The Almighty Buck

People Put Nearly $1 Billion Into Apple Savings Accounts in First 4 Days (gizmodo.com) 38

Apple has learned from enough games of Monopoly that it's good to be the banker as well as a player. From a report: A Monday report from Forbes based on anonymous internal sources claims users deposited close to $1 billion in just four days after Apple introduced its new Goldman Sachs-backed Apple Card savings account. While the company had previously seen success with its mobile payments platform, the new savings account is already doing gangbusters. After the Cupertino tech giant launched its new high yield savings account last month, the company saw $990 million in deposits in less than a week, per Forbes' sources. In that time, 240,000 accounts signed up for the service. New savings accounts cannot exceed $250,000 per the Federal Deposit Insurance Corporation's insurance limits. If the Forbes reporting is true, then users are depositing several thousand dollars into their new accounts, on average.
AI

Report: Apple's AI and 'Siri' Efforts Hindered by Caution, Dysfunction (macrumors.com) 55

The Information reports: Late last year, a trio of engineers who had just helped Apple modernize its search technology began working on the type of technology underlying ChatGPT... For Apple, there was only one problem: The engineers no longer worked there.
They'd left Apple last fall because "they believed Google was a better place to work on LLMs...according to two people familiar with their thinking... They're now working on Google's efforts to reduce the cost of training and improving the accuracy of LLMs and the products based on these models, according to one of those people."

MacRumors summarizes the article this way. "Siri and Apple's use of AI has been severely held back by caution and organizational dysfunction, according to over three dozen former Apple employees who spoke to The Information's Wayne Ma." The extensive paywalled report explains why former Apple employees who worked in the company's AI and machine learning groups believe that a lack of ambition and organizational dysfunction have hindered âOESiriâOE and the company's AI technologies. Apple's virtual assistant is apparently "widely derided" inside the company for its lack of functionality and minimal improvement over time. By 2018, the team working on âOESiriâOE had apparently "devolved into a mess, driven by petty turf battles between senior leaders and heated arguments over the direction of the assistant."

SiriâOE's leadership did not want to invest in building tools to analyse âOESiriâOE's usage and engineers lacked the ability to obtain basic details such as how many people were using the virtual assistant and how often they were doing so. The data that was obtained about âOESiriâOE coming from the data science and engineering team was simply not being used, with some former employees calling it "a waste of time and money..." Apple executives are said to have dismissed proposals to give âOESiriâOE the ability to conduct extended back-and-forth conversations, claiming that the feature would be difficult to control and gimmicky. Apple's uncompromising stance on privacy has also created challenges for enhancing âOESiriâOE, with the company pushing for more of the virtual assistant's functions to be performed on-device.

Cook and other senior executives requested changes to âOESiriâOE to prevent embarassing responses and the company prefers âOESiriâOE's responses to be pre-written by a team of around 20 writers, rather than AI-generated. There were also specific decisions to exclude information such as iPhone prices from âOESiriâOE to push users directly to Apple's website instead. âOESiriâOE engineers working on the feature that uses material from the web to answer questions clashed with the design team over how accurate the responses had to be in 2019. The design team demanded a near-perfect accuracy rate before the feature could be released. Engineers claim to have spent months persuading âOESiriâOE designers that not every one of its answers needed human verification, a limitation that made it impossible to scale up âOESiriâOE to answer the huge number of questions asked by users.

Similarly, Apple's design team repeatedly rejected the feature that enabled users to report a concern or issue with the content of a âOESiriâOE answer, preventing machine-learning engineers from understanding mistakes, because it wanted âOESiriâOE to appear "all-knowing."

Crime

Former Apple Employee Must Repay $19 Million After Defrauding the Company (theverge.com) 19

A former Apple employee has been sentenced to three years in prison and must pay back over $19 million in restitution for stealing around $17 million from the tech giant through mail and wire fraud schemes. From a report: Dhirendra Prasad, 55, was originally charged in March 2022 and later pleaded guilty to conspiring to defraud Apple and related tax crimes back in November last year. Prasad was employed at the company between 2008 and 2018, mostly working as a buyer in Apple's global service supply chain, purchasing parts and services from vendors. In his written plea agreement, Prasad admitted he started siphoning money from his employer around 2011 by accepting kickbacks, stealing parts, inflating invoices, and fraudulently charging Apple for goods that were never delivered. He also admitted to evading tax on the proceeds of his schemes and conspiring on these activities with the owners of two vendor companies, who have been charged in separate cases.
EU

