iPhone Sales Declined in Q2 2023 as Services Revenue Saw Record Growth With 1 Billion Subscriptions

Apple on Thursday forecast that a sales slump would continue into the current quarter, sending shares down despite beating Wall Street sales and profit targets in the fiscal third quarter.

Apple shares dropped about 2 percent after the company predicted what could be the fourth quarter in a row of declining sales. For the just-ended period, strength in services drove the profit beat, but weaker-than-expected sales of Apple’s most famous device, the iPhone, underwhelmed investors. Executives said iPhone sales would improve in the fourth quarter, but did not say how much.

Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product – the Vision Pro mixed-reality headset announced in June – is not yet in the hands of consumers.

Apple said sales for the fiscal third quarter ended July 1 fell 1.4 percent to $81.8 billion (roughly Rs. 6,77,034 crore) and earnings per share rose 5 percent to $1.26 (roughly Rs. 104). That topped analyst expectations of $81.69 billion (roughly Rs. 6,72,568 crore) and $1.19 (roughly Rs. 98) per share, according to IBES data from Refinitiv. Weaker iPhone sales were balanced by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8 percent year over year.

Apple Chief Financial Officer Luca Maestri said the company expects a year-over-year revenue performance in the company’s fiscal fourth quarter ending in September similar to the drop the company reported on Thursday. That sales forecast is below analyst expectations of roughly flat fiscal fourth-quarter sales of $90.19 billion (roughly Rs. 7,46,412 crore), according to Refinitiv data.

“There is a real concern about when volume picks up and what the horizon is for iPhone sales growth,” said Daniel Newman, chief executive and principal analyst at research firm Futurum Group.

Apple pegged the gross profit margin in the September quarter at 44 percent to 45 percent, above analyst expectations of 43.4 percent, according to Refinitiv data. While Apple expects growth in its service segment that contains Apple TV+, iPad and Mac sales will fall by “double digits,” Maestri said on the call.

Apple’s research and development spending also hit $22.61 billion (roughly Rs. 1,87,131 crore) for the fiscal year so far, about $3.12 billion (roughly Rs. 25,822 crore) higher than at this point in the previous year.

Apple Chief Executive Officer Tim Cook told Reuters in an interview that the increased R&D spending was in part driven by work on generative artificial intelligence, the same field that is driving spending at other big technology companies.

“We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives,” Cook said. “Obviously, we’re investing a lot, and it is showing up in the R&D spending that you’re looking at.”

CHINA STRENGTH

In the meantime, Apple appeared to outperform what has been the weakest smartphone market in China in almost a decade. Overall smartphone sales declined 8 percent in China in the calendar second quarter to their lowest levels since 2014, according to Counterpoint Research. By contrast, Cook told Reuters that Apple’s iPhone sales in China grew by “double digits” and that sales were also high in other segments in China.

That helped Apple push sales in its greater China region to $15.76 billion (roughly Rs. 1,30,436 crore), from $14.60 billion (roughly Rs. 1,20,835 crore) in last year’s same quarter.

“This was really done by attracting a quarterly record of switchers to the iPhone, as well as having a strong upgrader activity,” Cook said. “We also set quarterly records in China for both wearables, home and accessories and services.”

Apple said iPhone sales were $39.67 billion (roughly Rs. 3,28,328 crore), below analyst expectations of $39.91 billion (roughly Rs. 3,30,295 crore), according to Refinitiv data. Cook said the installed base of iPhones hit a new high but gave no numbers.

“The company continues to face headwinds caused by waning growth in the smartphone market,” said Insider Intelligence analyst Jeremy Goldman. “All eyes are now on its earnings call for any potential Vision Pro or AI-related announcements that could further push the boundaries of their business model.”

Apple’s services segment, which includes its Apple TV+ service which has announced a deal to carry Major League Soccer, had $21.21 billion (roughly Rs. 1,75,544 crore) in revenue, compared with analyst estimates of $20.76 billion (roughly Rs. 1,71,814 crore), according to Refinitiv data.

Cook said Apple now has 1 billion subscribers on its platform, which includes both Apple services and third-party apps, up from 975 million a quarter ago.

The company’s wearables business, which includes the Apple Watch and AirPods, had revenue of $8.28 billion (roughly Rs. 68,529 crore), compared with analyst estimates of $8.39 billion (roughly Rs. 69,439 crore), according to Refinitiv data.

Mac and iPad sales were $6.84 billion (roughly Rs. 56,611 crore) and $5.79 billion (roughly Rs. 47,918 crore), respectively, compared with analyst estimates of $6.62 billion (roughly Rs. 54,791 crore) and $6.41 billion (roughly Rs. 53,049 crore), according to Refinitiv data.

