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Apple sheds value during iPhone event
The TechCrunch crew is hard at work writing up the latest from Apple’s iPhone, iPad and Apple Watch event. They have good notes on the megacorp’s hardware updates. But what are the markets saying about the same array of products?
For those of us more concerned with effective S&P dividend yields than screen nit levels, events like Apple’s confab are more interesting for what they might mean for the value of the hosting company than how many GPUs a particular smartphone model has. And, for once, Apple’s stock may have done something a little interesting during the event!
Observe the following chart:
Image Credits: TechCrunch/Y Charts
This is a one-day chart, mind, so we’re looking at intraday changes. We’re zoomed in. And Apple kinda took a bit of a dive during its event that kicked off at 1 p.m. in the above chart.
Normally nothing of import happens to Apple’s shares during its presentations. Which feels weird, frankly, as Apple events detail the product mix that will generate hundreds of billions in revenue. You’d think that they would have more impact than their usual zero.
But today, we had real share price movement when the event wrapped around 2 p.m. ET. Perhaps investors were hoping for more pricey devices? Or were hoping Apple had more up its sleeve? How you rate that holiday Apple product lineup is a matter of personal preference, but investors appear to have weighed in slightly to the negative.
Worth around $2.5 trillion, each 1% that Apple’s stock moves is worth $10 billion. Apple’s loss of 1.5% today — more or less; trading continues as I write this — is worth more than Mailchimp. It’s a lot of money.
You can read the rest of our coverage from the Apple event here. Enjoy!
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This Week in Apps: In-app events hit the App Store, TikTok tries Stories, Apple reveals new child safety plan
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place, with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters
Top Stories
Apple to scan for CSAM imagery
Apple announced a major initiative to scan devices for CSAM imagery. The company on Thursday announced a new set of features, arriving later this year, that will detect child sexual abuse material (CSAM) in its cloud and report it to law enforcement. Companies like Dropbox, Google and Microsoft already scan for CSAM in their cloud services, but Apple had allowed users to encrypt their data before it reached iCloud. Now, Apple’s new technology, NeuralHash, will run on users’ devices, tatformso detect when a users upload known CSAM imagery — without having to first decrypt the images. It even can detect the imagery if it’s been cropped or edited in an attempt to avoid detection.
Meanwhile, on iPhone and iPad, the company will roll out protections to Messages app users that will filter images and alert children and parents if sexually explicit photos are sent to or from a child’s account. Children will not be shown the images but will instead see a grayed-out image instead. If they try to view the image anyway through the link, they’ll be shown interruptive screens that explain why the material may be harmful and are warned that their parents will be notified.
Some privacy advocates pushed back at the idea of such a system, believing it could expand to end-to-end encrypted photos, lead to false positives, or set the stage for more on-device government surveillance in the future. But many cryptology experts believe the system Apple developed provides a good balance between privacy and utility, and have offered their endorsement of the technology. In addition, Apple said reports are manually reviewed before being sent to the National Center for Missing and Exploited Children (NCMEC).
The changes may also benefit iOS developers who deal in user photos and uploads, as predators will no longer store CSAM imagery on iOS devices in the first place, given the new risk of detection.
In-App Events appear on the App Store
Image Credits: Apple
Though not yet publicly available to all users, those testing the new iOS 15 mobile operating system got their first glimpse of a new App Store discovery feature this week: “in-app events.” First announced at this year’s WWDC, the feature will allow developers and Apple editors alike to showcase directly on the App Store upcoming events taking place inside apps.
The events can appear on the App Store homepage, on the app’s product pages or can be discovered through personalized recommendations and search. In some cases, editors will curate events to feature on the App Store. But developers will also be provided tools to submit their own in-app events. TikTok’s “Summer Camp” for creators was one of the first in-app events to be featured, where it received a top spot on the iPadOS 15 App Store.
Weekly News
Platforms: Apple
Apple expands support for student IDs on iPhone and Apple Watch ahead of the fall semester. Tens of thousands more U.S. and Canadian colleges will now support mobile student IDs in the Apple Wallet app, including Auburn University, Northern Arizona University, University of Maine, New Mexico State University and others.
Apple was accused of promoting scam apps in the App Store’s featured section. The company’s failure to properly police its store is one thing, but to curate an editorial list that actually includes the scams is quite another. One of the games rounded up under “Slime Relaxations,” an already iffy category to say the least, was a subscription-based slime simulator that locked users into a $13 AUD per week subscription for its slime simulator. One of the apps on the curated list didn’t even function, implying that Apple’s editors hadn’t even tested the apps they recommend.
