Displaying items by tag: US
Tesla is planning to increase prices by 3% on all cars except for the new mid-market Model 3.
Recently, Tesla said it would close down several stores in order to pay for a cut in the price of the Model 3 in the US to USD $35,000. The amount of stores to be closed down were not previously specified but Tesla has said that it now plans to close down “about half as many” stores as it makes half the cost savings.
The car manufacturer stated that if more stores were to be kept open, then the prices of their vehicles would have to increase by an average of about 3% worldwide.
Tesla has 378 stores and service locations worldwide but did not identify which ones would be closed.
A company spokesperson stated: “Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months.”
Tesla is planning to conduct online purchases which they claimed would take just a few minutes. The company said that buyers in store will be shown how to buy a Tesla online through their smartphones. They previously stated that if online sales were to increase, it would cause prices to decrease by an average of 6%.
In an attempt to convince customers to purchase their cars online, they said that it had a “generous returns policy” whereby the customer will be able to return a car after 1,000 miles or within seven days. This has been done to significantly decrease the need for test drivers.
Tesla has also said that some of its recently closed stores that used to be in “high visibility locations” will be reopened but with smaller amounts of staff and less cars.
The previous year has been “the most challenging” year in Tesla’s history as a business. The company has been attempting to cut costs as much as possible. In January, they announced a 7% job cut, equating to 3,000 job cuts.
Back in January, company founder Elon Musk stated that the company’s cars were still “too expensive for most people”.
He has been subject to a great deal of controversy over his tweet. Last month, he was held in contempt of court upon the request of the US regulator, the Securities and Exchange Commission, for violating a settlement month which was aimed at limiting his usage of social media.
This issue is due to his previous tweets about the company’s financial situation and some tweets from august last year in which he claimed he secured funds to make the company private.
Mr Musk has until today to officially respond.
US president Donald Trump revisited a previous plan to nationalize 5G in the US after it had been previously scrapped in 2018 due to industry backlash.
President Donald Trump’s 2020 re-election campaign backtracked on the prospect of 5G wireless technology after it seemed to contradict the White House’s administration policy.
Trump’s admin began to discuss this prospect in January 2018 in an attempt to one-up their main competitor, China.
Politico reported that this plan would ensure the government have full control over the 5G spectrum to create a wholesale market where operators could buy capacity.
“A 5G wholesale market would drive down costs and provide access to millions of Americans who are currently underseved,” said Kayleigh McEnany, national press secretary for Trump’s 2020 re-election campaign to Politico on Friday. She added “this is in line with President Trump’s agenda to benefit all Americans, regardless of geography.”
The resurgence of the campaign put it in an unfavorable position with White House administration officials who have been adamant on dropping the original plan of a free market approach after the chairman of the Federal Communications Commission’s (FCC), Ajit Pai’s, criticism against the matter.
5G technology is not yet readily available for the public.
Axios reported that Trump’s 2020 campaign manager, Brad Parscale, believes that promoting a nationalized system could potentially general more votes from citizens in rural areas who want faster internet.
According to Business Insider, 5G is “next generation, super-fast wireless technology [which] has become a real, tangible thing that people can actually use.. Right now, only a tiny number of eople across a very limited spread of locations have access to 5G. For most of us, 5G is still a mystery, full of tantalizing promise but few details.”
Some members of the Trump administration such as Larry Kuldow, are wary of the nationalization of 5G as it would mean that private companies like Verizon and AT&T would be able to build it out.
Last month, trump expressed his concerns about 5G and its dominance by telling US operators to “step up their efforts” and criticized them for “lagging behind on something that is so obviously the future.”
As an attempt to reiterate his opposition to the prospect of network nationalization, Pai reposted a tweet from January 2018 which stated “The market, not the government, is best-positioned to drive innovation and investment.”
Similarly, some FCC commissioners such as Jessica Rosenworcel and Brendan Carr both expressed their opposition to the idea on social media while others even went as far as comparing it as a “China-like nationalization” of 5G networks.
