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Shares of Hyundai Motors Co. climb more than 20% on potential EV deal with Apple

Hyundai Motor Company is downplaying reports that it is in talks with Apple to produce an autonomous electric vehicle, stating that discussions are still in the “early stage” and still undecided. But the news of a potential tie-up (however tentative) with Apple, which is known for keeping a tight lid on deals before they are announced, was enough to send shares of Hyundai Motor Company up more than 20% on the Korea Exchange during trading on Friday.

The talks were first reported by the Korea Economic Daily and confirmed by Hyundai to Bloomberg in a statement that said “Apple and Hyundai are in discussion, but as it is at early stage, nothing has been decided.” The Korean auto giant also told CNBC that “we understand Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided.”

A Hyundai spokesperson declined to comment to TechCrunch. Apple has also been contacted for comment.

Last month, Reuters reported that Apple’s car initiative, called Project Titan, is still going on, with plans to develop an autonomous electric passenger vehicle. But the car is not expected to launch until 2024.

Hyundai launched its own electric vehicle brand, Ioniq, in August 2020, with plans to bring three all-electric vehicles to market over the next four years, as part of its strategy to sell one million battery electric vehicles and take a 10% share of the EV market by 2025. Hyundai also has a joint venture with autonomous driving technology company Aptiv to make Level 4 and Level 5 production-ready self-driving systems available to robotaxi, fleet operators and automakers by 2022. The Aptiv partnership was announced in 2019.

 

This Week in Apps: Apple bans party app, China loses 39K iOS games, TikTok births a ‘Ratatousical’

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry is as hot as ever, with a record 204 billion total downloads and $120 billion in global consumer spend in 2019. Not including Chinese third-party app stores, iOS and Android users in 2020 downloaded 130 billion apps and spent a record $112 billion. In 2019, people spent three hours and 40 minutes per day using apps, rivaling TV.

Due to COVID-19, time spent in apps jumped 25% year-over-year on Android. Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

This week (after a week off for the holidays), we’re taking a look at holiday app store spending, how the Chinese gaming licensing rules have impacted the App Store, Apple’s move to ban a party app that could have helped spread COVID, and the collaborative musical created by TikTok users, among other things.

Top Stories

Christmas Day app spending grows 35% year-over-year

Global app spending didn’t seem to be impacted by the pandemic in 2020, according to data from Sensor Tower. The firm reports that consumers spent $407.6 million in apps from the iOS App Store and Google Play on Christmas Day, 34.5% from the $303 million spent in 2019. The majority of the spending was on mobile games, up 27% year-over-year to $295.6 million. Tencent’s Honor of Kings led the games category, while TikTok led non-game apps with $4.7 million in spending on Christmas Day.

Image Credits: Sensor Tower

As in prior years, Apple accounted for the majority of the spending, or 68.4% ($278.6M) vs Google Play’s $129M. The spending was led by the U.S., who accounted for ~$130 million of the total

Apple takes a stand on pandemic parties

Apple’s App Store Review guidelines don’t specifically detail how the company will handle apps that could contribute to the spread of COVID-19, but Apple found a way to draw the line when it came to a social app that encouraged unsafe gatherings. This past week, Apple banned the app Vybe Together, which had allowed people to locate “secret” indoor house parties in their area, sometimes including those held in violation of state guidelines.

NYT reporter Taylor Lorenz first called attention to the problem with a tweet. The app had been posting to TikTok to gain attention, but its account has since been removed. Following its removal, the company defended itself by saying that it was only meant for small get-togethers and the founder lamented being “canceled by the liberal media.”

There’s no good defense, really, for the unnecessary and ill-timed promotion of an app that encouraged people from different households to gather, which spreads COVID. And what the founder seemed to not understand, by nature of his recent tweets and statements on the app’s website, is that many cities and states also already prohibit small private gatherings of varying degrees, including those he believes are fine, like small parties in folks’ “own apartments with people in your area.”

The U.S. is coping with 346,000 COVID deaths, and in New York, where the app was promoting NYE parties, 74% of all COVID-19 cases from Sept.-Nov. 2020 have been linked to private gatherings.

The media may have reported on what the app was doing, but ultimately the decision to “cancel” it was Apple’s. And it was the correct one.

Apple removes 39K games from its China App Store.

Apple on Thursday, Dec. 31, 2020 removed 39,000+ games from China App Store. This was the biggest removal of games in a single day, Reuters reported, citing data from Qimai.

iOS games have long been required to obtain a Chinese gaming license in order to operate in the country, but Apple skirted this rule for years by hosting unlicensed titles even as Android app stores complied. Apple began to enforce the rule in 2020 and gave publishers a Dec. 31, 2020 deadline to obtain the license — a process that can be tedious and time-consuming.

Clearly, a large number of publishers were not able to meet the deadline. Included in the new sweep were Ubisoft’s Assassin’s Creed Identity and NBA 2K20. Qimai says only only 74 of the top 1,500 paid games remained following the removals. To date, Apple purged more than 46,000 titles from the China App Store, the report said.

TikTok births a “Ratatousical”

The TikTok musical version of Ratatouille has become a real thing. The pandemic forced a lot of creative types out of work in 2020, leading them to find new ways to express themselves online. On TikTok, this collective pent-up energy turned into a large-scale collaborative event: a musical version of Disney’s Ratatouille. (Or Ratatousical, as it was nicknamed.) TikTokers composed music, wrote lyrics and dialogue, choreographed dances, designed costumes, sets and more, as they worked together through the app.

Surprisingly, Disney is allowing a charity version of this collaboration to become a real event without any interference or lawsuits. The Ratatouille musical live-streamed on Jan. 1 at 7 p.m. Eastern, and will be available via video-on-demand through Jan. 4, for a minimum $5 donation to The Actors Fund.

The musical itself was lighthearted fun for a younger, Gen Z crowd. It also cleverly incorporated actual TikTok videos that featured the app’s well-known visual effects — like cloning yourself or the flashing colored lights typically associated with TikTok’s “you think you can hurt me” meme, for example. That made it more accessible and familiar to kids who had spent the past year being entertained via the internet.

TikTok users, of course, aren’t the only ones designing, creating and editing productions through remote and collaborative processes in 2020 — Hollywood itself has had to reorient itself for remote work at a much larger scale. TikTok was simply the platform of choice for theater kids looking for something to do.

It will be interesting to see if the TikTok-based collaborative process that birthed this musical ultimately becomes a one-off event that arose from the pandemic’s impacts — including the ability for many creative people to devote time and energy on side projects, for example, due to shuttered productions and stay-at-home orders. Or perhaps in-app collaborations have a real future? Time will tell.

TikTok has already proven it can drive the music charts, fashion trends, and app downloads, so it can probably generate an audience for this production, as well. But the cynic may wonder if such an event would have been as popular and buzzworthy had it been some entirely original production, rather than one based on already popular and beloved Disney IP.  But you may as well watch — it’s not like you have any other plans these days.

Weekly News

Platforms

Gaming

  • Samsung teams up with Epic Games on Apple battle over Fortnite. Samsung and Epic Games worked together on the “Free Fortnite” marketing campaign, which recently involving sending packages to influencers that contained a Free Fortnite bomber jacket and Samsung Galaxy Tab S7. Fortnite was the Samsung Galaxy Store game of the year in 2020, and the store also distributes the Epic Games app which distributes the Fortnite updates. This is an odd move as Epic alleges the app stores leverage their power to engage in monopolistic practices, but this makes it clear that Samsung is offering them distribution. Apple has the right to set its own pricing for its services (and it recently lowered commissions for small businesses, too). But even if Epic Games is not the knight in shining armor one would hope for, its lawsuit could help set precedent. And regulators may still decide one day that Apple can’t dictate rules about how businesses operate outside its app store — meaning, they should have the right to collect their own payments, for example.

Augmented Reality

Image Credits: The New York Times

  • The New York Times gets into AR gaming. The media company has experimented with augmented reality as a way to augment storytelling both in its app and through other efforts on social media. But it has now taken AR into the world of gaming with an AR-enabled crossword puzzle where you swipe to rotate broken pieces floating above the puzzle to find clues.

Social & Photos

Telegram photo by Jakub Porzycki/NurPhoto via Getty Images

  • Telegram begins to make money. The messaging app, now nearing 500 million users, will introduce an ad platform for its public one-to-many channels that is “user-friendly” and “respects privacy.” The company says it needs to generate revenue to cover the costs of server and traffic. Telegram earlier abandoned a blockchain token project due to regulatory issues.
  • Mr. Beast announces the second annual “Finger on the App” challenge on Feb. 19. The game doles out $100,000 to whoever can keep their finger on their smartphone the longest, via an app designed for this purpose. Last year, it was a four-way tie after 70 hours, and the prize money was divided. The new app introduces in-app challenges to dissuade cheating. YouTuber Mr. Beast rose to fame for his philanthropic-based viral videos and stunts. He has made sizable donations to people in need and those impacted by the pandemic. But this year, the otherwise silly game has a darker tone as it involves competitors who will likely be in more desperate situations.
  • Bumble uproar over indoor bikini and bra photos. The dating app found itself in the middle of a small controversy this week when a woman who wanted to pose in her bra had her photos taken down. The company said its existing policy prohibits things like shirtless bathroom mirror selfies and indoor photos of people wearing swimsuits and underwear. Bumble’s policies were crafted in response to user data and feedback, but may also help to prevent adult sites from spamming with fake profiles. However, there’s still something weird about an app that markets itself as female-friendly telling a woman to go put some clothes on.
  • ByteDance filings reveal TikTok U.K. business recorded a $119.5 million loss over 2019. The losses were driven by advertising and marketing expenses, indicating the app is still very much in a growth mode.
  • TikTok launches its first personalized annual recap feature. The company “year on TikTok” in-app experience joins other personalized wrap-ups like the Top Nine for Instagram or Spotify’s Wrapped. It also introduces a floating, tappable button to connect users to the experience. This could pave way for other sorts of mini-applications in the future.
  • Clubhouse power users invited to special club. A select group of creators inside the already invite-only audio conversations app have now been given exclusive access to tools and private meetings with Clubhouse leadership and influencers. In one meeting, the creators discussed monetization strategies. The app grew to popularity amid the pandemic as people have been prevented from typical forms of networking, but it’s also struggled with moderation as conversations go off the rails. Today, Clubhouse also hosts many adult topics, as well, which would give the app a 17+ rating if it were actually submitted to the App Store instead of being in a private beta.

Streaming

  • HBO Max’s mobile app set a single-day download record following the release of “Wonder Woman 1984.” During the release weekend (Fri.-Sun.) the app saw 554K downloads, including 244K downloads on Sunday alone, reported Apptopia. The firm estimates the app now has just under 12M mobile users.

Health & Fitness

Government & Policy

Security & Privacy

Funding and M&A

Image Credits: Tappity

Downloads

Yayzy

Image Credits: Yayzy

This U.K. startup’s new app will calculate the environmental impact of what you buy using payment data via Open Banking standards. You you can use this information to adjust your spending or buy offsets in-app in order to become carbon neutral. iOS only.

Waterscope

Image Credits: Iconfactory

The popular app maker Iconfactory released a new app, Waterscope, that is a weather app more specifically designed to provide users with information on water conditions. Creator Craig Hockenberry explains the app is something he largely built for himself, an ocean swimmer often in need of information about the tides, wave heights, water temperature, wind speed, air temperature, forecasts and more. The app could be useful to those who live around the water, whether they’re swimming, fishing, boating or anything else. iOS only.

Run Boggo Run

Image Credits: BuzzFeed

This endless runner is BuzzFeed’s first mobile game, which makes it worth noting if not exactly recommending. The mental health-themed game, inspired by BuzzFeed’s animated series The Land of Boggs, was created by BuzzFeed Animation Studios. In the game, characters try to avoid things like stress monsters and gremlins, which is a humorous take on the anxieties of 2020. However, early user reviews indicate the game’s controls are too difficult and complain the game is too hard to be fun. How stressful! $0.99 on iOS and Android.

Enso

A new meditation game Enso promises to help users relax, meditate or fall asleep faster using gameplay that involves soothing visuals and sounds, composed by A.I. The app consists of 5-minute journeys where users concentrate on a task while guiding their movements and breath to achieve their goals. iOS and Android.

Portal

Image Credits: Portal

Not Facebook’s Portal! This sleep and relaxation-focused app, also called Portal, has been updated with Apple’s new privacy measures in mind. The company announced in December it will not collect user data from its app, and will now no longer use any in-app analytics tracking. The app also never required a login or collected personal information, and didn’t include third-party ads and ad trackers.

That’s resulted in an App Store rare find:

How refreshing.

The Portal app is a free download and offers a $35 per year membership for those who want access to the full content library.

Create your own Apple apps and widgets with this online course

Create your own Apple apps and widgets with this online course

TL;DR: The SwiftUI Apps for All Apple Platforms Course is on sale for £11.10 as of Dec. 19, saving you 92% on list price.


