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Microsoft

Ten Years Ago Microsoft Bought Nokia's Phone Unit, Then Killed It As a Tax Write-Off (theregister.com) 64

The Register provides a retrospective look at how Microsoft "absorbed the handset division of Nokia" ten years ago, only to kill the unit two years later and write it off as a tax loss. What went wrong? "It was a fatal combination of bad management, a market evolving in ways hidebound people didn't predict, and some really (with a few superb exceptions) terrible products," reports The Register. From the report: Like Nokia, Windows Mobile's popularity peaked in 2007, then started to drop away. The iPhone was the tech item of choice for fashionistas, Blackberry was seen as essential for serious business, and Android -- with Google as its new owner -- was gaining traction. Microsoft by that time had a new CEO in Steve Ballmer, who completely and famously failed to see the shifting sands in the mobile market. He dismissed the iPhone as a threat to what he thought was Windows Mobile's unassailable market position, and was roundly mocked for it. So the scene was set for a mobile standards war, and Steve Ballmer staked his professional pride on winning it. Microsoft recruited Nokia to help out. [...]

Under [Executive VP of Microsoft Stephen Elop's] leadership, a closer working relationship with Microsoft was a given -- but in 2013 Redmond announced it was going the whole hog and buying Nokia's handset business outright for $7.2 billion. The deal was done in April 2014, a decade ago from today. Microsoft also got a ten-year license on Nokia's patents and the option to renew in perpetuity. It also got Elop back, as executive vice president of the Microsoft Devices Group. That meant stepping down as CEO of Nokia, for which he trousered an 18.8 million bonus package -- a payoff the Finnish prime minister at the time called "outrageous." Nokia retained its networking business in Finland. It purchased Siemens' half of the Nokia Siemens Networks joint venture and renamed in Nokia Networks. The Nokia board rolled the dice again on hiring another non-Suomi manager, Rajeev Suri, and this time hit a double D20 in D&D terms.

When Ballmer stepped down from the helm at Microsoft in 2014 -- shortly before the Nokia deal completion -- he left a hot mess to deal with. His plan had been to develop the mobile operating system in conjunction with Windows 10, and Windows Mobile 10 was supposed to be a part of a unified code environment. While Windows 10 on the desktop wasn't a bad operating system, Windows Mobile 10 really was. The promised synergy just didn't happen -- it was power-hungry, clunky, and about as popular as a rattlesnake in a pinata. It was this mess that Satya Nadella faced when he took over the reins. Nadella was never very keen on the phone platform and spent more time in press conferences talking about cricket or the cloud than Microsoft's mobile ambitions. It was clear to all that this really wasn't working. Elop was laid off by Redmond a year later.

It was clear that Windows Mobile wasn't going to work. Android and iOS were drinking Microsoft's milkshake, and Redmond realized the game was up. Microsoft started shedding mobile jobs -- both in Finland and Redmond. While mobile was still publicly touted as the way forward for Microsoft with Ballmer gone, the impetus wasn't there and support for the mobile OS shriveled. In 2015 Microsoft declared it was writing off $7.6 billion on the Phone Hardware division as "goodwill and asset impairment charges" -- $400 million more than it had originally paid for the Finnish firm. Nokia bought European networking giant Alcatel-Lucent in a $16.7 billion deal in 2015. Around the same time, Suri announced a move into tablets, since it had a non-compete agreement with Microsoft on mobiles. Meanwhile a bunch of former Nokia execs who'd fled Elop and Microsoft had started a mobile biz of their own: HMD. It was Finnish, but outsourced production to Foxconn in China, and was planning to make cheapish Android devices. In 2016 Microsoft sold its mobile hardware arm to HMD for an undisclosed -- but probably not large -- sum. Nadella clearly wanted out of the whole business and the Finnish startup concentrated on selling good-enough Android smartphones to Nokia's traditional cheap markets.

Iphone

Apple's iPhone Spyware Problem Is Getting Worse (wired.com) 43

An anonymous reader quotes a report from Wired: In April, Apple sent notifications to iPhone users in 92 countries, warning them they'd been targeted with spyware. "Apple detected that you are being targeted by a mercenary spyware attack that is trying to remotely compromise the iPhone associated with your Apple ID," the notification reads. Users quickly took to social media sites including X, trying to work out what the notification meant. Many of those targeted were based inIndia, but others in Europe also reported receiving Apple's warning. Weeks later, little is still known about the latest iPhone attacks. Former smartphone giant Blackberry, now a security firm, has released research indicating they are linked to a Chinese spyware campaign dubbed "LightSpy," but Apple spokesperson Shane Bauer says this is inaccurate.

