Tech companies get a reprieve thanks to a reversal from the President on tariffs

President Donald Trump and the Office of the U.S. Trade Representative have issued technology companies some temporary tariff relief.

Citing an unwillingness to hit consumers with higher prices on things like computers, mobile phones, laptops, video game consoles, computer monitors, clothes and shoes before the holidays, the President and his trade reps are holding off on slapping additional tariffs on those products coming from China.

The President could also have been motivated by growing concerns that the ongoing trade war could trigger a global recession and hurt his chances for re-election in 2020.

Whatever the reason, the news sparked a stock market rally on Tuesday with investors ignoring the rising prices that 10% tariffs on imports that don’t include consumer goods would cause.

The Dow Jones Industrial Average and S&P 500 indices were both up 1.4% on the day, while the Nasdaq rose 1.9% — thanks in large part to a surge of Apple stock. The company’s stock rose $8.49 or over 4.2% to close at $208.97.

At the beginning of the month, President Trump said he would slap a 10% tariff on $300 billion worth of Chinese goods, which sent markets tumbling. An ensuing slight devaluation of the Chinese currency further pushed markets into a tailspin before they began to recover.

The news on Tuesday all but erased those earlier losses.

These market whipsaws between fear and trembling and irrational exuberance won’t end until the U.S. and China come to some sort of agreement in the trade war.

Earlier in the day, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with their Chinese counterparts Vice Premier Liu He and Commerce Minister Zhong Shan about the ongoing trade battle. The two Chinese officials issued a protest against the duties that were set to take effect in September. The two trade representatives have a called scheduled for another two weeks.

from Apple – TechCrunch https://ift.tt/2N3VDUO

Xiaomi tops Indian smartphone market for eighth straight quarter

Xiaomi has now been the top smartphone maker in India for eight straight quarters, becoming a constant headache for Samsung in the key overseas market that continues to show strong appetite for handsets as their shipment slows, or drops pretty much everywhere else in the world.

The Chinese electronics giant shipped 10.4 million handsets in the quarter that ended in June this year and assumed 28.3% of the market, research firm IDC reported Tuesday. Its closest rival, Samsung, which once held the tentpole position in India, shipped 9.3 million handsets in the nation during the same period and settled with 25.3% market share.

Overall, 36.9 million handsets were shipped in India during the second quarter of this year, up 9.9% from the same period last year and up 14.8% since the quarter before, IDC reported. This was the highest volume of handsets that has ever shipped during the second quarter in India, the research firm said.

As smartphone shipments slow or decline in most of the world, India has emerged as an outlier that continues to show strong momentum as tens of millions of people purchase their first handset in the country each quarter.

Research firm Counterpoint told TechCrunch that there are about 450 million smartphone users in India, up from about 350 million late last year and 300 million in late 2017. This growth has made India, home to more than 1.3 billion people, the fastest and second largest smartphone market worldwide with unmatched room for further growth.

Globally, smartphone shipments declined by 2.3% year-over-year in Q2 2019, IDC said.

Chinese phone makers Vivo and Oppo, both of which spent lavishly in marketing during the recent local favorite cricket season in India, also expanded their base in the country. Vivo had 15.1% of the local market share, up from 12.6% in Q2 2018, while Oppo’s share grew from 7.6% to 9.7% during the same period. The market share of Realme, which has gained following after it started to replicate some of Xiaomi’s early model, also shot up, moving from 1.2% in Q2 2018 to 7.7% in Q2 2019.

Samsung showroom demonstrator seen showing the features of new S10 Smartphone during the launching ceremony. (Photo by Avishek Das/SOPA Images/LightRocket via Getty Images)

The key to gaining market share in India has remained unchanged over the years: Increasingly bulk up the specs in handsets and sell them for low prices. The average selling price of a handset during the Q2 was $159 in the quarter that ended in June this year. 78% of the 36.9 million phones that shipped in India sported a sticker price below $200, IDC said.

That’s not to say that phones priced above $200 don’t have any takers in India. Per IDC, the fastest growing smartphone segment in the nation was priced between $200 to $300, witnessing a 105.2% growth over the same period last year.

Smartphones priced between $400 and $600 were the second-fastest growing segment in the country, witnessing a 16.1% growth since the same period last year. Chinese phone maker OnePlus assumed 63.6% of this premium segment, followed by Apple (which has less than 2% of the market share), and Samsung.