If you want to learn how to create your own apps, the SwiftUI Apps for All Apple Platforms Course will give you a peek behind the curtain. SwiftUI is an innovative way of building user interfaces across all Apple platforms via the power of Apple’s proprietary programming language, Swift. 

In this course, which is led by acclaimed iOS developer Nick Walter, you’ll study up on the basic principles of SwiftUI, so you can begin creating your own apps and widgets from scratch. Read more…

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Photos of an extremely cool-looking Macintosh Classic prototype surface online

Photos of an extremely cool-looking Macintosh Classic prototype surface online

Apple’s Macintosh Classic launched in 1990 as an affordable home computing option. Now, 30 years later, there are photos on Twitter of a purported Classic prototype in a clear case.

I’m no Apple expert. I’ll also be the first to acknowledge that hoaxes are sometimes a Thing on the internet. This may be real, but it may not be real. I just wanted to get that out of the way up front.

It is undeniably cool, though. In a tweet shared by @DongleBookPro there are four images of the machine, taken from different sides and angles. The mostly clear case offers a very good look at the internal makeup of this early Apple machine. Read more…

More about Apple, Macintosh Computer, Tech, and Big Tech Companies

African fintech startup Chipper Cash raises $30M backed by Jeff Bezos

African cross-border fintech startup Chipper Cash has raised a $30 million Series B funding round led by Ribbit Capital with participation of Bezos Expeditions — the personal VC fund of Amazon CEO Jeff Bezos.

Chipper Cash was founded in San Francisco in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The company offers mobile-based, no fee, P2P payment services in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.

Parallel to its P2P app, the startup also runs Chipper Checkout — a merchant-focused, fee-based payment product that generates the revenue to support Chipper Cash’s free mobile-money business. The company has scaled to 3 million users on its platform and processes an average of 80,000 transactions daily. In June 2020, Chipper Cash reached a monthly payments value of $100 million, according to CEO Ham Serunjogi .

As part of the Series B raise, the startup plans to expand its products and geographic scope. On the product side, that entails offering more business payment solutions, crypto-currency trading options, and investment services.

“We’ll always be a P2P financial transfer platform at our core. But we’ve had demand from our users to offer other value services…like purchasing cryptocurrency assets and making investments in stocks,” Serunjogi told TechCrunch on a call.

Image Credits: Chipper Cash

Chipper Cash has added beta dropdowns on its website and app to buy and sell Bitcoin and invest in U.S. stocks from Africa — the latter through a partnership with U.S. financial services company DriveWealth.

“We’ll launch [the stock product] in Nigeria first so Nigerians have the option to buy fractional stocks — Tesla shares, Apple shares or Amazon shares and others — through our app. We’ll expand into other countries thereafter,” said Serunjogi.

On the business financial services side, the startup plans to offer more API payments solutions. “We’ve been getting a lot of requests from people on our P2P platform, who also have business enterprises, to be able to collect payments for sale of goods,” explained Serunjogi.

Chipper Cash also plans to use its Series B financing for additional country expansion, which the company will announce by the end of 2021.

Jeff Bezos’s backing of Chipper Cash follows a recent string of events that has elevated the visibility of Africa’s startup scene. Over the past decade, the continent’s tech ecosystem has been one of the fastest growing in the world by year year-over-year expansion in venture capital and startup formation, concentrated in countries such as Nigeria, Kenya, and South Africa.

Africa Top VC Markets 2019

Image Credits: TechCrunch/Bryce Durbin

Bringing Africa’s large unbanked population and underbanked consumers and SMEs online has factored prominently. Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

As such, fintech has become Africa’s highest-funded tech sector, receiving the bulk of an estimated $2 billion in VC that went to startups in 2019. Even with the rapid venture funding growth over the last decade, Africa’s tech scene had been performance light, with only one known unicorn (e-commerce venture Jumia) a handful of exits, and no major public share offerings. That changed last year.

In April 2019, Jumia — backed by investors including Goldman Sachs and Mastercard — went public in an NYSE IPO. Later in the year, Nigerian fintech company Interswitch achieved unicorn status after a $200 million investment by Visa.

This year, Network International purchased East African payments startup DPO for $288 million and in August WorldRemit acquired Africa focused remittance company Sendwave for $500 million.

One of the more significant liquidity events in African tech occurred last month, when Stripe acquired Nigerian payment gateway startup Paystack for a reported $200 million.

In an email to TechCrunch, a spokesperson for Bezos Expeditions confirmed the fund’s investment in Chipper Cash, but declined to comment on further plans to back African startups. Per Crunchbase data, the investment would be the first in Africa for the fund. It’s worth noting Bezos Expeditions is not connected to Jeff Bezo’s hallmark business venture, Amazon.

For Chipper Cash, the $30 million Series B raise caps an event-filled two years for the San Francisco-based payments company and founders Ham Serunjogi and Maijid Moujaled. The two came to America for academics, met in Iowa while studying at Grinnell College and ventured out to Silicon Valley for stints in big tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

Chipper Cash founders Ham Serunjogi (R) and Maijid Moujaled; Image Credits: Chipper Cash

The startup call beckoned and after launching Chipper Cash in 2018, the duo convinced 500 Startups and Liquid 2 Ventures — co-founded by American football legend Joe Montana — to back their company with seed funds. The startup expanded into Nigeria and Southern Africa in 2019, entered a payments partnership with Visa in April and raised a $13.8 million Series A in June.

Chipper Cash founder Ham Serunjogi believes the backing of his company by a notable tech figure, such as Jeff Bezos (the world’s richest person), has benefits beyond his venture.

“It’s a big deal when a world class investor like Bezos or Ribbit goes out of their sweet spot to a new area where they previously haven’t done investments,” he said. “Ultimately, the winner of those things happening is the African tech ecosystem overall, as it will bring more investment from firms of that caliber to African startups.”

Apple responds to Gatekeeper issue with upcoming fixes

Apple has updated a documentation page detailing the company’s next steps to prevent last week’s Gatekeeper bug from happening again, as Rene Ritchie spotted. The company plans to implement the fixes over the next year.

Apple had a difficult launch day last week. The company released macOS Big Sur, a major update for macOS. Apple then suffered from server-side issues.

Third-party apps failed to launch as your Mac couldn’t check the developer certificate of the app. That feature, called Gatekeeper, makes sure that you didn’t download a malware app that disguises itself as a legit app. If the certificate doesn’t match, macOS prevents the app launch.

Hey Apple users:

If you’re now experiencing hangs launching apps on the Mac, I figured out the problem using Little Snitch.

It’s trustd connecting to https://t.co/FzIGwbGRan

Denying that connection fixes it, because OCSP is a soft failure.

(Disconnect internet also fixes.) pic.twitter.com/w9YciFltrb

— Jeff Johnson (@lapcatsoftware) November 12, 2020

Many have been concerned about the privacy implications of the security feature. Does Apple log every app you launch on your Mac to gain competitive insights on app usage?

It turns out it’s easy to answer that question as the server doesn’t mandate encryption. Jacopo Jannone intercepted an unencrypted network request and found out that Apple is not secretly spying on you. Gatekeeper really does what it says it does.

“We have never combined data from these checks with information about Apple users or their devices. We do not use data from these checks to learn what individual users are launching or running on their devices,” the company wrote.

But Apple is going one step further and communicating on the company’s next steps. The company has stopped logging IP addresses on its servers since last week. It doesn’t have to store this data for Gatekeeper .

“These security checks have never included the user’s Apple ID or the identity of their device. To further protect privacy, we have stopped logging IP addresses associated with Developer ID certificate checks, and we will ensure that any collected IP addresses are removed from logs” Apple writes.

Finally, Apple is overhauling the design of the network request and adding a user-facing opt-out option.

“In addition, over the the next year we will introduce several changes to our security checks:

  • A new encrypted protocol for Developer ID certificate revocation checks
  • Strong protections against server failure
  • A new preference for users to opt out of these security protections”

TikTok stars got a judge to block Trump’s TikTok ban

TikTok has won another battle in its fight against the Trump administration’s ban of its video-sharing app in the U.S. — or, more accurately in this case, the TikTok community won a battle. On Friday, a federal judge in Pennsylvania issued an injunction that blocked the restrictions that would have otherwise blocked TikTok from operating in the U.S. on November 12.

This particular lawsuit was not led by TikTok itself, but rather a group of TikTok creators who use the app to engage with their million-plus followers.

According to the court documents, plaintiff Douglas Marland has 2.7 million followers on the app; Alec Chambers has 1.8 million followers; and Cosette Rinab has 2.3 million followers. The creators argued — successfully as it turns out — that they would lose access to their followers in the event of a ban, as well as the “professional opportunities afforded by TikTok.” In other words, they’d lose their brand sponsorships — meaning, their income.

This is not the first time that the U.S. courts have sided with TikTok to block the Trump administration’s proposed ban over the Chinese-owned video sharing app. Last month, a D.C. judge blocked the ban that would have removed the app from being listed in U.S. app stores run by Apple and Google.

That ruling had not, however, stopped the November 12 ban that would have blocked companies from providing internet hosting services that would have allowed TikTok to continue to operate in the U.S.

The Trump administration had moved to block the TikTok app from operating in the U.S. due to its Chinese parent company, ByteDance, claiming it was a national security threat. The core argument from the judge in this ruling was the “Government’s own descriptions of the national security threat posed by the TikTok app are phrased in the hypothetical.”

That hypothetical risk was unable to be stated by the government, the judge argued, to be such a risk that it outweighed the public interest. The interest, in this case, was the more than 100 million users of TikTok and the creators like Marland, Chambers and Rinab that utilized it to spread “informational materials,” which allowed the judge to rule that the ban would shut down a platform for expressive activity.

“We are deeply moved by the outpouring of support from our creators, who have worked to protect their rights to expression, their careers, and to help small businesses, particularly during the pandemic,” said Vanessa Pappas, Interim Global Head of TikTok, in a statement. “We stand behind our community as they share their voices, and we are committed to continuing to provide a home for them to do so,” she added.

The TikTok community coming to the rescue on this one aspect of the overall TikTok picture just elevates this whole story. Though the company has been relatively quiet through this whole process, Pappas has thanked the community several times for its outpouring of support. Though there were some initial waves of “grief” on the app with creators frantically recommending people follow them on other platforms, that has morphed over time into more of a “let’s band together” vibe. This activity coalesced around a big swell in voting advocacy on the platform, where many creators are too young to actually participate but view voting messaging as their way to participate.

TikTok has remained active in the product department through the whole mess, shipping elections guides and trying to ban QAnon conspiracy spread, even as Pakistan banned and then un-banned the app.

 

 

 

Apple launches its online store in India

For the first time in more than 20 years since Apple began its operations in India, the iPhone-maker has started selling its products directly to consumers in the world’s second largest smartphone market.

Apple launched its online store in India on Wednesday, which in addition to offering nearly the entire line-up of its products, also brings a range of services for the first time to consumers in the country. India is the 38th market for Apple where it has launched its online store.

Consumers in India can now purchase AppleCare+, which extends warranty on products, and access the trade-in program to get a discount on new hardware purchases. The company said it will also offer customers support through chat or telephone, and let users consult its team of specialists before they make a purchase. The company is also letting customers order customized versions of iMac, MacBook Air, Mac Mini and other Mac computers — something it started offline through its authorized partners only in late May in India.

The company is also offering customers the ability to pay for their purchases in monthly instalments. TechCrunch reported in January that the company was planning to open its online store in India in the quarter that ends in September. The company plans to open its first physical retail store in the country next year, it has said.

Jayanth Kolla, chief analyst at consultancy firm Convergence Catalyst, argued that the launch of the Apple’s online store in India is a bigger deal for the company than consumers in the country.

Apple typically starts investing in marketing, brand building and other investments in a market only after it launches a store there, he told TechCrunch.

Apple does oversee billboards and ads of iPhones and other products that are displayed in India, but it’s the third-party partners that are running and bankrolling them, said Kolla. “Apple might provide some marketing dollars, but those efforts are always led by their partners,” he said.

In recent years, Apple has visibly grown more interested in India, one of the world’s fastest growing smartphones markets. The company’s contract manufacturers today locally assemble the latest generation of iPhone models and some accessories — an effort the company kickstarted two years ago.

The move has allowed Apple to lower prices of some iPhone models in India, where for years the company has passed custom duty charges to customers. The starting price of iPhone 11 Pro Max is $1,487 in India, compared to $1,099 in the U.S. (It started to assemble some iPhone 11 models in India only recently.) The AirPods Pro, which sells at $249 in the U.S., was made available in India at $341 at the time of launch.

Apple has also been trying to open its store in India for several years, but local regulations made it difficult for the company to expand in the country. But in recent quarters, India has eased many of its regulations. Last year, New Delhi eased sourcing norms for single-brand retailers, paving the way for companies like Apple to open online stores before they set up presence in the brick-and-mortar market.

This year, India also launched a $6.6 billion incentive program aimed at boosting the local smartphone manufacturing. South Korean giant Samsung, and Apple’s contract manufacturing partners Foxconn, Wistron and Pegatron among others have applied for the incentive program.

