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

Meta warns of password-stealing phone apps

Meta warned a million Facebook users Friday that they have been "exposed" to seemingly innocuous smartphone applications designed to steal passwords to the social network.

So far this year, Meta has identified more than 400 "malicious" apps tailored for smartphones powered by Apple or Android software and available at the Apple and Google app stores, director of threat disruption David Agranovich said during a briefing.

"These apps were listed on the Google Play Store and Apple's App Store and disguised as photo editors, games, VPN services, business apps and other utilities to trick people into downloading them," Meta said in a blog post.

The apps often ask people to login with their Facebook account information to use promised features, stealing usernames and passwords if entered, according to Meta's security team.

"They are just trying to trick people into entering in their login information in a way that enables hackers to access their accounts," Agranovich said of the apps.

"We will notify one million users that they may have been exposed to these applications; that is not to say they have been compromised."

More than 40 percent of the apps Meta listed involved ways to edit or manipulate images, and some were as seemingly simple as using smartphones as flashlights.

"Our sense is these types of malicious app developers try to target multiple services," Agranovich said, noting the app creators are likely after passwords to more than just Facebook accounts.

"The targeting here seemed to be relatively indiscriminate – get people to download the applications around the world in an attempt to get access to as many login credentials as possible."

Meta said that it shared what it discovered with Apple and Google, who control what is offered at their respective app shops and each vet offerings.

Apple told AFP that only 45 of the 400 applications highlighted by Meta were on its operating system, and that the company has already removed them from its app store.

Google said that most of the apps Meta flagged had already been identified and removed from the Play store by its own vetting systems.

"All of the apps identified in the report are no longer available on Google Play," a spokesperson told AFP.

"Users are also protected by Google Play Protect, which blocks these apps on Android."

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

Crypto-curious corporations struggle to find right recipe

Four years ago, fried-chicken chain KFC tweeted from its Canadian account that it would accept bitcoin as payment for its "buckets".

The company told AFP its tongue-in-cheek campaign -- "digital tender for chicken tenders" -- sold out in an hour and the chain has not taken crypto payments since, but online articles regularly recycle the claim that KFC "accepts" bitcoin.

Many other companies have tried to harness crypto payments before abandoning their efforts, Tesla and Dell among them.

Bitcoin will almost certainly never be practical for everyday purchases because its value fluctuates wildly, and each transaction is expensive, energy-hungry and takes at least half an hour.

"No one's going to walk into a KFC to buy a chicken burger and then have to wait 30 minutes for a payment," South African developer and crypto expert Andre Cronje told AFP.

But there are now thousands of smaller cryptocurrencies with faster processing times and more stable prices.

Analysts say the total market value of cryptocurrencies has now topped $2 trillion, roughly half of which is bitcoin.

Companies are gagging to get in on the act and developers like Cronje are building the infrastructure to enable the virtual coins to be used to pay for everyday items.

But public buy-in is crucial, and corporations seem to be struggling to find the perfect formula.

'Watch the jockeying'

Microsoft typifies the emerging pattern of big companies dabbling in crypto.

The first rule: keep it at arm's length from the core business.

The tech giant has stressed that shareholders will not be exposed to the ups and downs of crypto prices.

PayPal and Apple, two other crypto-curious corporations, have made similar pledges to their shareholders.

To keep crypto off its balance sheet, Microsoft partnered with a firm called Bakkt that allows clients to convert crypto assets into products like gift cards for Xbox, or charge their Starbucks payment card.

Bakkt, which has received investments from Microsoft's venture capital fund M12, went public last year and a flurry of big partnership announcements with the likes of Mastercard sent its share price soaring.

But then came the nose-dive as it reported widening losses and its business came under scrutiny.

The firm had said it expected to have nine million customers by the end of 2021, yet its executives gave a figure of 1.7 million transacting accounts late last year.

PayPal, meanwhile, garnered a lot of publicity for a "checkout with crypto" feature launched in the US and UK last year.

