ReportWire

Tag: iPhone

  • Earnings playbook: How to trade some of the biggest reports this week, including Apple

    Earnings playbook: How to trade some of the biggest reports this week, including Apple

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  • Someone Bought A 16-Year-Old iPhone For Over $190,000

    Someone Bought A 16-Year-Old iPhone For Over $190,000

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    Hey, quick question: If you had a spare $200,000 laying around in your bank account, what would you spend it on? You’d probably spend it on a house, or maybe a new car (several new cars?). What you probably wouldn’t do is drop that kind of cash on a 16-year-old iPhone. But that’s what happened over the weekend.

    The original iPhone was released all the way back in June 2007. At the time, Apple released two versions of what would become its most successful product ever: a 4GB storage model that cost $499 and an 8GB model that cost $599. And it’s that 4GB model that has become a bit of a collector’s item. This is because back in 2007 the 4GB version sold more slowly than its 8GB counterpart. Most people just paid the extra $100 to double the phone’s storage, and as a result, Apple discontinued the 4GB version just two months after its release, in September 2007. So there weren’t nearly as many of them out in the wild, and even fewer remained sealed in their boxes. That (sort of) explains why a sealed, mint condition iPhone 4GB from 2007 just sold at auction for $190,372.80.

    As reported by TweakTown on July 16, the supposedly very rare iPhone 4GB was sold to an unknown buyer on LCGAuctions.com for nearly $200k.

    LCG Auctions’ item description suggests that the old Apple phone is the “Holy Grail” among phone collectors. The phone up for auction was still factory sealed in its original box, and apparently in “exceptional condition.” LCGAuctions claimed the consignor was part of the original engineering team at Apple during the iPhone launch, possibly explaining how they got their hands on such a rare device and why they never opened it.

    Other iPhones have sold for similarly high prices

    This isn’t the first iPhone to sell for a large sum of money at auction. LCGAuctions cites a few other Apple devices that have, over the preceding nine months, sold for hard-to-believe prices, including two factory-sealed 8GB iPhones from the same era. One sold in October of last year for $39,339, and another hit $63,356 this past February. And yet another one of these old, original, and still-sealed iPhones sold this year for $40,000, bought (and opened) by YouTuber Marques Brownlee. 

    Marques Brownlee

    What’s happening here? Well, some have suggested that many of these big-ticket auctions involving old tech, video games, and collectibles are part of some kind of money-laundering or price-fixing shenanigans. For example, some believe that video game auctions involving sealed copies of Nintendo games going for tens of thousands of dollars are part of some alleged racket involving item graders, auction houses, and rich clients. All companies involved have denied the claims, however, and there’s no direct evidence that suggests these recent iPhone auctions are part of some larger conspiracy or otherwise tied to illicit activities.

    Regardless of what’s going on, if you want an old iPhone or other collectible tech item, you should probably buy it now before prices get even higher in the future. Maybe it’ll pay for your kid’s college, or the AI apps that they’ll need to compete in the 2040s job market or something.

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  • Apple iPhone from 2007 sells for more than $190,000 at auction

    Apple iPhone from 2007 sells for more than $190,000 at auction

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    A first-generation iPhone sold for a whopping $190,372.80 at auction on Sunday. 

    The unopened 4GB model was bought for nearly 400 times its original price after 28 bids on LCG Auctions. The sale comes months after another iPhone from 2007 was sold in February for $63,356.

    “The original 4GB model is considered a ‘Holy Grail’ amongst iPhone collectors,” LGC Auctions wrote in its listing for the latest sale. “Its extreme scarcity is directly related to its limited production.”

    The starting bid was $10,000. LGC Auctions, which expected the phone to sell for $50,000-$100,000, noted it’s “proven to be a popular high-end collectible.”

    Apple is currently selling the iPhone 14 at prices that start at $799.

    The original 4GB iPhone, released on June 29, 2007, was discontinued just over two months after it was launched because of lagging sales, even after the company slashed the price by a third to incentivize customers. It was initially priced at $499 for the 4GB model and at $599 for 8GB of storage.

    Long-Awaited Apple iPhone Goes On Sale Across U.S
     The iPhone was unveiled at Apple’s flagship store on Fifth Avenue on June 29, 2007 in New York City. 

    Michael Nagle / Getty Images


    Company CEO Steve Jobs introduced the iPhone in early 2007. He said it would “reinvent” the telecommunications sector, calling it “magic” and “super smart.” 

    The one that sold on Sunday was still in its original factory wrapping. It has a 2-megapixel camera and a web browser. The phone has never been activated. 

    “The phone’s provenance is pristine as the consignor was part of the original engineering team at Apple when the iPhone first launched,” LGC Auctions wrote in its listing for the phone. “Collectors and investors would be hard pressed to find a superior example.”

    Apple fans have a history of paying big bucks for original products from the company’s past. Someone bought a first-generation iPhone for $35,414 in August and another was sold for $39,339 in October through LCG. Last year, an Apple-1 Computer prototype from the mid-1970s sold at auction for more than $677,000

    The company’s founding documents, co-signed in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, sold for a staggering $1.59 million in 2011.

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  • “What the duck” is no more with Apple’s new iPhone autocorrect update

    “What the duck” is no more with Apple’s new iPhone autocorrect update

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    Apple devices could re-create user’s voice


    Apple users will be able to turn text into your own speech with new update

    05:40

    For iPhone users, texting curse words hasn’t traditionally been an easy task, with “duck” being the stand-in for many people’s favorite f-word. But Apple announced at the Worldwide Developers Conference yesterday that the G-rated autocorrection will come to an end with its newest update. 

    “In those moments where you just want to type a ducking word, well the keyboard will learn it,” Apple’s senior vice president of software engineering Craig Federighi said on Monday.  

    That change will come with the soon-to-come iOS 17, which is set to debut sometime this autumn, Federighi said at the conference. The new autocorrect system will “improve the experience every time you type,” he said, with a “state-of-the-art” machine learning system that now includes a “transformer language model.” 

    iPhones’ autocorrect function has left some users frustrated, spawning an ongoing series of “damn autocorrect jokes” around the world on virtually every social medium. It’s even led to a dedicated Reddit page.

    The new update will also allow users to revert back to the word they originally spelled out, when autocorrect seems to think that they spelled something wrong, just by tapping on the word in question. Predictive text will also now allow users to finish words and sentences by clicking on the space bar. 

