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  • Google unveils new Pixel 7 smartphones and first-ever Pixel smartwatch | CNN Business

    Google unveils new Pixel 7 smartphones and first-ever Pixel smartwatch | CNN Business



    CNN
     — 

    Google on Thursday unveiled its new Pixel 7 smartphone lineup and its first-ever Pixel smartwatch, packed with tracking and health features from its subsidiary Fitbit.

    At a press event in New York City, Google showed off the new Pixel 7 and Pixel 7 Pro devices, which largely look the same as the year prior but with new camera features, an improved screen and battery, and an updated Google Tensor processor.

    While many of the updates are iterative, the lineup will likely appeal to tech enthusiasts who want the latest version of Android and an alternative to Apple or Samsung smartphones, as well as those who haven’t upgraded their Pixel device in a few years.

    The 6.3-inch Pixel 7 features a glass back, aluminum frame and a sleek band on the back with black cutouts for the camera system. Its always-on OLED display allows for quick checking of widgets that highlight useful information, such as baggage claim details at the airport or when packages are arriving (not unlike what’s been recently made available on the new iPhone 14 line with the lockscreen).

    Google

    (GOOG)
    said the Pixel 7’s screen is now 25% brighter for visibility indoors, and the device can go a full day on a single charge (or 72 hours when on extreme battery saver mode). It comes in three colors – obsidian, snow and lemongrass – and starts at $599, or $200 less than a baseline iPhone 14 with the same amount of storage.

    “We want people to give Pixel a try, so while phones in this tier typically start at $799, we’re starting the price at $599,” Brian Rakowski, Google vice president of product management, said on stage during the event.

    The larger 6.7-inch Pixel Pro – which comes in a matte aluminum finish – features an always-on display, the same long-lasting battery as the Pixel 7 and a new triple rear camera system, which includes a 5x telephoto lens, 30x super resolution zoom and an upgraded ultrawide lens. The ultrawide lens comes with autofocus capabilities to support new features including Macro Focus that picks up on fine details.

    Both models run on Google’s new Tensor G2 processor, which powers the device’s machine learning and speech recognition capabilities, and several camera features. With Night Sight, for example, the camera now processes photos twice as fast. The tech also drives Cinematic Blur, a new dramatic blurring effect for videos.

    A new accessibility feature called Guided Frame helps visually impaired users take better selfies by vocally instructing them to move the device in specific directions. Google also announced updates to making calls, including cutting down on background noise and the ability to transcribe audio messages into text messages.

    The Pro model, which comes in obsidian, snow and hazel, starts at $899. Pre-orders start on Thursday for both models and the devices hit shelves on Thursday, October 13.

    Google’s Pixel line remains a niche product. Its global market share for smartphones has never surpassed 1% on an annual basis, according to data from IDC Research. Google also limits sales to only a handful of countries, so keeping the volume low has been strategic as Google remains predominantly a software company with many partners running Android. (Google said the Pixel 7 line, however, will launch in sevral new countries, including India, Denmark, Sweden and the Netherlands.)

    Google won’t likely take much market share away from Apple with these Pixel updates, as iPhone owners are known to be brand-loyal. Other Android smartphone makers, however, such as Samsung or smaller Chinese manufacturers may feel the pressure from consumer interest in Google hardware, according to Ben Wood, an analyst with CC Insight. “But given the incremental updates, it’s possible there will be less excitement than there has been in the past,” he said.

    At the event, Google also teased another early look at its upcoming Pixel tablet, which will feature the Tensor G2 processor, and is expected to launch in 2023.

    But one area where Google could make a greater impact this year is with the introduction of the Pixel watch. It is Google’s first wearable that plays up Fitbit’s strengths in health, fitness and wellness since closing its $2.1 billion acquisition of the smartwatch company early last year. Until now, Google had been quiet about how the Fitbit brand would integrate with its Wear OS software.

    The Google Pixel Watch

    The new 41 mm Google Pixel Watch features a circular, domed-shaped Gorilla Glass display that’s scratch- and water-resistant. It promises up to 24 hours of battery life and is compatible with Android 8 and newer devices. Built with Fitbit’s tracking capabilities, the Pixel Watch can monitor a user’s heart rate and sleep quality, offers 40 workout modes, and learns user behavior over time.

    The device also assists with emergency SOS and supports a handful of Google services, including Google Wallet, Gmail and calendar updates, as well as sending messages and talking over 4G. The Pixel Watch comes in black, gold and silver finishes. It will cost $349 for Bluetooth and $399 for 4G LTE.

    “Pixel Watch poses zero threat to the Apple Watch, but it has an important role to play in raising the awareness of smartwatches for Android smartphone owners,” Wood said. “Given the success of the Apple Watch, there has to be a bigger market for smartwatches in the Android segment and together with Samsung’s Galaxy Watch, the new Pixel Watch should be a key driver for growth.”

    It may take the Pixel Watch a few generations to catch up to the Apple Watch in terms of usability, however, as Apple’s smartwatch is now in its ninth iteration. But coupled with the Fitbit acquisition and the formation of Wear OS in collaboration with Samsung, Google is showing its greater commitment to the smartwatch market and perhaps hoping the time may finally be right for it.

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  • Amazon freezes corporate hiring in its retail business

    Amazon freezes corporate hiring in its retail business

    Amazon is pausing hiring for corporate roles in its retail business, according to a report published Tuesday by The New York Times.

    The company confirmed the accuracy of the report to CNBC.

    Amazon instructed recruiters to close all open job postings for those roles in the coming days, and recommended they cancel some recruiting activities, such as phone calls to screen new candidates, the Times reported, citing internal communications.

    Amazon spokesperson Brad Glasser said the retail giant continues to have a significant number of open roles across the company.

    “We have many different businesses at various stages of evolution, and we expect to keep adjusting our hiring strategies in each of these businesses at various junctures,” Glasser said in a statement.

    The Amazon headquarters sits virtually empty on March 10, 2020 in downtown Seattle, Washington. In response to the coronavirus outbreak, Amazon recommended all employees in its Seattle office to work from home, leaving much of downtown nearly void of people.

    John Moore | Getty Images

    Amazon is the latest company to reevaluate its hiring plans amid concerns of an economic downturn. Several companies including Google, Apple and Meta have announced they will slow or temporarily pause hiring altogether. Companies are also looking for ways to cut costs to gird for potential headwinds.

    Amazon CEO Andy Jassy has worked swiftly to rein in costs as the company grapples with slowing growth in its core retail business, which still accounts for the lion’s share of Amazon’s revenue.

    The retail business enjoyed breakneck growth during the Covid-19 pandemic as consumers avoided trips to physical stores and flocked to online retailers. By early 2022, e-commerce spending began to decelerate, and Amazon in the first quarter reported its slowest rate of revenue growth since the dot-com bust in 2001.

    Jassy has assured investors he’s focused on returning to a “healthy level of profitability” after slowing retail sales and rising costs ate into Amazon’s earnings. In recent months, Amazon has closed or cancelled the launch of new facilities, and it’s delaying the opening of some new buildings after its pandemic-driven expansion left it with too much warehouse space.

    It has also closed nearly all of its U.S. call centers in a bid to save on real estate, Bloomberg reported.

    The company is also contending with too many workers after it went on a pandemic hiring spree. In the second quarter, Amazon shaved its headcount by 99,000 people to 1.52 million employees.

