Samsung charged with misleading Galaxy phone owners over water resistance - The Verge

The Australian Competition and Consumer Commission (ACCC) is taking Samsung to court over allegations it misled customers over the nature of various phones’ water resistance. Samsung has been depicting phones in or near to unsuitable environments such as swimming pools and oceans since 2016, the ACCC alleges, when it didn’t have a basis to make this representation.

“The ACCC alleges Samsung’s advertisements falsely and misleadingly represented Galaxy phones would be suitable for use in, or for exposure to, all types of water, including in ocean water and swimming pools, and would not be affected by such exposure to water for the life of the phone, when this was not the case,” ACCC Chair Rod Sims said in a statement. The lawsuit is based on a review of more than 300 advertisements.

Various Galaxy phones are advertised as having IP68 water resistance, meaning that they can last in waters 1.5 meters deep for 30 minutes. But as the ACCC points out, that doesn’t cover all types of water, and Samsung itself says that the Galaxy S10 isn’t advised for beach use. “Samsung showed the Galaxy phones used in situations they shouldn’t be to attract customers,” Mr Sims says, arguing that consumers value water resistance as a feature and were denied an informed choice.

Samsung tells Reuters that it’s standing by its marketing and plans to fight the case.

Let's block ads! (Why?)

https://www.theverge.com/2019/7/4/20682059/samsung-australia-lawsuit-accc-water-resistance

2019-07-04 07:28:24Z
52780326100937

Samsung accused of misleading customers on Galaxy S 'water resistance' - CNET

Samsung's flagship phones have been advertised as IP68 water resistant since 2016.

Josh Miller/CNET

In 2016 Samsung released its first IP68 water-resistant phone, the Galaxy S7. All of the electronics giant's flagship phones have since carried the IP68 certification for water resistance, and have been advertised as water-friendly phones. The Australian Competition and Consumer Commission (ACCC), an Australian consumer watchdog, says this amounts to false advertising, and on July 4 announced it's taking Samsung to court.

There are two key components to the ACCC's issue with Samsung. First, Samsung's advertising indicated that submerging a Galaxy phone under 1.5 meters of water for 30 minutes or less wouldn't impact the device over the course of its lifetime. Second, Samsung advertised phones being used in beaches and pools, even though the IP68 certification only applies to fresh water. 

ACCC reviewed over 300 Samsung ads as the basis for its claims, it said.  

IP68 certified phones are technically water-resistant, not waterproof, and specifically for depths up to 1.5 meters and for 30 minutes or under. IP67 phones, like 2014's Galaxy S5, are resistant for 30 minutes or less for depths of 1 meter or less, but ACCC specifically referred to phones marketed from 2016 on. 

The ACCC claims that Samsung has rebuffed warranty claims by customers who say their phones were damaged by water exposure. The watchdog also notes that Samsung's own website claims the Galaxy S10, its early-2019 flagship phone, is "not advised for beach or pool use." 

Now playing: Watch this: The Galaxy S10 is fantastic

5:14

"The ACCC alleges Samsung's advertisements falsely and misleadingly represented Galaxy phones would be suitable for use in, or for exposure to, all types of water, including in ocean water and swimming pools, and would not be affected by such exposure to water for the life of the phone, when this was not the case," ACCC Chair Rod Sims said.

"Samsung showed the Galaxy phones used in situations they shouldn't be to attract customers," Mr Sims said.

For its part, Samsung says it has noted ACCC's accusations and plans to defend itself in court.

"Samsung stands by its marketing and advertising of the water resistancy of its smartphones," the company said in a statement. "We are also confident that we provide customers with free-of-charge remedies in a manner consistent with Samsung's obligations under its manufacturer warranty and the Australian Consumer Law. Customer satisfaction is a top priority for Samsung and we are committed to acting in the best interest of our customers." 

