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Supply issues cost Apple $6 billion but customers don’t care

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Apple CEO Tim Cook blamed Apple’s fall in revenue over larger-than-expected supply constraints, but experts says customers are unphased

MACRUMORS REPORTER SAMI Fathi ON TICKER NEWS

Apple revenue fell short of Wall Street expectations in its fourth quarter earnings.

However, Apple’s overall revenue was still up 29 per cent and each of its product categories grew on an annual basis.  

Cook still expects Apple to have solid growth by the end of the year. But how will it hit green as the tech giant faces more supply chain woes?

Macrumors reporter Sami Fathi told tickerNEWS Apple continues to grow, and customers will continue to stay loyal to the brand despite its challenges.

“Compared to last year, there is solid growth across the board,” he said.

iPhone sales were up 47 per cent year-over-year, but still came in under Wall Street estimates.

“They did miss expectations, but Wall Street can be pretty tough to satisfy sometimes.”

Apple’s annual revenue for its fiscal 2021 was up 33 per cent from 2020 to $366 billion.

This quarter marks the first time since April 2016 that Apple has failed to beat earnings estimates

“Mac is in this Renaissance moment”

However, Fathi says Apple is stronger than ever when it comes to its product offerings

“If you look at every product category, every single one is I think the strongest it’s ever been, if you look at the Mac, the Mac is sort of in this renaissance moment,” he said.

“Every product category is very strong. We still have the holiday quarter coming up, which is used the very solid quarter for Apple so I’m overly optimistic for what’s income.”

What about supply chain woes?

Cook said the global chip shortages is really impacting product availability and cost Apple around $6 billion in losses this quarter.

Fathi says customers are willing to wait for their new products.

“If you really think about it, in practice, a lot of customers are willing to wait very long times to get their products,” he said.

“I mean, I know people who are still waiting for their iPhones that they ordered weeks ago. So while these you know, shortages are obviously concerning, I think the broader picture is that customers are willing to wait very, very long times to get their products.”

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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