    WATCH: Watch CNBC’s full interview with Amazon CEO Andy Jassy on first annual letter to shareholders

    Watch CNBC's full interview with Amazon CEO Andy Jassy on first annual letter to shareholders

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  • Samsung aims to make the world’s most advanced chips in 5 years, as it plays catch up with TSMC

    Samsung aims to make the world’s most advanced chips in 5 years, as it plays catch up with TSMC

    Samsung said it will begin making chips with a 2 nanometer process in 2025 and 1.4 nanometer process in 2027. These would be some of the most advanced semiconductors in the world. Samsung is in a race to catch up with market leader TSMC.

    SeongJoon Cho | Bloomberg | Getty Images

    Samsung said Tuesday it aims to make some of the most advanced semiconductors in the world in five years’ time, as the race between the South Korean electronics giant and the world’s largest chip maker TSMC heats up.

    The company laid out a roadmap for its chip production plans, and said it will begin making chips with a 2 nanometer process in 2025 and 1.4 nanometer process in 2027.

    The nanometer figure refers to the size of each individual transistor on a chip. The smaller the transistor, the more of them can be packed onto a single semiconductor. Typically, a reduction in nanometer size can yield more powerful and efficient chips.

    For comparison, the processor in Apple‘s latest iPhone 14 Pro and Pro Max models is a 4 nanometer chip.

    Samsung began producing 3 nanometer chips earlier this year.

    Shares of Samsung in South Korea closed nearly 4% higher on Tuesday.

    The South Korean firm, known for consumer electronics and memory chips, is looking to ramp up its contract chipmaking, or foundry business, in a bid to catch up with Taiwan’s TSMC.

    Samsung is the second-biggest foundry globally by revenue, with a 17.3% market share compared to 52.9% for TSMC, according to TrendForce.

    For its part, TSMC expects to begin 3nm chip production this year with production of 2nm set to begin in 2025. However, the company has not officially announced plans to mass produce 1.4nm chips.

    Samsung’s ambitious plans come amid global economic headwinds and signs of a slowdown in semiconductor demand. Global chip industry sales fell 3.4% in August compared to July, according to the U.S.-based Semiconductor Industry Association.

    Read more about tech and crypto from CNBC Pro

    Despite this, Samsung said it plans to expand its production capacity for the most advanced chips by more than three times by 2027 compared to this year, highlighting its bullishness on future demand.

    These include its factories in the U.S. Samsung has a plant in Austin, Texas, and is currently building a $17 billion facility in Taylor in the same state.

    Washington has been looking to attract chipmakers like Samsung and TSMC to set up factories in the U.S. so that it can reduce reliance on the manufacturing hubs of Taiwan and South Korea.

    While Samsung has put a big focus on cutting edge chips, the company also said semiconductors for high-performance computing, automotive and 5G uses will make up more than 50% of its foundry business by 2027. These are usually less advanced chips.

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  • Apple CEO Tim Cook doesn’t like the metaverse—he predicts a different technology will shape the future

    Apple CEO Tim Cook doesn’t like the metaverse—he predicts a different technology will shape the future

    Tim Cook is the latest big name in tech to pour some cold water on the industry’s excitement over the concept of a metaverse.

    “I always think it’s important that people understand what something is,” the Apple CEO told Dutch publication Bright on Friday. “And I’m really not sure the average person can tell you what the metaverse is.”

    Unsurprisingly, Apple hasn’t yet publicly touted any plans for the metaverse, a term typically used to describe virtual reality (VR) platforms where people can interact, work, shop and play games using immersive technology like a virtual reality headset. These virtual worlds already exist, in some form, but many of the biggest names in tech are working to develop the hardware and software necessary for people to spend significant time — and money — in the metaverse.

    Mark Zuckerberg and Meta are heavily invested in the concept of the metaverse. Companies from Microsoft to Disney have laid out metaverse plans.

    But some experts suggest that any metaverse hype partially exists specifically because people don’t understand what it’s going to be. In June, former Google CEO Eric Schmidt summed up the general confusion over the concept, noting that “there’s not an agreement on what the metaverse is.”

    Similarly, Snap CEO Evan Spiegel has called the idea of the metaverse “ambiguous and hypothetical.” Instead, he’s pushed his company’s plans around augmented reality (AR), where virtual elements and images are superimposed onto the real world.

    Cook is also a big proponent of AR, and Apple is reportedly developing an AR/VR headset that could hit the market in 2023, according to Bloomberg. The future of AR “will go much, much further” than today’s applications, Cook told Bright on Friday.

    “I think AR is a profound technology that will affect everything,” Cook said. “Imagine suddenly being able to teach with AR and demonstrate things that way. Or medically, and so on. Like I said, we are really going to look back and think about how we once lived without AR.”

    Cook’s comments on the metaverse came amid a European tour that saw the Apple CEO visit the U.K. and Germany before speaking at the University of Naples Federico II’s commencement ceremony last week. In a Q&A session at that ceremony, Cook suggested people might eventually think of AR as they do the internet: ubiquitous and difficult to live without.

    “Zoom out to the future and look back, you’ll wonder how you led your life without augmented reality,” Cook said. “Just like, today, we wonder: ‘How did people like me grow up without the internet?’”

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  • Apple downgrade sparks tech sell-off, sending Alphabet and Microsoft to one-year lows

    Apple downgrade sparks tech sell-off, sending Alphabet and Microsoft to one-year lows

    Shares of large technology companies suffered heavy losses on Thursday, dragging down many other U.S. stocks along with them, after analysts at Bank of America lowered Apple’s stock rating.

    Tech stocks have been pushed down all year as investors have rotated out of growth and flocked to more defensive assets to deal with higher interest rates and to get ahead of a possible recession.

    The tech-heavy Nasdaq Composite rose on Tuesday and Wednesday, but the buying came after the worst two weeks since the onset of the Covid pandemic. Now the downward trend is back, with the Nasdaq off 2.8% on Thursday — it’s steepest one-day setback since Sept. 13. The broader S&P 500 fell 2.1%.

    Apple CEO Tim Cook speaks at an Apple special event at Apple Park in Cupertino, California on September 7, 2022. – Apple is expected to unveil the new iPhone 14. (Photo by Brittany Hosea-Small / AFP) (Photo by BRITTANY HOSEA-SMALL/AFP via Getty Images)

    Brittany Hosea-small | Afp | Getty Images

    Apple shares declined nearly 5% as Bank of America analysts led by Wamsi Mohan changed their rating to neutral from buy, straying from the buy position held by a majority of analysts polled by FactSet.

    The analysts pointed to several risks, including a weaker buying cycle associated with the iPhone 14 that Apple released this month. One day earlier, a report said Apple had scrapped its plan to boost iPhone production by 6 million units in the second half of the year.

    Apple stock is now worth 20% less than it was at the end of 2021, while the Nasdaq is down 31% over the same period.

    Of the technology companies with the largest market valuations, Microsoft took the lightest blow. It ended Thursday’s trading session down about 1.5%, which was still a 52-week low. Google parent Alphabet also reached a 52-week low, dropping 2.6%. Shares of Facebook parent Meta Platforms slid 3.7%, Amazon declined 2.7% and Tesla was off 6.8%.

    Smaller growth-oriented tech companies also suffered, with Coinbase down nearly 8% after Wells Fargo initiated coverage with an underweight rating. Elsewhere, Shopify fell 8.45%, Rivian declined 7.9% and Roblox was off 7%.

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  • Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

    Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

    Nintendo carried out a 10-for-1 stock split which reduces the price of an individual share. The 133 year old Japanese gaming giant hopes the move will make it more affordable for a wider pool of investors to buy the company’s shares.

    Zhang Peng | LightRocket | Getty Images

    Nintendo carried out its previously announced 10-for-1 stock split on Thursday aimed at reducing the price of one individual share to attract new investors to the more than century old Japanese gaming giant.

