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Tag: mobile technology

  • Chinese apps remove ChatGPT as global AI race heats up | CNN Business

    Chinese apps remove ChatGPT as global AI race heats up | CNN Business

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    Hong Kong
    CNN
     — 

    Several popular Chinese apps have removed access to ChatGPT, the artificial intelligence chatbot that has taken the world by storm even as major Chinese tech companies race to develop their own equivalent.

    ChatGPT, developed by the American research lab OpenAI, is not officially available in China, but several apps on the Chinese social media platform WeChat had previously allowed access to the chatbot without the use of a VPN or foreign mobile number.

    Those doors now appear shut. Earlier this week, the apps ChatGPTRobot and AIGC Chat Robot said their programs had been suspended due to “violation of relevant laws and regulations,” without specifying which laws.

    Two other apps, ChatgptAiAi and Chat AI Conversation, said their ChatGPT services went offline due to “relevant business changes” and policy changes.

    The app Shenlan BL was even more vague, citing “various reasons” for the shutdown.

    Though it’s unclear what prompted these closures, there are other signs China may be souring on ChatGPT. On Monday, state-run media released a video claiming the chatbot could be used by US authorities to “spread disinformation and manipulate public opinion,” pointing to its responses regarding Xinjiang as supposed evidence of bias.

    When prompted on Xinjiang, ChatGPT describes the Chinese government’s alleged human rights abuses against ethnic minorities in the far western region, including mass detentions and forced labor. Beijing has repeatedly denied these accusations, claiming detention camps are “vocational education and training centers” that have since been dismantled.

    Other recent state media articles have voiced criticism and skepticism toward ChatGPT, with China Daily declaring that its rise highlights the need for “strict regulations.”

    Several Chinese tech companies saw their shares drop on Thursday after news spread that WeChat apps had removed ChatGPT services. Beijing Haitian Ruisheng Science Technology, which develops and produces AI data products, closed 8.4% lower.

    Meanwhile, Hanwang Technology and Beijing Deep Glint Technology, both developers of AI products and services, closed 10% and 5.5% lower respectively.

    ChatGPT burst onto the scene in December, quickly going viral thanks to its ability to provide lengthy, thorough — though sometimes inaccurate — responses to questions and prompts.

    Since its release, the tool has been used to write articles for at least one news publication, drafted research paper abstracts that fooled some scientists and even passed graduate-level law and business exams (albeit with low marks).

    It has also prompted alarm about its unknown long-term consequences, such as its impact on education and students’ ability to cheat on assignments.

    Despite these concerns, the success of ChatGPT has spurred a global AI race.

    Microsoft plans to invest billions in the San Francisco-based OpenAI and unveiled its AI-powered Bing chatbot last week, though it made headlines for veering into darker, sometimes disturbing conversation. Earlier this month, Google announced it will soon roll out Bard, its own answer to ChatGPT.

    China’s government has previously sought to restrict major Western websites and apps, such as Google, Facebook and Amazon, leading to accusations from some of digital protectionism.

    In the absence of foreign competition within the domestic market, Chinese tech companies have since grown into major international players — many of which are now revving their gears with an eye toward AI.

    In early February, Chinese behemoth Alibaba said it was testing its own ChatGPT-style tool, though it didn’t provide details on when it would launch.

    A team at China’s Fudan University developed their own version called MOSS, which instantly went viral, causing the platform to crash this week due to too many users.

    And on Wednesday, tech giant Baidu said its AI chatbot ERNIE Bot, slated for a March release, will be used across various platforms such as its search engine, voice assistant for smart devices and even its autonomous driving technology.

    The rollout will “create a new entry point for the next-generation internet,” Baidu CEO Robin Li said in an earnings call, adding that the company expects “more and more business owners and entrepreneurs to build their own models and applications on our AI Cloud.”

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  • Twitter to charge for SMS two-factor authentication | CNN Business

    Twitter to charge for SMS two-factor authentication | CNN Business

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    New York
    CNN
     — 

    Twitter Blue subscribers will be the platform’s only users able to use text messages as a two-factor authentication method, Twitter announced Friday.

    The change will take place on March 20. Twitter users will have two other ways to authenticate their Twitter log-ins at no cost: an authentication mobile app and a security key.

    Two factor authentication, or 2FA, requires users to type in their password and then enter a code or security key to access their accounts. It is one of the primary methods for users to keep their Twitter account secure.

    “While historically a popular form of 2FA, unfortunately we have seen phone-number based 2FA be used – and abused – by bad actors,” the company said in a blog post Friday. “So starting today, we will no longer allow accounts to enroll in the text message/SMS method of 2FA unless they are Twitter Blue subscribers.”

    Twitter Blue, which costs $11 a month for iOS and Android subscribers, adds a blue checkmark to the account of anyone willing to pay for one.

    As of 2021, only 2.6% of Twitter users had a 2FA method enabled – and of those, 74.4% used SMS authentication, a Twitter account security report said.

    Twitter said non-subscribers will have 30 days to disable the text method and enroll in another way to sign in using 2FA. Disabling text message 2FA won’t automatically disassociate the user’s phone number from their account, Twitter said.

    Musk responded “Yup” to a tweet claiming a telecommunications company used bot accounts “to Pump 2FA SMS” and that Twitter was losing $60 million a year “on scam SMS.”

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  • The online shopping upstart that’s quietly become the number one app in the US | CNN Business

    The online shopping upstart that’s quietly become the number one app in the US | CNN Business

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    Hong Kong
    CNN
     — 

    A new online shopping platform linked to one of China’s top retailers has quickly become the most downloaded app in the United States, surpassing Amazon and Walmart. Now it’s looking to capitalize from an appearance on America’s biggest stage.

    Temu, a Boston-based online retailer that shares the same owner as Chinese social commerce giant Pinduoduo, made its Super Bowl debut on Sunday.

    Temu, which runs an online superstore for virtually everything — from home goods to apparel to electronics — unveiled a commercial during the game that encouraged consumers to “shop like a billionaire.”

    The pitch? You don’t have to be one.

    “Through the largest stage possible, we want to share with our consumers that they can shop with a sense of freedom because of the price we offer,” a Temu spokesperson told CNN in a statement.

    The 30-second spot shows the company’s proposition to users: Feel like you’re splurging by buying lots of stuff cheaply. A woman’s swimsuit on Temu costs just $6.50, while a pair of wireless earphones is priced at $8.50. An eyebrow trimmer costs 90 cents.

    These surprisingly low prices — by Western standards, at least — have drawn comparisons to Shein, the Chinese fast fashion upstart that also offers a wide selection of inexpensive clothing and home goods, and has made significant inroads into markets including the United States.

    Shein is considered one of Temu’s competitors, along with US-based discount retailer Wish and Alibaba’s AliExpress, according to Coresight Research.

    Temu, pronounced “tee-moo,” was launched last year by PDD, its US-listed parent company formerly known as Pinduoduo. The company officially changed its name just this month.

    PDD’s subsidiary Pinduoduo is one of China’s most popular e-commerce platforms with approximately 900 million users. It made its name with a group-buying business model, allowing people to save money by enlisting friends to buy the same item in bulk.

    On its website, Temu says it uses its parent company’s “vast and deep network … built over the years to offer a wide range of affordable quality products.”

    Since its rollout in September, the application has been downloaded 24 million times, racking up more than 11 million monthly active users, according to Sensor Tower.

    In the fourth quarter of last year, US app installations for Temu exceeded those for Amazon

    (AMZN)
    , Walmart

    (WMT)
    and Target

    (TGT)
    , according to Abe Yousef, a senior insights analyst at the analytics firm Sensor Tower.

    “Temu soared to the top of both US app store charts in November, where the app still holds the top position now,” he told CNN, referring to iOS and Android mobile app stores.

    Yousef said the company had been particularly successful at acquiring new users by offering extremely low prices and in-app flash deals, such as 89% off certain items.

    The firm is already eyeing new territory. This month, Temu said on Twitter that it plans to expand to Canada.

    Michael Felice, an associate partner at management consulting firm Kearney, said Temu stood out simply by selling products without high markups.

    “Temu might be exposing a white space in the market wherein brands have been producing at extreme low cost, and along the value chain there’s been so much bloated cost passed on for margin,” he told CNN.

    “That said, American consumers might not even be ready to accept some of these price points … There’s always the question, ‘is it too cheap to be good?’”

    Deborah Weinswig, CEO of Coresight Research, has cautioned that it may be too early to tell whether Temu will be able to maintain those extremely low prices, free shipping and other perks.

    “Temu aims to continue to experiment in marketing and offerings, which is possible thanks to its resource-rich parent company,” she wrote in a report.

    Its launch, she said, “comes at an opportune moment, as consumers search for value amid still-elevated inflation and a degree of economic uncertainty.”

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  • Several US mobile carriers suffer technical difficulties | CNN Business

    Several US mobile carriers suffer technical difficulties | CNN Business

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    New York
    CNN
     — 

    Several US mobile carriers experienced technical difficulties Monday night.

