Apple iPhone Shipments In China Rebound 52%, Market Share Loss To Huawei May Be Stabilizing

Apple iPhone Shipments In China Rebound 52%, Market Share Loss To Huawei May Be Stabilizing

Apple’s sliding iPhone market share in China, pressured by competition from Huawei, may finally be stabilizing. New shipment data from the world’s largest handset market indicates that iPhones staged a 52% rebound in April, supported by aggressive price cuts to boost demand after a challenging start to the year.

Bloomberg was the first to report new figures from the China Academy of Information and Communications Technology showing that smartphone shipments in April surged to 22.668 million units, a 25.5% year-on-year increase. According to Bloomberg calculations, 3.5 million units came from foreign brands, with the majority of that accounting for iPhones. 

Source: Bloomberg

For the period January to April, the shipment volume of smartphones topped 86.441 million units, a 10.3% year-on-year increase. 

The rebound in iPhone shipments is a significant relief for Apple following sliding sales due to Huawei’s new Mate 60 Pro, companies and government agencies banning Apple devices, and a wave of patriotic buying of made-in-China smartphones as the tech war between the US and China worsens. 

In the first few months of the year: 

Followed by discounts…

With an improving outlook: 

Not as bad as once feared… 

In markets, the iPhone shipment headline hit around 0400 ET. 

It sparked a 26bps rise in Nasdaq futures. Those gains have since mostly been wiped around 0630 ET.

Apple’s shares were up 2% in premarket trading. 

Bloomberg Intelligence analysts say the decline in iPhone shipments in China could be coming to an end. 

“The iPhone’s shrinking China market share could stabilize soon, as our latest survey shows Apple’s comeback as Chinese consumers’ favorite smartphone brand after being displaced by Huawei,” analysts Steven Tseng and Sean Chen wrote.

The analysts said, “We believe the reversal in user interest could be due to the premiumization trend in China, amplified by consumer fatigue after long waiting times for Huawei’s premium models.” 

Tyler Durden
Tue, 05/28/2024 – 07:55

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Elon Musk’s xAI Raises $6 Billion To Accelerate AI Race Against OpenAI

Elon Musk’s xAI Raises $6 Billion To Accelerate AI Race Against OpenAI

Elon Musk’s AI startup, xAI, announced early Monday morning that it had raised $6 billion from investors in a Series B fundraising round. This funding will accelerate its artificial intelligence development as the AI tech war with OpenAI intensifies.

Some key investors were Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding.

Musk wrote on X that the pre-money valuation was $18 billion. 

xAI listed its accomplishments over the past year:

xAI has made significant strides over the past year. From the announcement of the company in July 2023, to the release of Grok-1 on X in November, to the recent announcements of the improved Grok-1.5 model with long context capability, to Grok-1.5V with image understanding, xAI’s model capabilities have improved rapidly. With the open-source release of Grok-1, xAI has opened doors for advancements in various applications, optimizations, and extensions of the model.

Then it outlined what’s coming down the pipe:

xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced. The funds from the round will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.

Musk added on X that, in terms of future announcements, “There will be more to announce in the coming weeks.” 

The fundraising shows that the AI arms race between Musk and ChatGPT creator OpenAI, as well as with others, is heating up. Grok is different from competitors, like ChatGPT4, because it’s trained on X posts and considered by some to be ‘anti-woke.’ 

Tyler Durden
Tue, 05/28/2024 – 07:45

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Traders Starting To Price Out ECB Rate Cuts… And Rightly So

Traders Starting To Price Out ECB Rate Cuts… And Rightly So

Authored by Ven Ram, Bloomberg cross-asset strategist,

Market pricing on the European Central Bank’s rate trajectory for the year is now a lot more realistic, but still has room to mellow.

After factoring in as many as three reductions just days ago (and almost seven cuts at the start of the year), traders are now pricing in some two-and-fractional cuts, but that is still work in progress.

The ECB’s Chief Economist, Philip Lane, spoke in Dublin yesterday stating that the full impact of their unprecedented monetary-tightening campaign is yet to be felt.

“While the impact of the tightening cycle on economic activity might have reached its maximum level at the turn of this year, model-based analysis suggests that the bulk of the impact on inflation is comparatively backloaded, with substantial pass-through still expected to transpire in the period ahead,” Lane said.

The first expected reduction in June is nearly done – signed and sealed, but just waiting to be delivered.

The interesting question, though, is what happens beyond.

