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Tag: mobile technology

  • TikTok sues Montana over new law banning the app | CNN Business

    TikTok sues Montana over new law banning the app | CNN Business

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    New York
    CNN
     — 

    TikTok on Monday filed a suit against Montana over a bill that would ban the popular short-form video app in the state starting early next year.

    TikTok alleges that the ban violates the US Constitution, including the First Amendment, as well as other federal laws, according to a complaint filed in Montana District Court. The company also claims concerns that the Chinese government could access the data of US TikTok users – which are a key motivation behind the ban – are “unfounded.”

    The bill was signed by Montana Gov. Greg Gianforte last week, and would impose a fine of $10,000 per day on TikTok or app stores for making the app available to personal devices in the state starting on January 1, 2024.

    “We are challenging Montana’s unconstitutional TikTok ban to protect our business and the hundreds of thousands of TikTok users in Montana,” TikTok spokesperson Brooke Oberwetter said in a statement. “We believe our legal challenge will prevail based on an exceedingly strong set of precedents and facts.”

    Emily Flower, a spokesperson for Montana’s Attorney General, told CNN: “We expected a legal challenge and are fully prepared to defend the law.”

    The Montana law stems from growing criticism of TikTok over its ties to China through its parent company, ByteDance. Many US officials have expressed fears that the Chinese government could potentially access US data via TikTok for spying purposes, though there is no evidence that the Chinese government has ever done so. Some federal lawmakers have also called for a ban.

    Montana’s ban went a step beyond other states that have restricted TikTok from government devices. But legal and technology experts say there are challenges for Montana, or any state, to enforce such a ban. Even if the law is allowed to stand, the practicalities of the internet may make it impossible to keep TikTok out of the hands of users.

    TikTok said in the complaint that the app is used by “hundreds of thousands” of people in Montana to “communicate with each other and others around the world on an endless variety of topics, from business to politics to the arts.”

    “This unprecedented and extreme step of banning a major platform for First Amendment speech, based on unfounded speculation about potential foreign government access to user data and the content of the speech, is flatly inconsistent with the constitution,” TikTok said in the complaint.

    TikTok is seeking for the court to invalidate and permanently enjoin Montana from enforcing the ban.

    The legal challenge by TikTok is an indicator of the hurdles that Montana and other lawmakers could face in attempting to restrict the platform in the United States. A group of TikTok creators also sued Montana last week over the state’s ban, saying it violates their First Amendment rights.

    CNN’s Brian Fung contributed to this report.

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  • Tired of Elon Musk? Here are the Twitter alternatives you should know about | CNN Business

    Tired of Elon Musk? Here are the Twitter alternatives you should know about | CNN Business

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    CNN
     — 

    When Elon Musk took over Twitter in October and began upending the platform, there weren’t many viable alternatives for frustrated users. Now, there may be too many.

    A growing number of services have launched or gained traction in recent months by appealing to users who are uncomfortable with Musk’s decisions to slash Twitter’s staff, overhaul the verification process, reinstate numerous incendiary accounts and most recently impose temporary read limits on tweets.

    Bluesky, Mastodon and Spill are among the many social apps vying for users over the last several months, with services that look and feel strikingly similar to Twitter. But now this increasingly crowded marketplace may be disrupted by the most dominant social media company: Meta.

    Meta’s Twitter clone, Threads, launched Wednesday and amassed more than 70 million sign-ups as of Friday morning thanks to a decision to tie the app to Instagram. Its user base is already far more than newer rivals and puts Threads on pace to rapidly catch up to Twitter, which had 238 million active users last year before Musk took the company private.

    In interviews, some other Twitter competitors took jabs at Meta’s effort and expressed confidence in their ability to grow and maintain an audience, even if it ends up being much smaller than what Mark Zuckerberg’s company can attract.

    “Threads leans heavily on celebrities and people with large Instagram followings, and therefore risks being more of a megaphone for the established, rather than something for everyone,” Sarah Oh, a former Twitter employee and founder of rival app T2, told CNN in an email.

    Spill co-founder and CEO Alphonzo Terrell said the company is “thrilled to see so much innovation in the social space” and remains “confident in our roadmap.”

    Here’s what you should know about the current crop of services trying to take on Twitter.

    Threads is Meta’s long-anticipated answer to Twitter and the biggest threat to the social network Musk bought for $44 billion. Threads is intended to offer a space for real-time conversations online, a function that has long been Twitter’s core selling point, and it’s doing so in part by adoption many of Twitter’s most recognizable features.

    The app has already attracted a long list of celebrities, brands and other VIP users, as well as many who clearly appear to be frustrated with Musk’s Twitter. And Zuckerberg isn’t just looking to catch up to Twitter; he wants to build a service that’s far larger.

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

    Launched by former Twitter employees, Spill says it strives to be a “visual conversation at the speed of culture.”

    The site is visual heavy and pushes GIFs, memes and video, making it more of a destination for creative communities. Spill has also emerged as a haven for Black Twitter users and marginalized communities seeking a safe space online.

