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Smartphone market hurt by supply chain issues in third quarter
Smartphone market hurt by supply chain issues in third quarter
Worldwide shipments of smartphones took a greater hit than expected in the third quarter, declining 6.7% after posting double-digit growth in the first half of 2021, according to an IDC report Thursday. The market researcher attributed the decline to disruption in the supply chain that has been dogging many device manufacturers.
"The supply chain and component shortage issues have finally caught up to the smartphone market, which until now seemed almost immune to this issue despite its adverse impact on many other adjacent industries," Nabila Popal, research director with IDC's Mobility and Consumer Device Trackers, said in a statement. "In all honestly, it was never fully immune to the shortages, but until recently the shortages were not severe enough to cause a decline in shipments and was simply limiting the rate of growth."
Smartphone makers shipped 331.2 million units during the quarter and while shipments were expected to experience a seasonal decline of 2.9%, the actual drop was more dramatic and varied greatly based on regions. Central and Eastern Europe suffered the greatest decline of 23.2%, while the US and Western Europe experienced less severe drops of 0.2% and 4.6%, respectively.
Samsung retained its markets title with a 20.8% share, down from 22.7% in the year-ago quarter, on 69 million units. Apple regained the No. 2 spot by shipping 50.4 million units shipped for a 15.2% marketshare, up from 11.7% a year ago. Xiaomi came in a close third with 44.3 million units shipped for a 13.4% share, up from 13.1% despite shipping 2 million fewer units than a year ago.
In addition to component shortages affecting all vendors, the industry has been hit by other challenges, including stricter testing and quarantining policies, that will affect production well into 2022.
"Despite all efforts to mitigate the impact, all major vendors' production targets for the fourth quarter have been adjusted downwards," Popal said. "With continued strong demand, we don't anticipate the supply-side issues to ease until well into next year."
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Huawei's Mate 40 Pro could be firm's last hurrah in the smartphone world
Huawei's Mate 40 Pro could be firm's last hurrah in the smartphone world
Huawei on Thursday welcomed into the world the latest addition to its flagship lineup: the Mate 40 Pro. But the phone's arrival was bittersweet. The device launched under a dark cloud, with a combination of US sanctions and reputational damage to the company raising the question of whether the Mate 40 Pro will be the last Huawei phone of its kind.
Since 2018, the US government has been imposing increasingly harsh sanctions on Huawei due to the company's purported links to the Chinese Communist Party. That's the reason Huawei's phones, which are popular elsewhere in the world, including Europe, aren't on sale in the US.
It's also why the Mate 40 series is the third lot of Huawei flagships (after the Mate 30 and P40 series) to arrive without access to Google services. Over the past year, Huawei has made great strides to beef up its app offering and homegrown Harmony operating system, but it still doesn't match up to Google and Apple. That's made it hard to recommend Huawei devices over Android rivals.
The lack of access to Android's key services is taking its toll. Despite the company clinging to its No. 1 position in the global smartphone market in the first half of 2022 -- largely because of its strong performance in China -- Huawei's global market share dropped to 16% in August, from 21% in April, according to the latest Monthly Market Report by Counterpoint Research.
In comparison, its closest competitor, Samsung, has jumped from 20% to 22%. Not only has this seen Huawei drop to second in global rankings, it's also created a 6% gap between first and second place.
"Many of the restrictions imposed on Huawei by the US government are beginning to bite now, so it is losing share in many markets outside China," Counterpoint VP of Research Peter Richardson said over email. "Assuming there is no relaxation in the restrictions placed on Huawei by the US administration, it is likely that its market share will continue to suffer."
It's a bad time to be vulnerable if you're a phone manufacturer, because the global 5G rollout is really beginning to gain momentum. Every jump to the next generation of network technology creates wiggle room at the top for a reshuffle. Ambitious companies can use this to their advantage, but just as there are always winners, there are always losers.
The big loser in the leap from 3G to 4G was HTC -- once one of the most popular phone makers in the world, now nowhere to be seen in global rankings. Huawei will be keen to avoid a similar fate.
It's not as though Huawei isn't well prepared for 5G. As one of the world leaders in building 5G equipment, it has an inside knowledge of what's required of 5G devices. Its homegrown Kirin 9000 chip, which powers the Mate 40, is a prime example of this: It's the first and only 5 nanometer, 5G system-on-a-chip with the modem built-in.
Huawei's 5G credentials should put it ahead of the game. But unfortunately, the Kirin 9000 is the last such chipset the company will be able to produce for its phones. US trade restrictions introduced this year mean Huawei no longer has access to many of the components it needs, and the company stopped manufacturing Kirin chips last month.
It's a big loss for the company. Kirin has been the secret sauce allowing Huawei to get ahead of the competition -- particularly setting it apart from rival upstarts from within China. Boosting everything from speed to camera performance, the chip is responsible for many of the things CNET has praised Huawei phones for over the years in our reviews. Two years ago, Huawei touted that an older version of its Kirin chip was smart enough to power a self-driving Porsche.
During a phone briefing this week, Huawei declined to answer any questions about what the loss of Kirin would mean for phones beyond the Mate 40. But without clarity on what post-Kirin Huawei phones might look like, it's hard not to see the Mate 40 as the last of its kind.
"It is a tragedy to see Huawei's difficulties in its smartphone division," said Ben Wood, chief of research at CCS Insight. "Having once been close to challenging Samsung as the market leader for mobile phones, the division is now fighting for survival as it finds it increasingly difficult to get components and its brand is eroded."
For now the company is still the No. 2 phone maker in the world, and the newest addition to the Mate line, which has always been especially popular in China, could help buoy its sales for the next six months or so.
But while this might buy it some time, there's a huge question mark over what's next for Huawei phones. If analyst predictions are correct, the company might need to brace itself for a tumble down the global rankings. One report, from Digitimes Research in Taipei, has Huawei slipping down as far as seventh place by April 2021.
"Outside of China there is a real risk that the Huawei Mate 40 family of devices could be the company's last hurrah in smartphones," said Wood.