Unlike most foreign firms that offer their products and services for free in India or at some of the world’s cheapest prices, Apple has focused entirely on a small fraction of the population that can afford to pay big bucks, Kolla said. And that strategy has worked fine for the company, Kolla argued. Apple commands the segment of premium smartphones in India.

That’s not to say that Apple has not made some changes to its price strategy for India. The monthly cost of Apple Music is $1.35 in India, compared to $9.99 in the U.S. Its Apple One bundle, which includes Apple Music, TV+, Arcade, and iCloud, costs $2.65 a month in India.

Some Apple customers say that even as they prefer the iPhone-maker’s ecosystem of products over Android makers’ offerings, they wish Apple made more of its services available in the country. A range of Apple services including Apple News and Apple Pay are still not available in India.

The launch of Apple’s online store in India comes weeks before the company is expected to unveil the new-generation iPhone models and a month before the festival of Diwali, which sees hundreds of millions of Indians spend lavishly.

Apple will launch its online store in India next week

Apple will launch its online store in India on September 23, bringing a range of services directly to customers in the world’s second largest smartphone market for the first time in over 20 years since it began operations in the country.

The company, which currently relies on third-party online and offline retailers to sell its products in India, said its online store will offer AppleCare+, which extends the warranty on its hardware products by up to two years, as well as a trade-in program to let customers access discounts on purchase of new iPhones by returning previous models. These programs were previously not available in India. Customers will also be able to buy Macs with custom configuration

“We know our users are relying on technology to stay connected, engage in learning, and tap into their creativity, and by bringing the Apple Store online to India, we are offering our customers the very best of Apple at this important time,” said Deirdre O’Brien, Apple’s senior vice president of Retail + People, in a statement.

TechCrunch reported in January that the iPhone-maker was planning to launch its online store in India in Q3 this year. A month later, Apple CEO Tim Cook confirmed the development, adding that Apple will also launch its first physical store in the country next year.

On its website, Apple says it also plans to offer financing options to customers in India, and students will receive additional discounts on Apple products and accessories. Starting next month, it will also let customers check out free online sessions on music and photography from professional creatives. And if they wish, they can engrave emoji or text on their AirPods in several Indian languages.

The launch of the online store will mark a new chapter in Apple’s business in India, where about 99% of the market is commanded by Android smartphones. The iPhone-maker has become visibly more aggressive in India in recent years. In July, the company’s contract manufacturing partner (Foxconn) began assembling the iPhone 11 in India. This was the first time the company was locally assembling a current-generation iPhone model in the country.

Assembling handsets in India enables smartphone vendors — including Apple — to avoid roughly 20% import duty that the Indian government levies on imported electronics products. Lowering the cost of its products is crucial for Apple in India, which already sells several of its services including Apple Music and TV+ at record-low price in the country.

The starting price of iPhone 11 Pro Max is $1,487 in India, compared to $1,099 in the U.S. The AirPods Pro, which sells at $249 in the U.S., was made available in India at $341 at the time of launch.

We know how important it is for our customers to stay in touch with those they love and the world around them. We can’t wait to connect with our customers and expand support in India with the Apple Store online on September 23! 🇮🇳https://t.co/UjR31jzEaY

— Tim Cook (@tim_cook) September 18, 2020

Apple’s new Fitness+ feature might make Peloton sweat

Apple's new Fitness+ feature might make Peloton sweat

Apple has just announced Fitness+, a kind of Netflix for exercise videos that also monitors your personal metricsPeloton is probably sweating, and not in a good way.

Revealed at today’s Apple event, Fitness+ lets you watch workouts on your iPhone, iPad, or Apple TV while your Apple Watch records your heart rate and calories burned. These metrics will be displayed up on your screen in real time, though you can turn them off if you want to enjoy your workout without fretting about analytics. Fitness+ will also display Apple’s familiar Activity rings, complete with fireworks animation when you close one. Read more…

More about Apple, Exercise, Apple Watch, Peloton, and Fitness

Apple ordered to not block Epic Games’ Unreal Engine, but Fortnite to stay off App Store

A district court denied Epic Games’ motion to temporarily restore Fortnite game to the iOS App Store, but also ordered Apple to not block the gaming giant’s ability to provide and distribute Unreal Engine on the iPhone-maker’s ecosystem in a mixed-ruling delivered Monday evening.

U.S. District Court Judge Yvonne Gonzalez Rogers said Apple can’t retaliate against Epic Games by blocking the gaming firm’s developer accounts or restrict developers on Apple platforms from accessing Unreal Engine. 

“The record shows potential significant damage to both the Unreal Engine platform itself, and to the gaming industry generally, including on both third-party developers and gamers,” she said.

But the ruling was not a complete win for Epic Games, which had also requested the sleeper hit title Fortnite to be restored on the iOS App Store. Rogers said the game will remain off the App Store unless Epic Games attempted to bring it back in accordance with App Store guidelines. 

More to follow…

Microsoft backs Epic Games, says Apple is threatening game development

Microsoft backs Epic Games, says Apple is threatening game development

Microsoft has inserted itself into the ongoing legal dispute between Apple and Epic Games, and the Xbox company is lining up behind the Unreal Engine.

Unreal, which is Epic’s creation, is a set of software tools (often referred to as an “engine”) that developers use to build video games. Epic confirmed on Monday that Apple will cut the company off from iOS and MacOS development tools on Aug. 28. That spurred a response from Microsoft.

On Sunday, Microsoft filed a statement with the U.S. District Court in Oakland, Calif. claiming that Apple’s move to cut off Epic threatens a sizable community of creators that have no connection to the ongoing litigation. Read more…

More about Apple, Microsoft, Epic Games, Fortnite, and Entertainment

Hackers release a new jailbreak that unlocks every iPhone

A renowned iPhone hacking team has released a new “jailbreak” tool that unlocks every iPhone, even the most recent models running the latest iOS 13.5.

For as long as Apple has kept up its “walled garden” approach to iPhones by only allowing apps and customizations that it approves, hackers have tried to break free from what they call the “jail,” hence the name “jailbreak.” Hackers do this by finding a previously undisclosed vulnerability in iOS that break through some of the many restrictions that Apple puts in place to prevent access to the underlying software. Apple says it does this for security. But jailbreakers say breaking through those restrictions allows them to customize their iPhones more than they would otherwise, in a way that most Android users are already accustomed to.

The jailbreak, released by the unc0ver team, supports all iPhones that run iOS 11 and above, including up to iOS 13.5, which Apple released this week.

Details of the vulnerability that the hackers used to build the jailbreak aren’t known, but it’s not expected to last forever. Just as jailbreakers work to find a way in, Apple works fast to patch the flaws and close the jailbreak.

Security experts typically advise iPhone users against jailbreaking, because breaking out of the “walled garden” vastly increases the surface area for new vulnerabilities to exist and to be found.

The jailbreak comes at a time where the shine is wearing off of Apple’s typically strong security image. Last week, Zerodium, a broker for exploits, said it would no longer buy certain iPhone vulnerabilities because there were too many of them. Motherboard reported this week that hackers got their hands on a pre-release version of the upcoming iOS 14 release several months ago.

iPhone sales may be down, but business is booming for Apple Music and the App Store

iPhone sales may be down, but business is booming for Apple Music and the App Store

Consumers aren’t rushing to buy as many iPhones, iPads, or other Apple products as before the pandemic, but the company’s services seem to be doing just fine. 

During Thursday’s earnings call, Apple disclosed that its services category, which includes the App Store and Apple TV+, hit an all-time revenue record of $13.3 billion for the second quarter.

The company saw strong performance within the App Store (for both downloads and search ads), Apple Music, video, and cloud services. App Store revenue also grew by double digits, as people continue to make in-app purchases and opt into subscriptions.  Read more…

More about Apple, Ipad, App Store, Macbook Air, and Revenue

Apple has sourced over 20 million protective masks, now building and shipping face shields

As it mobilizes its supply chain, employees, and partners to provide personal protective equipment to medical workers and others working to stop the spread of the COVID-19 epidemic, Apple has sourced over 20 million face masks and is now building and shipping face shields, according to a statement from chief executive Tim Cook.

Apple is dedicated to supporting the worldwide response to COVID-19. We’ve now sourced over 20M masks through our supply chain. Our design, engineering, operations and packaging teams are also working with suppliers to design, produce and ship face shields for medical workers. pic.twitter.com/3xRqNgMThX

Tim Cook (@tim_cook) April 5, 2020

The company is working with governments around the world to distribute its supply of face masks to where it’s needed most.

Meanwhile, the first delivery of the company’s Apple face shields went out to Kaiser hospital facilities in the Santa Clara valley earlier this week, according to Cook.

As Cook noted, the masks pack flat and ship 100 to a box. They can be assembled in less than two minutes and are fully adjustable. Cook said that the company would ship 1 million by the end of the week and will expect to ship an additional 1 million face shields weekly, with a goal to expand distribution beyond the U.S. 

“For Apple this is a labor of love and gratitude and we will share more of our efforts over time,” Cook said. 

Apple is joining an effort that several 3D printing startups and maker facilities have already spent time working on.

In Canada, INKSmith, a startup that was making design and tech tools accessible for kids, has now moved to making face shields and is hiring up to 100 new employees to meet demand.

“I think in the short term, we’re going to scale up to meet the needs of the province soon. After that, we’re going to meet the demands of Canada,” INKSmith CEO Jeremy Hedges told the Canadian news outlet Global News.

3D-printing companies like Massachusetts-based Markforged and Formlabs and Brooklyn’s Voodoo Manufacturing are all making personal protective equipment like face shields in the US.

Apple TV+ joins Netflix in reducing European streaming quality

Apple TV+ joins Netflix in reducing European streaming quality

Europeans quarantined at home will be riding out the coronavirus pandemic in low-res.

Apple TV+ has joined the likes of Netflix, Amazon Prime, and other streaming giants this week in downgrading streaming video quality across the continent in an apparent effort to reduce strain on the internet. 

We reached out to Apple, which confirmed the move, in an attempt to determine when the decision was made, how long it will last, which specific countries or regions are affected, and how degraded the streaming quality is. The company did not respond to any of our specific questions. 

9to5Mac reported that European customers are seeing resolutions “as low as 670 pixels tall” — a far cry from the service’s oft-touted 4K. Mashable is unable to independently confirm 9to5Mac’s reporting, however, there are Twitter accounts echoing the low-resolution claims.  Read more…

More about Apple, Streaming, Appletv, Coronavirus, and Tech

Workers at America’s largest companies are not covered under coronavirus aid package

Workers at America’s largest companies are not covered under a bill passed by the House of Representatives on Friday that is supposed to support American workers impacted by the spread of the novel coronavirus.

The bill still has to be voted on by the Senate and approved before it can be signed into law, but its structure leaves a gaping hole in the prevention strategy the government has said is necessary to reduce the COVID-19 outbreak in the US.

“No American worker should worry about missing a paycheck if they’re feeling ill,” said Vice President Mike Pence at the Sunday press briefing from the Coronavirus Task Force. “If you’re sick with a respiratory illness stay home.”

However, millions of Americans potentially don’t have the ability to make that choice under the congressional aid package touted by both Democrats and Republicans. By excluding companies with more than 500 employees from the Congressional aid, the health and welfare of millions of Americans in industries providing goods, manufacturing, and vital services to most of the country is being left up to the discretion of their employers.

Details of the legislative compromise were first reported by The New York Times yesterday. And chart published by The New York Times illustrated just how many companies didn’t have paid sick leave policies in place as the coronavirus began to spread in the US (companies have changed policies to respond to the coronavirus).

Image courtesy of The New York Times

Big technology companies took the lead early this month in changing policies for their workers and by the end of last week many of the country’s largest employers had followed suit. But it looks like their work won’t be covered under the government’s current plan — and that any measures to extend sick leave and paid time off will be limited to a response to the current outbreak.

These large employers have already responded by closing stores or reducing hours in areas where most cases of the novel coronavirus have been diagnosed — and companies operating in most of those states are required by law to offer paid leave to their hourly employees and contractors.

Companies who have responded to the outbreak by changing their time-off and sick leave policies include Walmart, Target, Darden Restaurants (the owner of the Olive Garden restaurant chain), Starbucks, Lowes, and KFC, have joined tech companies and gig economy businesses like Alphabet (the parent company of Google), Amazon, Apple, Facebook, Instacart, Microsoft, Postmates, Salesforce, and Uber in offering extended leave benefits to employees affected by the coronavirus.

These kinds of guarantees can go a long way to ensuring that hourly workers in the country don’t have to choose between their health and their employment. The inability to pass a law that would cover all workers puts everyone at risk.

Without government stepping in, industries are crafting their own responses. Late Sunday, automakers including GM, Ford, and FiatChrysler joined the United Auto Workers union in announcing the creation of a coronavirus task force to coordinate an industrywide response for the automotive sector.

