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In Microsoft's demo in front of reporters, the ChatGPT-like technology embedded in the company's Bing search engine analyzed earnings reports from Gap and Lululemon . "Bing AI got some answers completely wrong during their demo. Brereton identified possible factual issues in the Microsoft demo in its responses about vacuum cleaner specifications and travel plans to Mexico in addition to the financial errors. When it came time to demo Bing AI's response to a query on corporate earnings, there were some problems. These are screenshots from Microsoft's demo:
"For iPhone, we expect our March quarter year-over-year revenue performance to accelerate relative to the December quarter year-over-year revenue performance," Maestri said. Before Thursday, analysts had expected Apple to guide to about $98 billion in sales in the company's fiscal second quarter. Last year, in the March quarter, Apple reported $97.28 billion in sales. In other words, December 2022's year-over-year revenue performance was even worse than it looked. Mac sales will be down at least 10% in the March quarter, based on these comments, but will likely improve.
Apple reports earnings after the bell Thursday
  + stars: | 2023-02-02 | by ( Kif Leswing | ) www.cnbc.com   time to read: +3 min
Apple reports fiscal first-quarter earnings after the bell. Revenue : $121.19 billion: $121.19 billion Earnings per share : $1.94 per share: $1.94 per share iPhone revenue : $68.29 billion: $68.29 billion iPad revenue : $7.76 billion: $7.76 billion Mac revenue : $9.63 billion: $9.63 billion Other products revenue : $15.23 billion: $15.23 billion Services revenue: $20.67 billionThe primary focus for investors will be the company's December quarter revenue. However, Apple management usually gives a few data points that give analysts a sense of how the quarter is going. Analysts expect Apple to report $98 billion in sales in the March quarter, or slight year-over-year growth. Several data points in the December quarter, including Apple's own App Store payouts, suggest a slowdown in App Store growth.
Semiconductor stocks rose on Wednesday on the back of AMD's strong earnings report and following the Federal Reserve's decision to increase the federal funds rate by 0.25 percentage point. Although the Fed said it expects ongoing rate increases, it also said that inflation has eased somewhat, causing a rally in riskier stocks such as chipmakers. The VanEck Semiconductor ETF , which tracks a basket of chip stocks, was up 4.7% on Wednesday. On Tuesday, AMD reported December quarter earnings that beat expectations. Still, AMD's report had a much rosier outlook on the overall semiconductor market than Intel's earnings report in January, which suggested collapsing demand for its products.
AMD reported fourth-quarter earnings on Tuesday, beating Wall Street expectations for sales and profit, but guided analysts to a 10% decline in year-over-year sales in the current quarter. AMD's sales rose 44% in 2022. But its client group, which includes sales from PC processors, was down 51% year-over-year because of a slumping PC market, AMD said. The global PC market is in a protracted slowdown, according to estimates. AMD expects that the segments with PC chips and graphics processors will continue to decline in the current quarter, but data center and embedded sales will grow.
While Intel is expecting declines across the board, AMD's data center business is growing with the introduction of a new chip, and its pandemic-era acquisition of specialty chip-maker Xilinx is also contributing growth. AMD's data center business is growing strongly, however, up 42% on an annual basis to $1.7 billion. AMD released its latest data center chips, the fourth-generation Epyc processors, in November. AMD expects its data center business to grow this year while PC chips and graphics processors for gaming decline. AMD's data center business faces tough macroeconomic conditions too, but on Tuesday, Su signaled to investors that its gains would come at Intel's expense.
Apple CEO Tim Cook speaks at an Apple special event at Apple Park in Cupertino, California on September 7, 2022. (Photo by Brittany Hosea-Small / AFP) (Photo by BRITTANY HOSEA-SMALL/AFP via Getty Images)Analysts expect Apple to post its first year-over-year revenue decline since 2019's March quarter when it reports earnings on Thursday. Apple gave a rare warning to investors that month explaining that production issues would result in lower shipments than "previously expected." The smartphone market saw an 18% decline in shipments in the fourth quarter, according to IDC, the worst decline ever recorded by the market research firm. The PC market fell 28% in the fourth quarter, according to the company.
Tuesday General Motors is set to report earnings before the bell, followed by a conference call at 8:30 a.m. What history shows: Data from Bespoke Investment Group shows GM beats earnings expectations 85% of the time. McDonald's is set to report earnings before the bell, with company leadership set to hold a call 8:30 a.m. What history shows: Qualcomm has either beaten or matched analysts' earnings expectations in the last 32 quarters, according to FactSet. Alphabet is set to report earnings after the close, followed by a conference call at 4:30 p.m.