“Almost half of the Mac buyers during the quarter were new to the product, and we continue to see strong upgrader activity to Apple Silicon,” Cook told Reuters. 

© Thomson Reuters 2023  


Apple unveiled its first mixed reality headset, the Apple Vision Pro, at its annual developer conference, along with new Mac models and upcoming software updates. We discuss all the most important announcements made by the company at WWDC 2023 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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Google Chrome Rolls Out Memory, Energy Saver Modes for Desktops: All Details

Google Chrome is rolling out the Memory Saver and Energy Saver modes, which were announced last year, on Chrome for desktops. The features are now available on Mac, Windows, Linux, and Chromebooks and are turned on by default. Both Memory and Energy saver mode will boost the desktop’s performance, as well provide better battery life while using Google’s browser. Memory Saver mode will automatically free up memory from inactive tabs, while the Energy Saver feature will reduce battery consumption by limiting background activity. The modes, if not needed, can be turned off in Chrome Settings.

According to a report by 9To5Google, Google, which first introduced the Memory and Energy Saver modes in December 2022, is now rolling out the features widely to Chrome 110 for Mac, Windows, Linux, as well as Chromebooks. The features prioritise the active tabs and limit the background activities to free memory and reduce power consumption.

As per the details shared on Google’s support page, the Memory Saver and Energy Saver modes are enabled by default. Users can disable them by going to Chrome’s settings, in the Performances tab on the sidebar. Google explained that Memory saver will help users save space as well as run active tabs smoothly by deactivating inactive tabs.

When a user is not using a tab actively, Memory saver mode will change it into inactive mode. The activity status will change as and when the user will browse the tab again. It will display a ‘Tab Active Again’ message once the inactive tab is accessed.

On the other hand, the Energy saver mode will reduce the power consumption of device and offer improved battery life. It will do so by reduce the image capture rate and other background tasks. It automatically works when the device is running low on battery and is unplugged. If the device is plugged in to energy source and being charged, the Energy Save mode will be turned off. The mode will be displayed on title bar with a leaf and an electric signal.

 


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Microsoft Excel Gets New Search Bar, Image Function, Formula Suggestion, More: Details

Microsoft has rolled out a bunch of new smart features for Excel. The features have been rolled out on Web, as well as for Windows and Mac users. The new features for Web users include Suggested Links, Image Function, Formula Suggestions, Formula by Example, and more. The Suggested Links feature will detect a broken external link to a Cloud workbook and suggest users a new location to fix them. The Image Function tool will let users resize cells, sort, and filter, and work with images within an Excel table.

According to a blog post by Microsoft, Formula Suggestions, and Formula by Example are being rolled to Excel web users along with Suggested links, Image function, and a new search bar in the queries pane. For Windows users, the Image function and a new keyboard shortcut is introduced that will let users open the Power Query editor, while Mac Excel users got the Image function tool only.

As detailed by Microsoft, the Suggested Links feature will detect a broken external link to a Cloud workbook and suggest users a new location to fix the broken link. The feature is currently available for production.

The Formula Suggestions feature will auto-suggest the best formula based on the user’s data. To access this feature, users will be required to type the ‘=’ in a cell or the formula bar. Currently, Excel can suggest SUM, AVERAGE, COUNT, MAX, MIN, and COUNTA formulas and it supports only the English language.

On the other hand, Formula by example will help make manual data entry easier by identifying the pattern and suggesting filling the entire column with a formula.

The Search bar feature will help Excel for Web users search and find their queries in the Queries search pane.

Meanwhile, Microsoft is reportedly working on the tabs feature for its Notepad app on Windows 11. The feature is currently in early internal testing and is expected to be rolled out in early 2023. A Microsoft employee accidentally dropped an image of the feature on Twitter, however, it was deleted later. 

 


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Apple Reveals Serious Security Flaws Affecting iPhone, iPad, Mac Models; Experts Urge Users to Update Devices

Apple disclosed serious security vulnerabilities for iPhone, iPad and Mac models that could potentially allow attackers to take complete control of these devices. Apple released two security reports about the issue on Wednesday, although they didn’t receive wide attention outside of tech publications. Apple’s explanation of the vulnerability means a hacker could get “full admin access” to the device. That would allow intruders to impersonate the device’s owner and subsequently run any software in their name, said Rachel Tobac, CEO of SocialProof Security.

Security experts have advised users to update affected devices — the iPhone 6s and later models; several models of the iPad, including the 5th generation iPad and later, all iPad Pro models and the iPad Air 2; and Mac computers running MacOS Monterey. The flaw also affects some iPod models.

