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Tag: iab-smartphones

  • 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



    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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  • 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


    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 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


    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


    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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  • Samsung estimates quarterly profit sank to 8-year low on demand slump | CNN Business

    Samsung estimates quarterly profit sank to 8-year low on demand slump | CNN Business


    Seoul
    Reuters
     — 

    Samsung Electronics flagged on Friday its quarterly profit tumbled to an eight-year low as a weakening global economy hammered memory chip prices and curbed demand for electronic devices.

    Profits at the world’s largest memory chip, smartphone and TV maker are expected to shrink again in the current quarter, analysts said, after Samsung announced its October-December operating profit likely fell 69% to 4.3 trillion won ($3.37 billion) from 13.87 trillion won a year earlier.

    It was Samsung

    (SSNLF)
    ’s smallest quarterly profit since the third quarter of 2014 and fell short of a 5.9 trillion won Refinitiv SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.

    “All of Samsung’s businesses had a hard time, but chips and mobile especially,” said Lee Min-hee, analyst at BNK Investment & Securities.

    Quarterly revenue likely fell 9% from the same period a year earlier to 70 trillion won, Samsung said in a short preliminary earnings release. Asia’s fourth-biggest listed company by market value is due to release detailed earnings later this month.

    Rising global interest rates and cost of living have dampened demand for smartphones and other devices that Samsung makes and also for the semiconductors it supplies to rivals including Apple

    (AAPL)
    .

    “For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances,” Samsung said in the statement.

    Its mobile business’ profit declined in the fourth quarter as smartphone sales and revenue decreased due to weak demand resulting from prolonged macroeconomic issues, Samsung added.

    “Memory chip prices fell in the mid-20% during the quarter, and high-end phones such as foldable didn’t sell as well,” said BNK Investment’s Lee.

    Three analysts said they expected Samsung’s profits to dive again in the current quarter, with a likely operating loss for the chips business as a glut drives a further drop in memory chip prices.

    Samsung shares rose 0.3% in Friday morning trade, underperforming a 0.6% rise in the wider market. Shares of rival memory chip maker SK Hynix rose 1%.

    “The reason shares are rising despite the poor earnings result is… investors are hoping Samsung will need to reduce production, like Micron or SK Hynix said they would, which would help the memory industry overall,” said Eo Kyu-jin, an analyst at DB Financial Investment.

    Samsung had said in October that it did not expect much change to its 2023 investments. Analysts said that Samsung has a history of not announcing production cuts in memory chips, but could organically adjust investment by delaying bringing in equipment or through other ways.

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  • 411 is going out of service for millions of Americans | CNN Business

    411 is going out of service for millions of Americans | CNN Business


    New York
    CNN
     — 

    The operator is going off the hook for millions of customers.

    Starting in January, AT&T customers with digital landlines won’t be able to dial 411 or 0 to reach an operator or get directory assistance. AT&T in 2021 ended operator services for wireless callers, although customers with home phone landlines can still access operators and directory help. Verizon, T-Mobile and other major carriers still offer these services for a fee.

    On a notice on AT&T’s website, the company directs customers to find addresses and phone numbers on Google or online directories.

    “Nearly all of these customers have internet access to look up this information,” said an AT&T spokesperson.

    But a century ago, the operator functioned as Google. Everyone knew it as “Information.”

    “The operator was the internet before the internet. There’s a wonderful circularity there,” said Josh Lauer, an associate professor of media studies at the University of New Hampshire who is writing a book on the cultural history of the telephone.

    Operator services were a selling point to customers during the late 1800s and early 1900s. The operator was the essential link in the dominant Bell System, owned by American Telephone & Telegraph (AT&T), telecommunications network.

    The operator became the early face of the telephone, a human behind an emerging and complex technology. The job came to be occupied mostly by single, middle-class White women, often known as “Hello Girls.” The Bell System, known as Ma Bell, advertised its mostly female ranks of operators as servile and attentive – “The Voice with a Smile” – to attract and maintain customers.

    Well into the 20th century, AT&T offered weather, bus schedules, sports scores, time and date, election results and other information requests.

    “Telephone users interpreted her as an efficient way to locate any information,” wrote Emma Goodmann, an assistant professor of communication at Clarke University, in her 2019 paper on the history of telephone operators.

    On Halloween eve in 1938, during Orson Welles’ radio broadcast of “War of the Worlds,” New Jersey residents believed martians were invading and frantically phoned the operator for information on the invasion and to connect them with loved ones before the world ended.

    Three decades later, a Bell company said a customer called to ask the operator if he was a mammal, “like a whale,” while a woman wanted to know how to get a squirrel out of her house, according to Goodmann.

    The advance of technology like the internet and smartphones, the deregulation of the telecomms industry in the 1980s, and other factors have left human operators virtually extinct. In 2021, there were fewer than 4,000 telephone operators, down from a peak of around 420,000 in the 1970s, according to Bureau of Labor Statistics data.

    But there are still people who call the operator and request directory help.

    “411 usage is not insignificant,” the FCC said in a 2019 report. The FCC estimated then that 71 million calls annually were placed to 411.

    The first telephone exchange took place in New Haven, Connecticut, in 1878, two years after Alexander Graham Bell patented the telephone.

    It was designed to handle business communication, not social calls between local residents. Physicians, police, banks and the post office were some of the first subscribers.

    To connect a call, an operator at a switching office would take a request from a caller and physically plug one line into another.

    Bell and other telephone exchanges spread throughout the Northeast. Initially, telephone companies hired mostly men and boys to take calls. But the operator quickly became a gendered job.

    Male managers decided that women were better suited to answering and connecting calls from rude customers because they were seen as more docile and polite. Companies could also pay them less than men.

    Telephone companies sought female operators who would project a “comfortable and genteel image to their customers,” Kenneth Lipartito, a professor of history at Florida International University, wrote in a 1994 paper “When Women Were Switches.”

    Companies rejected Black and ethnic workers with accents, and policies barred female operators from being married. By 1900, more than 80% of operators were White, single, US-born women.

    A 'Hello Girls'  school at the Clerkenwell telephone exchange in 1932.

    Operator jobs were frenetic and repetitive.

    Workers had to scan thousands of tiny jacks, always keeping an eye open for lights indicating new calls and ones that ended. During peak times, operators handled several hundred calls an hour, Lipartito said.

    Training was also rigorous and procedures were strict. Women were instructed to modulate their voices to sound more polite answering calls and used approved language with callers.

    “Through training in the art of inflection she gains in those gentler qualities of unfailing courtesy,” a 1926 AT&T video, “Training for Service,” says.

    Although many of Bell’s independent telephone rivals began using “girlless” automated switchboards in the first decades of the twentieth century, the Bell System was committed to human operators. Automation could not provide the same level of personal service, Bell believed.

    “She’s one of 250,000 girls who help to give you good service, day and night, seven days a week. She’s your telephone operator,” read one typical Bell Systems magazine ad.

    Operators played a crucial function because telephone books were often inaccurate and customers could not be counted on to remember updated numbers and addresses.

    During the first decades of exchanges, operators also unintentionally became a catch-all for information. It was common for people to call and ask the operator for directions, the time and weather, baseball scores and other questions.

    By early part of the twentieth century, telephone companies began to separate requests for information and requests for telephone numbers.

    In 1968, the Bell System changed the name of its information service to “directory assistance” because too many people were taking the name too literally.

    “When she was called ‘Information,’ people kept calling her for the wrong reasons,” one Bell company ad said at the time. “Now we call her ‘Directory Assistance’ in the hope that you’ll call her only for numbers you can’t find in the phone book.”

