CAPPLETALI$M

The Age of the Gilded Apple

Josh Schlossberg

April 10, 2026

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Photo by JK Sloan

Half a century is plenty of time for an Apple to stay fresh, or to rot.

The New York Times’s Kalley Huang (“For Employee No. 8, Many Changes in Apple’s 50-Year History,” April 2) traces the evolution of Apple Inc. from a “scrappy start-up that assembled computers by hand” — and whose organic name was a natural fit for an environment in which “Silicon Valley’s fruit orchards hadn’t yet been taken over by office parks” — to one which “has come to define how to be a global technology company.”

In a 2014 Bloomberg interview, Steve Wozniak recalled how he had “given away my designs for the Apple-1 for free,” leaving it to Steve Jobs to take projects the other Steve had “designed for fun” (while being “totally aware that a revolution was close to starting”) and “somehow turn them into some money for both of us.” The sum of their money would become so enormous that Chris Espinosa, who admits that having “had no college degree and … only worked at one company” since 1976 doesn’t sound like much of a résumé, owns what Huang estimates is well over $100 million worth of the corporation that makes a thousandfold of that in profit every year.

Craig Newmark’s op-ed “Craigslist Made Me Rich. Giving the Money Away is Easy” might have included Espinosa as evidence for how “making money isn’t proof to me that I know something any better than someone else” but of being “in the right place, at the right time” to apply common sense to a new field, if it hadn’t gone to print in the same day’s edition of The New York Times.  Newmark doesn’t propose any political program, keeping his distance even from any endorsement of “left-wing nonprofits” and instead promoting such voluntary philanthropic efforts as the Giving Pledge. Still, the public souring on the information industry, as captured by such titles as Douglas Rushkoff’s Throwing Rocks at the Google Bus and Tripp Mickle’s After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Soul, might seem the inevitable result of it enabling such outsized yet largely fortuitous accumulations in the first place.

The Giving Pledge cofounder Bill Gates owes much of his fortune to emulating Apple. The video game Halo was first showcased at MacWorld by Jobs before it became an exclusive killer app for Microsoft’s Xbox. Gates’s Windows operating system tapped the talent of Macintosh’s iconic icon designer Susan Kare. And yet the broader impact of Apple’s innovations is hardly confined to such sheerly financial windfalls.

This is not just because Apple efforts like the HyperCard which made creating and viewing multimedia straightforward, the Pippin which brought built-in Internet access to a video game console, and the Newton which pioneered the personal digital assistant were influential on later developments without managing to become profitable products for them or anyone else.

Indeed, much of the creativity that spread from Apple’s roots in Cupertino, California to cyberspace is closer in spirit to Wozniak than Jobs. It was entirely typical for Stephen D. Young and Debra Willrett’s Backgammon, programmed for the Apple Macintosh in the same non-Orwellian year 1984 during which the desktop model was introduced, to give out a postal address for users who “enjoy it and would like to see more ‘freeware'” to “please send whatever you think it’s worth” … and permission for them to disseminate the software itself.

Huang notes that Apple’s current survival requires not just satisfying customers but withstanding “tariff whiplash, antitrust scrutiny and geopolitical turmoil.”  Consumer sovereignty and cooperative networking can tame such seemingly relentless forces — and make the fruits of tech’s golden geese as common as dirt.

Josh Schlossberg is a writer, investigative journalist, and recovering activist hiding out in the foothills of the Colorado Rockies. He’s the host of the Green Root Podcast, a quest to uncover the roots of the modern ecological crisis. You can find him on Twitter at @JoshSchlossberg or email him at greenrootpodcast@protonmail.com.  

CAPPLETALI$M

Apple asks EU to scrap landmark digital competition law


By AFP
September 25, 2025


Image — © GETTY IMAGES NORTH AMERICA/AFP/File SCOTT OLSON

Apple asked the European Union to scrap its landmark digital competition law on Thursday, arguing that it poses security risks and creates a “worse experience” for consumers.

The US tech giant and the EU have repeatedly locked horns over the bloc’s Digital Markets Act (DMA), which Brussels says seeks to make the digital sector in the 27-nation bloc fairer and more open.

“The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place,” Apple said in a formal submission to the European Commission as part of a consultation on the law.

The latest clash came as President Donald Trump sought to pressure the EU over decisions and laws affecting US Big Tech — with key industry figures including Apple chief Tim Cook moving closer to the White House since Trump’s return to power.

“It’s become clear that the DMA is leading to a worse experience for Apple users in the EU,” the tech giant said in a blog post accompanying its submission. “It’s exposing them to new risks, and disrupting the simple, seamless way their Apple products work together.”

Pushing for wholesale reform of the law if it is not repealed, Apple suggested enforcement “should be undertaken by an independent European agency” rather than the commission, the EU’s executive arm and digital watchdog.

The DMA challenges Apple’s closed ecosystem, but Brussels argues that it is necessary to do so to level the playing field for Apple’s rivals and avoid unfair market domination.

