New data from Counterpoint Research shows that demand is still weak across China. Government subsidies introduced in January have not done much to change that, making individuals hold back on spending, and phone makers are feeling it.

Apple, however, managed to push ahead, discounts on e-commerce platforms helped, and the base model of the iPhone 17 qualified for state subsidies. That combination made its devices more attractive at a time when buyers are prudent.

There is also the question of cost, with memory chip prices surging and putting pressure on manufacturers.

While others are reacting by raising prices, Apple is taking a different route. Its control over its supply chain gives it room to absorb some of the extra cost instead of passing it on to customers.

Counterpoint explained, “Apple is unlikely to follow suit, instead absorbing part of the margin pressure and using the situation to potentially expand its market share.”

Competitors are not in the same position. OPPO and vivo have already increased prices on some existing models this month. The adjustments are not just covering costs, but are also testing how much consumers are willing to pay before new devices arrive later in the year.

Meanwhile, Huawei is leaning on domestic suppliers who tend to charge less than international chipmakers, giving Huawei some breathing space.

That advantage could help it compete more aggressively, especially in the low- and mid-range segments.

The pressure is not going away soon. Memory costs are still high, and manufacturers are being forced to choose between protecting margins, keeping prices stable, or pushing shipments.

Hence, the Chinese market is expected to stay soft through March, April and May. There may be some lift in early June when the country’s “618” shopping festival begins.

That period usually brings heavy discounts and a spike in sales, although any rebound may be temporary.

As it stands, most brands are adjusting to a tougher market, while Apple is using the moment to hold its ground in the China smartphone market, and possibly take more share, while sales grow.

The post Apple’s China Sales Surge 23% Despite Smartphone Market Decline appeared first on Tech | Business | Economy.

But the thing is, capital wasn’t just flowing. There was a concentration, with large checks, especially for artificial intelligence companies. 

About 74% of January funding went to deals of $100 million or more, and 57% went to AI-related startups alone. 

However, if you stood back and looked at markets and capital flows in early 2026, you’d see something quite different, fundamental change. 

Tech isn’t responding to an upswing in funding anymore. It’s adapting to new investor priorities, and market situations that are very different from the era of easy capital that impacted the late 2010s and early 2020s.

So what changed?

For most of the past decade, cheap money allowed tech growth, interest rates in certain economies were at historical lows, investors hungry for yield and growth poured capital into startups before they had profit, let alone profits. 

Risk was quite blurry during that era, valuations were amplified and growth at all costs was made workable, if fragile, a strategy.

Today, it doesn’t work that way anymore.

Interest rates globally are higher than they’ve been for years. Monetary policy became tougher after pandemic stimulus faded, inflation returned in many regions, and central banks moved quickly to raise rates to rein in prices. 

That made capital more expensive and investors much pickier.

Funding isn’t gone, it’s just concentrated

Despite the narrative of a “funding winter,” KPMG’s latest data shows global VC investment hit more than $138 billion in the fourth quarter of 2025, ending the year with one of the strongest totals on record. 

But that masks an important trend where capital isn’t broadly distributed anymore. Investors are placing large investments on a narrow set of opportunities.

Take AI. It wasn’t just one sector among many. In 2025, AI startups drew outsized rounds, dozens of companies raised hundreds of millions, or even billion-dollar-plus investments. 

The funds aren’t trickling down to every idea with a good pitch. They’re clustering around a few big names and high-conviction focus.

That shift is unignorable. It means the cost of money isn’t just higher, the bar for attracting it is, too.

A tale of two tech markets

Investors are talking about discipline, transparency, and profitability. According to a global investor survey, 61% of investors still see technology as the top sector for capital growth over the next few years, but they want transparent disclosures about strategy and returns, especially around AI. 

In the first week of February 2026, global indexes experienced turbulence as software and tech stocks were sold off. Valuations slipped due to investor anxiety over whether heavy AI spending by big tech firms, think multibillion-dollar capex plans, will translate to profit. 

Big names like Alphabet and Microsoft have seen their stock prices fluctuate at times because markets are questioning the returns on massive AI investments outweighing near-term costs.