    Strikes, competition for labor, and rising wages during and after World War I drove Bell to speed up its automation plans.

    In 1920, fewer than 5% of Bell exchanges had automated switchboards. A decade later, more than 30% were automated, according to a 2019 article by the Federal Reserve Bank of Richmond.

    The growth of automatic switchboards led to the direct-dial telephone in the 1920s. (The “0” for operator appeared with dial phones, said Lauer from the University of New Hampshire. On the new Bell dials, “Operator” was printed in the “0” position. The use of “411” also emerged with the dial era. “0” became universal for operator assistance and “411” was the number for directory assistance. In later years, if you dialed “0 and asked for directory assistance, the operator would transfer you over to “411.”)

    But electronic switchboards and direct dialing were phased in gradually and did not eliminate the need for human operators.

    An old dial telephone. The introduction of the dial in the 1920s eliminated the need for phone operators to connect local calls.

    Automatic switchboards were mainly used for local telephone calls. For decades after the introduction of direct dialing, operators still handled long-distance calls, toll calls, and calls to the police and fire department. This meant that operator jobs continued to rise until around the 1970s.

    Directory assistance was also mostly free for customers until the 1970s, when AT&T began charging customers to curb the “misuse” of the service and shift the high costs of employing operators and handling time-consuming queries for information.

    “Some people just simply don’t want to bother to look the number up themselves,” AT&T’s chairman complained in 1974.

    The breakup of AT&T in the 1980s and the deregulation of the telecommunications industry altered operator and directory services. Phone companies began to cut their ranks of operators, automate services and charge customers fees for calls.

    As companies increased prices, demand for directory assistance plunged. Meanwhile, the internet and smartphones emerged to replace these services for most callers.

    In 1984, there were 220,000 telephone operators. A decade later, there were 165,000, according to the Bureau of Labor Statistics. By 2004, at the dawn of the smartphone age, 56,000 people were employed as telephone operators.

    An operator in 1988. The ranks of operators fell sharply in the 1980s and 1990s.

    David McGarty, the president of US Directory Assistance, which provides services for major carriers, has watched the transformation of the operator firsthand.

    Calls to operators have decreased an average of 3% a year and around 90% overall since he started in 1996, he said.

    “We’re content with riding the Titanic down,” he said.

    While operator services may be nearly obsolete, it’s important to consider emergency circumstances where a caller may need to reach an operator and the customers who still rely on these services, such as low-income callers, the elderly and people with disabilities, said Edward Tenner, a technology historian in the Smithsonian’s Lemelson Center for the Study of Invention and Innovation. (AT&T said it would still offer free directory assistance to elderly customers and people with disabilities.)

    “Often tragedies happen when something is exceptional,” he said.

    He also empathized with people who are being forced to keep up with technological change, whether they like it or not.

    “There are a lot of people who, for various reasons, haven’t adapted,” Tenner said. “Why should they be forced to migrate to the web if they don’t want to?”

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  • Apple is raising the price of iPhone battery replacements | CNN Business

    Apple is raising the price of iPhone battery replacements | CNN Business



    CNN
     — 

    Apple is raising the price of battery replacements for all out-of-warranty iPhone models prior to the current iPhone 14 lineup, the company confirmed on its website.

    Starting March 1, Apple

    (AAPL)
    will charge $89 for battery replacements for iPhone X through iPhone 13 models, a $20 increase from the current price of a new battery. Battery replacements for other models, such as the iPhone SE and iPhone 8, will jump from $49 to $69.

    Apple is also raising the cost of replacing batteries for other products. Batteries for newer iPad models will cost $20 more, while it will cost $30 more for a new MacBook Air battery and $50 more for MacBook Pro models.

    Apple devices typically come with one year of warranty. The changes only apply to customers who are not part of its AppleCare+ repair service program, which provides up to two or three years of coverage and varies in cost depending on product.

    Apple first lowered the price of iPhone battery replacements from $79 to $29 in 2018, after it was discovered that the company deliberately slowed down the performance of older iPhones to prevent sudden battery shutdowns. In response to the controversy, dubbed batterygate, Apple also issued a rare apology and agreed to a $113 million settlement with dozens of states.

    In raising prices now, Apple may be responding to an uptick in the cost of products amid rising inflation and supply chain issues. By taking this step, Apple could also make it less attractive for customers to delay upgrading their devices or drive them to pay for the repair service program.

    The news comes as Apple’s market cap fell below $2 trillion in trading on Tuesday for the first time since early 2021 and one year to the day after the company became the first public tech company valued at $3 trillion.

    Like other tech companies, Apple has grappled with supply chain hiccups and concerns that recession fears could weigh on advertiser and consumer spending, including for pricier products like the iPhone.

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  • Inflation fears fade as geopolitical risks rise | CNN Business

    Inflation fears fade as geopolitical risks rise | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Inflation fears roiled the markets in 2022. Now, investors may have scarier things to worry about in 2023, according to a report from global research and consulting firm Eurasia Group. Most notable? Concerns about the increasingly chaotic geopolitical landscape.

    “Inflation shockwaves” still feature as one of Eurasia’s top political risks for 2023 in a new report.

    But perhaps surprisingly, inflation ranks fourth on the list, behind worries about a rogue Russia under the leadership of Vladimir Putin and Xi Jinping’s consolidation of power in China.

    Eurasia’s third biggest fear — the increased use of artificial intelligence technology to wreak havoc on the global economy — only adds to jitters about disruption from Russia and China. Eurasia called AI “a gift to autocrats.”

    Eurasia, led by political scientist and author Ian Bremmer, pointed out that Russia’s war with Ukraine may become an even bigger problem for the United States and Europe.

    “Nuclear saber-rattling by Moscow will intensify. Putin’s threats will become more explicit,” Eurasia said in its report. It is also concerned that “Kremlin-affiliated hackers will ramp up cyberattacks on Western firms and governments.”

    That could mean attempts to disrupt oil pipelines, American and European satellites and other telecom and tech infrastructure, as well as further efforts to influence and sabotage global elections.

    “Moscow will step up its rogue behavior…with newly empowered influence operations targeting NATO countries,” Eurasia said in the report.

    Eurasia pointed to upcoming Polish elections in 2023 as “the most obvious target” but that other Western nations “will be vulnerable, too.”

    Autocracy in China is a potential economic and market headache as well.

    “Xi’s drive for state control will produce arbitrary decisions and policy volatility. China’s economy is in a fragile state after two years of harsh Covid-19 controls,” Eurasia noted, pointing out that “plummeting homebuyer and market sentiment have ground growth in the critical real estate sector to a halt, depleting local government revenue.”

    Eurasia added that the “backdrop of weakening global growth and deepening domestic challenges demands competent economic management from Beijing.” Instead, “the Chinese leadership is delivering opacity and unpredictability.”

    Chinese officials announced in October that they were delaying the release of key economic data, news that Eurasia said “was an ominous sign of things to come for global markets.”

    All of this uncertainty comes as China continues to face the growing Covid outbreak in the country. Eurasia fears that “if a severe new strain of Covid were to emerge,” it is “more likely that it would spread widely in China and beyond.

    “China would be unlikely to identify the new variant because of reduced testing and sequencing, to recognize more severe disease due to an overwhelmed health system, and to let news of a more severe variant get out given Xi’s track record on transparency,’ Eurasia said. “The world would have little or no time to prepare for a deadlier virus.”

    Meanwhile, Eurasia also is worried that Beijing “will deploy new technologies not only to tighten surveillance and control of its own society, but also to spread propaganda on social media and intimidate Chinese language communities overseas.”

    None of this is to suggest that worries about rising prices have dissipated.

