Apple’s new iPhones get faster chips, better cameras, new charging ports

CUPERTINO, California — Apple on Tuesday unveiled its next generation of iPhones – a line-up that will boast better cameras, faster processors, a new charging system, and a price hike for the fanciest model.

The showcase at Apple’s headquarters in Cupertino, California, comes as the company tries to reverse a mild slump that has seen its sales drop from last year in three consecutive quarters. The malaise is a key reason Apple’s stock price has dipped by about 10% since mid-July, dropping the company’s market value below the $3 trillion threshold it reached for the first time earlier this summer.

Investors apparently weren’t impressed with what Apple rolled out Tuesday. The company’s shares fell nearly 2% Tuesday, a steeper decline than the major market indexes.

As has been the case with Apple and other smartphone makers, the four types of iPhone 15 models aren’t making any major leaps in technology. But Apple added enough new bells and whistles to the top-of-the-line model – the iPhone 15 Pro Max – to boost its starting price by $100, or 9%, from last year’s version to $1,200. As part of the higher base price, the cheapest iPhone 15 Pro Max will provide 256 megabytes of storage, up from 128 megabytes for the least expensive version of the iPhone 14 Pro Max.

Apple is holding the line on prices for rest of the line-up, with the basic iPhone 15 selling for $800, the iPhone 15 Plus for $900 and the iPhone 15 Pro for $1,000.

Although maintaining those prices are bound to squeeze Apple’s profit margins and put further pressure on the company’s stock price, Investing.com analyst Thomas Monteiro believes it’s a prudent move with still-high inflation and spiking interest rates pinching household budgets. “The reality was that Apple found itself in a challenging position leading up to this event,” Monteiro said.

And the price hike for the iPhone 15 Pro Max could help Apple boost sales if consumers continue to gravitate toward the company’s premium models. Wedbush Securities analyst Dan Ives expects the iPhone 15 Pro and Pro Max to account for about 75% of the device’s total sales in the upcoming year.

All the new models will be available in stores September 22, with pre-orders beginning this Friday.

One of the biggest changes that Apple announced is a new way to charge the iPhone 15 models and future generations. The company is switching to the USB-C standard that is already widely used on many devices, including its Mac computers and many of its iPads.

Apple is being forced to phase out the Lightning port cables it rolled out in 2012 because of a mandate that European regulators plan to impose in 2024.

Although consumers often don’t like change, the transition to USB-C ports may not be that inconvenient. That’s because the standard is already widely used on a range of computers, smartphones and other devices people already own. The shift to USB-C may even be a popular move since that standard typically charges devices more quickly and also offers faster data transfer speeds.

The basic iPhone 15 models have been redesigned to include a shape-shifting cutout on the display screen that Apple calls its “Dynamic Island” for app notifications – a look that was introduced with last year’s Pro and Pro Max devices. The basic models are also getting a faster chip used in last year’s Pro and Pro Max models, while the next generation of the premium iPhone 15s will run on an even more advanced processor that will enable the devices to accommodate the same kind of video games that typically require a console.

The iPhone 15 Pro and Pro Max also will be equipped with what Apple maintains is the equivalent of seven camera lenses. They will include periscope-style telephoto lens that will improve the quality of photos taken from far distances. The telephoto lens boasts a 5x optical zoom, which lags the 10x optical zoom on Samsung’s premium Galaxy S22 Ultra, but represents an upgrade from the 3x optical zoom on the iPhone 14 Pro and Pro Max.

In anticipation of next year’s release of Apple’s mixed reality headset, the iPhone 15 Pro and Pro Max will also have a spatial video option designed for viewing on that headset.

Apple is encasing the premium models in titanium that the company says is the same alloy used on some space ships.

Besides its new iPhones, Apple also announced its next generation of smartwatches – a product that made its debut nearly a decade ago. The Series 9 Apple Watch, available in stores September 22, will include a new gesture control that will enable users to control alarms and answer phone calls by double snapping their thumbs with a finger.

- Associated Press -

Apple to spend billions of dollars on US-made 5G tech

SAN FRANCISCO, United States — Apple announced a multi-billion-dollar collaboration with US tech firm Broadcom to make "cutting edge" components for wirelessly connecting to high-speed 5G telecom networks.

The iPhone maker did not specify exactly how many billions of dollars it would put into the Broadcom alliance, but said it is part of a commitment to invest in the US economy.

"We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing," Apple chief executive Tim Cook said in a statement.

"All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the US economy because we have an unshakable belief in America's future."

The alliance will include designing and manufacturing sophisticated radio frequency components and other "cutting-edge wireless connectivity" parts in the United States, according to Apple.

"5G technology is shaping the future of next-generation consumer electronics -- and Apple is spending tens of billions of dollars to develop this field in the United States," the company said.

Apple is on pace to meet a commitment it made in 2021 to invest $430 billion in the US economy over the course of five years, according to the Silicon Valley technology titan.

It said those investments include money put into data centers, capital projects and suppliers.

Agence France-Presse

China iPhone factory under lockdown boosts bonuses for workers who stay

BEIJING - The world's largest iPhone factory in central China told staff Tuesday it would quadruple their bonuses if they remained at the plant after scores of workers fled a Covid outbreak at the facility.

China is the last major economy committed to a zero-Covid strategy, persisting with snap lockdowns, mass testing and lengthy quarantines in a bid to stamp out emerging outbreaks.

But new variants have tested local officials' ability to snuff out flare-ups faster than they can spread, causing much of the country to live under an ever-changing mosaic of Covid curbs.

Taiwanese tech giant Foxconn's plant in Zhengzhou has been under lockdown since mid-October, with the company saying it is testing employees daily and keeping them in a closed loop.

But complaints from workers circulating on Chinese social media have alleged poor working conditions and inadequate virus protection for employees who are not infected.

Videos shared online over the weekend showed Foxconn employees fleeing the company's campus and returning to their hometowns on foot, in a bid to avoid Covid travel restrictions.

Foxconn's Zhengzhou plant said on its official WeChat account that, starting from Tuesday, employees will receive a daily bonus of 400 yuan ($55) for showing up to work -- quadruple the previous subsidy of 100 yuan a day.

Staff will also receive additional bonuses if they attend work for 15 days or longer in November, reaching 15,000 yuan if they record full attendance this month.