Apple Discloses App Store Metrics in Europe (apple.com) 27

Apple has revealed App Store metrics in Europe in response to the European Digital Services Act. From the legal compliance post: iOS App Store: 101 million
iPadOS App Store: 23 million
macOS App Store: 6 million
tvOS App Store: 1 million
watchOS App Store: under 1 million
Apple Books: under 1 million
Podcasts paid subscriptions: under 1 million

Apple

Details Emerge About Apple Headset's Tethered Battery Pack (arstechnica.com) 44

An anonymous reader shares a report: Bloomberg reporter Mark Gurman is at it again, sharing insider details about Apple's upcoming mixed-reality headset. This time, Gurman shared new details in his weekly newsletter about the headset's controversial tethered battery pack design. Previous reports from Gurman, supply chain analyst Ming Chi-Kuo, and The Information revealed that after much internal debate, Apple decided to move forward with a headset design that works with an external battery pack connected by a wire.

This is because including the battery inside the headset would make it too bulky and heavy for some users. Apple employees against this approach argued that it made the headset clunky to use, especially in public. Now, for the first time, we have some details on exactly what this will look like. Gurman writes that the headset will have two ports: USB-C and a new proprietary power port. The USB-C port will be used just for data, whereas the proprietary port will be used for "a charging cable that goes into the headset and has a round tip that inserts magnetically."

The Courts

Apple App Store Policies Upheld by Court in Antitrust Challenge Brought by Epic Games (bloomberg.com) 17

Apple won an appeals court ruling upholding its App Store's policies in an antitrust challenge brought by Epic Games. From a report: Monday's ruling by the US Ninth Circuit Court of Appeals affirmed a lower-court judge's 2021 decision largely rejecting claims by Epic, the maker of Fortnite, that Apple's online marketplace policies violated federal law because they ban third-party app marketplaces on its operating system. The appeals panel upheld the judge's ruling in Epic's favor on California state law claims. The ruling comes as Apple has been making changes to the way the App Store operates to address developer concerns since Epic sued the company in 2020. The dispute began after Apple expelled the Fortnite game from the App Store because Epic created a workaround to paying a 30% fee on customers' in-app purchases. "There is a lively and important debate about the role played in our economy and democracy by online transaction platforms with market power," the three-judge panel said. "Our job as a federal court of appeals, however, is not to resolve that debate -- nor could we even attempt to do so. Instead, in this decision, we faithfully applied existing precedent to the facts."
Social Networks

Can Consumers Break Free of the Tech Industry's Hold on Their Messaging History? (msn.com) 54

The Washington Post reports on "a relatively young app called Beeper that pulls all your chats into one place." This is significant, the Post argues, because "we're better off if we have the freedom to pick up our digital lives and move on. Tech companies should feel terrified that you'll walk if they disappoint you..." If different people send you messages in Apple's Messages (a.k.a., iMessage), WhatsApp, LinkedIn and Slack, you don't have to check multiple apps to read and reply. Maybe the best promise of Beeper is that you can ditch your iPhone or Samsung phone for another company's device and keep your text messages...

Eric Migicovsky, Beeper's co-founder, told me that if you're pulling Apple Messages into Beeper, you need a Mac computer to upload a digital file. All chat apps have different limits on how much history you can access in the app.

There's also a wait list of about 170,000 people for Beeper. (Add yourself to the list here.) The app is free, but Beeper says it will start charging for a version with extra features.

To put this all in context, the Post's reporter remembers the hassle of using a cable to transfer a long history of iPhone messages to a new Google Pixel phone, complaining that Apple makes it more difficult than other companies to switch to a different kind of system. "Many of you are happy to live in Apple's world. Great! But if you want the option to leave at some point, try to limit your use of Apple apps when possible..."

