Tech
tech
Rani Molla

People aren’t buying iPhones for the new features

Apple’s new iPhone 16 goes on pre-sale tomorrow and the company is hoping the integration of its AI, Apple Intelligence, will drive consumers to upgrade to the latest model. The problem is, people don’t really buy iPhones these days for new features.

Nearly three quarters of people buying iPhones do so because their old phone was obsolete — its battery life has shortened or it’s slowed down, for example — or because their old phone was broken, lost or stolen, according to data from Consumer Intelligence Research Partners (CIRP). Just 18% are people with a working phone who want to upgrade to get the newest features.

That’s potentially bad news for Apple, which has seen its iPhone sales — which account for more than half its revenue —flag in recent years. But it’s good news for consumers, whose phones last a lot longer than they used to. CIRP found that 34% of iPhone buyers had a previous phone that’s three years or older. A decade ago, that was around 6%.

Apple’s new buttons, like incremental changes to camera quality and battery life, are unlikely to change people’s habits. That said, integrating AI at the core of the new iPhone — if it’s done well and proves legitimately useful — could be a different story.

More Tech

See all Tech
tech

Report: SpaceX’s satellite internet business is propping up its rocket and AI businesses

Ahead of SpaceX’s highly anticipated IPO in June, new reporting from The Information reveals just how dependent the rocket and AI company is on its internet business.

According to the report, in 2025, Starlink generated $11.4 billion in revenue and $7.2 billion in adjusted EBITDA — a striking 63% margin — making it SpaceX’s only meaningful source of profit.

By contrast, the company’s core rocket launch business and its recently acquired AI unit, xAI, lagged far behind financially. The space launch business generated $4.1 billion in revenue and about $700 million in adjusted EBITDA, while the AI segment brought in $3.2 billion in revenue but lost roughly $1.2 billion on an EBITDA basis.

In other words, Starlink accounted for most of SpaceX’s revenue — and more than all of its adjusted profit.

Starlink’s profitability is already attracting rivals. Amazon on Tuesday agreed to acquire satellite company Globalstar in an effort to more directly compete with Starlink.

tech

Meta will surpass Google in ad revenue this year, new industry data shows

In a world supported by digital ad dollars, Meta may soon be king. The Instagram owner’s net digital ad revenues are expected to hit $243.5 billion in 2026, surpassing Google’s projected $239.5 billion, according to new data from eMarketer.

The shift is happening as Big Tech companies, including Meta and Google, are increasing their spending on AI in hopes that AI will grow their top and bottom lines.

On the company’s last earnings call, Meta CFO Susan Li credited AI with driving performance gains, and said that growth will continue: “We expect the set of investments we’re making in 2026 will enable us to drive further gains as we continue to integrate AI across all layers of the marketing and customer engagement funnel.”

“In surpassing Google, Meta has essentially had many of its core strategies validated,” said Max Willens, principal analyst at eMarketer. “Meta has long understood that scale, network effects, and habits are more important than anything else in digital media. It has carefully built and defended the advantages it has in all three areas.”

JAPAN-FOOD-DRINK-SCIENCE-REASEARCH-MSG-AJINOMOTO

What does delicious Asian food seasoning have to do with a potential bottleneck for AI chips?

Japanese food flavoring company Ajinomoto, which commercialized MSG, also makes a key component in AI chips. It’s having trouble scaling to meet demand.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.