Apple braces for iPhone shipment delays

Karla Perry on November 7, 2022

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Apple is dealing with the same crisis as the rest of the tech industry, and the company will likely have another setback.

According to the tech giant, some of the shipments of iPhone 14 models will be “temporarily affected” by Covid restrictions in China.

Last week, China’s largest iPhone assembly site suffered a Covid outbreak, creating a problem for the tech giant.

Statement

Apple released a statement on Sunday to shed some light on the situation.

The company announced that its Zhengzhou assembly plant is operating at significantly reduced capacity due to Covid restrictions.

“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” Apple’s statement reads.

The company expects fewer Pro model shipments than expected despite the positive news.

They also said customers will have to wait longer to receive their new iPhone models.

Outbreak and lockdown

The Zhengzhou factory is one of the largest suppliers of the tech giant.

Foxconn, Apple’s largest supplier, operates the Zhengzhou plant.

Since mid-October, the facility has been fighting a Covid epidemic triggering panic among migrant workers.

Last week, authorities ordered a seven-day closure of the factory site.

The lockdown, while necessary, puts pressure on Foxconn and Apple, especially as the holiday season is nearing.

It also highlights the influence of China’s strict zero-Covid policy, which harms domestic and international businesses.

China’s approach

Recently, global and Chinese companies across various industries face severe business disruptions.

The disruption comes from China stepping up its zero-covid approach.

While things are unlikely to improve anytime soon, China’s State Council reiterated its unwavering commitment to the zero-covid policy at a press conference on Saturday.

The statement comes after rumors were circulating that the Chinese government will be easing restrictions on the pandemic and reducing quarantine days.

Other notes

Although the tech giant is the latest victim of China’s zero-Covid policy, Apple is outpacing its compatriots in the tech sector despite the global economic downturn.

In October, Apple beat Wall Street analysts’ sales and earnings forecasts for the September quarter.

Reference:

Apple expects iPhone 14 shipments to be hit by China’s Covid curbs

Federal Reserve marches on with consecutive rate hike

Sarah White on November 7, 2022

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The Federal Reserve approved another consecutive rate hike on Wednesday, one of the latest and necessary measures to fight inflation.

The hike

The Federal Reserve approved another consecutive rate hike of three-quarters of a percentage point.

The rate hike brings the central bank’s average policy rate to a new range from 3.75% to 4%.

The latest hike is the highest interest rate in over a decade, going as far back as January 2008.

The Fed’s rate hike is the latest aggressive attempt to try to curb the inflation plaguing the US economy.

The decision

The Wednesday decision arrives after the Federal Open Market Committee’s two-day policy meeting.

Additionally, it marks the Federal Reserve’s most challenging policy move since the 1980s.

The decision threatens to worsen the economic pain for millions of US businesses and households by increasing the cost of borrowing.

Furthermore, it could potentially trigger a recession.

Soft landing

In a press conference following the meeting, Federal Reserve Chairman Jerome Powell acknowledged that the road to a soft landing was narrowing.

Despite the challenge, he assures people that a soft landing is still possible.

Soft landings are a process of cooling the economy while simultaneously avoiding a recession.

“The inflation picture has become more and more challenging over the course of this year,” said Powell.

“That means we have to have policy be more restrictive, and that narrows the path to a soft landing.”

Jerome Powell reiterated his commitment to curb inflation.

Furthermore, he said continued inflation would cause more economic suffering than a recession.

New language

The Fed’s November statement included a new section added by officials, which surprised many.

The Federal Reserve generally repeats the same language with each release.

In its latest statement, the Federal Open Market Committee assumes that further increases in the target range are needed for monetary policy guidance.

Monetary policy is tight in an attempt to bring inflation down to 2% eventually.

Fed watchers might speculate that raising the inflation target “over time” would have fewer negative consequences.

Moreover, it could mean that the Fed would revert from aggressive rate hikes to lower rate hikes in the long run.

