Collaboration and communication tools have been the backbone of pandemic-induced remote work and the solution to corporate and societal social distancing. During the early days of the Covid-19 crisis, companies transitioned people to working from home and schools threw children into online learning. Zoom quickly became the go-to app for companies, schools, families and friends to gather virtually.
Over a short period beginning in 2020, the company saw massive growth. In the first fiscal quarter affected by the pandemic, Zoom's revenue increased by 169% on an annualized basis; the next quarter, that figure was
In February of this year, the company posted better-than-expected earnings results for the fiscal year that ended in January 2023. Adoption of Zoom One (a bundled service offering) continued accelerating and helped drive revenue. Zoom Phone's cloud-based system grew more than 100% year-over-year, surpassing 5.5 million total seats in FYQ4.
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Yet Wall Street analysts have expressed concerns about Zoom’s consumer business and competition from offerings like Microsoft Teams. For starters, the macroeconomic climate has reduced the growth trajectory for Zoom and other collaboration services. Many companies brought workers back to the office at the same time that social distancing guidelines were relaxed. These trends, along with the possibility of a recession, significantly contributed to slowed growth for Zoom and others. The economic environment has also led companies to look more closely at costs, while layoffs have also likely led to a decline in subscriptions.
Last month, Zoom itself announced plans to lay off 15% of its workforce—about 1, 300 employees. In response to mistakes in over-hiring, Zoom CEO Eric Yuan is taking responsibility by cutting his own salary by 98% and forgoing bonuses. In an email to employees he stated, "I want to show accountability not just in words but in my own actions." While the move likely doesn't materially impact Yuan’s finances, it does show a level of accountability beyond that of many tech executives who have enacted recent layoffs.
I recently wrote about people's fears about return-to-office (RTO) orders and proximity bias—the notion that company leaders could give preferential treatment to the non-remote employees working in closer proximity to them. Zoom Spots, introduced late last year, aims to improve the hybrid work experience with a way for hybrid and remote workers to gather watercooler-style.
Repair: Zoom Nikkor 35 70mm F/3.3 4.5 Af (n)
According to a recent Gallup Poll, two out of 10 workers feel they have a "best friend" at work. Robert Waldinger, a psychiatry professor at Harvard Medical School, reports that people with close friends at work "were much less likely to leave their job for another one because they had a friend at work." Zoom's focus on facilitating connections within an organization shows that the company is paying attention to workers' evolving needs as RTO orders combine with the ongoing trend of hybrid work.
When Zoom became a household name and took its leadership position in the video conferencing market, it edged out incumbent rival Skype, which is owned by Microsoft. The best (and most honest) depiction of this is illustrated in comedian Hasan Minhaj's Netflix comedy show. Minhaj joked: "By the way, Skype, how did you drop the ball here? This was your moment! You had a 17-year head start and Zoom ate your lunch in two weeks. You're a verb no one does! Your friend will be like, ‘Let me Skype you, ’ to which you say: ‘Cool, send me the Zoom link.’” As the adage goes, many truths are said in jest.
However, while Microsoft may have missed the mark during the pandemic in terms of maintaining its incumbent leadership position, the company is making its mark in the collaboration space with Microsoft Teams. Teams integrates neatly with Outlook and a suite of Office365 tools, making it the most logical choice among video conferencing tools for Outlook and Office users. Teams also provides longer free meeting sessions, as well as a growing list of other features. Meanwhile, Cisco's Webex is also unseating some Zoom users with a more user-friendly interface, longer free meeting times and more flexible pricing.
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Zoom must adjust to economic and workforce realities during its internal reset, homing in on pricing strategies and new products while staving off competitors. While Zoom is a leader thanks to its technology and capabilities, it is also priced accordingly, making it more expensive than some competitors.
I think that Zoom shows a keen awareness of the ever-changing needs of workers whether they are in the office, remote or hybrid. The platform really did earn its brand-as-a-verb status during the pandemic when it became the default solution for many people. (My own children even referred to "Zoom school" during lockdown.) Products like Webex and Teams are creating a strong challenge to the company's leadership position. But by introducing platform enhancements like Spots, Zoom is showing a roadmap that is prioritized for human connection, which I feel will be increasingly important in a disparate workforce.
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Moor Insights & Strategy founder, CEO, and Chief Analyst Patrick Moorhead is an investor in dMY Technology Group Inc. VI, Fivestone Partners, Frore Systems, Groq, MemryX, Movandi, and Ventana Micro.iPhone 15 Pro Max to get exclusive 12 MP periscope lens with 6x optical zoom, iPhone 16 Pro and iPhone 16 Pro Max to follow suit in 2024
IPhone 15 Pro Max and iPhone 16 Pro series will use a 12 MP periscope camera with 6x optical zoom. (Image Source: Apple)
The iPhone 15 Pro Max in 2023 and iPhone 16 Pro models in 2024 will feature the long-rumored periscope camera with superior zooming capabilities. The periscope camera in future iPhones will be a 1/3-inch 12 MP sensor with up to 6x optical zoom and sensor-shift image stabilization. Apple's move to a periscope lens is expected to benefit several key camera component suppliers.
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Apple is expected to introduce new camera capabilities with the iPhone 14 launch later this year. Even with the iPhone 14 launch still a few months away, supply chain developments already seem to indicate what's in store for the future. We are now getting to know that the long-rumored periscope lens will be exclusive to the iPhone 15 Pro Max in 2023 and the iPhone 16 Pro series in 2024.
Last year, we reported that Apple has patented a dual-prism periscope zoom camera that is slated to make its way to future iPhones. Known Apple analyst Ming-Chi Kuo had predicted back then that iPhones with periscope cameras will see the light of the day sometime in 2023. Rumors have been flying since then about the possible inclusionof a periscope lens in the iPhone 15 Pro series.
Kuo is now able to offer more insights into how Apple would implement the periscope lens feature and how suppliers stand to gain from it. The 2023 iPhone 15 lineup will likely include the 6.1-inch iPhone 15 and iPhone 15 Pro, and the 6.7-inch iPhone 15 Max and the iPhone 15 Pro Max. According to Kuo, only the iPhone 15 Pro Max will be getting a periscope lens while the rest will make do with a conventional telephoto lens for zooming. In 2024, the new zoom lens will make its way to both the iPhone 16 Pro and the iPhone 16
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