As Amazonreportedly gears up to offer its own hi-fi music streaming service, Spotify has posted its Q1 figures. One significant milestone: the world’s currently biggest music streaming service reported that it now has 100 million paying users (up 32 percent on a year ago) and 217 million subscribers overall in 79 markets, picking up 2 million users in India since launching there in February.
In financial terms, however, the picture is more mixed. Its €1.511 billion ($1.68 billion) in sales just beat analysts’ estimates for revenues of $1.64 billion. But earnings per share seems to have taken a big hit. The company, which is still unprofitable, posted negative EPS of €0.79 (or negative $0.88), while analysts on average were expecting only negative EPS of $0.39.
Its net loss is now €142 million ($158.6 million), down from €169 million in the same quarter a year ago.
Spotify as investor also provided an update. It noted that the value of its investment in Tencent Music is now €2.3 billion, going up €652 million in the quarter, and it also confirmed that it paid a total of €358 million for three podcasting acquisitions in the period: €308 million for Gimlet Media and Anchor FM, and €50 million for Parcast. To downplay the size of that deal, or at least provide some more context, it noted that the combined purchase consideration “is roughly equivalent” to Spotify’s cumulative free cash flow over the last three quarters.
This, plus decent guidance for the quarter and year ahead, has made the market relatively happy: Spotify’s shares are up nearly five percent in pre-market trading.
Spotify noted that “most metrics” exceeded the company’s own expectations, although the 217 million monthly active user figure — while up 26 percent — was lower than midpoint of its 215-22- million expectation.
Premium (paid) revenues represent the bulk of Spotify’s revenues at the moment — €1,385 million versus just €126 million from advertising, and still growing at a higher rate than its advertising business (34 percent vs. 24 percent).
Because of that, partnerships, which help to bring in more paid subscriptions, continue to be a huge part of Spotify’s business model. This quarter, it noted that promotions with Google Home Mini and Samsung, and a reduced price of $9.99 for a bundle sold with Hulu, all contributed to its strong revenue performance (however that reduced price provides one clue to why margins are not great). Its group subscriptions — specifically the Family plan — also had a strong impact, it noted.
Guidance for the next quarter and year, meanwhile show continued growth for the company at a relatively similar rate. The thinking is that this should help Spotify eventually even out its losses, although that won’t happen in the year ahead:
For next quarter, Q2, Spotify expects MAUs of between 222-228 million, up 23-27 percent Y/Y; Premium subs of 107-110 million, up 29-34 percent Y/Y; revenues of €1.51-€1.71 billion, up 18-35 percent; gross margin of 23.5-25.5 percent; and an operating loss of €15-€95 million.
For the full-year, Spotify expects MAUs of 245-265 million, up 18-28 percent Y/Y; Premium subs of 117-127 million, up 21-32 percent Y/Y; revenues of €6.35-€6.8 billion, up 21-29 percent Y/Y; gross margins of 22.0-25.0 percent; and an operating loss of €180-€340 million.
But that was just like the 3rd or 4th most interesting piece of Tesla news that took place this week. CEO Elon Musk also avoided writing another check to the SEC for his tweeting habit and Tesla showcased some of its self-driving dreams at an event devoted to autonomy.
Let’s check the news hits out one-at-a-time:
First, let’s talk Tesla money. On its Q1 earnings call, Tesla CFO Zachary Kirkhorn called it “one of the most complicated quarters.” Investors were already expecting a loss, but a bunch variety of factors led to the $702 million loss which came after two quarters of profitability. Musk had already said that deliveries were lower-than-expected, they ended up shipping 63,000 cars, a nearly one-third drop from the previous quarter. Add that to the partial expiration of the federal electric vehicle tax rebate and there are some answers but still some lingering questions.
Next, the company laid out some big promises for its self-driving future, but none was more intriguing than Elon Musk announcing that Tesla was planning to launch a robotaxi network in 2020, though the CEO was strong on the caveats that local laws would pretty much guide how such a service was rolled out.
The company’s Autonomy Day wasn’t just about plans to trounce the soon-to-be-public Uber on its own ride-sharing turf, the company also dove into the hardware, specifically its new “full self-driving” computer that has already started shipping in new Model 3, S and X models. If you look — not very closely — you’ll see that it’s actually two independent computers designed around redundancy so that there’s less room for a glitch to leave drivers in danger.
Finally, on Friday we learned that Musk and the SEC had reached a deal that let him keep his cash and his Twitter account and avoid being held in contempt of the initial deal. The agreement reach gave Musk a list of topics (list here) that he needs to get pre-approval from Tesla in order to tweet about, a solution that’s probably good for everyone especially the Tesla officials who likely didn’t want to babysit Elon tweeting about anime.
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Trends of the week
Here are a few big news items from big companies, with green links to all the sweet, sweet added context.
Give us this day, our one-day shipping
Amazon is getting ready to make one-day Prime shipping the defaultsometime. There are tens of millions of Prime subscribers in the US, but while Amazon has been bumping up the annual price, they’ve been trying to sweeten the deal with media plays that feel hit-or-miss sometimes. Making one-day Prime shipping the default would be a game-changer.
Comcast eyes a Hulu adieu Hulu, which was once the convoluted lovechild of entrenched TV network powers-that-be has become a full-on Disney production as of late. After picking up a big slice in the 21st Century Fox deal and some more from AT&T’s Time Warner sale, Disney is reportedly in talks to buy the remaining 33 percent stake in the company from Comcast, which would make Hulu an all-Disney affair.
I’m not the first to go wild about enterprise IT, but Box CEO Aaron Levie just published a guest post on TechCrunch about how the world of corporate software has gotten a lot more exciting over the past decade. Check it out.
“…We’ve reached a new era of enterprise software and companies are coming around to this model in droves. What seemed unfathomable merely a decade ago is now becoming commonplace…”
Photo by Paul Marotta/Getty Images
GAFA Gaffes
How did the top tech companies screw-up this week? This clearly needs its own section, in order of awfulness:
Our premium subscription service continues to churn out some awesome long-reads as a channel for our staff’s niche obsessions. We had a great piece this week on the difficulties associated with determining Huawei’s company ownership, especially when that owner might just be the Chinese Communist party.
