Apple’s weak business functionality in China might have surprised investors, but consumers and analysts have noted the increasingly demanding situations facing the company in its third-largest market.
Intensifying competition from domestic rivals, coupled with longer upgrade cycles as consumers spend more cautiously amid an economic slowdown, have stunted Apple’s China growth, with sales there nosediving by 13% in the quarter ending in December to $20.8 billion and missing estimates of $23.5 billion.
“Apple’s drop in sales in China is unexpected given the strong festival of local brands such as Huawei and Xiaomi,” said Toby Zhu, an analyst at research organization Canalys.
Apple did not respond to a request for comment.
As the world’s largest smartphone market, China plays a role in Apple’s sales growth. For years, Apple has been the premium phone logo of choice in the country, but the trend is turning.
The pressure on Apple intensified at the time after Huawei returned to the high-end smartphone market with its Mate 60 series phones powered by a locally made chip.
Other big Android brands like Xiaomi have also entered the high-end territory that Apple has historically dominated. Xiaomi unveiled its premium Mi 14 style in October, touting its long battery life and camera capabilities. It sold 1 million devices within a week of its launch. launch.
Canalys’ Zhu said Chinese brands are entering Apple’s core value segment by introducing more expensive foldable products.
Chinese consumers have also complained about a lack of innovation in Apple’s iPhones, particularly in the design aesthetic, compared to earlier iterations.
“Another hurdle Apple wants to overcome is how it can bring more print points to buyers and its symbol as a pioneering generation. This is especially important as other Android vendors are now integrating foldable products and artificial intelligence into their products,” said Will Wong, smartphone analyst at IDC.
At the same time, Chinese consumers are holding on to their phones for longer due to the economic slowdown. Consultancy Counterpoint said in June that the replacement cycle lasted more than 40 months.
For its sales in China, Apple has lowered its prices. A major sales crusade led online retailers to add Alibaba and Pinduoduo to the iPhone 15’s transparent stock in October, just a month after its launch in the country. In January, Apple introduced infrequent sales on its iPhones.
October’s relief effort appears to have halted the decline: Apple’s phone shipments fell just 2. 1% in the last quarter of 2023, while Huawei’s sales rose 36. 2%, according to data from research organization IDC.
Apple will likely continue to face pressure in China going forward. Jefferies analysts predict Apple’s shipments in China will decline by a double digit percentage in 2024.
“The big failure in China is worrisome because it may be just the beginning of a longer downtrend there,” said Bob O’Donnell of TECHnalysis Research.
The Ministry of Investment of the UAE and the Greek Ministry of Digital Governance have signed a Memorandum of Understanding (MoU) to create a framework for investments in digital infrastructure with a focus on data center projects in Greece.
The agreement was signed through the UAE’s Minister of Investment, Mohamed Hassan Alsuwaidi, and the Greek Minister of Digital Governance, Dimitris Papastergiou.
The knowledge centres to be developed under this agreement will be able to have a total capacity of 500 megawatts.
The knowledge media market in Greece has seen significant expansion in recent years, largely driven by the country’s Digital Transformation Strategy 2020-2025, which aims to facilitate the transformation of companies into virtual businesses and integrate virtual technologies into their economic sectors.
Projections imply that the Greek knowledge center market will reach $1. 218 billion by 2028, up from $735 million in 2022, with compound annual growth of around 9%.
With 15 knowledge centers, Greece is set to expand its knowledge infrastructure with another 139 megawatts of electrical capacity from new knowledge centers slated to grow over the next five years. This positions the country as the largest knowledge center in Southeast Europe and the second largest. in the Mediterranean until 2028.
Greece benefits from a network of more than ten submarine cables connecting the country to global markets, further bolstered through multiple national web exchange points, resulting in particularly improved connectivity and reliability and increased attractiveness for businesses seeking effective and reliable knowledge sharing.
The MoU between the UAE and Greece focuses on forging effective collaboration by building relationships between public and private organizations. The agreement additionally proposes the implementation of incentives to support pertinent initiatives and aims to facilitate the exchange of knowledge.
On Friday, Apple retail outlets in the U. S. will begin promoting the Vision Pro, the tech giant’s $3,499 headset and its first major release since the Apple Watch nine years ago.
