Apple Posts Record Third Quarter but Major Decline in Profits

Surmounting inflation and supply chain delays, Apple posted revenue of $83 billion, up 2 percent year-over-year and a record for the company’s third quarter. However, profit declined 11 percent to $19.4 billion, the worst performance since 2020. Sales of iPhones were strong, generating $40.7 billion in revenue for the quarter, a 2.8 percent increase over the same period in 2021. But wearables did not prove as resilient, with revenue down 8 percent to $8.1 billion. On the earnings call to discuss Apple’s fiscal 2022 third quarter ended June 25, CEO Tim Cook said the results were “better than we expected.” Continue reading Apple Posts Record Third Quarter but Major Decline in Profits

Decline in Global PC Sales Expected to Impact Chip Demand

A slump in PC sales and crashing cryptocurrency markets appear to be tempering a demand for semiconductors spurred by COVID-19 era supply chain shortages. Inflation is another mitigating factor, as sales of laptops and high-end GPUs for gaming and cryptocurrency mining slacken. Research firm Gartner predicts global PC shipments will contract by 9.5 percent in 2022, with consumer demand projected to decline by 13.5 percent. Enterprise sales are also expected to drop, by 7.2 percent, according to Gartner. Those numbers align with the 10 percent PC sales decline Micron Technology has forecast. Continue reading Decline in Global PC Sales Expected to Impact Chip Demand

Apple Said to Be Exploring Production Options Outside China

During Apple’s Q2 conference call a few weeks ago, CEO Tim Cook admitted China’s new COVID-19 lockdowns would result in supply chain disruptions causing as much as $8 billion in lost sales this year. Although Cook tried to emphasize Apple’s supply chain as “truly global,” with manufacturing in the U.S. and elsewhere, the company’s reliance on China could be problematic, and reports are surfacing that sources at the company are saying Apple is now on the hunt for production locations outside China, with India and Vietnam, where Apple already has small manufacturing operations, mentioned as candidates. Continue reading Apple Said to Be Exploring Production Options Outside China

Facebook Groups Launches New Tools to Empower Creators

Meta is offering new tools for Facebook Groups to help admins further develop and engage the communities they manage. New features introduced at last week’s Facebook Communities Summit include subgroups, fee-based subscription groups, real-time chat for moderators, personalization tools and community fundraiser enhancements. Group admins will be able to customize the look and feel of groups, including greetings, colors, fonts and backgrounds, as well as the emoji available for content reactions. Facebook said the changes combine “the best of Pages and Groups into one place,” while making it easier, safer and more fun to collaborate. Continue reading Facebook Groups Launches New Tools to Empower Creators

KidHQ: Walmart and Mattel Renting Space in Virtual Store

Online toy shopping is getting increasingly creative, as digital reality tools rise in popularity among retailers and consumers. Walmart and Mattel are now leasing “floors” at the BuzzFeed-produced interactive video experience KidHQ, a virtual reality store that allows users to browse products via choose-your-own-adventure-style videos. Both companies are looking ahead to the holiday season as they try to sell toys ranging from Barbies to “Frozen 2” merchandise, and are using interactive video to connect with consumers to do so. 

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Etsy Turns to Google Cloud to Improve Search, Boost Sales

Etsy, the online crafts marketplace, boasts more than 60 million unique items and is using Google’s machine learning technology to help boost sales. Because more than 80 percent of its search-based purchases come from the first page of results, it is crucial to provide relevant items on that page. With that in mind, Etsy started a move to Google Cloud in 2017, motivated by the platform’s artificial intelligence capabilities. About three-fourths done with the migration, it’s already seen $260 million in incremental gross sales.

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Adobe Study: Most Companies Are Investing in Voice Tech

According to a study released by Adobe this week, nine out of 10 companies are currently investing in voice technologies, including things like voice-based commerce. Of the 401 companies surveyed, just over one-fifth have already released a voice app, while 44 percent plan to release one this year. A total of 88 percent are building apps for both Amazon and Google smart speakers and other voice-enabled devices, while only 39 percent are building for Apple’s iOS ecosystem; even fewer are building for Microsoft’s Cortana or Samsung’s Bixby.

