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Musk’s Team Gains Access To Sensitive Federal Payment Systems, Sparking Controversy

In a move raising eyebrows across Washington, Elon Musk’s Department of Government Efficiency (DOGE) has been granted access to the federal payment system, which handles trillions of dollars in government funds annually, according to US media reports.

While DOGE is not an official agency but a team within the administration, sources suggest the group now has access to sensitive personal data of millions of Americans, raising concerns about privacy and oversight.

The situation reportedly led to a standoff at the United States Agency for International Development (USAID), where two officials were placed on leave after resisting DOGE’s efforts to access critical government systems.

The White House and Treasury Department have yet to comment. Just days after President Donald Trump announced the formation of DOGE, the team has spread across federal agencies with the goal of slashing government spending.

Musk, who helped establish the team, has enlisted support from allies in Silicon Valley and his private companies. This has created turbulence at agencies like the Treasury Department and USAID—two entities Musk has criticized on social media. On X (formerly Twitter), Musk called USAID “evil” and accused Treasury officials of “breaking the law every hour of every day,” further stoking controversy.

The Treasury division involved in these changes handles critical federal payments, including Social Security, government salaries, and money allocated by Congress—totaling nearly $6 trillion.

The controversy also extends to USAID, which distributes billions in aid. The agency’s website went offline, and its X account appears to have been deactivated. Reports claim DOGE members sought access to a classified facility, a SCIF (Sensitive Compartmented Information Facility).

Meanwhile, the broader federal workforce faces changes under Trump’s administration. Executive orders have sparked confusion, with employees receiving instructions to report colleagues allegedly disguising diversity efforts and encouraged to take paid resignations, leading to unease.

In response, many agencies, including the CDC, have removed references to diversity and inclusion and LGBTQ+ content from their websites, resulting in broken links, including those on LGBTQ+ health and mpox vaccines. While supporters argue diversity programs address historical inequalities, critics claim they can create new forms of discrimination, intensifying the debate.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.

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