    Prices for Nintendo’s stock reflected the split on the Japanese Stock Exchange website. Nintendo shares closed at 6,043 Japanese yen ($41.76) on Thursday, after closing at 59,700 on Wednesday.

    Each share of common Nintendo stock has been split into 10 shares, hence the reduction in price per share.

    The move is designed to appeal to a wider pool of investors. In Japan, typically investors must buy a block of 100 shares in one company. At Nintendo’s old share price, that would cost a minimum of 5.97 million Japanese yen, or just over $41,200. With the split, 100 shares would cost 604,300 Japanese yen or just over $4,170 at Thursday’s closing price, potentially making it more affordable for individuals to invest in Nintendo.

    “That minimum investment of around 6 million yen is enough to put a student through an entire four-year study program at a Japanese university,” Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC.

    “It was really about time for Nintendo as a consumer-facing company with such a strong brand recognition to reduce the share price.”

    “Now, Nintendo is more affordable especially for younger people, a type of investor that has been growing in Japan in recent years,” he added.

    A number of major tech firms, including Apple and Amazon, have announced stock splits over the past few years. While stock splits don’t fundamentally change the company in any way, they do make buying shares in the firm cheaper.

    The split comes at a testing time for Nintendo, a 133-year-old company, amid broader challenges in the video game industry. In the second quarter of the year, Nintendo’s operating profit fell 15% while sales of its flagship Switch games console also declined. The Japanese gaming giant is facing supply chain challenges which is hampering its ability to meet demand for the Switch.

    However, Nintendo games are still appealing to a wide range of consumers. The company said this month that sales of Splatoon 3 in Japan surpassed 3.45 million units — a domestic record for any Nintendo Switch software within the first three days of sales. Splatoon 3 was launched on Sept. 9.

    Nintendo is also gearing up to release popular titles in the coming months including a new game in the Pokemon franchise.

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  • Apple Inc will manufacture iPhone 14 in India

    Apple Inc will manufacture iPhone 14 in India

    NEW DELHI (AP) — Apple Inc. will make its iPhone 14 in India, the company said on Monday, as manufacturers shift production from China amid geopolitical tensions and pandemic restrictions that have disrupted supply chains for many industries.

    “The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement.

    Apple unveiled its latest line-up of iPhones earlier this month. They will have improved cameras, faster processors and longer lasting batteries at the same prices as last year’s models.

    India is the world’s second-largest smartphone market after China but Apple iPhone sales have struggled to capture a large share of the market against cheaper smartphones from competitors.

    The announcement from the Cupertino, California-based company dovetails with Prime Minister Narendra Modi’s push for local manufacturing, which has been a key goal for his government ever since he took office in 2014.

    The tech company has bet big on India, where it first began manufacturing its iPhone SE in 2017 and has since continued to assemble a number of iPhone models there. Apple opened its online store for India two years ago, but the pandemic has delayed plans for a flagship store in India, according to local media reports.

    The latest model will be shipped out by Foxconn, a major iPhone assembler, whose facilities are on the outskirts of Chennai, a city in southern India.

    Apple is likely to shift about 5% of its iPhone 14 production to India from later this year, raising it to 25% by 2025, according to a JP Morgan report quoted by the Press Trust of India news agency.

    The analysts expect that nearly a quarter of all Apple products to be manufactured outside China by 2025, compared to about 5% now. Supply chain risks like the stringent COVID-19 lockdowns seen in China are likely the trigger for such relocation efforts that will continue over the next two or three years, the report said.

    “Apple has been trying to diversify its supply chain for a while, but these efforts have grown in the last two years over trade sanctions between the U.S. and China,” said Sanyam Chaurasia, an analyst at Canalys.

    Last year, the tech giant manufactured around 7 million iPhones in India. This news is likely to significantly increase India-made Apple smartphones, he added.

    He said the plan to make more iPhones in India may also lead Apple to drop its prices for the Indian market, making it more competitive. “You can adopt a more aggressive pricing strategy if you manufacture locally,” Chaurasia said.

    Most of Apple Inc.’s smartphones and tablets are assembled by contractors with factories in China, but the company started asking them in 2020 to look at the possibility of moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.

    Apple hasn’t released details, but news reports say the company planned to set up assembly of tablet computers and wireless earphones in Vietnam.

    Other companies are keeping or expanding manufacturing in China to serve the domestic market while shifting export-oriented work to other countries due to rising wages and other costs, as well as the difficulty for foreign executives to visit China due to anti-COVID-19 travel restrictions.

    ___

    AP Business Writer Joe McDonald in Beijing contributed.

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  • What is Threads? Here’s what you need to know about the potential ‘Twitter Killer’ | CNN Business

    What is Threads? Here’s what you need to know about the potential ‘Twitter Killer’ | CNN Business


    New York
    CNN
     — 

    Facebook-parent Meta on Wednesday officially launched its Twitter competitor, Threads, after first confirming its plans for the app just three months ago.

    Threads is already off to a strong start: the app received 30 million sign-ups as of Thursday morning, according to the company, including a large number of brands, celebrities, journalists and many other prominent accounts.

    The mood on Threads Wednesday night felt a bit like the first day of school, with early adopters rushing to try out the app and write their first posts — and some questioning whether the app could end up being the “Twitter killer.” As of Thursday morning, Threads was the top free app on Apple’s App Store and a top trending topic on Twitter.

    Threads could pose a serious threat to Twitter, which has faced backlash since Elon Musk took over the platform in October 2022 and has run it with a fly-by-the-seat-of-your-pants approach. But Twitter has become particularly vulnerable in recent days, angering users over a temporary limit on how much content users can view each day. And for Meta, Threads could further expand its empire of popular apps and provide a new platform on which to sell ads.

    Here is everything we know so far about Meta’s Threads:

    Threads is a new app from the parent company of Facebook, Instagram and WhatsApp. The platform looks a lot like Twitter, with a feed of largely text-based posts — although users can also post photos and videos — where people can have real-time conversations.

    Meta said messages posted to Threads will have a 500-character limit. Similar to Twitter, users can reply to, repost and quote others’ Threads posts. But the app also blends Instagram’s existing aesthetic and navigation system, and offers the ability to share posts from Threads directly to Instagram Stories.

    Thread accounts can also be listed as public or private. Verified Instagram accounts are automatically verified on Threads.

    “The vision for Threads is to create an option and friendly public space for conversation,” Meta CEO Mark Zuckerberg said in a Threads post following the launch. “We hope to take what Instagram does best and create a new experience around text, ideas, and discussing what’s on your mind.”

    Some users did experience occasional glitches and issues getting content to load in the early hours after Threads launched, but that is to be expected when millions of users are joining and using an app at once.

    Users sign up through their Instagram accounts and keep the same username, password and account name, although they can edit their bio to be unique to Threads. Users can also import the list of accounts they follow directly from Instagram, making it super easy to get up and running on the app.

    But it’s not quite so easy to leave Threads. While users can temporarily deactivate their profiles via the settings section on the app, the company says in its privacy policy that “your Threads profile can only be deleted by deleting your Instagram account.” Some users have also raised concerns about the amount of data that the Threads, like Instagram, can collect about users, including location, contacts, search history, browsing history, contact info and more, according to the Apple App Store.

    Threads is available in 100 countries and more than 30 languages via Apple’s iOS and Android, according to the company.

    Threads is just the latest platform launched in recent months in hopes of unseating Twitter as the go-to app for real-time, public conversations. But it may have the greatest chance at success.