Apple did not say in the first or second report how, where or by whom the vulnerabilities were discovered. In all cases, it cited an anonymous researcher.

Commercial spyware companies such as Israel’s NSO Group are known for identifying and taking advantage of such flaws, exploiting them in malware that surreptitiously infects targets’ smartphones, siphons their contents and surveils the targets in real time.

NSO Group has been blacklisted by the US Commerce Department. Its spyware is known to have been used in Europe, the Middle East, Africa and Latin America against journalists, dissidents and human rights activists.

Security researcher Will Strafach said he had seen no technical analysis of the vulnerabilities that Apple has just patched. The company has previously acknowledged similarly serious flaws and, in what Strafach estimated to be perhaps a dozen occasions, has noted that it was aware of reports that such security holes had been exploited.


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MacBook Pro 3nm M2 Pro Chip by TSMC to Enter Production Later This Year: Report

The Taiwan Semiconductor Manufacturing Company (TSMC) could begin the production of its new 3nm chips for Apple by the end of this year, a new report claims. The Cupertino company could become the first to use the new 3nm processor for its M2 Pro chipsets. The report further suggests that Apple’s A17 Bionic chip and the M3 chip could continue to use TSMC’s 3nm process. The move from TSMC’s 5nm process to the 3nm process is expected to result in improved performance and energy efficiency.

According to a report by Taiwan’s Commercial Times (via MacRumours), Apple will take advantage of TSMC‘s 3nm process for the M2 Pro chip, which is expected to come with the company’s new lineup of 14-inch and 16-inch MacBook Pro laptops. These MacBook Pro laptops are expected to arrive later this year or early 2023.

The report further mentions that a new high-end Mac Mini could also come with the new M2 Pro chip. Apple is expected to utilise TSMC’s 3nm process for its A17 Bionic chip for next year’s iPhone 15 Pro models. This technology could also be used for the M3 chip for future generations of MacBook Air and 13-inch MacBook Pro models.

The M2 Pro chips manufactured using the 3nm process are expected to offer faster performance and better energy efficiency in comparison to the ones made using TSMC’s 5nm process. It could result in improved battery life for future iPhones and Macs.

Apple is expected to be the first to use TSMC’s 3nm chips by the end of this year. However, companies like Intel, Super Micro, Huida, Qualcomm, MediaTek, Broadcom, and more will seemingly get their hands on 3nm chips next year. Even AMD is expected to use TSMC’s 3nm process for some of its products after completely transitioning to the Zen 5 architecture next year or the year after.


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Honor MagicBook 14 With 14-Inch Display, 75Wh Battery Launched in Malaysia: All Details



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Twitter Launches Tweeten App for Mac, Windows as a Replacement for TweetDeck

Twitter has launched the Tweeten application for Windows and Mac as a replacement for the outgoing TweetDeck application. Twitter had earlier announced that it will be “saying goodbye” to TweetDeck app for Mac to focus on making it better and testing Twitter’s new preview. The microblogging platform has informed that the app will no longer exist for Mac users starting July 1 but users can still access TweetDeck on web. The new application looks similar to the TweetDeck, making the transition phase for users easier.

The microblogging platform, Twitter has announced that it has launched a new application called Tweeten for Windows and Mac. The new application looks like a replacement for the outgoing TweetDeck application. Tweeten has a similar user interface to TweetDeck that will make it easier for users to switch from the old app to the new one. It will allow users to tweet right from the app and make columns of all different topics that the users wish to monitor. Tweeten app is integrated with the macOS Touch Bar that will let the users access important shortcuts directly from the touch bar.

Tweeten will also offer more ways than the TweetDeck app for users to customise the application according to their preference. This can be done from the settings menu. Tweeten sends custom notifications to users that will also enable them to retweet and like a tweet straight from the notification. Users can also choose where the notification will appear on the screen and for how much duration will they stay visible. Twitter called the new application “TweetDeck, but with all the important features.” Users can now filter accounts and tweets based on what they wish to see. Tweeten will allow users to download a video from Twitter directly as well.

People who wish to download the Tweeten app on their Mac or Windows laptops and PCs can do so using the download link available on the Tweetnep website. Users can also choose to get the app as a Google Chrome extension as well.

Twitter had earlier announced that the TweetDeck will no longer be available for Mac users starting July 1. Twitter added that TweetDeck will continue to be accessible for users on web.


