Google Pixel 2 launch hampered by display, pricing and shipping issues

The launch of Alphabet Inc's second-generation Google Pixel smartphones has been hampered by display screen problems and pricing and shipping issues, prompting the company to open an investigation and issue multiple apologies to customers.

The Pixel 2 and Pixel 2 XL, which start at $649 and debuted in stores on Thursday, are the lynchpin of Google's efforts to take on Apple Inc's iPhone directly.

Early Pixel 2 users have voiced frustration with mishaps, including a potentially serious problem with the screen.

Google said on Sunday it is investigating whether graphics are burning into the display of the Pixel 2, following a report on the AndroidCentral blog detailing the issue after a week of use. Burn-in, which usually becomes a problem only after several years of activity, can make it difficult to see information on the display.

Google likely would need to halt production if there is a problem, said Ryan Reith, a mobile device analyst at research firm IDC.

"We take all reports of issues very seriously, and our engineers investigate quickly," Mario Queiroz, Google's vice president for Pixel product management, said in an emailed statement to Reuters. "We will provide updates as soon as we have conclusive data."
READ MORE

Wall Street falls on North Korea comments, tech selloff

US stocks fell sharply in late morning trading on Monday after North Korea accused the United States of declaring war and a selloff in technology stocks accelerated.

North Korea's foreign minister said President Donald Trump had declared war on North Korea and that Pyongyang reserves the right to take countermeasures.

The five tech giants — Facebook, Amazon, Apple, Netflix and Alphabet — were down between 3.7 per cent and 1.05 per cent, weighing on the three major indexes.

The S&P technology index slid 1.37 per cent, on track for its worst single-day percentage loss since August 17. The index, however, has climbed 23 per cent so far this year, outperforming the 11.5 per cent gain in the broader S&P index.

"Technology stocks have been outperformers for a while, so it could be a slight amount of profit taking," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
READ MORE

iPhone X: Apple makes a $999 gamble on its aspirational brand

Apple is taking a calculated risk with the pricing of its new phone. The $999 iPhone X is a bet on users’ loyalty and wealth and is on the surface consistent with the company’s longstanding strategy of differentiation and exclusivity. The danger lies in how the phone sells in the world’s huge and growing emerging markets; Apple clearly thinks it is a risk worth taking.

And it’s not without reason. Apple has always targeted the higher end of the market worldwide rather than just aiming for a larger base of users. In fact, if anything, Apple tends to price phones higher outside the US. The UK has to stomach an inflated price for the iPhone X even when tax differences are allowed for.

To be clear, the top end phone is not the only option. British customers will be able to pick up an iPhone 8 for £699 and an iPhone 8 Plus for £799. This is still more expensive than its direct competitors, but the demand curve for the iPhone is relatively inelastic. This means that for a given percentage increase in price, the percentage reduction in demand is smaller, giving an overall increase in revenues. No wonder the iPhone accounts for the majority of Apple’s revenues and profits.
READ MORE

Strong show by Caterpillar, McDonald's has S&P at record high, Nasdaq drags

A set of strong earnings from companies, including Caterpillar and McDonald's, lifted the Dow and drove the S&P 500 to a record high, but the tech-heavy Nasdaq was dragged lower by losses in Google parent Alphabet Inc.

Shares of McDonald's surged 5 percent after the fast-food giant posted the biggest rise in sales at established restaurants globally in five years.

Caterpillar's shares rose 4.1 percent after the company reported quarterly results that smashed expectations and raised its full-year outlook for the second time this year.

However, Alphabet fell 2.6 percent, after the tech giant warned that expenses would remain high as more searches shift to mobile devices.

The S&P tech index has been the best performing sector this year and earnings from big tech companies will be closely watched to see if the rally has legs.

Amazon and Facebook, part of the high-flying "FANG" stocks, report results later this week, while Apple is due to report next week.

Earnings are expected to have climbed 8.8 percent in the second quarter, compared with an 8 percent rise estimated at the start of the month, according to Thomson Reuters I/B/E/S.
READ MORE

Alphabet beats Wall Street estimates; revenue up 21%

Google parent Alphabet has reported a quarterly profit of $3.5 billion, with a massive fine by the European Commission biting into earnings.

The technology giant yesterday reported that revenue grew to $26 billion in the recently ended quarter, and that profit would have tallied nearly $6.3 billion if it weren't for a $2.74 billion antitrust fine levied on search engine Google by the European Commission.

Revenue was up 21 percent from the same quarter last year, according to earnings figures.

"We're delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams," said Alphabet chief financial officer Ruth Porat.

Alphabet shares slid about 2.9 percent to $969.03 in after-market trades that followed release of the earnings figures.

Investors have been concerned about what the regulatory trouble in Europe means for Alphabet, which gets most of its money from Google advertising while investing in "other bets" such as self-driving cars.

Alphabet took in $248 million in revenue and posted a narrowed loss of $772 million in its "other bets" category in the recently ended quarter.
READ MORE

Court rules in favour of Google in 1.1-billion euro French tax bill case

US internet giant Google on Wednesday won a court challenge against demands by French authorities that it pay 1.1 billion euros ($1.3 billion) in back taxes.

The Paris administrative court ruled that Google Ireland was not subject to corporate and value-added taxes (VAT) for the period 2005-2010, striking down the tax administration's demands for back payments.

The ruling in favour of Google, now part of Alphabet Inc, followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.
READ MORE