Apple reported fiscal second-quarter earnings that topped estimates, despite a 10% drop in iPhone sales. The company also announced that its board had authorized $110 billion in share repurchases, "a 22% increase over last year's $90 billion authorization," notes CNBC. "It's the largest buyback in history, ahead of Apple's previous repurchases." From the report: Apple did not provide formal guidance, but Apple CEO Tim Cook told CNBC's Steve Kovach that overall sales would grow in the "low single digits" during the June quarter. Apple posted $81.8 billion in revenue during the year-ago June quarter and LSEG analysts were looking for a forecast of $83.23 billion. On an earnings call with analysts, Apple finance chief Luca Maestri said the company expected the current quarter will deliver double-digit year-over-year percentage growth in iPad sales. What's more, he said the Services division is forecast to continue growing at about the current high rate it's achieved during the past two quarters.

Apple reported net income of $23.64 billion, or $1.53 per share, down 2% from $24.16 billion, or $1.52 per share, in the year-earlier period. Cook told CNBC that sales in the fiscal second quarter suffered from a difficult comparison to the year-earlier period, when the company realized $5 billion in delayed iPhone 14 sales from Covid-based supply issues. "If you remove that $5 billion from last year's results, we would have grown this quarter on a year-over-year basis," Cook said. "And so that's how we look at it internally from how the company is performing."

Apple said iPhone sales fell nearly 10% to $45.96 billion, suggesting weak demand for the current generation of smartphones, which were released in September. The sales were in line with analyst estimates, and Cook said that without last year's increased sales, iPhone revenue would have been flat. Mac sales were up 4% to $7.45 billion, but they are still below the segment's high-water mark set in 2022. Cook said sales were driven by the company's new MacBook Air models which were released with an upgraded M3 chip in March. Other Products, which is how Apple reports sales of its Apple Watch and AirPods headphones, was down 10% year over year to $7.9 billion.

An anonymous reader shares a column: When Apple CEO Tim Cook and a bunch of his deputies take the virtual stage next week to announce new iPads, they're going to spend a lot of time talking about specs. If the rumors are true, we're going to get new iPad Pros with OLED screens and thinner bodies, new Airs with faster chips and a correctly placed front camera, and a couple of new accessories. Before they even launch, I feel confident telling you these are the best iPads ever. But after all these years, I still don't know how to tell you whether you should want an iPad. Or what you'd want to do with it.

This has been true forever, of course. The iPad is the jack-of-all-trades in Apple's lineup, a terrific device in many ways that still feels increasingly redundant now that so many people have big phones and long-lasting laptops. Apple seems to have spent the last decade-plus enamored with the idea of the iPad as a shapeshifter -- a device that can be exactly what you need at any given time. The company loves that the iPad's use case is hard to pin down, that it means different things to different people. It's a fun, good, ambitious idea: The One Gadget To Rule Them All. The way to make that happen, though, is not to upgrade the chips or move the buttons or redesign the rounded corners. It's to focus less on the iPad itself and more on the things you attach to it.

[...] The iPad is a screen and a processor, and everything else should be an add-on for whenever you need it. Give the gamers a controller and an external GPU. Give the music lovers a speaker dock, and give the smart home fanatics a bunch of buttons that connect to various devices. The photographers need lenses; the spreadsheeters need a keyboard with function keys. The Pencil and the Magic Keyboard are a start, but Apple needs to do much more. The company needs to spend less time worrying about the iPad itself -- a device famous for how long it lasts and that hardly anyone is using to its full potential -- and more time on how to make it more than just a tablet. (Plus, bonus for Apple: it's going to be a lot easier to get people to buy accessories than to convince them to upgrade their iPad when they don't need to.)

Apple is tweaking how it applies a new fee that can apply to iOS developers in the European Union as it continues to configure its approach to the bloc's Digital Markets Act (DMA): Developers of free apps will be able to avoid the fee entirely under changes it announced Thursday, which apply from today, while other developers earning under a certain revenue threshold will get longer before they have to pay Apple the fee. From a report: The so-called "core technology fee" remains opt in for iOS developers in the region, as Apple continues to offer its standard business terms, but those wanting to take up new entitlements the DMA has required Apple to offer -- such as allowing sideloading of apps, third party app stores, and support for alternative payment tech than Apple's own -- must agree to the set of business terms that include the CTF (as Apple calls it).

The fee remains under scrutiny in the region where the Commission, which enforces the DMA on Apple and other gatekeepers -- and opened its first investigations including on Apple in March -- is actively exploring whether the mechanism is enabling the iPhone maker to avoid its obligations to open up the App Store to competition, such as from third party app stores. But so far the EU hasn't prevented Apple from charging a fee.

