Connect with us

Tech

Apple results could mark weak finish to Big Tech earnings

Published

on

Apple Inc (AAPL.O) will likely report a more than 4% drop in revenue, its second straight quarterly decline, weighed down by consumers shunning non-essential purchases such as iPhones and Mac computers and slowing growth at its services business.

The results on Thursday from the world’s most valuable company will follow better-than-expected earnings from U.S. technology peers, which had raised hopes that the worst may be over for a sector that has laid off tens of thousands this year.

Apple, an industry outlier with no mass layoffs so far, is set to post its first ever revenue declines across product lines, even as iPhone demand and production recovered in China after pandemic-driven disruptions last year.

“Apple is seeing moderate headwinds in its hardware businesses as iPhones face modest contraction in premium device demand and the iPad and Mac businesses could be weighed down by consumer and enterprise trends,” analysts at Cowen and Co said.

Advertisement

Hardware sales are set to decline over 7% to $71.93 billion in the second quarter, according to 23 analysts polled by Visible Alpha.

Mac sales, which account for nearly a tenth of Apple’s revenue, likely fell by a quarter, while revenue from flagship iPhone is estimated to have declined by over 3%.

Global PC shipments slumped by nearly a third between January and March, according to data from research firm IDC, led by an over 40% drop in those sold by Apple. The global smartphone market, meanwhile, shrank 13% for a fifth straight quarter of decline.

CHINA CHEER
Apple investors, however, would be encouraged by a recovery in China, the company’s third-largest market.

“The reopening of China, both from the supply chain and the consumer demand standpoint, works in Apple’s favor,” said Tom Forte of D.A. Davidson, who expects iPhone sales there to rise.

Advertisement

A near 1% pullback in the dollar during the quarter is also a bright spot in what is typically a weak period following the holiday shopping season, analysts said.

Revenue in its services business, a key growth engine for Apple and home to its App Store and video streaming service, likely rose about 6%, according to Visible Alpha. That would mark its second lowest growth rate since at least the first quarter of fiscal 2017.

“For Apple, it is much more about a user growth story than a unit growth story,” said KeyBanc Capital Markets analyst Brandon Nispel, who believes efforts to grow market share in developing economies such as India and Brazil will be crucial.

He expects Apple to have added 30 million users to its active installed user base – the number of active Apple devices in the world. That figure stood at 2 billion as of end December.

The company is ramping up its manufacturing and store presence in India as it looks to diversify its supply chain and gain consumers. The market could contribute $20 billion to annual revenue by 2025, brokerage Wedbush estimates.

Advertisement

Tech

A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

Published

on

By

A former OpenAI leader says safety has 'taken a backseat to shiny products' at the AI company

A former OpenAI leader who resigned from the company earlier this week said Friday that safety has “taken a backseat to shiny products” at the influential artificial intelligence company.

Jan Leike, who ran OpenAI’s “Superalignment” team alongside a company co-founder who also resigned this week, wrote in a series of posts on the social media platform X that he joined the San Francisco-based company because he thought it would be the best place to do AI research.

“However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point,” wrote Leike, whose last day was Thursday.

An AI researcher by training, Leike said he believes there should be more focus on preparing for the next generation of AI models, including on things like safety and analyzing the societal impacts of such technologies.

Advertisement

He said building “smarter-than-human machines is an inherently dangerous endeavor” and that the company “is shouldering an enormous responsibility on behalf of all of humanity.”

“OpenAI must become a safety-first AGI company,” wrote Leike, using the abbreviated version of artificial general intelligence, a futuristic vision of machines that are as broadly smart as humans or at least can do many things as well as people can.

Open AI CEO Sam Altman wrote in a reply to Leike’s posts that he was “super appreciative” of Leike’s contributions to the company was “very sad to see him leave.”

Leike is “right we have a lot more to do; we are committed to doing it,” Altman said, pledging to write a longer post on the subject in the coming days.

The company also confirmed Friday that it had disbanded Leike’s Superalignment team, which was launched last year to focus on AI risks, and is integrating the team’s members across its research efforts.

