China - page 12

5 big revelations from Apple’s surprising Q2 earnings call

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Will Apple reach its own targets for Q2?
Apple stock is booming after today's report.
Photo: Ste Smith/Cult of Mac

Apple blew analysts’ expectations out of the water this afternoon with its historic Q2 2018 earnings report that saw the company post the most revenue ever in the March quarter.

Tim Cook and Apple CFO Luca Maestri were absolutely giddy during today’s call with investors. Everyone expected the iPhone X to be a bust, but even Apple was surprised by its success as it still dominates the iPhone sales charts. New products are on the horizon too as Apple’s executives teased new goodies coming down its pipeline:

These were the biggest takeaways from the call:

Apple may be primed for disappointment in China

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Apple Store
How has Apple done in China this quarter? Analysts don't think too well.
Photo: Apple

In a disastrous turn of events, Apple may have lost up to half its market share in Greater China, analysts report.

A combination of poor adoption of Apple’s latest generation of iPhone handsets and increased competition from domestic handset makers like Huawei and Oppo might have slashed Apple’s business in a market Tim Cook is convinced is Apple’s biggest hope.

Tim Cook was ‘very helpful’ in Trump meeting at the White House

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President Trump: Apple encryption could protect ‘criminal minds’
Tim Cook met with President Trump earlier this week.
Photo: Gage Skidmore/Flickr CC

Apple CEO Tim Cook was reportedly “most helpful” during his White House meeting with President Donald Trump earlier this week. Cook was enthusiastic about the Trump administration’s recent tax cuts, and also had some advice about business dealings in China.

“I really enjoyed the meeting,” Larry Kudlow, director of the National Economic Council, told CNBC’s Squawk on the Street. “I spent a good amount of time with [Cook], and then we came back and we visited the POTUS.”

iPhone shipments up significantly in China

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Hong Kong police arrest smugglers with $1 million of iPhones and other devices
Hong Kong police arrest smugglers with $1 million of iPhones and other devices
Photo: Ed Hardy/Cult of Mac

Shipments of iPhone in China increased 32 percent in the first quarter of this year. This was during a period when the overall Chinese handset market declined. 

Many Chinese see Apple devices as status symbols and pick them over local brands that cost significantly less.

Apple’s global operations are now 100% powered by renewable energy

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Apple Park
Apple Park is powered in part by a 17-megawatt rooftop solar installation.
Photo: Apple

Apple has become the world’s first major tech company to be powered by 100% renewable energy.

The company has been investing heavily in renewable energy sources for years, and in a statement today, Apple says it has already achieved its goal to use 100% clean energy to power all of its global facilities.

Apple spared from Trump’s trade war with China – for now

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iPhone X
Trump's tariff list doesn't include smartphones and laptops.
Photo: Ste Smith/Cult of Mac

The iPhone and other major tech products are safe from Trump’s brewing trade war with China.

On Tuesday, the office of the U.S. Trade Representative revealed that it was slapping 25 percent tariffs on 1,300 products coming from China related to technology, transport and medical products. iPhone components were exempt from the list, but other products like magnetic hard drives and flat-panel television sets were hit hard.

Tim Cook will co-chair China Development Forum event this weekend

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Foxconn employees accused of $43 million iPhone scam
Tim Cook meeting an iPhone manufacturer in China.
Photo: Apple

Tim Cook is headed to China this weekend, alongside Sundar Pichai, the CEO of Google, and Ginny Rometty, head of IBM. Cook will be heading co-chairing the China Development Forum, an annual event which aims to build relationships between Western corporations and the Chinese government.

The event comes at a challenging time when the U.S. and China are duking it out concerning trade tariffs and import duties.

PlayerUnknown’s Battlegrounds fights Fortnite on iPhone in U.S.

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PUBG Player Unknown’s Battlegrounds
PUBG Mobile reaches the West.
Photo: Tencent

It is shaping up to be a spectacular month for battle royale games on iOS. After the hugely popular Fortnite landed in the App Store last week, PlayerUnknown’s Battlegrounds has made its way to iPhone and iPad.

