The Server Boom Balances Price Increases Against Chip Shortages
Smartphone Market To Shrink 15% This Year Due To Memory Crisis
CCS Insight expects global smartphone shipments to fall 15% this year as AI-driven demand pushes memory manufacturers toward higher-margin server chips. "[S]ome entry-level devices have already seen their sticker prices go up by more than 50 percent since last year," reports The Register. From the report: The firm found that the primary smartphone market (meaning new devices) contracted 4.4 percent in the first quarter of this year, despite sales channels front-loading (meaning stockpiling) product inventory, as device prices begin to rise sharply. As CCS notes, this casts an ominous shadow on the outlook for the rest of the year, and it seems things have worsened since The Register first started reporting on the smartphone memory woes.
Back in January, the forecast was for handset price rises of 6-8 percent, while the most pessimistic outlook was that the global market might contract as much as 5.2 percent. By February, analysts were expecting to see a decline in shipments of around 8 percent across the global market, and for prices to increase by about 14 percent.
The root cause of all this is the AI craze, which has seen huge demand for high-performance GPU-filled servers to process it all. Chipmakers have moved to capitalize on this by prioritizing production of high-margin memory components for those servers, rather than making the plain old DRAM and NAND needed for PCs and phones. "The memory chip crisis shows no sign of slowing down in the near future, ramping up the pressure on manufacturers and consumers. Memory components now account for more than 30 percent of a manufacturer's bill of materials in some smartphones." said CCS research analyst Ben Hatton. "The full impact has yet to be felt in many regions, but it's clear that device prices will accelerate over the rest of the year."
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Moment three men brawl on Tube train in front of shocked commuters before it spills onto platform at West London station
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Cadbury-owner Mondelez defends decision to continue trading in Russia
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Carvana Is Turning Dealerships Into 'Playgrounds,' Test-Drive Centers With Sales All Online
Carvana is testing a radically different new-car dealership model in Dallas, turning the location into a test-drive center and themed "playground" while requiring every purchase to be completed through its online platform. "Every single car that we sell, whether it's used or new, is online," said Tom Taira, Carvana president of special projects who's leading the new vehicle operations. "That's a very inherent difference. Even coming into the store, you're buying it online, and that's a big difference in how people think about it." The company hopes its no-haggle pricing, hourly employees, service operations, and national logistics network can reshape franchised auto retail. CNBC reports: Through its used vehicles sales, Carvana has become the most valuable auto retailer in the U.S. with a more than $70 billion market cap. Carvana's target with the new vehicle business is to grow its market share and customer base as well as assist used vehicle sales through trade-ins and other means, according to Taira. If the company is successful, the strategy could cause a ripple effect across the U.S. franchised dealership model, which the National Automobile Dealers Association reports includes 16,990 retailers that topped $1.3 trillion in sales last year.
[...] Carvana is using a location in Dallas as a test center for its foray into new vehicle sales. The facility looks like a traditional Stellantis dealership from the outside, but the consumer process for purchasing a vehicle and the responsibilities of its employees are unprecedented. Couches and chairs replace cubicles and sales offices. There are no finance and insurance departments, and instead of an army of commission-based employees, the facility has associates that are paid hourly to assist customers -- if they want the help.
The experience is meant to be as self-guided as a customer wants. By scanning QR codes located on 10-foot-by-10-foot screens inside the building or on vehicles and displays outside, shoppers can customize a vehicle, learn about a product's features and conduct test drives before deciding whether to purchase anything. If they do decide to buy something, it's online and not originated from a sales person, the company said.
The "playground" has roughly 50 vehicles divided by brand, with each having a theme. Jeep has an off-road display. Dodge has race tracks, including a Carvana-themed Charger pace car and part of a traditional track fence barrier. Chrysler minivans, meanwhile, have a soccer net and Ram's area is truck-centric. Carvana is not committing to expanding the exact experience to its other franchised dealer locations, but Taira told CNBC that the overall process of online sales, vehicle testing and service are expected to be consistent throughout the locations. Further reading:: Online Car Retailer Launching Nation's First Car "Vending Machine
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Git good with Epic Games' new open source VCS, Lore
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Google, Microsoft, and OpenAI Back Linux Foundation's Appia AI Standards Initiative
BrianFagioli writes: Google, Microsoft, OpenAI, Arm, Mastercard, Siemens, and other companies have joined the newly launched Appia Foundation under the Linux Foundation. The project aims to create common specifications and assessment frameworks that organizations can use to demonstrate AI systems meet emerging safety, trust, and compliance requirements. According to the Linux Foundation, the framework is designed to allow conformity evidence to be reused across the AI supply chain, potentially reducing duplicate assessments and compliance costs. The announcement comes as governments around the world move toward enforcing AI regulations and organizations face increasing pressure to prove AI systems are trustworthy. "As international standards and legal frameworks become more established, global organizations need a consistent, practical way to verify that AI systems conform to new expectations," said Jim Zemlin, CEO of the Linux Foundation. "The Appia Foundation establishes a neutrally governed environment where the entire industry can collaborate on a common assessment framework. By building this infrastructure in the open, we are helping organizations reduce complexity, lower operational costs and build trust."
Craig Shank, Executive Director of the Appia Foundation, added: "AI systems now make decisions about people's loans, their children's schools and their jobs. People on the receiving end deserve to know those systems were built and assessed against criteria that hold up to scrutiny. The Appia Foundation was formed to do that work: creating publicly available specifications that organizations across the AI value chain use to demonstrate their systems meet those criteria. By establishing this open framework, we are building the accountability layer required to scale safe and trusted AI across major industries."
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Jennifer Lopez seems to take a rare swipe at ex-husbands Marc Anthony and Ben Affleck ahead of Father's Day
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Quantum Pulse Does Industrial Light Magic To Deliver Massive Boost In Qubits
Chicago founding member dead at 81 after SIX YEAR health battle
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