    While the traction for Threads was unique, Spill has gained recently, too. Last weekend, amid renewed chaos at Twitter over the read limits, Spill gained “hundreds of thousands of new users,” according to Terrell, the CEO.

    T2, another service created by former Twitter employees, offers a social feed of posts with 280-character limits. The key selling point that sets it apart from others is its focus on safety, according to Oh, the founder.

    “We really do want to create an experience that allows people to share what they want to share without fearing risk of things like abuse and harassment, and we feel like we’re really well positioned to deliver on that,” Oh told CNN in February.

    In a statement this week, Oh doubled down on safety as a possible differentiator with Threads as well, raising the question of whether Meta had “learned from their past mistakes” after years of scrutiny on its struggles to police its own platforms.

    Bluesky, a service backed by Twitter co-founder Jack Dorsey, looks identical to Twitter, with one key difference. The app runs on a decentralized network, which provides users more control over how the service is run, the data is stored, and the content is moderated.

    Bluesky was formed independently of Twitter while Dorsey was serving as CEO but it was funded by the company until it became an independent organization in February 2022. In a tweet introducing the idea in 2019, Dorsey said it also plans to “build an open community around it, inclusive of companies & organizations, researchers, civil society leaders,” but warned “this isn’t going to happen overnight.”

    This week, Dorsey appeared to acknowledge that the market is now flooded with “Twitter clones.”

    Also built on decentralized networks, Mastodon launched before Musk took over Twitter but skyrocketed in popularity after the acquisition.

    Mastodon lets users join a slew of different servers run by various groups and individuals, rather than one central platform controlled by a single company like Twitter or Instagram. Mastodon is also free of ads. It’s developed by a nonprofit run by Eugen Rochko, who created Mastodon in 2016.

    After joining, users pick a server, with options from general-interest servers such as mastodon.world; regional servers like sfba.social, which is aimed at people in the San Francisco Bay Area; and ones aimed at various interests (many servers review new sign-ups before approving them.)

    Launched publicly in June 2022, Cohost offers a text-based social media feed with followers, reposts, likes and comments, similar to Twitter. However, the product is chronologically based with no ads, no trending topics and no displayed interactions (think hidden like counts and follower lists).

    Part of Cohost’s goal is to create a less hostile space for open dialogue, according to the website.

    “People who hear ‘Facebook has a Twitter replacement now!’ and don’t immediately run for the hills are unlikely to be interested in anything we’re doing,” said Jae Kaplan, co-founder of anti-software software club, the company that develops cohost. “We’re in separate market niches. I doubt they’re going to do anything to try and appeal to our users, and we’re not going to do anything to try and appeal to their users.”

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  • Where TikTok users may go if the app gets banned | CNN Business

    Where TikTok users may go if the app gets banned | CNN Business

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    CNN
     — 

    On the eve of a high-profile TikTok hearing this week, the company shared that it now has more than 150 million US monthly active users. But after the heated, hours-long hearing, filled with lawmakers telling TikTok’s CEO the app should be banned, some may now be wondering where all those users will go next if the social network disappears.

    The answer: probably other big American tech platforms.

    Many of the largest US social media companies have spent years copying TikTok’s features, which would make a shift away from the platform easier for its creators and users. Instagram, for example, introduced its own short-form video tool in 2020 called Reels. Snapchat has Spotlight, YouTube has Shorts and even Spotify has a TikTok-like video feed with recommended music and other content.

    “Obviously, if a ban is approved and enforced, the content, user count and engagement, and likely ad dollars for Snap, Instagram, and YouTube will increase,” said Ali Mogharabi, an analyst at financial services firm Morningstar, in a recent investor’s note.

    In other words, Washington’s efforts to crack down on TikTok over national security concerns could ultimately benefit some of the same American tech companies that Washington has scrutinized for other reasons, including their market dominance and impact on teens.

    Even if a ban does not happen, it could still benefit these companies. “This uncertainty could push some TikTok content creators to focus more on, and possibly begin, pushing their audiences to other social network platforms,” Mogharabi said.

    At least one company is already seeing a boost. Snap’s stock rose in the days leading up to TikTok’s appearance before Congress amid renewed talks among federal officials of a TikTok ban.

    At the hearing on Thursday, TikTok CEO Shou Chew was grilled by lawmakers who expressed deep skepticism about his company’s attempts to protect US user data and ease concerns about its ties to China. TikTok’s parent company, ByteDance, is based in Beijing and subject to Chinese data request laws that could require it to hand over user data to the government.

    Washington Republican Rep. Cathy McMorris Rodgers, the chair of the House Energy and Commerce Committee, opened Thursday’s hearing by telling Shou: “Your platform should be banned.” As the hearing was taking place, House Speaker Kevin McCarthy said he supports legislation that would effectively ban TikTok and Secretary of State Antony Blinken said TikTok should be “ended one way or another.”

    If that happens, Lian Jye Su, an analyst with ABI Search, believes users will follow their favorite TikTok influencers and content creators wherever they go.

    “Most users will flock to where the content creators go next,” Su said. “Instagram, Snapchat, and Youtube Shorts stand to benefit the most as content creators will still prefer places where they can monetize their content.”