Intel guided for about $11 billion in sales in the March quarter, which would be a 40% year-over-year decline. Gross margin will be 34.1%, a huge decrease from the 55.2% in the same quarter in 2021, Gelsinger's first at the helm. Dropoff in gross marginUnderpinning all of this is that Intel's gross margin continues to decline, hurting the company's profitability. Intel said that its gross margin would be hit by 400 basis points, or 4 percentage points, because of factories running under load because of soft demand. "We have a number of initiatives under way to improve gross margins and we're well under way.
On Wednesday, Microsoft announced it will eliminate 10,000 employees, reducing its workforce by 5%, and Amazon began conducting layoffs that will eventually slash 18,000 jobs. Microsoft and Amazon are joining tech industry peers including Alphabet and Meta which have also cut staff in recent months. But an underappreciated factor is how rapidly tech companies ramped up hiring over the last two years. In 2020, widespread Covid lockdowns made internet applications more important to people, supercharging business for many tech companies. Apple is a major exception: It did not appreciably increase its rate of hiring over the last two years, and also has not announced any layoffs.
Apple CEO Tim Cook will receive a pay cut in 2023 to $49 million in total compensation, the company said in a filing with the SEC. Cook requested the change, Apple said in the filing, following a shareholder vote on his pay package. Institutional Shareholder Services recommended that Apple shareholders vote against Cook's pay package at last year's annual meeting. The number of actual shares of Apple stock that Cook vests depends on Apple's performance versus the S&P 500. Since Cook took over as CEO in 2011, Apple stock has returned 1,212% versus 290% for the S&P 500, Apple said.
Apple announced a big update to Apple Maps on Wednesday that will add new photos, buttons and promotions to the app on business pages. The move will encourage Apple Maps users to seek more than just directions by offering new information and photos about business locations. For example, businesses on Apple Maps can now display a "Showcase," or a module with a big picture and the ability to highlight deals or limited-time promotions. Apple Maps will also let businesses add buttons to the top of their profile to let people order or make reservations. Here are some changes coming to the Apple Maps app:
(Photo by Justin Sullivan/Getty Images)Apple could release a MacBook Pro laptop with a touchscreen as soon as 2025, according to a report from Bloomberg. More recently, he was asked at a conference whether Apple would release a touchscreen laptop, and he said, "who's to say?" Apple's Mac business doesn't need a shot in the arm, though. Apple's Mac business generated $40.1 billion in revenue during the company's fiscal 2022, up 14% from 2021. A touchscreen Mac would require significant software changes to accept finger taps, which require larger buttons, instead of mouse clicks.
Apple's latest App Store revenue stat shows slowing growth
  + stars: | 2023-01-10 | by ( Kif Leswing | ) www.cnbc.com   time to read: +3 min
This year's disclosure suggests that Apple's App Store growth has plateaued. If all developers paid a 30% cut to Apple, Apple's App Store grossed over $85 billion in 2022, based on CNBC analysis. Apple's stat includes anyone who subscribes to a service through Apple's App store, not just its own first-party services like Apple TV+ and Music. Morgan Stanley analyst Erik Woodring has been following slowing App Store growth. "While App Store growth remains near its lowest levels in history, and we acknowledge the global consumer remains challenged, we are encouraged to see growth trajectory continue to improve after bottoming in September," Woodring wrote.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNew California transparency law reveals what Big Tech pays workersCNBC's Kif Leswing joins 'Power Lunch' to discuss a new California pay transparency law that requires companies to report what some of the biggest companies in the world are paying employees.
That means it's now possible to know the salaries top tech companies pay their workers. California is the latest and biggest state to enact a pay transparency law, joining Colorado and New York City, which had previously passed similar policies. California's pay transparency law is intended to reduce gender and race pay gaps and help minorities and women better compete in the labor market. For example, people can compare their current pay with job listings with the same job title and see if they're being underpaid. In a comment to CNBC, a Meta spokesperson said, "To ensure fairness and eliminate bias in our compensation systems, we regularly conduct pay equity analysis, and our latest analysis confirms that we continue to have pay equity across genders globally and by race in the US for people in similar jobs."
Apple hikes the price of iPhone battery replacements by $20
  + stars: | 2023-01-03 | by ( Kif Leswing | ) www.cnbc.com   time to read: +2 min
Out-of-warranty iPhone owners will soon have to spend more to replace their batteries at an Apple store, Apple said this week. Battery price increases will also apply to older iPhones, some iPads, MacBook laptops and in some international markets as well. Its solution to customers at the time was to offer battery replacements for $29, versus the older price of $79. The battery replacements were massively popular and lots of iPhone owners opted for the cheap tuneup, straining Apple's retail stores before the program ended and prices rose again. In 2019, Apple CEO Tim Cook pointed to the $29 battery replacements as one reason for lower-than-expected iPhone sales at the time in a letter to investors.