    Many Twitter users have expressed desire for an alternative since Musk took over the platform late last year. Frequent technical issues and policy changes have sent some noteworthy Twitter users heading for the exits.

    Meta has at least one significant leg up on Twitter: the size of its existing user base. Meta is hoping to capture at least some of its more than 2 billion global active Instagram users with the new app. That’s compared to Twitter’s active user base, which is somewhere around 250 million.

    “It’ll take some time, but I think there should be a public conversations app with 1 billion+ people on it,” Zuckerberg said in a Threads post. “Twitter has had the opportunity do this but hasn’t nailed it. Hopefully we will.”

    In a tweet on Thursday, Twitter’s new CEO Linda Yaccarino appeared to acknowledge the rival app’s launch, calling Twitter “irreplaceable.”

    “We’re often imitated – but the Twitter community can never be duplicated,” she said.

    Meta’s existing scale and infrastructure could play to its advantage. Whereas many of the other Twitter competitors rolled out in recent months have required users to join waitlists or receive invitations to sign up, only to have to work to recreate their network on the new site, Threads makes it remarkably easy for users to get started.

    But Instagram CEO Adam Mosseri noted in a video posted to the platform that the challenge for new social media platforms often is not getting users to sign up, but rather keeping them engaged long-term.

    In particular, Meta will have to work to prevent spam, harassment, conspiracy theories and false claims on Threads, issues that have caused many users to sour on Twitter. The new platform’s launch comes after Meta laid off more than 20,000 workers starting last November, including user experience, well-being, policy and risk analytics employees. It also comes as campaign season for the 2024 US Presidential election ramps up, with some experts warning of an incoming wave of misinformation. Meta says its Community Guidelines will apply to Threads, just like its other apps.

    For Meta, Threads could be a way of eking additional engagement time out of its massive existing user base.

    Although there are no ads on the platform just yet, Threads could also ultimately supplement Meta’s core advertising business. Meta’s ad business could use a boost after facing challenges from a broad decline in the online ad market and changes to Apple’s app privacy practices, although, if Twitter’s history is any guide, the format is unlikely to attract as many ad dollars as Meta’s other platforms.

    For Zuckerberg, though, the real draw may be in attempting to best his rival, Musk, with whom he has in recent weeks been making plans to engage in a cage fight. Perhaps winning in the battle of social networks is even better.

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  • Apple faces $1 billion UK lawsuit by app developers over App Store fees | CNN Business

    Apple faces $1 billion UK lawsuit by app developers over App Store fees | CNN Business

    More than 1,500 app developers in the United Kingdom brought a £785 million ($1 billion) class action lawsuit against Apple Tuesday over its App Store fees.

    Revenues at Apple

    (AAPL)
    ’s services business, which includes the App Store, have grown rapidly in the last few years and now hover around $20 billion per quarter.

    However, the commissions of 15% to 30% that the company charges some app makers for using an in-app payment system have been criticized by app developers and targeted by antitrust regulators in several countries.

    Apple has previously said that 85% of developers on the App Store do not pay any commission and that it helps European developers access markets and customers in 175 countries around the world through the App Store.

    The UK lawsuit at the Competition Appeal Tribunal is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the Organisation for Economic Co-operation and Development, on behalf of 1,566 app developers.

    He is being advised by law firm Geradin Partners.

    “Apple’s charges to app developers are excessive and only possible due to its monopoly on the distribution of apps onto iPhones and iPads,” Ennis said in a statement.

    “The charges are unfair in their own right and constitute abusive pricing. They harm app developers and also app buyers.”

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  • Apple launches buy now, pay later service | CNN Business

    Apple launches buy now, pay later service | CNN Business


    New York
    CNN
     — 

    Apple on Tuesday launched an option in its digital wallet allowing customers to pay for online purchases in installments, making it the latest company to embrace the buy now, pay later trend.

    The new feature, called Apple Pay Later, lets customers split payments for purchases into four installments over six weeks, with the first installment due at the time of purchase. Apple users can also apply for a loan within the Wallet app, ranging from $50 to $1000, with no interest or fees, to make online or in-app purchases.

    The payment option is rolling out to select users in the United States now, with plans to offer it to all eligible customers over the next several months, according to a company release. Apple first teased the feature last year.

    Apple’s move comes as a growing number of consumers have turned to buy now, pay later services to stretch their budgets at a time of high inflation and broader economic uncertainty. Other popular services that offer the same payment option include Affirm, Klarna and Afterpay.

    But some economists and consumer advocates have raised concerns that these services could cause shoppers to take on more debt.

    The installment process makes it seem like someone is paying practically nothing for the goods or service they’re acquiring, Terri R. Bradford, a research specialist in payment systems for the Kansas City Federal Reserve, previously told CNN. “So the possibility is that you could, in your mind, think of everything that you’re buying in those four installments and, as a result, take on more debt than you would if you had to pay for them in full each and every time.”

    But Apple says the new feature is “designed with users’ financial health in mind.”

    “There’s no one-size-fits-all approach when it comes to how people manage their finances,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, in Tuesday’s release. “Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later.”

    Apple users will be able to track and manage upcoming loan payments in the Wallet app. Any loan application can also be done in the app with no impact on credit, according to the company.

    Apple’s Pay Later option is enabled through the Mastercard Installments program.

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  • Apple and Google are teaming up on a plan to make Bluetooth trackers like AirTags safer | CNN Business

    Apple and Google are teaming up on a plan to make Bluetooth trackers like AirTags safer | CNN Business



    CNN
     — 

    Apple and Google are working together on a new industry-wide effort to help limit the risk of Bluetooth devices like AirTags being used for unwanted tracking after a number of reports about these products enabling stalking.

    The companies announced a joint proposal on Tuesday for a new technical specification for manufacturers to build into future products. It would allow location-tracking devices to implement “unauthorized tracking detection and alerts” and work on both iOS and Android platforms.

    The goal, according to the proposal, is to enable “unwanted tracking detection” on these devices that “can both detect and alert individuals that a location tracker separated from the owner’s device is traveling with them.” It would also “provide means to find and disable the tracker.”

    In a press release, Google and Apple said manufacturers including Samsung, Tile, Chipolo, eufy Security, and Pebblebee have expressed support for the draft specification.

    “This new industry specification builds upon the AirTag protections, and through collaboration with Google results in a critical step forward to help combat unwanted tracking across iOS and Android,” said Ron Huang, Apple’s vice president of sensing and connectivity.

    The companies added that they have incorporated feedback and insight from device manufacturers, as well as safety and advocacy groups, into the development of the specification. The proposal has been submitted for review to the Internet Engineering Task Force (IETF), a standards development organization, the companies said.

    In 2021, Apple launched the AirTag, a $29 Tile-like Bluetooth locator that attaches to and helps users find items such as keys, wallets, laptops or even a car by giving nearly anything a digital footprint, enabling it to be found on a map. But soon after its launch, some experts warned that the devices could be used to track individuals without their consent.

    Late last year, Apple was sued by two women who allege their previous romantic partners used the company’s AirTag devices to track their whereabouts, potentially putting their safety at risk. Separately, in June 2022, a woman from Indiana allegedly used one to track and ultimately murder her boyfriend over an alleged affair, according to reports. AirTags have also allegedly been used to steal cars.

    Over time, Apple has worked with safety groups and law enforcement agencies to identify more ways to update its AirTag safety warnings, including alerting people sooner if the small Bluetooth tracker is suspected to be tracking someone.

    Location trackers aren’t new. The issue of unwanted tracking also “existed long before AirTags came on the market,” Erica Olsen, director of the Safety Net Project at the National Network to End Domestic Violence, told CNN last year.