    Smaller platforms have the opportunity to gain ground, too, Su said. Short-form video platform Triller, which reportedly has over 450 million users, is actively courting popular content creators from TikTok with cash bonuses, partnerships and other incentives to switch platforms. Meanwhile, Dubsmach – a Reddit-owned short video platform – and Clash, which allows people to create 21-second looping videos, are other platforms that could be increasingly appealing to creators.

    For now, talk of a TikTok ban may still be premature. The Biden administration has threatened to ban TikTok from the United States unless the app’s Chinese owners agree to spin off their share of the social media platform.

    “I strongly doubt this app will go dark,” Rep. Raja Krishnamoorthi told CNN during a primetime special about TikTok on Thursday. He said a sale is most likely.

    If the app is sold, that could complicate matters for some US tech platforms.

    “For Snap, which has a weaker network effect than Meta, a possibly more trusted US TikTok may make it more difficult to attract users away from or keep them from migrating to TikTok,” Moghaharbi wrote in the investor’s note.

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  • Samsung profits plunge 95% | CNN Business

    Samsung profits plunge 95% | CNN Business

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    Samsung Electronics flagged a gradual recovery for chips in the second half of the year after its semiconductor business reported a record loss on Thursday, driven by weak demand for tech devices.

    A global downturn in semiconductor purchases amid an economic slowdown and weak customer spending sent chip prices plummeting in the first quarter, triggering production cuts across the sector.

    Samsung

    (SSNLF)
    said its chip business would focus on high-capacity server and mobile products “based on expectations of a gradual market recovery and a rebound in global demand” in the second half.

    For the current quarter, Samsung said it expected limited recovery for memory chips as major data center firms invested more conservatively in servers.

    The world’s biggest memory chipmaker said operating profit fell to 640 billion won ($478.6 million) for the January-March quarter, down 95% from 14.12 trillion won a year earlier and the lowest profit for any quarter in 14 years.

    Revenue fell 18% to 63.7 trillion won.

    The South Korean tech giant’s chip division — normally its most reliable cash cow — reported a 4.58 trillion won loss compared to an 8.45 trillion won profit a year earlier.

    Shoppers around the world have cut back on purchases due to rising inflation. As a result, smartphone, personal computer and server companies have run down inventories, causing chip prices to plunge by about 70% over the previous nine months.

    Samsung made a rare announcement of a chip production cut earlier this month, joining smaller rivals.

    Although this could help chip prices recover slightly, analysts said Samsung’s profit in the current quarter may be similar to Q1 without a fundamental recovery in demand for devices that use chips.

    By the second half of the year, customers will have run down inventory and gradually start buying chips again, Samsung said.

    Despite the record loss in chips, Samsung said it spent 10.7 trillion won in capital expenditures during Q1, the highest for the first quarter of any year.

    Out of that, 9.8 trillion won was spent on chips as Samsung sets up production in its Taylor, Texas and Pyeongtaek, South Korea factories.

    “Samsung Electronics will continue to invest in memory semiconductors at a similar level to the previous year … to secure mid- to long-term competitiveness,” it said.

    Samsung’s mobile business was a brighter spot, reporting 3.94 trillion won profit in Q1, up from 3.82 trillion won a year earlier.

    “Samsung is focusing on profit rather than shipments” as it meets more resilient demand for premium smartphones rather than volume, said Jene Park, senior analyst at Counterpoint.

    In the second half, Samsung forecast the smartphone market would increase in both shipments and revenue as the global economy recovers.

    Shares in Samsung fell 0.5% in morning trade, in line with the wider market.

    Samsung shares have risen about 16% year-to-date as investors anticipate a memory chip recovery in the second half of this year.

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  • Reddit sparks outrage after a popular app developer said it wants him to pay $20 million a year for data access | CNN Business

    Reddit sparks outrage after a popular app developer said it wants him to pay $20 million a year for data access | CNN Business

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    Washington
    CNN
     — 

    Twitter has been widely criticized for trying to charge transit agencies, third-party app developers and academics for data access to its platform, a move opponents say has forced independent apps to shut down and threatened research on misinformation and hate speech.

    Now, a similar revolt against Reddit may be gaining steam after a popular app developer said Wednesday the social media company wants to charge him $20 million a year to continue offering software that lets Reddit users view and interact with the platform.

    The newly unveiled pricing of Reddit’s paywall “is close to Twitter pricing” and is not “anything based in reality or remotely reasonable,” said Christian Selig, developer of the Apollo app, in a Reddit post on Wednesday. “It goes without saying that I don’t have that kind of money or would even know how to charge it to a credit card.”

    Selig’s post highlights a plan Reddit announced in April to enact a Twitter-like pricing structure for its application programming interface (API) — the software that allows other programs to tap into the company’s data, including posts and comments. Reddit’s API is what allows Reddit content to be displayed to the Apollo app’s 900,000 daily active users.

    Reddit’s initial announcement had been light on pricing details, leaving many to speculate about the future of third-party access to Reddit. As details of its pricing plan trickled out on Wednesday, Reddit did not dispute Selig’s account of his conversations with the company, but said Reddit remains “committed to fostering a safe and responsible developer ecosystem.”

