Apple Struggles to Capitalize on Smartphone Rebound, iPhone Shipments Up Only 0.4%

IDC

In 2024, global smartphone sales grew by 6.2%, but Apple’s iPhone shipments rose just 0.4%, reflecting its struggle to benefit from the rebound, according to market tracker IDC. While Apple remains the profit leader with iPhones priced over $1,000, its rivals, especially in China, capitalized on demand for more affordable devices.

Despite the buzz around AI features, they failed to drive significant upgrades. IDC forecasts slow, low-single-digit growth for the smartphone market in 2025, with factors like market saturation and longer upgrade cycles contributing to the stagnation.

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FCC Approves SpaceX’s Starlink to Provide Mobile Satellite Coverage in Rural Areas

FCC

The U.S. Federal Communications Commission (FCC) has approved SpaceX’s Starlink to provide satellite coverage directly to mobile devices in rural and remote areas, in partnership with T-Mobile US.

The approval allows SpaceX to use its second-generation satellites for low-latency service. The FCC granted partial approval, noting the need for ongoing monitoring of SpaceX’s operations, while delaying decisions on certain aspects of SpaceX’s broader application, such as power output and additional satellite deployment.

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Global Satellite Market Expands to $41B, Driven by LEO Satellites and Government Support

Research & Markets

The global satellite telecommunications sector has seen strong growth, reaching a market value of approximately $41.21 billion in 2023, with a compound annual growth rate (CAGR) of 3.95% from 2018 to 2023, According to a Research and marketing study.

The market is projected to grow at a faster rate of 7.90%, reaching $60.26 billion by 2028 and $87.06 billion by 2033, driven by the increasing demand for low earth orbit satellites, satellite communications in defense, and strong government support. However, challenges such as labor shortages, regulatory hurdles, and concerns about satellite congestion and debris could impact growth.

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Global Internet Use Grows, Yet One-Third Remains Offline, UN Finds

UN

The United Nations reported that global internet use is gradually rising, with 5.5 billion people online as of 2023, an increase of 227 million from the previous year.

However, the UN’s International Telecommunication Union (ITU) highlighted that one-third of the global population remains offline, especially in poorer regions. The digital divide is stark, with 93% of people in high-income countries online compared to just 27% in low-income nations. While progress is being made, especially in reducing the gender gap, the urban-rural divide persists. The ITU calls for intensified efforts to ensure universal connectivity.

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Australia Approves Law to Ban Under-16s from Social Media, Tech Giants Push Back

PM Australia

Australia’s new law banning under-16s from social media platforms like Facebook and TikTok had its final approval yesterday. It could severely disrupt the business models of major tech companies, depriving them of a key user group—teenagers coveted by advertisers, critics say. Platforms like Meta oppose the law, arguing it was rushed and doesn’t address the root causes of harmful content. While the law enjoys public support, exemptions for platforms like YouTube and WhatsApp have drawn criticism. Experts warn the ban may fail to tackle harmful algorithms and the production of negative content, despite growing concerns about social media’s impact on children’s mental health.

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Germany Invests €2B to Strengthen Semiconductor Industry Amid Setbacks

Bloomberg

Germany will invest up to €2 billion to boost its semiconductor industry, focusing on cutting-edge production and supporting 10 to 15 projects under the EU Chips Act, Bloomberg reported. The move follows setbacks like Intel’s postponed €30 billion factory in Magdeburg and Wolfspeed’s canceled project. The funding aims to strengthen Europe’s chip ecosystem and meet the EU’s goal of doubling global market share to 20% by 2030. Final subsidies hinge on the next government, set to take office in February.

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67% of Businesses Plan to Boost AI Investment, but Scaling Challenges Persist

Gartner

Generative AI continues to gain momentum, with a Financial Times report revealing that 67% of businesses plan to increase their AI investments. However, only 30% of AI pilot projects successfully scale, mainly due to issues with data quality and workforce readiness. Meanwhile, Gartner warns that by 2027, 80% of software engineers will need reskilling to adapt to AI’s growing role in development. The demand for stronger AI governance was also a hot topic at the AI for Business Conference in Silicon Valley, as experts call for transparency and ethical oversight.

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AI Reduces Fraud and Wait Times at Commonwealth Bank, Boosts Efficiency

Commbank

Commonwealth Bank of Australia reported that generative AI tools have significantly improved its operations, cutting customer losses from scams by half and reducing fraud by 30%. The technology has also sped up mortgage pre-approvals, reducing the process to as little as 10 minutes. Additionally, an AI messaging app reduced call center wait times by 40%. AI is expected to soon address 10% of complex customer inquiries, and the bank is working on over 50 AI use cases to enhance efficiency and profitability. The AI also helps pre-populate documents, speeding up loan approvals and small business reviews.

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xAI’s Growth Boosts Twitter Investors Amid Platform Struggles

FT

According to an analysys by The Financial Times, Elon Musk’s investors in Twitter (X) stand to benefit from the rise in value of his AI company, xAI, which is now valued at $50bn. Musk allocated 25% of xAI’s shares to Twitter backers, helping them recover losses from Twitter’s declining value. Key investors include Fidelity, Larry Ellison, Prince Alwaleed, Jack Dorsey, and venture firms like Sequoia and Andreessen Horowitz. xAI’s growth is boosting Twitter investors, despite the platform’s struggles. This interconnected structure creates financial benefits but also potential conflicts of interest for investors, the FT says.

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Google Overhauls Search to Comply with EU’s Digital Markets Act, Boosting Comparison Sites

Google

To comply with the EU’s Digital Markets Act, Google is making changes to its search results, increasing visibility for comparison sites in areas like flights and hotels. While this helped large platforms, smaller businesses have seen traffic declines. To address this, Google plans to allow users to choose between comparison sites and supplier websites. It will also introduce new formats and ads for comparison sites. Additionally, Google will test removing a hotel mapping feature in some countries to assess its impact on user experience and traffic.

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Vestager’s Tech Fight: EU’s Antitrust Chief Departs After Reshaping Global Regulation

NYT

Margrethe Vestager, the EU’s antitrust chief, is stepping down after a decade of challenging tech giants like Google and Apple. Despite criticism, her efforts made Europe a leader in tech regulation, influencing global actions. While proud of her work, in an interview with the New York Times she acknowledged slow progress and called for stronger reforms.

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