They look ahead to next year, when the EU "will require large tech companies to make their products compatible with those of competitors" — though it's not clear how much change that will bring. In the meantime, the existence of a small company like Beeper "gives me hope that we don't have to rely on the kindness of technology giants to make it easier to move to a different phone or computer system... You deserve the option of a no-hassle tech divorce at a moment's notice."
Businesses

When Apple Comes Calling, 'It's the Kiss of Death' (wsj.com) 139

Aspiring partners accuse Apple of copying their ideas. From a report: It sounded like a dream partnership when Apple reached out to Joe Kiani, the founder of a company that makes blood-oxygen measurement devices. He figured his technology was a perfect fit for the Apple Watch. Soon after meeting him, Apple began hiring employees from his company, Masimo, including engineers and its chief medical officer. Apple offered to double their salaries, Mr. Kiani said. In 2019, Apple published patents under the name of a former Masimo engineer for sensors similar to Masimo's, documents show. The following year, Apple launched a watch that could measure blood oxygen levels. "When Apple takes an interest in a company, it's the kiss of death," said Mr. Kiani. "First, you get all excited. Then you realize that the long-term plan is to do it themselves and take it all." Mr. Kiani is one of more than two dozen executives, inventors, investors and lawyers who described similar encounters with Apple. First, they said, came discussions about potential partnerships or integration of their technology into Apple products. Then, they said, talks stopped and Apple launched its own similar features.

Apple said that it doesn't steal technology and that it respects the intellectual property of other companies. It said Masimo and other companies cited in this article are copying Apple, and that it would fight the claims in court. Apple has tried to invalidate hundreds of patents owned by companies that have accused Apple of violating their patents. According to lawyers and executives at some smaller companies, Apple sometimes files multiple petitions on a single patent claim and attempts to invalidate patents unrelated to the initial dispute. Many large companies, particularly in tech, have been known to scoop up employees and technology from smaller potential rivals. Software developers have given a name to what they describe as Apple's behavior in such cases: sherlocking. The term refers to an episode about two decades ago, when Apple released a software product called "Sherlock" that helped users find files on its Mac computers and perform internet searches.

Apple

Apple's VR Headset Might Run Tweaked Versions of iPad Apps (theverge.com) 22

Apple's long-rumored VR / AR headset might run adapted versions of iPad apps, according to a new report from Bloomberg. The mixed reality device's new interface will also apparently let users access "millions" of already-available apps on the App Store. And the headset's apps might not be the only thing that might remind you of the iPad; the Home Screen and Control Center will apparently look like the iPad's as well, Bloomberg says. The Verge reports: Here are some of the apps you can expect, according to Bloomberg:

- Apple is working on "optimized" versions of apps like Safari and many of the core apps you might already be familiar with from an iPhone, including "Apple's services for calendars, contacts, files, home control, mail, maps, messaging, notes, photos and reminders, as well as its music, news, stocks and weather apps."
- There will be headset versions of FaceTime and Apple TV with features that "will look similar to their iPad counterparts."
- Apple is apparently testing a camera app, which could let you take pictures using its many rumored cameras.
- You'll be able to read books in VR with Apple Books and meditate with an app.
- A headset-compatible version of its new Freeform app could let you collaborate with others in mixed reality.
- Freeform won't be the only productivity app: the headset will also apparently support Pages, Numbers, Keynote, iMovie, and GarageBand.
- Apple wants to make watching sports a "richer experience," which could utilize technology it acquired when it bought NextVR.
- Gaming will "be a central piece of the device's appeal." (That feels like a smart decision.)

Apple

Apple Is the One Big Tech Company Without a Clear ChatGPT Strategy (bloomberg.com) 57

The global excitement around ChatGPT, and the haste to copy it, resembles the introduction of an Apple product. Everyone is stoked to try it, and other tech companies are working late nights to reverse engineer it. This time, Apple is nowhere to be found. Has the speed of it all caught the world's most influential tech company by surprise? From a report: Microsoft has poured $10 billion into OpenAI, the maker of ChatGPT, and reconfigured how it builds server farms to accommodate more of Nvidia's class-leading processors for training artificial intelligence. Alphabet's Google has made responding to ChatGPT a top priority. Amazon has also jumped into the fray with its cloud division. That's four of the world's top seven most valuable companies, and yet, the most valuable of them all seems to have no ready answer for what's coming. Bloomberg reported on an internal AI summit Apple held in February, when machine learning and other deployments of the tech across Apple products were discussed, but there was no hint of anything in the genre of generative AI.