“…despite selling 59 million smartphones and netting $27 billion in revenue last quarter in its first-ever public earnings report this morning, a strange and tantalizing question shrouds the world’s number two handset manufacturer behind Samsung. Who owns Huawei?”
Here are some of our other top reads this week for premium subscribers — our staff seemed to write a lot about pitching stories this week…
The Korean giant saw revenue for the three-month period fall by 13 percent year-on-year to 52.4 trillion KRW, around $45 billion. Meanwhile, operating profit for Q1 2019 came in at 6.2 trillion KRW, that’s a whopping $5.33 billion but it represents a decline of huge 60 percent drop from the same period last year. Ouch.
Samsung’s Q1 last year was admittedly a blockbuster quarter, but these are massive declines.
What’s going on?
Samsung said that sales of its new Galaxy S10 smartphone were “solid” but it admitted that its memory chip and display businesses, so often the most lucrative units for the company, didn’t perform well and “weighed down” the company’s results overall. Despite those apparent S10 sales, the mobile division saw income drop “as competition intensified.” Meanwhile, the display business posted a loss “due to decreased demand for flexible displays and increasing market supplies for large displays.”
The immediate future doesn’t look terribly rosy, too.
Samsung said the overall memory market will likely remain slow in Q2 although DRAM demand is expected to recover somewhat. It isn’t expecting too much to change for its display business, either, although “demand for flexible smartphone OLED panels is expected to rebound” which is where the company plans to place particular focus.
On the consumer side, where most readers know Samsung’s business better, Samsung expects to see improved sales in Q2, where buying is higher. It also teased a new Note, 5G devices — which will likely limited to Korea, we suspect — and that foldable phone.
The Galaxy Fold has been delayed after some journalists found issues with their review units — TechCrunch’s own Brian Heater was fine; he even enjoyed using it. There’s no specific mention in the quarterly report of a new launch date but it looks like the release will be mid-June, that’s assuming what AT&T is telling customers is accurate. But we’ll need to wait a few weeks for that to be confirmed, it seems.
Samsung says it will announce a revised launch date for the Galaxy Fold in the next few weeks.
Executives are speaking on a 1Q earnings conference call.
So it’s come to this. After years of letter boxes and angry commenters, the electronics world is finally giving in and developing hardware designed to view vertical videos. Time to pack it in, the portrait mode shooters have won, and their prize is this ridiculous 43 inch TV from Samsung.
The Sero joins a handful of other strange new takes on the flat panel TV, but none speak to the current state of things more than this swiveling set. The design calls to mind Facebook’s high end portal, with a screen that does double duty. There’s landscape for standard viewing and portrait for, you guessed it, social media.
It’s a system targeted primarily at millennials, according to the company’s press material — specifically millennials with a money to burn, with a price north of $16,000. Seems like a lot to ask, but what do I know? I’ve been holding my phone sideways the whole time.
The quantum-dot QLED set features 4.1 channel audio, 60 watt speakers and your friend and mine, Bixby. It’s due out in Korea next month, but I wouldn’t hold my breath for a release here in the States.
This could be the upcoming Motorola Razr revival. The images purporting to be the upcoming smartphone appeared online on Weibo and show a foldable design. Unlike Galaxy Fold, though, Motorola’s implementation has the phone folding vertical — much like the original Razr.
This design offers a more compelling use case than other foldables. Instead of traditional smartphone unfolding to a tablet-like display, Motorola’s design has a smaller device unfolding to a smartphone display. The result is a smaller phone turning into a normal phone.
Pricing is still unclear but the WSJ previously stated it would carry a $1,500 cost when it’s eventually released. If it’s released.
Samsung was the first to market with the Galaxy Fold. Kind of. A few journalists were given Galaxy Fold units ahead of its launch, but a handful of units failed in the first days. Samsung quickly postponed the launch and recalled all the review units.
Despite this leak, Motorola has yet to confirm when this device will hit the market. Given Samsung’s troubles, it will likely be extra cautious before launching it to the general public.
I wrote a lot about the Galaxy Foldhere. After a week with the device, I was left with mixed feelings independent of the whole ongoing display saga. The TLDR; of it is the story of a first-generation device that’s full of promise but still a bit clunky and prohibitively priced.
Of course, the real reason we couldn’t possibly recommend the device is the high percentage of issues around the device. Samsung issued a handful of early units to reviewers and multiple devices returned with broken screens. Samsung was quick to downplay the issue, but ultimately apologized, issued early findings and pushed the release back to an undisclosed date.
The Fold was supposed to be released today, and until Monday, Samsung had us convinced that it would hit that optimistic time frame. The fact of it all, however, is that the timing was always in question. The device was officially unveiled at an event in February. A week later at Mobile World Congress, the closest we got to the device was the other side of a plate of display glass and a velvet rope. It doesn’t exactly instill confidence in a product.
Later that day, Huawei gave us hands-on time with its own (still unreleased) foldable, the Mate X. Granted, the time was limited and a rep was hovering over us the whole time, but being able to touch the device goes a long way.
For the moment, Samsung’s in lockdown mode. Reviewers (ourselves included) have returned the devices at the company’s behest. A week with the phone was always the plan, as Samsung was likely planning to send it out to additional reviewers. I suspect all the breakages have put the brakes on that for now.
More notably, Samsung convinced iFixit to pull a lengthy teardown that referred to the Fold’s display as “alarmingly fragile.” The write-up has been replaced by a lengthy note explaining the site’s position and Samsung’s role in the takedown:
We were provided our Galaxy Fold unit by a trusted partner. Samsung has requested, through that partner, that iFixit remove its teardown. We are under no obligation to remove our analysis, legal or otherwise. But out of respect for this partner, whom we consider an ally in making devices more repairable, we are choosing to withdraw our story until we can purchase a Galaxy Fold at retail.
