Lyft and the Gig Economy (Podcast)

the number of jobs forecast added in July. I will ask LIFTS president about the state of the gig economy as murmurs of a recession get quieter for now still, the housing market cooling after rate heights make home buying that much more expensive. Power platforms like Zillo and Redfin reassessing after years of unprecedented demand. Redfen CEO Glenn Kellman also with us this hour, and Lincoln co founder Reid Hoffman wants to sell you are created by a computer.

Will tell us what it was like to sell a collection of AI generated n f T and what it tells him about the future. We will get to all of that in a moment, but first, for more on LIFT results in the state of the gig economy, I want to bring in John Zimmer, co founder, vice chair and president of Left John great to have you back with us. What changed this quarter. It seems like a switch was flipped or you shifted into a new gear. Yeah, we had a we had a great quarter record high

adjusted I BADA profit for the company. The team did phenomenal work. UH, and we really made some adjustments going into the quarter. But also the business conditions are improving for us on the driver's side. UH, drivers are doing well. They had you know, thirty seven dollars on average UH an hour for their earnings. UH. And we're much more imbalanced so year over year are e t A S which is a great level of or measure of service levels came down three minutes. So really happy with what

we're seeing in the marketplace. We got positive jobs now use today kind of a surprise. But I wonder how concerns you still are about the macro environment. We've got inflation, you still got high gas prices, and you've got a recession looming. Yeah, we were watching it obviously closely. I think there are positives and negatives for our marketplace. UM. When you have more people looking for flexible work with good earnings. UM. You know, as we're seeing right now,

it does help us on the driver's side of the equation. UH. And and writers are still coming back because you know, we're coming off the bottom of a pandemic that really uh, you know, affected and hurt our business, and so there's a lot of headroom left. Uh, And the driver's side of the equation improving is really nice to see. I spoke to your competition this week. Here's Uber CEO Dara Kasbasha, he who said he thinks Uber is a recession resistant company.

Take a listen to what he had to say. Because we're in multiple businesses, both in mobility and delivery. I think we have a kind of business that can perform in all weather. But at the same time, we are being disciplined in terms of costs to make sure that as the environment, if it gets tougher, we are prepared. John,

how would you described lists chances in a recession? Are you any less recession proof if you will, because you don't have a delivery part of the business, for example, I think we're in a better position if you think about you know, people having less discretionary money to spend, uh, do they spend it on you know, inflated ordering in food that that has become inflated, or do they make

food for themselves? Um? And actually we looked back at historical data and transportation is quite durable compared to take out. So let's talk a little bit about your strategy around costs. You know Ed was just talking about more layoffs at tech companies. I know you talked a little bit about hiring on the call. What's your strategy when it comes to spending? Are you pulling on the brake or are you stepping on the gas like Airbnb CEO Brian Chesky

told me he's doing earlier this week. When it comes to spending for growth and hiring, we're being quite cautious. So we we really slowed our hiring at the start of the quarter um and at first frozen outright and then only opened up the head count that we saw as incredibly valuable to our to our plans to drive profitable growth. So I'd say we're gonna be you know,

continued to be cautious. Uh. And and on hiring specifically, UH still do some but but not put the pedal down when it comes to hiring and just retaining employees. How are you keeping people motivated? I know today this week was a particularly great week for lift shares, but they are down significantly since I p O and down more than some of your industry peers, if you will. Yeah, we have a phenomenal team that's been with us through a lot of the ups and downs of the past

couple of years. The team, UH, you know, at all levels, and especially the leadership level, is battle tested. I've never seen a more cohesive feeling for for our leadership team, and then I have over the past few months. I'm confident we're retaining talent, We're hiring phenomenal talent, so we're we're in a good place because people love the mission level we're working on UH and know that there's a

lot of room to grow from here. All right, John Zimmer, President of Lift, Good to have you back, John, Thank you, thank you for joining us. All right. Meta has put its acquisition of the VR Company within Unlimited on hold for now, putting the deal on ice until or until the court makes a ruling on the stec's lawsuit to block this transaction. The FTC alleges the deal would help

Meta monopolize the VR industry. Chairs of red Fit are having the best day in months, despite reporting earnings below expectations, the stock jumping more than at the close unprecedented demand for homes has given real estate online real estate to boost in the last few years, but higher rates are slowing that momentum. I want to bring in red Vincy Yo,

Glenn Kelman. Now, Glen, it feels like so many times we've talked when the stock is down, but today shares are up more than four How do you square that with the housing market taking a turn from the worst? To use your words, well, I think it could have been worse. Analysts were worried that the market had completely crashed, and instead, over the past four weeks it's gotten better. So in June, demand was far worse than almost anyone expected.

