| Welcome to Inside Tech! Let's dive into today's major headlines: - The EU is investigating Microsoft for bundling Teams with Office software.
- Despite a strong quarter, Meta's metaverse projects still incurred losses.
- Apple's iPhone 15 Pro models could cost $100-$200 more.
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| 1 | | Microsoft is facing an EU antitrust investigation for bundling its Teams app with its Office 365 and Microsoft 365 packages. The probe follows concerns raised by Slack that bundling Teams with Office products restricts competition and user choice. More: - The European Commission's probe will examine whether the bundling violates EU competition rules by granting Teams an advantage over rivals and restricting interoperability with other software platforms.
- The investigation was prompted by a complaint from Slack, Salesforce's messaging platform, lodged three years ago.
- If found in violation, Microsoft could face a fine of up to 10% of its global annual turnover.
- In the past, Microsoft faced an EU antitrust probe and fine over its web browser Internet Explorer and also underwent scrutiny for its proposed acquisition of Activision Blizzard, which was eventually approved with remedies.
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| 2 | | What happened: Meta exceeded Wall Street expectations in Q2 2023, reaching $32B in revenue, an 11% jump YoY. The company also issued a strong Q3 forecast amid a rebound in the digital advertising market. However, its metaverse division, Reality Labs, faced a wider-than-expected loss, indicating further challenges ahead. What the numbers say: Meta's family of apps division, including Instagram, Facebook, and WhatsApp, drove revenue growth with ad impressions up by 34%. CEO Mark Zuckerberg emphasized Reels' success, generating 200 billion daily views across Facebook and Instagram, and highlighted recent launches like Threads and the Llama 2 language model. The company confirmed that the majority of its layoffs, totaling over 20,000 jobs since the fall, have been largely completed. However: Despite its best quarter since 2021, Meta continues to suffer significant losses in its metaverse projects, with Reality Labs reporting a $3.7B loss in Q2 2023. Meta foresees even higher losses in the coming year due to ongoing investments in augmented reality/virtual reality and ecosystem expansion. Zuckerberg still remains committed to the metaverse vision, highlighting the upcoming launch of the Quest 3 headset, which is expected to be the most significant headset release since 2020. 
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| 3 | | Apple's iPhone 15 Pro models are expected to be more expensive than the current handsets, based on insights from Tim Long, an analyst at Barclays. Long predicts the iPhone 15 Pro could cost $100 more than iPhone 14 Pro, and the iPhone 15 Pro Max $100 to $200 more than iPhone 14 Pro Max. More: - This means the iPhone 15 Pro could start at $1,099, while iPhone 15 Pro Max pricing could start at $1,199 or even $1,299.
- The standard iPhone 15 and iPhone 15 Plus are expected to have unchanged prices at $799 and $899, respectively.
- Bloomberg has also mentioned that Apple is "considering" a price increase.
- It's worth noting that analysts rely on supply chain sources, and specific pricing details are known only to high-level Apple insiders.
Zoom out: - In addition, the iPhone 15 Pro and Pro Max are rumored to have a next-gen A17 chipset, thinner bezels, titanium frame, solid-state action button, Wi-Fi 6E support, and USB-C connectivity.
- The iPhone 15 Pro Max will have an upgraded Telephoto lens with periscope technology, offering better zoom capabilities than the smaller iPhone 15 Pro.
- The launch of the iPhone 15 series may be delayed to October, extending beyond the usual September timeframe.
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| 4 | | Samsung expects a gradual rebound in global demand for memory chips in the second half of the year, despite a 95% drop in operating profits for the latest quarter. The company still plans to cut back on some production as it shifts its focus to high-end chips used in artificial intelligence. More: - In its latest earnings statement, Samsung reported Q2 2023 operating profit of $527M, significantly lower than last year's $10.8B.
- The decline was attributed to a decrease in smartphone shipments, but the company anticipates a market recovery later in the year.
- Samsung suffered an operating loss of $3.4B in its memory chip unit during Q2 2023, contributing to a record $7B loss in its chip business for the first half of the year.
- Following a pandemic-driven boom, demand for consumer goods has dropped due to the global economic slowdown and high interest rates.
Zoom out: - The IDC now predicts a 3.2% decline in global smartphone shipments in 2023, revised from its earlier forecast of a 1.1% drop.
- The change was attributed to a weaker global economic outlook and persistent inflation.
- However, IDC anticipates a market recovery in 2024, with 6% year-over-year growth.
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| 5 | | Sony has now sold over 40 million PlayStation 5 consoles, slightly slower than the PS4 in reaching the milestone. PS5 shipments surged this year, reaching 6.3 million units from January to March 2023 compared to 2 million during the same period last year. More: - After initial supply chain challenges, Sony says the PS5 is now fully stocked to meet pent-up demand.
- The PS5 crossed 30 million sales in January 2023 and missed beating the PlayStation 4's 40 million sales record by only two months.
- June witnessed a significant sales boost in Europe, with a 116% increase compared to last year.
- Sony aims to sell 25 million PS5 units this fiscal year, potentially setting a new PlayStation record.
Zoom out: - Rumors suggest Sony is working on an enhanced "Slim" edition of the PS5, costing $399, as well as a new handheld device designed for remote play with locally available PS5 consoles.
- Sony plans to launch "Spider-Man 2" in October, featuring a special edition version of the console.
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| 6 | | According to a Pew Research Center analysis, 19% of American workers are in jobs highly exposed to AI, with higher-educated individuals, women, and Asians more at risk. If the technology can do the workers' most critical tasks entirely or help them, their jobs are considered to be "more exposed" to AI. More: - The findings reveal that 23% of workers have jobs with minimal AI exposure, like firefighters, and nursing assistants, while nearly six in 10 workers have varying levels of exposure.
- Highly exposed jobs tend to be in well-compensated fields and emphasize critical thinking, analytical, and computer skills, as AI replicates human cognitive abilities.
- Conversely, jobs involving caregiving and physical tasks have lower AI exposure.
- Although white-collar occupations are more likely to be impacted by AI, the analysis didn't account for AI-powered machines or robots, which are more likely to replace workers in areas like warehousing and manufacturing.
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 | AI and technology writer | | Beth is a writer and editor at Inside.com covering artificial intelligence and daily technology news. She has written the Inside AI newsletter since 2019. You can reach her at Beth.Duckett@inside.com. | | This newsletter was edited by Eduardo Garcia | |
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