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Reuters
16 hours ago
- Reuters
Apple's tariff-fueled iPhone sales surge raises doubts about sustainability
Aug 1 (Reuters) - Apple's best revenue growth in three years failed to impress, with shares down about 1% in volatile trading on Friday, as investors questioned whether a tariff-driven surge in iPhone sales would last. A rush to buy iPhones ahead of potential U.S. tariff-driven price increases, along with China subsidies and upbeat demand for the budget 16e model launched in February, fueled a 13.5% jump in the quarterly sales of the device, crushing expectations. That pushed up total revenue by a better-than-expected 10% in the April-June period, and Apple issued an above-estimate sales forecast for the current quarter ending in September. The results came at a precarious time for the company long seen as Big Tech's safest bet. Beyond the tariff threats facing its manufacturing hubs China and India, Apple has been slow to move on artificial intelligence technology that its software and devices rivals have embraced as their next big growth driver. Analysts said the sales rebound in China, where local rivals have moved faster than Apple on AI features, was a positive. The company benefited in the world's largest smartphone market from a state subsidy program meant to prop up device sales. But they also warned the "pull-in" boost was expected to be temporary, raising doubts about demand for the rest of the year. "Pull-forward, remember, is not a U.S. issue. It's also a China issue. There, Apple's Pro model iPhones were too expensive to qualify for Chinese government subsidies that were being offered … so they cut prices to qualify, leaning into the volume opportunity. It worked," MoffettNathanson analysts said. "But as with the U.S., what does that mean for the rest of the year?" So far this year, Apple stock has underperformed all its "Magnificent Seven" peers barring Tesla (TSLA.O), opens new tab, with a decline of more than 17%. The S&P has risen 7.8% in the period. Many of Apple's products are currently exempt from tariffs, and the company has also been rebalancing its supply chain to shield itself from the duties, sourcing iPhones from India and other products such as Macs and Apple Watches from Vietnam. The U.S. is currently negotiating trade deals with both China and India, with U.S. President Donald Trump saying India could face 25% tariffs as early as Friday. Apple said tariffs would raise costs by $1.1 billion in the current quarter after the company said it took an $800 million hit from tariffs in the third quarter. Its AI strategy also remains a concern after Apple delayed the release of an AI-enhanced version of Siri virtual assistant and was slow to launch Apple Intelligence. CEO Tim Cook said on Thursday the company was making good progress on Siri and that Apple is "significantly growing" its investments in AI. "Brand loyalty gives Apple time to get the AI transition right, but it needs to start delivering," said Matt Britzman, senior equity analyst, Hargreaves Lansdown.


North Wales Live
17 hours ago
- North Wales Live
BT 'cut off grieving widow for 16 days and dementia sufferer told to buy an iPhone'
A grieving 70-year-old woman was without a phone line for 16 days after her husband died and a dementia sufferer was told to buy an iPhone in case of power outages, despite not knowing how to use a mobile. The "alarming" examples are among the experiences a digital skills tutor Wendy Cleaver gathered from her students in the Barmouth, Tywyn, and Harlech areas, and who had been customers of phone and broadband provider BT. In another example a retired farmer was said to be paying £355 quarter for a business line when he didn't run a business any more. They have prompted an MP to call for an independent audit of BT's processes when it comes to dealing with elderly and vulnerable customers. BT said it was "committed to supporting our vulnerable customers" but was unable to comment on the cases raised until "further details" are provided. During her community sessions, run through Coleg Meirion-Dwyfor (part of Grŵp Llandrillo Menai) Ms Cleaver helps people get to grips with new technology. She noticed some seemed to be paying higher tariffs often for services they didn't need or understand, or were having issues sorting phone or broadband packages and needed her help. "Many of my students come from the older generation, they didn't grow up with phones and computers, some were vulnerable, widowed, living alone or disabled," she said. "They didn't have the digital skills, knowledge or confidence to move between providers. Many stayed loyal to BT, a recognised name to them, some were afraid of losing their landlines. "The digital switch-over has completely confused a lot and others found it hard to understand the tech-jargon, some didn't understand the Digital Voice system". It is a technology that enables phone calls to be made over the internet instead of traditional phone lines. Ms Cleaver said: "Some were upset and worried about the amount of money they were paying for telecommunications, some seemed to be paying higher rates, whilst others were out of their depth dealing with customer support". 'Overwhelmed with jargon' In one case a pensioner who had lost her husband had contacted BT to tell them his name needed to be removed from the account and hers put on, she claimed. "She had never dealt with the finances or the technical side of things during the marriage, and the conversation with BT resulted in the account being cancelled, leaving her with no phone line for 16 days when she needed it the most, when she was grieving," Ms Cleaver explained. One gentleman had dementia, he and his wife were both over 70. They were moved to Digital Voice about two years ago. "When they said they had no alternative number in case of a power outage they were told to buy an iPhone," she said. "For two years they feared they would be cut off from the world because they didn't know how to make calls on a mobile". One woman with Parkinson's and a Medicare alarm, had been paying between £60-£70 a month for digital devices, Ms Cleaver said. She had asked for a better deal, after seeing Martin Lewis on the TV, but which had resulted in a complex situation which had taken five hours and 46 minutes of call time, with over 32 days to "unravel," Ms Cleaver added. In another case an 89-year-old disabled man with a lifeline pendant was paying on average £109 per month for just one laptop and mobile, Ms Cleaver alleged. Around 30 case studies were raised with Dwyfor Meirionnydd MP