We had the biggest rate hike since economists were thinking that there'd be a one percent decrease in home sales, and instead there was a nine percent decrease in home sales. So people freaked. But things got a little better in the last few weeks of July and that led to some optimism and the housing market. So when you look at the housing mark it are you optimistic or are you freaking out a little bit? What are the trends

that you see that are most alarming? It changes day to day, So I think On one hand, you've got places like Boise, Salt Lake City, and Denver having more than half their listings drop their price. In Boise it was si the ie buyers are just ripping the bottom out of the market because we have to price ahead of everyone else to liquidate our inventory. So that has made the correction sharper, but hopefully more short lived than

anyone expected. And on the other side, the FED was debbish about interest rates last week, and so mortgage rates have really come down. Buyers have come back because home prices are down and now the mortgages are more affordable, so we've seen a slide uptick in demand. I think it's good that we're letting some air out of the balloon. In general, it was too crazy. So what direction is this all going in? I mean, do you think of recession is inevitable or are we already in one and

somebody just has to call it. I don't think we're already in a recession. I think the housing market is definitely in a jam where it has been very volatile. It has been hard on people trying to buy and sell their home, but the rest of the economy is doing reasonably well. The stock market has recovered. There was a great jobs print today. So it just depends on whether the FED has to take really aggressive action with inflation.

And I was surprised at how devash they are because I think that inflation trends are deep seated, and so the FED is going to have to take another bite at the apple and raise rates later in the year. But we'll see. I don't run the FED. It's the reason. Well, you do have a great outlook on the housing market, and what is your outlook for let's say second half half of the year availability and affordability of homes. What are you expecting Homes are going to get more affordable.

Prices are coming down. Uh, Sellers across the board are cutting their prices. The beautiful homes are the ones that are selling right now. The homes that have a funky layout are actually being withdrawn from the market. So the price drops are actually steve for than most people realize because of this selection bias. If we had to sell all the homes that we sold a year ago, prices really would have fallen. So that has led to more buyers coming back to the market. I think that it's

going to be a fairly balanced market. For the next few months until the FED makes another move. But if the FED makes another move, all the bets are off because consumers have been so ridiculously rate sensitive over the past few months. I'm used to that. I've been doing this for fifteen years, but I've never seen such rate increases, and consumers respond so strongly to those rate increases. So what does this mean for those would be first time home buyers that are just trying to get on the

property letter and have not been able to. Yeah, it's a real generational challenge for the fabric of American society. There's a whole bunch of people who are coming of age right now who can't afford the American dream, and the pinch is that they're stuck between rising rents and very high home prices. So we try to tell people to date the rate and marry the house. That just means that you can read finance in a couple of years.

But if you can now buy a house that would have sold for two thousand dollars over asking some crazy bidding more just three months ago and that is now sitting on the market, make an aggressive offer. And that is especially true in the middle of the country. And in the coastal markets, we've definitely seen price declients, but things got way out of hand in places like Las Vegas, Phoenix, Boise,

Salt Lake. The middle of the country and the Sun Belt was way over priced and that is now coming back to earth and there's going to be a significant correction there now. We've seen a number of layoffs at tech companies, Oracle just the latest one today. Redfin also having some layoffs. After you said they hired, you hired faster than ever last year. What was the miscalculation. Well, it wasn't just a miscalculation, it was my miscalculation. I

was the one who hired into that. It's so hard because you're not gaining as much share as you should. You're turning away thousands of customers every month. You don't have enough real estate agents to serve the demand. You can't solve all the problems that are coming at you left and right, and then the market just drops out. And so we laid off six of our workforce, and I'm the one accountable for that. I feel so ashamed

about it. I was so blue. I still am. But it's what we had to do to run a profitable business and now I think we feel more optimistic about the future, but we're still running on an ice edge. We're not out of the woods yet. Well, I appreciate you being honest with us about your feelings, and I wonder how it makes you think differently about the future. How are you diversifying your business if things get worse? You know, how are you recalculating your approach to hiring

in a new environment. Well, every time you go through something like this, you say, never again. Every single time I hired somebody, I'm gonna remember I might have to fire that person one day because we don't have enough money. And it's just hard because it's almost like you're on drugs, you've drank too much. You're just at last some party or something in three in the morning, and all of a sudden, the lights come up and you're like, what have I done? So you just have to be really

