Apple

apple-apologizes-for-ad-that-crushes-the-sum-total-of-human-artistic-endeavor

Apple apologizes for ad that crushes the sum total of human artistic endeavor

crushed —

An ad that isn’t about generative AI but somehow manages to be about AI anyway.

One of many human-created objects destroyed in Apple's

Enlarge / One of many human-created objects destroyed in Apple’s “Crush!” ad for the iPad Pro.

Apple

Earlier this week, Apple took the wraps off of a thoroughly leaked iPad Pro refresh with a 1 minute and 8 second ad spot wherein a gigantic hydraulic press comprehensively smushes a trumpet, an arcade cabinet, a record player, paint cans, a piano, a TV, sculptures, a bunch of emoji, and plenty of other tools that one might loosely categorize as “artistic implements.”

At the end of the ad, the press lifts away to reveal a somewhat thinner, somewhat faster version of Apple’s iPad Pro. The message of the ad, titled “Crush!” and still available via Apple’s YouTube channel and CEO Tim Cook’s Twitter account, is obvious: look at all of the things we’ve squeezed into this tablet!

“Just imagine all the things it’ll be used to create,” wrote Cook.

But it’s the apparently unintended subtext of the ad that has caused problems. Yesterday afternoon, the company issued a rare public apology for the ad following a social media uproar. Critics were upset both about the destruction of the objects themselves (whether those objects were physical or computer-generated or some mix of the two isn’t clear), and about the symbolism of a Big Tech company destroying art and the things used to create and consume art.

“Creativity is in our DNA at Apple, and it’s incredibly important to us to design products that empower creatives all over the world,” said Apple marketing communications VP Tor Myhren to Ad Age. “Our goal is to always celebrate the myriad of ways users express themselves and bring their ideas to life through iPad. We missed the mark with this video, and we’re sorry.”

Apple won’t be taking the ad down, but the company has apparently canceled plans to run it on TV.

The Crush ad never once mentions or shows any kind of generative AI technology, something Apple has been mostly quiet about ahead of AI-focused iOS and iPadOS 18 updates later this month. But it still feels like the backlash to the ad is being driven by generative AI anyway.

The generative AI push of the last two years has largely been defined by two kinds of stories: tech companies’ unrelenting sprint to cram as many AI features into as many of their products as possible as quickly as possible and backlash from artists, authors, programmers, and any other human whose efforts have been used to train these AI models. When people already feel that tech companies and executives are trying to replace them with generic machine-made sludge, it’s tone deaf at best to introduce a new product with an ad where a colorful, messy, tactile tower of art, instruments, and other creative tools is literally flattened to make way for a shiny, featureless slab of metal and glass. 

I understand why people at Apple thought the Crush ad was effective. Phones, tablets, and computers are useful precisely because they can stand in for so many other things. But what Apple should keep in mind, both in its future hardware introductions and as it adds generative AI capabilities to its software in the coming months, is to keep its focus on the people using the tools rather than the tools themselves. 

Apple apologizes for ad that crushes the sum total of human artistic endeavor Read More »

a-crushing-backlash-to-apple’s-new-ipad-ad

A crushing backlash to Apple’s new iPad ad

1984 called and would like to have a word —

Hydraulic press destroying “symbols of creativity” has folks hopping mad.

A screenshot of the Apple iPad ad

Enlarge / A screenshot of the Apple iPad ad.

Apple via YouTube

An advert by Apple for its new iPad tablet showing musical instruments, artistic tools, and games being crushed by a giant hydraulic press has been attacked for cultural insensitivity in an online backlash.

The one-minute video was launched by Apple chief executive Tim Cook to support its new range of iPads, the first time that the US tech giant has overhauled the range for two years as it seeks to reverse faltering sales.

The campaign—soundtracked by Sonny and Cher’s 1971 hit All I Ever Need Is You—is designed to show how much Apple has been able to squeeze into the thinner tablet. The ad was produced in-house by Apple’s creative team, according to trade press reports.