The statement further stated:

“In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”

Cooling economy

The new language also allows for lower interest rates and recognizes that monetary policy can cool the economy.

Despite the economic data exhibiting strong growth, the cooling economy appears to be working.

Wall Street may also acknowledge the new language as a response to criticism that the Fed is over-correcting with high rate hikes that could hurt the economy.

Markets

Recent data shows that mortgage rates are reaching unprecedented levels last seen 20 years ago.

Additionally, they are starting to weigh on the housing market.

New home sales in September were 10.9% lower than in August and 17.6% lower than in 2021.

Fortunately, inflationary pressures are also easing.

Wages rose 1.2% in the third quarter, compared to 1.6% in the second quarter.

Despite the changes, the labor market remained tight.

The number of vacancies rose to 1.9 vacancies per available employee in September.

Friday’s jobs report is expected to show the economy will add 200,000 jobs in October.

Although lower than last month, the number is still at an all-time high.

Reference:

The Fed makes history with a fourth straight three-quarter-point rate hike

Elon Musk will lay off Twitter employees later today

Stephen Cook on November 7, 2022

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Elon Musk buying Twitter continues to be a hot topic across several industries after the richest man took over last week.

The Tesla CEO has already stripped the company of its top executives, but now he’s looking to do the same with the current workforce.

The news

According to a memo sent to Twitter staff, Elon Musk will fire employees on Friday morning.

The news comes after several employees filed a collective lawsuit against him.

They claim the layoffs violate labor laws.

Musk’s email arrived Thursday night to inform employees that they will be notified at noon on Friday.

The notification informs them of their employment status on Twitter.

The email

A copy of Musk’s email reads:

“If your employment is not impacted, you will receive a notification via your Twitter email.”

“If your employment is impacted, you will receive a notification with the next steps via your personal email.”

Musk’s email also states that the company’s office will temporarily close and suspend access to the badge.

The step is to ensure the security of the company’s systems and employees.

The memo comes after news surfaced about Elon Musk’s plans to lay off more than half of his staff after buying Twitter for $44 billion last week.

Lawsuit

Twitter employees filed a class action Thursday.

They argue that the company is in violation of the federal Worker Adjustment and Retraining Act (WARN Act) after firing several employees.

The WARN Act requires employers with more than 100 employees to provide 60 days’ written notice prior to a mass layoff.

Additionally, attorney Shannon Liss-Riordan, who had filed the lawsuit, released a statement explaining the action.

“Elon Musk, the richest man in the world, has made clear that he believes complying with federal labor laws is ‘trivial,'” said Liss-Riordan.

“We have filed this federal complaint to ensure that Twitter be held accountable to our laws and to prevent Twitter employees from unknowingly signing away their rights.”

Since Musk took over the social media company, Twitter has had around 7,500 employees.

Other notes

According to two individuals familiar with the situation at Twitter, Elon Musk started his control over the company by removing CEO Parag Agrawal and two other executives.

The company’s C-suite is almost empty in less than a week from firings and resignations.

Additionally, Musk dissolved Twitter’s former board of directors.

Reference:

Employees sue Elon Musk’s Twitter after staff are informed that layoffs are set to begin

Twitter thinking about charging for verification

Ken Jacobs on November 7, 2022

Twitter is under new management and appears to be considering selling verified accounts to users for a price of $19.99.

The price comes with a subscription service and might remove the blue check marks from accounts.

According to internal Twitter documents, the platform will remove the blue check marks if existing users don’t pay for the product within 90 days.

Changes

Despite the news, there is still a chance that the plan and prices will change.

Elon Musk, the new platform owner, wants to make his mark on Twitter.

It remains to be seen whether verified users will be free from paying the new fee.

For example, international organizations and charities are verified on Twitter.

The changes would update Twitter Blue, the platform’s paid feature, which currently costs $4.99.

The authentication function is available in four countries, including the United States.

