Apple has posted Q3 18 results, and the results won’t be a disappointment to investors, with the Cupertino powerhouse squeezing another good quarter out of the iPhone, and gets a decent one out of the iPad. But Mac sales hit a low not seen in years.
Must read: Everything you need to know about buying Apple’s 2018 MacBook Pro
Let’s start with the iPhone. Unit sales of 41.3 million fall pretty in line with Wall Street expectations (the consensus was around 41.6), but while units are up year-on-year only 1 percent, revenue over the same period is up 20 percent.
This has driven up the Average Selling Price to $724, beating the expected ASP of $699. The ASP is, however, down slightly on the previous quarter ASP of $728, but up on the year-ago quarter ASP figure of $606.
It is important to bear in mind that Q3 is the weakest quarter for the iPhone.
Moving to the iPad, and while unit sales increased 1 percent to 11.55 million year-on-year, revenue dropped 5 percent. This also dragged the ASP down to $410, from $451 for the previous quarter, and also down on the figure of $434 the year-ago quarter.
People are buying cheaper iPads, perhaps because the steam has run out of iPad Pro sales given that they are all now over a year old.
Things are pretty dire for Mac sales, which have slumped to a seven-year-low of 3.72 million. ASP is virtually unchanged from the previous quarter (sitting at $1,432 compared to $1,434), and is actually up from the ASP of $1,303 for the year-ago quarter.
This dramatic unit sales drop will, however, renew the narrative that Apple has taken its eye off the Mac and that sales have suffered dramatically as a result.
Apple’s revenue from “Other Products,” which include AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories, hit $3.74 billion, down 5 percent from the $3.95 billion from the previous quarter, but up 37 percent from the year-ago quarter figure of $2.73 billion.
This growth fell into the range expected by analysts.
After Facebook’s news flex, Australia passes bargaining code for platforms and publishers – TechCrunch
A week after Facebook grabbed eyeballs globally by blocking news publishers and turning off news-sharing on its platform in Australia, the country’s parliament has approved legislation that makes it mandatory for platform giants like Facebook and Google to negotiate to remunerate local news publishers for their content, to take account of how journalism is shared on their platforms.
The News Media and Digital Platforms Mandatory Bargaining Code was developed in conjunction with Australia’s Competition and Consumer Commission (ACCC) with the aim of addressing the power imbalance that exists between digital platforms and news businesses.
Facebook and Google had both lobbied aggressively against the legislation, with Google initially threatening to close down its search engine in Australia — before changing tack and hurrying to strike deals with local publishers in a bid to undercut the law by showing an alternative model.
But none of the tech giants’ moves derailed the legislative effort entirely.
“The Code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia,” said treasury minister Josh Frydenberg and communications minister Paul Fletcher in a joint statement today.
“The Code provides a framework for good faith negotiations between the parties and a fair and balanced arbitration process to resolve outstanding disputes,” they added.
The operation of the code will be reviewed by the government within a year “to ensure it is delivering outcomes that are consistent with the Government’s policy intent”, they added.
On Tuesday Facebook reversed course on its intentionally over-broad news ban after the government agreed to make amendments to the draft legislation — including adding a two-month mediation period to allow digital platforms and publishers to agree deals before being forced to enter into arbitration.
The government also agreed to take platforms’ existing deals with publishers into account before deciding whether the code applies to them and provide them with one month’s notice before taking a final decision.
Facebook said it was satisfied with the tweaks, having been concerned commercial deals it struck off its own bat would not be taken into account.
In a blog post which the tech giant entitled “the real story” (yes, really), Facebook’s chief spin doctor, Nick Clegg — aka the former deputy prime minister of the UK — wrote that the law as originally drafted would have forced it to pay “potentially unlimited amounts of money to multi-national media conglomerates under an arbitration system that deliberately misdescribes the relationship between publishers and Facebook”.
“Thankfully, after further discussion, the Australian government has agreed to changes that mean fair negotiations are encouraged without the looming threat of heavy-handed and unpredictable arbitration,” Clegg added.