AI in Apple products today is like irrigation for its walled garden, essential and helpful for an increasing number of functions, but ultimately it's the hardware fruit that Apple sells. Generative AI could come in like a tidal wave. Apple, by all appearances, squandered the lead it established since becoming the first big tech company to make an AI-powered voice assistant. Siri was clearly flawed from the start, but it looks ancient by the standards of ChatGPT. To compete in this new AI race, companies need massive, bespoke computational clusters that cost hundreds of millions of dollars. Cloud services are not Apple's strongest suit right now, as its chief for that division is leaving, and iCloud has been the subject of lament in this very newsletter. The company is investing significant resources in the augmented-reality headset we expect to debut in June and the long-mooted, capital-intensive automotive initiative.

Security

NSO Hacked iPhones Without User Clicks in 3 New Ways, Researchers Say (washingtonpost.com) 24

Israeli spyware maker NSO Group deployed at least three new "zero-click" hacks against iPhones last year, finding ways to penetrate some of Apple's latest software, researchers at Citizen Lab have discovered. From a report: The attacks struck phones with iOS 15 and early versions of iOS 16 operating software, Citizen Lab said in a report Tuesday. The lab, based at the University of Toronto, shared its results with Apple, which has now fixed the flaws that NSO had been exploiting. It's the latest sign of NSO's ongoing efforts to create spyware that penetrates iPhones without users taking any actions that allow it in. Citizen Lab has detected multiple NSO hacking methods in past years while examining the phones of likely targets, including human rights workers and journalists.

While it is unsettling to civil rights groups that NSO was able to come up with multiple new means of attack, it did not surprise them. "It is their core business," said Bill Marczak, a senior researcher at Citizen Lab. "Despite Apple notifying targets, and the Commerce Department putting NSO on a blacklist, and the Israeli ministry cracking down on export licenses -- which are all good steps and raising costs -- NSO for the moment is absorbing those costs," Marczak said. Given the financial and legal fights NSO is involved in, Marczak said it was an open question how long NSO could keep finding or buying new exploits that are effective.

Portables (Apple)

New MacBooks, a Big New WatchOS Update, and Apple's Mixed Reality Headset To Be Announced At WWDC (theverge.com) 49

In addition to the company's long-rumored mixed reality headset, Apple is expected to launch new MacBooks, as well as a "major" update to the Apple Watch's watchOS software at its Worldwide Developers Conference (WWDC) in June. All told, WWDC 2023 could end up being one of Apple's "biggest product launch events ever," according to Bloomberg's Mark Gurman. The Verge reports: Let's start with the Macs. Gurman doesn't explicitly say which macOS-powered computers Apple could announce in June, but lists around half a dozen devices it currently plans to release this year or early 2024. There's an all new 15-inch MacBook Air, an updated 13-inch MacBook Air, and new 13-inch and "high-end" MacBook Pros. Meanwhile on the Mac side Apple still needs to replace its last Intel-powered device, the Mac Pro, with an Apple Silicon model, and it also reportedly has plans to refresh its all-in-one 24-inch iMac.

Bloomberg's report notes that "at least some of the new laptops" will make an appearance. The bad news is that none are likely to run Apple's next-generation M3 chips, and will instead ship with M2-era processors. Apple apparently also has a couple of new Mac Studio computers in development, but Bloomberg is less clear on when they could launch.

Over on the software side, which is WWDC's traditional focus, watchOS will reportedly receive a "major" update that includes a revamped interface. Otherwise, we could be in for a relatively quiet show on the operating system front as iOS, iPadOS, macOS, and tvOS are not expected to receive major updates this year. Gurman does say that work to allow sideloading on iOS to comply with upcoming EU legislation is ongoing.

Security

LockBit Ransomware Samples For Apple Macs Hint At New Risks For MacOS Users (wired.com) 20

An anonymous reader writes: Security researchers are examining newly discovered Mac ransomware samples from the notorious gang LockBit, marking the first known example of a prominent ransomware group toying with macOS versions of its malware. Spotted by MalwareHunterTeam, the samples of ransomware encryptors seem to have first cropped up in the malware analysis repository VirusTotal in November and December 2022, but went unnoticed until yesterday. LockBit seems to have created both a version of the encryptor targeting newer Macs running Apple processors and older Macs that ran on Apple's PowerPC chips.

