Archive Month: January 2019

Iranian crude oil imports by Asia’s top four buyers dropped to the lowest volume in three years in 2018 amid U.S. sanctions on Tehran, but China and India stepped up imports in December after getting waivers from Washington.

Asia’s top four buyers of Iranian crude — China, India, Japan and South Korea — imported a total 1.31 million barrels per day (bpd) in 2018, down 21 percent from the previous year, data from the countries showed.

That was the lowest since about 1 million bpd in 2015, when a previous round of sanctions on Iran led to a sharp drop in Asian imports, Reuters data showed.

The United States reimposed sanctions on Iran’s oil exports last November as it wants to negotiate a new nuclear deal with the country. U.S. officials have said they intend to reduce the Islamic Republic’s oil exports to zero.

On a monthly basis, Asia’s imports from Iran rebounded to a three-month high of 761,593 bpd in December as China and India stepped up purchases after Washington granted eight countries waivers from the Iranian sanctions for 180 days from the start of November.

“We expect Iranian exports to Asia to remain stable at around 800,000 barrels per day until May, when the waivers expire,” said Energy Aspects analyst Riccardo Fabiani.

In December, China’s imports climbed above 500,000 bpd for the first time in three months, while India’s imports rose above 302,000 bpd.

Japan and South Korea did not import any Iranian crude that month because they were still sorting out payment and shipping issues, but the countries have resumed oil lifting from Iran this month.

During the 180-day period, China can import up to 360,000 bpd of Iranian oil, while India’s imports are restricted to 300,000 bpd. South Korea can import up to 200,000 bpd of Iranian condensate.

“After May, it will all depend on the U.S. administration’s decisions, which at the moment remain completely obscure. On balance, they are likely to extend the current waivers, although rumors are that there could be a significant cut in waivered volumes,” Fabiani said.

As a precaution, Indian Oil Corp, the country’s top refiner, is looking for an annual deal to buy U.S. crude as it seeks to broaden its oil purchasing options, its chairman said Wednesday.
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Facebook said Thursday it took down hundreds of “inauthentic” accounts from Iran that were part of a vast manipulation campaign operating in more than 20 countries.

The world’s biggest social network said it removed 783 pages, groups and accounts “for engaging in coordinated inauthentic behavior tied to Iran.”

The pages were part of a campaign to promote Iranian interests in various countries by creating fake identities as residents of those nations, according to a statement by Nathaniel Gleicher, head of cybersecurity policy at Facebook.

The announcement was the latest by Facebook as it seeks to stamp out efforts by state actors and others to manipulate the social network using fraudulent accounts.

“We are constantly working to detect and stop this type of activity because we don’t want our services to be used to manipulate people,” Gleicher said.

“We’re taking down these pages, groups and accounts based on their behavior, not the content they post. In this case, the people behind this activity coordinated with one another and used fake accounts to misrepresent themselves, and that was the basis for our action.”

The operators “typically represented themselves as locals, often using fake accounts, and posted news stories on current events,” including “commentary that repurposed Iranian state media’s reporting on topics like Israel-Palestine relations and the conflicts in Syria and Yemen,” Gleicher said.

“Although the people behind this activity attempted to conceal their identities, our manual review linked these accounts to Iran.”

The operation dating back to as early as 2010 had 262 pages, 356 accounts, and three groups on Facebook, as well as 162 accounts on Instagram and were followed by about two million users.

Facebook said the fake accounts were part of an influence campaign that operated in Afghanistan, Albania, Algeria, Bahrain, Egypt, France, Germany, India, Indonesia, Iran, Iraq, Israel, Libya, Mexico, Morocco, Pakistan, Qatar, Saudi Arabia, Serbia, South Africa, Spain, Sudan, Syria, Tunisia, U.S., and Yemen.

Facebook began looking into these kinds of activities after revelations of Russian influence campaigns during the 2016 U.S. election, aimed at sowing discord.
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Ghirardelli and Russell Stover have agreed to pay $750,000 in fines after prosecutors in California said they offered a little chocolate in a lot of wrapping.

