Tag Archives: Losing
Its iPhone sales grew by 20% in the quarter, while services revenue increased to $ 9.6bn.
Apple said revenue in its wearables product line, which includes the Apple Watch, Air Pods and Beats, had grown to $ 10bn over the past four quarters.
The company said Apple Pay was now available in 24 markets, supported by 4,900 bank partners, while its services segment, which includes digital content and services, AppleCare, Apple Pay, licensing and other services, reported revenue of $ 9.6bn, up 31% compared with the third quarter of 2017.
In a transcript of the earnings call posted on the Seeking Alpha financial blogging site, Cook claimed that the Apple App Store for IoS apps was more profitable for app developers than Google’s Android Play store. The Apple App Store, which launched a decade ago with the company’s first iPhone, has earned developers $ 100bn, he claimed.
When asked about how frequently existing customers were replacing their iPhones, especially given that cheap iPhone batteries are now readily available, Cook admitted some replacement cycles were lengthening.
“The major catalyst for that was probably the subsidy plans becoming a much smaller percentage of total sales around the world than they were at one time, so some are lengthening. But I think for us, the thing that we always have to do is come out with a really great innovative product, and I think iPhone X shows that when you deliver a great innovative product, there are enough people who would like that and it can be a really good business, so that’s how to look at that.”
Development efforts to enhance user experience
One of the areas Cook discussed during the earnings call was how Apple was working to make application development on MacOS more closely aligned with iOS, to stimulate application compatibility and support a similar user experience across Macs, iPads and iPhones.
“We want to empower our developers to bring their innovative apps from the iOS ecosystem to the Mac with minimal effort,” he said. “Though iOS and MacOS are different, they’ve shared common foundations from the very beginning, so we’ve taken key frameworks from iOS and adapted them to specific Mac behaviours like using a mouse or trackpad, resizing windows, copy and paste, and drag and drop.”
Cook also highlighted some of Apple’s development efforts to speed up the coding of machine learning (ML) and augmented reality (AR) applications.
“Developers will be able to build even more intelligent apps with just a few lines of code using the power of machine learning with Core ML 2 and Create ML,” he said.
Cook also introduced the third release of its ARKit augmented reality coding framework.
“We believe AR can enable profound experiences. With ARKit 2, iOS 12 will provide an even more powerful platform to make dynamic AR apps, integrating shared and persistent AR experiences, object detection and image tracking,” he said.
Cook claimed Apple was unlikely to be affected by the US trade tariffs on steel and aluminium being put in place by the Trump administration and the risk of a trade war, but he said the company was assessing the potential impact of another proposed tariff.
“The fourth tariff, which includes goods valued at $ 200bn, also focuses on goods that are imported from China. We’re evaluating that one. It’s a tedious process, because you not only have to analyse the revenue products, but you also have to analyse the purchases you’re making through other companies that are not related to revenue,” he said.
Losing market share to Huawei
Although Apple posted a record quarter, analyst Canalys said Apple had dropped to third place in terms of market share. The second largest smartphone maker is now Huawei, while Samsung is the market leader.
Mo Jia, a Canalys analyst based in Shanghai, said Huawei’s strategy had evolved significantly over the past six months. It shipped seven million of its latest flagship products – the P20 and P20 Pro.
“Huawei has accelerated its adoption of new technologies this year, focusing on AI [artificial intelligence] with its NPU chipsets and on imaging with its triple-camera setup,” said Jia. “Its efforts have paid off. The P20 and P20 Pro sold faster than their predecessors in their launch quarter. Outside of China, the P20 and P20 Pro more than doubled the shipments of the P10 and P10 Plus.”
SAN FRANCISCO/LONDON (Reuters) – Opinion polls published on Sunday in the United States and Germany indicated that a majority of the public were losing trust in Facebook over privacy, as the firm ran advertisements in British and U.S. newspapers apologizing to users.
Fewer than half of Americans trust Facebook to obey U.S. privacy laws, according to a Reuters/Ipsos poll released on Sunday, while a survey published by Bild am Sonntag, Germany’s largest-selling Sunday paper, found 60 percent of Germans fear that Facebook and other social networks are having a negative impact on democracy.
Facebook founder and chief executive Mark Zuckerberg apologized for “a breach of trust” in advertisements placed in papers including the Observer in Britain and the New York Times, Washington Post and Wall Street Journal.
“We have a responsibility to protect your information. If we can’t, we don’t deserve it,” said the advertisement, which appeared in plain text on a white background with a tiny Facebook logo.
The world’s largest social media network is coming under growing government scrutiny in Europe and the United States, and is trying to repair its reputation among users, advertisers, lawmakers and investors.
This follows allegations that the British consultancy Cambridge Analytica improperly gained access to users’ information to build profiles of American voters that were later used to help elect U.S. President Donald Trump in 2016.
U.S. Senator Mark Warner, the top Democrat on the Senate Intelligence Committee, said in an interview on NBC’s Meet the Press” on Sunday that Facebook had not been “fully forthcoming” over how Cambridge Analytica had used Facebook data.
Warner repeated calls for Zuckerberg to testify in person before U.S. lawmakers, saying Facebook and other internet companies had been reluctant to confront “the dark underbelly of social media” and how it can be manipulated.
“BREACH OF TRUST”
Zuckerberg acknowledged that an app built by a university researcher had “leaked Facebook data of millions of people in 2014”.
“This was a breach of trust, and I’m sorry we didn’t do more at the time,” Zuckerberg said, reiterating an apology first made last week in U.S. television interviews.
Facebook shares tumbled 14 percent last week, while the hashtag #DeleteFacebook gained traction online.
The Reuters/Ipsos online poll found that 41 percent of Americans trust Facebook to obey laws that protect their personal information, compared with 66 percent who said they trust Amazon.com Inc, 62 percent who trust Alphabet Inc’s Google, 60 percent for Microsoft Corp.
The poll was conducted from Wednesday through Friday and had 2,237 responses. (reut.rs/2G9hvrv)
The German poll published by Bild was conducted by Kantar EMNID, a unit of global advertising holding company WPP, using representative polling methods, the firm said. Overall, only 33 percent found social media had a positive effect on democracy, against 60 percent who believed the opposite.
It is too early to say if distrust will cause people to step back from Facebook, eMarketer analyst Debra Williamson said in an interview. Customers of banks or other industries do not necessarily quit after losing faith, she said.
“It’s psychologically harder to let go of a platform like Facebook that’s become pretty well ingrained into people’s lives,” she said.
Data supplied to Reuters by the Israeli firm SimilarWeb, which measures global online audiences, indicated that Facebook usage in major markets and worldwide remained steady over the past week.
“Desktop, mobile and app usage has remained steady and well within the expected range,” said Gitit Greenberg, SimilarWeb’s director of market insights. “It is important to separate frustration from actual tangible impacts to Facebook usage.”
Additional reporting by William James in London, Dustin Volz in Washington D.C. and Chris Kahn in New Editing by Kevin Liffey