    The autocorrect update is just one of several new upgrades and updates coming from Apple, including leaving messages on Facetime and using Facetime on Apple TVs, search filters, live stickers, and more. 

    Also new to Apple is the company’s Vision Pro virtual reality headset, the first big product to be released by the company in years. The headset, which costs nearly $3,500, has been called the world’s first spatial computers, according to Apple, and will be available next year.

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  • Charge Your Device More Efficiently With This Speedy Wireless iPhone Charger, Now $80 Off | Entrepreneur

    Charge Your Device More Efficiently With This Speedy Wireless iPhone Charger, Now $80 Off | Entrepreneur

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    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    It’s a sometimes-unwelcome fact of entrepreneurship — you’re probably going to be glued to your phone most of the day. From answering an email when you’re away from your desk to hopping on a conference call or Zoom meeting during your commute, getting that weekly screen time usage alert is usually pretty sobering week after week.

    If you’re in the market for a way to power your phone back up quickly and efficiently, the Speedy Mag Wireless Charger for iPhone is up to the task. And right now, you can snag one in chic black for 66% off the usual $119 price tag for just $39.99 for a limited time.

    If you’re an Apple lover with an iPhone 12 or newer, the Speedy Mag Wireless Charger for iPhone offers super fast charging as soon as you attach it to your device. It comes equipped with a built-in magnet and a metal plate that can stick securely to your phone, keeping it safe and in one spot as it powers back up.

    Just set your phone against the Speedy Mag Wireless Charger and it automatically starts charging back up and a more efficient rate than your usual old charger. And you can enjoy peace of mind as you wait, as there are built-in safeguards against overcharge. No worries and no wires needed!

    Real-life user Janet raved about its effectiveness, sharing, “Love that I no longer have to worry about being out and about and my phone battery dying. I pop on this charger and it keeps my phone charged.”

    Power up your iPhone quickly, efficiently, and in style with the Speedy Mag Wireless Charger for iPhone, now just $39.99 for a limited time.

    Prices subject to change.

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  • Warren Buffett names his favorite stock, comments on other Berkshire Hathaway holdings at annual meeting

    Warren Buffett names his favorite stock, comments on other Berkshire Hathaway holdings at annual meeting

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  • Apple reports better-than-expected quarter driven by iPhone sales

    Apple reports better-than-expected quarter driven by iPhone sales

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    Apple reported second-fiscal quarter earnings on Thursday that beat Wall Street’s soft expectations, driven by stronger-than-anticipated iPhones sales. Apple CEO Tim Cook told CNBC that the quarter was “better than we expected.” 

    However, Apple’s overall sales fell for the second quarter in a row. The tech giant’s shares rose nearly 2% in extended trading, and continued climbing when Apple gave forecast data points about the current quarter.

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    Apple's profit report is the market's next big test now. JPMorgan breaks down whether it can deliver

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    Here’s how the company did versus Wall Street expectations per Refinitiv consensus expectations: 

    • EPS: $1.52 per share vs. $1.43 expected 
    • Revenue: $94.84 billion vs. $92.96 billion expected 
    • Gross margin: 44.3% vs. 44.1% expected 

    Apple reported $24.16 billion in net income during the quarter compared to $25.01 billion in the year-earlier period. Total revenue was off 3% from $97.28 billion in the prior quarter.

    Here’s how Apple’s individual product lines did versus StreetAccount consensus expectations: 

    • iPhone revenue: $51.33 billion vs. $48.84 billion expected 
    • Mac revenue: $7.17 billion vs. $7.80 billion expected 
    • iPad revenue: $6.67 billion vs. $6.69 billion expected 
    • Other Products revenue: $8.76 billion vs. $8.43 billion expected 
    • Services revenue: $20.91 billion vs. $20.97 billion expected 

    Apple didn’t provide formal guidance, continuing its practice that dates back to 2020 and the start of the Covid-19 pandemic. Management typically provides some data points on a call with analysts.

    Apple finance chief Luca Maestri said the company expects overall revenue in the current quarter to decline about 3%.

    “We expect our June quarter year-over-year revenue performance to be similar to the March quarter assuming that the macroeconomic outlook does not worsen from what we are projecting today for the current quarter,” Maestri said on a call with analysts. He added the company is facing macroeconomic challenges in digital advertising and mobile gaming, which is part of Apple’s services business.

    The highlight of Apple’s report was iPhone sales, which grew from the year-ago quarter even as the broader smartphone industry contracted nearly 15% during the same time, according to an IDC estimate.  

    IPhone revenue increased 2% during the quarter that ended April 1, suggesting that parts shortages and supply chain issues that had hampered the product for the last few years — including an iPhone factory shutdown late last year — had finally abated.  

    “It was quite a good quarter from an iPhone point of view, particularly relative to the market when you look at the market stats,” Cook told CNBC’s Steve Kovach.  

    Chief Executive Officer (CEO) of Apple Tim Cook waves to people during the opening of the first Apple Inc. flagship store in Mumbai, India on April 18, 2023.

    Imtiyaz Shaikh | Anadolu Agency | Getty Images

    Apple’s Mac and iPad businesses didn’t fare as well. The company warned last quarter that both business segments would decline, partially due to parts shortages but they fell further than expected.  

    Apple’s Mac sales were off more than 31% to just over $7.17 billion. But that’s a difficult comparison from the year-earlier period when Apple was still benefiting from the end of a pandemic boom in PC sales and a shift to its own chips that offer longer laptop battery life.  

    “There’s really two reasons for that,” Cook said. “One is the macro situation in general. And the other is where we’re still comparing to the very difficult compare of the M1 MacBook Pro 14 and 16-inch from the year-ago quarter.” 

    Revenue from iPads declined nearly 13% to $6.67 billion.  

    Apple’s Services business includes monthly subscriptions, revenue from Apple’s App Store, warranties and search-licensing revenue from companies like Google. Apple reported $20.9 billion in services revenue, a 5.5% year-over-year increase, signaling the company’s highest-margin business line continues to grow.  

    Apple’s wearables division, including Apple Watch and headphones such as AirPods, dropped 1% during the quarter, beating analyst expectations. Last fall, the company released a more expensive Apple Watch, called Ultra.  

    Apple’s China regional business, which includes the mainland, Taiwan and Hong Kong, reported $17.81 billion in sales, down from last year’s $18.34 billion. Analysts had hoped that China’s demand for electronics would rise in the quarter as the company exits out of Covid-era lockdowns and other restrictions.  

