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Apple Reports Decline in Sales and Profit Amid iPhone Struggles in China

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Difficulties have been piling up for Apple. In recent months, it has been sued by the Justice Department, fined by European regulators and challenged by the resurgence of a Chinese smartphone competitor.

On Thursday, the company added to its list of problems, reporting that its business was in a slump.

Apple said sales fell 4 percent to $90.8 billion for the three months that ended in March. Revenue from iPhones, iPads and wearables like the Apple Watch declined from the same quarter last year, while sales of software and services rose. Profit fell 2 percent to $23.64 billion, Apple’s first quarterly decline in a year.

Apple’s struggles were most worrisome in China, the world’s second-largest smartphone market, where sales fell 8 percent. The iPhone’s popularity there has waned since Huawei, which the Trump administration restricted from working with U.S. technology firms, introduced a new smartphone with 5G abilities last year. Last quarter, Apple’s share of smartphones sold in China fell 4 percent, according to Counterpoint, a technology research firm.

Shares of Apple rose 6.5 percent because the results slightly exceeded Wall Street predictions for quarterly sales and profit and were better in China than feared. The company said that it would repurchase $110 billion of stock and that its sales were on track to increase in the current quarter.

The poor results stood in contrast to the strong performances of other big tech companies. Over the past two weeks, Amazon reported that its quarterly profits had tripled, Microsoft increased quarterly sales from cloud computing by a third and Alphabet, Google’s parent company, announced that it would pay its first dividend.

Those companies’ sales have accelerated in part because of their investments in generative artificial intelligence. The technology, which can write essays and software code, is one that Apple hasn’t yet incorporated into its products. Investors hope that will change in June when Apple holds its annual developers’ conference and reveals its newest software.

“This is a bellwether stock that is going through a volatile time,” said Scott Acheychek, the chief operating officer at REX Shares, a provider of exchanged-traded funds. “Apple needs a win to change this narrative, and if they can get a segment of A.I. across their devices, that could be it. The question is: What is their path forward?”

During a call with analysts, Tim Cook, Apple’s chief executive, sought to reassure investors that Apple believed in the promise of generative A.I. He said the company was making significant investments in the technology and would share news about its developments with customers soon.

“We have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software and services,” Mr. Cook said. He said the company would lean on its custom chips and seek to provide a solution that protected customers’ privacy.

Apple’s business continues to be carried by its success selling customers apps and services. Across its 2.2 billion devices in use around the world, the company has sold more than a billion subscriptions for everything from dating apps like Tinder to its own services like Apple Music. Sales of software and services rose 14 percent to $23.9 billion last quarter, it said.

But the App Store, which is one of the biggest pieces of the company’s service business, is being challenged by regulators worldwide. The store is the only way to distribute apps on iPhones, and Apple collects a 30 percent commission on every app sold.

On March 4, the European Commission fined Apple 1.8 billion euros ($1.95 billion) for thwarting competition by preventing music streaming rivals from offering users promotions and subscription upgrades. The commission is also investigating Apple for potential violations of a new competition law that requires the company to allow competing app stores and alternative payment systems.

Next week, a federal judge will hold a hearing to determine whether Apple is subverting a 2021 court order to allow alternative ways to pay for services in apps. Apple said developers could use other payment systems but would have to pay a 27 percent commission. Epic Games and other companies said the fee violated the court’s ruling.

Analysts don’t expect the regulatory challenges to hurt Apple’s business. But they have been a distraction from the company’s efforts to focus customer attention on its devices.

In January, Apple began selling an augmented-reality headset, the Vision Pro. The device, which costs $3,500, was a small contributor to the company’s sales in the period, analysts said. It isn’t expected to be purchased in large quantities for at least four years.



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Why TikTok Users Are Blocking Celebrities

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As protests over the war in Gaza unfolded blocks away, last week’s Met Gala was largely devoid of political statements on the red carpet. That the organizers of fashion’s most powerful annual spectacle (one for which tickets cost $75,000 this year) achieved this proved surprising to many observers. Less than two weeks later, though, a fast-growing online protest movement is taking shape. At least, it is on TikTok, the social media platform that was a sponsor of the Met event.

Blockout 2024, also referred to as Operation Blockout or Celebrity Block Party, targets high-profile figures who participants feel are not using their profiles and platforms to speak out about the Israel-Hamas war and wider humanitarian crises. Here’s what has happened so far, what supporters hope to achieve and why it all began.

The criticism began on May 6, when Haley Kalil (@haleyybaylee on social media), an influencer who was a host on E! News before the event, posted a TikTok video of herself wearing a lavish 18th-century-style floral gown and headdress with audio from Sofia Coppola’s 2006 film “Marie Antoinette,” in which Kirsten Dunst proclaims, “Let them eat cake!”

The clip (for which Ms. Kalil later apologized and which was deleted) was viewed widely. Given the current global conflicts and humanitarian crises, critics described it as “tone deaf.” Then posts emerged comparing ostentatious costumes worn by celebrities on the Met red carpet to scenes from “The Hunger Games,” in which affluent citizens in opulent outfits wine and dine while watching the suffering of the impoverished districts for sport.