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LG exploring options that include scrapping the smartphone business
LG exploring options that include scrapping the smartphone business
Despite recently premiering its new rollable phone tech and capturing its fair share of buzz at the 2021 Consumer Electronics Show,LG may be considering getting out of the smartphone game altogether, according to a Wednesday report by The Korea Herald. The tech giant is facing stiff competition from other manufacturers as it looks to balance a $4.5 billion loss over the past five years.
LG CEO Kwon Bong-seok reportedly sent a memo to employees Wednesday, notifying them that he was considering a range of options for the company's smartphone division, which might include a sale.
"Regardless of any change in the direction of the smartphone business operation, the employment will be maintained, so there is no need to worry," Bong-seok reportedly said.
LG was in the mix among top Android players in the early days of the modern smartphone era, building upon its success in during the candy bar and flip phone period. But as larger conglomerates like Samsung and Huawei took more share and upstarts like OnePlus began luring hardcore enthusiasts, companies like LG were increasingly squeezed out, particularly in the market for top-tier phones where the iPhone and Galaxy S family has long dominated.
After years of experimenting with gimmicks like an option for modular parts or leather backing, LG's lineup of flagship phones over the last three years have largely been conservative, offering high-end specs and a nondescript look for a moderate price. That changed over the last few months with the dual-swiveling screen LG Wing, which launched in the fall, and the Rollable unveiled at CES. The buzz from these phones, however, haven't changed the reality that the business has faced significant financial headwinds over the last several years.
"Since the competition in the global market for mobile devices is getting fiercer, it is about time for LG to make a cold judgment and the best choice," an LG official told The Korea Herald. "The company is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business."
An LG spokesman confirmed the memo to CNET, noting that the company was exploring a variety of options. "Currently, nothing has been finalized and commenting further would only be speculation," said LG spokesman Ken Hong.
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Apple's iPhone 13 leads to company's largest revenue and profit in history, despite parts shortages
Apple's iPhone 13 leads to company's largest revenue and profit in history, despite parts shortages
Apple's iPhone marked its 15th year on the market with its strongest sales ever, helping push the tech giant's sales and profits to all-time highs despite the continued spread of the coronavirus pandemic and supply chain constraints.
The demand for Apple's smartphone, in a line ranging from the $699 iPhone 13 Mini to the $1,099 iPhone 13 Pro Max, was so high during the three months ending in December, that sales rose more than 9%, to $71.6 billion. That was more than half the company's overall revenue, which itself rose to $123.94 billion, up double digits from last year.
Apple CEO Tim Cook noted that the iPhone held top market-share spots around the world, including in the US and Australia, where it was among the top five, China, where it was among the top four, and the UK, where it nabbed two of the top three slots.
"We knew that we had the beginnings of something fundamentally transformative," Cook said in a conference call with analysts, remarking on the iPhone's 2007 launch. "None of us could have predicted the incredible and meaningful impact it would have on all of our lives."
Apple's stock rose more than 3%, to $163.73 per share, after closing regular trading roughly flat for the day. Investors pushed the company's shares above $3 trillion for a short period earlier this month before they fell about 12% with broader market fluctuations.
Apple's latest financial disclosures are just the most recent sign of how the coronavirus pandemic has affected the world economy in radically different ways. Though many businesses are struggling, our reliance on big tech appears to be fueling increased financial performance across the industry. But the success isn't the same for all these companies.
The iPhone 13 Pro, making a splash.
Andrew Hoyle/CNET
Microsoft, which announced last week that it plans to buy game maker Activision Blizzard for an eye-watering $68.7 billion, said its second fiscal quarter sales jumped 20%, while profits rose 21%. Netflix, meanwhile, said its subscriber base grew slower than expected during the holidays. Crucially, the company forecast subscriber growth far below analyst expectations, prompting its stock to plummet 25% after the news.
Even Apple had a dark spot in its report. The company's CFO, Luca Maestri, said continued supply chain issues cost Apple more than $6 billion in sales over the holidays, something he hopes will decrease by March.
"The level of constraint will depend a lot on other companies -- what will be the demand for chips from other companies and other industries. It's difficult for us to predict, so we try to focus on the short term," he told Reuters in an interview Thursday.
Apple said iPad sales in particular were affected, marking an uncharacteristic drop of 14% during the holidays amid "very significant" supply shortages and in spite of "very strong" demand across its product line.
"Despite the supply shortages, our installed base of iPads reached a new all-time high during the quarter," Maestri said on the conference call with analysts. He added that about half the customers purchasing an iPad were new to the product.
Apple's latest MacBook Pro laptops got positive marks from reviewers and customers.
Dan Ackerman/CNET
Breaking records
The iPhone wasn't Apple's only bright spot. The company said sales of its Mac computers were also strong, rising more than 25%, to nearly $10.9 billion, bolstered by newly redesigned MacBook Pro laptops. Apple said much of the customer demand is in response to the new M1 chip, meant to replace the microprocessing brains that Apple used to rely on from Intel. Cook said that's helped bring in new customers, in addition to upgraders.
"Customer satisfaction is off the charts," Cook said.
Apple's "wearables, home and accessories" division, which handles things like AirPods and HomePods, posted sales of more more than $14.7 billion, up more than 13%. And its services business, which oversees the $5 per month Apple TV Plus subscription service and the new $10 per month Apple Fitness Plus offering, saw sales rise to more than $19.5 billion. Apple said it now counts 785 million paid subscriptions across its business lines.
All told, Apple said it notched profits of nearly $34.6 billion, up 20% from the same period last year. That translates to $2.10 per share in profit, off $123.9 billion in overall revenue, which itself was up more than 11% from the $111.44 billion reported last year. It was also enough to beat average analyst estimates, which were $1.89 per share in profits on $118.66 billion in revenue, according to surveys published by Yahoo Finance.
All that has contributed to Apple's cash pile, which is now more than $202 billion.
Apple's iPhone 13 Pro.
Stephen Shankland/CNET
Still about the iPhone
Though Apple's various businesses are reporting record demand, the iPhone is still the company's most important product. It represented nearly 58% of Apple's overall revenue, and it's an anchoring product that many of the company's most popular accessories are built around, including the AirPods and the Apple Watch.