    DownDetector, a website that tracks service problems and outages, indicated that AT&T, T-Mobile, Verizon and Boost Mobile all experienced a spike in reports Monday night.

    It was unclear if the problems were connected.

    Neville Ray, president of technology for T-Mobile, tweeted late Monday that the company was “addressing a 3rd party fiber interruption issue that has intermittently impacted some voice, messaging and data services in several areas.”

    Ray later tweeted that T-Mobile had “seen significant improvement and [is] operating at near normal levels.”

    It was unclear which geographical areas were affected by the issues.

    AT&T, Verizon and Boost Mobile could not be immediately reached for comment.

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  • Twitter is stumbling. Some ex-employees are launching rivals | CNN Business

    Twitter is stumbling. Some ex-employees are launching rivals | CNN Business

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    New York
    CNN
     — 

    After Sarah Oh lost her job as a human rights advisor at Twitter late last year in the first round of layoffs following Elon Musk’s chaotic acquisition of the company, she decided to join a friend in building a rival service.

    With Gabor Cselle, who previously worked at Twitter and Google, she launched T2, currently available in beta. Like Twitter, it offers a social feed of posts with 280-character limits. But the key selling point, according to Oh, is its focus on safety.

    “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 the months since Musk completed his takeover, a small but growing number of services have launched or gained traction by appealing to users who are uncomfortable with the billionaire’s decisions to slash Twitter’s staff, rethink content moderation policies and reinstate numerous incendiary accounts that were previously banned, among other moves.

    The list of newer entrants in the markets includes apps like T2 and Spill created by former Twitter employees, a startup backed by one of Musk’s Twitter investors, and a service from former Twitter CEO Jack Dorsey. While some apps like T2 strongly resemble Twitter, others take a different approach.

    Last month, for example, the founders of Instagram announced Artifact, “a personalized news feed” powered by artificial intelligence, a description that quickly earned it comparisons to Twitter. In CNN’s recent test of the app, however, it resembled news reader applications like Apple News or the defunct Google Reader. Artifact displayed popular articles from large media organizations and smaller bloggers in a main feed, tailored to users based on their activity and selected interests.

    But all of these apps appear to be vying for the opportunity to scratch the itch users may feel for a news feed that isn’t Twitter — at least for as long as that itch lasts.

    “Something that we’ve heard a lot from people who are moving over from Twitter, either partially or fully, is that it is just for them a nicer experience overall,” said Jae Kaplan, co-founder of Anti Software Software club, the group that develops Cohost, a text-based social media feed similar to Twitter. The service launched publicly in June of last year, after Musk offered to buy Twitter. In November, after Musk completed the takeover, the platform saw a surge in activity, adding 80,000 users within 48 hours.

    “People have been referring to us when they do as a Twitter alternative, which I think is an important distinction from a Twitter replacement,” Kaplan said.

    Replacing Twitter, with its robust network of journalists, politicians and entertainers and sizable audience of users obsessed with real-time news, may be a challenge. While apps like Cohost have seen renewed momentum, their audiences remain a small fraction of the size of Twitter, which had more than 200 million daily active users as of last year.

    Cohost currently has 130,000 users, only 20,000 of which are what Cohost considers active users, according to Kaplan. T2 has a waitlist in the five digits, according to Oh, who says that number continues to grow. Mastodon, the most high-profile recent Twitter rival, hit 2.5 million users in November, but it has since declined to 1.4 million users, in a possible cautionary tale to other services.

    “The incumbent has the advantage of scale, and even in a situation where you have kind of a polarizing figure like Musk take over Twitter, people are realizing that the newer platforms are not nearly as effective from a one-to-many, getting your message out there,” said Tom Forte, a senior research analyst at D.A. Davidson. “Despite the fact that there may be disgruntled consumers, they’re still tweeting.”

    In November, shortly after taking over the company, Musk repeatedly claimed Twitter continued to hit “all-time high” user numbers despite the initial wave of users calling to abandon the social network. (As part of the acquisition, Musk took Twitter private and the company no longer reports user numbers in quarterly securities filings.)

    “If people leave, where do they go? By all accounts, there is no platform right now that is able to take on the function of Twitter, and nothing is really prepared for it,” said Karen North, a clinical professor at the USC Annenberg School for Communication and Journalism. “No platform has the global user base, representing people from all walks of life the way that Twitter does.”

    To complicate matters for rivals, some of the initial fury and media attention about Twitter under Musk has arguably faded in the months since the deal closed. Though controversy remains, many Twitter users may feel less urgency to jump ship today than in late October.

    Still, Mastodon founder Eugen Rochko is not worried.

    “A platform cannot continue to go viral perpetually,” Rochko recently told CNN about Mastodon’s sagging user numbers. “The cycle of media news and attention on social media just simply goes away after awhile, but behind it leaves organic growth which is what we had before November and which we still have now.”

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  • The week that tech became exciting again | CNN Business

    The week that tech became exciting again | CNN Business

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    CNN Business
     — 

    Let’s be honest: For much of the past decade, tech events have been pretty boring.

    Executives in business casual wear trot up on stage and pretend a few tweaks to the camera and processor make this year’s phone profoundly different than last year’s phone or adding a touchscreen onto yet another product is bleeding edge.

    But that changed radically this week. Some of the world’s biggest companies teased significant upgrades to their services, some of which are central to our everyday lives and how we experience the internet. In each case, the changes were powered by new AI technology that allows for more conversational and complex responses.

    On Tuesday, Microsoft announced a revamped Bing search engine using the capabilities of ChatGPT, the viral AI tool created by OpenAI, a company in which Microsoft recently invested billions of dollars. Bing will not only provide a list of search results, but will also answer questions, chat with users and generate content in response to user queries. And there are already rumors of another event next month for Microsoft to demo similar features in its Office products, including Word, PowerPoint and Outlook.

    On Wednesday, Google held an event to detail how it plans to use similar AI technology to allow its search engine to offer more complex and conversational responses to queries. Chinese tech giants Alibaba and Baidu also said this week that they would be launching their own ChatGPT-style services. And other companies are sure to follow suit soon.

    After years of incremental updates to smartphones, the promise of 5G that still hasn’t taken off and social networks copycatting each others’ features until they all the look the same, the flurry of AI-related announcements this week feels like a breath of fresh air.

    Yes, there are very real concerns about the potential of this technology to spread biases and inaccurate information, as happened in a Google demo this week. And it’s certainly likely numerous companies will introduce AI chatbots that simply do not need one. But these features are fun, have the potential to give us back hours in the day and, perhaps most importantly, some are here right now to try out.

    Need to write a real estate listing or an annual review for an employee? Plug a few keywords into a ChatGPT query bar and your first draft is done in three seconds. Want to come up with a quick meal plan and grocery list based on your dietary sensitivities? Bing, apparently, has you covered.

    If the introduction of smartphones defined the 2000s, much of the 2010s in Silicon Valley was defined by the ambitious technologies that didn’t fully arrive: self-driving cars tested on roads but not quite ready for everyday use; virtual reality products that got better and cheaper but still didn’t find mass adoption; and the promise of 5G to power advanced experiences that didn’t quite come to pass, at least not yet.

    But technological change, like Ernest Hemingway’s idea of bankruptcy, has a way of coming gradually, then suddenly. The iPhone, for example, was in development for years before Steve Jobs wowed people on stage with it in 2007. Likewise, OpenAi, the company behind ChatGPT, was founded seven years ago and launched an earlier version of its AI system called GPT3 back in 2020.

    “ChatGPT exploded onto the market and people’s awareness,” said Bern Elliot, an analyst at Gartner, “but this has been a long time in the making.”

    More than that, artificial intelligence systems have for years underpinned many of the functions people may now take for granted, from content recommendations on social media platforms and auto-complete tools in e-mail to voice assistants and facial recognition tools. But when ChatGPT was released publicly in November, it put the power of AI systems on full display for millions in an entertaining and immediately graspable way. ChatGPT simultaneously made it much easier to see how far the technology has progressed in recent years and to imagine the vast potential for the impact it could have across industries.

    “When new generations of technologies come along, they’re often not particularly visible because they haven’t matured enough to the point where you can do something with them,” Elliott said. “When they are more mature, you start to see them over time — whether it’s in an industrial setting or behind the scenes — but when it’s directly accessible to people, like with ChatGPT, that’s when there is more public interest, fast.”

    Now that ChatGPT has gained traction and prompted larger companies to deploy similar features, there are concerns not just about its accuracy but its impact on real people.

    Some people worry it could disrupt industries, potentially putting artists, tutors, coders, writers and journalists out of work. Others are more optimistic, postulating it will allow employees to tackle to-do lists with greater efficiency or focus on higher-level tasks. Either way, it will likely force industries to evolve and change, but that’s not? necessarily a bad thing.

    “New technologies always come with new risks and we as a society will have to address them, such as implementing acceptable use policies and educating the general public about how to use them properly. Guidelines will be needed,” Elliott said.

    Many experts I’ve spoken with in the past few weeks have likened the AI shift to the early days of the calculator and how educators and scientists once feared how it could inhibit our basic knowledge of math. The same fear existed with spell check and grammar tools.