Will the governing council go at alternate meetings, delivering a cumulative 75 basis points of cuts for the year?

Most policymakers are unwilling to even comment on the subsequent path given uncertainty over wage growth and factors like the fighting in the Middle East.

“In deciding on the appropriate policy rate path, we will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction, and we are not pre-committing to a particular rate path,” Lane said.

Or will they opt for just one more beyond June – especially in the event that the Federal Reserve is constrained from easing?

Should the Fed find itself unable to loosen policy, it would be tall order to expect the ECB to reduce three times this year.

The markets are now veering around to that view, but there is still a bit of a ground to cover.

Tyler Durden
Tue, 05/28/2024 – 07:20

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Nvidia Is Worth More Than All Of These Companies Combined

Nvidia Is Worth More Than All Of These Companies Combined

Nvidia’s massive rise in the AI era has been well-documented, but did you know that it’s currently the world’s third most valuable company?

To put the massive market cap of Nvidia into perspective, we’ve put it side by side with a collection of other major U.S. tech companies.

All figures were sourced from Companiesmarketcap.com, and are as of May 23, 2024.

Data and Takeaways

All of the numbers we used to create this graphic are included in the table below.

These figures are even more impressive when you consider that at the beginning of 2020, Nvidia was valued at a relatively tiny $145 billion.

Since then, the company has greatly surpassed other American chipmakers like Intel and AMD. This growth is due to several key factors:

  • Expansion into AI and data centers: Nvidia’s chips are highly effective for AI training, making them essential for companies engaged in machine learning and generative AI

  • Advancements in AI software: Nvidia has developed AI software platforms, such as CUDA-X and TensorRT, which are widely used by researchers.

  • Strong financial performance: Nvidia has consistently delivered strong financial results in recent years, with substantial revenue growth.

Closing in on Apple

With Nvidia’s latest stock surge (up 13.5% over the past five days ending May 24, 2024), the company could possibly overtake Apple to become the world’s second most valuable company.

Microsoft, another major player in AI, holds the #1 spot with a market cap of $3.2 trillion.

If you enjoyed this graphic, be sure to check out this graphic that breaks down Nvidia’s revenue by product line, from 2019 to 2024.

Tyler Durden
Tue, 05/28/2024 – 06:55

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Oil’s Fate Hinges On OPEC+ Hanging Tough

Oil’s Fate Hinges On OPEC+ Hanging Tough

By Jake Lloyd-Smith, Bloomberg Markets Live reporter and strategist

The global oil market is in OPEC+ walk-up mode.

That should keep prices supported this week ahead of the (now online) gaggle, which falls on June 2.

After that, price direction hinges on the immediate fallout from the meeting, plus bets about the market’s 2H trajectory.

Conventional wisdom points to an extension of the cartel’s current curbs, especially as weakening near-term timespreads suggest that physical conditions aren’t quite as tight as they have been of late.

Bloomberg’s Grant Smith, a well-seasoned OPEC+ watcher, leans that way, and that looks to be a sound call.

The existing reductions amount to ~2 million bpd, and the tap-tightening has contributed to a growing volume of unused capacity — a theme that may get an airing.

Crude’s sentiment this week will also be shaped by indications of just how strong Memorial Day weekend demand has proved to be in the US as the country embraces the start of the traditional driving season and takes to the roads (and skies).

Early signs have pointed to a solid showing, both on the highways and in the skyways.

Tyler Durden
Tue, 05/28/2024 – 06:30

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UK’s Sunak Vows Mandatory Conscription For 18-Year-Olds If Elected

UK’s Sunak Vows Mandatory Conscription For 18-Year-Olds If Elected

In another ominous sign of things to come, leading Western governments appear to be preparing for ‘something big’ at a moment the proxy war between Russian and NATO centered in Ukraine is escalating at uncontrollable pace.

“Rishi Sunak has vowed to introduce mandatory national service for 18-year-olds if he is re-elected, in his first major policy announcement since the start of the election campaign earlier this week,” Financial Times has reported.

Interestingly, the next line to the very same report screams Russia! as the subtext…

The move is part of what he said was an effort to provide security and opportunity in “an increasingly uncertain world”.

The plan would involve 18-year-olds working closely with the professional armed forces on a 12-month rotation or a ‘community work’ basis. 

Sunak framed it in terms of civic duty and a matter of national patriotism…

“Generations of young people have not had the opportunities or experience they deserve and there are forces trying to divide our society in this increasingly uncertain world,” he said. 

