The top stories from last week included Facebook’s Watch tab, the possibility of an Intel (INTC Quick QuoteINTC - Free Report) modem in Apple’s (AAPL Quick QuoteAAPL - Free Report) new Watch and Microsoft (MSFT Quick QuoteMSFT - Free Report) reaching a settlement with Kaspersky over antitrust practices.    

Now for the top stories-

Facebook Watch Tab

Facebook has a new “Watch” tab for U.S. users, not to be confused with its “Video” tab launched last year. The new tab is a way for Facebook to distribute high-quality videos produced by professionals. So far, it has confirmed that these would include videos of the Women's National Basketball Association, a parenting show from Time and a safari show from the National Geographic as well as the Major League Baseball games that it is already serving up.

It also has deals for both scripted and unscripted content from millennial-focused news and entertainment creators Vox Media, BuzzFeed, ATTN, Group Nine Media and others. This is an important step to grab TV ad dollars and may be a good way to supplement revenue, especially given the ad loading constraints. It’s also a direct challenge to YouTube.

Intel Chips in Apple Watch3

A Bloomberg report from earlier this month seems to be at odds with another report from Apple star analyst Ming-Chi Kuo on this issue. The Bloomberg report cites people familiar with the matter in saying that Apple Watch 3 will include an LTE modem from Intel. This makes sense given Apple’s souring relations with its main supplier Qualcomm, which even tried to get its devices banned in the U.S. It also makes sense given Intel’s progress in the area.

But Kuo speculates that Qualcomm will remain a supplier for the part given the greater efficiency of its technology, especially given the space and battery size constraints of the Watch. Notably, Qualcomm has been quoted as saying that “Apple can purchase and utilize any LTE modem it chooses so long as it does not infringe Qualcomm’s asserted patents.”

Microsoft-Kaspersky Bury the Hatchet

Microsoft and Kaspersky have settled their disputes in Russia and Europe, where the security vendor had accused Microsoft of creating hurdles in the rollout of security updates that limited choice for consumers while increasing cost of security software. After the complaint was lodged, Russia’s Federal Antimonopoly service said last November that it had initiated proceedings against Microsoft.

The settlement will see Microsoft working with security vendors prior to the release of new versions of its Windows software so they can also work on updating their software in advance. Microsoft will also notify users in a way that forces them to take action when their security protection expires. Kaspersky is therefore withdrawing its cases with the Russian antitrust authority, as well as the European Commission and Germany’s Federal Cartel Office.

Other Stories

Corporate

Toshiba Avoids Delisting: Toshiba auditors PriceWaterhouseCoopers Aarata LLC approved its annual report for the year ending Mar 2017 but accompanied it with a "qualified opinion." The firm also expressed an "adverse opinion" on its internal controls while also criticizing the timing and method used to record losses related to its Westinghouse nuclear division in the U.S. The auditor’s report will allow it to remain listed on the Tokyo Stock Exchange although it will be removed from Japan's benchmark Nikkei 225 index. The index will now include Seiko Epson Corp. instead.

New Products/Technology

iPhone 8 Will Launch on Time: Ming-Chi Kuo of KGI Securities says that the new iPhone will be available in just three colors including black, silver and copper/gold (rose gold appears to be a color Apple is abandoning). While supporting fast charging, the feature may just be available to those buying a separate Type-C power adapter. The analyst sees production verification tests on the iPhone 8 in late August and mass production in mid-September, a full month ahead of his previous expectations.

But this doesn’t mean there won’t be supply constraints, especially with respect to the OLED version, which “will be in short supply as we forecast shipments in 3Q17 will be 2-4 mn units or less. We do not think production of the OLED iPhone will pick up substantially before 4Q17; and given strong demand, tight supply may persist until 1Q18 before improving much.”

