The year-over-year downturn in Mac sales was the second straight down quarter, and excepting a brutal 22% drop at the end of 2012, the largest since Apple introduced the iPhone in 2007.
Analysts at IDC and Gartner earlier this month pegged the continued contraction of the PC industry at 11.5% and 9.6%, respectively. Both also missed the actual Mac number for the quarter in their forecasts for Apple, overestimating by 11% to 13%: IDC had tapped shipments at 4.5 million, while Gartner said it was 4.6 million.
Apple had been on an extended streak of besting the PC average, with sometimes-impressive gains during the four-years-and-counting slump of the overall market. But the March quarter’s results put an end to the years-long run, which the Cupertino, Calif. company often touted.
Neither CEO Tim Cook or CFO Luca Maestri mentioned the end of the streak in Tuesday’s earnings call with Wall Street.
“It was a challenging quarter for personal computer sales across the industry,” said Maestri, stating the obvious.
Cook said that Mac sales “met our sell-in expectations” and added that he remained optimistic about Apple’s computer business, a sentiment a CEO is duty-bound to share. “We’re confident in our Mac business and our ability to continue to innovate and gain share in that area,” Cook said.
But Mac-generated revenue for the quarter was $5.1 billion, 9% lower than the same period in 2015, and the smallest amount recorded for the line in almost three years.
Macs accounted for 10.1% of Apple’s total revenue of $50.1 billion, but the computer group slipped to No. 3 on the company’s list, behind — by a country mile — the iPhone (accounting for 65% of all revenue) and, for the first time, the relatively new Services category, which contributed 11.8% of all incoming dollars.
The Gear 360 will initially be available only in South Korea and Singapore, a company representative said. A U.S. shipping date hasn’t been announced. In Korea, it will cost 399,000 won (US$347).
The camera, a bit larger than a golf ball, is Samsung’s bid to get consumers involved in creating virtual-reality content instead of just consuming it.
“We think 2016 is shaping up to be the year of VR,” said Andrew Dickerson, director of software engineering for Samsung VR, in a keynote presentation at the Samsung Developer Conference in San Francisco.
The camera will have two 180-degree fisheye lenses back to back and will stitch together the video from each for a 360-degree view. With a total of 30 megapixels of resolution, it will provide 4K video quality. Samsung’s Galaxy S7 and S7 Edge smartphones will link directly to the Gear 360 to act as live viewfinders.
VR is a key part of Samsung’s combined hardware, software and services strategy. The Gear 360 will join the Gear VR viewer and the recently announced Milk VR service for authoring and sharing content as part of the company’s plan to expand in this area.
In the next few years, Samsung expects to deliver a “holodeck” experience, said Injong Rhee, executive vice president and head of R&D for software and services. He was referring to the virtual environment used on the TV series “Star Trek: The Next Generation.”
That experience will be truly immersive and allow users to roam around a physical space. It will make use of capabilities like gesture tracking to allow users to feel they are touching virtual objects, he said. To do this, the company is working to overcome problems including poor image quality, insufficient computing power, the heavy weight and restricted mobility of VR headsets, and the dizziness some users experience, Rhee said.
Intel has called for the standard 3.5mm headphone jack to be dropped in favor of connections like USB-C.
Intel does not think there is much wrong with the 3.5mm audio jack, but apparently there are more advantages to a digital connection. USB-C would allow would mean higher quality and “cleaner” audio, apparently. USB-C could also allow for headphones to track health data like your body temperature and tell the doctors if your ears are bleeding.
At present, Intel is finalizing the USB Type-C Digital Audio technology and plans to release its specification later in Q2. The company does not reveal a lot about the standard right now, but notes that it is working on updating the USB Audio Device Class 2.0 specifications to support new connector, expand the list of recent audio specifications and features, improve power management and simplify the discovery and configuration model to make the upcoming headsets as easy to use as today’s headsets.
Intel calls like this can be taken with a grain of salt. OEMs are the people who decide this sort of thing, but with Intel’s support maybe more companies might consider it. However digital is not all it is cracked up to be. In the audio world there is a new trend back to old style vinyl and tube amps are still a thing.
At the moment there is no actual music being produced and those who can actually write good music are dying off, so it probably does not matter what headphone socket you have – there is going to be nothing worth listening to in a few years.
