Silicon Valley Tech News Roundup – February 6th
Meta sees record daily loss – 2/4
On Thursday, Meta Platforms, the owners of Facebook, saw a record daily loss when the company’s market value went down by $230bn. The shares fell 26.4%, and the number of daily active Facebook users went down for the first time in 18 years. As a result, Mark Zuckerberg’s net worth fell by $31bn.
Meta reported the number of daily active users of Facebook went down to 1.929bn in the last three months of 2021. For comparison, the number of daily active users in the previous quarter was 1.930bn.
The company reported slower revenue growth for several reasons. Younger audiences are flocking to competitors (namely TikTok and YouTube). Likewise, advertisers are cutting their spending. For the first quarter of the year, Meta Platforms forecasts revenues between $27bn and $29bn and below the sum predicted by analysts.
Congress passes new subsidies for the chip manufacturing industry – 2/4
In a session held on Friday, Congress passed COMPETES act. It is also known as the “China Competiton” bill. COMPETES Act provides new subsidies for the domestic semiconductor industry. Likewise, the bill includes other measures to stimulate the economy.
The COMPETES Act will provide $52bn for the domestic semiconductor industry. $39bn from the total sum will go towards new fabrication facilities. The impetus behind the bill was due to the global and ongoing chip shortage. However, the new fabrication facilities will not solve the current supply chain problems. Several facilities eligible for the funding are already under construction, namely Intel’s foundry in Ohio and TSMC foundry in Arizona. However, these facilities will not start producing chips until 2024.
The COMPETES Act also includes $3bn in subsidies for the manufacturing related to solar power. Likewise, it establishes an engineering-focused directorate within the National Science Foundation.
In a statement about the bill, President Biden said: “The House took a critical vote today for stronger supply chains and lower prices, for more manufacturing – and good manufacturing jobs – right here in America.”
Amazon raises prices of Amazon Prime – 2/3
On Thursday, Amazon announced it would raise prices of Prime membership. The annual fee will go from $119 to $139. It is a rise of 17%. The company will also raise its monthly Prime membership from $12.99 to $14.99. The change will go into effect from March 25th for current users. Meanwhile, new members will see the increase from February 18th.
The last time Amazon raised the price of Prime membership was in 2018. Based on the data from April 2021, the service had over 200 million users. Prime membership gives users free two-day shipping. Likewise, other perks include access to exclusive TV and movie content. Prime is an essential component of Amazon’s core retail business since its members spend more.
But over the recent years, the company faced challenges in terms of labor constraints and supply chain disruptions. To meet the demand and offer one-day shipping nationwide, Amazon was forced to expand its fulfillment network, and improve its logistics. It also started offering signing bonuses to attract workers and higher wages.
Apple to hold Spring 2022 event on March 8th? – 2/4
Bloomberg reports Apple will hold its spring 2022 event “on or near” March 8th.
The updates expected include an update to iOS15 and macOS Monterey. The updates will enable unlocking the iPhone with your mask on. The Mac update will allow owners to use Mac with an iPad controlled by one mouse or keyboard.
In terms of devices, experts speculate the audience can expect an updated version of the iPhone SE with 5G connectivity. Likewise, the company might present a new Mac and an iPad Air. Apple has not updated iPhone SE in two years, and it is the cheapest version of the iPhone available. The new update will include a faster processor, 5G, and an improved camera. The design, however, would remain the same. Meanwhile, iPad Air is also expected to get a faster processor and 5G modem.
