Apple Card users can now finance iPhone purchases for 24 months, interest-free

It’s not quite an “Apple Prime” subscription, but it’s compelling. Apple on Wednesday introduced a new program that will allow Apple Card users to finance their iPhone purchases for 24 months, without paying interest. The program aims to appeal to consumers who frequently upgrade their iPhone to the latest model, but often turn to their carrier to finance those purchases.

With the Goldman Sachs Apple Card, those iPhone users will have another option — and one without the associated interest and fees of a traditional credit card purchase, Apple says. In addition, the Apple Card offers 3% back on purchases from Apple, which further sweetens the deal.

The program helps to lay the groundwork for what some believe may eventually become a larger subscription product for Apple, or a so-called “Apple Prime” — a name that references the Amazon Prime membership program that includes a variety of perks alongside its fast, free shipping.

An Apple hardware subscription could see users instead paying for the privilege of using the latest Apple hardware, while also bundling in other services, like AppleCare, similar to its existing iPhone Upgrade Program today, which similarly offers 0% APR but can charge fees. But a true “Apple Prime” would include other Apple subscriptions under the same roof, like iCloud, Apple Music, Apple TV+, Apple News+ and/or Apple Arcade, in some sort of bundle deal. 

Already, Apple has begun to experiment with subscription bundles. This week, for example, it announced a bundle for students that includes Apple Music and Apple TV+ for the same price as a student Apple Music subscription alone ($5/mo). And in a sense, Apple is already bundling its new Apple TV+ streaming service with its hardware, as it’s giving the service away for free with a new device purchase in its first year.

Apple has been steadily moving towards a more robust iPhone subscription program for some time.

In recent years, it has promoted iPhone trade-ins as something of a no-brainer for bringing down the cost of a new iPhone purchase. At the company’s iPhone 11 event in September, for example, Apple put up a slide that emphasized the new iPhone 11’s low price, when viewed under this model. Instead of a starting price of $699, the iPhone 11 could be as little as $399 — or $17 per month, Apple said — when you traded in your iPhone 8. The iPhone 11 Pro was $25 per month with an X trade-in, and the Pro Max, would be $29 per month with an X trade-in, Apple also said.

These sorts of promotions seem to be working, as more Apple customers are turning to trade-ins than in the past.

“We…continue to see great results from our trade-in program with more than five times the iPhone trade-in volume we had a year ago,” noted Apple CFO Luca Maestri on Apple’s earnings call.

The larger idea is to encourage Apple’s customer base to viewing the iPhone not as a big, expensive one-time purchase, but as just another monthly bill you have to pay. Tack on a few extras, like a warranty and some media and entertainment options, and Apple has the meat for a real iPhone-led subscription — it’s very own “Apple Prime,” so to speak. And thanks to the Goldman Sachs Apple Card, it has a way to incentive users to buy from Apple directly.

 

 

 

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For the first time in two years, the smartphone market shows signs of life

All is not lost for smartphone manufacturers. On the heels of two years’ of global stagnation, the category is finally showing some signs of life. Much of the bounce back comes as manufacturers are working to correct for dulled consumer interest.

I wouldn’t put too much weight in the numbers right now, as they’re little more than an uptick. Numbers from Canalys put shipment growth at one percent from Q3 2018 to Q3 2019. In most in cases, that would be a modest gain, at best, but this is notably the first time in two years that the numbers have been heading in the right direction.

Samsung saw the biggest gains — a phenomenon the analyst firm chalks up to a shift in strategy to eat some of its profits. The move has paid off for the quarter, with an 11% growth in device shipments to 78.9 million devices shipped. That gives the company the largest global marketshare at 22.4%.

Huawei, too, saw impressive growth, year-over-year, commanding second place with 66.8 million units shipped. Much of its growth came from China, which has ramped up spending on the company’s products as it has run into regulatory scrutiny overseas. Resumption of sales in some international markets helped juice growth as well. Of the top three, Apple continued to struggle the most, with a 7% loss from 2018.

For now, at least, none of the these numbers qualify as full turn around for a stagnant category, though the upcoming roll out of 5G coverage could help numbers in the right direction in the coming year.

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Apple Card users can now finance iPhone purchases for 24 months, interest-free

It’s not quite an “Apple Prime” subscription, but it’s compelling. Apple on Wednesday introduced a new program that will allow Apple Card users to finance their iPhone purchases for 24 months, without paying interest. The program aims to appeal to consumers who frequently upgrade their iPhone to the latest model, but often turn to their carrier to finance those purchases.

With the Goldman Sachs Apple Card, those iPhone users will have another option — and one without the associated interest and fees of a traditional credit card purchase, Apple says. In addition, the Apple Card offers 3% back on purchases from Apple, which further sweetens the deal.

The program helps to lay the groundwork for what some believe may eventually become a larger subscription product for Apple, or a so-called “Apple Prime” — a name that references the Amazon Prime membership program that includes a variety of perks alongside its fast, free shipping.

An Apple hardware subscription could see users instead paying for the privilege of using the latest Apple hardware, while also bundling in other services, like AppleCare, similar to its current iPhone Upgrade Program today. But a true “Apple Prime” would include other Apple subscriptions under the same roof, like iCloud, Apple Music, Apple TV+, Apple News+ and/or Apple Arcade, in some sort of bundle deal. 

Already, Apple has begun to experiment with subscription bundles. This week, for example, it announced a bundle for students that includes Apple Music and Apple TV+ for the same price as a student Apple Music subscription alone ($5/mo). And in a sense, Apple is already bundling its new Apple TV+ streaming service with its hardware, as it’s giving the service away for free with a new device purchase in its first year.

Apple has been steadily moving towards a more robust iPhone subscription program for some time.

In recent years, it has promoted iPhone trade-ins as something of a no-brainer for bringing down the cost of a new iPhone purchase. At the company’s iPhone 11 event in September, for example, Apple put up a slide that emphasized the new iPhone 11’s low price, when viewed under this model. Instead of a starting price of $699, the iPhone 11 could be as little as $399 — or $17 per month, Apple said — when you traded in your iPhone 8. The iPhone 11 Pro was $25 per month with an X trade-in, and the Pro Max, would be $29 per month with an X trade-in, Apple also said.