Let's block ads! (Why?)

https://www.cnet.com/news/samsung-accused-of-misleading-customers-on-galaxy-s-water-resistance-accc/

2019-07-04 04:42:00Z
52780326100937

Former Chrysler CEO Lee Iacocca's greatest accomplishments, from the Mustang to the minivan - Fox Business

Legendary automotive executive Lee Iacocca died on Tuesday at the age of 94.

Continue Reading Below

The son of Italian immigrants, Iacocca reached a level of celebrity matched by few auto moguls.

During the peak of his popularity in the '80s, he was famous for his TV ads and catchy tagline: "If you can find a better car, buy it!" He also wrote two best-selling books and was courted as a presidential candidate.

Though he is known for his successes, he also suffered failures, including being fired from his position as Ford president in 1978. However, he soon went on to Chrysler, where he helped save the automaker as it was drowning in debt.

MORE ON FOXBUSINESS.COM…

In the wake of the auto icon’s death, here are a few of Iacocca’s greatest accomplishments.

Advertisement

He made the Ford Mustang popular

Iacocca’s first burst of fame came with the debut of the Mustang.

In 1960 at the age of 35, Iacocca was the vice president and general manager of the Ford division.

Four year later, when the Mustang was released in 1964, he had convinced his superiors that Ford needed the affordable, stylish coupe to take advantage of the growing youth market.

He broke from tradition by launching the car in April rather than the fall. Ford invited reporters to a 70-car Mustang rally from New York to Dearborn, which generated huge publicity. The car made the covers of TIME and Newsweek the same week.

Six years later, he was named Ford president and immediately undertook an organizational restructuring to cut costs as the company struggled with foreign competition and rising gas prices.

“Lee Iacocca was truly bigger than life and he left an indelible mark on Ford, the auto industry and our country," Bill Ford, chairman of Ford Motor said upon Iacocca's passing. "Lee played a central role in the creation of Mustang.”

He helped save Chrysler in the 1980s

Though Iacocca was fired from Ford in 1978, he was strongly courted by Chrysler and helped cement its turnaround in the 1980s.

In 1979, Chrysler was floundering in $5 billion of debt. It had a bloated manufacturing system that was turning out gas-guzzlers that the public didn't want.

When the banks turned him down, Iacocca and the United Auto Workers union helped persuade the government to approve $1.5 billion in loan guarantees that kept the No. 3 domestic automaker afloat.

Bud Liebler, Chrysler’s former spokesman said Iacocca is the last of an era of brash, charismatic executives who could produce results.

"Lee made money. He went to Washington and made all these crazy promises, then he delivered on them," Liebler said.

Iacocca wrung wage concessions from the union, closed or consolidated 20 plants, laid off thousands of workers and introduced new cars. In TV commercials, he admitted Chrysler's mistakes but insisted the company had changed.

The strategy worked. The bland, basic Dodge Aries and Plymouth Reliant were affordable, fuel-efficient and had room for six. In 1981, they captured 20 percent of the market for compact cars. In 1983, Chrysler paid back its government loans, with interest, 7 years early.

He introduced the minivan

In 1984, just after the automaker paid back its government loans, Iacocca introduced the wildly successful Dodge Caravan and Plymouth Voyager minivans and created a new market.

Bob Lutz, Chrysler’s former head of product development and Iacocca’s colleague, told CNBC that the minivan is what saved the company, even though they had colleagues who opposed the idea.

“Lee kept saying, 'It will work, it will work,'”  Lutz told the outlet. “So we transformed the plant in St. Louis and once it was up and running, we sold out of production almost immediately. Lee was right.”

He bought American Motors

Even though Chrysler was out of debt and seemed stable, Iacocca decided to purchase American Motors in 1987.

Although the $1.5 billion acquisition was criticized at the time, AMC's Jeep brand has become a gold mine for now Fiat Chrysler Automobiles as demand for SUVs surged.

