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| Here’s a look at today's tech briefing: - Global PC shipments rebound to pre-pandemic levels.
- Blizzard games to return to China under new NetEase deal.
- Apple now assembles every 1 in 7 iPhones in India.
- Amazon to stop paying developers to create Alexa apps.
- FCC to cut internet subsidies for low-income households.
Beth
p/beth-duckett | |
| 1 | | Global PC shipments rebounded to pre-pandemic levels in Q1 2024, as reported by the International Data Corporation (IDC). After declining for two years, the worldwide PC market returned to growth in early 2024, preliminary data shows. 
What the numbers show: Traditional PC shipments rose by 1.5% from Q1 2023 to Q1 2024, reaching 59.8 million. Apple's Macs experienced the largest growth, with shipments growing by 14.6%, followed by Acer at 9.2%, and Lenovo at 7.8%. Overall volumes last quarter also rivaled pre-pandemic levels, nearly matching the 60.5 million units shipped in Q1 2019. What it means: Growth was mainly driven by favorable year-over-year comparisons, stemming from a 29% drop in the PC market during Q1 2023, its lowest point in history. With inflation easing, PC shipments have started to rebound across the Americas, Europe, the Middle East, and Africa, according to IDC. However, there is still weak demand in China for global desktop shipments. What's next: IDC's Jitesh Ubrani expects continued PC market recovery in 2024, driven by commercial PC upgrades and newer AI PCs, which present higher price opportunities for manufacturers. |     | |
| 2 | | Microsoft reached a deal with Chinese tech giant NetEase to reintroduce Blizzard video games like "World of Warcraft" to Chinese gamers. Blizzard and NetEase ended their 15-year partnership in 2023. More: - Overseas publishers need local partners to release video games in China.
- However, Blizzard and NetEase failed to renew their 2008-era deal last year after disagreeing on key terms.
- As a result, millions of Chinese gamers lost access to Blizzard franchises, such as Overwatch, Diablo, and StarCraft.
- After a year of negotiations, NetEase said it has reached a new deal with Microsoft, which acquired Activision Blizzard last year.
- Blizzard's games will now gradually re-enter the Chinese market starting this summer.
Zoom out: - Separately, Microsoft Gaming and NetEase have agreed to explore distributing NetEase games on Xbox.
- NetEase is China's second-largest video game company, trailing Tencent.
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| 3 | | Apple now produces up to 14% of its iPhones in India, double last year's production rate, according to Bloomberg. Apple has been diversifying its supply chain beyond China amid geopolitical tensions with the U.S., though China remains its primary iPhone manufacturing hub. More: - Apple produced $14B worth of iPhones in India last fiscal year, sources told Bloomberg.
- These include iPhone models from 12 to 15, excluding the Pro and Pro Max.
- Foxconn assembled 67% of the phones in India, while Pegatron accounted for 16%.
- Indian conglomerate Tata Group assembled the remainder after taking over Wistron's plant there last year.
- Pegatron is now close to selling its only iPhone plant in India to Tata.
Zoom out: - Companies seeking to diversify manufacturing from China are increasingly favoring India, which could one day surpass China as the world's leading growth engine, according to Bloomberg economist Abhishek Gupta.
- Apple CEO Tim Cook still maintains strategic ties with Chinese leaders, as evidenced by his recent visit to China to meet the commerce minister and open a new store in Shanghai.
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| 4 | | Amazon will no longer pay developers to create Alexa apps, Bloomberg reports. The company will end the Alexa Developer Rewards Program on June 30. More: - The rewards program provided monthly payments to creators of popular third-party Alexa apps, known as "skills."
- While these direct payments will end, developers can still earn money via in-app purchases.
- The company will also end free AWS credits for Alexa app builders.
- Amazon said the programs have "run their course," with the existence of over 160,000 skills for customers.
Zoom out: | | | |
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| 5 | | The FCC plans to cut subsidies for over 20 million U.S. households receiving discounted high-speed internet. Congress has not approved a funding extension for the $14.2B Affordable Connectivity Program, which faces a shortfall. More: - The program offers up to $30 monthly internet discounts for low-income households and $75 for residents on tribal lands.
- Starting in May, the subsidies will fall to $14 and $35 per month, respectively.
- Providers like AT&T and Verizon haven't detailed plans for the cuts, or if they'll offer their own discounts.
Zoom out: - The 2021 infrastructure law funded the Affordable Connectivity Program with a one-time $14.2B allocation, which is running out.
- The program has over 23 million subscribers, representing more than 1 in 6 U.S. households.
- FCC Chair Jessica Rosenworcel urged Congress to quickly pass a bill that would add $7B to address the funding shortfall.
- "To fully participate in the digital age economy, every household needs access to broadband," Rosenworcel said.
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| 6 | | Microsoft plans to invest $2.9B in AI data centers in Japan by 2025, its largest investment in the country. The investment will expand Microsoft's cloud and AI infrastructure in Japan, train 3 million in AI, and create a Tokyo research lab. More: - The Tokyo AI and robotics lab will fund research projects worth nearly $10M over five years.
- The investment will also add advanced AI semiconductors to two existing data centers in Japan.
- Microsoft and the Japanese government will also work together to strengthen cybersecurity.
Zoom out: - Microsoft previously announced a $3.2B investment in U.K. AI data centers, while Google and Amazon are also expanding their data center investments in various locations.
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- Large internet providers now have to show "nutrition labels" for their plans, fees, and extra costs, making sure users know about hidden fees before they sign up.
- The Motion Picture Association (MPA) will work with U.S. lawmakers to block websites with pirated content, according to MPA CEO Charles Rivkin.
- South Korea plans to invest nearly $7B in AI by 2027, with an additional $1B fund for AI semiconductor companies.
- 33% of U.S. teens now own a virtual reality device, up from 31% last year, according to a Piper Sandler study.
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 | 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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