    While sales shrunk in most regions that Apple monitors, they grew in the Asia Pacific region to $8.11 billion.

    Cook was optimistic about Apple’s prospects in India after his visit last month to the country where he opened Apple stores and met with politicians.  

    “The switcher and first-time buyer metrics look very good there for India,” Cook said. Apple uses the term “switcher” to refer to first-time iPhone buyers who previously had Android devices.  

    As expected, Apple’s board authorized $90 billion in share repurchases and dividends. Apple said it paid $23 billion in buybacks and dividends in the March quarter. Apple also raised its dividend 4% to 24 cents per share.  

    Cook also said that Apple was not planning layoffs like those that other big tech companies have started over the past year.  “I view that as a last resort and, so, mass layoffs is not something that we’re talking about at this moment,” he said.  

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  • This Six-Piece iPhone Accessory Kit Can Get Your Team Ready to Communicate | Entrepreneur

    This Six-Piece iPhone Accessory Kit Can Get Your Team Ready to Communicate | Entrepreneur

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    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    Communication is key to collaboration, but 86% of employees and executives struggle with both, according to a 2022 Pumble study. So if you’ve found that your team is struggling with communication, it may help if you give them the tools to stay connected throughout the day. This Apple-Compatible Six-Piece Accessory Bundle for iPhone 14 Pro comes with Bluetooth earbuds, a charger cable, a new phone case, and more, and it could be the ticket to keeping your team connected throughout the day.

    Communication is an essential part of maintaining a high-performing team. Having the means to contact each other may not be enough if your team members are coming up with low batteries or can’t join a meeting hands-free. iPhone hardware is just as important as iPhone software.

    This six-piece accessory bundle comes with a 35W PD charging head, magnetic case, wireless charger, charging cable, Bluetooth earbuds, and a leather phone back pocket.

    The 35W PD charging head has a wide range of compatibility with iPhones up to 14 and multiple iPad models. Pair it with the charging cable for fast power delivery that your employees can use at their desks.

    Between the wireless charger and the magnetic case, you have a quick, easy way to recharge an employee’s iPhone 14 Pro. The wireless charger connects magnetically to the case so users can continue replying to emails, joining virtual meetings, and more. In addition, if they need to take a meeting in private, the included Bluetooth earbuds have a lengthy battery life with in-ear detection and automatic switching.

    While employees may need to keep their phones handy, they can still elevate their look with the PU leather phone back pocket. This sleek phone holster is compatible with iPhones and other devices that are four inches and above.

    Equip your team with iPhone-compatible gear to keep their batteries high, their phone accessible, and their meetings private.

    For a limited time, get the Apple-Compatible Six-Piece Accessory Bundle for iPhone 14 Pro for $99.99 (reg. $154).

    Prices subject to change.

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  • Why India is so important to Apple

    Why India is so important to Apple

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    Tim Cook, Apple’s Chief Executive Officer (CEO) greets the media with folded hands outside the Apple store at Jio World Drive mall, Mumbai, India, April 18, 2023.

    Ashish Vaishnav | Sopa Images | Lightrocket | Getty Images

    Apple CEO Tim Cook is in India this week. He’s opened two new Apple stores, is scheduled to meet with Prime Minister Narendra Modi, and he’s seeing sights and visiting customers in the country.

    The international trip is the strongest sign yet that India has become a huge strategic focus for Apple as supply chains move away from China and its smartphone market is increasingly saturated with iPhone owners.

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    India could echo the role China has played in Apple’s business for the last 15 years: A massive market with an expanding middle class to power sales growth, and potentially a home base for the production of millions of Apple devices.

    Analysts say that India’s large population and maturing economy is ideally situated for Apple to make inroads by increasing marketing efforts and offering retail in the country. At the same time, India’s government is eager to work closely with Apple to make it possible to manufacture in the country, CNBC reported.

    There’s room for Apple to grow on the subcontinent: Apple has less than 5% of the smartphone market share in India, versus about 18% in China, said Angelo Zino, senior analyst at CFRA research. The bulk of smartphone sales in both countries use versions of the Android operating system created by Google.

    “As you look at India today, it’s very similar to China 15 or 20 years ago,” Zino said. “It’s really that natural wealth effect over time that’s going to help Apple really penetrate and see significantly higher revenue potential in India.”

    The opportunity could be massive: Apple did $74 billion in sales in China, Hong Kong, and Taiwan in fiscal 2022. That’s about 18% of Apple’s total revenue during the period.

    India is not there yet. It’s reported in a category with other markets called “rest of Asia Pacific,” which reported only $29 billion in sales during the same time period.

    Corporate filings in India covered by local media suggest that Apple’s sales in the country were about $4 billion in fiscal 2022, and Bloomberg reported earlier this week that Apple reported nearly $6 billion in sales in the year ending in March.

    Cook has also made the India-China comparison to investors.

    “We are, in essence, taking what we learned in China years ago and how we scale to China and bringing that to bear,” Cook said on an earnings call earlier this year.

    Nearly all Android

    India is the largest market that the iPhone hasn’t fully cracked, meaning it is critical for sales growth.

    Cook boasted in February that the company was successfully wooing “switchers” in the country. That’s Apple’s word for previous Android phone owners who have decided to buy their first iPhone. Cook said in February that Apple had its best sales quarter ever for iPhones in India in the quarter ending in December.

    Indians who buy iPhones are much more likely to be “switchers” than customers elsewhere because Android dominates the Indian market, led by Samsung and several Chinese brands. Android had over 95% of market share in the country, according to Statcounter.

    The main reason is price. Most phones sold in India are priced below even the least-expensive new Apple iPhone. Industry analyst IDC estimated in February that the average selling price of a smartphone in India is $224, which had increased 18% in 2022. Apple’s entry level phone — the iPhone SE — retails for $429 in the U.S.

    One way for Apple to address this gap is by allowing customers to pay for their phones in installments, or giving them a discount for trading in an older device. Cook mentioned these strategies when he was asked about India in February.

    “There’s been a lot done from financing options and trade-ins to make products more affordable and give people more options to buy,” Cook said.

    The two physical Apple stores opening this week and the online Apple store which launched in the country in 2020 are also expected to boost sales.

    ‘Make in India’

    The second part of the strategy is to build Apple products in the country, a massive project that requires not only Apple’s attention, but also efforts from its manufacturing partners and local and national governments.

    Nearly all iPhones are currently assembled in China, which has caused some problems over the past five years, starting with trade tensions and possible tariffs during the Trump administration, and extending to more recent supply chain disruptions caused by Covid and China’s Covid policies, which led to sales shortfalls.