Foxconn -- which supplies iPhones to US tech firm Apple -- has promised to do more to help employees and organize buses to transport workers back to their hometowns should they wish to leave, in what it has called a "protracted battle" against the virus.

Local governments in the area surrounding the city asked fleeing workers to register with authorities if they returned home and to complete several days of quarantine upon arrival.

The southern semi-autonomous territory of Macau also announced mass testing of its 700,000 population Tuesday after a handful of cases were discovered, triggering a lockdown of one of its casinos.

It is a fresh blow for the city's struggling gambling industry, which had been poised for recovery after plans to relax travel between mainland China and the former Portuguese colony this month.

China reported more than 2,000 fresh domestic infections Tuesday for the second straight day, as curbs ramped up in response to a wave of regional outbreaks. 

The southern Chinese manufacturing hub of Guangzhou also announced partial lockdowns in several districts Monday in response to rising case numbers.

Guangzhou reported more than 520 fresh infections on Tuesday.

New outbreaks have also emerged in northern cities near China's border with Russia and North Korea as winter approaches.

Agence France-Presse

Apple unveils new gadgets despite supply chain woes

Apple launched new smartphones Wednesday at prices similar to recent models despite inflation and supply chain woes, while unveiling a premium digital watch with a price tag to match.

While a 90-minute presentation at the company's California headquarters did not include any surprise reveals, the tech giant did unveil new digital identification system to obviate the need for a physical sim card.

The company's newest smartphone, the iPhone 14, costs $799 for the base model – the same price as the current version, while a premium iPhone 14 Pro Max will go for $1,100.

The set of updated products, which also includes new earbuds, is designed to keep customers loyal to its lucrative technology ecosystem.

"Apple continued its strong growth in the first half of 2022, driven by robust demand for the iPhone 13 – which was the best-selling smartphone worldwide," said Le Xuan Chiew, an analyst at Canalys.

The ability to keep the iPhone prices flat reflected the benefits of diversifying the supply chain to India after China's zero-tolerance COVID policies crimped production there, the analyst said.

Wedbush analyst Dan Ives said the launch event underscored Apple's logistics strength.

"Taking a step back, launching 3 new core hardware products within the Apple ecosystem despite the biggest supply chain crisis seen in modern history is a major feat for Cook & Co. especially with the zero Covid shutdowns in China seen in April/May," Ives said.

Features of the new iPhone 14 include a more durable battery and new photographic capacities to capture "ultra wide" scenes and low-light settings.

The phones also contain an "emergency SOS" function to enable messaging to emergency services when outside of Wifi coverage.

The iPhone 14 Plus comes in a giant 6.7-inch screen that offers a better experience when playing games or watching videos.

Company officials touted new digital watch products with enhanced features. The Apple Watch Series 8 – which can monitor body temperature and other body functions – prices at $400.

The company also unveiled the Apple Watch Ultra, priced at $800, which includes a battery with enough lifespan for hardcore athletes "to complete a long-course triathlon," according to an Apple press release.

Neil Saunders, analyst at GlobalData Retail, described the new offerings as having "incremental improvements rather than groundbreaking new innovations," adding that the company "has done enough to drive demand by persuading consumers to upgrade and indulge in its new products."

Agence France-Presse

Apple upgrades low-end iPhone SE with 5G, and high-end Mac Studio computer with faster chip

NEW YORK - Apple Inc on Tuesday added 5G connectivity to its low-cost iPhone SE and iPad Air and introduced a faster chip for a new desktop, a high point in Apple's move to power its devices with microprocessors designed in house.

The new Studio desktop starts at $3,999 with the new M1 Ultra chip. The iPad Air also got Apple's M1 chip that was developed for laptops.

"Apple Silicon strategy is the key highlight," said analyst Neil Shah of Counterpoint Research. "Apple is scaling the portfolio of its in-house semiconductor capabilities to power a broader set of richer devices from affordable iPhone SE to the most powerful product Mac Studio."

Apple's Mac Pro still runs on Intel Corp INTC.O microprocessors.

Apple slightly hiked the price on the iPhone SE to $429 from $399 for the previous model. The new phone starts shipping March 18. 

The iPhone SE comes with an A15 Bionic chip, which Apple says is the fastest among competition, a 4.7-inch retina display and a home button with touch ID.

"This is important for our existing users who want a smaller iPhone at a great value," Chief Executive Tim Cook said.

Nabila Popal, an analyst at IDC, said the new iPhone SE will cater to consumers looking for a budget 5G device, and it could be particularly popular given the economic uncertainty caused by the Russia-Ukraine conflict.

"A cheaper iPhone with 5G is good news for Apple, especially in these times of uncertainty," Popal said.

But demand for larger screens could negatively impact iPhone SE sales, Popal added. Some consumers might instead opt for older iPhone models with bigger screens in the same price range.

The M1 Ultra is made by connecting two M1 Max chips and is eight times faster than M1 chips. Its first use will be in the creative professional-focused Mac Studio computer.

Apple will offer two versions of the Mac Studio, one with the M1 Max chip and the other utilizing the M1 Ultra chip.

Mac Studio pricing starts at $1,999 for the version with the M1 Max chip and $3,999 for the M1 Ultra loaded computer.

Apple also debuted a new monitor called Studio Display that can be paired with any Mac, including Macbook Air and Macbook Pro models, and which is priced at $1,599.

Apple shares were about flat for the day in mid-afternoon trading.

The company which has been broadening its services and other products also said its Apple TV+ product would begin showing Major League Baseball games on Friday nights. The weekly double header will be available in eight countries.

The new iPad Air gets its first refresh in two years with a new design, 5G connectivity and the M1, popular in MacBooks. The starting price remained $599 and it will be available starting March 18.

The new iPad Air also features a 12-megapixel front camera.

Apple also announced new iPhone 13 models in two new finishes, including alpine green.

During the presentation, Cook made no mention of the conflict in Ukraine. Apple said on March 1 it had paused all product sales in Russia in response to the Russian invasion. The Russian state media, RT News and Sputnik News are no longer available for download from the Apple Store outside Russia. Read full story

Russia calls its actions in Ukraine a “special operation.”