Tax changes hit the App Store. Apple announced tax and price changes for apps and IAPs in South Africa, the U.K. and all territories using the Euro currency, all of which will see decreases. Increases will occur in Georgia and Tajikistan, due to new tax changes. Proceeds on the App Store in Italy will be increased to reflect a change to the Digital Services Tax effective rate.
Game Center changes, too. Apple said that on August 4, a new certificate for server-based Game Center verification will be available via the publicKeyUrl.
Fintech
Robinhood stock jumped more than 24% to $46.80 on Tuesday after initially falling 8% on its first day of trading last week, after which it had continued to trade below its opening price of $38.
Square’s Cash app nearly doubled its gross profit to $546 million in Q2, but also reported a $45 million impairment loss on its bitcoin holdings.
Coinbase’s app now lets you buy your cryptocurrency using Apple Pay. The company previously made its Coinbase Card compatible with Apple Pay in June.
Social
An anonymous app called Sendit, which relies on Snap Kit to function, is climbing the charts of the U.S. App Store after Snap suspended similar apps, YOLO and LMK. Snap was sued by the parent of child who was bullied through those apps, which led to his suicide. Sendit also allows for anonymity, and reviews compare it to YOLO. But some reviews also complained about bullying. This isn’t the first time Snap has been involved in a lawsuit related to a young person’s death related to its app. The company was also sued for its irresponsible “speed filter” that critics said encouraged unsafe driving. Three young men died using the filter, which captured them doing 123 mph.
TikTok is testing Stories. As Twitter’s own Stories integrations, Fleets, shuts down, TikTok confirmed it’s testing its own Stories product. The TikTok Stories appear in a left-hand sidebar and allow users to post ephemeral images or video that disappear in 24 hours. Users can also comment on Stories, which are public to their mutual friends and the creator. Stories on TikTok may make more sense than they did on Twitter, as TikTok is already known as a creative platform and it gives the app a more familiar place to integrate its effects toolset and, eventually, advertisements.
Facebook has again re-arranged its privacy settings. The company continually moves around where its privacy features are located, ostensibly to make them easier to find. But users then have to re-learn where to go to find the tools they need, after they had finally memorized the location. This time, the settings have been grouped into six top-level categories, but “privacy” settings have been unbundled from one location to be scattered among the other categories.
A VICE report details ban-as-a-service operations that allow anyone to harass or censor online creators on Instagram. Assuming you can find it, one operation charged $60 per ban, the listing says.
TikTok merged personal accounts with creator accounts. The change means now all non-business accounts on TikTok will have access to the creator tools under Settings, including Analytics, Creator Portal, Promote and Q&A. TikTok shared the news directly with subscribers of its TikTok Creators newsletter in August, and all users will get a push notification alerting them to the change, the company told us.
Discord now lets users customize their profile on its apps. The company added new features to its iOS and Android apps that let you add a description, links and emojis and select a profile color. Paid subscribers can also choose an image or GIF as their banner.
Twitter Spaces added a co-hosting option that allows up to two co-hosts to be added to the live audio chat rooms. Now Spaces can have one main host, two co-hosts and up to 10 speakers. Co-hosts have all the moderation abilities as hosts, but can’t add or remove others as co-hosts.
Messaging
Tencent reopened new user sign-ups for its WeChat messaging app, after having suspended registrations last week for unspecified “technical upgrades.” The company, like many other Chinese tech giants, had to address new regulations from Beijing impacting the tech industry. New rules address how companies handle user data collection and storage, antitrust behavior and other checks on capitalist “excess.” The gaming industry is now worried it’s next to be impacted, with regulations that would restrict gaming for minors to fight addiction.
WhatsApp is adding a new feature that will allow users to send photos and videos that disappear after a single viewing. The Snapchat-inspired feature, however, doesn’t alert you if the other person takes a screenshot — as Snap’s app does. So it may not be ideal for sharing your most sensitive content.
Telegram’s update expands group video calls to support up to 1,000 viewers. It also announced video messages can be recorded in higher quality and can be expanded, regular videos can be watched at 0.5 or 2x speed, screen sharing with sound is available for all video calls, including 1-on-1 calls, and more.