After a round of beta testing in Canada, the free PUBG Mobile is now available on iOS (and Android) in the United States and other locations around the world.

Chinese woman locked out of iPhone for 47 years

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iPhone China locked
Not a message you want to see on your iPhone.
Photo: Kankanews

Do you want to continue being able to unlock your iPhone in a timely manner? Then maybe don’t leave a 2-year-old child playing with your handset.

That’s the lesson learned by a mom who ended up locked out of her iPhone for 47.5 years because her son entered the passcode incorrectly enough times.

Worries arise as Apple hands over iCloud accounts to China

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Apple Store
Apple has had a number of challenges growing its market in China.
Photo: Apple

Apple has completed the transition of iCloud accounts registered in China to state-run Chinese servers, and privacy and human rights advocates are (rightfully) worried.

In addition to transferring the accounts to state-run servers, Apple may have also transferred the digital keys to Chinese jurisdiction, although Apple says it retains control of them. Nonetheless, it’s a concerning event — especially at a time when people are already worried about Xi Jinping, ruler of the Communist Party of China, ramping up censorship as part of the bid to establish himself as president for life.

Apple could source local chipsets for Chinese iPhones

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iphone x
Apple could be embracing Chinese manufacturing to help grow its brand in the country.
Photo: Ste Smith/Cult of Mac

Apple may be expanding its supply chain further by buying storage chips from the Chinese memory chipmaker Yangtze Memory Technologies, a new report states.

What makes this interesting is that the chips will reportedly be used only in iPhones and other devices for the Chinese domestic market. It suggests that Apple may be willing to modify its iPhone manufacturing process in order to please the Chinese government’s push toward more local manufacturing.

China busts bogus Apple store

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Apple store in Shanghai
Chinese fakes have been an ongoing problem for Apple.
Photo: FullbridgeProgram/Flickr CC

The Chinese governement is finally starting to crack down on fake Apple stores and service centers that look just like the real deal.

Authorities in Beijing fined a store 270,000 yuan (US$43,000) after it was found to be infrining on Apple’s intellectual property and fooling customers into thinking they were getting serviced directly by Apple.

This cheap iPhone X clone comes with a massive battery

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U18
It looks just like the iPhone X.
Photo: Oukitel

Battery life on the iPhone X got you down? Consider downgrading to an iPhone X knock-off fresh out of China.

The Chinese company Oukitel unveiled its newest iPhone copycat this week that comes with a lot of the same features for a fraction of the cost, including a vertically stacked dual-lens camera and face unlocking.

What to expect from Apple’s first earnings call of 2018

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Earnings call
Apple's Q1 2020 earnings report will probably break some records.
Photo: Jim Merithew/Cult of Mac

The first big Apple earnings report for 2018 is nearly here. And, based on analysts’ expectations, it will likely be Apple’s biggest moneymaking quarter ever.

After weeks of waiting, investors will finally get their first look at how well the iPhone X is selling. Apple’s holiday sales probably hit historic levels. But with recent reports that Apple slashed iPhone X orders in half, there could be quite a few surprises in store.

As usual, Cult of Mac will be here to liveblog all the action as it transpires on Thursday, February 1, at 2 p.m. Pacific. Get ready to watch for these six things during the call:

Apple’s Clips app gets an update celebrating Chinese New Year

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New Year
Chinese New Year takes place on February 16.
Photo: Apple

Apple has given its Clip app for iOS a minor upgrade, celebrating Chinese New Year, which takes place next month.

The app’s update includes a commemorative Chinese New Year label and poster, along with minor updates for improved stability when recording Selfie Scenes on iPhone X, and a fix for an issue that caused the “Top Secret poster” to animate incorrectly during playback.