PayPal's system converts users' cryptoassets into money before passing on payment to the vendors.

But it is unclear how popular any of these services are -- none of these companies responded to AFP requests for details of the uptake.

Market watchers say it is too early to tell how these forays into crypto will play out.

"My view is to not get too excited yet but just watch the jockeying," said analyst John Freeman of CFRA research, accepting the hot air made it difficult to predict what would happen next.

'When, not if'

The barriers to widespread adoption of direct crypto payments for everyday items are considerable -- perhaps even unsurmountable.

Developer Cronje said he functioned largely without the need for regular cash or banks by using services like BitPay and BitRefill, which allow crypto to be spent anywhere from Amazon to Uber.

But he accepted his less tech-savvy friends "would be broke very quickly" if they tried to rely on the blockchain, the technology that underpins cryptocurrencies.

Instead, he envisages a future where people will continue to use credit cards and banks but back-end tasks will be largely automated on the blockchain.

"This is a technology that conservatively is going to save them between 20 percent and 25 percent of their overheads and their costs," he said. 

"So it's not a matter of if, it's a matter of when."

Meanwhile, non-financial businesses will continue to throw themselves into the crypto space, often to emerge slightly wiser but no richer.

The Pavilions hotel chain, for example, partnered with a payments firm last year to allow customers to use crypto but found it made little difference to its business.

"It turns out no one likes to spend their bitcoins, even on holidays!" Pavilions spokesman Tim Sargeant told AFP in an email.

"It has shown us that bitcoin is more an investment tool than something people wish to part with for payment."

Agence France-Presse

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 closes all New York City stores amid rising COVID-19 cases

Apple Inc said on it had closed all of its 7 New York City retail stores due to an increase in COVID-19 cases as the Omicron variant rages across the United States.

Customers will be able to pick up online orders at the stores, an Apple spokesperson said.

The closed stores include outlets at Fifth Avenue, Grand Central and SoHo.

Earlier this month, Apple said it had temporarily closed three stores in the United States and Canada after a rise in COVID-19 cases and exposures among the stores' employees.

For the same reason, Apple also mandated that all its customers and employees wear masks at its US retail stores.

Globally, concerns over the Omicron variant have prompted major companies to tighten their protocols.

Increasing cases has also resulted in reinstatement of a nationwide vaccine-or-testing COVID-19 mandate for large businesses which covers 80 million American workers by a U.S. appeals court earlier this month. Opponents of the move have rushed to the Supreme Court to ask it to intervene.

-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 

App store antics: Legal screws tighten for Google, Apple

PARIS - David Barnard owes his entire livelihood to Apple.

In 2008, he sold his car to start a company building apps for the fledgling iPhone. He's since found success making what he self-deprecatingly calls "boring" apps, including ones that check the weather or help drivers monitor their gas use.

But his conflicting feelings sum up a growing debate -- playing out in courts and parliaments around the world -- over whether both Apple and Google are abusing their monopoly over the app market. 

In a world first, South Korean MPs passed a law Tuesday banning the two tech giants from forcing app developers to use their payment systems.

Until now, those restrictions have allowed Apple to take a cut of up to 30 percent from payments made inside apps downloaded via the App Store, and Google to do the same through its Play Store. 

The tech giants, whose operating systems run on 99 percent of the world's smartphones, have argued this is fair recompense for providing the platforms that allow apps to be downloaded in the first place.

And to some extent, Barnard agrees. "Apple enabled me to build a business, which I'm incredibly grateful for," he said from his home in Texas. "But it comes with some pretty big trade-offs."

Barnard said he had witnessed frustrating cases of companies building clever apps, only for Apple to release similar features that work better with the phone's technology "in ways that developers can't compete with".

And with tens of billions of dollars floating through Apple and Google's payment systems as apps become increasingly integrated into people's shopping and entertainment habits, the commission charges have come in for particularly fierce opposition.

EPIC LEGAL BATTLES 

The fees are at the heart of a bitter lawsuit between Apple and Epic Games, maker of the phenomenally successful video game Fortnite.