    While AI tools are still in their infancy, this week may represent the start of a new way of doing tasks, similar to how the iPhone changed computing and communication in June 2007. But this time, it could be in the form of a Bing browser.

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  • Is the iPhone’s ‘Made in India’ era about to begin? | CNN Business

    Is the iPhone’s ‘Made in India’ era about to begin? | CNN Business

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    New Delhi
    CNN
     — 

    As Apple looks beyond China to secure crucial supply chains strained by Covid lockdowns and threatened by rising geopolitical tension, India has emerged as an attractive potential alternative to the world’s second largest economy.

    And Beijing’s big regional rival isn’t missing a beat in talking up the opportunity. One of India’s top ministers said last month the California-based company wants to ramp up its production in the South Asian country to a quarter of its overall total.

    Minister of Commerce and Industry Piyush Goyal said Apple was already making between 5% and 7% of its products in India. “If I am not mistaken, they are targeting to go up to 25% of their manufacturing,” he said at an event in January.

    His comments come at a time when Foxconn

    (HNHPF)
    , a top Apple supplier, is looking to expand its operations in India after suffering severe supply disruptions in China.

    For years, Apple had relied on a vast manufacturing network in China to mass produce iPhones, iPads and other popular products. But its dependence on the country was tested last year by Beijing’s strict zero-Covid strategy, which was rapidly dismantled last December.

    Since the middle of last year, Apple has redoubled its efforts to invest in India. But can Asia’s third largest economy deliver?

    “Theoretically, it can be done, but it won’t be happening overnight,” said Tarun Pathak, a research director at market research firm Counterpoint.

    “[Apple’s] dependency on China is a result of almost two and a half decades of what China put in to develop their entire electronics manufacturing ecosystem,” Pathak said, adding that the company makes nearly 95% of its phones in China.

    Apple did not respond to requests for comment from CNN.

    But the world’s most valuable company posted shockingly weak earnings this month, partly because of its recent problems in China. The troubles started in October, when workers began fleeing the world’s biggest iPhone factory, run by Foxconn, over a Covid outbreak.

    Short on staff, Foxconn offered bonuses to workers to return. But violent protests broke out in November, when newly-hired staff said management had reneged on their promises. Workers clashed with security officers, before the company eventually offered them cash to quit and leave the site.

    While operations at the sprawling campus in Zhengzhou, central China, have now returned to normal, the supply problems hit the supply of iPhone 14 Pro and iPhone 14 Pro Max models during the key holiday shopping season.

    Foxconn did not respond to a request for comment.

    On top of that, US-China relations are looking increasingly tense. Last year, the Biden administration banned Chinese companies from buying advanced chips and chipmaking equipment without a license.

    “I think they will continue to depend on China for a significant proportion of their production,” said Willy Shih, a professor at Harvard Business School, referring to Apple.

    “But what they are trying to do, and I think it makes sense, is to add diversity to their supply base so that if something goes wrong in China, they will have some alternatives.”

    Shih referred to this strategy as “China +1 or China+ more than one.”

    “India is a hugely exciting market for us and a major focus,” Apple CEO Tim Cook said on a recent earnings call.

    “Looking at the business in India, we set a quarterly revenue record and grew very strong double digits year over year and so we feel very good about how we performed,” he said.

    India is set to overtake China this year to become the world’s most populous country. The country’s massive and cheap labor force, which includes workers with key technical skills, is a big draw for manufacturers.

    Asia’s third largest economy also offers a growing domestic market. In 2023, as global recession fears persist, India is expected to remain the fastest growing major economy in the world.

    If it can sustain that momentum, India could become only the third country with GDP worth $10 trillion by 2035, according to the Centre for Economics and Business Research.

    Analysts say India’s growing consumer base might give it an edge over Vietnam, which has also been attracting greater investment in electronics manufacturing.

    The Indian government has rolled out policies to attract investments in mobile phone manufacturing. According to Counterpoint’s Pathak, India accounts for 16% of the global smartphone production, while China constitutes 70%.

    There are some success stories: Samsung, the world’s top selling smartphone brand, is one step ahead of Apple and already makes a lot of its phones in India.

    An employee tests the camera quality of mobile phones on an assembly line at a unit of Foxconn Technology Co., in Sri City, Andhra pradesh, India.

    The South Korean giant has been diversifying away from China because of rising labor costs and also stiff local competition from homegrown players such as Huawei, Oppo, Vivo and Xiaomi.

    It now makes the bulk of its phones in Vietnam and India, with the latter accounting for 20% of Samsung’s global production.

    In 2018, Samsung opened what it called “the world’s largest mobile factory” in Noida, a city near New Delhi, and analysts say the the company may have paved the way for other manufacturers.

    Apple devices are manufactured in India by Taiwan’s Foxconn, Wistron and Pegatron. Until recently, the company would typically start assembling models in the country only seven to eight months after launch. That changed last year, when Apple started making new iPhone 14 devices in India weeks after they went on sale.

    Some of Apple’s biggest contractors are already pumping more money into India. Last year, Foxconn announced it had invested half a billion dollars in its Indian subsidiary.

    Earlier this week, the government of the southern Indian state of Karnataka said it is “in serious discussion of investment plans” with the Taiwanese giant. Foxconn already has factories in the Andhra Pradesh and Tamil Nadu.

    Manufacturing in India, however, comes with myriad challenges. It constitute only 14% of India’s GDP, according to the World Bank, and the government has struggled to grow that figure.

    “One of the things that China did is they built infrastructure when they could. And I would argue that India did not build infrastructure when they could,” said Shih, referring to highways, ports and transport links that allow easy movement of goods.

    An aerial view of Mumbai Metro Line 7 between Andheri East station and Aarey Metro station on its Andheri (East)-Dahisar (E) route on Western Express Highway, on July 26, 2022 in Mumbai, India.

    Apple will also face a lot more red tape in India if it wants to create sprawling Chinese-style campuses.

    “Will India be able to replicate a Shenzhen version?” asked Pathak, referring to China’s manufacturing hub. Building such “hotspots” won’t be easy and would require India to think about issues ranging from logistics and infrastructure to the availability of workers, he added.

    Experts told CNN that accessing land in a chaotic democracy like India could be a challenge, while the Chinese Communist Party faces fewer barriers to expropriating real estate quickly for causes it deems important.

    India would also have to think about moving beyond simply assembling iPhones through favorable government policies.

    “You need to source components locally, which means you need to attract many more companies in the supply chain to set up shop in India,” Pathak said.

    Some of the biggest businesses in India may be stepping up. According to Bloomberg, autos-to-airline conglomerate Tata Group is in talks with Wistron to take over the Taiwanese company’s factory in southern India.

    Tata and Wistron did not respond to request for comment.

    “I am not directly involved in that, but it should be really good for India because this is going to create an opportunity in India to manufacture electronics and microelectronics,” N. Ganapathy Subramaniam, COO of Tata Consultancy Services, the group’s software services arm, told Bloomberg.

    While there are significant obstacles in India’s ambition to deepen its relationship with Apple, doing so would be a huge boost for the country and Prime Minister Narendra Modi.

    ‘I think it’ll be [a] big, big win,” said Pathak, noting that growing manufacturing ties with a US giant like Apple will in turn attract other global players in the electronics manufacturing ecosystem to India. “You focus on the big one, the others will follow.”

    — Catherine Thorbecke and Juliana Liu contributed reporting.

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  • The dark side of the sports betting boom | CNN Business

    The dark side of the sports betting boom | CNN Business

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    New York
    CNN
     — 

    The sports gambling gold rush is coming at a high cost.

    In 2018, the Supreme Court struck down a federal ban on commercial sports betting in most of the country. Thirty-three states have made sports gambling legal in the wake of the decision. Now, on Super Bowl Sunday, a record 50.4 million US adults are expected to bet on the game.

    The booming sports betting industry, lawmakers and even the professional sports leagues themselves are making it easier, faster and more tempting for people to bet on games — and develop gambling problems, say gambling researchers and addiction specialists.

    A flood of advertising, technology that allows for one-click betting at home, and nearly unlimited betting options during games have collided. There’s been a spike in inquiries to state gambling-addiction hotlines, states say.

    In the past five years, there has been an explosion of online sports betting apps from companies like DraftKings, FanDuel and Caesars. These apps are often replacing illegal betting venues. At the same time, they also attract an influx of new gamblers who had never set foot in a casino or would have known how to place a bet with a bookie.

    During the Super Bowl, there will be an onslaught of advertisements — most starring celebrity sponsors and athletes — meant to encourage new sign-ups and grab market share. DraftKings will air a commercial featuring Kevin Hart and David Ortiz, while Rob Gronkowski will attempt a field goal kick live in a FanDuel ad. (Any customer who places a Super Bowl bet of five dollars or more on FanDuel will win a share of $10 million in “free bets” if Gronkowski makes it.)

    Hear why FanDuel CEO thinks this Super Bowl will be biggest day in company’s history

    Sports teams and leagues were once fiercely opposed to gambling on the games. Now, they’ve partnered with sportsbooks.

