US consumer spending fell 0.2% in December in face of virus
Since making a brief bounce-back from the viral pandemic last spring, consumer spending has barely grown. Friday's government report on consumer spending showed that inflation by a measure preferred by the Fed rose 0.4% in December after no change in October and November. AdThe savings rate remained at an elevated 13.7% of after-tax income in December, up from 12.9% in November. In the final three months of 2020, consumer spending, which accounts for about 70% of the economy, grew at a 2.5% annual rate. Ad“We believe increased vaccinations, stable household finances and rebounding confidence will lift consumer spending growth” this year, Daco said.
Samsung scion Lee won't appeal prison sentence for bribery
Samsung Electronics Vice Chairman Lee Jae-yong arrives at the Seoul High Court in Seoul, South Korea, Monday, Jan. 18, 2021. Samsung scion Lee will not appeal a court ruling that sentenced him to two and a half years in prison for bribing South Korea's then-president for business favors. But after mulling his options, Lee decided to “humbly accept” the High Court’s decision, his head attorney Injae Lee said. Prosecutors had sought a prison term of 9 years for Lee Jae-yong. It’s not immediately clear what his prison term would mean for Samsung's business.
Samsung promises new phones will deliver more for less money
This photo provided by Samsung shows the Galaxy S21 Ultra. The three Galaxy S21 phones unveiled Thursday, Jan. 14, 2021 during a virtual event will face similar challenges in an economy still hobbled by the COVID-19 crisis. That model sold for $700, down from the $1,000 price that Samsung had set for its lower-priced standard Galaxy S20. In this year’s lineup, the standard Galaxy S21 phone will start at $800, a 20% markdown from last year’s comparable model. The Galaxy S21 Plus will sell for $1,000, a 17% reduction from last year’s comparable model while the Galaxy S21 Ultra will sell for $1,300, down by $100 from last year’s comparable model.
Lee Kun-Hee, force behind Samsung’s rise, dies at 78
Lee died with his family members by his side, including his only son and Samsung Vice Chairman Lee Jae-yong, the company said in a statement. Lee Kun-Hee was convicted in 2008 for illegal share dealings, tax evasion and bribery designed to pass his wealth and corporate control to his three children. Lee Kun-Hee was a stern, terse leader who focused on big-picture strategies, leaving details and daily management to executives. Lee Kun-Hee resigned as chairman of Samsung Electronics before the 2008 conviction. “As South Korea’s most successful entrepreneur, (Lee Kun-Hee) received a dazzling spotlight, but he had many vicissitudes full of grace and disgrace,” the ruling Democratic Party said in a statement.
Samsung's Lee indicted over controversial 2015 merger
The charges against Lee and the other Samsung officials include stock price manipulation, breach of trust, and auditing violations related to the 2015 merger between Samsung C&T Corp. and Cheil Industries, said Lee Bok-hyun, a senior official from the Seoul Central District Prosecutors Office. It went ahead despite opposition from some shareholders who said the deal unfairly benefited the Lee family. Lee was freed in February 2018 after the Seoul High Court reduced his term to 2 years and suspended his sentence, overturning key convictions. However, months later the Supreme Court sent the case back to the High Court, saying that the amount of bribes Lee was judged to have offered was undervalued. Some legal experts say Lee could be sentenced to another term in jail if convicted again.
Samsung touts $2,000 foldable phone as a 'VIP' experience
In this undated photo provided by Samsung, Samsung's foldable phone is displayed. The phone, dubbed the Z Fold2, will include a VIP package that will provide access to fancy restaurants and golf clubs to supplement the device's multipurpose design. The phone, dubbed the Z Fold2, will include a VIP package that will provide access to fancy restaurants and golf clubs to supplement the device's multipurpose design. That will give the Z Fold2 a slight jump on Apple's next wave of iPhones. Even with this year's improvements, the Z Fold2 will require special care that Samsung will explain in instructions accompanying the device.
Microsoft back in the smartphone business with its new Duo
Microsoft is back to selling smartphones for the first time since it abandoned its mobile business more than four years ago. The company began taking orders Wednesday for the Surface Duo, a new dual-screen Android device that costs $1,399 and begins shipping in September. Microsoft is pitching the Duo as a more useful tool than a conventional smartphone, since it enables users to multitask with two separate apps or web pages at a time. Adding a mobile device to its Surface line of computers is a reversal for Microsoft after its short-lived ownership of smartphone-maker Nokia and its difficulties in transitioning its Windows operating system to the mobile era. Apple and Google's Android long ago cornered the market on phone operating systems, but Microsoft's rare partnership with Google means Duo comes with a suite of Android apps.
Samsung's new phones test consumer demand for pricey gadgets
Samsung aims to lift its sinking smartphone sales with three new models that will test consumer willingness to buy high-priced gadgets during the worst economic downturn since the Great Depression. Such phones are intended for buyers who are strapped for cash or unwilling to pay for pricey phones that don't offer big advances over their predecessors. The upcoming foldable phone, meanwhile, is something of a do-over for Samsung. Samsung is promises that the Z Fold2 will far more durable because it will have ultra-thin glass and tougher hinges for unfolding the device. Consumer response to these phones might foreshadow demand for the next wave of iPhones.