Who exactly has come out on top in this stand off between a sovereign government and two of the biggest tech giants in the world remains to be seen. But if Facebook and Google were hoping to block the law they certainly failed.
Claims by the Australian government that public interest journalism has won are, however, being tempered by critical suggestions that the law will merely end up favoring big media over small publishers — after all, it’s the larger publishers Google has rushed to strike deals with, for example.
How much of the adtech duopoly’s money ends up trickling down to support smaller publishers and grow media pluralism in Australia isn’t yet clear. But the suspicion among some is that the whole episode amounts to a shake down of big tech by big media via their friends in government — and that ugly oligarchy won.
There is also the risk that by directly linking the funding of public interest journalism — and therefore, by implication, the vitality of a country’s democracy — to tech giants like Facebook and Google it will further entrench the monopoly positions of those selfsame giants.
Suddenly calls to break up Google et al can be conflated with ‘harming democracy’ by taking money away from ‘public interest journalism’. Even just the claim of support suggests rich PR pickings for Facebook and co.
Yet these are platform giants that already have massive and unprecedented power over the public information sphere — as Facebook just demonstrated, via its flex against legislators (showing it can flip a switch to crater traffic to all sorts of publicly valuable information if it so chooses, leaving all its users in an entire country vulnerable to disinformation).
Their dominance has also long been implicated in harming democracy around the world — as their ad-funded business models profile people and amplify content for profit, without any kind of public service mission (quite unlike traditional media).
So if the tech giants were looking for a cheap way to reduce their antitrust risk then paying over a couple of billion every few years to regional publishers (who they may hope will also dial down their techlash rhetoric as a result) probably doesn’t sound so bad.
Facebook said this week that it plans to spend at least $1BN on ‘supporting’ the news media over the next three years. Google also recently outted a $1BN fund for news licensing fees.
Neither company can claim it just discovered the existence of journalism; it’s crystal clear these suddenly pledged billions are only on the table because lawmakers have made platforms paying for news mandatory. (Australia is not alone here; EU lawmakers also legislated in recent years to extend copyright to cover snippets of news — which is starting to result in Google striking licensing deals with publishers in Europe.)
So news publishers are certainly winning by gaining revenue that wasn’t being made available to them before. Though at what wider cost — if the mechanism being used to support them helps entrench anti-democratic monopolists?
The lack of transparency around the commercial deals being struck between platforms and publishers is certainly unhelpful. Without clarity on such arrangements the risk, again, is that the law will favor the big publishers while the smaller ones (who may have more of a public interest mission) will be at a disadvantage — needing to work even harder to compete with tabloid giants further fattened up with fresh adtech profits.
Australia has for certain won something, though. It’s bagged the world’s attention for taking on tech giants through a legislative code.
Its direct thrust at Facebook and Google — coming up with a framework tailor made to take on their market power — has caught the eye of other policymakers and competition regulators.
The chief of the UK’s Competition and Markets Authority, Andrea Coscelli, said this week that he’s watching the media code with interest as the UK government moves at a clip to set up a pro-competition regulator with the aim of reining in big tech, calling Australia’s approach of having a backstop of mandatory arbitration if commercial negotiations fail “a sensible one”.
“We are definitely following what’s happening in Australia,” he told the BBC. “We think they are dealing with problems we have in the UK as well and they are coming up with possible solutions to that. There are many variants to it but certainly I think it’s a very important data point for what we could in the UK.”
Asked if the UK should follow Australia’s example, Coscelli gave a cautious thumbs up to something along those lines, saying: “We have said we should also think about fair trading between publishers and the platforms for news content. So I know both government and parliament is certainly interested in what’s happening in Australia — and potentially thinking about something similar.”
India unveils more stringent rules for social media, streaming services – TechCrunch
India announced sweeping changes to its guidelines for social media, on-demand video streaming services, and digital news outlets on Thursday, posing new challenges for small firms as well as giants such as Facebook and Google that count the nation as its biggest market by users.