Nintendo has confirmed that its next-gen console, the Nintendo NX, will launch in March 2017.
Causing many to screw up their Christmas lists, the company told shareholders during its earnings call on Tuesday: “For our dedicated video game platform business, Nintendo is currently developing a gaming platform codenamed ‘NX’ with a brand-new concept. NX will be launched in March 2017 globally.”
Probably also causing some to cancel a trip to Los Angeles, Nintendo said that the NX will not be demonstrated at the upcoming E3 video games conference in June, despite speculation that Sony plans to show off its so-called PlayStation 4.5 console.
Nintendo’s keynote at the games show will focus instead on the next Legend of Zelda game, which will launch simultaneously on the Wii U and Nintendo NX in 2017. Rumour has it that Smash Bros 4, Splatoon and Super Mario Maker are all set to receive an NX makeover too.
A launch is now less than a year away, but we still don’t know much about the Nintendo NX, which Nintendo confirmed this week is just a codename for the incoming console. However, rumour claims that it will arrive as a hybrid between a home console and a mobile games console to sit alongside the New Nintendo 3DS.
Nintendo president and CEO Tatsumi Kimishima reiterated in December last year that the company is “not building the next version of Wii or Wii U” and that the device will be something “unique and different”.
News of the Nintendo NX’s launch date no doubt came as the firm looked to play down the fact that its profits fell 61 per cent year over year. Worked, didn’t it?
Twitter Inc disappointed investors once again with first-quarter results that revealed stagnant revenue growth as the microblogging service struggles to grab new users amid efforts to improve its complicated interface with several new features.
Twitter’s user base grew modestly to 310 million monthly active users in the quarter ended March 31 from 305 million in the fourth quarter, above analysts’ expectations. But investors were let down by the revenue miss since outlining a turnaround plan.
“It’s obvious Twitter is having trouble,” said Arvind Bhatia, analyst with CRT Capital. “It’s not growing anywhere close to where people expected a while back.”
On a call with analysts, executives said advertisers, especially in Europe, held back spending ahead of major events, including the Olympics and the European Champions League. They also said users were spending more time watching and sharing video, but that advertisers’ budgets had not yet shifted from legacy advertising products such as promoted tweets.
Chief Financial Officer Anthony Noto said Twitter’s long-term goal was to have “millions of advertisers like our competitors.” Facebook Inc has more than 3 million advertisers.
Twitter has struggled with stagnant user growth as its complex interface makes it less attractive to new users.
As part of its turnaround plan, the company has emphasized its live offerings, including live commentary and video streaming through its Periscope app, to attract new users. But it faces fierce competition from Facebook Inc which has recently ramped up its live video product, Facebook Live.
Chief Executive Jack Dorsey said that talent recruitment was a top priority for the year, especially on the engineering and product teams. Twitter lost several top executives earlier this year and has since added two new board members and a new chief marketing officer.
The company forecast revenue of $590 million to $610 million for the second quarter. Analysts on average were expecting $677.57 million, according to Thomson Reuters I/B/E/S.
First-quarter revenue rose 36 percent from a year earlier to $594.5 million, but widely missed the average analyst estimate of $607.8 million.
The company announced the first technical preview of Skype for Business for Mac on Tuesday, giving users of Apple computers an easy way to connect to meetings they have scheduled through Microsoft’s professional audio and videoconferencing software.
When users sign into the app, they’ll see their Skype for Business meetings for the current day and the following one, and will be able to easily join in with the other people invited.
Skype for Business is the successor to the company’s venerable Lync product, which is still available for Mac during this transition.
The final release of the Mac version of Skype for Business is slated for the third quarter. Between now and then, Microsoft has two additional beta phases planned for the app. The second beta phase will include instant messaging, presence indicators and access to a user’s contacts.
In the third beta phase, Microsoft will bring along support for telephony and other advanced features supported by other versions of the product. That’s important for businesses that have paid for advanced Skype for Business features like the ability to place phone calls from the application over a traditional phone line.
This beta push is part of Microsoft’s ongoing strategy to extend the reach of its products to a wide variety of platforms, including the Mac.
