The latest Powerbeats bring Pro-style updates to a tethered design at $149

After several weeks worth of leaks, the latest version of Apple/Beat’s Powerbeats arrive this week. One key thing many of the rumors got wrong is the name. There will be no Powerbeats 4 — not for now, at least. Instead, the company’s somewhat confusingly doing away with the number scheme in favor of the simpler “Powerbeats” name.

The name is, in part, to distinguish the bluetooth headphones from the well-regarded Powerbeats Pro. The new models adopt a number of new features from those truly wireless earbuds, while maintaining the familiar tethered design.

Powerbeats Pro are the Bluetooth earbuds to beat

No doubt some prefer that design. Frankly, I’m a bigger fan of the Pros, though I can see where the ability to let the headphones dangle around one’s neck while not in use would have its appeal. If that’s not a great selling point, how about the headphones’ stated 15 hours of battery life nine on-board hours? Of course, the Pros get a full 24 when you include the giant case. There’s no case for the Powerbeats, though they’ll give you an hour of playback after about five minutes charging via a Lightning cable.

Not convinced? Well, the new headphones run $149 versus the Pro’s $249. Honestly, that’s probably the biggest argument of all here. $100 is a pretty sizable difference. In the press material, Beats is comparing them to the Pros, rather than Powerbeats 3, given that many of the updates bring them up to speed with the higher end devices, including an upgraded design, new components and updates to the wireless radio.

As with the Pros, I appreciate the fit, thanks in large part to the over-ear hooks. They’re bulkier than AirPods, but they do a much better job of taking some of the weight off the front of your ears. They’re also much better at staying put at the gym. Speaking of, they’re rated IPX4 water resistant.

The button setup is similar to the Pros, though they don’t have the same buttons on either side. The right ear has the volume rocker and large Play button and the left has Power/Sync. I suspect the asymmetry is due to the necessary power button the Pros don’t require became of their charging case. I do prefer the double buttons on the Pros, but that’s a small quibble. I’d also prefer USB-C over lightning, but that’s just how Apple rolls.

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

The new Powerbeats are a nice upgrade — though probably not enough to justify purchase if you own the previous generation. Also, the Pros have the edge on everything but price (though neither, sadly, have active noise canceling yet). But they’ll be a solid buy at $149, when they hit stores March 18.

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Apple fined record $1.2B in France over anti-competitive sales practices

The wheels of the regulatory machine continue to turn, and today Apple, along with two of its wholesale partners, was dealt a major blow in France over antitrust violations, by receiving the biggest-ever fine levelled against a business over anti-competitive practices and “sterilizing the market” for Apple products, specifically as they are sold across a range of Apple Stores, large “big box” retailers and smaller, independent resellers.

Apple, along with its wholesale distribution partners Ingram Micro and Tech Data, have been accused and fined by the French competition authority (Autorité de la Concurrence), over operating a cartel — affecting pricing and who could sell products — for virtually all Apple products including computers and tablets, but not the iPhone (which is often sold via mobile phone distributors and carriers). Apple is being ordered to pay up €1.1 billion ($1.2 billion), while Tech Data was fined €76.1 million and Ingram Micro €62.9 million in the fine. 

Together, the three have achieved the dubious distinction of getting the highest-ever fine for anti-competitive sales tactics.

“During this case, the Authority deciphered the very specific practices that had been implemented by Apple for the distribution of its products in France (excluding Iphones), such as the iPad,” said Isabelle de Silva, President of the French Competition Authority, in a statement. “Given the strong impact of these practices on competition in the distribution of Apple products via Apple premium resellers, the Authority imposes the highest penalty ever pronounced in a case (€1.24 billion). It is also the heaviest sanction pronounced against an economic player, in this case Apple (1.1 billion euros), whose extraordinary dimension has been duly taken into account. Finally, the Authority considered that, in the present case, Apple had committed an abuse of economic dependence on its premium retailers, a practice which the Authority considers to be particularly serious ”.

We have contacted Apple for a response and will update this post as we learn more.

The announcement follows reports last week that the fine was forthcoming, and caps off years of work: investigations into the case started as far back as 2012, in the wake of the collapse of Apple’s biggest seller in France, eBizcuss, in 2011, and a subsequent lawsuit filed by the company accusing Apple of starving it of inventory after its CEO publicly accused the company of unfair price competition. Litigation related to that case ended in 2017.