    While inflation is listed as the fourth-biggest risk, Eurasia is still concerned that “rising interest rates and global recession will raise the risk of emerging-market crises.”

    Energy prices in particular will remain a sticking point for the global markets and economy as Eurasia notes that “higher oil prices will also increase frictions between OPEC+ and the United States.”

    And Eurasia also listed concerns about instability in Iran, shrinking water levels and economic inequality as major global challenges.

    Then there’s another new and distinctly 21st century worry: the rise of social media.

    “Gen Z has both the ability and the motivation to organize online to reshape corporate and public policy, making life harder for multinationals everywhere and disrupting politics with the click of a button,” Eurasia said, referring to the phenomenon as the “Tik Tok Boom.”

    Sam Bankman-Fried, the disgraced founder of bankrupt crypto exchange FTX, had another day in court on Tuesday.

    Bankman-Fried, more commonly referred to by his initials, SBF, plead “not guilty” to charges ranging from wire fraud and conspiracy to commit money laundering to conspiracy by misusing customer funds.

    SBF appeared in a Manhattan court Tuesday after he was arrested last month in the Bahamas, extradited to the United States and then released by a judge on a $250 million bail package. But as my colleague Kara Scannell reports, the legal drama for SBF is only beginning. The judge set a trial date of October 2.

    Prosecutors allege that SBF was in charge of “one of the biggest financial frauds in American history.” They claim that he moved (or stole) billions of dollars from FTX customers to cover losses at the firm’s companion hedge fund, Alameda Research.

    The cryptocurrency world was already in turmoil before FTX imploded. The prices of bitcoin, ethereum and other digital coins all plummeted in 2022. But FTX and Alameda were each forced to file for bankruptcy in December after investors rushed to pull deposits.

    FTX was once valued at $32 billion, based on funding from private investors. The company was expected to be one of the hottest initial public offerings of 2023 as recently as the middle of last year. Not any more.

    Covid woes hurt Apple

    (AAPL)
    last year, as the world’s largest iPhone factory in China faced production disruptions since October due to the pandemic.

    But the giant campus, owned by top Apple supplier Foxconn, is reportedly now back at 90% production capacity following worker protests and Covid-related restrictions.

    Apple needs to get more of its latest smartphones into people’s pockets. Delays with the various iPhone 14 models have cost the company — and its investors — dearly.

    Wedbush Securities analyst Dan Ives estimated in November that disruptions in China led to about $1 billion a week in lost revenue.

    And analysts at UBS also said in November that wait times for the new iPhone 14 Pro and 14 Pro Max in the US were more than a month long due to supply chain woes. That couldn’t have come at a worse time since it was just before Christmas and other winter holidays.

    Apple’s stock had a tough 2022, like the rest of Big Tech, and it didn’t start off 2023 in a festive fashion either. Shares of Apple hit a new 52-week low Tuesday. Apple’s market value dipped below $2 trillion in the process. Just a year ago, Apple was the first company in the world to reach a $3 trillion market valuation.

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  • World’s largest iPhone factory bounces back from Covid disruption that hurt Apple | CNN Business

    World’s largest iPhone factory bounces back from Covid disruption that hurt Apple | CNN Business


    Hong Kong
    CNN
     — 

    Production at the world’s biggest iPhone factory, disrupted since October by China’s Covid-19 restrictions and worker protests, is now running at nearly full capacity, according to a Chinese state media report.

    The sprawling campus in central China, owned by Apple

    (AAPL)
    supplier Foxconn, was running at 90% of planned production capacity at the end of December, the Henan Daily newspaper reported Tuesday. It cited an interview with Wang Xue, deputy general manager of the facility, which is also known as iPhone city.

    “At the moment, the order books look good, and the orders will peak from now until a few months after Chinese New Year,” he was quoted as saying. The Lunar New Year will begin on January 22.

    Foxconn hasn’t yet responded to CNN’s request for comment about the report.

    The company said last month it was working on restoring production, which had been badly affected by supply disruptions caused by Covid restrictions. Wedbush Securities analyst Daniel Ives estimated in November that the disruptions in Zhengzhou had been costing Apple roughly $1 billion a week in lost iPhone sales.

    According to a UBS report in November, the wait time for the latest 14 Pro and 14 Pro Max in the United States touched 34 days just before the Christmas holidays because of supply chain constraints in China. The UBS analyst called the wait time “extreme.”

    The Henan Daily separately quoted an executive responsible for Foxconn’s logistics as saying that, in the first two days of January, the volume of inbound and outbound shipments had reached the highest level in a year.

    The report of a nearly full resumption of production comes one month after China abruptly ended three years of pandemic controls, setting off a huge wave of Covid infections.

    According to a report in the Wall Street Journal, a letter from Foxconn founder Terry Gou played a major role in persuading Chinese leaders to accelerate plans to dismantle the country’s Covid-19 policies. Gou was quoted as warning that strict Covid controls would threaten China’s central position in global supply chains.

    Gou’s office told CNN that it “denies the report and its contents.”

    Wang was quoted by the Henan Daily as saying iPhone City currently had about 200,000 workers on site. The employees were each eligible for a maximum of 13,000 yuan ($1,883) per month in bonuses, he said, without specifying their base salaries.

    The troubles for Foxconn started in October when workers left the campus, located in the central Chinese province of Henan, because of concerns about Covid-related working conditions and shortages of food. Short on staff, bonuses were offered to workers to return.

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

    Analysts said the production woes at iPhone City would speed up the pace of Apple’s supply chain diversification away from China.

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  • Foxconn says it’s restoring production at the world’s largest iPhone factory | CNN Business

    Foxconn says it’s restoring production at the world’s largest iPhone factory | CNN Business


    Hong Kong
    CNN Business
     — 

    Apple supplier Foxconn says it is “gradually” restoring production capacity at its sprawling campus in central China, which has been hit by Covid-19 restrictions and worker protests since October.

    The “epidemic situation” at the facility, known as iPhone City and normally home to hundreds of thousands of workers, has been brought under control, the Taiwanese contract manufacturer said in a statement on Monday.

    “We have also started to recruit new employees, and are gradually moving toward the direction of restoring production capacity to normal,” it said, adding that the outlook for the fourth quarter was expected to be in line with market consensus.

    Foxconn did not provide further details. Its executives were quoted as telling Reuters that full production would resume between late December and early January.

    The ongoing supply disruptions at Foxconn’s campus in the city of Zhengzhou were costing Apple roughly $1 billion a week in lost iPhone sales, Daniel Ives, an analyst at Wedbush Securities, had told CNN Business. He estimates that Apple is short of between 10 million and 15 million iPhones in the vital holiday shopping season.

    The troubles started in October when workers left the campus because of concerns about working conditions and shortages of food. Short on staff, bonuses were offered to workers to return.

    But protests broke out last month 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.

    Analysts said the production woes at iPhone City would speed up the pace of Apple’s supply chain diversification away from China.

    In recent weeks, according to The Wall Street Journal, Apple

    (AAPL)
    has accelerated plans to shift some of its production outside China. It was reportedly telling suppliers to plan more actively for assembling Apple

    (AAPL)
    products elsewhere in Asia, particularly India and Vietnam.

    Apple did not immediately respond to a request for comment.

    “The shift out of China will not be easy and come with clear logistical, engineering, and infrastructure hurdles as the aggressive move to India and Vietnam now begins with the Apple ecosystem alerted,” Ives wrote in a research report on Sunday.

    If Apple moves aggressively, more than 50% of iPhone production could come from India and Vietnam by the 2025/2026 fiscal year, versus the single-digit percentage currently, he added.

