Tech Rewind: Uber Cuts Prices, Microsoft Signals Shakeup
From Samsung’s weak guidance to Microsoft’s CEO signaling changes in the organization ahead, this is your tech rewind of the week.
Starting the week on a high note, the Secret Service said it detained a “prolific” hacker of U.S. retailers’ computer networks. Secretary of Homeland Security Jeh Johnson said the arrest of Roman Valerevich Seleznev sends a clear message that America will continue to “disrupt and dismantle” sophisticated crime rings.
After lowering its prices well-below New York City taxi cab fares, Uber reached a deal with the Big Apple to limit surge pricing during emergencies. The fare cuts are available for a limited time and only apply to Uber’s least expensive vehicles, the uberX. However, the company says the more users that tap into the savings the more likely it is to keep prices low.
Ride-sharing service rival Lyft was slapped with a temporary restraining order on Friday from the New York Attorney General’s office, preventing it from launching in the city over the weekend as planned. In a joint statement by the attorney general and state superintendent, they cited that Lyft ignored state and local laws as well as a request for it to delay its launch. “We are hopeful that Lyft will now recognize that it has to play by the same set of rules as everyone else,” the statement said.
A Chinese court ruled midweek that Apple’s (NASDAQ:AAPL) voice-activated service Siri infringed on a patent from China-based company Zhizhen Internet Technology, one of the nation’s tech companies. Apple maintains it was unaware of Zhizhen’s patent prior to introducing Siri. Investors, however, appeared unconcerned with the verdict as shares of the tech titan were unchanged on the day, and were little changed on Friday.
Samsung unveiled surprisingly weak guidance for the third quarter, putting it on track for its worst results in two years. Despite expectations for better business conditions in the quarter, one of the biggest challenges the Korean electronics giant faces is mounting competition from Chinese rivals who offer similar devices at lower price points.
On Thursday, Microsoft (NASDAQ:MSFT) CEO Satya Nadella sent a letter to employees quieting rumors the Xbox unit might be spun off. Nadella also hinted at changes to the company later this year.
The Federal Trade Commission on Friday followed through on an earlier threat filing a lawsuit against Amazon.com (NASDAQ:AMZN) over unauthorized in-app charges made by children. The regulatory agency alleges the online retail behemoth billed millions of dollars to account holders from app purchases made by children. According to an FTC statement, it is seeking a court order to refund consumers and permanently bar Amazon from billing users for in-app purchases made without their consent. Investors appeared to shrug off the news as Amazon shares rallied 6% Friday. However, they are down 13% for the year.