(Reporting by Danielle Kaye in New York and Nivedita Balu and Kanika Sikka in Bengaluru; Additional reporting by Ashwini Raj, Ahmed Farhatha, Shivansh Tiwary and Nilanjana Basu in Bengaluru; Editing by Karishma Singh, Peter Henderson and Lisa Shumaker)

-reuters-

Apple expected to launch new low-cost 5G iPhone

NEW YORK - Apple Inc will likely announce a new low-cost version of its iPhone SE with 5G capabilities at its annual spring product launch event on Tuesday, analysts say.

The iPhone maker is also expected to launch a new version of the iPad Air and a high-end Mac Mini at the event.

Apple's iPhone SE is currently priced at $399. CFRA Research analyst Angelo Zino said Apple could attract more price-sensitive consumers if the price remains the same for the new version.

"It could potentially provide upside to our unit iPhone estimate for 2022 if they keep that price point unchanged," Zino said. "The iPhone SE really caters well to a lot of first-time buyers on the iPhone ecosystem that may be younger individuals, where their parents are going out there buying that device."

The new phone would be the first update to the iPhone SE model in two years and is rumored come with an improved camera and a faster processor.

The United States, Japan and Western Europe have been the top markets for iPhone SE sales in recent years, said analyst Ryan Reith of IDC. Reith said these regions will likely remain the top markets after the anticipated launch of the third-generation iPhone SE.

"We probably won't see big geography shifts," Reith said, adding that he expects the new iPhone SE to account for 10 percent of iPhone shipments globally after the launch.

IPhones with 5G capabilities have been a big part of Apple's focus for its flagship product, with its latest-model iPhone 13 showing off custom 5G antennas and radio components for faster speeds as customers look for powerful devices with better connectivity.

But some analysts still point to the limitations of 5G technology globally.

"Currently in most countries in the world, that (5G) technology simply isn't good enough to create a unique and differentiated experience ... the fact that the iPhone SE comes with 5G is more a way to enable users to leverage 5G when that technology evolves over the next year or two," Canalys research analyst Runar Bjørhovde said.

Zino said he does not anticipate services or accessories launches at the Tuesday event, though an unexpected announcement in the services sector is still possible.

Apple usually hosts three events every year to launch new products, starting in spring and announcing the launch of its latest iPhone range just before the holiday shopping season.

In response to the Russian invasion of Ukraine, Apple said on March 1 it has paused all product sales in Russia. The company also said it has stopped all exports into its sales channels in the country and limited Apple Pay and other services in Russia.

The Russian state media, RT News and Sputnik News, are no longer available for download from the Apple Store outside Russia.

-reuters-

Apple sales and profit top estimates, as iPhone dodges supply chain hits

Apple Inc. on Thursday reported record sales in the holiday quarter, beating estimates as it benefited from high iPhone demand in China and withstanding supply chain constraints and omicron variant disruptions.

Chief executive Tim Cook had warned in October that chip shortages were affecting manufacturing of most Apple products and could lead to over $6 billion in lost sales.

Chief Financial Officer Luca Maestri told Reuters in an interview that the effect had indeed been more than $6 billion but that constraints would decrease in the current quarter, ending in March.

"The level of constraint will depend a lot on other companies, what will be the demand for chips from other companies and other industries. It's difficult for us to predict, so we try to focus on the short term," he said.

With few rival phones debuting in the holiday shopping season, the iPhone 13, which started shipping days before the quarter began, led to worldwide phone sales revenue for Apple of $71.6 billion, a 9% increase from the 2020 holiday season that handily beat Wall Street targets, according to Refinitiv data.

Apple's smartphone market share in China reached a record 23% in the holiday quarter, when it was the top-selling vendor there for the first time in six years, research firm Counterpoint Research reported on Wednesday.

The company's overall fiscal first-quarter revenue was $123.9 billion, 11% up from last year and higher than analysts' average estimate of $118.7 billion. Profit was $34.6 billion, or $2.10 per share, compared with analysts' expectations of $31 billion and $1.89 per share.

The pandemic has accelerated adoption of digital tools for communication, learning and entertainment, powering Apple to blowout sales across each of the company's segments, including computers, accessories and tablets.

Apple's services business, which covers paid apps such as Apple TV+, Apple Music and Apple Fitness, also has seen a big bump. Services revenue rose 24% to $19.5 billion, topping analysts' estimates of $18.6 billion. The company has 785 million paying subscribers across its offerings, an increase from 620 million a year ago and 745 million last quarter.

Sales for iPads fell 14% to $7.25 billion compared with analyst estimates of $8.2 billion, seeming to confirm industry predictions that iPads would have low priority for any scarce parts.

Sales for Macs rose 25% to $10.9 billion compared with estimates of $9.5 billion, and sales for accessories rose 13% to $14.7 billion compared with estimates of $14.6 billion.

For investors, the growing services business is helping mitigate production challenges. Apple is trading at 27 times expected earnings over the next 12 months. While down from as much as 35 a year ago, it remains above the company's five-year average of 20 times expected earnings, according to Refinitiv.

Apple is facing antitrust pressure in the United States and Europe that could lead to new regulations that cut into its services revenue.

Late last month, the Dutch Authority for Consumers and Markets (ACM) ordered Apple to make changes for apps on offer in the Apple App Store in the Netherlands by Jan. 15 or face fines, after it found that the U.S. company had abused its market dominance by requiring dating app developers to exclusively use Apple's in-app payment system.

Supply chain issues are dragging on and concern remains about how long it will take Apple to deliver its next big product, such as an augmented reality headset or an electric vehicle.

Apple had reported strong customer response to its latest release, the AirTag, when the accessory began shipping in the fiscal third quarter of 2021.

Apple posted a rare revenue miss in the fiscal quarter ended September 25, which Cook attributed to pandemic-related supply constraints and manufacturing disruptions that together cost the company an estimated $6 billion in sales.

But smaller rivals are struggling to keep up with production, leading to Apple market share gains in regions such as China, said Angelo Zino of CFRA Research in a research note.

"Since Apple has many customized components going into the iPhones, Macs, Apple Watch and others and the scale (volume and price) at which it procures, Apple has been able to lock-in suppliers’ capacities to timely produce those parts with lesser delays," said Neil Shah of Counterpoint Research.