These sorts of promotions seem to be working, as more Apple customers are turning to trade-ins than in the past.

“We…continue to see great results from our trade-in program with more than five times the iPhone trade-in volume we had a year ago,” noted Apple CFO Luca Maestri on Apple’s earnings call.

The larger idea is to encourage Apple’s customer base to viewing the iPhone not as a big, expensive one-time purchase, but as just another monthly bill you have to pay. Tack on a few extras, like a warranty and some media and entertainment options, and Apple has the meat for a real iPhone-led subscription — it’s very own “Apple Prime,” so to speak. And thanks to the Goldman Sachs Apple Card, it has a way to incentive users to buy from Apple directly.

 

 

 

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Apple beats on Q4 earnings after strong quarter for wearables, services

Apple’s iPhone sales still make up over half of its quarterly revenues, but they are slowly shrinking in importance as other divisions in the company pick up speed.

Apple’s stock remained largely unchanged after-hours following the release of its Q4 earnings. The company delivered earnings per share of $3.03 versus the street’s estimate of $2.84 on revenue of $64 billion compared with expectation at $62.99 billion.

The big story continues to be major growth in Services, iPad and Wearables while iPhone and Mac sales continue to shrink year-over-year.

As you’ll remember, Apple no longer reports unit sales of its iPhone, Mac and iPad lines, something that is largely the result of declining unit sales and higher average selling prices. Services, Wearables and Other, and iPad saw year-over-year gains, while the iPhone and Mac lines are still seeing revenue slumps.

• iPhone sales were down 9% year-over-year, to $33.36 billion
• Services were up 18% YoY, to $12.5 billion
• Mac sales were down 5% YoY, to $6.99 billion
• “Wearables, Home, and Accessories” were up 54% YoY, to $6.52 billion
• iPad sales were up 17% YoY, to $4.66 billion

The company is continuing to add to some of its highest-growth businesses. The company announced the release of a new high-end set of AirPods yesterday, which will likely increase average selling prices among its wearables division. The company also has a number of paid services, including Apple TV+, that will be launching soon.

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A week-long iOS App Store bug wiped out over 20M ratings

An accidental sweep of the App Store removed over 20 million ratings from the most popular apps — including from well-known brands like Google, Microsoft, Starbucks, Hulu, Nike, and others — as well as from smaller developers. The issue began on October 23, 2019 and wasn’t resolved until yesterday, October 29. Apple hasn’t yet explained how such a sizable and impactful change to app ratings occurred.

This massive ratings drop was spotted by the mobile app insights platform, Appfigures.

The firm found that more than 300 apps from over 200 developers were affected by the sweep, which wiped out a total of 22 million app reviews from the App Store. On average, apps saw a 50% decrease in ratings in the affected countries, which included the U.S.

The U.S. was hit the hardest, however, as some 10 million ratings disappeared. But the sweep was global in nature, hitting all 155 countries Apple supports. China, the U.K., South Korea, Russia, and Australia, also felt a noticeable impact.

A few apps were hit harder than others. Hulu, for example, lost a whopping 95% of ratings in the U.S., while Dropbox and Chase lost 85%. Several companies affected by the bug declined to comment, but told us that the rating removals weren’t done at their request — they were just as surprised as everyone else.

Other big apps that saw their ratings disappear in the U.S. included Chase, Walgreen, Venmo, Amazon Prime Video, Southwest, Hotels.com, Disneyland, Ibotta, ESPN, Amex, Xoom, Fandango, Skyscanner, Google Classroom, Nike SNKRS, My Disney Experience, Old Nav, and others.

Of the over 300 apps that got hit, about half (154) saw a drop of more than 100 ratings, Appfigures said.

WOW @Starbucks iOS app lost about 1.3mln of ratings overnight! @hulu lost about 900k, as well as dozens of other apps.
I hope this is just @AppStore bug. pic.twitter.com/cUIrb8yeeN

— ilia kukharev (@ilyakuh) October 28, 2019

With little information about what happened, developers speculated that Apple was possibly trying to clean up fake app ratings. This theory doesn’t seem that likely, though, because Appfigures found that both positive and negative ratings were removed. Had the sweep been focused on fake ratings, then only the positive (fake) ratings would have been removed.

Another theory is that Apple was trying to speed up its ratings system and something just went wrong.

Unfortunately for some of the impacted developers, the bug had a profound effect on their app’s “Overall” rating. Their app may have dropped by several stars as a result of this problem. And that, in turn, could have hurt their ability to get downloads from App Store search results or Search Ads during the week.

Some of the impacted companies (and Appfigures) confirmed to TechCrunch the missing ratings were restored as of yesterday.

Oh man, this happened to one of my clients. When from 4.6 with ~400 ratings to 2.6 with 5 ratings. Had a support request in, but glad to see it resolved.

— Ben DiFrancesco (@BenDiFrancesco) October 29, 2019

Oddly, this isn’t the first time app ratings disappeared nearly overnight.

A similar incident took place last year, when an App Store bug led to thousands of iOS apps losing half their ratings over a weekend. In both cases, Apple quietly resolved the bug, but never offered any statements about what happened.

We reached out to Apple on Tuesday but the company has not yet commented.

However, we hear that Apple spoke directly to some developers to explain the rating removals were done in error and it was working to fix the situation, which now appears resolved.

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Apple TV+ will be free with an Apple Music student subscription

Ahead of Friday’s launch of Apple’s new streaming service, Apple TV+, the company announced an Apple Music/Apple TV+ bundle deal specifically aimed at making the service more affordable for younger subscribers. According to an Instagram Story published by Hailee Steinfeld, star of Apple TV+’s first potential hit series, “Dickinson,” Apple Music student subscribers will be able to stream Apple TV+ for free.

The announcement was spotted earlier by 9to5Mac.

After a series of Instagram-hosted Q&A’s meant to stoke excitement for the show among her fans, Steinfeld announced the bundle deal by saying that: “for those of you who are students with an Apple Music student subscription, you can now get Apple TV+ for free.”

She noted this means student subscribers will not only be able to watch her new show on Friday, November 1st, they also can check out her new single “Afterlife” with the same subscription.

