San Francisco, Jul 31 (AP/UNB) — Apple’s iPhone sales are still sputtering while the company tries to offset the decline by milking more money from digital services such as music.
The latest evidence of the iPhone’s waning popularity had been expected. Even so, the confirmation in Tuesday’s fiscal third-quarter earnings report underscored the challenges facing a company that has been riding the smartphone revolution for the past decade.
The iPhone’s downturn is the main reason Apple’s profit for the April-June period fell 13% to $10 billion.
The good news is Apple has several ways it can still make money from the 900 million iPhones in use today. Besides selling new models to current iPhone owners after the current devices eventually wear out, Apple has positioned itself to make billions of dollars more from music, video and gaming subscriptions, maintenance plans and commissions from apps selling their own wares on iPhones.
The bad news is that Apple has still been relying on the iPhone for more than half its revenue so this year, and the company hasn’t proven it can be as adept peddling digital services as it has been making sleek devices. For instance, Apple’s 4-year old music streaming service still lags Spotify. Apple is preparing to launch a video streaming service more than a decade after Netflix pioneered the concept.
And a recently opened U.S. Justice Department investigation is expected to look into whether Apple unfairly favors its own services and gouges others through its app store, raising the specter of changes that could further depress its revenue.
“Apple has become a victim of its own success and there also appears to be a lack of urgency,” Chatham Road Partners analyst Colin Gillis said. “Apple is still the iPhone company and it may always end up being the iPhone company.”
The lingering doubts hanging over Apple are one reason why Apple’s stock price remains well below its peak of $233.47 reached last October, even as the rest of the market has soared to record highs. The company’s shares gained 4% to $217.55 in extended trading after the release of its numbers for the April-June period.
The rally may have stemmed from another encouraging sign that emerged in the quarterly report. Apple’s total sales in China decreased by 4% in the quarter compared with a year ago, after plunging 25% during the first half of the company’s fiscal year. That dramatic improvement eased fears that the Trump administration’s trade war in China might trigger a consumer boycott of Apple’s products in the country in retaliation.
“We couldn’t be happier with the progress,” Apple CEO Tim Cook said during a Tuesday conference call. He credited both Apple’s own price cuts and economic stimulus programs rolled out by China’s government to counteract the effects of U.S. tariffs.
Worldwide revenue from iPhones during the quarter totaled $26 billion, a 12% decrease from the same time last year. It marks the third straight quarter of eroding iPhone sales, something that has only happened once before.
Apple is forecasting its total revenue for the July-September period will fall from last year, a sign that it is bracing for yet another drop in iPhone sales. That’s particularly striking because Apple typically gets a big boost from the release of new iPhone models in late September. But the mid-range projection of $62.5 billion of revenue for the period was better than the $60.9 billion anticipated by analysts, providing another sign of hope for investors betting on Apple’s resilience.
Even with the iPhone in decline, Apple remains a financial powerhouse. Total revenue grew 1% from last year to $53.9 billion.
The services division remains the biggest area of growth, with revenue surging 13% from last year to $11.5 billion in the past quarter.
Seoul, July 31 (Xinhua/UNB) -- Samsung Electronics, South Korea's tech giant, saw its operating profit halve in the second quarter on the continued slump in semiconductor and smartphone businesses, the company said Wednesday.
Operating profit was 6.6 trillion won (5.6 billion U.S. dollars) in the April-June quarter, down 55.6 percent from the same period of last year. It was slightly up from the preliminary reading of 6.5 trillion won (5.5 billion U.S. dollars) announced earlier this month.
Compared with Samsung's record quarterly high of 17.6 trillion won (14.9 billion U.S. dollars) in the third quarter of last year, the second-quarter figure was just one-third of it.
Revenue declined 4 percent over the year to 56.13 trillion won (47.5 billion U.S. dollars) in the June quarter, and net income tumbled 53.1 percent to 5.18 trillion won (4.4 billion U.S. dollars).
The earnings drop came amid the continued downturn in business cycle of the global semiconductor industry that led to lower chip price.
Adding to the concern, Japan tightened regulations early this month on its export to South Korea of three materials vital to memory chips and display panels, which are the mainstay of Samsung earnings.
The ratio of operating profit to revenue for Samsung, which gauges profitability, came to 11.8 percent in the second quarter, the lowest since the third quarter of 2016.
Samsung's chip business recorded an operating profit of 3.4 trillion won (2.9 billion U.S. dollars) on revenue of 16.09 trillion won (13.6 billion U.S. dollars) in the second quarter. It was the lowest operating profit in almost three years.
