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Tag: Consumer electronics

  • Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business

    Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business

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    CNN
     — 

    At its annual Unpacked event on Wednesday, Samsung unveiled its latest Galaxy S smartphones – and the company is betting that focusing on improvements to the camera will be enough to get consumers to upgrade.

    The new lineup, which includes the 6.8-inch Galaxy S23 Ultra, 6.6-inch Galaxy S23+, and 6.1-inch Galaxy S23, look similar to last year’s models, but with new photo features, a longer lasting battery life (with faster charging speeds) and an exclusive chip.

    But the standout feature is the new camera. The higher-end S23 Ultra features a new 200 MP adaptive pixel sensor for the first time that supports multiple levels of high-resolution processing at once, enabling what the company called “unprecedented resolution photo quality never before seen on a smartphone camera.”

    The new phones offer improved photo and video stabilization, Nightography for photos and videos (allowing the ability to capture shots in low light situations) and a new AI-powered image signal processing algorithm that enhances object details and color tone.

    Samsung also introduced its first Super HDR selfie camera, jumping from 30 frames per second to 60 frames per second, for better front-facing images and videos.

    The cameras on the Galaxy S23+ and Galaxy S23 even have a subtle new look: the contour housing has been removed, which Samsung said marks a new era of design. The Galaxy S23 Ultra’s display comes with a reduced curvature to create a larger and flatter surface intended to improve the visual experience. Its Enhanced comfort feature allows users to adjust color tones and contrast levels, and lessen eye strain at night. Its vision booster tool also got an update to further cut down on glare.

    Ahead of the event, Jude Buckley, executive VP of the mobile business for Samsung Electronics America, told CNN its strategy continues to be staying at the forefront of camera innovation.

    “We try to own a few things really uniquely, and the camera is one of the things that we have to stay well ahead of,” he said.

    The launch comes at as Samsung and other tech companies confront broader economic uncertainty that could push consumers to rethink their spending. Global smartphone shipments fell by 18% in the fourth quarter of 2022, according to market research firm Canalys.

    Earlier this week, Samsung reported that its quarterly profits had plunged to their lowest level in eight years as customers snapped up fewer smartphones and laptops. Its revenue also fell 8% from the prior year.

    While the company is keeping prices the same as the prior year, it nonetheless must convince customers to shell out as much as four figures for its new phone lineup in a tough market.

    Galaxy S23 Ultra, which comes with Samsung’s signature S pen, will start at $1,199.99, while the Galaxy S23+ starts at $999.99 and Galaxy S23 starts at $799.99.

    The new lineup, which is available for pre-order starting on Wednesday, comes in four matte colors: black, cream, green and lavender. Other colors, such as lime, graphite, sky blue and red, will be available for purchase directly on Samsung.com.

    The company also showed off its latest flagship PC Galaxy Book3 series: the high-end Galaxy Book3 Ultra ($2,399.99); the Book3 Pro 360 ($1899.99) – featuring a 2-in-1 convertible form factor with S Pen functionality; and the Galaxy Book3 Pro ($1449), a thin clamshell laptop.

    While the new features in the S23 lineup may not be revolutionary, some may resonate with its loyal users and keep Samsung competitive in the market.

    “The Galaxy S23 family demonstrates just how hard it is to tell a new story in today’s smartphone market,” said Leo Gebbie, principal analyst at CCS Insight. “The latest devices from Samsung are undoubtedly impressive but the emphasis on improvements to camera capabilities and battery life is nothing new. They underscore the difficulty that Samsung and other phone makers have in finding genuinely new ways to promote and sell their products.”

    David McQueen, an research director at ABI Research, said manufacturers continue to dole out incremental updates, rather than waiting two years to release a new impactful device, because “the market moves so quickly now.”

    “Companies need to be seen to be providing new devices with the latest technology, no matter how unnoticeable the upgrade, to survive,” he said.

    Samsung agrees. Buckley told CNN that while some updates are bigger than others, it has to stay on top of the latest trends to remain competitive.

    “Our heritage is technology, and we have a very fierce competitor who has done an amazing job over many, many years,” Buckley said, in an apparent reference to Apple. “And if your technology, if your value proposition is based in technology, you’ve always gotta be at the forefront. If you were the first to go to every two years, that’d be a painful two years.”

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  • Dell to lay off more than 6,500 employees | CNN Business

    Dell to lay off more than 6,500 employees | CNN Business

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    CNN
     — 

    Dell plans to lay off roughly 5% of its workforce, the company said in a regulatory filing Monday, in the latest example of tech companies cutting costs in an uncertain economic climate.

    Dell has about 133,000 employees, the company told CNN. At that level, the 5% cut would represent more than 6,500 employees.

    The computing giant cited the “challenging global economic environment” for the cuts. In a letter to employees, Jeff Clarke, Dell’s vice chairman, said steps the company has already taken — such as restrictions on employee travel and a pause on external hiring — are insufficient.

    “What we know is market conditions continue to erode with an uncertain future,” Clarke told employees. “The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”

    The move comes as layoffs continue to spread throughout the tech industry. Amazon, Microsoft, Google and others have each announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    Dell has also been grappling with reduced demand for personal computers.

    Consulting firm Gartner said last month that worldwide PC shipments fell more than 28% in the fourth quarter of 2022 compared to the same period the prior year. This marked the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-90s.

    Dell, in particular, saw a 37% decline in PC vendor unit shipments during the final three months of 2022 compared to the year prior, according to Gartner.

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  • Foxconn January sales hit record high after production restored at world’s biggest iPhone factory | CNN Business

    Foxconn January sales hit record high after production restored at world’s biggest iPhone factory | CNN Business

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    Hong Kong
    CNN
     — 

    Apple supplier Foxconn says its January monthly sales hit a record high as it bounced back from Covid-19 disruptions in China.