The campaign has been hit by a wave of outrage, with responses on social media reacting to Cook’s X post accusing Apple of crushing “beautiful creative tools” and the “symbols of human creativity and cultural achievements.”

Advertising industry executives argued the ad represented a mis-step for the Silicon Valley giant, which under late co-founder Steve Jobs was lauded for its ability to capture consumer attention through past campaigns.

Christopher Slevin, creative director for marketing agency Inkling Culture, compared the iPad ad unfavorably to a famous Apple campaign directed by Ridley Scott called “1984” for the original Macintosh computer, which positioned Apple as liberating a dystopian, monochrome world.

“Apple’s new iPad spot is essentially them turning into the thing they said they were out to destroy in the 1984 ad,” said Slevin.

Actor Hugh Grant accused Apple of “the destruction of the human experience courtesy of Silicon Valley” on X.

However, Richard Exon, founder of marketing agency Joint, said: “A more important question is: does the ad do its job? It’s memorable, distinctive, and I now know the new iPad has even more in it yet is thinner than ever.”

Consumer insights platform Zappi conducted consumer research on the ad that suggested that the idea of the hydraulic press crushing art was divisive.

It said that the ad underperformed benchmarks in typically sought-after emotions such as happiness and laughter and overperformed in traditionally negative emotions like shock and confusion, with older people more likely to have a negative response than younger consumers.

Nataly Kelly, chief marketing officer at Zappi, said: “Is the Apple iPad ad a work of genius or the sign of the dystopian times? It really depends on how old you are. The shock value is the power of this advert, which is controversial by design, so the fact that people are talking about it at all is a win.”

Apple did not immediately respond to a request for comment.

© 2024 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

A crushing backlash to Apple’s new iPad ad Read More »

logic-pro-gets-some-serious-ai—and-a-version-bump—for-mac-and-ipad

Logic Pro gets some serious AI—and a version bump—for Mac and iPad

The new Chord Track feature.

Enlarge / The new Chord Track feature.

Apple

If you watched yesterday’s iPad-a-palooza event from Apple, then you probably saw the segment about cool new features coming to the iPad version of Logic Pro, Apple’s professional audio recording software. But what the event did not make clear was that all the same features are coming to the Mac version of Logic Pro—and both the Mac and iPad versions will get newly numbered. After many years, the Mac version of Logic Pro will upgrade from X (ten) to 11, while the much more recent iPad version increments to 2.

Both versions will be released on May 13, and both are free upgrades for existing users. (Sort of—iPad users have to pay a subscription fee to access Logic Pro, but if you already pay, you’ll get the upgrade. This led many people to speculate online that Apple would move the Mac version of Logic to a similar subscription model; thankfully, that is not the case. Yet.)

Both versions will gain an identical set of new features, which were touched on briefly in Apple’s event video. But thanks to a lengthy press release that Apple posted after the event, along with updates to Apple’s main Logic page, we now have a better sense of what these features are, what systems they require, and just how much Apple has gone all-in on AI. Also, we get some pictures.

The new ChromaGlow plugin. It saturates!

Enlarge / The new ChromaGlow plugin. It saturates!

AI everywhere

One of Logic’s neat features is Drummer, a generative performer that can play in many different styles, can follow along with recorded tracks, and can throw in plenty of fills and other humanizing variations. For a tool that comes free with your digital audio workstation, it’s an amazing product, and it has received various quality-of-life improvements over the last decade, including producer kits that let you break out and control each individual percussion element. But what we haven’t seen in 10 years is new generative session players, especially for bass and keys.

The wait is over, though, because Apple is adding a bass and a keyboard player to Logic. The new Bass Player was “trained in collaboration with today’s best bass players, using advanced AI and sampling technologies,” Apple says. Logic will also come with Studio Bass, a set of six new instruments.

The Keyboard Player works similarly and gets a new Studio Piano plugin that provides features commonly found in paid virtual instruments (multiple mic positions, control over pedal and key noise, sympathetic resonance, and release samples). Apple says that Keyboard Player can handle everything from “simple block cords to chord voicing with extended harmony—with nearly endless variations.”