The ratio of operating profit to revenue in the chip-making unit was 21.1 percent in the second quarter, the lowest in five years.
Samsung said in a statement that the weakness and price declines in the memory chip market persisted as effects of inventory adjustments by major datacenter customers in the previous quarters continued.
The IT and mobile division, which produces smartphones, logged an operating profit of 1.56 trillion won (1.3 billion U.S. dollars) on revenue of 25.86 trillion won (21.9 billion U.S. dollars).
The operating profit was down 41.6 percent from a year ago on an increased marketing cost and the weaker-than-expected sale of Galaxy S10 smartphones.
Samsung said the mobile business was overall weighted down by slower sales of flagship models and an increased marketing expense.
The display panel unit reported an operating profit of 750 billion won (635 million U.S. dollars) on revenue of 7.62 trillion won (6.4 billion U.S. dollars) turning around from an operating loss in the previous quarter.
The turnaround was attributed to a one-time gain and a gradual recovery in customer demand, the tech company said without elaborating on what the one-time gain was.
The consumer electronics business posted an operating profit of 710 billion won (601 million U.S. dollars) on revenue of 11.07 trillion won (9.4 billion U.S. dollars) in the second quarter.
The profit was up from 510 billion won (431 million U.S. dollars) tallied a year earlier thanks to strong sales of new appliance products and improved profitability of refrigerators and washing machines, Samsung said.
Samsung said it was facing challenges from uncertainties not only in business areas but also from changes in the global macroeconomic environment.
The South Korean company noted that it will continue to invest in future technologies, including 5G, system chips, artificial intelligence and automotive components for longer-term growth.
Samsung's capital expenditure in the second quarter stood at 6.2 trillion won (5.2 billion U.S. dollars), including 5.2 trillion won (4.4 billion U.S. dollars) spent on semiconductors and 500 billion won (423 million U.S. dollars) on display panels.
Total capital expenditure in the first half was 10.7 trillion won (9.1 billion U.S. dollars), including 8.8 trillion won (7.4 billion U.S. dollars) for semiconductors and 800 billion won (677 million U.S. dollars) for display panels.
For the first six months of this year, Samsung's revenue reduced 8.9 percent to 108.51 trillion won (91.8 billion U.S. dollars) compared with the same period of last year.
The operating profit plunged 58 percent over the year to 12.83 trillion won (10.9 billion U.S. dollars) in the first half.
Dhaka, Jul 27 (UNB)- Vivo is going to launch its mid-range smartphone Vivo S1 with `Helo FullView Display’ in Bangladesh. It is the company's first smartphone under the S series lineup and packs an In-Display Fingerprint Scanning Technology, 32MP AI Selfie Camera, 4500mAh big battery with Dual-Engine Fast Charging, AI Triple Rear Camera, and stylish design with a choice of Diamond Black and Skyline Blue color.
Vivo S1 will go on sale starting August 2 and the pre-bookings will kick off tomorrow on August 28. The phone will be available for 28,990 BDT.
Vivo S1 houses 6GB RAM memory and 128GB of internal storage which can be expanded up to 256GB via micro SD card.
This new phone features 6.39-inch FHD+ display which is called `Helo FullView Display’ by the company. It supports 1080x2340 pixels resolution, 32MP front camera and 16MP, 8 MP and 2 MP AI triple rear camera. Vivo S1 runs on Android Funtouch OS 9.0 with octa-core processor.
Connectivity options on the phone include 4G VoLTE, Wi-Fi, FM, Bluetooth v5.0, GPS/ A-GPS, and Micro-USB with USB OTG support.
On the eve of the launching, Managing Director of vivo Bangladesh Mr. Duke said, “We always try to bring new phones with highest possible innovation in affordable price. Vivo S1 is one of the best example of our that kind of effort.
Customers will get one of the stylish and effective functioning phone by purchasing Vivo S1.”
Dhaka, Jul 25 (UNB) - O2 has announced it plans to turn on its 5G mobile network in October, reports the BBC.
It intends to launch the next-generation service in Belfast, Cardiff, Edinburgh, London, Slough and Leeds and then expand to a total of 50 towns and cities by summer 2020.
It will be the last of the UK's network coverage providers to roll out 5G.
However, it will be the only one to do so without using equipment from the embattled Chinese telecoms equipment-maker Huawei.
O2 is owned by Spain's Telefonica, which has used Huawei's infrastructure in some of its other networks.
Moreover, O2 trialled some of Huawei's 5G radio access network gear at cell towers in the UK before deciding to opt for rival products from two vendors it had already used to deliver 4G.