Prosecutors in Sacramento, San Joaquin, Shasta, Fresno, Santa Cruz and Yolo counties sued the candy makers, alleging they misled consumers by selling chocolate products in containers that were oversized or “predominantly empty.”

Prosecutors also alleged that Ghirardelli offered one chocolate product containing less cocoa than advertised.

The firms didn’t acknowledge any wrongdoing but agreed to change their packaging under a settlement approved earlier this month. Some packages will shrink or will have a transparent window so consumers can look inside.

San Francisco-based Ghirardelli and Kansas City-based Russell Stover are owned by a Swiss company, Lindt & Sprungli.
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Apple says Facebook can no longer distribute an app that paid users, including teenagers, to extensively track their phone and web use.

In doing so, Apple closed off Facebook’s efforts to sidestep Apple’s app store and its tighter rules on privacy.

The tech blog TechCrunch reported late Tuesday that Facebook paid people about $20 a month to install and use the Facebook Research app. While Facebook says this was done with permission, the company has a history of defining “permission” loosely and obscuring what data it collects.

“I don’t think they make it very clear to users precisely what level of access they were granting when they gave permission,” mobile app security researcher Will Strafach said Wednesday. “There is simply no way the users understood this.”

He said Facebook’s claim that users understood the scope of data collection was “muddying the waters.”

Facebook says fewer than 5 percent of the app’s users were teens and they had parental permission. Nonetheless, the revelation is yet another blemish on Facebook’s track record on privacy and could invite further regulatory scrutiny.

And it comes less than a week after court documents revealed that Facebook allowed children to rack up huge bills on digital games and that it had rejected recommendations for addressing it for fear of hurting revenue growth.

For now, the app appears to be available for Android phones, though not through Google’s main app store. Google had no comment Wednesday.

Apple said Facebook was distributing Facebook Research through an internal-distribution mechanism meant for company employees, not outsiders. Apple has revoked that capability.

TechCrunch reported separately Wednesday that Google was using the same privileged access to Apple’s mobile operating system for a market-research app, Screenwise Meter. Asked about it by The Associated Press, Google said it had disabled the app on Apple devices and apologized for its “mistake.”

The company said Google had always been “upfront with users” about how it used data collected by the app, which offered users points that could be accrued for gift cards. In contrast to the Facebook Research app, Google said its Screenwise Meter app never asked users to let the company circumvent network encryption, meaning it is far less intrusive.

Facebook is still permitted to distribute apps through Apple’s app store, though such apps are reviewed by Apple ahead of time. And Apple’s move Wednesday restricts Facebook’s ability to test those apps — including core apps such as Facebook and Instagram — before they are released through the app store.

Facebook previously pulled an app called Onavo Protect from Apple’s app store because of its stricter requirements. But Strafach, who dismantled the Facebook Research app on TechCrunch’s behalf, told the AP that it was mostly Onavo repackaged and rebranded, as the two apps shared about 98 percent of their code.

As of Wednesday, a disclosure form on Betabound, one of the services that distributed Facebook Research, informed prospective users that by installing Facebook Research, they are letting Facebook collect a range of data. This includes information on apps users have installed, when they use them and what they do on them. Information is also collected on how other people interact with users and their content within those apps, according to the disclosure.

Betabound warned that Facebook may collect information even when an app or web browser uses encryption.

Strafach said emails, social media activities, private messages and just about anything else could be intercepted. He said the only data absolutely safe from snooping are from services, such as Signal and Apple’s iMessages, that fully encrypt messages prior to transmission, a method known as end-to-end encryption.

Strafach, who is CEO of Guardian Mobile Firewall, said he was aghast to discover Facebook caught red-handed violating Apple’s trust.

He said such traffic-capturing tools are only supposed to be for trusted partners to use internally. Instead, he said Facebook was scooping up all incoming and outgoing data traffic from unwitting members of the public — in an app geared toward teenagers.

“This is very flagrantly not allowed,” Strafach said. “It’s mind-blowing how defiant Facebook was acting.”

 
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President Donald Trump will sign an executive order Thursday pushing those who receive federal funds to “buy American.” The aim is to boost U.S. manufacturing.