At issue in the case are the three kinds of resellers that typically distribute Apple-branded technology: large retailers (such as mega-supermarkets and big-box retailers), of which there are about 1,800 in France; smaller resellers that tend to be independent businesses that also provide services alongside sales (these tend not to be the norm in the US but are still common in Europe, albeit less so in countries like the UK); and Apple itself, by way of its Apple Stores online and in shopping areas. Apple issues “authorised” and “premium” badges to its resellers, giving the latter special access to products and services provided they play by more specific rules in how they sell and price items. It’s this latter category that has been at issue in this case. EBizcuss was an example of the latter.

The competition commissioner noted that Apple and its partners violated three specific areas:

— Apple and the two wholesalers agreed not to compete with each other and also to prevent other distributors to compete on price, “thereby sterilizing the wholesale market for Apple products.”

— Secondly, premium distributors were forced to keep prices high to keep them at the same level as those of integrated distributors.

— Third, Apple has “abused the economic dependence” of these premium distributors, by subjecting them to unfair and unfavorable commercial conditions compared to its network of integrated distributors. (These last two points relate specifically to the accusations eBizcuss had lodged against the company.)

The commission notes that Apple’s actions resulted in “supply difficulties, discriminatory treatment, unstable conditions of remuneration for their activity (discounts and in progress),” which in turn had an effect on squeezing their margins.

“The Authority thus noted that, during the launch of new products, the APRs were deprived of stocks so that they could not respond to orders placed with them, while the network of Apple Stores and retailers was regularly supplied. This has resulted in a loss of customers, including regular customers. They have even sometimes been forced, to respond to an order, to source themselves from other distribution channels, for example by ordering themselves directly from an Apple Store as an end customer would have done in order to to supply their customers.”

While Apple may try to appeal the fine, what will be most interesting to see is how and if the actions affect how the company’s products are priced going forward. Apple has long cultivated a premium image with higher prices than many others on comparable consumer electronics. While it has always been essential to the company to have a wide distribution network, that’s clearly had the effect of making it harder for it to control premium pricing, one reason why it has made such a big push to expand its own direct retail operation. The case in France highlights the generational shift that’s been taking place for years, and while it may be a thorn in Apple’s side, I can’t help but wonder if it will simply signal the company moving even more aggressively to continue bringing more of its sales under its own roof.

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Workers at America’s largest companies are not covered under coronavirus aid package

Workers at America’s largest companies are not covered under a bill passed by the House of Representatives on Friday that is supposed to support American workers impacted by the spread of the novel coronavirus.

The bill still has to be voted on by the Senate and approved before it can be signed into law, but its structure leaves a gaping hole in the prevention strategy the government has said is necessary to reduce the COVID-19 outbreak in the US.

“No American worker should worry about missing a paycheck if they’re feeling ill,” said Vice President Mike Pence at the Sunday press briefing from the Coronavirus Task Force. “If you’re sick with a respiratory illness stay home.”

However, millions of Americans potentially don’t have the ability to make that choice under the congressional aid package touted by both Democrats and Republicans. By excluding companies with more than 500 employees from the Congressional aid, the health and welfare of millions of Americans in industries providing goods, manufacturing, and vital services to most of the country is being left up to the discretion of their employers.

Details of the legislative compromise were first reported by The New York Times yesterday. And chart published by The New York Times illustrated just how many companies didn’t have paid sick leave policies in place as the coronavirus began to spread in the US (companies have changed policies to respond to the coronavirus).

Image courtesy of The New York Times

As part of a brokered agreement between House Democrats and the White House, a bid to include guaranteed paid time off or sick leave for every U.S. worker affected by the coronavirus outbreak was rejected. Instead, these protections were replaced with tax breaks, which would be distributed to most small and medium-sized businesses to cover the costs of paying employees during business shutdowns or health care emergencies brought on by the novel coronavirus.

Big technology companies took the lead early this month in changing policies for their workers and by the end of last week many of the country’s largest employers had followed suit. But it looks like their work won’t be covered under the government’s current plan — and that any measures to extend sick leave and paid time off will be limited to a response to the current outbreak.

