Latest news with #TechIndustry
CTV News
18 hours ago
- Business
- CTV News
Apple overcomes Trump's trade war, slow start in AI to deliver surprisingly strong quarter
SAN FRANCISCO — Apple shook off a thicket of tariffs and a botched entry into artificial intelligence to accelerate its revenue growth during its springtime quarter, but the trendsetting tech company still faces a bumpy road ahead that could lead to higher iPhone prices. The April-June results released Thursday came against a backdrop of adversity that has been raising worries about the trajectory of a longtime tech kingpin. Despite the doubts, Apple remains a moneymaking machine. The Cupertino, California, company earned $23.4 billion, or $1.57 per share, during its fiscal third quarter, a 9% increase from the same time last year. Revenue climbed 10% from a year ago to $94 billion. The company's iPhone sales surged 13% from a year ago to $44.6 billion. All those numbers were well above the analyst projections that steer investors, helping to boost Apple's recently slumping stock price by 2% in extended trading. But the unexpectedly solid performance doesn't necessarily mean it's smooth sailing ahead for Apple. President Donald Trump's trade war targeting foreign-made products such as the iPhone and Apple's stumbling start in the pivotal transition to AI is causing investors to question if the company will remain at the tech forefront as the industry moves into a new era. Before Thursday's report came out, Apple's stock price had plunged by 17% so far this year to wipe out more than $600 billion in shareholder wealth and knock the company off its perch as the world's most valuable company. Meanwhile, the shares of AI chipmaker Nvidia have surged 32% this year and the shares of AI pacesetter Microsoft have gained 27%, propelling the market value to $4 trillion. Even though Apple remains highly profitable, the tariffs that Trump has already imposed on China and other countries cost the company $900 million during the past quarter, with even more financial pain looming as his administration threatens to ramp up the fees. Apple softened the blow of Trump's tariffs on products made outside the U.S. during the past quarter by shifting its production of iPhones from China to India. But the administration intends to impose a 25% tariff on goods from India, a move that could intensify the pressure on Apple to raise the prices on the next generation of iPhones expected to be released in September. Meanwhile, Apple is still trying to fulfill the AI promises it made last year when it unveiled an array of new iPhone features built on the revolutionary technology, raising expectations that the shift would spur millions of people to upgrade their old devices. But Apple still hasn't delivered on an AI upgrade that was supposed to smarten up its often-bumbling virtual assistant Siri, one of the main reasons underlying the lackluster growth of iPhone sales. 'There are two big questions looming over Apple: How are you going to rejigger your business model to deal with the new tariff backdrop and then what is the company going to do to drive an upgrade cycle for the iPhone?' said Melissa Otto, a stock market analyst for S&P's Visible Alpha. Michael Liedtke, The Associated Press
Associated Press
19 hours ago
- Business
- Associated Press
Apple overcomes Trump's trade war, slow start in AI to deliver surprisingly strong quarter
SAN FRANCISCO (AP) — Apple shook off a thicket of tariffs and a botched entry into artificial intelligence to accelerate its revenue growth during its springtime quarter, but the trendsetting tech company still faces a bumpy road ahead that could lead to higher iPhone prices. The April-June results released Thursday came against a backdrop of adversity that has been raising worries about the trajectory of a longtime tech kingpin. Despite the doubts, Apple remains a moneymaking machine. The Cupertino, California, company earned $23.4 billion, or $1.57 per share, during its fiscal third quarter, a 9% increase from the same time last year. Revenue climbed 10% from a year ago to $94 billion. The company's iPhone sales surged 13% from a year ago to $44.6 billion. All those numbers were well above the analyst projections that steer investors, helping to boost Apple's recently slumping stock price by 2% in extended trading. But the unexpectedly solid performance doesn't necessarily mean it's smooth sailing ahead for Apple. President Donald Trump's trade war targeting foreign-made products such as the iPhone and Apple's stumbling start in the pivotal transition to AI is causing investors to question if the company will remain at the tech forefront as the industry moves into a new era. Before Thursday's report came out, Apple's stock price had plunged by 17% so far this year to wipe out more than $600 billion in shareholder wealth and knock the company off its perch as the