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.
Intel this week unveiled plans to make an upgraded USB Type-C connector that would enable audio input and output, potentially replacing the long-standard 3.5 millimeter headphone jack used in today’s electronic devices.
Intel, which revealed its plans during a lecture at its Intel Developers Forum (IDF) in Shenzhen, China, also believes USB Type-C would simplify connections of multi-channel audio equipment to various devices.
Unlike the traditional 3.5mm analogue audio jack, a USB Type-C interface could charge a device in addition to transmitting sound and data. For example, it could transfer health and fitness data from a mobile device.
The USB Type-C connectors are reversible, so orientation isn’t an issue when plugging something into a device. The USB 3.1 Gen1 specification offers up to 5Gbps of data throughput; the Gen2 specification offers up to 10Gbps.
USB Type-C cables and connectors would replace the last analog receptacles on computers and mobile devices. Intel’s strategy was first reported by AnandTech.
In Intel’s presentation, it described USB C-Type connectors as being able to support both analog and digital musical content. But the upgraded connector would “promote” a changeover from analog to digital as users would see “improved digital headset features.”
A USB Type-C connector that supports audio feeds would also enable new form-factors, improve user experience and “provide a future path for USB technologies,” Intel said in the presentation.
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.
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.
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.”
More than two-thirds of German industrial companies have falling prey to digital crime in the past two years, according to a survey carried out by Bitkom, Germany’s IT, telecoms and new media industry association.
The most common offence was the simple theft of equipment such as computers, smartphones or tablets, but a fifth of companies surveyed reported that sensitive documents, components or designs had been stolen, while 18 percent said their production had been sabotaged with the aim of damaging or paralyzing it.
Such crimes cost German manufacturing industry more than 22 billion euros ($25 billion) a year, Bitkom estimated following its survey of 504 German manufacturing companies with at least 10 employees.
“With the digitization of production and the networking of machines over the Internet, new contact points arise that are vulnerable to attack,” Winfried Holz, a Bitkom executive committee member, said in a statement issued at the Hannover Messe industry trade fair.
“German industry, with its numerous hidden champions, is an attractive target for cybercriminals and foreign intelligence services,” he added. Germany has hundreds of small and medium-sized family-owned manufacturers that are world leaders in their niche.
Bitkom said the 69 percent of manufacturing companies affected by cybercrime was a far higher proportion than the 51 percent average for German companies in general.
About 70 percent of the machinery and equipment manufacturers surveyed said they had been victims, 68 percent of chemicals and pharmaceuticals producers, 65 percent of electronics makers and 61 percent of carmakers.
Cybercriminality was most often found in production or assembly, with 36 percent of reported cases, followed by 30 percent in warehousing and logistics, 29 percent in IT and 23 percent in research and development.
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.
Every decade or so, a new era of computing comes along that influences everything we do. Much of the 90s was about client-server and Windows PCs. By the aughts, the Web had taken over and every advertisement carried a URL. Then came the iPhone, and we’re in the midst of a decade defined by people tapping myopically into tiny screens.
So what comes next, when mobile gives way to something else? Mark Zuckerberg thinks it’s VR. There’s likely to be a lot of that, but there’s a more foundational technology that makes VR possible and permeates other areas besides.
“I do think in the long run we will evolve in computing from a mobile-first to an A.I.-first world,” said Sundar Pichai, Google’s CEO, answering an analyst’s question during parent company Alphabet’s quarterly earnings call Thursday.
He’s not predicting that mobile will go away, of course, but that the breakthroughs of tomorrow will come via smarter uses of data rather than clever uses of mobile devices like those that brought us Uber and Instagram.
Forms of artificial intelligence are already being used to sort photographs, fight spam and steer self-driving cars. The latest trend is in bots, which use A.I. services on the back end to complete tasks automatically, like ordering flowers or booking a hotel.
Google believes it has a lead in A.I. and the related field of machine learning, which Alphabet’s Eric Schmidt has already pegged as key to Google’s future.
Machine learning is one of the ways Google hopes to distinguish its emerging cloud computing business from those of rivals like Amazon and Microsoft, Pichai said.
“Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities. We will continue to focus on competing vigorously for business and for customers,” a Microsoft spokesperson said in an email.
Google, in a separate email, said the companies would want to compete vigorously based on the merits of their products, not in “legal proceedings”.