    “Expansive access to data has impact and costs involved, and in terms of safety and privacy we have an obligation to our communities to be responsible stewards of data,” said Tim Rathschmidt, a company spokesperson, in an email.

    Selig’s tweet on the issue has been viewed more than one million times and has led to an outpouring of criticism for Reddit. “Apollo is the only reason I use Reddit,” one fan of the app tweeted. Another said: “Reddit is going full Twitter and it’s a big mistake.” .

    Selig had initially expressed cautious optimism about the company’s plan, saying on the day of the announcement that he had spoken to the company and that if the new moves were implemented reasonably, “this could be a positive change.”

    But now, a month later, Selig’s optimism has deflated. According to Selig’s post Wednesday, Reddit intends to charge $12,000 for every 50 million attempts to access the company’s data.

    “Apollo made 7 billion requests last month,” Selig wrote Wednesdsay, meaning his additional costs simply for running his business as usual would add up to “1.7 million dollars per month, or 20 million US dollars per year.”

    “I’d be in the red every month,” he added. Selig didn’t immediately respond to questions from CNN about whether he expects to have to shut down the app.

    Selig isn’t the only app developer crying foul. Some developers have said Reddit’s API changes would also block ads in third-party apps, potentially depriving apps of ad revenue and forcing them to try to convert users to subscription business models.

    Part of the motivation for Reddit’s plan involves the surging popularity of artificial intelligence.

    Large language models such as ChatGPT are developed using training data, which in many cases is sourced from content found across the internet. Reddit should not be expected to provide that data to “some of the largest companies in the world for free,” CEO Steve Huffman told the New York Times in a recent interview.

    Meanwhile, Reddit is also widely expected to go public, potentially as soon as this year. The stock offering could add to pressure for Reddit to show revenue growth. Its paid API could help on that front.

    But that could come at the expense of independent apps and, as some pointed out, Reddit users who may experience a loss of choices in ways to access the platform. Some predicted that they might soon have to rely on Reddit’s proprietary app, which has been widely panned by users, if they wish to access the site at all.

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  • Twitter threatens to sue Meta after rival app Threads gains traction | CNN Business

    Twitter threatens to sue Meta after rival app Threads gains traction | CNN Business

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    CNN
     — 

    Twitter is threatening Meta with a lawsuit after the blockbuster launch of Meta’s new Twitter rival, Threads — in perhaps the clearest sign yet that Twitter views the app as a competitive threat.

    On Wednesday, an attorney representing Twitter sent Meta CEO Mark Zuckerberg a letter that accused the company of trade secret theft through the hiring of former Twitter employees.

    The letter was first reported by Semafor. A person familiar with the matter confirmed the letter’s authenticity to CNN.

    The letter by Alex Spiro, an outside lawyer for Twitter owner Elon Musk, alleged that Meta had engaged in “systematic, willful, and unlawful misappropriation of Twitter’s trade secrets and other intellectual property.”

    In response to reports on the letter, Musk tweeted: “Competition is fine, cheating is not.”

    The letter goes on to say that Meta hired former Twitter employees who “have improperly retained Twitter documents and electronic devices” and that Meta “deliberately” involved these employees in developing Threads.

    “Twitter intends to strictly enforce its intellectual property rights,” Spiro continued, “and demands that Meta take immediate steps to stop using any Twitter trade secrets or other highly confidential information.”

    Meta spokesperson Andy Stone flatly dismissed the letter. “No one on the Threads engineering team is a former Twitter employee — that’s just not a thing,” he said on Threads.

    In the months since Musk acquired Twitter for $44 billion, the social network has been challenged by a growing number of smaller microblogging platforms, such as the decentralized social network Mastodon and Bluesky, an alternative backed by former Twitter CEO Jack Dorsey. But Twitter has not threatened either with litigation.

    Unlike some Twitter rivals, Threads has experienced rapid growth, with Zuckerberg reporting 30 million user sign-ups in the app’s first day. As of Thursday afternoon, Threads was the number-one free app on the iOS App Store.

    The legal threat may not necessarily lead to litigation but it could be part of a strategy to slow down Meta, said Carl Tobias, a law professor at the University of Richmond.

    “Sometimes lawyers, they threaten but don’t follow through. Or they see how far they can go. That may be the case, but I don’t know that for sure,” Tobias told CNN. He added: “There may be some value to tying it up in litigation and complicating life for Meta.”

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  • Twitter’s former CEO has a new app that looks a lot like Twitter | CNN Business

    Twitter’s former CEO has a new app that looks a lot like Twitter | CNN Business

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    CNN
     — 

    The buzzy new social media app of the moment looks so much like Twitter it’s almost hard to distinguish the two. The profiles, timelines and colors are nearly identical. Even the creator is the same.

    But under the hood, Bluesky, developed by Twitter co-founder and former CEO Jack Dorsey, is vastly different.

    The app, which launched in a closed beta on iOS in February and on Android this month, runs on a decentralized network which provides users with more control over how the service is run, data is stored, and content is moderated.

