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Showing posts sorted by date for query CAPPLETALI$M. Sort by relevance Show all posts

Saturday, September 27, 2025

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“The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place,” Apple said in a formal submission to the European Commission as part of a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Pushing for wholesale reform of the law if it is not repealed, Apple suggested enforcement “should be undertaken by an independent European agency” rather than the commission, the EU’s executive arm and digital watchdog.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.

Thursday, September 25, 2025

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.


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.

Wednesday, August 20, 2025

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.

Sunday, June 29, 2025

CAPPLETALI$M

Tech Giants Sprint Ahead While Apple Walks on AI

  • 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 

Friday, June 13, 2025

CAPPLETALI$M

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.

Sunday, June 08, 2025

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.”

Monday, May 19, 2025


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.

Saturday, May 03, 2025

CAPPLETALI$M
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.

Monday, March 31, 2025

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

Saturday, March 29, 2025

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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Tuesday, January 14, 2025

CAPPLETALI$M;  AGAINST THE GRAIN

Apple asks investors to keep DEI policies, among companies facing shareholder vote


The proposed DEI rollback plan "inappropriately seeks to micromanage the company's programs and policies by suggesting a specific means of legal compliance," Apple’s board of directors, which includes CEO Tim Cook (seen in August in Venice, Italy) argued. File Photo by Rune Hellestad/ UPI | License Photo

Jan. 13 (UPI) -- Tech giant Apple is asking investors to keep its diversity, equity and inclusion policies amid a sweeping reversal by other technology and business entities following President-elect Trump's November election win.

Claiming Apple's DEI efforts expose companies to "litigation, reputational and financial risks," the conservative think tank National Center for Public Policy Research called on Apple to nix its policy, but Apple leadership rejected NCPPR's proposal, according to a proxy filing.

"The proposal is unnecessary as Apple already has a well-established compliance program," the company wrote in part to investors.

It will be voted on Feb. 25 by shareholders at Apple's next annual meeting to be held virtually.

The rollback plan "inappropriately seeks to micromanage the Company's programs and policies by suggesting a specific means of legal compliance," argued Apple's board of directors.

It follows a similar effort by NCPPR at shopping conglomerate Costco, which recently reaffirmed support for its own DEI policy as it approaches a Jan. 23 shareholder vote roughly a month before Apple is set to vote on the same topic.

It's one of several other large companies -- including colleges, universities and states -- that swiftly lined up to re-examine or ditch DEI initiatives amid a cultural backlash and a 2023 U.S. Supreme Court ruling that effectively ended "affirmative action" policies.

According to Apple, its management team and board, which include CEO Tim Cook, "maintain active oversight of legal and regulatory risks and compliance for our global business."

The company added its approach to DEI "reflects careful determinations regarding our legal compliance and business practices that require complex analysis, extensive knowledge and understanding of the employment and other laws and regulations in multiple jurisdictions," the board wrote in its urge to shareholders to maintain its current policy approach.

Meanwhile, Meta, the parent company of Instagram and Facebook, announced last week it was ending its DEI programs.

"The legal and policy landscape surrounding diversity, equity and inclusion efforts in the US is changing," Janelle Gale, Meta's vice president of human resources, wrote in an internal memo.

It joined others like Amazon, McDonalds, Alphabet, Walmart, Microsoft and Zoom in a reversal of DEI policies or other changes after threats of retaliation by right-wing groups.

Last year in March, Alabama enacted a law banning state and federal funding for DEI programs in the state's public schools and universities. Florida likewise banned the use of public money for DEI programming early last year in a long-standing fight against a so-called "woke" political agenda.

It came on the heels of CEO Mark Zuckerberg's announcement on Tuesday that Meta will, among other things, end its third-party fact-checking program in order to shift to a user-generated "Community Notes" format similar to Elon Musk's X over the coming months.

Meanwhile, Home improvement chain Lowe's revealed in August its plan to end participation in Human Rights Campaign-sponsored surveys, and that it will place its diversity resource groups under one umbrella, according to a leaked internal memo.

That arrived after Lowe's recently earned a "perfect" rating by the pro-LGBTQ+ HRC, and CEO Marvin Ellison was named last June the "Ethical Leader of the Year" by the Society for Human Resource Management.


Anti-woke: With Trump returning, US firms back off on DEI

Laura Kabelka | Annika Sost both in Washington
DW
January 12, 2025

Backlash against diversity, equity and inclusion policy is surging in the US, and major companies are scaling back their efforts. Trump's second presidency is likely o intensify this trend. So why are experts hopeful?

