Apple CEO Tim Cook attends the Allen & Company Sun Valley Conference on July 08, 2021 in Sun Valley, Idaho.
Kevin Dietsch | Getty Images
At Apple’s annual launch event this week, it revealed new iPhones, iPads and Apple Watches, all of which were refinements of previous models.
What Apple didn’t release, however, was a new kind of product — Apple’s “next big thing” which customers hope will be extremely cool and investors hope will drive another decade or more of Apple growth, like the iPhone did before it.
In previous years, Apple and its CEO Tim Cook have emphasized “augmented reality,” or AR, which is a term for a collection of technologies that use advanced cameras and modern chips to be able to understand where objects are in relation to the user and place computer graphics or information over a screen showing the real world.
Eventually, believers like Facebook’s Mark Zuckerberg say augmented reality technologies will be bundled into a headset or glasses, which could represent a sea-change for the technology industry like how the original iPhone’s touchscreen created billion-dollar companies.
But at Tuesday’s event, augmented reality technology didn’t make an appearance, except for a brief mention of one AR app that runs on iPads.
Justine Ezarik, who goes by iJustine on her popular YouTube page, brought up the lack of AR at the launch in a video interview with Cook posted after the event.
In his answer, Cook repeated some of the things he’s said about AR in the past, but continued to be very bullish on the technology, calling himself “AR fan number one.”
“I think AR is one of these very few profound technologies that we that we will look back on one day and went, how did we live our lives without it?” Cook said.
Cook said that the main uses for AR technology include education, collaboration and shopping for furniture while making sure it fits in the user’s home.
“And that’s at the early innings of AR,” Cook said. “it will only get better.”
Competitors releasing glasses
AR backers say that wearing computer glasses will be a normal, everyday experience, like using a smartphone is today.
Apple has never confirmed it is building AR headsets, despite buying several startups working on key building blocks like transparent screens built into lenses and hiring hundreds of employees to work in its Technology Development Group on the project.
Some of Apple’s closest competitors have already released headsets.
The lack of AR announcements at Apple’s event is not a hint that Apple has given up on the technology. Apple’s launch events are focused on hardware and products customers can buy now — not providing clues about releases in upcoming years.
None of Apple’s new devices got AR hardware, unlike in the past few years, when some models added lidar sensors that can measure how far away an object is. The new iPhone Pro’s cameras do have improved night mode, which could be a useful feature for headsets in low-light.
So far, in public, Apple has generally treated AR as a software feature. It built tools called ARKit and RealityKit for app developers to make their own iPhone AR apps without doing hard physics like triangulating the location of the user or detecting hands and faces.
Those tools did make an appearance before Apple’s event. Users with AR-capable iPhones could download a file from Apple’s website that created a portal to a California landscape, which was the theme of Apple’s launch.
Apple’s new city navigation feature in Apple Maps.
Apple
The iPhone software launching on Monday, iOS 15, includes a mode where Apple Maps overlays walking directions onto the real world — big arrows telling the user where to go, on the iPhone’s screen — in a preview of what could be a major feature for a headset.
One challenge about these technologies is what to call them. Some people in the industry prefer the term “mixed reality,” which is less technical-sounding. The CEOs of Microsoft and Facebook, which are perhaps the most enthusiastic big companies about augmented reality, have started to talk about a “metaverse,” or a digital world overlaid on top of the real world.
Cook and Apple, for now, are sticking with “augmented reality.”
“There’s clearly different words out there. I’ll stay away from the buzzwords and for the moment just call it augmented reality,” Cook said in an interview with Time published this week.
Intuit CEO Sasan Goodarzi speaks at the opening night of the Intuit Dome in Los Angeles on Aug. 15, 2024.
Rodin Eckenroth | Filmmagic | Getty Images
Intuit shares fell 6% in extended trading Thursday after the finance software maker issued a revenue forecast for the current quarter that trailed analysts’ estimates due to some sales being delayed.
Here’s how the company performed in comparison with LSEG consensus:
Earnings per share: $2.50 adjusted vs. $2.35 expected
Revenue: $3.28 billion vs. $3.14 billion
Revenue increased 10% year over year in the quarter, which ended Oct. 31, according to a statement. Net income fell to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, a year ago.
While results for the fiscal first quarter topped estimates, second-quarter guidance was light. Intuit said it anticipates a single-digit decline in revenue from the consumer segment because of promotional changes for the TurboTax desktop software in retail environments. While that will affect revenue timing, it won’t have any impact on the full 2025 fiscal year.
Intuit called for second-quarter earnings of $2.55 to $2.61 per share, with $3.81 billion to $3.85 billion in revenue. The consensus from LSEG was $3.20 per share and $3.87 billion in revenue.
