Consumer Tech News (Feb 3-Feb 7): Meta, Apple and AMD Updates

A federal appeals court in San Francisco displayed skepticism regarding Alphabet Inc’s efforts to overturn a jury verdict that favored Epic Games, the maker of Fortnite.

In another notable legal case, a federal judge has allowed parts of Elon Musk’s lawsuit against OpenAI to proceed to trial. This legal matter focuses on Musk’s attempts to challenge OpenAI’s shift towards a for-profit structure.

Earnings Results

Spotify Technology reported a fourth-quarter earnings figure of $1.88 per share, falling short of the analyst consensus estimate of $2.06. However, their sales reached $4.53 billion (4.24 billion euros), which surpassed the analysts’ prediction of $4.15 billion, marking a 16% year-on-year increase.

Take-Two Interactive Software, Inc. reported third-quarter revenue of $1.37 billion, slightly missing the analyst expectations of $1.39 billion. However, their adjusted earnings of 72 cents per share beat estimates of 57 cents per share.

Palantir Technologies Inc had a strong showing in its fourth quarter with revenue of $827.52 million, exceeding the consensus estimate of $775.91 million, and achieving adjusted earnings of 14 cents per share, beating analysts’ estimates of 11 cents per share.

Smartphones

Apple Inc. users have expressed their unhappiness regarding the limited selection of watch faces available on the Watch Series 10, despite the device containing advanced features.

Additionally, Apple is reportedly planning to launch five new products in March, which include the iPhone SE 4, M4 MacBook Air, and a new iPad Air.

Furthermore, Apple has raised the monthly subscription cost of its AppleCare+ service for all iPhone models in the U.S.

On the other hand, Samsung Electronics Co. has announced that its Galaxy S25 Ultra will be offered at a significantly lower price than Apple’s iPhone 16 Pro.

Technology & Online Retail

In the technology sector, LinkedIn, which is part of Microsoft Corporation, along with services like Indeed and Greenhouse, have rolled out new AI-driven tools aimed at assisting job seekers in estimating their chances of receiving responses from potential employers.

Nvidia Corp’s new GeForce RTX 5090 and 5080 graphics cards quickly sold out following their release. Enthusiasts still have the option to acquire these powerful GPUs via premium prebuilt gaming PCs.

Moreover, Microsoft has removed a workaround that allowed users to install Windows 11 on unsupported PCs.

In a move to bolster its AI capabilities, Microsoft has also recruited top talent from Google DeepMind, as part of an initiative spearheaded by Mustafa Suleyman to enhance its AI lab in Zurich.

Additionally, Meta Platforms Inc. announced that it will not comply with the European Union’s AI Code of Practice. This statement, made by Joel Kaplan, the new head of global affairs at Meta, has further escalated the company's ongoing issues with European regulators.

Alphabet CEO Sundar Pichai hinted at future monetization plans for Gemini AI, which might include a new advertising model.

Amazon.com, Inc. is set to launch a significant AI upgrade for its Alexa voice assistant during a press event in New York scheduled for February 26.

Artificial Intelligence (AI)

On the AI front, OpenAI introduced a new feature for ChatGPT named "deep research," which autonomously plans and executes multi-step data searches. This new capability allows users to input questions by using text, images, and various file formats such as PDFs and spreadsheets.

Moreover, OpenAI unveiled a comprehensive rebranding that features a fresh logo and typeface.

The organization is also considering a change in its open-source strategy due to increasing competition from Chinese companies like DeepSeek.

Additionally, Advanced Micro Devices Inc. CEO Lisa Su addressed the advancements made by DeepSeek in AI technology and their potential influence on the semiconductor market.

Sundar Pichai acknowledged the significant progress by China’s DeepSeek but stated that Google’s Gemini remains ahead in terms of efficiency, cost, and performance.

Aravind Srinivas, CEO of Perplexity AI, noted that many startup founders fail because they pursue trends instead of focusing on genuine problems they care about.

On another note, Palantir has advised its clients against utilizing AI models developed by Chinese startup DeepSeek.

The chief technology officer of Palantir, Shyam Sankar, warned of an “AI arms race” with China, urging the need for immediate action to maintain the lead as competition in artificial intelligence intensifies.

legal, technology, AI, earnings, smartphones