After experiencing its first-ever drop in iPhone sales, Apple Inc sought to reassure investors by saying its latest and cheapest model was in strong demand after being launched in late March. Some retailers and suppliers in Asia aren’t so sure.
In a Reuters survey of 10 retailers in Hong Kong, Beijing, Shanghai and Shenzhen, seven – including four Apple Stores – reported solid early demand, but three third-party retailers said sales were weak. Two suppliers of components for Apple phones, including the new iPhone SE, said they were seeing lower orders.
“I’ve been dealing with iPhones for five to six years now. This current quarter for Apple feels weak,” said an executive at a Taiwan-based company whose components are used in iPhones including the SE model, which markets for $399. “Our current shipment situation for Apple is not like the last two years. There are more iPhone models, but the total volume of iPhones is falling.”
Such a mixed outlook from Greater China, its most important market after the United States and generator of a quarter of the company’s revenue, could be a major cause of concern for Apple.
The company’s revenue from the region, which includes Hong Kong and Taiwan, dropped 26 percent in the March quarter, making it the weakest region in the world.
“iPhone is still popular but sales have dropped because… there’s no new model and the SE is similar to 5C. So it doesn’t sell well,” said Zhu You Peng, a salesman at Apple product reseller Xiongyu in Shenzhen. The 5C was Apple’s last attempt to produce a cheaper phone, back in 2013.
Zhu said it sold around 300 iPhones per month last year but the number has dropped to around 100-200 this year.
That view contrasts with upbeat comments about the phone from Apple’s Chief Financial Officer Luca Maestri on Tuesday.
“The situation right now around the world is that we are supply-constrained,” he told Reuters, referring to the iPhone SE. “The demand has been very, very strong.”
The iPhone SEs are sold out in Apple’s own stores in mainland China and customers have to wait about three weeks to get the product delivered by Apple, according to Apple’s websites. The size of the original supplies to the stores is unclear.
NASA’s Jet Propulsion Laboratory (JPL) has built a new private cloud based on Red Hat’s build of the OpenStack framework to fulfill the growing computing requirements of its space missions, such as the Mars rovers.
The move was announced to coincide with the OpenStack Summit, and means that NASA’s JPL has access to enterprise-scale computing resources that will enable researchers to tap into their own private cloud and maximise the organisation’s server and storage capacity to process flight projects and research data.
The new cloud has been built by JPL’s own engineers, but Red Hat said that its experience from long-term participation in the OpenStack Foundation and key upstream contributions to specific platform projects made it well suited as the partner for this collaboration.
The move is not NASA’s first involvement with OpenStack. In fact, the entire OpenStack project grew out of a collaboration between the space agency and hosting firm Rackspace to develop an open source cloud computing platform to help drive the administration’s next generation of projects.
Red Hat said that by using its Red Hat OpenStack Platform to build their private cloud, the JPL’s engineers managed to save significant time and resources by retooling and consolidating in-house hardware rather than procuring entirely new infrastructure.
“This is a testament to the reliability, availability and scalability offered by a fully open cloud infrastructure built on Red Hat OpenStack Platform. We are proud of the partnership with NASA JPL to meet their needs for an agile infrastructure to meet their projected growth, while helping to reduce the data centre footprint,” said Radhesh Balakrishnan, Red Hat’s general manager for OpenStack.
Red Hat recently released the latest version of its platform, Red Hat OpenStack Platform 8, as well as the Red Hat Cloud Suite which combines its OpenStack build with the OpenShift Enterprise platform-as-a-service layer for running container-based applications and services.
The give-away will run until May 1, or while supplies last, Microsoft said on its e-store.
Last week, Microsoft told Wall Street that sales of its Lumia devices — virtually the only smartphones powered by Windows 10 Mobile — plummeted 73% in the March quarter compared to the year before, falling from 8.8 million in 2015 to 2.3 million in 2016. Revenue from its phone division fell 47%, to $662 million, in the first three months of this year.
More to the point of the two-for-one sale, on Thursday, Microsoft’s chief financial officer, Amy Hood, said, “Sell-through of our Lumia products was weak, and we exited the quarter with relatively high channel inventory.” Simply put, poor sales left more than the expected number of devices in stores and warehouses.
The buy-one-get-one-free deal may be Microsoft’s way of flushing out the current overstock.
