After Apple cut its Q1 revenue forecast by $9bn, CEO Tim Cook reminded employees in a memo obtained by Bloomberg that there are still some bright points, including a record number of new iPhone activations in the US and Canada on Christmas day.
The note about record activations comes as Apple for the first time did not report quarterly unit sales of the iPhone, which it’s done since the launch of the iPhone in 2007. However, Cook admitted to staff that Apple didn’t set a new record for iPhone sales in Q1.
The memo, aimed at pepping up staff after cutting its revenue outlook for the first time since 2002, reiterated Cook’s note to investors that it missed its target due to lower than expected iPhone sales in China.
Cook told investors Apple didn’t see the size of the slowdown in China coming, which Apple believes was made worse “by rising trade tensions with the United States”, referring to the US-China trade war. It also saw lower than expected upgrades in some developed markets.
But Cook told employees that Apple expects to “set all-time revenue records in key markets including the US, Canada and Mexico, Western European countries including Germany and Italy, and countries across the Asia-Pacific region like Korea and Vietnam.”
Also, Apple’s installed base of active devices is now higher than it’s ever been. Asymco analyst Horace Dediu estimates Apple has just over 1.4 billion active devices, about a 100 million more than the 1.3 billion that Apple reported last February.
Cook said Apple would not use negative external forces as an excuse for its performance, nor wait for conditions to get better.
“This moment gives us an opportunity to learn and to take action, to focus on our strengths and on Apple’s mission – delivering the best products on earth for our customers and providing them with an unmatched level of service. We manage Apple for the long term, and in challenging times we have always come out stronger.”
Apple’s today also announced that the App Store saw record levels of spending over the holidays totaling $1.22bn between Christmas Eve and New Year’s Eve. The $322m spent on New Year’s Day 2019 was also a single-day record for the App Store.
Previous and related coverage
iPhone deals ahead? Bad news for Apple is good news for Apple buyers
Apple has issued its first profit warning since 2002, and the first since the company entered into the smartphone era. But a situation that might be gloomy for investors will be good news for those who want to buy Apple products.
Apple: Beginning of the end, or a new beginning?
Every new beginning comes from some other beginning’s end.
After iPhone: How long can Apple wait for the next big thing?
Apple has always been about more than the iPhone, but stepping beyond it is a massive challenge.
Apple’s Q1 revenue miss: Here are the 5 takeaways you need to know
Apple doesn’t do small. A lengthy first quarter preannouncement gave Apple fans and critics a lot of fodder to consider.
Slow iPhone sales? iPhone XR is our best-selling model, says Apple
Maybe $1,000 is too much? Apple says its cheaper iPhone XR has been the best-selling iPhone since its launch.
Apple to iPhone owners: Up to $100 more for your old phone if you buy XS, XR
No discounts on the iPhone XS, but Apple will give you more for an old iPhone.
Apple restarting iPhone X production, cutting XS price over slow sales?
Apple is said to be ready to offer subsidies to operators to discount the iPhone XR in Japan.
Trump: iPhone buyers could ‘very easily’ stand paying 10% more with China tariff
Ahead of this week’s G20 meeting, Trump talks up tariffs on Chinese-made iPhones and MacBooks.
Demand for new iPhones weaker than Apple expected, claims report TechRepublic
It seems that Apple is having a hard time forecasting what the demand for new iPhones will be, and is being forced to slash production orders as a result.
Apple’s rare sales warning sparks iPhone fatigue fears CNET
The company blames a deceleration in demand in China, but investors imagine the worst.
Cymulate snaps up $70M to help cybersecurity teams stress test their networks with attack simulations – TechCrunch
The cost of cybercrime has been growing at an alarming rate of 15% per year, projected to reach $10.5 trillion by 2025. To cope with the challenges that this poses, organizations are turning to a growing range of AI-powered tools to supplement their existing security software and the work of their security teams. Today, a startup called Cymulate — which has built a platform to help those teams automatically and continuously stress test their networks against potential attacks with simulations, and provide guidance on how to improve their systems to ward off real attacks — is announcing a significant round of growth funding after seeing strong demand for its tools.
The startup — founded in Tel Aviv, with a second base in New York — has raised $70 million, a Series D that it will be using to continue expanding globally and investing in expanding its technology (both organically and potentially through acquisitions).
Today, Cymulate’s platform covers both on-premise and cloud networks, providing breach and attack simulations for endpoints, email and web gateways and more; automated “red teaming”; and a “purple teaming” facility to create and launch different security breach scenarios for organizations that lack the resources to dedicate people to a live red team — in all, a “holistic” solution for companies looking to make sure they are getting the most out of the network security architecture that they already have in place, in the worlds of Eyal Wachsman, Cymulate’s CEO.