Liz Saville-Roberts. The MP said they showed an "alarming yet unsurprising" insight into the problems faced by many elderly and vulnerable BT customers living in south Meirionnydd. "The volume of evidence includes BT's failure to support vulnerable customers according to their needs, a lack of genuine empathy and understanding when dealing with complaints, the apparent mis-selling of products, and significant price discrepancies," she said. "It concerns me, there's no specific call handling process in place to deal with the needs of elderly and vulnerable customers. "From what constituents have told me, there seems to be scant acknowledgement of generational variations in confidence when compelled to switch from familiar technologies to new digital systems. "They tell me of being overwhelmed by jargon-filled selling practices with limited opportunity to clarify and double-check what's being offered to them. Many live on their own or haven't the confidence or knowledge to challenge BT call handlers. 'Out on a limb' "It seems that BT's ineptitude in complaint management is also having an adverse impact on customers' well-being, with many elderly constituents telling me their experiences have left them worrying about their finances. "It should be appreciated that many have little trust in BT as a provider but have remained loyal to the company for fear of losing their home telephone number or lack the skills to switch providers. "The digitisation of our communication networks has left a cohort of the population out on a limb, without sufficient recourse to challenge and question network providers who are seemingly indifferent to the needs of elderly and vulnerable customers. 'Committed to support' "Given the overwhelming nature of these complaints, surely this warrants an independent audit of BT's processes when it comes to dealing with elderly and vulnerable customers. "At every turn, the priorities of profit-making organisations seem to over-ride by default the needs of people who are dependent on the utilities they provide. This must be questioned, especially during the switch-over from analogue to digital telephone lines.''. A BT spokesperson said: 'We're committed to supporting our vulnerable customers and continue to work hard to keep them connected and supported. "We continue to run an extensive awareness campaign highlighting Digital Voice which is part of an industry-wide shift from analogue to digital landlines, this includes community advice sessions providing face to face engagement for customers in Wales. "Working with AbilityNet BT are supporting 7,000 older people and disabled adults to develop their digital skills, confidence and ability to stay safe online. "For our Welsh-speaking customers, we offer a Welsh language service, including dedicated helplines and billing options.' 'Without the information we need to look into these cases individually, we are unable to comment on these, however we welcome the opportunity to look into these if further details can be provided. "We always encourage our customers to inform us of any changes to their circumstances, so we can offer the right level of help and the most appropriate products and services. "Our guides will always try to identify specific needs when engaging with a customer, if a vulnerability is mentioned we'll ask the customer if they want it registered with us."


Daily Record
19 hours ago
- Daily Record
Ignore the rumoured iPhone 17 - Sky's iPhone 16e deal is almost unmissable
The iPhone 16e is Apple's latest budget smartphone, taking all the best parts of a phone but at a much cheaper price - and Sky has just dropped the monthly price of the device The iPhone 17 is on the horizon, with many rumours and leaks already circulating. It seems that Apple is set to significantly revamp the design of the phone, with speculation suggesting a new iPhone 17 Air could be in the pipeline. However, as many of us are aware, these newly designed iPhones will likely come with a hefty price tag upon release. Instead, we've unearthed a deal for those who desire all the functionality of an iPhone but at a more affordable cost. The iPhone 16e is Apple's latest budget-friendly handset, offering the best features of an iPhone 16 but at a lower price. Sky has reduced the monthly cost of the device to just £18 in time for payday. For £18 per month, customers will receive a 6.1‐inch Super Retina XDR display, extended battery life, the A18 chip onboard, and a 48MP camera to capture all the photos any Apple fan could ever need. Essentially, it's a watered-down iPhone 16, but at a cheaper price, and it still boasts some of the best aspects of the iPhone. Those in the market for a new mobile, there have been several appealing options available. The newest Samsung Galaxy Z Fold7 could be an option, and prices kick off at £44.99 a month. Alternatively, there are always Apple's devices as well. Giffgaff offers the newer iPhone 16 Pro for £24 per month, though there's a slightly higher initial cost of £25 upfront, allowing shoppers to split the price into smaller payments. One shopper recently switched to the new device, and said: "I upgraded from my old iPhone and wow, what a difference. The screen is edge-to-edge, and the battery capacity is impressive. It's well worth the cost as it's the cheapest iPhone that has been produced in some time." Another buyer simply remarked: "Very impressed with battery life on this phone." Nevertheless, one customer did observe: "The phone is ideal for my needs, long life on battery. Although I did need to buy an adapter to charge, I will also need one to use my non-wireless earphones." Technology experts also examined the iPhone 16e on the Daily Express upon its launch, it features some premium capabilities of an iPhone 16 without the hefty price tag. Technology editor Dave Snelling commented: "Apple's new iPhone 16e should definitely not be ignored. This is a great smartphone that packs quite a punch for a much cheaper price than its siblings. "No, it doesn't get all of the features found on the iPhone 16 or iPhone 16 Pro, but if things such as Camera Control and MagSafe don't really bother you, then this is a solid device to consider. What you do get is a beautifully made phone that is built for the future and the next generation of Apple Intelligence updates." He did caution that the iPhone 16e isn't a full-fledged iPhone - and it's something Apple enthusiasts should bear in mind. He further stated: "Just be aware that its lower cost means fewer features. You'll need to decide what really matters to you and what compromises you are prepared to make."