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
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Apple to iPhone owners: Up to $100 more for your old phone if you buy XS, XR
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Apple restarting iPhone X production, cutting XS price over slow sales?
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Trump: iPhone buyers could ‘very easily’ stand paying 10% more with China tariff
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Demand for new iPhones weaker than Apple expected, claims report TechRepublic
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Apple’s rare sales warning sparks iPhone fatigue fears CNET
The company blames a deceleration in demand in China, but investors imagine the worst.
Facebook’s decision-review body to take “weeks” longer over Trump ban call – TechCrunch
Facebook’s self-styled and handpicked ‘Oversight Board’ will make a decision on whether or not to overturn an indefinite suspension of the account of former president Donald Trump within “weeks”, it said in a brief update statement on the matter today.
The high profile case appears to have attracted major public interest, with the FOB tweeting that it’s received more than 9,000 responses so far to its earlier request for public feedback.
It added that its commitment to “carefully reviewing all comments” after an earlier extension of the deadline for feedback is responsible for the extension of the case timeline.
The Board’s statement adds that it will provide more information “soon”.
Trump’s indefinite suspension from Facebook and Instagram was announced by Facebook founder Mark Zuckerberg on January 7, after the then-president of the U.S. incited his followers to riot at the nation’s Capitol — an insurrection that led to chaotic and violent scenes and a number of deaths as his supporters clashed with police.
However Facebook quickly referred the decision to the FOB for review — opening up the possibility that the ban could be overturned in short order as Facebook has said it will be bound by the case review decisions issued by the Board.
After the FOB accepted the case for review it initially said it would issue a decision within 90 days of January 21 — a deadline that would have fallen next Wednesday.
However it now looks like the high profile, high stakes call on Trump’s social media fate could be pushed into next month.
It’s a familiar development in Facebook-land. Delay has been a long time feature of the tech giant’s crisis PR response in the face of a long history of scandals and bad publicity attached to how it operates its platform. So the tech giant is unlikely to be uncomfortable that the FOB is taking its time to make a call on Trump’s suspension.
After all, devising and configuring the bespoke case review body — as its proprietary parody of genuine civic oversight — is a process that has taken Facebook years already.
In related FOB news this week, Facebook announced that users can now request the board review its decisions not to remove content — expanding the Board’s potential cases to include reviews of ‘keep ups’ (not just content takedowns).
This report was updated with a correction: The FOB previously extended the deadline for case submissions; it has not done so again as we originally stated
Facebook faces ‘mass action’ lawsuit in Europe over 2019 breach – TechCrunch
Facebook is to be sued in Europe over the major leak of user data that dates back to 2019 but which only came to light recently after information on 533M+ accounts was found posted for free download on a hacker forum.
Today Digital Rights Ireland (DRI) announced it’s commencing a “mass action” to sue Facebook, citing the right to monetary compensation for breaches of personal data that’s set out in the European Union’s General Data Protection Regulation (GDPR).
Article 82 of the GDPR provides for a ‘right to compensation and liability’ for those affected by violations of the law. Since the regulation came into force, in May 2018, related civil litigation has been on the rise in the region.
The Ireland-based digital rights group is urging Facebook users who live in the European Union or European Economic Area to check whether their data was breach — via the haveibeenpwned website (which lets you check by email address or mobile number) — and sign up to join the case if so.
Information leaked via the breach includes Facebook IDs, location, mobile phone numbers, email address, relationship status and employer.
Facebook has been contacted for comment on the litigation.
The tech giant’s European headquarters is located in Ireland — and earlier this week the national data watchdog opened an investigation, under EU and Irish data protection laws.
A mechanism in the GDPR for simplifying investigation of cross-border cases means Ireland’s Data Protection Commission (DPC) is Facebook’s lead data regulator in the EU. However it has been criticized over its handling of and approach to GDPR complaints and investigations — including the length of time it’s taking to issue decisions on major cross-border cases. And this is particularly true for Facebook.