    India could end up being a big winner as Apple looks for non-Chinese manufacturing options. In January, India’s commerce minister told CNBC that Apple was manufacturing its latest iPhone 14 in the country and had a goal to produce as many as 25% of all iPhones in the country.

    Apple’s primary manufacturing partner, Foxconn, which oversees a large portion of the assembly of new iPhones in China, is expanding in India, too, reportedly building a $700 million plant for iPhone parts in Bangalore.

    In another parallel to China, the Indian government is eager to embrace Apple and use it as a symbol to attract other high tech firms to the country for manufacturing and development. Over the past 20 years, Chinese governments at multiple levels have worked to make massive factories like Foxconn’s Zhengzhou factory — known as “iPhone City” — possible.

    Modi wants to discuss Apple’s plans for manufacturing around the country and creating manufacturing jobs, CNBC’s Seema Mody reported. He also wants to know about the challenges Apple has faced in growing its user base in the country.

    Not so fast

    This isn’t the first time that investors have been excited about Apple’s potential in India, and some analysts warn that it may take a while before it becomes a huge market.

    “I’ve told investors this: All the all the hype you’re hearing about India this week is great,” Zino said. “I mean, it is a massive opportunity in our view, over the next decade, but don’t expect things to change overnight.”

    Apple has also faced challenges in its early experiments manufacturing in the country, most notably at a Wistron factory in Bengalaru assembling older model iPhones, which erupted in a labor riot in late 2020.

    Apple has had its eyes on an India expansion since at least 2016, when Cook previously met Modi.

    At that meeting, Cook told Modi about the potential for manufacturing and retailing Apple goods in the country. Now, six years later, Cook is back in India to open up the company’s first two owned-and-operated retail stores.

    Apple was bullish on India back then, too: “India will be the most populous country in the world in 2022,” Cook told CNBC’s Jim Cramer at the time, saying it had “huge market potential.”

    Apple’s long-term strategy in India is best summarized by a quote Cook gave to local media during his 2016 trip to the subcontinent.

    “We are putting enormous energy in here, and we are not here for a quarter, or two quarters, or the next quarter, or the next year, or the next year, we are here for a thousand years,” Cook said.

    Apple opens first India retail store with Tim Cook on site

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  • The new Steve Jobs book is free to download now — here’s where to get it 

    The new Steve Jobs book is free to download now — here’s where to get it 

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    Apple founder Steve Jobs has continued to inspire even after his death in 2011. Just this week, in fact, Tim Cook — Apple’s AAPL current CEO and chief operating officer for a decade-plus under Jobs — mused in a GQ interview on life lessons imparted by his predecessor. 

    And now anyone who wants to get an intimate glimpse into Jobs’s wisdom and reflections on his life, which was cut short at just 56, can download a curated collection of personal correspondence, speeches and interviews — for free.

    “Make…

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  • In pivot away from China, iPhone supplier to build factory in India: Report

    In pivot away from China, iPhone supplier to build factory in India: Report

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    Source: Thomas Peter | Reuters

    Foxconn, one of Apple’s largest suppliers and a major manufacturer of iPhone components, will invest around $700 million to build a new plant in India’s Karnataka state, Bloomberg reported Friday. The report comes as U.S. companies continue to reevaluate their reliance on China in the wake of mounting tension between the U.S. and the Chinese government.

    Bloomberg, citing people familiar with the matter, said Foxconn will build an iPhone parts plant on a 300-acre site near Bengaluru’s Kempegowda International Airport. Bengaluru, also known as Bangalore, is the capital of Karnataka state, which lies on the southwestern coast of India and has one of the highest per-capita GDP levels of any Indian state.

    Government officials confirmed Bloomberg’s reporting on Friday, writing that the new plant would create 100,000 jobs. The effort will be one of the largest investments by Foxconn in India, Bloomberg reported.

    Bengaluru in particular is considered one of the leading engineering and technology hubs in India.

    Foxconn and technology suppliers more broadly have looked to diversify beyond China, which has been a traditional hub for manufacturing, in the wake of devastating Covid lockdowns and manufacturing slowdowns. Those lockdowns prompted widespread national dissent, and videos of Foxconn employees fleeing the company’s iPhone manufacturing facility spread widely on Western social media.

    India and Vietnam have emerged as top contenders to supplant China’s dominance in the manufacturing and supply space. CNBC has previously reported on comments from Indian government officials which claimed that Apple sought to ramp up production in India to account for 25% of their total output. Foxconn already maintains a presence in India through a Chennai-proximate factory in eastern India.

    Read more at Bloomberg.

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  • First Generation iPhone Sells For $63,0000

    First Generation iPhone Sells For $63,0000

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    A factory-sealed, first-generation iPhone sold at auction for $63,356.40, more than 100 times its original price, after a woman was gifted the phone in 2007, but never opened it because she didn’t want to get rid of her other phone. What do you think?

    “Why? It’s just going to be phased out by the iPhone 2 at auction in a couple years.”

    Gracie Bolufe, Snake Breeder

    “To think that phone is so old that some of the people who assembled it are adults now.”

    Colton Shaw, Holistic Plumber

    “This is why I leave all my electronics, toys, furniture, and food in its original packaging.”

    Bharat Tate, Opinion Aggregator

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  • First-generation iPhone, still in the box, sells for more than $63,000

    First-generation iPhone, still in the box, sells for more than $63,000

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    First generation iPhone going up for auction


    First generation iPhone going up for auction

    00:34

    A first-generation iPhone sold at auction for $63,356.40 – more than 100 times its original price. The 2007 phone, which is still sealed in its box, was sold on LCG Auctions and was expected to go for $50,000, but exceeded that estimate by more than $13,000. 

    The bidding started at $2,500 and after 27 bids, the phone sold on Sunday.

    The original owner of the phone, Karen Green, had it appraised in 2019. Because it was an 8GB — not 4GB — and was still in the original box, it was estimated to be worth $5,000. 

    Green received the iPhone in 2007 as a gift from her friends after landing a new job. But since she had already gotten a new phone, she decided not to open it. “I didn’t want to get rid of my phone, and I figured, ‘It’s an iPhone, so it will never go out of date,’” she said. Her friends likely bought the phone for $499 to $599.

    The 2007 phone, still sealed in its box, was sold on LCG Auctions and was expected to go for $50,000, but exceeded that estimate by more than $13,000. 