The Apple Music student subscription is currently $4.99 per month, which provides full access to Apple Music’s catalog of 50 million songs, live local radio stations, curated playlists and other original content.

An Apple Music-Apple TV+ bundle had been rumored to be in the works, prompting rival Spotify to team up with Hulu to pre-emptively strike with a bundle deal of their own.

But when Apple formally announced its TV streaming service, it instead surprised everyone by offering the service for free with the purchase of a new Apple device.

Of course, students are less likely to upgrade their phones and tablets as often as working adults, given the costs. That means they would have missed out on the “new device” deal, and instead would have had to pay the $4.99 per month subscription for the TV service. 

Meanwhile, Apple TV+’s debut shows have received mixed reviews from critics ahead of launch — with the star-powered “The Morning Show,” featuring Jennifer Aniston, Reese Whitherspoon and Steve Carell, even being called “dull” and “underwhelming.” “Dickinson,” however, has been a bright spot, with some even saying the show is set to be Apple TV+’s breakout series. It would make sense for Apple to capitalize on that attention — as well as on Steinfeld’s 12.4 million Instagram followers — to get more people watching.

Apple didn’t share any additional information about the Music/TV+ bundle beyond what Steinfeld announced. There was no related press release or even a tweet posted to the Apple TV Twitter account. In other words, Apple was narrowly targeting Steinfeld’s built-in fan base with the news.

It appears this is not a limited-time deal with an expiration date attached, just an ongoing benefit of a student Music subscription.

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Wearable spending forecasted to increase 27% in 2020

New numbers from Gartner mark another major increase for global wearable spending in 2020. The analyst firm forecasts a 27% jump in end-user spending over this year, from $40.5 billion to $51.5 billion. Once again, the pack is lead by smartwatches, which continue to burn the hottest among in the space.

Interestingly, the increase on smartwatch spending from $17 billion to $22.8 billion will be lead by decreasing prices (a 4.5% decrease in average selling prices in 2021). Those are, in turn, the result of a combination of increased competition from Samsung and some external pressure from Fitbit, which has found a sweet spot at around $200 a unit. Chinese manufacturers like Xiaomi have also gone a ways toward decreasing the price on the low end of the market. 

Apple, in turn, has responded by keeping the two-year-old Series 3 on the market at the $200 price point. It’s a sign of a maturing category that no longer commands as much of a premium pricing in past generations. Google, meanwhile, recently bought a fair chunk of IP from Fossil and has reportedly been eyeing a Fitbit acquisition after years of struggling to crack the category.

Headphones have continued steady growth, as well, thanks to an explosion in fully wireless earbuds, lead by Apple and Samsung, with the recent lower cost addition of Amazon. Google, too, has been eying a reentry into the category next year with the return of its much panned Pixel Buds. Even Microsoft plans to enter the category with its unique Surface Buds.

Gartner predicts continued spending growth in wearables for 2021, with spending hitting $62.9 billion.

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US search market needs a ‘choice screen’ remedy now, says DuckDuckGo

US regulators shouldn’t be sitting on their hands while the 50+ state, federal and congressional antitrust investigations of Google to grind along, search rival DuckDuckGo argues.

It’s put out a piece of research today that suggests choice screens which let smartphone users choose from a number of search engines to be their device default — aka “preference menus” as DuckDuckGo founder Gabe Weinberg prefers to call them — offer an easy and quick win for regulators to reboot competition in the search space by rebalancing markets right now.

“If designed properly we think [preference menus] are a quick and effective key piece in the puzzle for a good remedy,” Weinberg tells TechCrunch. “And that’s because it finally enables people to change the search defaults across the entire device which has been difficult in the past… It’s at a point, during device set-up, where you can promote the users to take a moment to think about whether they want to try out an alternative search engine.”

Google is already offering such a choice to Android users in Europe, following an EU antitrust decision against Android last year.

DuckDuckGo is concerned US regulators aren’t thinking pro-actively enough about remedies for competition in the US search market — and is hoping to encourage more of a lean-in approach to support boosting diversity so that rivals aren’t left waiting years for the courts to issue judgements before any relief is possible.

In a survey of Internet users which it commissioned, polling more than 3,400 adults in the US, UK, Germany and Australia, people were asked to respond to a 4-choice screen design, based on an initial Google Android remedy proposal, as well as an 8-choice variant.

“We found that in each surveyed country, people select the Google alternatives at a rate that could increase their collective mobile market share by 300%-800%, with overall mobile search market share immediately changing by over 10%,” it writes [emphasis its].

Survey takers were also asked about factors that motivate them to switch search engines — with the number one reason given being a better quality of search results, and the next reason being if a search engine doesn’t track their searches or data.

Of course DuckDuckGo stands to gain from any pro-privacy switching, having built an alternative search business by offering non-tracked searches supported by contextual ads. Its model directly contrasts with Google’s, which relies on pervasive tracking of Internet users to determine which ads to serve.

But there’s plenty of evidence consumers hate being tracked. Not least the rise in use of tracker blockers.

“Using the original design puzzle [i.e. that Google devised] we saw a lot of people selecting alternative search engines and we think it would go up from there,” says Weinberg. “But even initially a 10% market share change is really significant.”

He points to regulatory efforts in Europe and also Russia which have resulted in antitrust decisions and enforcements against Google — and where choice screens are already in use promoting alternative search engine choices to Android users.

He also notes that regulators in Australia and the UK are pursuing choice screens — as actual or potential remedies for rebalancing the search market.

Russia has the lead here, with its regulator — the FAS — slapping Google with an order against bundling its services with Android all the way back in 2015, a few months after local search giant Yandex filed a complaint. A choice screen was implemented in 2017 and Russia’s homegrown Internet giant has increased its search market share on Android devices as a result. Google continues to do well in Russia. But the result is greater diversity in the local search market, as a direct result of implementing a choice screen mechanism.

“We think that all regulatory agencies that are now considering search market competition should really implement this remedy immediately,” says Weinberg. “They should do other things… as well but I don’t see any reason why one should wait on not implementing this because it would take a while to roll out and it’s a good start.”

