Tuesday, 30 July 2019

Apple’s revenue growth slows as iPhone sales dip

Apple just released its Q3 earnings and it had a solid June quarter, outperforming analyst expectations. The company reported $53.8 billion in revenue and $2.19 earnings per share. The company’s stock popped 3 percent on the news.

Apple’s June quarter revenue showcases just how much revenue growth has been slowing for the company. The Q3 2019 revenue of $53.8 billion just peeks above the Q3 2018 revenue of $53.3 billion.

iPhone revenue had the biggest year-over-year dip going from $29.5 billion in last year’s Q3 to just $26 billion this most recent quarter. The year-over-year decline in iPhone sales was made up for in a boost in all of the company’s other product categories including a major bump in Wearables sales which crossed $5.5 billion in Q3.

The company hasn’t been sharing device numbers for the last several quarters and has instead focused solely on revenues, a sign of both the stagnating iPhone sales and the spike in the iPhone’s average selling price.

The story for the last several quarters that Cook and Co. have been selling is the spike in Services revenue. This quarter, Services didn’t grow quite as much as analysts hoped but it still reached $11.5 billion.

One of the company’s biggest headlines this quarter came last week when the company announced it was purchasing “most of” Intel’s modem business for $1 billion. There aren’t likely to be too many near-term effects of this deal though Apple aiming to own more of its supply chain has certainly been a decades-long effort for the company.

Updating



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Inside the history of Silicon Valley labor, with Louis Hyman

As I wrote for TechCrunch recently, immigration is not an issue always associated with tech — not even when thinking about the ethics of technology, as I do here.

So when I was moved to tears a few weeks ago, on seeing footage of groups of 18 Jewish protestors link arms to block the entrances to ICE detention facilities, bearing banners reading “Never Again” in reference to the Holocaust — these mostly young women risking their physical freedom and safety to try to help the children this country’s immigration service is placing in concentration camps today, one of my first thoughts was: I can’t cover that for my TechCrunch column. It’s about ethics of course, but not about tech.

It turns out that wasn’t correct. Immigration is a tech issue. In fact, companies such as Wayfair (furniture), Amazon (web services), and Palantir (the software used to track undocumented immigrants) have borne heavy criticism for their support of and partnership with ICE’s efforts under the current administration.

And as I discussed earlier this month with Jaclyn Friedman, a leading sex ethics expert and one of the ICE protestors arrested in a major demonstration in Boston, social media technology has been instrumental in building and amplifying those protests.

But there’s more. IBM, for example, has an unfortunate and dark history of support for Nazi extermination efforts, and many recent commentators have drawn parallels between what IBM did during the Holocaust and what companies like Palantir are beginning to do now.

Dozens of protestors huddle in the rain outside Palantir HQ.

I say “companies,” plural, with intention: immigrant advocacy organization Mijente recently released news that Anduril, the company founded by Palmer Luckey and composed of Palantir veterans, now has a $13.5 million contract with the Marine corps for their autonomous surveillance “Lattice” towers at four different USMC bases, including one border base. Documents procured via the Freedom of Information Act show the Marines mention “the intrusion dilemma” in their justification for choosing Anduril.

So now it seems the kinds of surveillance tech we know are badly biased at best — facial recognition? Panopticon-style observation? Algorithms of various other kinds — will be put to work by the most powerful fighting force ever designed, for expanded intervention into our immigration system.

Will the Silicon Valley elite say “no”? To what extent will new protests emerge, where the sorts of people likely to be reading this writing might draw a line and make work more difficult for their peers at places like Anduril?

Maybe the problem, however, is that most of us think of immigration ethics as an issue that might touch on a small handful of particularly libertarian-leaning tech companies, but surely it doesn’t go beyond that, right? Can’t the average techie in San Francisco or elsewhere safely and accurately say these problems don’t actually implicate them?

Turns out that’s not right either.

Which is why I had to speak this week with Cornell University historian Louis Hyman. Hyman is a Professor at Cornell’s School of Industrial and Labor Relations, and Director of the ILR’s Institute for Workplace Studies, in New York. In our conversation, Hyman and I dig into Silicon Valley’s history with labor rights, startup work structures and the role of immigration in the US tech ecosystem. Beyond that,  I’ll let him introduce himself and his extraordinary work, below.

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Louis Hyman. (Image by Jesse Winter)

Greg Epstein: I discovered your work via a piece you wrote in the Washington Post, which drew from your 2018 book, Temp: How American Work, American Business, and the American Dream Became Temporary. In it, you wrote, “Undocumented workers have been foundational to the rise of our most vaunted hub of innovative capitalism: Silicon Valley.”

