Last year for the high-tech industry is remembered not only for major releases, announcements and success of breakthrough technologies. The IT giants, of course, had its failures. Look at the most significant failures of companies high-tech sector.
Elon musk was punished for tweets
In August, Elon Musk suddenly wrote on Twitter about plans to make the company Tesla private and to repurchase shares at $420 with money allegedly received from Saudi Arabia. Musk later backpedaled, but the Commission on securities and the exchanges still filed a lawsuit against him for securities fraud. The Agency believed that the statement of the businessman was about and introduced investors astray.
Musk has made a Commission agreement under which he, among other things, had to pay a penalty of $20 million and to leave the post of Chairman of Board of Directors of the company Tesla for at least three years.
In the program Axios on HBO Musk admitted that many of the rumors were true and “Tesla was a few weeks away from bankruptcy”. Musk said that Tesla is rapidly losing money during the spring and summer of this year due to work on the new Model 3 electric vehicles. From bankruptcy, the company was separated a few weeks before they were able to get a result from the release of Model 3.
Google and a secret project in China
Google was forced to close the system of data analysis which she used to develop a censored search engine for China, after the members of the team to ensure confidentiality complained that the plan was kept from them. Earlier this year reports emerged that the American IT-giant intends to comply with the requirements of the Chinese authorities about content filtering, and develops project Dragonfly is a censored version of its search engine to return to the Chinese market.
One of the internal disputes was connected with the fact, Google engineers involved in the project violated the Protocol’s privacy in the analysis of search queries in China. After the team privacy Google found out about the situation, they were “very angry”, said one of the sources in the company.
It is unclear whether this will prevent the aspiration of the CEO of Google Sundar Pichai to return to the Chinese market, which is one of its main priorities. However, it seems that the launch of the Dragonfly has been postponed indefinitely.
Boring new Apple
The September event turned out surprisingly boring: all names, specifications and features, as well as photos of new products has long flowed into the network, and no breakthrough one more thing was not. But there was joyless for fans of Apple news: the company stopped selling the iPhone 6S and iPhone SE, but about the expected wireless charging AirPower not a word was said.
In addition, Apple raised the starting price on most of the novelties 2018 compared to the same period a year ago: the initial price of the most affordable of the new iPhones increased $50. At $70 it increased the price of the basic version of Apple Watch. The price tag on the new iPad Pro has grown to $150, the initial package included the MacBook Air went up by $200. The Mac Mini has increased in price to $300.
The company clearly overestimated demand for the new smartphones. Apple lost the first place by market capitalization, giving it to Microsoft, after shares of Apple, the company fell on news of weak demand for the iPhone and tense relations between the US and China.
Custom Facebok campaigns against critics
Another scandal erupted around Facebook because of the investigation of the newspaper the New York Times, which claims that in order to hush up the negative about “Russian trolls”, launched on the social network a whole political campaign, and the scandal of the Cambridge Analytica, the company Mark Zuckerberg used the non-standard ways, for example, hired associated with the Republican PR firm Definers Public Affairs to discredit its critics in the media.
If you believe the 50 interviewed current and former employees of Facebook, CEO mark Zuckerberg and COO Sheryl Sandberg did everything possible to save the company’s reputation by resorting to all possible methods of concealment of the truth to mudslinging their competitors. Thus, the user of the social network tried to maintain good relations with Donald trump, despite the fact that it was contrary to the beliefs of the company. Because of this social network are supposedly “passively” fighting with Russian propaganda instead of taking aggressive action and ignored some of the publications of the American leader, even though they were in themselves racist.
So as not to anger conservatives and the incumbent, Facebook has maintained all publications trump, although in any other case, has locked the account due to the spread of hate speech. This whole situation could not fail to affect the sentiment in Facebook. According to The Wall Street Journal, if in 2017 84% of the employees of the social network “were optimistic about the future of the company”, but now this figure fell to 52%. In addition, if earlier, 72% of employees believed that “Facebook is changing the world for the better”, now I agree with that only 53%.
In October stocks of technology companies went through the worst month since the recession of 2008 and the Nasdaq Index fell by 9.2%, the biggest monthly decline since November 2008, when there was a drop of 10.8%. So, shares of online retailer Amazon fell by 20%, quotes Alphabet fell by 9.7%.
Investors sold shares, which provided the best yield in recent years. Fears of a trade war between the US and China and rising interest rates increased the demand of Fund managers for assets that are perceived as more secure.
Overall, the S&P 500 index fell 6.9%, the Dow Jones Industrial Average lost 5.1%. The technology sector has a huge impact on the overall market, as five of the six largest U.S. companies by market value are in this sector and based in Silicon valley or in Seattle.
Chinese hacker chips
Chinese hacker chips built into the motherboard, which sold one of the largest suppliers in the world, Supermicro Computer, to gain access to networks of affected devices, reported Bloomberg with reference to sources in the intelligence and business community, who wished to remain anonymous.
Government sources called the hack, the investigation is not yet completed and which is not officially reported, the most significant of the known attacks on the supply chain of American companies. According to sources, the chips were installed during the manufacturing process at the Chinese factories of subcontractors agents and units of the people’s liberation army.