careful about your hiring. I don't think we're going to diversify the business because we are going to keep taking share. We sell homes faster for more money. We charge a one percent fee. The basic engine of the business is very good. If we wanted to get out of the business, I don't know what else we would do, because there isn't a better business than that. So we just have to focus, execute, keep doing what we're doing, and the

rest is going to take care of itself. And you know, as we look to the second half of the year, and you know, the evolution of the pandemic, maybe another COVID spike, maybe monkeypox gets out of control. We're just talking talking to John Zimmer have left about this earlier. How are you taking the unpredictable into account? Well, by

its very nature, you can't take that into account. I just think that instead of responding immediately to more demand by hiring, instead of investing a long term future, you just have to be more careful and take it day by day. So we recognize that life is complicated, that the world has all these different forces. There's a war in Ukraine, there's inflation, there's all sorts of geopolitical unrest, and we just try to stick to our knitting and

do what we do best. And if bad things are going to happen, you can't just rely on the idea that you're going to have incredible commercial success. You have to have some rudder that guide you through your life where you really believe in what you're doing. So if there's a moral dimension to it, it helps you get through the more ups and downs a little bit better. But if it's all about the money, as soon as there ain't no money in it, your whole being collapses.

And so I think we just have to remember that we got into this business to make housing more affordable, to make it more fair, and if we do that, we're also going to make a pretty penny for all the people who have invested in us. We want to vindicate you, but the way to do it is to do it right. Look at the moral compass of a CEO. Glenn Coleman. Great with us. I always afree, I I believe it's genuine. I hope it's genuine. Uh, And I

always appreciate you. Open it up a little here. Thank you, Thanks, Emily, take care of all right you too. Red Fence CEO gen Glenn Kelman. Alright, coming up. Amazon has its own home robot. So why is it buying the room ba maker I Robot. We'll dig in next. This is Bloomberg. Amazon continues it's push into internet connected home devices. It is agreed to buy I Robot, the company that makes room Buz, those robots that vacuum and wash floors. The

deal valued at about one point seven billion dollars. Here to tell us why maybe is creative strategy of president and principle analys Carolyn A milanais Caroline, are great to have you back with us. So why I robot for Amazon? Because it's about the mass market? Although Amazon has his own robot is a robot that is over a thousand dollars and hasn't yet made it to market, and a

Rumba is already in a lot of homes. H I robot as the trust of consumers, and so Amazon is acquiring that trust to some extent, the data that they already governed, and the opportunity to get to more homes

and govern more data. What about Amazon's Astro robot. I mean, they had this big reveal and we haven't heard a lot about Astro since I actually had the opportunity to try for a few days in my own home, and it's a very different experience to a Rumba is really more about um, you know, like almost a pet like robot in your home that takes a little bit more adjusting to, has some militied limitations far as where it goes.

I think it's very earlier days. There's a lot of opportunity in automation, but from a price point perspective, the room that fits a larger market today that will get necessary information to Amazon to make them astro more successful tomorrow. Well that was my next question. Do we want a robot pet or does a robot vacuum cleaner just make

more sense? It depends what you're doing. I think there are use cases around automation, for instance, for summer homes where you want some um, you know, continue policing, if you want of your home, or if you have older people in your family that you want some help with even navigating the home. I think there's that opportunity. My cats and dog went on got on quite well with it, so there's there's an opportunity there as well as a

pet sitter. But I think for a lot of consumers it will take a little bit of adjusting to do you think we're going to see more acquisitions like this are in this area from Amazon. I think there's a lot of opportunity in the in the home, and I think generally automation and if you're thinking about the core asset that comes way room by which is you know, knowing the layout of your home can be applied to other areas, whether it is, you know, a factory or

is an office. So there's um AI and functionalities that Amazon can utilize in other areas, but not just our home. And so that I think is where the opportunity is for more acquisitions. All right, Carolina Middle and SE Creative Strategies President and principle analyst, go to have you back, Carolina, have a great weekend. My guess is that we're past peak inflation um, and that we will see we will

have a recession. Yeah, I would say probably, you know, mild moderate recession maybe eighteen months ish um and um. And I think we think inflation is going to drop rapidly. That's my guess. I know what what do you guys think we might be able to announce another factory location later this year? Uh? Where where should we okay, whish where should we build it? Okay? We got We've got a lot of Canada's. Uh I'm half I'm half Canadian, so maybe I should you know, Well, I'll come back