And in the book itself, you write at one point, “To understand the electronics industry is simple: every time someone says “robot,” simply picture a woman of color. Instead of self-aware robots, workers—all women, mostly immigrants, sometimes undocumented—hunched over tables with magnifying glasses assembling parts, sometimes on a factory line and sometimes on a kitchen table. Though it paid a lot of lip service to automation, Silicon Valley truly relied upon a transient workforce of workers outside of traditional labor relations.”

Can you just give us a brief introduction to the historical context behind these kinds of comments?

Louis Hyman: Sure. One of the key questions all of us ask is why is there only one Silicon Valley. There are different answers for that.



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Apple, Microsoft and Google to test new standard for patient access to digital health data

A newly released data model and draft implementation guide for providing digital access to historical health insurance claims data directly to patients could mean you have better access to this info from the devices you use everyday. Called the CARIN Blue Button API, it’s a new model developed by private sector partners including consumer organizations, insurance providers, digital health app developers and more, this new draft implementation will be in testing beginning this year, with participating companies including a number of different state-specific BlueCross/BlueShield providers, the State of Washington – and Apple, Google and Microsoft.

The news was announced today at the White House Blue Button Developers Conference in Washington D.C., and builds on the work done last year by the Centers for Medicare and Medicaid Services to launch Blue Button 2.0, a new standard aimed at providing Medicare beneficiaries in the U.S. access to all of their historical claims information in one place from whatever application they choose to use.

All of the organizations participating in the draft testing process will perform “real-world testing” of the CARIN model developed by the multi-disciplinary working group, with the aim of preparing for a broad, product launch of the data standard in 2020.

Seeing Apple, Google and Microsoft on that list along with a significant number of health care providers is a good sign, since it should mean more data portability and choice when it comes to how you access your own patient information, rather than it being decided on a platform-by-platform basis.

Apple already built a Health Records section into its own native Health app in iOS at the beginning of last year, and while it works with standards sometimes adopted by health care providers, it’s far from a universal, truly interoperable health care history feature on its own. Apple has been building partnerships with agencies and providers including Veterans’ Affairs and Aetna to flesh out its personal health data offering for users, and Microsoft has its own health records offering called HealthVault.



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Apple is hosting augmented reality art walking tours in major cities

Apple is combining two long-standing major efforts in a new push, making AR more consumer-friendly and helping portray Apple Stores as civic centers where communities can come together.

The project, called [AR]T Walk, is a walking tour through various city centers around the globe aiming to help the digital art works of artists come alive in physical spaces. The tours are taking place in Hong Kong, London, New York, Paris, San Francisco and Tokyo through mid-August.

Showcasing digital art in geo-specific locations isn’t a new concept. In 2017, Snapchat debuted a partnership with Jeff Koons in Central Park, though the company had some issues with ensuring the tech worked reliably.

People looking to take part in the AR walking tours can sign up on Apple’s site. The tours seem to last a couple of hours and involve a 1.5-mile walk. The artists behind the work are Nick Cave, Nathalie Djurberg and Hans Berg, Cao Fei, John Giorno, Carsten Höller and Pipilotti Rist.



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Google’s new version of Android Auto focuses on Assistant

Google is starting to roll out an updated version of its in-car platform Android Auto that aims to make it easier and safer for drivers to use.

The version, which was first revealed during Google I/O 2019, has a dark theme, new fonts and color accents, more opportunities to communicate with Google’s virtual assistant and the ability to fit wider display screens that are becoming more common in vehicles.

Android Auto, which launched in 2015, is not an operating system. It’s a secondary interface — or HMI layer — that sits on top of an operating system and brings the look and feel of a smartphone to the vehicle’s central screen. Rival Apple introduced its own in-car platform, Apple CarPlay, that same year.

Automakers, once hesitant to integrate Android Auto or Apple CarPlay into vehicles have come around. Today, Android Auto is available in more than 500 car models from 50 different brands, according to Android Auto product manager Rod Lopez.

Car owners with Android Auto support will start to see the new design over the next few weeks. However, updates will not be made to the standalone version of Android Auto, a smartphone app that gave users access to the platform even if their car wasn’t compatible to Android Auto. Google says it plans to “evolve” the standalone phone app from Android Auto to the Assistant’s new driving mode in the future.

Meanwhile, the in-car version features some important changes, notably more opportunities for drivers to use their voice — and not their hands — to interact with Android Auto. Users will notice the Google Assistant badge on Android Auto, that when tapped will provide information about their calendar, read the weather report or news.

3Android Auto Google Assistant Badge

Other new features include a new app launcher designed to let users access their favorite apps with fewer taps. A button on the bottom left of the screen launches this feature. Once deployed, users will see app icons with the most commonly used ones featured in the top row.

Android Auto has also improved its navigation, which is perhaps the most commonly used feature within the platform. Now, the navigation bar sits at the bottom of the display and allows users to manage multiple apps. This improvement means users won’t miss an exit or street while they’re listening to Spotify.

