Apple now says its retail stores are closed “until further notice”

Apple appears to be expecting a longer disruption to shopping at its physical retail stores as a result of the public health crisis posed by the COVID-19 pandemic.

Earlier this week, in a press release, the iPhone maker said it would be closing retails stores outside China until March 27. A note on its website now says the shut down is open ended. Apple writes that the bricks-and-mortar stores “are closed until further notice” — so at very least it’s signalling to customers to expect ongoing disruption to its retail business as usual.

Those looking to buy Apple products are told to shop on the website. Service and support is also offered online or via telephone.

We’ve reached out to Apple to ask for confirmation on a policy change.

In its March 13 missive, the company wrote that it is committed to paying all its hourly workers as if the stores remained open, and also said it was expanding its leave policies to “accommodate personal or family health circumstances created by COVID-19”.

Late yesterday six Bay Area countries issued a ‘shelter in place’ order to restrict potential spread of the novel coronavirus. Additional measures seem likely in the coming days.

Multiple countries in European Union have already ordered the closure of non-essential shops — instructing residents to stay at home unless they need to venture out to obtain essential supplies or are required to work and cannot work from home.

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Apple now says its retail stores are closed “until further notice”

Apple appears to be expecting a longer disruption to shopping at its physical retail stores as a result of the public health crisis posed by the COVID-19 pandemic.

Earlier this week, in a press release, the iPhone maker said it would be closing retails stores outside China until March 27. A note on its website now says the shut down is open ended. Apple writes that the bricks-and-mortar stores “are closed until further notice” — so at very least it’s signalling to customers to expect ongoing disruption to its retail business as usual.

Those looking to buy Apple products are told to shop on the website. Service and support is also offered online or via telephone.

We’ve reached out to Apple to ask for confirmation on a policy change.

In its March 13 missive, the company wrote that it is committed to paying all its hourly workers as if the stores remained open, and also said it was expanding its leave policies to “accommodate personal or family health circumstances created by COVID-19”.

Late yesterday six Bay Area countries issued a ‘shelter in place’ order to restrict potential spread of the novel coronavirus. Additional measures seem likely in the coming days.

Multiple countries in European Union have already ordered the closure of non-essential shops — instructing residents to stay at home unless they need to venture out to obtain essential supplies or are required to work and cannot work from home.

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YC-backed EduRev wants to democratize online learning in India

As edtech startups emerge and expand in India, millions of students in the country now have an additional option to choose from when they prepare for competitive exams.

But despite the proliferation of cheap Android handsets and availability of some of the world’s cheapest mobile data plans, online learning platforms in India are struggling to appeal to the masses because their offering is too expensive for many.

EduRev, a Y Combinator-backed startup (W20), thinks it can address this. The three-year-old startup offers an all-you-can watch catalog in a Netflix-esque fashion that costs between $20 to $50 a year — compared to anything between $300 to $4,000 that other platforms charge.

The startup has partnered with teachers around the country to make their classes — aimed at primary school to high-school and to students preparing for undergraduate-level course — available on the platform.

Students can come and consume some of this content — which includes notes, previous year exam papers, mock tests, and class videos — for no charge, but access to full-course and additional catalogs requires becoming a subscriber, explained Kunaal Satija, co-founder of EduRev, in an interview with TechCrunch.

“Most of the classes in India are not efficient. The vast majority of students are not really learning much. There is also a severe lack of good teachers in the country. And if offline to online transition did not already have a learning curve attached to it, it is also expensive,” he said.

To replicate the traditional learning experience, EduRev also has a social aspect to it. Students can follow their friends and track their progress and participate in helping other students clear their doubts and pose their own questions. These features are available to non-paying users as well.

The price and wider-catalog availability, Satija said, has helped the startup gain millions of users. The platform has amassed over 5 million registered users, more than 1.5 million of which come to the platform each month, he said.

He declined to share how many paying users EduRev currently has, but said the startup has been operationally profitable for last four months.

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Amazon CEO Jeff Bezos has been in regular contact with the White House on coronavirus pandemic

During a White House briefing on Monday detailing new recommendations regarding public health from the administration’s coronavirus task force and the CDC, President Trump was asked by a member of the press corps about reports that the White House is in “daily” contact with Amazon CEO Jeff Bezos regarding the COVID-19 epidemic.

