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Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.

For years, Comcast has been promising that it won't violate the principles of net neutrality, regardless of whether the government imposes any net neutrality rules. That meant that Comcast wouldn't block or throttle lawful Internet traffic and that it wouldn't create fast lanes in order to collect tolls from Web companies that want priority access over the Comcast network. This was one of the ways in which Comcast argued that the Federal Communications Commission should not reclassify broadband providers as common carriers, a designation that forces ISPs to treat customers fairly in other ways. The Title II common carrier classification that makes net neutrality rules enforceable isn't necessary because ISPs won't violate net neutrality principles anyway, Comcast and other ISPs have claimed. But with Republican Ajit Pai now in charge at the Federal Communications Commission, Comcast's stance has changed. While the company still says it won't block or throttle Internet content, it has dropped its promise about not instituting paid prioritization.

Instead, Comcast now vaguely says that it won't "discriminate against lawful content" or impose "anti-competitive paid prioritization." The change in wording suggests that Comcast may offer paid fast lanes to websites or other online services, such as video streaming providers, after Pai's FCC eliminates the net neutrality rules next month.

Such profiteering tactics have disproportionately affected low-income and rural communities. ISPs have long redlined these demographic groups, creating what’s commonly known as the “digital divide.” Thirty-nine percent of Americans lack access to service fast enough to meet the federal definition of broadband. More than 50 percent of adults with household incomes below $30,000 have home broadband—a problem plaguing users of color most acutely. In contrast, internet access is near-universal for households with an annual income of $100,000 or more. The reason for such chasms is simple: Private network providers prioritize only those they expect to provide a return on investment, thus excluding poor and sparsely populated areas.

Chattanooga, Tennessee, has seen more success in addressing redlining. Since 2010, the city has offered public broadband via its municipal power organization, Electric Power Board (EPB). The project has become a rousing success: At half the price, its service is approximately 85 percent faster than that of Comcast, the region’s primary ISP prior to EPB’s inception. Coupled with a discounted program for low-income residents, Chattanooga’s publicly run broadband reaches about 82,000 residents—more than half of the area’s Internet users—and is only expected to grow. Chattanooga’s achievements have radiated to other locales. More than 450 communities have introduced publicly-owned broadband. And more than 110 communities in 24 states have access to publicly owned networks with one gigabit-per-second (Gbps) service. (AT&T, for example, has yet to introduce speeds this high.) Seattle City Councilmember Kshama Sawant proposed a pilot project in 2015 and has recently urged her city to invest in municipal broadband. Hawaii congressperson Kaniela Ing is drafting a bill for publicly-owned Internet for the state legislature to consider next year. In November, residents of Fort Collins, Colo. voted to authorize the city to build municipal broadband infrastructure.

Google plans to stop selling ads based on individuals’ browsing across multiple websites, a change that could hasten upheaval in the digital advertising industry. The Alphabet Inc. company said Wednesday that it plans next year to stop using or investing in tracking technologies that uniquely identify web users as they move from site to site across the internet. The decision, coming from the world’s biggest digital advertising company, could help push the industry away from the use of such individualized tracking, which has come under increasing criticism from privacy advocates and faces scrutiny from regulators. Google’s heft means the change could reshape the digital ad business, where many companies rely on tracking individuals to target their ads, measure the ads’ effectiveness and stop fraud. Google accounted for 52% of last year’s global digital ad spending of $292 billion, according to Jounce Media, a digital ad consultancy.

Facebook CEO Mark Zuckerberg will tell House lawmakers Wednesday that he's willing to postpone the launch of the controversial digital currency that the social media giant is spearheading, amid growing pushback from policymakers around the world. Facebook and its partners working to launch the Libra payments network have been planning to start offering it to users next year. But Zuckerberg signaled he was open to taking more time, the latest indicator that regulatory hurdles are imperiling efforts to get Libra off the ground.

The state attorneys in more than a dozen states are preparing to begin an antitrust investigation of the tech giants, The Wall Street Journal and The New York Times reported Monday, putting the spotlight on an industry that is already facing federal scrutiny.The bipartisan group of attorneys from as many as 20 states is expected to formally launch a probe as soon as next month to assess whether tech companies are using their dominant market position to hurt competition, the WSJ reported.If true, the move follows the Department of Justice, which last month announced its own antitrust review of how online platforms scaled to their gigantic sizes and whether they are using their power to curb competition and stifle innovation. Earlier this year, the Federal Trade Commission formed a task force to monitor competition among tech platforms.

The much anticipated iPhone 5G - and the next obvious cash cow for smartphone technology company Apple in its long line of smartphone cash cows - may be put on hold due to spillover effects from the coronavirus. Bank of America put out a note on Friday morning, citing a conversation with an expert on the company's supply chain, that said the product launch may wind up being pushed back.  The expert said that  “the iPhone 5G launch in the fall could see a month of delay.” He also warned that the launch of the iPhone SE2 would be delayed by "a few months" due to supply issues and weaker demand as a result of coronavirus. 

Elon Musk and his team of boffins are exploring ways in which they can connect a computer interface to the mind. The South African-born billionaire claims to have already trialled the revolutionary device on a monkey which was able to control the computer with its brain. Mr Musk said at a presentation on Tuesday: “A monkey has been able to control the computer with his brain.”

NeuraLink describes the device as “sewing machine-like”. The system implants ultra-thin threads deep into the brain’s nervous system.The company has applied to US regulators in the hopes of beginning trials on humans next year.Primarily, the firm states that initially it wants to help people with severe neurological conditions, but as with all of his companies, Mr Musk is aiming for more and sees humanity’s future as having “superhuman cognition”.The device in question, which is nameless so far, will see the tiny thread fitted with 3,000 electrodes which can monitor the activity of 1,000 neurons.