While Apple says the latest spyware notifications aren't linked to LightSpy, the spyware remains a growing threat, particularly to people who may be targeted in Southern Asia, according to Blackberry's researchers. Described as a "sophisticated iOS implant," LightSpy first emerged targeting Hong Kong protesters in 2020. However, the latest iteration is much more capable than the first. "It is a fully-featured modular surveillance toolset that primarily focuses on exfiltrating victims' private information, including hyper-specific location data and sound recording during voice over IP calls," the researchers wrote. April's warnings were not the first time Apple has issued notifications of this kind. The iPhone maker has sent out alerts to people in over 150 countries since 2021 as spyware continues to target high-profile figures across the globe.

Spyware can be weaponized by nation-state adversaries -- but this is relatively rare and expensive. Its deployment is typically highly targeted against a very specific group of people, including journalists, political dissidents, government workers, and businesses in certain sectors. "Such attacks are vastly more complex than regular cybercriminal activity and consumer malware, as mercenary spyware attackers apply exceptional resources to target a very small number of specific individuals and their devices," Apple wrote in an advisory in April. "Mercenary spyware attacks cost millions of dollars and often have a short shelf life, making them much harder to detect and prevent. The vast majority of users will never be targeted by such attacks." Plus, Apple says its Lockdown Mode feature can successfully protect against attacks. "As we have said before, we are not aware of anyone using Lockdown Mode being successfully attacked with mercenary spyware," Bauer says. Still, for those who are targeted and caught unaware, spyware is extremely dangerous.
There are a number of ways to protect yourself against spyware and zero-click exploits in particular:

1. Regularly Update Devices: Keep your devices updated to the latest software to protect against known vulnerabilities.
2. Restart Devices Daily: Regularly restarting your device can help disrupt persistent spyware infections by forcing attackers to reinfect the device, potentially increasing their chances of detection.
3. Disable Vulnerable Features: Consider disabling features prone to exploits, such as iMessage and FaceTime, especially if you suspect you're a target for spyware.
4. Use Multifactor Authentication and Secure Sources: Employ multifactor authentication and only install apps from verified sources to prevent unauthorized access and downloads.
5. Monitor for Indicators: Be vigilant for signs of infection such as battery drain, unexpected shutdowns, and high data usage, though these may not always be present with more sophisticated spyware.
6. Seek Professional Help: If you suspect a spyware infection, consider professional assistance or helplines like Access Now's Digital Security Helpline for guidance on removal.
7. Utilize Advanced Security Features: Activate security features like Apple's Lockdown Mode, which limits device functionality to reduce vulnerabilities, thus safeguarding against infections.
Technology

'The Good Enough Trap' (ian-leslie.com) 70

An anonymous reader shares an essay: Software designers refer to "the good enough principle." It means, simply put, that sometimes you should prioritise functionality over perfection. As a relentless imperfectionist, I'm inclined to embrace this idea. I gave this newsletter its name to encourage myself to post rough versions of my pieces rather than not to write them at all. When it comes to parenting, I'm a Winnicottian: I believe you shouldn't try to be the perfect mum or dad because there's no such thing. At work and in life, it's often true that the optimal strategy is not to strive for the optimal result, but to aim for what works and hope for the best.

The good enough can be a staging post to the perfect. The iPhone's camera was a "good enough" substitute for a compact camera. It did the job, but it wasn't as good as a Kodak or a Fuji. Until it was. Technological innovation often works like this, but the improvement curve isn't always as steep as with the smartphone camera. Sometimes we allow ourselves to get stuck with a product which is good enough to displace the competition, without fulfilling the same range of needs. The psychological and social ramifications can be profound.

Let's say you're a student and you use ChatGPT to write your essays for you. Give it the right prompts and it will produce pieces that are good enough to get the grade you need. That seems like a win: it saves you time and effort, presuming your tutors don't notice or don't care. Maybe you get through the whole of university this way. But be wary of this equilibrium. Over the longer term, you will be stunting the growth of your own mind. The struggle of turning inchoate thought into readable sentences and paragraphs is a powerful exercise for the brain. It's how you get better at thinking. It is thinking.

Iphone

Apple Announces Largest-Ever $110 Billion Share Buyback As iPhone Sales Drop (cnbc.com) 39

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.