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  • Apple is now worth $3 trillion, boosted by the Nasdaq’s best start in 40 years | CNN Business

    Apple is now worth $3 trillion, boosted by the Nasdaq’s best start in 40 years | CNN Business


    New York
    CNN
     — 

    Apple’s stock ended trading Friday valued at $3 trillion, the only company ever to reach that milestone. It has been riding a Big Tech stock wave that has given the Nasdaq its best first half gain in 40 years.

    Shares of Apple rose more than 2% Friday at a record $193.97. With 15.7 billion shares outstanding, that stock price pushed Apple to its historic market value.

    Apple has been here once before: On January 3, 2022, Apple hit the $3 trillion mark during intraday trading, but it failed to close there.

    The company’s stock closed Thursday at a record high share price for the third-straight day, but it merely budged 0.2% higher. Apple easily surpassed the $190.73 level it needed to break $3 trillion at Friday’s market open.

    The sky-high valuation for the tech giant comes on the heels of its risky launch of the Apple Vision Pro earlier this month and a stronger-than-expected quarterly earnings report in May – even though sales and profit slumped.

    The Vision Pro, which will go on sale next year, impressed tech journalists who got an early preview of the augmented reality device. But it is entering a nascent market with little mainstream consumer adoption. Apple plans to charge a hefty $3,499 for its headset, which currently has limited apps and experiences, and requires users to stay tethered to a battery pack the size of an iPhone.

    Apple’s

    (AAPL)
    stock has skyrocketed 49% this year, boosted by a broader surge in Big Tech stocks as investors have jumped onto the AI bandwagon. Nvidia

    (NVDA)
    leads the S&P 500 with a 190% jump this year, followed by Meta

    (META)
    at 138%.

    The Nasdaq grew by 31.7% in the first half of the year, notching its largest first half percentage gain since 1983.

    This year’s stock market success for Apple comes in sharp contrast to 2022. At the start of 2023, Apple’s market cap fell below $2 trillion in trading for the first time since early 2021.

    Wall Street ended the first half of 2023 on a positive note as the tech rally led markets to close higher for both the month and second quarter of the year.

    The S&P 500 gained 6.5% in June, its best monthly performance since January. It also notched its third consecutive quarter of growth, up 8.3% in the second quarter. The S&P 500 is about 15.9% higher so far this year, its best half since 2019.

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  • I tried Apple’s new headset. Here’s what it’s like to use | CNN Business

    I tried Apple’s new headset. Here’s what it’s like to use | CNN Business



    CNN
     — 

    It’s rare to find a new technology that feels groundbreaking. But last night, while sitting on a couch in a private demo room at Apple’s campus wearing its newly announced Vision Pro mixed reality headset, it felt like I’d seen the future — or at least an early and very pricey prototype of it.

    In the demo, which lasted 30 minutes, a virtual butterfly landed on my finger; a dinosaur with detailed scales tried to bite me; and I stood inches away from Alicia Keys’ piano as she serenaded me in a recording studio. When a small bear cub swam by me on a quiet lake during another immersive video, it felt so real that it reminded me of an experience with a loved one who recently passed away. I couldn’t wipe the tears inside my headset.

    Apple unveiled the headset, its most ambitious and riskiest new hardware offering in years, at a developer event earlier in the day. The headset blends both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world. At the event, Apple CEO Tim Cook touted the Vision Pro as a “revolutionary product,” with the potential to change how users interact with technology, each other and the world around them. He called it “the first product you look through, not at.”

    But it’s clearly a work in progress. The apps and experiences remain limited; users must stay tethered to a battery pack the size of an iPhone with just two hours of battery life; and the first minutes using the device can be off-putting. Apple also plans to charge $3,499 for the device when it goes on sale early next year – more than had been rumored and far more than other headsets on the market that have previously struggled to gain wide adoption.

    With its loyal following and impressive track record on hardware, Apple may be able to convince developers, early adopters and some enterprise customers to pay up for the device. But if it wants to attract a more mainstream audience, it will need a “killer app,” as the industry often refers to it -— or several.

    Based on my demo, Apple still has a long way to go, but it’s off to a compelling start.

    Hours after the keynote event, I arrived at a building on Apple’s sprawling Cupertino, California, campus specifically constructed to stage demos and briefings for the new headset.

    I was met by an Apple employee who scanned my face to help customize the fit of the headset. Then I entered a small room where an optometrist asked if I wore glasses or corrective lenses. I had gotten Lasik surgery years ago, but others around me had their glasses scanned so the headset could present their specific prescription. It’s an incredible feat that differentiates Apple from competitors and ensures no frames need to be squeezed into the headset. But it’s unclear how the company plans to handle this process at scale if millions buy the device.

    The initial setup process was somewhat unpleasant: I felt a little nauseous and claustrophobic as I adjusted to the device. It tracked my eyes, scanned my hands and mapped the room to better tailor the augmented reality experience.

    But Apple has also taken steps to reduce the motion sickness problem that has plagued other headsets. The headset uses an R1 processor, a custom chip that cuts down on the latency issue found in similar products that can result in nausea.

    As many viewers were quick to point out on Monday, the headset itself looks like a pair of designer ski goggles. It features a soft adjustable strap on the top, a “digital crown” on the back – a bigger version than what you’d find on an Apple Watch – and another digital crown on the top that serves as a kind of home button. There’s also a wire connecting to an external battery pack.

    The headset itself felt light enough in the beginning, but even with Apple’s considerable design chops, I never shook the idea that there was a computer on my face. Fortunately, unlike other computing products, the headset did remain cool on my face throughout the experience, thanks largely to a quiet fan and airflow running through the system

    Unlike other headsets, the new mixed reality headset also displays the eyes of its users on the outside, so “you’re never isolated from the people around you, you can see them and they can see you,” Alan Dye, vice president of human interface, said during the keynote.

    Sadly, I never got to see how my own eyes or anyone else’s looked through the headset during the demo.

    After putting on the device, I saw an iOS-like interface. I could easily hop in and out of apps, such as Messages, FaceTime, Safari and Photos, using just my eye movements and touching my thumb and pointer finger together to act as the “select” button. This was more intuitive than expected and worked even when my hands rested on my lap.

    Some app experiences were better than others, however. It was beautiful to see images in the Photos app presented before me in a larger than life manner, but it’s hard to imagine feeling the need to do this often on a couch back home. Vision Pro also offers a spatial photo option, which lets users view images and videos in 3D so you feel like you’re directly in the scene. Again, cool but unnecessary.

    During another demo, an Apple employee wearing a Vision Pro headset FaceTimed me from the other side of campus. Her “persona” – a digital representation which did not show her wearing the Vision Pro – appeared in front of me as we chatted about the event earlier in the day. She seemed real but it was clear she was not; she was a sort of pseudo-human. (Apple did not scan my face to create my own persona, which would otherwise be done through its OpticID security feature during the setup phase.)

    The Apple employee then shared a virtual whiteboard – dragging, dropping and highlighting interior design images. Cook has focused on AR’s potential to foster collaboration, and it’s clear how this tool could be used in meetings to fulfill that promise. What’s less clear is why most employers would spend $3,499 per device per employee to make this happen rather than simply use Zoom.

    Like so much else about the product unveiling, this pitch felt mistimed. Earlier in the pandemic, more people might have jumped at the chance to create these virtual experiences while we worked and socialized almost entirely from home. Now, with more employees back in the office and companies looking to cut costs amid broader economic uncertainty, the justification for this pricey device seemed less clear.

