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OpenAI bets on families as ChatGPT goes deeper into households

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More than three years after ChatGPT’s launch brought generative AI into the mainstream, OpenAI is broadening its focus beyond individual users to families.

OpenAI is hiring a dedicated product manager in San Francisco to build experiences for families, caregivers, and older adults across its products. The role calls for experience building products for parents and families, and other trust-sensitive consumer experiences, according to the job posting.

The hiring comes as ChatGPT’s audience continues to broaden beyond younger users. According to Sensor Tower estimates shared exclusively with TechCrunch, the share of ChatGPT users aged 35 and older globally rose to 31% in Q2 from 26% a year earlier, while the share of users aged 18 to 24 fell to 29% from 34%. In the U.S., nearly one in four smartphone users who are parents used ChatGPT during the quarter, up from 16% a year earlier, the firm estimates.

OpenAI did not respond to requests for comment about the job posting.

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A dedicated product role focused on families signals that OpenAI is beginning to think about its products less as tools for individual productivity and more as technology designed for households, said Ben Bajarin, chief executive of technology consultancy Creative Strategies.

“This is similar to the path Google, Apple, and Meta eventually followed as their platforms became embedded in everyday life, but AI raises the stakes because the assistant is not just mediating content or devices,” he told TechCrunch.

That shift also brings new trust and safety challenges. Stephen Balkam, chief executive of the Family Online Safety Institute, said the hiring reflects both the maturation of OpenAI and a growing recognition that AI products used by children and teenagers require different safeguards than those designed for adults.

“I see this as safety by redesign,” Balkam told TechCrunch. “You take the initial product or service that was released… not really with kids in mind… so this is a much-needed reaction and response.”

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The comments come as new research published this week by the Family Online Safety Institute found that parents are underestimating how often their children use generative AI. While 27% of U.S. parents said their child had used generative AI in the past week, 38% of children reported doing so themselves, according to the survey of more than 4,000 families in the United States and Australia.

Balkam told TechCrunch that AI companies should build products differently for younger users, with stronger content controls, age-appropriate experiences, parental oversight, and reminders to inform users that they are interacting with an AI — and not a human.

Image Credits:Jagmeet Singh / TechCrunch

The hiring also comes amid growing scrutiny of how AI companies protect younger users. OpenAI has faced multiple lawsuits from parents alleging that ChatGPT contributed to harm suffered by their children, including in cases involving suicide.

In response to some of those concerns, OpenAI has introduced a series of safety measures over the past year, including parental controls for teen accounts, routing sensitive conversations to reasoning models designed to better handle signs of distress, and, more recently, an optional “Trusted Contact” feature that can alert a family member or caregiver in cases of potential self-harm.

AI companies, Balkam said, have an opportunity to avoid the mistakes made by social media platforms, which for years treated children much like adults before adding stronger safeguards amid mounting public pressure and regulatory scrutiny.

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The hiring also aligns with OpenAI’s broader efforts around families. In a recent workshop organized with the San Antonio Spurs Community Impact organization and the Positive Coaching Alliance, the company said it aimed to explore AI’s role in learning, coaching, and youth engagement.

That said, the demographic shift is not unique to ChatGPT, though OpenAI’s audience is changing in some distinct ways.

Sensor Tower estimates that users aged 25 to 34 account for 40% of the global app audiences for Anthropic’s Claude and Google’s Gemini, matching ChatGPT, compared with 33% for Microsoft’s Copilot. Copilot, however, skews older, with 20% of its users aged 45 and above, compared with 14% for Claude, 12% for Gemini, and 11% for ChatGPT.

While ChatGPT remains relatively underpenetrated among older users, it is adding them faster than its rivals. The share of users aged 45 and above rose three percentage points year-over-year in the second quarter, compared with a two-point increase for Copilot and declines for Claude and Gemini, according to Sensor Tower.

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Among U.S. smartphone users who are parents, Gemini had the widest reach at 32% in Q2, followed by ChatGPT at 24%, Claude at 4%, and Copilot at 2%.

For Bajarin, OpenAI’s decision to hire a product manager focused on families signals where consumer AI is headed. As AI becomes a technology shared across generations, he expects companies to roll out family plans, child and teen profiles, caregiver tools, shared household memory, AI tutoring, and stronger safety controls.

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The AI job apocalypse is a myth. We need more human talent than ever before

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London Tech Week’s focus on AI – from a £12 million investment in AI for SMEs to AI bootcamps for graduates and more – has reflected the pressure to compete in an AI-era.

As this digital revolution progresses, the job economy is changing, but the mantra that AI is taking our jobs is simply not correct and potentially fueled by an undercurrent of classicism.

Vincent Huguet

CEO and co-founder of Malt.