Buyers in the U.S., Canada and Puerto Rico will receive a $549 unlocked Lumia 950 when they purchase an unlocked Lumia 950 XL. The latter is Microsoft’s top-of-the-line Windows 10 Mobile smartphone, which went on sale in November 2015.
The offer is limited to two Lumia pairs per customer.
Microsoft’s smartphone business continued to drag down the Redmond, Wash. firm’s overall revenue outlook. While Hood did not pin a dollar amount to Lumia’s impact on the June quarter, Microsoft’s final in its 2016 fiscal year, she acknowledged that, “We expect year-over-year revenue declines to steepen in Q4 as we work through our Lumia channel position.”
The coalition, which also includes Uber Technologies Inc and Lyft, is “to work with lawmakers, regulators, and the public to realize the safety and societal benefits of self-driving vehicles.”
The group said David Strickland, the former top official of the U.S. National Highway Traffic Safety Administration, will serve as the coalition’s counsel and spokesperson.
“The best path for this innovation is to have one clear set of federal standards, and the coalition will work with policymakers to find the right solutions that will facilitate the deployment of self-driving vehicles,” Strickland said in a statement.
Sweden-based Volvo Cars is owned by China’s Zhejiang Geely Holding Group Co.
Qualcomm has buried the hatchet with LG after the smartphone vendor agreed to pay more for its chips.
LG said the dispute with Qualcomm has been completely settled, although it did not say how much it had agreed to pay. Earlier it had claimed Qualcomm had overcharged for the chips under a licensing contract.
The news about the lawsuit settlement emerged following Qualcomm’s profit forecast for the second quarter in January, which was below what Wall Street’s tarot readers had predicted.
The company expected its mobile chip shipment to fall by 16-25 per cent in the second quarter. Additionally, it expected 3G and 4G device shipment to decline by 4 to 14 per cent. As for the first quarter of 2016, Qualcomm’s chip shipment fell 10 per cent , with a drop in revenue by 21.6 per cent. Revenue from licensing declined 10.4 per cent, suggests a Reuters report.
An LG spokesperson said that this kind of dispute was “actually nothing” and was similar to the ones that the industries had in the past.
“Qualcomm has lowered its royalty rate to LG in return for LG’s guaranteed purchase of Qualcomm processors, which are currently being used in its flagship handsets and will be used in upcoming flagship models,” added the official.
Qualcomm might have been a little nervy. LG has invested millions to develop its own chipset, in an attempt to cut down its dependency on Qualcomm for mobile processors.
That, at least, is the vision of Jia Yueting, a billionaire entrepreneur and one of a new breed of Chinese who see their technology expertise re-engineering the automobile industry, and usurping Tesla Motors, a U.S. pioneer in premium electric vehicle (EV) making.
“Tesla’s a great company and has taken the global car industry to the EV era,” Jia said in an interview at the Beijing headquarters of his Le Holdings Co, or LeEco. “But we’re not just building a car. We consider the car a smart mobile device on four wheels, essentially no different to a cellphone or tablet.
“We hope to surpass Tesla and lead the industry leapfrogging to a new age,” said Jia, wearing a black T-shirt and jeans.
A wave of EV start-ups has emerged in China after the government opened up the auto industry to deep-pocketed technology firms to drive a switch to cleaner electric as an eventual alternative to gasoline cars. Skeptics wonder just how start-ups like LeEco will deliver on their grand visions.
As a sign of intent, 43-year-old Jia last week unveiled the LeSEE electric concept supercar, a rival to Tesla’s Model S. The “smart, connected and self-driving” car will be displayed at this week’s Beijing autoshow.
“People questioned our idea, a small IT company building a car to compete with the BMWs and Teslas of the world, and laughed at us. It wasn’t easy, but here we are,” Jia told Reuters.
LeEco hopes to start producing a version of the LeSEE in a few years at a plant being built near Las Vegas by U.S. strategic partner Faraday Future, in which Jia has invested. Those cars would be sold in the United States and China. Further ahead, the plan is to produce electric cars in China, too, probably through a partnership with BAIC Motor.