The law tells Big Tech firms what they can and cannot do on their platforms. For example, companies must offer choice screens for web browsers and search engines to give users more options.

Violations of the DMA can lead to hefty fines.

Brussels in April slapped a 500-million-euro ($590-million) fine on Apple under the DMA, which the company has appealed.

– Delays for EU users –

Apple says dangers are posed when Europeans can download app marketplaces that rival its App Store.

The giant also cites an increasing number of complaints from users about DMA-related changes but has not provided exact figures.

It argued in its 25-page submission that the EU’s law had forced it to delay new features in the bloc.

For example, Apple has not yet rolled out “live translation” — which allows consumers to choose another language to hear via AirPods in their ears.

The technology was launched this month in the United States but Apple says it must undertake further engineering work to ensure users’ privacy in the EU.

Under the DMA, companies including Apple must make sure their products can work seamlessly with third-party devices such as earphones.

The commission said it was “normal” companies sometimes needed more time to make sure their products were in line with the new law and that it was helping them comply.

DMA enforcement began in March 2024 and the EU’s consultation on the first review of the law ended just before midnight on Wednesday.

Independently from the digital rules, Apple has faced the heat under different EU competition rules. Brussels slapped it with a 1.8-billion-euro fine in March 2024.

EU queries Apple, Google, Microsoft over financial scams


By AFP
September 23, 2025


Image: — © Copyright AFP GREG BAKER

Raziye Akkoc

The European Union on Tuesday demanded Big Tech players including Apple and Google explain what action they are taking against financial scams online, as Brussels seeks to show it is not shying away from enforcing its rules.

The European Commission sent a request for information under the Digital Services Act to the companies, including Microsoft and Booking, “on how they make sure that their services are not being misused by scammers”, an EU spokesman said.

The DSA is the EU’s landmark law demanding Big Tech firms do more to tackle illegal content but it has faced retaliation threats from US President Donald Trump, and censorship claims from the US tech sector.

The EU has vowed it will not back down from enforcing its stringent rules to protect Europeans online.

Tuesday’s request could lead to a probe under the DSA and even fines, but does not itself suggest the law has been broken, nor is it a move towards punishment.

“This is an essential step also to protect users across the EU from certain of these practices, and to make sure that platforms in the EU also play their role,” EU digital affairs spokesman Thomas Regnier told reporters in Brussels.

The request relates to Apple’s App Store, Google Play, online travel agent Booking and Microsoft’s Bing search engine.

The EU fears app stores could be used by scammers to create fake apps posing as legitimate banking providers or fraudsters could publish links to fake websites on search engines.

– Trump threats –

The EU has a bolstered legal armoury with the DSA and its sister law, the Digital Markets Act, which seeks to ensure fair competition online.

Brussels has already launched multiple investigations under the DSA into Meta’s Facebook and Instagram as well as TikTok and X.

But its rules have faced the wrath of Trump — who has shaken up global trade by hitting America’s trading partners with higher tariffs and threatened more levies on those he accuses of targeting US tech companies.

The US State Department, Trump allies and critics including Meta chief Mark Zuckerberg and X owner Elon Musk have called the EU’s rules censorship.

The EU rejects such claims, stressing that whatever is illegal in the real world is also illegal in the online realm.

It has also pushed back at accusations it is targeting American titans, pointing to investigations into China’s big players that face DSA scrutiny including shopping platform AliExpress.

Defenders of the bloc’s tech rules have meanwhile attacked the EU for failing to complete its probe into Musk’s X, which opened in December 2023. X is expected to be hit with a fine but Brussels says technical work in the investigation continues.

EU digital chief Henna Virkkunen told AFP last week that probes into online platforms including X will be completed in the “coming weeks and months”.

She warned more investigations could also be on the way.

“We will probably start new ones because the DSA, of course, it’s a huge legislation,” she said.

CAPPLETALI$M

Apple presses EU to drop competition law, raises consumer concerns

Apple on Thursday urged the European Union to scrap its Digital Markets Act (DMA), the competition law that came into force last year to curb the power of big tech firms.

 25/09/2025 - RFI

The European Union has imposed new rules on global tech companies. AFP - NIC COURY

The company said the regulation is harming European consumers and weakening the quality of its services.

"The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place," Apple said in a formal submission to the European Commission. The statement was filed as part of a public consultation on the law.

EU competition officials say the DMA will make the digital sector in the 27-nation bloc fairer and more open. The legislation targets firms seen as "gatekeepers" with dominant control over online services.

Apple pushes back

Apple has fought the DMA since it was drafted. It argues that the law forces changes that reduce security and limit innovation.

The company, based in Cupertino in California, said it has been forced to remove features from new products released in Europe. Apple said this goes against its mission of giving consumers the most advanced tools possible.

The company also called for the creation of a new independent regulatory agency, separate from the Commission, to enforce the rules if repeal is not possible.