With the three-year anniversary of the GDPR fast approaching, the DPC has multiple open investigations into various aspects of Facebook’s business but has yet to issue a single decision against the company.
(The closest it’s come is a preliminary suspension order issued last year, in relation to Facebook’s EU to US data transfers. However that complaint long predates GDPR; and Facebook immediately filed to block the order via the courts. A resolution is expected later this year after the litigant filed his own judicial review of the DPC’s processes).
Since May 2018 the EU’s data protection regime has — at least on paper — baked in fines of up to 4% of a company’s global annual turnover for the most serious violations.
Again, though, the sole GDPR fine issued to date by the DPC against a tech giant (Twitter) is very far off that theoretical maximum. Last December the regulator announced a €450k (~$547k) sanction against Twitter — which works out to around just 0.1% of the company’s full-year revenue.
That penalty was also for a data breach — but one which, unlike the Facebook leak, had been publicly disclosed when Twitter found it in 2019. So Facebook’s failure to disclose the vulnerability it discovered and claims it fixed by September 2019, which led to the leak of 533M accounts now, suggests it should face a higher sanction from the DPC than Twitter received.
However even if Facebook ends up with a more substantial GDPR penalty for this breach the watchdog’s caseload backlog and plodding procedural pace makes it hard to envisage a swift resolution to an investigation that’s only a few days old.
Judging by past performance it’ll be years before the DPC decides on this 2019 Facebook leak — which likely explains why the DRI sees value in instigating class-action style litigation in parallel to the regulatory investigation.
“Compensation is not the only thing that makes this mass action worth joining. It is important to send a message to large data controllers that they must comply with the law and that there is a cost to them if they do not,” DRI writes on its website.
It also submitted a complaint about the Facebook breach to the DPC earlier this month, writing then that it was “also consulting with its legal advisors on other options including a mass action for damages in the Irish Courts”.
It’s clear that the GDPR enforcement gap is creating a growing opportunity for litigation funders to step in in Europe and take a punt on suing for data-related compensation damages — with a number of other mass actions announced last year.
In the case of DRI its focus is evidently on seeking to ensure that digital rights are upheld. But it told RTE that it believes compensation claims which force tech giants to pay money to users whose privacy rights have been violated is the best way to make them legally compliant.
Facebook, meanwhile, has sought to play down the breach it failed to disclose in 2019 — claiming it’s ‘old data’ — a deflection that ignores the fact that people’s dates of birth don’t change (nor do most people routinely change their mobile number or email address).
Plenty of the ‘old’ data exposed in this latest massive Facebook leak will be very handy for spammers and fraudsters to target Facebook users — and also now for litigators to target Facebook for data-related damages.
Pakistan temporarily blocks social media – TechCrunch
Pakistan has temporarily blocked several social media services in the South Asian nation, according to users and a government-issued notice reviewed by TechCrunch.
In an order titled “Complete Blocking of Social Media Platforms,” the Pakistani government ordered Pakistan Telecommunication Authority to block social media platforms including Twitter, Facebook, WhatsApp, YouTube, and Telegram from 11am to 3pm local time (06.00am to 10.00am GMT) Friday.
The move comes as Pakistan looks to crackdown against a violent terrorist group and prevent troublemakers from disrupting Friday prayers congregations following days of violent protests.
Earlier this week Pakistan banned the Islamist group Tehrik-i-Labaik Pakistan after arresting its leader, which prompted protests, according to local media reports.
An entrepreneur based in Pakistan told TechCrunch that even though the order is supposed to expire at 3pm local time, similar past moves by the government suggests that the disruption will likely last for longer.
Though Pakistan, like its neighbor India, has temporarily cut phone calls access in the nation in the past, this is the first time Islamabad has issued a blanket ban on social media in the country.
Pakistan has explored ways to assume more control over content on digital services operating in the country in recent years. Some activists said the country was taking extreme measures without much explanations.
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