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Apple set for big sales decline as investors await AI in iPhones

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Apple’s (AAPL.O), opens new tab plan to add generative AI to its iPhones and revive sagging sales in the crucial Chinese market will be in focus on Thursday, when the tech giant is expected to report its biggest quarterly revenue decline in more than a year, Reuters reported.

Long considered a must-own stock on Wall Street, Apple shares have underperformed other Big Tech companies in recent months, falling more than 10% this year as fears mount about its slow roll-out of artificial intelligence services and as a resurgent Huawei (HWT.UL) takes market share in China.

Analysts on average see iPhone sales, which account for about half of Apple’s revenue, falling 10.4% in the first three months of 2024, according to LSEG. That drop would be the steepest in more than three years.

The year-ago iPhone revenue that the 10.4% iPhone sales drop is measured against was unusually high as Apple satisfied pent-up demand after the COVID pandemic, company executives previously noted.

At least $5 billion of the $51.3 billion in iPhone sales a year ago was essentially catching up from disruptions in the December 2022 quarter when COVID lockdowns in China hampered iPhone production, executives said.

Even with that factored in, Wall Street expects a slight decline in iPhone sales, and analysts estimate Apple’s total revenue declined 5% in its fiscal second quarter ended in March. That would be Apple’s biggest revenue decline since the December 2022 quarter, when revenue fell 5.5%, read the report.

Apple earlier this year lost the crown of the world’s most valuable company to Microsoft (MSFT.O), opens new tab. Its market value stands at $2.68 trillion after the share price declined 11.24% so far this year.

Weak revenue and falling shares have pressured Apple to spruce up its flagship device after years without major upgrades.

The company is in talks with OpenAI and Alphabet-owned Google to add genAI features for the iPhone that could be unveiled at what is expected to be its biggest-ever annual developer conference in June, Bloomberg News has reported.

According to Reuters analysts believe such an AI integration could drive demand for the next iPhone series, expected to be announced in the fall.

While executives at Microsoft, Alphabet (GOOGL.O), opens new tab, Meta Platforms (META.O), opens new tab and other major technology firms have talked up their AI strategies on quarterly conference calls in recent months, Apple CEO Tim Cook has discussed his plans for the emerging technology much less.

Adding AI features to iPhones could also help Apple to compete better with Huawei and Samsung Electronics (005930.KS), opens new tab, which reclaimed the title of the world’s top smartphone vendor from Apple this year, driven by demand for the AI features in its Galaxy S24 smartphones.

“Replacement cycle tailwinds and incremental generative AI features set up Apple well for a strong iPhone 16 cycle,” Bernstein analyst Toni Sacconaghi said this week as he upgraded the company’s shares to “outperform” from “market-perform.”

“We believe prevailing weakness in China is more cyclical than structural, and note historically Apple’s China business has exhibited much higher volatility than Apple overall, given its very feature-sensitive installed base.”

Thursday’s earnings will also be watched closely for updates on the company’s stock buyback plan and the Vision Pro, Apple’s first major product in years that hit the shelves in February.

After initial enthusiasm, there have been signs that demand slowed for the $3,500 device, with an analyst saying this month that Apple has pulled back its production estimates for the mixed-reality headset.

The rest of the company’s hardware business is also reeling from soft demand, with iPads and Mac sales expected to fall 11.4% and 4.3%, respectively, in the March quarter, Reuters reported.

Apple has signaled it is sharpening its focus on the devices, which have also been hobbled by a lack of major upgrades.

At an Apple event this month, a revamped iPad line-up is expected to be unveiled and media reports have said that it plans to update every Mac model with faster, AI-focused M4 processors.

The services business, which includes App Store and subscription services such as Apple TV, is expected to remain a bright spot with revenue growth of 7.7%.

Apple shares closed down 0.6% at $169.30 on Wednesday.

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Afghanistan launches first 5G trial in Kabul to boost telecom services

According to ministry spokesperson Enayatullah Alokozai, AWCC has upgraded 74 telecom antennas in Kabul to 5G on a trial basis.