    In a sales update on Sunday, the Taiwanese manufacturing giant reported revenue of 660.4 billion Taiwan dollars ($22 billion) in January, 48% more than the same period a year ago and its highest-ever level for that month. Revenue was up nearly 5% compared to the previous month.

    The manufacturer attributed its performance to a strong rebound at its sprawling campus in Zhengzhou, central China.

    The site, which is home to the world’s biggest iPhone factory, was crippled late last year by Covid-19 restrictions and workers’ protests.

    Now, operations there are “returning to normal,” and product shipments have jumped, Foxconn said.

    The company also said a “better components supply” helped boost sales.

    Two of Foxconn’s most-watched divisions: smart consumer electronics, which includes smartphones and televisions, and computing products, which includes laptops and tablets, both “showed strong double-digit growth,” it said.

    The figures underscore how Foxconn’s Zhengzhou campus, also known as “iPhone city,” is roaring back to life after the massive setbacks.

    The company’s troubles started in October, when workers left the site because of concerns about Covid-related working conditions and shortages of food. Short on staff, bonuses were later offered to workers to return.

    But violent protests broke out in November, when newly-hired staff said management had reneged on their promises. Workers clashed with security officers, before the company eventually offered them cash to quit and leave the site.

    The headaches had led analysts to predict that Apple would likely speed up its supply chain diversification away from China.

    Last week, Apple

    (AAPL)
    pointed to challenges in China as a key factor in its worse-than-expected earnings.

    CEO Tim Cook said the company’s problems in the country had hurt its supply of the iPhone 14 Pro and iPhone 14 Pro Max during the key holiday shopping season.

    Foxconn has since managed to stabilize operations at its facility. Last month, Chinese state media reported that the Zhengzhou plant was almost back to normal, reaching 90% of capacity as of the end of December.

    The company also expressed confidence for the road ahead. On Sunday, it said in a statement that its outlook for the first quarter would likely meet analysts’ expectations, without providing specifics. Analysts polled by Refinitiv expect the firm’s revenue to grow 4% during the January-to-March period.

    Foxconn’s shares rose 1.9% in Taipei on Monday.

    — CNN’s Wayne Chang and Juliana Liu contributed to this report.

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  • Big Tech just added to a shrinking forecast, but maybe Bob Iger can brighten the mood

    Big Tech just added to a shrinking forecast, but maybe Bob Iger can brighten the mood

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    Wall Street’s expectations for 2023 have been diving as forecasts for the new year come in light, and the news could get worse once they factor in disappointing results from Big Tech. But at least Bob Iger is coming back for a sequel.

    Google, Facebook, Amazon and Apple all disappointed with holiday earnings this week. Their forecasts ranged from nonexistent to piecemeal to meh, and the fallout will only add to the biggest dive in Wall Street’s expectations through the beginning of a year since 2016.

    Analysts’ average forecast for 2023 earnings from the S&P 500 index
    SPX,
    -1.04%

    dropped by 2.5% in January, according to FactSet Senior Earnings Analyst John Butters, the worst in seven years. Those projections began heading lower last year, and the decline is only steepening — analysts are now projecting 3% earnings growth in 2023, and that is contingent on a big holiday rebound from the results being released this quarter.


    Uncredited

    The news was even worse for the first quarter, for which projections declined 3.3% in January as companies whiffed on their forecasts at a rapid pace: 86% of the 43 companies that have guided for first-quarter earnings have missed projections, Butters reported. Earnings are now expected to decline 4.2%, which would be the first year-over-year earnings decline since the third quarter of 2020, when the COVID-19 pandemic write-offs started to come in.

    Big Tech only added to the downward trajectory in recent days. Amazon.com Inc.
    AMZN,
    -8.43%

    missed on its holiday earnings as well as its forecast for the first quarter, and that company could determine if S&P 500 profits rise in 2023 all on its own. Amazon’s worst holiday earnings since 2014 could also contribute to the consumer discretionary sector’s first earnings decline since the beginning of the pandemic, with holiday sector earnings now expected to drop more than 5%.

    Google parent Alphabet Inc.
    GOOGL,
    -2.75%

    GOOG,
    -3.29%

    and Facebook parent Meta Platforms Inc.
    META,
    -1.19%

    also missed their respective earnings targets amid problems with the digital-advertising industry, leading to the communications-services sector having the worst earnings season in the S&P 500. Profit has declined 25.2% in that sector so far, the worst among the 11 S&P 500 sectors, but would be down just 6.5% without the effects of Meta and Alphabet, Butters reported.

    Apple Inc.
    AAPL,
    +2.44%

    also didn’t do projections any favors, reporting its biggest sales decrease since 2016 and an earnings miss Thursday afternoon. In a piecemeal forecast, executives projected a similar sales decline in the calendar first quarter, though unofficially.

    This week in earnings

    After the busiest week in earnings season wrapped up, don’t expect much of a breather — 95 S&P 500 companies are expected to report in the week ahead, the third consecutive week with at least 90 companies reporting. There will be plenty of intrigue among companies not in the S&P 500 too, including Robinhood Markets Inc.
    HOOD,
    -3.59%

    and Affirm Holdings Inc.
    AFRM,
    -14.14%

    reporting together on Wednesday afternoon.

    Only one Dow Jones Industrial Average
    DJIA,
    -0.38%

    stock will report, but that is the Wednesday call you will want to tune in for: Bob Iger’s return to the Walt Disney Co.
    DIS,
    -2.21%

    earnings show.

    The calls to put on your calendar
    The numbers to watch

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  • I’m a parent with an active social media brand: Here’s what you need to check on your child’s social media right now | CNN

    I’m a parent with an active social media brand: Here’s what you need to check on your child’s social media right now | CNN

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    Editor’s Note: Sign up for CNN’s Stress, But Less newsletter. Our six-part mindfulness guide will inform and inspire you to reduce stress while learning how to harness it.