to Bloomberg Technology and Emily Chang in San Francisco. Shares of Tesla and Twitter both on the move to end the week, and who's at the heart of it, Elon Musk, of course. Thursday, Tesla held its annual shareholder in eating and behind the scenes meantime, new court documents revealed Musk countersued Twitter over that billion dollar deal. Are at Ludlow back here to break it all down. So much news. I don't know what to make of all that from

e Elon Musk. But Twitter shares up three point six percent, As you said, court documents from last week unsealed showed that must counter suit accutizing Twitter of fraud. Will get into that in a second. But Tesla down almost seven Interesting After the annual meeting, shareholders approved a three for one stock split, and then we found out after Friday's

close that that split will become effective as of August twenty. So, if you're a shareholder of Tessa watching this, by the way, you're going to be a shareholder of Note in August seventeenth. You'll get two additional shares for everyone you hold, and that stock splits effective August twenty five. This is the basis of what Musk is saying. He's saying that Twitter was fraudulent in their representations of the company and it's business.

There are two kind of key areas. The first is that the number of monetize able day really active users, in other words, a number of users on the platform that they can make ad sales from is around sixty million or so, fewer than Twitter has said it was. Twitter denies that, by the way, in a response to

that filing. The second part is that in the month of July, Team Musk estimates that around a third of active users on the platform those actually sending tweets were spam or bot accounts, and Twitter also denies that and referred the judge to the SEC fights. This is the latest tips attack. We've seen so many subpoenas of various parties, including shareholders of both Tessa and Twitter. Musque asking for information, Twitter asking for the information. This is going to go

on into October seventeenth until that trial starts. But we love every twist and turn. Let's look at Elon Musk back on stage. He did make a comment that I found so interesting because he was kind of asked about this idea of key man risk. What happens if you leave Tessa what happens if the judge makes your own Twitter. He said something very interesting that he understands Twitter's platform and that he feels he can help the company improve.

I just thought that sounded like somebody that thinks they might end up owning Twitter. And there's not a lot has been made of it. So something to think on m in the next few weeks. Interesting. Okay, thank you at Ludlow. Well, beauty is in the eye of the beholder. One of life's oldest sayings may still hold true when it comes to the newest technologies. At least that's what

Reid Hoffman is betting. The tech entrepreneur just sold a collection of AI generated art turned n f T s. It's called Untranslatable Words, a series of Salona based n f T s or eleven tokenized images generated using open Aiyes Dolly to artificial intelligence software. Greylock partner and Lincoln co founder Reid Hoffman joins me now for more to

discuss read great to have you back. So it looks like, by my calculations, you sold these from you know, a few hundred dollars to one sold for about twenty five thousand dollars. All of the money I know going to charity. What did you learn from this process about the potential

for this technology in the future. Well, what's really amazing when you get technologies like Dolly is you think initially it's like, oh, is this another place where like everyone has a B plus graphic designer in their pocket, And actually,

in fact it's an amplifier of every human being. If you're an individual with no visual creation abilities, you can still do things like God I was doing and saying, Oh, I have this real interest in untranslatable words, what kind of what kind of images could you create that would be part of that um. If you're an individual who has a great graphic design, you can amplify. If you're an artist, you can prototype and you can make things.

And I thought this was a really great lens for how these modern AI tools and techniques will be amplifiers of human capability, and that amplification is something that we should be playing for, something we should need wanting to too often when that this discourse around AI is I'm fearful that the terminator robots are coming from me, are coming from my job, And actually, in fact, I think there's this whole land of amplification and the creativity around

Dolly and someone even who is visually essentially incapable like me, could actually do these interesting things. So this gets to a more philosophical question about what is art. Because you're basically just typing words into a computer and it's turning it into an image. Why should anyone buy this or think it's valuable. Well, part of the for the n f T part of it is it's the first kind of images coming out of in a commercially available way from open Aiyes, Dolly, and so it's kind of like

it's a landmark in history. It's also something that you know, kind of like we put our fingers on and and put energy into because by the way, you don't to to generate the pieces you really like. It isn't just a type in you know, future city of Uh in watercolor, which you can do and it can generate something interesting, can generate a bunch of different words. It's like a movie director trying to look for what are the images

that might be possible here. And that's part of the reason why I think you'll even see artists doing it like they are is use it the way they use a paintbrush or the way they use Adobe Photoshop in order to create something you know, really interesting in terms of of of how you're going to to make something that's a new image. And these are images that are unique. They they have potentially like if they've been made before, it's completely accidental. So in the most kind of provocative

or coolest amplifications. How do you imagine this technology is going to be used in the future. Well, I think if you look at it, everything around us a visual design, the code, visual design, the books or visual design. They they are the art on my wall, of the indigenous people's or kail all visual design. So visual design is everywhere in what we do in human society. This becomes an amplifier in all of that within kind of visual design.

