- Front Research
- Posts
- Tesla's Profits Plunge 55% Amid Hybrid Car Pressure and Intern Stribulations
Tesla's Profits Plunge 55% Amid Hybrid Car Pressure and Intern Stribulations
+ 11 must-read tech news stories.
Kristoffer Lindström
April 24, 2024
Sponsored by
TECH BRIEF
Apple is reportedly reducing its Vision Pro headset shipment forecast for the remainder of this year due to lower-than-expected demand. Sources claim only about 400,000 to 450,000 units are projected to sell in 2024, in contrast to a market consensus of 700,000 to 800,000. This could potentially affect the broader tech industry, especially the adoption of VR and AR components, and push back the introduction of a lower-cost mixed reality headset beyond 2025.
Tesla's Q1 profits plummeted 55% to $1.13 billion due to a sustained EV price-cutting strategy. The company's revenue also dipped 9% to $21.3 billion compared to last year. Amid global preference for hybrids over EVs and challenges from the Red Sea conflict, and a Berlin Gigafactory arson attack, Tesla remains focused on its future products and services. Despite profit downfall, Tesla's shares increased 7% after the report release.
Audio-streaming giant Spotify’s Q1 results illustrated a 14% YoY increase in paid subscribers, reaching 239 million and total active users standing at 615 million. Total revenue surged by 20% to €3.6 billion ($3.8 bn). Adjusted operating profit was €168 million, surpassing analyst estimates. After hiking prices last year, Spotify plans to further increase charges and implement new, flexible subscription plans.
Apple's Q1 smartphone shipments in China fell 19% year-on-year, its worst performance since 2020, amid the increased pressure from Huawei's new product launches. The company's market share dropped to 15.7% from 19.7% a year earlier, behind Vivo and Huawei, whose sales surged 70%. Huawei's resurgence in the high-end market segment, powered by its advanced China-made chip, is anticipated to drive its market share to 19% this year.
The US Senate has approved a law requiring ByteDance to divest TikTok to a US-approved buyer or risk a ban. President Biden has signaled he will sign the law. The enacted Protecting Americans from Foreign Adversary Controlled Applications Act (PFACAA) raises concerns about user data access and potential misuse by ByteDance. The transition deadline is 25 January, 2025. Possible legal challenges and potential acquisition interest have been reported.
IBM is reportedly closing in on an acquisition of cloud-software provider HashiCorp, whose software helps businesses set up their infrastructure in the cloud. The potential deal aligns with IBM's current transitioning to a hybrid-cloud and AI-focused company. The acquisition would follow IBM's $5 billion purchase of software company Apptio last year.
Ray-Ban Meta Smart Glasses now feature a multimodal AI, which can process various types of information and identify objects with generally good accuracy. This addition enhances the product's existing functionalities like live-streaming and open-ear headphones.
Amazon introduces a new grocery delivery subscription service for Prime Members and EBT customers across 3,500 U.S cities and towns. This expansion follows a successful trial run in Denver, Sacramento, and Columbus, with the service priced at $9.99 per month.
OpenAI has introduced enhanced enterprise features, focusing on bolstered security, cost management and administrative control. The updates also include an upgraded Assistants API, a secure 'Private Link', and a new 'Projects' feature.
Adobe introduced Firefly Image 3 AI model, injecting AI capabilities into Photoshop. This upgrade simplifies image generation, providing creative control for new-to-Photoshop users. Adobe has pledged steadfast commitment to AI ethics.
BCG expects to generate 20% of its 2024 revenues from AI consulting, a figure set to double by 2026. Companies are accelerating their shift from AI experimentation to full-scale deployment, with BCG playing a key role in this integration.
Meta's app, Threads, has overtaken X, formerly Twitter, in US daily users since December — a 55% increase — despite X's lead in monthly active users.
Reply