    CNN
     — 

    If you follow me on Twitter or Instagram, you’ll know I wear a lot of hats: romance author, parent of funny tweenagers, part-time teacher, amateur homesteader, grumbling celiac and the wife of a seriously outdoorsy guy.

    Because I’m an author with a major publisher in today’s competitive market, I’ve been tasked with stepping up my social media brand: participation, creation and all. The more transparent and likable I am online, the better my books sell. Therefore, to social media I go.

    It’s rare to find someone with no social media presence these days, but there’s a marked difference between posting a few pictures for family and friends and actively creating social media content as part of your daily life.

    With a whopping 95% of teens polled having access to smartphones (and 98% of teens over 15), according to an August Pew Research Center survey on teens, social media and technology, it doesn’t look like social media platforms are going away anytime soon.

    Not only are they key social tools, but they also allow teens to feel more a part of things in their communities. Many teens like being online, according to a November Pew Research Center survey on teen life on social media. Eighty percent of the teens surveyed felt more connected to what is happening in their friends’ lives, while 71% felt social media allows them to showcase their creativity.

    So, while posting online is work for me, it’s a way of life for the tweens and teens I see creating and publishing content online. As a parent of two middle schoolers, I know how important social media is to them, and I also know what’s out there. I see the good, the bad and the viral, and I’ve have put together some guidelines, based on what I’ve seen, for my fellow parents to watch for.

    Here are eight questions to ask yourself as you check out your children’s social media accounts.

    If you don’t, it’s time to start. It’s like when I had to look up the term “situationship,” I saw that ignorance is not bliss in this case. Or really any case when it comes to your children. Both of my children have smartphones, but even if your children don’t have smartphones, if they have any sort of device — phone, tablet, school laptop — it’s likely they have some sort of social media account out there. Every app our children wish to add to their smart devices comes through my husband’s and my phone notifications for approval. Before I approve any apps, I’ll read the reviews, run an internet search and text my mom friends for their experience.

    Most tweens and teens use social media for socializing with local friends.

    If I’m still uncertain about an app, I’ll hold off on approving it until I can sit down with my children and ask them why they want it. Sometimes just waiting and forcing a short discussion is enough to convince them they no longer want it. In our household, I avoid any apps that run social surveys, allow anonymous feedback or require the individual to use location services.

    If you don’t have your family phone plan all hooked together with parental controls, I’d advise setting that up ASAP. Because different devices and apps have different ways to monitor and set up parental controls, it’s impossible to link all the options here. However, a quick search will give you exactly the coverage you are comfortable with, including apps that track your child’s text messages and changing the settings on your child’s phone to lock down at a certain time every night.

    The top social media platforms teens use today are YouTube (95% of teens polled), TikTok (67%), Instagram (62%) and Snapchat (59%), according to the Pew Research Center survey on teens and social media tech. Other social media platforms teens use less frequently are Twitter, Reddit, WhatsApp and Facebook. Most notably, Facebook is seeing a significant downturn in teen users. This list isn’t exhaustive, however. I would check out your children’s devices for group chat apps (such as Slack or Discord) and also scroll through their sport or activity apps where group chat capabilities exist.

    I’ve seen preteens and teens using their real names, birthdate, home address, pets’ names, locker numbers or their school baseball team. Any of that information could be used to identify your child and location in real life or using a quick Google search. All of that is an absolute “no” in our house.

    I also tell my kids not to answer the fun surveys and quizzes that invite children to share their unique information and repost it for others to see. These can be useful tools for predators and people trying to steal your children’s identity.

    What I do: I made the choice a long ago to withhold the names of my children and partner. It’s not an exact science, and I know some clever digging could find them. For my husband, it’s for the sake of his privacy and also the protection of his professionalism. Just because he’s married to a romance author doesn’t mean he should have to answer for my online antics, whatever they may be. For my children, I want to avoid anything embarrassing that could be traced back to them during their college application season.

    Even if your children keep their social media profiles private (more on that later), their biographical information, screen name and avatar or profile picture are public information.

    Do an internet search of your child’s name to see what’s out there and scroll through images to make sure there isn’t anything you wouldn’t want to be made public. In our household, I’ve asked my children to use generic items or illustrated avatars in their social media bios.

    What I do: Parents who do have active social media accounts may want to do a search of their own names. When my first book was published in 2019, I did a search of my name and images and found many photos of my children that came directly from my social media pages. I hadn’t posted pictures of them, but I did use a family photo as my profile photo and those are public record. Once I deleted them, the photos disappeared.

    Another “no” in our household is posting videos or photos of our home or bedrooms. Something that feels innocent and innocuous to your middle schooler may not feel that way to an adult seeking out inappropriate content.

    I learned this from one of my children’s Pinterest accounts. My kid loves to create themed videos using her own photos and stock pictures, and she’s gained over 500 followers in a short period of time. She has completely followed our rules and I know, because I check and follow her myself — but it hasn’t stopped the influx of adult men following her content.

    What we do: Over the holidays, I sat with her and went through each follower one by one and blocked anyone we decided was there for the wrong reasons. In the end, we blocked close to 30 adult men on her account. (I also know that some predators cleverly disguise themselves as children or teens, and we may not catch them all, but this is still a worthy exercise.)

    We also talk to our children about how to protect themselves. They wouldn’t want those strangers standing in their bedroom; therefore, they don’t want to post videos of their bedroom or bathroom or classroom for strangers to view.

    This is a tricky one for lots of reasons. For content creators to build their following, they need to remain public on social media. If your child is an entrepreneur or artist hoping to grab attention, locking down their account will prevent that from happening.

    That said, a way around this is to have two accounts. First, a private one, locked down and only used for family and close friends, and second, a public one that lacks identifiers but showcases whatever branding the child is hoping to grow. I’ve come across some well-managed public accounts for children who have giant followings and noticed they are usually run by parents, who state that right in the profile. I like this. If your children want public profiles because they are hoping to catch the attention of a talent scout, having the accounts monitored by a responsible adult who has their best interest in mind is a healthy compromise.