(Reporting by Danielle Kaye and Paresh Dave; Editing by Peter Henderson and Lisa Shumaker)

-reuters-

Apple poised for strong earnings despite supply constraints, Omicron

Apple Inc navigated pandemic-related supply chain issues better than rivals at the end of 2021, likely helping the iPhone maker surpass Wall Street revenue growth targets of 6 percent, some analysts estimate.

Apple, which is set to post quarterly earnings on Thursday, was buoyed by strong iPhone 13 sales globally, sales in China and continued growth in Mac shipments, several analysts told Reuters.

The market is closely watching earnings at Apple, Tesla and other tech companies to see if they quell the sell-off that has wiped out nearly $3 trillion in value from the Nasdaq 100. Investors are dumping tech stocks on fears that the Fed will hike interest rates fairly aggressively and erode the value of their future earnings. Some are concerned that the surge of pandemic at-home tech buying will not last as conditions improve.

"We expect Apple to reach its highest market share in China since Apple entered the market in 2008," said analyst Nicole Peng of Canalys.

Investment firm Wedbush Securities forecasts record iPhone sales of more than 40 million units during the holiday period from Black Friday to Christmas. Morgan Stanley estimates total holiday quarter iPhone shipments at 83 million, representing a 4 percent increase from the previous year.

Wall Street analysts expect Apple to post about $118.7 billion in revenue, representing 6.48 percent year-over-year growth, and quarterly earnings per share of $1.89, according to Eikon data as of Tuesday.

Apple posted a rare revenue miss in the fiscal quarter ended Sept. 25, which Chief Executive Tim Cook attributed to pandemic-related supply constraints and manufacturing disruptions that together cost the company an estimated $6 billion in sales.

Cook at the time forecast an even bigger drag in the holiday quarter, but analysts expect strong growth compared to competitors in the just-ended quarter, which began days after Apple started shipping the iPhone 13.

"Since Apple has many customized components going into the iPhones, Macs, Apple Watch and others and the scale (volume and price) at which it procures, Apple has been able to lock-in suppliers’ capacities to timely produce those parts with lesser delays," said Neil Shah of Counterpoint Research.

Shah added that Apple is seeing the highest demand for iPhones since the 2015 "supercycle."

Smaller rivals are struggling to keep up with production, leading to Apple market share gains in regions such as China, said Angelo Zino of CFRA Research in a research note.

Apple has said it expects iPads to be its only product with lower sales compared with a year ago due to supply constraints. Analysts say Apple likely prioritized iPhone units for components.

Preliminary holiday quarter data from IDC indicates almost 9 percent growth in Mac shipments, compared with a 1 percent rise in the PC market as a whole. 

Analysts played down concerns about the impacts of the Omicron variant surge, saying closings of some retail stores did not likely have a big impact on Apple's online-heavy business. Analysts also are watching for signs that rising Omicron cases in China could impact Apple's production.

Apple, the first company worth $3 trillion, has been losing value along with the broader stock market. Apple stock has fallen 10 percent this month and the S&P 500 index has dropped 9 percent.

Analysts may also ask Apple management about App Store payment rules, after regulators in the Netherlands found that the US company had abused its market dominance by requiring dating app developers to exclusively use Apple's in-app payment system.

-reuters-

Apple retreats again, after valuation tops $3 trillion again

Apple Inc's stock market value peaked on Tuesday for a second day above a $3 trillion, but the iPhone maker's shares again failed hold that gain by the session's end.

Apple shares ended down 1.3 percent at $179.70, leaving its market capitalization at $2.95 trillion.

On Monday, Apple's stock market value rose briefly above $3 trillion for the first time ever, and it repeated that again on Tuesday before losing ground. The world's most valuable company has yet to end a session at that level.

Apple accounts for nearly 7 percent of S&P 500 index's value, according to Refinitiv data, the highest for a single stock in the index at a time when the benchmark is perched at a peak.

Surging demand for iPhones, MacBooks and iPads during the pandemic helped push the Cupertino, California company's market capitalization past $2 trillion in August 2020.

"Apple has been one of the key pandemic trades for a lot of people and as we exit the pandemic. ... the iPhone maker is going to struggle a little bit," warned Edward Moya, senior market analyst at Oanda in New York.

Apple's massive share repurchases in recent years have also fuelled its stock rally.

The company has bought back $348 billion worth of shares in the 5 years through the September quarter of 2021, reducing its share count by 23 percent over that period, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

"You know there's going to be buying," Silverblatt said. "From an investor point of view, it's very important."

With Tesla now the world's most valuable automaker as Wall Street bets heavily on electric cars, many investors expect Apple to launch its own vehicle within the next few years as it looks to reduce its current reliance on iPhones for about half of its revenue.

Notably, Apple is worth more than any of Europe's main regional indexes including Britain's FTSE 100, France's CAC 40, Germany's DAX, Spain's IBEX 35 and Italy's FTSE MIB.

Apple's stock is now up 1 percent in 2022 after gaining 34 percent last year. It is trading at about 31 times expected 12-month earnings, which is expensive compared to its five-year average of 20 times expected earnings, according to Refinitiv data.

-reuters-

Apple becomes first company to hit $3 trillion market value, then slips

Apple Inc on Monday became the first company to hit a $3 trillion stock market value, before ending the day a hair below that milestone, as investors bet the iPhone maker will keep launching best-selling products as it explores new markets such as automated cars and virtual reality.

On the first day of trading in 2022, the Silicon Valley company's shares hit an intraday record high of $182.88, putting Apple's market value just above $3 trillion. The stock ended the session up 2.5 percent at $182.01, with Apple's market capitalization at $2.99 trillion.

The world's most valuable company reached the milestone as investors bet that consumers will continue to shell out top dollar for iPhones, MacBooks and services such as Apple TV and Apple Music.

"It's a fantastic accomplishment and certainly worthy to be celebrated," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors' eyes."

Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth about $2.5 trillion. Alphabet Inc, Amazon.com Inc and Tesla Inc have market values above $1 trillion. Saudi Arabian Oil Co is valued at about $1.9 trillion, according to Refinitiv.

"The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Apple's shares have climbed around 5,800 percent since co-founder and former chief executive Steve Jobs unveiled the first iPhone in January 2007, far outpacing the S&P 500's gain of about 230 percent during the same period.