Peter Navarro, director of the White House National Trade Council, told reporters during a telephone briefing the policies are helping workers who “are blue collar, Trump people.” Later he amended that, saying he “every American is a Trump person” because Trump’s economic policies affect everyone.

Navarro said the order would affect federal financial assistance, which includes everything from loans and grants to insurance and interest subsidies.

He says some 30 federal agencies award over $700 billion in such aid each year. Recipients working on projects like bridges and sewer systems will be encouraged to use American products.

 
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Global smartphone sales saw their worst contraction ever in 2018, and the outlook for 2019 isn’t much better, new surveys show.

Worldwide handset volumes declined 4.1 percent in 2018 to a total of 1.4 billion units shipped for the full year, according to research firm IDC, which sees a potential for further declines this year.

“Globally the smartphone market is a mess right now,” said IDC analyst Ryan Reith.

“Outside of a handful of high-growth markets like India, Indonesia, (South) Korea and Vietnam, we did not see a lot of positive activity in 2018.”

Reith said the market has been hit by consumers waiting longer to replace their phones, frustration around the high cost of premium devices, and political and economic uncertainty.

The Chinese market, which accounts for roughly 30 percent of smartphone sales, was especially hard hit with a 10 percent drop, according to IDC’s survey, which was released Wednesday.

IDC said the top five smartphone makers have become stronger and now account for 69 percent of worldwide sales, up from 63 percent a year ago.

Samsung remained the number one handset maker with a 20.8 percent share despite an eight percent sales slump for the year, IDC said.

Apple managed to recapture the number two position with a 14.9 percent market share, moving ahead of Huawei at 14.7 percent, the survey found.

IDC said fourth-quarter smartphone sales fell 4.9 percent – the fifth consecutive quarter of decline.

“The challenging holiday quarter closes out the worst year ever for smartphone shipments,” IDC said in its report.

A separate report by Counterpoint Research showed similar findings, estimating a seven percent drop in the fourth quarter and four percent drop for the full year.

“The collective smartphone shipment growth of emerging markets such as India, Indonesia, Vietnam, Russia and others was not enough to offset the decline in China,” said Counterpoint associate director Tarun Pathak.

 
…

Державне підприємство «Медичні закупівлі», яке має перебрати на себе повноваження із закупівель ліків та медичних виробів у міжнародних організацій, оголосило перші тендери, повідомляє Міністерство охорони здоров’я на своєму сайті.

За цією інформацією, йдеться про закупівлі ліків від супутніх інфекцій при ВІЛ та побічних реакцій від терапії, а також медичних респіраторів у межах програм Глобального фонду.

«У цілому у 2019 році «Медичні закупівлі України» мають не лише провести десятки тендерів, а й застосувати нові інструменти закупівель. Наприклад, електронні каталоги (е-каталоги), що дозволять замовникам, в першу чергу – невеликим регіональним медичним закладам, – швидко і зручно замовляти типові препарати і вироби за принципом інтернет-магазину», – мовиться у повідомленні.

Міністерство охорони здоров’я України в 2015 році передало міжнародним організаціям ПРООН, ЮНІСЕФ та компанії Crown Agents право проводити державні закупівлі медичних препаратів. Це, насамперед, ліки з онкології, ВІЛ/СНІДу, туберкульозу, гепатиту, дитячої гемофілії і вакцинації.

Читайте також: Від міжнародних організацій – до нацагенції: як відбувається і як зміниться закупівля ліків в Україні

Потім цю функцію мала перебрати новостворена держагенція із 2019-го, але врешті було ухвалено рішення відтермінувати її офіційний запуск. МОЗ обіцяє запустити повноцінну роботу національної агенції із закупівель ліків із наступного року, а нинішній рік має стати перехідним.

 
…

Державне підприємство «Медичні закупівлі», яке має перебрати на себе повноваження із закупівель ліків та медичних виробів у міжнародних організацій, оголосило перші тендери, повідомляє Міністерство охорони здоров’я на своєму сайті.

За цією інформацією, йдеться про закупівлі ліків від супутніх інфекцій при ВІЛ та побічних реакцій від терапії, а також медичних респіраторів у межах програм Глобального фонду.