    This is the exception, however. Most tweens and teens today use their social media for socializing with local friends. The benefit of keeping their account as private (or as private as can be) is threefold. It allows them to screen who follows their content, thus preventing our Pinterest fiasco. It prevents strangers from accessing their content and making it viral without their permission. And it protects them from unsolicited contact with strangers.

    Not all social media platforms have the option to make your account “private.” For example, YouTube has parental controls that can be adjusted at any time. TikTok and Instagram can be made private (which means users must approve followers) by making the change in the account settings. Once the account is private, a little padlock will show next to the username.

    Snapchat allows users to approve followers on a case-by-case basis as well as turn off features that disclose a user’s location. Notably, Snapchat also informs users when another user takes a screenshot of their story, which is a feature other social media platforms don’t have yet.

    Most group chat apps don’t have the ability to go private so much as they ask users to approve of follower requests. Take time to discuss with your children who they allow to follow them and what personal information they allow those followers to know. It’s also a great time to teach them the art of “blocking” those individuals who are unsafe or unkind.

    My suggestion is to log in, scroll around and even ask your children to teach you about the platforms they use. Then, when they roll their eyes at you, go ahead and tell them about your first Hotmail email address and the way you picked the perfect emo playlist on your Myspace page … and when they’re bent over laughing, sneak a peek at their follower list. Trust me, it’ll be worth it.

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  • Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

    Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

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    CNN
     — 

    In less than three months, four of the big five US tech companies have cut tens of thousands of employees combined, shattering myths about the industry’s seemingly unstoppable growth in the process.

    But there has been one notable exception: Apple.

    To date, Apple

    (AAPL)
    has not announced any substantial cuts, thanks in part to slower headcount growth than some of its peers during the pandemic and continued demand for its core products. Some analysts think more modest cost cuts could be coming, however.

    The iPhone maker is set to report earnings results for the final three months of 2022 on Thursday after the bell. It is expected to post a rare year-over-year decline in revenue.

    While these expectations show the strain Apple’s business is under, Wedbush Securities’ Dan Ives said in a note this week that pent-up demand for upgrading iPhones remains strong. “Apple will likely cut some costs around the edges, but we do not expect mass layoffs from Cupertino this week,” Ives wrote.

    Tom Forte, a senior research analyst at DA Davison, agreed there will be staff reductions, but likely not as drastic as those at other large tech companies. “Apple will cut headcount,” he said in a recent interview on Bloomberg TV, but suggested the cuts would come through attrition or reductions at the retail level.

    “While they haven’t done so yet, like everyone else, they will adjust their headcount for the current level of demand,” he said.

    Fueled by a surge in demand for digital products earlier in the pandemic, Big Tech went on a massive hiring spree.

    Amazon

    (AMZN)
    and Meta each doubled their headcount between the third quarter in 2019 and the third quarter 2022, according to data shared in the companies’ securities filings. Alphabet, meanwhile, grew its headcount 64% during that time, and Microsoft grew its staff by more than 50% over approximately the same period.

    Apple, by comparison, grew its headcount by a more modest 20%. As of September 2022, Apple said it had approximately 164,000 full-time employees.

    Many tech CEOs, with varying degrees of remorse, have blamed over-hiring in the early days of the pandemic for the mass layoffs now. As pandemic restrictions eased last year, the demand for digital services shifted back toward pre-pandemic levels. Inflation pinched consumer and business spending, and rising interest rates evaporated the easy money tech companies had tapped into. And one-by-one, amid the whiplash, household names in Silicon Valley began announcing widespread layoffs to adjust to the new environment.

    While Apple has not announced layoffs, its business has been strained in other ways. Like other Big Tech companies, it has faced threats of antitrust action in the United States and EU. Earlier this month, Apple also said CEO Tim Cook had agreed to a massive pay cut this year, following a shareholder vote on his compensation package after its stock fell about 27% in 2022.

    As consumer spending tightened, global smartphone shipments plunged 18% in the fourth quarter of 2022, according to market research firm Canalys. Apple’s business also faced supply chain hurdles linked to China’s Covid lockdowns and unrest that hit a key production site in Zhengzhou, China late last year.

    Still, Apple’s business is weathering the downturn better than some of its fellow tech giants. In its most-recent earnings report, the company reported sales grew 8% year-over-year and that the company hit a September quarter revenue record for iPhone.

    Thursday’s earnings results will show whether Apple can keep defying gravity.

    “Apple continues to innovate with high-quality, industry-leading products supported by a powerful digital platform,” analysts at Monness, Crespi and Hardt wrote in an investor note Tuesday. “However, regulatory headwinds persist and we believe the darkest days of this downturn are ahead of us.”

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  • Apple, Amazon, Alphabet, Ford, Nordstrom, and More Stock Market Movers

    Apple, Amazon, Alphabet, Ford, Nordstrom, and More Stock Market Movers

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  • A first generation iPhone going up for auction hopes to fetch $50,000 | CNN Business

    A first generation iPhone going up for auction hopes to fetch $50,000 | CNN Business

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    New York
    CNN
     — 

    An unopened first-generation iPhone from 2007 is hitting the auction block Thursday – with an estimated value of $50,000.

    Originally on sale for $599, the first iPhone offered early Apple adopters a 3.5-inch screen with a 2-megapixel camera, plus 4 GB and 8 GB storage options, internet capabilities and iTunes. It had no app store, ran on a 2G network and was exclusive to AT&T’s network.

    Cosmetic tattoo artist Karen Green was gifted the 8 GB version and never broke the seal, according to her appearance on daytime television program “The Doctor & The Diva” in 2019. An appraiser on the show valued the phone at $5,000 at that time.