    In recent days, it’s gained traction among journalists, politicians and celebrities, from Democratic Rep. Alexandria Ocasio-Cortez to model Chrissy Teigan and the 90s band Eve 6.

    Here’s what you should know:

    Bluesky calls itself “a new social network for microblogging.” With the app, users can post and follow short updates on a timeline, just as they would on Twitter, though with some differences. There are currently no hashtags – a central feature on Twitter – and no direct messages.

    Bluesky was formed independently of Twitter while Dorsey was serving as CEO but it was funded by the company until it became an independent organization in February 2022. In a tweet introducing the idea in 2019, Dorsey said it also plans to “build an open community around it, inclusive of companies & organizations, researchers, civil society leaders,” but warned “this isn’t going to happen overnight.”

    In a tweet last year, Dorsey said the “biggest issue and my biggest regret is that [Twitter] became a company.” He later clarified that if a service was a protocol it “can’t be owned by a state, or company.”

    If the idea of a decentralized social network sounds familiar, it’s likely because of Mastodon, another Twitter alternative that also gained attention late last year.

    Like Mastodon, Bluesky appeals to a number of Twitter users who are frustrated with the direction of the platform under owner Elon Musk. In the six months since Musk took over Twitter, he has made a number of controversial changes to its features and policies, including the removal of blue check marks from prominent users.

    Some of the same high-profile users now testing out Bluesky have also been openly critical of Musk’s moves at Twitter.

    According to data.ai, the company formerly known as App Annie, Bluesky has been downloaded more than 375,000 times from the Apple App Store and the waitlist continues to be flooded with signup requests. On the Google Play Store, Bluesky is described as having been downloaded more than 100,000 times. (By comparison, Twitter reported having more than 200 million monetizable daily active users last year before Musk completed his acquisition.)

    Bluesky did not immediately respond to a request for comment.

    It’s unclear if Bluesky has staying power or will lose steam as Mastodon did. But Mark Bartholomew, a professor at the University at Buffalo School of Law who writes about online privacy, said the early shift toward Bluesky is a positive one, as it gives social media users more choice over where they spend their time.

    “Competition might actually help users find the product features they want, like greater privacy protection, portability, and more significant content moderation,” he said. “Social media platforms have features that users dislike but they still feel like they must accept them to just be in the online space where everyone else is.”

    All it took, he said, was Musk taking stepsto sabotage his own platform.”

    For now, Bluesky is invite-only as it ramps up support for the implementation of its network. Existing users get one invite code to share with someone for every two weeks they’re on the app. Not surprisingly, the sense of exclusivity has only added to the excitement of joining Bluesky.

    As Eve 6 wrote on Twitter: “Bluesky invite codes are the new blue check.”

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  • This could be Apple’s biggest product launch since the Apple Watch | CNN Business

    This could be Apple’s biggest product launch since the Apple Watch | CNN Business

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    CNN
     — 

    Apple may be just one day away from unveiling its most ambitious new hardware product in years.

    At its Worldwide Developers Conference, which kicks off Monday at its Cupertino, California, campus, Apple

    (AAPL)
    is widely expected to introduce a “mixed reality” headset that offers both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world.

    The highly anticipated release of an AR/VR headset would be Apple’s biggest hardware product launch since the debut of the Apple Watch in 2015. It could signal a new era for the company and potentially revolutionize how millions interact with computers and the world around them.

    But the headset is just one of many announcements expected at the developers event. Apple will also show off a long list of software updates that will shape how people use its most popular devices, including the iPhone and Apple Watch.

    Apple may also tease how it plans to incorporate AI into more of its products and services, and keep pace with a renewed arms race over the technology in Silicon Valley.

    The event will be livestreamed on Apple’s website and YouTube. It is set to start at 10:00 a.m. PT/1:00 p.m. ET.

    Here’s a closer look at what to expect:

    For years, Apple CEO Tim Cook has expressed interest in augmented reality. Now Apple finally appears ready to show off what it’s been working on.

    According to Bloomberg, the new headset, which could be called Reality One or Reality Pro, will have an iOS-like interface, display immersive video and include cameras and sensors to allow users to control it via their hands, eye movements and with Siri. The device is also rumored to have an outward-facing display that will show eye movements and facial expressions, allowing onlookers to interact with the person wearing the headset without feeling as though they’re talking to a robot.

    Apple’s new headset is expected to pack apps for gaming, fitness and meditation, and offer access to iOS apps such as Messages, FaceTime and Safari, according to Bloomberg. With the FaceTime option, for example, the headset will “render a user’s face and full body in virtual reality,” to create the feeling that both are “in the same room.”

    The decision to unveil it at WWDC suggests Apple wants to encourage developers to build apps and experiences for the product in order to make it more compelling for customers and worth the hefty price tag.

    The company is reportedly considering a $3,000 price tag for the device, far more than most of its products and testing potential buyers at a time of lingering uncertainty in the global economy. Other tech companies have struggled to find mainstream traction for headsets. And in the years that Apple has been rumored to be working on the product, the tech community has shifted its focus from VR to another buzzy technology: artificial intelligence.