Under Tim Cook, who in 2011 became chief executive following Jobs' death, Apple has sharply increased its revenue from services like video streaming and music. That helped Apple reduce its reliance on the iPhone to about 52 percent of total revenue in fiscal 2021 from over 60 percent in 2018, pleasing investors worried the company relied too much on its top-selling product.

Still, some investors worry Apple is hitting the limits of how much it can expand its user base and how much cash it can squeeze from each user, with no guarantees that future product categories will prove as lucrative as the iPhone.

The rapid embrace of technologies such as 5G, virtual reality and artificial intelligence has also increased the allure of Apple and other Big Tech companies.

In China, the world's largest smartphone market, Apple continued to lead for the second straight month, beating rivals such as Vivo and Xiaomi, recent data from CounterPoint Research showed.

With Tesla now the world's most valuable automaker as Wall Street bets heavily on electric cars, many investors expect Apple to launch its own vehicle within the next few years.

"The icing on the cake, which may turn out to be the cake, is the potential for an EV car," Rhys Williams, chief strategist at Spouting Rock Asset Management said.

Just as Apple's market capitalization hits the $3 trillion milestone, its share price as a percentage of the Nasdaq 100 index's value is bumping up against a key technical level. In recent prior times, the stock price has risen above such a level and then subsequently declined.

-reuters-

Apple inches closer to $3 trillion market cap

Apple Inc is within striking distance of a $3 trillion market capitalization, a milestone that would make it as big as the world's fifth largest economy after Germany, just over a year after breaching the $2 trillion mark.

Shares of Apple were up 1.6 percent at $174. They need to trade at $182.85 to hit the mark and cap a strong rally that has been powered by investors betting on its brand and viewing it as a comparative safe haven.

The stock has jumped about 30 percent this year on top of an 80 percent surge in 2020. In comparison, the S&P 500 has risen 25% for the period.

Its peers in the trillion-dollar club - Microsoft, Amazon, Alphabet and Tesla - have all gained between 10 percent and 70 percent.

"Apple does seem to be more immune to the ebb and flow of economic forces just because of this really strong brand. Its new product pipeline is pretty strong too," Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said.

"There is an expectation that Apple is still going to come for you even though there have been some weaknesses in getting hold of the handsets and making sure that they're available for the public."

Apple hit the $1 trillion in market capitalization in 2018 and took two years to double that valuation.

The stock has already breached Wall Street's median price target by $4, with a majority of analysts covering the stock rating it "buy" or higher.

Apple briefly lost its title as the most valuable company to Microsoft Corp earlier this year after CEO Tim Cook's comments on supply chain woes and the struggle to procure semiconductors and components to make smartphones and laptops.

Microsoft is about $500 billion short of reaching $3 trillion in market capitalization. 

-reuters-

Apple's new iPhone to take longer to reach customers - analysts

Apple Inc's customers will have to wait for a few more weeks to lay their hands on the new iPhone 13 as supply chain delays and strong demand lead to one of the longest waiting times for the phone in recent years, analysts said.

The delivery time for Apple's iPhones after a new launch is watched by analysts as one of the measures to gauge demand for the flagship phone's newest model. But this year, it is also shining a light on supply chain issues plaguing technology companies ahead of the holiday shopping season.

Analysts at J.P.Morgan and Credit Suisse said customers across the world who had pre-ordered the new models online would have to wait more than four weeks for the iPhone 13 Pro and Pro Max and about 2 weeks for the base iPhone 13.

In the United States, which accounts for over a third of iPhone shipments, the delivery time for the iPhone 13 series was 19 to 34 days in the second week, compared with 7 to 20 days in the first week, both greater than the lead times for the iPhone 12 Series.

Apple was not immediately available to comment on the delays in delivery times.

"While admittedly part of the expansion in the lead times is on account of the supply chain constraints, we still find the material increase in the lead time in Week 2 relative to Week 1 as an indicator of the robust demand for upgrades, likely exceeding low investor expectations into the launch," J.P.Morgan analyst Samik Chatterjee said.

Apple's partners Verizon, Vodafone UK and Best Buy cited high demand and product supply issues in replies to customers on Twitter. Many users on social media also flagged the delays.

"With a delay on the delivery for iPhone 13 pro max I might as well cancel! They talking (about until) October 30th," one user said on Twitter.

On Sunday, several Apple and Tesla Inc suppliers suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods.

The iPhone 13, priced between $699 and $1,599, comes with a sharper camera, a new bionic chip and improved connectivity. It has been available for pre-booking since Sept. 17. 

(Reporting by Aniruddha Ghosh and Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty) 

-reuters-

New iPhone 13 touts faster 5G, sharper cameras to spur trade-ins

Apple Inc. unveiled the iPhone 13 and a new iPad mini on Tuesday, expanding 5G connectivity and showing off faster chips and sharper cameras without raising the phone's price.

The Cupertino, Calif.-based company did not announce any blockbuster features or products, but analysts expect customers hanging onto older models like the iPhone X will be eager to upgrade. To encourage trade-ins, participating wireless carriers are offering incentives ahead of the year-end holiday season that to make the new phones free to some customers. 

The iPhone 13 will have a new chip called the A15 Bionic that enables features, such as automatically translating text. The phone also has a better display, longer battery life and a Cinematic mode for automatically changing focus while taking videos. Apple said the iPhone 13 will have custom 5G antennas and radio components for faster speeds and will come in five colors. 

The phone will start at $699, and participating wireless carriers will offer up to $700 off for qualifying trade-ins. The iPhone 13 Pro starts at $999 and the Pro Max starts at $1,099, with trade-in offers of up to $1,000. All three models will be available Sept. 24.

The prices are unchanged from last year, but some carriers such as AT&T Inc will offer the devices for no additional if customers trade in a previous model and sign up for an installment plan.

Ben Bajarin, head of consumer technologies at Creative Strategies, said he expects those aggressive subsides and trade-in policies will increase as a way for Apple and carriers to hold on to customers.

"You don't have to put a down payment down and you keep paying what you were paying," Bajarin said. "That offer is unique to Apple, and it's a strength they have to keep these sales cycles going for them and for the carriers."

The iPhone is Apple's most important product, but Apple has rolled out a web of service and other products that are seen as locking customers into a system they enjoy -- and would find expensive to leave. 