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Alphabet Posts Higher Profits But Slowing Overall Revenue

Alphabet, dealing with pushback from regulators and struggles in its corporate culture, reported net profit that increased 37 percent to $9.19 billion in the quarter through September. Last year, during the same period, the company posted $6.7 billion. Although this growth exceeded analysts’ expectations, overall revenue is actually down, growing 21 percent to $33.74 billion versus last year’s 24 percent growth in the same period. Revenue from advertising, representing the majority of sales, grew 20 percent to $28.95 billion. Continue reading Alphabet Posts Higher Profits But Slowing Overall Revenue

IBM Is Buying Red Hat, Aims to Be Top Hybrid Cloud Provider

IBM and open-source software provider Red Hat announced that they have reached an acquisition agreement. Marking what will be the third-largest tech acquisition in U.S. history, IBM will purchase all issued and outstanding common shares of Red Hat in a deal valued at approximately $34 billion. Red Hat is the largest distributor of open-source operating system Linux. The deal reflects IBM’s ambitions for a piece of the fast-growing cloud computing market. “The acquisition of Red Hat is a game-changer,” said Ginni Rometty, IBM chair, president and chief exec. “It changes everything about the cloud market.” Continue reading IBM Is Buying Red Hat, Aims to Be Top Hybrid Cloud Provider

Microsoft Is Acquiring GitHub in Stock Deal Worth $7.5 Billion

Microsoft confirmed that it is purchasing GitHub in an all-stock deal valued at $7.5 billion. Acquiring GitHub — a service used by startups and major names such as Microsoft and Google to store code and collaborate, and an essential tool for 28 million developers — is a logical move for the Washington-based tech giant. With CEO Satya Nadella at the helm, Microsoft has been increasing its efforts to serve software developers through cloud services. With GitHub in its arsenal, “Microsoft would be rolling up a crucial part of the ecosystem,” notes Recode. Continue reading Microsoft Is Acquiring GitHub in Stock Deal Worth $7.5 Billion

Internal Numbers Reveal the Success of Amazon Prime Video

For the first time, numbers are available to demonstrate how Amazon’s original video strategy is paying off. Thanks to internal documents read by Reuters, the general public can see evidence that Amazon’s top shows enticed over 5 million people to sign up for its Prime shopping membership by 2017. Using video to create shoppers is a key to Amazon’s strategy, and chief executive Jeff Bezos has been open about that approach. In total, Amazon’s U.S. audience for video (original and licensed) is about 26 million. Continue reading Internal Numbers Reveal the Success of Amazon Prime Video

Nintendo to Double Planned Production of New Hybrid Console

In response to strong initial demand, Nintendo plans to at least double production of its new Switch game console through March 2018. The hybrid console, designed for home and mobile use, launched globally March 3, and “its North American unit described the initial momentum as the strongest in the company’s history,” reports The Wall Street Journal. This could put Switch on a similar trajectory as the company’s popular Wii system (and Nintendo needs a hit after its Wii U performed less than expected). “In the fiscal year starting April 2017, assemblers under contract with Nintendo are now planning to manufacture 16 million or more Switches, up from an initial plan for eight million.” Continue reading Nintendo to Double Planned Production of New Hybrid Console

Sony Holds Lead in Console Market, Platform Subs on the Rise

IHS Markit reports that Sony led the gaming hardware, software and service market last year, nearly doubling the share of Microsoft and its Xbox One. Sony is expected to continue its dominance through 2017. According to IHS, Sony captured 57 percent ($19.7 billion) of spending by gamers in 2016, “thanks to growth of digital console games,” notes VentureBeat, adding, however, “that the overall console game market shrank in 2016, and Nintendo is newly competitive this year with the launch of the Switch game console.” Additionally, Microsoft may experience a rebound this year with the launch of its PS4 competitor, Project Scorpio. Continue reading Sony Holds Lead in Console Market, Platform Subs on the Rise

IBM and Salesforce to Link AI Technologies for Data Analytics

Chief execs Marc Benioff of Salesforce.com and Ginni Rometty of IBM announced a new partnership yesterday that will combine the two companies’ artificial intelligence technologies to create new data analytics offerings for helping others target products and services. Available in the second half of 2017, the offerings will introduce “integrated AI services that weave the broad human-like conversation and learning capabilities of IBM’s Watson with Salesforce’s more sales-oriented Einstein,” reports The Wall Street Journal. In an “effort to reinvent itself for the cloud-computing era,” IBM has been tailoring Watson “for a variety of industries including health care, financial services and automobiles.” Continue reading IBM and Salesforce to Link AI Technologies for Data Analytics

Apple Cuts Fees Charged to Streaming Services in App Store

Apple is halving the amount it charges streaming services to sell video on its App Store, in response to widespread discontent among content partners. Earlier, Apple tried unsuccessfully to create its own live TV service, but instead released an app that relies on programs from streaming services including HBO, Hulu and Showtime. Apple is now cutting its share from 30 percent to 15 percent. Some non-video apps will also dip to 15 percent after the customer has been a subscriber for a year. Continue reading Apple Cuts Fees Charged to Streaming Services in App Store