“We are providing our customers with a different approach for how to do cybersecurity and get insights [on] all the products already implemented in a network,” he said in an interview. The resulting platform has found particular traction in the current market climate. Although companies continue to invest in their security architecture, security teams are also feeling the market squeeze, which is impacting IT budgets, and sometimes headcount in an industry that was already facing a shortage of expertise. (Cymulate cites figures from the U.S. National Institute of Standards and Technology that estimate a shortfall of 2.72 million security professionals in the workforce globally.)
The idea with Cymulate is that it’s built something that helps organizations get the most out of what they already have. “And at the end, we provide our customers the ability to prioritize where they need to invest, in terms of closing gaps in their environment,” Wachsman said.
The round is being led by One Peak, with Susquehanna Growth Equity (SGE), Vertex Ventures Israel, Vertex Growth and strategic backer Dell Technologies Capital also participating. (All five also backed Cymulate in its $45 million Series C last year.) Relatively speaking, this is a big round for Cymulate, doubling its total raised to $141 million, and while the startup is not disclosing its valuation, I understand from sources that it is around the $500 million mark.
Wachsman noted that the funding is coming on the heels of a big year for the startup (the irony being that the constantly escalating issue of cybersecurity and growing threat landscape spells good news for companies built to combat that). Revenues have doubled, although it’s not disclosing any numbers today, and the company is now at over 200 employees and works with some 500 paying customers across the enterprise and mid-market, including NTT, Telit, and Euronext, up from 300 customers a year ago.
Wachsman, who co-founded the company with Avihai Ben-Yossef and Eyal Gruner, said he first thought of the idea of building a platform to continuously test an organization’s threat posture in 2016, after years of working in cybersecurity consulting for other companies. He found that no matter how much effort his customers and outside consultants put into architecting security solutions annually or semi-annually, those gains were potentially lost each time a malicious hacker made an unexpected move.
“If the bad guys decided to penetrate the organization, they could, so we needed to find a different approach,” he said. He looked to AI and machine learning for the solution, a complement to everything already in the organization, to build “a machine that allows you to test your security controls and security posture, continuously and on demand, and to get the results immediately… one step before the hackers.”
Last year, Wachsman described Cymulate’s approach to me as “the largest cybersecurity consulting firm without consultants,” but in reality the company does have its own large in-house team of cybersecurity researchers, white-hat hackers who are trying to find new holes — new bugs, zero days and other vulnerabilities — to develop the intelligence that powers Cymulate’s platform.
These insights are then combined with other assets, for example the MITRE ATT&CK framework, a knowledge base of threats, tactics and techniques used by a number of other cybersecurity services, including others building continuous validation services that compete with Cymulate. (Competitors include the likes of FireEye, Palo Alto Networks, Randori, AttackIQ and many more.)
Cymulate’s work comes in the form of network maps that detail a company’s threat profile, with technical recommendations for remediation and mitigations, as well as an executive summary that can be presented to financial teams and management who might be auditing security spend. It also has built tools for running security checks when integrating any services or IT with third parties, for instance in the event of an M&A process or when working in a supply chain.
Today the company focuses on network security, which is big enough in itself but also leaves the door open for Cymulate to acquire companies in other areas like application security — or to build that for itself. “This is something on our roadmap,” said Wachsman.
If potential M&A leads to more fundraising for Cymulate, it helps that the startup is in one of the handful of categories that are going to continue to see a lot of attention from investors.
“Cybersecurity is clearly an area that we think will benefit from the current macroeconomic environment, versus maybe some of the more capital-intensive businesses like consumer internet or food delivery,” said David Klein, a managing partner at One Peak. Within that, he added, “The best companies [are those] that are mission critical for their customers… Those will continue to attract very good multiples.”
Open-source password manager Bitwarden raises $100M – TechCrunch
Bitwarden, an open-source password manager for enterprises and consumers, has raised $100 million in a round of funding led by PSG, with participation form Battery Ventures.
Founded initially back in 2015, Santa Barbara, California-based Bitwarden operates in a space that includes well-known incumbents including 1Password, which recently hit a $6.8 billion valuation off the back of a $620 million fundraise, and Lastpass, which was recently spun out as an independent company again two years after landing in the hands of private equity firms.
In a nutshell, Bitwarden and its ilk make it easier for people to generate secure passwords automatically, and store all their unique passwords and sensitive information such as credit card data in a secure digital vault, saving them from reusing the same insecure password across all their online accounts.