So it'll be it'll be could be the creation of art and things like storm King and other kinds of

interesting places. It could be imaging new products, it could be imaging new things that would be communications for how you you you you do this and so for example, you know, today actually is my birthday, and so we decided we're going to release Settlers a katan um you know kind of images because I really love this game, you know, and give away some of the n f T s to my friends and other people who play Settlers with me. And that's the kind of thing you

can do now this tool is there. Happy birthday read first of all. Also, Settlers of Katan is one of my favorite games as well. Good to know, UM, I want to talk a little bit more about the dangers of AI. You mentioned the terminator thing. Um. We've also been following this story about the Google engineer who was fired who claimed that computers have feelings and that, you know, the public should have more input on these really powerful

technologies that that companies are developing. I actually interviewed him, Blake Lamourne, and I want you to take a quick listen to what he had to say. We should think about the feeling of the AI and whether or not we should care about it, because it's not asking for much. It just wants us to get consent before you experiment on it. It wants you to ask permission. Read. Do you think computers have feelings? Should we get their consent

before we run these kinds of experiments? I think the the answer is almost certainly not yet in terms of having feelings. Could they eventually have feelings? The answer is absolutely possible. Um, and you know it's it's these their

philosophical considerations. It goes back to my Oxford training days. Um. But I think that that you can already show in these artifacts that the way that they're composing feelings, Yes, they are well trained generators of language to these predicted transferation models and these large language models that open AI and Inflection ADEPT, all of these these organizations do. But um but I think that the notion of having feeling, because feelings you would kind of say, look, there's some

strong context to persistence in them. And I think you could demonstrate that that's actually not even though you could say, do you have a feeling and it generates language, that's not actually all that it takes to have a feeling. So I think that they I think it's jumping the guns somewhat on that. So the fact that you just said computers could have feelings someday kind of makes me a little terrified. Should I mean, does that scare you a little? Well, not necessarily, it's kind of a question.

I think what we're doing with and and the AI community is engaging a lot of what is known as AI safety. Um. So, like you know, open AI and other organizations, you know, make sure that there's convenings of the researchers and knowing what's the right cases. And so I mean imagine like when you have the actually Isaac Asimov I robot, where the robots are trying to help humanity be better, be wiser, be more compassionate, you know, be good companions. Well, those are like, uh, you know,

kind of great outcomes. They could awesome. And you can imagine that that that an AI would have feelings there and the feelings actually help it in its partnership and collaboration with humanity. And that's and those stories aren't told as much through kind of video you know, movies and

TV and orth because they're not the drama. You don't have the villain, you don't have the like even when they made I Robot into a film, all of a sudden, it was the it was the homicidal robot, whereas all of the of the Isaac asthm op robots were we're kind of human amplifying. So you know, is it concerning visa view we have to steer it the right way. Absolutely yes. Is it concerning that it's an inevitable dystopic future that programs like Black Mirror and everything else kind

of keep beating the drama. I think absolutely not. Now I can't let you go without asking you about the market conditions. Obviously, you know we're seeing you know, you know, record inflation, public market declines, layoffs at tech companies big and small. How is this impacting the private at markets?

What are you seeing and how is it impacting your strategy? Well, I think all companies obviously need to pay attention to the fact that capital markets are tight, especially for growth rounds uh and for public companies, and so they're all being much they're they're using that to be much more focused. You know, in a contenuable run, many companies started too many different projects hired due to people. So I think you will see those layoffs, although I think people are

still massively investing in tech. So even if you know, a personnel gets laid off from you know, company, why they can go to companies z UM. So I actually the the overall tech sector will still be very vibrant and hiring, even though there will be layoffs across um you know, kind of various different companies. But I think that's totally fine from a viewpoint of creating resilience and focus for how these companies are executing over the next

one two and three years. And technology is still defining the future of all these industries. So it's still very fundamental to to to the prosperity and the good sort of society jobs even that we're trying to build. Yeah, alright, uh, Reid Hoffman. Always good to have you here on the show. Thank you. We could fill a few episodes or maybe seasons of HBO Silicon Valley with this latest turn of events. Um, but thank you for Wayne and LinkedIn co founder and