Alphabet paid Apple $20 billion in 2022 for Google to be the default search engine in the Safari browser, according to newly unsealed court documents in the Justice Department's antitrust lawsuit against Google. From a report: The deal between the two tech giants is at the heart of the landmark case, in which antitrust enforcers allege Google has illegally monopolized the market for online search and related advertising. The Justice Department and Google will offer closing arguments in the case Thursday and Friday, with a decision expected later this year.

Google and Apple had hoped to shield the payment amount from public disclosure. At the trial last fall, Apple executives testified that Google paid "billions," without specifying a number. A Google witness later accidentally disclosed that Google pays 36% of the revenue it earns from search ads to Apple. Court documents filed late Tuesday ahead of the closing arguments mark the first public confirmation of the figures by Apple's senior vice president of services, Eddy Cue. Such numbers aren't disclosed by either company in their securities filings. The documents also revealed the importance of the payments to Apple's bottom line. For instance, in 2020, Google's payments to Apple constituted 17.5% of the iPhone maker's operating income.

Anthropic has released its Claude AI chatbot on the App Store, bringing the company's ChatGPT competitor to the masses. Compared to OpenAI's chatbot, Claude is built with a focus on reducing harmful outputs and promoting safety, with a goal of making interactions more reliable and ethically aware. You can give it a try here. 9to5Mac reports: Anthropic highlights three launch features for Claude on iPhone:

Seamless syncing with web chats: Pick up where you left off across devices.
Vision capabilities: Use photos from your library, take new photos, or upload files so you can have real-time image analysis, contextual understanding, and mobile-centric use cases on the go.
Open access: Users across all plans, including Pro and Team, can download the app free of charge.

The app is also capable of analyzing things that you show it like objects, images, and your environment.

Apple has confirmed reports [video link] of a software glitch causing some iPhone alarms to fail to play a sound.

Apple has poached dozens of AI experts from Google and has created a secretive European laboratory in Zurich, as the tech giant builds a team to battle rivals in developing new AI models and products. From a report: According to a Financial Times analysis of hundreds of LinkedIn profiles as well as public job postings and research papers, the $2.7tn company has undertaken a hiring spree over recent years to expand its global AI and machine learning team. The iPhone maker has particularly targeted workers from Google, attracting at least 36 specialists from its rival since it poached John Giannandrea to be its top AI executive in 2018.

While the majority of Apple's AI team work from offices in California and Seattle, the tech group has also expanded a significant outpost in Zurich. Professor Luc Van Gool from Swiss university ETH Zurich said Apple's acquisitions of two local AI start-ups -- virtual reality group FaceShift and image recognition company Fashwell -- led Apple to build a research laboratory, known as its "Vision Lab," in the city.

As reported by Bloomberg (paywalled), Apple's iPadOS will need to abide by EU's DMA rules, as it is now designated as a gatekeeper alongside the Safari web browser, iOS operating system and the App Store. "Apple now has six months to ensure full compliance of iPadOS with the DMA obligations," reads the EU's blog post about the change. Engadget reports: What does Apple have to do to ensure iPadOS compliance? According to the DMA, gatekeepers are prohibited from favoring their own services over rivals and from locking users into the ecosystem. The software must also allow third parties to interoperate with internal services, which is why third-party app stores are becoming a thing on iPhones in Europe. The iPad, presumably, will soon follow suit. In other words, the DMA is lobbing some serious stink bombs into Apple's walled garden. In a statement published by Forbes, Apple said it "will continue to constructively engage with the European Commission" to ensure its designated services comply with the DMA, including iPadOS. "iPadOS constitutes an important gateway on which many companies rely to reach their customers," wrote Margrethe Vestager, Executive Vice-President in charge of competition policy at the European Commission. "Today's decision will ensure that fairness and contestability are preserved also on this platform."

An anonymous reader shares a report: I paid a lot of money for the privilege of getting an Apple Vision Pro brand-new in February. All-in, with optical inserts and taxes, I financed a little over $3,900 for the 256GB version of the headset. A day or so ago, I made a mistake that I'm sure many early adopters are familiar with: I looked up how much it's been selling for on eBay. On Wednesday, a 1TB Vision Pro, complete with all the included gear, Apple's fluffy $200 travel case, $500 AppleCare Plus, and claimed to have been "worn maybe about an hour" sold for $3,200 after 21 bids. The listed shipping estimate was $20.30. Brand new, that combination is $5,007.03 on Apple's site for me.

Another eBay listing, this one with my headset's configuration (but sans optical inserts) went for just $2,600 -- again with most, if not all, of the included accessories. Several other 256GB and 512GB models sold for around that amount this week. The story is no different over on Swappa, a popular reselling site among Apple users. Bloomberg News, over the weekend: In related news, employees at some Apple retail stores are now being asked to fill out surveys after giving Vision Pro demonstrations to potential buyers. Apple wants to know if they were able to close a sale and get any feedback from the would-be buyer. Apple also wants to ensure employees are following the 20-minute demo script.