Big tech commits to paying wages for hourly employees affected by coronavirus plans

These large employers have already responded by closing stores or reducing hours in areas where most cases of the novel coronavirus have been diagnosed — and companies operating in most of those states are required by law to offer paid leave to their hourly employees and contractors.

Companies who have responded to the outbreak by changing their time-off and sick leave policies include Walmart, Target, Darden Restaurants (the owner of the Olive Garden restaurant chain), Starbucks, Lowes, and KFC, have joined tech companies and gig economy businesses like Alphabet (the parent company of Google), Amazon, Apple, Facebook, Instacart, Microsoft, Postmates, Salesforce, and Uber in offering extended leave benefits to employees affected by the coronavirus.

These kinds of guarantees can go a long way to ensuring that hourly workers in the country don’t have to choose between their health and their employment. The inability to pass a law that would cover all workers puts everyone at risk.

Without government stepping in, industries are crafting their own responses. Late Sunday, automakers including GM, Ford, and FiatChrysler joined the United Auto Workers union in announcing the creation of a coronavirus task force to coordinate an industrywide response for the automotive sector.

GM, Ford, Fiat Chrysler join UAW to form coronavirus task force

As the Pew Research Center noted last week, the bill proposed by House Democrats had initially proposed temporary federal sick leave covering workers with COVID-19 or caring for family members with two-thirds of their wages for up to three months; expiring in January 2021. The measure would have also guaranteed private employers give workers seven days of paid sick leave with another 14 days available immediately in the event of future public health emergencies.

Most workers have less than nine days of sick leave covered under current state legislation. There is no national mandate for paid sick leave. After one year on the job, 22 percent of workers have access to less than five days, while another 46 percent of employees can get five-to-nine days of paid sick leave. Only 38 percent of workers have between ten and fourteen days of leave.

The Pew Research Center also reported that the lack of access to paid sick leave increases as wages decline. Over ninety percent of workers receiving hourly rages over $32.21 have some form of paid sick leave. Only about 50 percent of workers who make $13.80 or less have access to some form of paid sick leave. For Americans who make under $10.80 an hour, only about 30 percent receive any sick leave.

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Apple sets restrictions for COVID-19-related apps

Apple today put in place more COVID-19-related safeguards — this time centered on its App Store. In a note posted to its developer community, the company explains that it will take steps to vet submissions of apps focused on the global pandemic that has begun to impact nearly every aspect of life across the globe.

“To help fulfill these expectations, we’re evaluating apps critically to ensure data sources are reputable and that developers presenting these apps are from recognized entities such as government organizations, health-focused NGOs, companies deeply credentialed in health issues, and medical or educational institutions,” the company explains. “Only developers from one of these recognized entities should submit an app related to COVID-19.”

In addition to assessing content and restricting the number of developers who can submit, the company is also barring the release of entertainment apps and games looking to capitalizing on the ubiquitous and life-threatening subject matter.

Apple has also asked developers to tick the “Time-Sensitive Event” option, in order to help expedite the submission, given that some may be aimed at helping users in time of crisis. The company will also be waiving some annual membership fees for non-profit orgs and government agencies looking to develop apps related to the outbreak.

A cursory search of “COVID” and “coronavirus” finds a number of apps using the terms, ranging from case trackers, news applications, a reminder to wash hands and some gaming titles.

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This Week in Apps: WWDC goes online, coronavirus leads to more cancellations, sneaky spy apps exposed

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 is as hot as ever, with a record 204 billion downloads in 2019 and $120 billion in consumer spending in 2019, according to App Annie’s recently released “State of Mobile” annual report. People are now spending 3 hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week we’re taking a look at several stories related to the coronavirus outbreak, including the cancellation of WWDC in San Jose, as well as other app industry events that are going online. We’re also discussing the iOS 14 leak, the exposure of Sensor Tower’s app network, a potential ban on TikTok for government workers and more.

Coronavirus Special Coverage

The impacts of the COVID-19 pandemic are continuing to play out on app stores and across the industry. This week, we’re leading with these stories followed by the other — and yes, still important — news.