The launch of Vision Pro through the world’s most iconic device manufacturer is a major milestone for virtual or augmented reality enthusiasts, who see this generation as the next bankruptcy of life after the smartphone.
But with a hefty price tag and the combined good fortune of similar, less expensive versions from Facebook owner Meta, early reviews convince that Vision Pro will be a game-changer, at least initially.
Vision Pro is an “amazing” product, writes The Verge, but it “also represents a number of trade-offs” that are “impossible to ignore. “
It’s “an impressive product, requiring many years and billions of dollars to make,” but “even afterward, I still have no idea who or what it’s intended for,” the New York Times wrote.
Reviewers recognize a certain “wow” factor, highlighting its state-of-the-art symbol and the joy of opening and ending apps floating in space with eyes and fingers.
However, the headset is heavy, damages the user’s hair, and requires a bulky battery, they add.
As part of a major promotional campaign, Apple CEO Tim Cook appeared on the cover of Vanity Fair dressed in the Vision Pro on Thursday.
He received a complaint at a convention in June when he revealed that the device had once tried.
Apple sees the Vision Pro as its first foray into “spatial computing,” rejecting the term virtual reality, associated with tech fans and gamers.
In ads, in addition to streaming movies, users are shown wearing the Vision Pro to work or chat with friends or toggle through apps.
Apple says there are 600 specifically designed apps and games available for the Vision Pro alongside one million compatible apps.
“These apps will replace the way we enjoy entertainment, music and games,” said Susan Prescott, Apple’s vice president of global developer relations.
Disney has partnered with Apple and will supply 150 3D videos at launch, the companies said.
Netflix, Spotify and Google have refused to replace their apps, particularly for headphones.
The Vision Pro can be tested by appointment at Apple stores in the U. S. and Canada. U. S. That’s because the device requires fine tuning and some education because “most consumers don’t revel in gesture controls,” Forrester Research wrote in a note.
According to analysts at Wedbush Securities, pre-orders have been plentiful and Apple expects to sell about 600,000 devices this year.
“For us, Apple’s purpose is for Vision Pro to work alongside the iPhone and other Apple devices for years to come,” said Wedbush’s Dan Ives.
NVIDIA Corp saw a record increase in its market price in January, the largest monthly increase on record, driven by rising optimism around synthetic intelligence (AI), positive analyst projections and the company’s announcement of expanded AI offerings.
The world’s most valuable chipmaker saw its market value expand by an unprecedented $296.52 billion to about $1.52 trillion, surpassing its previous high of $248.23 billion in gains seen in May 2023.
Last month, Nvidia’s stock climbed to new heights following the announcement of new desktop graphics processors and advancements in AI-related components and software.
Meanwhile, Microsoft, the world’s most valuable company, also enjoyed a robust increase in market value, adding $159.36 billion, largely attributed to the rising demand for its Azure cloud service.
The tech giant on Tuesday reported higher than estimated quarterly profit and revenue, although investors turned cautious about its rising costs that are expected to “increase materially” on a sequential basis.
As of Wednesday, Microsoft’s market value stood at $2.95 trillion, outstripping Apple Inc’s $2.85 trillion in market capital.
Meanwhile, Meta Platforms saw its market price last month, surpassing the $1 trillion mark for the first time since September 2021.
Meta’s inventory jumped more than 14% to a record high of $451 after Thursday’s bell, raising its market capitalization from $148 billion to $1. 16 trillion after the Facebook owner reported a 25% gain to $40. 1 billion for the December quarter and declared its first-ever dividend.
On the other end of the spectrum, Tesla Inc has become the worst-performing company among the world’s 20 best-performing corporations in terms of market capitalization, squandering about 24. 5% of its cost over the past month due to concerns about slowing growth. CEO Elon Musk has warned that sales expansion will be “significantly smaller” this year despite recent price cuts.
Samsung Electronics on Wednesday reported a 34% year-on-year drop in operating profit for the latest quarter, as weak demand for its televisions and other consumer electronics offset hard-earned gains in the PC chip market, which recovers slowly.