As I wrote last week, Vision Pro demand has dropped considerably at many Apple stores. One retail employee says they haven't seen one Vision Pro purchase in weeks and that the number of returns equaled the device's sales in the first month that it was available.

"South Korea is considering prohibiting the use of iPhones and smart wearable devices inside military buildings," reports the Defense Post, "due to increasing security concerns."

But the blog Apple Insider argues the move "has less to do with security and more to do with a poorly crafted mobile device management suite coupled with nationalism..." A report on Tuesday morning claims that the ban is on all devices capable of voice recording and do not allow third-party apps to lock this down — with iPhone specifically named... According to sources familiar with the matter cited by Tuesday's report, the iPhone is explicitly banned. Android-based devices, like Samsung's, are exempt from the ban...

The issue appears to be that the South Korean National Defense Mobile Security mobile device management app doesn't seem to be able to block the use of the microphone. This particular MDM was rolled out in 2013, with use enforced across all military members in 2021.

The report talks about user complaints about the software, and inconsistent limitations depending on make, model, and operating system. A military official speaking to the publication says that deficiencies on Android would be addressed in a software update. Discussions are apparently underway to extend the total ban downwards to the entire military. The Army is said to have tried the ban as well...

Seven in 10 South Korean military members are Samsung users. So, the ban appears to be mostly symbolic.
Thanks to Slashdot reader Kitkoan for sharing the news.

An anonymous reader shared this report from the Times of India: Several Apple customers were inexplicably locked out of their Apple ID accounts Friday evening in a major service disruption, forcing them to reset their passwords across all devices and services. According to user reports on social media, the widespread outage began around 8 p.m. ET. People complained that they were abruptly signed out of their Apple IDs on Macs, iPhones, iPads, and other Apple devices.

When attempting to sign back in with their existing passwords, they received an error message preventing access... To regain access, users had to go through Apple's account recovery process to reset their Apple ID passwords. However, many reported difficulties even completing the reset process initially due to high demand...

The outage affected iCloud services like iCloud Drive, iMessage, FaceTime, and the App Store. Third-party apps and services that integrate with Apple ID sign-in were also disrupted for those impacted.

404 Media: Apple has removed a number of AI image generation apps from the App Store after 404 Media found these apps advertised the ability to create nonconsensual nude images, a sign that app store operators are starting to take more action against these types of apps.

Overall, Apple removed three apps from the App Store, but only after we provided the company with links to the specific apps and their related ads, indicating the company was not able to find the apps that violated its policy itself.

Apple's action comes after we reported on Monday that Instagram advertises nonconsensual AI nude apps. By browsing Meta's Ad Library, which archives ads on its platform, when they ran, on what platforms, and who paid for them, we were able to find ads for five different apps, each with dozens of ads. Two of the ads were for web-based services, and three were for apps on the Apple App Store. Meta deleted the ads when we flagged them. Apple did not initially respond to a request for comment on that story, but reached out to me after it was published asking for more information. On Tuesday, Apple told us it removed the three apps on its App Store.

An anonymous reader shares a report: Consumer Intelligence Research Partners is out with a report on how iPhone activations compare to Android in the US. The latest data shows a notable drop over the last year bringing Apple's US smartphone market share of new activations back in time six years. CIRP shared its new iPhone report on its Substack this morning. The firm notes that while it believes Apple's installed smartphone base is higher than the recent share of US smartphone activations, the latter has taken a dive.

As shown below, the metric peaked at 40% for Q1 and Q2 in 2023 with Apple seeing a decline to 33% of new smartphone activations in the US as of Q1 2024, says CIRP. That means 2 out of 3 new smartphone activations in the US are Android devices. Per CIRP's data, Apple hasn't seen numbers that low since 2017.

Apple has rejected Spotify's new version of its iOS app with in-app pricing information for users in the European Union, the audio streaming firm said on Thursday. Reuters: The Swedish company submitted a new version of its app to Apple with basic pricing and website information, which is a minimum requirement under the European Commission's ruling in its music streaming case, it said in a post on X on Wednesday. Spotify said the Cupertino, California based-Apple rejected its update in a response directly sent to the company.

"Apple has once again defied the European Commission's decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax. Their disregard for consumers and developers is matched only by their disdain for the law," a spokesperson for Spotify said in a statement. In March, Brussels fined Apple with 1.84 billion euros ($1.97 billion) for thwarting competition from music streaming rivals via restrictions on its App Store, marking its first ever EU antitrust penalty, following a 2019 complaint from Spotify.