    These days, gamblers can also do much more than wager on the outcome of a game. There are options to bet in-game on every quarter, player, and event.

    Resources for gambling addiction programs have long been thin in the United States and have been stretched further by the current wave of sports betting. In 2020, there were 5.7 million Americans with a gambling disorder, according to a nationwide survey by the National Association of Administrators for Disordered Gambling Services.

    Focus on gambling disorders has historically been minimal in the United States, said Timothy Fong, a psychiatrist and the co-director of the UCLA Gambling Studies Program.

    This is in part because people with gambling disorders have been viewed as foolish or lacking willpower, he said. “We equate the ability to hold onto money and win money with success and equate losing with greed.”

    There is also sparse federal oversight of the gambling industry, and there are currently no federal funds designated for problem gambling treatment or research, unlike federal funding for alcohol, tobacco and drug addiction programs.

    DraftKings is one of the most popular sports betting apps.

    A patchwork of state legislation, lack of robust consumer protections in many states, and limited advertising restrictions are adding to the problems.

    “Many states naively or some other way went about legalizing sports betting without adequately estimating the costs on problem gambling resources,” said John Holden, an associate professor of management at Oklahoma State University who studies sports gambling regulation.

    “There is more that state lawmakers can do within the confines of commercial speech restrictions,” including authorizing extra funding to go after false and misleading advertising, Holden said.

    Betting on sports can be a way for some people to develop, maintain or accelerate gambling disorders.

    There are several features of sports betting that make it different from other forms of gambling and can lead to addictive behavior.

    Many sports bettors tend to perceive their wages on games are safer and more informed by their own expertise and skills than luck, researchers say. This may give them a false illusion of control.

    Additionally, live betting within games reduces the delay between risk and reward, and it’s increasing the speed and frequency of wagers, experts say.

    “I got caught up in a lot of the live betting,” said one 24-year-old man with a gambling disorder who spoke to CNN on the condition of anonymity. He started betting on sports seven years ago through a bookie, but upped his wagers once he started using apps.

    During football games, he would bet on the outcome of drives and which team would score the next touchdown. As he lost more during a game, he would try again to to win it back on the next play.

    “You see the way the game is going and you think you know,” he said. “It’s not like back in the day with a bookie betting on who wins.”

    He said he lost $100,000 on sports gambling, including money from student loans. He’s currently in recovery at Beit T’Shuvah, in Los Angeles, which provides inpatient and outpatient services for people struggling with gambling disorders.

    Casey Clark, the senior vice president at the American Gaming Association, a trade group for the gambling industry, said that the legalization of sports betting has moved the black market of sports gambling into regulated marketplaces, benefiting states.

    The gambling industry and sports betting operators work with regulators, professional sports leagues, media companies and advocates to set standards, provide gambling education for consumers and fund recovery efforts for people seeking treatment, Clark said.

    “We’ve had a really fast escalation and movement towards giving American consumers access to the legal market that they clearly want. And so we have to continue to evolve that marketplace,” he said.

    Advocates for people with gambling disorders say demand for help and treatment services has grown alongside the rapid expansion of legalized sports betting.

    Inquires to the Council on Compulsive Gambling of New Jersey’s help hotline about sports gambling have increased 60% since it became legal in the state in 2018, said Felicia Grondin, the organization’s executive director.

    Grondin feels helpless against the constant barrage of advertising encouraging betting on games.

    An advertisement for DraftKings is shown on the scoreboard during the game between the Boston Red Sox and the Detroit Tigers at Comerica Park on July 7, 2019 in Detroit, Michigan.

    “We consider it to be predatory advertising because it’s incessant and it glamorizes gambling,” she said.

    Clark from the American Gaming Association said the group has created a responsible marketing code to set industry-wide advertising standards.

    But self-enforcement by the industry cannot make up for robust oversight from regulators, said Keith Whyte, the executive director of the National Council on Problem Gambling.

    “Self-regulation tends to dumb itself down to the lowest common denominator, not the highest,” he said. “Some operators are definitely taking advantage of weak regulatory environments in some states.”

    Every state where gambling is legal has a regulatory body that oversees it.

    But few have “really done more than the minimal amount to increase funding of problem gambling treatment,” said Holden. The sports gambling industry is most similar to financial markets, he said, but financial markets are much more regulated than banks.

    Most states require that sports betting ads disclose the minimum legal age to gamble and responsible gambling messages, such as problem gambling hotlines. Those messages are brief and usually run at the very end.

    DraftKings' Super Bowl ad with Kevin Hart, David Ortiz and Emmitt Smith.

    Regulators are wary of how tightly they can curtail messages in gambling advertising without running afoul of First Amendment protections on commercial speech.

    “A lot of state regulators have big First Amendment fears,” Holden said. “No one wants to fund litigation or lose a Supreme Court case over gambling.”

    In most states, the legal age for sports betting is 21 years old. But ads during games, in stadiums, and with star athlete sponsors normalizes sports betting for kids and teenagers, critics say. The United Kingdom last year banned top athletes and celebrities from appearing in ads endorsing or promoting gambling to try to curb underage gambling. That’s unlikely to happen in the United States.

    Additionally, researchers are troubled by the incentives and promotions some sports betting apps often provide to users, such as sign-up and referral bonuses, promo codes and bonus bets. One 2017 study of people with gambling addictions found that messages with an offer of risk-free kind of bonuses had a high impact.

    The Ohio Casino Control Commission in January fined DraftKings, Caesars and BetMGM $150,000 each for advertising promotions or bonuses as “free” or “risk-free” when, in fact, users were required to lose money or risk their own money to obtain the promotion.

    “I got more incentive to gamble with these apps that give you free play and match your deposit,” said the former sports bettor in Los Angeles currently in recovery. He enlisted friends to sign up to get referral fees, and looked at these enticements as free money. “I’d have to be an idiot to pass this up.”

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  • US senators seek answers from Meta on whether user data was accessed by China, Russia and others | CNN Business

    US senators seek answers from Meta on whether user data was accessed by China, Russia and others | CNN Business

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    Washington
    CNN
     — 

    Top US lawmakers on the Senate Intelligence Committee want answers from Meta on a newly disclosed internal investigation it conducted in 2018 that found tens of thousands of software developers in China, Russia and other “high-risk” countries may have had access to detailed Facebook user data before the company clamped down on that access beginning in 2014.

    In a letter to Meta CEO Mark Zuckerberg on Monday, Sens. Mark Warner and Marco Rubio, the chair and vice-chair of the Senate committee, cited a document unsealed last week in an ongoing privacy lawsuit involving the company.

    That document, an internal slide presentation from 2018, suggested that nearly 87,000 developers in China, 42,000 in Russia and a handful based in Cuba, Iran and North Korea had access to Facebook user information through an earlier version of the company’s programming interfaces. The presentation provides an interim update on the probe, which found, among other things, that Iran was home to a “significant number of seemingly Russian developers” of Facebook apps.

    The document does not explicitly outline what types of information the developers could have accessed, but it focuses on a period prior to 2014, before Facebook had restricted third-party access to data such as political views, relationship statuses and education history, among other things.

    The congressional letter seeks more information about the outcome of the investigation, with a particular focus on whether Facebook users’ data could have ended up in the hands of Chinese or Russian intelligence agencies.

    “We have grave concerns about the extent to which this access could have enabled foreign intelligence service activity, ranging from foreign malign influence to targeting and counter-intelligence activity,” the lawmakers wrote.

    The findings are “especially remarkable given that Facebook has never been permitted to operate in [China],” they added.

    Meta’s investigation, launched after the company’s Cambridge Analytica data privacy scandal, had focused on third-party app developers with access to “large amounts of information” and whose software had exhibited “suspicious activity.”

    On Tuesday, Meta told CNN in a statement that the document cited in the letter references data practices that are no longer in effect at the company.

    “These documents are an artifact from a different product at a different time,” said Meta spokesman Andy Stone. “Many years ago, we made substantive changes to our platform, shutting down developers’ access to key types of data on Facebook while reviewing and approving all apps that request access to sensitive information.”

    Meta declined to answer whether the app developer investigation is still ongoing or how many apps have been reviewed since the 2018 slide presentation, which was unsealed in court last week. The document had projected the probe would continue at least through 2020.

    In recent years, policymakers have increasingly sounded the alarm about data leakages to foreign adversaries. Hostile governments could seek to use Americans’ personal information to spread disinformation or identify intelligence targets, US officials have said.

    Those fears have culminated most visibly in tensions with the short-form video app TikTok, whose links to China through its parent company have prompted the US government and numerous states to ban the app from official devices. US officials have also sought to block Chinese telecom firms from the US market over similar concerns.

    But the lawmakers’ letter highlights how worries about data access by foreign adversaries extends beyond TikTok and encompasses some of the largest social media platforms.

    Although Meta has moved on with different, more restrictive policies for developers, Warner and Rubio called for the company to explain what information may have been transferred to China, Russia and other nations in the past, and for any evidence the company may have that the data has been abused to target Americans or engage in propaganda campaigns.