    LCG Auctions


    Steve Jobs introduced the first iPhone on Jan. 9, 2007, at MacWorld, a trade show in San Francisco. It became available for purchase about five months later. Its slick design, responsive (and quite innovative at the time) touchscreen, web browsing capabilities and a 2-megapixel camera made it an instant hit.

    First-release iPhones have been auctioned before. One sold for $35,414 in August and another for $39,339 in October through LCG.

    Apple commands a very loyal fan base and collectors consider many of the company’s products cultural artifacts and landmarks in tech history. Last year, an early Apple computer prototype from the 1970s sold for more than $677,000

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  • Retailers in China enact rare price cuts for Apple’s high-end iPhone 14 line

    Retailers in China enact rare price cuts for Apple’s high-end iPhone 14 line

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    Retailers in China including JD.com and Suning have cut the price of Apple’s iPhone 14 Pro and Pro Max. It comes after China’s smartphone market had its worst year in a decade.

    CFOTO | Future Publishing | Getty Images

    Major retailers in China slashed the price of Apple’s high-end iPhone 14 models amid a slump in smartphone demand in the world’s second-largest economy.

    E-commerce site JD.com, an authorized Apple distributor, is selling the basic version of the iPhone 14 Pro for 7,199 Chinese yuan ($1,062) after an 800 yuan promotion. The basic iPhone 14 Pro Max is listed for 8,199 yuan after an 800 yuan reduction.

    Suning, another major retailer, is selling the basic model of the iPhone 14 Pro for 7,199 after discounts and the iPhone 14 Pro Ma for 8,199.

    Apple’s official China website has not changed prices. The iPhone 14 Pro starts at 7,999 yuan and the Pro Max starts at 8,999.

    Apple tightly controls the price of its products in China and very rarely lets third-party retailers offer such steep discounts. Apple previously allowed retailers to slash prices in June 2020, after China was re-opening its economy following tough lockdowns across the country to battle the initial Covid outbreak.

    But the price cuts come after a major slump in China’s smartphone market last year. Smartphone shipments hit 285.8 million in 2022, down 13.2% year-on-year to below the 300 million mark for the first time in ten years, according to IDC. Apple iPhone shipments fell more than 4% year-on-year in China in 2022, IDC said.

    Apple also reported overall sales for the December quarter were about 5% lower than last year’s, the first year-over-year sales decline since 2019.

    The company faced major disruptions at its plant in Zhengzhou, China, the world’s biggest iPhone factory which is run by Foxconn. The factory was hit by a Covid outbreak and workers protested over a delay in bonus payments.

    However, on the company’s earnings call last week, management suggested that Apple’s performance is improving in the current quarter.

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  • The biggest risks in procrastinating on iPhone, Android software updates

    The biggest risks in procrastinating on iPhone, Android software updates

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    That screen-blocking software update notification that keeps coming back may be annoying to a phone user, but ignoring it for too long is a mistake.

    Many consumers opt to not have phones set to automatic update. Once the day begins, these notifications can pop up at inconvenient and distracted times — while you’re rushing to make a call or send an email or text — but smartphone software updates are primarily designed for your benefit.

    Companies including Apple and Samsung, as well as Alphabet‘s Google which makes the Android OS, are constantly working on security and user experience features in annual updates and more periodic updates to fix newly discovered bugs.

    Apple’s current operating system iOS 16 launched this past September, and it boasts many new features: the ability to edit and unsend messages; set multiple lock screens and set Focus filters to limit who you receive notifications from; privacy and security updates like Safety Check so victims of domestic or intimate partner violence can reset access that they’ve granted to others; and Lockdown Mode, a method of extreme protection against cyberattacks.

    Samsung’s Android 13 One UI 5.0 lets users customize their lock screen, create stickers from any photo and open apps in split screen, along with security updates like warnings when sharing personal information, and a security dashboard in settings to check for and fix security issues.

    Not all software updates offer an array of new features, but when they do it can feel like you are getting a new phone without added cost. Yet, many users still do whatever they can to put off the 30 minutes that a software update can take.

    Where human procrastination meets technology

    It’s a phenomenon that’s been studied by researchers and termed “adoption procrastination.”

    Researchers at the University of Tennessee and University of Munich identify this “deliberate delay” as a coping strategy that digital product users implement to counteract the negative emotions that arise when software updates are released. Discomfort often stems from the perception that software updates will require users to relearn how to use certain features on their device and threatens their current habits. Annoyance is a factor, too, and the assumption that current functionality of their phone is optimal, so a software update would only disrupt their devices’ usability.

    But there is also more basic human psychology.

    “I think some of it is just the nature, ‘I’ll get around to it, when I get around to it,’” said Dr. Richard Forno, University of Maryland Baltimore County’s director of the Cybersecurity Graduate Program and assistant director of the school’s Center for Cybersecurity.

    He recommends setting up a phone to automatically download and install the updates overnight when you’re sleeping (as long as Airplane mode is not set). “That’s a feature that a lot of people could and should enable, so they don’t have to worry about it,” Forno said.

    Apple, Google update options

    Apple allows users to decide whether they want their phone to automatically download and install the newest iOS update, or if they prefer to manually update it. Android users can choose between three local system update policies, including automatic, windowed and postponed updates — all of these policies eventually result in a device automatically updating. The automatic system policy installs as soon as a new update becomes available; the windowed system policy installs updates during a daily maintenance window that the user gets to choose; the postponed option delays installing an update for 30 days. When 30 days have passed, the system then prompts the user to install the system update.

    While it’s offered, cybersecurity experts don’t recommend waiting 30 days. “For the normal user, within a few days to a week is likely fine,” said Justin Cappos, associate professor of Computer Science and Engineering at New York University Tandon School of Engineering and a member of New York University’s Center for Cybersecurity. There are certain users who are at a greater risk if they choose to put off or ignore these notifications. “If you are a dissident who is possibly being targeted by a nation-state actor, you should update right away,” he said.

    When a major security update comes out, everyone should act relatively fast.

    Hackers will target the flaws you don’t update

    Big annual OS updates may have the flashier and more reported on new features, but security protection is a major reason why users should download all new software updates available for their phone. Smaller, incremental updates, are released primarily to fix bugs and ensure users greater protection. It’s as simple as knowing that Apple or Samsung, or any other phone maker, is indicating that your current operating system is not the safest anymore, and it is sending that message out into the world. That’s not just good for you, but for hackers looking to exploit users who don’t get the message.