But Apple has also faced repeated questions about how to keep the product fresh despite annual updates. The iPhone 13's key improvements included its battery life, screen quality and cameras. The iPhone 12, meanwhile, offered the company's first major redesign in years, as well as the first inclusion of 5G ultrafast wireless and newly hardened front glass, which Apple called "ceramic shield."
The iPhone has become "an integral part of so many people's lives now more than ever," Cook said, noting that the active install base continues to grow, currently sitting at an all-time high. (Apple has previously said it counts more than 1 billion active iPhones worldwide, but it has since switched to publishing counts of all active devices. Apple said it counted 1.8 billion active devices over the holidays, up from 1.65 billion the same time last year, and 1.5 billion in 2020.)
Cook added that he expects 5G wireless will continue to drive further sales as people upgrade and switch to Apple devices. "Even though this is the second product announcement that has 5G in it, we're really in the early innings of 5G," he said, noting that customer surveys outside Apple have indicated that many people still haven't upgraded. "We maintain a very optimistic view on long term."
As to the future, Cook noted that Apple has been increasing its research-and-development spending more than normal, most recently raising it more than 22% during the holidays, to $6.3 billion. "There are areas that have more than piqued our interest, and we are investing in those," he added. "There's quite a bit of investment going into things that are not on the market at this point, as there always are."
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Here's One Feature Samsung Could Use to One-Up Apple
Here's One Feature Samsung Could Use to One-Up Apple
Samsung's next big phones expected to be revealed at its Unpacked event this week are rumored to be its best foldables yet, with improved cameras, new hinges and slimmer designs. But as the holiday shopping season approaches, the feature Samsung should lean on is a price cut.
Samsung has driven high sales with two-for-one offers and generous discounts when trading in old devices. That goes for both its pricey Galaxy Fold and Galaxy Flip devices that go for as much as $1,800, as well as its Galaxy S smartphones, which start at $800.
The way Samsung charges us for its phones is a stark contrast with Apple, which largely holds firm on its prices even through discount seasons like Black Friday, only allowing discounts from carriers or retailers.
This week, Samsung has a chance to make a change.
Read more: Samsung, the Galaxy Z Fold and Flip Could Be Even Better
Samsung is planning a large product reveal event, called Unpacked, for Wednesday, Aug. 10, during which it'll announce its newest foldable smartphones. The two devices, expected to be called the Galaxy Fold 4 and Galaxy Flip 4, aren't going to appeal to the masses like the Galaxy S line of devices, in part because they cost so much.
But price is where Samsung could make a difference. Despite offering more discounts, in recent years Samsung has lost market share to Apple at the top of the phone market -- the so-called premium segment where 7 of every 10 $800-and-up phones sold globally are iPhones. And in the lower-priced models, where the Galaxy S competes with the standard iPhone at around $600 and up, sales have actually begun to decline around the world, per a recent Canalys report.
Though Samsung's Unpacked event on Wednesday will focus on foldables, it also serves as Samsung's big product release just before Apple announces its expected iPhone 14 series of phones in a few weeks. Unpacked represents Samsung's chance to make a big impression ahead of Apple's own event, and any deals could make a difference.
It'll already be hard to convince people to buy any new phone this year with rising inflation and a looming recession. Our collective confidence in the economy has fallen through the floor, with one survey from the University of Michigan finding consumer sentiment is at its lowest point in at least 70 years.
Historically prices for many of these phones have stayed mostly the same over the years. Starting price for Samsung's Galaxy S and Apple's latest iPhones typically sit between $700 and $800, so it's unlikely Samsung would break from that model.
Still, if Samsung were to introduce a price cut for all its phones, effectively driving the price down to what it actually charges us through those special deals rather than the sticker price, it could potentially "change the equation," said Bob O'Donnell, an analyst at Technalysis Research. But convincing Apple users to switch to Android will take more than just a price cut.
"There are people who will never give up iOS for a variety of reasons -- green bubbles being one of them," said O'Donnell. "They're not going to change, as cool as [foldables] may be, until they can have [iOS.]"
The Z Flip folds up to take up half the space of a normal phone, while the Z Fold expands to have twice the screen size.
Sarah Tew/CNET
Apple and Samsung's premium horse race is an iOS vs. Android battle
Over the past decade, there's really only been two phone-makers worth paying attention to outside China. One is Apple, the other is Samsung. Apple's iPhone gets praised every year because of its industry-leading software and powerful chips. When CNET Senior Editor Patrick Holland was thinking of a headline to sum up his glowing review for images he took with the iPhone 13 Pro last year, he ended up with "Damn, these cameras."
Samsung often positions itself as the alternative, offering sleek designs without all the Apple baggage like requiring you to use its App Store or having to deal with iMessage. It's also often the lower-priced option whenever you walk into an AT&T, Verizon or T-Mobile store.
To be sure, people are buying as many iPhones as ever, said Tim Cook during a July conference call discussing Apple's latest financials. And other premium brands aren't feeling the squeeze of a shrinking economy just yet.
While Apple has pulled ahead in the premium smartphone race in recent years, both companies have been at each other's throats for a lot longer than that. The companies have traded blows in big ad campaigns, like Samsung mocking Apple for removing the headphone jack in 2016. Apple for its part has accused Samsung of stealing its designs, including in a worldwide years-long court battle that ended in a 2018 settlement.
Most other phone-makers have rarely been able to compete. LG lost money before leaving the phone game in 2021, while Microsoft gave up when its Windows Phone OS lost to Apple's iOS and Google's Android in 2017. Google gets good reviews for its Pixel phones, few people buy them, and the phones have a negligible market share, which Holland calls "a conundrum."
"Maybe that's a failure from Google's marketing, limited carrier relationships in Pixel's early days, the dominance of Apple and Samsung in the US or just that people don't trust the search company with their data," Holland said.
Which is a long way of saying that Samsung is Apple's only real competition outside China. Samsung sells more phones globally than any other manufacturer, though the majority of those are midrange and budget A-series phones.