«У цілому у 2019 році «Медичні закупівлі України» мають не лише провести десятки тендерів, а й застосувати нові інструменти закупівель. Наприклад, електронні каталоги (е-каталоги), що дозволять замовникам, в першу чергу – невеликим регіональним медичним закладам, – швидко і зручно замовляти типові препарати і вироби за принципом інтернет-магазину», – мовиться у повідомленні.

Міністерство охорони здоров’я України в 2015 році передало міжнародним організаціям ПРООН, ЮНІСЕФ та компанії Crown Agents право проводити державні закупівлі медичних препаратів міжнародним організаціям. Це, насамперед, ліки з онкології, ВІЛ/СНІДу, туберкульозу, гепатиту, дитячої гемофілії і вакцинації.

Читайте також: Від міжнародних організацій – до нацагенції: як відбувається і як зміниться закупівля ліків в Україні

Потім цю функцію мала перебрати новостворена держагенція із 2019-го, але врешті було ухвалено рішення відтермінувати її офіційний запуск. МОЗ обіцяє запустити повноцінну роботу національної агенції із закупівель ліків із наступного року, а нинішній рік має стати перехідним.

 
…

Thousands of commuters flock to Manila’s railway tracks every day, but rather than boarding the trains, they climb on to wooden carts pushed along the tracks, to avoid the Philippine capital’s infamous traffic gridlock.

The trolleys, as the carts are known, most of them fitted with colorful umbrellas for shade from the sun, can seat up to 10 people each, who pay as little as 20 U.S. cents per ride, cheaper than most train rides.

“I do this because it gives us money that’s easy to earn,” said Reynaldo Diaz, 40, who is one of more than 100 operators, also known as “trolley boys,” who push the carts along the 28-km (17-mile) track, most wearing flimsy flip-flops on their feet.

“It’s better than stealing from others,” said Diaz, adding that he earned around $10 a day, just enough for his family to get by. A trolley boy since he was 17, he lives in a makeshift shelter beside the track with his two sons.

Diaz said the trolley boys were just “borrowing” the track from the Philippine National Railways, but the state-owned train company has moved to halt the trolley service after the media drew attention to its dangers recently.

The risk arises because those pushing and riding the trolleys have to watch out for the trains to avoid collisions.

“Of course we get scared of the trains,” said Jun Albeza, 32, who has been a trolley boy for four years after he was laid off from plumbing and construction jobs.

“That’s why, whenever we’re pushing these trolleys, we always look back, so we can see if there’s a train coming. Those in front of us will give us a heads-up too.”

When a train approaches, the trolley boys quickly grab the lightweight carts off the track and jump out of the way along with their riders.

Still, there have been no fatal accidents since the makeshift service started decades ago, some of the trolley boys told Reuters.

A Manila police officer confirmed that records showed no casualties related to the trolley boys.

“It is really dangerous and should not be allowed, But we understand that it’s their livelihood,” said the officer, Bryan Silvan. “They’re like mushrooms that just popped up along the tracks and they even have their own association.”

When the Philippine National Railways began operation in the 1960s, its network of more than 100 stations extended to provinces outside Manila.

But neglect and natural disasters have since caused it to cut back operations by two-thirds, even as the capital’s population has ballooned to about 13 million.

For office workers and students, the minutes shaved off daily commutes justify the risks of trolley rides.

“The distance to our workplaces is actually shorter through this route,” said one office worker, Charlette Magtrayo.
…

U.S. lawmakers on Wednesday introduced legislation to limit the president’s power to levy import tariffs for national security reasons. The bills face an uncertain future but underscore bipartisan concerns on Capitol Hill over the rising costs of the Trump administration’s trade policies.

The United States in 2018 slapped duties on aluminum and steel from other countries, drawing criticism from lawmakers who support free trade and complaints of rising supply chain costs across business sectors.

Two bipartisan groups of lawmakers Wednesday introduced legislation known as the Bicameral Congressional Trade Authority Act in the Senate and the House of Representatives.

The bills would require Trump to have congressional approval before taking trade actions like tariffs and quotas under Section 232 of the Trade Expansion Act of 1962. The law currently allows the president to impose such tariffs without approval from Capitol Hill.

