Forecast: Global E-Commerce to Reach $1.4 Trillion by 2025

Euromonitor International conducted a study in October on the rise of e-commerce during the COVID-19 pandemic and found that 74 percent of worldwide retail and consumer brand experts believe the trend will become permanent. The study projected that between 2020 and 2025 half of the absolute value growth for the global retail sector will be digital, equating to $1.4 trillion. Of that, the United States and China will be responsible for 55 percent of the value growth. Latin America also experienced significant e-commerce growth in 2020. Continue reading Forecast: Global E-Commerce to Reach $1.4 Trillion by 2025

Countries Plan to Invest in New Chip Manufacturing Facilities

Due to a global semiconductor shortage, the United States, European Union countries and Japan are planning to spend billions of dollars to build chip fabrication plants (“fabs”). These countries also face the fact that more than two-thirds of the world’s chips are made in Taiwan. China is offering subsidies to its domestic chip industry, as industry-leaders Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics plan to build U.S.-based fabs, potentially aided by significant U.S. government subsidies. Continue reading Countries Plan to Invest in New Chip Manufacturing Facilities

Google Joins Apple in Reducing App Store Commission Fees

Google is following in Apple’s footsteps by lowering the commissions it charges app developers in its Google Play Store. Apple and Google, currently the primary marketplaces for apps, charge developers 30 percent for app sales and in-app purchases. Now, beginning in July, Google stated it will lower the traditional fee to 15 percent for the first $1 million developers earn. That is slightly different than Apple’s plan, which is to lower its rate to 15 percent for developers who generate less than $1 million in annual sales. Continue reading Google Joins Apple in Reducing App Store Commission Fees

European Union Earmarks $150 Billion for New Tech Initiatives

As part of a $2 trillion recovery package, the European Union is investing $150+ billion in “Digital Compass” to boost advanced technologies and narrow the gap with the U.S. and Asia. One goal is to produce at least 20 percent of the world’s semiconductors by 2030. In 2020, said the European Commission, the EU produced 10 percent. In 2019, the EU debuted a public-private cloud-computing project, Gaia-X to increase self-reliance and, in 2017, the European Battery Alliance to develop electricity-storage technologies. Continue reading European Union Earmarks $150 Billion for New Tech Initiatives

National Security Commission on AI Pinpoints Chinese Threat

The National Security Commission on Artificial Intelligence identified China as the first to challenge U.S. technological dominance since the end of World War II. To counter this potential threat to the United States, the 15-member commission issued a 756-page report urging a $40 billion investment in artificial intelligence research and development to be “AI ready” by 2025. The report also called for the U.S. to stay two generations ahead of China in semiconductor manufacturing. To that end, it suggested a significant tax credit for chip makers. Continue reading National Security Commission on AI Pinpoints Chinese Threat

Movie Chains Rent Screens to Video Gamers in South Korea

At South Korea’s largest cinema chain, CGV Cinemas, gamers are able to rent otherwise-empty auditoriums for a few hours to play games on movie screens. In that country, many movie theaters are still closed and those that are open can only accommodate 50 percent capacity, which is what gave CGV employee Seung Woo Han the idea of renting to gamers as a new revenue stream. Now, before 6:00 PM, up to four people can rent a big screen for two hours for about $90, a figure that rises to $135 in the evening. Continue reading Movie Chains Rent Screens to Video Gamers in South Korea

U.S. and China Already in an Arms Race for 6G Technologies

Although most people do not have access to 5G networks yet, the U.S. and China are already in a race to be the first nation to develop and patent 6G, expected to be up to 100 times faster than 5G’s peak speed. Experts note that 6G is currently a “theoretical proposition” and the technology is at least 10 to 15 years away. However, the possibility that 6G can usher in “the next industrial revolution” — from flying taxis to real-time holograms — has made it a potent focus of a geopolitically-influenced race. China is currently considered the leader in 5G. Continue reading U.S. and China Already in an Arms Race for 6G Technologies