Apple faces new accusations of harsh conditions in supply chain

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Foxconn employees accused of $43 million iPhone scam
Tim Cook meeting one of the factory workers working on Apple products in China.
Photo: Apple

Foxconn isn’t the only Apple supplier to be accused of having hazardous working conditions. According to a new report, manufacturer Catcher Technology Co. — which produces casings for iPhones and MacBooks — also promotes an unsafe work environment in its factories.

This includes getting employees to handle noxious chemicals without the proper gloves or masks; cold, cramped accommodation, and an excessively loud workplace, with noise levels over 80 decibels and a lack of earplugs to protect workers’ hearing.

Chinese consumer group demands action concerning iPhone slowdowns

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iPhone 8 Plus image
Another group is demanding answers from Apple.
Photo: Ste Smith/Cult of Mac

A Chinese consumer group is joining the number of organizations and individuals asking Apple for more information about its purposeful slowing down of older iPhones as their batteries degrade.

In a letter sent to Apple this week, the Shanghai Consumer Council asks Apple for details about what it plans to do to rectify the issue. It wants a response by Friday.

iCloud switch in China could impact international users too

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Hacker who tried to extort Apple for $100k is spared prison
Apple is migrating Chinese iCloud accounts to a locally-owned server in February.
Photo: Jim Merithew/Cult of Mac

There appears to be a bit of confusion regarding who is and isn’t going to be affected by Apple’s migration of China-based iCloud accounts to a server operated by a Chinese company next month.

According to a new report, the migration of iCloud accounts is also affecting a number of accounts that were opened in the U.S., are paid for with U.S. dollars, and are connected with U.S.-based App Store accounts.

Chinese company will take control of local iCloud accounts next month

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Hacker who tried to extort Apple for $100k is spared prison
The changeover affects only iCloud customers in China.
Photo: Jim Merithew/Cult of Mac

Apple’s iCloud services in mainland China will switch over to a server operated by a Chinese company starting next month.

Apple sent out a message to customers in China, revealing terms and conditions of the changeover. This includes the fact that both Apple and the Chinese firm, Guizhou-Cloud Big Data Industry (GCBD), will now have access to all customer data stored on iCloud.

AirPower knockoffs are already rolling out of China

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AirPower
Will we finally get a release date for AirPower?
Photo: Apple

It’s taken no time at all for Chinese companies to copy one of Apple’s most anticipated products of 2018, and it’s not even out yet.

Apple’s AirPower wireless charging pad isn’t expected to roll out for a few months, but one company in Shenzhen China has already come out with its version that looks and performs just like Apple’s.

Check it out:

Chinese clothing company sues Apple over App Store logo

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Kon vs. Apple
Spot the difference?
Photo illustration: Kon/Apple

Apple is facing a lawsuit in China from a local clothing brand, which argues that Apple is infringing on its design trademark with its logo for App Store.

Apple changed the icon for the App Store in August this year — jettisoning the previous image showing a ruler, pencil and paintbrush crossing over to form an “A” shape, in favor of a simplified version of the same image. Unfortunately, clothing brand Kon has been using a similar image dating back to 2009, supposed to show skeletons bones symbolizing triumph over death.

U.S. senator says Apple should defend free expression in China

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Tim Cook
Comments came after a recent keynote Tim Cook gave in China.
Photo: Apple

Democratic Party Senator for Vermont Patrick Leahy has argued that Apple has a “moral obligation” to push back against suppression of free expression in China.

Leahy, who is the most senior senator and took office in 1975, has previously questioned Apple’s relationship with the government in China. In a new interview with CNBC, he said that, “American tech companies have become leading champions of free expression. But that commitment should not end at our borders.”

Tim Cook reaffirms Apple’s commitment to China

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Tim Cook
Tim Cook has said that China is Apple's future biggest market.
Photo: Apple

Apple CEO Tim Cook gave a keynote speech at China’s World Internet Conference on Sunday, reaffirming Apple’s commitment to China, which Cook has previously called Apple’s future biggest market.

Cook said the theme of the conference, which he described as a “developing a digital economy for openness and shared benefits,” is one that is shared by Apple.