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This Luddite Puppet Hopes You’re Not Reading This on Your Smartphone

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Keep yourself open to, “OK, I’m gonna look around. Is there a Luddite poster here? I’m at my local bookstore. OK, is there some information here?” It’s this idea of social infrastructure, switching people over from the idea of, “OK, I’ll look at an Instagram page, and here’s all the events” to the idea of, “I actually have to leave my house.” Be on the lookout. We’ll be out here. Tompkins Square Park, probably, other parks, privately owned public spaces. We have events all over this city. It’s amazing. Knicks in five. I love New York.

Gowanus, we like to play a little game on each show.

I love games.

We’re very proud of it. It’s called Control, Alt, Delete. So I wanna know what piece of tech you would love to control, what piece you would alter or change, and what you would delete, or vanquish from the earth.

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Wow.

Are you ready?

Control, Alt, Delete. OK, great.

Let’s start with control.

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This is so funny that you’re asking me this. I would say the servers for the internet.

The internet was billed as something that was, OK, we are going to have a free exchange of knowledge across the world. It’s going to help diversity and globalization and all this stuff, and then, boom. Military technology, right?

We saw this with Ed Snowden, essentially.

OK. And now alt.

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I’m trying to think about which technologies do I feel have a real positive impact, but have a negative sort of profit incentive.

Let me give this one. I would alter the way that social media platforms have a centralized system instead of a federated system. I think that’s pretty solid, and this was almost in the creation of Twitter, they were about to do this. And then Jack Dorsey was like, “No, we should have it be more centralized.”

And finally, delete.

I can’t wait. This is my favorite one.

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What would you delete?

AI. AI data centers. Done. Done. Immediately done. Boom. Gone. I mean, come on, guys.

Come on. Especially when they bill it as, “OK, we’re gonna make an AI to fix all of our climate catastrophe, all of our income inequality, but first, we have to absolutely drain the natural resources of the Earth.” I mean, it’s just ridiculous. It just makes me so frustrated. I think the data center is honestly one of the worst materializations of this Big Tech oligarch world that we live in.

Where like the whim of Mark Zuckerberg wanting a Meta Hyperion data center in Louisiana is legitimately going to use multiple times the amount of energy that New Orleans uses. We can’t sustain that as a planet, truly. It doesn’t matter how interesting the technology is or what it could do. These are resources that we need now for life to continue. We need fresh water. We need land to grow food. We need ecosystems where birds and bees and wildlife can coexist, and I’m not very interested in trading that for a chatbot, even if the chatbot tells me it loves me and we can kiss through the phone.

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You can always listen to this week’s podcast through the audio player on this page, but if you want to subscribe for free to get every episode, here’s how:

If you’re on an iPhone or iPad, open the app called Podcasts, or just tap this link. You can also download an app like Overcast or Pocket Casts and search for “uncanny valley.” We’re on Spotify too.

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First iOS 27, macOS 27 public betas are out

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Apple has finally introduced its first public betas of iOS 27, iPadOS 27, macOS 27 Golden Gate, watchOS 27, visionOS 27, and tvOS 27.

Since the introduction of the 27-generation operating systems at WWDC in early June, Apple has been testing developer beta builds. A few rounds later, and it has started to do the same with the public beta.

The first public builds are:

  • iOS 27 public beta 1 is 24A5380h
  • iPadOS 27 public beta 1 is 24A5380l
  • macOS 27 public beta 1 is macOS 27.0 beta 3 v.2 is 26A5378n
  • tvOS 27 public beta 1 is 24J5315i
  • visionOS 27 public beta 1 is 24M5316k
  • watchOS 27 public beta 1 is 23U5062b

At your own risk

A public beta differs from a developer beta in that the software has been tested enough to be less of a risk to end users. While a developer beta has the potential to cause problems for testers, the public variant is from a later stage with the bigger potential issues out of the way.

While the public beta is generally safer to use than a developer version, it’s not entirely safe. There’s still the risk of data loss and other issues, just that the chance is smaller.

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AppleInsider and Apple strongly advise against users installing test operating systems or beta software onto primary or “mission-critical” hardware. That warning stands for both developer betas and public beta builds.

Just like the developer counterparts, public beta users should really install the operating systems onto secondary, non-essential hardware. Also, they should maintain sufficient backups of their critical data at all times.

We don’t say this for fun. Every year, someone on our editorial team ends up suffering because of a problem with the developer betas. We have also heard countless stories of people going through the same issues, in varying degrees of magnitude.

Don’t be like us. If you must try out the new operating systems, do it on the public betas instead of the developer ones.

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Find any changes in the new builds? Reach out to us on X at @AppleInsider or @Andrew_OSU, or send Andrew an email at [email protected].