AI

AI Engineers Report Burnout, Rushed Rollouts As 'Rat Race' To Stay Competitive Hits Tech Industry (cnbc.com) 36

An anonymous reader quotes a report from CNBC: Late last year, an artificial intelligence engineer at Amazon was wrapping up the work week and getting ready to spend time with some friends visiting from out of town. Then, a Slack message popped up. He suddenly had a deadline to deliver a project by 6 a.m. on Monday. There went the weekend. The AI engineer bailed on his friends, who had traveled from the East Coast to the Seattle area. Instead, he worked day and night to finish the job. But it was all for nothing. The project was ultimately "deprioritized," the engineer told CNBC. He said it was a familiar result. AI specialists, he said, commonly sprint to build new features that are often suddenly shelved in favor of a hectic pivot to another AI project.

The engineer, who requested anonymity out of fear of retaliation, said he had to write thousands of lines of code for new AI features in an environment with zero testing for mistakes. Since code can break if the required tests are postponed, the Amazon engineer recalled periods when team members would have to call one another in the middle of the night to fix aspects of the AI feature's software. AI workers at other Big Tech companies, including Google and Microsoft, told CNBC about the pressure they are similarly under to roll out tools at breakneck speeds due to the internal fear of falling behind the competition in a technology that, according to Nvidia CEO Jensen Huang, is having its "iPhone moment."

Google

Google Defends 'Better' Search Product as Antitrust Trial Concludes (ft.com) 31

Google is making its last attempt to fight back against a historic effort by the US Department of Justice to break the tech giant's grip on online search, as the most significant antitrust trial in 25 years comes to a close in Washington. From a report: A federal court in Washington began hearing closing arguments on Thursday after a 10-week trial in which the DoJ accused Alphabet, the parent company of Google, of suppressing search rivals by paying tens of billions annually for anti-competitive agreements with wireless carriers, browser developers and device manufacturers. During the hearing on Thursday, John Schmidtlein, a lawyer from Williams & Connolly representing Google, sought to push back on claims that it had hindered rivals' efforts to gain a foothold in online search, and argued that users had plenty of alternatives.

Unsealed court documents revealed this week that Alphabet paid Apple $20bn in 2022 alone to be the default search engine for its iPhone and Safari browser on its other devices. "Google winning agreements because it has a better product is not a harm to the competitive process, even if it gives it scale to improve its product," Schmidtlein told the court. A lawyer for the government, Kenneth Dintzer, told the court that Google's "anti-competitive conduct harms competition and is self perpetuating." Defaults "are a powerful way to drive searches, otherwise Google wouldn't pay billions of dollars for them," he added.

Amit Mehta, the judge hearing the case, noted that search "today looks a lot different than it didâ 10 to 15 years ago. He pushed back on the DoJ's contention that the quality of search had suffered due to the lack of competition, although he also noted that only two "substantial competitors" had entered the search market in the past decade. "Doesn't that tell us all we need to know in terms of barriers of entry," he asked.

Businesses

Apple Adds More Carve-outs To Its EU Core Tech Fee After Criticism From Devs (techcrunch.com) 13

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.

Google

Google's Payments To Apple Reached $20 Billion in 2022, Antitrust Court Documents Show (yahoo.com) 27

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.

AI

Anthropic Brings Claude AI To the iPhone and iPad (9to5mac.com) 16

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.

Facebook

Tens of Millions Secretly Use WhatsApp Despite Bans, Company Says 25

"Tens of millions" of people are using technical workarounds to secretly access WhatsApp in countries where it is banned, the messaging platform's boss has said. From a report: "You'd be surprised how many people have figured it out," Will Cathcart told BBC News. Like many Western apps, WhatsApp is banned in Iran and North Korea and, intermittently, in Syria. And last month, China joined the list of those banning users from accessing the secure platform. Other countries, including Qatar, Egypt, Jordan and the United Arab Emirates, restrict features such as voice calls.

But WhatsApp can see where its users truly are, thanks to their registered phone numbers. "We have a lot of anecdotal reports of people using WhatsApp and what we can do is look at some of the countries where we're seeing blocking and still see tens of millions of people connecting to WhatsApp," Mr Cathcart told BBC News. China ordered Apple to block Chinese iPhone users from downloading WhatsApp from the AppStore in April, a move Mr Cathcart calls "unfortunate" -- although the country was never a major market for the app. "That's a choice Apple has made," he said. "There aren't alternatives. I mean, that is really a situation where they've put themselves in the position to be able to truly stop something."
Google

Apple Targets Google Staff To Build AI Team 4

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.
Apple

'The Apple Vision Pro's eBay Prices Are Making Me Sad' 148

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.
Security

Why is South Korea's Military Set To Ban iPhones Over 'Security' Concerns? (appleinsider.com) 50

"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.
AI

How Good is the Rabbit R1 Handheld AI Assistant? (cnet.com) 34

It's another speech-recognizing, AI-powered handheld device "about half the size of a phone," writes CNET. (Though the $199 device comes with a keyboard and a tiny 2.8-inch screen.) "The Rabbit R1 can identify items in its environment. Point it at a plant, and it can tell you what kind it is. Aim it at your lunch, and it can tell you what's in it.