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  • China’s Zhengzhou, home to world’s largest iPhone factory, ends Covid lockdown | CNN Business

    China’s Zhengzhou, home to world’s largest iPhone factory, ends Covid lockdown | CNN Business


    Hong Kong
    CNN Business
     — 

    The central Chinese city of Zhengzhou, home to the world’s largest iPhone factory, has lifted a five-day Covid lockdown, in a move that analysts have called a much-needed relief for Apple and its main supplier Foxconn.

    Zhengzhou is the site of “iPhone City,” a sprawling manufacturing campus owned by Taiwanese contract manufacturer Foxconn that normally houses about 200,000 workers churning out products for Apple

    (AAPL)
    , including the iPhone 14 Pro and 14 Pro Max. Last Friday, the city locked down its urban districts for five days as Covid-19 cases surged there.

    Foxconn’s massive facility is not part of the city’s urban districts. However, analysts say the lockdown would have been detrimental to efforts to restore lost production at the campus, the site of a violent workers’ revolt last week.

    “This is some good news in a dark storm for Cupertino,” Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business, referring to the California city where Apple is based. “There is a lot of heavy lifting ahead for Apple to ramp back up the factories.”

    Ives estimates the ongoing supply disruptions at Foxconn’s Zhengzhou campus were costing Apple roughly $1 billion a week in lost iPhone sales. The troubles started in October when workers left the campus in Zhengzhou, the capital of the central province of Henan, due to Covid-related fears. Short on staff, bonuses were offered to workers to return.

    But protests broke out last week when the newly hired staff said management had reneged on their promises. The workers, who clashed with security officers, were eventually offered cash to quit and leave.

    Analysts said Foxconn’s production woes will speed up the pace of supply chain diversification away from China to countries like India.

    Ming-Chi Kuo, an analyst at TF International Securities, wrote on social media that he estimated iPhone shipments could be 20% lower than expected in the current October-to-December quarter. The average capacity utilization rate of the Zhengzhou plant was only about 20% in November, he said, and was expected to improve to 30% to 40% in December.

    Total iPhone 14 Pro and 14 Pro Max shipments in the current quarter would be 15 million to 20 million units less than previously anticipated, according to Kuo. Due to the high price of the iPhone 14 Pro series, Apple’s overall iPhone revenue in the current holiday quarter could be 20% to 30% lower than investors’ expectations, he added.

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  • Apple commits to investing across India as Tim Cook opens second store | CNN Business

    Apple commits to investing across India as Tim Cook opens second store | CNN Business


    New Delhi
    CNN
     — 

    Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi on Wednesday, pledging to invest further in the fast-growing economy as his company ramps up retail and manufacturing activities.

    The visit underscores how the world’s most valuable company is continuing to pivot to India, eyeing its potential as both a consumer market and production hub. India is set to surpass China as the world’s most populous nation by the middle of this year, according to data released by the United Nations.

    “From education and developers to manufacturing and the environment, we’re committed to growing and investing across the country,” Cook wrote on Twitter following the meeting.

    Modi said on Twitter that the two had exchanged views on a range of topics, including “the tech-powered transformations taking place in India.”

    Apple

    (AAPL)
    ’s CEO is in India this week to open its first physical stores in the country, marking a milestone for the iPhone maker in the world’s second largest smartphone market after China.

    Cook presided over the company’s second store opening in the capital of New Delhi on Thursday, after launching Apple’s first outlet in Mumbai earlier this week, greeting customers and taking selfies with employees.

    Cook also met other officials including IT Minister Ashwini Vaishnaw, who tweeted afterward that the pair had “discussed deepening Apple’s engagement in India across manufacturing, electronics exports, [the] app economy, skilling, sustainability and job creation especially for women.”

    Rajeev Chandrasekhar, India’s deputy minister for information technology, said he was optimistic about how much Apple could expand its footprint in the country.

    “I am very confident that this Apple-India partnership has a lot of headroom for investments, growth, exports and jobs — doubling and tripling over coming years,” he told Reuters.

    Apple declined to comment, while India’s IT ministry did not immediately respond to a request for details.

    Apple’s expansion in India coincides with its 25th year of operating in the country.

    The California-based giant is the world’s second biggest smartphone maker behind Samsung

    (SSNLF)
    , but its 6% share of the Indian market remains small.

    Apple, which is considered too expensive by many consumers in the country, is dwarfed by India’s top five mobile vendors, led by Samsung and Chinese smartphone makers Xiaomi and Vivo.

    The US firm’s share is expected to grow, however, as it continues to build out its retail presence in the country and more customers turn to high-end smartphones.

    Apple has also been ramping up its manufacturing in India, where it first began making iPhones in 2017.

    In recent months, it has expanded production there after suffering supply chain snags in mainland China, which accounts for the bulk of its smartphone manufacturing.

    Two of Apple’s top suppliers, Foxconn and Wistron, were the fastest-growing manufacturers in India during the last quarter of 2022, according to Counterpoint Research.

    Last month, Foxconn CEO Young Liu also spent a week in the country and met with Modi.

    In a statement this week, Apple said it was working with suppliers to “produce a growing number of components.”

    The company’s “work with Indian suppliers of all sizes supports hundreds of thousands of jobs across the country,” it added.

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  • Samsung profits plunge 95% | CNN Business

    Samsung profits plunge 95% | CNN Business

    Samsung Electronics flagged a gradual recovery for chips in the second half of the year after its semiconductor business reported a record loss on Thursday, driven by weak demand for tech devices.

    A global downturn in semiconductor purchases amid an economic slowdown and weak customer spending sent chip prices plummeting in the first quarter, triggering production cuts across the sector.

    Samsung

    (SSNLF)
    said its chip business would focus on high-capacity server and mobile products “based on expectations of a gradual market recovery and a rebound in global demand” in the second half.

    For the current quarter, Samsung said it expected limited recovery for memory chips as major data center firms invested more conservatively in servers.

    The world’s biggest memory chipmaker said operating profit fell to 640 billion won ($478.6 million) for the January-March quarter, down 95% from 14.12 trillion won a year earlier and the lowest profit for any quarter in 14 years.

    Revenue fell 18% to 63.7 trillion won.

    The South Korean tech giant’s chip division — normally its most reliable cash cow — reported a 4.58 trillion won loss compared to an 8.45 trillion won profit a year earlier.

    Shoppers around the world have cut back on purchases due to rising inflation. As a result, smartphone, personal computer and server companies have run down inventories, causing chip prices to plunge by about 70% over the previous nine months.

    Samsung made a rare announcement of a chip production cut earlier this month, joining smaller rivals.

    Although this could help chip prices recover slightly, analysts said Samsung’s profit in the current quarter may be similar to Q1 without a fundamental recovery in demand for devices that use chips.

    By the second half of the year, customers will have run down inventory and gradually start buying chips again, Samsung said.

    Despite the record loss in chips, Samsung said it spent 10.7 trillion won in capital expenditures during Q1, the highest for the first quarter of any year.

    Out of that, 9.8 trillion won was spent on chips as Samsung sets up production in its Taylor, Texas and Pyeongtaek, South Korea factories.

    “Samsung Electronics will continue to invest in memory semiconductors at a similar level to the previous year … to secure mid- to long-term competitiveness,” it said.

    Samsung’s mobile business was a brighter spot, reporting 3.94 trillion won profit in Q1, up from 3.82 trillion won a year earlier.

    “Samsung is focusing on profit rather than shipments” as it meets more resilient demand for premium smartphones rather than volume, said Jene Park, senior analyst at Counterpoint.