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  • Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business

    Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business

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    CNN
     — 

    At its annual Unpacked event on Wednesday, Samsung unveiled its latest Galaxy S smartphones – and the company is betting that focusing on improvements to the camera will be enough to get consumers to upgrade.

    The new lineup, which includes the 6.8-inch Galaxy S23 Ultra, 6.6-inch Galaxy S23+, and 6.1-inch Galaxy S23, look similar to last year’s models, but with new photo features, a longer lasting battery life (with faster charging speeds) and an exclusive chip.

    But the standout feature is the new camera. The higher-end S23 Ultra features a new 200 MP adaptive pixel sensor for the first time that supports multiple levels of high-resolution processing at once, enabling what the company called “unprecedented resolution photo quality never before seen on a smartphone camera.”

    The new phones offer improved photo and video stabilization, Nightography for photos and videos (allowing the ability to capture shots in low light situations) and a new AI-powered image signal processing algorithm that enhances object details and color tone.

    Samsung also introduced its first Super HDR selfie camera, jumping from 30 frames per second to 60 frames per second, for better front-facing images and videos.

    The cameras on the Galaxy S23+ and Galaxy S23 even have a subtle new look: the contour housing has been removed, which Samsung said marks a new era of design. The Galaxy S23 Ultra’s display comes with a reduced curvature to create a larger and flatter surface intended to improve the visual experience. Its Enhanced comfort feature allows users to adjust color tones and contrast levels, and lessen eye strain at night. Its vision booster tool also got an update to further cut down on glare.

    Ahead of the event, Jude Buckley, executive VP of the mobile business for Samsung Electronics America, told CNN its strategy continues to be staying at the forefront of camera innovation.

    “We try to own a few things really uniquely, and the camera is one of the things that we have to stay well ahead of,” he said.

    The launch comes at as Samsung and other tech companies confront broader economic uncertainty that could push consumers to rethink their spending. Global smartphone shipments fell by 18% in the fourth quarter of 2022, according to market research firm Canalys.

    Earlier this week, Samsung reported that its quarterly profits had plunged to their lowest level in eight years as customers snapped up fewer smartphones and laptops. Its revenue also fell 8% from the prior year.

    While the company is keeping prices the same as the prior year, it nonetheless must convince customers to shell out as much as four figures for its new phone lineup in a tough market.

    Galaxy S23 Ultra, which comes with Samsung’s signature S pen, will start at $1,199.99, while the Galaxy S23+ starts at $999.99 and Galaxy S23 starts at $799.99.

    The new lineup, which is available for pre-order starting on Wednesday, comes in four matte colors: black, cream, green and lavender. Other colors, such as lime, graphite, sky blue and red, will be available for purchase directly on Samsung.com.

    The company also showed off its latest flagship PC Galaxy Book3 series: the high-end Galaxy Book3 Ultra ($2,399.99); the Book3 Pro 360 ($1899.99) – featuring a 2-in-1 convertible form factor with S Pen functionality; and the Galaxy Book3 Pro ($1449), a thin clamshell laptop.

    While the new features in the S23 lineup may not be revolutionary, some may resonate with its loyal users and keep Samsung competitive in the market.

    “The Galaxy S23 family demonstrates just how hard it is to tell a new story in today’s smartphone market,” said Leo Gebbie, principal analyst at CCS Insight. “The latest devices from Samsung are undoubtedly impressive but the emphasis on improvements to camera capabilities and battery life is nothing new. They underscore the difficulty that Samsung and other phone makers have in finding genuinely new ways to promote and sell their products.”

    David McQueen, an research director at ABI Research, said manufacturers continue to dole out incremental updates, rather than waiting two years to release a new impactful device, because “the market moves so quickly now.”

    “Companies need to be seen to be providing new devices with the latest technology, no matter how unnoticeable the upgrade, to survive,” he said.

    Samsung agrees. Buckley told CNN that while some updates are bigger than others, it has to stay on top of the latest trends to remain competitive.

    “Our heritage is technology, and we have a very fierce competitor who has done an amazing job over many, many years,” Buckley said, in an apparent reference to Apple. “And if your technology, if your value proposition is based in technology, you’ve always gotta be at the forefront. If you were the first to go to every two years, that’d be a painful two years.”

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  • Foxconn January sales hit record high after production restored at world’s biggest iPhone factory | CNN Business

    Foxconn January sales hit record high after production restored at world’s biggest iPhone factory | CNN Business

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    Hong Kong
    CNN
     — 

    Apple supplier Foxconn says its January monthly sales hit a record high as it bounced back from Covid-19 disruptions in China.

    In a sales update on Sunday, the Taiwanese manufacturing giant reported revenue of 660.4 billion Taiwan dollars ($22 billion) in January, 48% more than the same period a year ago and its highest-ever level for that month. Revenue was up nearly 5% compared to the previous month.

    The manufacturer attributed its performance to a strong rebound at its sprawling campus in Zhengzhou, central China.

    The site, which is home to the world’s biggest iPhone factory, was crippled late last year by Covid-19 restrictions and workers’ protests.

    Now, operations there are “returning to normal,” and product shipments have jumped, Foxconn said.

    The company also said a “better components supply” helped boost sales.

    Two of Foxconn’s most-watched divisions: smart consumer electronics, which includes smartphones and televisions, and computing products, which includes laptops and tablets, both “showed strong double-digit growth,” it said.

    The figures underscore how Foxconn’s Zhengzhou campus, also known as “iPhone city,” is roaring back to life after the massive setbacks.

    The company’s troubles started in October, when workers left the site because of concerns about Covid-related working conditions and shortages of food. Short on staff, bonuses were later offered to workers to return.

    But violent protests broke out in November, when newly-hired staff said management had reneged on their promises. Workers clashed with security officers, before the company eventually offered them cash to quit and leave the site.

    The headaches had led analysts to predict that Apple would likely speed up its supply chain diversification away from China.

    Last week, Apple

    (AAPL)
    pointed to challenges in China as a key factor in its worse-than-expected earnings.

    CEO Tim Cook said the company’s problems in the country had hurt its supply of the iPhone 14 Pro and iPhone 14 Pro Max during the key holiday shopping season.

    Foxconn has since managed to stabilize operations at its facility. Last month, Chinese state media reported that the Zhengzhou plant was almost back to normal, reaching 90% of capacity as of the end of December.

    The company also expressed confidence for the road ahead. On Sunday, it said in a statement that its outlook for the first quarter would likely meet analysts’ expectations, without providing specifics. Analysts polled by Refinitiv expect the firm’s revenue to grow 4% during the January-to-March period.

    Foxconn’s shares rose 1.9% in Taipei on Monday.

    — CNN’s Wayne Chang and Juliana Liu contributed to this report.

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  • I’m a parent with an active social media brand: Here’s what you need to check on your child’s social media right now | CNN

    I’m a parent with an active social media brand: Here’s what you need to check on your child’s social media right now | CNN

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    Editor’s Note: Sign up for CNN’s Stress, But Less newsletter. Our six-part mindfulness guide will inform and inspire you to reduce stress while learning how to harness it.



    CNN
     — 

    If you follow me on Twitter or Instagram, you’ll know I wear a lot of hats: romance author, parent of funny tweenagers, part-time teacher, amateur homesteader, grumbling celiac and the wife of a seriously outdoorsy guy.

    Because I’m an author with a major publisher in today’s competitive market, I’ve been tasked with stepping up my social media brand: participation, creation and all. The more transparent and likable I am online, the better my books sell. Therefore, to social media I go.

    It’s rare to find someone with no social media presence these days, but there’s a marked difference between posting a few pictures for family and friends and actively creating social media content as part of your daily life.

    With a whopping 95% of teens polled having access to smartphones (and 98% of teens over 15), according to an August Pew Research Center survey on teens, social media and technology, it doesn’t look like social media platforms are going away anytime soon.

    Not only are they key social tools, but they also allow teens to feel more a part of things in their communities. Many teens like being online, according to a November Pew Research Center survey on teen life on social media. Eighty percent of the teens surveyed felt more connected to what is happening in their friends’ lives, while 71% felt social media allows them to showcase their creativity.

    So, while posting online is work for me, it’s a way of life for the tweens and teens I see creating and publishing content online. As a parent of two middle schoolers, I know how important social media is to them, and I also know what’s out there. I see the good, the bad and the viral, and I’ve have put together some guidelines, based on what I’ve seen, for my fellow parents to watch for.

    Here are eight questions to ask yourself as you check out your children’s social media accounts.

    If you don’t, it’s time to start. It’s like when I had to look up the term “situationship,” I saw that ignorance is not bliss in this case. Or really any case when it comes to your children. Both of my children have smartphones, but even if your children don’t have smartphones, if they have any sort of device — phone, tablet, school laptop — it’s likely they have some sort of social media account out there. Every app our children wish to add to their smart devices comes through my husband’s and my phone notifications for approval. Before I approve any apps, I’ll read the reviews, run an internet search and text my mom friends for their experience.