Images of Zendaya, a Met Gala co-chair, spliced with photographs of Palestinian children, incited the online masses. A rallying cry soon came from @ladyfromtheoutside, a TikTok creator who found inspiration in Ms. Kalil’s parroting of Marie Antoinette.

“It’s time for the people to conduct what I want to call a digital guillotine — a ‘digitine,’ if you will,” she said in a May 8 video post with two million views. “It’s time to block all the celebrities, influencers and wealthy socialites who are not using their resources to help those in dire need. We gave them their platforms. It’s time to take it back, take our views away, our likes, our comments, our money.”

“Block lists” of celebrities thought to be deserving of being blocked were published and widely shared online.

The movement is made up of pro-Palestinian supporters who have been assessing the actions and words of A-listers in order to decide if they have adequately responded to the conflict. If they have said nothing or not enough, the movement calls for those supporting Gaza to block that celebrity on social media. What constitutes sufficient action by the famous person — be it calls for a cease-fire, donations to aid charities or statements — appears unclear and can vary from celebrity to celebrity.

“Blockout” supporters argue that blocking is important because brands look at data on the followers and engagement of influencers and celebrities on social media before choosing whether to work with them to promote a product. Blocking someone on social media means you no longer see any posts from the person’s accounts, and it gives the blocker more control over who has access to their own updates and personal information. It can have more impact than unfollowing a celebrity account because many product deals thrive on targeted ads and views that can accumulate even if a user simply sees a post, without liking or sharing it.

If enough people block a content creator, it could reduce the creator’s ability to make money. Also, adherents of this thinking say, why follow someone whose values don’t align with yours?

Attendees with huge followings, like Zendaya, Kim Kardashian and Kylie Jenner, have been at the top of the chopping blocks. But so have celebrities who didn’t attend the gala this year, including Justin Bieber, Taylor Swift and Selena Gomez.

Vogue, which according to Puck News published 570 Met Gala stories on its platforms and recorded more than a billion video views of content from the night, has also been targeted because of its ties to the event.

“The Met Gala is by far and away Vogue’s biggest cash cow,” Elaina Bell, a former Vogue employee, said in a TikTok post with 850,000 views. She explained that the event sold sponsorships “based on the data of past events,” adding, “How the Met Gala is seen is so important to the bottom line of Vogue specifically but also to Condé Nast.”

It certainly raised some eyebrows. The dress code was “The Garden of Time,” inspired by the J.G. Ballard short story of the same name. It’s an allegorical tale about an aristocratic couple isolated in their estate of fading beauty harassed by an enormous crowd preparing to overrun and destroy the space. Rather on the nose.

Yes. Some posts say the blockout is a negative example of “cancel culture.” Others suggest that, like other social media-led movements, it is digital posturing that generates little meaningful change.

Some argue that celebrities do not have a duty (or the awareness) to speak out on complicated geopolitical issues, and they question why it matters what famous people think about those issues, anyway. Others feel the movement has blurred parameters, given that some A-listers, like Jennifer Lopez and Billie Eilish, have previously shown support for a cease-fire in Gaza but are being punished for not speaking up now.

Several stars on the widely circulated block lists, including Lizzo and the influencer Chris Olsen, posted their first public videos asking followers to donate in support of aid organizations serving Palestinians. Blockout supporters have also worked to “boost” celebrities who have recently spoken about the conflict, like Macklemore, Dua Lipa and The Weeknd.

According to metrics from the analytics company Social Blade, many names on block lists have lost tens or hundreds of thousand of followers per day since the “digitine” began. But murky claims that stars like Kim Kardashian have lost millions of followers are unsubstantiated.

Will more A-listers start speaking out on the red carpet as a result of the lists? It is too soon to tell. But for frequent users of TikTok, the brand aura of the Met Gala is being profoundly altered. And while social-media-led boycotts are by no means unprecedented, this latest movement is a clear example of the growing power of creators to redistribute or even weaponize ​platforms that are cornerstones of a modern celebrity-centric — and capitalist — system.





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Grand Theft Auto maker firms up GTA 6 release date

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The latest instalment of the hugely popular series will be released in autumn 2025, its publisher says.



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OpenAI’s Flirty New Assistant, Google Guts the Web and We Play HatGPT



This week, OpenAI unveiled GPT-4o, its newest A.I. model. It has an uncannily emotive voice that everybody is talking about. Then, we break down the biggest announcements from Google IO, including the launch of A.I. overviews, a major change to search that threatens the way the entire web functions. And finally, Kevin and Casey discuss the weirdest headlines from the week in another round of HatGPT.

Additional Reading:

“Hard Fork” is hosted by Kevin Roose and Casey Newton and produced by Whitney Jones and Rachel Cohn. The show is edited by Jen Poyant. Engineering by Isaac Jones and original music by Dan Powell, Elisheba Ittoop and Rowan Niemisto. Fact-checking by Caitlin Love.

Special thanks to Paula Szuchman, Pui-Wing Tam, Nell Gallogly, Kate LoPresti and Jeffrey Miranda.



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