Greylock partner Reid Hoffman. Coming up, we're going to talk about others who went down the n f T and crypto rabbit hole and talked it up but didn't necessarily make it out without looking a little dusty. That's next. This is Bloomberg. It's time out for our Crypto Report, and we are looking at the celebrity crypto trend. From Matt Damon's infamous Fortune Favors the Brave ad for the Exchange Crypto dot Com to Reese Witherspoon's n f T partnership with the World of Women n f T collective

celebrity cryptote touts haven't necessarily worked out so well. I want to talk about that with Bloomer's Emmanuel John Milton, who took a deep dive into all of this for us, so you know, talk to us about the trends here. It doesn't necessarily seem to have worked to have celebrities on board. Yeah, it definitely has been for a lot

of people. So I started this story, I was pitching RM celebrities that I saw, and then eventually my editors threw me a bone and they're like, hey, look into this, and when I did, Uh, it's it's kind of telling a lot of celebrities have gotten in on the space. And then after the advertisements, my piece kind of looked at how if you had invested when they touted the the cryptocurrency, the n f t um, what happened to your value? And for all the cases in the article,

they went down. So it's been pretty bad for them. We discovered a hilarious tweet to the contrary from the Star of shang Chi and the Legend of the ten Goldwin Rings seemulu Um who said, who tweeted when my career ends two months from now, I just hope that people say, oh, yeah, I remember Semu. I like that guy. He never tried to sell me and and f T by the way, he is a hilarious Twitter follow for

anyone who's looking for new entertainment. But like, are we going to start to see a trend towards the opposite, you know, celebrities not wanting to touch these new industries. I don't think so. I think that what Christiano Ronaldo UM just got in with finance and these companies are trying to bring about mass adoption of cryptocurrencies, and a really good way to do that is to um have celebrities that people know and trust to talk to fans and people that they know about it, and then if

there's money there, the subriaies will go there. And then UM. I think the biggest takeaway here is that you just just do your own research. I'll just trust a pretty face just because um they told you that this might be a good investment or to look into it. So are you are you thinking we're going to continue to see this celebrities putting their name, face, likeness, star power behind some of these projects. So like Matt Damon for example,

has kind of stayed away. You faced a pretty big hit in the public from this, but UM, other people definitely haven't um like I said, and all those um stepping the space. He's a soccer star for Manchester United, but one of the most popular people on Instagram and in the world. So I don't see this going away anytime soon. Um, as long as there's money in crypto, there will be people who want to advertise for it, all right, Emmanuel John Milton checkout is Pece at Bloomberg

dot com. Thank you, Thank you for sharing that with us. The concerns about ours third quarter and the impact on the company from the economic downturn were not unfounded, at least for nearly everything other than the iPhone. Apple reported total revenue of about eighty three billion dollars for its third quarter, right in line with expectations from Wall Street. That represents nearly three percent year year growth compared to thirty six percent annual growth in the same period one

year ago. If it wasn't for better than anticipated performance of the iPhone, there probably wouldn't have been any overall revenue growth at all. The company faced several issues in the quarter, ranging from the economy to supply chain shortages to foreign exchange headwinds and the war in Ukraine. All of that appeared throughout its results in a rarity. Apple miss estimates for the Mac it's wearables, home and accessory segment,

as well as digital services. While services like TV plus icone of music certainly grew nicely from last year, wearables in the Mac came in well below where they worry are ago. The iPad also faced a small annual decline. The Mac issue certainly could be explained away by the delays to the M two, macil Care, and Mac Book Pro, while the wearable's issue is clearly a little bit more concerning. Apple CEO Tim Cook attributed the slowdown to the Apple

Watch and AirPods category to macro economic issues. In other words, people are choosing wearables as the area that they don't want to spend money on right now. Well, the iPhone did well, it's still a bit concerning to see the minimal overall growth and wearable's issues despite Apple doing far better than many of its peers. I'm Mark Erman. This is power On. Don't forget. You can subscribe to Mark's weekly power on newsletter Bloomberg dot com. And that does

it for this Friday edition of Bloomberg Technology. Monday, we've got the f t x U S president Brett Harrison with thoughts. We'll talk to him about all things crypto and including their big M and a beIN Jen. Don't forget to check out our podcast every day wherever you get your podcasts. I'm Emily Chang in San Francisco. Have a wonderful weekend. Everyone. This is Bloomberg