The Series 7 smart watch will feature a larger display and faster charging. It will start at $399 and be available later this autumn.

The company also updated its iPad Mini with 5G connectivity and a reworked design that makes it look like the higher-end iPad Air and Pro models. Bob O'Donnell, head of TECHnalysis Research, said the small tablet was Apple's most surprising announcement of the day and could lure in customers who want a device with 5G that can handle more powerful apps than a phone.

"I don't think it replaces any other device, like we've seen Apple try to position some of the bigger iPads as PC replacements," O'Donnell said.

Apple also updated its base-model iPad with a new camera for working and learning from home. The base model iPad starts at $329, and the Mini starts at $499. Both will be available next week.

Apple shares were down 1.2%, a sharper fall than a slight downturn in broader markets.

"It seems like there's nothing really revolutionary announced, but of course, as usual, they announced enough improvements to at least generate some enthusiasm among consumers," said Rick Meckler, partner at family investment office Cherry Lane Investments. 

Apple's biggest product launch of the year comes as some of the shine has come off its stock as business practices such as charging software developers commissions on in-app payments have come under regulatory scrutiny.

Apple shares were up about 11.6% year to date as of Tuesday's close, trailing the Nasdaq Composite Index, which was up 16.7% over the same period.

Kim Forrest, founder and chief investment officer at Bokeh Capital, said she was not concerned by the lack of splashy, unexpected products, since Apple's upgrades would keep customers. "I think the consumer, once it gets the Apple chip in its head, it's very hard to dislodge," she said.

The Apple Watch has become a cornerstone of its $30.6 billion accessories segment, which was up 25% in Apple's most recent fiscal year even as its iPhone revenue declined slightly. Analysts widely believe that Apple users who buy more than one product - such as an Apple Watch and iPhone - are more likely to stick with the brand and spend on the company's apps and services.

Apple focused on fitness features such as improving how the watch tracks bicycling workouts and dust protection for hiking. The watch is paired tightly with Apple Fitness+, a paid service offering guided workouts with Apple instructors. The company added pilates and skiing-oriented workouts, and a group workouts function designed to let users work out together. The company also bundled three months of free service with its watch devices.

Shares of exercise bike and online training company Peloton were down about 1.6%.

(Reporting by Stephen Nellis in San Francisco; Additional reporting by Caroline Valetkevitch in New York and Nivedita Balu, Nishara Karuvalli Pathikkal, Ashwini Raj and Taru Jain in Bengaluru; Editing by Peter Henderson and Lisa Shumaker)

-reuters-

Apple users urged to download Pegasus spyware flaw fix

Apple users were urged Tuesday to update their devices after the tech giant announced a fix for a major software flaw that allows the Pegasus spyware to be installed on phones without so much as a click.

Cybersecurity experts at the Citizen Lab, a research center at the University of Toronto, uncovered the flaw while analyzing the phone of a Saudi activist.

That person is among tens of thousands believed to have been targeted with the Israeli-made Pegasus software, which according to media reports has been used worldwide to intercept the communications of activists, journalists and even heads of state.

Apple said Monday that it had "rapidly" developed a software update after Citizen Lab alerted it to the hole in its iMessage software on September 7. 

"Attacks like the ones described are highly sophisticated, cost millions of dollars to develop, often have a short shelf life, and are used to target specific individuals," the company said.

Citizen Lab said it was urging people "to immediately update all Apple devices".

- Intimate surveillance -

Explosive revelations that governments have spied on people using the hugely invasive software -- which was developed by the NSO Group, a secretive Israeli firm -- have ricocheted around the world since July.

Once Pegasus is installed on a phone, it can be used to read a target's messages, look at their photos, track their movements and even switch on their camera -- all without the person knowing.

The flaw fixed by Apple on Monday is a so-called "zero-click exploit", meaning that it can be installed on a device without the owner needing to do so much as click a button. 

Less sophisticated spyware tools have generally required the target to click on a booby-trapped link or file in order to start tapping the person's communications.

Citizen Lab said it believed the flaw, which it named FORCEDENTRY, had been used to install Pegasus on devices since February 2021 or possibly earlier.

It is a variant of a weak spot in Apple's messaging software that Citizen Lab previously detected on the iPhones of nine Bahraini activists, who were hacked with Pegasus between June 2020 and February this year.

"Popular chat apps are the soft underbelly of device security. They are on every device," tweeted John Scott-Railton, a senior researcher at Citizen Lab who helped uncover the flaw.

The messaging service WhatsApp was previously also allegedly used to infiltrate phones using Pegasus, and its owner Facebook is suing the NSO Group. 

The security of messaging apps "needs to be a top priority," Scott-Railton added, urging his followers: "UPDATE YOUR APPLE DEVICES NOW."

- 'Fighting crime' -

NSO, the company at the heart of the scandal, has denied any wrongdoing and insisted its software is intended for use by authorities only in fighting terrorism and other crimes.

But the company, which says it has clients in 45 countries, did not dispute that Pegasus had prompted Apple's urgent software upgrade.

It said in a statement that it would "continue to provide intelligence and law enforcement agencies around the world with life saving technologies to fight terror and crime."

Citizen Lab, which first uncovered Pegasus alongside cybersecurity firm Lookout five years ago, accuses NSO of selling the software to authoritarian governments that use it for repressive purposes.

Emerging economies such as India, Mexico and Azerbaijan dominated the list of countries where large numbers of phone numbers were allegedly identified as possible targets by NSO's clients. 

Since July, the scandal has prompted calls from rights groups for an international moratorium on the sale of surveillance technology until regulations are put in place to prevent abuses.

That call was backed by United Nations human rights experts last month.

"It is highly dangerous and irresponsible to allow the surveillance technology and trade sector to operate as a human rights-free zone," they said.

Israel's defense establishment has meanwhile set up a committee to review NSO's business, including the process through which export licenses are granted.

Agence France-Presse 

Policy groups ask Apple to drop plans to inspect iMessages, scan for abuse images

More than 90 policy and rights groups around the world published an open letter on Thursday urging Apple to abandon plans for scanning children’s messages for nudity and the phones of adults for images of child sex abuse.