Of course US regulators have yet to issue any antitrust findings against Google — despite there now being tens of investigations into “potential monopolistic behavior”. And Weinberg concedes that US regulators haven’t yet reached the stage of discussing remedies.

“It feels at a very investigatory stage,” he agrees. “But we would like to accelerate that… As well as bigger remedial changes — similar to privacy and how we’re pushing Do Not Track legislation — as something you can do right now as kind of low hanging fruit. I view this preference menu in the same way.”

“It’s a very high leverage thing that you can do immediately to move market share and increase search competition and so one should do it faster and then take the things that need to be slower slower,” he adds, referring to more radical possible competition interventions — such as breaking a business up.

There is certainly growing concern among policymakers around the world that the current modus operandi of enforcing competition law has failed to keep pace with increasingly powerful technology-driven businesses and platforms — hence ‘winner takes all’ skews which exist in certain markets and marketplaces, reducing choice for consumers and shrinking opportunities for startups to compete.

This concern was raised as a question for Europe’s competition chief, Margrethe Vestager, during her hearing in front of the EU parliament earlier this month. She pointed to the Commission’s use of interim measures in an ongoing case against chipmaker Broadcom as an example of how the EU is trying to speed up its regulatory response, noting it’s the first time such an application has been made for two decades.

In a press conference shortly afterwards, to confirm the application of EU interim measures against Broadcom, Vestager added: “Interim measures are one way to tackle the challenge of enforcing our competition rules in a fast and effective manner. This is why they are important. And especially that in fast moving markets. Whenever necessary I’m therefore committed to making the best possible use of this important tool.”

Weinberg is critical of Google’s latest proposals around search engine choice in Europe — after it released details of its idea to ‘evolve’ the search choice screen — by applying an auction model, starting early next year. Other rivals, such as French pro-privacy engine Qwant, have also blasted the proposal.

Clearly, how choice screens are implemented is key to their market impact.

“The way the current design is my read is smaller search engines, including us and including European search engines will not be on the screen long term the way it’s set up,” says Weinberg. “There will need to be additional changes to get the effects that we were seeing in our studies we made.

“There’s many reasons why us and others would not be those highest bidders,” he says of the proposed auction. “But needless to say the bigger companies can weigh outweigh the smaller ones and so there are alternative ways to set this up.”

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Apple’s AirPods Pro set a pricey new standard for earbuds

“These $250 earbuds are nice.” That’s the first thing I wrote to a co-worker after unboxing and trying on the new AirPods. After wearing them around the New York City streets, the subway and into a couple of cafes, that pithy review stands.

Here are a few more words: They’re super comfortable. I’ve used a lot of different Bluetooth earbuds. It’s a weird perk of my job. The AirPods Pro (baffling pluralization aside) are probably the most comfortable, with the possible exception of the Powerbeats Pro, another Apple-manufactured joint venture. That one, however, relies on a lot more plastic to get the job done, with a full over-the-ear hook system.

Apple announces AirPods Pro with noise cancellation

The new AirPods, on the other hand, just hang comfortably. This is a big win for those who’ve experienced ear discomfort from all sort of different designs. [Sheepishly raises hand.] Granted, every ear is like a beautiful, unique snowflake, and not everyone will have the same experience. That said, the company’s clearly done a lot to correct for the complaints about the original AirPods, using both a more ergonomic design and finally giving in to the sway of silicone tips.

Why Apple waited this long on the latter bit is beyond me, but the company has finally done so on its own terms. Each Pro box ships with a total of six tips (a right and left in small, medium and large), with the medium on by default. These, however, are not your standard, run of the mill silicone tips. A firm yank will pull them off to reveal a hard outer edge that snaps into the bud [picture above].

The company says this is part of ensuring a better fit. Another benefit is that the attachment is much more secure. This is a definite plus, speaking as someone who has accidentally littered the streets of New York with earbud tips. These are far less likely to fall off while getting them out of your pocket. If you do lose one, Apple will be selling replacements for probably a buck or so.

Along with an enlarged body, you’ve no doubt noticed that the stems are notably shorter. That’s because the company has been able to consolidate more of the electronics into the top. The stem remains as a way of handling the earbuds. It also now houses a haptic button that replaces the standard AirPod tap interaction. Instead, you give the stem a squeeze, triggering a subtle clicking sound in the process.

By default, a single squeeze pauses and plays a track, whereas a squeeze and hold cycles between noise cancellation and transparent modes. All of this can be adjusted in iOS, once you’ve downloaded version 13.2. Setup on iOS is as easy as ever, requiring you to simply open the case near an iPhone or iPad. Android and desktop pairing, meanwhile, involves the more standard Bluetooth setup.

From there, click into Settings > Bluetooth > and then tap the “i” next to AirPods Pro. From here you switch between noise control modes, assign different functions to the button on the individual AirPods and fire up the Ear Tip Fit Test. Hit “play” and it will start a quick snippet of a song used to test the fit. If you have the right tip on, it will display “good seal.” If something is wrong, it recommends trying a different tip or adjusting the bud in ear.

Not only is every ear different, but some folks have a deal of differentiation between right and left. The mediums worked well for me, right out of the box. That’s me, Mr. Average Ears. Results may very.

Amazon Echo Buds review

The Pros sound great. They’re among the best-sounding earbuds I’ve tried, up there with the similarly priced Sony WF-1000XM3. As such, they’re in pretty rare air. Unlike the Echo Buds, you can’t adjust the levels in settings, but Apple’s buds are tuned well out of the box for a wide range of genres. So far, I’ve listened to Ryuichi Sakamoto, Danny Brown, The Hold Steady, Electric Youth and Sunn 0))), for a pretty diverse sampling. It all comes across rich and full — much as one would expect/hope from a $250 pair of earbuds.

The noise canceling, too, is up there with Sony’s. Apple’s works adaptively, similar to what it offers on its over-ear Beats headphones. That means the microphones are constantly listening to your surroundings and adjusting accordingly. It’s not quite a full immersion, like you would get from over-ear headphones, but with a tight seal, it does a pretty terrific job drowning out your surroundings when needed.