One of Samsung's current obstacles is convincing iOS users to switch. They aren't having trouble converting the Android faithful to try out their Galaxy S phones, which this year featured a stylus, larger screen and better cameras. Even its pricey folding devices are catching on, somewhat -- making up an astonishing 36% of the premium Android phone market, according to IDC research director Nabila Popal.
But getting Apple faithful to leave their blue bubbles may be very difficult.
"I personally think Apple consumers are just so glued to Apple with brand loyalty and the ecosystem that they're used to," Popal said. "As great as foldables are, it will not be the driving factor to convert an iOS [user] to Android and Samsung."
Read more: When I Switched to iPhone, Blue iMessage Bubbles Made My Friends Far Too Happy
The other big factor is awareness. Even three years after the first Galaxy Fold arrived in early 2019 and a fourth version coming soon, they haven't been sold in enough numbers. "You still don't see many [foldables] in the wild," said O'Donnell. And one of the best ads for any technology is when you see a happy customer actually using it in your family or walking down the street.
"When people do see [a foldable], if that's their thing, they're still knocked out, they're like this is crazy, this is incredible," O'Donnell said.
Foldables will grow from 8 million sold in 2021 to 25 million sold in 2025, IDC predicts.
Sarah Tew/CNET
Unfolding the future
This year, rumors suggest Samsung's Z Fold 4 and Z Flip 4 are only getting rudimentary improvements for their screens and cameras. The same happened last year, but the big upgrade was in affordability, with discounts dropping the Fold's price below $2000 and the Flip's down to roughly the same price as other premium smartphones. But then Samsung started offering even more discounts afterward, with two-for-one deals across its product line.
The message was clear: Samsung still has an opportunity to introduce another price drop, which would put them in better competition with cheaper premium handsets, and make them much more attractive to people today.
For its part, Apple doesn't seem concerned enough about foldables to rush out one of its own. Instead, Apple's stuck to its well-worn plan of annual improvements, including for its upcoming iPhone 14, which is rumored to include a smaller front-facing camera notch, better battery life and a new always-on display.
Prices, meanwhile, are likely to remain the same if not increase along with inflation, like they did last year. This creates the opening for Samsung, both with its mainstream Galaxy S phones and its foldables alike.
"I feel that foldables are at a tipping point, the brink of a breakthrough, where it's just a matter of a bit more time before they just explode," Popal said.
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'Hey Facebook, take a photo': The social network's smart glasses are here
'Hey Facebook, take a photo': The social network's smart glasses are here
When Facebook CEO Mark Zuckerberg revealed that the social network was working on its first smart glasses, he tried to dial down the hype. The glasses, he suggested during the Facebook Connect conference in September 2020, would be just a step toward a more ambitious project.
"They're not yet augmented reality glasses," Zuckerberg said, referring to technology that places digital images on someone's view of the real world. "They're on the road there."
On Thursday, Facebook's smart glasses -- under the Ray-Ban brand -- go on sale online and at some stores in the US, UK, Canada, Italy, Ireland and Australia. Called Ray-Ban Stories, the smart glasses shoot photos and 30-second videos with the press of a button. They also play music and podcasts and make calls. The glasses include a virtual assistant so you can snap photos and videos hands-free by uttering the phrase "Hey Facebook."
The release of its first pair of smart glasses, which start at $299 (£299, AU$449), shows how Facebook continues to bet on augmented reality. Zuckerberg has enthused about a future in which augmented reality glasses will let people play games on their couch next to holograms of their friends or share an experience on social media without whipping out their phones. Though Facebook's smart glasses don't include AR effects, they move the company closer to that goal.
(Zuckerberg has been waxing on lately about the "metaverse," a virtual environment where people will meet up. His company also makes the Oculus headset, which relies on virtual reality, a technology that's more immersive than AR.)
"Ray-Ban Stories are an important step towards the future when phones are no longer a central part of our lives and you won't have to choose between interacting with a device, or interacting with the world around you," Zuckerberg said in a video released Thursday.
Ray-Ban Stories will come with a charging case.
Facebook
There's still a lot you can't do with Facebook's smart glasses, though, and those limitations underscore how far this gadget is from becoming the next big thing. The smart glasses, which need to be recharged every six hours with a charging case, don't let you browse Facebook, shop or play games.
"What we want to do with Ray-Ban Stories is to listen to our customers in order to understand where to go, but also to make sure that as we're building our roadmap, we are being responsible," Hind Hobeika, a product manager at Facebook Reality Labs, said in a video chat.
Facebook certainly isn't the first company to try to convince people they should wear a computer on their face. Google, Snap and Amazon have released smart glasses. And the average consumer passed on all of them. (Apple and Samsung are also reportedly working on AR glasses.)
But analysts say smart glasses are part of an emerging market. In a report last year, ImmersivEdge Advisors forecast that annual sales of smart glasses will reach more than 22 million units by 2030. For some perspective, global smartphone sales totaled 1.3 billion in 2020, according to Gartner.
Ben Delaney, CEO of ImmersivEdge Advisors and lead author of the report, expects smart glasses to play a larger role in how people get directions, shop, track their fitness or learn in the classroom. Facebook executives teased the new smart glasses this week by posting videos of themselves golfing, skateboarding and fencing, among other activities.
Smart glasses also come with concerns about privacy, which Facebook doesn't have a strong reputation for respecting. Privacy advocates still worry the technology can be abused for surveillance. Google Glass faced backlash in 2013 from people who were upset at how tough it was to tell if the device was recording video.
Privacy in focus
Facebook is well aware of the privacy issues that come with smart glasses, demonstrating restraint with the gadget's features even though the product comes with two cameras and built-in microphones.
Facebook has a separate app to store and share photos and videos from Ray-Ban Stories to other platforms.
Facebook
The glasses, for example, don't include facial recognition technology. People who use Ray-Ban Stories will also need a separate Facebook View app to share photos and videos captured on the device to other platforms. Hobeika said Facebook deliberately left out automatic sharing because the company wants to give users control over those decisions.