  • The new Drummer.

  • Keyboard Player.

Drummer’s secret to success is in just how easy it makes dialing in a basic drum pattern. Select the drummer who plays your style, pick a kit you like, and then pick a variation; after that, simply place a dot on a big trackpad-style display that balances complexity with volume, and you have something usable, complete with fills. Bass and Keyboard Players can’t work that way, of course, but Apple is bringing a feature seen in some other DAWs to Logic in order to power both new session players: Chord Track.

Logic Pro gets some serious AI—and a version bump—for Mac and iPad Read More »

hands-on-with-the-new-ipad-pros-and-airs:-a-surprisingly-refreshing-refresh

Hands-on with the new iPad Pros and Airs: A surprisingly refreshing refresh

Apple's latest iPad Air, now in two sizes. The Magic Keyboard accessory is the same one that you use with older iPad Airs and Pros, though they can use the new Apple Pencil Pro.

Enlarge / Apple’s latest iPad Air, now in two sizes. The Magic Keyboard accessory is the same one that you use with older iPad Airs and Pros, though they can use the new Apple Pencil Pro.

Andrew Cunningham

Apple has a new lineup of iPad Pro and Air models for the first time in well over a year. Most people would probably be hard-pressed to tell the new ones from the old ones just by looking at them, but after hands-on sessions with both sizes of both tablets, the small details (especially for the Pros) all add up to a noticeably refined iPad experience.

iPad Airs: Bigger is better

But let’s begin with the new Airs since there’s a bit less to talk about. The 11-inch iPad Air (technically the sixth-generation model) is mostly the same as the previous-generation A14 and M1 models, design-wise, with identical physical dimensions and weight. It’s still the same slim-bezel design Apple introduced with the 2018 iPad Pro, just with a 60 Hz LCD display panel and Touch ID on the power button rather than Face ID.

So when Apple says the device has been “redesigned,” the company is mainly referring to the fact that the webcam is now mounted on the long edge of the tablet rather than the short edge. This makes its positioning more laptop-y when it’s docked to the Magic Keyboard or some other keyboard.

The most welcome change to the Air is the introduction of a 13-inch model (blessedly, no longer “12.9 inches”). It looks like the old 12.9-inch iPad Pro design from circa 2018 but with the simpler single-lens 12 MP camera and the Touch ID button rather than the Face ID sensor.

The new iPad Air.

Enlarge / The new iPad Air.

Andrew Cunningham

With the iPad Pro and the Air next to each other, it’s clear which has the superior screen—the 120 Hz refresh rate of ProMotion and the infinite contrast of OLED are definitely major points in the Pro’s favor. But if you’re just looking for a big screen for watching videos, reading books, or playing games, or if you’re just looking for a general-use laptop replacement tablet, Apple is still using a great 60 Hz LCD panel here. And the $799 price tag is considerably lower than any of Apple’s past 12.9-inch iPad Pros.

Like the 15-inch MacBook Air, it’s a way for people to get a bigger screen without paying for advanced screen technologies or faster processors if they don’t want or need them. It’s hard to find a downside to that, as long as you’re OK with iPadOS’ differences and restrictions relative to macOS.

Hands-on with the new iPad Pros and Airs: A surprisingly refreshing refresh Read More »

new-“apple-pencil-pro”-can-do-a-barrel-roll

New “Apple Pencil Pro” can do a barrel roll

It’s thinner —

New Magic Keyboard promises a Macbook-like experience, while the Pencil gets new tricks.

  • The Apple Pencil Pro

    Apple

  • You can squeeze the pencil to bring up a menu.

    Apple

  • The new features.

    Apple

  • Pencil pricing.

    Apple

  • The new Magic Keyboard. It’s bascially the bottom half of a Macbook.

    Apple

  • The Magic Keyboard trackpad is bigger and has haptic feedback.

    Apple

  • It’s still floaty.

    Apple

  • Keyboard pricing.

    Apple

With new iPads come new keyboards and pencils, and the big news today is the “Apple Pencil Pro,” a souped-up version of Apple’s iPad stylus. The Pencil Pro is $129 and works with the new iPad Pro and iPad Air.