It’s easy to understand why the piece irked Samsung, of course, but it’s hard to imagine that it did much additional damage to an already problematic situation. We covered the story, along with dozens of other sites. I personally found it an insightful look at the product, as iFixit described a display that wasn’t sufficiently reinforced and an otherwise impressive gear system that let dirt and debris fall behind the screen.
In fact, Samsung’s own “initial findings” were actually pretty well in line with iFixit’s:
Initial findings from the inspection of reported issues on the display showed that they could be associated with impact on the top and bottom exposed areas of the hinge. There was also an instance where substances found inside the device affected the display performance.
From the outset, many were suspect about the product’s ability to hold up to real-world stresses without the presence of a Gorilla Glass-like screen covering. Corning has already noted that it’s working on just such a flexible material, but Samsung didn’t seem much interested in waiting.
In retrospect, the process of bringing the technology to market felt like a thoughtful, leisurely progression, followed by a potentially careless sprint the final few yards before the end zone. While Samsung had been showcasing flexible display technology since CES 2011, it no doubt saw the writing on the wall heading into this year. Royole had already launched its own reference device, and the week following the Fold’s announcement, we saw the aforementioned handset from Huawei and a reference design from TCL. Xiaomi showed off its own project at around the same time, and leaks have highlighted competition from companies like Motorola.
Samsung, it seems, wanted badly to be the first to market with a consumer device. It’s a stumble, but as we’ve pointed out previously, Samsung’s been through worse. This isn’t the Galaxy Note 7 part two for two key reasons:
The product didn’t officially ship, so these devices could be considered a kind of (very public) extended beta
Nothing actually exploded and the Fold hasn’t been banned from any airlines
The broader question, however is two-fold:
What will this mean for Samsung
What will this mean for foldables as a category
The answer, I think is the same for both: not very much. Both the phone and the category will live and die by consumer demand, not some dumb stumble by Samsung.
Huawei’s got a golden opportunity to show what can be done here (even though ongoing legal troubles will make the Mate X tough to come by in the U.S. And in spite of how well the first Fold sells, it seems likely that Samsung has a sequel in the works. Remember how masterfully the company spun the Note after the smoke had cleared? The arrival of its eight-point battery testing turned battery safety from a concern to a feature.
Of course, this will be a short-term setback from the company and product. Consumers will smartly be cautious, even after the company says it’s hammered out the original issues and firmed up a release date. If there’s major learning from the Note debacle that can be applied here, it’s that companies can be too eager to sound the all clear. Remember, the Note 7 was subject to two recalls.
But like the Note 7, these early misadventures will likely do little to impact the future of foldables — or Samsung’s bottom line.
Analysts have been all too happy to discuss 5G’s cart and horse problem, even as they wax poetic about the wireless technology’s future. Networks require devices and devices require networks. And while many have positioned 2019 as the year of 5G, both seem to be trickling out at a 2G rate.
Verizon (disclosure: our parent company’s parent company) just revealed a one-two punch, opening up preorders for the Galaxy S10 5G and announcing a list of 20 cities that will be getting the technology before year’s end.
The markets run coast to coast in the continental United States, including: Atlanta, Boston, Charlotte, Cincinnati, Cleveland, Columbus, Dallas, Des Moines, Denver, Detroit, Houston, Indianapolis, Kansas City, Little Rock, Memphis, Phoenix, Providence, San Diego, Salt Lake City and Washington DC.
That bunch join Minneapolis and Chicago, which had 5G turned on in certain areas earlier this month.
The S10 5G, meanwhile is the first of two 5G phones announced by Samsung this year. The company will also be selling a 5G version of the Fold in certain markets — assuming it gets to the bottom of the base model’s screen issues. One assumes that a 5G version of the Note is also in the works.
At $1,300 for the 256GB model and $1,400 for the 512GB version, the 5G model is a downright bargain compared to the Fold, which starts at $1,980. We can probably expect 5G models to be priced north $1,000 for a little while, at least. There are also carrier contracts available if renting to own is your thing.
When I interacted with the S10 5G earlier this year, there wasn’t much to discuss, as it was a dummy model that wouldn’t actually turn on. But you can expect something like a premium version of the Samsung flagship with a larger battery to deal with that extra 5G power consumption.
The Galaxy Fold has been the most polarizing product I can recall having reviewed. Everyone who saw it wanted to play with the long-promised smartphone paradigm shift. The results, on the other hand, were far more mixed.
If nothing else, the Fold has a remarkably high Q-Rating. Each person who saw me using the product had at least a vague idea of what it was all about. I honestly can’t remember the last time I’ve had that reaction with a non-iPhone device. That’s great from brand perspective. It means a lot of people are curious and potentially open to the notion that the Samsung Galaxy Fold is the future.
Of course, it also means there are a lot of people looking on if you fail.
In some ways, this past week with the Samsung Galaxy Fold has been an extremely public beta. A handful of samples were given out to reviewers. Most worked fine (mine included), but at least three failed. It’s what we in the industry call a “PR nightmare.” Or at least it would be for most companies.
Samsung’s weathered larger storms — most notably with the Galaxy Note 7 a few years back. Of course, that device made it much further along, ultimately resulting in two large-scale recalls. The nature of the two issues was also vastly different. A malfunctioning screen doesn’t put the user at bodily risk like an exploding battery. The optics on these things don’t get much worse than having your smartphone banned from planes.
As of this writing, the Fold is still set to go on sale, most likely this year. To be perfectly frank, the April 26 release date seemed overly optimistic well before the first reports of malfunctioning units. It’s never a great sign when a device is announced in February and is only made available for review a few weeks ahead of launch. It’s kind of like when a studio doesn’t let reviewers watch a film before release. It doesn’t necessarily mean it’s bad, but it’s something to keep an eye on.
That’s the thing. The Galaxy Fold is the kind of device you want badly to succeed. You want it to be great and you want Samsung to sell a billion because it’s a genuinely exciting product after a decade of phones that look mostly the same. There’s also the fact that Samsung has essentially been hyping this thing for eight years, since it debuted a flexible display at CES 2011.