At the same time, alternative corners of tech are attracting fresh interest. There’s a noticeable shift toward smaller-cap and value-oriented companies as investors rotate out of speculative growth names and into sectors they deem safer or more resilient. 

Layoffs and recalibration

Again, looking at the workforce, 2025 saw a large number of layoffs in the tech industry, from startups to giants. 

Thousands of jobs were cut as companies recalibrated their cost structures and refocused priorities. Those layoffs reveal the stress on growth models that relied on scale and user acquisition over cash flow and efficiency.

For founders, this has been painful and humbling. People who raised capital on promises of growth now find investors demanding sharper unit economics and quicker paths to profit.

That’s not a backlash against innovation but a higher level of financial discipline driven by macro conditions.

Where tech still finds money

Despite all of this, there are good areas.

AI commands attention. There were more than 55 U.S. AI startups raising $100 million or more in 2025 alone, showing that deep technology with good enterprise value still attracts serious capital. 

These are not small checks but major commitments by major investors.

Even beyond AI, the VC world saw robust exit activity, mergers and acquisitions and IPOs contributed to healthy exit values as companies matured and found liquidity. 

And while data from regional ecosystems varies, many markets are resilient. In Africa, for example, funding rebounded strongly in 2025, with total capital rising and diversified instruments, including debt, playing a bigger part. 

The reality for most founders

So what does this all mean for tech founders and executives?

For one, the era of ‘raise more at any cost’ is clearly over. Investors are looking for companies that can articulate solid paths to cash flow and sustainable growth. They care about what you do with capital, not just how fast you can spend it.

Second, capital is still available, but it’s more selective. AI and related infrastructure are prime targets, but other sectors must prove strong business models to win larger commitments.

Third, the shift isn’t a simple downturn but a reset. Tech is learning to grow within macro challenges. That’s a healthier paradigm in the long term, even if it seems harsher in the short term.

Some founders feel blindsided because they raised a comfortable round only to find subsequent meetings turning into critiques of burn rates and go-to-market strategy. That is real, but it’s also a reflection of markets that now price risk differently.

Tech hasn’t lost its spark, far from it. Funding is still high, deals continue to get done, and innovation is very much alive. 

What has changed is the price of patience, clarity and discipline. Cheap money didn’t just drive ideas, it impacted expectations, which should ultimately lead to tech growth.

Now those expectations are adjusting to a world where capital is not easy money. It’s selective, expensive and demanding.

And that is important, because founders today must build fast, and build wisely.

The post When Money Stopped Being Cheap, Tech Had to Grow Up appeared first on Tech | Business | Economy.

His comments came after a decline in global software stocks following the release of an updated chatbot by Anthropic. 

Investors reacted to the release by selling shares in companies linked to data services, outsourcing and enterprise software, particularly in Asia.

Speaking at an artificial intelligence conference in San Francisco organised by Cisco, Huang said the idea that software tools are becoming less important is ‘illogical’.

“There’s this notion that the tool in the software industry is in decline, and will be replaced by AI … It is the most illogical thing in the world, and time will prove itself,” he said.

Huang said advanced systems rely on existing software rather than replacing it. He compared the process to how people and machines use tools that already exist instead of building new ones from scratch.

“If you were a human or robot, artificial, general robotics, would you use tools or reinvent tools? The answer, obviously, is to use tools … That’s why the latest breakthroughs in AI are about tool use, because the tools are designed to be explicit.”

Markets continued to fall during the week. In India, shares of IT exporters dropped sharply, with the sector index losing 6.3%. Infosys was among the worst hit, falling 7.3%.

In China, the CSI Software Services Index fell 3%. Shares of Kingdee International Software Group dropped more than 13% in Hong Kong. In Japan, Recruit Holdings fell 9%, while Nomura Research declined 8%.

Huang has made similar comments in recent months, describing intelligent systems as infrastructure rather than replacements for software. At an industry event in Houston earlier this year, he said such systems would be built into existing platforms and tools.

Nvidia is continuing to expand its investments in large-scale computing and industrial applications. The company is also in talks over a major investment in OpenAI and is increasing capacity to support growing demand for computing power.

The recent market reaction emphasises concerns about how new systems could affect data services and outsourcing. Huang said those systems still depend on software to operate, integrate and scale.