Ravi Shankar Prasad, India’s IT, Law, and Justice minister, said in a press conference that social media companies will be required to acknowledge the request within 24 hours and deliver a complete redressal in 15 days. In sensitive cases that surround rape or other sexual nature, firms will be required to takedown the objectionable content within 24 hours.
These firms will also be required to appoint a chief compliance officer, a nodal contact officer, who shall be reachable round the clock, and a resident grievance officer. The firms will also be required to have an office in the country.
For social media companies, Prasad said they will be required to disclose the originator of objectionable content. “We don’t want to know the content, but firms need to be able to tell who was the first person who began spreading misinformation and other objectionable content,” he said. WhatsApp has previously said that it can’t comply with such traceability request without compromising end-to-end encryption security for every user.
Firms will also be required to publish a monthly compliance report to disclose the number of requests they received and what actions they took. They will also be required to offer a voluntary option to users who wish to verify their accounts.
The guidelines go into effect for small firms effective immediately, but bigger services will be provided three months to comply, said Prasad.
New Delhi has put together these guidelines because citizens in India have long requested a “mechanism to address grievances,” said Prasad. India has been working on a law aimed at intermediaries since 2018. This is the first time New Delhi has publicly shared an update on the specifics of the guidelines.
“India is the world’s largest open Internet society and the Government welcomes social media companies to operate in India, do business and also earn profits. However, they will have to be accountable to the Constitution and laws of India,” he said, adding that WhatsApp had amassed 530 million users, YouTube, 448 million users, Facebook’s marquee service 410 million users, Instagram 210 million users, and Twitter, 175 million users in the country.
For streaming platforms, the draft, which will be legally enforceable when it becomes a law, has outlined a three-tier structure for “observance and adherence to the code.” Until now, on-demand services such as Netflix, Disney+ Hotstar, and MX Player have operated in India with little to no censorship.
New Delhi last year said India’s broadcasting ministry, which regulates content on TV, will also be overseeing digital streaming platforms. 17 popular streaming firms had banded together to devise a self-regulation code. Prakash Javedkar, Minister of Information and Broadcasting, said the proposed solution from the industry wasn’t adequate and there will be an oversight mechanism from the government to ensure compliance of code of practices.
Streaming services will also have to attach a content ratings to their titles. “The OTT platforms, called as the publishers of online curated content in the rules, would self-classify the content into five age based categories- U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult). Platforms would be required to implement parental locks for content classified as U/A 13+ or higher, and reliable age verification mechanisms for content classified as “A”,” the Indian government said.
“The publisher of online curated content shall prominently display the classification rating specific to each content or programme together with a content descriptor informing the user about the nature of the content, and advising on viewer description (if applicable) at the beginning of every programme enabling the user to make an informed decision, prior to watching the programme.”
Digital news outlets will be required to disclose the size of their reach and structure of their ownership.
Industry executives have expressed concerns over the new proposed regulation, saying New Delhi hasn’t consulted them for these changes. IAMAI, a powerful industry body that represents nearly all on-demand streaming services, said it was “dismayed” by the guidelines, and hoped to have a dialogue with the government.
Javedkar and Prasad were asked if there will be any consultation with the industry before these guidelines become law. The ministers said that they had already received enough inputs from the industry.
This is a developing story. More to follow…
YouTube to launch parental control features for families with tweens and teens – TechCrunch
YouTube announced this morning it will soon introduce a new experience designed for teens and tweens who are now too old for the schoolager-focused YouTube Kids app, but who may not be ready to explore all of YouTube. The company says it’s preparing to launch a beta test of new features that will give parents the ability to grant kids more limited access to YouTube through a “supervised” Google Account. This setup will restrict what tweens and teens can watch on the platform, as well as what they can do — like create videos or leave comments, for example.
Many parents may have already set up a supervised Google Account for their child through Google’s Family Link parental control app. This app allows parents to restrict access across a range of products and services, control screen time, filter websites and more. Other parents may have created a supervised Google Account for their child when they first set up the child’s account on a new Android device or Chromebook.
If not, parents can take a few minutes to create the child’s supervised account when they’re ready to begin testing the new features. (Unfortunately, Google Edu accounts — like those kids now use for online school — aren’t supported at launch.)