How much can you improve a stylus? How about rotation detection via a new gyroscope embedded in the pencil? Apple calls this a “barrel roll,” which provides rotation input in your iPad apps. If you’re drawing and are using a brush that isn’t symmetrical, a barrel roll will change the rotation of the brush. If you have a 3D item out in Procreate, a pencil rotation will rotate the 3D item. Devs can cook up whatever app interactions they can think of with this new feature.

The Pencil is also squeezable now, which can bring up a context menu. It also has haptics embedded in it, so you’ll get feedback whenever you squeeze or rotate an item. The Pencil magnetically clips on the side of the iPad for charging, but if you happen to lose it, it will also show up in the Find My app next to all your other Apple things.

Also in the “new iPad accessory” category is an “all-new” Magic keyboard. Just like the iPad Pro it’s compatible with, it’s “much thinner and even lighter” than the previous version. The keyboard now has a function row with screen brightness, media, and volume controls. Basically, it’s closer than ever to a Macbook keyboard. The deck is aluminum, of course, and features a new, larger trackpad with haptic feedback.

The new keyboard is $299 for the 11-inch and $349 for the 13-inch iPad Pro.

New “Apple Pencil Pro” can do a barrel roll Read More »

apple-kills-$329-ipad-with-home-button,-lightning-port

Apple kills $329 iPad with home button, Lightning port

12.5 percent cheaper —

No more home button.

Apple kills $329 iPad with home button, Lightning port

Apple is lowering the price of its 10th-generation iPad from $399 to $349, the company announced at its Let Loose event today.

The 10th-generation iPad did away with the top and bottom bezels that previous iPads carried. The 10.9-inch tablet also doesn’t have a home button, showing Apple, under pressure from European Union regulations, moving from a Lightning port to USB-C.

However, Apple is also doing away with the $329 9th-generation iPad, effectively increasing the price of entry for an iPad.

You won't be able to buy this 9th-generation iPad from Apple anymore.

Enlarge / You won’t be able to buy this 9th-generation iPad from Apple anymore.

Apple

The $329 iPad had an old-school home button and a Lightning port. The cheaper iPad also supported the 1st-generation Apple Pencil that had a round barrel shape and glossy finish and also used a Lightning port. Meanwhile, Apple’s Pencil lineup has moved toward magnetic charging and other new features.

Apple kills $329 iPad with home button, Lightning port Read More »

apple-announces-m4-with-more-cpu-cores-and-ai-focus,-just-months-after-m3

Apple announces M4 with more CPU cores and AI focus, just months after M3

it’s one more —

Aggressive update schedule is a major departure for Apple Silicon.

Apple's M4 chip in the new iPad Pro. It follows the M3 by just a few months.

Enlarge / Apple’s M4 chip in the new iPad Pro. It follows the M3 by just a few months.

Apple

In a major shake-up of its chip roadmap, Apple has announced a new M4 processor for today’s iPad Pro refresh, barely six months after releasing the first MacBook Pros with the M3 and not even two months after updating the MacBook Air with the M3.

Apple says the M4 includes “up to” four high-performance CPU cores, six high-efficiency cores, and a 10-core GPU. Apple’s high-level performance estimates say that the M4 has 50 percent faster CPU performance and four times as much graphics performance. Like the GPU in the M3, the M4 also supports hardware-accelerated ray-tracing to enable more advanced lighting effects in games and other apps. Due partly to its “second-generation” 3 nm manufacturing process, Apple says the M4 can match the performance of the M2 while using just half the power.

As with so much else in the tech industry right now, the M4 also has an AI focus; Apple says it’s beefing up the 16-core Neural Engine (Apple’s equivalent of the Neural Processing Unit that companies like Qualcomm, Intel, AMD, and Microsoft have been pushing lately). Apple says the M4 runs up to 38 trillion operations per second (TOPS), considerably ahead of Intel’s Meteor Lake platform, though a bit short of the 45 TOPS that Qualcomm is promising with the Snapdragon X Elite and Plus series. The M3’s Neural Engine is only capable of 18 TOPS, so that’s a major step up for Apple’s hardware.