"it also feels a bit like a novelty so far...." It can call an Uber, order dinner from Doordash, translate conversations, record voice memos, play songs from Spotify and more. Your phone can already do all of those things, but [CEO and founder Jesse] Lyu is promoting the Rabbit R1 as a faster and more natural way to do so... So far, the Rabbit R1 feels fun, fresh and interesting, but also frustrating at times. It intrigues me, but it also hasn't convinced me yet that there's room for another gadget in my life.... Many of the things it can do today feel smartphone-esque, like asking for the weather or playing songs on Spotify...

Visual search is the most interesting feature so far... It's pretty accurate for the most part so far. When I pointed it at my salad during lunch, it was able to tell me most of the ingredients. That's not what I asked. After all, who orders a dish without knowing what's in it? I asked the Rabbit R1 to tell me how many calories were in my lunch. While it couldn't provide the answer I wanted, I was impressed with its response... Overall, Rabbit R1's visual analysis worked pretty well for identifying things like plants and characters from pop culture. When describing my colleague's sneakers, the Rabbit R1 got the brand wrong...

So far, I've used the Rabbit R1 to take voice memos, translate speech from Spanish to English, and answer basic questions about things like weather forecasts. These features work as expected for the most part.

The article points out that Ray-Ban Meta Smart Glasses "also have multimodal AI, meaning the eyewear can 'see' what you see and tell you about it," and "you can already do something like this on your phone through Google's Gemini assistant on Android phones (or the Gemini section of the Google app for the iPhone).

"It's also very reminiscent of Google Lens, which has been around for years..."
Apple

Apple ID Lock-Out Affects Macs, iPhones, iPads, and iCloud Services (indiatimes.com) 41

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.

Intel

Intel's Stock Drops 9%. Are They Struggling to Remain Relevant? (cnbc.com) 76

"Intel used to dominate the U.S. chip industry," writes CNBC. But now "it's struggling to stay relevant." Intel's long-awaited turnaround looks farther away than ever after the company reported dismal first-quarter earnings. Investors pushed the shares down 9% on Friday to their lowest level of the year. Although Intel's revenue is no longer shrinking and the company remains the biggest maker of processors that power PCs and laptops, sales in the first quarter trailed estimates. Intel also gave a soft forecast for the second quarter, suggesting weak demand... Intel is the worst-performing tech stock in the S&P 500 this year, down 37%.

Meanwhile, the two best-performing stocks in the index are chipmaker Nvidia and Super Micro Computer, which has been boosted by surging demand for Nvidia-based artificial intelligence servers. Intel, long the most valuable U.S. chipmaker, is now one-sixteenth the size of Nvidia by market cap. It's also smaller than Qualcomm, Broadcom, Texas Instruments, and AMD. For decades, it was the largest semiconductor company in the world by sales, but suffered seven straight quarters of revenue declines recently, and was passed by Nvidia last year.

Intel's problems "are decades in the making," according to CNBC, suggesting that one turning point was Apple's decision not to use Intel's chips in its iPhone. Now nearly every smartphone built uses Arm chips built by Apple and Qualcomm, while Apple's huge orders for TSMC chips "provided the cash to annually upgrade the manufacturing equipment at TSMC, which eventually surpassed Intel." Around 2017, mobile chips from Apple and Qualcomm started adding AI parts to their chips called neural processing units, another advancement over Intel's PC processors. The first Intel-based laptop with an NPU shipped late last year.

Intel has since lost share in its core PC chip business to chips that grew out of the mobile revolution... Apple stopped using Intel in its PCs in 2020. Macs now use Arm-based chips, and some of the first mainstream Windows laptops with Arm-based chips are coming out later this year. Low-cost laptops running Google ChromeOS are increasingly using Arm, too...

AMD made over 20% of server CPUs sold in 2022, and shipments grew 62% that year, according to an estimate from Counterpoint Research last year. AMD surpassed Intel's market cap the same year.

Android

iPhone Activation Market Share Hits New Low as Android Dominates (9to5mac.com) 59

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.

Iphone

iPhone Sales Drop 19% in China (cnbc.com) 67

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.
Apple

Apple Reportedly Stops Production of FineWoven Accessories (macrumors.com) 39

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."

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