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Economists and tech leaders sign statement warning of AI threats

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The open statement says that leaders in this space must act now to understand the economics of transformative AI and steer the tech in the right direction.

Almost 200 economists and technology leaders have signed a statement warning of the risks posed by AI if it is to be left ‘unchecked’ in the coming years. Many of the world’s experts are concerned that AI is reaching a stage where it is too powerful and needs to be guided in a more human-focused direction.

The statement, which is titled “We Must Act Now,” was organised by economists Erik Brynjolfsson, Ajay Agrawal, Anton Korinek and Tom Cunningham and was signed by a range of people close to the issue.

This includes several Nobel laureates, the chief economists of Open AI and Anthropic, Jack Clark, a co-founder of Anthropic, Eric Schmidt, the former CEO of Google and experts from Cambridge University, Stanford, Harvard and Oxford, among others. 

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The statement said, “AI may become radically more powerful over the next 10 years. This could drive an unprecedented transformation of our economy, larger than the Industrial Revolution, but unfolding over a vastly shorter time frame. It could bring risks, including large-scale job displacement, as well as opportunities such as major gains in living standards.

“Economists, policymakers and technology leaders must act now to understand the economics of transformative AI and to build the incentives, guardrails, and institutions needed to steer AI in a direction that complements humans and benefits society.”

The statement is reflective of a landscape in which more and more people are becoming concerned about AI’s potential to eliminate employment, impact the economy and affect how we live our lives. 

In early July, Microsoft announced it is laying off 4,800 people, including 3,200 from its gaming division Xbox, as the company aims to cut costs and flatten its organisational structure in response to AI and a changing landscape.

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In June, new research from Boston Consulting Group (BCG), found that for many organisations, AI is fundamentally reshaping the nature of work, leadership and how employees experience the workplace. While there were positive elements to the research, many contributors also found an increase in ‘cognitive load’, creating a paradox’ where AI is making work better and harder simultaneously. 

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.

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Britain’s AI push is exposing a memory crisis inside business

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Somewhere right now, a customer is repeating themselves. They are explaining their problem for the third time, to the third person, because the organization on the other side has no shared memory of the previous two conversations. It is an infrastructure problem that AI is making harder to ignore.

Ahmed Bashir

It is also becoming impossible for policymakers to ignore. Just in April, the Mayor of London launched a new AI and Jobs Taskforce to examine how AI is changing work across the capital, signaling that the conversation has moved well beyond investment announcements and into the harder question of what AI does inside organizations.

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General Magic was the Company Apple Spun Off That Later Built Its Future

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General Magic Apple Spinoff iPhone iPad 90s
Marc Porat sat with a red notebook in 1989, drawing what no one else could see. A little rectangular piece of glass with a touch screen, phone, fax, messages, video, games, ticket purchases, and apps delivered over the air. He named it the Pocket Crystal. It would feel like a piece of jewelry you carried every day, something with the comfort of a seashell and the pull of a crystal. At Apple, where he worked, the idea landed with John Sculley. Resources stayed scarce. So in May 1990 the project left Cupertino and became its own company. Bill Atkinson and Andy Hertzfeld, two of the original Macintosh wizards, signed on. General Magic was born.



They called the location after a line from Arthur C. Clarke. The idea is that any sufficiently advanced technology appears magical. You had a bunch of veteran Mac users and some hungry new developers crowded into Mountain View offices. Joanna Hoffman was in charge of marketing because she was one of the first people on board. Susan Kare developed the icons for the new operating system, and Megan Smith joined shortly thereafter. Meanwhile, a young whippersnapper named Tony Fadell walked in from the street. There were even rabbits bouncing around on the floors, as well as a parrot or two, presumably released by its owners when they went for the day. Some folks were even sleeping off while resting their heads on their desks. You could bet that at any minute, someone would start a water battle. However, the energy was fantastic. Everyone was confident they were onto something major, specifically the next item after the Mac.


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Magic Cap was the name of the operating system. When you first booted it up, you were in a virtual area that appeared to be a real office. There was your calendar in the corner, and your inbox was simply waiting for you. Walk down the virtual hallway and you’ll come across a variety of handy rooms, including a library, a game room, and even a downtown business center where you may purchase new software. Messages were decorated with stickers and animated characters, and those little faces evolved into the emojis we all know and love today. You could navigate with a stylus. Software modems handled connections without the need for additional hardware, and early versions of what we now know as USB connectors appeared. To keep things light, the hardware had to do significantly less work.


Telescript was the brainchild in charge of all the sophisticated elements. When you leave your smartphone, a digital “gentleman” will journey across networks and return with answers to your questions. Jim White and his team developed a language that enabled programs to move from one machine to another, just as humans go between cities. They discussed the “Telescript cloud” before anyone knew what it was. AT&T built PersonaLink on top of it because agents needed somewhere to go.