In spite of that, however, the home stretch feels rushed. Samsung no doubt saw the writing on the wall, as companies like Huawei readied their own foldable. And while Royole beat the fold to market, Samsung still had a very good shot at the claim of first commercially viable foldable on the market, with a decade of Galaxy devices under its belt and hand-in-hand work with the Google team to create an Android UX that makes sense on a pair of very different screens.
[Source: iFixit]
But this iFixit teardown speaks volumes. “Alarmingly” isn’t the kind of word you want/expect to hear about a company like Samsung, but there it is, followed directly by “fragile” — itself repeated five times over the course of the write-up. iFixit’s findings match up pretty closely with Samsung’s own reports:
A fragile display means knocking it the wrong way can result in disaster.
A gap in the hinges allows dirt and other particles to wedge themselves between the folding mechanism and screen.
Don’t peel off the protective layer. I know it looks like you should, but this is probably the easiest way to wreck your $2,000 phone that doesn’t involve a firearm or blender.
What makes all of this doubly unfortunate is that Samsung has about as much experience as anyone making a rugged phone that works. I feel confident that the company will do just that in future generations, but unless the company can come back with definitive evidence that it’s overhauled the product ahead of launch, this is a difficult product to recommend.
Samsung knew the first-gen Galaxy Fold would be a hard sell, of course. The company was pretty transparent about the fact that the experimental form factor, coupled with the $1,980 price tag, meant the device will only appeal to a small segment of early adopters.
Even so, the company managed to sell out of preorders — though it didn’t say how large that initial run was. Nor are we sure how many users have canceled in the wake of this past week’s events. Certainly no one would blame them for doing so at this point.
But while the apocalyptic shit-posters among us will declare the death of the foldable before it was ever truly born, whatever doesn’t kill Samsung has only made it stronger. And this misfire could ultimately do that for both the company and the category, courtesy of its informal beta testing.
Rewind a mere week or so ago (seriously, it’s only been that long), when we finally got our hands on the Galaxy Fold. I was impressed. And I certainly wasn’t alone. Admittedly, there’s a bit of a glow that first time you see a device that’s seemingly been teased forever. The fact that it exists feels like a kind of victory in and of itself. But the Fold does an admirable job marrying Samsung’s hardware expertise with a new form factor. And more importantly, it’s real and works as advertised — well, mostly, at least.
The truth is, I’ve mostly enjoyed my time with the Galaxy Fold. And indeed, it’s been fun chronicling it on a (nearly) daily basis. There are some things the form factor is great for — like looking at Google Maps or propping it up to watch YouTube videos on the elliptical machine at the gym. There are others when the bulky form factor left me wanting to go back to my regular old smartphone — but those trade-offs are to be expected.
I both like the Fold’s design and understand the criticism. Samsung’s done a good job maintaining the Galaxy line’s iconic design language. The foldable looks right at home alongside the S and Note. That said, the rounded backing adds some bulk to the product. And while open, the device is thinner than an iPhone, when folded, it’s more than double the thickness, owing to a gap between the displays. It’s quite skinny in this mode, however, so it should slip nicely into all but the tightest pants pockets.
In practice, the folding mechanism might be the most impressive part of the product. The inside features several interlocking gears that allow the product to open and shut with ease and let users interact with the device at various states of unfold. I found myself using the device with it open at a 90-degree angle quite a bit, resting in my hand like an open book. The Fold features a pair of magnets on its edges, which let you close it with a satisfying snap. It’s weirdly therapeutic.
Really, the biggest strike against the device from a purely aesthetic standpoint is that it’s not the Mate X. Announced by Huawei a few days after the Fold’s big unveil, the device takes a decidedly more minimalist approach to the category. It’s an elegant design that features less device and more screen, and, honestly, the kind of thing I don’t think most of us expected until at least the second-generation product.
The gulf between the two devices is especially apparent when it comes to the front screen. The front of the screen is around two-fifths bezel, leaving room for a 4.6-inch display with an awkward aspect ratio. The Mate X, meanwhile, features a 6.6-inch front-facing AND 6.4-inch rear-facing display (not to mention the larger eight-inch internal display to the Fold’s 7.3).
There’s reason to recommend the Fold over the Mate X, as well. I can’t speak to the difference in user experience, having only briefly interacted with the Huawei, but the price point is a biggie. The Mate X starts at an even more absurd $2,600, thanks in part to the fact that it will only be available in a 5G version, adding another layer of niche.
That price, mind you, is converted from euros, because 1) The product was announced at MWC in Barcelona and 2) U.S. availability is likely to be a nonstarter again, as the company continues to struggle with U.S. regulators.
Of course, the Fold’s U.S. availability is also in limbo at the moment, albeit for very different reasons.
I ultimately spent little time interacting with the front screen. It’s good for checking notifications and the like, but attempting to type on that skinny screen is close to impossible, with shades of the new Palm device, which implements its own shortcuts to get around those shortcomings. The inside, meanwhile, takes a butterfly keyboard approach, so you can type with both thumbs while holding it open like a book.
There’s also the issue of app optimization. A lot of this can be chalked up to an early version of a first-gen device. But as with every new device, the equation of how much developer time to invest is largely dependent on product adoption. If the Fold and future Fold’s aren’t a success, developers are going to be far less inclined to invest the hours.
This is most painfully obvious when it comes to App Continuity, one of the device’s primary selling points from a software perspective. When working as advertised, it makes a compelling case for the dual screens. Open something on the front and expand your canvas by unfolding the device. Google is among the companies that worked directly with Samsung to optimize apps this way, and it’s particularly handy with Maps. I used it a fair amount on my trip last week to Berkeley (shout out to the fine people at Pegasus Books on Shattuck).
When an app isn’t optimized, Samsung compels you to restart it, or else you get a nasty case of letterbox bars that retain the aspect ratio of the front screen. Continuity isn’t designed to work the other way, either — opening something on the large screen and then transferring to the front. That’s a bit trickier, as shutting the phone is designed to offer a kind of finality to that session, like hitting the power button to put the device to sleep.
