Here’s what happened in the world of consumer tech in the last week:
Earnings
STMicroelectronics NV (NYSE: STM) reported a first-quarter 2024 revenue decline of 18.4% year-on-year to $3.47 billion, missing the consensus of $3.62 billion. EPS of $0.54 missed the consensus of $0.59.
Spotify Technology SA SPOT reported fiscal first-quarter revenue of $3.95 billion (3.64 billion euros), up 20% year-on-year, beating the consensus of $3.85 billion. EPS of $1.05 (97 cents) beat the consensus of $0.70.
Related: Spotify Stock Sheds All Gains After Q1 Earnings, But Analysts Are Impressed With the Performance
Meta Platforms Inc. META reported first-quarter revenue of $36.45 billion, which was up 27% year-over-year. The revenue came in ahead of a Street consensus estimate of $36.16 billion.
Elon Musk
Tesla Inc. TSLA and SpaceX CEO Elon Musk responded to the Australian prime minister’s criticism, asserting that he does not consider himself above the law. This comes amid a legal dispute between the tech platform and Australia over the removal of a violent video.
Also Read: Elon Musk Agrees Every American Household Will Have A $1,000-Per-Month Home Robot In 7 Years’ Time
Musk took aim at Social Security on Monday, calling it the “Biggest Ponzi scheme ever.” Social Security provides retirement income and helps millions of Americans qualify for Medicare.
Also Read: Tesla Posts Strongest Session Since January 2022: Is A Trend Reversal Underway?
During its first quarter earnings call, Musk emphasized that the company should be recognized as an AI or robotics company rather than just an auto company.
Gaming
Microsoft Corp. MSFT continues to impress with its latest custom Xbox creation: the X-Men ’97 Xbox Series X and matching controllers. This special edition console features an exclusive comic by Marvel’s Rich Douek and Paco Diaz, showcasing Cyclops leading the X-Men against their foes.
During the third-quarter earnings call, Microsoft CEO Nadella revealed that Microsoft had set new records for game streaming hours, console usage and monthly active devices.
Amazon Inc’s AMZN “Fallout” TV series on Prime Video fuels interest in Fallout games, with Bethesda reporting nearly 5 million players in a day.
Smartphones
In an interview with CBS News’ “60 Minutes,” U.S. Commerce Secretary Gina Raimondo, a member of President Joe Biden’s cabinet, downplayed the significance of Huawei’s new chip technology, stating that it underscores the success of the Biden administration’s export controls on China.
Apple Inc. AAPL is facing a potential market share decline in China due to its strict App Store policies, according to Telegram Messenger founder Pavel Durov.
Apple cut its Vision Pro shipments to 400,000-450,000 units for 2024, down from the initial 700,000-800,000 units due to a significant drop in demand.
Apple is reportedly on the verge of striking a momentous television deal with Fédération Internationale De Football Association or FIFA for a new tournament.
Apple announced a special event scheduled for May 7, where it is expected to unveil new iPads. Also, it is reportedly set to launch a Calculator app for the iPad, a long-awaited feature, with the upcoming iPadOS 18.
Meta
CEO Mark Zuckerberg says that the company will open-source even a $10 billion AI model, days after the Llama 3 AI model was announced.
Zuckerberg revealed that Meta AI, powered by the Llama 3 model, has received positive feedback.
The company has opened up the Quest operating system that powers its mixed reality devices to third-party hardware manufacturers, taking a leaf out of Alphabet Inc.’s GOOG Google playbook.
Microsoft and Meta have announced a collaboration to produce a limited edition Meta Quest VR headset “inspired by Xbox.” Although specific details remain scarce, it appears to be a customized version of the Meta Quest 3, bundled with an Xbox controller.
Zuckerberg outlined three strategies for Meta to monetize its substantial investments in AI during the March 2024 quarter earnings call.
Social Media
The U.S. House of Representatives has passed a bill that could lead to a ban on TikTok, raising concerns about free speech. The popular social media app’s Chinese owner, ByteDance, has been given a year to sell its stake or face the ban.
The Senate voted 79-18 in favor of the bill, which is part of a larger funding package providing aid to Israel, Ukraine and Taiwan. The bill now awaits signature from President Joe Biden, who said he will sign the bill into law on Wednesday.
In response to mounting regulatory pressure in the U.S., TikTok reportedly decided to remove a key executive, Erich Andersen, who has been at the forefront of the company’s efforts to ease national security concerns.
TikTok CEO Shou Zi Chew said in a two-minute video posted to TikTok’s main corporate account, “Make no mistake, this is a ban, a ban on TikTok and a ban on you and your voice …. Politicians may say otherwise. But don’t get confused. Many who sponsored the bill admit a TikTok ban is their ultimate goal.“
Nikki Haley, former U.S. Ambassador to the UN, has voiced her support for a ban on TikTok, citing concerns about the influence of the Chinese Communist Party (CCP) on American society.
Related: Analyst Predicts TikTok Shutdown In US By Next Year Ahead Of Senate Vote: ‘Will Not Operate Here…’
Omeed Malik, founder and CEO of Farvahar Partners, recently voiced his concerns over the TikTok crackdown bill and commented, “I really have an issue with what TikTok is doing to society. With all of that said … I don’t trust this bill that was passed, and I certainly don’t trust the Biden administration to implement it fairly.“
Edward Snowden, the former computer security consultant for the National Security Agency or NSA, has advised against using Reddit Inc. RDDT due to privacy concerns.
The leading social networking and dating app for the LGBTQ+ community, Grindr GRND, is facing a lawsuit in the U.K. for allegedly sharing users’ private information, including their HIV status, with third parties without consent.
Music
Spotify’s second attempt to update its iOS app in the EU has been thwarted by Apple as the streaming service failed to adhere to the regulations allowing links to external sites for purchases.
Tech
Nvidia Corp NVDA announced its acquisition of Run:ai for $600-$700 million. Run:ai is an Israeli startup specializing in software that simplifies the management of complex AI workloads and computing resources on a single platform.
The Federal Trade Commission has accused top executives at Amazon, including founder Jeff Bezos and CEO Andy Jassy, of deleting text messages that could have been used as evidence in the ongoing antitrust investigation.
Artificial Intelligence
Microsoft has launched Phi-3 Mini, a lightweight AI model with 3.8 billion parameters, the smallest in its Phi series.
Meta aimed to buy 350,000 Nvidia H100 GPUs by 2024 to power its AI ambitions, but that was not Zuckerberg’s original intention. In a recent episode on Dwarkesh Patel’s podcast, Zuckerberg said those were to help make Instagram Reels better.
Also Read: AI Mark Zuckerberg More Robotic Than Real-Life Version? Have A Quick Peek And Decide For Yourself
Jeff Bezos-backed Perplexity AI, a startup challenging Google with its AI-driven search engine, has successfully secured a new funding round, more than doubled its valuation, making it a unicorn.
Elon Musk hinted at the possibility of the company’s humanoid robot, Optimus, being available for sale externally by the end of 2025.
Alphabet CEO Sundar Pichai has expressed confidence in the company's ability to manage the costs associated with the new search experience, which includes generative answers. He also expressed satisfaction with the development of the company's Gemini AI, despite recent controversies.
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