    Since then, another unopened first-generation iPhone like Green’s auctioned off for over $39,000 in a listing by LCG Auctions that closed in October. LCG Auctions is also listing Green’s phone, with bidding opening at $2,500.

    Green and LCG Auctions did not immediately respond to CNN’s request for comment.

    The iPhone changed the way billions of people around the world communicate, make payments, do their jobs, take photos and even how they wake up in the morning. It killed dozens of industries (camcorders, MP3 players, flip phones) and gave life to many more.

    Speaking at Apple’s annual Macworld expo in 2007, then-Apple boss Steve Jobs opened his presentation with: “We’re going to make some history together today.” Jobs called the new smartphone a “revolutionary mobile phone” that will feature an iPod, phone and what he called an “Internet communicator.”

    “It’s bad out there today,” said Jobs of mobile Web browsers. “It’s a real revolution to bring real Web browsing to a phone.”

    Apple enthusiasts will have until February 19 to bid on the tech relic.

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  • Apple earnings show steepest sales decline in more than 6 years

    Apple earnings show steepest sales decline in more than 6 years

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    Apple Inc. posted its largest revenue decline in more than six years amid underwhelming sales of iPhones, Macs and wearables, but its shares pared back most of their initial losses in after-hours trading Thursday after the company blamed its smartphone declines on supply issues.

    Apple’s
    AAPL,
    +3.71%

    iPhone revenue fell to $65.8 billion in the fiscal first quarter from $71.6 billion a year before, whereas analysts tracked by FactSet were looking for $67.8 billion. The performance comes after Apple warned in November that its iPhone 14 Pro and Pro Max shipments would be impacted by pandemic-fueled production constraints at a major Foxconn
    2354,
    -0.35%

    facility in China.

    Chief Executive Tim Cook said on Apple’s earnings call that he believes the company would have shown iPhone sales growth in the quarter had it not been for the supply constraints.

    At the same time, he noted that it’s “very hard” to estimate the company’s ability to recapture lost sales, “because you have to know exactly what would’ve happened.”

    Apple shares ended the extended session Thursday down 3.2%, after having been down as much as 5.6% in after-hours trading.

    After reporting a quarterly revenue record for Macs in the September quarter, Apple fell way short of those heights in the December quarter with its Thursday afternoon report, and the company missed expectations by a wide margin. Mac sales declined to $7.7 billion from $10.9 billion a year earlier, while analysts had been looking for $9.4 billion.

    Those big misses helped drive total revenue lower on the year and fueled a miss on the top line, despite a sizable beat in the iPad category. Overall revenue declined to $117.2 billion from $123.9 billion a year ago, while analysts were looking for $121.4 billion.

    Dating back to its report for the December 2017 quarter, Apple has only missed revenue expectations twice, according to FactSet, including one time when the company issued a formal warning ahead of its official results.

    The smartphone giant’s sales decline of 5.48% was its steepest year-over-year fall since the September quarter of 2016, when sales slipped 8.12%, according to Dow Jones Market Data.

    Apple executives once again declined to provide a traditional financial forecast, though Chief Financial Officer Luca Maestri shared on the call that he expects Apple’s year-over-year revenue performance in the March quarter to be similar to what was seen in the December quarter. That would actually mark an acceleration of sorts, he said, since the December quarter benefited from an extra week.

    Within iPhones specifically, Maestri also anticipates that year-over-year revenue growth will accelerate.

    Apple’s profits fell as well in the latest period, as the company generated net income of $30.0 billion, or $1.88 a share, compared with $34.6 billion, or $2.10 a share, a year earlier. Analysts were modeling $1.94 in earnings per share.

    Maestri called out “significant foreign-exchange headwinds, supply constraints on iPhone 14 Pro and iPhone 14 Pro Max and a challenging macroeconomic environment” in discussing the company’s smartphone performance. Mac growth was negatively impacted by economic conditions, currency pressures and tough comparisons to a year before.

    Within its iPad segment, Apple showed sharp growth. Revenue increased to $9.4 billion from $7.3 billion a year earlier. The FactSet consensus was for $7.8 billion.

    Maestri noted that the iPad business benefited from the launch of new iPads during the quarter as well as comparisons to a year-earlier period in which Apple faced supply constraints.

    Revenue for wearables, home and accessories came in at $13.5 billion, down from $14.7 billion a year before and far below the $15.3 billion that analysts were modeling. Services revenue rose to $20.8 billion from $19.5 billion and beat the FactSet consensus, which was for $20.4 billion.

    Shares of Apple have fallen 14.2% over the past 12 months, though they’re up 16.1% to start 2023. The Dow Jones Industrial Average
    DJIA,
    -0.11%

    is off 4.4% over a 12-month span but ahead 2.7% so far this year.

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  • Infineon profit nearly doubles as revenue climbs on strong demand for chips

    Infineon profit nearly doubles as revenue climbs on strong demand for chips

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    Infineon Technologies AG on Thursday posted higher revenue and profit for its fiscal first quarter as strong chips sales in the automotive and industrial segments offset weaker demand for smartphones, computers and data centers.

    The German chip maker
    IFX,
    +7.46%

    said revenue for the three months ended Dec. 31 climbed to 3.95 billion euros ($4.34 billion) from EUR3.16 billion the prior-year quarter. Infineon’s automotive segment contributed EUR1.87 billion to the total.

    “The energy transition and expansion of electromobility are causing a continuously high need for our solutions in industrial and automotive applications. In contrast, we are seeing significantly weaker demand in areas such as smartphones, PCs and data centers,” Chief Executive Jochen Hanebeck said.

    Last week, Intel Corp. reported a fourth-quarter loss and a decrease in sales, reflecting, in part, the sharp downturn the personal-computer market has been experiencing over recent months. Infineon also saw lower demand for chips in laptops, TVs and games consoles.