Apple facing €1.8bn EU fine for breaking music streaming competition laws

Earphones restricted

Apple gave several examples in its Thursday statement. It said its new wireless earphones, the AirPods Pro 3, had to be released in the EU without the automatic live translation function, one of their headline features. The firm blamed the DMA for the restriction.

Apple also repeated its opposition to opening up its devices to rival app stores and alternative payment systems, which the DMA requires. It argued that these systems do not match the privacy and security standards of its own App Store.

Apple has long relied on a closed ecosystem in which it controls all aspects of its products. It says this model protects users and offers better performance. But EU competition authorities see it as a way of blocking rivals and limiting consumer choice.

Heavy penalties

The Digital Markets Act was adopted in 2022 and took effect in March 2024. It allows the EU to fine companies up to 10 percent of their global turnover, or up to 20 percent for repeat offences.

In April, the European Commission fined Apple €500 million for unfair terms imposed on developers in its App Store. The penalty, which Apple has appealed, was the first handed out under the new law.

Apple also faces a separate EU probe under the Digital Services Act, another flagship law that requires online platforms to protect users from illegal and harmful content.

CAPPLETALI$M

UK drops demand for access to Apple user data


By AFP
August 19, 2025


Many tech firms pride themselves on refusing to provide government agencies with access to users' data - Copyright AFP -

Britain has dropped its request for access to Apple users’ encrypted data, which had created friction between London and Washington, US intelligence chief Tulsi Gabbard said Tuesday.

The UK government wanted the tech giant to create a “back door” to let authorities snoop on data uploaded by Apple users if required, for example by law enforcement agencies.

Gabbard said the request “would have enabled access to the protected encrypted data of American citizens and encroached on our civil liberties”.

Many tech platforms pride themselves on being able to guarantee privacy through encryption of messages and other content, and providing access to law enforcement has long been seen as off-limits.

The UK “agreed to drop its mandate” after months of work with US President Donald Trump and Vice President JD Vance, Gabbard posted on X.

The UK interior ministry declined to comment, telling AFP that “We do not comment on operational matters.”

Apple stopped offering its most advanced encryption feature — known as Advanced Data Protection — for British users in February.

ADP ensures that only account holders can view content such as photos and documents stored in the cloud through end-to-end encryption.

Police officials worldwide say encryption can shield criminals, terrorists and pornographers from prosecution even when authorities have a legal warrant for an investigation.

But civil rights and privacy advocates, along with many cybersecurity professionals, praise data encryption as a way to protect against wrongful snooping by authorities as well as hackers.

Apple said earlier this year that it had never built a “back door” or “master key” for any of its products or services, and never would.

CAPPLETALI$M

Tech Giants Sprint Ahead While Apple Walks on AI

By City A.M - Jun 26, 2025

• Apple's progress in artificial intelligence is described as cautious and incremental, lagging behind rivals such as Google, Microsoft, and Samsung who have aggressively integrated LLMs and generative AI.
• 
  
• Siri is highlighted as a central example of Apple's AI struggles, with former employees indicating a preference for incremental changes over a complete rebuild, leading to a slow evolution.
• 
  
• The article suggests that Apple's future success depends on its ability to embrace agility and adapt quickly to the rapidly changing AI landscape, rather than maintaining its traditional cautious refinement.

Apple’s position in the rapidly evolving artificial intelligence landscape is increasingly precarious.

While rivals such as Google, Microsoft and even Samsung have surged ahead by integrating large language models (LLMs) and generative AI into their products, Apple’s progress has been notably cautious and incremental.

Commentators and insiders alike question whether Apple is losing the race to harness one of the most critical technology revolutions of the decade.

“I’m massively bearish on it (Apple) long term”, Dan Niles, founder of Niles Investment Management, told the Master Investor podcast, hosted by Wilfred Frost. “They are so far behind on AI, it’s not even funny”.

Climbing a hill, while others sprint

At the centre of Apple’s AI struggle is Siri. Intended to become a conversational assistant powered by large language models (LLMs), its evolution has spluttered.

Former Apple employees describe attempts to integrate AI via “climbing the hill” – incremental changes atop legacy systems – rather than rebuilding from scratch.

As one former exec told the Financial Times: “It was obvious that you were not going to revamp Siri by doing what executives called ‘climbing the hill.’?It’s clear that they stumbled.”

Apple’s annual developer event in early June reflected this caution. Instead of unveiling bold AI advances, the focus shifted to software tweaks and interface updates.

Analysts such as Craig?Moffett warned Apple would “be much more cautious about overpromising and will refrain from showing features that aren’t yet ready for prime time.”

Even Tim?Cook admitted: “It’s just taking a bit longer than we thought… But we are making progress, and we’re extremely excited to get the more personal Siri features out there.”

But this measured tone fell flat against competitors like Google and Microsoft, who have embedded AI more aggressively into search, productivity apps, and hardware.

Performance under scrutiny

Apple’s AI travels at a stately pace in a fast-moving race.