The South Korean tech giant said it expects its business to improve around 2024, predicting increased demand for semiconductors that will power artificial intelligence features increasingly used in smartphones, private computers and other products. However, macroeconomic uncertainties could continue to impact your business. in the short term.
Samsung’s operating profit was measured at 2. 8 trillion won ($2. 1 billion) for the three months through December, compared with 4. 3 trillion won ($3. 2 billion) during the same period. last year. Its full-year 2023 operating profit was 6. 5 trillion won ($4. 8 billion), down 85% from 2022 and the company’s lowest since 2008, when global markets were in a financial crisis.
While the company’s semiconductor department posted a loss of 14. 9 trillion won ($11 billion) in 2023, the losses narrowed in the fourth quarter as the DRAM returned to profit. The company announced in October that it plans to more than double its production capacity for complex components of high-bandwidth memory chips by 2024 to meet the demands created by AI.
“In 2024, the memory industry expects the market to continue despite various potential headwinds, in addition to interest rate policies and geopolitical issues,” Samsung said in a statement.
The company is also focused on boosting its sales of its latest smartphone, the Galaxy S24, which is built with an array of new features enabled by AI, including live translation during phone calls in 13 languages and 17 dialects.
The first human patient has received an implant from brain-chip startup Neuralink on Sunday and is recovering well, the company’s billionaire founder Elon Musk said.
“Initial results show promising neuron spike detection,” Musk said in a post on the social media platform X on Monday.
Spikes are activity by neurons, which the National Institute of Health describes as cells that use electrical and chemical signals to send information around the brain and to the body.
The US Food and Drug Administration had given the company clearance last year to conduct its first trial to test its implant on humans, a critical milestone in the startup’s ambitions to help patients overcome paralysis and a host of neurological conditions.
In September, Neuralink gained approval for enrollment in the human trial.
The study uses a robot to surgically place a brain-computer interface (BCI) implant in a region of the brain it is intended to move, Neuralink previously said, adding that its initial goal is to allow other people to access a computer’s cursor or keyboard. using only your thoughts.
The “ultra-thin” wires in the implants transmit signals to the participants’ brains, Neuralink said.
Neuralink’s first product would be Telepathy, Musk said in a separate post on X.
The startup’s PRIME is a test of its brain-computer wireless interface to compare implant and surgical robot protection.
Neuralink did not respond to a Reuters request for details.
The company has faced calls for scrutiny over its security protocols. Reuters reported earlier this month that the company was fined for violating U. S. Department of Transportation regulations. U. S. Customs and Drug Administration (DOT) related to the movement of hazardous materials.
The company was valued at about $5 billion last June, but four lawmakers in late November asked the U. S. Securities and Exchange Commission to investigate whether Musk had misled investors about protecting his generation after Veterinary records will show disorders with implants in monkeys, adding paralysis. seizures and swelling of the brain.
Musk wrote in a social media post on Sept. 10 that “no monkey has ever died from a Neuralink implant. “He added that the company had chosen “terminal” monkeys to minimize risks to healthy monkeys.
Pony Ma, chief executive officer and co-founder of Tencent Holdings, said the company’s video game business is facing major demanding situations from its competitors, but it is catching up with the advancement of synthetic intelligence (AI).
Ma, speaking at Tencent’s annual meeting at a Shenzhen stadium on Monday, said the company rests on its laurels at games as its competition scored more successes. Video games account for more than 30% of Tencent’s revenue.
Chinese media outlet Jiemian published portions of Ma’s speech online. A user with direct knowledge of the matter, who declined to be identified because he has the right to speak to the media, showed the content.
Ma’s speech highlights concerns about whether Tencent, the world’s largest gaming company and operator of China’s largest social network, WeChat, can protect its standing as China’s smartest tech company in an era of increased festival and disruptive new technologies.
Tencent did not respond to a request for comment on Tuesday.
“Gaming is our flagship business…But in the past year, we have faced significant challenges,” Ma said, “We have found ourselves at a loss, as our competitors continue to produce new products, leaving us feeling having achieved nothing.”
Ma added that the new games introduced through Tencent had not performed as the company had hoped.
Ma’s comments come at a time when Chinese game developers miHoYo and NetEase have overtaken Tencent with blockbuster titles such as “Genshin Impact” and “Eggy Party. ” While hits beyond Tencent such as “Honor of Kings” and “PUBG Mobile” continue to generate strong revenue, the products fall short of expectations.