Feature phones that have maintained a crucial position in India’s handsets market continue to maintain their significant footprint, though their popularity is beginning to wane. 32.4 million feature phones shipped in India during Q2 this year, down 26.3% since the same period last year.

For Xiaomi, which shipped 32.3 million smartphones globally in Q2 2019, India has become its biggest market, the company said. Xiaomi entered the Indian market five years ago, and for the first two years, relied mostly on selling handsets online to cut overhead costs. But the company has since established and expanded its presence in the brick and mortar market, which continues to account for much of the sales in the country.

Earlier this month, the Chinese phone maker said it has set up its 2,000th Mi Home store in India. It is on track to have presence in 10,000 physical stores in the country by end of the year, and expects to see half of its sales come from the offline market by that time frame.

Samsung has stepped up its game in India in last two years, too. The company, which opened the world’s largest phone factory in the country last year, has ramped up productions of Galaxy A series of smartphones that are aimed at budget conscious customers and conceptualized a similar series that includes Galaxy M10, M20, and M30 smartphone models for the Indian market. The Galaxy A series handsets drove much of the growth for the company, IDC said.

Even as it lags behind Xiaomi, Samsung shipped more handsets in Q2 2019 compared to Q2 2018 (9.3 million vs 8 million) and its market share grew from 23.9% to 25.3% during the same period.

“The vendor was also offering attractive channel schemes to clear the stocks of Galaxy J series. Galaxy M series (exclusive online till the end of 2Q19) saw price reductions which helped retain the 13.5% market share in the online channel in 2Q19 for Samsung,” IDC said.

But the South Korean giant continues to have a tough time surpassing Xiaomi, which continues to abide by its 5% profit margin (Xiaomi says it only makes 5% profit on any hardware it sells). Xiaomi has also expanded its local production efforts in India and created more than 10,000 jobs in the country, more than 90% of whom have been granted to women.

from Apple – TechCrunch https://ift.tt/2MZvJ4t

Automattic’s bargain-bin Tumblr deal plugs right into the WordPress business model

Tumblr has been an millstone around the neck of its owners, first Yahoo and later Oath and Verizon Media, pretty much since it was acquired in 2013. They never found an answer to the question that new owner Automattic is presumably about to take a crack at: how to make this unruly erstwhile porn factory turn a profit.

Amazingly, the secret technique that Tumblr may have been waiting for was good old-fashioned business sense: make something people want, then charge them a good price for it. Tumblr may fit into the WordPress model and do just this — quite a change from the indirect monetization attempts of the past decade.

The Yahoo acquisition under the stewardship of Marissa Mayer seems to have been made with the assumption, naive in retrospect but incredibly common in that era, that you could buy an audience, plunk some ads in the product, then sit back and let the money roll in.

But beyond doing that, Yahoo never really did anything with Tumblr apart from adding a few features and expanding ads. And for a while growth was good and the network flourished, even rivaling Instagram on some metrics.

from Apple – TechCrunch https://ift.tt/2KvwbG9

Apple brings contactless student IDs to a dozen more universities

Ahead of the upcoming school year, Apple this morning announced it’s bringing contactless student IDs in Apple Wallet to several more U.S. universities. The expansion will allow over 100,000 college students to carry their student ID on their iPhone or Apple Watch, where it can be used for a variety of tasks including paying for their meals, snacks and for entry into buildings, like the student’s dorm and other campus facilities.

The expanded list of universities includes: Clemson University, Georgetown University, University of Tennessee, University of Kentucky, University of San Francisco, University of Vermont, Arkansas State University, South Dakota State University, Norfolk State University, Louisburg College, University of North Alabama and Chowan University.

These join the previously supported schools like Duke University, University of Oklahoma, University of Alabama, Temple University, Johns Hopkins University, Marshall University, and Mercer University.

Apple had first announced its plans for contactless student IDs at WWDC 2018, then rolled out to its debut schools last October.

The contactless IDs not only serve as a means of student identification, but also work as a payment mechanism for on-campus transactions — like meals at the cafeteria or textbooks and supplies at the college’s bookstore, for example. Contactless entry into buildings is also now common on college campuses, and these digital IDs can work to open doors, too, as an alternative to swiping an entry card.