For the full year, Intuit expects $19.16 to $19.36 in adjusted earnings per share on $18.16 billion to $18.35 billion in revenue. That implies revenue growth of between 12% and 13%. Analysts polled by LSEG were looking for $19.33 in adjusted earnings per share and $18.26 billion in revenue.
Revenue from Intuit’s global business solutions group came in at $2.5 billion in the first quarter. The figure was up 9% and in line with estimates, according to StreetAccount. Formerly known as the small business and self-employed segment, the group includes Mailchimp, QuickBooks, small business financing and merchant payment processing.
“We are seeing good progress serving mid-market customers in MailChimp, but are seeing higher churn from smaller customers,” Sandeep Aujla, Intuit’s finance chief, said on a conference call with analysts. “We are addressing this by making product enhancements and driving feature discoverability and adoption to improve first-time use and customer retention.”
Better outcomes are a few quarters away, Aujla said.
CreditKarma revenue came in at $524 million, above StreetAccount’s $430 million consensus.
At Thursday’s close, Intuit shares were up about 9% so far in 2024, while the S&P 500 has gained almost 25% in the same period.
On Tuesday Intuit shares slipped 5% after The Washington Post said President-elect Donald Trump’s proposed “Department of Government Efficiency” had discussed developing a mobile app for federal income tax filing. But a mobile app for submitting returns from Intuit is “already available to all Americans,” CEO Sasan Goodarzi told CNBC’s Jon Fortt.
Goodarzi said on CNBC that he’s personally communicating with leaders of the incoming presidential administration.
On the earnings call, Goodarzi sounded optimistic about the economy.
“Our belief, which is not baked into our guidance, is that we will see an improved environment as we look ahead in 2025, particularly just with some of the things that I mentioned earlier around just interest rates, jobs, the regulatory environment,” he said. “These things have a real burden on businesses. And we believe that a better future is to come.”
Bluesky has surged in popularity since the presidential election earlier this month, suddenly becoming a competitor to Elon Musk’s X and Meta’s Threads. But CEO Jay Graber has some cautionary words for potential acquirers: Bluesky is “billionaire proof.”
In an interview on Thursday with CNBC’s “Money Movers,” Graber said Bluesky’s open design is intended to give users the option of leaving the service with all of their followers, which could thwart potential acquisition efforts.
“The billionaire proof is in the way everything is designed, and so if someone bought or if the Bluesky company went down, everything is open source,” Graber said. “What happened to Twitter couldn’t happen to us in the same ways, because you would always have the option to immediately move without having to start over.”
Graber was referring to the way millions of users left Twitter, now X, after Musk purchased the company in 2022. Bluesky now has over 21 million users, still dwarfed by X and Threads, which Facebook’s parent debuted in July 2023.
X and Meta didn’t immediately respond to requests for comment.
Threads has roughly 275 million monthly users, Meta CEO Mark Zuckerberg said in October. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates 318 million monthly users as of October.
Bluesky was created in 2019 as an internal Twitter project during Jack Dorsey’s second stint as CEO, and became an independent public benefit corporation in 2022. In May of this year, Dorsey said he is no longer a member of Bluesky’s board.
“In 2019, Jack had a vision for something better for social media, and so that’s why he chose me to build this, and we’re really thankful for him for setting this up, and we’ve continued to carry this out,” said Graber, who previously founded Happening, a social network focused on events. “We’re building an open-source social network that anyone can take into their own hands and build on, and it’s something that is radically different from anything that’s been done in social media before. Nobody’s been this open, this transparent and put this much control in the users hands.”
Part of Bluesky’s business plan involves offering subscriptions that would let users access special features, Graber noted. She also said that Bluesky will add more services for third-party coders as part of the startup’s “developer ecosystem.”
Graber said Bluesky has ruled out the possibility of letting advertisers send algorithmically recommended ads to users.
“There’s a lot on the road map, and I’ll tell you what we’re not going to do for monetization,” Graber said. “We’re not going to build an algorithm that just shoves ads at you, locking users in. That’s not our model.”
Bluesky has previously experienced major growth spurts. In September, it added 2 million users following X’s suspension in Brazil over content moderation policy violations in the country and related legal matters.
In October, Bluesky announced that it raised $15 million in a funding round led by Blockchain Capital. The company has raised a total of $36 million, according to Pitchbook.
Alphabet shares slid 6% Thursday, following news that the Department of Justice is calling for Google to divest its Chrome browser to put an end to its search monopoly.
The proposed break-up would, according to the DOJ in its Wednesday filing, “permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet.”
This development is the latest in a years-long, bipartisan antitrust case that found in an August ruling that the search giant held an illegal monopoly in both search and text advertising, violating Section 2 of the Sherman Act.
The potential break-up would include preventing Google from entering into exclusionary agreements with competitors like Apple and Samsung, part of a set of remedies that would last 10 years.