    Most tweens and teens use social media for socializing with local friends.

    If I’m still uncertain about an app, I’ll hold off on approving it until I can sit down with my children and ask them why they want it. Sometimes just waiting and forcing a short discussion is enough to convince them they no longer want it. In our household, I avoid any apps that run social surveys, allow anonymous feedback or require the individual to use location services.

    If you don’t have your family phone plan all hooked together with parental controls, I’d advise setting that up ASAP. Because different devices and apps have different ways to monitor and set up parental controls, it’s impossible to link all the options here. However, a quick search will give you exactly the coverage you are comfortable with, including apps that track your child’s text messages and changing the settings on your child’s phone to lock down at a certain time every night.

    The top social media platforms teens use today are YouTube (95% of teens polled), TikTok (67%), Instagram (62%) and Snapchat (59%), according to the Pew Research Center survey on teens and social media tech. Other social media platforms teens use less frequently are Twitter, Reddit, WhatsApp and Facebook. Most notably, Facebook is seeing a significant downturn in teen users. This list isn’t exhaustive, however. I would check out your children’s devices for group chat apps (such as Slack or Discord) and also scroll through their sport or activity apps where group chat capabilities exist.

    I’ve seen preteens and teens using their real names, birthdate, home address, pets’ names, locker numbers or their school baseball team. Any of that information could be used to identify your child and location in real life or using a quick Google search. All of that is an absolute “no” in our house.

    I also tell my kids not to answer the fun surveys and quizzes that invite children to share their unique information and repost it for others to see. These can be useful tools for predators and people trying to steal your children’s identity.

    What I do: I made the choice a long ago to withhold the names of my children and partner. It’s not an exact science, and I know some clever digging could find them. For my husband, it’s for the sake of his privacy and also the protection of his professionalism. Just because he’s married to a romance author doesn’t mean he should have to answer for my online antics, whatever they may be. For my children, I want to avoid anything embarrassing that could be traced back to them during their college application season.

    Even if your children keep their social media profiles private (more on that later), their biographical information, screen name and avatar or profile picture are public information.

    Do an internet search of your child’s name to see what’s out there and scroll through images to make sure there isn’t anything you wouldn’t want to be made public. In our household, I’ve asked my children to use generic items or illustrated avatars in their social media bios.

    What I do: Parents who do have active social media accounts may want to do a search of their own names. When my first book was published in 2019, I did a search of my name and images and found many photos of my children that came directly from my social media pages. I hadn’t posted pictures of them, but I did use a family photo as my profile photo and those are public record. Once I deleted them, the photos disappeared.

    Another “no” in our household is posting videos or photos of our home or bedrooms. Something that feels innocent and innocuous to your middle schooler may not feel that way to an adult seeking out inappropriate content.

    I learned this from one of my children’s Pinterest accounts. My kid loves to create themed videos using her own photos and stock pictures, and she’s gained over 500 followers in a short period of time. She has completely followed our rules and I know, because I check and follow her myself — but it hasn’t stopped the influx of adult men following her content.

    What we do: Over the holidays, I sat with her and went through each follower one by one and blocked anyone we decided was there for the wrong reasons. In the end, we blocked close to 30 adult men on her account. (I also know that some predators cleverly disguise themselves as children or teens, and we may not catch them all, but this is still a worthy exercise.)

    We also talk to our children about how to protect themselves. They wouldn’t want those strangers standing in their bedroom; therefore, they don’t want to post videos of their bedroom or bathroom or classroom for strangers to view.

    This is a tricky one for lots of reasons. For content creators to build their following, they need to remain public on social media. If your child is an entrepreneur or artist hoping to grab attention, locking down their account will prevent that from happening.

    That said, a way around this is to have two accounts. First, a private one, locked down and only used for family and close friends, and second, a public one that lacks identifiers but showcases whatever branding the child is hoping to grow. I’ve come across some well-managed public accounts for children who have giant followings and noticed they are usually run by parents, who state that right in the profile. I like this. If your children want public profiles because they are hoping to catch the attention of a talent scout, having the accounts monitored by a responsible adult who has their best interest in mind is a healthy compromise.

    This is the exception, however. Most tweens and teens today use their social media for socializing with local friends. The benefit of keeping their account as private (or as private as can be) is threefold. It allows them to screen who follows their content, thus preventing our Pinterest fiasco. It prevents strangers from accessing their content and making it viral without their permission. And it protects them from unsolicited contact with strangers.

    Not all social media platforms have the option to make your account “private.” For example, YouTube has parental controls that can be adjusted at any time. TikTok and Instagram can be made private (which means users must approve followers) by making the change in the account settings. Once the account is private, a little padlock will show next to the username.

    Snapchat allows users to approve followers on a case-by-case basis as well as turn off features that disclose a user’s location. Notably, Snapchat also informs users when another user takes a screenshot of their story, which is a feature other social media platforms don’t have yet.

    Most group chat apps don’t have the ability to go private so much as they ask users to approve of follower requests. Take time to discuss with your children who they allow to follow them and what personal information they allow those followers to know. It’s also a great time to teach them the art of “blocking” those individuals who are unsafe or unkind.

    My suggestion is to log in, scroll around and even ask your children to teach you about the platforms they use. Then, when they roll their eyes at you, go ahead and tell them about your first Hotmail email address and the way you picked the perfect emo playlist on your Myspace page … and when they’re bent over laughing, sneak a peek at their follower list. Trust me, it’ll be worth it.

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  • Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

    Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

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    CNN
     — 

    In less than three months, four of the big five US tech companies have cut tens of thousands of employees combined, shattering myths about the industry’s seemingly unstoppable growth in the process.

    But there has been one notable exception: Apple.

    To date, Apple

    (AAPL)
    has not announced any substantial cuts, thanks in part to slower headcount growth than some of its peers during the pandemic and continued demand for its core products. Some analysts think more modest cost cuts could be coming, however.

    The iPhone maker is set to report earnings results for the final three months of 2022 on Thursday after the bell. It is expected to post a rare year-over-year decline in revenue.

    While these expectations show the strain Apple’s business is under, Wedbush Securities’ Dan Ives said in a note this week that pent-up demand for upgrading iPhones remains strong. “Apple will likely cut some costs around the edges, but we do not expect mass layoffs from Cupertino this week,” Ives wrote.

    Tom Forte, a senior research analyst at DA Davison, agreed there will be staff reductions, but likely not as drastic as those at other large tech companies. “Apple will cut headcount,” he said in a recent interview on Bloomberg TV, but suggested the cuts would come through attrition or reductions at the retail level.

    “While they haven’t done so yet, like everyone else, they will adjust their headcount for the current level of demand,” he said.

    Fueled by a surge in demand for digital products earlier in the pandemic, Big Tech went on a massive hiring spree.

    Amazon

    (AMZN)
    and Meta each doubled their headcount between the third quarter in 2019 and the third quarter 2022, according to data shared in the companies’ securities filings. Alphabet, meanwhile, grew its headcount 64% during that time, and Microsoft grew its staff by more than 50% over approximately the same period.

    Apple, by comparison, grew its headcount by a more modest 20%. As of September 2022, Apple said it had approximately 164,000 full-time employees.

    Many tech CEOs, with varying degrees of remorse, have blamed over-hiring in the early days of the pandemic for the mass layoffs now. As pandemic restrictions eased last year, the demand for digital services shifted back toward pre-pandemic levels. Inflation pinched consumer and business spending, and rising interest rates evaporated the easy money tech companies had tapped into. And one-by-one, amid the whiplash, household names in Silicon Valley began announcing widespread layoffs to adjust to the new environment.

    While Apple has not announced layoffs, its business has been strained in other ways. Like other Big Tech companies, it has faced threats of antitrust action in the United States and EU. Earlier this month, Apple also said CEO Tim Cook had agreed to a massive pay cut this year, following a shareholder vote on his compensation package after its stock fell about 27% in 2022.

    As consumer spending tightened, global smartphone shipments plunged 18% in the fourth quarter of 2022, according to market research firm Canalys. Apple’s business also faced supply chain hurdles linked to China’s Covid lockdowns and unrest that hit a key production site in Zhengzhou, China late last year.

    Still, Apple’s business is weathering the downturn better than some of its fellow tech giants. In its most-recent earnings report, the company reported sales grew 8% year-over-year and that the company hit a September quarter revenue record for iPhone.

    Thursday’s earnings results will show whether Apple can keep defying gravity.

    “Apple continues to innovate with high-quality, industry-leading products supported by a powerful digital platform,” analysts at Monness, Crespi and Hardt wrote in an investor note Tuesday. “However, regulatory headwinds persist and we believe the darkest days of this downturn are ahead of us.”

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  • A first generation iPhone going up for auction hopes to fetch $50,000 | CNN Business

    A first generation iPhone going up for auction hopes to fetch $50,000 | CNN Business

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    New York
    CNN
     — 

    An unopened first-generation iPhone from 2007 is hitting the auction block Thursday – with an estimated value of $50,000.