For those times you need to be more alert, there’s transparency mode, which uses the on-board mics to beam in ambience. Once again, it’s a good mix, letting in sound without completely overwhelming the music. That was one of my issues with the Echo Buds, which tended to overamplify things like an air conditioning unit. Though again, unlike the Echo Buds, you can turn transparency on an off, versus adjusting levels.

Bit of a side note here, but like their predecessors, these new models will probably go a ways toward shifting societal norms in terms of keeping your headphones in while engaging with others. These are the sorts of things that make me want to go all Andy Rooney on kids today, etc., etc.

Noise canceling and transparency have similar impacts on battery, knocking about half an hour off of the Pods’ built-in five hours. With the charging case factored in, total listening time should be about 24 hours in standard mode, per Apple’s estimates. I’m excited to push that to the limit as I board a plane to Asia early next week. Ditto for the comfort level — but after several hours today, all is still well.

The case is a little larger than the original AirPods, but is still carried comfortably in a pocket, unlike, say, the Beats or Sony models. The orientation has shifted, as well. It’s not wider than it is long, owing to the shortening of the AirPods’ stems. The new design means they’re slightly more difficult to maneuver into the case, but you’ll get the hang of that after a couple of tries.

Like the AirPods 2, the case can be charged both through the Lightning port or wirelessly. Tapping the case while charging will light up the LED, which will display as either yellow or green to let you know how far along your are.

So, yeah, thumbs up after half a day. No surprise there, of course. The $250 price tag will almost certainly make these cost-prohibitive for many, but after a few hours, it’s going to be hard to go back.

Look for a longer write up soon.

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Apple releases iOS 13.2 with Deep Fusion

Apple has released iOS 13.2 and iPadOS 13.2 for the iPhone and iPad. This update features the usual bug fixes and security improvements. But Apple is also adding a handful of new features to its operating system.

First, iOS 13.2 brings a ton of new emojis. The company now officially supports Unicode 12.0. You can now create all possible combinations of handholding couple emojis regardless of gender or skin tone. There are new accessibility-focused emojis, such as a service dog, people using wheelchairs, prosthetic arms and legs, a person with a white cane and more. There are also new animals, a yawning face and new food options.

If you have an iPhone 11 or iPhone 11 Pro, iOS 13.2 enables Deep Fusion, an image processing feature that should make your photos look better thanks to machine learning-enabled processing.

It’s also worth mentioning that you can now change the resolution and framerate of your videos in the Camera app directly.

With iOS 13.2, you can opt out of sharing Siri recordings with Apple employees and delete your Siri and dictation history. Go to Settings > Privacy > Analytics and Improvements to opt out at any time.

Apple rolls out new Siri audio clip grading opt-in and request history deletion feature in beta

Finally, iOS 13.2 enables HomeKit‌ Secure Video for HomeKit-enabled camera and adds support for the newly announced AirPods Pro.

Before updating to iOS 13.2, back up your device. Make sure your iCloud backup is up to date by opening the Settings app on your iPhone or iPad and tapping on your account information at the top and then on your device name. Additionally, you can also plug your iOS device into your computer to do a manual backup in iTunes.

Don’t forget to encrypt your backup in iTunes. It is much safer if somebody hacks your computer. And encrypted backups include saved passwords and health data. This way, you don’t have to reconnect to all your online accounts.

Once this is done, you should go to the Settings app as soon as possible to get in the queue. Navigate to ‘Settings,’ then ‘General’ and then ‘Software Update.’ Then you should see ‘Update Requested…’ It will then automatically start downloading once the download is available.

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Apple announces AirPods Pro with noise cancellation

Apple just announced a new device today, the AirPods Pro. The company issued a press release to announce the new device. As the name suggests, the AirPods Pro are wireless earbuds with additional features compared to the AirPods.

In particular, the AirPods Pro features active noise cancellation — this feature is particularly popular in headphones designed for airplanes, such as the Bose 700 and Sony WH-1000XM3.

Apple has integrated two microphones in each earbud to listen to background noise and actively cancel sound around you. One of the microphones is inward-facing and listens to the sound inside your ears. The company has also integrated adaptive EQ to tune the low- and mid-fequencies in real time depending on the shape of your ears.

You can switch between active noice cancellation and something called Transparency mode in order to block background noise or let background noise go through your earbuds. You can control that from your device or squeeze the bottom of the earbuds between your fingertips.

The design of the AirPods Pro is slightly different from the AirPods. They look like in-ear earbuds with flexible silicone ear tips. You’ll be able to swap those ear tips as there are three different sizes in the box. The AirPods Pro are also sweat and water resistant.

Behind the scene, the AirPods Pro work with an Apple-designed chip called the H1. This chip handles everything from real-time noise cancelation, audio processing, and the ability to respond to “Hey Siri” requests.

Apple says that you can expect the same battery life that you’d get with regular AirPods — four and half hours of listening time with active noise cancellation and up to 24 hours of listening time with the charging case.

The charging case also looks slightly different — it is now rectangular-shaped. It features a Lightning port and wireless charging.

The AirPods Pro will be available for $249 starting on October 30. You can order them on Apple’s website starting today. Regular AirPods remain available for the same price of $159 to $199, depending on whether you get the wireless charging case.

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Kandji announces $3.375M seed for sophisticated Apple MDM solution

Kandji, a new Apple MDM solution that promises to go far beyond Apple’s base MDM protocol and other solutions on the market, emerged from stealth today with a $3.375 million seed investment. The product is also publicly available for the first time starting today.

The round, which closed in March, was led by First Round Capital with help from Webb Investment Network, Lee Fixel, John Glynn and other unnamed investors.

Company co-founder and CEO Adam Pettit says the company’s founders have a deep knowledge in Apple. They all worked at Apple before leaving to run an Apple IT consultancy for more than 10 years.

He said that while they were at the consultancy, they developed a proprietary stack of tools to help with highly sophisticated Apple device deployments at large organizations, and it occurred to them that there was an unserved market opportunity to turn that knowledge into a new product.

Two years ago they sold the consultancy, took that knowledge and built Kandji from the ground up. Pettit says the new product gives customers access to a set of management tools that they would have charged six figures to implement at that their old firm.