Facebook won't use media captured on the smart glasses or in the View app for personalized advertising, she said. If users choose to share photos and videos from the smart glasses on Facebook, Instagram, WhatsApp or other apps, the terms of services for those pieces of software will apply. Facebook, Hobeika said, doesn't use audio data for ads. Users will also be able to choose if they want to share additional data with Facebook, such as the number of videos taken and their length, to help improve the product.
It will likely take time for people to become comfortable with glasses recording photos and videos. Early adopters of Google Glass were derisively called "Glassholes."
To help generate acceptance, Ray-Ban Stories include a white LED light visible from 25 feet away so the wearer and people around them know when photos and videos are being captured. Some users might also be wary about sharing even more photos and videos with Facebook, a company that has been plagued with several privacy scandals.
Facebook includes tips in the View app and on a website so people who use the smart glasses know that recording in bathrooms or while driving are big no-nos. "Don't use your smart glasses to engage in harmful activities like harassment, infringing on privacy rights, or capturing sensitive information like pin codes," one of the tips states.
Facebook said it consulted with groups including the Future of Privacy Forum, National Network to End Domestic Violence and the LGBT Technology Partnership as it was working on the smart glasses.
Erica Olsen, director of Safety Net at NNEDV, said the group along with Facebook had concerns the glasses could be used to capture images or videos of people without their consent. An abuser could share that content in a way intended to cause harm.
"We already see this common tactic of abuse and we know some people will misuse any type of technology they can," Olsen said in a statement. "We hope the opportunities for misuse will be limited because these are glasses and the recording functionality will be fairly obvious to others."
Even so, some privacy experts say Facebook's smart glasses could be misused in ways the company can't yet imagine.
"Inevitably, these glasses will be used by consumers in ways not intended by the manufacturer," said Jeremy Greenberg, policy counsel for the Future of Privacy Forum. "It will really be up to the developers to respond to those alternative uses in real time." (Facebook is a supporter of the Future of Privacy Forum, as is Red Ventures, parent company of CNET.)
Ray-Ban Stories also function as a regular pair of sunglasses.
Facebook
Bigger hurdles
Analysts say makers of smart glasses face a more fundamental challenge: The technology isn't ready.
The price could also prompt prospective buyers to think twice about purchasing a pair. Ray-Ban Stories can function as regular glasses or sunglasses, but the price goes up accordingly if you add prescription or polarized lenses.
ImmersivEdge's Delaney says Facebook has its work cut out convincing consumers it's the right company to make smart glasses. Though the social network has hardware products, like its Portal chat tool and Oculus virtual reality helmet, other companies have more experience.
"There are so many other companies that know how to do hardware and software better than they do," Delaney said.
Even if Ray-Ban Stories flop, analysts say Facebook will learn what does and doesn't work for consumers. That knowledge will be useful to its other platforms.
"For a company as wealthy as Facebook, there isn't much downside," said Julie Ask, vice president and principal analyst at Forrester. "It's still kind of a Wild West right now. Nobody's had a breakthrough product."
Correction, Sept.14: An earlier version of this story incorrectly stated the first name of an analyst at Forrester.
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Magic 3 is Honor's first post-Huawei flagship launch
Magic 3 is Honor's first post-Huawei flagship launch
After being sold off by Huawei, Honor is back in the limelight with its new flagship Magic 3 series. It's the company's first global flagship launch since Huawei sold Honor to a consortium of buyers. And unlike Huawei devices, the Magic 3 lineup, will run Google's popular software and apps in their full capacity -- features it lost access to when it was owned by Huawei due to US sanctions.
The Magic 3 series, which consists of the Magic 3, Magic 3 Pro, and Magic 3 Pro Plus, will start at 899 euros (which converts to roughly $1,055, £760 or AU$1,430) for the base version, then step up to 1,099 euros (about $1,290) and max out at 1,499 euros (about $1,760). All three devices have a gently curved screen on the front (89 degrees) and feature between three and four rear camera lenses placed in concentric circles to form an eye-catching camera bump.
The Magic 3 series will also have access to Google Mobile Services, as well as popular Google apps including the Google Play Store and Gmail. Before Huawei sold the brand to "ensure its own survival," Honor was banned from buying American technology just like its former owner -- a consequence of sanctions levelled by the Trump administration. This marks a major victory for Honor, which along with Huawei, saw the market share of its consumer business erode partly due to absence of Google's wildly popular software and services.
The eye-catching Magic 3 camera bump.
Honor/Screenshot by CNET's Sareena Dayaram
Speaking of software, each Magic 3 phone will also get just one major software update, including a security update, putting Honor's premium phone line a step behind Samsung and Apple, which have committed to multi-year updates for their flagship phones.
There are differences between the three phones too. Some of those differences are found in the processor, display camera module, and the water resistance rating, for instance. The base Magic 3 runs on Qualcomm's Snapdragon 888, while the Pro models rely on the Snapdragon 888 Plus. Honor said this chipset is backed up by a flash memory fusion technology, which apparently gives an 8GB RAM phone performance that is similar to a 10GB device.
Some of the biggest differences are in the camera set up. Pro models boast a 64-megapixel periscope-style telephoto camera with 3.5x optical zoom and 100x zoom. That surpasses the zoom capabilities of the iPhone 12 lineup, at least on paper, and it's on par with the digital zoom on Samsung's Galaxy Ultra. On the pro models, the telephoto camera is accompanied by wide, ultra-wide and monochrome lenses. The telephoto lens, typically a more high-end feature, is absent on the base Magic 3. Camera sensor sizes vary across each model too. The Pro Plus for instance, has a larger sensor for the main 50-megapixel (1/1.28-inch) camera.
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Pixel 6: Everything to know about Google's newest phone
Pixel 6: Everything to know about Google's newest phone
Google's new phones, the Pixel 6 and Pixel 6 Pro, made their debut on Tuesday at the company's recent launch event. (Here's everything Google announced including Pixel Pass, Android 12 and its in-house Tensor chip.) Google's first Pixel phone made a splash when it was unveiled almost five years ago, but since then, the search giant's foray into mobile devices has been inconsistent. Last year's Pixel 5 received high marks for its cameras, but the Pixel 5 lacked the premium features you'd expect from a flagship smartphone, especially for the price. CNET's Lynn La called it "hard to recommend." Compared with the original Pixel phone ("pure Android at its absolute best" and "our favorite phone, bar none"), Google's phone trajectory looked rough.