As Niles pointed out, Apple dedicates less than three per cent of revenue to capex and only eight per cent to R&D – well behind peers such as Microsoft (around 12 per cent) and Meta (25 per cent).

Despite commanding a premium market valuation – a high?20s PE compared with broader S&P 500 multiples in the low?20s – Apple’s AI delays and competitive pressures offer little margin for error.

Apple also grapples with external challenges: a 20 per cent drop in its stock this year, regulatory scrutiny of its services division (with gross margins near 74 per cent), and rising tariff risks amid US–China trade tensions.

As Forrester analyst Thomas?Husson noted: “The trade war and uncertainty linked to tariff policy is of much more concern today for Apple’s business than the perception that Apple is lagging behind on AI innovation.”

The Darwinian edge

Niles frames the dilemma through the lens of Darwin.

“The number one thing, especially if you’re a technology investor, but just an investor in general, is what Charles Darwin said… it’s not the strongest of the species that survive, nor the most intelligent, but the one most adaptable to change”, he said.

Apple’s success may now depend on whether it can abandon its perfectionist pace and embrace agility.

As AI reshapes tech at breakneck speed, Apple faces a stark choice – to cling to its legacy model of cautious refinement, or sprint to catch up with rivals rewriting the rules of computing.

By City AM 

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Foxconn sends 97% of India iPhone exports to U.S. as Apple tackles Trump’s tariffs

By Reuters
June 13, 2025 

An Apple iPhone XR is held at the Steve Jobs Theater after an event to announce new products, in Cupertino, Calif. (AP Photo/Marcio Jose Sanchez, File)

NEW DELHI — Nearly all the iPhones exported by Foxconn from India went to the United States between March and May, customs data showed, far above the 2024 average of 50 per cent and a clear sign of Apple’s efforts to bypass high U.S. tariffs imposed on China.

The numbers, being reported by Reuters for the first time, show Apple has realigned its India exports to almost exclusively serve the U.S. market, when previously the devices were more widely distributed to countries including the Netherlands, the Czech Republic and Britain.

During March-May, Foxconn exported iPhones worth US$3.2 billion from India, with an average 97 per cent shipped to the United States, compared to a 2024 average of 50.3 per cent, according to commercially available customs data seen by Reuters.Latest news & updates on tariffs and the trade war here

India iPhone shipments by Foxconn to the United States in May 2025 were worth nearly US$1 billion, the second-highest ever after the record US$1.3 billion worth of devices shipped in March, the data showed.

Apple declined to comment, while Foxconn did not respond to a Reuters request for comment.

U.S. President Donald Trump on Wednesday said China will face 55 per cent tariffs after the two countries agreed on a plan, subject to both leaders’ approval, to ease levies that had reached triple digits.

India is subject, like most U.S trading partners, to a baseline 10 per cent tariff and is trying to negotiate an agreement to avert a 26 per cent “reciprocal” levy that Trump announced and then paused in April.

Apple’s increased production in India drew a strong rebuke from Trump in May. “We are not interested in you building in India, India can take care of themselves, they are doing very well, we want you to build here,” Trump recalled telling CEO Tim Cook.

In the first five months of this year, Foxconn has already sent iPhones worth US$4.4 billion to the U.S. from India, compared to US$3.7 billion in the whole of 2024.

Apple has been taking steps to speed up production from India to bypass tariffs, which would make phones shipped from China to the U.S. much more expensive. In March, it chartered planes to transport iPhone 13, 14, 16 and 16e models worth roughly US$2 billion to the United States.

Apple has also lobbied Indian airport authorities to cut the time needed to clear customs at Chennai airport in the southern state of Tamil Nadu from 30 hours to six hours, Reuters has reported. The airport is a key hub for iPhone exports.

“We expect made-in-India iPhones to account for 25 per cent to 30 per cent of global iPhone shipments in 2025, as compared to 18 per cent in 2024,” said Prachir Singh, senior analyst at Counterpoint Research.

Tata Electronics, the other smaller Apple iPhone supplier in India, on average shipped nearly 86 per cent of its iPhone production to the U.S. during March and April, customs data showed. Its May data was not available.Latest updates on investing here

The company, part of India’s Tata Group, started exporting iPhones only in July 2024, and only 52 per cent of its shipments went to U.S. during 2024, the data showed.


Tata declined to comment on the numbers.

Indian Prime Minister Narendra Modi has in recent years promoted India as a smartphone manufacturing hub, but high duties on importing mobile phone components compared to many other countries means it is still expensive to produce the devices in India.

Apple has historically sold more than 60 million iPhones in the U.S. each year, with roughly 80 per cent made in China.

---

Reporting by Aditya Kalra and Munsif Vengattil; Editing by Kate Mayberry and Rachna Uppal.

CAPPLETALI$M

Apple under pressure to shine after AI stumble


By AFP
June 8, 2025


Image: — © AFP
Glenn CHAPMAN

Pressure is on Apple to show it hasn’t lost its magic despite broken promises to ramp up iPhones with generative artificial intelligence (GenAI) as rivals race ahead with the technology.