world's most valuable company. Meanwhile, the shares of AI chipmaker Nvidia have surged 32% this year and the shares of AI pacesetter Microsoft have gained 27%, propelling the market value to $4 trillion. Even though Apple remains highly profitable, the tariffs that Trump has already imposed on China and other countries cost the company $900 million during the past quarter, with even more financial pain looming as his administration threatens to ramp up the fees. Apple softened the blow of Trump's tariffs on products made outside the U.S. during the past quarter by shifting its production of iPhones from China to India. But the administration intends to impose a 25% tariff on goods from India, a move that could intensify the pressure on Apple to raise the prices on the next generation of iPhones expected to be released in September. Meanwhile, Apple is still trying to fulfill the AI promises it made last year when it unveiled an array of new iPhone features built on the revolutionary technology, raising expectations that the shift would spur millions of people to upgrade their old devices. But Apple still hasn't delivered on an AI upgrade that was supposed to smarten up its often-bumbling virtual assistant Siri, one of the main reasons underlying the lackluster growth of iPhone sales. 'There are two big questions looming over Apple: How are you going to rejigger your business model to deal with the new tariff backdrop and then what is the company going to do to drive an upgrade cycle for the iPhone?' said Melissa Otto, a stock market analyst for S&P's Visible Alpha.
Yahoo
2 days ago
- Business
- Yahoo
Palo Alto Networks to buy CyberArk for $25 billion
This story was originally published on Cybersecurity Dive. To receive daily news and insights, subscribe to our free daily Cybersecurity Dive newsletter. Palo Alto Networks on Wednesday announced an agreement to buy CyberArk, a leader in identity security, in a deal valued at $25 billion. Under the terms of the deal, CyberArk shareholders will receive $45 and 2.2005 shares of Palo Alto Networks common stock for every CyberArk share they own. The combined company will represent Palo Alto Networks' formal entry into the identity-security space, making it a core piece of the company's multi-platform strategy. 'Our market entry strategy has always been to enter categories at their inflection point and we believe that moment for identity security is now,' Nikesh Arora, chairman and CEO of Palo Alto Networks, said in the announcement. In a letter to shareholders, Arora noted that identity has historically been separated into privileged access management and identity and access management. IAM dealt with basic cyber hygiene, while PAM dealt with a small group of privileged users. But 90% of breaches involve stolen or mismanaged credentials, Arora said, and therefore PAM is no longer limited to a subset of administrators. Palo Alto Networks said it expects the deal to increase its revenue growth and gross margins. Industry analysts said the agreement could reshape the future of the cybersecurity industry's competition to manage identity security threats. 'This acquisition elevates the consolidation trend that has characterized the IAM market in recent years to a new level, reshaping not only the IAM landscape but also the broader cybersecurity industry,' said Geoff Cairns, principal analyst at Forrester. 'Identity security is foundational to modern cybersecurity, and CyberArk's areas of expertise in privileged identity management and machine identity security strongly complement Palo Alto Networks independent security platform approach.' Both companies' boards of directors have already agreed to the deal, which is expected to close during the second half of Palo Alto Networks' fiscal year, following approval by federal regulators and CyberArk shareholders. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Arm to develop own chips; stock falls as outlook disappoints
July 30 (Reuters) - Chip architecture provider Arm Holdings is investing in developing its own chips, CEO Rene Haas said on Wednesday, marking a major shift to its model of licensing its blueprints to other companies. Arm also issued quarterly forecasts that failed to satisfy investors who have sent the company's stock surging in recent months on expectations it will become a key player in artificial intelligence. Arm shares slumped around 8% in extended trading on Wednesday. The plan to invest more heavily in developing its own chips marks a departure from Arm's long-time business of supplying intellectual property to companies ranging from Nvidia (NVDA.O), opens new tab to (AMZN.O), opens new tab, which already design their own chips. Finished chips are the "physical embodiment" of a product Arm already sells called Compute Sub Systems (CSS), Haas said. "We are consciously deciding to invest more heavily — is the possibility of