Support for college student IDs is only one way that Apple is trying to replace the physical wallet. The company also support the ability to add your debit and credit cards, transit and loyalty cards, tickets, and even paper money through Apple Pay Cash. And now it’s launching its own credit card, too, which rewards you with cashback for shopping Apple and using Apple Pay.

“We’re happy to add to the growing number of schools that are making getting around campus easier than ever with iPhone and Apple Watch,” said Jennifer Bailey, Apple’s vice president of Internet Services, in a statement about the expansion. “We know students love this feature. Our university partners tell us that since launch, students across the country have purchased 1.25 million meals and opened more than 4 million doors across campuses by just tapping their iPhone and Apple Watch.”

Related to this launch, Apple says it’s also adding support for CBORD, Allegion and HID — solution providers for campus credentials and mobile access. With these technologies on board, Apple will be able to reach other schools integrated with these systems in the future.

from iPhone – TechCrunch https://ift.tt/2KGIkXy

How even the best marketplace startups get paralyzed

Apple brings contactless student IDs to a dozen more universities

Ahead of the upcoming school year, Apple this morning announced it’s bringing contactless student IDs in Apple Wallet to several more U.S. universities. The expansion will allow over 100,000 college students to carry their student ID on their iPhone or Apple Watch, where it can be used for a variety of tasks including paying for their meals, snacks and for entry into buildings, like the student’s dorm and other campus facilities.

The expanded list of universities includes: Clemson University, Georgetown University, University of Tennessee, University of Kentucky, University of San Francisco, University of Vermont, Arkansas State University, South Dakota State University, Norfolk State University, Louisburg College, University of North Alabama and Chowan University.

These join the previously supported schools like Duke University, University of Oklahoma, University of Alabama, Temple University, Johns Hopkins University, Marshall University, and Mercer University.

Apple had first announced its plans for contactless student IDs at WWDC 2018, then rolled out to its debut schools last October.

The contactless IDs not only serve as a means of student identification, but also work as a payment mechanism for on-campus transactions — like meals at the cafeteria or textbooks and supplies at the college’s bookstore, for example. Contactless entry into buildings is also now common on college campuses, and these digital IDs can work to open doors, too, as an alternative to swiping an entry card.

Support for college student IDs is only one way that Apple is trying to replace the physical wallet. The company also support the ability to add your debit and credit cards, transit and loyalty cards, tickets, and even paper money through Apple Pay Cash. And now it’s launching its own credit card, too, which rewards you with cashback for shopping Apple and using Apple Pay.

“We’re happy to add to the growing number of schools that are making getting around campus easier than ever with iPhone and Apple Watch,” said Jennifer Bailey, Apple’s vice president of Internet Services, in a statement about the expansion. “We know students love this feature. Our university partners tell us that since launch, students across the country have purchased 1.25 million meals and opened more than 4 million doors across campuses by just tapping their iPhone and Apple Watch.”

Related to this launch, Apple says it’s also adding support for CBORD, Allegion and HID — solution providers for campus credentials and mobile access. With these technologies on board, Apple will be able to reach other schools integrated with these systems in the future.

from Apple – TechCrunch https://ift.tt/2KGIkXy

Phones, laptops and game consoles get tariff reprieve until December

Electronics manufacturers are no doubt breathing a collective sigh of relief this morning at the news that the United States Trade Representative (USTR) has delayed tariffs on a number of categories.

A long list of exports, including livestock, foodstuff and clothing will have the additional 10 percent tariff imposed on September 1. Others, including “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing” have simply been delayed until December 15.

It seems the fees are an inevitability, but many might be able to scrape through just in time for the holidays.

“Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent,” the USTR writes. “Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles.”

That list includes a wide range of electronics, from “telephones for cellular networks or for other wireless networks” to “telephone answering machines” and “cassette players (non‐recording) designed exclusively for motor‐vehicle installation.”

Stock prices for companies like Apple have already seen a positive bump following the news. The White House is expected to have additional trade talks with China next month in Washington, though Trump has since cast some doubt.

Asked by reporters whether he might cancel talks, the President answered, “Maybe. We’ll see what happens.”

from Apple – TechCrunch https://ift.tt/2H4vsJH