Money

AT&T fined $100 million by FCC over unlimited data throttling

Cody Lee ∙ Updated April 30, 2018

The US Federal Communications Commission announced plans on Wednesday to fine AT&T $100 million for unsuitable throttling practices. The Commission issued a press release on its website this morning proclaiming the decision, charging the carrier with violating the '2010 Open Internet Transparency Rule.'

The move comes as the result of an in-depth investigation, where the FCC found that AT&T—the second largest wireless provider in the US—had not adequately informed its customers with unlimited data plans that it would be dramatically slowing down their Internet access once they crossed a particular threshold.

Apple looking to change 70/30 iTunes revenue split for media services

Cody Lee ∙ Updated April 18, 2018

Apple is planning a departure from the long-standing 70/30 iTunes pricing arrangement it has with digital media companies, reports the Financial Times. According to sources familiar with the matter, Apple is discussing new commercial terms with a number of players in the video, music and news subscription space.

The split, which doles out 70% of app and media sales to content owners/creators and 30% to Apple for hosting and distribution, has been around since the iTunes Store first launched in 2003. Apple hopes the change can improve its relationships with media firms, and reassure regulators that it's not abusing its power.

Verizon and Sprint to pay $158 million in bill cramming settlement

Cody Lee ∙ May 12, 2015

The FCC announced on Tuesday that Verizon and Sprint have agreed to pay $158 million to settle their bill cramming investigations with the Commission. Verizon Wireless will pay $90 million and Sprint Corporation will pay $68 million, and much of that will go to consumer refunds.

"For too long, consumers have been charged on their phone bills for things they did not buy," said the oft-outspoken FCC Chairman Tom Wheeler. “We call these fraudulent charges ‘cramming,’ and with today’s agreements we are calling them history for Verizon and Sprint customers.”

Apple announces 7-part bond sale to finance its capital return program expansion

Christian Zibreg ∙ May 6, 2015

During a conference call discussing its fiscal 2015 second-quarter results, Tim Cook & Co. also announced expanding their already massive capital return program to a whooping $200 billion through March of 2017 to “reflect strong confidence in what lies ahead for Apple.”

A filing with the United States Securities and Exchange Commission posted today on Apple's Investor website casts more light on the initiative, confirming the company will fund this expansion through a new seven-part bond to raise the funds.

Apple’s Angela Ahrendts was highest-paid female executive in the US last year

Cody Lee ∙ Updated April 18, 2018

Angela Ahrendts, Apple’s recently-hired senior vice president of retail and online stores, was the highest-paid female executive in the United States last year. According to data compiled by Bloomberg, Ahrendts was awarded $82.6 million in 2014, including a sign-on bonus and a make-whole grant for money she left on the table at Burberry.

Coming in second on the list was Oracle’s Safra Catz, who raked in $71.2 million in fiscal 2014 for her role as chief financial officer and co-CEO. Rounding out the top 3 highest paid female executives was Yahoo!’s Marissa Mayer who, at 39-years-old, was the highest-paid female chief executive last year, with a salary of $59.1 million.

38mm Apple Watch Sport component costs estimated to begin at $81.20

Christian Zibreg ∙ April 30, 2015

Based on the initial Apple Watch teardown analysis conducted by hardware experts at iFixit, Chipworks and ABI, research firm IHS Technology has now estimated the cost of components — so-called bill of material — that go into building each 38mm aluminum Apple Watch Sport at $81.20.

The figure excludes other significant costs associated with assembly, packaging, delivery, logistics, overhead, marketing, sales, licensing, advertising and other related expenses.

For clarity, Apple CEO Tim Cook said on an earnings call earlier this week that component cost breakdowns around Apple products are inaccurate and “much different than the reality.”

EU probe of Irish tax policy could have ‘material’ impact on Apple

Cody Lee ∙ Updated April 30, 2018

The European Commission's investigation into Ireland's tax deals for multinational corporations could have a "material" impact on Apple, the company said in a 10Q filing to the S&E Commissions this week. If it's determined that Dublin's tax policies represented unfair state aid, the Cupertino firm could suffer significant losses.

Samsung’s Q1 profits drop 39%, but company sees redemption in Galaxy S6 line

Sébastien Page ∙ April 29, 2015

Samsung reported its financial results for Q1 yesterday, and the numbers aren't great. The company reported net profits of 4.63 trillion won (about $4.35 billion), representing a 39% drop from the year ago quarter.

15 interesting points from Apple’s Q2 2015 earnings call

Cody Lee ∙ Updated April 30, 2018

Apple announced its financial results for its fiscal second quarter of 2015 this afternoon, and the numbers are impressive. The company sold 61.2 million iPhones and earned $58 billion in revenue, breaking March quarter records and beating Wall Street expectations.

We just finished up the conference call, where Tim Cook and other executives team discussed Apple’s performance over the three-month period, and offered up some insights into its future. And as usual, we’ve rounded up the 15 most interesting points from the call below.

Apple’s Q2 2015 earnings: 61.2M iPhones, 12.62M iPads, $58.01B revenue

Cody Lee ∙ Updated June 11, 2018

Apple has posted its [fiscal] second quarter earnings report for 2015 this afternoon, and they are impressive. The Cupertino company beat Wall Street estimates, recording $58.01 billion in revenue on the back of strong iPhone sales.

More than 61 million iPhones were purchased during the usually-slow, post-holiday second quarter. That's over 4 million above analyst estimates, and it looks like the handset did particularly well in China—up 72% year-over-year.

Apple preparing initial batch of Apple Watches for shipment

Cody Lee ∙ Updated April 30, 2018

Apple on Monday began notifying pre-order customers that it is preparing their Apple Watch orders for shipment. Multiple members of the iDB team saw the status of their Watch orders change from 'Processing Items' to 'Preparing for Shipment' this afternoon.

Apple also began charging customer credit cards for their orders on Monday, something that it typically doesn't do for new products until they are ready to be shipped. Combined, these signs bode well for Apple's ability to get Watches out to customers this week.

LAUSD asking Apple for multimillion-dollar refund for failed iPad program

Cody Lee ∙ Updated April 30, 2018

The Los Angeles Unified School District (LAUSD) told Apple on Wednesday that it will not spend another dollar on the Pearson software installed on its iPads, reports local public radio station KPCC. Additionally, the school district is seeking a multimillion-dollar refund from the Cupertino giant for its failed technology initiative to put a tablet in the hands of each of its 650,000 students.