Hartley Charlton reports via MacRumors: Apple is said to be developing its own AI server processor using TSMC's 3nm process, targeting mass production by the second half of 2025. According to a post by the Weibo user known as "Phone Chip Expert," Apple has ambitious plans to design its own artificial intelligence server processor. The user, who claims to have 25 years of experience in the integrated circuit industry, including work on Intel's Pentium processors, suggests this processor will be manufactured using TSMC's 3nm node.

Apple's purported move toward developing a specialist AI server processor is reflective of the company's ongoing strategy to vertically integrate its supply chain. By designing its own server chips, Apple can tailor hardware specifically to its software needs, potentially leading to more powerful and efficient technologies. Apple could use its own AI processors to enhance the performance of its data centers and future AI tools that rely on the cloud. While Apple is rumored to be prioritizing on-device processing for many of its upcoming AI tools, it is inevitable that some operations will have to occur in the cloud. By the time the custom processor could be integrated into operational servers in late 2025, Apple's new AI strategy should be well underway.

Just as Google, Samsung and Microsoft continue to push their efforts with generative AI on PCs and mobile devices, Apple is moving to join the party with OpenELM, a new family of open source large language models (LLMs) that can run entirely on a single device rather than having to connect to cloud servers. From a report: Released a few hours ago on AI code community Hugging Face, OpenELM consists of small models designed to perform efficiently at text generation tasks. There are eight OpenELM models in total -- four pre-trained and four instruction-tuned -- covering different parameter sizes between 270 million and 3 billion parameters (referring to the connections between artificial neurons in an LLM, and more parameters typically denote greater performance and more capabilities, though not always).

[...] Apple is offering the weights of its OpenELM models under what it deems a "sample code license," along with different checkpoints from training, stats on how the models perform as well as instructions for pre-training, evaluation, instruction tuning and parameter-efficient fine tuning. The sample code license does not prohibit commercial usage or modification, only mandating that "if you redistribute the Apple Software in its entirety and without modifications, you must retain this notice and the following text and disclaimers in all such redistributions of the Apple Software." The company further notes that the models "are made available without any safety guarantees. Consequently, there exists the possibility of these models producing outputs that are inaccurate, harmful, biased, or objectionable in response to user prompts."

Apple's iPhone sales dropped sharply in China in the first quarter of this year as the company saw strong competition from domestic brand Huawei, according to a new report from market research firm Counterpoint Research. CNBC: Apple saw sales of its iPhones fall 19.1% in the first three months of the year, Counterpoint's data showed, as Chinese telecommunications and consumer electronics giant Huawei saw a resurgence in its smartphone business. The Shenzhen, China-based firm saw sales of its smartphones surge a whopping 69.7% in the first quarter, Counterpoint said.

An anonymous reader shares a report: Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo. Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has "fallen sharply beyond expectations."

As a result, Apple is expected to take a "conservative view" of headset demand when the Vision Pro launches in additional countries. Kuo previously said that Apple will introduce the Vision Pro in new markets before the June Worldwide Developers Conference, which suggests that we could see it available in additional areas in the next month or so.

According to French business magazine Challenges, Apple has acquired Datakalab -- a Paris-based startup specializing in artificial intelligence compression and computer vision technology. 9to5Mac reports: Datakalab described itself as "experts in low power, runtime efficient, and deep learning algorithms" that work on device. On its LinkedIn page, Datakalab highlights "industry leading compression and adaptation to deploy embedded computer vision that is fast, cost-effective and precise." Prior to the Apple acquisition had between 10 and 20 employees.

From Datakalab's now-defunct website: "Datakalab is a French technology company that develops computer image analysis algorithms to measure flows in public space. The images are instantly transformed into anonymized statistical data processed locally in 100ms. Datakalab does not store any images or personal data and only keeps statistical data. Datakalab products are built according to the principle of 'Privacy by Design.'"

While neither Apple nor DatakaLab have acknowledged the acquisition, Challenges says that the deal was reported to the European Commission this month. The report says that Datakalab's two founders did not join Apple, but multiple other employees did make the jump. Datakalab also held multiple patents related to AI compression and vision technology. The acquisition makes perfect sense given Apple's rumored ambitions to run its upcoming AI-related features in iOS 18 "entirely on device."

Apple has stopped production of FineWoven accessories, according to reliable Apple leaker and prototype collector known as "Kosutami." From a report: In a post on X (formerly Twitter), Kosutami explained that Apple has stopped production of FineWoven accessories due to its poor durability. The company may move to another non-leather material for its premium accessories in the future. Apple introduced FineWoven, a soft fabric material, last year. The company claimed that the material is made of 68 percent post-consumer content and is overall more environmentally friendly compared to the company's previous line of leather accessories. As part of the introduction of FineWoven case, Apple also discontinued the use of leather for new Apple accessories. Reviewers didn't like FineWoven, calling it "bad. Like, really bad."