"Though these capabilities are intended to protect children and to reduce the spread of child sexual abuse material, we are concerned that they will be used to censor protected speech, threaten the privacy and security of people around the world, and have disastrous consequences for many children," the groups wrote in the letter, which was first reported by Reuters.

The largest campaign to date over an encryption issue at a single company was organized by the US-based nonprofit Center for Democracy & Technology (CDT).

Some overseas signatories in particular are worried about the impact of the changes in nations with different legal systems, including some already hosting heated fights over encryption and privacy.

"It's so disappointing and upsetting that Apple is doing this, because they have been a staunch ally in defending encryption in the past," said Sharon Bradford Franklin, co-director of CDT's Security & Surveillance Project.

An Apple spokesman said the company had addressed privacy and security concerns in a document Friday outlining why the complex architecture of the scanning software should resist attempts to subvert it. 

Those signing included multiple groups in Brazil, where courts have repeatedly blocked Facebook’s WhatsApp for failing to decrypt messages in criminal probes, and the senate has passed a bill that would require traceability of messages, which would require somehow marking their content. A similar law was passed in India this year.

“Our main concern is the consequence of this mechanism, how this could be extended to other situations and other companies,” said Flavio Wagner, president of the independent Brazil chapter of the Internet Society, which signed. “This represents a serious weakening of encryption.”

Other signers were in India, Mexico, Germany, Argentina, Ghana and Tanzania.

Surprised by the earlier outcry following its announcement two weeks ago, Apple has offered a series of explanations and documents to argue that the risks of false detections are low.

Apple said it would refuse demands to expand the image-detection system beyond pictures of children flagged by clearinghouses in multiple jurisdictions, though it has not said it would pull out of a market rather than obeying a court order.

Though most of the objections so far have been over device-scanning, the coalition’s letter also faults a change to iMessage in family accounts, which would try to identify and blur nudity in children’s messages, letting them view it only if parents are notified.

The signers said the step could endanger children in intolerant homes or those seeking educational material. More broadly, they said the change will break end-to-end encryption for iMessage, which Apple has staunchly defended in other contexts.

"Once this backdoor feature is built in, governments could compel Apple to extend notification to other accounts, and to detect images that are objectionable for reasons other than being sexually explicit," the letter says.

Other groups that signed include the American Civil Liberties Union, Electronic Frontier Foundation, Access Now, Privacy International, and the Tor Project.

-reuters-

Apple to upgrade budget handset to 5G, drop iPhone Mini from 2022 lineup: Nikkei

Apple Inc's cheapest handset will support 5G technology in its next iteration and its iPhone Mini will not be included in its 2022 lineup, Nikkei reported on Wednesday, citing sources familiar with the matter.

The company will start selling a 5G version of budget iPhone SE in the first half of 2022, Nikkei reported, adding the device will be powered by its A15 processor and its 5G connectivity will be enabled by Qualcomm Inc's X60 modem chip.

Telecom operators have been spending billions of dollars to upgrade their networks to the much-touted 5G to enable faster internet and better coverage. However, analysts are skeptical of the uses of the technology to individual consumers and believe there are years to come before one can reap the actual benefits.

Meanwhile, demand for iPhone Mini, the smaller version of Apple's flagship device has been muted, compared with its bigger and high-end models like iPhone 12 Pros and the older iPhone 11s as users prefer larger devices to run almost every day-to-day tasks.

US sales of iPhone 12 Mini were just 5 percent of overall sales of its new phones during the first half of January, according to industry data provider Counterpoint.

Apple did not immediately respond to Reuters request for comment. 

-reuters-

Apple doubles down on privacy in new iPhone software

SAN FRANCISCO - Apple on Monday said it is ramping up privacy and expanding features in new iPhone operating software to be released later this year.

The Silicon Valley technology colossus opened its annual developers conference by teasing improvements to security, privacy and interoperability of its devices, even as the company remains under fire for its tight control of its App Store.

"All of this incredible software will be available to all of our users this fall," Apple chief executive Tim Cook said during the Worldwide Developers Conference opening presentation.

"I am so excited for these new releases and how they will make our products even more powerful and more capable."

The next version of iPhone operating software, called iOS 15, will have improved privacy features including overviews of how apps access smartphone cameras or microphones as well as data such as location or contacts.

"We don't think you should have to make a trade-off between great features and privacy," said Apple senior vice president of software engineering Craig Federighi.

Apple added notifications on "tracking" in the current version of its mobile operating system, to the chagrin of app-makers such as Facebook that contended it would undermine the targeting of ads that support free online content.

The update comes with Apple being challenged on several fronts over its control of apps on its ecosystem.

Fortnite maker Epic Games has accused Apple in a lawsuit of having monopoly power with its App Store that serves as the sole gateway onto iPhones or iPads.

Apple booted Fortnite from its App Store last year after Epic dodged agreed-upon revenue sharing with the iPhone maker.

The European Union has formally accused Apple of unfairly squeezing out music streaming rivals based on a complaint brought by Sweden-based Spotify and others, which claim the California group sets rules that favor its own Apple Music.

Facebook chief Mark Zuckerberg, who has described Apple as a rival, on Monday put out work that creators will continue to pay nothing to host paid or subscription events at the leading social network until the year 2023.

"And when we do introduce a revenue share, it will be less than the 30 percent that Apple and others take," Zuckerberg said in a post at his Facebook page.

Agence France-Presse

Top six takeaways from Apple's spring event

Apple Inc on Tuesday announced AirTags, its long-rumored device tracker, a new line of iMac computers and iPad tablets with its own processors and a podcast subscription service.

The Cupertino, California-based company, which launches its flagship iPhones in the fall, typically announces new iPads and Macs in March before releasing the latest version of operating softwares at its annual developers' meet in the summer.

This year it launched a flurry of new devices and services in Tuesday's virtual event, including a purple variant of its flagship iPhone, a new Apple TV set top box and Apple Card Family service.

Here are six key announcements from the event:

IMACS GET A SPLASH OF COLOR AGAIN

Apple launched a new line of redesigned iMacs in seven new colors. The computers, which were known to have colorful translucent plastic bodies in the 2000s, has only been sold in silver aluminum variants in recent years.