    But if any company can prove skeptics wrong, it’s Apple. The company’s entry into the market combined with its vast customer base has the potential to breathe new life into the world of headsets.

    A mixed reality headset may not be the only piece of hardware to get stage time this year.

    Apple is expected to launch a new 15-inch MacBook Air packing the company’s M2 processor. The current size of the MacBook Air is 13 inches.

    Previously, users who wanted a larger-sized Apple laptop would need to buy a higher-end MacBook Pro.

    Considering WWDC is traditionally a software event, Apple executives will likely spend much of the time highlighting the changes and upgrades coming to its next-generation mobile operating systems, iOS 17 and iPadOS 17.

    While last year’s updates included a major design overhaul of the lock screen and iMessage, only minor changes are expected this year.

    With iOS 17, Apple is expected to double down on its efforts around health tracking by adding the ability to monitor everything from a user’s mood to keeping tabs on how their vision may change over time. According to the Wall Street Journal, Apple will also launch a journaling app not only as a way for users to log their thoughts but also activity levels, which can then be analyzed to reveal how much time someone spends at home or out of the house.

    The new iOS 17 is also said to get a lock screen refresh: When positioned in horizontal mode, the display will highlight widgets tied to the calendar, weather and other apps, serving as a digital hub. (iPadOS 17 is also expected to get some of the same lock screen capabilities and health features.)

    Other anticipated upgrades include an Apple Watch OS update that would focus on quick glances at widgets, and more details about its next-generation CarPlay platform, which it initially teased last year.

    While much of the focus of the event may be on VR, Apple may also attempt to show how it’s keeping pace with Silicon Valley’s current obsession: artificial intelligence.

    Apple reportedly plans to preview an AI-powered digital coaching service, which will encourage people to exercise and improve their sleeping and eating habits. It’s unclear how it could work, but the effort comes at a time when Big Tech companies are racing to introduce AI-powered technologies in the wake of ChatGPT’s viral success.

    Apple may also demo and expand on some of its recently teased accessibility tools for the iPhone and iPad, including a feature that promises to replicate a user’s voice for phone calls after only 15 minutes of training.

    Most of the other Big Tech companies have recently outlined their AI strategies. This event may be Apple’s chance to do the same.

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  • Twitter’s future is in doubt as Threads tops 100 million users | CNN Business

    Twitter’s future is in doubt as Threads tops 100 million users | CNN Business

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    Washington
    CNN
     — 

    Twitter has weathered months, if not years, of mismanagement as well as mass layoffs, frequent service disruptions and an exodus of top advertisers, but the launch of a rival app from Meta could prove to be the final straw.

    Threads surpassed 100 million users this weekend, less than a week after it launched, Meta CEO Mark Zuckerberg announced Monday, marking a staggering feat for any social network and one that puts it on pace to rapidly pass Twitter’s audience size.

    Meanwhile, multiple internet traffic analysts reported noticeable declines in Twitter usage in just the past few days. The results underscore the risk Meta poses to Twitter’s business and raise questions about how, or if, Twitter can stem its losses.

    Twitter traffic had already been trending downward for months, according to data from the internet infrastructure company Cloudflare and the web analytics firm Similarweb. But the pace of decline appears to have accelerated in recent days, both companies said, likely reflecting strong interest in Threads and a mass migration from the platform owned by Elon Musk to the one run by Zuckerberg.

    Twitter didn’t immediately respond to a request for comment.

    On Sunday, Cloudflare CEO Matthew Prince shared a chart showing Twitter’s popularity relative to other websites it tracks. “Twitter traffic tanking,” Prince said as he posted the chart.

    The chart showed that in January, Twitter was ranked 32nd on the list; the next month, it had fallen to 34th. For much of the spring, Twitter fluctuated between 35th place and 37th. But the beginning of July showed a rapid falloff in popularity, as Twitter plunged to 40th place. (Cloudflare defines popularity as the “size of a population of users that look up a domain per unit of time.”)

    Similarweb told CNN Monday it has witnessed comparable trends in Twitter traffic.

    “In the first two full days that Threads was generally available, [last] Thursday and Friday, web traffic to twitter.com was down 5% compared with the same days of the previous week and down 11% compared with July 6 and 7, 2022,” said David Carr, a senior insights manager at Similarweb. “We’ve been reporting for a while that Twitter is down compared with last year – June traffic was down 4% – but Threads seems to be taking a bigger bite out of it.”

    Bolstering the traffic reports were the anecdotal experiences of some Threads users. Alex Stamos, director of the Stanford Internet Observatory, said Saturday he ran an “unscientific test” of how the same post he shared on Twitter, Threads and Mastodon, another rival, performed with his audience over a 23-hour period.

    The identical content Stamos created on each platform saw significantly more engagement on Threads than on Twitter as measured by likes and replies — despite having a fraction of his usual reach on the newer platform, he said.

    Stamos, who has more than 100,000 followers on Twitter but only a tenth of that number on Threads, added that strong Threads engagement with his posts describing the “research” also supported the original findings. The quality of the replies to his posts were also much higher on non-Twitter platforms, he observed.