“Lee was an intelligent risk-taker,” Lutz told CNBC. “Look at the decision to buy American Motors. If we had not done that deal, Chrysler never would have acquired the Jeep brand, which would go on to become a big part of Chrysler’s success.”

CLICK HERE TO GET THE FOX BUSINESS APP

He headed a campaign to restore the Statue of Liberty and Ellis Island

In 1982, Iacocca was chosen by then-President Ronald Reagan to lead the Statue of Liberty-Ellis Island Foundation, which oversaw the renovation of the statue and the reopening of Ellis Island as a museum of immigration.

He said he accepted the position as a way to honor his parents, who were Italian immigrants, according to Reuters.The foundation raised more than $350 million, which was more than double its initial goal, the outlet reported.

The statue renovation was completed in 1986 and the museum on Ellis Island was opened in 1990.

FOX Business’ Ken Martin and The Associated Press contributed to this article.

Let's block ads! (Why?)

https://www.foxbusiness.com/business-leaders/lee-iacocca-greatest-accomplishments

2019-07-03 16:00:28Z
52780325474949

Walmart's e-commerce biz is reportedly racking up $1 billion in losses and that's only one problem it has - CNBC

Marc Lore, head of Walmart's U.S. e-commerce business, and Doug McMillon, CEO of Walmart.

Getty Images

Walmart's attempt to catch up with Amazon comes at a huge cost — and it's stirring up hard feelings within the company.

While Walmart has been making investments — like buying Jet.com for $3.3 billion — to try to compete with Jeff Bezos' behemoth, it's been a drag on the big-box business' profitability. So much so that Walmart is now projecting losses of over $1 billion for its U.S. e-commerce division, helmed by Marc Lore, this year, on sales of between $21 billion and $22 billion, according to a report by Vox, citing discussions with multiple sources familiar with those financials.

Walmart didn't immediately respond to CNBC's request for comment on this story.

Frustration has been growing within Walmart as these losses on Lore's team mount, the report said. And now the company is reportedly pressuring Lore's team to sell off some of the digitally native brands it's acquired in an attempt to amass more inventory and gain the expertise of younger, e-commerce leaders. Citing discussions with people familiar, Vox said Walmart has discussed in recent months selling menswear brand Bonobos and women's clothing retailer Modcloth.

Walmart will reportedly likely sell ModCloth this year, for less than its purchase price. It reportedly still plans to hang onto Bonobos.

Vox reported Bonobos, Modcloth and plus-sized fashion brand Eloquii — which it bought last year — are still unprofitable.

And the report said Walmart won't make any more acquisitions of digitally native brands for at least the next year, citing three sources, "barring an incredible acquisition opportunity that is just too good to pass up." Instead, it said the retailer will lean more into incubating its own brands, like it did in creating mattress brand Allswell.

Walmart had previously said it anticipated losses stemming from its e-commerce operations would increase in 2019.

The company also recently announced a major overhaul at Jet, taking steps to more fully integrate the e-commerce platform into its own business. As part of the changes, Jet president Simon Belsham is expected to leave the company in August, with that role dissolving entirely.

Meanwhile, tensions have reportedly been rising between Lore and the CEO of Walmart U.S., Greg Foran, who runs the retailer's bricks-and-mortar stores.

Foran would like for Walmart to put more resources toward cutting prices of items, not building digital brands, Vox reported. The report said Foran is also increasingly frustrated that Lore is getting credit for growing Walmart's online grocery business, which is really more reliant on stores.

This all calls into question just how much longer Lore will be at Walmart.

The e-commerce chief told CNBC in February 2018 he was "absolutely not" leaving the company and that things were "just getting started." That was after rumors started to swirl that he was considering departing. When Lore joined Walmart from the Jet acquisition, he agreed to stay on for five years, through the fall of 2021.

Walmart shares were down less than 1% Wednesday morning. The stock has rallied 19.4% this year, while Amazon shares are up 29%.

