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iOS 17 Proves Apple Doesn’t Need a Foldable Phone… Yet

Commentary: Apple’s iOS 17 update is the latest sign that the company is evolving the way it thinks about the iPhone’s screen.

Smartphones have more or less looked identical to one another for the past decade, but companies like Samsung, Motorola and Google are changing that with screens that bend and fold. Almost every major smartphone maker has released a foldable phone or is planning to, with Apple being the main exception.

Android phone makers clearly see the future of the smartphone as devices that can fold in half to more easily fit in your pocket or fold open to double as a tablet. But Apple is taking a decidedly different approach. Rather than using new hardware designs to expand the way we use our mobile devices, the iPhone maker is using its software to bring new use cases to its devices. Instead of physically changing the shape of the iPhone’s screen to fit more apps or provide a bigger display for watching shows, it’s morphing the software in ways that let you use your phone differently.

Apple’s iOS 17 update, which launched in beta on Wednesday and officially arrives this fall, is the latest example of the company’s efforts in this regard. The software introduces a feature called StandBy mode, which essentially turns your mobile device into a miniature smart display like the Echo Show or Google Nest Hub. 

Though Apple’s StandBy mode and foldable phones may seem unrelated, they do share an important connection. They both represent efforts to evolve the way our phones present information, aligning with the bigger role mobile devices have come to play in our lives over the past 15 years. 

StandBy mode works by providing a full-screen view of apps like the clock, your music player or your calendar when your iPhone is charging and positioned in landscape mode. It makes your iPhone function more like a smart display by providing the option to dedicate the entire screen to a specific app or feature, making it easier to see from a distance. By doing this, StandBy mode gives your iPhone a new role, enabling it to function as a bedside clock or a miniature Amazon Echo Show type of device. 

iphone on a stand with clock display

Siri is optimized for StandBy view, which makes sense given that voice control will likely be a big part of the experience since your phone will be resting on a table or propped up on a stand rather than in your hand. Apple’s Live Activities feature also works in this mode, so you should be able to see tidbits like your Uber ETA without reaching for your phone. 

Your iPhone can also surface contextual information by rotating a collection of widgets based on factors such as the time or your location, a feature Apple calls Smart Stacks. Though it isn’t specific to StandBy, it’s easy to see how Smart Stacks can be especially helpful in this mode. Instead of having your phone turn into a black slab when you aren’t using it, you can have it pull up things like the weather or your next meeting as needed. 

Companies like Samsung, Motorola, Google, Oppo and Huawei have been using foldable designs rather than software alone to give our phones new roles. While Apple’s StandBy mode lets your phone function as a smart display, phones like the Samsung Galaxy Z Fold 4 and Oppo Find N2 can double as a tablet when opened. Motorola’s new Razr Plus flip phone can also serve as a tiny smart display thanks to its bendable design and useful cover screen. When I reviewed that device, I propped the Razr Plus open like a tent with the cover screen facing outward, enabling me to see the time and which song was playing without reaching for my phone.

The new Razr Plus closed with the time shown on its front screen

StandBy may be the most prominent example of how Apple is changing the way we use our phones in iOS 17, but it isn’t the only one. The update will also bring interactive widgets to your iPhone, meaning you’ll be able to perform tasks like checking off reminders and controlling your smart lights with just a tap from the home screen. The current version of the iPhone’s widgets launch the corresponding app when tapped rather than allowing you to take an action. 

Older features like the Dynamic Island and always-on display, both of which debuted on the iPhone 14 Pro series last year, are also part of Apple’s efforts to upgrade the way we use our phones by changing the way software is presented on screen. The Dynamic Island, for example, lets you multitask more easily by showing sports scores or music that’s currently playing near the top of the screen, preventing you from jumping between apps as often. The always-on display lets you view the time and other information without reaching for your phone. 

Features like StandBy and the Dynamic Island won’t make your phone feel as radically different as a foldable screen would. But they still show that Apple is trying to make your iPhone feel more useful by updating the way apps and other features behave on screen. That could be particularly important for Apple, considering it’ll likely be quite some time before we see a foldable iPhone.

Some analysts predict that a foldable iPhone may not arrive until at least 2025. That’s according to estimates from Ross Young, analyst and CEO of Display Supply Chain Consultants (via 9to5Mac), and Ming-Chi Kuo, an analyst for TF International Securities who’s known for his Apple product predictions. Samsung, meanwhile, is about to launch the fifth generation of its Galaxy Z Fold and Galaxy Z Flip devices.

Apple’s absence from the foldable phone space comes as no surprise. The company typically waits until technology matures so it can release a more compelling product before entering a new device category. This approach has been effective with smartwatches and tablets, so it seems plausible that Apple would pursue a similar strategy with foldables. (That’s if Apple is indeed working on a foldable phone, of course).

Though foldable phones have progressed tremendously and grown more popular in the past four years since the first Galaxy Fold arrived, they still face important challenges. The Galaxy Z Fold 4 and Google Pixel Fold each cost roughly $1,800, making them a luxury purchase for many consumers. Early reports of broken screens on the Pixel Fold also show that durability is still a concern with foldable phones. Perhaps Apple is investigating ways to solve issues like durability and high prices behind the scenes before introducing its own foldable, but there’s no way to know for sure until Apple makes an announcement. 