As the Pew Research Center noted last week, the bill proposed by House Democrats had initially proposed temporary federal sick leave covering workers with COVID-19 or caring for family members with two-thirds of their wages for up to three months; expiring in January 2021. The measure would have also guaranteed private employers give workers seven days of paid sick leave with another 14 days available immediately in the event of future public health emergencies.

Most workers have less than nine days of sick leave covered under current state legislation. There is no national mandate for paid sick leave. After one year on the job, 22 percent of workers have access to less than five days, while another 46 percent of employees can get five-to-nine days of paid sick leave. Only 38 percent of workers have between ten and fourteen days of leave.

The Pew Research Center also reported that the lack of access to paid sick leave increases as wages decline. Over 90 percent of workers receiving hourly rages over $32.21 have some form of paid sick leave. Only about 50 percent of workers who make $13.80 or less have access to some form of paid sick leave. For Americans who make under $10.80 an hour, only about 30 percent receive any sick leave.

How big tech is taking on COVID-19

Over the past week, one thing has become painfully clear for U.S. residents: COVID-19 is going to permeate every aspect of our lives for a long time to come. Those of us in and around tech have been noticing this for months now. First through the impact on our friends and colleagues in Asia, who have been facing fallout from the pandemic head-on for some time, and then through the domino effect on tech conferences.

First there was MWC, then Facebook’s F8, E3, WWDC. The list goes on and on. Yesterday, TechCrunch announced that we would be postponing a pair of our own events. It was the right thing to do, and increasingly not really a choice, to be honest, as more and more cities have banned large gatherings.

Tech has been keenly aware of COVID-19’s impact for a while now because being a tech company is being a global company almost by default. Now, however, the virus’s threat has come to nearly everyone’s back door. If you don’t yet know someone who has been infected with the virus, odds are good you will soon. This is our reality, for now, at least.

If there’s hope to be mustered from this event, it’s in the prospect of people helping people. Coming together, separately, at a safe social distance. The response of the current administration leaves much to be desired at the moment. As yesterday’s press conference involved praise of the “private sector” and a parade of high profile executives, the reality is that many of us may have to rely on corporates and execs to help fill in the gaps of gutted government departments.

There will be plenty of time to call out the inevitable opportunism of corporate America (and it looks like I’m going to have a lot more free time on my hands in the coming months to do exactly that), but for now, let’s note some of the folks who are pitching in by donating supplies or easing some of the burden on a strained and uncertain population.

Alibaba co-founder Jack Ma today released a statement noting plans to donate 500,000 test kits and one million face masks. The donation follows similar ones to Japan and Europe, following the devastating impact on his own country.

“Drawing from my own country’s experience, speedy and accurate testing and adequate personal protective equipment for medical professionals are most effective in preventing the spread of the virus,” Ma said in a statement. “We hope that our donation can help Americans fight against the pandemic!”

Yesterday, Zoom CEO Eric Yuan announced that his video conferencing platform would be available for free to K-12 schools in Japan, Italy and the U.S. The move comes as the service is seeing a massive spike in downloads as many businesses and schools are attempting to adapt to working and learning remotely.

Earlier this week, Bill Gates, who recently left his position on Microsoft’s board, announced the Bill & Melinda Gates Foundation was teaming up with Wellcome and Mastercard to fund treatments to the tune of $125 million. Yesterday, Facebook announced it was committing $20 million in donations to support relief efforts. Apple announced a similar $15 million in donations, along with letting customers skip the March payment on their Apple Cards without risking interest payments. IPS like AT&T, Charter, CenturyLink, Comcast, T-Mobile, Verizon, Sprint and Cox, meanwhile, have promised not to overcharge, charge late fees or terminate service, in an attempt to keep people connected.

Likely we’ll continue to see more such announcements in the coming weeks and months as companies struggle with impact to their workforces and bottom lines. Some will no doubt be more crass that others, but there’s little doubt that such gestures will be a big part of our ability to emerge from one of the scariest and most surreal moments in recent memory.

Apple punishes facial recognition company Clearview AI for ignoring developer rules

Apple punishes facial recognition company Clearview AI for ignoring developer rules

Clearview AI’s week keeps getting worse. 

Apple has suspended the controversial facial recognition company’s iOS developer account following a report from Buzzfeed News that Clearview AI was in violation of Apple’s Enterprise Developer Program rules.

As a result, Apple has disabled Clearview AI’s iOS app, giving the company 14 days to respond to Apple’s claim. 

Specifically, Apple’s rules state that companies “may not use, distribute or otherwise make Your Internal Use Applications available to any third parties in any way.” 

Buzzfeed’s report found that Clearview AI was doing exactly that by “encouraging” its clients to download the iOS app in violation of that rule.  Read more…

More about Apple, Ios, Facial Recognition, Clearview Ai, and Tech

Week in Review: Forget cord cutting, here comes the stream slashing

Hey everyone, welcome back to Week in Review where I dive deep into a bit of news from the week or just share some thoughts and go over some of the more interesting stories of the week.

If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here.


The big story

“Cord cutting” might still be a major trend for those walking away from cable subscriptions in favor of online streaming services, but the world of online subscription TV is nearly saturated and as 2020 prepares to inundate us with more services, it’s likely growing time for consumers to stop adding services and start prioritizing.

NBCUniversal delivered some more details this week on its Peacock network and earlier this month we heard more about the mobile-only streaming network Quibi . These launches will come along in the spring, arriving just months after the high-profile launches on Apple TV+ and Disney+. Adding four high-spend streaming platforms in a short time frame could rattle the cages of consumers that have been bumbling along with only a couple streaming service subscriptions.

NBCUniversal’s Peacock seems to walk the line between both worlds, leveraging Comcast subscribers without seeming to invest heavily in original content for the service. Their strategy is pinned on the attractiveness of their existing content library which they’re promoting heavily on both free and paid plans. There could be something here, it feels like a marked return to the early Hulu playbook, which could very well be played out.

I still don’t know what to think of Quibi. They are dropping plenty of cash but spending your way into building a Gen Z network seems like a tall order. They’ve already nabbed a big partnership with T Mobile which seems promising when considering their broader industry adoption and yet it still seems like Snapchat Discover Prime. I’ll withhold judgment until launch but other mobile-first video networks have had less than stellar receptions.

Side note: At this point in the streaming video product life cycle, I would imagine cracking down on password-sharing is going to start being a more attractive option for streaming service operators.

We’ll see how this all shakes out, but it’s getting crowded.

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Visa buys Plaid for $5.2 billion
    The biggest acquisition of the week was the very bold purchase of Plaid by Visa. Visa paid up double the banking API startup’s last private valuation. Read more here.
  • Google acquires Pointy
    Google has announced a couple deals in the past few weeks. This week, we heard that they had acquired the Dublin startup Pointy, which builds hardware and software to help physical retailers track product inventory levels. Read more about it in our coverage.
  • Alphabet is a $1 trillion company
    In the current age of big tech, there’s an elite club for public companies worth more than $1 trillion in market cap. This week, Alphabet joined its ranks. Read more here.

Extra Crunch

Our premium subscription business had another great week of content. My colleague Darrell Etherington talked a bit about the next frontier of early-stage space investments.

Space Angels’ Chad Anderson on entering a new decade in the ‘entrepreneurial space age’

“Space as an investment target is trending upwards in the VC community, but specialist firm Space Angels has been focused on the sector longer than most. The network of angel investors just published its most recent quarterly overview of activity in the space startup industry, revealing that investors put nearly $6 billion in capital into space companies across 2019.…”

Sign up for more newsletters, including my colleague Darrell Etherington’s new space-focused newsletter Max Q, here.

Waymo’s Anca Dragan and Ike Robotics CTO Jur van den Berg are coming to TC Sessions: Robotics+AI

The road to “solving” self-driving cars is riddled with challenges, from perception and decision making to figuring out the interaction between humans and robots.

Today we’re announcing that joining us at TC Sessions: Robotics+AI on March 3 at UC Berkeley are two experts who play important roles in the development and deployment of autonomous vehicle technology: Anca Dragan and Jur van den Berg.

Dragan is an assistant professor in UC Berkeley’s electrical engineering and computer sciences department, as well as a senior research scientist and consultant for Waymo, the former Google self-driving project that is now a business under Alphabet. She runs the InterACT Lab at UC Berkeley, which focuses on algorithms for human-robot interaction. Dragan also helped found, and serves on, the steering committee for the Berkeley AI Research Lab, and is co-PI of the Center for Human-Compatible AI.

Last year, Dragan was awarded the Presidential Early Career Award for Scientists and Engineers.

Van den Berg is the co-founder and CTO of Ike Robotics, a self-driving truck startup that last year raised $52 million in a Series A funding round led by Bain Capital  Ventures. Van den Berg has been part of the most important, secretive and even controversial companies in the autonomous vehicle technology industry. He was a senior researcher and developer in Apple’s special projects group, before jumping to self-driving trucks startup Otto. He became a senior autonomy engineer at Uber after the ride-hailing company acquired Otto .

All of this led to Ike, which was founded in 2018 with Nancy Sun and Alden Woodrow, who were also veterans of Apple, Google and Uber Advanced Technologies Group’s self-driving truck program.

TC Sessions: Robotics+AI returns to Berkeley on March 3. Make sure to grab your early-bird tickets today for $275 before prices go up by $100. Students, grab your tickets for just $50 here.

Startups, book a demo table right here and get in front of 1,000+ of Robotics/AI’s best and brightest — each table comes with four attendee tickets.

Tech’s biggest companies are worth ~$5T as 2019’s epic stock market run wraps

Look, this is the last post I’m writing in 2019 and I’m tired. But I can’t let the year close without taking stock of how well tech stocks did this year. It was bonkers.

So let’s mark the year’s conclusion with some notes for our future selves. Yes, we know that the Nasdaq has been setting new records and SaaS had a good year. But we need to dig in and get the numbers out so that we can look back and remember.

Let’s cap off this year the way it deserves to be remembered, as a kick-ass trip ’round the sun for your local, public technology company.

Keeping score

We’ll start with the indices that we care about:

  • The tech-heavy Nasdaq Composite rose 35% in 2019
  • The SaaS-heavy Bessemer Cloud Index rose 41% this year

Next, the highest-value U.S.-based technology companies:

  • Microsoft was up around 55% in 2019
  • Apple managed an 86% gain in the year
  • Not be left out, Facebook rose 57%
  • Amazon posted its own gain of 23% in 2019
  • Alphabet managed to grow by 29%, as well

Now let’s turn to some companies that we care about, even if they are smaller than the Big Five:

  • Salesforce? Up 19% this year
  • Adobe was up 46% in 2019, which was astounding
  • Intel picked up 28% in the year, making it no slouch
  • Even Oracle managed to gain 17% in 2019

And so on.

The technology industry’s epic run has been so strong that The Wall Street Journal noted this morning that, powered by tech companies, U.S. stocks “are poised for their best annual performance in six years.” The Journal highlighted the performance of Apple and Microsoft in particular for helping drive the boom. I wonder why.

How long will we live in the neighborhood of Nasdaq 9,000? How long can two tech companies be worth more than $1 trillion at the same time? How long can the biggest tech companies be worth a combined $4.93 trillion (I remember when $3 trillion for the Big Five was news, and I recall when the group reach a collective value of $4 trillion).1

But the worst trade in recent years has been the pessimists’ gambit. No matter what, stocks have kept going up, short-term hiccoughs and other missteps aside.

For nearly everyone, that is. While tech stocks in general did very well, some names that we all know did not. Let’s close on those reminders that a rising tide lifts only most boats.

2019 naughty list

Several of the most lackluster public tech companies were 2019 technology IPOs, interestingly enough. Who didn’t do well? Uber earns a spot on the naughty list for not only being underwater from its IPO price, but also from its final private valuations. And as you guessed, Lyft is down from its IPO price as well, which is not good.

Some 2019 IPOs did well in the middle of the year, but fell a little flat as the year came to a close. Pinterest, Beyond Meat and Zoom meet that criteria, for example. And some SaaS companies struggled, even if we think they will reach $1 billion in revenue in time.

But it was mostly a party. The public markets were good, and tech stocks were great. This helped create another 100+ unicorns in the year.

Such was 2019. On to 2020!

  1. In time, those numbers will look small. But sitting here on December 31, 2019, they appear huge and towering and, it must be said, somewhat perilously stacked.

Who will the winners be in the future of fintech?

Nik Milanovic
Contributor

Nik Milanovic is a fintech and financial inclusion enthusiast, with a decade of work across mobile payments, online lending, credit and microfinance.

So what happens when fintech ‘brings it all together’? In a world where people access their financial services through one universal hub, which companies are the best-positioned to win? When open data and protocols become the norm, what business models are set to capitalize on the resulting rush of innovation, and which will become the key back-end and front-end products underpinning finance in the 2020s?

It’s hard to make forward-looking predictions that weather a decade well when talking about the fortunes of individual companies. Still, even if these companies run into operating headwinds, the rationale for their success will be a theme we see play out over the next ten years.

