Good afternoon,

Here’s the headlines for this week: 23 May 2025

ECOMMERCE

Chinese e-commerce sites offer discounts of up to $351 on Apple's latest iPhones

• Chinese platforms like JD.com and Alibaba’s Tmall are offering discounts up to 2,530 yuan (~$351) on iPhone 16 models to boost sales ahead of the "618" shopping festival.
• These discounts coincide with a decline in Apple's first-quarter shipments in China, its second-largest market.
• It's unclear if Apple is directly involved in these discounts, but the strategy aligns with previous promotional efforts during major sales events.

Temu Re-Ups Direct-from-China Shipments Amidst Tariff Pause

• Temu is increasing direct shipments from China to the U.S., leveraging a temporary pause in tariffs.
• The company aims to capitalize on the de minimis rule, allowing low-value imports without duties, to offer competitive prices.
• This strategy positions Temu to better compete with rivals like Shein in the U.S. market.

TECH

TikTok's big bet on shopping is in trouble

• TikTok Shop's U.S. sales are declining, partly due to new tariffs affecting Chinese sellers.
• Internal data shows a 20-25% drop in daily sales from foreign sellers in early May.
• The platform faces challenges in replicating its Chinese e-commerce success in the U.S. market.

OpenAI Just Released a Coding Tool to ‘Help’ Programmers (Replace Their Jobs, Probably)

• OpenAI introduced Codex, a tool within ChatGPT, capable of reading, editing and executing code based on user prompts.
• Codex operates in a sandboxed environment, providing audit trails for its actions.
• While enhancing productivity, there's concern it could reduce demand for human programmers.

Apple’s AI partnership with Alibaba raises alarms in Washington

• Apple's collaboration with Alibaba to integrate AI into iPhones in China has drawn scrutiny from U.S. officials.
• Concerns revolve around potential data sharing and strengthening China's AI capabilities.
• Lawmakers are considering restrictions on such partnerships due to national security implications.

RETAILERS

Target’s Q1 earnings disappoint amid battle with tariffs, consumer backlash

• Target reported a 3.1% drop in merchandise sales and lowered its annual outlook.
• The company faces challenges from tariffs and backlash over changes to its DEI initiatives.
• Executive departures and the creation of a new strategic office aim to address these issues.

Walmart cuts 1,500 jobs in US retail, global tech teams

• Walmart is eliminating approximately 1,500 corporate positions to streamline operations.
• The layoffs affect global technology operations and e-commerce fulfillment teams.
• Despite the cuts, Walmart plans to create new roles aligned with its growth strategy.

Walmart Is Preparing to Welcome Its Next Customer: The AI Shopping Agent

• Walmart is preparing for AI agents that shop for users, changing how products are advertised and priced.
• It’s building its own AI agents for tasks like reordering and party planning.
• Retailers must optimize for algorithms, not emotions, and may lose direct customer control to third-party bots.

Trump tells Walmart to ‘eat the tariffs’ as retailer expects prices to increase

• Trump criticized Walmart for attributing potential price hikes to his administration's tariffs, urging the retailer to "eat the tariffs" instead of passing costs to consumers.
• Walmart indicated that the magnitude of the tariff increases is more than any retailer or supplier can absorb, suggesting that consumers might start seeing higher prices. 
• The situation underscores the tension between political directives and business realities, as retailers navigate the challenges of increased import costs due to tariffs.

Amazon strikes a new partnership with FedEx after UPS pullback

• Amazon has partnered with FedEx to handle some of its package deliveries, filling gaps left by UPS's decision to reduce its services for Amazon. 
• The deal, signed in late February, provides Amazon with "cost favorability" compared to UPS, potentially leading to savings in delivery expenses. 
• This move strengthens Amazon's logistics network amid increasing e-commerce demand and highlights the company's strategy to diversify its delivery partnerships.

Google is quietly giving Amazon a leg up in digital book sales

• Amazon's Kindle Android app now supports in-app eBook purchases again, a feature that was previously removed due to Google's Play Store billing policies. 
• The restoration of in-app purchases may be attributed to recent antitrust actions against Google or regulatory changes like the European Union’s Digital Markets Act. 
• This change gives Amazon a competitive edge in digital book sales on Android devices, potentially impacting smaller digital booksellers who may still be subject to Google's standard fees.

ADVERTISING

The Onion has opened a creative agency

• Satirical news outlet The Onion has launched "America’s Finest Creative Agency," offering copywriting and creative strategy services to brands. 
• The agency aims to bring The Onion's signature humor to brand advertising campaigns, providing services ranging from stunt marketing to social-first vertical videos. 
• The agency is led by Marnie Shure, former managing editor at The Onion, and Howie Kaplan, a current marketing consultant for the publication.

See you next week,

The ChannelSight Team

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