“The imposition of these taxes, under the false pretense of national security (Section 232), is weakening our economy, threatening American jobs, and eroding our credibility with other nations,” said Republican Senator Pat Toomey of Pennsylvania, co-sponsor of the Senate bill.

Toomey led a similar push last year that did not go to a vote.

It is unclear that Congress would consider taking up such legislation now. Still, the bills underscore mounting pressure from lawmakers to address concerns over tariffs, especially those on Canada and Mexico as lawmakers prepare to vote on a new North American trade deal agreed to late last year.

​Republican Chuck Grassley from Iowa, chairman of the Senate Finance Committee, earlier pressed the Trump administration to lift tariffs on steel and aluminum imports from Canada and Mexico before Congress begins considering legislation to implement the new pact.

Numerous business and agricultural groups have come out in support of the United States-Mexico-Canada agreement, but have said its benefits will be limited so long as the U.S. tariffs and retaliatory tariffs from Canada and Mexico remain in place.

Companies are able to request exemptions from the steel and aluminum tariffs, but the process has been plagued by delays and uncertainty.

“Virginia consumers and industries like craft beer and agriculture are hurting because of the president’s steel and aluminum tariffs,” said Democratic Senator Mark Warner, co-sponsor of the Senate legislation. “This bill would roll them back.”

Republicans Mike Gallagher of Wisconsin and Darin LaHood of Illinois and Democrats Ron Kind of Wisconsin and Jimmy Panetta of California introduced the House legislation.
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The Trump Organization, responding to claims that some of its workers were in the U.S. illegally, said on Wednesday that it will use the E-Verify electronic system at all of its properties to check employees’ documentation.

A lawyer for a dozen immigrant workers at the Trump National Golf Club in New York’s Westchester County said recently that they were fired on Jan. 18. He said many had worked there for a dozen or more years. Workers at another Trump club in Bedminster, New Jersey, came forward last month to allege managers there had hired them knowing they were in the country illegally.

“We are actively engaged in uniforming this process across our properties and will institute E-verify at any property not currently utilizing this system,” Eric Trump, executive vice president of the Trump Organization, said in a statement provided to The Associated Press. “As a company we take this obligation very seriously and when faced with a situation in which an employee has presented false and fraudulent documentation, we will take appropriate action.”

“I must say, for me personally, this whole thing is truly heartbreaking,” he added. “Our employees are like family but when presented with fake documents, an employer has little choice.”

Launched in 1996, the E-Verify system allows employers to check documentation submitted by job applicants with records at the Department of Homeland Security and the Social Security Administration to see whether they are authorized to work. 

During his presidential campaign, Republican Donald Trump called for all employers to use the federal government online E-Verify system. He told MSNBC in 2016 that he uses it at his properties, and that there should be a “huge financial penalty” for companies that hire workers who are in the country illegally.

Several of those workers from Trump’s properties paid visits to Congressional offices this week in hopes of raising support for their fight against possible deportation. One Democrat, New Jersey Rep. Bonnie Watson Coleman, confirmed Wednesday that she had invited a maid who had cleaned President Trump’s rooms at Bedminster as her guest at his State of the Union speech.

The maid, Victorina Morales, was featured in a New York Times story last month titled “Making President Trump’s Bed: A Housekeeper Without Papers.” She has said that managers there knew she was living in the country illegally, helped her obtain false documentation and that she was physically abused by a supervisor.

Morales’ lawyer, Anibal Romero, said that Morales had accepted the invitation.

The Trump Organization has said it does not tolerate employing workers who are living in the U.S. without legal permission, and any problems with hiring is not unique to the company.

“It demonstrates that our immigration system is severely broken and needs to be fixed immediately,” Eric Trump said in his statement. “It is my greatest hope that our ‘lawmakers’ return to work and actually do their jobs.”

President Trump has repeatedly cast the millions of immigrants in the country illegally as a scourge on the health of the economy, taking jobs from American citizens. He has said they also bring drugs and crime over the border.