    In the second half, Samsung forecast the smartphone market would increase in both shipments and revenue as the global economy recovers.

    Shares in Samsung fell 0.5% in morning trade, in line with the wider market.

    Samsung shares have risen about 16% year-to-date as investors anticipate a memory chip recovery in the second half of this year.

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  • This is Google’s new folding phone | CNN Business

    This is Google’s new folding phone | CNN Business



    CNN
     — 

    Just a few days ahead of its product launch, Google unveiled an early look at its first foldable smartphone.

    In a video posted to Twitter and YouTube, the company teased a Pixel phone with a vertical hinge that can be opened to reveal a tablet-like display.

    The company will host its annual developer conference at its Mountain View, California, headquarters next week, where it’s rumored to also introduce a Pixel 7a budget phone, its latest Android operating system and advancements to its AI-powered Bard chatbot.

    Although the company didn’t reveal specs for the Pixel Fold, it’s become increasingly common for companies to show off products leading up to their own events in an effort to drum up excitement and set expectations at a time when it’s difficult to surprise onlookers with something unexpected.

    Despite great interest in foldable phones — and a resurgence in 90s-style flip phones among celebrities and TikTok influencers — the foldable market is relatively small; with Samsung dominating the category, followed by others including Motorola/Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    High price points have limited consumer adoption, too. The Pixel Fold is rumored to start at $1,700.

    It’s not surprising Google is dipping its toes into the world of foldables but it’s possible it waited to launch its own version until the technology became more advanced. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen and most apps were not well optimized for the design.

    “Google has been working on bringing better user experiences to foldable devices from a software perspective, so when coupled with improvements on the hardware side the market conditions are at a state now where it makes sense for a Pixel Fold,” said Michael Inouye, an analyst at ABI Research.

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  • A foldable phone, new tablet and lots of AI: What Google unveiled at its big developer event | CNN Business

    A foldable phone, new tablet and lots of AI: What Google unveiled at its big developer event | CNN Business



    CNN
     — 

    Google on Wednesday unveiled its latest lineup of hardware products, including its first foldable phone and a new tablet, as well as plans to roll out new AI features to its search engine and productivity tools.

    The updates, announced at its annual Google I/O developer conference, come as the company is simultaneously trying to push beyond its core advertising business with new devices while also racing to defend its search engine from the threat posed by a wave of new AI-powered tools.

    In a sign of where Google’s focus currently lies, the company spent more than 90 minutes teasing a long list of new AI features before mentioning hardware updates.

    Here’s what Google announced at the event.

    Google became the latest tech company to unveil a foldable smartphone. Like other foldables, the $1799 Pixel Fold features a vertical hinge that can be opened to reveal a tablet-like display. But Google calls the Fold the thinnest foldable on the market.

    “It took some clever engineering work redesigning components like our speakers, our battery and haptics,” said George Hwang, a product manager at Google, on a call ahead of the announcement. The company packed a Pixel phone into a less than 6 mm body – about two thirds of the thickness of its other Pixel phones.

    The Pixel Fold is very much a phone first: when it’s unfolded, it opens up into a 7.6-inch screen, and moves on Google’s custom-built 180-degree hinge. That hinge mechanism is moved out entirely from under the display to improve its dust resistance and decrease the device’s overall thickness, according to the company.

    The Google Fold includes features you’d find on a Pixel, such as long exposure, unblur, magic eraser, which lets users remove unwanted or distracting object. It also has Pixel Fold-specific tools such as dual-screen live translate, which lets a user communicate in another language with the help of fast audio and text translations on the outer screen.

    Google said it optimized its top apps to take advantage of the larger screen but “there’s still work to be done” because “optimizing for a new foldable form factor takes time,” Hwang said. “It’s a process that we’re committed to and it requires steep investment with our developer partners across Android,” Hwang added.

    Google is far from the first to embrace foldables, but it’s possible it waited to launch its own version until the technology became more advanced. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen and most apps were not well optimized for the design.

    But even now, the future for foldables remains uncertain. Most apps are still not optimized for foldable devices; prices remain very high; and Google’s chief rival, Apple, has yet to embrace the option.

    Despite great consumer interest in foldable phones — and a resurgence in 90s-style flip phones among celebrities and TikTok influencers — the foldable market is relatively small, with Samsung dominating the category, followed by others including Motorola, Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    The Pixel Fold will be available in the US, UK, Germany and Japan. The company said the device will start shipping next month.

    A look at the Google's Pixel 7a lineup

    On the surface, the 7a looks similar to the Pixel 7 and 7 Pro, with the same pixel camera bar along the back. It comes with the typical advancements you’d expect to find with any smartphone upgrade – better display, advanced camera and longer-lasting battery. But the 7a now boasts a Tensor G2 processor and a TItan M2 security chip, which brings advanced processing and new artificial intelligence features. It also offers wireless charging for the first time on an A model.

    The Pixel lineup has long been known for its cameras, and the 7a is no exception. It’s packed with upgrades, including a 64-megapixel main camera – the largest sensor on a Pixel A series to date, which will help with improved image quality, low light performance and other features. It also offers a new 13-megapixel ultra-wide camera for capturing even wider shots and a new 13-megapixel front camera. For the first time, each camera enables 4K video.

    The 7a also supports many significant Pixel features, including unblur, magic eraser and an improved Night Sight that’s two times faster and sharper than its predecessor. It also allows users to capture long exposure and enhanced zoom.

    The Pixel comes in several colors, including charcoal, snow, sea and coral, and starts at $499 via the Google Store on May 10.

    The Pixel Series A line has long been aimed at the cost conscious who want good features at a reasonable price, but its reach is limited. Google sells between eight to 10 million of the Pixel devices each year, according to ABI Research.

    “Generally, the smartphones were really meant for Google to showcase how software, and now AI capabilities, could be effectively optimized on hardware and improve the Android user experience,” said David McQueen, an analyst at ABI Research. “Google has purposely kept volume sales limited as it also has to be mindful of its relationship with other smartphone manufacturers that use the Android OS.”

    The Google Pixel tablet

    While phones were a key focus at the event, Google also refreshed other parts of its hardware lineup.

    Google introduced the Pixel Tablet, which is intended for use around the house, from turning off the lights off in the house to setting the thermostat without getting off the couch.

    The tablet, which has rounded edges and corners, comes in three colors: porcelain, hazel and rose, and starts at $499. It will be available on June 20.

    Under the hood, the 11-inch tablet is powered by Google’s Tensor G2 chips, which bring long-lasting battery life and AI features to the device. It also offers a front-facing camera, an 8-megapixel rear camera, and a charging dock.

    Google is also moving forward with plans to bring AI chat features to its core search engine amid a renewed arms race over the technology in Silicon Valley.

    The company said it is introducing the next evolution of Google Search, which will use an AI-powered chatbot to answer questions “you never thought Search could answer” and to help get users the information they want quicker than ever.

    With the update, the look and feel of Google Search results will be noticeably different. When users type a query into the main search bar, they will automatically see a pop-up an AI-generated response in addition to displaying traditional results.

    Users can now sign up for the new Google Search, which will first launch in the United States, via the Google app or Chrome’s desktop browser. A limited number of users will have access to it in the weeks ahead, according to the company, before it scales upward.

    Google is expanding access to its existing chatbot Bard, which operates outside the search engine and can help users do tasks such as outline and write essay drafts, plan a friend’s baby shower, and get lunch ideas based on what’s in the fridge.

    The tool, which was previously available to early users via a waitlist only in the US, will soon be available for all users in 120 countries and 40 languages.

    Google is also launching extensions for Bard from its own services, such as Gmail, Sheets and Docs, allowing users to ask questions and collaborate with the chatbot within the apps they’re using.