Microsoft Blockchain Enhancements: Microsoft has launched a new blockchain framework called Coco that it expects will appeal to more enterprises, thus speeding up their adoption of the technology. Specific advantages of Coco (short for Confidential Consortium) will be transaction speeds of more than 1,600 transactions per second, easily managed data confidentiality without sacrificing performance, and a comprehensive, distributed governance model that establishes a blockchain network constitution and allows members to vote on all terms and conditions governing the consortium and the blockchain software system. Initial Coco Framework implementations will include R3 Corda (for enterprises), Intel Hyperledger Sawtooth, J.P. Morgan Quorum and Ethereum. Microsoft said that Coco will be open-sourced by 2018.

YouTube Mobile Chat: Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Google is adding to its long list of messaging apps including Android Messages, Allo, Duo, Hangouts Chat and Hangouts Meet. But this time, it’s a YouTube-only feature that allows up to 30 users per chat to discuss a video by adding friends via SMS or an invitation. It allows users to discuss videos, share them and suggest other videos to watch. But it seems like a barebones offering as of now, because there are big limitations like the inability to watch a video together with your friends, or share a curated playlist, or point out parts of a video that a friend should pay special attention to.

Still, it can be fun for users, and enable Google to stem the flow of customer to competing platforms like Facebook and Twitter where the show can be discussed. YouTube already has a billion-plus users, so the chatting (only available on mobile devices, not desktop) can be a nice way to connect them.

Amazon Joins Mobile Phone Effort: Andy Rubin’s Essential phone just raised another $300 million from Amazon’s (AMZN Quick QuoteAMZN - Free Report) Alexa Fund, Tencent, Foxconn, Access Technology Ventures, Redpoint Ventures, Altimeter Capital and Vy Capital. Access reportedly contributed about $100 million. Among the first products the startup is bringing to market are a high-end smartphone (competing with iPhone and Galaxy 8) and a smart home device like the Echo.

The phone, which is getting ready to ship with features a Qualcomm processor, a USB-C port for charging, an 8 megapixel front-facing camera, a 13 megapixel rear camera, a magnetic connector on the back to connect to accessories like a 360-degree camera and a wireless charging hub. It will have scratch resistant titanium sides and a ceramic back in black, grey, white and gold.

Amazon Will Sell Event Tickets: Live Nation Entertainment-owned Ticketmaster could be in for some serious competition as Amazon readies itself to leverage its huge customer base to enter the ticketing business. The company has reportedly outsold Ticketmaster for some venues in the UK. Ticketmaster’s strength comes from the strong relationships it enjoys with major U.S. sports stadiums, arenas, concert halls and other venues but this may not deter Amazon, as it is already in the music and sports businesses by virtue of the media content it currently sells. All said and done, the market looks ready for disruption.

M&A and Collaborations

Wipro Big Data Analytics On Azure: Indian outsourcing giant Wipro has announced that its Big Data Analytics-as-a-Service solution is now available on Microsoft Azure Data Discovery Platform. The solution leverages the data and artificial intelligence (AI) capabilities of Microsoft Azure cloud to build novel domain-specific business applications across industry verticals like banking and financial services, retail, energy, education and manufacturing. It uses a 'pay-per-insight' cloud delivery model.

Alibaba-Marriott Make Deal: Alibaba (BABA Quick QuoteBABA - Free Report) has entered into a joint venture with Marriott International that will allow Marriott access to the Chinese company’s 500 million monthly active consumers. Chinese consumers will be able to make reservations on Marriott’s 6,200 properties across 125 countries through Alibaba’s Fliggy platform. Marriott will also accept payments through Alipay.

Some Numbers

Google Pixel for Back-to-School Season: Google has announced its back-to-school promo: accordingly, it’s slashing $200 off both its Pixel XL phones costing $769 and up and Pixel phones costing $649 and up. The Google Home smart speaker is also taking a price cut from $129 to $109. And there’s also a free Google Chromecast audio device for those buying a Google Wifi 3-pack.

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