Advertisement

Leike’s resignation came after OpenAI co-founder and chief scientist Ilya Sutskever said Tuesday that he was leaving the company after nearly a decade.

Sutskever was one of four board members last fall who voted to push out Altman — only to quickly reinstate him. It was Sutskever who told Altman last November that he was being fired, but he later said he regretted doing so.

Sutskever said he is working on a new project that’s meaningful to him without offering additional details.

He will be replaced by Jakub Pachocki as chief scientist. Altman called Pachocki “also easily one of the greatest minds of our generation” and said he is “very confident he will lead us to make rapid and safe progress towards our mission of ensuring that AGI benefits everyone.”

On Monday, OpenAI showed off the latest update to its artificial intelligence m

Advertisement

Continue Reading

Tech

US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

Published

on

By

US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

The U.S. Justice Department and TikTok on Friday asked a U.S. appeals court to set a fast-track schedule to consider the legal challenges to a new law requiring China-based ByteDance to divest TikTok’s U.S. assets by Jan. 19 or face a ban.

TikTok, ByteDance and a group of TikTok content creators joined with the Justice Department in asking the U.S. Court of Appeals for the District of Columbia to rule by Dec. 6 to be able to seek review from the Supreme Court if needed before the U.S. deadline. 

On Tuesday, a group of TikTok creators filed suit to block the law that could ban the app used by 170 million Americans, saying it has had “a profound effect on American life.”

Last week, TikTok and parent company ByteDance filed a similar lawsuit, arguing that the law violates the U.S. Constitution on a number of grounds including running afoul of First Amendment free speech protections.

Advertisement

“In light of the large number of users of the TikTok platform, the public at large has a significant interest in the prompt disposition of this matter,” the U.S. Justice Department and TikTok petitioners said.

TikTok said with a fast-track schedule it believes the legal challenge can be resolved without it needing to request
emergency preliminary injunctive relief.

The law, signed by President Joe Biden on April 24, gives ByteDance until Jan. 19 to sell TikTok or face a ban. The White House says it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok.

The parties asked the court to set the case for oral arguments as soon as practical during the September case calendar. The Justice Department said it may file classified material to support the national security justifications in secret with the court.

Earlier this week the Justice Department said the TikTok law “addresses critical national security concerns in a manner that is consistent with the First Amendment and other constitutional limitations.”

Advertisement

The law prohibits app stores like Apple and Alphabet’s Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok.

Driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app, the measure was passed overwhelmingly in Congress just weeks after being introduced.

Continue Reading

Tech

Spotify sued over alleged unpaid royalties

Spotify sued over alleged unpaid royalties

Published

on

By

Spotify sued over alleged unpaid royalties

Music streaming giant Spotify has been sued in a US federal court for allegedly underpaying songwriters, composers and publishers by tens of millions of dollars.

The lawsuit against Spotify USA was filed in New York on Thursday by the Mechanical Licensing Collective (MLC), a non-profit that collects and distributes royalties owed from music streaming services.

The suit alleges that Spotify on March 1, without advance notice, reclassified its paid subscription services, resulting in a nearly 50 percent reduction in royalty payments to MLC.

“The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for Songwriters and Music Publishers,” MLC said.

Advertisement

“If unchecked, the impact on Songwriters and Music Publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.”

According to MLC, Spotify reclassified its Premium Individual, Duo and Family subscription streaming plans as Bundled Subscription Offerings because they now include audiobooks.

Royalties paid on bundled services are significantly less. MLC said Premium subscribers already had access to audiobooks and “nothing has been bundled with it.”

“Premium is exactly the same service that Spotify offered to its subscribers before the launch of Audiobooks Access,” it said. In a statement, Spotify said the lawsuit “concerns terms that publishers and streaming services agreed to and celebrated years ago.”

Spotify said it paid a “record amount” in royalties last year and “is on track to pay out an even larger amount in 2024.” “We look forward to a swift resolution of this matter,” the Swedish company said.

Advertisement

In February, Spotify said it paid $9 billion to musicians and publishers last year, about half of which went to independent artists. 

Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN