Plus: X is launching a video app for smart TVs.
| For April 23, 2024 |  |
| Here’s a look at today's tech briefing: - iPhone sales in China fell 19% in Q1.
- IBM close to acquiring cloud software firm HashiCorp.
- Apple expected to launch new iPads on May 7.
- Spotify reports record profit after cost-cutting.
- X is launching a video app for smart TVs.
Beth
p/beth-duckett | |
| 1 | | Apple's Chinese smartphone sales fell 19% in the first quarter, the steepest drop since 2020, amid heightened competition from Huawei, according to Counterpoint research. In China, Apple's phone market share has fallen from first to third place, behind Vivo and Honor. 
What the numbers show: China's smartphone market grew by 1.5% in Q1, its second straight quarter of growth, per Counterpoint. During that time, Apple's market share fell to 15.7% from 19.7% a year earlier, nearly matching Huawei's share, which rose to 15.5%. Huawei's 69.7% growth for the quarter was driven by its Mate 60 series, which has outsold the iPhone 15 in China. The bigger picture: China is Apple's third-biggest market, but the company is facing headwinds due to reduced consumer spending and the re-emergence of Huawei as a competitor in the premium segment. To attract more customers, Apple has been offering steep discounts on some iPhones in the country, though demand has remained weaker than expected. What's next: In China, new iPhone models with AI features and fresh colors could bring back Apple to positive territory, according to Counterpoint. Overall, the firm predicts low single-digit growth in China's smartphone market through 2024. |     | |
| 2 | | IBM is close to finalizing a deal to acquire cloud software company HashiCorp. Following the report, HashiCorp's stock soared by 24%, reaching a market value of $6.1B. More: - Companies use HashiCorp's software to manage their cloud infrastructure on platforms like AWS and Microsoft Azure.
- The firm helps companies migrate workloads from on-premise to public clouds.
- Acquiring HashiCorp could boost IBM's focus on the cloud and complement its Red Hat open hybrid cloud technologies.
Zoom out: - At $34B, Red Hat remains IBM's largest acquisition to date.
- IBM completed nine acquisitions last year, including software company Apptio for $4.6B.
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| 3 | | Apple is expected to launch new iPads at an online event on May 7. After over a year without updates, Apple could unveil the latest iPad Pro and iPad Air to boost lagging sales. More: - The event invites feature a graphic of the Apple Pencil, its iPad stylus, and the tagline "Let loose."
- The new iPad Air is expected to come in the traditional 10.9-inch size and a new 12.9-inch variant.
- The new iPad Pro will be thinner and have new OLED displays and Apple's M3 chip.
- The Pro will also work with redesigned versions of the Magic Keyboard and Apple Pencil.
Zoom out: - iPad sales fell 25% to $7B in the quarter ended Dec. 30.
- The sales made up 5.9% of Apple's total net sales of $119.6B.
- The lackluster numbers come after Apple did not release any new iPad hardware last year, the first time since the device's launch in 2010.
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| 4 | | After a year of cost-cutting, Spotify reported a record profit in Q1. The audio giant's quarterly gross profit exceeded €1B euros ($1.1B) for the first time. More: - Spotify's Q1 revenue grew 20% to €3.6B ($3.8B).
- Paid subscribers rose 14% to 239 million.
- Total active users reached 615 million, slightly below the 618 million analysts expected, which was attributed to cuts in marketing.
Zoom out: | | | |
| 5 | | X, formerly Twitter, will launch a dedicated video app for smart TVs. CEO Linda Yaccarino shared a teaser video showing the app's YouTube-like interface. More: - The "X TV" app will feature videos uploaded to the platform.
- A "trending video algorithm" will tailor popular content to users.
- Through casting, users will be able to start watching on their phones and continue on TVs.
- The app will offer advanced video search and be accessible on "most smart TVs."
Zoom out: - X TV will launch without ads, though X will eventually monetize it via partnerships that could include ads, according to Yaccarino.
- In January, Elon Musk said X is now a "video-first platform." He claimed that its users watch videos about 80% of the time.
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| 6 | | Microsoft has hired a former Meta executive to oversee its AI supercomputing efforts. Jason Taylor, Meta's former VP of infrastructure, will become a corporate vice president and deputy CTO of Microsoft's supercomputing unit. More: - At Meta, Taylor oversaw AI, data, and privacy infrastructure, and managed server budgets.
- He joins Microsoft leaders and partner OpenAI "to build the next set of systems that will push the frontier of AI forward for us all," Microsoft CTO Kevin Scott said.
Zoom out: - Microsoft is spending billions on cloud computing and AI infrastructure worldwide.
- A report claims Microsoft and OpenAI could partner on a $100B+ U.S. data center that would house an AI supercomputer called "Stargate."
- The supercomputer, made up of millions of AI chips, could launch as early as 2028.
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| 7 | | QUICK HITS: - Despite U.S. export restrictions, Chinese universities and research institutes have acquired Nvidia's advanced AI chips through resellers.
- Following lower-than-expected U.S. demand, Apple slashed this year's Vision Pro shipment forecast — from up to 800,000 units to as low as 400,000 — ahead of the headset's international launch, according to analyst Ming-Chi Kuo.
- Google Podcasts will shut down worldwide by late June, following its earlier U.S. shutdown in April.
- Microsoft launched Phi-3 Mini, a lightweight cheaper AI model for smartphones and local devices.
- Truth Social announced plans for a live TV streaming service focused on news, religious content, and more.
*This is a sponsored post. | | | |
 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for publications including USA Today, the Arizona Business Gazette, and The Arizona Republic, where she received recognition with a Pulitzer Prize nomination and a First Amendment Award for collaborative reporting on state pension cost increases. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Beth Duckett | |
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