4Android Auto Media

The navigation feature also pops up as soon as the driver connects with Android Auto. If a route is already queued up on a phone, Android Auto will automatically populate the directions.

This latest version also has a new notification button — located on the bottom right corner — houses recent calls, messages and alerts. Drivers can tap the mic button or say ” “Hey Google” to have the Google Assistant help make calls, send messages and read notifications.

Google has also developed an operating system called Android Automotive OS that’s modeled after its open-source mobile operating system that runs on Linux. Instead of running smartphones and tablets, Google modified it so it could be used in cars. Polestar, Volvo’s standalone performance electric car brand, is going to produce a new vehicle, the Polestar  2, that has an infotainment system powered by Android Automotive OS.



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Google’s new version of Android Auto focuses on Assistant

Google is starting to roll out an updated version of its in-car platform Android Auto that aims to make it easier and safer for drivers to use.

The version, which was first revealed during Google I/O 2019, has a dark theme, new fonts and color accents, more opportunities to communicate with Google’s virtual assistant and the ability to fit wider display screens that are becoming more common in vehicles.

Android Auto, which launched in 2015, is not an operating system. It’s a secondary interface — or HMI layer — that sits on top of an operating system and brings the look and feel of a smartphone to the vehicle’s central screen. Rival Apple introduced its own in-car platform, Apple CarPlay, that same year.

Automakers, once hesitant to integrate Android Auto or Apple CarPlay into vehicles have come around. Today, Android Auto is available in more than 500 car models from 50 different brands, according to Android Auto product manager Rod Lopez.

Car owners with Android Auto support will start to see the new design over the next few weeks. However, updates will not be made to the standalone version of Android Auto, a smartphone app that gave users access to the platform even if their car wasn’t compatible to Android Auto. Google says it plans to “evolve” the standalone phone app from Android Auto to the Assistant’s new driving mode in the future.

Meanwhile, the in-car version features some important changes, notably more opportunities for drivers to use their voice — and not their hands — to interact with Android Auto. Users will notice the Google Assistant badge on Android Auto, that when tapped will provide information about their calendar, read the weather report or news.

3Android Auto Google Assistant Badge

Other new features include a new app launcher designed to let users access their favorite apps with fewer taps. A button on the bottom left of the screen launches this feature. Once deployed, users will see app icons with the most commonly used ones featured in the top row.

Android Auto has also improved its navigation, which is perhaps the most commonly used feature within the platform. Now, the navigation bar sits at the bottom of the display and allows users to manage multiple apps. This improvement means users won’t miss an exit or street while they’re listening to Spotify.

4Android Auto Media

The navigation feature also pops up as soon as the driver connects with Android Auto. If a route is already queued up on a phone, Android Auto will automatically populate the directions.

This latest version also has a new notification button — located on the bottom right corner — houses recent calls, messages and alerts. Drivers can tap the mic button or say ” “Hey Google” to have the Google Assistant help make calls, send messages and read notifications.

Google has also developed an operating system called Android Automotive OS that’s modeled after its open-source mobile operating system that runs on Linux. Instead of running smartphones and tablets, Google modified it so it could be used in cars. Polestar, Volvo’s standalone performance electric car brand, is going to produce a new vehicle, the Polestar  2, that has an infotainment system powered by Android Automotive OS.



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Wall St analyst Laura Martin on the fate of Netflix, breaking up Google, EU regulation, and a decade of more money for Hollywood

The rise of streaming video platforms like Netflix and Amazon Prime has upended traditional power balances in Hollywood and is reorganizing the way we consume films and TV series as consumers.

Following her talk at the recent Banff World Media Festival in Canada, I interviewed Laura Martin, the senior analyst covering entertainment and internet stocks at leading investment bank Needham & Company, to sort out how the pieces are moving in this chess game between content creators, streaming services, consumers, and government regulators.

We discuss why Netflix is still at risk of a downfall, the effect of EU content quotas, why Martin thinks regulators should break up Google, and why video streaming and game streaming are likely to merge into the same subscription products.

Here is the transcript of our discussion, edited for length and clarity:


Eric Peckham: There’s an optimistic case that the rise of online video streaming is a win for both consumers and content creators because it creates a vast landscape of content platforms. Onstage in Banff, you argued that the number of content platforms (and thus the number of content buyers) will in fact shrink. Why do you see it going that direction?

Laura Martin: There are 4,000 video apps on the Roku platform today (and similarly on Samsung and on Amazon Fire). What you’ll see is a consolidation in the industry as we get big players like the Walt Disney Company, AT&T, and Apple coming into the DTC business with big, deep pockets. Although we have more buyers of content today, it’s driving prices up.

It is likely that the big players are just battling out between themselves, putting smaller players out of business. Over a 10-year time frame, I expect just three or four winners, and that will bring more discipline back into the financial aspects of the business.

Peckham: What will separate the winners from the losers here?



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