Enterprise

Here’s why Apple failed in 2018, according to Tim Cook

Blames China, cheap battery replacements

Published

on

Image source: Apple.com

For most of the year, Apple’s 2018 was one of the most turbulent periods in the company’s recent history. Despite launching three new phones, Apple trudged through a flurry of controversies and feuds with other companies. The company is facing a whirlwind of legal battles in different fronts, including China and Germany. Now, as 2019 gears up for its go, Apple reflects on the ups and downs of 2018.

In a publicly available investor’s note, Apple CEO Tim Cook shared his thoughts on what led to a tumultuous 2018. Among others, he enumerated the company’s troubles in China, the cheapened battery replacement program, and the success of non-iPhone properties.

Of course, Apple’s difficulty in China is well documented. For one, the company is up against more popular Chinese brands like Xiaomi and Huawei. Apple is doing poorly in the country. “In fact, most of our revenue shortfall… occurred in Greater China across iPhone, Mac, and iPad,” Cook said. Besides that, the company’s older models are banned because of Qualcomm.

While China (and other emerging markets) caused most of Apple’s downfall, another sizable chunk comes from the lack of iPhone upgrades. Existing iPhone users have stopped upgrading to the latest models. According to Cook, “some customers [are] taking advantage of significantly reduced pricing for iPhone battery replacements.”

In 2017, the company ran into a planned obsolescence issue. Apple purposely slowed down its older models to supposedly promote upgrading. As a result, the company offered a cheaper battery replacement program to stave off obsolescence. Because of increasing prices, most consumers preferred new batteries over new phones. While the decision was right for consumers, Cook is now mulling over the plan’s side effects.

To Apple’s credit, the company is enjoying success outside of the iconic iPhone. Apple’s services, wearables, MacBook, and iPad offerings “grew almost 19 percent.” Their services, including aftermarket care, generated US$ 10.8 billion in revenue. Wearables grew by 50 percent. At the very least, Apple succeeded in other fronts.

With that, Cook remains hopeful for the company’s future. “Most importantly, we are confident and excited about our pipeline of future products and services,” he concluded.

Of course, Apple’s future depends on more than its head honcho’s high hopes. As 2019 begins, the company is still facing several battles elsewhere. Apple is still undergoing an arduous appeal process to reverse China’s decision to pull out the company’s products. The company’s stock crashed by 38 percent since October. The future is still a blurry mess for the company.

SEE ALSO: Apple: New iPad Pro is ‘tighter than previous generations’

Enterprise

NVIDIA CEO Jensen Huang resigns after scandals

Published

on

NVIDIA’s week is finally and mercifully coming to an end. After being implicated in two extramarital affairs, now-former NVIDIA CEO Jensen Huang has resigned from his position.

It’s been a terrible week for Huang’s personal life. Last weekend, a bombshell report revealed that Huang engaged in an affair with Alice Huang, who is reportedly involved with Chinese intelligence. Quickly realizing the heaviness of the allegations, the CEO admitted quickly to the affair.

However, barely 24 hours ago, another report revealed that Huang had a second extramarital affair. Though he was clear of any more espionage allegations, his romantic affair of choice was another executive within the company. NVIDIA’s board of directors quickly debated whether Huang should be fired for his actions.

Now, Huang has voluntarily resigned from his position. The former CEO leaves behind his spot at the head of the table since cofounding NVIDIA in 1993.

In his stead, the board of directors have named incumbent CFO Colette Kress as the company’s interim CEO while the board searches for a permanent replacement. Despite her interim role, Kress will continue her duties as CFO.

Additionally, the board has named Harvey C. Jones, a member of board since its founding, as its first chair of the board.

Though the company will leave most of the controversy behind with Huang’s departure, its next chapter is about to begin. Will its new direction maintain the company’s tenuous balance between AI and gaming, or tip the scales towards one segment?

SEE ALSO: NVIDIA CEO admits to having an affair with alleged Chinese spy

Continue Reading

Enterprise

NVIDIA might fire CEO Jensen Huang after alleged second affair

This time, it’s with an executive within the company.

Published

on

After a horrendous first half of the week for the company, NVIDIA continues its string of bad luck after a new report alleges that CEO Jensen Huang engaged in a second extramarital affair with an executive within the company. As a result, the company is reportedly preparing to oust Huang from his position.

Early this week, a bombshell of an allegation implicated Huang in an extramarital affair with a supposed agent of Chinese intelligence. Soon after, Huang admitted to having an affair but declined to comment about the spy allegations. Because of his admission, NVIDIA decided to start an internal investigation into Huang’s activities but remained confident in Huang’s ability to continue leading the company.

Though the investigation has not concluded yet, a new report is further rocking the company. According to The New York Times, the same outlet that first reported on the Chinese spy allegations, Huang  was involved in a second extramarital affair with Kimberly Powell, NVIDIA’s vice president of healthcare products. She reports directly to Huang.

Based on the Times report, bystanders caught the couple being intimate in public but were offered to sign an NDA about what they saw. Both Huang and Powell are notably married.

After the recent findings, NVIDIA’s board reportedly met to discuss Huang’s future, according to the Wall Street Journal. The board of directors is supposedly preparing to fire Huang. The CEO’s controversies have caused the company’s stock value to drop. The problem, however, is that Huang does not have a clear successor, leading the company into potential limbo once he’s ousted.

SEE ALSO: NVIDIA CEO admits to having an affair with alleged Chinese spy

Continue Reading

Enterprise

NVIDIA CEO admits to having an affair with alleged Chinese spy

The company is currently investigating the allegations.

Published

on

In one of the craziest headlines this year, NVIDIA CEO Jensen Huang has admitted to having an affair with an alleged Chinese spy.

Over the weekend, a heavy allegation claimed that the NVIDIA CEO had a relationship with a person actively involved in Chinese intelligence. Since Huang is involved in business globally, the accusation isn’t a light one. In fact, it’s serious enough that Huang admitted to the affair late this past Sunday.

In an internal letter reported by Associated Press, the CEO acknowledged the existence of the affair with a business executive. Of note, Huang did not confirm the executive’s ties to Chinese intelligence. NVIDIA, however, will conduct its own investigations regarding the allegations. Despite the allegations, Huang will remain as the company’s CEO. The company is also confident that the alleged spy did not compromise NVIDIA’s secrets.

According to The New York Times, the executive, Alice Huang, was reportedly feeding information back to Beijing, despite being an executive of the Singapore-based Megaspeed, which is already a serious customer of NVIDIA.

Now, NVIDIA is currently in a prime position when it comes to the industry today. Formerly a huge proponent of gaming peripherals, the company is now one of the biggest names in AI hardware, allotting a lot of its products for data centers. Huang’s allegations come at an interesting time.

Continue Reading

Trending