I get that, and like many other pieces here, it will be interesting to see how people utilize it. Aside from the obvious hardware concerns, much of the work on the second-generation device will center around learnings from how users interact with this model. I know I surprised myself when I ended up using the 7.3-inch screen to snap photos. It felt silly — like those people who bring iPads to photograph events. But it’s ultimately a much better viewfinder than that measly 4.6-incher.
That’s really just the tip of the iceberg for the inside screen, of course. The size, which is somewhere between phablet and mini tablet, provides ample real estate that can still be held in one hand. It’s a great size for short videos. I’ve watched a lot of YouTube on this thing, though the speakers (a small series of holes on the upper and lower edges) leave a lot to be desired.
And the seam. I found myself uttering the phrase “it could be worse” a lot. Like so much of the general aesthetic (including the odd green-gold color of my Fold’s casing), it’s lighting-dependent. There are plenty of times when you don’t see it all, and other when the glare hits it and makes it look like a line right down the center.
I realized after snapping a couple of photos that it’s particularly apparent in many shots. That probably gives a false impression of its prominence. It sucks that there’s one at all, but it’s not a surprise, given the nature of the design. You mostly don’t notice it, until your finger swipes across it. And even then it’s subtle and totally not a dealbreaker, unlike, say, the massive gap that made the ZTE Axon M look like two phones pasted together.
I love the ability to stand the device up by having it open at a 90-degree angle, so I can watch videos while brushing my teeth. But this orientation blocks the bottom speakers, hampering the already iffy sound. Thankfully, your $1,980 will get you a pair of the excellent Galaxy Buds in box. It’s hard to imagine Apple bundling AirPods with the next iPhone, but I guess stranger things have happened, right?
Multi-Active Window is the other key software piece. It’s something that has been available on other Samsung devices and certainly makes sense here. Open an app, swipe left from the right side of the screen and a tray will open. From there, you can open up to three apps on the display. Once open, the windows feature a small tab at the top that lets you rearrange them.
It’s handy. I used it the most during those times I had a video playing on an exercise machine, so I didn’t have to close out of everything to check emails and Twitter. I’m a gym multi-tasker. I’m sorry, it’s just who I am now.
It worked quite well on the whole, courtesy of robust internals, including 12GB of RAM and a Snapdragon 855. The primary issue I ran into was how some of the apps maintained that half-screen format after I closed out and reopened. I’m sure some people will prefer that, and I’m honestly not sure what the ideal solution is there.
The Fold’s also got a beefy battery on board. Like Huawei’s, it’s split in two — one on either side of the fold. They work out to a beefy 4,380 mAh. That’s just slightly less than Huawei’s 4,500, but again, the Mate X is 5G by default — which means it’s going to burn through mAhs at a faster rate.
Ultimately, the Fold’s greatest strength is Samsung itself. I understand why you probably just did a double take there in the wake of the company’s latest hardware scandal, but the fact is that the company knows how to build phones. The Fold was very much built atop the foundation of the successful Galaxy line, even while it presents a curious little fork in the family tree.
That means a solid and well-thought-out user experience outside of the whole fold thing.
That list includes great cameras with excellent software features and clever tricks like the new Wireless PowerShare, which lets you fold up the phone and charge up those Galaxy Buds or another phone while it’s plugged in. For better or worse, it also includes Bixby. Our model was a European version that didn’t have the full version, but I think I’ve made my thoughts on the smart assistant pretty well known over the last couple of years.
The devoted Bixby button is very much here. And yes, I very much accidentally pressed it a whole bunch. The headphone jack, on the other hand, is conspicuously absent, which is no doubt a big driver behind the decision to include Galaxy Buds. The Fold is an anomaly in a number of ways, but it’s hard to shake the feeling that this might finally represent the beginning of the end for the port on Samsung’s premium devices.
Also absent is the S Pen. The stylus began life on the Note line and has since branched out to other Samsung devices. I suspect the company would have had a tough time squeezing in space for it alongside the dual batteries, and maybe it’s saving something for future generations, but this does feel like the ideal screen size for that accessory.
I’m parting ways with the Fold this week, per Samsung’s instructions. Unlike other products, giving it up won’t feel that tough. There wasn’t a point in the past week when the Fold didn’t feel like overkill. There were, however, times when my iPhone XS screen felt downright tiny after switching back.
In many ways, the foldable phone still feels like the future, and the Fold feels like a stop along the way. There are a lot of first-gen issues that should be/should have been hammered out before mass producing this device. That said, there are certain aspects that can only really be figured out in real-world testing. Take the fact that Samsung subjected the device to 200,000 mechanical open and closes. That’s a lot, and probably more than the life of just about any of these devices, but people don’t open and close like machines. And when it comes to the screen, well, a little dirt is bound to get between the gears, both metaphorically and literally.
As I close this Galaxy Fold a final time, it seems safe to say that the device represents a potentially exciting future for a stagnant smartphone space. But that’s the thing about the future — it’s just not here yet.
While Samsung performs its own internal investigations, the folks at iFixit had plenty to say about the Galaxy Fold in their own teardown. The writeup is a bit of a rollercoaster ride, admiring the “ambitious first-generation device,” while noting some clear flaws in the way the foldable was put together.
There’s a full 19 step breakdown of the product that adheres to the site’s customarily thorough breakdown, but the key takeaway here is the “alarmingly fragile” display mechanism. “Alarmingly” isn’t the kind of word you see tossed around lightly on a site like iFixit.
“Initial findings from the inspection of reported issues on the display showed that they could be associated with impact on the top and bottom exposed areas of the hinge,” Samsung wrote on Monday when it official pushed the Fold’s release back to an undisclosed date. That certainly appears to confirm the relatively fragile nature.
iFixit also did the unthinkable, pealing back the protective display, which has been mistaken for the user replaceable adhesive plastic Samsung’s other devices ship with. As expected, it didn’t go great. “In all known cases (including ours!), removing this layer kills the display,” the site writes. “The display could technically function without the layer, but it is so tightly adhered and the display is so fragile that it’s difficult to remove without applying display-breaking pressure.”