"We respect all three operators, they were thorough in their submissions," O2's chief executive Mark Evans told the BBC.
"But we were convinced that the best choices for us at this time are our current partners, which are Ericsson and Nokia."
The announcement comes the same week that the UK formally postponed a decision on whether to ban or allow Huawei to be used within any of the UK's 5G networks.
The US has been putting pressure on the government to exclude the Chinese firm claiming that it poses a risk to national security - something that Huawei denies.
In April, it had seemed that former Prime Minister Theresa May had decided that any threat could be managed.
But a move by Washington to restrict other companies' trade with Huawei and the anticipation of Boris Johnson's cabinet reshuffle led to a government report into the future of UK's telecoms sector being published without a final decision having been taken on the matter.
O2 said that Huawei's involvement in the bidding process had helped it strike a more competitive deal with Ericsson and Nokia, but it had not closed the door on buying 5G products from the Shenzhen-based company in the future.
"The least we need is clarity of who we can work with and under what circumstances," added Mr Evans.
"Not having that clarity is frustrating because that undoubtedly could slow us down in either our decision making or our execution.
"So, I would still encourage the government to conclude their review and finalise their judgement ASAP."
O2 would also be affected by the decision since it plans to share some of Vodafone's 5G cell sites, where Huawei products are being used.
Shopping and entertainment
O2 has said that it will initially focus on providing 5G to sites where capacity is stretched.
These will include train stations, entertainment and sports venues - including the O2 Arena in London - and popular retail destinations, such as Edinburgh's Princes Street and Leeds' White Rose Shopping Centre.
It said consumers can expect faster download speeds and greater reliability if they purchase a compatible handset.
But Mr Evans said O2 also hopes companies will be early adopters, and had already struck a deal with Northumbrian Water.
"We're working with them on 5G smart sensors so that they can use that to detect leakage and water quality, and manage their network better," he said.
BT and Vodafone already offer 5G services of their own and Three is set to follow in August.
But one industry-watcher said that O2 should not be at a disadvantage by being the last to act.
"There's been a lot of talk about speed, but actually there aren't the apps and services there for customers to tap into that in any great way yet," said Kester Mann from the consultancy CCS Insight.
"So, these are just the very first steps in a 5G marathon."
O2's 5G news coincided with the release of its first-half results.
They revealed a 5.1% annual rise in sales, totalling £2.98bn ($3.8bn).
Its number of customers - including those signed to Giffgaff, Tesco Mobile, Sky Mobile and Lycamobile, which piggyback O2's network - rose by 3.6% to 33.3 million accounts.
Mr Evans also used the opportunity to criticise Ofcom's departing chief, Sharon White.
He said the regulator should have ensured 5G wave-bands were divided up so that each operator got a contiguous block of spectrum rather than holding auctions that are set to leave most firms with fragmented frequency ranges.
The result, he explained, was that 5G's performance might not be as good as it could have been.
"The regulator hasn't got the balance right for our sector," he added.
"[She] has been very much focused, understandably, on providing customers value.
"I do believe, though, however, that the regulator should also look at how they can support or enable the industry to accelerate investment and make the best use of what we have."
He acknowledged, however, that Ofcom is at least consulting on whether the spectrum can be "defragmented" by encouraging the networks to trade the blocks among themselves post-auction.
Dhaka, Jul 25 (UNB) - Samsung's first foldable smartphone will go on sale in September after problems with the device delayed its initial release, reports the BBC.
The April launch of the Galaxy Fold was postponed after early reviewers reported broken screens.
Samsung said it had made "improvements" to the nearly $2,000 (£1,603) device which would be sold in "select markets".
The firm has been racing to launch a folding smartphone before its rivals.
"Samsung has taken the time to fully evaluate the product design, make necessary improvements and run rigorous tests," the company said in a statement.
Improvements include extending a protective layer to make it clear it is not meant to be removed, as well as strengthening the hinge area with new protection caps.
One explanation for the broken screens appears to have been that some reviewers removed a film which they thought was a typical protective layer that came with the phone when first bought.
The defects with the device proved a source of embarrassment for Samsung which has seen declining smartphone sales and faces growing competition from rivals including China's Huawei.
Huawei became the second largest smartphone seller in the world last year and plans to launch its folding smartphone in September.
The company also pushed back the release of its foldable phone, saying it wanted to conduct extra tests following the screen problems with Samsung's Galaxy Fold.
Earlier this year, Chinese technology firm Xiaomi unveiled a prototype of a folding smartphone that transforms into a tablet.