    The real magic of the Vision Pro, however, is in the immersive videos. Watching an underwater scene from Avatar 2 in 3D, for example, was surreal, seemingly placing me right in the ocean with these fictional creatures. It’s easy to imagine buy-in from Hollywood filmmakers to create experiences just for the headset.

    Apple is also uniquely positioned here to supercharge the device with these experiences. It has close relationships in the entertainment industry, including with former Apple board member and Disney CEO Bob Iger, who announced in a pre-recorded video during the event that Disney+ will be available on the headset at launch. Apple teased new National Geographic, Marvel and ESPN experiences for the headset, too.

    Almost every new Apple product, from the iPhone to the Apple Watch, promises to use screens of varying sizes to change how we live, work and interact with the world. The Vision Pro has the potential to do all of that in an even more striking way. But unlike the first time I picked up an iPhone or a smartatch, after 30 minutes of using Vision Pro, I was very content to put it down and return to the real world.

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  • How your phone learned to see in the dark | CNN Business

    How your phone learned to see in the dark | CNN Business


    New York
    CNN
     — 

    Open up Instagram at any given moment and it probably won’t take long to find crisp pictures of the night sky, a skyline after dark or a dimly lit restaurant. While shots like these used to require advanced cameras, they’re now often possible from the phone you already carry around in your pocket.

    Tech companies such as Apple, Samsung and Google are investing resources to improve their night photography options at a time when camera features have increasingly become a key selling point for smartphones that otherwise largely all look and feel the same from one year to the next.

    Earlier this month, Google brought a faster version of its Night Sight mode, which uses AI algorithms to lighten or brighten images in dark environments, to more of its Pixel models. Apple’s Night mode, which is available on models as far back as the iPhone 11, was touted as a premier feature on its iPhone 14 lineup last year thanks to its improved camera system.

    These tools have come a long way in just the past few years, thanks to significant advancements in artificial intelligence technology as well as image processing that has become sharper, quicker, and more resilient to challenging photography situations. And smartphone makers aren’t done yet.

    “People increasingly rely on their smartphones to take photos, record videos, and create content,” said Lian Jye Su, an artificial intelligence analyst at ABI Research. “[This] will only fuel the smartphone companies to up their games in AI-enhanced image and video processing.”

    While there has been much focus lately on Silicon Valley’s renewed AI arms race over chatbots, the push to develop more sophisticated AI tools could also help further improve night photography and bring our smartphones closer to being able to see in the dark.

    Samsung’s Night mode feature, which is available on various Galaxy models but optimized for its premium S23 Ultra smartphone, promises to do what would have seemed unthinkable just five to 10 years ago: enable phones to take clearer pictures with little light.

    The feature is designed to minimize what’s called “noise,” a term in photography that typically refers to poor lighting conditions, long exposure times, and other elements that can take away from the quality of an image.

    The secret to reducing noise, according to the company, is a combination of the S23 Ultra’s adaptive 200M pixel sensor. After the shutter button is pressed, Samsung uses advanced multi-frame processing to combine multiple images into a single picture and AI to automatically adjust the photo as necessary.

    “When a user takes a photo in low or dark lighting conditions, the processor helps remove noise through multi-frame processing,” said Joshua Cho, executive vice president of Samsung’s Visual Solution Team. “Instantaneously, the Galaxy S23 Ultra detects the detail that should be kept, and the noise that should be removed.”

    For Samsung and other tech companies, AI algorithms are crucial to delivering photos taken in the dark. “The AI training process is based on a large number of images tuned and annotated by experts, and AI learns the parameters to adjust for every photo taken in low-light situations,” Su explained.

    For example, algorithms identify the right level of exposure, determine the correct color pallet and gradient under certain lighting conditions, sharpen blurred faces or objects artificially, and then makes those changes. The final result, however, can look quite different from what the person taking the picture saw in real time, in what some might argue is a technical sleight-of-hand trick.

    Lights illuminate the Atlanta Botanical Gardens, in this photo taken using Google Pixel 5 Night Sight setting.

    Google is also focused on reducing noise in photography. Its AI-powered Night Sight feature captures a burst of longer-exposure frames. It then uses something called HDR+ Bracketing, which creates several photos with different settings. After a picture is taken, the images are combined together to create “sharper photos” even in dark environments “that are still incredibly bright and detailed,” said Alex Schiffhauer, a group product manager at Google.

    While effective, there can be a slight but noticeable delay before the image is ready. But Schiffhauer said Google intends to speed up this process more on future Pixel iterations. “We’d love a world in which customers can get the quality of Night Sight without needing to hold still for a few seconds,” Schiffhauer said.

    Google also has an astrophotography feature which allows people to take shots of the night sky without needing to tweak the exposure or other settings. The algorithms detect details in the sky and enhances them to stand out, according to the company.

    Apple has long been rumored to be working on an astrophotography feature, but some iPhone 14 Pro Max users have successfully been able to capture pictures of the sky through its existing Night Mode tool. When a device detects a low-light environment, Night mode turns on to capture details and brighten shots. (The company did not respond to a request to elaborate on how the algorithms work.)

    AI can make a difference in the image, but the end results for each of these features also depend on the phone’s lenses, said Gartner analyst Bill Ray. A traditional camera will have the lens several centimeters from the sensor, but the limited space on a phone often requires squeezing things together, which can result in a more shallow depth of field and reduced image quality, especially in darker environments.

    “The quality of the lens is still a big deal, and how the phone addresses the lack of depth,” Ray said.

    While night photography on phones has come a long way, a buzzy new technology could push it ahead even more.

    Generative AI, the technology that powers the viral chatbot ChatGPT, has earned plenty of attention for its ability to create compelling essays and images in response to user prompts. But these AI systems, which are trained on vast troves of online data, also have potential to edit and process images.

    “In recent years, generative AI models have also been used in photo-editing functions like background removal or replacement,” Su said. If this technology is added to smartphone photo systems, it could eventually make night modes even more powerful, Su said.

    Big Tech companies, including Google, are already fully embracing this technology in other parts of their business. Meanwhile, smartphone chipset vendors like Qualcomm and MediaTek are looking to support more generative AI applications natively on consumer devices, Su said. These include image and video augmentation.

    “But this is still about two to three years away from limited versions of this showing up on smartphones,” he said.

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  • Mark Zuckerberg has thoughts on Apple’s new mixed reality headset | CNN Business

    Mark Zuckerberg has thoughts on Apple’s new mixed reality headset | CNN Business



    CNN
     — 

    Days after Apple unveiled its $3,499 mixed reality headset, Meta CEO Mark Zuckerberg appeared to take a jab at the company’s pricing and vision for the product.

    “Our device is also about being active and doing things,” Zuckerberg said at an all-hands meeting with Meta employees on Thursday, referencing its Quest VR headset line. “By contrast, every demo that [Apple] showed was a person sitting on a couch by themself. I mean, that could be the vision of the future of computing, but like, it’s not the one that I want.”

    He added that Meta’s vision for the metaverse, an immersive virtual world, is “fundamentally social.”

    The remarks were first reported by The Verge. A spokesperson for Meta later confirmed their accuracy to CNN.

    The Apple Vision Pro headset blends both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world. It represents Apple’s most ambitious and riskiest new hardware offering in years, and also pits the company against Meta, which has invested billions in VR and currently dominates the headset market.

    Last week, Zuckerberg tried to preempt the expected Apple headset announcement by teasing the Meta Quest 3. The new headset promises improved performance, new mixed-reality features and a sleeker, more comfortable design, at a more affordable price ($499).

    In his remarks to employees, Zuckerberg repeatedly focused on headset pricing.