    “From my perspective, Twitter is done as a platform for serious tech conversations,” Stamos said, who previously was the chief security officer at Facebook.

    Fueling Threads’ rapid growth has been Meta’s use of Instagram as a springboard to sign up new users, along with what many Threads users have identified as a dissatisfaction with Twitter.

    Threads started out with a number of celebrity accounts prepopulating its platform but has since gained additional high-profile users including Kim Kardashian and Jeff Bezos. An account that had been banned from Twitter that tracks the movements of Musk’s private jet has also joined the new platform.

    More than 100 US lawmakers have signed up as well, Axios reported last week, though few world leaders appear to be on Threads at the moment.

    Zuckerberg and Instagram head Adam Mosseri have emphasized that Threads is about more than replacing Twitter and that the app seeks to tap audiences outside of Twitter’s traditional user base. That means Threads will not actively elevate news or political content, Mosseri said, describing those topics as “not at all worth the scrutiny, negativity (let’s be honest), or integrity risks that come along with them.”

    Over the weekend, Mosseri’s stance on news and politics triggered a debate over Threads’ approach to those topics. Some users praised it as a way to make the platform more accessible to average users, who may never have embraced Twitter before. Others argued that many of the topics Mosseri characterized as non-political, including music, fashion and entertainment, are their own source of news and can be inherently political.

    Even as Meta’s executives look to put some daylight between Threads and Twitter, the rapid rise of Threads only appears to have deepened Musk’s longtime feud with Zuckerberg. The app’s launch prompted threats of litigation as Twitter has accused Meta of trade secret theft, not to mention talk of a physical cage fight between Musk and Zuckerberg.

    On Sunday, Musk, who is known for erratic behavior and incendiary remarks, made it even more personal as he lobbed a sexual insult at Zuckerberg and proposed comparing the size of their respective genitalia.

    Zuckerberg has not directly responded to the insult. But after a Threads user pointed out that the new app was not featured in Twitter’s trending topics tab, Zuckerberg replied “Concerning” with a crying-laughter emoji. And he used the same emoji to reply to a post by the fast-food brand Wendy’s, which had suggested Zuckerberg should “go to space just to really make him mad lol.”

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  • FTC says Meta should be barred from monetizing data from younger users | CNN Business

    FTC says Meta should be barred from monetizing data from younger users | CNN Business

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    CNN
     — 

    The Federal Trade Commission on Wednesday accused Facebook-parent Meta of violating its landmark $5 billion privacy settlement and called for toughening up restrictions on the company, after alleging Meta has improperly shared user data with third parties and failed to protect children as it has promised.

    The proposal to update the binding 2020 settlement with Meta marks a new front in the FTC’s long-running battle with the social media company, which has included multiple lawsuits aimed at breaking up the tech giant or preventing it from growing larger.

    The FTC said Meta should be banned from monetizing data it collects from younger users. It added that the company should be barred from releasing any new features or products until a third-party auditor determines the company’s privacy policies do enough to protect users. It also called for new limitations on how Meta can use facial recognition technology.

    If approved, the sweeping proposal could threaten the future of Meta’s business, including its expansion into virtual reality.

    In a statement on Wednesday, Meta spokesman Andy Stone called the FTC proposal “a political stunt” and vowed to contest the effort.

    “Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory,” Stone said. “FTC Chair Lina Khan’s insistence on using any measure – however baseless – to antagonize American business has reached a new low.”

    The FTC proposal comes as policymakers at all levels of government have increasingly blamed social media for furthering a mental health crisis among young people, prompting calls for strict regulations on how tech platforms can use the personal information of users under 18, target them with automated recommendations or seek to boost their engagement in other ways. Many of those proposals have taken the form of broad-based legislation, but the FTC proposal would represent a novel approach by amending a past consent order in connection with a single company that influences more than a billion users.

    As part of the FTC’s call for changes, the agency said Meta had misled the public about its compliance with the historic settlement that resolved allegations surrounding the Cambridge Analytica data fiasco, as well as prior agreements with the agency.

    Meta had allowed personal information to leak to apps that users of the platform were no longer using, the FTC alleged. That data sharing, the FTC claimed, contrasted with Meta’s public statements about how it cuts off a third-party app’s access to Facebook users’ information if the users stop using the third-party app for 90 days.

    The FTC also alleged that multiple coding errors in a messaging app marketed to children, Messenger Kids, allowed users to connect to “unapproved contacts” in group video calls, and that the flaws went unresolved for weeks.

    Those flaws meant parents could not control who their kids were speaking to on the app, in contrast to claims by Meta that they could, according to the FTC.

    In addition to being a breach of Meta’s prior settlements, the alleged violations surrounding Messenger Kids also ran afoul of a federal children’s privacy law known as COPPA, the FTC said, because parents were not provided an opportunity to give Meta their consent before the company collected information on their kids.

    Meta will have 30 days to respond to the proposed findings and changes, the FTC said, before the commission votes to finalize them. The FTC can unilaterally approve updates to the settlement, but Meta would have the opportunity to appeal that move in federal court, according to an agency fact sheet.

