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.
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.
T-Mobile US Inc reported a better-than-expected 10.6 percent rise in quarterly revenue and raised its forecast for customer additions in 2016 as popular discounts aided the No.3 U.S. wireless carrier by subscribers attract more business.
T-Mobile has been offering cheaper leasing plans and free music and video streaming to lure customers away from larger rivals Verizon Communications Inc and AT&T Inc.
T-Mobile, controlled by Deutsche Telekom, said it added 2.2 million customers on a net basis in the first quarter ended March 31.
That easily topped the average analyst estimate of 1.72 million, according to research firm FactSet StreetAccount.
The company said it expected to add 3.2 million to 3.6 million postpaid customers on a net basis in 2016, compared with its previous forecast of 2.4 million to 3.4 million.
T-Mobile’s 10.6 percent jump in quarterly revenue to $8.6 billion suggested its strategy to boost revenue was working. Analysts on average had expected revenue of $8.43 billion, according to Thomson Reuters I/B/E/S.
In comparison, market leader Verizon’s operating revenue rose just 0.6 percent to $32.17 billion.
AT&T is scheduled to report results later on Tuesday.
T-Mobile reported net income of $479 million, or 56 cents per share, for the first quarter, compared with a loss of $63 million, or 9 cents per share, a year earlier.
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.
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.
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.
Qualcomm predicted a third-quarter profit below analysts estimates as it expects to ship fewer chips, including those for smartphones, its biggest business.
Qualcomm, whose customers include Apple and Samsung expects chip shipments to fall 13-22 percent to 175-195 million in the current quarter with its expects 3G and 4G devices to increase to eight percent at the midpoint in this quarter, lower than its previous estimate of about 10 percent growth.
Besides slowing smartphone sales, Qualcomm is also being squeezed by competitors making chips that rival its own in price and performance, and the likes of Samsung and Apple increasingly making their own components for smartphones.
Research firm Gartner expects global smartphone sales to grow in single digits in percentage terms for the first time ever this year, while Apple in January also forecast its first revenue drop in 13 years.
The uncertainty in the smartphone business seemed to show in the company’s third-quarter revenue forecast of $5.2-$6.0 billion, which implies revenue could be between 11 percent lower and 3 percent higher than the year-ago quarter.
However, while Qualcomm’s chip business is the bigger contributor to revenue it makes most of its dosh by licensing its chip technology. But the outfit has sufferd from delays in closing licensing agreements in China, its biggest market.
Qualcomm, which has recently signed new deals with several companies including Lenovo and it was still in talks with key Chinese smartphone makers to sign agreements.
Revenue at Qualcomm’s chipmaking division and its licensing business fell, 25 percent and 12 percent respectively, in the latest quarter, dragging down total revenue for the fourth quarter in a row. However, the 19.5 percent drop, to $5.55 billion, in the three months ended March 27, was less than the nearly 23 percent drop analysts were expecting. Net income attributable to Qualcomm rose 10.5 percent to $1.16 billion, or 78 cents per share.
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.
The Better Roofs ordinance was penned by Supervisor Scott Wiener, who said the measure was needed to fight climate change and reduce reliance on fossil fuels.
“Activating underutilized roof space is a smart and efficient way to promote the use of solar energy and improve our environment,” Wiener said in a statement about the vote. “We need to continue to pursue aggressive renewable energy policies to ensure a sustainable future for our city and our region.”
A federal study released earlier this month revealed that installing solar panels on every roof in the U.S. would supply 39% of the nation’s total power used.
While the U.S. Energy Information Administration doesn’t normally track legislation, a spokesperson for the agency said he was unaware of any other states with laws requiring solar on rooftops. Additionally, the Database of State Incentives for Renewable Energy, a compilation of mostly state-level and significant local-level rules and regulations, had no record of laws requiring all commercial and residential buildings to have solar. That makes San Francisco the first city in the nation to implement such an ordinance.
San Francisco’s new law, however, does follow a state law: California’s Title 24 Energy Standards, which requires 15% of roof area on new small and mid-sized buildings to be “solar ready.” That requires the roof to be unshaded by the proposed building itself, and free of obtrusions. The state law also applies to all new residential and commercial buildings of 10 floors or less.