    “We innovate to make sure that our products are as accessible and affordable to everyone as possible, and that is a core part of what we do,” Zuckerberg told his staff. At another point, Zuckerberg said Apple’s decision to invest in a high-res display and other technology under the hood meansit costs seven times more and now requires so much energy that now you need a battery and a wire attached to it to use it.”

    The two companies had a tense relationship even before Apple’s entry into the market. They have competed over news and messaging features, and their CEOs have traded jabs over data privacy and app store policies. Last February, Meta said it expected to take a $10 billion hit in 2022 from Apple’s move to limit how apps like Facebook collect data for targeted ads. But the rivalry now appears poised to reach a new level.

    In an early demo with the Vision Pro, CNN was impressed with the company’s unique approach to the device, from how it can present a users’ specific eyeglasses prescription so no frames need to be squeezed into the headset to how a custom processor cuts down on the latency, an issue found in similar products that can result in nausea. Its immersive video capabilities were also stunning.

    But the headset is clearly a work in progress. The apps and experiences remain limited; users must stay tethered to a battery pack the size of an iPhone with just two hours of battery life; and the first minutes using the device can be off-putting. Apple also plans to charge far more than other headsets on the market that have previously struggled to gain wide adoption.

    Some industry watchers expect Apple, with its impressive hardware track record, will ultimately win out in the market. But in his remarks Thursday, Zuckerberg said Apple’s approach “made me even more excited and in a lot of ways optimistic that what we’re doing matters and is going to succeed.”

    The headset wasn’t the only topic Zuckerberg addressed during the hands-on meeting. He also discussed the company’s growing focus on building generative AI into “all of our products,” as Meta and other companies race to adapt to the rise of ChatGPT.

    “We’re going to play an important and unique role in bringing these capabilities to billions of people, and in the process it’s going to touch every product we make,” Zuckerberg said in a statement shared with CNN.

    Meta recently announced it is bringing AI agents with “unique personas and skill sets” to Messenger and WhatsApp, with eventual plans to roll it out to other apps, products and even the metaverse.

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  • The iPhone’s ducking autocorrect problem finally gets fixed | CNN Business

    The iPhone’s ducking autocorrect problem finally gets fixed | CNN Business


    New York
    CNN
     — 

    Your iPhone’s autocorrect is getting a big ducking upgrade.

    Currently, when you enter a typo or key in an unrecognized word, Apple’s iOS uses some onboard machine learning and references a library of frequent misspellings to automatically correct your mistake. But, as anyone who has ever been seriously annoyed has learned, sometimes your correctly spelled salty language will get changed to something else entirely.

    In the new iOS 17, announced at Apple’s Worldwide Developers Conference Monday, a new kind of AI-powered autocorrect could solve that problem.

    Apple’s new iOS keyboard will learn your habits over time, fixing words that you frequently misspell – and leaving words alone that you intentionally thumbed in. It will also use AI to better predict your next word and provide improved autofill suggestions.

    “In those moments where you just want to type a ducking word, well, the keyboard will learn it, too,” said Craig Federighi, Apple’s head of software, during Apple’s presentation.

    Using a so-called transformer language model, similar to the technology that powers ChatGPT, Federighi said the new iOS will be able to fix entire sentences based on context. For example, Apple will know to change “your” to “you’re” when you’ve completed a sentence using the incorrect word.

    The new iOS will also allow you to revert to the original word you typed by tapping on the change, and it will learn from your habits over time.

    Predictive text is also getting better, allowing people to tap the spacebar to fill in words and complete entire sentences in some cases. Dictation is also getting some improvements, as Apple’s new keyboard engine will learn your voice over time.

    Apple is banking on its in-house processor, also announced at the conference, to power the language model each time a user interacts with the keyboard.

    The makeover to the keyboard and autocorrect will be in the new iOS 17 slated for later this year.

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  • Apple’s Weather app briefly went down and rained on everyone’s morning | CNN Business

    Apple’s Weather app briefly went down and rained on everyone’s morning | CNN Business


    New York
    CNN
     — 

    Anyone using their iPhone to check the weather on Tuesday may have had better luck just looking out the window.

    Apple’s default Weather app briefly went down for many users on Tuesday morning, showing blank screens with no data. The result: many users felt clueless about what was happening outside.

    “The Apple Weather app has been down all morning and I never imagined how much disruption that would cause,” wrote one Twitter user. Another tweeted an apparent “Top Gun” reference: “Biggest storm of the season is about to hit Fargo and the Apple weather app is down. I’m flying blind, Goose.”

    There are numerous other sources one could use to determine the weather, including various apps, websites, local news reports and, of course, one’s own eyes. But the apparent disruption from the outage highlights how reliant some have grown on certain popular applications.

    Apple confirmed the outage in a Twitter reply to a frustrated user, noting that some app users may be experiencing a “temporary outage.” The company’s

    System Status page
    also flagged the Weather app as facing an ongoing issue.

    Apple did not immediately respond to CNN’s request for comment.

    One CNN reporter saw only a handful of cities on the Weather app home screen load with full data, while most cities remained completely blank. The app usually displays information including hourly forecast, 10-day forecast, air quality index, precipitation, UV index and more.

    The app was revamped as part of the iOS 16 release in September after Apple bought popular weather service Dark Sky in 2020 and fully integrated its features into the newest operating system.

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  • Apple commits to investing across India as Tim Cook opens second store | CNN Business

    Apple commits to investing across India as Tim Cook opens second store | CNN Business


    New Delhi
    CNN
     — 

    Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi on Wednesday, pledging to invest further in the fast-growing economy as his company ramps up retail and manufacturing activities.

    The visit underscores how the world’s most valuable company is continuing to pivot to India, eyeing its potential as both a consumer market and production hub. India is set to surpass China as the world’s most populous nation by the middle of this year, according to data released by the United Nations.

    “From education and developers to manufacturing and the environment, we’re committed to growing and investing across the country,” Cook wrote on Twitter following the meeting.

    Modi said on Twitter that the two had exchanged views on a range of topics, including “the tech-powered transformations taking place in India.”

    Apple

    (AAPL)
    ’s CEO is in India this week to open its first physical stores in the country, marking a milestone for the iPhone maker in the world’s second largest smartphone market after China.

    Cook presided over the company’s second store opening in the capital of New Delhi on Thursday, after launching Apple’s first outlet in Mumbai earlier this week, greeting customers and taking selfies with employees.

    Cook also met other officials including IT Minister Ashwini Vaishnaw, who tweeted afterward that the pair had “discussed deepening Apple’s engagement in India across manufacturing, electronics exports, [the] app economy, skilling, sustainability and job creation especially for women.”

    Rajeev Chandrasekhar, India’s deputy minister for information technology, said he was optimistic about how much Apple could expand its footprint in the country.

    “I am very confident that this Apple-India partnership has a lot of headroom for investments, growth, exports and jobs — doubling and tripling over coming years,” he told Reuters.

    Apple declined to comment, while India’s IT ministry did not immediately respond to a request for details.

    Apple’s expansion in India coincides with its 25th year of operating in the country.

    The California-based giant is the world’s second biggest smartphone maker behind Samsung

    (SSNLF)
    , but its 6% share of the Indian market remains small.

    Apple, which is considered too expensive by many consumers in the country, is dwarfed by India’s top five mobile vendors, led by Samsung and Chinese smartphone makers Xiaomi and Vivo.

    The US firm’s share is expected to grow, however, as it continues to build out its retail presence in the country and more customers turn to high-end smartphones.

    Apple has also been ramping up its manufacturing in India, where it first began making iPhones in 2017.

    In recent months, it has expanded production there after suffering supply chain snags in mainland China, which accounts for the bulk of its smartphone manufacturing.

