to be foldable because glass is going to be foldable, and it will become your tablet, So your tallet probably goes a way over time, and you have some device that's carried with you all the time and then a device in your home, and those two will probably be from the same You'll probably be running the same platform on both of whether it's iOS or Android. From an investment standpoint, gen, how do you assess this this big project?

This is this a big undertaking from alphabet slash Google. Well, it's they spend a lot on R and D. They spent about twelve million dollars a year on R and D. That compares to Apple about ten billion, and so there's a lot of different places that they can go with twelve billion dollars. If you're going to try to think of how much of that money is going into some of the stuff that we've announced today, it's probably relatively small.

We're probably talking about a billion dollars worth. And and they spend most of their money in trying to make search better. And part of making search better is is this artificial intelligence the ability to use voice and your common stream of speaking as a way to engage with Google. And so there are places that play into that. The key takeaway is this is there investing money, not all that, but a lot of money into this, and what they're trying to do is really get ahead of how we're

going to interact with computers in the future. And that's why it's so important for Google, whether we're enacted with computers through virtual environments or through more voice like at home and so those combined. Well, Gene Muster, thank you so very much. He's managing director at hyper Jaffrey talking about the new Google phone and home products announced at Altfit's big event today. I'm Kathleen Hayes along with Pim Fox. This is taking stock on Bloomberg Radio. Keep it right here.

This is Bloomberg coming up another revolution when it comes to the telephone industry. You're gonna meet Craig Walker. He's the founder and the chief executive of dial Pad. That's next