Researchers say the LockBit Mac ransomware appears to be more of a first foray than anything that's fully functional and ready to be used. But the tinkering could indicate future plans, especially given that more businesses and institutions have been incorporating Macs, which could make it more appealing for ransomware attackers to invest time and resources so they can target Apple computers. "It's unsurprising but concerning that a large and successful ransomware group has now set their sights on macOS," says longtime Mac security researcher and Objective-See Foundation founder Patrick Wardle. "It would be naive to assume that LockBit won't improve and iterate on this ransomware, potentially creating a more effective and destructive version."

For now, Wardle notes that LockBit's macOS encryptors seem to be in a very early phase and still have fundamental development issues like crashing on launch. And to create truly effective attack tools, LockBit will need to figure out how to circumvent macOS protections, including validity checks that Apple has added in recent years for running new software on Macs. "In some sense, Apple is ahead of the threat, as recent versions of macOS ship with a myriad of built-in security mechanisms aimed to directly thwart, or at least reduce the impact of, ransomware attacks," Wardle says. "However, well-funded ransomware groups will continue to evolve their malicious creations."

Apple

iOS 17 To Support App Sideloading To Comply With European Regulations (macrumors.com) 157

Apple in iOS 17 will for the first time allow iPhone users to download apps hosted outside of its official App Store, according to Bloomberg's Mark Gurman. From a report: Otherwise known as sideloading, the change would allow customers to download apps without needing to use the App Store, which would mean developers wouldn't need to pay Apple's 15 to 30 percent fees. The European Union's Digital Markets Act (DMA), which went into effect on November 1, 2022, requires "gatekeeper" companies to open up their services and platforms to other companies and developers. The DMA will have a big impact on Apple's platforms, and it could result in Apple making major changes to the App Store, Messages, FaceTime, Siri, and more. Apple is planning to implement sideloading support to comply with the new European regulations by next year, according to Gurman.
Apple

Apple Launches Apple Card's Savings Accounts With 4.15% Interest Rate (techcrunch.com) 47

Apple Card customers in the U.S. can open a savings account and earn interests starting today. When the company originally announced the new financial product back in October, Apple said that it couldn't share what interest rate would be paid out on these accounts because rates are fluctuating so much these days. From a report: As of today, Apple is going to offer an APY of 4.15%. It looks like a competitive offering when you look at data from Bankrate -- you can currently find savings accounts that offer an APY of 3.5% to 4.75%. The company isn't making any promise when it comes to future interest rates. It could go up and down at any time. Apple has partnered with Goldman Sachs once again for the banking feature. Savings accounts are technically managed by Goldman Sachs, which means that balances are covered by the Federal Deposit Insurance Corporation (FDIC). This high-yield savings account has been created specifically for Apple Card customers. When customers pay with their Apple Card, they get cash back on all purchases. By default, all purchases grant you 1% in cash rewards and 2% for all purchases made using Apple Pay. Purchases with select merchants unlock 3% in rewards.
Apple

Make Something Wonderful: Steve Jobs in His Own Words (stevejobsarchive.com) 54

Steve Jobs Archive: The official ebook edition of Make Something Wonderful: Steve Jobs in his own words is free to read on Apple Books and from participating libraries through our partners at Libby. You can also download the book to view it on any compatible e-reader: our EPUB file works on almost all tablets, smartphones, desktop computers, and digital reading devices. From a speech in 2007: There's lots of ways to be, as a person. And some people express their deep appreciation in different ways. But one of the ways that I believe people express their appreciation to the rest of humanity is to make something wonderful and put it out there.

And you never meet the people. You never shake their hands. You never hear their story or tell yours. But somehow, in the act of making something with a great deal of care and love, something's transmitted there. And it's a way of expressing to the rest of our species our deep appreciation. So we need to be true to who we are and remember what's really important to us."

Earth

Apple To Invest Another $200 Million In Carbon Removal Fund (reuters.com) 31

Apple said it will invest up to an additional $200 million in its Restore Fund, which was created in 2021 to remove carbon from the atmosphere. Reuters reports: The additional investment is expected to help the fund start new projects and carry forward its previously stated goal to remove about 1 million metric tons of carbon dioxide per year, the company said. Apple is making efforts to become carbon neutral through its entire supply chain and the life cycle of every product by 2030.

