This week, we discuss the first quarter earnings reports of the biggest winners and losers from the tech sector and delve into why March 2016 is looking like a very big month. Here is Moshi’s Week in Tech for January 29.
Tech Companies’ Q1 Earnings Reports
TechCrunch reported that Apple’s earnings report beat expectations, but that the future may show some gloom on the horizon. Although Apple reported a record $75.9 billion in revenue and 74.8 million iPhone sales, there was a 6.5% tumble in stock price as the market is starting to sour on Apple’s position. For the second quarter of 2016, Apple is predicting revenue between $50 billion and $53 billion, well below Q2 2015’s $58 billion performance.
Apple CEO Tim Cook’s reasoning for the less than stellar future is due to a variety of macroeconomic factors, from various global currency issues to “the overall malaise in virtually every country in the world.” However, Cook remained optimistic on the earnings report call, reporting that there are more Android users transitioning to the iPhone and promising signs of significant market growth in India.
The biggest winner this week, as far as earnings reports go, was Facebook. Renowned Facebook CEO Mark Zuckerberg reported that “2015 was a great for Facebook,” with its community growing and business thriving, all while dressed in his iconically casual attire. In total, Facebook’s revenues came in at $17.93 billion, an increase of 44 percent year-over-year.
Looking ahead, Facebook estimates a total of 1.59 billion monthly active users by the end of Q2 2016. The largest social network in the world shows no signs of slowing, which is incredibly telling – especially when Twitter, one of its earliest competitors, is on a notable decline in value.
The first quarter is done, and now onto the second!
March 2016 Is Going To Be Big!
Looks like March is certainly going to come in like a lion. Apple and Tesla, two of the biggest tech names, both have major events planned and will be vying to have all eyes focused on them.
Apple speculations are practically a tradition at this point. Everyone and their grandmother seem to be guessing at what Apple has up its sleeve for its March event – will it be the iPhone 5se? New Apple Watch? iPad Air 3? The list goes on, and we will be watching.
However, the most remarkable March player might just be Tesla. The Verge reports that Tesla may be debuting a second car at its Model 3 event in March. Some sources say that it could be the Model Y crossover, but not much is confirmed at this time. The Model 3 is going to be pretty nifty though, as its supposed pricetag will be around a more reasonable $35,000 mark.
I imagine both companies planning their big reveals in March is not a coincidence, and is more than likely some healthy tech company rivalry. In a sense, Tesla seems to be following Apple’s approach to its car marketing and modeling. The big event reveal and similar naming convention for Tesla vehicles are very similar to Apple’s iPhone announcements and product updates. For example, the Tesla’s Model 3 and Model S sounds awfully similar to Apple’s iPhone 6 and iPhone 6s. The interesting similarities in marketing are probably not just a happy accident. Tesla definitely has Apple on its radar, and Elon Musk has snarkily referred to Apple as Tesla’s graveyard for its worst engineers more than a few times in recent memory.
In any event, it’s fun to watch as the two titanic brands compete, and imagine what possibilities might come if Tesla and Apple do go to head-to-head in the automotive industry (if Apple have a car up its sleeve, of course…).
Now, with all that speculation and financial reporting out of the way, here’s a bit of fun from the tech world this week.