The web-connected electric cars will have a “disruptive” pricing model similar to phones and TV sets LeEco markets in China, Jia says. His company, often called China’s Netflix, will sell movies, TV shows, music and other content and services to drivers of its cars. That’s why he says “one day our cars will be free.” Nearer-term, the disruption is more likely to be “double the performance at half the price.”
Sirin Labs AG said on Monday it had raised $72 million in private funds to launch the device, which would be aimed at executives. It plans to open its first store, in London’s Mayfair, in May.
“(Our) smartphone …brings the most advanced technology available – even if it is not commercially available – and combining it with almost military-grade security,” said Sirin co-founder and president Moshe Hogeg.
The phone will be based on the Android operating system and run otherwise unspecified technology two to three years in advance of the mass market, he said.
Hogeg told Reuters the phone would sell for less than $20,000.
He believes thousands of executives in the United States and Europe will pay that sort of price, since the cost of being hacked could be more expensive in terms of information lost.
Hogeg put the value of the global luxury phone market at about $1.1 billion, a fraction of total mobile phone sales. Most top end phones sold are more for status – regular phones with gold and diamonds.
Britain’s Vertu sells phones in that category from $10,000 to $300,000, while Apple’s iPhone 5 Black Diamond sold for $15.3 million.
Sirin’s financing came from Israeli venture capital fund Singulariteam – which Hogeg co-founded and included backing from Kazakh investor Kenges Rakishev – and Chinese social networking company Renren.
The idea for the start-up came about after Rakishev’s phone was hacked in 2013. He asked Hogeg why he couldn’t find a mobile phone that would ensure privacy and why new technology seen in tech shows and publications was not available in consumer devices.
“There were no good solutions that combined high-end technologies with maximum security,” Hogeg said.
Corning Glass has announced that its already tough Gorilla Glass has evolved into something a bit more colorful.
Dubbed “Vibrant Gorilla Glass” it is a way for Corning to print permanent images onto the glass panels with “outstanding resolution and sharpness.”
Corning hasn’t stated when the Vibrant Gorilla Glass will actually be available to manufacturers. But it shouldn’t be too far out. Vibrant Gorilla Glass could be important. Basically it means that smartphone makers will be able to customize phones to a greater extent.
It means that we might start getting themed phones which are more than just a single colour, but could have images of your favorite TV show. Corning says that the Vibrant Gorilla Glass can be used on “smartphones, tablets or notebooks.” Which means we might soon see tablets and notebooks with their own images pre-stuck on.
Don’t expect to see this on Apple gear though; Corning is in pretty thick with Samsung which signed a deal to ensure its supply until 2023.
Researchers at the University of California at Irvine (UCI) have accidentally – yes, accidentally – discovered a nanowire-based technology that could lead to batteries that can be charged hundreds of thousands of times.
Mya Le Thai, a PhD candidate at the university, explained in a paper published this week that she and her colleagues used nanowires, a material that is several thousand times thinner than a human hair, extremely conductive and has a surface area large enough to support the storage and transfer of electrons.
Nanowires are extremely fragile and don’t usually hold up well to repeated discharging and recharging, or cycling. They expand and grow brittle in a typical lithium-ion battery, but Le Thai’s team fixed this by coating a gold nanowire in a manganese dioxide shell and then placing it in a Plexiglas-like gel to improve its reliability. All by accident.
The breakthrough could lead to laptop, smartphone and tablet batteries that last forever.
Reginald Penner, chairman of UCI’s chemistry department, said: “Mya was playing around and she coated this whole thing with a very thin gel layer and started to cycle it.
“She discovered that just by using this gel she could cycle it hundreds of thousands of times without losing any capacity. That was crazy, because these things typically die in dramatic fashion after 5,000 or 6,000 or 7,000 cycles at most.”
The battery-like structure was tested more than 200,000 times over a three-month span, and the researchers reported no loss of capacity or power.
“The coated electrode holds its shape much better, making it a more reliable option,” Thai said. “This research proves that a nanowire-based battery electrode can have a long lifetime and that we can make these kinds of batteries a reality.”
The breakthrough also paves the way for commercial batteries that could last a lifetime in appliances, cars and spacecraft.
British fuel-cell maker Intelligent Energy Holdings announced earlier this year that it is working on a smartphone battery that will need to be charged only once a week.