The new redesigned slim iMac also comes with in-house M1 chip as the technology giant moves away from its longtime partner Intel Corp for processors. Last year, Apple had announced new MacBook Air, 13-inch MacBook Pro and Mac mini models with M1 chips.

The new computers start at $1,299 and customers will be able to pre-book from April 30. 

IPAD PRO FLAUNTS M1 CHIP, 5G CONNECTIVITY

Apple announced a new line of iPad Pros with M1 processor chip and 5G connectivity option. The new 11-inch and 12.9-inch tablets with higher-quality video will support Thunderbolt and USB 4 accessories.

The new tablets start at $749 and will be available in the second half of May. 

PAY FOR PODCASTS

The company also announced podcast subscription services that will compete with rival Spotify. Subscription prices will be set by creators and billed monthly. Apple will charge creators $19.99 a year for its podcast program.

Apple's Podcasters Program will be available to creators in more than 170 countries and regions, and content creators can enroll in the program on Tuesday. 

TRACK BELONGINGS

Apple launched the long-rumored AirTags to help users track and locate everything from keys, bags and jackets. The small inconspicuous circular tracking device is water and dust-resistant, with a built-in speaker.

This accessory will cost $29 for one or $99 for a pack of four. It will be available from April 30.

APPLE CARD MERGES CREDIT LINES

Apple launched Apple Card Family, allowing spouses and partners to share and merge credit lines with its Apple Card. In 2019, co-founder Steve Wozniak had joined the online debate over accusations of gender discrimination by the algorithm behind the iPhone maker's credit card. 

IPHONE TURNS PURPLE

Apple launched purple variant of its flagship iPhone 12 and iPhone 12 mini models. The new variants will be available for pre-order from April 23. 

-reuters-

Apple goes to battle with Spotify in premium podcast push

Apple Inc. is fighting to retain control of the fast-growing podcasting market it popularized years ago but did not monetize, analysts and industry experts told Reuters.

Nearly 16 years after Apple added the ability to find podcasts -- a portmanteau of "iPod" and "broadcasting" coined by a Guardian journalist -- to its iTunes software, the iPhone maker now seeks to court podcast creators with new subscription and creator tools, and fend off competition from streaming audio company Spotify.

Apple announced on Tuesday it will launch Apple Podcast subscriptions, which will let users pay to unlock new content and additional benefits like ad-free listening, said Apple Chief Executive Tim Cook during the presentation.

Pricing for each subscription will be set by the creator and billed monthly, Apple noted in a press release.

It also introduced a new Apple Podcasters Program that will cost $19.99 per month, and will provide creators the tools they need to offer podcast subscriptions.

The company will also redesign its Apple Podcast app to include channels, which will let users find new shows from their favorite creators and hosts, Cook said.

The features will roll out to 170 regions next month.

"Spotify has upped the ante on podcasting," spending an estimated $1 billion to expand its business beyond music, said Dan Ives, an analyst at Wedbush Securities. "Given that (Apple) basically originated podcasting, it would be tough to swallow to lose out to Spotify."

Spotify's acquisitions include about $340 million to buy podcast networks Gimlet and Anchor in 2019, according to filings, and a reported $235 million in 2020 to acquire Megaphone, which offers advertising technology for podcasts.

The company has also signed exclusive podcasting deals with major names including Michelle Obama, Joe Rogan and Kim Kardashian.

Apple has dabbled in creating original podcasts, which are available on the Apple Podcast app. Earlier this month it launched "The Line," a true crime series that includes both a podcast and documentary show on its streaming service Apple TV+.

The launch on Tuesday represents a deepening rift between Apple and Spotify, as the latter has complained to European regulators that Apple unfairly pushes its own music streaming app.

With its new service, Apple will face the challenge of convincing users to pay for podcasts "when there's a universe of it available for free," said Nick Quah, who writes Hot Pod, an industry newsletter about the podcasting world.

"We're already accustomed to paying for a catalog of TV shows," he said. "I don't think people are used to that for podcasts."

While the iPhone maker has long pushed to expand beyond selling devices, its previous forays into serving premium content have a mixed track record, some analysts said.

Apple Music, a subscription streaming music service which launched in 2015, years after Spotify, is now No. 2 by market share.

Apple TV+, its streaming video service with original shows and movies that launched in 2019, does not yet pose a threat to dominant players such as Netflix, said Jeff Wlodarczak, an entertainment and interactive subscription services analyst at Pivotal Research Group.

"I think Spotify management can sleep at night if Apple makes this move," Wlodarczak said.

(Reporting by Sheila Dang; editing by Kenneth Li, Lisa Shumaker and Cynthia Osterman)

-reuters-

Apple backs far-reaching emissions disclosure rules

Apple Inc on Tuesday called for the US Securities and Exchange Commission (SEC) to require companies to disclose far-reading emissions information such as how customers use their products, according to a tweet from Apple Vice President Lisa Jackson.

The comments by the iPhone maker mark the most specific prescription to date from a large public company about what disclosures are needed, said Veena Ramani, senior program director for Ceres, a Boston-based climate advocacy group.

The SEC last month said it will seek input on how companies might report on their greenhouse gas emissions and other climate factors.

Investors have poured money into funds that use environmental, social and governance factors to pick stocks, but a lack of common standards has made it hard to compare issuers' operations.

Jackson, a former US environmental regulator, in her tweet included a statement that Apple "believes that the SEC should issue rules to require that companies disclose third-party-audited emissions information to the public, covering all scopes of emissions, direct and indirect, and the value chain."

An Apple spokeswoman confirmed the phrasing referred to so-called Scope 3 emissions like those resulting from the use of a company's products by other parties. While that can be simple for technology or finance companies to provide, calls to publish the data can be controversial for other industries.

In reporting its Scope 3 emissions in January for the first time, oil major ExxonMobil Corp wrote that the data "is less certain and less consistent because it includes the indirect emissions resulting from the consumption and use of a company’s products occurring outside of its control."

Various other business leaders have previously called for mandatory climate disclosures including Larry Fink, CEO of top investor BlackRock Inc. In February, BlackRock also urged heavy polluters to disclose their Scope 3 emissions to investors, like the Task Force on Climate-Related Financial Disclosures has also recommended.

In addition, Apple was among hundreds of companies that on Tuesday pressured the administration of US President Joe Biden to slash greenhouse gas emissions.

-reuters-