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Afghanistan has launched its first-ever 5G telecommunications trial in Kabul, marking a major milestone in efforts to modernise the country’s digital infrastructure.

The announcement followed a meeting between Hamdullah Nomani, Minister of Communications and Information Technology, and Aliullah Sarwari, head of the Afghan Wireless Communication Company (AWCC), where discussions focused on expanding telecom coverage, improving service quality, and extending connectivity to remote regions.

According to ministry spokesperson Enayatullah Alokozai, AWCC has upgraded 74 telecom antennas in Kabul to 5G on a trial basis. Once technical preparations and testing are completed, the company plans to extend 5G services to other provinces.

Officials also reported steady progress on broader infrastructure development. Eight telecom sites approved during previous official visits to northern and southeastern provinces have been completed, one is nearing completion, and construction continues on two additional sites expected to become operational soon.

In parallel, the Afghanistan Telecom Regulatory Authority (ATRA) has approved eight more telecom sites under the Telecom Development Fund (TDF), with implementation scheduled in the coming months.

Sarwari noted that since the beginning of 2026, AWCC has built and activated 46 telecom sites using its development budget, while work continues on a further 186 sites nationwide.

He also thanked the Ministry of Communications and Information Technology for its ongoing support in facilitating sector growth and improving service delivery.

Nomani meanwhile emphasised that telecommunications play a crucial role in national development and said the government remains committed to working closely with operators to expand modern, high-quality digital services.

Officials added that cooperation between the ministry, regulators, and telecom companies will continue across all operational and regulatory areas to strengthen Afghanistan’s communications network.

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NASA set for first crewed moon return in over half a century

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NASA is preparing to launch the first crew of astronauts toward the moon in over 53 years with its second Artemis mission, a key ​test flight in humanity’s broader lunar goals as the U.S. races to reassert leadership in space faced with growing competition from China.

Three U.S. and one Canadian astronaut are due for ‌liftoff aboard NASA’s Orion capsule and Space Launch System rocket on Wednesday for a 10-day test mission swinging around the moon and back, a winding journey taking them deeper into space than humans have ever gone before, Reuters reported.

The mission is the first crewed test flight in NASA’s Artemis program, the flagship U.S. effort to begin regular flights to the moon, at an estimated cost of at least $93 billion since 2012. Not since Apollo 17 in 1972 have humans touched down on the moon’s surface, a ​tricky feat NASA aims to repeat in 2028 at the rugged lunar south pole.

The U.S. is the only country to have put humans on another celestial body with its six lunar landings ​of the Apollo program, driven by competition with the former Soviet Union.

China, a formidable technological rival to the U.S., has made steady progress in its own moon ⁠program in recent years, with a string of robotic lunar landings and a 2030 goal to put its own crew on the surface. U.S. officials have focused on beating China to the surface.

ANSWERING ‘THE QUESTION OF OUR ​LIFETIME’

NASA astronaut Christina Koch, Artemis II mission specialist, on Sunday said the moon is a “witness plate” to the solar system’s formation, and a stepping stone to Mars, “where we might have the most likelihood of finding evidence ​of past life.”

“Many, many countries have recognized the value that there is in exploring further into the solar system, to the moon and on to Mars,” she told reporters. “They recognize that not only can we gain all these extremely tangible benefits, but that we have the opportunity to answer the question that could be the question of our lifetime, which is, are we alone?”

“Answering that question starts at the moon,” she said. “The question is not should we go, but should we lead, or ​should we follow?”

Through a series of increasingly advanced Artemis missions extending into the next decade, the U.S. aims to set precedent for how others will operate and coexist on the moon’s surface, where someday countries and ​companies can exploit rocky lunar resources and practice for much more difficult missions to Mars.

COMMERCIAL LUNAR MARKET

NASA is relying on an array of companies in its moon program with the hope of stimulating a commercial lunar market in the ‌future, the value ⁠of which is hard to estimate, analysts say.