Huawei overtakes Samsung as top smartphone seller: report
LONDON A technology research firm says Huawei has overtaken Samsung to become the world's biggest smartphone seller, as its home market in China emerged from the coronavirus pandemic better off than other economies. While the figure was down 5% compared with a year ago, it was a smaller decline than rival Samsung, which saw smartphone sales slide 30% to 53.7 million. Mainland China now accounts for 70% of Huawei's total smartphone sales, it said. Sanctions aimed at crippling Huawei are part of a broader global battle between the U.S. and China over technology and trade. In China, popular homegrown apps for services like shopping and messaging help fill that gap.
Jimmy Fallon surprises 3 University of Texas students with free tuition
(CNN) - Jimmy Fallon stunned three University of Texas at Austin students with a huge surprise. The Tonight Show with Jimmy Fallon was filming in Austin at Bass Concert Hall when he called up Texans Alma Zamora, Elizabeth Yun, and Fitzgerald Alan onto the stage. As the crowd went wild, and the students excitedly processed the news, Fallon decided to show them the camera feature and brought the students in for a selfie. "Since we're the Tonight Show and we're at UT, Samsung wanted to take it up a notch. In an announcement, Samsung said it had worked with the university to find the three students, "all academically successful student leaders."
Tech stocks rally in Asia on news of pending Huawei reprieve
HONG KONG - Asian markets edged up on Monday, following last week's gains on Wall Street as well as news of a potential reprieve for Huawei. South Korea's Kospi and Hong Kong's Hang Seng each rose 1.3%, and the Shanghai Composite was up 0.7%. That reprieve would have an immediate effect on American companies restricted from supplying to Huawei, but global supply chains would also get a lift if the Chinese tech company were to ramp up production. Huawei, the world's largest telecommunications company and a leading smartphone brand, has become a pawn in the larger US-China trade war. Ross said Monday that the United States is engaged in a "long overdue" overhaul of its trade relationship with China.
Samsung teases new 'clamshell' foldable smartphone
(CNN) - Samsung's first shot at a foldable phone is off to a bumpy start, but it appears the company has more plans for the concept in the pipeline. The company teased at its annual Samsung Developer Conference on Tuesday a mobile device with a "clamshell" form factor. Samsung didn't provide too many details on the concept, but a Samsung spokesperson confirmed it is "working on advancing new foldable form factors and bringing a new foldable device to market." In late September, the Samsung Galaxy Fold, which folds like a book, finally hit stores following several months of delays. But taking a folding screen from concept to a working device has proven to be a monumental engineering challenge.
Samsung SpaceSelfie balloon device crash-lands on Michigan farm
CNN image(CNN) - Earth to Samsung! A Samsung device sent into the stratosphere to take space-themed selfies came back to Earth with a thud Saturday morning. A Samsung spokesperson emailed CNN a statement saying no one was hurt when the balloon made an early soft landing in rural Gratiot County. "Earlier today, Samsung Europe's SpaceSelfie balloon came back down to earth. The sheriff's office's investigation determined that the Samsung SpaceSelfie was launched by a company called Raven Aerostar.
Samsung: Remove Galaxy S10, Note 10 screen protectors now
The company is warning customers who own the latest Galaxy S10 and Galaxy Note 10 phones to remove their screen protectors until Samsung releases a software update. Samsung is responding to the incident with a bug fix, and it is telling customers not to use "certain silicone screen protecting cases." The issue affects all models of Samsung's new S10 and Note 10 phones, which can scan people's fingers through the phones' screens. The company provides a screen protector that is specially designed for the ultrasonic fingerprint reader, which costs at least $20 to replace. Two years ago, Samsung recalled the Galaxy Note 7 after some customers' batteries caught fire.
Samsung profits drop, worst may be over
SEOUL, South Korea - Samsung is warning investors that its operating profit likely plunged 56% in the third quarter as the company continues to struggle with sluggish demand for memory chips. The South Korean technology giant said Tuesday that it expects to make an operating profit of roughly 7.7 trillion Korean won ($6.5 billion) for the quarter that ended in September, down from 17.57 trillion Korean won ($14.7 billion) for the same period a year ago. But that forecast beat the 7.1 trillion won that analysts expected, according to Refinitiv. It said it expects sales to fall 5% to 62 trillion won ($52 billion). Samsung's profits have taken a beating over the past year, largely because of a slump in its memory chip business.
Samsung's Galaxy Fold hits US stores this week
(CNN) - Samsung's Galaxy Fold will officially go on sale later this week in the United States after several months of delays. The phone is launching on Friday at select locations of Best Buy, AT&T outlets and Samsung Experience Stores. The Galaxy Fold is a 4.6 inch-smartphone that opens up into a 7.3-inch tablet. Noticeably absent from the launch is T-Mobile, which initially offered pre-orders in April but had to give buyers' refunds after Samsung scrapped the launch. AT&T, which owns CNN parent company WarnerMedia, also canceled preorders and offered customers a $100 gift card for the inconvenience.