One of the key differentiators between Kandji and other MDM solutions, or even Apple’s base MDM functionality, is a set of one-click compliance tools. “We’re the only product that has almost 200 of these one click policy frameworks we call parameters. So an organization can go in and browse by compliance framework, or we have pre built templates for companies that don’t necessarily have a specific compliance mandate in mind,” he said.

The parameters have all of the tools built in to automatically deploy a set of policies related to a given compliance framework without having to go through and manually set all of those different switches yourself. On the flip side, if you want to get granular and create your own parameters, you can do that too.

He says one of the reasons he and his partners were willing to give up the big dollar consultancy was because they saw a huge opportunity for firms that couldn’t afford those kind of services, but still had relatively large Apple device deployments. “I mean there’s a big need outside of just the specific kind of sophisticated compliance work we would do [at our previous firm]. We saw this big need in general for an Apple MDM solution like ours,” he said.

After selling their previous firm, the founders bootstrapped for a year while they developed the initial version of Kandji before seeking funding. Today, the company has 16 employees and a set of initial customers, who have been testing the product.

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NVIDIA’s new Shield TV wins the Android TV market with amazing 4K upscaling

NVIDIA has a new family of Android TV-based streaming devices, as tipped early via a couple of leaks from online stores. The new NVIDIA Shield TV ($149) and Shield TV Pro ($199) replace the existing Shield TV generation of hardware, which debuted in 2017. Both new Shields offer new Tegra X1+ processors, which outperform the predecessor chip by about 25 percent, and make possible one of this Shield’s new highlight features: AI-powered 3K up-conversion for HD content.

Both Shield TV and Shield TV Pro also support Dolby Vision HDR content, as well as Dolby Atmos surround sound. The differences between the two devices center mainly around physical design, with the Shield TV adopting a cylindrical tube design, and the Shield TV Pro looking more like its predecessor (basically a small set-top box form factor). The Shield TV Pro also gets more RAM (3GB vs. 2GB), more storage (16GB vs 8GB) the ability to transcode 1080p streams when acting as a Plex Media Server, support for the SmartThings Link to turn it into a SmartThings smart home hub and advanced Android gaming support, along with two USB 3.0 ports.

Shield TV Review

I’ve been using the Shield TV for around a week now, and this is definitely a worthwhile upgrade for anyone looking to get the best possible experience available in an Android TV home theater device. NVIDIA has clearly done a lot to survey the market, look at everything that’s come out in the two years since it last updated this hardware, and delivery generational improvements that help it stand out from the crowd in meaningful ways.

Android TV now ships on a lot of smart TVs, and there have been many generations of Roku and Amazon Fire TV devices introduced since we last saw a new Shield from NVIDIA – all of which adds up to needing to really do something special to ask for $149.99 from consumers to invest in a new dedicated streaming media box. NVIDIA has always delivered a lot of value for the upfront cost of their streaming hardware, with consistent updates over the life of the devices that add plenty of new features and improvements. But this new hardware packs in some excellent features not possible with software alone, and that are also unique when you look across the options available in this category.

AI Upscaling

Chief among the additions NVIDIA has made here is the AI upscaling made possible with the new Tegra X1+ chip. You might have heard of ‘upscaling’ before, and you might even think that your TV already handles that well. But what you probably don’t know is that often content from streaming media sources doesn’t actually get upscaled by your TV, which means if you have a 4K display but are often watching YouTube or other services with large quantities of non-4K content, you might not be getting the most out of your hardware.

NVIDIA has addressed this with on-device 4K upscaling, which is powered by on-device machine intelligence that has been trained on a deep neural network to turn both 720p and 1080p signals into much sharper, 4K-equivalent images. Having used this on a variety of content, including media streamed from YouTube, non-4K Netflix content and stuff from Plex, I can attest to its ability to produce visibly sharper images that look great, especially on my LG C8-series OLED 4K TV.

The Shield TV’s tech is trained on popular movies and TV shows, and so does a remarkably good job of guessing what the 4K version of the HD image it’s looking at should properly look like. Considering that there’s a ton of content out there that hasn’t been made available in 4K, despite now a lot of TVs supporting that resolution, this is a big advantage for NVIDIA, and again one that they uniquely offer among their peers.

Dolby Everything

These new Shields also support Dolby Vision and Dolby Atmos, across more services than anything else out there on the market right now. These HDR and surround sound modes really do offer the best audio-visual experience you can get, provided you have TVs and audio output equipment that supports them, but what you might not know is that even on other streaming hardware that technically support these standards, they might not be supported across all services.

Shield TV supports Dolby Vision and Dolby Atmos across Netflix, Amazon Prime Video, Disney+, Vudu and Movies Anywhere, so you should be getting the most out of these technologies, too. I asked about the forthcoming Apple TV+ service, which is rolling out to Roku devices, for instance, but NVIDIA didn’t have any news to share just yet – it does seem like it’s a good idea to stay tuned on that front, however.

Like AI Upscaling, Dolby support across everything might not seem like a big competitive advantage, but it’s absolutely a decision tipping factor for people who are looking for the best possible A/V experience in a home streaming device.

New and Improved Remote

NVIDIA is shipping the new Shield TVs with a brand new redesigned remote in the box. There’s a dedicated ‘Netflix’ button, which is a nice touch, but the remote overall is just an improvement over both Shield remotes past, and other competing remotes, in every way. It’s powered by AAA batteries (included) and it has a new pyramid-shaped body design that makes it easier and more pleasant to hold.

There are also lots of new buttons! Yes, NVIDIA actually put buttons on their remote control – what a novel concept! Whereas the remote from the last generation seemed to be adopting a lot of the questionable choices Apple has long been making on their remotes, this one feels like it’s made with humans in mind, with dedicated play/pause, back, forward, volume and other buttons. A wealth of buttons.

This remote also has automatic backlighting, which will serve you well when using it in a darkened room. Because of the bulkier body design, it also stands on its end, and there’s a lost remote finding function, too. Chalk up a win for human-centric design with this remote, it’s a joy to use.

Simple physical design

The design of the device is not flashy, but it is smart. There’s an Ethernet port, a power connector, an HDMI port and a micro SD card slot, dividing across both ends of the tube. This makes it perfect for placing behind a console or media bench, on the ground or next to your other power cables.