Apple finally cancels its WWDC event in San Jose

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An Apple Store employee on leave has tested positive for COVID-19 in Santa Monica

An Apple Store employee who was on leave from the Third St. Promenade store in Santa Monica, California tested positive for COVID-19 late yesterday. The employee had been on leave to care for a relative since March 2nd.

Apple consulted health experts and deep cleaned the Third St. store which remains open. Apple says that it has also instituted additional deep cleaning protocols and taken measures to reduce density by cancelling Today at Apple sessions and spacing out Genius Bar appointments.

As of March 4, Los Angeles County had declared a local emergency and on March 11th CA Governor Gavin Newsom recommended against large scale events. The city of Santa Monica cancelled all public gatherings as of March 12. Apple’s home county of Santa Clara had announced 66 total confirmed cases of coronavirus as of yesterday and issued an order to cancel mass gatherings over 1,000 people for three weeks. Yesterday’s biggest closure news, though, came from Disney, which announced that Walt Disney World, Disneyland in California and Disneyland Paris would all close for several weeks.

We received a full statement from Apple regarding the employee as follows:

“Apple’s first priority — now and always — is the health and safety of our employees, customers and the communities we serve. An employee at our Third St. Promenade store in Santa Monica informed us they had tested positive for COVID-19 late yesterday. The employee has not been to the store since taking leave on March 2 to care for a relative.

In consultation with health experts, we’ve taken a number of steps to protect our teams and customers. All our stores around the world have increased deep cleaning protocols and we have actively reduced customer density in all stores worldwide by cancelling Today at Apple sessions and creating extra space for Genius Bar appointments. As a precaution, we also undertook an additional extensive deep clean overnight before reopening the Third St. Promenade store.

We recognize this is a challenging and ever changing time for our global community and our thoughts are with those around the world personally affected by COVID-19 and the heroic medical professionals and researchers fighting it.”

Many Apple Stores around the world remain open, while others have been closed in alignment with local regulations amid coronavirus concerns. The additional cleaning protocols have been in use since February at Apple Stores worldwide. In addition, Apple has closed its stores in Italy, which remains on lockdown. The last of Apple’s 42 stores in mainland China re-opened today with limited hours after closures.

Apple has extended additional sick time to all employees and any employee with symptoms similar to COVID-19 will be paid for sick time as long as they are out. I also understand that Apple Store managers are being as flexible as possible with concerned employees who are not yet sick though no official policies have been issued.

I asked Apple for comment on whether it was considering closing any retail stores in the US but it would not comment at this time. One would absolutely have to imagine that it was monitoring all of this very closely though. And given that it has proven willing to close every store in China and Italy due to conditions, it would probably do the same in the US.

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5G devices were less than 1% of US smartphone purchases in 2019

No surprise, really, that 5G smartphone sales are on the way up. Frankly, there’s really no other way to go, according to the latest numbers from NPD’s Mobile Phone Tracking. The firm noted that 5G handsets accounted for less than 1% of total sales in the U.S.

The hurdles are also what you’d expect: namely, pricing and the lack of 5G availability. There’s also the fact that for much of 2019, there simply weren’t that many phones to purchase. When the devices did start arriving from companies like LG, Samsung and OnePlus, the numbers started trending upward, with an increase of roughly 9x from the first to the second half of the year.

Awareness, too, increased notably. Some nine in 10 surveyed consumers in the U.S. had some familiarity with 5G in the second half of the year, up from 73% in the first half. Meanwhile, 65% expressed “interest” in purchasing the tech. How that translates to actual sales, however, is another question entirely.

That should improve as the price of manufacturing these devices comes down, thanks to lower-cost components from companies like Qualcomm. And in markets like the U.S., 5G coverage will be greatly expanded by year’s end, making it a much more appealing purchase. And, of course, never underestimate the impact of Apple’s first 5G iPhone.

Smartphone manufacturers have very much been banking on the increased interest in 5G to help correct the larger trend of flagging sales.

Of course, it remains to be seen how COVID-19 will impact sales. It seems safe to assume that, like every aspect of our lives, there will be a notable impact on the number of people buying expensive smartphones. Certainly things like smartphone purchases tend to lessen in importance in the face of something like a global pandemic.

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