In early February, Trump tweeted:
“I want 5G, and even 6G, technology in the United States as soon as possible. It is far more powerful, faster, and smarter than the current standard. American companies must step up their efforts, or get left behind.”
“I want the United States to win through competition, not by blocking out currently more advanced technologies.
“We must always be the leader in everything we do, especially when it comes to the very exciting world of technology!”
Chinese telecommunications behemoth Huawei is preparing to take the US government to court in an effort to the challenge the decision taken by the US congress which prohibits federal agencies from using its equipment.
The New York Times is reporting that the embattled Chinese vendor is now preparing to file a lawsuit against that legislation which was passed through the US House of Representatives.
Sources close to Huawei have leaked that the telecommunications company plans to argue the measure amounts to a so-called bill of attainder, which penalizes the vendor for a penalty without the benefit of a trial, which is illegal under the US Constitution.
The US has adopted a very aggressive approach towards Huawei and ZTE, and the latter was almost pushed the point of bankruptcy following draconian measures implemented by the US Department of Commerce.
In August of last year, President Donald Trump signed into law a defence spending bill which included a clause banning government agencies and contractors from using equipment from Huawei and fellow Chinese vendor ZTE.
At the time, Huawei labelled the bill ‘misguided and unconstitutional’ – and blasted the decision taken by the Trump administration.
The lawsuit by Huawei is expected to be filed on 7 March in a federal court in Texas, where Huawei has its US headquarters.
The move comes as Huawei battles assertions from the US that it poses a security threat to telecommunications networks. The US has lobbied other nations in banning Huawei from their 5G networks, such as Australia and New Zealand, and is also attempting to pressure European countries such as the UK and France.
Secretary of State Mike Pompeo has said countries that use Huawei equipment risk losing the US as a business and trade partner over the alleged security threat.
However, during his keynote address on stage at MWC19 Barcelona last week, Huawei rotating chairman Guo Ping blasted the US campaign against the company saying officials have “no evidence, nothing” to back up their claims.
South Korean conglomerate Samsung has unveiled its ambitious strategy to enhance its market share in the US by launching three new retails stores nationwide.
Samsung officially announced that it will open the new retail facilities as it gears up to launch an updated version of its flagship Galaxy handsets in the United States.
Some consumer experts are also claiming that the marketing strategy adopted by Samsung indicates clearly that the Seoul-based behemoth is directly challenging Apple in its domestic market.
Samsung said in a detailed statement that it made the move based on feedback from its customers.
The statement said, "They told us that they love having the ability to walk into a store and experience how the latest technology from Samsung works together to create a unique, immersive experience. Galaxy fans, in particular, mentioned that they were looking for a space to call their own, a place where they can get a feel for Samsung products first-hand."
It was further disclosed that the new stores will be located at the Americana at Brand mall in Los Angeles; Roosevelt Field in Garden City, New York; and The Galleria in Houston, Texas.
In addition to this, Samsung is holding a product launch in San Francisco amidst speculation it may launch a folding smartphone, which would make it the first of the major handset makers in the segment.
President of Samsung Electronics America, YH Eom, expressed his delight at the announcements and said the decision would solidify Samsung’s position as the world’s most popular smartphone manufacturer.
He said, “Our new Samsung Experience Stores are spaces to experience and see Samsung technology brought to life, to empower people to do what they never thought was possible before. We want to build a 'playground' for Samsung fans -- a place to learn about and try out all of the amazing new products we have to offer."
Samsung remained the number one global handset maker with a 20.8 percent share in 2018 despite an eight percent sales slump for the year, according to research firm IDC -- which also said last year showed the worst overall decline in sales for the smartphone sector.
The US-led campaign against Chinese telecommunications behemoth Huawei is now facing resistance from a number of major European operators.