Apple’s chips since 2017 have included some version of the Neural Engine, though to date, those have mostly been used to enhance and categorize photos, perform optical character recognition, enable offline dictation, and do other oddities. But it may be that Apple needs something faster for the kinds of on-device large language model-backed generative AI that it’s expected to introduce in iOS and iPadOS 18 at WWDC next month.

The wait between the M1 and M2 and the wait between the M2 and M3 were each about a year and a half. With as few technical details as Apple has announced, it’s tough to know what to make of the faster turnaround between the M3 and M4. It could be that the M3 was behind schedule and the M4 was on time or ahead; it could also be that the M4 is a relatively modest architectural update to the M3. We’ll need to test the hardware ourselves to determine exactly how the M3 and M4 stack up to each other.

The fast introduction of the M4 makes it a little clearer why Apple might choose not to update devices like the Mac mini with an M3 chip. Either the M3 processor generation will be uncommonly short, or Apple plans to sell a mix of M3 and M4 devices this year.

Apple announces M4 with more CPU cores and AI focus, just months after M3 Read More »

new-ipad-pros-are-the-thinnest-apple-device-ever,-feature-dual-oled-screens

New iPad Pros are the thinnest Apple device ever, feature dual-OLED screens

Apple spring event 2024 —

They also contain what Apple calls the fastest consumer AI computer you can buy.

New iPad Pros are the thinnest Apple device ever, feature dual-OLED screens

Apple

Apple’s newest iPad Pro puts an M4 chip inside a thinner frame and is available in new 11-inch and 13-inch sizes, while also upgrading the screens on both to “tandem” OLED displays for more brightness.

Compared to the last iPad Pro, released in early 2022, Apple is highlighting how thin and light these new Pros are. The 11-inch model is 5.3 mm thick and weighs less than a pound, while the 13-inch is 5.1 mm, which Apple says is its thinnest product ever, at 1.28 pounds.

The tandem OLED design, dubbed Ultra Retina XDR, delivers 1000 nits at full-screen brightness, and 1600 nits at peak HDR, equivalent to a high-end Samsung TV. The screens are “nano-texture glass,” which is essentially a matte display finish.

What’s really big is the inclusion of an M4 chip, built from a second-generation 3-nanometer process. It’s the first time the iPad Pro has included a new Apple chip ahead of other devices. Apple is touting a 50 percent improvement over M2 performance and can deliver the same performance as M2 at half the power, or one-quarter the power in certain scenarios. Notably, the new iPad Air uses the M2; this year’s lineup puts more of a gap between the use cases and price/performance points of the various iPads, even if there is still some cross-over.

The chip’s neural engine got a very specific call-out; it’s capable of 38 trillion operations per second, and Apple says it’s the most powerful (consumer-level) AI computer sold.

The new iPad Pros get a 12 megapixel camera, along with LIDAR scanners and an adaptive flash that improves document scanning. Finally, the “selfie”/conferencing camera moves to the landscape position on the iPad Pro, making that ultra-wide 12MP camera far more useful and the iPad-as-laptop experience a good deal better. On that note, there are new Magic Keyboards, Smart Folios, and an Apple Pencil Pro available soon to attach to these new models.

The 11-inch iPad Pro starts at $999, and the 13-inch starts at $1,299, with 256GB storage to start. They’re both available for order today, with delivery next week.

This is a developing story and this post will be updated.

New iPad Pros are the thinnest Apple device ever, feature dual-OLED screens Read More »

apple’s-first-13-inch-ipad-air-debuts-at-$799-next-week

Apple’s first 13-inch iPad Air debuts at $799 next week

More Air —

There’s also a new 11-inch M2 iPad Air.

iPad Air

Enlarge / M2-based iPad Airs come out next week.

Apple

Apple today announced the first 13-inch iPad Air. The company is also releasing a revamped 11-inch iPad Air next week, meaning the tablet will be available in two sizes for the first time.