Here are five companies positioned to win the 2020s in fintech:

1. Plaid

In 2014, I met Zach Perret and Carl Tremblay when they reached out to pitch Funding Circle on using Plaid to underwrite small and medium businesses with banking data. At the time, I couldn’t understand how a bank account API was a valuable business.

Plaid’s Series C round in 2018 came with a valuation of $2.65 billion, which caught a lot of people in fintech off-guard. The company, which had been modestly building financial services APIs since 2012, recently crossed the threshold of 10 billion transactions processed since inception.

For those unfamiliar with Plaid’s business model, it operates as the data exchange and API layer that ties financial products together. If you’ve ever paid someone on Venmo or opened a Coinbase account, chances are you linked your bank account through Plaid. It’s possible in 2020 to build a range of powerful financial products because fintechs can pull in robust data through aggregator services like Plaid, so a bet on the fintech industry is, in a sense, a derivative bet on Plaid.

Those 10 billion transactions, meanwhile, have helped Plaid understand the people on its’ clients fintech platforms. This gives it the data to build more value-added services on top of its transactions conduit, such as identity verification, underwriting, brokerage, digital wallets… the company has also grown at a breakneck pace, announcing recent expansions into the UK, France, Spain, and Ireland.

As banks, entrepreneurs, and everyone in-between build more tailored financial products on top of open data, those products will operate on top of secure, high-fidelity aggregators like Plaid.

The biggest unknown for aggregators like Plaid is whether any county debuts a universal, open-source financial services API that puts pricing pressure on a private version. However, this looks like a vanishingly remote possibility given high consumer standards for data security and Plaid’s value-added services.

2. Stripe

Predicting Stripe’s success is the equivalent of ‘buying high,’ but it is hard to argue against Stripe’s pole position over the next fintech decade. Stripe is a global payments processor that creates infrastructure for online financial transactions. What that means is: Stripe enables anyone to accept and make payments online. The payment protocol is so efficient that it’s won over the purchase processing business of companies like Target, Shopify, Salesforce, Lyft, and Oxfam.

Processing the world’s payments is a lucrative business, and one that benefits from the joint tailwinds of the growth of ecommerce and the growth of card networks like Visa and Mastercard. As long as more companies look to accept payment for services in some digital form, whether online or by phone, Stripe is well-positioned to be the intermediary.

The company’s success has allowed Stripe to branch into other services like Stripe Capital to lend directly to ecommerce companies based off their cashflow, or the Stripe Atlas turnkey tool for forming a new business entirely. Similar to Plaid, Stripe has a data network effects business, which means that as it collects more data by virtue of its transaction-processing business, it can leverage this core competency to launch more products associated with that data.

The biggest unknown for Stripe’s prospects is whether open-source payment processing technology gets developed in a way that puts price pressure on Stripe’s margins. Proponents of crypto as a medium of exchange predict that decentralized currencies could have such low costs that vendors are incentivized to switch to them to save on the fees of payment networks. However, in such an event Stripe could easily be a mercenary, and convert its processing business into a free product that underpins many other more lucrative services layered on-top (similar to the free trading transition brought about by Robinhood).

Apple and Spotify’s podcasts come to Echo devices in the US

Amazon Alexa can now play podcasts from Apple, making Amazon’s line of Echo devices the first third-party clients to support the Apple Podcasts service without using AirPlay. Before, this level of support was limited to Apple’s HomePod. According to Amazon, the addition brings to Alexa devices Apple’s library of more than 800,000 podcasts. It also allows customers to set Apple Podcasts as their preferred podcast service.

The move is the latest in a series of partnerships between the two rivals, which also included the launch of the Apple TV app on Amazon’s Fire TV platform, as well as the launch of Apple Music on Echo devices and Fire TV. Amazon, in response, has expanded its assortment of Apple inventory to include Apple TV, iPad, iPhone, Apple Watch and more.

To get started, Apple users who want to stream from Apple Podcasts will first need to link their Apple ID in the Alexa app. Customers can then ask Alexa to play or resume the podcasts they want to hear. Other player commands, like “next” or “fast forward,” work, too. And as you move between devices, your progress within each episode will also sync, which means you can start listening on Alexa, then pick up where you left off on your iPhone.

In the Alexa app’s Settings, users will also be able to specify Apple Podcasts as their default player, which means any time they ask Alexa for a podcast without indicating a source, it will stream from the Apple Podcasts service.

Not to be outdone, Spotify also today announced its support for streaming podcasts on Alexa in the U.S.

Of course, Spotify Premium users have been able to use Spotify Connect to stream to Echo before today.

But now, Spotify says that both Free and Premium U.S. customers will be able to ask Alexa for podcasts as well as set Spotify as their default player.

Alexa’s support for Spotify podcasts was actually announced in September (alongside other news) at Amazon’s annual Alexa event in Seattle, so it’s less of a surprise than the Apple addition.

At the time, Amazon said it was adding support for Spotify’s podcast library in the U.S., which would bring “hundreds of thousands” of podcasts to Alexa devices. That also includes Spotify’s numerous exclusive podcasts — something that will give Echo users a reason to set Spotify as their default, perhaps.

Shortly after that announcement, Spotify said its free service would also now stream to Alexa devices, instead of only its paid service for Premium subscribers.

Claim your free Apple AirPods with selected deals on Carphone Warehouse

TL;DR: You can claim a free set of Apple AirPods with a non-wireless charging case when you purchase selected iPhones on Carphone Warehouse.


Apple Airpods are just about as cool as it gets, and the street cred that comes with these little earbuds is off the scale.

Of course these little devices wouldn’t be so popular if it was all about the look and not about how they actually work. AirPods combine intelligent design with breakthrough technology to produce crystal clear sound. They are also powered by the new Apple H1 headphone chip, and feature hands-free access to Siri using just your voice. Sure they are stylish but they’re also pretty advanced. Read more…

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Apple’s China stance makes for strange political alliances, as AOC and Ted Cruz slam the company

In a rare instance of bipartisanship overcoming the rancorous discord that’s been the hallmark of the U.S. Congress, senators and sepresentatives issued a scathing rebuke to Apple for its decision to take down an app at the request of the Chinese government.

Signed by Senators Ron Wyden, Tom Cotton, Marco Rubio, Ted Cruz, and Congressional Representatives Alexandria Ocasio-Cortez, Mike Gallagher and Tom Malinowski, the letter was written to “express… strong concern about Apple’s censorship of apps, including a prominent app used by protestors in Hong Kong, at the request of the Chinese government.”

Tim Cook gets a letter from @RonWyden @SenTomCotton @marcorubio @AOC @tedcruz @RepGallagher & @Malinowski re: China censorship. pic.twitter.com/dJlEAlheMX

— Jessica Smith (@JessicaASmith8) October 18, 2019

In 2019, it seems the only things that can unite America’s clashing political factions are the decisions made by companies in one of its most powerful industries.

At the heart of the dispute is Apple’s decision to take down an app called HKMaps that was being used by citizens of the island territory to track police activity.

For several months protestors have been clashing with police in the tiny territory over what they see as the undue influence being exerted by China’s government in Beijing over the governance of Hong Kong. Citizens of the former British protectorate have enjoyed special privileges and rights not afforded to mainland Chinese citizens since the United Kingdom returned sovereignty over the region to China on July 1, 1997.

“Apple’s decision last week to accommodate the Chinese government by taking down HKMaps is deeply concerning,” the authors of the letter wrote. “We urge you in the strongest terms to reverse course, to demonstrate that Apple puts values above market access, and to stand with the brave men and women fighting for basic rights and dignity in Hong Kong.”

Apple has long positioned itself as a defender of human rights (including privacy and free speech)… in the United States. Abroad, the company’s record is not quite as spotless, especially when it comes to pressure from China, which is one of the company’s largest markets outside of the U.S.

Back in 2017, Apple capitulated to a request from the Chinese government that it remove all virtual private networking apps from the App Store. Those applications allowed Chinese users to circumvent the “Great Firewall” of China, which limits access to information to only that which is approved by the Chinese government and its censors.

Over 1,100 applications have been taken down by Apple at the request of the Chinese government, according to the organization GreatFire (whose data was cited in the Congressional letter). They include VPNs, and applications made for oppressed communities inside China’s borders (like Uighurs and Tibetans).

Apple isn’t the only company that’s come under fire from the Chinese government as part of their overall response to the unrest in Hong Kong. The National Basketball Association and the gaming company Blizzard have had their own run-ins resulting in self-censorship as a result of various public positions from employees or individuals affiliated with the sports franchises or gaming communities these companies represent.

However, Apple is the largest of these companies, and therefore the biggest target. The company’s stance indicates a willingness to accede to pressure in markets that it considers strategically important no matter how it positions itself at home.

The question is what will happen should regulators in the U.S. stop writing letters and start making legislative demands of their own.

Inside the new Apple Fifth Avenue: It’s more than just a redesign

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To most everybody, Apple’s iconic Fifth Avenue store is just a store — a physical retail space to sell shiny new iPhones, iPads, MacBooks and more.

Its grand reopening on Sept. 20 — timed with the launch of the iPhone 11 and iPhone 11 Pro — at 8 a.m. ET is nothing to get excited about.

It’s a store, not a revolutionary new Apple product that changes the world. It exists to take your dollars in exchange for products.

But Apple Fifth Avenue is more than just a store to me. 

The massive aluminum-covered lair became a haven for creativity, due in part to the many people who listened to music on iPods, edited video with iMovie on an iMac, or made music in GarageBand with no intention of buying anything.  Read more…

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iPhone 11 review: More ‘pro’ than it looks

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Every product here is independently selected by Mashable journalists. If you buy something featured, we may earn an affiliate commission which helps support our work.

The iPhone 11 Pro and 11 Pro Max dominated the spotlight this year, but the iPhone 11 is the better value.

Starting at $699 — $300 less than the iPhone 11 Pro, which starts at $999 — you might think Apple cut a lot of corners with the iPhone 11. That’s simply not true.

Like the iPhone XR was to the iPhone XS, the iPhone 11 has nearly every meaningful feature the iPhone 11 Pros have: the most powerful performance in any smartphone, a new ultra wide camera, night mode for better low-light photography, longer battery life than the previous generation, and all of the new features in iOS 13 such as dark mode and a redesigned Photos app. Read more…

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Malicious websites were used to secretly hack into iPhones for years, says Google

Security researchers at Google say they’ve found a number of malicious websites which, when visited, could quietly hack into a victim’s iPhone by exploiting a set of previously undisclosed software flaws.

Google’s Project Zero said in a deep-dive blog post published late on Thursday that the websites were visited thousands of times per week by unsuspecting victims, in what they described as an “indiscriminate” attack.

“Simply visiting the hacked site was enough for the exploit server to attack your device, and if it was successful, install a monitoring implant,” said Ian Beer, a security researcher at Project Zero.

He said the websites had been hacking iPhones over a “period of at least two years.”

The researchers found five distinct exploit chains involving 12 separate security flaws, including seven involving Safari, the in-built web browser on iPhones. The five separate attack chains allowed an attacker to gain “root” access to the device — the highest level of access and privilege on an iPhone. In doing so, an attacker could gain access to the device’s full range of features normally off-limits to the user. That means an attacker could quietly install malicious apps to spy on an iPhone owner without their knowledge or consent.

Google said based off their analysis, the vulnerabilities were used to steal a user’s photos and messages as well as track their location in near-realtime. The “implant” could also access the user’s on-device bank of saved passwords.

The vulnerabilities affect iOS 10 through to the current iOS 12 software version.

Google privately disclosed the vulnerabilities in February, giving Apple only a week to fix the flaws and roll out updates to its users. That’s a fraction of the 90 days typically given to software developers, giving an indication of the severity of the vulnerabilities.

Apple issued a fix six days later with iOS 12.1.4 for iPhone 5s and iPad Air and later.

Beer said it’s possible other hacking campaigns are currently in action.

The iPhone and iPad maker in general has a good rap on security and privacy matters. Recently the company increased its maximum bug bounty payout to $1 million for security researchers who find flaws that can silently target an iPhone and gain root-level privileges without any user interaction. Under Apple’s new bounty rules — set to go into effect later this year — Google would’ve been eligible for several million dollars in bounties.

When reached, a spokesperson for Apple declined to comment.

Apple’s three 2020 iPhones will all reportedly be 5G-ready

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Get your salt shakers ready; it’s time to talk about future Apple products.

Sagacious Apple analyst Ming-Chi Kuo is expecting three new iPhones in 2020, and he’s saying they’ll all be wired for 5G support. The detail comes from an investor note obtained by MacRumors so it’s not exactly straight from Apple, but Kuo is a highly regarded analyst.

He had previously said back in June that two of the three expected iPhone models would be 5G-ready, so this is really more of an update to that earlier note. There’s a few reasons key reasons for the update.