Samsung will release Galaxy Fold in South Korea on Friday
(CNN) - Samsung on Thursday announced the launch of its expensive and troubled Galaxy Fold, which will become the first foldable phone to hit the market. The foldable phone, which will retail for $1,980, was originally supposed to hit stores in April. Those plans were shelved after reports from early users about how quickly the device broke. Consumers will likely be hesitant to buy the Galaxy Fold because of its hefty price tag and the early reports of broken screens, one analyst noted in July. Samsung's new phone will go head-to-head with rival smartphone maker Huawei's foldable phone.
Huawei needs Android rival to succeed where Samsung, Microsoft failed
Rolling out a new operating system is pretty easy, especially for a big tech firm like Huawei. Even Samsung, which makes more smartphones than anyone else, has struggled to gain traction with its own operating system Tizen. Google problemHuawei has a pretty obvious reason for wanting to create its own operating system. Consumers who already owned Huawei smartphones were largely unaffected, Google said in May. Last quarter, global sales accounted for about one third of Huawei's smartphone shipments, according to IDC.
Samsung's Note10 finally bids farewell to headphone jack
The Note line makes up only a small percentage of Samsung's overall sales each year, compared to its flagship Galaxy S devices. In a press briefing ahead of the event, Samsung declined to share whether the next-generation Samsung Galaxy S smartphone, which typically launches in February, would forgo a headphone headjack as well. Samsung Note10 users will be able to access notes, texts and phone calls directly from their computers running Windows -- similar to how Messages currently works on Mac computers. Some early testers of Samsung's other 5G smartphone, the Galaxy S 5G, reportedly experienced overheating issues when the devices reached a certain temperature. For the Note10 5G, Samsung is adding a slimmer vapor cooling system to help cut down on this.
Samsung profit drops 56% in second quarter
Ethan Miller/Getty ImagesSEOUL, South Korea - Samsung stock dropped on Wednesday after the world's biggest smartphone maker reported a 56% fall in its operating profit for the second quarter, citing price declines in its memory chip business. Operating profit was 6.6 trillion Korean won ($5.6 billion) for the three-month period that ended June, compared with 14.87 trillion Korean won ($12.6 billion) the same period a year ago, Samsung said in a statement on Wednesday. Revenue also dropped 4% year on year to 56.13 trillion Korean won ($47.5 billion) during the same period. Samsung's core semiconductor business reported an operating profit of 3.4 trillion Korean won ($2.9 billion) for the second quarter, down 71% from a year earlier. Correction: An earlier version of this story gave an incorrect figure for second quarter revenue.
Samsung's Galaxy Fold out this September
(CNN) - Samsung has fixed its expensive and troubled Galaxy Fold and will make it available in select markets beginning in September. The company has worked to win back customer trust following its Galaxy Note 7 fiasco in 2016. Despite Thursday's news, consumers will likely be hesitant to buy the Galaxy Fold because of its hefty price tag and the early reports of broken screens, said Will Wong, an analyst with research firm IDC. But he added that the Fold hiccup is unlikely to affect Samsung's reputation or market position since there isn't much demand for foldable devices right now. Samsung's new phone will go head-to-head with rival smartphone maker Huawei's foldable phone.
Samsung warns profits fell 56% as memory chips, smartphones struggle
Chung Sung-Jun/Getty ImagesSEOUL, South Korea - Samsung is warning investors that its second quarter profit likely plunged 56%, as the company continued to struggle with sluggish demand for memory chips and smartphones. The earnings forecast was better than analysts' downbeat expectations, thanks to what Samsung called a "one-time gain related to the display business." Samsung's profits have taken a beating over the past year, largely because of a slump in its memory chip business. In the month immediately following the restriction, Huawei said it saw a 40% drop in overseas sales of its smartphone business. SK Kim, an analyst with brokerage firm Daiwa Capital Markets, said Huawei likely helped memory chip sales in the second quarter as the company was stockpiling supplies.
Samsung faces lawsuit over water resistant smartphone claims
Australian officials say ads like this one, touting Samsung's phone as water resistant, were false and misleading. (CNN) - Samsung is in trouble in Australia over ads that suggested its Galaxy smartphones could be used while swimming. The country's competition regulator filed a lawsuit against Samsung, alleging that the ads were misleading. Samsung touted its devices as being water resistant up to 1.5 meters deep for 30 minutes, and showed them being used in oceans and swimming pools, the regulator added. The Australian regulator said that Samsung didn't have "a reasonable basis" for claiming its phones were water resistant because the company refused to honor warranties on some devices that were damaged when used in water.
Samsung hints at Galaxy Note 10 launch date
(CNN) - Samsung has revealed the date for its next press event, at which it's expected to unveil the Galaxy Note 10. The company announced that an "Unpacked" event will take place on Aug. 7, in New York. At the Unpacked event last year, the company also announced the Galaxy Home smart speaker. Samsung is still dealing with the fallout from the bungled launch of the Galaxy Fold. Samsung announced the phone in February.