A PricewaterhouseCoopers report from January estimates $127 billion in revenues by 2050 from lunar surface activities, with investments potentially reaching $72 billion to $88 billion through the same period.

But for now, and in the near future, governments will drive companies’ lunar strategies and revenue. It will be a long time before commercial growth exists on the moon independently of government funding, said Akhil Rao, an economist at analysis firm Rational Futures who was a research economist at NASA.

“NASA did not see a short-run economic value that companies would be able to derive that would allow NASA to be hands-off,” said Rao, who was among a team ​of economists and space policy staff laid off last ​year amid the Trump administration’s sweeping federal workforce ⁠cuts.

The Artemis II mission will pose a greater test of NASA’s Orion capsule and SLS, which conducted a similar mission without crew in 2022. The astronauts on board will test critical life-support systems, crew interfaces, navigation and communications before NASA proceeds with more complex missions in the following years.

Liftoff is scheduled for April 1, though ​it could happen any day after until April 6, depending on weather conditions in Florida and any last-minute snags with the rocket. Thereafter, another launch ​window, determined largely by the ⁠orbital mechanics between Earth and the moon, opens on April 30.

Artemis III, the next mission planned for 2027, will involve the Orion capsule docking in Earth’s orbit with NASA’s two lunar landers – the Blue Moon system from Jeff Bezos’ Blue Origin and Starship from Elon Musk’s SpaceX. The delicate tag-up will demonstrate how the landers will pick up astronauts before heading for the moon’s surface.

That mission was added to the program in February by NASA’s new administrator, Jared ⁠Isaacman, a billionaire ​private astronaut who has more broadly shaken up the program with new objectives. His decision pushed the program’s first crewed lunar landing to ​Artemis IV.

The architecture is more complex than the Apollo missions, involving an array of companies funded by NASA with the hope of stimulating private competition and market activity around the moon. Boeing and Northrop Grumman lead SLS and Lockheed Martin builds Orion for NASA.

SpaceX ​and Blue Origin are developing their own landers with NASA funding but under different types of contracts that allow them to offer the spacecraft to other customers.

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Trump administration set to receive $10 billion fee for brokering TikTok deal, WSJ reports

Vice President JD Vance had in ​September said that the new U.S. company will be valued at around $14 billion.

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President Donald Trump’s administration is set to receive a roughly $10 billion fee from investors in the recently completed ​deal to take control of TikTok’s U.S. business, the Wall Street ‌Journal reported on Friday, citing people familiar with the matter.

TikTok’s Chinese owner, ByteDance, in January finalized a deal to establish a majority American-owned joint venture that will secure U.S. ​data, to avoid a U.S. ban on the short video app ​used by over 200 million Americans.

TikTok USDS Joint Venture LLC will ⁠secure U.S. user data, apps and algorithms through data privacy and cybersecurity ​measures. It disclosed few details about the divestiture.

Vice President JD Vance had in ​September said that the new U.S. company will be valued at around $14 billion.

The payment is part of the agreement through which investors friendly with the administration gained control of TikTok’s ​U.S. operations from ByteDance, WSJ said. It is on top of the ​investments already made to establish a new entity to operate the app in the U.S.

Investors ‌Oracle (ORCL.N), ⁠Silver Lake, Abu Dhabi’s MGX and other backers paid about $2.5 billion to the Treasury Department when the deal closed and are to make a number of subsequent payments until the total reaches $10 billion, per the Journal.

TikTok and ​the White House did ​not immediately respond ⁠to Reuters requests for comment.

Officials from the administration have said the fee is justified, citing Trump’s role in rescuing ​TikTok’s U.S. operations and guiding negotiations with China to ​complete the ⁠deal while tackling lawmakers’ concerns over national security, according to WSJ.

Earlier this month, Trump and U.S. Attorney General Pam Bondi were sued by retail investors in two ⁠social ​media rivals of TikTok seeking to reverse the ​U.S. president’s approval of a deal by the company’s Chinese owner ByteDance to form a majority ​American-owned joint venture.

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