    Originally on sale for $599, the first iPhone offered early Apple adopters a 3.5-inch screen with a 2-megapixel camera, plus 4 GB and 8 GB storage options, internet capabilities and iTunes. It had no app store, ran on a 2G network and was exclusive to AT&T’s network.

    Cosmetic tattoo artist Karen Green was gifted the 8 GB version and never broke the seal, according to her appearance on daytime television program “The Doctor & The Diva” in 2019. An appraiser on the show valued the phone at $5,000 at that time.

    Since then, another unopened first-generation iPhone like Green’s auctioned off for over $39,000 in a listing by LCG Auctions that closed in October. LCG Auctions is also listing Green’s phone, with bidding opening at $2,500.

    Green and LCG Auctions did not immediately respond to CNN’s request for comment.

    The iPhone changed the way billions of people around the world communicate, make payments, do their jobs, take photos and even how they wake up in the morning. It killed dozens of industries (camcorders, MP3 players, flip phones) and gave life to many more.

    Speaking at Apple’s annual Macworld expo in 2007, then-Apple boss Steve Jobs opened his presentation with: “We’re going to make some history together today.” Jobs called the new smartphone a “revolutionary mobile phone” that will feature an iPod, phone and what he called an “Internet communicator.”

    “It’s bad out there today,” said Jobs of mobile Web browsers. “It’s a real revolution to bring real Web browsing to a phone.”

    Apple enthusiasts will have until February 19 to bid on the tech relic.

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  • Democratic senator urges Apple and Google to ban TikTok from their app stores | CNN Business

    Democratic senator urges Apple and Google to ban TikTok from their app stores | CNN Business

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    Washington
    CNN
     — 

    A member of the Senate Intelligence Committee is calling on Apple and Google to remove TikTok from their app stores over concerns about national security, in the latest indication of mounting scrutiny on the short-form video app from members of Congress.

    In a letter sent to the two tech giants on Thursday, Colorado Democratic Sen. Michael Bennet calls TikTok “an unacceptable threat to the national security of the United States” and cites the same concerns that have prompted the federal government and more than half of US states to restrict TikTok from official devices and networks.

    Writing to Apple CEO Tim Cook and Google CEO Sundar Pichai, Bennet highlighted fears that China could use its national security laws to force TikTok or its parent, ByteDance, to hand over the personal information of the app’s US users. The laws in question, Bennet wrote, require organizations in the country to “cooperate with state intelligence work” and to allow the government to access company resources. ByteDance’s founder is Chinese and the company has offices in China. TikTok has also disclosed to European users that their data may be accessed by employees based in China.

    China could potentially try to shape what US users see on the app, Bennet warned, with possible implications for foreign policy and democracy.

    “We should accept the very real possibility that [China] could compel TikTok, via ByteDance, to use its influence to advance Chinese government interests,” Bennet wrote, “for example, by tweaking its algorithm to present Americans content to undermine U.S. democratic institutions or muffle criticisms” of China’s handling of Hong Kong, Taiwan or ethnic minorities.

    Apple, Google and TikTok didn’t immediately respond to a request for comment. TikTok CEO Shou Zi Chew is expected to testify before a House committee in March to discuss the company’s data security practices.

    There is no evidence that the type of spying or manipulation US officials fear has actually occurred, but security experts have warned that it is a possibility.

    TikTok has denied that it would ever hand over US user data to the Chinese government. It has increasingly moved to wall off its US operations from the rest of its business, technologically and organizationally — part of what the company has described as a good-faith effort to address the national security concerns.

    TikTok has also spent years negotiating a potential national security deal with the US government that would seek to resolve some of the concerns, but the talks have been mired by delays, leading to frustration among some members of Congress. In recent months, multiple US lawmakers have introduced bills that would ban TikTok from all US devices, including personal ones.

    Some other US officials have also called on Apple and Google to voluntarily remove TikTok from their app stores.

    Last year, Brendan Carr, a commissioner at the Federal Communications Commission, wrote a letter to the companies urging them to de-list TikTok. The FCC does not regulate app stores, but Carr has said that his agency’s experience dealing with Chinese telecom companies has informed his views on the matter. The FCC has moved to block Chinese firms including Huawei and ZTE from the US market, over fears that their wireless networking equipment could be used to collect information on US communications.

    Although the leading members of the Senate Intelligence Committee, Virginia Democrat Mark Warner and Florida Republican Marco Rubio, have also been outspoken critics of TikTok, the two lawmakers had not been invited to co-sign Bennet’s letter before it was sent, according to a spokesperson for Bennet. Rubio is an author of one of the bills seeking to ban TikTok from the United States, while Warner has said he would prefer to see a bill that targets a broader category of worrisome apps, rather than a single app such as TikTok.

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  • Apple and Google’s app stores wield ‘gatekeeper’ power and should be reined in, Commerce Department says | CNN Business

    Apple and Google’s app stores wield ‘gatekeeper’ power and should be reined in, Commerce Department says | CNN Business

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    Washington
    CNN
     — 

    The Biden administration on Wednesday took its biggest swipe yet at app stores run by Apple and Google, with a new report accusing the two tech giants of exercising “gatekeeper” power that has led to “suboptimal” levels of competition in digital markets.

    The report published by the Commerce Department finds that Apple

    (AAPL)
    and Google

    (GOOG)
    “play a significant gatekeeping role by controlling (and restricting) how apps are distributed,” and that the various fees and rules they impose on app developers has created an uneven playing field.

    “All of these factors translate to potential losses for consumers: prices that are inflated due to the fees collected by gatekeepers, innovation that is hampered by policy decisions to limit access to smartphone capabilities, and the loss of choice of apps that are not featured or even accessible for smartphone users,” the report said.

    Adobe Stock

    The 48-page report throws the White House’s weight behind mounting public criticism of dominant app stores, which in recent years has led to multiple private lawsuits against Apple and Google as well as investigations by antitrust regulators in Europe and reports of a probe by the Justice Department.

    In a statement, Apple said its app store has benefited developers and supports hundreds of thousands of jobs. In the past, Apple has argued that its control over iOS app distribution helps promote users’ privacy and security.

    “We respectfully disagree with a number of conclusions reached in the report, which ignore the investments we make in innovation, privacy and security,” an Apple spokesperson said, “all of which contribute to why users love iPhone and create a level playing field for small developers to compete on a safe and trusted platform.”

    Google has said its Android operating system, unlike Apple, allows for competing app stores.

    “We disagree with how this report characterizes Android, which enables more choice and competition than any other mobile operating system,” a Google spokesperson said. “[The report] recognizes the importance of interoperability, multiple app stores and sideloading, which Android’s open system already supports – all while ensuring privacy and security.”

    Wednesday’s report, published by a Commerce Department office charged with advising the president on technology issues, does not launch a regulatory process. Instead, it provides policy recommendations, such as limits on the apps Apple and Google can pre-install or set as defaults on their respective operating systems, or giving users the right to install apps from any source.

    The report also called for boosting budgets for US antitrust enforcers; a ban on some app store restrictions surrounding in-app payments; and a federal privacy law establishing clear standards for data privacy.

    Many of the report’s recommendations echo provisions in federal legislation that received bipartisan support last Congress, but that failed to become law.

    The findings had been informed by public comments submitted to the Department in the months leading up to the report.

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  • Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business

    Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business

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    Hong Kong
    CNN
     — 

    Samsung’s quarterly profits have plunged to their lowest level in eight years as customers snapped up fewer cell phones and laptops.

    The tech giant reported operating profit of 4.3 trillion Korean won ($3.5 billion) on Tuesday for the three months ended December, down 69% from a year ago. Revenue fell 8% to just under 70.5 trillion won ($57.3 billion), it said in a statement.

    It was the company’s weakest quarterly profit since the third quarter of 2014, when its smartphone business lost serious ground to competitors.

    “The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” Samsung noted in the statement.

    The dreary results were anticipated. Samsung

    (SSNLF)
    had flagged the lackluster performance in a pre-earnings forecast earlier this month, with analysts citing falling memory chip prices and fewer orders of consumer devices.

    In a presentation to investors, the electronics maker confirmed that “mobile and PC demand was weak,” and its memory chip business had also suffered “as customers continued to adjust their inventories amid deepening uncertainties.”

    Samsung expects some of those problems to continue in the coming months due to global economic uncertainty, though it anticipates overall demand to start recovering in the second half of the year.

    Smartphone demand will likely slide again this quarter compared to the same period a year ago, “due to the economic slowdown in major regions,” it said.

    Samsung’s shares dropped 3% in Seoul on Tuesday.

    There were some bright spots. Samsung said it took in 302.2 trillion won ($245.7 billion) in revenue for the full year of 2022, up from 279.6 trillion won ($227.4 billion) in 2021, and a record high.

    Analysts have said, however, that they expect the company’s profits to drop again this quarter because of a continued decline in memory chip prices.

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  • Manhunt continues for ‘extremely dangerous’ kidnapping suspect who may be using dating apps to evade capture, police say | CNN

    Manhunt continues for ‘extremely dangerous’ kidnapping suspect who may be using dating apps to evade capture, police say | CNN

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    CNN
     — 

    A sweeping multi-day manhunt continues for a suspect accused of brutally beating and kidnapping a woman in Oregon who remains in critical condition, according to police.