The first is tied to a bit of fresh Apple news: the iPhone maker only recently acquired Intel’s modem business, which Mashable’s Karissa Bell already identified as a major boost for cellular Apple devices.  Read more…

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SoftBank announces AI-focused second $108 billion Vision Fund with LPs including Microsoft, Apple and Foxconn

SoftBank Group announced today that it will launch its second Vision Fund with participation from Apple, Foxconn, Microsoft and other tech companies and investors. Called the Vision Fund 2, the fund will focus on AI-based technology. SoftBank said the fund’s capital has reached about $108 billion, based on memoranda of understandings. SoftBank Group’s own investment in the fund will be $38 billion.

It is worth noting that the second Vision Fund’s list of expected limited partners does not currently include any participants from the Saudi Arabia government (the first Vision Fund’s close ties to people, including Crown Prince Mohammed bin Salman, who have been implicated in the murder of journalist Jamal Khashoggi, has understandably been a major source of concern for investors, companies and human rights observers).

But SoftBank Group also said is still in discussions with other participants and that the total amount of the fund is expected to increase. The full list of participants who have signed MOUs so far are: “Apple, Foxconn Technology Group, Microsoft Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., The Dai-ichi Life Insurance Company, Limited, Sumitomo Mitsui Trust Bank, Limited, SMBC Nikko Securities Inc., Daiwa Securities Group Inc., National Investment Corporation of National Bank of Kazakhstan, Standard Chartered Bank, and major participants from Taiwan.”

SoftBank’s intention to launch Vision Fund 2 was first reported earlier this week by the Wall Street Journal. The new fund is expected to decrease SoftBank’s reliance on Saudi Arabian investment and also potentially change the relationship between startups, corporate giants like Microsoft and investors.

The second Vision Fund could help SoftBank extend its position as the most influential investor globally. Through its first $97 billion Vision Fund, the giant invested in dozens of high-profile growing companies, including ride hailing giants Didi Chuxing and Grab, and India-based grocery delivery startup Grofers, payments-firm Paytm, and budget lodging startup Oyo.

The maiden Vision Fund, which was announced in October 2016 and began investing in early 2017, has earned 62% returns to date, SoftBank said last month. SoftBank, known for consistently cutting checks of $100 million and of larger sizes, has invested in 24 of 377 unicorns globally (companies with valuation of $1 billion or more), according to research firm CB Insights.

Apple disables Walkie Talkie app due to vulnerability that could allow iPhone eavesdropping

Apple has disabled the Apple Watch Walkie Talkie app due to an unspecified vulnerability that could allow a person to listen to another customer’s iPhone without consent, the company told TechCrunch this evening.

Apple has apologized for the bug and for the inconvenience of being unable to use the feature while a fix is made.

The Walkie Talkie app on Apple Watch allows two users who have accepted an invite from each other to receive audio chats via a ‘push to talk’ interface reminiscent of the PTT buttons on older cell phones.

A statement from Apple reads:

We were just made aware of a vulnerability related to the Walkie-Talkie app on the Apple Watch and have disabled the function as we quickly fix the issue. We apologize to our customers for the inconvenience and will restore the functionality as soon as possible. Although we are not aware of any use of the vulnerability against a customer and specific conditions and sequences of events are required to exploit it, we take the security and privacy of our customers extremely seriously. We concluded that disabling the app was the right course of action as this bug could allow someone to listen through another customer’s iPhone without consent.  We apologize again for this issue and the inconvenience.

Apple was alerted to the bug via its report a vulnerability portal directly and says that there is no current evidence that it was exploited in the wild.

The company is temporarily disabling the feature entirely until a fix can be made and rolled out to devices. The Walkie Talkie App will remain installed on devices, but will not function until it has been updated with the fix.

Earlier this year a bug was discovered in the group calling feature of FaceTime that allowed people to listen in before a call was accepted. It turned out that the teen who discovered the bug, Grant Thompson, had attempted to contact Apple about the issue but was unable to get a response. Apple fixed the bug and eventually rewarded Thompson a bug bounty.  This time around, Apple appears to be listening more closely to the reports that come in via its vulnerability tips line and has disabled the feature.

Earlier today, Apple quietly pushed a Mac update to remove a feature of the Zoom conference app that allowed it to work around Mac restrictions to provide a smoother call initiation experience — but that also allowed emails and websites to add a user to an active video call without their permission.

MacOS Catalina removes Dashboard, Apple’s kinda useful widget feature

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Remember widgets?

Apple has quietly killed off Dashboard, its widget app, in its forthcoming version of macOS Catalina which was announced at its WWDC yesterday.

The discovery comes from Appleosophy, who found no sign of the feature when looking through the operating system, and no option to turn it off or on.

Dashboard was first introduced in 2005 in Tiger, as widgets became something of a hot new thing to have on your computer. 

These widgets had basic functions like telling the weather, a calendar, and a calculator, but you could add on new widgets that could tell you how warm your computer was, or play the radio, for instance. Read more…

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Apple announces its 2019 Design Award winners

Apple doled out its 2019 Design Awards at its Worldwide Developer Conference this afternoon, highlighting a range of apps that work as beautifully as they look, the company said. This year, half the award winners were mobile games, which may speak to where much design innovation is today taking place. Other creativity focused and health care apps filled out the rest of the winners’ list.

To take home a prize, the apps’ had to excel across three areas: visual design, technology, and innovation. Specifically, Apple looks for apps that take full advantage of its latest devices and technologies.

The award winners don’t just get to take home a (newly redesigned) trophy. They also get an envious Apple prize pack that includes a 512GB iPhone 10S, AirPods, a 512GB 12.9 inch iPad Pro, Apple Pencil 2, a 64GB Apple TV 4K, an Apple Watch Series 4, a top of the line MacBook Pro, and a fully loaded iMac Pro. The apps will also be featured in the iOS App Store, gaining them more exposure.

The winning apps this year included:

Ordia: a one-finger action game where you play as a new life form taking its first leaps into a strange and hazardous world. Apple said this game offered a great balance between difficulty and satisfaction. It also focused on accessibility features, with a colorblind mode, for example. The game, from Loju LTD, was developed for two years and launched only a month ago, catching Apple’s eye.

Flow by Moleskin: Creative app for sketching, writing and drawing, Flow, was chosen for its attention to detail and overall design. It also showcased Apple technologies like Apple Pencil, gestures, iOS drawing APIs, and Metal.

The Gardens Between: A a single-player adventure-puzzle game about time, memory and friendship from The Voxel Agents won for its cinematic moments and immersive experience. Apple also really liked its gameplay mechanic which lets you stop time, which allows you to play without feeling rushed.

Asphalt 9 Legends: Gameloft’s latest iteration on the car racing game features cars from Ferrari, Porsche, Lamborghini, and W Motors. What makes it worthy of the award are its incredible effects and graphics, as well as its custom engine and Metal 2 integration. 

Pixelmator Photo: This photo editing app specifically won for its iPad version, which makes photo editing easy for everyone. But what Apple really liked was its use of Metal, CoreML and how it leveraged machine learning technologies to suggest changes to photos.

ELOH: Another game winner, this one described as a “chilled out puzzler.” The game helps you relax and decompress, said Apple, but its key component is its sound effects soundtrack, which complements its beautiful graphics and the animations. There are no time constraints on this one, so you can relax and enjoy playing.

Butterfly IQ – Ultrasound: This app was a standout from the group for focusing on a real healthcare need, not gaming or the creative arts. The app connects with a separate device to give mobile ultrasounds. The app won based largely on that innovation alone. As Apple noted, the idea with this app is that you can move ultrasound to a microchip and move the computer to an iOS device, instead of the big, expensive machines required today.

Thumper: Pocket Edition: This winning music rhythm game was unique and did a great job introducing new game mechanics involving swipes and taps. But it also has a psychedelic soundtrack to complement the action that sounds great when played loud.

Homecourt: The Basketball App:  This basketball training app uses a proprietary mobile AI technology to track, record, and provide deep analysis of all your shots and workouts using your iPhone’s camera.

 

 

Apple defends its takedown of some apps monitoring screen-time

Apple is defending its removal of certain parental control apps from the app store in a new statement.

The company has come under fire for its removal of certain apps that were pitched as tools giving parents more control over their children’s screen-time, but that Apple said relied on technology that was too invasive for private use.

“We recently removed several parental control apps from the App Store, and we did it for a simple reason: they put users’ privacy and security at risk. It’s important to understand why and how this happened,” the company said in a statement

The heart of the issue is the use of mobile device management technologies in the parental control apps that Apple has removed from the app store, the company said.

These device management tools give  control and access over a device’s user location, app use, email accounts, camera permissions and browsing history to a third party.

“We started exploring this use of MDM by non-enterprise developers back in early 2017 and updated our guidelines based on that work in mid-2017,” the company said.

Apple acknowledged that the technology has legitimate uses in the context of businesses looking to monitor and manage corporate devices to control proprietary data and hardware, but, the company said, it is “a clear violation of App Store policies — for a private, consumer-focused app business to install MDM control over a customer’s device.”

The company said it communicated to app developers that they were in violation of App Store guidelines and gave the company 30 days to submit updates to avoid being booted from the App Store.

Indeed, we first reported that Apple was warning developers about screen-time apps in December.

“Several developers released updates to bring their apps in line with these policies,” Apple said in a statement. “Those that didn’t were removed from the App Store.”

Hackers conquer Tesla’s in-car web browser and win a Model 3

A pair of security researchers dominated Pwn2Own, the annual high-profile hacking contest, taking home $375,000 in prizes including a Tesla Model 3 — their reward for successfully exposing a vulnerability in the electric vehicle’s infotainment system.

Tesla handed over its new Model 3 sedan to Pwn2Own this year, the first time a car has been included in the competition. Pwn2Own is in its 12th year and run by Trend Micro’s Zero Day Initiative. ZDI has awarded more than $4 million over the lifetime of the program.

The pair of hackers Richard Zhu and Amat Cam, known as team Fluoroacetate, “thrilled the assembled crowd” as they entered the vehicle, according to ZDI, which noted that after a few minutes of setup, they successfully demonstrated their research on the Model 3 internet browser.

The pair used a JIT bug in the renderer to display their message — and won the prize, which included the car itself. In the most simple terms, a JIT, or just-in-time bug, bypasses memory randomization data that normally would keep secrets protected.

Tesla told TechCrunch it will release a software update to fix the vulnerability discovered by the hackers.

“We entered Model 3 into the world-renowned Pwn2Own competition in order to engage with the most talented members of the security research community, with the goal of soliciting this exact type of feedback. During the competition, researchers demonstrated a vulnerability against the in-car web browser,” Tesla said in an emailed statement. “There are several layers of security within our cars which worked as designed and successfully contained the demonstration to just the browser, while protecting all other vehicle functionality. In the coming days, we will release a software update that addresses this research. We understand that this demonstration took an extraordinary amount of effort and skill, and we thank these researchers for their work to help us continue to ensure our cars are the most secure on the road today.”

That’s a wrap! Congrats to @fluoroacetate on winning Master of Pwn. There total was $375,000 (plus a vehicle) for the week. Superb work from this great duo. pic.twitter.com/Q7Fd7vuEoJ

— Zero Day Initiative (@thezdi) March 22, 2019

Pwn2Own’s spring vulnerability research competition, Pwn2Own Vancouver, was held March 20 to 22 and  featured five categories, including web browsers, virtualization software, enterprise applications, server-side software and the new automotive category.

Pwn2Own awarded a total of $545,000 for 19 unique bugs in Apple Safari, Microsoft Edge and Windows, VMware Workstation, Mozilla Firefox, and Tesla.

Tesla has had a public relationship with the hacker community since 2014 when the company launched its first bug bounty program. And it’s grown and evolved ever since.

Last year, the company increased the maximum reward payment from $10,000 to $15,000 and added its energy products as well. Today, Tesla’s vehicles and all directly hosted servers, services and applications are now in scope in its bounty program

5G phones are here but there’s no rush to upgrade

This year’s Mobile World Congress — the CES for Android device makers — was awash with 5G handsets.

The world’s No.1 smartphone seller by marketshare, Samsung, got out ahead with a standalone launch event in San Francisco, showing off two 5G devices, just before fast-following Android rivals popped out their own 5G phones at launch events across Barcelona this week.

We’ve rounded up all these 5G handset launches here. Prices range from an eye-popping $2,600 for Huawei’s foldable phabet-to-tablet Mate X — and an equally eye-watering $1,980 for Samsung’s Galaxy Fold; another 5G handset that bends — to a rather more reasonable $680 for Xiaomi’s Mi Mix 3 5G, albeit the device is otherwise mid-tier. Other prices for 5G phones announced this week remain tbc.

Android OEMs are clearly hoping the hype around next-gen mobile networks can work a little marketing magic and kick-start stalled smartphone growth. Especially with reports suggesting Apple won’t launch a 5G iPhone until at least next year. So 5G is a space Android OEMs alone get to own for a while.

Chipmaker Qualcomm, which is embroiled in a bitter patent battle with Apple, was also on stage in Barcelona to support Xiaomi’s 5G phone launch — loudly claiming the next-gen tech is coming fast and will enhance “everything”.

