Science & Technology
Apple forecasts another drop in revenue, proclaims iPhone production problems over
Apple Inc (AAPL.O) on Thursday forecast that revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after COVID-related shutdowns.
While striking an optimistic tone on sales of services and iPhones, CEO Tim Cook said an uncertain economy is expected to hurt categories like gaming and digital advertising, Reuters reported on Friday.
Overall, Apple’s leaders tried to reassure investors that despite the firm being buffeted by up-and-down sales cycles for its flagship device and vulnerable to supply chain shocks, the world’s largest listed company remains on a steady – if somewhat slower – rise. And in the immediate aftermath of some of the company’s worst financial results in years, at least some investors seemed to give Cook the benefit of the doubt, imposing only modest share price declines.
For the just-ended quarter, Apple’s profits missed Wall Street expectations for the first time since 2016, dragged down by iPhone sales falling for the first time since 2020.
The stock was down about 2% after Chief Financial Officer Luca Maestri said that iPhone sales were likely to improve compared with the quarter ended Dec. 31. That did not quite erase a 3.7% gain during regular trade.
Amazon.com (AMZN.O) and Alphabet (GOOGL.O) also fell about 4% after reporting results. They also had gained during regular trade.
Apple sales fell 5% to $117.2 billion and were down in every part of the world in the quarter. Sales from each product category dropped, except for gains in services and iPads. Earnings per share were $1.88.
Analysts had expected sales of $121.1 billion and profits of $1.94 per share, according to IBES data from Refinitiv. In an interview, Cook told Reuters that the production disruptions that plagued Apple’s key quarter were now over.
“Production is now back where we want it to be,” he said.
During its fiscal first quarter ended Dec. 31, Apple faced a wave of challenges that left Wall Street expecting lower sales. Chief among those were supply chain pressures when COVID lockdowns at a production facility in Zhengzhou, China, slowed production of iPhone 14 Pro and Pro Max devices, both premium priced models that would traditionally help drive Apple’s margins higher.
Cook said the lockdowns in China created a dual challenge where both supply and demand were constrained, with greater China sales falling 7% to $23.9 billion.
But product snags are behind Apple now. “They still feel demand will be soft, but they’ve rectified production, which means that if demand does go up unexpectedly, they can ramp” to meet it, said Ben Bajarin of analyst firm Creative Strategies.
Science & Technology
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.
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.
Science & Technology
NASA eyes March 6 launch of astronaut moon mission
Artemis program managers completed a comprehensive simulation of the Space Launch System’s launch-day countdown, but said remaining work could still push the launch date further into March.
NASA officials said the agency was targeting March 6 for the launch of four astronauts around the moon and back as part of its Artemis II mission after overcoming rocket-fueling snags in a second key launch rehearsal this week, but cautioned that remaining prep work could warrant more time.
The U.S. space agency on Thursday night capped a nearly 50-hour rehearsal of the Artemis II launch countdown, fueling the rocket with some 730,000 gallons of propellant without running into the pesky hydrogen leaks that hobbled an initial rehearsal last month, officials said during a news conference.
Artemis program managers were elated that the Wet Dress Rehearsal, a comprehensive simulation of the Space Launch System’s launch-day countdown, went smoothly, but said remaining work ahead could still push the launch date further into NASA’s March launch window.
“I felt like last night was a big step in us earning our right to fly. So, felt really good, very proud of the team,” said NASA launch director Charlie Blackwell-Thompson.
Remaining work includes testing the rocket’s flight termination system and conducting a sweeping Flight Readiness Review, a day-long meeting of agency management during which they effectively double-check all rocket hardware and mission procedures before liftoff. – Reuters
Science & Technology
Musk’s Starlink faces high-profile security test in Iran crackdown
Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground.
Iran’s crackdown on dissidents is shaping up as one of the toughest security tests yet for Elon Musk’s Starlink, which has served as a lifeline against state-imposed internet blackouts since its deployment during the war in Ukraine, Reuters reported.
SpaceX, which owns Starlink, made the satellite service free for Iranians this week, placing Musk’s space company at the center of another geopolitical hot spot and pitting a team of U.S.-based engineers against a regional power armed with satellite jammers and signal-spoofing tactics, according to activists, analysts and researchers.