[gallery ids="1904249,1904250,1904246"]

It still provides hardwired connectivity options in case you do things like in-home game streaming or GeForce NOW cloud gaming, and it offers expandable storage via the microSD slot.

Bottom Line

NVIDIA’s new Shield is a great option for anyone looking for a versatile streaming device, with access to all of Google’s Play Store apps for Android TV, and support for the latest AV standards. It’s real bonus advantage is that AI upscaling, however, which is something that NVIDIA is uniquely poised to do well, and which goes a long way in making that $149.99 price point seem like a tremendous value.

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This Week in Apps: TikTok security check, app store cleanups, GameClub takes on Apple Arcade

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all.

The app industry in 2018 saw 194 billion downloads and more than $100 billion in purchases. This past quarter, consumer spending exceeded $23 billion and installs topped 31 billion. And there’s no sign of the app economy slowing down.

But with app marketplaces growing this large and powerful, they’re also now coming under more scrutiny from government officials as this intersection between apps and politics can no longer be overlooked.

This week, U.S. Senators asked for a TikTok security check, Google hosted its Android Developer Summit, a whole bunch of malicious apps got booted off Google Play (and a few on the App Store, too.) Plus, a great alternative to Apple Arcade launched; it’s called GameClub and delivers some of the best App Store games for $5 per month.

Headlines

TikTok comes under more political pressure

The world’s most downloaded app, TikTok, continues to draw attention not for its fun skits and lip-synced songs, but for censorship issues and potential security risks. This week, Senate Democratic Leader Chuck Schumer (D-NY) and Senator Tom Cotton (R-AR) sent a letter (PDF) to Acting Director of National Intelligence Joseph Maguire, formally requesting that the Intelligence Community conduct an assessment of the national security risks posed by TikTok and other China-owned content platforms in the U.S.

Their concerns revolved around the storage of U.S. TikTok user data (TikTok parent company ByteDance claims it’s in the U.S.), its data collection capabilities, censorship concerns, and the potential for the app to be a counterintelligence threat. As a Chinese-owned company, TikTok still has to adhere to Chinese law. That’s a potential problem. 

By the way, a press release circulated about the letter, which said the senators claimed TikTok was a “national security threat.” They actually did not write those words in the letter — and it’s a step beyond what they were claiming. The senators wanted a risk assessment performed.

The Office of the Director of National Intelligence declined to comment. TikTok said it was “carefully reviewing” the letter. Good thing they just hired those lawyers.

Apple CEO Tim Cook is now the top advisor to a business school called China’s Harvard

The issues around the App Store’s intersection with U.S. politics aren’t limited to TikTok.

Apple, already under scrutiny for removing a crowdsourced mapping app that showed police presence in Hong Kong, last week attracted a letter from a bipartisan group of U.S. lawmakers who urged to have the app reinstated. 

Now (with a lack of concern over the optics apparently), Apple CEO Tim Cook has been appointed as chairman of Tsinghua University’s business school advisory board. The university is known as “China’s Harvard,” and is one of the most country’s most elite institutions; Chinese President Xi Jinping is a noted alumnus. The university has a history of relationships with Western leaders — last year, Mark Zuckerberg, Elon Musk, and Satya Nadella were listed as board members, and its previous chairman was American VC Jim Breyer.

But given the issues around Apple’s capitulation to China’s demands to censor its App Store in the region — not to mention the U.S.-China trade war, or how Apple had told Apple TV+ showrunners not to anger China — everyone pretty much agrees it was not the best timing for this news.

Unfortunately for Apple, it can’t abandon China now, as it’s grown too dependent on its business there. As Vox recently reported:

Unlike tech companies that haven’t broken into the country or only do minor business in it, Apple is now so deep in China that leaving it could be catastrophic. Even if the company was willing to forgo the $44 billion a year in sales it makes in China, it can’t leave the deep network of suppliers and assemblers that build hundreds of millions of iPhones every year.

Millions of malicious apps get booted from Google Play…and malicious apps spotted on the App Store, too

Malicious apps were found on both Google Play and the App Store this week. But these stories are not at all the same.

Security researchers found dozens of Android apps in the Google Play store serving ads to unsuspecting victims as part of a money-making scheme. The 42 apps containing adware had been downloaded more than 8 million times since they first launched in July 2018. The apps were also sending back data about the user’s device, TechCrunch reported — including if certain apps are installed and if the device allows apps from non-app store sources — which could be used to install more malicious software.

Sadly, this kind of thing happens a lot on Google Play.

What’s less common, however, is to find malware on the App Store — which happened this week, when 17 malicious apps were removed.

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This Week in Apps: TikTok security check, app store cleanups, GameClub takes on Apple Arcade

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all.

The app industry in 2018 saw 194 billion downloads and more than $100 billion in purchases. This past quarter, consumer spending exceeded $23 billion and installs topped 31 billion. And there’s no sign of the app economy slowing down.

But with app marketplaces growing this large and powerful, they’re also now coming under more scrutiny from government officials as this intersection between apps and politics can no longer be overlooked.

This week, U.S. Senators asked for a TikTok security check, Google hosted its Android Developer Summit, a whole bunch of malicious apps got booted off Google Play (and a few on the App Store, too.) Plus, a great alternative to Apple Arcade launched; it’s called GameClub and delivers some of the best App Store games for $5 per month.

Headlines

TikTok comes under more political pressure

The world’s most downloaded app, TikTok, continues to draw attention not for its fun skits and lip-synced songs, but for censorship issues and potential security risks. This week, Senate Democratic Leader Chuck Schumer (D-NY) and Senator Tom Cotton (R-AR) sent a letter (PDF) to Acting Director of National Intelligence Joseph Maguire, formally requesting that the Intelligence Community conduct an assessment of the national security risks posed by TikTok and other China-owned content platforms in the U.S.

Their concerns revolved around the storage of U.S. TikTok user data (TikTok parent company ByteDance claims it’s in the U.S.), its data collection capabilities, censorship concerns, and the potential for the app to be a counterintelligence threat. As a Chinese-owned company, TikTok still has to adhere to Chinese law. That’s a potential problem. 