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Webb Telescope: NASA to Reveal Deepest Image Ever Taken of Universe



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Chrome for Windows, Mac, Linux Updates With 4 High-Risk Vulnerability Fixes

Google has released Chrome version 102.0.5005.115 for Windows, Mac, and Linux. The new release fixes a total of seven security vulnerabilities — of which, four are marked highly severe. The update is rolling out to desktop users across Windows, macOS and Linux platforms over the coming days. India’s Computer Emergency Response Team (CERT-In) and the United States Cybersecurity and Infrastructure Agency (CISA) have urged users to install the latest Chrome release on their systems to prevent the reported issues.

The four security issues that are rated with high severity are tracked as CVE-2022-2007, CVE-2022-2008, CVE-2022-2010, and CVE-2022-2011, as Google explained in a blog post.

The vulnerability that is tracked as CVE-2022-2007 is a Use-After-Free (UAF) vulnerability, which exists in the WebGPU to API and allows attackers to hack by exploiting incorrect use of dynamic memory. The CVE-2022-2008 flaw, on the other hand, results in out-of-bounds memory access in WebGL.

Chrome’s compositing component is also found to have the CVE-2022-2010 issue, which is an out-of-bounds read vulnerability. The last high-risk vulnerability, CVE-2022-2011, is a use after free flaw in ANGLE engine abstraction layer.

Although Google has detailed the four highly severe issues, it has not provided public access to the details as a large number of users are yet to bring the fix.

“We will also retain restrictions if the bug exists in a third-party library that other projects similarly depend on, but haven’t yet fixed,” the company said.

In response to the public disclosure from Google, CERT-In has released a vulnerability note to urge users to install the latest update.

“Successful exploitation of these vulnerabilities could allow an attacker to execute arbitrary code on the targeted system,” the advisory by the nodal agency said.

The CISA has also encouraged users and administrators to apply the update on their systems.

Users can check for the latest release on their Windows, Mac, and Linux systems by going to Chrome > About Google Chrome. The update can also be installed by clicking on the three-dot button from the right-most corner and then Help > About Google Chrome.


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macOS 13 Ventura Unveiled at Apple WWDC 2022: Release Date, Eligible Devices, More

Apple showcased macOS 13 Ventura at the WWDC 2022 keynote on Monday as its next iteration of software for Mac and MacBook machines. The new macOS release brings an updated multitasking experience through Stage Manager. The macOS 13 also brings redesign of preloaded apps including Mail, Notes, Reminders, and Messages. Additionally, Apple has brought a new Safari browser to macOS 13 Ventura. The new macOS release will be available for download on both Intel-powered as well as Apple Silicon-based Mac devices.

macOS 13 Ventura availability

macOS 13 Ventura has initially been available for testing purposes to developers who have signed up on the Apple Developer Program. The new release will also beta available as a public beta next month and will be available for download later this year — probably in October.

macOS 13 Ventura features

One of the key highlights of macOS 13 Ventura is the the addition of Stage Manager that lets you look at the list of apps running on the system from a single window. Users can activate Stage Manager directly from the Control Centre to easily multitask.

The new macOS release also includes overhauled System Preferences that now look similar to the Settings app on the iPhone and iPad. It includes individual settings being organised by app. The new macOS release also includes some redesigned apps to enhance user experience throughout the platform.

Apple has also introduced a new Messages app that brings social network-like functionality. The app is available pre-installed on macOS 13 — just like its version available on iOS 16.

The new macOS release comes with an updated Spotlight that lets you receive rich results for your searches. Spotlight on macOS 13 is also capable of starting a timer.

Apple has preloaded macOS 13 Ventura with an updated Mail app. It brings an improved search with suggestions and spelling correction. Further, Safari on macOS Ventura has been updated, with the ability to share tabs with friends and Passkeys. The latter is designed as a passwordless authentication standard that you can use to log in to different Web services using biometrics via Touch ID.

macOS 13 Ventura features at a glance
Photo Credit: Apple

 

For an enhanced gaming experience, macOS Ventura works with Metal 3 and MetalFX Upscaling. The addition of MetalFX Upscaling is claimed to enable developers to render rich, visually complex scenes faster on the system. Apple announced that No Man’s Sky will be the first game to come on the Mac later this year that will be one of the among the initial titles to use MetalFX Upscaling.

Apple has extended Continuity to FaceTime to let users hand-off calls from their iPhone to a Mac seamlessly. Further, macOS Ventura comes with the Continuity Camera feature to allow you to use your iPhone as a webcam with your MacBook to get an enhanced video conferencing experience. The Continuity Camera feature works with Apple’s existing Centre Stage and Portrait Mode. The feature also works with apps including FaceTime, Zoom, Microsoft Teams, and WebEx. Moreover, users will be able to get Belkin stands to attach their iPhone with a MacBook to use Continuity Camera.

