Apple Inc on Monday held one of its regular product showcases, but this time, the products did not take center stage.
Before the Silicon Valley giant unveiled modest upgrades to its device lineup, Apple chief executive officer Tim Cook defended the company’s stance in its fight with the US federal government over the encryption on iPhones.
The case had been expected to head to a court hearing today, but the US Department of Justice on Monday moved abruptly to cancel the hearing, saying it might not need Apple’s help to break into the phone used by a shooter in last year’s San Bernardino, California, mass shooting.
Photo: Bloomberg
In a news conference at Apple’s Cupertino, California, headquarters, Cook said the company would stand fast.
“We need to decide, as a nation, how much power the government should have over our data and over our privacy,” he said. “This is an issue that impacts all of us and we will not shrink from this responsibility.”
He said that Apple believes it has an obligation to help protect its users’ data. That belief eventually prompted Apple to fight the Department of Justice’s demand to help the government crack the encryption on the iPhone used by a terrorist in last year’s California attack.
Compared with that high-stakes contest — which has broad implications for the technology industry, consumers and law enforcement — Apple’s new products were small ball.
The company introduced smaller versions of its flagship iPhone and iPad devices, hoping to eke out more sales growth by filling gaps in its product lineup.
The new devices, the iPhone SE and a 9.7-inch iPad Pro, represent a return to the form that prevailed before Apple supersized its smartphones in 2014 and added the large business-oriented iPad Pro last year, and many iPhone users have been begging the company to update its phones of that size.
“It is clear that there is still some subset of the iPhone population that prefers a smaller phone,” said Jan Dawson, chief analyst of Jackdaw Research, an independent consulting firm.
Apple vice president of hardware marketing Greg Joswiak said on stage that the company sold more than 30 million 4-inch iPhones last year.
So Apple upgraded the components of its new 4-inch phone to largely match the speed and features of its flagship iPhone 6S, but at a lower price, starting at US$399.
Apple, which has a higher market value than any other company, is now so big that it is difficult for the company to come up with products to drive a new wave of purchases. Its premium pricing — its larger phones typically run at US$650 or more — has left it vulnerable to cheaper handsets that run on Google’s Android software.
Apple certainly hopes that fans of its 4-inch phones would upgrade to the new iPhone SE, which packs a faster computer chip, a better camera, and Apple’s Touch ID and payment technology.
The new 9.7-inch iPad Pro brings some of the features of last year’s 12.9-inch iPad Pro, including a stylus, a keyboard and four speakers, to a tablet the size of the consumer-oriented 9.7-inch iPad Air 2. The new Pro is to start at US$599, and Apple also cut the price of the Air 2 by US$100 to start at US$399.
HORMUZ ISSUE: The US president said he expected crude prices to drop at the end of the war, which he called a ‘minor excursion’ that could continue ‘for a little while’ The United Arab Emirates (UAE) and Kuwait started reducing oil production, as the near-closure of the crucial Strait of Hormuz ripples through energy markets and affects global supply. Abu Dhabi National Oil Co (ADNOC) is “managing offshore production levels to address storage requirements,” the company said in a statement, without giving details. Kuwait Petroleum Corp said it was lowering production at its oil fields and refineries after “Iranian threats against safe passage of ships through the Strait of Hormuz.” The war in the Middle East has all but closed Hormuz, the narrow waterway linking the Persian Gulf to the open seas,
RATIONING: The proposal would give the Trump administration ample leverage to negotiate investments in the US as it decides how many chips to give each country US officials are debating a new regulatory framework for exporting artificial intelligence (AI) chips and are considering requiring foreign nations to invest in US AI data centers or security guarantees as a condition for granting exports of 200,000 chips or more, according to a document seen by Reuters. The rules are not yet final and could change. They would be the first attempt to regulate the flow of AI chips to US allies and partners since US President Donald Trump’s administration said it rescinded its predecessor’s so-called AI diffusion rules. Those rules sought to keep a significant amount of AI
Apple Inc increased iPhone production in India by about 53 percent last year and now makes a quarter of its marquee devices there, reflecting the US company’s efforts to avoid tariffs on China. The company assembled about 55 million iPhones in India last year, up from 36 million a year earlier, people familiar with the matter said, asking not to be named because the numbers aren’t public. Apple makes about 220 million to 230 million iPhones a year globally, with India’s share of the total increasing rapidly. Apple has accelerated its expansion in the world’s most populous country in recent years, bolstered
HEADWINDS: The company said it expects its computer business, as well as consumer electronics and communications segments to see revenue declines due to seasonality Pegatron Corp (和碩) yesterday said it aims to grow its artificial intelligence (AI) server revenue more than 10-fold this year from last year, driven by orders from neocloud solutions clients and large cloud service providers. The electronics manufacturing service provider said AI server revenue growth would be driven primarily by the Nvidia Corp GB300 server platform. Server shipments are expected to increase each quarter this year, with the second half likely to outperform the first half, it said. The AI server market is expected to broaden this year as more inference applications emerge, which would drive demand for system-on-chip, application-specific integrated circuits