    “You’re leaving yourself vulnerable to attacks. Once a vulnerability has been announced and a patch has been released, attackers quickly grab that information and create exploits for those specific vulnerabilities,” said Kathleen Moriarty, chief technology officer at the Center for Internet Security.

    Without the latest security patches, every piece of information on your phone is open to attack, from social media accounts to banking information to text messages.

    “If you reuse passwords in different places, and they’re able to capture a password that is stored on your phone, they might be able to gain access to other applications,” Moriarty said.

    Hackers using AI chat tools to automate malware development

    Reuse of passwords across accounts is bad cybersecurity practice to begin with and can become even worse when the personal phone security lapse is used to gain access to an employer’s network.

    “Hopefully, you’re not using those across boundaries because this is one area of attack that has been used where, let’s say an administrator for an organization is targeted specifically through their personal accounts and that personal account access is used to gain corporate access,” Moriarty said.

    If malware gets through an outdated OS, tricking you to click on a link or download something, it can gain access to your personal information, cause your battery to drain faster and reduce overall performance.

    Performance fears overstated, patches better and quicker

    Years ago, software updates were much larger and infrequent, which made these updates themselves more susceptible to hacking issues and bugs. For example, Apple found a major operating flaw after its 2017 release of MacOS High Sierra that enabled anyone to enter your computer without needing a password.

    However, as Apple and Samsung have shifted toward releasing smaller software updates and patches more frequently, it minimizes the impact on devices and improves testing.  

    “I have a higher trust level because of the newer processes in place. There are far fewer problems that happen with software updates now than five or 10 years ago,” Moriarty said.

    Companies also have developed software updates that can occur behind the scenes on a phone without a user having to download them. In Apple’s release of iOS 16.2, the operating system is now able to push out security updates between the incremental updates with a new feature called “Rapid Security Response.”

    Back in 2019, Google’s Project Mainline was introduced in Android 10 and implemented this process of mobile updating without requiring user involvement or a system reboot. While this system can’t do an entire software update in the background through Google Play, it can install critical operating system patches without having to wait on the user or phone maker.

    “They can push out security updates pretty much as they need to without requiring the phone to be rebooted and disrupt a person’s life, which is a good thing, because it’s transparent to the end user, but they’re getting the updates they need. So that’s a win for security,” Forno said.

    Nowadays, there’s less reason to be worried when it comes to software updates, but the internet is also a good tool to quickly see how any recent update is working for other users. From social media platforms like Instagram and Twitter to tech news sites like The Verge, users can receive quick feedback on the latest software fixes.

    “Because of the social media availability, you will know if there are big problems being caused that were unexpected or not predicted with a particular update. So, you could wait a little bit or decide not to be first, especially [for] a large update. But I don’t think the timeline is that long anymore. Due to things like Reddit forums and Twitter and other places where you have easy access to immediate feedback,” Moriarty said.

    Smartphone battery issues

    Some users avoid software updates out of fear that it will decrease their battery life or slow down the phone itself, and while this can happen after downloading a major software update, these issues are temporary.

    “Your phone is going to burn through battery as it installs the update, runs all of its verifications and its checks, and then does a bunch of re-indexing. So, it would not surprise me if for a day or two, after you download an update, your phone battery life might be a little bit less because it’s working more,” Forno said.

    However, there have been occasions where Apple’s iOS updates have caused poor battery life for an extended amount of time beyond the initial installment duration. For instance, the release of iOS and iPadOS 15.4 caused a large number of customers to report battery issues lasting for weeks after the updates’ release, which resulted in Apple’s quick release of iOS and iPadOS 15.4.1 to combat this bug.

    A phone’s storage is also impacted when you install a security update. Depending on the size of the software update, how old your phone is and what operating system it is currently using, storage can be an issue.

    “I think the average user needs to ensure their devices are updated regularly. … I don’t think they have to worry about checking for updates every day,” Forno said.

    Age of iPhone, Android model matters

    Software updates don’t guarantee that a phone will always be secure. As newer generations of iPhones and Androids are released, Apple and Samsung gradually phase out older devices, and OS support. For example, iOS 16 is supported on every iPhone released since the iPhone 8. Samsung now guarantees customers at least four years of major Android updates and as much as five years of security updates.

    Hardware updates, including new chips and security features, come out on a regular basis, too.

    “Updating to a new model of your phone every year to every few years can help you stay ahead of the security curve,” Cappos said.

    Apple’s release of the iPhone 14 series included the A16 Bionic chip on Pro models, emergency satellite call technology, and better hardware security through the switch to eSIM-only cards. The next big release is the Samsung Galaxy S23 this month, which includes Samsung’s latest tweak to Android 13, One UI 5.1. Users should review the phone’s hardware, software and UI features, and owners of existing Samsung phone models will want to be on the lookout for an announcement about One UI 5.1 being made more broadly available.

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  • Tech stocks just finished a five-week rally — the longest stretch since market peak in November 2021

    Tech stocks just finished a five-week rally — the longest stretch since market peak in November 2021

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    Tech stocks on display at the Nasdaq.

    Peter Kramer | CNBC

    The Nasdaq just wrapped up its fifth straight week of gains, jumping 3.3% over the last five days. It’s the longest weekly winning streak for the tech-laden index since a stretch that ended in November 2021. Coming off its worst year since 2008, the Nasdaq is up 15% to start 2023.

    The last time tech stocks enjoyed a rally this long, investors were gearing up for electric carmaker Rivian’s blockbuster IPO, the U.S. economy was closing out its strongest year for growth since 1984, and the Nasdaq was trading at a record.

    This time around, there’s far less champagne popping. Cost cuts have replaced growth on Wall Street’s checklist, and tech executives are being celebrated for efficiency over innovation. The IPO market is dead. Layoffs are abundant.

    Earnings reports were the story of the week, with results landing from many of the world’s most valuable tech companies. But the numbers, for the most part, weren’t good.

    Apple missed estimates for the first time since 2016, Facebook parent Meta recorded a third straight quarter of declining revenue, Google‘s core advertising business shrank, and Amazon closed out its weakest year for growth in its 25-year history as a public company.

    While investors had mixed reactions to the individual reports, all four stocks closed the week with solid gains, as did Microsoft, which reported earnings the prior week and issued lackluster guidance in projecting revenue growth this quarter of only about 3%.

    Cost control is king

    Meta was the top performer among the group this week, with the stock soaring 23%, its third-best week ever. In its earnings report Wednesday, revenue came in slightly above estimates, even with sales down year over year, and the first-quarter forecast was roughly in line with expectations.