Apple will showcase plans for its coveted devices and the software powering them at its annual Worldwide Developers Conference (WWDC) kicking off Monday in Silicon Valley.

The event comes a year after the tech titan said a suite of AI features it dubbed “Apple Intelligence” was heading for iPhones, including an improvement of its much criticized Siri voice assistant.

“Apple advertised a lot of features as if they were going to be available, and it just didn’t happen,” noted Emarketer senior analyst Gadjo Sevilla.

Instead, Apple delayed the rollout of the Siri upgrade, with hopes that it will be available in time for the next iPhone release, expected in the fall.

“I don’t think there is going to be that much of a celebratory tone at WWDC,” the analyst told AFP. “It could be more of a way for Apple to recover some credibility by showing where they’re headed.”

Industry insiders will be watching to see whether Apple addresses the AI stumble or focuses on less splashy announcements, including a rumored overhaul of its operating systems for its line of devices.

“The bottom line is Apple seemed to underestimate the AI shift, then over-promised features, and is now racing to catch up,” Gene Munster and Brian Baker of Deepwater Asset Management wrote in a WWDC preview note.

Rumors also include talk that Apple may add GenAI partnerships with Google or Perplexity to an OpenAI alliance announced a year ago.

– ‘Double black eye’ –

Infusing its lineup with AI is only one of Apple’s challenges.

Developers, who build apps and tools to run on the company’s products, may be keen for Apple to loosen its tight control of access to iPhones.

“There’s still a lot of strife between Apple and developers,” Sevilla said. “Taking 30 percent commissions from them and then failing to deliver on promises for new functionality—that’s a double black eye.”

A lawsuit by Fortnite maker Epic Games ended with Apple being ordered to allow outside payment systems to be used at the US App Store, but developers may want more, according to the analyst.

“Apple does need to give an olive branch to the developer community, which has been long-suffering,” Sevilla said. “They can’t seem to thrive within the restrictive guardrails that Apple has been putting up for decades now.”

Apple is expected to lay out its path forward when it comes to artificil intelligence and its closely guarded ‘ecosystem’ of devices and software at its annual Worldwide Developers Conference in Silicon Valley – Copyright AFP Nic Coury

As AI is incorporated into Apple software, the company may need to give developers more ability to sync apps to the platform, according to Creative Strategies analyst Carolina Milanesi.

“Maybe with AI it’s the first time that Apple needs to rethink the open versus closed ecosystem,” Milanesi said.

– Apple on defensive –

Adding to the WWDC buildup is that the legendary designer behind the iPhone, Jony Ive, has joined with ChatGPT maker OpenAI to create a potential rival device for engaging with AI.

“It puts Apple on the defensive because the key designer for your most popular product is saying there is something better than the iPhone,” Sevilla said.

While WWDC has typically been a software-focused event, Apple might unveil new hardware to show it is still innovating, the analyst speculated.

And while unlikely to come up at WWDC, Apple has to deal with tariffs imposed by US President Donald Trump in his trade war with China, a key market for sales growth as well as the place where most iPhones are made.

Trump has also threatened to hit Apple with tariffs if iPhone production wasn’t moved to the US, which analysts say is impossible given the costs and capabilities.

“The whole idea of having an American-made iPhone is a pipe dream; you’d have to rewrite the rules of global economics,” said Sevilla.

One of the things Apple has going for it is that its fans are known for their loyalty and likely to remain faithful regardless of how much time it takes the company to get its AI act together, Milanesi said.

“Do people want a smarter Siri? Hell yeah,” Milanesi said. “But if you are in Apple, you’re in Apple and you’ll continue to buy their stuff.”

CAPPLETALI$M

Apple denies barring Fortnite from EU stores in Epic dispute

By Mark Gurman
May 16, 2025 

The Epic Games Inc. Fortnite: Battle Royale video game is displayed for a photograph on an Apple Inc. iPhone in Washington, D.C., U.S. Fortnite, the hit game that's denting the stock prices of video-game makers after signing up 45 million players, didn't really take off until it became free and a free-for-all.

 Photographer: Andrew Harrer/Bloomberg (Andrew Harrer/Bloomberg)

Apple Inc. and Epic Games Inc. sparred over whether the iPhone maker was obstructing access to the hit game Fortnite, the latest tussle in a long-running feud over Apple’s control of game distribution revenue.

The game developer said that Apple “blocked” its latest Fortnite app submission so that it can’t be released in the U.S. or on the third-party Epic Games Store in the EU. “Now, sadly, Fortnite on iOS will be offline worldwide until Apple unblocks it,” the company wrote on its X account.

An Apple spokesperson responded later on Friday, saying that the company “did not take any action to remove the live version of Fortnite from alternative distribution marketplaces” in the EU. Apple said that it asked the game company’s European division, Epic Sweden, to “resubmit the app update without including the US storefront of the App Store so as not to impact Fortnite in other geographies.”