The new macOS release also includes the Clock app as well as new Memoji customisations. It also brings Shared Photo Library that is also available on iOS 16. Further, the operating system has the ability to lift subject from background in visuals.


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WWDC 2022 Keynote Today: How to Watch Livestream, What to Expect

WWDC 2022 is set to begin today, June 6. Apple is hosting its WWDC 2022 keynote in the evening (as per the Indian time) virtually to showcase its new software developments. Continuing the trend, the Cupertino company is expected to unveil the next versions of its operating systems that would be titled iOS 16, iPadOS 16, macOS 13, watchOS 9, and tvOS 16. Some recent reports suggested that alongside its new software releases, Apple would show off some of its next-generation hardware at the keynote. It could be the new MacBook Air with M2 chip or just some incremental Mac mini and Mac Pro updates.

WWDC 2022 keynote livestream timings, how to watch online

The WWDC 2022 keynote will take place at 10am PT (10:30pm IST) today. The event will be livestreamed through Apple’s YouTube channel. It will also be streamed through the Apple.com website, Apple TV app, and the Apple Developer app. Moreover, you can watch it live from the video player embedded below.

What to expect at WWDC 2022

Similar to past years, Apple at its WWDC keynote is expected to announce a range of software-focussed developments. We can safely expect the launch of iOS 16, iPadOS 16, macOS 13, watchOS 9, and tvOS 16 at the event. Additionally, there are reports to suggest the launch of some new Mac devices at the keynote. These could include the anticipated MacBook Air with M2 chip as well as new Mac mini and Mac Pro models.

iOS 16

One of the biggest attractions of this year’s WWDC is expected to be iOS 16. The new operating system for the iPhone will include updates to notifications as well as new Messages and Health apps, according to Bloomberg’s Mark Gurman. On the messaging front, the iOS 16 update is said to bring new audio-centric experiences.

Apple is reported to upgrade the interface of iOS 16 with redesigned app icons, interactive widgets, upgraded theme options, and a floating app window. Further, some improvements are said to be available on the part of the preloaded Camera app. Users could also expect lock screen enhancements such as new wallpapers and widget-like capabilities.

In addition to the regular upgrades, iOS 16 is said to have support for an always-on lock screen experience where the operating system will reduce frame rate significantly to display “glanceable information” when the display is idle. This addition, however, is expected to be enabled exclusively on the iPhone 14 Pro and iPhone 14 Pro Max at a later stage.

iPadOS 16

Similar to iOS 16, iPadOS 16 is expected to grab some eyeballs at this year’s WWDC keynote. The new iPadOS version will get an improved multitasking experience that would be similar to that of macOS, Gurman said in his recent newsletter Power On.

Users are reported to be able to resize app windows while using multiple apps at the same time. This would be a step ahead of the existing Split View where two apps can be open simultaneously.

macOS 13

Although there aren’t many reports to suggest what is coming on macOS 13, we can expect some incremental changes. One of them could be an update to the Settings app. Some key preloaded Apple apps on the operating system are also expected to receive a design overhaul this time.

On the part of its naming, macOS 13 may get Mammoth title — based on a region that is in the Sierra Nevada. Apple considered taking names from the mountain range for some of the previous macOS versions as well.

watchOS 9

For Apple Watch users, this year’s WWDC keynote is expected to bring watchOS 9 as an update. The new watchOS release will have improvements that will “affect day-to-day operating and navigation” on the Apple Watch, per Gurman. There could also be the new Health app to improve health tracking on the Watch hardware — alongside the iPhone.

Apple is also said to be working on improving the atrial fibrillation detection feature that would be detailed at the keynote.

tvOS 16

There aren’t any significant details on what exactly we can expect on the part of tvOS 16. However, it is safe to assume that Apple would announce some improvements to retain its users on Apple TV. Some reports in the past also suggested that Apple would bring homeOS as its dedicated smart home operating system. That has not yet officially been announced. Nevertheless, we can expect that tvOS could get some new features to control smart home devices from a TV.

New Mac devices

Although Apple has a history of launching its hardware at dedicated events, recent reports suggested that the company could use its WWDC keynote this time to unveil some new Mac devices. These could include the new MacBook Air that has been a part of the rumour mill for some time. It would come with some new design-level changes including eye-catching shades — alongside the M2 chip. The new Apple silicone is not likely to have significant performance upgrades over the existing M1 series but some improvements to help deliver an improved battery life and an enhanced user experience.

Alongside the new MacBook Air, high-end Mac mini and new Mac Pro are rumoured to be in the works. Both could be shown at the keynote as Apple’s new hardware offerings.

However, for the iPhone and Apple Watch lovers, Apple is expected to host the special event sometime in September only.


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