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Before you knew it, some of the biggest players were lining up to participate in the action. Sony, Motorola, Matsushita, Philips, AT&T, and later NTT, Toshiba, and France Telecom also joined in. Each provided money and appointed their top executives to a special council. Sony’s John Sculley and Norio Ohga were among the best performers. The Alliance swiftly became the industry’s largest collection of business players, prompting antitrust specialists to establish new rules for the meetings. In 1993, the New York Times named General Magic Silicon Valley’s most-watched startup of the year.

General Magic Apple Spinoff iPhone iPad 90s Sony Magic Link
Finally, after all of the excitement, the hardware was released in 1994. Sony shipped the Magic Link for a cool $800. The device looked like a grey brick with a stylus, a small monochrome screen, and a built-in modem that required a phone connector. Motorola followed up with the Envoy, which added a wireless radio to the equation. Both used Magic Cap. You could email, fax, or even page somebody if that was your preference. Keep your contacts and calendars up to date. Play some games and send some files over with IR, as the device was essentially a magic wand. However, nothing like existed previously. Of course, sales were small, with the majority of the units going to friends and relatives. Battery life was a joke, and performance was sluggish. Had no internet (yet) and no cell data worth noticing. To make matters worse, Apple had recently released the Newton the year before, which had likely stolen some of General Magic’s thunder.

General Magic Apple Spinoff iPhone iPad 90s Sony Magic Link
An IPO in February 1995 nonetheless managed to raise 96 million dollars. But that was only the beginning; the stock had more than doubled on the first day, and it appeared like cash was flowing in. The engineers were practically unstoppable, and new gadgets popped up left and right. Later that year, Portico was introduced as a voice service that anyone could access using any old phone. An 800 number would then read out your email, calendar, and messages in a polite, calming voice, almost as if you had your own personal assistant. By the time they reached a peak of 2.5 million users, they had already created MyTalk, which has earned a permanent home in the Smithsonian. However, the initial notion of such ‘dream devices’ never really took off. AT&T chose to discontinue PersonaLink in 1996. By 1997, the hardware partners had essentially stopped producing. The stock fell precipitously, prompting layoffs. It all came to an end in September 2002, when activities ceased, and by 2004, they had been totally liquidated. Paul Allen ended up purchasing the majority of the patents.

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This Origami-Inspired Coffee Maker Is the Best Camping Brewer. Period.

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On more than one occasion, I’ve embarrassed myself by brewing coffee outdoors and spilling a freshly made cup onto an unsteady camping table. Not to mention, light packers would scoff at the weight of my coffee gear — a necessary sacrifice to avoid instant coffee. Savoring high-quality joe in the open air feels special, though, hence why I bring a coffee-making setup every time.

Finally, I’ve found the easiest option: The MiiR Pourigami. Put together, the pyramid-shaped dripper fits atop any trusty travel mug. Taken apart, this Miir Pourigami resembles a card holder, slim enough to fit into my pants pocket. It functions like other pour-over setups, meaning I can still dial in tasting notes. If you’re like me and think about coffee no matter the circumstances, this nifty setup lets you play barista in any environment.

A look at the Miir Pourigami 

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hand holding folded pouragami coffee maker

Yup, that’s a coffee maker in my hand.

Nikita Ephanov/CNET

Right out of the box, the Pourigami looks sleek. Disassembled, the brewer consists of three thin stainless-steel trapezoids. I can’t imagine the pieces bending or chipping — crucial, as I’m prone to breaking camping equipment. Handily, the dripper stores flat, occupying a rectangular size smaller than 10 by 16 centimeters. Weighing just shy of 8 ounces, the brewer isn’t featherweight, but it offers great portability nevertheless. Contained in an unassuming synthetic case, the Pourigami seamlessly fits into any bag.

Honestly, I’m terrible at paper origami, but assembling this brewer into the pyramidal shape is a breeze. It only takes me about 20 seconds to slip the three indents into the respective slots — there’s no confusion to the construction. The completed dripper holds steady without a wobble and comes apart just as easily. 

Put together, the interior forms a triangular pyramid shape that can accommodate any #2 cone-shaped filters. I find that Miir’s own filters, available for purchase online function most reliably, creating steady streams without slipping. Not to mention, the brand’s paper-based filters are compostable, a small but satisfying environmental win. A compatible filter is easy to find, making the Miir Pourigami simple to set up and get to brewing.

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Brewing with the Pourigami

hot water being poured over beans in pouragami

The Pouragami functions much like other pour-over coffee devices. 

Miir

If you’ve used pour-over vessels like a V60, Chemex or a Kalita Wave, the Miir Pourigami is familiar territory. The dripper requires a hot water source, the aforementioned paper filter, and a cup or carafe to catch the coffee. A kitchen scale and thermometer help brew with utmost accuracy, but I’ve produced solid cups while eyeballing proportions outdoors.

