Apple’s iPhone Sales Fall Short: What It Means for the Future

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What’s up, Tech Squad? As we wrap up January, the tech world is buzzing with developments that are anything but chilly. From Apple’s financial maneuvers to Meta’s internal shake-ups, let’s dive into the latest headlines making waves.

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Apple's iPhone Sales Slip Due to China Competition

Turns out, Apple can fumble iPhone sales and still make Wall Street happy. The tech giant’s stock jumped 3.3% in after-hours trading, even after reporting a nearly $2 billion shortfall in iPhone revenue compared to analyst expectations.

Apple pulled in $69.1 billion from iPhones last quarter, making up over 55% of its total revenue. But global iPhone shipments dipped 4% year-over-year, thanks to stiff competition in China from Huawei and Xiaomi. That market hit was big—Greater China revenue fell 11% to $18.5 billion.

By the numbers:

• $124.3 billion – Total revenue last quarter (a new record)

• $36.3 billion – Net profit (up 7.1% YoY)

• $26.3 billion – Services revenue (up 14%)

• 4% – Decline in global iPhone shipments

• $3.57 trillion – Apple’s current market valuation

Still, services revenue soared and Apple Intelligence—its AI push—has users excited (except in China, where it’s not yet available). Despite the iPhone miss, investors are staying bullish—because hey, who needs phone sales when you’ve got a $3.57 trillion valuation?

Tesla’s Full Self Driving Mess: Another Hardware Upgrade Required

Elon Musk just admitted what Tesla owners have suspected for years—those “Full Self-Driving” (FSD)-ready Teslas? Not actually FSD-ready. In yet another twist, Musk announced that Tesla will have to replace millions of HW3 computers in vehicles that were supposed to achieve autonomy.

The latest FSD headache:

• 2016: Tesla promised all its EVs had the necessary hardware for FSD. That was a lie.

• 2018: Tesla swapped HW2.5 for HW3—but only for those who paid for FSD.

• 2024: Now, HW3 isn’t good enough either, and another replacement is coming for FSD buyers.

• FSD price jump: The package once cost $2,000—now, it’s a staggering $15,000.

• Musk’s take? “I’m kind of glad not that many people bought the FSD package.”

Oh, and HW3 computers have also been recalled due to short-circuit issues. Meanwhile, HW4-equipped Teslas (2023+ models) are already on the streets. If you were hoping for a robotaxi fleet, don’t hold your breath.

Zuckerberg’s Tense All-Hands: Layoffs, AI, and a ‘Productive Partnership’ with Trump

Meta’s first all-hands of the year was less Q&A and more “let’s talk about what I want to talk about.” Mark Zuckerberg, clad in a gold chain and white long-sleeve, dodged hot-button employee concerns—like looming layoffs and content moderation shifts—by filtering questions and disabling live comments.

Key takeaways from the meeting:

• Layoffs incoming – Zuck called the upcoming Feb. 10 ‘low-performer’ cuts the “right thing to do” and a way to “rip the Band-Aid off.”

• DEI is out – Meta’s diversity programs are getting the axe, with Zuck citing regulatory shifts. Unconscious bias training might return, but not with the same focus.

• Content policy changes – Meta is relaxing moderation rules to “align with the mainstream.”

• Trump-era relations – Meta is “taking the opportunity” to collaborate with the new administration.

• AI & Smart Glasses push – Over 1M Ray-Ban Meta glasses sold last year, and Meta AI now boasts 700M+ users, aiming for 1B in 2025.

Zuck’s parting words? “It’s going to be an intense year, so buckle up.”

DeepSeek Shakes Up the AI Race, Markets Panic

A Chinese AI company just threw Silicon Valley and Wall Street into chaos. DeepSeek’s latest AI models rival OpenAI’s—but at a fraction of the cost—sparking fears that China is catching up fast despite U.S. chip restrictions. Investors panicked, wiping hundreds of billions off tech stocks, including Nvidia and Microsoft.

Breaking down the DeepSeek drama:

• Is it actually cheaper? DeepSeek claims it trained its V3 model for just $6M, while GPT-4 cost over $100M. But analysts say that’s just a natural efficiency gain, not a breakthrough.

• Export bans failing? Despite U.S. restrictions, DeepSeek stockpiled thousands of Nvidia H800 chips, giving it enough power to stay competitive.

• Nvidia in trouble? The market freaked out, slashing $600B from Nvidia’s value—but AI pros say demand for high-end chips will increase, not decline.

• Trump’s $500B AI plan: The new administration is doubling down on AI infrastructure spending to maintain U.S. dominance.

DeepSeek might not be a game-changer yet, but one thing’s clear: the AI race just got a lot more interesting.