It’s the latest conflict in years of acrimony between the two companies. They have fought in court over Apple’s App Store policies, including the commissions it charges on in-app purchases — a key source of Epic Games revenue.

Epic Games said it submitted Fortnite to the U.S. App Store last week, aiming to return it to US iPhone users for the first time in three years. That move followed a judge ruling that Apple must allow third-party apps to steer users to the web to complete in-app purchases without taking a commission. Apple didn’t comment on if it would allow Fortnite back into the U.S. store.

On Wednesday, Epic pulled its initial submission after not hearing back from Apple and resubmitted it with updated content to match the game on other platforms.

(Updated with Apple not commenting on if Fortnite will return to US App Store.)

©2025 Bloomberg L.P.

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Apple eases App Store rules under court pressure


By AFP
May 2, 2025


Analysts don't expect letting developers link to payment platforms outside the App Store to be a major hit to revenue generated by Apple's services business - Copyright AFP Hector RETAMAL

Glenn CHAPMAN

Apple on Friday relaxed its App Store payment rules in the face of a scathing court order, with Spotify quick to reap the benefit.

Apple’s update to its App Store guidelines let developers know they could now provide links to outside payment platforms, allowing people to buy apps featured in its US online shop without paying through the App Store.

The rule change came just two days after a US judge accused Apple of defying an order to loosen its grip on the App Store payment system to the point that criminal charges could be warranted.

Music streaming giant Spotify said Friday that Apple had approved an update “that will finally allow us to freely show clear pricing information and links to purchase” in its app in the US App Store.

“In a victory for consumers, artists, creators, and authors, Apple has approved Spotify’s US app update,” the Sweden-based service said in a post on X.

“Today represents a significant milestone for developers and entrepreneurs everywhere who want to build and compete on a more level playing field.”

Epic Games chief executive Tim Sweeney shared the Spotify post along with a message of congratulations for it “being the first major iOS app to exercise its court mandated right to do digital commerce with customers free of Apple obstruction, interference, and the Apple Tax!”

US District Court Judge Yvonne Gonzalez Rogers found that Apple “willfully” violated an injunction she issued at trial, with the company instead creating new barriers to competition with the App Store and even lying to the court in the process.

Gonzalez Rogers ordered the injunction be enforced.

An Apple spokesperson told AFP it strongly disagrees with the judge’s decision and will appeal to a higher court, but would comply.



– ‘Junk fees’ –



Fortnite-maker Epic launched the case in 2021 aiming to break Apple’s grip on the App Store, accusing the iPhone maker of acting like a monopoly in its shop for digital goods and services.

After a trial, Gonzalez Rogers ruled that Apple’s control of the App Store did not amount to a monopoly, but that it must let developers include links to other online venues for buying content or services.

Apple’s response to the trial order included new barriers and requirements including “scare screens” to dissuade people from buying digital purchases outside of its App Store, the judge concluded.

“Apple’s 15-30 percent junk fees are now just as dead here in the United States of America as they are in Europe under the Digital Markets Act,” Sweeney said in a post on X.

The act, which went into effect last year in Europe, requires Apple and other US tech giants to open up their platforms there to competition.



– Courting developers –



Apple has made a priority of building up its services business as the Silicon Valley titan tries to reduce its reliance on iPhone sales for revenue.

The unit, which includes Apple’s television and music streaming services along with iCloud data storage and App Store income, now accounts for more than a quarter of the company’s revenue.

The App Store changes include letting app makers use alternate payment systems free or charge or commission, according to Apple.

“Whatever revenue Apple was getting, it is not worthwhile for them to continue to look as if they don’t have the developers best interest at heart,” said Creative Strategies analyst Carolina Milanesi.

Apple will be courting app makers at its annual developers conference in June.

“There’s still a lot of revenue coming in from subscriptions, iCloud and more, so this is not the end of the App Store being a good source of revenue for Apple,” Milanesi said.

Most apps in the App Store make their money from ads, and Apple shares in that revenue, according to the analyst.

“And for smaller developers, the App Store is still the best way to reach consumers without having to invest the kind of money that an Epic Games or Spotify can invest in setting up alternative payment methods,” the analyst added.

CAPPLETALI$M

Apple expects $900 mn tariff hit as shifts US iPhone supply to India

 AFP
May 1, 2025


Apple chief Tim Cook says most of the iPhones brought into the United States will originate in India as the tech company tries to soften the blow from the US trade war with China - Copyright AFP SONNY TUMBELAKA
Glenn CHAPMAN

Apple on Thursday reported first-quarter profit above expectations but warned that US tariffs could cost the company and was disrupting its supply chain.

Apple expects US tariffs to cost $900 million in the current quarter, even though their impact was “limited” at the start of this year, chief executive Tim Cook said on an earnings call.

Cook said he expected “a majority of iPhones sold in the US will have India as their country of origin,” adding that Apple’s products were exempt from Trump’s most severe reciprocal tariffs for now.