17 people, including 6 current and former senior staff of the national security service, confirmed the fact of manipulation with accessories, Supermicro and other elements of the attack. Amazon and Apple, according to anonymous sources, was discovered embedded chips in 2015 and reported to the US authorities.
A disastrous 76 Fallout New post-apocalyptic RPG Fallout 76 all of a sudden was a big disappointment — the first time in the history of the series. Among the main disadvantages of the game critics: outdated game engine, numerous technical problems of the game and the lack of NPCs in turn among the advantages of the reviewers noted vast the world of the game.
The Guardian called the game “meaningless walk on the Heath”. Forbes called the game “a huge and rare mistake Bethesda”. Specialized publications adhere to similar opinion. Eurogamer described the game as “boring and broken mess”, describing it as a “failed experiment”. According to IGN “a huge map of the wasteland Fallout 76 lost in the countless number of bugs, conflicting ideas and monotony”.
Additional discontent among the gaming community caused a scandal around the special edition of the game Power Armor Special Edition. Promotions Bethesda promised that the delivery will include canvas bags, but instead, the users have got handbags made of nylon. The company explained this by the fact that canvas bags are more expensive, but was criticized due to the fact that previously were not informed of this buyers. Description special edition has been changed on the web site of the company only after it began a flood of complaints.
On 3 December representatives of the company announced that all buyers of Power Armor Edition will be given the promised canvas bag. In the process because of an error in the system technical support Bethesda has leaked users ‘ personal data including credit card information, home addresses, and email addresses. The error was soon rectified, but Bethesda’s reputation had suffered significant damage. In addition, such disclosure may have other consequences, especially in Europe where there are strict penalties for violations of privacy.
Tesla missed test brakes Model 3
Tesla refused to conduct one of the tests on the security Model 3. According to the publication Business Insider, CEO Elon Musk gave the order to accelerate the process of production of cars. The company said that the test, which was taken the decision to withdraw was excessive. Tesla shares against this fell to 6%.
Tesla was in a hurry with the supply of machinery, which is reflected in the quality. The company this year for the first time managed to meet its target to build mass produced electric car the Model 3. It happened behind the initial plans for the year, but it happened, and joy Elon musk was not the limit. The rate of production Model 3 — the main problem Tesla, where the company’s shares by the beginning of April 2018 fell by approximately 35% compared with peak values in September last year.
Now, investors care far not an idle question, for how long Tesla will be able to support such growth, while, according to the description of the Mask in “production hell.” To achieve the planned volume, Tesla had to work in accelerated mode.
According to the employee of the deadline for the Assembly of Model 3 was transferred workers from other departments, certain types of production and all were closed (for example, Assembly of the Model S). This suggests that the company managed to produce the planned number of cars mainly due to the manual labor, not automation, which Musk was presented as a competitive advantage of the company.
Insides of violations of the technological process of production or the quality of the parts periodically appear in the press. 40-year-old ex-engineer is Martin Tripp recently told The Washington Post that Tesla installs a defective battery in their electric car and that Musk is lying to investors, telling them about the number of produced vehicles. The previous batch of Model 3 were also observed problems. Non-profit organization and edition of Consumer Reports to not recommend the purchase of Model 3, as during testing the experts were dissatisfied with the braking system and noted the complexity of some functions of the car.
Facebook gave user data 52 companies
Facebook has presented the US Congress with a 747-page document in which the most detailed manner described arrangement with the software developers and device manufacturers. The largest social network revealed that dozens of companies were given special access to personal data of users.
According to the document, the list includes 52 companies, including Chinese technogiant Alibaba, Huawei, Lenovo and Oppo. With 38 of them the cooperation has been completed, a contract with 7 companies expires in July, another in October of this year. What are the companies in question are not reported. In Facebook noted that with companies such as Apple, Amazon, Tobii, Alibaba, Mozilla and Opera, the social network will continue to operate as needed in their development and technical support.
We also learned that access to personal data of users of Facebook was provided by 61 third-party application developer. Another five had the opportunity to view the list of friends located in a limited access, through the channel of beta testing. This statement contradicts previous official comments of the Corporation, according to which from 2015, this information is inaccessible to third parties.
Chinese Xiaomi this year completed an IPO. However, shares fell almost 6% in the first minutes of trading on the Hong Kong stock exchange, where paper is a Chinese manufacturer of smartphones first became available after the IPO. Earlier, the company announced plans to reach a market capitalization of $100 billion, but the market appreciated Xiaomi about half.
In the hours that followed the paper played almost all the losses, however, this price was set at the lower end of the range to find investors willing to pay more, the company failed. The results of the placement assessment Xiaomi in early trading amounted to us $54,3 billion For Chinese corporations who dreams of becoming a major global player and technology leader, this is a good result. Xiaomi is often contrasted Apple and Samsung. However, as shown by the IPO of the Chinese company does not match with the rating of competitors.
According to analysts, lower interest in the shares of the company may be associated with their original reassessment. Analysts of banks Goldman Sachs, JP Morgan and Morgan Stanley agree that the prospect of the company’s capitalization may reach $92 billion in addition, the lack of investors ‘ interest in stock Xiaomi can be directly associated with the raging “trade war” between China and the United States.
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