Tag: Smartphones

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.

Source link

April 12, 2021
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.

Source link

April 12, 2021
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.

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.”

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.

Source link

April 12, 2021
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.

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.”

Source link

April 12, 2021