“We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,” Cook said. “Assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs.”

Tit-for-tat exchanges have seen hefty US levies imposed on China, with Beijing setting retaliatory barriers on US imports.

High-end tech goods such as smartphones, semiconductors and computers received a temporary reprieve from US tariffs.

“Apple proactively built up inventory ahead of anticipated tariff policies,” said Canalys research manager Le Xuan Chiew. “With ongoing fluctuations in reciprocal tariff policies, Apple is likely to further shift US-bound production to India to reduce exposure to future risks.”

While iPhones produced in mainland China still account for the majority of US shipments, production in India ramped up toward the end of the quarter, according to Canalys.

Cook said Vietnam would be the country of origin for almost all iPad, Mac, Apple Watch and AirPod products sold in the US.

China will continue to be where most Apple products are made for sale outside the US, he insisted.

Apple’s revenue of $95.4 billion in the recently ended quarter was driven by iPhone sales, with the company taking in $17 billion in the China market, according to the earnings report. Profit for the quarter was $24.8 billion.

Apple shares slipped more than 3 percent in after-market trading.

“The real story is in Tim Cook’s plans to navigate these unprecedented trade challenges,” said Emarketer analyst Jacob Bourne.

Apple’s plan to shift manufacturing to India “raises pressing questions about execution timeline, capacity limitations, and potentially unavoidable cost increases that will shrink margins, be passed to consumers, or have a mix of consequences,” Bourne added.

CAPPLETALI$M

France fines Apple 150 million euros over privacy feature

Paris (AFP) – French antitrust authorities handed Apple a 150-million-euro ($162-million) fine on Monday over its app tracking privacy feature, which is also under scrutiny in several other European countries.

Issued on: 31/03/2025 

Apple's privacy feature requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites © JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/AFP/File

The watchdog said the way Apple implemented its App Tracking Transparency (ATT) software was "neither necessary nor proportionate to the company's stated goal to protect user data" and also penalised third-party publishers.

In addition to the fine, Apple will have to publish the decision on its website for seven days.

Authorities in Germany, Italy, Romania and Poland have opened similar probes over ATT, which Apple promotes as a privacy safeguard.

"While we are disappointed with today's decision, the French Competition Authority has not required any specific changes to ATT," Apple said in a statement.


The feature, introduced by Apple in 2021, requires apps to obtain user consent through a pop-up window before tracking their activity across other apps and websites.

If they decline, the app loses access to information on that user which enables ad targeting.

Critics have accused Apple of using the system to promote its own advertising services while restricting competitors.
'More control over privacy'

In its decision, France's Competition Authority said the ATT feature leads to an excessive number of consent windows for third-party apps on iPhones and iPads, making the experience more cumbersome.

It also found that Apple's system required users to opt out of ad tracking twice rather than once, "undermining the neutrality of the feature" and causing economic harm to app publishers and ad service providers.

The authority added that Apple's approach disproportionately affects smaller publishers, who rely heavily on third-party data collection to fund their businesses.

Following complaints from advertising industry players who claimed ATT hindered their ability to target users, France's competition watchdog initially declined to impose emergency measures in 2021 but continued its investigation.

Apple said on Monday that ATT "gives users more control of their privacy through a required, clear, and easy-to-understand prompt about one thing: tracking".

"That prompt is consistent for all developers, including Apple, and we have received strong support for this feature from consumers, privacy advocates, and data protection authorities around the world," it said.

© 2025 AFP

Apple heavily condemned in France for its ad targeting system

Paris (AFP) - Apple was fined €150 million by the French Competition Authority on Monday for abuse of a dominant position in the context of targeted advertising on its devices, as similar investigations target the company in other European countries.


Published: 31/03/2025 - 

Apple was fined €150 million by the French Competition Authority on Monday for abuse of a dominant position in the context of advertising targeting on its devices © Philippe HUGUEN / AFP/Archives

The American giant has been sanctioned for the use of its ATT ("App Tracking Transparency") device, presented as an additional protection of users' private data.

The "implementation methods (of this system) are neither necessary nor proportionate to Apple's stated objective of data protection", which penalises third-party publishers, the body stressed on Monday at a press conference.

"While we are disappointed by today's decision, the French Competition Authority has not required specific changes to App Tracking Transparency (ATT)," Apple said in a statement.

The French antitrust authority has indicated that it is up to the American company to comply.

This amount of 150 million euros "seemed appropriate" and "reasonable" to us, explained Benoît Coeuré, the president of the French competition watchdog, which he said represents "a fairly modest sum when you take into account Apple's turnover", which is close to $400 billion in 2024.

Apple will also have to publish a summary of the decision on its website for seven days.
Small publishers penalised

To justify its decision, the Competition Authority notes that this device "leads to a multiplication of consent collection windows, excessively complicating the journey of users of third-party applications" on iPhones and iPads.