The site was suitably impressed with the hinge mechanism, but notes that “large gaps around the spine let dirt right in, possibly getting trapped between hinge and display.” That’s in line with one of the two points in Samsung’s own reporting of “an instance where substances found inside the device affected the display performance.”
The teardown appears to confirm fears that the issues could ultimately be broader than a few defective review units. Hopefully Samsung will push things back enough to properly address the above.
I will say this about the Galaxy Fold, however: it’s been a hell of a conversation piece. I’ve had a LOT of dialogues with strangers since I started using it as my day-to-day. And let’s be honest, that’s a big part of being an early adopter.
The Galaxy Fold is also the most polarizing device I can recall have used. Everyone who sees the thing wants to play with it, but reaction has been very mixed. I was at a Fedex store the other day and ended up handing it off to two of the four employees during the five minutes I was waiting to get a package.
Interestingly, they all seemed to be aware of the screen issues. Foldables have captured the public imagination like few recent consumer electronics. That’s going to be a mixed bag for Samsung. On the upside, it means a larger potential user base. On the downside, it more people are looking on as the company figures out what to do with a malfunctioning product.
On the whole, people at the FedEx store and the various TSA/airline employees I’ve interacted with have been impressed by the product. One said it was smaller than she expected, which took me back a bit, after so many have commented on how bulky it is. I suppose she was expecting me to unfold an iPad.
Some of the TechCrunch writers/editors were a bit less impressed when I had the product with me at our robotics event last week. Tough crowd, obviously.
I’ve fallen somewhere between the two. The fold is undoubtedly an impressive bit of engineering when it’s working. For now, it seems our early suspicions that the device wasn’t ready for prime time appear to have been on the mark, as the company has shifted from “a limited number of early Galaxy Fold samples” to pushing back the launch indefinitely.
It opens up the field the number of other already announced foldable devices (assuming they don’t experience similar problems). Of course, Samsung’s product lines, it should be noted, have bounced back from worse.
Anyway, this marks the end of my daily notes. I still plan to have a review this week, in spite of, well, everything.
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Four days out from the Galaxy Fold’s official release date, Samsung is pushing things back a bit, according to a report from The Wall Street Journal. There’s no firm time frame for the launch, though the phone is still expected “in the coming weeks.”
TechCrunch’s reviewer Brian Heater says he hasn’t experienced any issues with his device, but a number of others reported malfunctioning displays.
The company has launched a new plan called SiriusXM Essential, targeting those who listen in-home and on mobile devices. The streaming-only plan is also more affordable — $8 per month, versus the $15.99 per month (and up) plans for SiriusXM’s satellite radio service for cars.
That’s right, $420 million for a vape maker. CEO Bharat Vasan said, “This financing round allows us to invest in new products and new markets, including international growth in markets like Canada and exploring opportunities in hemp-based CBD extracts.”
The service is a joint venture between Sony, its payment services subsidiary and five licensed taxi companies. Because ride-hailing with civilian cars is illegal in Japan, the service will focus on connecting licensed taxis with passengers.
This week’s episode of Equity addresses the aforementioned cannabis vaping round, followed up by an Equity Shot about the Fastly S-1. Meanwhile, on Original Content we reviewed Donald Glover’s “Guava Island” and discussed the new season of “Game of Thrones.”
Samsung has just confirmed that it will delay the release of the Galaxy Fold. Confirming this morning’s report, the company sent TechCrunch a statement noting that the foldable will not make its previously announced Friday ship date.
Once again, no details on availability are forthcoming — which is honestly probably for the best, as the company assesses the situation. The news follows reports of malfunctioning displays from multiple reviewers. They were in the minority — ours is still working just fine — but three or four in such a small sample size is enough to raise concern.
The company says it will “announce the release date in the coming weeks.”
The statement is understandably still a bit defensive, but this time out, Samsung actually has “initial findings” to share from those faulty units. According to the company,
Initial findings from the inspection of reported issues on the display showed that they could be associated with impact on the top and bottom exposed areas of the hinge. There was also an instance where substances found inside the device affected the display performance.
It’s bad news for the device that’s being positioned as the future of both Samsung and the mobile space in general, but the company’s been through worse PR and come out largely unscathed. The Galaxy Note 7 ultimately did little to damage Samsung’s bottomline, thanks to a booming component business. And that product was already shipping — resulting in two separate recalls.
At least here the company was able to delay the device before it started shipping. It’s hard to say precisely how widespread these issues are — and preproduction units are notorious for having issues. But the statement does appear to a cautious admission that there’s more going on here than just reviewers accidentally peeling back the protective layer.
We’ve been skeptical of Samsung’s ability to launch the device since its announcement earlier this year. The company has been teasing flexible display technology since CES 2011, but a lack of devices at the Fold’s announcement and at Samsung’s Mobile World Congress the following week left us wondering if it would be able to deliver on a very aggressive April 26 release date. Looks like we just got the answer.
Here’s the full statement,
We recently unveiled a completely new mobile category: a smartphone using multiple new technologies and materials to create a display that is flexible enough to fold. We are encouraged by the excitement around the Galaxy Fold.
While many reviewers shared with us the vast potential they see, some also showed us how the device needs further improvements that could ensure the best possible user experience.
To fully evaluate this feedback and run further internal tests, we have decided to delay the release of the Galaxy Fold. We plan to announce the release date in the coming weeks.
Initial findings from the inspection of reported issues on the display showed that they could be associated with impact on the top and bottom exposed areas of the hinge. There was also an instance where substances found inside the device affected the display performance.
We will take measures to strengthen the display protection. We will also enhance the guidance on care and use of the display including the protective layer so that our customers get the most out of their Galaxy Fold.
We value the trust our customers place in us and they are always our top priority. Samsung is committed to working closely with customers and partners to move the industry forward. We want to thank them for their patience and understanding.
Can’t say we didn’t see this coming. Four days out from the Galaxy Fold’s official release date, Samsung is pushing things back a bit, according to a report from The Wall Street Journal that cites “people familiar with the matter.”