The game lets players spend real money on digital items like clothing and weapons. It sounds frivolous, but the trial revealed that this translated to at least $100 million collected by Apple. 

Furious over these lost profits, Epic is also suing both Apple and Google in Australia and has filed complaints with EU and UK competition authorities, in what competition lawyer Pierre Zelenko described as a "worldwide battle" against the tech giants.

"They're piling on the pressure on multiple fronts to have more chances of a recognized authority coming out in their favor," the Linklaters lawyer said. 

Epic are not the only challengers taking on the app market overlords.

In July, 37 US states banded together to sue Google, alleging that the Play Store represents an illegal monopoly.

They claim Google used various strategies to prevent viable competitors to the Play Store emerging, including offering to pay Samsung to make its Galaxy Store less appealing. 

Consumers are meanwhile waging class actions against both companies in the US and UK, while France's competition authority has joined forces with an alliance of start-ups to take Apple to court.

'TOXIC MESS'

Analysts say the new South Korean law could set a precedent as US and European lawmakers debate similar proposals to ban tech giants from forcing customers to use their app stores and payment systems. 

Both Apple and Google have sought to fend of criticism that its hefty fees strangle smaller businesses, by taking a reduced 15 percent from companies earning less than $1 million a year from app sales.

Last week, Apple also proposed a settlement to a class action that would see it pay $100 million to smaller developers like Barnard. 

The offer "clarified" the company's policies to state that developers can use information collected inside apps -- like customers' email addresses -- to tell them about payment efforts that don't involve handing money to Apple.

But developers have complained that the changes are much less radical than Apple claims.

"I've finally come to the conclusion that it's going to take regulation to get Apple to do right by developers and ultimately customers," Barnard said. 

Both tech giants have argued that their stores help consumers by vetting apps, offering better security and privacy. 

Without the App Store, Apple chief Tim Cook told the Epic trial, the app marketplace would be "a toxic kind of mess". 

Barnard broadly agrees that Apple's system makes life easier for consumers, and that it's entitled to reward itself for that.

But he also thinks the vast amounts the company is paying itself are untenable.

"It's time for Apple to rethink how much they charge," he said.

Agence France-Presse

Epic Games says Google paid phone and game makers to avoid $1-billion app store hit

"Fortnite" developer Epic Games on Thursday unsealed details about contracts it alleges Alphabet Inc's Google signed with phone makers and other top video game companies to avoid losing $1.1 billion in annual app store profit.

Epic in 2018 launched "Fortnite" through its website and a partnership with handset maker Samsung Electronics Co , bypassing Google's Play Store, which charges developers fees of up to 30 perecnt of their sales.

Google feared other companies copying Epic and blocked that possibility by erecting unlawful hurdles, Epic alleged in an antitrust lawsuit filed against Google last year.

Google said the lawsuit remains baseless and mischaracterizes business conversations. A trial has not been scheduled.

Among new details a judge ordered be unredacted, Google in 2019 estimated up to $6 billion in Play revenue and $1.1 billion in profit would be at risk in 2022 alone if Epic's approach spread and alternative stores found success, according to the lawsuit.

But Google avoided the feared hit.

In 2019, it launched "Premier Device Program" to pay phone makers to ensure the Play Store's exclusivity and limit the appeal of partnerships similar to what Epic had reached with Samsung, according to the newly released details.

Premier partners received 12 percent of Google's search revenues from their phones, compared with 8 percent traditionally, according to the filing. Some partners, including LG Electronics Inc and Lenovo Group's Motorola, also received 3 percent to 6 percent of Google "Play spend."

Separately, Google in 2019 as part of an effort dubbed "Project Hug" approved spending "hundreds of millions of dollars" on over 20 top developers in marketing and other benefits to keep them on the Play Store, according to the details. The "vast majority" accepted Google's offer by December 2020.

According to the lawsuit, Google internally called the new deals a success in stopping a "contagion" of developers sidestepping the Play Store. 

-reuters-

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