It’s best to follow a brewing ratio to extract the most out of the brewer, especially when familiarizing yourself with its flow. The Miir brand suggests 21 grams for single-origin beans and 23 grams for blends, each extracted with 300 milliliters of water. Using water heated to 90 degrees Celsius, I’ve found these proportions reliable, as long as extraction is completed by the three-and-a-half-minute mark.

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chemex-coffee.png

The Pouragami functions similarly to a Chemex but with better portability.

Taylor Martin/CNET

Compared to my V60, the Miir Pourigami takes longer to drain, so a coarser grind helps keep water moving. As a result, the vessel is best suited for full-bodied cups of medium- and dark-roasted coffees. The grind quality is crucial: You’ll want a coarse yet uniform consistency. I’ve used both the portable MiiR Coffee Hand Grinder and the Baratza Encoreto great success; I would avoid utilizing a blade grinder for this setup, though. Away from home, I’ve asked coffee shops to grind beans — I request a consistency one click coarser than a V60. Pre-ground coffee is the most convenient way to brew on the move.

The Pourigami’s steep interior makes saturating coffee grounds easy – no need to carry a gooseneck kettle alongside. I’ve used jet-boil-powered camping kettles and even cooking pots to make excellent cups of coffee, making sure to use hot water that’s off the boil. As long as I’m timing the process, using the Miir Pourigami is undemanding.

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What does Pourigami filter coffee taste like?

pouragami coffee maker on top of mug

The coffee I brew turns out light-bodied, but rarely weak or watery. 

Nikita Ephanov/CNET

As with all pour-over coffee, the beans strongly influence the flavor. I’ve produced the best-tasting MiiR Pourigami cups using medium-roast blends — think grocery-store beans like Stumptown’s Holler Mountain Blend. Such bags respond well to the requisite coarser grind and are forgiving in outdoor scenarios. The Miir Pourigami translates gentle notes of acidity and sweetness, seldom leaning into burnt flavors. The coffee turns out light-bodied, similar to other filter setups, but I’ve never brewed a cup that tastes weak or watery. 

If there’s one downside to this dripper, it’s that the coffee occasionally turns out too acidic, a sign of under-extraction. For this reason, I avoid brewing delicate light roasts with the Pourigami — not that I’m packing fancy beans for camping anyway. A bold, balanced medium roast cup hits the spot after a night in a tent.

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Is the Pourigami worth it?

pouragami over cup shot from above

Coffee makers don’t get much simpler and more portable than the Pouragami.

Nikita Ephanov/CNET

At home, I’m not often assembling my Pourgami, instead settling on the trusty espresso machine or extracting delicate cups of V60. When I’m brewing outside of the house, though, the Pourigami is my top choice. In addition to camping, I’ll pack the brewer away in my suitcase for air travel, making the occasional cup on the go.

Before acquiring a model, I used to camp with a bulky plastic V60 dripper, which I inevitably fractured among camping equipment. The AeroPress certainly fares better in terms of durability, but it can be difficult to find a sturdy surface suitable for firm plunging. Compact and durable, the Miir Pourigami wins on logistical ease, making it easy to incorporate into a car-camping, backpacking, or even a bike-packing setup.

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Sold for $35, it’s a thoughtfully designed coffee gadget that justifies the price point. The inventive design isn’t a trade-off for coffee quality. I’m happy to use the Pourigami several days in a row – the steel material is a breeze to clean. Whether at home or on the move, the brewer doesn’t occupy much space, making it a reliable favorite.

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Smartphone shipments down 11pc after sustained chip shortage

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Memory shortage now a ‘full-blown demand issue’ for the smartphone market, says Counterpoint analyst.

The memory crunch has dragged down global smartphone shipments to the lowest second-quarter levels in 13 years.

Manufacturers producing cheaper gadgets saw their shares take the steepest drop after passing price hikes over to consumers. Analysts expect further price increases and a harsher squeeze for memory components.

“The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry. What started as a components issue last year is now a full-blown demand issue,” said Counterpoint senior analyst Shilpi Jain.

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According to Counterpoint research, smartphone shipments tumbled 11pc year-on-year this quarter globally, as memory suppliers prioritise DRAM and NAND for AI data centre needs over consumer electronics.

Entry-level and mid-tier devices faced repeated price hikes, forcing consumers to pivot to more expensive brands or pause device upgrades. Component shortages has rendered these cheaper devices “structurally unfeasible at previous price points”, Jain said. Smartphone prices are poised to jump by as much as 13pc this year.

According to the IDC, most Android vendors in China responded to the growing component costs by raising prices, which directly dampened consumers’ willingness to upgrade their devices.