There’s no firm time frame for the launch, though the phone is still expected “in the coming weeks,” at some point in May. We’ve reached out to Samsung for comment and will update accordingly. When a number a reviewers reported malfunctioning displays among an extremely small sample size, that no doubt gave the company pause.
I’ve not experienced any issues with my own device yet, but this sort of thing can’t be ignored. Samsung’s initial response seemed aimed at mitigating pushback, writing, “A limited number of early Galaxy Fold samples were provided to media for review. We have received a few reports regarding the main display on the samples provided. We will thoroughly inspect these units in person to determine the cause of the matter.”
Samsung Galaxy Fold launch events in Hong Kong and Shanghai have been postponed. They were originally scheduled for this Tuesday and Wednesday, respectively.
It also went on to note that the problems may have stemmed from users attempting to peel back a “protective layer.” Things took a turn to the more cautious over the weekend, however, when it was reported that the phone’s launch events in parts of Asia would be delayed (we reached out about that, as well, but haven’t heard back). Since then, a larger delay has seemed all but inevitable.
I’m starting to get that thing where my iPhone XS screen feels super tiny when I switch back from the Fold to send a text message from my number. Someone recently asked me if I’m going to have trouble giving the device back to Samsung in a few days, and while the answer is a decided “not really,” the march toward even larger screens does feel inevitable — and I do believe folding phones will be an important part of that push.
Of course, I also believe that we’re as close as a generation or two out from this first shot on that foldable feeling pretty big and bulky (some folks who’ve seen the phone have already said as much about it). I’m back at the airport today, and both airline representatives and TSA agents (who see a LOT of phones as people are checking in) seem pretty impressed with it.
I had the phone standing up at a 45 degree angle on the bathroom sink this morning to watch the news as I brushed my teeth. That’s pretty neat. And If I’d had the forethought, I have loaded a couple of movies on it for the flight. It definitely beats the seatback screens on Delta.
In addition to the fingerprints on the outside, the inside gets like crazy dusty after any kind of use. And a lot of that collects in the little reservoir between the screen protector and the outside lip.
The top shot is from yesterday’s A’s game (the dark line along the seam is a shadow). You can use the front facing screen as a view finder while taking photos, but it’s pretty small. The inside, meanwhile, makes you feel like one of those people who use their iPads to take photos in public. Once you get over that, it’s a pretty nice way to view shots, though.
And no, it’s not broken yet. We’re still waiting for official word from Samsung about what happened there. The Fold is on track for an April 26 release here in the States, in spite of everything, and even as a China release appears be delayed.
Apologies for skipping day three. This kept me extremely busy yesterday. Though the Galaxy Fold remained a constant companion.
Before you ask (or after you ask on Twitter without having read beyond the headline), no it’s hasn’t broken yet. It’s actually been fairly robust, all things considered. But here’s the official line from Samsung on that,
A limited number of early Galaxy Fold samples were provided to media for review. We have received a few reports regarding the main display on the samples provided. We will thoroughly inspect these units in person to determine the cause of the matter.
Separately, a few reviewers reported having removed the top layer of the display causing damage to the screen. The main display on the Galaxy Fold features a top protective layer, which is part of the display structure designed to protect the screen from unintended scratches. Removing the protective layer or adding adhesives to the main display may cause damage. We will ensure this information is clearly delivered to our customers.
I’ll repeat what I said the other day: breakages and lemons have been known to happen with preproduction units. I’ve had it happen with device in a number of occasions in my many years of doing this. That said, between the amount of time it took Samsung to let us reviewers actually engage with the device and the percentage of problems we’ve seen from the limited sample size, the results so far are a bit of a cause for a concern.
The issue with the second bit is that protective layer looks A LOT like the temporary covers the company’s phones ship with, which is an issue. I get why some folks attempted to peel it off. That’s a problem.
At this point into my life with the phone, I’m still impressed by the feat of engineering went into this technology, but in a lot of ways, it does still feel like a very first generation product. It’s big, it’s expensive and software needs tweaks to create a seamless (so to speak) experience between screens.
That said, there’s enough legacy good stuff that Samsung has built into the phone to make it otherwise a solid experience. If you do end up biting the bullet and buying a Fold, you’ve find many aspects of it to be a solid workhorse and good device, in spite of some of the idiosyncrasies here (assuming, you know, the screen works fine).
It’s a very interesting and very impressive device, and it does feel like a sign post of the future. But it’s also a sometimes awkward reminder that we’re not quite living in the future just yet.
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Samsung has issued a statement about its new folding phone. Apparently a number of reviewers either mistakenly destroyed their phone screens or had the screens bork on them after a few days of use.
In response, the company said it “will thoroughly inspect these units in person to determine the cause of the matter.”
The company will sell 75 million shares of Class A common stock at $19 apiece in an offering that should attract $1.4 billion in new capital for the visual search engine.
Apple says it’s building a new, 9,000-square-foot Material Recovery Lab based in Austin, Texas, focused on discovering future recycling processes.
Special counsel Robert Mueller (L) arrives at the U.S. Capitol for closed meeting with members of the Senate Judiciary Committee June 21, 2017 in Washington, DC. (Photo by Alex Wong/Getty Images)
Granted, this isn’t primarily a tech story, but it’s obviously going to be the big news of the day, and tech plays a key role. Check out all our coverage of the latest developments at the link above.
The company is scooping up the team behind highlight-sharing app Highly. This talent could help Twitter build its own version of Highly or develop other ways to excerpt the best content from websites and get it into the timeline.
Autonomous vehicles are hard and everyone seems to be waking up to that fact. Companies like Phantom Auto are expanding into new areas as they wait for autonomous vehicle developers to catch up.
Samsung has issued a statement about its new, folding phone as early photos of tech reviewers with their shiny new toys were replaced on social media (and in numerous columns) with complaints from those same tech reviewers about problems with the phone’s screen.
Apparently a number of reviewers either mistakenly destroyed their phone screens or had the screens bork on them after a few days of use. It’s not a good look for Samsung.