    The key to the rally was CEO Mark Zuckerberg’s pronouncement in the earnings statement that 2023 would be the “Year of Efficiency” and his promise that “we’re focused on becoming a stronger and more nimble organization.”

    “That was really the game-changer,” Stephanie Link, chief investment strategist at Hightower Advisors, said in an interview Friday with CNBC’s “Squawk Box.”

    “The quarter itself was OK, but it was the cost-cutting that they finally got religion on, and that’s why I think Meta really took off,” she said.

    Zuckerberg acknowledged that the times are changing. From the year of its IPO in 2012 through 2021, the company grew between 22% and 58% a year. But in 2022 revenue fell 1%, and analysts expect growth of only 5% in 2023, according to Refinitiv.

    On the earnings call, Zuckerberg said he doesn’t expect declines to continue, “but I also don’t think it’s going to go back to the way it was before.” Meta announced in November the elimination of 11,000 jobs, or 13% of its workforce.

    Link said the reason Meta’s stock got such a big bounce after earnings was because “expectations were so low and the valuation was so compelling.” The stock lost almost two-thirds of its value last year, far more than its mega-cap peers.

    Navigating ‘a very difficult environment’

    Apple, which slid 27% last year, gained 6.2% this week despite reporting its steepest drop in revenue in seven years. CEO Tim Cook said results were hurt by a strong dollar, production issues in China affecting the iPhone 14 Pro and iPhone 14 Pro Max, and the overall macroeconomic environment. 

    “Apple is navigating what is, of course, a very difficult environment quite well overall,” Dan Flax, an analyst at Neuberger Berman, told “Squawk Box” on Friday. “As we move through the coming months and quarters, we’ll see a return to growth and the market will begin to discount that. We continue to like the name even in the face of these macro challenges.”

    Watch CNBC's full interview with Neuberger Berman's Dan Flax

    Amazon CEO Andy Jassy, who succeeded Jeff Bezos in mid-2021, took the unusual step of joining the earnings call with analysts Thursday after his company issued a weaker-than-expected forecast for the first quarter. In January, Amazon began layoffs, which are expected to result in the loss of more than 18,000 jobs.

    “Given this last quarter was the end of my first full year in this role and given some of the unusual parts in the economy and our business, I thought this might be a good one to join,” Jassy said on the call.

    Managing expenses has become a big theme for Amazon, which expanded rapidly during the pandemic and subsequently admitted that it hired too many people during that period.

    “We’re working really hard to streamline our costs,” Jassy said.

    Alphabet is also in downsizing mode. The company announced last month that it’s slashing 12,000 jobs. Its revenue miss for the fourth quarter included disappointing sales at YouTube from a pullback in ad spending and weakness in the cloud division as businesses tighten their belts.

    Ruth Porat, Alphabet’s finance chief, told CNBC’s Deirdre Bosa that the company is meaningfully slowing the pace of hiring in an effort to deliver long-term profitable growth.

    Alphabet shares ended the week up 5.4% even after giving up some of their gains during Friday’s sell-off. The stock is now up 19% for the year.

    Ruth Porat, Alphabet CFO, at the WEF in Davos, Switzerland on May 23rd, 2022. 

    Adam Galica | CNBC

    Should the Nasdaq continue its upward trend and notch a sixth week of gains, it would match the longest rally since a stretch that ended in January 2020, just before the Covid pandemic hit the U.S.

    Investors will now turn to earnings reports from smaller companies. Some of the names they’ll hear from next week include Pinterest, Robinhood, Affirm and Cloudflare.

    Another area in tech that flourished this week was the semiconductor space. Similar to the consumer tech companies, there wasn’t much by way of growth to excite Wall Street.

    AMD on Tuesday beat on sales and profit but guided analysts to a 10% year-over-year decline in revenue for the current quarter. Intel, AMD’s primary competitor, reported a disastrous quarter last week and projected a 40% decline in sales in the March quarter.

    Still, AMD jumped 14% for the week and Intel rose almost 8%. Texas Instruments and Nvidia also notched nice gains.

    The semiconductor industry is dealing with a glut of extra parts at PC and server makers and falling prices for components such as memory and central processors. But after a miserable year in 2022, the stocks are rebounding on signs that an easing of Federal Reserve rate increases and lightening inflation numbers will give the companies a boost later this year.

    WATCH: Watch CNBC’s full interview with Truist’s Youssef Squali

    Watch CNBC's full interview with Truist Securities' Youssef Squali

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  • A first-generation iPhone is expected to go for $50,000 at auction

    A first-generation iPhone is expected to go for $50,000 at auction

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    A first-generation iPhone is up for auction and is expected to sell for a whopping $50,000. The 2007 phone, which is still sealed in its box, is being sold on LCG Auctions.

    The owner of the phone, Karen Green, had it appraised on the talk show “The Doctor & The Diva” in 2019. Because it is an 8GB — not 4GB — and is still in its original packaging, the appraiser said it was worth $5,000. 

    “In 2007, I got a new job and my friends bought me the latest, newest first generation iPhone,” Green said. “It had all these neat things on there to do a new job, like a calendar.”

    She said she didn’t open the box because she had just gotten a new phone. “I didn’t want to get rid of my phone, and I figured, ‘It’s an iPhone, so it will never go out of date.’” 

    Little did she know, several new iterations of the iPhone would be released year after year. Now, Apple is selling the iPhone 14.

    Her friends likely bought the phone for $499 to $599. LCG Auctions set the starting bid price for the unopened phone at $2,500. It has received two bids so far and the auction will be open until Feb. 19. LCG Auctions expects it will reach $50,000.

    Apple founder Steve Jobs introduced the first of its kind phone on Jan. 9, 2007 at MacWorld, a trade show in San Francisco. It was available for purchase about five months later and quickly became Apple’s most successful product, according to LCG. It has a touch screen — innovative for phones that time — a 2-megapixel camera and web browsing.

    First-release iPhones have been auctioned off before. 

    One sold for $35,414 in August and another for $39,339 in October through LCG. 

    “There’s little doubt that interest in culturally relevant collectibles is rapidly increasing, and despite the impressive sales numbers, many believe the space is still in its infancy,” LCG says. 

    Apple has a strong following of loyal fans — some of whom want to own a piece of Apple history. Last year, an Apple-1 Computer prototype from the mid-1970s sold at auction for more than $677,000. And it’s not just electronics Apple devotees are after — Steve Jobs’ worn Birkenstock sandals sold at auction for $218,750 in December. 