How SpaceX withstands Iranian attacks on its most lucrative line of business is expected to be closely watched by U.S. military forces and intelligence agencies that use Starlink and its military-grade variant Starshield, as well as China, whose own nascent satellite internet constellations are set to rival Starlink in the coming years. With SpaceX weighing a public listing this year, the situation in Iran also represents a high-profile showcase for Starlink to investors.
“We’re in this weird early part of the history of space-delivered communications where SpaceX is the only true provider at this scale,” said John Plumb, the former Pentagon space policy chief under President Joe Biden.
“And these repressive regimes think they can still turn off communications, but I think the day is coming where that’s just not possible,” he said.
Victoria Samson, chief director of space security and stability at the think tank Secure World Foundation, said Russia, which has deployed an array of technologies to counter Starlink in Ukraine, might be keen to examine the effectiveness of Iran’s Starlink interference.
“I think a lot of actors are watching how Starlink fares here,” she said.
Thousands of people protesting Iran’s clerical rule are reported to have been killed in the past week, while Tehran’s order to restrict communications makes it difficult to discern the full extent of its violent crackdown on dissent.
Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground, read the report.
Raha Bahreini, an Iran researcher at Amnesty International, said they had verified dozens of videos from Iran, including footage of protesters killed or injured by Iranian forces, and believe that almost all of them came from people who had access to Starlink. She added, however, that the ongoing communications restrictions have impeded human rights organizations’ communications with people in Iran in efforts to assess the scale of the violence.
Starlink is banned in Iran, yet tens of thousands of terminals may have been smuggled into the country, although it remains unclear how many are in use, according to Holistic Resilience, a U.S. nonprofit that has helped deliver Starlink terminals to Iranians and says it is working with SpaceX to monitor what it describes as Iranian attempts to jam the system.
Consumer Starlink terminals are rectangular antenna dishes that come in two sizes – one roughly the size of a pizza box and a smaller “mobile” one the size of a laptop.
SpaceX did not respond to requests for comment.
The Iranian mission to the United Nations in New York declined to comment on Thursday in response to Reuters’ questions.
Iranian Foreign Minister Abbas Araqchi, speaking to Al Jazeera TV on Monday, said the internet had been cut off “after we confronted terrorist operations and realized orders were coming from outside the country.”
Starlink, the first massive internet-from-space constellation of its kind, has emerged as a crucial tool for communications in wartime and remote areas. The network, which drove SpaceX’s $15 billion revenue in 2024, has expanded the geopolitical power of Musk, who in 2022 asserted control over how and where it was being used by Ukrainian troops fighting back Russian forces.
Roughly 10,000 low-orbiting Starlink satellites zipping above user terminals at an orbital velocity of some 17,000 miles per hour (27,360 kph) make its signals much harder to locate and disrupt than traditional satellite systems designed with a larger, single satellite fixed over a given territory.
Iran is likely using satellite jammers to disrupt the Starlink signals, according to Holistic Resilience and other specialists. Iran also appears to be engaging in so-called spoofing, or broadcasting fake GPS signals to confuse and disable Starlink terminals, according to Nariman Gharib, an Iranian opposition activist and independent cyber espionage investigator based in Britain, Reuters reported.
The GPS spoofing wreaks havoc on a Starlink terminal’s connection and slows internet speeds, said Gharib, who analyzed data from a terminal inside Iran.
“You might be able to send text messages, but forget about video calls,” he said.
Though Starlink is not licensed to operate in Iran, Musk has repeatedly confirmed its presence on his social media platform X, spurring a yearslong effort by the Iranian government to counter the service. Amid protests over the death of Mahsa Amini in December 2022, Musk posted that nearly 100 Starlink terminals were active in the country.
Following the 12-day war between Iran and Israel in June, Iran’s parliament passed a law banning the use of Starlink, introducing severe penalties for those who use or distribute the unlicensed technology, according to Iranian state media.
Iran has also pursued diplomatic channels, urging a panel at the United Nations’ International Telecommunication Union last year to force the United States and Norway — where Starlink is internationally registered — to block the service.
At a July meeting, Iran told the board that Starlink’s use in the country is illegal and said an “invading country” had deployed its terminals on drones during a recent attack.
Iran told the board in November that it was struggling to locate and disable the terminals itself.
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