    Google also announced PaLM 2, its latest large language model to rival ChatGPT-creator OpenAI’s GPT-4.

    The move marks a big step forward for the technology that powers the company’s AI products and promises to be better at logic, common sense reasoning and mathematics. It can also generate specialized code in different programming languages.

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  • Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business

    Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business


    Hong Kong
    CNN
     — 

    Apple launched an online store in Vietnam this week, in another nod to the growing importance of emerging markets for the iPhone maker.

    The opening on Thursday, which followed the high-profile launch of its first physical shops in India, means consumers in the fast-growing Southeast Asian economy will be able to buy any Apple product directly for the first time.

    Markets like Vietnam, India and Indonesia are becoming more important for Apple as its growth in developed markets, including China, slows down, prompting the company to focus on places where it’s traditionally been less active.

    For decades, China was central to Apple’s extraordinary ascent to become the most valuable company on Earth, serving as a backbone for both its production and consumption. While the country remains key to Apple’s operations, the tech giant is now hedging its bets.

    Apple

    (AAPL)
    CEO Tim Cook has pointed to the company’s prospects in emerging economies, calling them bright spots in the company’s financial results. On an earnings call this month, Cook said he was “particularly pleased” with the performance in these markets during the first three months of the year.

    Apple “achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India,” he told analysts.

    That came as the California-based giant also reported its second straight drop in overall quarterly revenue, prompting concerns about a broader slowdown in demand amid economic uncertainty.

    “Clearly, growth has slowed globally and thus put more pressure [on Apple] to aggressively go after emerging markets,” said Daniel Ives, managing director of Wedbush Securities.

    Ives predicts that “over the coming years, Indonesia, Malaysia and India will comprise a bigger piece of the pie for Apple, given its efforts in these countries.”

    The start of online sales in a country usually precedes the launch of brick-and-mortar stores for Apple, he told CNN. This was true of India, for instance, which got its first physical outlets last month and a pledge from Cook to further invest in the country.

    Thursday’s launch showed how Apple was “further cementing” its presence in emerging markets, according to Chiew Le Xuan, a research analyst who covers smartphones in Southeast Asia for Canalys.

    He said the tech giant had been “actively increasing” its presence in the region in recent months, ramping up its distribution and network of authorized resellers, especially in Malaysia.

    Apple has ample room to run in these markets.

    Currently, the company only operates its own stores in more developed regional economies, such as Thailand and Singapore, according to Canalys.

    Even Indonesia, a vast archipelago that is the world’s sixth-biggest smartphone market, doesn’t have a physical Apple store yet, said Chiew. Apple’s market share there is tiny, at just 1% in 2022, according to Canalys data.

    “We’re putting efforts in a number of these markets and really see, particularly given our low share and the dynamics of the demographics … a great opportunity for us,” Cook said during Apple’s results call.

    Apple joins a growing list of global businesses that have become bullish on Southeast Asia, where more investment is being poured into manufacturing.

    The region’s consumer base also holds promise, with the number of middle-income and affluent households in economies such as Vietnam, Indonesia, and the Philippines projected to grow by around 5% annually through 2030, according to the Boston Consulting Group.

    The consultancy has called this group of consumers “the next mega-market.”

    The allure of Southeast Asia’s rising middle class “has changed the dynamic in these countries, which previously Apple stayed away from,” according to Ives.

    “This is a golden opportunity for Apple,” he said.

    For years, premium brands like Apple have have struggled to compete in emerging markets because of the price of their products, choosing instead to rely on local resellers.

    iPhones, which cost between $470 and $1,100, are expensive for consumers in less developed Southeast Asian economies, where the bulk of smartphone shipments are priced under $200, according to Chiew.

    He said Apple’s absence from places like Cambodia or Vietnam was typically more apparent around the launch of a new iPhone, as buyers from those countries often flew to Singapore or Malaysia to purchase devices and take them back for resale.

    A view of an Apple store at Marina Bay Sands in Singapore in 2020. Buyers from other Southeast Asian countries without their own Apple stores typically line up outside such outlets to buy devices for resale, according to an analyst.

    This could change in the coming years, particularly as Apple continues to increase its firepower in the region.

    Ives predicted that Apple could “further expand its ecosystem and tentacles to emerging markets using its China playbook,” meaning it could try to hook customers through “various pricing strategies and building out from there.”

    Once those users have converted to Apple’s operating system, iOS, they tend to stick around and become loyal customers, he added.

    This has “been the core part of its success in China that now can be replicated in India, Indonesia, and Vietnam, among others,” said Ives.

    But Apple may face hurdles in Southeast Asia, where several countries have placed stringent requirements on foreign businesses, according to Chiew.

    For example, at least 35% of the components of electronic goods sold in Indonesia must made locally, a threshold Apple has had to meet by working with partners, he added. Similar rules prevented Apple from setting up shop in India for years until the relaxation of regulations in 2019.

    And while consumers are becoming more affluent, the company’s price points are still considered high in many emerging markets, noted Ives. “Growth will be choppy we believe.”

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  • This could be Apple’s biggest product launch since the Apple Watch | CNN Business

    This could be Apple’s biggest product launch since the Apple Watch | CNN Business



    CNN
     — 

    Apple may be just one day away from unveiling its most ambitious new hardware product in years.

    At its Worldwide Developers Conference, which kicks off Monday at its Cupertino, California, campus, Apple

    (AAPL)
    is widely expected to introduce a “mixed reality” headset that offers both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world.

    The highly anticipated release of an AR/VR headset would be Apple’s biggest hardware product launch since the debut of the Apple Watch in 2015. It could signal a new era for the company and potentially revolutionize how millions interact with computers and the world around them.

    But the headset is just one of many announcements expected at the developers event. Apple will also show off a long list of software updates that will shape how people use its most popular devices, including the iPhone and Apple Watch.

    Apple may also tease how it plans to incorporate AI into more of its products and services, and keep pace with a renewed arms race over the technology in Silicon Valley.

    The event will be livestreamed on Apple’s website and YouTube. It is set to start at 10:00 a.m. PT/1:00 p.m. ET.

    Here’s a closer look at what to expect:

    For years, Apple CEO Tim Cook has expressed interest in augmented reality. Now Apple finally appears ready to show off what it’s been working on.

    According to Bloomberg, the new headset, which could be called Reality One or Reality Pro, will have an iOS-like interface, display immersive video and include cameras and sensors to allow users to control it via their hands, eye movements and with Siri. The device is also rumored to have an outward-facing display that will show eye movements and facial expressions, allowing onlookers to interact with the person wearing the headset without feeling as though they’re talking to a robot.

    Apple’s new headset is expected to pack apps for gaming, fitness and meditation, and offer access to iOS apps such as Messages, FaceTime and Safari, according to Bloomberg. With the FaceTime option, for example, the headset will “render a user’s face and full body in virtual reality,” to create the feeling that both are “in the same room.”

    The decision to unveil it at WWDC suggests Apple wants to encourage developers to build apps and experiences for the product in order to make it more compelling for customers and worth the hefty price tag.

    The company is reportedly considering a $3,000 price tag for the device, far more than most of its products and testing potential buyers at a time of lingering uncertainty in the global economy. Other tech companies have struggled to find mainstream traction for headsets. And in the years that Apple has been rumored to be working on the product, the tech community has shifted its focus from VR to another buzzy technology: artificial intelligence.

    But if any company can prove skeptics wrong, it’s Apple. The company’s entry into the market combined with its vast customer base has the potential to breathe new life into the world of headsets.

    A mixed reality headset may not be the only piece of hardware to get stage time this year.