Walmart said it will not renew a commitment to create a racial equity center, and has ended its supplier diversity goals.
Image: Scott Olson/Getty Images

In the United States, the terms diversity, equity and inclusion (DEI) have become so politicized and partisan that big corporations such as Meta, McDonald's, Walmart, Boeing and Ford are dialing down their policies.

According to experts, this doesn't necessarily mean that businesses no longer care about these issues, but it shows they're rethinking their strategies to stay out of trouble. This follows rising lawsuits and online campaigns by conservatives claiming reverse discrimination.

"Every corporate leader is now dealing with the fact that DEI in 2025 is going to be a lot more controversial, is going to be more of a risk, and is something that they have to manage," DEI strategist and author Lily Zheng told DW.
What is DEI and who benefits from it?

In recent decades — and especially since the Black Lives Matter movement protests picked up following the police killing of George Floyd in 2020 — DEI has blossomed across the US. Many companies have implemented training to identify biases, mentorship programs for underrepresented groups, diverse hiring practices or transparent promotion criteria.

DEI policies aim to create fair environments not only in workplaces, but also in education and institutions. Addressing systemic inequalities and discrimination, they encourage representation and participation of people of different genders, races, abilities, sexual orientations and other identity markers.

David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at NYU, emphasizes that DEI is about "creating a level playing field for everyone."

Apart from moral reasons, there is also a business case to be made for DEI policies, Glasgow told DW. Studies show that tapping into a wider range of talent leads to more innovation and creativity. Plus: it can help companies reach a more diverse consumer base.


Progress comes in waves

But far from everyone is cheering for DEI.

"Ever since the Supreme Court decision on affirmative action in June 2023, there's been a significant uptick in anti-DEI lawsuits," Glasgow said. The ruling declared race-based admissions in colleges and universities unconstitutional and had a ripple effect across sectors.

Anti-DEI activists like Robby Starbuck are attacking such initiatives around the clock. In November 2024, he even claimed credit for ending Walmart's DEI program.



Donald Trump's former policy advisor and new cabinet nominee, Stephen Miller, has already filed lawsuits, including against Meta and Amazon, alleging DEI initiatives discriminate against white people.

Some of these lawsuits have been successful. In September, the Fearless Fund agreed to permanently close its grant program for Black women entrepreneurs as part of a settlement with a conservative group led by activist Edward Blum. The lawsuit alledged the program violated the Civil Rights Act of 1866 by discriminating based on race.

When Trump takes office in January, such lawsuits could gain even stronger footing, Glasgow believes: "He's going to appoint more judges that have conservative interpretations of anti-discrimination law. So, some of the lawsuits that we're tracking, I expect to be resolved in anti-DEI ways."

Donald Trump has pledged to 'eliminate all diversity, equity and inclusion programs across the entire federal government.'
Image: Brian Snyder/REUTERS

Glasgow acknowledges some critiques of DEI, such as approaches that rely on blame and shame, or efforts that lack rigor and effectiveness. "But I think there's also a broader backlash to progress on issues of social justice," he added.

The United States largest private employer, retailer Walmart, did not respond to DW's inquiry why they decided to phase out their racial-equity training. Another big company that took a step back from DEI said they could not comment because of the backlash they receive.

DEI strategist Zheng believes some business leaders are already scared of this riskier environment fearing "they're making decisions that unfortunately are going to have a big impact on probably their bottom line, their brand reputation, their employee retention, their morale."


A matter of rebranding?

For now, a large majority of corporate America still has DEI policies in place, a study by nonprofit business research organization The Conference Board found. And around 80% of the companies surveyed plan to maintain or increase their DEI resources over the next three years.

Experts like Lily Zheng think that even companies that are rolling back and becoming quieter about their commitments might still uphold their values. "Maybe they're calling it belonging. Maybe they're focusing on fairness. But either way, the bulk of these existing commitments doesn't seem to be changing," Zheng said.

Indeed, just weeks after Donald Trump's election win, Walmart updated its website and replaced a section it called "Belonging, diversity, Equity and Inclusion" simply with "Belonging."

Commenting on Walmart's and other companies' shifting strategies, Glasgow believes they are not saying "we no longer care about having a diverse workplace," rather they're saying: "Here are certain kinds of DEI programs that we're no longer going to adopt."

However, Lily Zheng pointed out that the absence of clear goals around DEI "might result in reduced investments," and if leaders hesitate to take a stand and express their commitment to these values, Zheng warned, "we might lose control of the narrative."