This sort of thing can happen with pre-production models. I’ve certainly had issues with review units in the past, but these reports are worth mentioning as a note of caution with a product, which we were concerned might not be ready for prime time only a couple of weeks ago.
At the very least, it’s as good a reason as any to wait a couple of weeks before more of these are out in the world before dropping $2,000 to determine how widespread these issues are.
All of that said, I’ve not had any technical issues with my Samsung Galaxy Fold. So far, so good. A day or so in does, however, tend to be the time when the harsh light of day starts to seep in on these things, after that initial novelty of the company’s admittedly impressive feat begins wane.
In its response, the company is bravely forging ahead and (sort of) blaming the messenger for not using the thing correctly. The phones will go on sale in the U.S. on April 26 as planned.
No less esteemed a tech reviewer than Recode’s Walt Mossberg called the response from Samsung “Really weak“.
Here’s the statement in full:
“A limited number of early Galaxy Fold samples were provided to media for review. We have received a few reports regarding the main display on the samples provided. We will thoroughly inspect these units in person to determine the cause of the matter.
Separately, a few reviewers reported having removed the top layer of the display causing damage to the screen. The main display on the Galaxy Fold features a top protective layer, which is part of the display structure designed to protect the screen from unintended scratches. Removing the protective layer or adding adhesives to the main display may cause damage. We will ensure this information is clearly delivered to our customers.”
I would be remiss if I didn’t mention the technical difficulties multiple reviewers have been experiencing withtheir units. This sort of thing can happen with pre-production models. I’ve certainly had issues with review units in the past, but these reports are worth mentioning as a note of caution with a product, which we were concerned might not be ready for prime time only a couple of weeks ago.
At the very least, it’s as good a reason as any to wait a couple of weeks before more of these are out in the world before dropping $2,000 to determine how widespread these issues are.
All of that said, I’ve not had any technical issues with my Samsung Galaxy Fold. So far, so good. A day or so in does, however, tend to be the time when the harsh light of day starts to seep in on these things, after that initial novelty of the company’s admittedly impressive feat begins wane.
Using the device in the lead up to our big robotics event tomorrow, a number of TechCrunch co-workers have demanded a few minutes with the the device. The reviews so far have been mixed, with most calling out the thick form factor when closed, as well as the crease. The latter, at least, is really dependent on environmental lighting. In the case of the backstage area at this event, it’s harsh overhead office lighting, which tends to bring the crease out when the phone is facing the ceiling.
On the other hand, I used the phone to watch videos while using the elliptical at the gym this morning. Titled toward me, the crease wasn’t noticeable. It’s also one of the ideal use cases for the product.
Some more notes:
The company’s stated “day long” life is pretty on the money. I got just over 24 hours of standard use (subtracting my five hours on a plane).
The screen has a built-in protector that looks a lot like the kind of adhesive guard Samsung’s phones ship with. Don’t peel it off. You will damage the phone.
I accidentally (I swear) dropped it off a table. It survived unscathed.
So many fingerprints.
The green finish looks like gold under certain lights. I definitely would have gone in for blue.
We used the handset for a Google Hangout. It was kind of perfect. Kept open at an angle, it can prop itself up.
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After eight years of teasing a folding device, Samsung finally pulled the trigger with an announcement at its developer’s conference late last year. But the device itself remained mysterious.
Earlier this week, Brian Heater finally held the Galaxy Fold in his hands, and he was pretty impressed.
Some viewers following live coverage of the Notre-Dame Cathedral broadcast on YouTube were met with a strangely out-of-place info box offering facts about the September 11 attacks. Ironically, the feature is supposed to fact check topics that generate misinformation on the platform.
Disney now has a 67 percent ownership stake in Hulu — which it gained, in part, through its $71 billion acquisition of 21st Century Fox. Comcast has a 33 percent stake.
The “I” in question is our security reporter Zack Whittaker, who filed a Freedom of Information request with U.S. Citizenship and Immigration Services to obtain all of the files the government had collected on him in order to process his green card application. Seven months later, disappointment.
The company announced that it will integrate Salesforce.org — which had been a reseller of Salesforce software and services to the nonprofit sector — into Salesforce itself as part of a new nonprofit and education vertical.
More like day 1.5, honestly. I spent most of yesterday sick in bed, with fever dreams of flexible displays. This morning, however, I’m already at the airport. Out if the the frying pan and into the fire, as it were.
Point is, after spending an hour or so with the phone yesterday, I now find myself with the Galaxy Fold in hand (or hands, as the case may be). I’ll be using the foldable as my day to day phone as I travel to California for our robotics event.
I’ll have a full review for you in a few days, but in the meantime, I’ll be using these pages to offer up something a bit more stream of consciousness, as I learn to adapt to life with a folding phone.
The main reaction of bystanders is that of bafflement. I had the phone unfolded, with the Delta app open and an airline employee asked, “Is that a phone?” Fair enough.
When I responded in the affirmative, the same employee asked, “is it a Nokia?” No sir, it is not a Nokia.
Attempting to scan my boarding pass at the TSA check-in, I realized it was actually too large for the scanner. I had readjust it at a weird angle, but I was able to get it to scan.
Three hours into the day, battery’s at 87 percent with standard usage, including some Spotify.
App continuity is swell, being able to open an app on the small screen and pick up where you left off when the phone is open. It’s super annoying for those apps that haven’t updated, though. Twitter, for instance, opens with letterbox bars and asks if you’d like to restart.
I really like the size here. It fits nicely in pants pockets when folded, and the 7.3 inch display is big, but not too big.
Every surface is a fingerprint magnet.
The crease is noticeable, but generally not distracting. Occasionally when the light hits it, it really does pick up, though.
The Fold comes with a pair of Galaxy Buds, which is pretty terrific. They’re great Airpod competitors, and it’s a nice touch for those willing to pay nearly $2,000 on a phone.
Samsung compares the fold mechanism to a book in the way it’s opened and close. Interestingly, I actually find myself using the phone half opened at a 45 degree angle more than I expected.
Yes, the snap shut is still satisfying.
Questions about the Galaxy Fold? Hit me up on Twitter: @bheater