Trump’s answer wasn’t exactly a clear confirmation, but did seem to indicate that the Amazon founder and chief executive has been working with the White House in some capacity as the situation develops. Upon request for clarification, an Amazon spokesperson confirmed to TechCrunch that “Jeff Bezos has been in contact with the White House” regarding the coronavirus epidemic.

“Well I’ve heard that’s true,” Trump said during the briefing. “I don’t know that for a fact. But I know that some of my people have, as I understand it, been dealing with them or with him. And that’s nice. We’ve had tremendous support from a lot of people that can help, and I believe he was one of them.”

Last week, Fox Business first reported that the White House would be meeting with large tech companies in an effort to help coordinate efforts to contain the virus, and that those meetings would include Facebook, Google, Amazon, Twitter, Apple and Microsoft.

It’s still not clear in what capacity Bezos is working with the White House on the coronavirus pandemic, but Amazon is clearly feeling the impact of the global virus outbreak, including a surge in demand that’s led to it seek to hire 100,000 additional employees for warehouse and delivery in the U.S.

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You can ask to skip your Apple Card payment for March, Apple tells customers

Apple and Goldman Sachs will allow Apple Card holders to skip their March payment without incurring interest by signing up for a Customer Assistance Program, Apple is informing its customers. Existing cardholders were alerted to the option via an email sent out over the weekend which explains that, in light of the challenges posed by the COVID-19 situation, some customers may have trouble making their usual payment.

“Apple Card is committed to helping you lead a healthier financial life,” the email said.

To join the Customer Assistance Program, Apple Card customers can either click the link in the email (here) or message or call an Apple support rep directly through the Apple Wallet app.

The process of joining the program via iMessage is fairly simple. After clicking the link, an automated message responds: “We understand how difficult this could be for you, and we want to help.”

You’re then directed to connect with Goldman Sachs to continue enrollment.

After clicking on the link that’s sent, you receive a second automated iMessage text that explains what the Customer Assistance Program offers — specifically, a way to skip a payment without incurring interest. It then asks if you’d like to join.

Once you request to join, Apple says you can expect to receive a confirmation email in the next few days when your enrollment is complete. No further action is needed.

Though the sign-up process is straightforward — and even easier through iMessage than having to place a call — it’s harder to get questions about the program answered via iMessage chat. In a test, we asked the Apple chatbot a question, and it said: “Let me get you to an Apple Specialist at Goldman Sachs.” That was over an hour ago, as of the time of writing, and no support rep has yet to answer.

Getting personal support via the provided phone number (1-877-255-5923) was much easier, despite what one rep described as a “surge” in call volumes. After you’re informed of the option to join the program via the automated phone system, you can opt to press 2 to connect to a support rep directly. Surprisingly, there was little hold time as of this afternoon — a rep answered almost right away.

We understand the program doesn’t have any sort of limit in terms of the balance on your card at the time you’re requesting a waiver. But reps couldn’t provide any information as to how asking for a waiver would impact your credit report or score. During natural disasters, however, there’s a process for lenders to flag customers who have been affected so non-payments won’t negatively damage their credit.

Reps also couldn’t say if the program would continue into April, as that’s not something that’s been decided yet.

Apple Card isn’t the only card waiving payments.

Citi said earlier this month it had assistance programs in place for customers, including credit-line increases and collection forbearance. PNC Bank, Capital One, Bank of America, Chase, Discover, U.S. Bank, Wells Fargo, Fifth Third, and others, also recently alerted customers about their respective offers to help during the coronavirus outbreak.

Amex told us it’s helping customers, too, when asked.

“American Express is ready to assist our customers having financial difficulties due to the effects of COVID-19. They can reach our Customer Care Professionals anytime by calling the number on the back of their card or through our digital servicing channels – online chat or the Amex app,” a spokesperson said. The company said it would work with customers individually on things like waiving late fees, return check fees, and interest charges.

“We have several financial hardship programs offering a range of short-term to long-term assistance,” they added.

According to NerdWallet’s guide to protecting your finances during the coronavirus outbreak, several other lenders and credit card issuers may be working with customers on an individual basis, too.

“Besides working with customers on a one-on-one basis, some banks are making some changes across the board. Citi, for example, began waiving a number of fees on March 9 for 30 days, including bank account monthly service fees and penalties on early CD withdrawals,” a NerdWallet spokesperson noted. “Take advantage of these offerings if you need help, because they can take some of the burden off your plate and give you time to regroup and create a plan for yourself going forward,” they said.

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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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