Read the full piece from Vox here.

Let's block ads! (Why?)

https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

2019-07-03 14:32:42Z
52780325754502

Walmart's e-commerce biz is reportedly racking up $1 billion in losses and that's only one problem it has - CNBC

Marc Lore, head of Walmart's U.S. e-commerce business, and Doug McMillon, CEO of Walmart.

Getty Images

Walmart's attempt to catch up with Amazon comes at a huge cost — and it's stirring up hard feelings within the company.

While Walmart has been making investments — like buying Jet.com for $3.3 billion — to try to compete with Jeff Bezos' behemoth, it's been a drag on the big-box business' profitability. So much so that Walmart is now projecting losses of over $1 billion for its U.S. e-commerce division, helmed by Marc Lore, this year, on sales of between $21 billion and $22 billion, according to a report by Vox, citing discussions with multiple sources familiar with those financials.

Walmart didn't immediately respond to CNBC's request for comment on this story.

Frustration has been growing within Walmart as these losses on Lore's team mount, the report said. And now the company is reportedly pressuring Lore's team to sell off some of the digitally native brands it's acquired in an attempt to amass more inventory and gain the expertise of younger, e-commerce leaders. Citing discussions with people familiar, Vox said Walmart has discussed in recent months selling menswear brand Bonobos and women's clothing retailer Modcloth.

Walmart will reportedly likely sell ModCloth this year, for less than its purchase price. It reportedly still plans to hang onto Bonobos.

Vox reported Bonobos, Modcloth and plus-sized fashion brand Eloquii — which it bought last year — are still unprofitable.

And the report said Walmart won't make any more acquisitions of digitally native brands for at least the next year, citing three sources, "barring an incredible acquisition opportunity that is just too good to pass up." Instead, it said the retailer will lean more into incubating its own brands, like it did in creating mattress brand Allswell.

Walmart had previously said it anticipated losses stemming from its e-commerce operations would increase in 2019.

The company also recently announced a major overhaul at Jet, taking steps to more fully integrate the e-commerce platform into its own business. As part of the changes, Jet president Simon Belsham is expected to leave the company in August, with that role dissolving entirely.

Meanwhile, tensions have reportedly been rising between Lore and the CEO of Walmart U.S., Greg Foran, who runs the retailer's bricks-and-mortar stores.

Foran would like for Walmart to put more resources toward cutting prices of items, not building digital brands, Vox reported. The report said Foran is also increasingly frustrated that Lore is getting credit for growing Walmart's online grocery business, which is really more reliant on stores.

This all calls into question just how much longer Lore will be at Walmart.

The e-commerce chief told CNBC in February 2018 he was "absolutely not" leaving the company and that things were "just getting started." That was after rumors started to swirl that he was considering departing. When Lore joined Walmart from the Jet acquisition, he agreed to stay on for five years, through the fall of 2021.

Walmart shares were down less than 1% Wednesday morning. The stock has rallied 19.4% this year, while Amazon shares are up 29%.

Read the full piece from Vox here.

Let's block ads! (Why?)

https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

2019-07-03 14:12:59Z
52780325754502

Walmart's e-commerce biz is reportedly racking up $1 billion in losses and that's only one problem it has - CNBC

Marc Lore, head of Walmart's U.S. e-commerce business, and Doug McMillon, CEO of Walmart.

Getty Images

Walmart's attempt to catch up with Amazon comes at a huge cost — and it's stirring up hard feelings within the company.

While Walmart has been making investments — like buying Jet.com for $3.3 billion — to try to compete with Jeff Bezos' behemoth, it's been a drag on the big-box business' profitability. So much so that Walmart is now projecting losses of over $1 billion for its U.S. e-commerce division, helmed by Marc Lore, this year, on sales of between $21 billion and $22 billion, according to a report by Vox, citing discussions with multiple sources familiar with those financials.

Walmart didn't immediately respond to CNBC's request for comment on this story.

