Data Sheet—Wednesday, August 2, 2017

I’m an elected member of my town’s local school committee and we oversee budget and policy decisions, like which computing devices to buy and how many. We’ve been using iPads in our middle schools for the past three years, and we’re prepping a high school Chromebook initiative starting this fall.

Back in March, without too much fanfare, Apple introduced a new version of its basic 9.7-inch iPad at a lower starting price of $329. Our district has to buy hundreds of iPads a year, so I immediately let our superintendent know the good news. The school’s fiscal year starts in July, so this summer, our dollars will go farther at Apple than in the past.

Price cutting is an obvious way to compete in the education market, where budgets are always tight. Sadly, the cheaper iPad probably had more impact on Apple’s sales to schools than the many improvements the company has made to its classroom and device management software offerings. (A few years ago, every student had to load apps required by the school individually via their own Apple ID—a total nightmare to administer—but now we can do installs systemwide.)

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Lately, Google’s Chromebooks have overtaken Apple products in schools, selling 58% of all devices last year versus Apple’s 14% share for iPads and 5% for Mac computers. That has a lot to do with lower prices as well as the near-ubiquity of Google’s free software suite. Microsoft is trying to gain ground with its cheaper and more locked-down Windows S software and, announced just yesterday, new hardware subscription plans.

Ultimately, though, it’s not the device that matters. Amid too much research that technology in schools has not improved educational outcomes, the focus has to be on developing curriculum and training teachers to take advantage of the new capabilities afforded by the devices. Here’s hoping some of the money saved on iPad purchases get used for those worthy efforts.

NEWSWORTHY

Heading for $1 trillion. As noted, Apple reported quarterly earnings last night with most attention focused on the iPhone maker's forecast for the next quarter. Amid a Wall Street debate raging about the timing and desirability of the next iPhone lineup, Apple said it might pull in as much as $52 billion in the September quarter, or an 11% gain from last year and about $3 billion more than analysts expected. That's sent Apple shares up 6% to an all-time high above $159 in premarket trading on Wednesday. CEO Tim Cook also defended Apple's decision to pull VPN apps from its Chinese app store at the behest of the Chinese government. "We follow the law wherever we do business," he said.

Heading for $1 billion. The world's top digital currency, Bitcoin, split off a new version dubbed Bitcoin Cash that could make transactions cheaper. A group of bitcoin miners who wanted to lower transaction costs started running the incompatible Bitcoin Cash software on Tuesday.

Also going up. Elsewhere on Wall Street, cybersecurity company FireEye showed stronger-than-expected growth in its subscription and online service sales, sending total revenue up 6% to $186 million. FireEye shares jumped 7% in premarket trading. And #4 wireless carrier Sprint impressed with its first quarterly profit in more than three years, pushing its shares up 11% on Tuesday. CEO Marcelo Claure says a merger is likely soon, too, though he wasn't specific.

Rising from a small base. In the gig economy, demand is growing fastest for online freelancers with virtual reality expertise. Billings on VR projects grew more than 30-fold from last year, according to Upwork, a website that connects freelancers with employers. Skills in artificial intelligence areas, such as natural language processing, neural networks and image processing, were also in high demand.

Can you see me now? Facebook is working on a video chat device for the home that would have a large touch screen, as well as a camera. Sounds an awful lot like Amazon's recently-announced Echo Show device. But you might want to pause before buying one. British security researcher Mark Barnes showed how installing malware onto an Echo could turn the device into a secret surveillance tool.

FOOD FOR THOUGHT

Etsy went public in 2015 with the promise of being a sort-of mini-Amazon.com for handcrafted wares. But with its stock price still stuck a few dollars below its IPO price, the company is rethinking how much it is a technology-driven startup versus just a classic retailer needing to focus on the basics of selling stuff, Khadeeja Safdar reports for the Wall Street Journal. That initial framing may have been too audacious, Cooper Smith, research director at brand consulting firm L2, tells the paper:

Artisanal goods is a relatively small addressable retail market. Etsy is never going to scale to what Amazon can because its merchants are not major brands and they don’t have a lot of merchandise.

IN CASE YOU MISSED IT

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Exclusive: This Startup Wants to Be the Salesforce for Legal Departments by Barb Darrow

Snap Is Reportedly Continuing Its Hardware Expansion With a Selfie Drone by Natasha Bach

This Smartphone Maker Is Catching Up With Apple by David Meyer

YouTube Is Using Machine Learning to Combat Terror Content by Tom Huddleston, Jr.

Tesla Loses Key Executive in Charge of Battery Technology by Kirsten Korosec

Amazon Alexa Can Now Control Your Fire TV by Barb Darrow

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