Xiaomi, Oppo and Vivo, leading manufacturers for cheaper electronics, each saw their shipments decline in double digits this quarter. Though, the three of them together still captured more than 40pc of the global smartphone shipment this quarter.

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“Alongside the memory shortage, geopolitical tensions in the Middle East bumped up oil and shipping costs, further inflating smartphone prices,” said the Counterpoint analyst.

“This coincided with a broader macro squeeze, slower global growth, higher inflation and record-low consumer sentiment which hit price-sensitive buyers the hardest.”

Samsung remains the global lead, making extra gains this quarter to capture 24pc of the smartphone shipment share. The South Korean manufacturer held up well in India and the Middle East, supported by better product availability, fewer price hikes and aggressive summer promotions, Counterpoint found.

Apple, meanwhile, took the second position globally, capturing 20pc of the market – up from 17pc in the same quarter last year. The iPhone-maker was the only one to avoid smartphone price hikes during this quarter. However, analysts expect that to change in the near future.

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Apple also performed well in China, where it saw sales grow in double digits. Alongside Apple, Huawei was the only major Chinese manufacturer to see positive growth in smartphone shipments.

Overall, shipments in the country declined by around 4.3pc year-over-year, marking the fifth straight quarter of decline.

According to the IDC, Huawei and Apple kept prices steady while the rest of the Android producers in China raised them. Plus, Apple’s early signalling of upcoming price increases pulled in more customers purchasing the iPhone 17 series sooner than they might have otherwise, the report found.

“Huawei and Apple held their prices steady while competitors were raising theirs, and that gave hesitant buyers a reason to go ahead and purchase in a quarter when most of the market was giving them a reason to wait,” says Arthur Guo, a research analyst for client devices research at IDC China.

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Japan’s largest taxi operator Nihon Kotsu hit by cyberattack which forces systems to be shut down

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  • Japan’s largest taxi operator confirms July 11 malware attack forcing shutdowns of its IT systems and disrupted dispatch and reservation services
  • Nihon Kotsu isolated networks, notified authorities, and brought in third‑party experts; customers were advised to use alternative taxi apps during the outage
  • No data leaks have been confirmed, but Nihon Kotsu warned it may disclose and notify affected parties if evidence of personal information exposure emerges

Japan’s largest taxi operator, Nihon Kotsu, hasconfirmed suffering a cyberattack which forced it to temporarily shut down parts of its IT infrastructure.

In a statement published on the company’s Japanese website, Nihon Kotsu said the attack took place in the early morning of July 11 – on a Saturday, when unnamed threat actors infected its devices with malware.

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Paramount Warner Bros. Discovery Merger Faces 12-State Lawsuit Because Streaming Wasn’t Complicated Enough

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The Paramount Skydance takeover of Warner Bros. Discovery has finally landed in court, which raises the obvious question: where was this lawsuit months ago?

The Paramount Skydance takeover of Warner Bros. Discovery has already cleared a major federal hurdle, but 12 state attorneys general have now decided that combining Paramount, Warner Bros., HBO, CNN, CBS, Max, and Paramount+ under one corporate roof may not be great for competition. Imagine noticing the house is on fire after everyone has already picked paint colors.

On July 13, 2026, a coalition led by California Attorney General Rob Bonta filed an antitrust lawsuit seeking to block Paramount Skydance’s proposed acquisition of Warner Bros. Discovery. The complaint argues that the nearly $111 billion transaction, including debt, would reduce competition in theatrical film distribution, basic cable programming, streaming, and the broader entertainment market.

We have covered this story from the start, beginning with Netflix’s original agreement to acquire Warner Bros., HBO, and HBO Max, followed by Paramount’s hostile bid, the Ellison-backed bidding war, and Paramount eventually winning after Netflix stepped aside. Back in February, we noted that Paramount winning the bid was not the end of the story. Regulatory scrutiny, debt, politics, and the future of HBO, CNN, Warner Bros., Paramount+, and Max were always going to remain part of the plot. Nobody said Hollywood consolidation came with a clean third act.

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What the Lawsuit Claims

The lawsuit was filed in the U.S. District Court for the Northern District of California by California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states are asking the court to prevent Paramount from acquiring Warner Bros. Discovery. If Paramount and Warner Bros. Discovery try to close the deal before the case is resolved, the states have warned they may seek a temporary restraining order.

The complaint argues that the merger would combine two of the nation’s five major film distributors and two of the five major owners of basic cable channels. According to the filing, the combined company would leave four companies controlling more than 85 percent of wide-release theatrical films in the United States, while the merged Paramount Warner Bros. entity and Disney would control 59 percent of U.S. basic cable.

