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iPhone sales in China drop in May

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Pedestrians walk past signage for an Apple Inc. store at the Shanghai International Center (IFC) shopping mall in Shanghai, China, on Tuesday, Nov. 27, 2018.

Qilai Shen | Bloomberg | Getty Images

iPhone sales in China fell in May, showing signs of weakening after Apple saw an initial rebound when the country re-opened as the coronavirus outbreak eased.

But other areas of the business grew, including spending on the company’s App Store, which could point to some resilience for the U.S. technology giant in one of its biggest markets.

Data collated from third-party sources by CNBC pointed to a mixed picture for Apple’s China performance in May.

Apple sold 3.6 million iPhones in China in May, down from 3.9 million in April, according to Shanghai-based CINNO Research. That’s a 7.7% fall versus April, but higher than the 3.05 million iPhone sold in May 2019.

It contrasts with the 160% month-on-month rise in April, where Apple benefited from pent-up demand in China and saw a rebound as the country reopened its economy following a shutdown for several weeks earlier this year.

Sales for the iPhone in China dropped a staggering 60% year-on-year in February this year. Apple was forced to close stores for a number of weeks as authorities sought to stem the spread of Covid-19. By mid-March, all the stores in China had reopened.

Meanwhile, so-called sell-in shipments of iPhones totaled just over 2 million in May, according to preliminary estimates by another research firm, IDC. That’s around a 25% fall month-on-month, Will Wong, research manager at IDC, told CNBC.

Sell-in refers to the number of iPhones Apple sold to its retail partners in China and can be used as a gauge for future demand.

Apple declined to comment on these figures.

Overall smartphone shipments in China fell nearly 20% month-on-month in May, according to data from the China Academy of Information and Communications Technology (CAICT), a Chinese state-backed think tank.

Apple released the second generation iPhone SE in mid-April which went on sale in China later that month. It’s the cheapest of the iPhone line and helped boost shipments in April as Apple got the device into the hands of retailers. But the company hasn’t released a new device in May, which could partly explain the drop in shipments. But Wong warns it could also be a sign of weak demand.

“The main reason (for the drop) is because of the low consumer sentiment because of job concerns, because of the economic slowdown, that has lowered consumer sentiment,” Wong told CNBC.

He did note, however, that Apple was expanding its retailer network into smaller tier Chinese cities, despite the macro-economic headwinds.

Signs of resilience

On Alibaba-owned shopping site Tmall, revenue from Apple products totaled $136.9 million in May, according to WPIC, an e-commerce tech and marketing firm that helps foreign brands sell in China. That’s a 7.2% month-on-month rise.

Of course, Tmall is just one channel that Apple sells its products through. Others include Alibaba rival JD.com, as well as Apple’s own stores and bricks-and-mortar retailers.

But Apple is benefiting from signs of life in online retail sales in China.

“Apple’s growth in 2020 is staggering considering that these numbers include COVID-19 time,” CEO of WPIC, Jacob Cooke, told CNBC. “Ultimately, it’s clear that Apple is a resilient company, and we’re keeping an eye on them to continue to grow over the back half of 2020.”

Meanwhile, consumer spending on Apple’s App Store in China totaled $1.71 billion in May, up around 11% from the $1.53 billion recorded in April, according to data from Sensor Tower.

That money may not directly go to Apple’s topline, but it shows an increasing number of users continue to spend money via Apple’s platform.

The App store is a key revenue driver for Apple’s increasingly important services business, which raked in over $46 billion in sales in the last fiscal year.

5G boost?

Part of the fall in shipments and sales for iPhones in China could have been due to consumers holding out for a 5G device. Apple is slated to release one this year, though some analysts are concerned there could be a delay.

Since China began rolling out its 5G networks last year, the popularity of devices able to connect to that generation of mobile infrastructure has been growing. In fact, 46.3% of total mobile phone shipments in China in May were 5G devices, according to CAICT.

Daniel Ives, analyst at Wedbush Securities, said in a recent note that he estimates around 350 million of Apple’s 950 million iPhones in use worldwide are ready for an upgrade to the new iPhone, adding the U.S. technology giant could see a “5G super cycle.”

IDC’s Wong, however, suggests a potentially high price for Apple’s 5G iPhone could hold back its success.

“Some consumers might be waiting for 5G iPhones but two potential restraints could be pricing and another is lack of use cases,” Wong told CNBC.

Source: – CNBC

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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