The companies in September agreed to bury all patent infringement litigations against each other, settling 18 cases in the United States and Germany.
“… Following our patent agreement, we’ve now agreed to withdraw regulatory complaints against one another,” Google said on Friday.
Google’s rivals had reached out to U.S. regulators alleging that the Internet services company unfairly uses its Android system to win online advertising, people with knowledge of matter told Reuters last year.
The European Commission also accused Google last year of distorting internet search results to favor its shopping service, harming both rivals and consumers.
According to the latest report, Nvidia plans to launch next-generation mainstream segment graphics cards, based on GP106 GPU, in Autumn, or late Q3/early Q4 2016.
According to a report coming from Sweclockers.com, Nvidia’s mainstream graphics cards, which will be based on a GP106 Pascal GPU, should be coming in Autumn, and be ready for sales by the time for a Christmas shopping season.
Meant to replace the currently available Maxwell-based GTX 960 and GTX 950 graphics cards, the upcoming mainstream Geforce graphics cards, most likely named as the GTX 1060 and GTX 1050, could end up with two enabled graphics processing clusters (GPCs), which means that SKUs could end with up to 1280 CUDA cores.
While the upcoming GP104-based graphics cards should cover the higher-end consumer market, the mid-range market is mostly the cash-cow for companies so having that segment on store shelves before Christmas shopping season is quite important.
Security researchers have uncovered a new memory-scraping malware program that steals payment card data from point-of-sale (PoS) terminals and forwards to attackers using the Domain Name System (DNS).
Dubbed Multigrain, the threat is part of a family of malware programs known as NewPosThings, with which it shares some code. However, this variant was designed to target specific environments.
That’s because unlike other PoS malware programs that look for card data in the memory of many processes, Multigrain targets a single process called multi.exe that’s associated with a popular back-end card authorization and PoS server. If this process is not running on the compromised machine, the infection routine exists and the malware deletes itself.
“This shows that while developing or building their malware, the attackers had a very specific knowledge of the target environment and knew this process would be running,” security researchers from FireEye said in a blog post.
FireEye did not name the PoS software that Multigrain targeted. However, threats like this show the need for companies to monitor the DNS traffic that originates from their own networks for suspicious behavior.
Multigrain was designed with stealth in mind. It is digitally signed, it installs itself as a service called Windows Module Extension and more importantly, it sends data back to attackers via DNS queries.
Stolen payment card data is first encrypted with a 1024-bit RSA key and then it’s passed through a Base32 encoding process. The resulting encoded data is used in a DNS query for log.[encoded_data].evildomain.com, where “evildomain” is a domain name controlled by the attackers. This query will appear in the authoritative DNS server for the domain, which is also controlled by the attackers.
This technique, while not specific to Multigrain, allows attackers to pass data out of restricted environments where other Internet communication protocols are blocked.
Apple will pay the money to Marathon Patent Group, the parent company of Texas firm Dynamic Advances, which held an exclusive license to a 2007 patent covering natural language user interfaces for enterprise databases. Marathon reported the settlement in a filing with the U.S. Securities and Exchange Commission on Tuesday.
In response to the settlement, Magistrate Judge David Peebles of U.S. District Court for the Northern District of New York dismissed a lawsuit against Apple filed by Dynamic Advances and Rensselaer Polytechnic Institute in Troy, New York, where the natural language technology was created.
A trial had been scheduled to begin early next month in Syracuse, New York. Dynamic Advances first filed a patent infringement lawsuit against Apple in October 2012.
A “portion” of the settlement will go to RPI, Marathon said in its SEC filing. The company believes “other voice recognition services also infringe patents involved in the settled action,” it said in the filing.
The natural language technology covered in the patent was invented by Cheng Hsu, then a professor of decision sciences and engineering systems, and Veera Boonjing, then a doctoral student at RPI, according to an amended complaint filed in June 2013.
The patent covers “novel methods” for processing natural language, wrote lawyers for the plaintiffs. The technology gives computer and smartphone owners “the ability to input search queries or commands in language they would use in conversation with another person,” they wrote in the complaint.
Apple’s Siri voice-enabled digital assistance service encourages users to use technology that “processes natural language inputs” as claimed in the patent, the complaint said. Since the first lawsuit in 2012, “Apple has known that, or has been willfully blind to the fact that” its customers are infringing the patent, the plaintiffs’ lawyers wrote.