The states also claim the merger would give the combined company control of more than 50 basic cable channels, creating greater leverage in carriage negotiations with cable and satellite distributors. In plain practical terms: fewer companies owning more essential content usually means distributors have less negotiating room, and consumers eventually get invited to pay for the party.

The lawsuit also focuses heavily on theaters. The states argue that with fewer film distributors competing for screens, theaters could face worse revenue splits, stricter limits on discounts and complimentary tickets, fewer new releases, and less incentive for studios to invest in a broad theatrical slate.

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Paramount’s Response

Paramount Skydance Logo

Paramount has rejected the lawsuit and says the states are misreading the modern entertainment market. The company argues that the merger would create a stronger competitor against dominant streaming and technology platforms, especially Netflix, and that delaying the deal would hurt entertainment workers who have already been squeezed by changes in the business.

That is the core tension. The states are framing this as a competition problem. Paramount is framing it as a survival strategy.

Both arguments are not crazy. That is what makes this more interesting than the usual “company buys company, executives discover synergies, workers discover LinkedIn” story.

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Paramount and Warner Bros. Discovery are legacy entertainment companies trying to compete against Netflix, Amazon, Apple, YouTube, and Disney. But the way they propose to do that is by combining two historic studios, two major streaming platforms, CNN, CBS, HBO, Warner Bros., Paramount Pictures, Nickelodeon, Cartoon Network, TNT, MTV, HGTV, BET, Discovery Channel, Pluto TV, and more under one roof.

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Netflix Is Still in the Room

Netflix may have stepped away from the Warner Bros. bidding war, but it remains central to the story. Paramount’s defense depends heavily on the idea that the combined company would be better equipped to challenge Netflix and the other tech-driven streaming giants. The states, meanwhile, argue that reducing the number of major film and cable owners is still harmful even if Netflix remains the biggest streaming target.

Netflix Word Logo

The timing is also interesting. Netflix reports Q2 2026 financial results on Thursday, July 16, 2026, at approximately 1:01 p.m. Pacific Time, with a live video interview scheduled afterward.

That earnings report lands after a rough stretch for Netflix’s stock. Recent market coverage has noted that NFLX has lost nearly 24 percent over the past three months ahead of its Q2 results. So while Paramount wants to paint Netflix as the untouchable giant, Wall Street has been reminding everyone that even the 800-pound gorilla occasionally slips on its own banana peel.

That does not weaken Paramount’s broader argument that Netflix is still the streaming benchmark. It does complicate the idea that every legacy media company must become enormous overnight to survive.

Is This About Antitrust or Politics?

The lawsuit is formally an antitrust case. The political pattern is still hard to ignore.

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All 12 plaintiff attorneys general are Democrats: California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. No Republican attorney general joined the lawsuit.

The governor breakdown is slightly different. Eleven of the 12 plaintiff states currently have Democratic governors. Nevada is the exception, with Republican Gov. Joe Lombardo.

That does not automatically make the lawsuit partisan theater. State attorneys general often pursue antitrust cases for policy reasons, economic reasons, consumer protection reasons, and, yes, political reasons. Sometimes all of the above sit in the same conference room and pretend they came separately.

But the political backdrop matters. The Justice Department under President Donald Trump’s administration cleared the deal in June without requiring divestitures, while Bonta and other Democratic attorneys general continued to signal concern. Criticism over political influence has largely fallen along party lines, with Democratic officials questioning whether federal regulators gave the deal enough scrutiny.

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Then there is CNN. Any deal that puts CNN under the same corporate structure as CBS and Paramount under David Ellison was always going to attract political attention. Pretending otherwise would require a level of innocence normally reserved for Hallmark movies and first-time streaming subscribers.

Paramount Has Cleared Some International Hurdles

Paramount also has a fair point when it argues that the deal is not being rejected everywhere. The company has received regulatory or competition clearances in several international markets, including Australia, China, Canada, Saudi Arabia, Ukraine, Serbia, and North Macedonia. It has also received foreign-direct-investment approvals in countries including Germany, Slovenia, Belgium, Czechia, New Zealand, Italy, France, and Romania.

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That does not mean the transaction is home free. Reviews remain active in major markets, including the European Union and the U.K., where regulators have been looking at competition, media plurality, foreign investment, and the potential impact of combining HBO Max, Paramount+, CNN International, Cartoon Network, Nickelodeon, and other services under one corporate roof.

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So yes, Paramount can accurately say the deal has cleared some meaningful international hurdles. But the lawsuit from 12 U.S. states, along with continuing U.K. and European reviews, makes it clear that approval is still very much a moving target.

The California Exit Threat

One of the more aggressive subplots involves Paramount possibly leaving California.

Semafor reported on Monday that advisers close to David Ellison have urged him to consider moving Paramount’s corporate headquarters and reallocating some of the company’s planned spending outside California if Bonta sued to block the deal. The same report stressed that no decision has been made and that the idea may be brinkmanship.