It was only in January that the head of the British army, General Sir Patrick Sanders, urged for the populace to get ready to be on a war footing with Russia:

Britain should train a “citizen army” ready to fight a war on land in the future, the head of the Army has said.

General Sir Patrick Sanders warned that an increase in reserve forces alone “would not be enough”.

He highlighted the threat from Russia and pointed to steps being taken by other European nations to put their populations on a “war footing”.

This is part of the continuing theme of Western leaders asking their populations to ‘sacrifice’ for Ukraine amid deep trepidation and uncertainty over possible bigger nuclear-armed confrontation.

And all of this is happening against the backdrop of the US and UK stymieing past and current efforts to see Moscow and Kiev sit down at the negotiating table.

British media and officials in particular have been emphasizing of late a high degree of Russian ‘interference’ and even sabotage across Europe and on British soil.

Tyler Durden
Tue, 05/28/2024 – 05:45

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The Free World: An Alarming Status Report

The Free World: An Alarming Status Report

Authored by Majod Rafizadeh via The Gatestone Institute,

In the last few years, we have witnessed a world that has become significantly less safe and secure.

American and Western policy failures and strategic missteps appear to have emboldened adversaries and undermined allies. A lack of decisive action and coherent strategy has created power vacuums which have been exploited by hostile actors and resulted in increased instability and threats in the West to both national and global security.

It seems urgent for the long-term survival of the United States and the Free World – where people enjoy unprecedented freedom of speech, property rights, economic opportunity, religious freedom and other civil liberties – not to accept assaults on these hard-won achievements either at home or abroad.

Adversaries have become increasingly empowered, and allies may well be losing confidence in the West’s leadership. This week it was announced that three countries in Europe, IrelandNorway and Spain – all of which have long, unfortunate histories of antisemitism – plan to recognizing a Palestinian State that will be terrorist.

Rogue and belligerent states such as Russia, China, Iran and North Korea, have become more emboldened. In large part, the US has funded and enabled that. The Biden administration handed over Afghanistan to a terrorist group, the Taliban; now it looks as if the Biden administration and these three racist countries in Europe are determined to hand Gaza to another terrorist group, Iran’s proxy, Hamas, which openly says it is more committed than ever to destroying its free, democratic neighbor, Israel.

US President Joe Biden assured Russia in 2022 that a “minor incursion” into Ukraine would be all right. Predators do not “do” minor. The result was the largest attack on a European country since World War II. The invasion created a devastating humanitarian crisis, with estimates of tens of thousands of Ukrainian civilian casualties and hundreds of thousands of military casualties. Additionally, as millions of Ukrainians have been forced to flee their homes in search of safety, the “minor incursion” triggered Europe’s largest refugee crisis since World War II.

Similarly, any move in maintaining or empowering Hamas, or any of Iran’s other proxies, such as Hezbollah, the Houthis or Palestinian Islamic Jihad, will not bring “peace” to the Middle East. On the contrary, a “Palestinian State” will not only explode the conflict even further, it will also threaten the cohesion of the NATO alliance — the greatest gift that the Free World could give Russian President Vladimir Putin.

On October 7th, 2023, as a newly released video reveals — a Hamas gunman, deciding whom to murder, says of captive Israeli soldiers, “Here are the girls who can get pregnant.” The terrorist group had initiated a devastating coordinated invasion of Israel. The attack began with a massive barrage of rockets. Simultaneously, after systematically disabling Israel’s warning systems, roughly 3,000 terrorists crossed the Gaza-Israel barrier, launching attacks on Israeli military bases and 22 civilian communities. The onslaught, which had been planned for years, led to the slaughter on October 7th alone of roughly 1,200 Jews, Muslims and Christians; Israelis, tourists and foreign workers. The attack was characterized by unimaginable acts of brutality — sustained gang rapes, sexual amputations, beheadings and burning alive even infants.

Hamas terrorists also seized 240 hostages in Israel, forcibly taking them into Gaza’s underground city of tunnels, created with international aid money. In the aftermath, Israel, to rescue the hostages and to defend against promised repeated attacks, finds itself engaged in the most unprecedentedly complicated urban warfare. Israel is trying to protect its citizens and maintain its sovereignty in the face of relentless aggression, while battling not only Hamas but also two illegitimate antisemitic courts (the International Criminal Court and the International Court of Justice), the antisemitic United Nations, antisemitic European countries, well-funded antisemitic demonstrations in the West, and the Biden administration.