going beyond (designs) and building something, building chiplets or even possible solutions," Haas said in an interview with Reuters. Chiplets are smaller, modular versions of a larger chip. Chiplets perform specific functions, and designers will stitch several together to form a complete processor. To build up the necessary staff to make chiplets and other finished chips, Arm has been recruiting from its customers and competing against them for deals, Reuters has reported. Haas declined to provide a timeframe in which the company's investments in the new strategy would translate into profit, or give specifics about potential new products that are part of the initiative. But, Haas said that Arm would look at chiplets, "a physical chip, a board, a system, all of the above." In recent months, chip companies have begun to focus more effort on building the necessary server hardware, or server rack, around a chip. Nvidia sells its NV72 rack systems, and Advanced Micro Devices (AMD.O), opens new tab acquired server builder ZT Systems to build system-level products. This expansion of its business could put Arm in competition with some of its customers, who design finished chips and chiplets for their own products. The company forecast second-quarter profit slightly below estimates on Wednesday, as global trade tensions threaten to hit demand for Arm in its mainstay smartphone market. The company's chip technology powers nearly every smartphone in the world, and its tame forecast underscores uncertainty faced by global manufacturers and their suppliers resulting from U.S. President Donald Trump's tariff policies. UK-based Arm forecast adjusted per-share profit between 29 cents and 37 cents for the fiscal second quarter, the midpoint of which is below analysts' average estimate of 36 cents per share, according to LSEG data. The company generates revenue through licensing deals for its intellectual property and a royalty charged for each chip sold that uses its technology. Smartphones remain Arm's biggest stronghold. Morningstar analysts expect Arm to continue as the dominant architecture provider in smartphone processors, where it has a 99% market share. Global trade tensions, however, cloud the outlook for the market. Uncertainty fueled by tariff volatility and ongoing macroeconomic challenges has tapered end-market demand, with global smartphone shipments increasing just 1% in the April-to-June period, according to International Data Corporation. The company expects current-quarter revenue between $1.01 billion and $1.11 billion, in line with estimates of $1.06 billion. The company reported first-quarter sales of $1.05 billion, coming in just shy of estimates of $1.06 billion. Adjusted profit of 35 cents per share was in line with estimates. It has also made attempts to diversify into the booming data center market, where customers such as Amazon's (AMZN.O), opens new tab cloud unit use its technology.
TechCrunch
2 days ago
- Business
- TechCrunch
Who really benefits from the AI boom?
If you've been hearing about Trump's AI Action Plan and wondering who it actually benefits, you're not alone. On today's episode of Equity, Rebecca Bellan caught up with Amba Kak and Dr. Sarah Myers West from the AI Now Institute, a think tank focused on the social implications of AI and the consolidation of power in the tech industry. Their recent report, dubbed Artificial Power, lays out the political economy driving today's AI frenzy and what's at stake for everyone else. Artificial Power pushes back on what AI Now calls the 'too big to fail' myth, arguing that AI companies are pouring billions into massive compute infrastructure and foundational models, often with government support, despite shaky business models and limited public accountability. That push to scale and reach AGI, or artificial general intelligence, before 2030 has real-world consequences that don't disappear with the promises that AI will someday solve humanity's hardest problems. In the short term, societies are already facing environmental degradation, discriminatory algorithms, dismantled democratic institutions, lack of data privacy, and national security risk. Kak and West say these outcomes are the result of a series of choices, not an unpreventable reality. 'The future we're being sold is not inevitable,' Kak explained. Listen to the full episode to hear about: AI's growing consolidation and how it mirrors Big Tech's power dynamics. Why Silicon Valley is cheering on Trump's AI agenda, and the challenges of regulating AI. The disconnect between AGI hype and current, real-world harms. What a democratic, just, and accountable AI future could look like. Equity will be back Friday with our weekly news roundup, so stay tuned. Equity is TechCrunch's flagship podcast, produced by Theresa Loconsolo, and posts every Wednesday and Friday. Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