Texas is the obvious political shorthand here because major companies including Chevron, Oracle, and Tesla have already moved headquarters out of California and toward Texas in recent years. But the more immediate production option mentioned in the reporting is New Jersey, where Paramount already signed a major lease at 1888 Studios in Bayonne.

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That is where the story gets awkward. New Jersey is one of the 12 states suing to block the deal.

So if Paramount was hoping to use New Jersey as part of a “California is hostile, we are moving somewhere friendlier” argument, Trenton just walked into the room holding a legal complaint and gave studio developers, local contractors, and Monmouth County homeowners one more reason to check Zillow with mixed emotions.

What About Paramount’s Bayonne Studio Plans?

Paramount signed a minimum 10-year lease for more than 285,000 square feet at 1888 Studios in Bayonne in October 2025. The larger 1888 Studios project is planned as a 1.5 million to 1.6 million square foot production campus on the Bayonne waterfront, with 23 soundstages and major production support facilities.

There is no evidence right now that Paramount is walking away from that lease or that the lawsuit directly jeopardizes the Bayonne project. That needs to be stated clearly.

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But future expansion is a fair question. If Paramount is rethinking where to place corporate offices, production spending, and future studio commitments, the lawsuit complicates New Jersey’s pitch. The state still has generous film and digital media tax incentives, and Bayonne remains a serious production play. But joining a lawsuit against Paramount’s biggest strategic deal is not exactly how one usually sends a fruit basket or box of Taylor Ham.

Netflix Fort Monmouth Keeps Moving

Netflix Studio Complex in Fort Monmouth New Jersey Artist Conception
Netflix Studio Complex in Fort Monmouth New Jersey (Artist Conception)

The New Jersey production story does not begin and end in Bayonne.

Netflix Studios Fort Monmouth is moving forward on the Jersey Shore. Officially, Netflix celebrated a construction milestone on June 23, 2026, with the installation of the final structural beam on Stages 3 and 4. The $1 billion project spans more than 292 acres across Oceanport and Eatontown and is planned to include 12 soundstages totaling nearly 500,000 square feet. Phase 1A remains on track for summer 2027, with Phase 1B targeted for fall 2028.

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From a local perspective, the project looks very real. I live about two miles away and drive through the area a few times a week as a shortcut home. Three of the soundstages on the eastern side of the property appear to be in an advanced stage of construction.

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The broader point is that New Jersey has become a serious production battleground. Netflix is building at Fort Monmouth. Paramount has leased space in Bayonne. Lionsgate has been part of the Newark studio conversation. New Jersey has been openly trying to become a major East Coast production hub. This lawsuit may not stop any of that, but it does make the politics a lot messier.

What This Means for Viewers

For consumers, the biggest questions are not about corporate headquarters or which governor gets to cut a ribbon. The real concern is what this deal could mean for the services, studios, news divisions, theaters, and catalogs people actually watch.

If Paramount+ and HBO Max eventually combine, prices could rise, bundles could change, and another major entertainment library could end up under one corporate roof. Theatrical output is another major concern. Fewer major studios can mean fewer wide releases, less negotiating leverage for theaters, and less incentive to take risks on films that are not obvious franchise plays.

There is also the question of what happens to Warner Bros. catalog titles, HBO, CNN, CBS News, Paramount Pictures, and physical media. Will those assets be treated as distinct creative and editorial brands, or simply as inventory to be optimized? The lawsuit does not answer those questions, but it does slow the process and force Paramount to defend the deal in court after already clearing a major federal hurdle.

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The Bottom Line

The 12-state lawsuit is the most serious legal threat yet to Paramount’s Warner Bros. Discovery takeover. It does not guarantee the deal will collapse, but it could delay closing, increase pressure on Paramount, and force more public scrutiny of how much media power one company should hold.

Paramount’s best argument is that legacy Hollywood needs scale to compete with Netflix, Amazon, Apple, YouTube, and Disney. The states’ best argument is that solving one competitive problem by creating a larger concentration problem does not magically become consumer-friendly because a streaming app is involved.

And then there is the politics. All 12 attorneys general suing are Democrats, the Trump Justice Department already cleared the deal, and CNN sits right in the middle of the transaction like a neon sign blinking “this will be normal.” Sure it will.

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If Paramount really wants to move more production or corporate power out of California, New Jersey and Texas will both be part of the conversation. But New Jersey’s participation in the lawsuit makes that idea more complicated, especially with Paramount already attached to Bayonne and Netflix racing ahead at Fort Monmouth.

Hollywood consolidation was already messy. Now it has federal court filings, state politics, Netflix earnings week, and a possible headquarters fight.

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