Apple Pricing Drives Growth, Despite Lower Unit Sales
Apple has proven again that pricing is critical. Despite slower unit sales of its iPhones, the company's revenue is growing - mainly because Apple has raised prices on many of its products.
Apple reported earnings yesterday that beat expectations, but that didn't satisfy Wall Street. Apple missed shipment estimates on its iPhones despite boosting profitability for these products. In addition, Apple offered light guidance on its forthcoming holiday quarter. "Shares of Apple fell 4 percent immediately following the release," CNBC reported.
Analysts are predicting for strong growth for Apple, which is good news for CEO Tim Cook. "The iPhone still looms large over Apple's fortunes," write Jeran Wittenstein and Mark Gurman of Bloomberg. "The smartphone accounts for more than 60 percent of revenue and is the hub for most of the company's other products. Wall Street expects Apple to sell 48.4 million iPhones in its fiscal fourth quarter and 77.7 million in the holiday quarter."
IBM to Acquire Red Hat, But Will it Help Big Blue Compete Against Amazon and Microsoft in the Cloud Wars?
Earlier this week, IBM announced it would buy Red Hat for $34 billion. The deal makes sense on paper, but many analysts and investors are wondering if it will work out as planned over the long haul.
"The acquisition is by far IBM's largest deal ever, and the third-biggest in the history of U.S. tech. Excluding the AOL-Time Warner merger, the only larger deals were the $67 billion merger between Dell and EMC in 2016 and JDS Uniphase's $41 billion acquisition of optical-component supplier SDL in 2000, just as the dot-com bubble was bursting," write Alex Sherman and Lora Kolodny of CNBC.
The market's initial reaction was negative -- IBM's share price dropped. But the battle for cloud supremacy is still in its early stages. It will take years to separate the winners from the losers.
EU Will Test AI Lie Detector at Border Crossings
A handful of travelers in Europe may soon be vetted by AI-powered lie detectors at border checkpoints. The program is called iBorderCtrl, and the EU plans to test it at border crossings in Hungary, Latvia and Greece. The program would ask questions and use its AI resources to determine if the traveler is lying.
"If iBorderCtrl determines the traveler is telling the truth, then they receive a QR code that will let them pass the border. If there is suspicion the traveler is lying, they'll have biometric information taken - including fingerprinting, palm vein reading, and face matching - before being passed to a human agent who will review their information and make an assessment," writes Dani Deahl of The Verge.
Medical Tech Enables Three Paralyzed Patients to Walk
A new technique has enabled three paralyzed men to walk after only a few days of assistance. The technique represents a breakthrough in the treatment of spinal-injury patients.
"The basis of the technique, called epidural electrical stimulation (EES), is not new at all-it's been investigated as a potential treatment for paralysis for decades, with a lot of success in animals. And in September this year, two separate papers reported breakthroughs in allowing patients with paralysis to walk, with assistance, as a result of EES," writes Cathleen O'Grady in Ars Technica. "But the earlier patients made progress only after months of intensive rehabilitation-in the best case, after four months, and in others, closer to a year."