In addition, the fact that the user has to refuse advertising tracking on third-party applications twice, instead of once, "undermines the neutrality of the system, causing a certain economic damage to application publishers and advertising service providers".

The regulator believes that the system as it is implemented by Apple "penalizes in particular the smallest publishers" who "depend largely on the collection of third-party data to finance their activity".

Introduced by the American giant in early 2021, the ATT system opens a consent window for the opening of each application.

If a user clicks "no," the app loses access to that person's advertising ID, a unique number that allows them to be tracked online.

This device was suspected of favoring Apple's own services to the detriment of third-party applications.

"Important victory"

"This decision marks an important victory for the 9,000 companies in the media and online advertising ecosystem," several players in the sector, including Alliance Digitale, the Syndicat des Régies Internet and the Union of Media Consulting and Buying Companies, said in a joint statement.

They had referred the matter to the French competition watchdog in 2020 to denounce an obstacle to their targeting capacity, which had initially rejected a request for interim measures in 2021 but had continued the investigation on the merits.

This decision should be observed in Germany, where Apple has been in the crosshairs since June 2022.

The American firm suffered a legal setback in mid-March after the courts confirmed that it had been placed under enhanced surveillance, leaving the group under the threat of measures to regulate its activity.

The competition authorities of Italy, Romania and Poland have also launched similar investigations.

For its part, the European Union reaffirmed in February that it would strongly defend its legislation on digital services targeting American tech giants.

And this, even in the event of retaliatory measures from Washington: President Trump has indicated that he will consider customs duties in response to the "taxes, fines and regulatory constraints on digital services" that would apply to American companies in the EU, and in particular the "tech" giants.

© 2025 AFP

CAPPLETALI$M

‘Something is rotten’: Apple’s AI strategy faces doubts


By AFP
March 29, 2025


Apple CEO Tim Cook in June 2024 announces plans to incorporate AI into Apple software and hardware - Copyright GETTY IMAGES NORTH AMERICA/AFP/File JUSTIN SULLIVAN

Thomas URBAIN with Alex PIGMAN in Washington

Has Apple, the biggest company in the world, bungled its generative artificial intelligence strategy?

Doubts blew out into the open when one of the company’s closest observers, tech analyst John Gruber, earlier this month gave a blistering critique in a blog post titled “Something Is Rotten in the State of Cupertino,” which is home to Apple’s headquarters.

The respected analyst and Apple enthusiast said he was furious for not being more skeptical when the company announced last June that its Siri chatbot would be getting a major generative AI (genAI) upgrade.

The technology, to be released as part of the Apple Intelligence suite of iPhone software, was to catapult the much-derided voice assistant’s capabilities beyond just giving the weather or setting a timer.

Investors hoped the upgrade would launch the iPhone on a much-needed super-cycle, in which a new feature on the smartphone proves so tantalizing that users rush to snap up the latest and most expensive models.

Apple Intelligence and its promised Siri upgrade was very much supposed to fuel that demand, starting as soon as the release of the iPhone 16, which came out in September.

Instead Apple quietly announced on March 7 that the highly personalized Siri would not be coming as early as hoped.

Adding to the pressure, Amazon in February announced a new version of its Alexa voice assistant that is powered by genAI.

“It’s going to take us longer than we thought to deliver on these features and we anticipate rolling them out in the coming year,” Apple said.



– Data privacy vs AI –



Theories vary on why Apple is having trouble seizing the AI moment.

For Marcus Collins, marketing professor at the University of Michigan, Apple’s struggles with genAI and Siri in particular may be more due to the importance the company gives to data privacy than any problem with innovating.

For AI to be personalized, it needs to consume massive amounts of personal data.

And “Apple hasn’t let up on the gas when it comes to privacy,” Collins told AFP.

But at some point, “people’s information, creations, language… are all being exploited to help grow better AI,” and squaring that circle might be harder than bargained for by Apple.

For tech analyst Avi Greengart, “The fact that Apple has advertised Apple Intelligence so heavily with the iPhone 16 is a bit of a black eye, because most of what was promised in Apple Intelligence is not in the iPhone 16.”

But he cautions that even if Google’s Gemini AI features in its Android line of phones are way ahead of anything Apple has delivered, customers may not have noticed much.

“Even the best implementation of AI on phones today doesn’t fundamentally change the way you use your phone yet,” he said.

“No one has delivered on the full vision and that gives Apple time to catch up — but it certainly needs to catch up.”

Still, Apple’s harshest critics complain that Apple rests too much on its laurels and the uber-popularity of its iPhone.

Moreover, the stumbles on AI came swiftly after lackluster reception of Vision Pro, Apple’s expensive virtual reality headset that has failed to gain traction since its release in 2024.

Despite the recent negative headlines for Apple and the fact that its share price is down 8 percent since the start of the year, it remains the world’s most valuable company and its stock is still up almost 30 percent from a year ago.

And Apple reported a whopping $124.3 billion in revenue in the year-end holiday quarter, even if sales growth fell shy of market expectations.
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