The Biden administration not only seemingly whetted the appetite of Iran’s regime to attack Israel directly on April 13, 2024, by continually appeasing Iran and failing to veto an anti-Israeli resolution in the UN Security Council, the US has also been trying for years to force oust Israel’s Prime Minister Benjamin Netanyahu — “Israel’s Churchill” — for being insufficiently subservient.

The US would doubtless prefer an Israeli prime minister who would allow Hamas to remain in control of Gaza and reconstitute its military capabilities; who would allow the creation of a terrorist Palestinian state bordering Israel, and who would stand aside as genocidal Iran obtains nuclear weapons.

Since Iran’s Islamic Revolution of 1979, the regimes, in addition to brutalizing its own people, have called for “Death to Israel,” “Death to America,” and have called Israel, smaller than New Jersey, a “one bomb” country and threatened to “wipe it” from the map. This situation is compounded by Iran’s accelerating advances in its nuclear weapons program, which has surged since the Biden administration assumed office.

Propelled by clandestine activities within its heavily fortified nuclear facilities, Iran’s nuclear capabilities have reached a critical point. On Friday, Iranian lawmaker Ahmad Bakhshayesh Ardestani made a chilling declaration, stating:

“In my opinion, we have achieved nuclear weapons, but we do not announce it. It means our policy is to possess nuclear bombs, but our declared policy is currently within the framework of the JCPOA.”

It is deeply concerning that the spokesperson representing the Atomic Energy Organization of Iran has openly declared Iran’s readiness to share its expertise in nuclear weapons with other nations, especially neighboring states.

In addition, the Communist Chinese regime, seeing the Biden administration reward aggression, pastpresent, and presumably future, is encircling the Philippines and Taiwan and sending tens of thousands of young men of military age in packs across America’s southern border, and more than 5,000 over its northern one.

In short, the current US administration, along with its allies, Ireland, Norway and Spain, Europe’s racist supporters of terrorism, are widening the window of opportunity for China, Russia, Iran and other malign actors to pursue their objectives with increased confidence.

One can only wonder which of the likely leaders of the Free World will permit — or put a stop to — these staggering negative trends of geopolitical deterioration in the future.

Tyler Durden
Tue, 05/28/2024 – 05:00

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These Countries Have The Highest GDP Per Capita In Africa

These Countries Have The Highest GDP Per Capita In Africa

With a GDP per capita of $21,580 in 2023, the Seychelles is Africa’s most prosperous nation, based on this indicator.

Highly dependent on tourism, Statista’s Anna Fleck notes that the archipelago’s economy remains highly vulnerable to global disruptions affecting the sector, as was the case during the 2008-2009 recession and the Covid pandemic (when GDP fell by almost 8 percent in 2009 and 2020).

Infographic: The Countries With the Highest GDP per Capita in Africa | Statista

You will find more infographics at Statista

In second and third place are Mauritius and Gabon, with a GDP per capita of between $9,000 and $11,000 last year.

South Africa ranks sixth, with a GDP per capita of $6,140, behind Botswana ($7,640), Equatorial Guinea ($6,660) and Libya ($6,580).

In half of these countries (Gabon, Equatorial Guinea, Libya), the economy remains highly dependent on oil revenues.

Although economists use GDP per capita to compare the level of prosperity of populations worldwide, it does not take into account the income inequalities that can exist within a country.

Based on the Gini index, for example, some African countries are among the most unequal on the planet in terms of wealth redistribution.

Tyler Durden
Tue, 05/28/2024 – 04:15

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Conscription Is Coming Back To Europe

Conscription Is Coming Back To Europe

Authored by Dénes Albert via ReMix News,

While several countries are reintroducing compulsory military service, some EU politicians would welcome a uniform reintroduction across the EU.

Hungarian news portal Divány has rounded up the countries that have reintroduced conscription.

Professional armies are understaffed across the continent, as more and more European countries are recognizing. In recent weeks, not only EU leaders but also the leadership of the German Christian Democratic Party has brought up the idea of reintroducing compulsory military service.

At its party congress at the beginning of May, the CDU adopted a proposal that young people should be obliged to serve for a certain period either in the army or the social sector. Manfred Weber, leader of the European People’s Party, made a similar statement recently, saying he would extend conscription to the whole continent.

Germany abolished conscription in 2011, and this is what would be gradually rebuilt.