    While Benjamin Obadiah Foster, 36, has evaded capture since Tuesday, police say he is still active on dating apps. The Grants Pass Police Department warns he may be using the apps to find potential new victims or manipulate them into helping him escape.

    State and local investigators have been working “around the clock” to find Foster, who is wanted on suspicion of attempted murder, kidnapping and assault, Grants Pass Police Chief Warren Hensman has said.

    Investigators have been searching for Foster since Tuesday after they found a woman bound and beaten into unconsciousness in a residence in Grants Pass, police said. The suspect, identified by investigators as Foster, had already fled by the time police arrived, the department said.

    Prosecutors accuse Foster of trying to kill the victim while “intentionally torturing” her, according to charging documents obtained by CNN affiliate KDRV. Hensman said Thursday that the victim had been enduring the alleged abuses for a “protracted amount of time.”

    “I’m disgusted by what I know happened. This was an evil act,” Hensman said Thursday.

    The victim was brought to a local hospital where she remains in critical condition, police said Sunday. As of Thursday, police were providing security for the victim, according to Hensman.

    Police said Foster “likely received assistance in fleeing the area.” A 68-year-old woman has been arrested for “Hindering Prosecution” as authorities searched for Foster, the department has said.

    Police are urging the public to send in tips on the suspect’s whereabouts or any potential sightings. In a statement Sunday, the department said people should pay particular attention to his eyes and facial structure, as they believe he may try to alter his appearance by changing the cut or color of his hair and beard.

    In the statement, police said people should not approach the “extremely dangerous suspect” and should instead call 911 immediately. Authorities have said Foster could be armed.

    The department has set up a tip line and is offering a $2,500 reward for information leading to Foster’s capture and prosecution.

    “This is an all hands on deck operation and we won’t rest until we capture this man,” Hensman said on Thursday.

    During a Thursday press conference, Hensman said he is “troubled” by Foster’s history of domestic violence and assault charges, which are detailed in court records.

    Between 2017 and 2019, Foster was charged in two separate cases in which he was accused of attacking women in Las Vegas, according to Clark County court records.

    In the first case, Foster was charged with felony battery constituting domestic violence, the records show. Foster’s ex-girlfriend testified in a preliminary hearing that he tried to strangle her on Christmas Eve of 2017 after he saw that another man had texted her.

    While that case was still pending, Foster was charged with felony assault, battery and kidnapping for alleged abuses against his then-girlfriend in 2019, according to charging documents.

    The victim told police “Foster strangled (her) to the point of unconsciousness several times” and kept her tied up for most of the next two weeks. She said she was only able to escape after convincing Foster they needed to go shopping for food and water, and ran away when he got out of the car to let their dog use the bathroom, the court records show.

    The woman was able to run through a store and into a nearby apartment complex, where somebody offered to take her to a hospital, according to a Las Vegas police report. There, she was found to have seven broken ribs, two black eyes and abrasions to her wrists and ankles from being tied up, the report said.

    Foster accepted plea deals in both cases. In the first case, he was sentenced to a maximum of 30 months in prison but given credit for 729 days served.

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  • Man suspected of kidnapping and beating a woman in Oregon may be using dating apps to evade police | CNN

    Man suspected of kidnapping and beating a woman in Oregon may be using dating apps to evade police | CNN

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    CNN
     — 

    Authorities in southwestern Oregon are warning that a man suspected of kidnapping a woman and beating her unconscious may now be using dating apps to evade capture or find potential new victims, according to police.

    The suspect, 36-year-old Benjamin Obadiah Foster, has so far evaded capture but he appears active on online dating services, the Grants Pass Police Department said in a statement Friday.

    “The investigation has revealed that the suspect is actively using online dating applications to contact unsuspecting individuals who may be lured into assisting with the suspect’s escape or potentially as additional victims,” Grants Pass Police said.

    The search for Foster began Tuesday after officers found a woman who had been bound and severely beaten into unconsciousness, Grants Pass Police said. She was taken to a hospital in critical condition and is being guarded while the suspect remains at large, police said.

    The man fled the scene before officers arrived, but investigators identified Foster as the suspect and asked members of the public to call 911 immediately if they see him, warning he “should be considered extremely dangerous.”

    Police said Foster “likely received assistance in fleeing the area.” A 68-year-old woman was arrested “for Hindering Prosecution” as authorities searched for the suspect, according to the department.

    As the search continues, a $2,500 reward has been offered for information leading to Foster’s capture. Police said he is wanted on suspicion of kidnapping, attempted murder and assault.

    Prosecutors accused Foster of attempting to kill the victim “in the course of intentionally torturing” the woman, according to charging documents filed in court and obtained by CNN affiliate KDRV.

    “This is a very serious offense – a brutal assault on one of our residents that we take extremely serious and we will not rest until we capture this individual,” Grants Pass Police Chief Warren Hensman said in a news conference Thursday.

    This is not the first time Foster has been accused by authorities of violence against women.

    Court records in Clark County, Nevada, show that Foster was charged in two different cases years earlier, accusing him of attacking women.

    In the first case, Foster was charged with felony battery constituting domestic violence, court documents show. Foster’s ex-girlfriend testified in a preliminary hearing that he had attempted to strangle her in a rage in 2017 after another man texted her.

    While that case was still pending in court, Foster was charged with felony assault, battery and kidnapping for allegedly attacking another woman – his girlfriend at the time – in 2019, charging documents show.

    The victim told police “Foster strangled (her) to the point of unconsciousness several times” and kept her tied up for most of the next two weeks. She said she was only able to gain her freedom after convincing Foster they needed to go shopping for provisions, and escaped while in a store, according to the court records.

    The woman was left with seven broken ribs, two black eyes and abrasions to her wrists and ankles from being tied up, according to a Las Vegas police report.

    Foster ultimately agreed to plea deals in the cases, the documents read. He was sentenced to a maximum of 30 months in prison but given credit for 729 days served in the first case.

    “Am I troubled by what I know already? The answer is yes,” Hensman said when asked about the previous charges in Nevada.

    “We’re laser focused on capturing this man and bringing him to justice,” Hensman said.

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  • Why Apple may finally be embracing touchscreen laptops | CNN Business

    Why Apple may finally be embracing touchscreen laptops | CNN Business

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    CNN
     — 

    Over the years, Apple has added touchscreens to almost every computing device imaginable, from phones and tablets to smartwatches, but it has refrained from bringing the feature to its Mac product line – even as a long list of rivals did so with their laptops and desktops.

    In 2010, Apple co-founder Steve Jobs described the concept of a computer with a touchscreen – then an emerging trend among the company’s competitors – as “ergonomically terrible.” Two years later, CEO Tim Cook reiterated the sentiment during an earnings call. And Craig Federighi, Apple’s senior VP of software engineering, said in 2018 that “lifting your arm up to poke a screen is pretty fatiguing to do.”

    But now, Apple may be rethinking its stance. On Wednesday, Bloomberg reported Apple engineers are developing a touchscreen for the MacBook Pro with an expected launch date of 2025, citing unnamed sources familiar with the matter. The company did not immediately respond to a request for comment.

    While it’s unclear if the touchscreen laptop will see the light of day, introducing the product could accomplish two important things for Apple: adapting to shifting consumer expectations and supercharging sales for its Mac product line.

    Microsoft, HP, Samsung and Dell, have long offered computers with touchscreens, and more consumers have come to expect they can tap on a computer screen just as they do on their phones. (If you have a MacBook, you may have already had the experience of a friend or relative touching your screen reflexively thinking it would do something.)

    At the same time, interest in Apple computers is booming, thanks in part to Apple’s inclusion of its new in-house processor that improved battery life and offered better performance. Mac revenue increased 14% in Apple’s 2022 fiscal year to $40.1 billion. Apple’s iPad business, on the other hand, saw sales decline from the prior year.

    Apple has previously kept the touchscreen away from its Mac lineup to prevent it from cannibalizing iPad sales. Instead, Apple added a narrow touch bar to its MacBook keyboard to provide easy access to shortcuts, emoji and other features, but ultimately it did away with the tool after it was panned by users and critics.

    Now, however, Apple could use a Mac touchscreen to incentivize consumers to upgrade their computers and keep Mac sales momentum growing.

    David McQueen, research director at ABI Research, said the lines are increasingly blurred between higher-end iPads and Macs, thanks to new chips, battery life and slim design. He noted that when a 12.9-inch iPad Pro is attached to a Magic Keyboard with use of an Apple Pencil, there is “not much to tell it apart from a laptop experience.”

    “The market has embraced 2-in-1 laptop-tablet hybrids and maybe now Apple sees the rationale for also adding one to its armory,” he added.”

    Apple, for its part, has softened its stance on Mac touchscreens more recently. When asked at a conference last fall if Apple will add a touchscreen to Macs, Federighi responded: “Who’s to say?”

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