Documents indicate that the verification payment feature will roll out in the four countries for only $ 19.99 per month.

The Verge initially reported on the pricing plan on Sunday.

Verification

On Sunday, new Twitter owner Elon Musk tweeted about the verification change.

“The whole verification process is being revamped right now,” he said.

Later that day, Musk took part in a survey by Jason Calcanis, a member of his inner circle, asking how much people are willing to pay for verification.

It wasn’t surprising that the majority of respondents would rather not pay.

Twitter shakeup

Since acquiring the popular social media platform, Musk has been quick to shake up the company.

One of his first decisions was to fire its senior executives.

Since then, Musk has conducted polls asking his followers if he should relaunch Vine, Twitter’s former shorthand video service.

Twitter’s new owner also accepted a user’s suggestion to reconsider the platform’s character limits.

It is yet to be seen if Musk will deliver on the changes he mentioned.

Early signs

Before the deal’s completion, Elon Musk initially made suggestions linking verification to a paid subscription service.

Last April, he said that the platform’s paid subscribers should also receive an authentication check.

Musk elaborated in another tweet, writing:

“Price should probably be ~$2/month but paid 12 months up front & account doesn’t get checkmark for 60 days (watch for CC chargebacks) & suspended with no refund if used for scam/spam.”

The blue check mark

Although the blue check mark is a status symbol on Twitter, it also reassures others that the account is genuine.

It’s especially useful for people trying to distinguish between celebrities, brands, and other influential accounts and posers.

However, if Elon Musk creates a paid barrier, it will become more difficult for users to distinguish whether an account is a bot.

Months earlier, Musk said he wanted to rid the platform of spam bots and fake accounts.

Eventually, the same argument became his main reason for trying to get out of the deal.

Musk would later reverse his decision and buy the popular social media platform.

Reference:

Want a blue check mark on Twitter? It may soon cost you $19.99 a month

Elon Musk to shift revenue from ads to Twitter Blue

Sarah White on November 7, 2022

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Elon Musk has been at work with significant changes to the popular social media platform Twitter after buying the company last week.

His first major decision was to remove senior executives from the company.

Since then, Musk has shifted his focus on Twitter’s revenue.

Twitter Blue

As Twitter’s new CEO, Musk made his intention clear to make the company less reliant on advertising for revenue.

He is thinking, in particular, of transforming Twitter’s premium service, Twitter Blue.

Right now, Twitter Blue is available in four countries for $4.99 per month.

Musk shared that he plans to raise the price to $8.

However, the most significant change in his plans is for Twitter Blue to have a blue checkmark next to the paying user’s handle.

The blue checkmark is often seen on verified profiles, most of which belong to organizations, athletes, celebrities, and internet celebrities.

It also acts as a symbol of status on Twitter.

Elon Musk’s plan is a direct answer to claims that allege the service would cost $20.

Changes

Tesla’s founder and CEO unfolded his new monetary plan in a series of tweets.

There, Elon Musk described the current Twitter system “bull****.”

His plan includes giving verification services to users who are willing to spend money every month for Twitter Blue.

The subscription service will prioritize the user’s interactions, comments and mentions.

Musk’s proposed Twitter Blue subscription doubles as a method to combat spam.

Benefits of the service

Users who pay for the Twitter Blue service can post longer videos and audio.

Additionally, Elon Musk says the change will allow subscribers to see half of the ads that other users see.

Meanwhile, publishers who want to work with Twitter will get the exclusivity of a paywall bypass.

Another key feature that Twitter Blue subscribers will get is the ability to edit their own tweets, a long-awaited feature.

For now, it is only enabled for Blue users.

However, the editing feature will soon be free for everyone, according to Casey Newton of Platformer.

The arrival of the new update is currently pure speculation on when and if.

However, upon the update’s arrival, users will finally get to experience writing a secondary tag.

As of now, secondary tags are exclusive to high-profile politicians.