    Net profit jumped to EUR728 million from EUR457 million. Infineon’s segment result, a key profitability metric, surged to EUR1.11 billion from EUR717 million, generating a margin of 28%.

    Analysts polled by FactSet had forecast revenue of EUR4 billion, a net profit of EUR675 million and a segment result of EUR1 billion.

    Infineon had guided for revenue of around EUR4 billion and a segment result margin of about 25%.

    For the fiscal second quarter, Infineon is targeting revenue of around EUR3.9 billion and a segment result margin of around 25%.

    “We are continuing to navigate carefully in these challenging times and remain flexible in our approach to market dynamics. All in all, we are increasing our guidance slightly for the fiscal year, adjusting for currency effects,” Mr. Hanebeck said.

    For the fiscal year, Infineon continues to expect revenue of around EUR15.5 billion, plus or minus EUR500 million, but raised its segment result margin forecast to around 25% from about 24% previously. The company based its guidance on an exchange rate of $1.05 to the euro, up from $1 previously.

    Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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  • Apple and Google’s app stores wield ‘gatekeeper’ power and should be reined in, Commerce Department says | CNN Business

    Apple and Google’s app stores wield ‘gatekeeper’ power and should be reined in, Commerce Department says | CNN Business

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    Washington
    CNN
     — 

    The Biden administration on Wednesday took its biggest swipe yet at app stores run by Apple and Google, with a new report accusing the two tech giants of exercising “gatekeeper” power that has led to “suboptimal” levels of competition in digital markets.

    The report published by the Commerce Department finds that Apple

    (AAPL)
    and Google

    (GOOG)
    “play a significant gatekeeping role by controlling (and restricting) how apps are distributed,” and that the various fees and rules they impose on app developers has created an uneven playing field.

    “All of these factors translate to potential losses for consumers: prices that are inflated due to the fees collected by gatekeepers, innovation that is hampered by policy decisions to limit access to smartphone capabilities, and the loss of choice of apps that are not featured or even accessible for smartphone users,” the report said.

    Adobe Stock

    The 48-page report throws the White House’s weight behind mounting public criticism of dominant app stores, which in recent years has led to multiple private lawsuits against Apple and Google as well as investigations by antitrust regulators in Europe and reports of a probe by the Justice Department.

    In a statement, Apple said its app store has benefited developers and supports hundreds of thousands of jobs. In the past, Apple has argued that its control over iOS app distribution helps promote users’ privacy and security.

    “We respectfully disagree with a number of conclusions reached in the report, which ignore the investments we make in innovation, privacy and security,” an Apple spokesperson said, “all of which contribute to why users love iPhone and create a level playing field for small developers to compete on a safe and trusted platform.”

    Google has said its Android operating system, unlike Apple, allows for competing app stores.

    “We disagree with how this report characterizes Android, which enables more choice and competition than any other mobile operating system,” a Google spokesperson said. “[The report] recognizes the importance of interoperability, multiple app stores and sideloading, which Android’s open system already supports – all while ensuring privacy and security.”

    Wednesday’s report, published by a Commerce Department office charged with advising the president on technology issues, does not launch a regulatory process. Instead, it provides policy recommendations, such as limits on the apps Apple and Google can pre-install or set as defaults on their respective operating systems, or giving users the right to install apps from any source.

    The report also called for boosting budgets for US antitrust enforcers; a ban on some app store restrictions surrounding in-app payments; and a federal privacy law establishing clear standards for data privacy.

    Many of the report’s recommendations echo provisions in federal legislation that received bipartisan support last Congress, but that failed to become law.

    The findings had been informed by public comments submitted to the Department in the months leading up to the report.

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  • Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business

    Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business

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    Hong Kong
    CNN
     — 

    Samsung’s quarterly profits have plunged to their lowest level in eight years as customers snapped up fewer cell phones and laptops.

    The tech giant reported operating profit of 4.3 trillion Korean won ($3.5 billion) on Tuesday for the three months ended December, down 69% from a year ago. Revenue fell 8% to just under 70.5 trillion won ($57.3 billion), it said in a statement.

    It was the company’s weakest quarterly profit since the third quarter of 2014, when its smartphone business lost serious ground to competitors.

    “The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” Samsung noted in the statement.

    The dreary results were anticipated. Samsung

    (SSNLF)
    had flagged the lackluster performance in a pre-earnings forecast earlier this month, with analysts citing falling memory chip prices and fewer orders of consumer devices.

    In a presentation to investors, the electronics maker confirmed that “mobile and PC demand was weak,” and its memory chip business had also suffered “as customers continued to adjust their inventories amid deepening uncertainties.”

    Samsung expects some of those problems to continue in the coming months due to global economic uncertainty, though it anticipates overall demand to start recovering in the second half of the year.

    Smartphone demand will likely slide again this quarter compared to the same period a year ago, “due to the economic slowdown in major regions,” it said.

    Samsung’s shares dropped 3% in Seoul on Tuesday.

    There were some bright spots. Samsung said it took in 302.2 trillion won ($245.7 billion) in revenue for the full year of 2022, up from 279.6 trillion won ($227.4 billion) in 2021, and a record high.

    Analysts have said, however, that they expect the company’s profits to drop again this quarter because of a continued decline in memory chip prices.

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  • Digitunity to Participate in Patterson Foundation Workshop on Digital Access

    Digitunity to Participate in Patterson Foundation Workshop on Digital Access

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    The Digital Access and Devices workshop explores how to scale digital inclusion work domestically and internationally with corporate and nonprofit partners.

    Press Release


    Jan 27, 2023 08:00 EST

    Owning a large-screen device, such as a computer or tablet, is the foundation of digital equity. Giving individuals and communities access to a steady supply of free or low-cost large-screen devices helps to close the digital divide. This idea drives the work of Digitunity, a national nonprofit organization with over 40 years of experience in advancing digital equity through device ownership.