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  • A First Generation Apple iPhone Is Set to Sell for $50,000

    A First Generation Apple iPhone Is Set to Sell for $50,000

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    Apple enthusiasts have the chance to own an original 2007 first-generation iPhone – if they are willing to pay the price.

    One of the first iPhones to ever be created hit the auction floor today with the bidding starting at $2,500.

    RELATED: ‘What a Shame’: A Generation Mourns as Apple Announces It Will Discontinue Beloved Device

    The original 2007 factory iPhone, which is sealed and unopened in its original packaging, is expected to go for an impressive $50,000 or more, according to LCG Auctions where the item is listed for sale.

    At the time it was first produced, the iPhone featured 4 or 8 GB of storage, with a 3.5-inch screen and a 2-megapixel camera. The original phone didn’t first include an app store and was only available exclusively with AT&T on a 2G network, per CNN. It was named 2007’s Invention of the Year by Time Magazine.

    The particular iPhone up for grabs is being consigned by its owner, Karen Green, who was gifted the Apple product when it was first released. In a 2019 appearance on “The Doctor & The Diva,” the proud owner said she was gifted the phone but never opened the package as she was happy with her current device. She said she held onto it hoping it would come in handy one day. On the air, her 8 GB phone was appraised at $5,000 by Ph.D. Antiques Appraiser Dr. Lori.

    The value of first-edition packaged iPhones has increased over the years as collectors view them as blue-chip assets. Notably, the last original iPhone of such nature to go up for sale sold for $39,339.60 in October 2022.

    Bidders have until February 19 to claim the coveted collectible.

    RELATED: How Much Do Engineers, Software Developers, and Analysts Make at Apple? See Salary List

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  • Apple’s expected to post its first revenue decline since 2019 on Thursday

    Apple’s expected to post its first revenue decline since 2019 on Thursday

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    Apple CEO Tim Cook speaks at an Apple special event at Apple Park in Cupertino, California on September 7, 2022. – Apple is expected to unveil the new iPhone 14. (Photo by Brittany Hosea-Small / AFP) (Photo by BRITTANY HOSEA-SMALL/AFP via Getty Images)

    Brittany Hosea-small | Afp | Getty Images

    Analysts expect Apple to post its first year-over-year revenue decline since 2019’s March quarter when it reports earnings on Thursday. There are a few contributing factors.

    The company couldn’t build enough of its high-end iPhones when its primary assembly facility in China was shut down for weeks during Covid lockdowns. Customers in many regions noticed as early as November that Apple couldn’t promise Christmas delivery of a new iPhone.

    Apple gave a rare warning to investors that month explaining that production issues would result in lower shipments than “previously expected.” It was a data point that caused many analysts watching the stock to cut their estimates.

    “We believe the peak impact of the disruptions was felt in early to mid November as wait times hit an extreme level (link) as the wait time in the US for the 14 Pro and 14 Pro Max reached 34 days while wait time in China at the high-end hit 36 days,” UBS analyst David Vogt wrote in January.

    Analysts polled by Refinitiv expect Apple to report just over $121 billion in revenue in the December quarter, which would be a slight decline from the company’s $123.9 billion from a year ago.

    But the problems aren’t Apple-specific. The PC and smartphone markets are slumping as consumers and businesses digest sales from the pandemic and cut costs to prepare for a possible recession.

    The smartphone market saw an 18% decline in shipments in the fourth quarter, according to IDC, the worst decline ever recorded by the market research firm. The PC market fell 28% in the fourth quarter, according to the company. But many investors believe that Apple is outperforming its competitors even in a contracting market.

    “While the state of consumer demand remains a near-term concern, we believe the underlying drivers of Apple’s model – a growing installed base and spend per user – remain intact, and that the strength/stability of Apple’s ecosystem remains undervalued,” Morgan Stanley analyst Erik Woodring wrote in a note earlier this month.

    Here’s what Wall Street is expecting, according to Refinitiv consensus estimates:

    • Revenue: $121.19 billion
    • Earnings per share: $1.94 per share
    • iPhone revenue: $68.29 billion
    • iPad revenue: $7.76 billion
    • Mac revenue: $9.63 billion
    • Other products revenue: $15.26 billion
    • Services revenue: $20.67 billion

    Apple’s March quarter guidance

    Apple hasn’t given guidance since 2020, citing uncertainty first caused by the pandemic. However, Apple usually provides a few data points that can give analysts a sense of how it’s doing.

    Investors want to know whether the shortage of iPhone 14 Pro models in the December quarter will drive demand in the March quarter now that supply has improved.

    Analysts expect just over $98 billion in sales in the March quarter, according to consensus estimates, signifying slight year-over-year growth.

    “While we believe it’s well understood that Apple’s March quarter revenue should decline at a less-than-seasonal rate due to the pushout of iPhone demand from the December quarter to the March quarter,” Morgan Stanley’s Woodring wrote in a note last week, “the consumer electronics spending backdrop remains challenging, with tablets, PCs and more discretionary products (i.e. wearables) all facing continued demand headwinds.”

    But if consumer confidence erodes in the face of higher interest rates and shrinking savings around the world, then Apple could suggest to investors that the company’s March quarter will be slow.

    “While we don’t expect the resumption of detailed guidance typical of Apple earnings prior to Covid, we expect the commentary to be cautious regarding Product demand across the board,” UBS’s Vogt wrote.

    If management commentary is soft, investors looking for a silver lining might want to look at Apple’s services business, which is profitable and has been growing strongly for years. However, several data points in the fourth quarter including Apple’s own App Store payouts suggest a significant slowdown in App Store growth, although analysts are split on its severity.

    The App Store is one of the largest components of Services, but it’s only a part of the business, which includes online subscriptions, warranties and search licensing fees. Apple shares could push higher if services such as Apple TV+ and Apple Music look like they’re generating a higher percentage of Apple’s revenue, D.A. Davidson analyst Tom Forte wrote in January.

    Services are expected to total $20.67 billion in the December quarter, according to Refinitiv estimates, representing a 5.9% growth rate.

    Analysts will also watch to see if the strong dollar continues to hurt Apple, given that so much of its sales are overseas. During the December quarter, the British pound, the Canadian dollar and the Japanese yen all weakened compared to the dollar. Apple management previously said the strong dollar would be a 10 percentage point drag on sales growth.

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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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