The new features will allow parents to select between three different levels of YouTube access for their tween or teen. Initially, YouTube will test the features with parents with children under the age of consent for online services — age 13 in the U.S., but different in other countries — before expanding to older groups.
For tweens who have more recently graduated out of the YouTube Kids app, an “Explore” mode will allow them to view a broad range of videos generally suited for viewers age 9 and up — including vlogs, tutorials, gaming videos, music clips, news, and educational content. This would allow the kids to watch things like their favorite gaming streamer with kid-friendly content, but would prevent them (in theory) from finding their way over to more sensitive content.
The next step up is an “Explore More” mode, where videos are generally suitable for kids 13 and up — like a PG-13 version of YouTube. This expands the set of videos kids can access and allows them access to live streams in the same categories as “Explore.”
For older teens, there is the “Most of YouTube” mode, which includes almost all YouTube videos except those that include age-restricted content that isn’t appropriate for viewers under 18.
YouTube says it will use a combination of user input, machine learning, and human review to curate which videos are included in each of the three different content settings.
Of course, much like YouTube Kids, that means this will not be a perfect system — it’s a heavily machine-automated attempt at curation where users will still have to flag videos that were improperly filtered. In other words, helicopter parents who closely supervise their child’s access to internet content will probably still want to use some other system — like a third-party parental control solution, perhaps — to lock down YouTube further.
The supervised access to YouTube comes with other restrictions, as well, the company says.
Parents will be able to manage the child’s watch and search history from within the child’s account settings. And certain features on YouTube will be disabled, depending on the level of access the child has.
For example, YouTube will disable in-app purchases, video creation, and commenting features at launch. The company says that, over time, it wants to work with parents to add some of these features back through some sort of parent-controlled approach.
Also key is that personalized ads won’t be served on supervised experiences, even if that content isn’t designated as “made for kids” — which would normally allow for personalized ads to run. Instead, all ads will be contextual, as they are on YouTube Kids. In addition, all ads will have to comply with kids advertising policies, YouTube’s general ad policies, and will be subject to the same category and ad content restrictions as on Made for Kids content.
That said, when parents establish the supervised account for their child, they’ll be providing consent for COPPA compliance — the U.S. children’s privacy law that requires parents to be notified and agree to the collection and use personal data from the kids’ account. So there’s a trade-off here.
However, the new experience may still make sense for families where kids have outgrown apps designed for younger children — or even in some cases, for younger kids who covet their big brother or sister’s version of “real YouTube.” Plus, at some point, forcing an older child to use the “Kids” app makes them feel like they’re behind their peers, too. And since not all parents use the YouTube Kids app or parental controls, there’s always the complaint that “everyone else has it, so why can’t I?” (It never ends.)
This slightly more locked down experience lets parents give the child access to “real YouTube” with restrictions on what that actually means, in terms of content and features.
YouTube, in an announcement, shared several endorsements for the new product from a few individual youth experts, including Leslie Boggs, president of National PTA; Dr. Yalda Uhls, Center for Scholars & Storytellers, UCLA – Author of Media Moms & Digital Dads; Thiago Tavares, Founder and President of SaferNet Brazil; and Professor Sun Sun Lim, Singapore University of Technology & Design – Author of Transcendent Parenting.
YouTube’s news, notably, follows several product updates from fast-growing social video app and YouTube rival TikTok, which has rolled out a number of features aimed at better protecting its younger users.
The company in April 2020 launched a “family pairing” mode that lets a parent link their child’s account to their own in order to also lock down what the child can do and what content they can see. (TikTok offers a curated experience for the under-13 crowd called Restricted Mode, which can be switched on here, too.) And in January of this year, TikTok changed the privacy setting defaults for users under 18 to more proactively restrict what they do on the app.
YouTube says its new product will launch in beta in the “coming months” in over 80 countries worldwide. It also notes that it will continue to invest in YouTube Kids for parents with younger children.
After Facebook’s news flex, Australia passes bargaining code for platforms and publishers – TechCrunch
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