The 13-inch iPad Air has 30 percent more screen real estate than its smaller counterpart, so Apple is marketing it as being for multitasking and applications like iPadOS’ Split View. During its Let Loose event today, Apple said it decided to release a 13-inch iPad Air because more than half of iPad Pro users opt for the larger (12.9 inches versus 11 inches) size.

The 11-inch versus the 13-inch iPad Air.

Enlarge / The 11-inch versus the 13-inch iPad Air.

Apple

In addition to a larger screen, the 13-inch iPad Air will offer better sound quality than the 11-inch version, Apple says, due to it offering twice the bass. Both tablets have landscape stereo speakers and Spatial Audio support.

Both iPad Airs will come with an M2 chip that Apple claimed will give the devices 15 percent faster CPU performance, 25 percent faster GPU performance, and a 40 percent faster neural engine. With improved memory bandwidth as well, the new iPad Airs will be 50 percent faster than M1-based predecessors, Apple says.

Apple also says the new chip will make the tablets more appropriate for AI-based tasks, like visual look-up, subject lift, and live text capture.

The new Airs will also have a front-facing, ultrawide 12MP camera that supports Apple’s Center Stage feature for keeping users in a central field of view during video calls. Apple moved the camera positioning to one of the tablet’s longer edges to appeal to the way people tend to use tablets for video calls.

The new iPad Air cameras support 4K video and 240-fps slo-mo.

Enlarge / The new iPad Air cameras support 4K video and 240-fps slo-mo.

Apple

Apple’s new thin tablets will come in four colors.

Apple's new iPad Airs in blue, purple, starlight, and space gray.

Enlarge / Apple’s new iPad Airs in blue, purple, starlight, and space gray.

Apple

The 13-inch iPad Air will start at $799 with 128GB of storage, and the 11-inch iPad Air will start at $599, with storage going up to 1TB. The tablets will be available starting May 15.

Listing image by Apple

Apple’s first 13-inch iPad Air debuts at $799 next week Read More »

what-to-expect-from-apple’s-may-7-“let-loose”-event

What to expect from Apple’s May 7 “Let loose” event

A colorful Apple log with an Apple Pencil inside it, with the copy

Enlarge / The promotional image for Apple’s May 7 event.

Apple

On May 7, Apple will host a product announcement event at 9 am ET. Labeled “Let loose,” we expect it will focus on new iPads and iPad accessories.

We won’t be liveblogging the stream, but you can expect some news coverage as it happens. Below, we’ll go over our educated guesses about why Apple might be doing this.

Why hold an event now?

It’s unusual for Apple to host an event shortly before WWDC. New products debut at that event all the time, so if it’s just a faster chip and a nicer screen for the iPad Pro and iPad Air, why not wait until June?

We’re not completely sure what the answer is, but we can make educated guesses.

Apple has been criticized by commentators over the past few weeks for three things. First, iPads have not been selling well. Second: While the Vision Pro introduced a new product category that may grow over time, its initial launch didn’t sell that well. Lastly, Apple is perceived by many as way, way behind on generative AI tech, which is already transforming other companies. There have also been rumors that Microsoft might announce a new silicon that will be fiercely competitive with Apple Silicon for AI tasks, and Microsoft’s chips could be announced at a planned event between May 7 and the start of WWDC.

Given all that, our best guess is that Apple wants to focus its messaging—and the time window for that messaging—on the right targets without muddying the message by trying to address everything at once.

Talking about the iPad’s challenges while also preempting Microsoft with a new chip announcement could be Apple’s focus for this event. Getting those things out of the way now would allow WWDC and its new operating system announcements to focus heavily on AI, which is the bigger question the company is looking to answer.

What new iPads might look like

Given that an Apple Pencil is in the event’s promotional image—a much more explicit hint than Apple usually provides—there’s no question iPads will be a focus.

As is often the case these days, we have a plethora of leaks, supply chain reports, and, of course, insider reporting at sites like Bloomberg and The Information to give us a rough idea of what to expect from Apple’s new hardware.

iPad Pro

It’s likely that the star of the show will be a significant redesign of the iPad Pro for the 11-inch and 12.9-inch sizes.