Edited by: Uwe Hessler

Laura Kabelka is a multimedia journalist with a focus on politics, digital topics and human rights.

Sunday, January 12, 2025

CAPPLETALI$M

Apple wants to keep diversity programs disavowed by other US firms



By AFP
January 12, 2025


Apple has made user privacy a cornerstone of its brand image 
- Copyright GETTY IMAGES NORTH AMERICA/AFP/File SCOTT OLSON

Apple’s board of directors has recommended shareholders vote against a proposal to end the company’s diversity, equity and inclusion (DEI) programs, going against the grain of decisions by other large US corporates.

The National Center for Public Policy Research, a conservative think tank, proposed Apple shareholders consider ending the firm’s DEI program to prevent lawsuits following a 2023 Supreme Court’s ruling against affirmative action in universities.

But the Apple board has recommended voting against the proposal when it meets late this month.

“The proposal is unnecessary as Apple already has a well-established compliance program,” said the board, which includes Tim Cook, the California-based company’s boss.

“The proposal also inappropriately attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams, and business strategies,” it said, accusing the think-tank of trying to “micromanage” the company.

Apple CEO Tim Cook attended the opening of his company’s newest store in Shanghai, amid growing worries over the iPhone maker’s market share in China
 – Copyright AFP STR, STR

The board said the iPhone maker “is an equal opportunity employer and does not discriminate in recruiting, hiring, training, or promoting on any basis protected by law”.

The proposal will be put to a shareholder vote at Apple’s annual general meeting on February 25.

Following in the footsteps of McDonald’s, Ford, Walmart and a host of others, Meta became the latest US firm to end its DEI programs.

The Friday announcement by Meta which owns Facebook and Instagram, comes amid what it described as “a changing legal and policy landscape”.

President-elect Donald Trump who takes office next week, has been a harsh critic of Meta and its owner Mark Zuckerberg for years, accusing the company of bias against him and threatening to retaliate against the tech billionaire once back in office.

Zuckerberg has been moving aggressively to reconcile with Trump since his election in November, including donating $1 million to his inauguration fund and hiring a Republican as his public affairs chief.

Republicans are also fiercely against DEI programs in corporate America, many of which were established in the aftermath of the Black Lives Matter movement and the nation’s attempt to reckon with longstanding racial disparities.

Read more: https://www.digitaljournal.com/business/apple-wants-to-keep-diversity-programs-disavowed-by-other-us-firms/article#ixzz8xAXerN00

Sunday, January 05, 2025

CAPPLETALI$M


Blood minerals

DRC case against Apple brings new hope in conflict minerals crisis

As the DRC brings an unprecedented case against Apple, and the company offers assurances that it will no longer use conflict minerals from central Africa, experts are questioning whether real change is on the horizon in illegal mining.


The town of Nyabibwe, eastern Congo, a once bustling outpost of artisanal mining. 
© Marc Hofer / AP

By: Melissa Chemam
03/01/2025 -  RFI

The war over so-called "conflict minerals" is more than two decades old, but the fight to prevent their exploitation by global tech companies is much newer.

In the Democratic Republic of the Congo (DRC), various armed groups – including both Congolese army and rival armed rebel groups, among them the M23 – occupy mines and trading routes, forcing miners to work for free.

Minerals from these mines, including tungsten, tin and tantalum (often referred to as the 3Ts), have been illegally smuggled through Rwanda for several years, and eventually exported to tech companies such as Apple, Tesla and Samsung.

But after the DRC filed criminal charges against Apple over the use of conflict minerals, there is renewed hope that this illegal mining could be brought to an end.

A criminal complaint was filed earlier in December against Apple's subsidiaries in France and Belgium, where the Congolese government alleges Apple uses conflict minerals laundered through international supply chains – which the American tech giant denies.

DRC files complaint against Apple over alleged illegal mineral exploitation

It is now up to judiciaries in France and Belgium, where the complaints were filed, to decide whether investigations will be initiated, which could set a legal precedent.


Public awareness

For Alex Kopp, senior campaigner on the NGO Global Witness's transition minerals team, the case signals positive change. He told RFI that there has been some progress, at least in terms of public awareness and consensus building.

The United States, France and Belgium say they have put regulations on conflict minerals in place, and the European Union passed a regulation in May 2017 to stop conflict minerals and metals from being exported to the EU, and to prevent EU smelters and refiners from using them.

Brussels lawyer Christophe Marchand said: "These complaints filed against Apple are a matter of great public interest at a time when European countries, consumers and non-governmental organisations are increasing their scrutiny of international supply chains."