    Because of this experience in increasing digital access through devices, Digitunity’s executive director Scot Henley has been invited to participate in a Funder-to-Funder Workshop hosted by The Patterson Foundation in partnership with the Campaign for Grade-Level Reading entitled “Digital Access and Devices.” The purpose of this workshop is to explore ways in which philanthropy can support expanding device ownership.

    “By participating in the Patterson Foundation’s workshop, we hope to demonstrate to corporate and philanthropic funders that by working collaboratively, it is within our reach to develop a lasting solution that makes it possible for residents in need to obtain affordable computers,” Henley said.

    Digitunity’s mission is to close the digital divide. This is the challenge of 36 million Americans who do not have a computer at home and frequently reside in marginalized communities. These individuals often cannot access education, telehealth, and employment opportunities because they do not have a computer.

    The Patterson Foundation strengthens the efforts of people, organizations, and communities by focusing on issues that address common aspirations, foster wide participation, and encourage learning and sharing. The Foundation’s values guide its approach to philanthropy, demonstrating its collaborative philosophy and tenets of change.

    The Patterson Foundation’s Digital Access for All Initiative (DA4A) began with a multi-sector learning journey, exploring how thought leaders, government, businesses, and nonprofits operate and invest in digital access. After speaking to over 30 funders across the United States, the Foundation realized that funders struggle with decisions on how or whether to fund devices.

    This latest workshop, which will be held virtually on Tuesday, Jan. 31, at 12:30 p.m. EST, will explore how to scale digital inclusion work domestically and internationally with corporate and nonprofit partners. Those interested in this workshop can register here. Along with Henley, other participants include: 

    While funders continue to invest in organizations that provide low to no-cost computers to those in need, the need for devices disproportionately outweighs resources available to people, organizations, and communities. This workshop will address this concern and explore how funders could be best served by investing in systemic solutions rather than transactional ones. 

    In today’s society, devices, like computers, have become essential to education, healthcare, civic engagement, economic development, and more. To learn more about the importance of device access for all, please visit Digitunity.org or download Digitunity’s report “The Importance of Large Screen Device Ownership” here.

    About Digitunity
    Digitunity connects corporate and individual donors of technology to thousands of partner organizations serving people in need across North America. With a proven body of work and a national network of member organizations, Digitunity works to ensure all barriers limiting equitable opportunity to participate in our digitally connected society are removed. To learn more, please visit digitunity.org.

    About The Patterson Foundation
    The Patterson Foundation strengthens the efforts of people, organizations, and communities by focusing on issues that address common aspirations, foster wide participation, and encourage learning and sharing. The Foundation’s values guide its approach to philanthropy, demonstrating its collaborative philosophy and tenets of change. To learn more about the Foundation, please visit thepattersonfoundation.org.

    Source: Digitunity

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  • Smartphone shipments plunge to a low not seen since 2013 — their largest ever decline

    Smartphone shipments plunge to a low not seen since 2013 — their largest ever decline

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    Apple maintained its position as the world’s largest smartphone maker by shipments in the fourth quarter of 2022, according to IDC. However, iPhone shipments declined 14.9% year-on-year.

    Stanislav Kogiku | SOPA Images | Lightrocket | Getty Images

    Global smartphone shipments plunged in the fourth quarter of 2022 — usually a big holiday shopping period — thanks to macroeconomic weakness and soft consumer demand, according to market research firm IDC.

    Electronics firms shipped 300.3 million smartphones in the October to December quarter, an 18.3% year-over-year fall, IDC said in a report published late Wednesday. The drop marks the largest-ever decline in a single quarter.

    A total of 1.21 billion smartphones were shipped in 2022, which represents the lowest annual shipment total since 2013 “due to significantly dampened consumer demand, inflation, and economic uncertainties,” IDC said.

    “We have never seen shipments in the holiday quarter come in lower than the previous quarter. However, weakened demand and high inventory caused vendors to cut back drastically on shipments,” said Nabila Popal, research director at IDC.

    Shipments represent the devices that companies like Apple and Samsung send to retailers and mobile carriers. They do not equal sales but they do give an indication of demand.

    IDC said that the “tough close to the year puts the 2.8% recovery expected for 2023 in serious jeopardy with heavy downward risk to the forecast.”

    Apple maintained its position as the number one smartphone maker in the world. The U.S. tech giant shipped 72.3 million iPhones in the fourth quarter, down 14.9% year on year, IDC said. Apple had a 24.1% market share. The decline came although Apple launched its latest models — the iPhone 14 series — ahead of the crucial holiday quarter.

    Apple faced a number of supply chain issues in the December quarter after the world’s biggest iPhone manufacturing plant in Zhengzhou, China, was hit with a Covid outbreak and worker protests.

    Samsung, the second-largest smartphone player, saw shipments decline 15.6% year on year to 58.2 million units. Samsung did not release a brand new flagship smartphone for the fourth quarter but is holding an event on Feb. 1 at which it is likely to show off its new device.

    Chinese electronics maker Xiaomi, which came in third, shipped 33.2 million units in the fourth quarter of the year, down 26.3% year on year. That was the biggest decline among the top five smartphone players, which also include Chinese smartphone makers Oppo and Vivo.

    “With 2022 declining more than 11% for the year, 2023 is set up to be a year of caution as vendors will rethink their portfolio of devices while channels will think twice before taking on excess inventory,” said Anthony Scarsella, research director at IDC.

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  • SAP to cut nearly 3,000 Jobs, weighs Qualtrics stake sale

    SAP to cut nearly 3,000 Jobs, weighs Qualtrics stake sale

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    SAP profit, revenue fall short of forecasts, plans to cut 2,800 jobs

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  • Classic ‘GoldenEye 007’ game is coming to Nintendo Switch and Xbox | CNN Business

    Classic ‘GoldenEye 007’ game is coming to Nintendo Switch and Xbox | CNN Business

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    CNN
     — 

    James Bond fans may be waiting on the next actor who will play the British spy onscreen, but a beloved Bond adventure of yore is making its return.