Washington has been engaged in a sustained offensive attack on China’s major telecommunication vendors Huawei and ZTE over the last number of years.
However, that has heightened in recent months, with the United States labelling Huawei and ZTE as a severe threat to national security. US President Donald Trump is expected to issue an executive order later this week which would prohibit both Chinese vendors from being involved in wireless networks in the US.
In addition to this, lobbyists on behalf of the US convinced its allies Australia and New Zealand to prevent either company from participating in the rollout of their respective 5G networks. The US is now pressuring Europe to follow suit. Earlier this week, comments by US Secretary of State Mike Pompeo added further fuel to the ongoing saga when he said that countries that use Huawei technology could hurt their relationship with the United States.
However, that has been met with resistance from major European operators who have discovered that they will have to fork out more to replace equipment from Huawei and ZTE, and that a blanket ban on both companies would significantly impact its ability to launch 5G services in the next twelve months, as Huawei is the global leader on 5G equipment.
A number of prominent executives from Europe’s top operators told The Wall Street Journal that Huawei hardware was much better than the rest on offer and often cost less; not using it could well mean that Europe would lag Asia and countries in other regions that use gear from Huawei for their 5G rollouts.
In addition to this, Nick Read, chief executive of Vodafone Group, was quoted as saying in January that a total ban on the carrier's use of Huawei equipment “would have significant financial cost, would have significant customer disruption and would delay 5G rollout in several countries”. The UK's four major wireless operators — Vodafone, BT Group, Telefonica and CK Hutchison Holdings' Three — were all against a ban.
But it is not only big carriers who prefer Huawei equipment, with Jersey Telecom, a publicly-owned company operating in the Isle of Jersey, also expressing a preference for Chinese equipment.
The company sought bids from both Chinese and Western companies in 2014 for its wireless network and while Huawei's bid 20% below the lowest Western offer, ZTE was 40% cheaper. Jersey Telecom chief executive Graeme Millar went with ZTE, and commented: "I have a genuinely high-class, low-cost supplier with ZTE, who haven’t let me down yet.”
The US stands accused of using Huawei and ZTE as political pawns in the ongoing trade war standoff between Washington and Beijing.
US President Donal Trump is set to issue an executive order later this week which would prohibit Chinese companies from being involved in wireless networks in the United States.
The exclusion of Chinese telecommunications behemoths Huawei and ZTE has drawn bipartisan support in the US House of Representatives, which is notable considering the fractious and hostile political climate in Washington under the Trump administration.
Reports emerging from Washington which cite unnamed sources close to the administration are saying the objective is to issue the order just before the commencement of Mobile World Congress in Barcelona at the end of this month.
The executive order would effectively mean a ban on all telecoms equipment supplied by both Huawei and ZTE, which would significantly hurt the coffers of both companies.
The hostility towards both Chinese vendors stems from allegations made by US intelligence agencies that both companies pose a very real threat to national security. However, both Huawei and ZTE vehemently deny the claims and have robustly defended their security record across the world.
The report did highlight that there was no decision yet on how 5G networks would be built in the US without equipment from Huawei.
At the moment, however, no plan had been drawn to manage without equipment from Huawei, with the main push coming from smaller rural ISPs who had benefitted from the use of equipment from the Chinese vendor due to the prices and good service.
US telecommunications operator Sprint has posted a disappointing performance in its financial returns for Q4 in 2018.
Taiwanese electronic colossus Foxconn has now admitted that it is currently reassessing its plans to invest in a new $10bn factory in Wisconsin.
When first announced it was hailed as a significant win for US President Donald Trump who had promised rust-belt states that he would breathe new life into the manufacturing sector and create millions of jobs.
However, that deal now may be dead in the water due to the ongoing dispute between Beijing and Washington that is becoming increasingly toxic.
Foxconn manufactures devices and components for a host of the world’s leading technology leaders including Apple, and had previously unveiled its plans to build the $10 billion plant to make LCD flat screen televisions which would also in turn create around 13,000 new jobs.