The former compulsory military service would be reintroduced as a year of community service, either in the Bundeswehr or a social institution. The initiative would also open up the possibility for women to enter the military. The German government would reintroduce conscription based on several scenarios, making it compulsory for all 18-year-olds.

The Swedish model is seen by many as an example, with all citizens in the Nordic country, both men and women, having to register and, at the same time, indicate their willingness to serve in the military. In Sweden, only a small proportion of those who are of age are actually conscripted into the army.

Germany is not the only country to revisit the idea of compulsory military service, with Denmark planning to introduce the recruitment of women in 2026.

Military service is compulsory in the following European countries: Cyprus, Greece, Austria, Lithuania, Latvia, Estonia, Finland, Sweden, Cyprus, Denmark and Sweden.

Latvia was the latest country to reintroduce the system, with all men aged between 18 and 27 having to re-enlist in 2023 for 11 months of compulsory service, just 16 years after its abolition, while military service is voluntary for women.

The Baltic State’s decision was influenced by the Russian-Ukrainian war.

Lithuania decided in 2015 to introduce compulsory military service, also in response to the geopolitical situation.

Finland has also just decided on compulsory military service, with periods of 165, 255, or 347 days.

From the age of 18, all men can be called up, and military service is compulsory until the age of 30, after which Finns are considered reservists. The Swedish example, already mentioned, is a curiosity in Europe, where women, in addition to men, can also enlist on the basis of their declaration.

In Greece, military service is compulsory between the ages of 19 and 45, usually for 9-12 months, the length depending on the type of force, and in Cyprus it is compulsory for those over 18. In Denmark, the military service is similar to the abolished Hungarian system, with 18-year-olds having to serve for 4-12 months, which can be replaced by community service.

Those who wish to continue their education after secondary school can postpone their compulsory military service until the age of 25.

In Austria, in a 2013 referendum, more than 59 percent of the population voted in favor of conscription, with all men having to serve for eight months, which can also be replaced by community service.

Read more here…

Tyler Durden
Tue, 05/28/2024 – 03:30

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Zelensky Signs $1BN Weapons Deal With Spain, Includes Patriot Missiles

Zelensky Signs $1BN Weapons Deal With Spain, Includes Patriot Missiles

Ukraine and Spain have inked a new military deal worth 1 billion euros ($1.08 billion), which will see the Spanish military transfer more military equipment to Kiev over the course of this year.

The commitment calls for greater supplies of modern military equipment which prioritizes “Ukraine’s key capacity needs” – especially safeguarding the country’s export routes.

El Pais newspaper listed that Spain has just pledged as part of the package a dozen U.S.-made Patriot anti-aircraft missiles and 19 second-hand German-made Leopard tanks.

Aftermath of Russian strikes on a busy market in Kharkiv, via Shutterstock.

Spain was among countries under pressure by EU leadership to essentially give up weapons it doesn’t need at this time for its own defenses, especially the Patriots.

However, the Patriot missiles are unlikely to include the full Patriot systems and batteries, according to El Pais, and thus this will be of limited advantage at a moment Kharkiv in the north, and Odessa in the south, are getting pummeled.

Spanish Prime Minister Pedro Sánchez said of the agreement with Ukraine, “It is more important than ever to redouble our support.” This comes after Zelensky and his top officials have complained that Western aid has been too slow to arrive.

This also comes the day after a deadly Russian strike on a market in Kharkiv city over the weekend, per the BBC:

At least 12 people have been killed and 43 others wounded after Russian forces hit a supermarket in the northern Ukrainian city of Kharkiv with two glide bombs, local officials say.

A large fire could be seen raging at the Epicentr K home improvement store on the northern outskirts of the city.

Ukrainian President Volodymyr Zelensky said over 200 people could have been inside the supermarket when it was attacked.

With each new strike, Zelensky’s lashing out at his Western backers grows louder…

“If Ukraine had sufficient air defense systems and modern combat aircraft, Russian strikes like this one would have been impossible,” Zelensky stated. “And that is why we appeal to all leaders, to all states: we need a significant enhancement of air defense and sufficient capabilities to destroy Russian terrorists.”

“This is a task that must be accomplished and can only be accomplished together with the world. Every day, we call on the world to provide us with air defense and to save our people,” Zelensky continued. And in a veiled attack which appears aimed at Washington, he concluded with: “Every unmade decision to support us results in the loss of our people.”

Tyler Durden
Tue, 05/28/2024 – 02:45

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