    “GoldenEye 007,” a classic first-person shooter made for Nintendo 64 in 1997, is being revived for Nintendo Switch and Xbox more than 25 years later. For fans who subscribe to additional content on both gaming systems, the game will be available on Friday.

    Based on the 1995 film “GoldenEye,” the game follows a block-like version of Pierce Brosnan’s 007 as he shoots his way through various locales, all while a synthy version of the signature Bond theme plays. The Xbox version has been “faithfully recreated and enhanced,” said one ad for the re-release, while the Switch game features an online multiplayer mode.

    “GoldenEye 007” was a hit upon its release: IGN gave it a 9.7/10 in 1997, praising its graphics as “superb.” Contemporary players used to the lifelike visuals of popular games like “The Last of Us” and “Red Dead Redemption” may beg to differ, but the game still holds a nostalgic appeal for fans who spent their youths lasering their way through surfaces using Bond’s watch. Not to mention, its soundtrack remains iconic.

    To access the game, Switch users will have to subscribe to its Online membership plus its expansion pack, which includes some Nintendo 64 games and downloadable content for popular games like “Mario Kart 8 Deluxe” and “Animal Crossing: New Horizons.” Xbox players must subscribe to Xbox Game Pass, a service that allows players to access hundreds of games from its server.

    The return of “GoldenEye 007,” often referred to as one of the greatest video games of all time, has been years in the making. The Verge reported last year that rights issues blocked developers from releasing it on newer consoles, including Xbox, since at least 2008. Undeterred N64 fans even attempted to remake the game themselves on several occasions, though the original rights holders usually shut them down. Now, Rare, the game’s original developer, has recreated it for Xbox with “a few modern touches,” while Nintendo is re-releasing the original on its Switch console.

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  • Why Shopify’s New Pricing Plan Is Driving the Stock Higher

    Why Shopify’s New Pricing Plan Is Driving the Stock Higher

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    Shopify


    stock got a lift after the e-commerce company announced changes to its pricing—a move one analyst said positions it for better growth.

    “The price we charge for access to the best tools in commerce has remained largely unchanged for the last 12 years,” wrote Kaz Nejatian,


    Shopify


    ‘s chief operating officer, in a blog post announcing the changes.

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  • Microsoft quarterly profit falls 12% but cloud computing business shows strength | CNN Business

    Microsoft quarterly profit falls 12% but cloud computing business shows strength | CNN Business

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    CNN
     — 

    Microsoft on Tuesday posted weaker-than-expected revenue and a double-digit percentage drop in profit for the final three months of last year amid broader economic uncertainty and reduced demand for personal computers and software.

    The tech giant reported revenue of $52.7 billion for the quarter, a modest 2% increase from the year prior but slightly less than analysts had expected. It reported net income of $16.4 billion, a 12% decline from the year prior.

    The earnings results come at a turbulent moment for Microsoft, and the tech industry as a whole. Microsoft said last week that it plans to lay off 10,000 employees as part of broader cost-cutting measures. In his explanation of the cuts, CEO Satya Nadella pointed to changing demand for digital services years into the pandemic as well as looming recession fears.

    Demand for personal computers, and the Microsoft operating systems that power them, has pulled back after experiencing a boom early in the pandemic. Consulting firm Gartner said earlier this month that worldwide PC shipments fell more than 28% in the fourth quarter of 2022 compared to the same period the prior year. This marked the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-90s.

    On Tuesday, Microsoft reported revenue declines from its Windows OEM operations and from its Xbox content and services lines. Microsoft also said it would incur $800 million in severance expenses from the layoffs announced this month, as well as charges from “changes to our hardware portfolio, and costs related to lease consolidation activities.”

    But the earnings report had some bright spots. Revenue from its cloud computing division, a key area of focus for Microsoft in recent years, increased 22% from the prior year. An analyst at Evercore described the results as “a sigh of relief.”

    Shares of Microsoft rose 4% in after-hours trading Tuesday on the news.

    “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” CEO Satya Nadella said in a statement accompanying the results. “We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”

    Earlier this week, Microsoft confirmed it is making a “multibillion dollar” investment into OpenAI, the company behind the viral AI-powered chatbot tool ChatGPT. The deepening partnership between the two companies – Microsoft was an early investor in OpenAI – could help catapult Microsoft as an AI leader and pave the way for the company to incorporate elements of ChatGPT into some of its hallmark applications, such as Outlook and Word.

    In his memo to staffers announcing the job cuts, Nadella said the company will continue to invest in “strategic areas for our future” and pointed to advances in AI as “the next major wave” of computing.

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  • Microsoft Posts Earnings Beat On Solid Cloud Results, But Guidance Disappoints

    Microsoft Posts Earnings Beat On Solid Cloud Results, But Guidance Disappoints

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    Microsoft


    posted better-than-expected results for the December quarter, driven by strength in cloud computing. But the strong results were tempered by disappointing guidance for the March quarter.

    While the company saw weakness in its PC software business, Microsoft (ticker: MSFT) posted solid results in cloud computing and enterprise applications. In particular, the Azure public cloud business beat Wall Street growth estimates, which is a relief to investors nervous about the outlook for corporate IT spending.

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  • Microsoft stock dives into the red after forecast misses, CFO warns about deceleration

    Microsoft stock dives into the red after forecast misses, CFO warns about deceleration

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    Microsoft Corp.’s profit declined more than 12% in the holiday season, and executives said Tuesday that a revenue deceleration at the end of 2022 is expected to continue into the new year as the company lays off workers.

    Microsoft MSFT Chief Financial Officer Amy Hood said in a conference call Tuesday that “we are seeing customers exercise caution,” which resulted in “moderating consumption growth in Azure and lower-than-expected growth in new business” in December. Hood then said that “we expect business trends that we saw…

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