For now, the selloff has not changed Nvidia’s position. The company believes that software is indispensable to how the technology is used.

The post AI Will Not Replace Software, Says Nvidia CEO as Tech Stocks Fall appeared first on Tech | Business | Economy.

This is its second U.S. increase in less than two years as the company leans on higher fees to protect profits.

The change applies to current users, with the new price kicking in on individual billing dates next month. 

Spotify said affected subscribers will be notified by email before the adjustment takes effect. New users are already being shown the updated price on the company’s website.

Investors welcomed this development as shares of the Swedish streaming group climbed almost 3% in premarket trading on Thursday, trusting that the company can push through higher prices without losing too many users.

This latest increase follows Spotify’s decision in June 2024 to lift the U.S. Premium price from $9.99 to $11.99, its first rise in more than a decade. The jump to $12.99 means American subscribers will have seen prices climb by 30% in roughly 18 months.

In a message sent to customers, Spotify explained the decision. “Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists.”

The company also told subscribers: “Thank you for being a valued Premium subscriber. Starting on your billing date in February, your subscription price will change from $11.99/month to $12.99/month.”

Spotify stressed that premium users who are unhappy with the new price can cancel at any time or switch to other plans available through their account settings, noting that the service stays optional.

The increase is not limited to the United States. Similar increases have been rolled out across parts of Europe, South Asia and Latin America over the past two years. This shows a similar global strategy rather than a one-off response to local conditions.

After years of losses, Spotify reported its first quarterly operating profit in late 2025. That achievement eased issues about the sustainability of its business model, but it also raised expectations. To keep that momentum, the company needs more revenue per user.

Music licensing is expensive, and costs continually increase as labels renegotiate deals. At the same time, Spotify is spending heavily to expand beyond music. 

Audiobooks are being rolled out more widely, and the platform is investing in new discovery tools and recommendation features designed to keep users engaged for longer.

Subscription fees are the most direct lever Spotify can pull. Advertising helps, but Premium subscriptions still account for the bulk of revenue. From that perspective, the latest increase looks less like a gamble and more like a necessity.

Spotify is not acting alone as Apple Music, YouTube Music and Amazon Music have all increased prices in recent years, softening the risk that users will defect purely on cost. 

For many listeners, the difference between services now comes down to habit, playlists and perceived value rather than price alone.

Still, there is little room for complacency. Consumers are facing higher prices across many digital services, and tolerance for repeated increases is not unlimited. We have seen subscription fatigue set in elsewhere, and music streaming may not be immune.

The post Spotify to Increase Premium Subscription Price to $12.99 Starting February appeared first on Tech | Business | Economy.

The monthly fee will move from €10.99 to €11.99 ($14.05), covering South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific.

The change comes less than two years after the company’s last increase. For Spotify, this is part of its goal to expand profitability and drive its initiative towards one billion global users. 

The Swedish streaming giant currently counts 696 million monthly active users and 276 million paying subscribers.

Alex Norström, co-president and chief business officer, told the Financial Times: “Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense.”

Over the past year, Spotify has tightened operations, cutting costs through layoffs and scaling back on expensive podcast deals. Those decisions, alongside subscription growth, helped the company deliver its first annual profit in 2024 and record a 31.5% gross margin in the second quarter of 2025. Free cash flow now stands at €700 million, a turnaround after years of losses.

Alongside the price rise, Spotify is betting heavily on product innovation. Recent features include AI-powered playlist customisation, a virtual DJ tool, and audiobook integration. These are designed not just to improve listening but also to make users less likely to cancel, even when prices climb.

In Africa, Premium subscriptions will now cost R69.99 per month in South Africa, roughly on par with rivals Apple Music and YouTube Music. Analysts say this alignment in pricing shows Spotify’s intent to defend its market share, especially in mobile-first regions where streaming adoption is still rising quickly.

Spotify already controls about 65% of the global music streaming market and 45% of paid subscriptions outside China and Russia, according to Luminate. Analysts believe the new features and improved personalisation will help absorb the impact of higher costs for subscribers, ensuring Spotify maintains its lead as the dominant global music platform.

The post Spotify to Raise Premium Prices in September as It Targets 1 Billion Users appeared first on Tech | Business | Economy.