By the way, a press release circulated about the letter, which said the senators claimed TikTok was a “national security threat.” They actually did not write those words in the letter — and it’s a step beyond what they were claiming. The senators wanted a risk assessment performed.

The Office of the Director of National Intelligence declined to comment. TikTok said it was “carefully reviewing” the letter. Good thing they just hired those lawyers.

Apple CEO Tim Cook is now the top advisor to a business school called China’s Harvard

The issues around the App Store’s intersection with U.S. politics aren’t limited to TikTok.

Apple, already under scrutiny for removing a crowdsourced mapping app that showed police presence in Hong Kong, last week attracted a letter from a bipartisan group of U.S. lawmakers who urged to have the app reinstated. 

Now (with a lack of concern over the optics apparently), Apple CEO Tim Cook has been appointed as chairman of Tsinghua University’s business school advisory board. The university is known as “China’s Harvard,” and is one of the most country’s most elite institutions; Chinese President Xi Jinping is a noted alumnus. The university has a history of relationships with Western leaders — last year, Mark Zuckerberg, Elon Musk, and Satya Nadella were listed as board members, and its previous chairman was American VC Jim Breyer.

But given the issues around Apple’s capitulation to China’s demands to censor its App Store in the region — not to mention the U.S.-China trade war, or how Apple had told Apple TV+ showrunners not to anger China — everyone pretty much agrees it was not the best timing for this news.

Unfortunately for Apple, it can’t abandon China now, as it’s grown too dependent on its business there. As Vox recently reported:

Unlike tech companies that haven’t broken into the country or only do minor business in it, Apple is now so deep in China that leaving it could be catastrophic. Even if the company was willing to forgo the $44 billion a year in sales it makes in China, it can’t leave the deep network of suppliers and assemblers that build hundreds of millions of iPhones every year.

Millions of malicious apps get booted from Google Play…and malicious apps spotted on the App Store, too

Malicious apps were found on both Google Play and the App Store this week. But these stories are not at all the same.

Security researchers found dozens of Android apps in the Google Play store serving ads to unsuspecting victims as part of a money-making scheme. The 42 apps containing adware had been downloaded more than 8 million times since they first launched in July 2018. The apps were also sending back data about the user’s device, TechCrunch reported — including if certain apps are installed and if the device allows apps from non-app store sources — which could be used to install more malicious software.

Sadly, this kind of thing happens a lot on Google Play.

What’s less common, however, is to find malware on the App Store — which happened this week, when 17 malicious apps were removed.

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Here’s where top gaming VCs are looking for startup opportunities

With cross-platform experiences like Fortnite and PUBG, in-game socializing environments, and subscription-based cloud gaming services from Playstation, Google, Amazon, and others, the gaming industry is entering a new era beyond mobile.

These days, the industry is at the center of social media and entertainment trends; gaming is expected to earn $152 billion in global revenue this year, up 9.6% year over year. 

Given my recent writing on Unity, the most-used game engine, and ongoing research into interactive media trends, I wanted to find out how top gaming-focused VCs are assessing the market right now. I asked ten of them to share which trends they are most excited about when it comes to finding investment opportunities:

• David Gardner, Partner at London Venture Partners
• Henric Suuronen, Partner at Play Ventures
• Samuli Syvähuoko, Partner at Sisu Game Ventures
• Jay Chi, Partner at Makers Fund
• Peter Levin, Managing Director at Griffin Gaming Partners
• Gigi Levy-Weiss, Partner at NFX
• Ethan Kurzweil, Partner at Bessemer Venture Partners
• Jonathan Lai, Partner at Andreessen Horowitz
• Blake Robbins, Partner at Ludlow Ventures
• Jon Goldman, General Partner at GC Tracker & Board Partner at Greycroft Partners

Amid the mix of predictions, there were several common threads, such as optimism about the rise of games as broader social platforms, opportunities to invest directly in new studios, and skepticism about near-term investments in augmented or virtual reality and blockchain.

Here are their responses.

David Gardner, Partner at London Venture Partners

“PC Games are back. Great place to start new IP to then migrate a success to multiple platforms. There is more innovation in business models and more open distribution on PC to facilitate audience growth without the punishment of mobile CPIs.

VR & AR remain out. We stood away from VR in the beginning and extend that to AR while the user experience for games remains a disappointment. Let’s hope those new Apple glasses do the trick!

Crypto remain a theological war zone, but honestly everything on offer has been available in the cloud world, but the real consumer benefit isn’t showing up.

We love games that are expanding audience demographics and are sensitive to less hardcore audiences.  For example, women players are estimated to account for 1 billion gamers.”

Henric Suuronen, Partner at Play Ventures

“At Play Ventures, we believe we have just entered the golden era of mobile gaming. Who would have believed 10 years ago that Nintendo and games like Fortnite and Call of Duty would all be on mobile. Mobile is not just a games platform anymore, it is THE games platform of choice for casual and core players alike. Consequently, in the next 2-3 years we will invest in 30-40 mobile games studios across the globe.”

Samuli Syvähuoko, Partner at Sisu Game Ventures

“We at Sisu Game Ventures have been investing in many sectors since 2015 including free-to-play mobile games (especially big here in Finland), VR, AR, PC, console, instant messenger, hypercasual, audio and most recently cloud-native games as well. In addition to game studios, around a third of our investments are into games related tech/infrastructure. 

We’ve so far not dipped our toes into blockchain or eSports and our appetite for doing more investments in VR and AR is nil. To me, the most interesting mega trends lie with the promise of cloud gaming when utilized to its full potential. Another term that encapsulates my excitement is games-as-a-social-hobby. Put this and the extreme accessibility of the cloud together and you’ll have a game with revolutionary potential.”

Jay Chi, Partner at Makers Fund

“We are looking closely at ‘Gaming as Media’ related content and platforms — the emergence of new interactive experience centered on ‘viewers as participants.’ Gaming as social media falls under this thesis. We are also looking for MMO and Metaverse enablers given increased demand for specialized, scalable and affordable technologies that empower lean startup teams to create and operate large-scale worlds and novel gameplays. 

We also see potential for new start-ups to emerge in hypercasual games with midcore/social meta — no one has truly cracked this genre yet.”

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