Mr Musk hopes the product will be on the market within four years.

The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.

What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.

Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."

Ohio’s attorney general, Dave Yost, filed a lawsuit on Tuesday in pursuit of a novel effort to have Google declared a public utility and subject to government regulation.The lawsuit, which was filed in a Delaware County, Ohio court, seeks to use a law that’s over a century old to regulate Google by applying a legal designation historically used for railroads, electricity and the telephone to the search engine.“When you own the railroad or the electric company or the cellphone tower, you have to treat everyone the same and give everybody access,” Mr. Yost, a Republican, said in a statement. He added that Ohio was the first state to bring such a lawsuit against Google.If Google were declared a so-called common carrier like a utility company, it would prevent the company from prioritizing its own products, services and websites in search results.AdvertisementContinue reading the main storyGoogle said it had none of the attributes of a common carrier that usually provide a standardized service for a fee using public assets, such as rights of way.The “lawsuit would make Google Search results worse and make it harder for small businesses to connect directly with customers,” José Castañeda, a Google spokesman, said in a statement. “Ohioans simply don’t want the government to run Google like a gas or electric company. This lawsuit has no basis in fact or law and we’ll defend ourselves against it in court.”Though the Ohio lawsuit is a stretch, there is a long history of government control of certain kinds of companies, said Andrew Schwartzman, a senior fellow at the nonprofit Benton Institute for Broadband & Society. “Think of ‘The Canterbury Tales.’ Travelers needed a place to stay and eat on long road treks, and innkeepers were not allowed to deny them accommodations or rip them off,” he said.

After a series of federal lawsuits filed against Google last year, Ohio’s lawsuit is part of a next wave of state actions aimed at regulating and curtailing the power of Big Tech. Also on Tuesday, Colorado’s legislature passed a data privacy law that would allow consumers to opt out of data collection.On Monday, New York’s Senate passed antitrust legislation that would make it easier for plaintiffs to sue dominant platforms for abuse of power. After years of inaction in Congress with tech legislation, states are beginning to fill the regulatory vacuum.Editors’ PicksThe Abandoned Houses of Instagram21 Easy Summer Dinners You’ll Cook (or Throw Together) on Repeat‘King Richard’ Finds Fresh Drama in WatergateAdvertisementContinue reading the main storyAdvertisementContinue reading the main storyOhio was also one of 38 states that filed an antitrust lawsuit in December accusing Google of being a monopoly and using its dominant position in internet search to squeeze out smaller rivals.

In the middle of the night, invisible to anyone but special telescopes in two Chinese observatories, satellite Micius sends particles of light to Earth to establish the world’s most secure communication link. Named after the ancient Chinese philosopher also known as Mozi, Micius is the world’s first quantum communications satellite and has, for several years, been at the forefront of quantum encryption. Scientists have now reported using this technology to reach a major milestone: long-range secure communication you could trust even without trusting the satellite it runs through. Launched in 2016, Micius has already produced a number of breakthroughs under its operating team led by Pan Jian-Wei, China’s “Father of Quantum”. The satellite serves as the source of pairs of entangled photons, twinned light particles whose properties remain intertwined no matter how far apart they are. If you manipulate one of the photons, the other will be similarly affected at the very same moment.

It is this property that lies in the heart of the most secure forms of quantum cryptography, the entanglement-based quantum key distribution. If you use one of the entangled particles to create a key for encoding messages, only the person with the other particle can decode them.

Secure long-distance links such as this one will be the foundation of the quantum internet, the future global network with added security powered by laws of quantum mechanics, unmatched by classical cryptographic methods. The launch of Micius and the records set by the scientists and engineers building quantum communication systems with its help have been compared to the effect Sputnik had on the space race in the 20th century. In a similar way, the quantum race has political and military implications that are hard to ignore.

Google and Amazon are both set to help build “Project Nimbus,” a mammoth new cloud computing project for the Israeli government and military that is spurring intense dissent among employees and the public alike. Shareholders of both firms will soon vote on resolutions that would mandate reconsideration of a project they fear has grave human rights consequences. Little is known of the plan, reportedly worth over $1 billion, beyond the fact that it would consolidate the Israeli government’s public sector cloud computing needs onto servers housed within the country’s borders and subject solely to Israeli law, rather than remote data centers distributed around the world. Part of the plan’s promise is that it would insulate Israel’s computing needs from threats of international boycotts, sanctions, or other political pressures stemming from the ongoing military occupation of Palestine; according to a Times of Israel report, the terms of the Project Nimbus contract prohibit both companies from shutting off service to the government, or from selectively excluding certain government offices from using the new domestic cloud.

While a wide variety of government ministries will make use of the new computing power and data storage, the fact that Google and Amazon may be directly bolstering the capabilities of the Israeli military and internal security services has generated alarm from both human rights observers and company engineers. In October 2021, The Guardian published a letter from a group of anonymous Google and Amazon employees objecting to their company’s participation. “This technology allows for further surveillance of and unlawful data collection on Palestinians, and facilitates expansion of Israel’s illegal settlements on Palestinian land,” the letter read. “We cannot look the other way, as the products we build are used to deny Palestinians their basic rights, force Palestinians out of their homes and attack Palestinians in the Gaza Strip — actions that have prompted war crime investigations by the international criminal court.” In March, an American Google employee who had helped organize the employee opposition to Nimbus said the company abruptly told her she could either move to Brazil or lose her job, a move she said was retaliation for her stance. Nimbus will now face a referendum of sorts among Google and Amazon shareholders, who next month will vote on a pair of resolutions that call for company-funded reviews of their participation in that project and others that might harm human rights.