“We like to work with companies like Xiaomi to take risks,” lavished Qualcomm’s president Cristiano Amon upon his hosts, using 5G uptake to jibe at Apple by implication. “When we look at the opportunity ahead of us for 5G we see an opportunity to create winners.”

Despite the heavy hype, Xiaomi’s on stage demo — which it claimed was the first live 5G video call outside China — seemed oddly staged and was not exactly lacking in latency.

“Real 5G — not fake 5G!” finished Donovan Sung, the Chinese OEM’s director of product management. As a 5G sales pitch it was all very underwhelming. Much more ‘so what’ than ‘must have’.

Whether 5G marketing hype alone will convince consumers it’s past time to upgrade seems highly unlikely.

Phones sell on features rather than connectivity per se, and — whatever Qualcomm claims — 5G is being soft-launched into the market by cash-constrained carriers whose boom times lie behind them, i.e. before over-the-top players had gobbled their messaging revenues and monopolized consumer eyeballs.

All of which makes 5G an incremental consumer upgrade proposition in the near to medium term.

Use-cases for the next-gen network tech, which is touted as able to support speeds up to 100x faster than LTE and deliver latency of just a few milliseconds (as well as connecting many more devices per cell site), are also still being formulated, let alone apps and services created to leverage 5G.

But selling a network upgrade to consumers by claiming the killer apps are going to be amazing but you just can’t show them any yet is as tough as trying to make theatre out of a marginally less janky video call.

“5G could potentially help [spark smartphone growth] in a couple of years as price points lower, and availability expands, but even that might not see growth rates similar to the transition to 3G and 4G,” suggests Carolina Milanesi, principal analyst at Creative Strategies, writing in a blog post discussing Samsung’s strategy with its latest device launches.

“This is not because 5G is not important, but because it is incremental when it comes to phones and it will be other devices that will deliver on experiences, we did not even think were possible. Consumers might end up, therefore, sharing their budget more than they did during the rise of smartphones.”

The ‘problem’ for 5G — if we can call it that — is that 4G/LTE networks are capably delivering all the stuff consumers love right now: Games, apps and video. Which means that for the vast majority of consumers there’s simply no reason to rush to shell out for a ‘5G-ready’ handset. Not if 5G is all the innovation it’s got going for it.

LG V50 ThinQ 5G with a dual screen accessory for gaming

Use cases such as better AR/VR are also a tough sell given how weak consumer demand has generally been on those fronts (with the odd branded exception).

The barebones reality is that commercial 5G networks are as rare as hen’s teeth right now, outside a few limited geographical locations in the U.S. and Asia. And 5G will remain a very patchy patchwork for the foreseeable future.

Indeed, it may take a very long time indeed to achieve nationwide coverage in many countries, if 5G even ends up stretching right to all those edges. (Alternative technologies do also exist which could help fill in gaps where the ROI just isn’t there for 5G.)

So again consumers buying phones with the puffed up idea of being able to tap into 5G right here, right now (Qualcomm claimed 2019 is going to be “the year of 5G!”) will find themselves limited to just a handful of urban locations around the world.

Analysts are clear that 5G rollouts, while coming, are going to be measured and targeted as carriers approach what’s touted as a multi-industry-transforming wireless technology cautiously, with an eye on their capex and while simultaneously trying to figure out how best to restructure their businesses to engage with all the partners they’ll need to forge business relations with, across industries, in order to successfully sell 5G’s transformative potential to all sorts of enterprises — and lock onto “the sweep spot where 5G makes sense”.

Enterprise rollouts therefore look likely to be prioritized over consumer 5G — as was the case for 5G launches in South Korea at the back end of last year.

“4G was a lot more driven by the consumer side and there was an understanding that you were going for national coverage that was never really a question and you were delivering on the data promise that 3G never really delivered… so there was a gap of technology that needed to be filled. With 5G it’s much less clear,” says Gartner’s Sylvain Fabre, discussing the tech’s hype and the reality with TechCrunch ahead of MWC.

“4G’s very good, you have multiple networks that are Gbps or more and that’s continuing to increase on the downlink with multiple carrier aggregation… and other densification schemes. So 5G doesn’t… have as gap as big to fill. It’s great but again it’s applicability of where it’s uniquely positioned is kind of like a very narrow niche at the moment.”

“It’s such a step change that the real power of 5G is actually in creating new business models using network slicing — allocation of particular aspects of the network to a particular use-case,” Forrester analyst Dan Bieler also tells us. “All of this requires some rethinking of what connectivity means for an enterprise customer or for the consumer.

“And telco sales people, the telco go-to-market approach is not based on selling use-cases, mostly — it’s selling technologies. So this is a significant shift for the average telco distribution channel to go through. And I would believe this will hold back a lot of the 5G ambitions for the medium term.”

To be clear, carriers are now actively kicking the tyres of 5G, after years of lead-in hype, and grappling with technical challenges around how best to upgrade their existing networks to add in and build out 5G.

Many are running pilots and testing what works and what doesn’t, such as where to place antennas to get the most reliable signal and so on. And a few have put a toe in the water with commercial launches (globally there are 23 networks with “some form of live 5G in their commercial networks” at this point, according to Fabre.)

But at the same time 5G network standards are yet to be fully finalized so the core technology is not 100% fully baked. And with it being early days “there’s still a long way to go before we have a real significant impact of 5G type of services”, as Bieler puts it. 

There’s also spectrum availability to factor in and the cost of acquiring the necessary spectrum. As well as the time required to clear and prepare it for commercial use. (On spectrum, government policy is critical to making things happen quickly (or not). So that’s yet another factor moderating how quickly 5G networks can be built out.)

And despite some wishful thinking industry noises at MWC this week — calling for governments to ‘support digitization at scale’ by handing out spectrum for free (uhhhh, yeah right) — that’s really just whistling into the wind.

Rolling out 5G networks is undoubtedly going to be very expensive, at a time when carriers’ businesses are already faced with rising costs (from increasing data consumption) and subdued revenue growth forecasts.

“The world now works on data” and telcos are “at core of this change”, as one carrier CEO — Singtel’s Chua Sock Koong — put it in an MWC keynote in which she delved into the opportunities and challenges for operators “as we go from traditional connectivity to a new age of intelligent connectivity”.

Chua argued it will be difficult for carriers to compete “on the basis of connectivity alone” — suggesting operators will have to pivot their businesses to build out standalone business offerings selling all sorts of b2b services to support the digital transformations of other industries as part of the 5G promise — and that’s clearly going to suck up a lot of their time and mind for the foreseeable future.

In Europe alone estimates for the cost of rolling out 5G range between €300BN and €500BN (~$340BN-$570BN), according to Bieler. Figures that underline why 5G is going to grow slowly, and networks be built out thoughtfully; in the b2b space this means essentially on a case-by-case basis.

Simply put carriers must make the economics stack up. Which means no “huge enormous gambles with 5G”. And omnipresent ROI pressure pushing them to try to eke out a premium.

“A lot of the network equipment vendors have turned down the hype quite a bit,” Bieler continues. “If you compare this to the hype around 3G many years ago or 4G a couple of years ago 5G definitely comes across as a soft launch. Sort of an evolutionary type of technology. I have not come across a network equipment vendors these days who will say there will be a complete change in everything by 2020.”

On the consumer pricing front, carriers have also only just started to grapple with 5G business models. One early example is TC parent Verizon’s 5G home service — which positions the next-gen wireless tech as an alternative to fixed line broadband with discounts if you opt for a wireless smartphone data plan as well as 5G broadband.

From the consumer point of view, the carrier 5G business model conundrum boils down to: What is my carrier going to charge me for 5G? And early adopters of any technology tend to get stung on that front.

Although, in mobile, price premiums rarely stick around for long as carriers inexorably find they must ditch premiums to unlock scale — via consumer-friendly ‘all you can eat’ price plans.

Still, in the short term, carriers look likely to experiment with 5G pricing and bundles — basically seeing what they can make early adopters pay. But it’s still far from clear that people will pay a premium for better connectivity alone. And that again necessitates caution. 

5G bundled with exclusive content might be one way carriers try to extract a premium from consumers. But without huge and/or compelling branded content inventory that risks being a too niche proposition too. And the more carriers split their 5G offers the more consumers might feel they don’t need to bother, and end up sticking with 4G for longer.

It’ll also clearly take time for a 5G ‘killer app’ to emerge in the consumer space. And such an app would likely need to still be able to fallback on 4G, again to ensure scale. So the 5G experience will really need to be compellingly different in order for the tech to sell itself.

On the handset side, 5G chipset hardware is also still in its first wave. At MWC this week Qualcomm announced a next-gen 5G modem, stepping up from last year’s Snapdragon 855 chipset — which it heavily touted as architected for 5G (though it doesn’t natively support 5G).

If you’re intending to buy and hold on to a 5G handset for a few years there’s thus a risk of early adopter burn at the chipset level — i.e. if you end up with a device with a suckier battery life vs later iterations of 5G hardware where more performance kinks have been ironed out.

Intel has warned its 5G modems won’t be in phones until next year — so, again, that suggests no 5G iPhones before 2020. And Apple is of course a great bellwether for mainstream consumer tech; the company only jumps in when it believes a technology is ready for prime time, rarely sooner. And if Cupertino feels 5G can wait, that’s going to be equally true for most consumers.

Zooming out, the specter of network security (and potential regulation) now looms very large indeed where 5G is concerned, thanks to East-West trade tensions injecting a strange new world of geopolitical uncertainty into an industry that’s never really had to grapple with this kind of business risk before.

Chinese kit maker Huawei’s rotating chairman, Guo Ping, used the opportunity of an MWC keynote to defend the company and its 5G solutions against U.S. claims its network tech could be repurposed by the Chinese state as a high tech conduit to spy on the West — literally telling delegates: “We don’t do bad things” and appealing to them to plainly to: “Please choose Huawei!”

Huawei rotating resident, Guo Ping, defends the security of its network kit on stage at MWC 2019

When established technology vendors are having to use a high profile industry conference to plead for trust it’s strange and uncertain times indeed.

In Europe it’s possible carriers’ 5G network kit choices could soon be regulated as a result of security concerns attached to Chinese suppliers. The European Commission suggested as much this week, saying in another MWC keynote that it’s preparing to step in try to prevent security concerns at the EU Member State level from fragmenting 5G rollouts across the bloc.

In an on stage Q&A Orange’s chairman and CEO, Stéphane Richard, couched the risk of destabilization of the 5G global supply chain as a “big concern”, adding: “It’s the first time we have such an important risk in our industry.”

Geopolitical security is thus another issue carriers are having to factor in as they make decisions about how quickly to make the leap to 5G. And holding off on upgrades, while regulators and other standards bodies try to figure out a trusted way forward, might seem the more sensible thing to do — potentially stalling 5G upgrades in the meanwhile.

Given all the uncertainties there’s certainly no reason for consumers to rush in.

Smartphone upgrade cycles have slowed globally for a reason. Mobile hardware is mature because it’s serving consumers very well. Handsets are both powerful and capable enough to last for years.

And while there’s no doubt 5G will change things radically in future, including for consumers — enabling many more devices to be connected and feeding back data, with the potential to deliver on the (much hyped but also still pretty nascent) ‘smart home’ concept — the early 5G sales pitch for consumers essentially boils down to more of the same.

“Over the next ten years 4G will phase out. The question is how fast that happens in the meantime and again I think that will happen slower than in early times because [with 5G] you don’t come into a vacuum, you don’t fill a big gap,” suggests Gartner’s Fabre. “4G’s great, it’s getting better, wi’fi’s getting better… The story of let’s build a big national network to do 5G at scale [for all] that’s just not happening.”

“I think we’ll start very, very simple,” he adds of the 5G consumer proposition. “Things like caching data or simply doing more broadband faster. So more of the same.

“It’ll be great though. But you’ll still be watching Netflix and maybe there’ll be a couple of apps that come up… Maybe some more interactive collaboration or what have you. But we know these things are being used today by enterprises and consumers and they’ll continue to be used.”

So — in sum — the 5G mantra for the sensible consumer is really ‘wait and see’.

Apple pays millions in backdated taxes to French authorities

Apple has agreed to pay back a large sum in backdated taxes. The company has confirmed the information to the AFP and Reuters. According to L’Express, Apple could have paid as much as €500 million ($572 million) — the AFP also confirmed that sum.

“The French tax administration recently concluded a multi-year audit on the company’s French accounts, and those details will be published in our public accounts,” the company told Reuters. French authorities can’t confirm the transaction due to tax secrecy.

This isn’t the first time French tax authorities investigate on tech companies. Amazon also settled a dispute with French authorities back in February 2018.

In August 2016, the European Commission ruled that Apple had benefited from illegal tax benefits from 2003 to 2014. Like many global companies, Apple has been accused of optimizing its corporate structure to lower the effective corporate tax rate in Europe.