Frustration has been growing within Walmart as these losses on Lore's team mount, the report said. And now the company is reportedly pressuring Lore's team to sell off some of the digitally native brands it's acquired in an attempt to amass more inventory and gain the expertise of younger, e-commerce leaders. Citing discussions with people familiar, Vox said Walmart has discussed in recent months selling menswear brand Bonobos and women's clothing retailer Modcloth.

Walmart will reportedly likely sell ModCloth this year, for less than its purchase price. It reportedly still plans to hang onto Bonobos.

Vox reported Bonobos, Modcloth and plus-sized fashion brand Eloquii — which it bought last year — are still unprofitable.

And the report said Walmart won't make any more acquisitions of digitally native brands for at least the next year, citing three sources, "barring an incredible acquisition opportunity that is just too good to pass up." Instead, it said the retailer will lean more into incubating its own brands, like it did in creating mattress brand Allswell.

Walmart had previously said it anticipated losses stemming from its e-commerce operations would increase in 2019.

The company also recently announced a major overhaul at Jet, taking steps to more fully integrate the e-commerce platform into its own business. As part of the changes, Jet president Simon Belsham is expected to leave the company in August, with that role dissolving entirely.

Meanwhile, tensions have reportedly been rising between Lore and the CEO of Walmart U.S., Greg Foran, who runs the retailer's bricks-and-mortar stores.

Foran would like for Walmart to put more resources toward cutting prices of items, not building digital brands, Vox reported. The report said Foran is also increasingly frustrated that Lore is getting credit for growing Walmart's online grocery business, which is really more reliant on stores.

This all calls into question just how much longer Lore will be at Walmart.

The e-commerce chief told CNBC in February 2018 he was "absolutely not" leaving the company and that things were "just getting started." That was after rumors started to swirl that he was considering departing. When Lore joined Walmart from the Jet acquisition, he agreed to stay on for five years, through the fall of 2021.

Walmart shares were down less than 1% Wednesday morning. The stock has rallied 19.4% this year, while Amazon shares are up 29%.

Read the full piece from Vox here.

Let's block ads! (Why?)

https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

2019-07-03 13:44:44Z
52780325754502

HP, Dell, Microsoft, and Amazon look to move some hardware production out of China - The Verge

HP, Dell, Microsoft, and Amazon are the latest companies to consider moving some of their hardware production out of China in light of the ongoing trade war with the US. Nikkei reports that HP and Dell are both looking to move up to 30 percent of their laptop production out of the country, Microsoft may move some Xbox production, and Amazon could move some production of its Kindles and Echo speakers. Acer and Asustek are also exploring production outside of China, according to the report.

The potential moves are all in response to a trade war that has seen the US put a 25 percent tariff on $200 billion worth of goods. While the technology industry has largely remained unscathed, new tariffs could soon extend the fees to laptops, smartphones, and game consoles, adding significant costs that could result in higher prices for consumers and slimmer margins for manufacturers.

These four companies aren’t the only large tech names looking to shift their manufacturing. Nikkei previously reported that Apple is looking at moving up to 30 percent of its hardware production out of China, The Wall Street Journal said that Nintendo might move some Switch production, and Bloomberg said that Google has moved some production of Nest products. Most companies are still looking to keep hardware production in Southeast Asia, with manufacturing moving to a number of countries.

Hardware production has long been centered on China where production costs are cheaper, components of the tech supply chain are concentrated, and manufacturers have increasingly specialized in making cutting-edge tech. That’s been the status quo for two decades, but the tariff situation is quickly showing how tenuous the situation is, with the ongoing trade dispute potentially driving up costs across the industry and companies having no easy way out.

Let's block ads! (Why?)

https://www.theverge.com/2019/7/3/20680789/hp-dell-microsoft-amazon-hardware-production-move-china-trade-war

2019-07-03 13:06:33Z
52780325676969