He turned over day-to-day management of his business to Eric and his other adult son, Donald Jr., when he took the oath of office two years ago. The Trump Organization owns or manages 17 golf clubs around the world.
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Американський фондовий ринок позитивно відреагував на рішення Федеральної резервної системи не підвищувати ключову ставку, яка є орієнтиром для кредитування в усій економіці США. Індекс S&P 500 додав близько 1,5%, індекс Dow Jones зріс у межах 2%.

«З огляду на глобальні економічні та фінансові події, а також на інфляційний тиск, комітет виявить терпіння, визначаючи в майбутньому коригування цільового діапазону ставки по федеральних фондах», – ідеться в комюніке, оприлюдненому за підсумками засідання 30 січня Федеральною резервною системою, яка в США виконує функції центробанку.

Нині облікова ставка у США становить від 2,25 до 2,5%.
…

An Egyptian court has sentenced the deputy governor of the country’s second-largest city to 12 years in prison on corruption charges.

The Cairo criminal court also sentenced Souad el-Kholy, deputy governor of the Mediterranean city of Alexandria, to a one-year suspended sentence for bribery, profiteering and squandering public funds on Wednesday. The court acquitted five local businessmen in the same case.

El-Kholy can appeal the verdict against her.

She became Alexandria’s deputy governor in 2015 and was arrested two years later, in October 2017, in a case linked to illegal seizures of state land, illegal construction and building violations. She is the most senior female official to be arrested on corruption charges.

Alexandria is notorious for illegal construction and demolition of historical buildings to make way for high-rise apartment towers.
…

Nissan’s former chairman Carlos Ghosn, in his first interview since his arrest in November, blamed fellow executives opposed to forging closer ties with the automaker’s French alliance partner Renault for scheming against him, the Japanese newspaper Nikkei reported Wednesday.

The financial daily said it spoke with Ghosn for 20 minutes earlier in the day at the Tokyo Detention Center, where the 64-year-old star executive has been held since Nov. 19.

Earlier, Ghosn only was allowed visits by his lawyers and embassy officials.

Prosecutors have charged Ghosn with falsifying financial reports in under-reporting his compensation. He has also been indicted on charges of breach of trust related to his handling of investment losses and to payments made to a Saudi businessman.

In the interview, Ghosn reiterated that he is innocent and said others in the company schemed to force him out with a “plot and treason.”

“People translated strong leadership to (mean) dictator, to distort reality,” he told the Nikkei. It was for the “purpose of getting rid of me,” he was quoted as saying.

Nissan Motor Co. defended itself, saying prosecutors took action following an internal investigation set off by whistleblowers in the company.

“The sole cause of this chain of events is the misconduct led by Ghosn and Kelly,” company spokesman Nicholas Maxfield said. He was referring to Greg Kelly, another executive who has been charged with collaborating with Ghosn in underreporting his compensation. Kelly was released on bail last month and remains in Tokyo.

French government spokesman Benjamin Griveaux declined to comment when asked about Ghosn’s interview.

Authorities have rejected Ghosn’s requests for bail, saying he might tamper with evidence or possibly flee.

Ghosn told the Nikkei he had no intention of fleeing and wants to defend himself in court. But he questioned why he could not gain release on bail.

“I don’t understand why I am still being detained,” he was quoted as saying, adding he could not tamper with evidence because “All the evidence is with Nissan.”

The newspaper said Ghosn did not appear tired or flustered and when asked about his health, he said he was “doing fine.”

“In life there are ups and downs,” the newspaper quoted him as saying.

Renault SA owns 43 percent of Nissan. It sent Ghosn to Japan in 1999 to help lead the Japanese automaker’s turnaround from near bankruptcy. Ghosn said he had discussed a “plan to integrate” Nissan with Renault and their smaller alliance partner Mitsubishi Motors Corp. with Nissan’s CEO, Hiroto Saikawa, in September.

The plan was to bring Nissan, Renault and Mitsubishi Motors closer together and ensure they had “autonomy under one holding company,” he told the newspaper.

Nissan dismissed Ghosn as chairman shortly after his arrest. He was also dismissed as chairman of Mitsubishi. Earlier this month, he resigned as chairman and CEO of Renault and was replaced by Jean-Donimique Senard, the former chairman of Michelin.

Ghosn refuted various allegations against him, saying most of the alleged violations were approved by Nissan’s legal department or other senior executives.

