Apple preps new phone, telecom employment holds steady … 5 things to know today
1. Apple will reportedly launch a new 4-inch iPhone on March 15, the iPhone 5se. The company usually launches its new flagship phones in the fall, but is apparently planning a midyear product release to refresh the iPhone 5 for customers who are not interested in iPhone 6 models because of the larger screen sizes.
Apple is projecting a dip in iPhone sales during the current quarter, and one way to reverse that in the future is by encouraging existing customers to upgrade. The company has cited the number of iPhone users that have yet to upgrade as evidence of pent-up demand for new models, but that demand will not translate into sales unless Apple delivers phones that make an upgrade attractive. It’s possible many iPhone users prefer smaller phones, and apparently Apple is ready to find out for sure.
The iPhone 5se may resemble the 5s on the outside, but inside it will pack some of the chipsets from the more recent iPhones, including those that support voice over LTE and voice over Wi-Fi, as well as an NFC chip to support Apple Pay. The phone is also expected to have a curved glass display.
Smartphone display screens are among the most frequently damaged parts of a device, and Apple is expected to upgrade its trade-in program for phones with damaged screens in the near future. That report comes from 9-to-5 Mac, the same source that is predicting the 5se launch. Apple is also expected to start training retail store employees to install screen protectors.
2. One of the biggest manufacturers of iPhone screens is about to change ownership. Japan’s Sharp is set to become part of Foxconn by the end of this month, according to Foxconn executives. Foxconn is the commonly used name of Hon Hai Precision Industry, Apple’s primary manufacturer for the iPhone.
Foxconn is expected to pay roughly $5.6 billion for Sharp, which has been struggling for years as competitors took market share in both the TV business and the smartphone display business. Sharp had a previous offer from a firm backed by the Japanese government, but has chosen to work instead with China’s Foxconn.
3. LinkedOut is the nickname some traders give LinkedIn this morning as the company’s shares plummeted on the heels of a weak earnings outlook issued after the stock market close on Thursday. LinkedIn expects about $3.6 billion in revenue for its current fiscal year, about 7% less than analysts were expecting. LinkedIn gets most of its revenue from selling premium services to recruiters and headhunters.
4. Telecom employment held steady during January, with roughly 800,000 Americans employed in the sector, according to the Bureau of Labor Statistics. Wireless infrastructure service providers may be keeping a closer eye on the construction sector, which added 18,000 jobs last month, with specialty trade contractors adding 10,000 jobs. Overall, the nation’s unemployment rate fell to 4.9%, its lowest level since 2008.
5. Nokia saw its share price tumble this week after it settled a patent dispute with Samsung. Nokia walked away a winner, but the settlement was significantly less than investors had expected. In its most recent quarterly earnings report, Nokia said its patent licensing unit generated about one-fifth of its operating profit.
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