Apple first hit a $2 trillion valuation in Aug. 2020, as the pandemic boosted its sales of computers and phones for remote work or school. It briefly hit a market value over $3 trillion during trading last January. A recent report from supply chain analyst Trendforce said that it saw Apple's iPhone shipments declining 22% in the December quarter. At just over $124 per share, Apple would hit its latest 52-week low if it closes at the current price. Apple's share price fell nearly 27% in 2020.
Heading into 2023, the outlook for the server market is murky, especially in the early part of the year. He said tech companies can move faster with Supermicro servers and are willing to pay for execution and the company's design skills. Another specialized market Supermicro is targeting is servers for 5G or telecom applications, using a new kind of approach called OpenRAN. Supermicro said in November that a big unnamed customer was responsible for nearly 22% of the company's sales in the quarter. Intel and AMD have issued downbeat prospects for the server market, and companies of all sizes are cutting costs.
Semiconductor maker Micron announced on Wednesday that it would reduce its headcount by about 10% in 2023, in the latest example of a technology industry slowdown affecting employment. The company said that it would hit its reduction target through voluntary departures as well as layoffs. Micron's restructuring comes after other semiconductor companies have announced hiring freezes or layoffs. But it's not just semiconductor companies adjusting after two pandemic-fueled years of growth and supply issues. Tech companies including Meta , Twitter, Snap , Stripe, and Tesla have also cut staff as companies gird for a potential recession and higher interest rates.
Now, Apple is reportedly working to follow a law that could force major changes to the iPhone and disrupt Apple's lucrative app distribution model. Apple is developing software to comply with new European Union requirements scheduled to go into effect in 2024, according to Bloomberg News. Currently, the iPhone's App Store is the only way to download software onto iPhones. Apple makes a huge amount of profit from its App Store, which takes a cut of up to 30% from digital sales made through any app it distributes. Apple reported $394 billion in total sales, with $78 billion coming from services, in its 2022 fiscal year, which ended in September.
Over the past few months, Americans have been receiving emails promising them a free Yeti backpack cooler from Dick's Sporting Goods — a $325 value. These emails have gotten a lot of attention because they are sometimes able to evade sophisticated spam filters, like those built into Google 's Gmail, but they are spam emails. The spam campaign is an example of how scammers are getting increasingly sophisticated at targeting consumers to give up their private information, said Or Katz, principal security researcher at Akamai , which recently published a look into how the recent spam campaign works. A Google representative called the phishing campaign "widespread" and "particularly aggressive." The spam campaign hitting user inboxes is another reminder that online fraud is a major industry, driven by money, that continues to evolve.
Apple announces plans to encrypt iCloud backups
  + stars: | 2022-12-07 | by ( Kif Leswing | ) www.cnbc.com   time to read: +3 min
(Photo by Justin Sullivan/Getty Images)Apple announced on Wednesday that it plans to allow users to encrypt additional kinds of iCloud data on its servers, including full backups, photos and notes. Encrypted backups will be opt-in, according to Apple, and will be available in the U.S. before the end of the year. While Apple has previously encrypted a lot of data it stores on servers, entire device backups that included text messages, contacts, and other important data were not end-to-end encrypted, and Apple previously had access to the contents of the backups. It also means that user data content would not be exposed if Apple's servers were ever breached. At the time, Apple said that an unencrypted iCloud backup on its servers was an option to get the same data.
Apple CEO Tim Cook confirmed that Apple will buy U.S.-made microchips at an event in Arizona on Tuesday, where President Joe Biden also spoke. Cook said Apple would buy processors made in a new Arizona factory, according to a video from the event. The chip factories will be owned and operated by Taiwan Semiconductor Manufacturing Company, the biggest foundry company with over half of the global market share. TSMC produces the most advanced processors, including the chips in the latest iPhones, iPads and Macs. "Apple had to buy all the advanced chips from overseas, now they're going to bring more of their supply chain home," Biden said.
This week, Musk claimed in a tweet that Apple had mostly stopped advertising on the Twitter platform. Apple is not alone in reducing its campaigns on the social media platform since Musk took over. If the so-called “Apple Car” ever came to market, Tesla and Apple would be direct competitors. Cook and MuskHave Apple CEO Tim Cook and Musk ever spoken in depth? Around 2016, according to the book, Musk and Cook spoke about Apple potentially acquiring Tesla.
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