Reference:

Musk to increase Twitter Blue subscription to $8, verified checkmarks will be secondary

Apple continues to fare well amid economic downturn

Stephen Cook on November 7, 2022

Apple successfully exceeded Wall Street analysts’ sales and earnings expectations for last month’s quarter, despite a tough earnings season.

Sales in the September quarter overcame fears that demand for the iPhone 14 series was weaker than expected.

Sales

Apple posted sales of more than $90 billion in its fiscal fourth quarter, up 8% from the same period last year.

Earnings also reached $20.7 billion, a gain of less than 1% from the same quarter a year ago.

Apple CFO Luca Maestri released a statement stating:

“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop.”

Following the report, the company’s shares fell more than 1% after-hours trading.

Apple products

Product sales grew 9% year-over-year to nearly 71 billion.

This indicates a decline in the growth rate from the previous year, but it was not unexpected.

Consumers are currently dealing with high inflation and fears of a possible recession.

Meanwhile, the substantial dollar value still raises questions internationally about Apple’s success in convincing users to upgrade their devices.

Apple CEO Tim Cook said the company hit record September quarter sales for the iPhone in an analyst call.

Services segment

Apple’s services segments reported revenue of $19.2 billion, up 5% from the prior year’s quarter and down from the year-over-year growth rate.

The Services segment includes paid subscriptions for Apple TV+ and Apple Music.

It is seen as a core unit for the company that will offset slower growth in areas of Apple’s hardware business.

According to Maestri, the company has more than 900 million paid service subscriptions.

There were only 155 million paid subscriptions in 2021.

Raised prices

The company raised prices this week for its music and TV streaming services to boost sales.

Investing.com analyst Jesse Cohen released a statement on their decision, saying:

“Like other major tech companies, even Apple is suffering from the negative impact of a worsening macro backdrop and ongoing supply chain woes.”

“Though, it has done a better job of navigating through the challenging environment,” Cohen added.

Luca Maestri says Apple expects a slowdown in year-over-year revenue growth in the December quarter.

He cites the strength of the US dollar and continued macroeconomic weakness as factors slowing growth.

Reference:

Apple is weathering the economic downturn better than fellow tech giants

Instagram outage leads to thousands suspended

Ken Jacobs on November 7, 2022

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Instagram users woke up to an app problem on Monday morning when thousands of people reported problems logging into the social media platform.

Users have complained that they were unable to access their accounts, while others have noticed a change in the follower count.

Many Instagram users seemed to be suspended.

The outage

During the outage, Instagram blocked users from accessing their accounts, most of whom received the same message:

“We suspended your account on October 31, 2022.”

The majority of affected users primarily held iPhone models.

Also, most users shared that their app was crashing and would be unusable before an update.

Down Detector

According to Down Detector, more than 7,000 users reported that the app was inactive around 10 pm.

Down Detector is a troubleshooting website that tracks outages.

In 45 minutes, the number of reports decreased significantly.

Instagram responds

The photo-sharing platform went on Twitter at 10:14 pm to address the issue.

“We’re aware that some of you are having issues accessing your Instagram account,” Instagram wrote.

“We’re looking into it and apologize for the inconvenience.”

Finally, the platform was able to fix the situation.

“We’ve resolved this bug now,” they announced at 6 pm.

“It was causing people in different parts of the world to have issues accessing their accounts and caused a temporary change for some in number of followers. Sorry!”

Instagram head Adam Mosseri also apologized on Twitter.

Follower loss

Manchester United striker Cristiano Ronaldo is a prime example of how the outage led to the loss of followers.

Around 10:15 am, the athlete lost over 3 million followers out of his 493 million from the day before.

However, the problem is now better, returning Ronaldo’s follower count to 493 million.

Meanwhile, Instagram’s main account had also dropped by more than a million.

References:

Instagram goes down for some users

Instagram fixes outage that told millions their accounts were suspended