    Apple is expected to launch a new 15-inch MacBook Air packing the company’s M2 processor. The current size of the MacBook Air is 13 inches.

    Previously, users who wanted a larger-sized Apple laptop would need to buy a higher-end MacBook Pro.

    Considering WWDC is traditionally a software event, Apple executives will likely spend much of the time highlighting the changes and upgrades coming to its next-generation mobile operating systems, iOS 17 and iPadOS 17.

    While last year’s updates included a major design overhaul of the lock screen and iMessage, only minor changes are expected this year.

    With iOS 17, Apple is expected to double down on its efforts around health tracking by adding the ability to monitor everything from a user’s mood to keeping tabs on how their vision may change over time. According to the Wall Street Journal, Apple will also launch a journaling app not only as a way for users to log their thoughts but also activity levels, which can then be analyzed to reveal how much time someone spends at home or out of the house.

    The new iOS 17 is also said to get a lock screen refresh: When positioned in horizontal mode, the display will highlight widgets tied to the calendar, weather and other apps, serving as a digital hub. (iPadOS 17 is also expected to get some of the same lock screen capabilities and health features.)

    Other anticipated upgrades include an Apple Watch OS update that would focus on quick glances at widgets, and more details about its next-generation CarPlay platform, which it initially teased last year.

    While much of the focus of the event may be on VR, Apple may also attempt to show how it’s keeping pace with Silicon Valley’s current obsession: artificial intelligence.

    Apple reportedly plans to preview an AI-powered digital coaching service, which will encourage people to exercise and improve their sleeping and eating habits. It’s unclear how it could work, but the effort comes at a time when Big Tech companies are racing to introduce AI-powered technologies in the wake of ChatGPT’s viral success.

    Apple may also demo and expand on some of its recently teased accessibility tools for the iPhone and iPad, including a feature that promises to replicate a user’s voice for phone calls after only 15 minutes of training.

    Most of the other Big Tech companies have recently outlined their AI strategies. This event may be Apple’s chance to do the same.

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  • I tried Apple’s new headset. Here’s what it’s like to use | CNN Business

    I tried Apple’s new headset. Here’s what it’s like to use | CNN Business



    CNN
     — 

    It’s rare to find a new technology that feels groundbreaking. But last night, while sitting on a couch in a private demo room at Apple’s campus wearing its newly announced Vision Pro mixed reality headset, it felt like I’d seen the future — or at least an early and very pricey prototype of it.

    In the demo, which lasted 30 minutes, a virtual butterfly landed on my finger; a dinosaur with detailed scales tried to bite me; and I stood inches away from Alicia Keys’ piano as she serenaded me in a recording studio. When a small bear cub swam by me on a quiet lake during another immersive video, it felt so real that it reminded me of an experience with a loved one who recently passed away. I couldn’t wipe the tears inside my headset.

    Apple unveiled the headset, its most ambitious and riskiest new hardware offering in years, at a developer event earlier in the day. The headset blends both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world. At the event, Apple CEO Tim Cook touted the Vision Pro as a “revolutionary product,” with the potential to change how users interact with technology, each other and the world around them. He called it “the first product you look through, not at.”

    But it’s clearly a work in progress. The apps and experiences remain limited; users must stay tethered to a battery pack the size of an iPhone with just two hours of battery life; and the first minutes using the device can be off-putting. Apple also plans to charge $3,499 for the device when it goes on sale early next year – more than had been rumored and far more than other headsets on the market that have previously struggled to gain wide adoption.

    With its loyal following and impressive track record on hardware, Apple may be able to convince developers, early adopters and some enterprise customers to pay up for the device. But if it wants to attract a more mainstream audience, it will need a “killer app,” as the industry often refers to it -— or several.

    Based on my demo, Apple still has a long way to go, but it’s off to a compelling start.

    Hours after the keynote event, I arrived at a building on Apple’s sprawling Cupertino, California, campus specifically constructed to stage demos and briefings for the new headset.

    I was met by an Apple employee who scanned my face to help customize the fit of the headset. Then I entered a small room where an optometrist asked if I wore glasses or corrective lenses. I had gotten Lasik surgery years ago, but others around me had their glasses scanned so the headset could present their specific prescription. It’s an incredible feat that differentiates Apple from competitors and ensures no frames need to be squeezed into the headset. But it’s unclear how the company plans to handle this process at scale if millions buy the device.

    The initial setup process was somewhat unpleasant: I felt a little nauseous and claustrophobic as I adjusted to the device. It tracked my eyes, scanned my hands and mapped the room to better tailor the augmented reality experience.

    But Apple has also taken steps to reduce the motion sickness problem that has plagued other headsets. The headset uses an R1 processor, a custom chip that cuts down on the latency issue found in similar products that can result in nausea.

    As many viewers were quick to point out on Monday, the headset itself looks like a pair of designer ski goggles. It features a soft adjustable strap on the top, a “digital crown” on the back – a bigger version than what you’d find on an Apple Watch – and another digital crown on the top that serves as a kind of home button. There’s also a wire connecting to an external battery pack.

    The headset itself felt light enough in the beginning, but even with Apple’s considerable design chops, I never shook the idea that there was a computer on my face. Fortunately, unlike other computing products, the headset did remain cool on my face throughout the experience, thanks largely to a quiet fan and airflow running through the system

    Unlike other headsets, the new mixed reality headset also displays the eyes of its users on the outside, so “you’re never isolated from the people around you, you can see them and they can see you,” Alan Dye, vice president of human interface, said during the keynote.

    Sadly, I never got to see how my own eyes or anyone else’s looked through the headset during the demo.

    After putting on the device, I saw an iOS-like interface. I could easily hop in and out of apps, such as Messages, FaceTime, Safari and Photos, using just my eye movements and touching my thumb and pointer finger together to act as the “select” button. This was more intuitive than expected and worked even when my hands rested on my lap.

    Some app experiences were better than others, however. It was beautiful to see images in the Photos app presented before me in a larger than life manner, but it’s hard to imagine feeling the need to do this often on a couch back home. Vision Pro also offers a spatial photo option, which lets users view images and videos in 3D so you feel like you’re directly in the scene. Again, cool but unnecessary.

    During another demo, an Apple employee wearing a Vision Pro headset FaceTimed me from the other side of campus. Her “persona” – a digital representation which did not show her wearing the Vision Pro – appeared in front of me as we chatted about the event earlier in the day. She seemed real but it was clear she was not; she was a sort of pseudo-human. (Apple did not scan my face to create my own persona, which would otherwise be done through its OpticID security feature during the setup phase.)

    The Apple employee then shared a virtual whiteboard – dragging, dropping and highlighting interior design images. Cook has focused on AR’s potential to foster collaboration, and it’s clear how this tool could be used in meetings to fulfill that promise. What’s less clear is why most employers would spend $3,499 per device per employee to make this happen rather than simply use Zoom.

    Like so much else about the product unveiling, this pitch felt mistimed. Earlier in the pandemic, more people might have jumped at the chance to create these virtual experiences while we worked and socialized almost entirely from home. Now, with more employees back in the office and companies looking to cut costs amid broader economic uncertainty, the justification for this pricey device seemed less clear.

    The real magic of the Vision Pro, however, is in the immersive videos. Watching an underwater scene from Avatar 2 in 3D, for example, was surreal, seemingly placing me right in the ocean with these fictional creatures. It’s easy to imagine buy-in from Hollywood filmmakers to create experiences just for the headset.