But, Kopp added, the regulations "are not sufficiently enforced, and I don’t think they’ve had a real impact on the ground".

He hopes the upcoming Apple trial will create awareness of the need to legislate against illegal mining, and "push the international community to take appropriate measures".

According to the United Nations Group of Experts on the DRC, legitimate public and private players lack the resources to implement the traceability requirements necessary for access to the international market.


They say the EU strategy on mineral supply chain due diligence should include regulation, coupled with practical measures to support transparency, traceability and law enforcement in high-risk and conflict areas.

UN experts call for global system to trace critical minerals

That way, "EU companies and consumers could ensure that their purchases are promoting better governance and economic development in eastern DRC, rather than fuelling war," according to a report co-written by Gregory Mthembu-Salter, a former consultant on conflict minerals due diligence to the UN Group of Experts.

Groundbreaking case


The DRC alleges that Apple bought contraband supplies from its conflict-racked eastern region and from Rwanda, zones in which the materials are alleged to be mined illegally before being integrated into global supply chains.

According to a statement from lawyers representing the DRC, Apple's French and Belgian subsidiaries also deployed deceptive commercial practices in order to persuade consumers that its supply chains were clean.

Apple said in a statement that suppliers were told earlier this year to stop purchasing those minerals from the DRC and Rwanda.

Lawyers for the DRC called Apple's statement vague, but welcomed the company’s decision to stop sourcing minerals from the region – although they added that the company's statement about changes to its supply chain will have to be verified on the ground.


Kigali has dismissed the accusations, which the Rwandan government described as "a repetition of baseless allegations and speculation aimed at generating media interest about one of the world's largest companies".

"This is just the latest move by the DRC government, which constantly seeks to shift attention towards Rwanda with false accusations," spokesperson for the Rwandan government, Yolande Makolo, told news agencies.
A wider issue

According to Kopp, Apple is not alone in these practices. "Global Witness has reported that, along with Apple, Tesla, HP, Nokia, Blackberry, Motorola, Samsung and Intel may also have sourced conflict minerals from the African Great Lakes Region."

Outside Europe, the pressure is also mounting in the US on American companies.

In July, the US State Department issued a statement saying: "The United States remains concerned about the role that the illicit trade and exploitation of certain minerals, including artisanally and semi-industrially mined gold and tantalum, from the African Great Lakes Region continues to play in financing conflict."

It continued: "In many cases, these minerals directly or indirectly benefit armed groups and move out of the eastern DRC through Rwanda and also to Uganda before moving to major refining and processing countries. These supply chains facilitate illicit exploitation and taxation of these minerals, often involving acts of corruption."

DRC's own failings

There is also a lot the DRC’s government should do or should have done, Kopp said.

"I’m not referring now to the areas in North Kivu which are occupied by M23 and Rwandan forces, where the Congolese government has lost effective control over its territory, but to other areas in DRC where minerals have in the past been connected to armed conflict."

According to reports from Global Witness, the Congolese army has itself often illegally profited from minerals.

"The DRC hasn’t sufficiently implement its regulation how to deal with conflict minerals. DRC officials are running the ITSCI traceability scheme through which conflict minerals have been laundered over and over again over the last decade. Congolese are often involved in smuggling minerals over the border and DRC officials do little to stop them," Kopp told RFI.

Reports demonstrate that the Congolese authorities are in fact using this "scheme that's meant to ensure traceability" to do quite the opposite.

"The ITSCI traceability scheme has been used to launder conflict minerals in DRC," Kopp explains, citing evidence from the Global Witness 2022 "ITSCI Laundromat" report.

"Large amounts of minerals from unvalidated mines, including ones with militia involvement or that use child labour, enter the ITSCI supply chain and are exported, evidence suggests. ITSCI’s incident reporting frequently appears to downplay or ignore incidents that seriously compromise its supply chain," it reads.

For the years 2023 and 2024, UN Group Expert reports appear to provide evidence for continued conflict minerals laundering, which Global Witness are in the process of verifying.

Hope for change


For William Bourdon, one of the lawyers representing DRC against Apple, it's a case that should bring hope, tempered with caution.

"It is unprecedented for a company as powerful as Apple to publicly commit to 'cleaning up' the conditions of its mineral sourcing," he told RFI.

"However, we must remain extremely vigilant. Companies sometimes make commitments that excite everyone but fail to deliver. That is why we are calling for Apple to commit to a full process of verification and transparency."