Both are rumored to get OLED displays, a huge step up over the LCD display in the current 11-inch iPad Pro. The 12.9-inch iPad Pro has a MiniLED display, which competes directly with OLED in the consumer TV space, so it won’t be as big a leap for that device, but we can still expect better contrast and richer colors.

What to expect from Apple’s May 7 “Let loose” event Read More »

apple’s-q2-2024-earnings-reveal-a-drop-in-iphone,-ipad-sales

Apple’s Q2 2024 earnings reveal a drop in iPhone, iPad sales

Q2 2024 —

Services growth looked rosy as Apple’s hardware revenue in China slowed.

The Apple Park campus in Cupertino, California.

Enlarge / The Apple Park campus in Cupertino, California.

Apple’s earnings report for the second quarter of the company’s 2024 fiscal year showed a slide in hardware sales, especially for the iPhone. Nonetheless, Apple beat analysts’ estimates for the quarter thanks to the company’s rapidly growing services revenue.

iPhone revenue dropped from $51.33 billion in the same quarter last year to $45.96 billion, a fall of about 10 percent. This was the second consecutive quarter with declining iPhone revenues. That said, investors feared a sharp drop before the earnings call.

Notably, Apple’s revenue in the region it dubs Greater China (which includes China, Taiwan, Singapore, and Hong Kong) fell 8 percent overall. The company fared a little better in other regions. China’s economy is slowing even as China-based Huawei is taking bigger slices of the pie in the region.

Globally, Mac revenue was $7.5 billion compared to last year’s $7.12 billion. Other products—which include the Watch, AirPods, Apple TV 4K, HomePod, and the new Vision Pro headset—were down to $7.9 billion from last year’s $8.76 billion, despite the fact this quarter included the launch of the Vision Pro.

iPad revenue was also down, at $5.6 billion from $6.67 billion. Apple is expected to launch new iPads next week, which suggests that those updates are needed to achieve the company’s business goals.

The rosiest revenue category was services, which includes everything from Apple Music to iCloud. Its revenue was $23.9 billion, up from Q2 2023’s $20.91 billion.

The company also announced authorization of $110 billion for share purchases.

Apple’s Q2 2024 earnings reveal a drop in iPhone, iPad sales Read More »

apple-deal-could-have-been-“suicide”-for-google,-company-lawyer-says

Apple deal could have been “suicide” for Google, company lawyer says

Woulda coulda shoulda? —

Judge: What should Google have done to avoid the DOJ’s crosshairs?

John Schmidtlein, partner at Williams & Connolly LLP and lead litigator for Alphabet Inc.'s Google, arrives to federal court in Washington, DC, US, on Monday, Oct. 2, 2023.

Enlarge / John Schmidtlein, partner at Williams & Connolly LLP and lead litigator for Alphabet Inc.’s Google, arrives to federal court in Washington, DC, US, on Monday, Oct. 2, 2023.

Halfway through the first day of closing arguments in the Department of Justice’s big antitrust trial against Google, US District Judge Amit Mehta posed the question that likely many Google users have pondered over years of DOJ claims that Google’s market dominance has harmed users.

“What should Google have done to remain outside the crosshairs of the DOJ?” Mehta asked plaintiffs halfway through the first of two full days of closing arguments.

According to the DOJ and state attorneys general suing, Google has diminished search quality everywhere online, primarily by locking rivals out of default positions on devices and in browsers. By paying billions for default placements that the government has argued allowed Google to hoard traffic and profits, Google allegedly made it nearly impossible for rivals to secure enough traffic to compete, ultimately decreasing competition and innovation in search by limiting the number of viable search engines in the market.

The DOJ’s lead litigator, Kenneth Dintzer, told Mehta that what Google should have done was acknowledge that the search giant had an enormous market share and consider its duties more carefully under antitrust law. Instead, Dintzer alleged, Google chose the route of “hiding” and “destroying documents” because it was aware of conflicts with antitrust law.