The investment was vetoed by $4bn in controversial tax concessions which were embraced by Trump who said the deal was another illustration of his campaign promise which was to put America ‘first’ again. Trump has also tried to strong arm other tech giants like Apple offering them tax breaks if they move manufacturing back to the United States.
Trump appeared with Foxconn CEO Terry Gou at a groundbreaking ceremony proclaiming and stated that, "This is just the beginning. This is one of the largest plants in the world."
However, the global economic climate roiled by Trump's trade war with China where Foxconn has most of its assembly lines -- has led officials at the Taiwanese company to look again at the plans.
"The global market environment that existed when the project was first announced has changed. As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin," Foxconn said in a statement Thursday.
However, Foxconn has moved swiftly to deny it’s pulling out of the proposed investment and released an official statement saying it is remained committed to building its science park in Wisconsin and wants to help create 13,000 jobs".
Woo told Bloomberg, "We’re not scrapping our plans at all. However, given the global economic conditions and the trade tensions between China and the US, its’ impossible to say that we can always stay committed to our original plan without any change."
South Korean conglomerate Samsung has suffered a blow following the announcement that the CEO of Samsung Electronics in North America has decided to retire.
Tim Baxter has been with the company for over 12 years and has played a pivotal role in establishing Samsung as a powerhouse in the North America ICT market in his role as CEO.
Baxter has shown incredible leadership and vision and as ensured Samsung’s products has resonated with American consumers. He announced his decision to retire in a LinkedIn post, and confirmed that he pass the reins to his current deputy in North America Young Hoon Eom.
Samsung confirmed the departure in an official statement to Mobile World Live and placed on record its sincere thanks to Baxter who they described as an ‘exceptional business leader’ that has helped define Samsung as a pioneering innovator in the consumer electronics industry.
Baxter joined Samsung as EVP of sales and marketing for consumer electronics in 2006, and held various leadership positions before being appointed to his current post in July 2017. The role gave him full autonomy of Samsung’s $30 billion consumer and enterprise businesses in the US and Canada, including oversight of teams across mobile, consumer electronics, home appliances, customer care, services and new business.
The move comes at a pivotal moment as mobile operators across the US and Canada, start the transition towards the deployment of 5G. All four tier-one US operators have confirmed that they are working with Samsung on 5G handsets set for release in the first half of 2019.
The US Federal Communications Commission (FCC) has completed its first 5G auction, with a sale of 28GHz spectrum licensing which raised a cool $702 million.
The chairman of the FCC, Ajit Pai expressed his delight at the successful completion of the first auction and said that it represented a significant step towards positioning the United States as a leader in 5G.
In addition to this, he declared that it was the objective of the commission to continue to pursue its strategy of pushing more spectrum licenses into the commercial marketplace. It was also confirmed that a 24GHz auction will take place in the next few months, and that will be followed by three more spectrum bands later in 2019.
The chairman of the FCC said that by that spectrum auctions were critical in helping it execute on its goal which enables US consumers to benefit from the benefits provided by 5G.
He said, “By making more spectrum licenses available, promoting the deployment of wireless infrastructure, and modernising our regulations – the three components of the FCC’s 5G FAST plan – we’ll ensure that American consumers reap the substantial benefits that will come from the next generation of wireless connectivity.
A total of 3,072 licences offered in 425MHz blocks were up for grabs in the 28GHz auction. Of these, only 107 received no acceptable bids. However, the identities of the winning bidders will remain private and anonymous until the close of the 24GHz auction.
Earlier in the month the FCC had reiterated its desire to continue to work on scheduled spectrum auctions, as it prepared to temporarily close down most of its other operations.
In November 2018, the agency had said it set strict performance requirements for the licences to encourage the swift rollout of 5G services - and will take dim view on any attempt to seek a waiver of the requirements ahead of construction deadlines.