The fund, launched with Goldman Sachs Group Inc (GS.N) and nonprofit Conservation International, has invested in forest properties in Brazil and Paraguay in the last two years. The expanded fund will be managed by Climate Asset Management, a joint venture of HSBC Asset Management and Pollination, Apple added.

Apple

France Eyeing Antitrust Action Against Apple (axios.com) 25

The French Competition Authority is likely to move forward soon with an antitrust investigation into Apple over complaints tied to 2021 changes to its app tracking policies, Axios reported, citing sources. From the report: A formal investigation would mark the first major government move taken globally against Apple related to privacy rule changes that upended the digital advertising world. French regulators are favoring issuing a formal "Statement of Objections" to parties involved in the matter in coming weeks, sources told Axios.

That step would signal to groups that issued initial complaints about Apple's actions and Apple that the authority found evidence of illegal anticompetitive behavior in its initial review of the complaints it received. The 2020 complaint argues that Apple's app tracking changes did not adequately adhere to European Union privacy rules and that Apple failed to hold itself to the same ad targeting standards that it forced on its competitors because it targeted iOS users with ads from app tracking data. The complaint was filed jointly by four French advertising trade groups -- IAB France, Mobile Marketing Association (MMA), SRI and UDECAM.

Apple

Global PC Shipments Dropped by a Third in Q1 (techcrunch.com) 40

After a nice spike during the first two years of the pandemic, global PC shipments continued to drop for a fourth consecutive quarter. Analyst firm IDC's latest figure has Q1 down 29% from the same time last year. Canalys paints an even more troubling picture for the industry, with a full 33% drop. From a report: A disappointing 2022 holiday set the stage for the beginning of the year, as vendor inventory has continued to pile up -- a trend that is expected to carry at least into Q3. The plunge has been so consistent that last quarter's figures dipped below those of Q1 2019, putting worldwide shipments below their pre-pandemic level.

[...] The culprits? For starters, a lot of people purchased news systems in 2020 and 2021 as their work settings adapted to a global pandemic. Laptops tend to have a life span of around three to five years. Desktops are even longer, at three to eight. People are likely to be content with their systems for a few years at least. As vendors go, both IDC and Canalys have Apple suffering the largest drop at 40.5 and 45.5%, respectively. That's a staggering figure, likely owing -- at least in part â" to the company coming back down to earth, as the M1 chip managed to buck larger category trends in 2021/2022. That chip marked Apple's biggest PC computing update since the company shifted to Intel decades prior. In spite of what ad copy might suggest, you don't get a generational shift every year.

Iphone

Texas Dad Says 'Find My iPhone' Glitch is Directing Angry Strangers to his Home (abc13.com) 161

An anonymous reader shares a report from the New York Post: A supposed glitch in the popular "Find My iPhone" app has been directing random strangers to the home of an unsuspecting Texas dad at all hours of the day, falsely accusing him of stealing their electronic devices.

[Software engineer] Scott Schuster told the local news station KTRK that he's been visited by close to a dozen irate people over the past few years, telling him that their missing phone had last pinged at his address. "[I] had to wake up and go answer the door and explain to them that I didn't have their device, and people don't tend to believe you," the dad of two told the outlet.

The Texas resident tells KTRK that his biggest concern was "someone coming to the house potentially with a weapon."

And the same station reports that local sheriff Eric Fagan "said he was so shocked and concerned that he informed his patrol units and dispatchers, just in case anyone called about the address." "Apple needs to do more about this," Fagan said. "Please come out and check on this. This is your expertise. Mine is criminal and keeping our public safe here in Fort Bend County." Fagan added that Apple doing nothing puts a family's safety in jeopardy. "I would ask them to come out and see what they can do. It should be taken seriously. You are putting innocent lives at risk," he said....

There have been other high-profile device pinging errors elsewhere in the country, with at least one that brought armored vehicles to a neighborhood. In 2021, body camera footage captured a Denver police SWAT team raiding the home of a 77-year-old woman in Colorado over a false ping on the app. Denver officers believed she had stolen guns connected to a car theft after tracking a stolen iPhone to her address using the Find My app. That woman later sued the lead detective.

ABC13 has tried contacting the software giant since Tuesday. Someone called back, so we know they are aware of the incident. Still, no one has said if they are going to fix the issue, or at the very least, look into the matter.

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