Read more: CNET's Pixel 6 and Pixel 6 Pro reviews
Now that Google took a larger creative leap with its Pixel line, the question remains whether the changes will help the company compete against the best phones from Apple and Samsung or continue to disappoint its one-time fans. Let's go over what we've learned about the devices, which are available for preorder. Here's everything you need to know about the Pixel 6 and Pixel 6 Pro and which rumors about the phone have been debunked or proven true.
What are Google's new phones called? The Pixel 6 and Pixel 6 Pro
Unlike Apple and Samsung, Google has overall been consistent with its phone nomenclature. The original Pixel was followed by the Pixel 2, then the Pixel 3 and so on. Google's 2021 phones are indeed called the Pixel 6 and -- instead of an XL model -- the Pixel 6 Pro.
Google previously announced that both phones would have many of the same features: the new Tensor system-on-chip designed by Google, a camera bar that runs along the back of the phone, camera sensors that take in 150% more light than the Pixel 5's and an ultrawide lens. Software improvements also hit both models, including Android 12's Material You design, along with speech recognition and photography improvements powered by the Tensor.
Read more: Pixel 6 vs. Pixel 6 Pro and Pixel 6 vs. Pixel 5
Rumors about the now-confirmed Pixel 6 Pro began when leaker Jon Prosser shared renders depicting the "Pixel 6 and Pixel 6 Pro" in May. Prosser's renders were purportedly based on actual images of the phones, but released as renders to protect his source's identity.
The Pixel 6 phones come in black along with pastel shades of green and red.
Google
Release date: When will you be able to buy the Pixel 6 and Pixel 6 Pro?
Google launched its new phones on Oct. 19, and the Pixel 6 and Pixel 6 Pro are both available for preorders now through Google's website.
Google has unveiled a new Pixel phone in October every year since 2016, with the exception of last year's Pixel 5, which was announced on Sept. 30. But 2020 was an exceptional year for many reasons, including phone release schedules.
Read more:Google's Pixel 6 may be more exciting than the iPhone 13, but how does it compare to older Pixels?
Google's Pixel release dates usually follow a similarly predictable pattern: The company usually makes its phones available for purchase within a week or two of being announced. The Pixel 6 will be released on Oct. 28, which is in line with these expectations.
Price: How much do the Pixel 6 and Pixel 6 Pro cost?
We now know that Google's Pixel 6 has a starting price of $599, and the Pixel 6 Pro will cost you a bit more with a $899 starting price. In his first look at the Pixel 6, CNET's Patrick Holland says the phone is "priced to compete with the iPhone 13, the Samsung Galaxy S21 and other midtier Android phones such as the current Motorola Edge."
In comparison to older Pixel phones the Pixel 6 costs $100 less than the Pixel 5 did at launch. Last year's Pixel 5 made some compromises to get the launch price down to $699, making it more of a midrange phone than its predecessors, the Pixel 3 and Pixel 4, which both launched at $799.
This means rumors about the Pixel 6's steeper price tag from leaker Yogesh Brar have been debunked. The tipster previously speculated the Pixel 6 would have a $749 starting price, while the Pixel 6 Pro could have cost between $1,049 and $1,099.
Although the Pixel 6 costs less than its predecessors, Rick Osterloh, senior vice president of Google's hardware division, described the line as a "premium-priced product" in an August interview with the Verge.
Google's Pixel 6 is shown above in Kinda Coral.
James Martin/CNET
Design and colors: What does Google's new phone look like?
Confirming Prosser's renders, the Pixel line has a new look for 2021. The Pixel 6 is available in three colors: Stormy Black, Kinda Coral and Sorta Seafoam. The official Pixel 6 Pro color options are Stormy Black, Cloudy White and Sorta Sunny.
Moving to the front of the phone, the Pixel 6 Pro has a 6.7-inch LTPO OLED (3,120x1,440 pixel) display with a 120Hz refresh rate, while the Pixel 6 will have a 6.4-inch OLED (2,400x1,080) display with a 90Hz refresh rate. A hole-punch-style front-facing camera is centered up top, as opposed to on the left side of the screen as on the Pixel 5, and has 11 megapixels on the Pixel 6 Pro and 8 megapixels on the standard Pixel 6.
Pixel 6 has a Tensor chip, but what can Google's first in-house processors do?
Google's reveal of the Pixel 6 and Pixel 6 Pro put a particular spotlight on Google's new system-on-chip, named Tensor. Going in-house moves Google away from the Qualcomm chips that have powered its previous devices, and Google says the chip brings with it notable improvements to speech recognition and photography.
"Part of the goal is to show the very best that Google can offer," Osterloh said in an interview with CNET's Rich Nieva. "There is a big segment of the market that wants the latest, and we love building technology. So we're going to try to appeal to that part of the market, too."
Read more: Google Pixel 6's Tensor chip aims to make the Android 12 phone smarter and last longer
The Tensor chip loads the Pixel with more power and abilities without sacrificing battery life. Thanks to Google's new in-house chip, the Pixel 6 and Pixel 6 Pro has features like real-time language translations, highly accurate voice transcription and new camera features like the ability to unblur the face of a person in motion. The new features come as Google promises 24 to 48 hours of battery life for its Pixel 6 line.
The Google Tensor chip's unveiling is a prominent part of the first look at the Pixel 6 and Pixel 6 Pro.
Google
Camera specs and features: What's new on the Pixel 6 and Pixel 6 Pro?
Along the phone's camera bar, the Pixel 6 Pro has three cameras: a 50-megapixel wide lens, 12-megapixel ultrawide lens and 48-megapixel telephoto lens. The standard Pixel 6 won't have the telephoto lens, but houses the 50-megapixel wide and 12-megapixel ultrawide lens.