    Two of Apple’s top suppliers, Foxconn and Wistron, were the fastest-growing manufacturers in India during the last quarter of 2022, according to Counterpoint Research.

    Last month, Foxconn CEO Young Liu also spent a week in the country and met with Modi.

    In a statement this week, Apple said it was working with suppliers to “produce a growing number of components.”

    The company’s “work with Indian suppliers of all sizes supports hundreds of thousands of jobs across the country,” it added.

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  • Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business

    Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business


    Hong Kong
    CNN
     — 

    Apple launched an online store in Vietnam this week, in another nod to the growing importance of emerging markets for the iPhone maker.

    The opening on Thursday, which followed the high-profile launch of its first physical shops in India, means consumers in the fast-growing Southeast Asian economy will be able to buy any Apple product directly for the first time.

    Markets like Vietnam, India and Indonesia are becoming more important for Apple as its growth in developed markets, including China, slows down, prompting the company to focus on places where it’s traditionally been less active.

    For decades, China was central to Apple’s extraordinary ascent to become the most valuable company on Earth, serving as a backbone for both its production and consumption. While the country remains key to Apple’s operations, the tech giant is now hedging its bets.

    Apple

    (AAPL)
    CEO Tim Cook has pointed to the company’s prospects in emerging economies, calling them bright spots in the company’s financial results. On an earnings call this month, Cook said he was “particularly pleased” with the performance in these markets during the first three months of the year.

    Apple “achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India,” he told analysts.

    That came as the California-based giant also reported its second straight drop in overall quarterly revenue, prompting concerns about a broader slowdown in demand amid economic uncertainty.

    “Clearly, growth has slowed globally and thus put more pressure [on Apple] to aggressively go after emerging markets,” said Daniel Ives, managing director of Wedbush Securities.

    Ives predicts that “over the coming years, Indonesia, Malaysia and India will comprise a bigger piece of the pie for Apple, given its efforts in these countries.”

    The start of online sales in a country usually precedes the launch of brick-and-mortar stores for Apple, he told CNN. This was true of India, for instance, which got its first physical outlets last month and a pledge from Cook to further invest in the country.

    Thursday’s launch showed how Apple was “further cementing” its presence in emerging markets, according to Chiew Le Xuan, a research analyst who covers smartphones in Southeast Asia for Canalys.

    He said the tech giant had been “actively increasing” its presence in the region in recent months, ramping up its distribution and network of authorized resellers, especially in Malaysia.

    Apple has ample room to run in these markets.

    Currently, the company only operates its own stores in more developed regional economies, such as Thailand and Singapore, according to Canalys.

    Even Indonesia, a vast archipelago that is the world’s sixth-biggest smartphone market, doesn’t have a physical Apple store yet, said Chiew. Apple’s market share there is tiny, at just 1% in 2022, according to Canalys data.

    “We’re putting efforts in a number of these markets and really see, particularly given our low share and the dynamics of the demographics … a great opportunity for us,” Cook said during Apple’s results call.

    Apple joins a growing list of global businesses that have become bullish on Southeast Asia, where more investment is being poured into manufacturing.

    The region’s consumer base also holds promise, with the number of middle-income and affluent households in economies such as Vietnam, Indonesia, and the Philippines projected to grow by around 5% annually through 2030, according to the Boston Consulting Group.

    The consultancy has called this group of consumers “the next mega-market.”

    The allure of Southeast Asia’s rising middle class “has changed the dynamic in these countries, which previously Apple stayed away from,” according to Ives.

    “This is a golden opportunity for Apple,” he said.

    For years, premium brands like Apple have have struggled to compete in emerging markets because of the price of their products, choosing instead to rely on local resellers.

    iPhones, which cost between $470 and $1,100, are expensive for consumers in less developed Southeast Asian economies, where the bulk of smartphone shipments are priced under $200, according to Chiew.

    He said Apple’s absence from places like Cambodia or Vietnam was typically more apparent around the launch of a new iPhone, as buyers from those countries often flew to Singapore or Malaysia to purchase devices and take them back for resale.

    A view of an Apple store at Marina Bay Sands in Singapore in 2020. Buyers from other Southeast Asian countries without their own Apple stores typically line up outside such outlets to buy devices for resale, according to an analyst.

    This could change in the coming years, particularly as Apple continues to increase its firepower in the region.

    Ives predicted that Apple could “further expand its ecosystem and tentacles to emerging markets using its China playbook,” meaning it could try to hook customers through “various pricing strategies and building out from there.”

    Once those users have converted to Apple’s operating system, iOS, they tend to stick around and become loyal customers, he added.

    This has “been the core part of its success in China that now can be replicated in India, Indonesia, and Vietnam, among others,” said Ives.

    But Apple may face hurdles in Southeast Asia, where several countries have placed stringent requirements on foreign businesses, according to Chiew.

    For example, at least 35% of the components of electronic goods sold in Indonesia must made locally, a threshold Apple has had to meet by working with partners, he added. Similar rules prevented Apple from setting up shop in India for years until the relaxation of regulations in 2019.

    And while consumers are becoming more affluent, the company’s price points are still considered high in many emerging markets, noted Ives. “Growth will be choppy we believe.”

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  • Tim Cook and Bob Iger to meet with House China committee members | CNN Business

    Tim Cook and Bob Iger to meet with House China committee members | CNN Business


    Washington
    CNN
     — 

    Members of a House panel focused on US-China competition are set to meet with leaders from Silicon Valley and Hollywood during a multi-day tour of California beginning today, according to a source close to the committee.

    The House Select Committee on the Chinese Communist Party plan to meet with top execs from Google, Microsoft, Apple and Disney, among others, to discuss topics ranging from China’s investments in artificial intelligence to its cultural and human rights record; its impact on supply chains; and its goals for defense and other emerging technologies, the source said.

    “We’re going to learn and share our concerns and views on the geopolitics at play here, and what we understand the CCP’s broader ambitions to be,” the source said.

    The 10-member bipartisan congressional delegation led by Chairman Mike Gallagher, a Wisconsin Republican, will kick things off Wednesday in a meeting with Disney CEO Bob Iger, where lawmakers are expected to raise concerns about Disney’s compliance with China’s censorship regime.

    Lawmakers will also dine with entertainment producers and screenwriters who have been critical of the industry’s approach to wooing Chinese viewers, the source said.

    On Thursday, lawmakers will engage with officials from Big Tech and venture capital, the source said. Microsoft President Brad Smith will speak to members about China’s control of rare earth minerals, a key input in many modern computing technologies, while experts from Stanford University are set to discuss innovation in the defense field. The group is expected to lunch with Big Tech executives representing Google, Microsoft, Palantir and Scale AI.

    On Friday, lawmakers will have conversations with former Defense Secretary James Mattis as well as Apple CEO Tim Cook. China is Apple’s third-largest geographic business segment after the Americas and Europe, accounting for more than $74 billion in company revenues last year. Apple’s revenue from China grew by 70% between 2020 and 2021, according to its financial reports.

    The meetings will also include a session on China’s role in the digital currency space and talks with members of the cryptocurrency community based in California, the source added.

    The breadth of subjects covered on the tour highlight the range of challenges the Chinese government poses to US leadership, the source said, adding that lawmakers will seek to deliver the message to business that excessive dependence on China — whether for supplies, or as a base of potential customers — exposes the US to risk.

    “This committee was set up to build out the bipartisan consensus on the CCP and the actions we need to take to defend ourselves,” the source said. “[The goal is to] make them aware of what’s happening so they can equip themselves as appropriate.”

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