gurman, another great piece of reporting by you, mark. there is a functionality behind this chip. what can it offer? >> thank you for having me. it was a great story between me and our chips story. chip does some security in the touch id and payments functionality with touch id. to expand thatng to this new power nap feature, a low-power mode which should save some more battery life on mac laptops. caroline: arm holdings is a technology supplier, designer of the chip. tell us about the inroads it's making on intel's turf. >> intel is a commonplace chip supplier to other laptop and desktop computer makers. they failed in mobile years ago with the transition to mobile chips, which owns samsung and qualcomm. first iphone with its own apple in house chip came out seven years ago with the iphone 4, and the first ipad. so now apple is looking to do a bit more and step on intel's turf some more with its own mac components. caroline: what does it allow apple to do? things here.few this is just one step in a long-term exploration of going complete

scoop iss with this mark gurman, another great piece of reporting by you, mark. there is a functionality behind this chip. what can it offer? >> thank you for having me. it was a great story between me and our chips story. they're going to be doing more with the arm chip does some security in the touch id and payments functionality with touch id. now they're going to expand that to this new power nap feature, a low-power mode which should save some more battery life on mac laptops. caroline: arm holdings is a technology supplier, designer of the chip. tell us about the inroads it's making on intel's turf. >> intel is a commonplace chip supplier to other laptop and desktop computer makers. they failed in mobile years ago with the transition to mobile chips, which owns samsung and qualcomm. the first iphone with its own apple in house chip came out seven years ago with the iphone 4, and the first ipad. so now apple is looking to do a bit more and step on intel's turf some more with its own mac components. caroline: what does it allow apple to do? why would it want

let's bring in mark gurman. this is his scoop. how big of a deal is this that apple wants to design more of its own ships and not spend money with intel? >> this is not taking intel out completely replacing it. if is apple stepping up its chip augmenting intel and beginning to replace intel by replacing particular features. they used a apple design processor to power the touchscreen bar and security around it. now they are working on a next-generation version of it. >> this is interesting. investing more in hardware. how does this fit in with its point increase revenue from services? >> mark is the leading expert on these matters. companys always been a that has uniquely sophisticated synthesis of hardware and software. a huget really build services business unless it retains its hand in hardware. jim's is not a part of its business that was a huge business up to now. nowamount of cash they have is so vast that they can do things they might never consider before. maybe they are developing something to increase their bargaining lev

bloomberg technology reporter mark gurman joins us from san francisco. what do these moves mean for apple tv? are we finally going to get some traction here? >> this is pretty significant. for a little bit of history, 2013, apple hired a man who really focused on content distribution for hulu. until this past month, he is been in charge of the apple tv set-top box. now they're moving him to a role in 80 q's organization to deal with these content negotiations and hopefully strike some deals. replacing them is a man named timothy twerdahl. who's in charge of amazons fire tv. amazon's to the apple tv. what do we know about what he might bring to this new position? >> amazon is known for adding new apps, content, and futures to the fire tv at the very rapid pace. they did it a few times last year near before. the apple tv was first introduced in 2006 and overhauled in 2010, then overhauled again in 2015. so this bead of updates has been pretty slow compared to other ,pple products like the mac i've had to have a watch. perhaps we will see a pretty much fast