Bitwarden’s big differentiator, of course, lies in the fact that it’s built atop an open-source codebase, which for super security-conscious individuals and businesses is a good thing — they can fully inspect the inner-workings of the platform. Moreover, people can contribute back to the codebase and expedite development of new features.
On top of a basic free service, Bitwarden ships a bunch of paid-for premium features and services, including advanced enterprise features like single sign-on (SSO) integrations and identity management.
It’s worth noting that today’s “minority growth investment” represents Bitwarden’s first substantial external funding in its seven year history, though we’re told that it did raise a small undisclosed series A round back in 2019. Its latest cash injection is indicative of how the world has changed in the intervening years. The rise of remote work, with people increasingly meshing personal and work accounts on the same devices, means the same password is used across different services. And such poor password and credential hygiene puts businesses at great risk.
Additionally, growing competition and investments in the management space means that Bitwarden can’t rest on its laurels — it needs to expand, and that is what its funds will be used for. Indeed, Bitwarden has confirmed plans to extend its offering into several aligned security and privacy verticals, including secrets management — something that 1Password expanded into last year via its SecretHub acquisition.
“The timing of the investment is ideal, as we expand into opportunities in developer secrets, passwordless technologies, and authentication,” Bitwarden CEO Michael Crandell noted in a press release. “Most importantly, we aim to continue to serve all Bitwarden users for the long haul.”
downgrade the ‘middle-men’ resellers – TechCrunch
As well as the traditional carbon offset resellers and exchanges such as Climate Partner or Climate Impact X the tech space has also produced a few, including Patch (US-based, raised $26.5M) and Lune (UK-based, raised $4M).
Now, Ceezer, a B2B marketplace for carbon credits, has closed a €4.2M round, led by Carbon Removal Partners with participation of impact-VC Norrsken VC and with existing investor Picus Capital.
Ceezer ’s pitch is that companies have to deal with a lot of complexity when considering how they address carbon removal and reduction associated with their businesses. Whie they can buy offsetting credits, the market remains pretty ‘wild-west’, and has multiple competing standards running in parallel. For instance, the price range of $5 to $500 per ton is clearly all over the place, and sometimes carbon offset resellers make buyers pay high prices for low-quality carbon credits, pulling in extra revenues from a very opaque market.
The startup’s offering is for corporates to integrate both carbon removal and avoidance credits in one package. It does this by mining the offsetting market for lots of data points, enabling carbon offset sellers to reach buyers without having to use these middle-men resellers.
The startup claims that sellers no longer waste time and money on bespoke contracts with corporates but instead use Ceezer’s legal framework for all transactions. Simultaneously, buyers can access credits at a primary market level, maximizing the effect of the dollars they spend on carbon offsets.
Ceezer says it now has over 50 corporate customers and has 200,000 tons of carbon credits to sell across a variety of categories. and will use the funds to expand its impact and sourcing team, the idea being to make carbon removal technologies more accessible to corporate buyers, plus widen the product offering for credit sellers and buyers.
India’s Uolo raises $22.5M to bring edtech to the masses • TechCrunch
Uolo, an Indian edtech platform that works with private K-12 schools to offer online learning programs to middle and low-income...
Today’s Wordle Answer #537 – December 8, 2022 Solution And Hints
The solution to today’s Wordle puzzle (#537 – December 8, 2022) is infer. It’s from Middle French “inferer,” itself from...
Indiana Is The First State To Sue TikTok Over Child Safety Worries
To tech-savvy and/or historically informed readers, the widespread concern about TikTok in the U.S. might smack of earlier moral panics....
Oldest DNA yet sequenced shows mastodons once roamed a warmer Greenland
Enlarge / An attempt to reconstruct what northern Greenland looked like about 2 million years ago. When once-living tissue is...
New kilonova has astronomers rethinking what we know about gamma-ray bursts
Enlarge / Artist’s impression of GRB 211211A. The kilonova and gamma-ray burst is on the right. Aaron M. Geller/Northwestern/CIERA A year...
Social8 months ago
Web.com website builder review
Social3 years ago
CrashPlan for Small Business Review
Gadgets4 years ago
A fictional Facebook Portal videochat with Mark Zuckerberg – TechCrunch
Cars4 years ago
What’s the best cloud storage for you?
Mobile4 years ago
Memory raises $5M to bring AI to time tracking – TechCrunch
Social4 years ago
iPhone XS priciest yet in South Korea
Security4 years ago
Google latest cloud to be Australian government certified
Social4 years ago
Apple’s new iPad Pro aims to keep enterprise momentum