    Apple is also uniquely positioned here to supercharge the device with these experiences. It has close relationships in the entertainment industry, including with former Apple board member and Disney CEO Bob Iger, who announced in a pre-recorded video during the event that Disney+ will be available on the headset at launch. Apple teased new National Geographic, Marvel and ESPN experiences for the headset, too.

    Almost every new Apple product, from the iPhone to the Apple Watch, promises to use screens of varying sizes to change how we live, work and interact with the world. The Vision Pro has the potential to do all of that in an even more striking way. But unlike the first time I picked up an iPhone or a smartatch, after 30 minutes of using Vision Pro, I was very content to put it down and return to the real world.

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  • The iPhone’s ducking autocorrect problem finally gets fixed | CNN Business

    The iPhone’s ducking autocorrect problem finally gets fixed | CNN Business


    New York
    CNN
     — 

    Your iPhone’s autocorrect is getting a big ducking upgrade.

    Currently, when you enter a typo or key in an unrecognized word, Apple’s iOS uses some onboard machine learning and references a library of frequent misspellings to automatically correct your mistake. But, as anyone who has ever been seriously annoyed has learned, sometimes your correctly spelled salty language will get changed to something else entirely.

    In the new iOS 17, announced at Apple’s Worldwide Developers Conference Monday, a new kind of AI-powered autocorrect could solve that problem.

    Apple’s new iOS keyboard will learn your habits over time, fixing words that you frequently misspell – and leaving words alone that you intentionally thumbed in. It will also use AI to better predict your next word and provide improved autofill suggestions.

    “In those moments where you just want to type a ducking word, well, the keyboard will learn it, too,” said Craig Federighi, Apple’s head of software, during Apple’s presentation.

    Using a so-called transformer language model, similar to the technology that powers ChatGPT, Federighi said the new iOS will be able to fix entire sentences based on context. For example, Apple will know to change “your” to “you’re” when you’ve completed a sentence using the incorrect word.

    The new iOS will also allow you to revert to the original word you typed by tapping on the change, and it will learn from your habits over time.

    Predictive text is also getting better, allowing people to tap the spacebar to fill in words and complete entire sentences in some cases. Dictation is also getting some improvements, as Apple’s new keyboard engine will learn your voice over time.

    Apple is banking on its in-house processor, also announced at the conference, to power the language model each time a user interacts with the keyboard.

    The makeover to the keyboard and autocorrect will be in the new iOS 17 slated for later this year.

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  • How your phone learned to see in the dark | CNN Business

    How your phone learned to see in the dark | CNN Business


    New York
    CNN
     — 

    Open up Instagram at any given moment and it probably won’t take long to find crisp pictures of the night sky, a skyline after dark or a dimly lit restaurant. While shots like these used to require advanced cameras, they’re now often possible from the phone you already carry around in your pocket.

    Tech companies such as Apple, Samsung and Google are investing resources to improve their night photography options at a time when camera features have increasingly become a key selling point for smartphones that otherwise largely all look and feel the same from one year to the next.

    Earlier this month, Google brought a faster version of its Night Sight mode, which uses AI algorithms to lighten or brighten images in dark environments, to more of its Pixel models. Apple’s Night mode, which is available on models as far back as the iPhone 11, was touted as a premier feature on its iPhone 14 lineup last year thanks to its improved camera system.

    These tools have come a long way in just the past few years, thanks to significant advancements in artificial intelligence technology as well as image processing that has become sharper, quicker, and more resilient to challenging photography situations. And smartphone makers aren’t done yet.

    “People increasingly rely on their smartphones to take photos, record videos, and create content,” said Lian Jye Su, an artificial intelligence analyst at ABI Research. “[This] will only fuel the smartphone companies to up their games in AI-enhanced image and video processing.”

    While there has been much focus lately on Silicon Valley’s renewed AI arms race over chatbots, the push to develop more sophisticated AI tools could also help further improve night photography and bring our smartphones closer to being able to see in the dark.

    Samsung’s Night mode feature, which is available on various Galaxy models but optimized for its premium S23 Ultra smartphone, promises to do what would have seemed unthinkable just five to 10 years ago: enable phones to take clearer pictures with little light.

    The feature is designed to minimize what’s called “noise,” a term in photography that typically refers to poor lighting conditions, long exposure times, and other elements that can take away from the quality of an image.

    The secret to reducing noise, according to the company, is a combination of the S23 Ultra’s adaptive 200M pixel sensor. After the shutter button is pressed, Samsung uses advanced multi-frame processing to combine multiple images into a single picture and AI to automatically adjust the photo as necessary.

    “When a user takes a photo in low or dark lighting conditions, the processor helps remove noise through multi-frame processing,” said Joshua Cho, executive vice president of Samsung’s Visual Solution Team. “Instantaneously, the Galaxy S23 Ultra detects the detail that should be kept, and the noise that should be removed.”

    For Samsung and other tech companies, AI algorithms are crucial to delivering photos taken in the dark. “The AI training process is based on a large number of images tuned and annotated by experts, and AI learns the parameters to adjust for every photo taken in low-light situations,” Su explained.

    For example, algorithms identify the right level of exposure, determine the correct color pallet and gradient under certain lighting conditions, sharpen blurred faces or objects artificially, and then makes those changes. The final result, however, can look quite different from what the person taking the picture saw in real time, in what some might argue is a technical sleight-of-hand trick.

    Lights illuminate the Atlanta Botanical Gardens, in this photo taken using Google Pixel 5 Night Sight setting.

    Google is also focused on reducing noise in photography. Its AI-powered Night Sight feature captures a burst of longer-exposure frames. It then uses something called HDR+ Bracketing, which creates several photos with different settings. After a picture is taken, the images are combined together to create “sharper photos” even in dark environments “that are still incredibly bright and detailed,” said Alex Schiffhauer, a group product manager at Google.

    While effective, there can be a slight but noticeable delay before the image is ready. But Schiffhauer said Google intends to speed up this process more on future Pixel iterations. “We’d love a world in which customers can get the quality of Night Sight without needing to hold still for a few seconds,” Schiffhauer said.

    Google also has an astrophotography feature which allows people to take shots of the night sky without needing to tweak the exposure or other settings. The algorithms detect details in the sky and enhances them to stand out, according to the company.

    Apple has long been rumored to be working on an astrophotography feature, but some iPhone 14 Pro Max users have successfully been able to capture pictures of the sky through its existing Night Mode tool. When a device detects a low-light environment, Night mode turns on to capture details and brighten shots. (The company did not respond to a request to elaborate on how the algorithms work.)

    AI can make a difference in the image, but the end results for each of these features also depend on the phone’s lenses, said Gartner analyst Bill Ray. A traditional camera will have the lens several centimeters from the sensor, but the limited space on a phone often requires squeezing things together, which can result in a more shallow depth of field and reduced image quality, especially in darker environments.

    “The quality of the lens is still a big deal, and how the phone addresses the lack of depth,” Ray said.

    While night photography on phones has come a long way, a buzzy new technology could push it ahead even more.

    Generative AI, the technology that powers the viral chatbot ChatGPT, has earned plenty of attention for its ability to create compelling essays and images in response to user prompts. But these AI systems, which are trained on vast troves of online data, also have potential to edit and process images.

    “In recent years, generative AI models have also been used in photo-editing functions like background removal or replacement,” Su said. If this technology is added to smartphone photo systems, it could eventually make night modes even more powerful, Su said.

    Big Tech companies, including Google, are already fully embracing this technology in other parts of their business. Meanwhile, smartphone chipset vendors like Qualcomm and MediaTek are looking to support more generative AI applications natively on consumer devices, Su said. These include image and video augmentation.

    “But this is still about two to three years away from limited versions of this showing up on smartphones,” he said.

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