As for the selfie camera, Google's new phone has a hole-punch-style front-facing camera with 11 megapixels on the Pixel 6 Pro and 8 megapixels on the standard Pixel 6. The earliest rumors about the Pixel 6's camera setup included speculation that Google might upgrade to an under-display selfie camera, but that's not on the Pixel 6. Since this rumor is based on a patent filed by Google that appeared not to have a visible front camera, however, it's possible another phone will include it. Perhaps the Pixel 7?
Read more:Google builds equity into the Pixel 6 with Real Tone photos and new voice features
Google also designed the Pixel 6 and Pixel 6 Pro's cameras to be more accurate no matter your complexion with Real Tone. The feature comes after the company announced improvements to its software for "a more accurate and inclusive camera" that works better for a variety of skin tones, in May.
Google's new Pixel phones also see other photography improvements thanks to the Tensor chip. A new feature called Face Unblur can put the face of a moving subject in focus, while keeping the blur around the rest of the body, and another camera feature called Motion Mode can add blur into still pictures.
Do Pixel 6 and Pixel 6 Pro support 5G?
It's complicated. The Pixel 6 supports sub-6 5G. Some carrier versions of the Pixel 6 will also support mmWave, which is the fast version of 5G that's not widely available.
Read more: Will Google's Pixel 6 and 6 Pro work with 5G? The answer is complicated
What's in the box: Google's Pixel 6 won't ship with a charger
Google's Pixel 6 and Pixel 6 Pro won't ship with a charger in the box. The tech giant previously shared that tidbit about the new phone alongside the reveal of the Pixel 5A. Instead, the Pixel 6 and Pixel 6 Pro will ship with a USB-C to USB-C cable and a Quick Switch Adapter.
Google's decision to ditch the accessory from its phone boxes follows both Apple and Samsung. Apple stopped including an AC adapter in the box of the iPhone 12 in 2020, and Samsung later did the same for the Galaxy S21.
Although Google's Pixel 6 and Pixel 6 Pro won't have a charger in the box, the new phone supports 30-watt fast charging. This debunks earlier rumors about the smartphone from tipster Yogesh Brar and Android Police, which said that the Pixel 6 would support 33-watt and 23-watt fast charging, respectively.
Google also released a new Pixel Stand for the Pixel 6. The stand is said to be an alternative to wired charging, and was leaked before the phone's launch by tipster Evan Blass.
Images from leaker Evan Blass show off the second generation Pixel stand with 23-watt wireless charging.
Evan Blass
Do the Pixel 6 and Pixel 6 Pro have an under display fingerprint sensor?
The Pixel 6 and Pixel 6 Pro both have an under-display fingerprint reader. The feature was previously leaked by Android Senior Vice President Hiroshi Lockheimer, who shared two screenshots on Twitter showing an embedded fingerprint sensor within the Pixel's display. The tweet, which was originally posted to show off Android's new Material You design, has since been deleted from Lockheimer's account. Screenshots of the tweet were then later posted by leaker Mishaal Rahman.
Pixel Pass: What is Google's new subscription service?
The Pixel 6 and Pixel 6 Pro launched alongside a new subscription option to bundle phone financing and services under one bill. The plan is called Pixel Pass, and is described as a "monthly subscription that addresses users' mobile needs end-to-end." The subscription bundles Pixel device financing, YouTube Premium, Google One storage, Play Pass, Google Fi, Google's preferred care and device protection.
Read more: Pixel Pass: Google bundles the Pixel 6 and a bunch of its services for $45 a month
Below are all of the Pixel 6 and Pixel 6 Pro specs. For more, here's how to decide between a Pixel 5, Pixel 4 and Pixel 4XL, the Pixel 5 versus the Pixel 4A 5G and the Pixel 5 versus the iPhone 11, Galaxy S20 FE and OnePlus 8. Plus, six reasons to buy a Pixel and what we think of the Pixel Buds A-Series earbuds.
5G sub 6 (some carrier models also have 5G mmWave) support, Wi-Fi 6E, 30W fast-charging, wireless charging, Magic Eraser, Motion mode, Real Tone, Face Unblur, Cinematic Pan, 5 years OS security updates, IP68 rating for dust and water resistance, Gorilla Glass Victus (front), Gorilla Glass 6 (back), dual-SIM capabilities (nano-SIM and e-SIM)
5G sub 6 and mmWave support, Wi-Fi 6E, Ultrawideband, 30W fast-charging, wireless charging, Magic Eraser, Motion mode, Real Tone, Face Unblur, Cinematic Pan, 5 years OS security updates, IP68 rating for dust- and water-resistance, Gorilla Glass Victus (front and back), dual-SIM capabilities (nano-SIM and e-SIM)
Price off-contract (USD)
$599 (128GB)
$899 (128GB)
Price (GBP)
£599 (128GB)
£849 (128GB)
Price (AUD)
Converts to AU$1,100
Converts to AU$1,570
§
I've used Google Pixels and Apple iPhones for my daily smartphone photography needs for years. I've mostly relied on Pixels because of Google's pioneering computational photography software, which wrings superior image quality out of limited hardware. My current iPhone, the XS Max, has been relegated to occasions when I've needed a telephoto lens. But two recent smartphone launches -- of Google's Pixel 5 and Apple's iPhone 12 lines -- have changed my mind. The midrange camera hardware on the Pixel 5, and the high-end array of cameras on the iPhone 12 Pro Max, along with the gadget's large image sensor and new software options, are pushing me to the Apple camp.
Read more:iPhone 12 vs. Pixel 5: Apple and Google's 5G flagships compared
It wasn't supposed to be this way. I've been impressed by Google's ability to convert cutting-edge image processing research into superior smartphone photos. Google demonstrated how profoundly computers can modernize cameras, as it surpassed smartphone rivals and traditional-camera makers.
Google's decision to build a midrange phone with just two cameras feels like an abandonment. There's just no way to make up for the multiple cameras that rivals like Samsung, Huawei and Apple employ. Sure, rivals haven't necessarily matched all of Google's camera software, but Google isn't close to their hardware.