    The FTC voted 3-0 to issue the proposed findings and changes, but one commissioner, Alvaro Bedoya, questioned whether the agency has the authority to impose such sweeping restrictions on Meta in light of the alleged violations.

    In a statement, Bedoya said he was skeptical whether there was enough of a connection between Meta’s alleged harms and the proposed remedies to legally sustain a complete ban on monetizing the data of young users.

    “I look forward to hearing additional information and arguments and will consider these issues with an open mind,” Bedoya said.

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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

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    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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  • Threads now has ‘tens of millions’ of daily users. But its honeymoon phase may be over | CNN Business

    Threads now has ‘tens of millions’ of daily users. But its honeymoon phase may be over | CNN Business

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    New York
    CNN
     — 

    Two weeks after Meta launched its Twitter competitor Threads and received an unprecedented amount of user signups, the frenzy around the app appears to have come back to Earth.

    After surpassing 100 million user sign-ups in less than a week, user engagement on Threads has slowed. Threads daily active users fell from 49 million on July 7, two days after its launch, to 23.6 million users last Friday, according to a report published this week by web traffic analysis firm Similarweb. The app’s average usage time also fell from 21 minutes to 6 minutes over the same timeframe.

    The slowdown hints at the challenges ahead for Meta as it looks to not only draw users away from Twitter but build a service that reaches a far larger audience. Threads is already facing some of the common issues that often plague social media platforms, including user retention, spam and some early regulatory scrutiny around its approach to content moderation. It’s also not clear yet how much Meta’s investments in building Threads will actually amount to financial returns for the company.

    “I’m very optimistic about how the Threads community is coming together,” Meta CEO Mark Zuckerberg said in a post on the platform Monday. “Early growth was off the charts, but more importantly 10s of millions of people now come back daily … The focus for the rest of the year is improving the basics and retention.”

    Meta executives acknowledged in the early days after Threads’ launch that getting users to sign up for a buzzy new app is much easier than convincing them to continue engaging there long-term. That’s likely even more true for Threads, which launched as a relatively bare-bones app in an effort to capitalize on a moment of weakness at Twitter and also tapped into Instagram’s network to ease the sign-in process.

    Threads on Tuesday rolled out its first batch of updates to the iOS version of the app, including a translation button, a tab on users’ activity feed dedicated to showing who’s followed them and the option to subscribe and receive notifications from accounts a user doesn’t follow.

    Instagram head Adam Mosseri, who is overseeing the Threads launch, has also hinted at plans to add features such as a desktop version of the app, a feed of only accounts a user follows and an edit button. “We’re clearly way out over our skis on this,” Mosseri said in a Threads post the week of the app’s launch.

    In the meantime, Threads is grappling with a common social media issue — spam. Users have complained of replies to posts filling up with spammy links and offering “giveaways” in exchange for new followers. And on Monday, Mosseri said in a Threads post that the platform was “going to have to get tighter on things like rate limits” because “spam attacks have picked up.”

    This “is going to mean more unintentionally limiting active people (false positives),” Mosseri warned. “If you get caught up [in] those protections let us know.”

    Meta declined to clarify whether Mosseri’s post refers to limits on users’ ability to post or read content, or to provide any additional details. But the comment did prompt some snark from Twitter owner Elon Musk, after backlash to Twitter’s own rate limits — restrictions on how many tweets users can read — helped propel Threads’ early growth.

    Meta shares have jumped more than 6% since the Threads launch, but some analysts who follow the company are skeptical that Threads will quickly contribute to the company’s bottom line, if at all.

    Threads could be a way for Meta to eke additional engagement time out of its massive existing user base. The app could also ultimately supplement Meta’s core advertising business, which could use a boost after facing challenges from a broad decline in the online ad market and changes to Apple’s app privacy practices.

    Meta executives have said they will likely incorporate advertising into the platform, once its user base has reached critical mass. But even if Threads continues to add users, “advertisers could be hesitant and possibly wait before allocating ad dollars to Threads because of their uncertainty about long-run user retention and engagement,” Morningstar senior equity analyst Ali Mogharabi said in a recent investor note.

    Like Twitter, Threads could also struggle to attract advertisers because the nature of a real-time news and public conversations app means the content is sometimes negative or controversial. Even before Musk took over Twitter and alienated advertisers, the platform represented a tiny piece of the ad sales market compared to Meta’s properties.

    Threads, however, likely has a leg up on Twitter because Meta is known as a company that provides clear value for advertisers, said Scott Kessler, global tech sector lead at research firm Third Bridge. If anything, he said, the risk may be that some advertisers may think twice about spending on yet another Meta platform versus diversifying their ad strategy.

    For now, analysts will be awaiting Meta executives’ commentary about Threads during its quarterly earnings call next week, including to see if they offer any hints about whether ads may be rolled out on the app ahead of the crucial holiday shopping season.

    “They launched this in July,” Kessler said. “That should give them enough time to build out sufficient tools for holiday shopping season advertising.”

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