He also denied any wrongdoing in buying expensive homes in Brazil and Lebanon, saying he needed a safe place to work and meet with people. The homes were no secret and if they had been a problem, he should have been consulted, Ghosn said.
…

Apple hoped to offset slowing demand for iPhones by raising the prices of its most important product, but that strategy seems to have backfired after sales sagged during the holiday shopping season.

Results released Tuesday revealed the magnitude of the iPhone slump – a 15 percent drop in revenue from the previous year. That decline in Apple’s most profitable product caused Apple’s total earnings for the October-December quarter to dip slightly to $20 billion.

Now, CEO Tim Cook is grappling with his toughest challenge since replacing co-founder Steve Jobs 7 years ago. Even as he tries to boost iPhone sales, Cook also must prove that Apple can still thrive even if demand doesn’t rebound. 

It figures to be an uphill battle, given Apple’s stock has lost one-third of its value in less than four months, erasing about $370 billion in shareholder wealth. 

Cook rattled Wall Street in early January by disclosing the company had missed its own revenue projections for the first time in 15 years. The last time that happened, the iPod was just beginning to transform Apple.

​”This is the defining moment for Cook,” said Wedbush Securities analyst Daniel Ives. “He has lost some credibility on Wall Street, so now he will have to do some hand-holding as the company enters this next chapter.” 

The results for the October-December period were slightly above the expectations analysts lowered after Cook’s Jan. 2 warning. Besides the profit decline, Apple’s revenue fell 5 percent from the prior year to $84 billion.

It marked the first time in more than two years that Apple’s quarterly revenue has dropped from the past year. The erosion was caused by the decline of the iPhone, whose sales plunged to $52 billion, down by more than $9 billion from the previous year. 

The past quarter’s letdown intensified the focus on Apple’s forecast for the opening three months of the year as investors try to get a better grasp on iPhone sales until the next models are released in autumn.

Apple predicted its revenue for the January-March period will range from $55 billion to $59 billion. Analysts surveyed by FactSet had been anticipating revenue of about $59 billion.

Investors liked what they read and heard, helping Apple’s stock recoup some of their recent losses. The stock gained nearly 6 percent to $163.50 in extended trading after the report came out.

“We wouldn’t change our position with anyone’s,” Cook reassured analysts during a conference call reviewing the past quarter and the upcoming months.

The company didn’t forecast how many iPhones it will sell, something Apple has done since the product first hit the market in 2007 and transformed society, as well as technology.

Apple is no longer disclosing how many iPhones it shipped after the quarter is completed, a change that Cook announced in November. That unexpected move raised suspicions that Apple was trying to conceal a forthcoming slump in iPhone sales – fears that were realized during the holiday season.

Cook traces most of Apple’s iPhone problems to a weakening economy in China, the company’s second biggest market behind the U.S. The company is also facing tougher competition in China, where homegrown companies such as Huawei and Xiaomi have been winning over consumers in that country with smartphones that have many of the same features as iPhones at lower prices.

Although a trade war started by President Donald Trump last year has hurt China and potentially caused some consumers there to boycott U.S. products, many analysts believe the iPhone’s malaise stems from other issues too.

Among them are higher prices – Apple’s most expensive iPhone now costs $1,350 – for models that aren’t that much better than the previous generation, giving consumers little incentive to stop using the device they already own until it wears out. Apple also gave old iPhones new life last by offering to replace aging batteries for $29, a 70 percent discount.

​”The upgrade cycle has extended, there is no doubt about that,” Cook conceded.

Apple is banking that investors will realize the company can still reap huge profits by selling various services on the 1.4 billion devices running on its software.

That’s one reason why Cook has been touting the robust growth of Apple’s division that collects commissions from paid apps, processes payments, and sells hardware warranty plans and music streaming subscriptions. Apple Music now has more than 50 million subscribers, second to Spotify’s 87 million streaming subscribers through September.

Apple is also preparing to launch a video streaming service to compete against Netflix, though Cook said he wasn’t ready to provide details Tuesday.

The company’s services revenue in the past quarter climbed 19 percent from the prior year to $10.9 billion – more than any other category besides the iPhone.
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