Reuters this evening reports that Apple is investing $1 billion in Chinese ride-hailing service Didi Chuxing. In a statement, CEO Tim Cook explained that the investment will give Apple a chance to learn more about certain segments of the Chinese market, while it will also deliver a strong return.
According to a new report from The Economic Times of India, Apple supplier Foxconn is close to signing a deal with the Indian government to open an iPhone manufacturing plant in the country. The report claims that Apple and Foxconn have narrowed the location for the factory down to Maharashtra.
In a new report, Reuters this evening is claiming that the FBI paid less than $1 million for the tool it used to unlock the San Bernardino gunman’s iPhone 5c. Apple, of course, denied to create a tool to do so, so the FBI went through a third-party to gain access. The report, citing “several U.S. government sources,” further claims that the technique can be used on any iPhone 5c running iOS 9.
Despite Apple’s $50 billion quarter with $10 billion in profit, the January to March period marked Apple’s first quarter in 13 years without growth including year-over-year iPhone sales declines for the first time. Apple set the expectations back in January, but its stock still took a beating after this week’s earnings report. Now activist investor Carl Icahn, who has been very noisy about what he thinks Apple should do in the past, tells CNBC he has sold his massive share of Apple stock. Icahn once owned nearly 1% of Apple’s shares, and publicizing that he’s out of the stock will likely influence other investors to follow.
Following Apple’s earnings results last night, where it posted its first YOY quarterly revenue decline since 2003, AAPL has opened down more than 8% — the stock price is far below the $100 mark as morning trading begins. Apple reported revenue of $50 billion (compared against $58 billion in the year-ago quarter), on sales of 51.1 million iPhones, 10.2 million iPads and 4 million Macs.
The stock price fall means over 40 billion dollars of market cap value has been erased overnight. Market capitalization is the approximate value of the company, a multiple of the stock price and number of shares. The stock closed yesterday at $104.
Alongside its announcement of Apple’s quarterly earnings, its first revenue decline since 2003, Apple has also announced latest numbers for Apple Music, its $9.99 per month streaming music service. The company says it now has 13 million paying subscribers, up from 11 million in February.
This compares to about 30 million subscribers to leading competitor Spotify, although the service obviously had a multi-year headstart over Apple’s streaming service, which launched last June.
Later today, at about 4.30 PM ET, Apple will announce its financial earnings results for fiscal Q2, including the latest three-month sales numbers for iPhone, iPad and Mac.
Although Apple is still going to post profits in the billions, still one of the most successful companies the world by all metrics, investor expectations are low as the company guidance indicates it will report its first decline in year-over-year quarterly revenue since 2003. The primary cause? Falling iPhone sales …
Apple’s ninth annual Environmental Responsibility Report summarises the company’s work on its three environmental priorities of renewable energy, safer materials & processes and conserving resources. As part of the third of those, the company revealed that its recycling program last year recovered 89 million pounds of materials – Business Insider noting that this included a cool $40M worth of gold.
Gold is commonly used in circuit boards because it has low electrical resistance and, unlike copper, doesn’t corrode. In most applications, a thin layer of gold covers a thicker layer of copper – which was a second valuable material recovered by Apple …
According to a new report from the Korean Herald, Samsung and Apple have reached a deal in which Samsung will supply around 100 million OLED display units to Apple beginning in 2017. The report comes as several other sources have stated that Apple plans to make the switch to OLED panels beginning next year.
Deja vu? The Foxconn acquisition of Sharp was almost a done deal a few weeks ago, until Sharp revealed some additional liabilities at the eleventh hour it had not previously disclosed. This meant Foxconn had to go back to the drawing board and re-assess the deal, renegotiating some parts of the contract with Sharp. The initial offer was worth $6.2 billion. Today, the companies announced Foxconn will buy Sharp in a $3.5 billion dollar deal.
Apple will be on the hook for $450 million after losing its appeal in the e-book price-fixing case, Bloomberg reports. The United States Supreme Court released the decision after Apple appealed the prior ruling. The high-profile case dates back to a 2012 lawsuit from the United States, which Apple appealed all the way to the Supreme Court, but the justices declined to hear the case which leaves the prior ruling intact.
Update: The WSJ reports that the deal is not yet certain. Sharp may come with some potential financial risks, which Foxconn is evaluating before it actually signs the deal.
Foxconn Technology Group said Thursday it is delaying the signing of a definitive takeover agreement with Sharp Corp. due to new details that the Japanese electronics maker disclosed a day earlier.
Foxconn didn’t elaborate in its statement, but people familiar with the matter said that the Taiwanese iPhone assembler is putting the Sharp deal on hold after reviewing the Japanese firm’s future financial risk. The people said Foxconn received a list of about ¥350 billion yen worth of “contingent liabilities” from Sharp on Wednesday.
Contingent liabilities are costs that a company might face in the future, based on the outcome of lawsuits, accounting changes, supply contracts or other uncertainties.
Last month it was reported that Apple manufacturer Foxconn had bid $5.3 billion to acquire Japanese display maker Sharp, who has faced numerous financial and manufacturing difficulties over recent years. Now, Japanese news outlet Nikkei Asian Review reports that Sharp has accepted an offer from Taiwan’s Hon Hai Precision Industry, better known as Foxconn, for $6.2 billion.
Apple just released its Q1 2016 earnings, reporting “record” results of $75.9 billion in revenue and $18.4 billion in profit. In addition to its normal data, however, Apple has shared a new figure relating to the number of active devices it has in the wild. Apple says that it now has an active installed base of 1 billion devices, including iPhone, iPad, Mac, iPod touch, Apple TV, and Apple Watch. Apple says it gathered this data by tracking the devices that have been engaged with its services within the last 90 days.
According to a report out of Bloomberg, notorious patent troll VirnetX is seeking $532 million from Apple, claiming that Apple has taken its intellectual property without permission. VirnetX holds a variety of patents relating to technology used in creating Virtual Private Networks, or VPNs. The company claims that Apple’s own VPN technology, as well as its FaceTime and iMessage services, all infringe on its patents.