Science & Technology
Apple forecasts another drop in revenue, proclaims iPhone production problems over
Apple Inc (AAPL.O) on Thursday forecast that revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after COVID-related shutdowns.
While striking an optimistic tone on sales of services and iPhones, CEO Tim Cook said an uncertain economy is expected to hurt categories like gaming and digital advertising, Reuters reported on Friday.
Overall, Apple's leaders tried to reassure investors that despite the firm being buffeted by up-and-down sales cycles for its flagship device and vulnerable to supply chain shocks, the world's largest listed company remains on a steady - if somewhat slower - rise. And in the immediate aftermath of some of the company's worst financial results in years, at least some investors seemed to give Cook the benefit of the doubt, imposing only modest share price declines.
For the just-ended quarter, Apple's profits missed Wall Street expectations for the first time since 2016, dragged down by iPhone sales falling for the first time since 2020.
The stock was down about 2% after Chief Financial Officer Luca Maestri said that iPhone sales were likely to improve compared with the quarter ended Dec. 31. That did not quite erase a 3.7% gain during regular trade.
Amazon.com (AMZN.O) and Alphabet (GOOGL.O) also fell about 4% after reporting results. They also had gained during regular trade.
Apple sales fell 5% to $117.2 billion and were down in every part of the world in the quarter. Sales from each product category dropped, except for gains in services and iPads. Earnings per share were $1.88.
Analysts had expected sales of $121.1 billion and profits of $1.94 per share, according to IBES data from Refinitiv. In an interview, Cook told Reuters that the production disruptions that plagued Apple's key quarter were now over.
"Production is now back where we want it to be," he said.
During its fiscal first quarter ended Dec. 31, Apple faced a wave of challenges that left Wall Street expecting lower sales. Chief among those were supply chain pressures when COVID lockdowns at a production facility in Zhengzhou, China, slowed production of iPhone 14 Pro and Pro Max devices, both premium priced models that would traditionally help drive Apple's margins higher.
Cook said the lockdowns in China created a dual challenge where both supply and demand were constrained, with greater China sales falling 7% to $23.9 billion.
But product snags are behind Apple now. "They still feel demand will be soft, but they've rectified production, which means that if demand does go up unexpectedly, they can ramp" to meet it, said Ben Bajarin of analyst firm Creative Strategies.
Science & Technology
Russia fines Google more than the world’s total GDP over YouTube bans
Russia has fined Google $2.5 decillion after the US tech giant took action against pro-Kremlin TV channels on YouTube following Moscow’s invasion of Ukraine.
Russia imposed a daily fine four years ago - a fine that has since swelled to an unprecedented level - ($20,000,000,000,000,000,000,000,000,000,000,000 - a 33-digit figure).
To put this into perspective, global GDP reaches an estimated $110 thousand billion (12-digit figure), according to the IMF.
Speaking to Russia’s TASS news agency, one expert, Roman Yankovsky from the HSE Institute of Education, said Google “clearly will not pay this penalty, and the Russian Federation will not be able to recover this money from the company."
Euronews reported that a short calculation shows that he is right.
Google's holding company, Alphabet, has a market capitalisation of slightly more than $2 trillion. Even with earnings of $80.54 billion from the last quarter, the tech giant doesn’t seem to be able to afford to pay the fine.
Google first barred pro-Moscow channel Tsargrad TV, which is owned by oligarch Konstantin Malofeev, four years ago.
At the time, Google was fined a daily penalty of 100,000 roubles and warned that amount would double every 24 hours if it went unpaid.
The original fine has been compounded by further penalties after Google eventually blocked a total of 17 Russian TV channels as a result of international sanctions, The Telegraph reported.
The tech giant now owes a staggering $2.5 decillion.
Science & Technology
Apple launches new iPad mini with AI features
Apple said it would roll out the first set of AI features in the U.S. version of the English language this month through a software update with iPadOS 18.1.
Apple on Tuesday launched its new generation of the iPad mini packed with AI features including writing tools and an improved Siri assistant, as the iPhone maker races to boost its devices with artificial-intelligence capabilities, Reuters reported.
The new iPad mini is powered by Apple's A17 Pro chip, which is used in the iPhone 15 Pro and Pro Max models. With a six-core central processing unit, the A17 Pro would boost CPU performance by 30% compared to the current generation iPad minis and is central to running Apple Intelligence, Apple's AI software.
Apple said it would roll out the first set of AI features in the U.S. version of the English language this month through a software update with iPadOS 18.1.
The features will be available for iPads with A17 Pro or M1 chips and later generations, Apple said, adding it will roll out additional features including image-generation tools, Genmoji and ChatGPT-powered capabilities over the next several months, read the report.
Apple in September unveiled its long-awaited, AI-boosted iPhone 16 lineup, but with the AI features still in test mode, the company failed to excite some investors while early sales data raised some questions around demand.
Still, research firm Canalys on Monday said the iPhone 16 would help Apple's sales in the fourth quarter and drive momentum into the first half of 2025, after Apple reached a record high third-quarter shipments.
The iPad mini, starting at $499, is available for pre-orders starting on Tuesday and will begin arriving to customers and Apple store locations next week, Apple said.
Science & Technology
Iran sends satellites to Russia for rocket launch
In September, Iran carried out its second satellite launch this year using a rocket built by its Revolutionary Guards
Iran has sent two locally made satellites to Russia to be put into orbit by a Russian space vehicle, the semi-official news agency Tasnim reported on Saturday, in the latest space cooperation between the two U.S.-sanctioned countries.
The development of Kowsar, a high-resolution imaging satellite, and Hodhod, a small communications satellite, is the first substantial effort by Iran's private space sector, the report said.
Russia sent Iranian satellites into orbit in February and in 2022, when U.S. officials voiced concern over space cooperation between Russia and Iran, fearing the satellite will not only help Russia in Ukraine but also help Iran monitor potential military targets in Israel and the wider Middle East, Reuters reported.
Kowsar could be used in agriculture, natural resource management, environmental monitoring, and disaster management, Tasnim said.
Hodhod is designed for satellite-based communications and could be used in remote areas with little access to terrestrial networks.
In September, Iran carried out its second satellite launch, this year using a rocket built by its Revolutionary Guards.
The launch came as the United States and European countries accuse Tehran of transferring ballistic missiles to Russia that could be used in its war with Ukraine. Iran has denied this.
-
Business5 days ago
Private sectors of Afghanistan, Kazakhstan sign contracts worth $100 million
-
Sport5 days ago
Rashid Khan retained by Gujrat Titans ahead of IPL 2025 auction
-
Latest News5 days ago
DAB plans to set up electronic payments in Afghanistan
-
Regional5 days ago
Iran preparing strike on Israel from Iraqi territory within days, Axios reports
-
Regional5 days ago
Seven killed, dozens injured in blast in Pakistan’s Balochistan province
-
Sport3 days ago
Afghanistan to tour Zimbabwe for all-format series
-
Latest News4 days ago
UN expert calls for comprehensive, rights-focused action plan for Afghanistan
-
Latest News4 days ago
Uzbekistan, EU envoys meet to discuss Afghanistan