While Apple appealed the decision back in 2016 saying that everything was legal, the company finished paying back the fine in September 2018. There are now $16.4 billion (€14.3 billion) sitting in an escrow account, waiting for the appeal.

And it sounds like Apple should have paid more taxes in France in particular. French tax authorities focused on profits generated in France over the past ten years.

Last month, the French government announced that it would start taxing big tech companies in France even if they report profits in another country. This tax will be based on revenue generated in France. Other European countries could follow the same model.

127 member countries of the OECD are also discussing new taxation rules for big tech companies. This time, the OECD wants to force companies to report profits in all countries where they operate.

Apple’s long-time Siri leader reportedly no longer in charge

The man who has headed up Siri at Apple since 2012 is no longer at the helm, according to The Information. Bill Stasior remains at the company in a different role, the report states.

We’ve reached out to Apple for comment.

Stasior joined Apple to take over Siri in 2012 after being poached from Amazon’s A9 retail search team. At this in time, most of the original Siri co-founders had already left Apple and Stasior was tasked with taking on the mantle of deciding where the digital assistant should move next.

Siri has had a troubled history at Apple. Though the voice assistant arrived with a big splash, the company’s inability to iterate the product quickly left its competitors ample opportunity to leapfrog its capabilities. Something that both Amazon and Google clearly have with their Alexa and Google Assistant platforms.

This past April, Apple hired Google’s John Giannandrea to lead AI and machine learning efforts at the company, a division that includes Siri and CoreML. Giannandrea is expected to be leading the search for a new leader for the Siri team, the report says.

Ciitizen raises $17 million to give cancer patients better control over their health records

Ciitizen, the company founded by the creators of Gliimpse (an Apple acquisition that’s been incorporated into the company’s HealthKit) which is developing tools to help patients organize and share their medical records, has raised $17 million in new funding.

Ciitizen, like Gliimpse before it, is an attempt to break down the barriers that keep patients from being able to record, store, and share their healthcare information with whomever they want in their quest for treatment.

The digitization of health records — a featured element of President Barack Obama’s overhaul of the healthcare system back in 2009 — remains an obstacle to quality care and proper treatment nearly a decade later. Hospitals spend millions and the US healthcare system spends billions on Electronic Health Records annually. All with very little too show for the expense.

Those kinds of challenges are what attracted investors in the Andreessen Horowitz -led round. New investors Section 32, formed by the former head of Google Ventures, Bill Maris; and Verily, one of the healthcare subsidiaries that spun out of Google X and is a part of Google’s parent company, Alphabet.

“Ciitizen uniquely understands the challenges cancer patients face – including the intense friction patients experience when managing their medical records in our current healthcare system,” said Vijay Pande, a general partner in Andreessen Horowitz’s Bio fund, in a statement. “Using their deep insights, the Ciitizen team have developed sophisticated technology and tools that remove this friction, putting the power back in the patients’ hands and literally saving lives.”

Pande may be a little biased since Andreessen Horowitz also led the company’s seed funding last July, in what was, at the time, one of the earlier investments from the Bio fund’s latest $450 million second investment vehicle.

“The continued support from Andreessen Horowitz reaffirms the rapid progress we have already made and further validates our potential to significantly impact healthcare globally. Adding Section 32 and Verily to our effort further enhances our ability to transform the way patients engage with their health data,” said Anil Sethi, CEO and Founder of Ciitizen, in a statement.

Indonesia unblocks Tumblr following its ban on adult content

Indonesia, the world’s fourth largest country by population, has unblocked Tumblr nine months after it blocked the social networking site over pornographic content.

Tumblr — which, disclaimer, is owned by Oath Verizon Media Group just like TechCrunch — announced earlier this month that it would remove all “adult content” from its platform. That decision, which angered many in the adult entertainment industry who valued the platform as an increasingly rare outlet that supported erotica, was a response to Apple removing Tumblr’s app from the iOS Store after child pornography was found within the service.

This impact of this new policy has made its way to Indonesia where KrAsia reports that the service was unblocked earlier this week. The service had been blocked in March after falling foul of the country’s anti-pornography laws.

“Tumblr sent an official statement regarding the commitment to clean the platform from pornographic content,” Ferdinandus Setu, Acting Head of the Ministry of Communication and Informatics Bureau, is reported to have said in a press statement.

Messaging apps WhatsApp and Line are among the other services that have been forced to comply with the government’s ban on ‘unsuitable’ content in order to keep their services open in the country. Telegram, meanwhile, removed suspected terrorist content last year after its service was partially blocked.

While perhaps not widely acknowledged in the West, Indonesia is a huge market with a population of over 260 million people. The world’s largest Muslim country, it is the largest economy in Southeast Asia and its growth is tipped to help tripled the region’s digital economy to $240 billion by 2025.

In other words, Indonesia is a huge market for internet companies.

The country’s anti-porn laws have been used to block as many as 800,000 websites as of 2017so potentially over a million by now — but they have also been used to take aim at gay dating apps, some of which have been removed from the Google Play Store. As Vice notes, “while homosexuality is not illegal in Indonesia, it’s no secret that the country has become a hostile place for the LGBTQ community.”

Two years later, I still miss the headphone port

Two years ago, Apple killed the headphone port. I still haven’t forgiven them for it.

When Apple announced that the iPhone 7 would have no headphone port, I was pretty immediately annoyed. I figured maybe I’d get over it in a few months. I didn’t. I figured if worse came to worse, I’d switch platforms. Then all of the other manufacturers started following suit.

This, of course, isn’t a new annoyance for me. I’ve been hating headphone adapters on phones right here on this very website since two thousand and nine. For a little stretch there, though, I got my way.

It was a world full of dongles and crappy proprietary audio ports. Sony Ericsson had the FastPort. Nokia had the Pop-Port. Samsung had like 10 different ports that no one gave a shit about. No single phone maker had claimed the throne yet, so no one port had really become ubiquitous… but every manufacturer wanted their port to become the port. Even the phones that had a standardized audio jack mostly had the smaller 2.5mm port, requiring an adapter all the same.

Then came the original iPhone with its 3.5mm headphone port. It was a weird recessed 3.5mm port that didn’t work with most headphones, but it was a 3.5mm port! Apple was riding on the success of the iPod, and people were referring to this rumored device as the iPod Phone before it was even announced. How could something like that not have a headphone port?

Sales of the iPhone started to climb. A few million in 2007. Nearly 12 million in 2008. 20 million in 2009. A tide shifted. As Apple’s little slab of glass took over the smartphone world, other manufacturers tried to figure out what Apple was doing so right. The smartphone market, once filled with chunky, button-covered plastic beasts (this one slides! This one spins!), homogenized. Release by release, everything started looking more like the iPhone. A slab of glass. Premium materials. Minimal physical buttons. And, of course, a headphone port.

Within a couple years, a standard headphone port wasn’t just a nice selling point — it was mandatory. We’d entered a wonderful age of being able to use your wired headphones whenever you damn well pleased.

Then came September 7th, 2016, when Apple had the “courage” to announce it was ditching the 3.5mm jack (oh and also by the way check out these new $150 wireless headphones!).

Apple wasn’t the first to ditch the headphone port — but, just as with its decision to include one, its decision to remove it has turned the tide. A few months after the portless iPhone 7 was announced, Xiaomi nixed the port on the Mi 6. Then Google ditched it from its flagship Android phone, the Pixel 3. Even Samsung, which lampooned Apple for the decision, seems to be tinkering with the idea of dropping it. Though leaks suggest the upcoming Galaxy S10 will have a headphone port, the company pulled it from the mid-range A8 line earlier this year. If 2016 was the year Apple took a stab at the headphone jack, 2018 was the year it bled out.

And I’m still mad about it.

Technology comes and goes, and oh-so-often at Apple’s doing. Ditching the CD drive in laptops? That’s okay — CDs were doomed, and they were pretty awful to begin with. Killing Flash? Flash sucked. Switching one type of USB port for another? Fine, I suppose. The new USB is better in just about every way. At the very least, I won’t try to plug it in upside down only to flip it over and realize I had it right the first time.

But the headphone jack? It was fine. It stood the test of time for one hundred damned years, and with good reason: It. Just. Worked.

I’ve been trying to figure out why the removal of the headphone port bugs me more than other ports that have been unceremoniously killed off, and I think it’s because the headphone port almost always only made me happy. Using the headphone port meant listening to my favorite album, or using a free minute to catch the latest episode of a show, or passing an earbud to a friend to share some new tune. It enabled happy moments and never got in the way.

Now every time I want to use my headphones, I just find myself annoyed.

Bluetooth? Whoops, forgot to charge them. Or whoops, they’re trying to pair with my laptop even though my laptop is turned off and in my backpack.

Dongle? Whoops, left it on my other pair of headphones at work. Or whoops, it fell off somewhere, and now I’ve got to go buy another one.

I’ll just buy a bunch of dongles, and put them on all my headphones! I’ll keep extras in my bag for when I need to borrow a pair of headphones. That’s just like five dongles at this point, problem solved! Oh, wait: now I want to listen to music while I fall asleep, but also charge my phone so it’s not dead in the morning. That’s a different, more expensive splitter dongle (many of which, I’ve found, are poorly made garbage).

None of these are that big of a deal. Charge your damned headphones, Greg. Stop losing your dongles. The thing is: they took a thing that just worked and just made me happy and replaced it with something that, quite often, just bugs the hell out of me. If a friend sent me a YouTube link and I wanted to watch it without bugging everyone around me, I could just use whatever crappy, worn out headphones I happened to have sitting in my bag. Now it’s a process with a bunch of potential points of failure.

“But now its water resistant!” Water-resistant phones existed before all of this, plenty of which had/have headphone ports. As a recent example, see Samsung’s Galaxy S9 with its IP68 rating (matching that of the iPhone XS.)

“But it can be slimmer!” No one was asking for that.

“But the batteries inside can be bigger!” The capacity of the battery barely jumped in the years from the 6S to the 8 — from 1,715mAh to 1,821mAh. It wasn’t until a few years later with the iPhone X, when the standard iPhone started getting wider and taller, that we saw super big jumps in its battery capacity.

Will this post change anything? Of course not. Apple blew the horn that told the industry it’s okay to drop the headphone port, and everyone fell right in line. The next year — and the year after that — Apple sold another 200M-plus phones. At this point, Apple doesn’t even bother giving you the headphone adapter in the box. Apple’s mind is made up.

But if you’re out there, annoyed, stumbling across this post after finding yourself with a pair of headphones and a smartphone that won’t play friendly together in a pinch, just know: you’re not the only one. Two years later, I’m still mad at whoever made this call — and everyone else in the industry who followed suit.

Apple says iPhones remain on sale in China following court injunction

Apple has filed an appeal to overturn a court decision that could ban iPhone sales in China, the company said on Monday, adding that all of its models remain available in its third-largest market.

The American giant is locked in a legal battle in the world’s biggest smartphone market. On Monday, Qualcomm announced that a court in Fujian Province has granted a preliminary injunction banning the import and sales of old iPhone models in China because they violated two patents owned by the American chipmaker.

The patents in question relate to features enabling consumers to edit photos and manage apps on smartphone touchscreens, according to Qualcomm.

“Apple continues to benefit from our intellectual property while refusing to compensate us. These Court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio,” said Don Rosenberg, executive vice president and general counsel of Qualcomm, in a statement.

Apple fought back in a statement calling Qualcomm’s effort to ban its products “another desperate move by a company whose illegal practices are under investigation by regulators around the world.” It also claimed that Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated.

It is unclear at this point what final effects the court injunction will have on Apple’s sales in China.

The case is part of an ongoing global patent dispute between Qualcomm and Apple, which saw the former seek to block the manufacturing and sale of iPhones in China over patent issues pertaining to payments last year.

Qualcomm shares were up 3 percent on Monday. Apple opened down more than 2 percent before closing up 0.7 percent. Citi lowered its Apple price target to $200 a share from $240 a share, saying in a note to investors that while it does not expect China to ban or impose additional tariffs on Apple, “should this occur Apple has material exposure to China.”

The Apple case comes as the tech giant faces intensifying competition in China, which represented 18 percent of its total sales from the third quarter. The American company’s market share in China shrunk from 7.2 percent to 6.7 percent year-over-year in the second quarter as local competitors Huawei and Oppo gained more ground, according to market research firm IDC.

The annual drop is due to Apple’s high prices, IDC suggests, but its name “is still very strong in China” and “the company will fare well should it release slightly cheaper options later in the year.”

Apple’s subscription TV service might be coming sooner than you think

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Apple’s competitor to Netflix and Amazon Prime Video is apparently just around the corner.

According to a report by The Information, Apple is set to launch a subscription TV service in the U.S. within the first half of next year.

In the months following the U.S. launch, the service will become available in more than 100 countries around the world, matching the availability of the aforementioned streaming giants.

The service will feature original Apple series, of which the tech giant has been slowly building on, and allow users to subscribe to TV network subscriptions as one can already do through Amazon Channels or Roku.  Read more…

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