Chinese Regulators Rein in Jack Ma’s Alibaba and Ant Group

Alibaba founder Jack Ma has long been celebrated in China for his successful entrepreneurship that has made him that country’s richest individual. More recently, however, his troubles with the Chinese government led that country’s media to dub him an “evil capitalist” and “bloodsucking ghost.” Last week, China opened an antitrust probe into Alibaba and is investigating Ant Group, a fintech company Ma spun out of Alibaba. After nixing that company’s IPO, China is now telling Ma to fix its many perceived flaws. Continue reading Chinese Regulators Rein in Jack Ma’s Alibaba and Ant Group

App Annie Reports Growth in Mobile Game and App Spending

App Annie predicted that mobile game and app spending will have grown 25 percent to $112 billion in 2020. Director of market insights Amir Ghodrati added that the company will likely revise these numbers upwards at the end of December. Both iOS and Android showed record-breaking growth, with 65 percent of spending going to the former and almost 30 percent to the latter. Apple iOS and Google mobile app and game downloads are expected to reach 130 billion in 2020, up 10 percent from 2019. Continue reading App Annie Reports Growth in Mobile Game and App Spending

EU Commission Recalibrates Its Positions with Big Tech, U.S.

The European Union is eagerly anticipating the inauguration of President-elect Joe Biden, even as it scrutinizes proposals targeting U.S. Big Tech behavior and, in some cases, business models in an effort to reestablish itself as the “global tech cop.” Although the Electoral College has yet to convene and vote and inauguration day isn’t until January 20, the European Commission and Council are already issuing policy papers on how they hope to partner with the new U.S. administration on numerous issues. Continue reading EU Commission Recalibrates Its Positions with Big Tech, U.S.

U.S.-China Cold War Hits Semiconductor, Telecom Industries

The tech Cold War between the U.S. and China is doing more than disrupting manufacturing: it’s costing a fortune, particularly for the telecommunications and semiconductor industries, in which President Trump has blocked leading companies from both countries from doing business with one another. Chinese companies can no longer do business in the U.S. and U.S. companies are blocked from exporting to Chinese companies. Lost business and the need to replace gear are likely to cost billions of dollars. Continue reading U.S.-China Cold War Hits Semiconductor, Telecom Industries

Huawei Produces 5G Base Stations, Phones Despite U.S. Ban

In anticipation of the Trump administration’s sanctions, Huawei Technologies spent months stockpiling critical radio chips so Chinese carriers could continue to roll out 5G, through at least 2021. In late 2019, its partner Taiwan Semiconductor Manufacturing (TSMC) boosted production of Huawei’s 7nm Tiangang communication chips, used in 5G base stations, shipping more than two million of them ahead of sanctions taking effect. Under these conditions, Huawei unveiled its new Mate 40 series smartphones. Continue reading Huawei Produces 5G Base Stations, Phones Despite U.S. Ban

European Union Alliance Aims to Compete in Cloud Services

In the European Union, 25 countries pledged to provide up to €10 billion over the next seven years to build a cloud computing service to compete with Alibaba, Amazon and Google. Dubbed the European Alliance on Industrial Data and Cloud, the partnership will draw funding from existing EU programs and debut by the end of 2020. EU internal market commissioner Thierry Breton stated the declaration is a “foundation stone for the establishment of European cloud technology.” Cyprus and Denmark are the only two EU holdouts. Continue reading European Union Alliance Aims to Compete in Cloud Services

Federal Government Probes Foreign Investments in U.S. Tech

As part of ongoing security concerns focused on technology, the Trump administration is now re-examining investments in U.S. tech startups by Chinese and other foreign groups, even investments that are years old. Heading the investigation is the Committee on Foreign Investment in the United States (CFIUS) which, after gathering information, can decide whether to probe specific deals more deeply and even demand that the foreign investor divest. The probe is based on the government’s belief that the United States did not sufficiently scrutinize these investments from China and other countries. Continue reading Federal Government Probes Foreign Investments in U.S. Tech

YouTube Users Turn to Established and Indie News Channels

In light of the fact that 26 percent of Americans say they get news on YouTube, the Pew Research Center conducted a survey in January of 12,638 U.S. adults who consumed news on YouTube, asking about their experiences. The Pew study analyzed the news channels consumers watched and the content of videos on these channels, relying on a subset of videos published in December 2019. The study found a news environment on YouTube in which established news organizations and indie news channels “thrive side by side.”

Continue reading YouTube Users Turn to Established and Indie News Channels