To be clear, the Pixel's cameras are good, as my colleague Lynn La details in her Pixel 5 review. From my perspective as a serious photographer, though, I'm looking for more.
Read more:The best phone to buy for 2020
Telephoto vs. ultrawide cameras
In 2019, Google's Pixel 4 took a step up by adding a second rear-facing camera, a telephoto option for distant subjects. That was the same year Apple added a third camera to its higher-end iPhone 11 Pro models, an ultrawide camera that sat alongside its main and telephoto cameras.
The Pixel 5 photo at 2X telephoto, shot here with Google's computational raw format, is fine viewed small but has only a 3 megapixel resolution. At right, the 12 megapixel image from a 2-year-old iPhone XS Max, shot as an HDR raw photo with Adobe's Lightroom app, offers more detail and editing flexibility. Clicking to enlarge reveals the superior iPhone detail, though it's scaled down to match the Pixel 5 photo.
Stephen Shankland/CNET
Google tried to match Apple's prowess this year by replacing the telephoto camera with an ultrawide camera in the Pixel 5. But Apple made major camera improvements with its iPhone 12 Pro, including a bigger image sensor, a longer-reach telephoto lens, improved image stabilization to counteract shaky hands, Dolby Vision HDR video at 60 frames per second and Apple's more flexible ProRaw format. It's clear Apple is sinking enormous resources into better photography.
Google may have made the right call for the broad market. I suspect ultrawide cameras are better for mainstream smartphone customers than telephotos. Ultrawide cameras for group shots, indoor scenes and video are arguably more useful than telephoto cameras for portraits and mountains.
But I want both. I enjoy the different perspectives. Indeed, for a few years I usually carried only telephoto and ultrawide lenses for my DSLR.
In response to my concerns, Google says it's improved the Super Res Zoom technique for digital zooming on the Pixel 5 with better computational photography and AI techniques that now can magnify up to a factor of 7X.
"We studied carefully to determine what's really important to folks, and then we focused on that -- and shaved off literally hundreds of dollars in the process," said camera product manager Isaac Reynolds. Having a telephoto camera would have helped image quality, but Google's priority this year "was to produce a phone that compared well to the top end but at a much lower price -- and we did that."
I'm not so convinced. When shooting even at 2X telephoto zoom, my 2-year-old iPhone XS Max and my 1-year-old Pixel 4 both offer far superior imagery compared with the Pixel 5.
Zooming in at 2X, the Pixel 5's Super Res Zoom technology generates a 12 megapixel image, but it looks artificial up close, as in this cropped view.
Stephen Shankland/CNET
What I do like so far about the Pixel 5 cameras
I want to be clear: Google's new phone has its merits, and I've experienced some of its strengths while testing the Pixel 5 cameras over the past few days. Here are a handful:
Google's computational raw offers photo enthusiasts the best of both worlds when it comes to photo formats. It marries the exposure and color flexibility of unprocessed raw photo data with the exposure range and noise reduction of the multishot HDR+ processing ordinarily used to make a JPEG.
The ultrawide camera really is fun. It also dramatically improves video options, particularly indoors.
Based on earlier Pixel phones, I share my colleague Lynn La's concern that Google's video stabilization can be "drone-like," but my early tests of video I shot while walking looked more natural.
Double-tapping the phone's power button launches the camera app fast. It's not new with the Pixel 5, but it's so much faster than the iPhone's lock screen icon.
Night Sight, particularly astrophotography mode, still is amazing for low-light shots.
Google also pointed to other Pixel 5 perks, including a portrait light ability to control the apparent light source brightening a subject's face; portrait shots that work in Night Sight mode; 4K video that now works at a fast 60 frames per second, more advanced high dynamic range processing called HDR+ that's now boosted by exposure bracketing for better shadow details like a backlit face, and better video stabilization.
Here's the rub, though: As Google slips in hardware, rivals are improving their software.
Google's rivals in computational photography are catching up
Apple didn't comment on its photography plans for this story, but it spent more than 11 minutes touting the iPhone Pro photo and video abilities, and its actions speak volumes.
The Pixel 5 offers a useful if not unique portrait mode that blurs the background for smooth "bokeh."
Stephen Shankland/CNET
Last year, Apple matched most of what was best about Google's HDR+ for challenging scenes with bright and dark elements. This year's Pixel 5 boosts HDR+ with bracketing technology into the multishot blending technique. Apple's Smart HDR alternative, however, is now in its third generation of refinement. Apple is improving the iPhone's nighttime photos, too. And by using special purpose processing engines on its A14 chip, Apple's Deep Fusion technology to preserve detail in low-light shooting works on all four of the iPhone Pro cameras.
Photo enthusiasts like me prefer unprocessed, raw photo formats so we can fine-tune color balance, exposure, sharpening and noise reduction. That's great for when the camera doesn't make the right choices when "baking" raw image data into a more convenient but limited JPEG image. Google's computational raw blended HDR processing with raw's flexibility, but now Apple plans to release its answer, ProRaw, in an update coming later this year to iPhone Pro models.
"We want to give our pros even more control over the images they capture," said Alok Deshpande, Apple's senior manager of camera software engineering, during Apple's launch event.
Relatively few people use Pixel phones, and that weighs on Google too. Imaging software powerhouse Adobe calibrates its Lightroom photo software to correct lens problems and adapt its HDR tool for some cameras and lenses. No surprise that Pixel phones aren't on that list. "We tend to provide support based on the popularity of the devices with our customers," Adobe said in a statement.
In contrast, Adobe is "partnering closely with Apple" to tap into ProRaw abilities. And a Google computational photography guru, Marc Levoy, has left Google and is now at Adobe, where he's building photo technology into Adobe's camera app.
Selling a midrange smartphone like a Pixel 5 or Pixel 4a 5G might well make sense when the COVID-19 pandemic has cost millions of jobs and made a $1,099 iPhone Pro Max unaffordable. But for people like me with a photography budget and appreciation for Google's computational photography smarts, it's tragic that Google has lost its lead.