When it comes to AI, Ma said Tencent has stood firm. “In spite of everything, we can keep up with the leading companies. We don’t see ourselves as the most advanced, but at least we’re not too far behind,” he said. .
Ma said Tencent deserves to focus now on integrating its “Hunyuan” style of AI into other business scenarios to empower it, rather than temporarily turning AI into products.
“In the short term, a year or two from now, I have a feeling that there will still be a lot of application of local AI,” he said.
Ma’s speech also focused on e-commerce. In recent years, Tencent has tried to make WeChat more like ByteDance’s Douyin short-video platform, which has generated huge profits through e-commerce streaming.
“WeChat is our most robust platform regarding daily user amount and its ecosystem. But it is 12 years of age… Now how we can find new sprouts from the old tree that is WeChat is the big question for us,” Ma said.
Bahrain will host the General Assembly of the Organization for Digital Cooperation (DCO) on Wednesday.
Chaired by Bahrain’s Minister of Transport and Telecommunications and Chairman of the DCO Council, Mohammed bin Thamer Al Kaabi, the event will discuss the organization’s plans and projects to promote virtual prosperity.
In a statement, the DCO said the event would be attended by ministers and officials representing the DCO’s 15 member states, such as DCO Secretary General Deemah AlYahya, high-level delegations of partners and observers, representatives of invited countries and foreign organizations.
They are expected to discuss strategic projects to foster global virtual cooperation, shed light on the state of the virtual economy, and tactics to overcome the demanding situations faced to achieve inclusive and sustainable expansion in this important sector.
Minister Bharani, Mohammed Al Kaabi, said: “We are honoured to host DCO’s 3rd General Assembly, bringing together Member States and prominent visitors to talk about achievements and launch new projects to achieve virtual prosperity and growth. “
Through joint external action and fruitful cooperation, the General Assembly will seek to promote an inclusive and sustainable expansion of virtual transformation and maximize gains for all countries through opportunities and projects to expand the virtual economy, he added.
As a founding member of the DCO, Bahrain is committed to sharing its wisdom and experience that have helped its economic growth, he said.
During Bahrain’s presidency in 2023, Qatar and Bangladesh joined the OECD as new member states. Manama presented the Digital Prosperity Awards to inspire cooperation and facilitate innovation and virtual transformation among member states.
Secretary-General AlYahya emphasized the importance of holding the General Assembly in Manama, saying: “Digital cooperation is essential for harnessing the benefits arising from the opportunities presented by the digital economy.”
“The Third General Assembly will serve as a strategic platform for the engagement of Member State governments, the personal sector and civil society in progressing a roadmap for the current year. This will address the development of demanding situations and seize opportunities to facilitate virtual prosperity for all. ,” she said.
He added that he plans to meet with all representatives of the DCO observer members, partners and visitors in Manama to review the achievements of the DCO in 2023 and discuss the projects for 2024, thus helping to propel the organization towards achievement. the objectives defined in its strategic roadmap for 2030.
The General Assembly will explore the expansion of markets and their impact on the virtual economy; the price of knowledge as a strategic resource in the virtual age and how to use it well to achieve its expansion; and tactics to achieve a sustainable virtual economy that contributes to improving the quality of life and emphasizes the central role of the human being as an essential detail of the progression process.
The General Assembly will discuss the DCO’s plan for 2024 and the new projects it will launch as a component of its 2030 strategic roadmap to advance global virtual cooperation towards an inclusive and sustainable virtual economy. He will also talk about the monetary and administrative reports submitted through the General Secretariat of the organization.
The last DCO General Assembly was held in Riyadh, Saudi Arabia, in February 2023. The DCO brings together the ministries of communications and data generation of 15 countries: Bahrain, Bangladesh, Cyprus, Djibouti, Gambia, Ghana, Jordan, Kuwait, Morocco, Nigeria. , Oman, Pakistan, Qatar, Saudi Arabia and Rwanda.
Together, OECD member states make up more than $3. 3 trillion in GDP and a market of approximately 800 million people, more than 70% of whom are under the age of 35.