“What should Google have done?” Dintzer told Mehta. “They should have recognized that by demanding locking down every default that they were opening themselves up to a challenge on the conduct.”

The most controversial default agreement that Google has made is a 21-year deal with Apple that Mehta has described as the “heart” of the government’s case against Google. During the trial, a witness accidentally blurted out Google’s carefully guarded secret of just how highly it values the Apple deal, revealing that Google pays 36 percent of its search advertising revenue from Safari just to remain the default search tool in Apple’s browser. In 2022 alone, trial documents revealed that Google paid Apple $20 billion for the deal, Bloomberg reported.

That’s in stark contrast to the 12 percent of revenue that Android manufacturers get from their default deals with Google. The government wants the court to consider all these default deals to be anti-competitive, with Dintzer suggesting during closing arguments that they are the “centerpiece” of “a lot” of Google’s exclusionary behavior that ultimately allowed Google to become the best search engine today—by “capturing the default and preventing rivals from getting access to those defaults.”

Google’s lawyers have argued that Google succeeds on its merits. Today, lead litigator John Schmidtlein repeatedly pointed out that antitrust law is designed to protect the competitive process, not specific competitors who fail to invest and innovate—as Microsoft did by failing to recognize how crucial mobile search would become.

“Merely getting advantages by winning on quality, they may have an effect on a rival, but the question is, does it have an anti-competitive effect?” Schmidtlein argued, noting that the DOJ hadn’t “shown that absent the agreements, Microsoft would have toppled Google.”

But Dintzer argued that “a mistake by one rival doesn’t mean that Google gets to monopolize this market forever.” When asked to explain why everyone—including some of Google’s rivals—testified that Google won contracts purely because it was the best search engine, Dintzer warned Mehta that the fact that Google’s rivals “may be happy cashing Google’s checks doesn’t tell us anything.”

According to Schmidtlein, Google could have crossed the line with the Apple deal, but it didn’t.

“Google didn’t go on to say to Apple, if you don’t make us the default, no Google search on Apple devices at all,” Schmidtlein argued. “That would be suicide for Google.”

It’s still unclear how Mehta may be leaning in this case, interrogating both sides with care and making it clear that he expects all his biggest questions to be answered after closing arguments conclude Friday evening.

But Mehta did suggest at one point today that it seemed potentially “impossible” for anyone to compete with Google for default placements.

“How would anybody be able to spend billions and billions of dollars to possibly dislodge Google?” Mehta asked. “Is there any real competition for the default spot?”

According to Schmidtlein, that is precisely what “competition on the merits” looks like.

“Google is winning because it’s better, and Apple is deciding Google is better for users,” Schmidtlein argued. “The antitrust laws are not designed to ensure a competitive market. They’re designed to ensure a competitive process.”

Proving the potential anti-competitive effects of Google’s default agreements, particularly the Apple deal, has long been regarded as the most critical point in order to win the government’s case. So it’s no surprise that the attorney representing state attorneys general, Bill Cavanaugh, praised Mehta for asking, “What should Google have done?” According to Cavanaugh, that was the “right question” to pose in this trial.

“What should they have done 10 years ago when there was a recognition” that “we’re monopolists” and “we have substantial control in markets” is ask, “How should we proceed with our contracts?” Cavanaugh argued. “That’s the question that they answered, but they answered it in the wrong way.”

Seemingly if Google’s default contracts posed fewer exclusionary concerns, the government seems to be arguing, there would be more competition and therefore more investment and innovation in search. But as long as Google controls the general search market, the government alleged that users won’t be able to search the web the way that they want.

Google is hoping that Mehta will reject the government’s theories and instead rule that Google has done nothing to stop rivals from improving the search landscape. Early in the day, Mehta told the DOJ that he was “struggling to see” how Google has either stopped innovating or degraded its search engine as a result of lack of competition.

Closing arguments continue on Friday. Mehta is not expected to rule until late summer or early fall.

Apple deal could have been “suicide” for Google, company lawyer says Read More »