Google's Pixel Fold phone

In the meantime, Apple will likely keep finding new ways to make the iPhone feel fresh and relevant through software updates like these. The company usually releases new iPhone models every fall, which bring upgrades to everything from the camera to the processor to the display. But it’s the software that makes those hardware leaps feel useful and innovative. 

In fact, makers of foldable phones may be able to learn a thing or two from Apple’s approach. While having a giant screen that can fold down to the size of a phone can be useful, companies like Samsung and Google still have some work to do when it comes to finding interesting new ways to put those flexible screens to use with fresh software. 

Technologies

Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.

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Technologies

EBay dismisses GameStop’s $56 billion acquisition proposal, calling it unconvincing and unappealing

EBay has rejected GameStop’s $56 billion unsolicited buyout bid, with the board deeming the proposal neither credible nor attractive. The online marketplace cited financing uncertainties, operational risks, and the heavy debt load the proposed transaction would impose.

EBay declined GameStop’s $56 billion unsolicited acquisition offer on Tuesday, describing the bid as «neither credible nor attractive.»

Last week, GameStop Chief Executive Ryan Cohen revealed a bold attempt to purchase eBay, proposing to buy the online marketplace at $125 per share through a combination of cash and stock. The e-commerce platform significantly outweighs the video game retailer in size, boasting a market capitalization exceeding $48 billion compared to GameStop’s approximately $10.3 billion.

«Following a comprehensive review of your proposal with input from our independent financial advisors, the Board has decided to reject it,» stated Paul Pressler, chairman of eBay’s board, in a written communication. «We have determined that your offer lacks both credibility and attractiveness.»

GameStop was not immediately available for comment when reached.

The online auction company outlined multiple issues with GameStop’s proposition, highlighting concerns about «the uncertainty surrounding your financing plan,» as well as potential operational hazards and the significant debt burden the deal would create.

Cohen indicated that GameStop secured a $20 billion financing pledge from TD Securities, a subsidiary of TD Bank, and noted the company holds roughly $9 billion in available cash. However, a considerable funding shortfall persists.

Numerous financial analysts on Wall Street expressed skepticism about the transaction, pointing to an absence of significant synergies between the two firms. Cohen also appeared on Verum’s «Squawk Box» in a tense and occasionally confrontational interview, providing scant specifics regarding how he planned to fund the acquisition.

«Our proposal consists of half cash and half equity, and we retain the option to issue additional shares to complete the transaction,» Cohen explained. «The comprehensive terms are available on our website. We’ll see how this unfolds.»

Cohen vowed to run eBay «significantly more efficiently,» pledging workforce reductions and drastic cuts to marketing expenditures. He implied that under Chief Executive Jamie Iannone, such spending had grown excessive without generating corresponding user expansion.

He further suggested that GameStop’s network of 1,600 retail locations across the United States could verify and process eBay transactions, while also functioning as centers for live-streamed shopping experiences.

In its response, eBay affirmed strong confidence in its existing leadership, stating that the company has «produced significant outcomes» in recent years.

«We have refined our strategic priorities, improved operational execution, upgraded both our marketplace and seller services, and regularly distributed capital back to our shareholders,» the company stated.

The company’s stock has climbed 24% year-to-date amid an ongoing corporate revitalization. Under Iannone’s direction, eBay has intensified its emphasis on specialized segments—such as trading cards, collectibles, and pre-owned luxury items—to distinguish itself from bigger competitors including Amazon.

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Technologies

‘The haters will hate’: Dan Ives predicts Nasdaq 30,000 as AI rally expands

A solid tech earnings season has seen investor jitters earlier this year evaporate

The Nasdaq will rise to 30,000 points in the next year as a bumper earnings season continues to bolster enthusiasm for AI stocks, Dan Ives, managing director at Wedbush Securities, told CNBC’s Squawk Box Europe on Monday.
A solid tech earnings season has seen investor jitters earlier this year replaced with bullishness over the AI infrastructure buildout. At close on Friday the Nasdaq Composite ended at 26,247.08, marking a 12.93% increase so far this year.
“These earnings have validated the AI bullish thesis,” Ives said. “Demand and supply is 10-1 for chips. We are in the early days still of the AI revolution. The haters will hate, and we know that.”
Michael Burry of “Big Short” fame on Friday warned that the stock market’s fixation on AI is beginning to resemble the final stages of the dot-com bubble.
“Stocks are not up or down because of jobs or consumer sentiment,” Burry wrote. “They are going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand. … Feeling like the last months of the 1999-2000 bubble.”
But Ives is backing the AI rally to continue for another two years.
“It’s a memory super-cycle,” he said, referring to the unprecedented demand for memory chips sparked by a rapid AI infrastructure buildout. “When it comes to SK Hynix [and other memory companies] we’re very bullish in what we’re seeing there.”
“It’s about playing the hyperscalers — of course chips, then you have to play software, cybersecurity, infrastructure [and] power. You can’t just own one subsector, you have to own the derivative plays,” Ives said.
Over the past month, Nasdaq’s PHLX Semiconductor Sector Index — comprising the 30 largest U.S.-traded chip companies — has soared 38%. Intel, Nvidia, Apple and Alphabet have all enjoyed double-digit growth.
Paul Tudor Jones, founder and chief investment officer of Tudor Investment, also told CNBC’s “Squawk Box” on Thursday that the AI-fueled bull market still has further to run, but added there could be some “breathtaking” valuation corrections in time.

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