Streaming & Entertainment
American Airlines added free access to TikTok aboard its Viasat-equipped aircraft. Passengers will be able to watch the app’s videos for up to 30 minutes for free and can even download the app if it’s not already installed. After the free time, they can opt to pay for Wi-Fi to keep watching. Considering how easy it is to fall into multi-hour TikTok viewing sessions without knowing it, the addition of the addictive app could make long plane rides feel shorter. Or at least less painful.
Chinese TikTok rival Kuaishou saw stocks fall by more than 15% in Hong Kong, the most since its February IPO. The company is another victim of an ongoing market selloff triggered by increasing investor uncertainty related to China’s recent crackdown on tech companies. Beijing’s campaign to rein in tech has also impacted Tencent, Alibaba, Jack Ma’s Ant Group, food delivery company Meituan and ride-hailing company Didi. Also related, Kuaishou shut down its controversial app Zynn, which had been paying users to watch its short-form videos, including those stolen from other apps.
Twitch overtook YouTube in consumer spending per user in April 2021, and now sees $6.20 per download as of June compared with YouTube’s $5.60, Sensor Tower found.
Image Credits: Sensor Tower
Spotify confirmed tests of a new ad-supported tier called Spotify Plus, which is only $0.99 per month and offers unlimited skips (like free users get on the desktop) and the ability to play the songs you want, instead of only being forced to use shuffle mode.
The company also noted in a forum posting that it’s no longer working on AirPlay2 support, due to “audio driver compatibility” issues.
Mark Cuban-backed audio app Fireside asked its users to invest in the company via an email sent to creators which didn’t share deal terms. The app has yet to launch.
YouTube kicks off its $100 million Shorts Fund aimed at taking on TikTok by providing creators with cash incentives for top videos. Creators will get bonuses of $100 to $10,000 based on their videos’ performance.
Dating
Match Group announced during its Q2 earnings it plans to add to several of the company’s brands over the next 12 to 24 months audio and video chat, including group live video, and other livestreaming technologies. The developments will be powered by innovations from Hyperconnect, the social networking company that this year became Match’s biggest acquisition to date when it bought the Korean app maker for a sizable $1.73 billion. Since then, Match was spotted testing group live video on Tinder, but says that particular product is not launching in the near-term. At least two brands will see Hyperconnect-powered integrations in 2021.
Photos
The Photo & Video category on U.S. app stores saw strong growth in the first half of the year, a Sensor Tower report found. Consumer spend among the top 100 apps grew 34% YoY to $457 million in Q2 2021, with the majority of the revenue (83%) taking place on iOS.
Image Credits: Sensor Tower
Gaming
Epic Games revealed the host of its in-app Rift Tour event is Ariana Grande, in the event that runs August 6-8.
Pokémon GO influencers threatened to boycott the game after Niantic removed the COVID safety measures that had allowed people to more easily play while social distancing. Niantic’s move seemed ill-timed, given the Delta variant is causing a new wave of COVID cases globally.
Health & Fitness
Apple kicked out an app called Unjected from the App Store. The new social app billed itself as a community for the unvaccinated, allowing like-minded users to connect for dating and friendships. Apple said the app violated its policies for COVID-19 content.
Google Pay expanded support for vaccine cards. In Australia, Google’s payments app now allows users to add their COVID-19 digital certification to their device for easy access. The option is available through Google’s newly updated Passes API which lets government agencies distribute digital versions of vaccine cards.
COVID Tech Connect, a U.S. nonprofit initially dedicated to collecting devices like phones and tablets for COVID ICU patients, has now launched its own app. The app, TeleHome, is a device-agnostic, HIPAA-compliant way for patients to place a video call for free at a time when the Delta variant is again filling ICU wards, this time with the unvaccinated — a condition that sometimes overlaps with being low-income. Some among the working poor have been hesitant to get the shot because they can’t miss a day of work, and are worried about side effects. Which is why the Biden administration offered a tax credit to SMBs who offered paid time off to staff to get vaccinated and recover.
Popular journaling app Day One, which was recently acquired by WordPress.com owner Automattic, rolled out a new “Concealed Journals” feature that lets users hide content from others’ viewing. By tapping the eye icon, the content can be easily concealed on a journal by journal basis, which can be useful for those who write to their journal in public, like coffee shops or public transportation.
Edtech
Recently IPO’d language learning app Duolingo is developing a math app for kids. The company says it’s still “very early” in the development process, but will announce more details at its annual conference, Duocon, later this month.
Educational publisher Pearson launched an app that offers U.S. students access to its 1,500 titles for a monthly subscription of $14.99. the Pearson+ mobile app (ack, another +), also offers the option of paying $9.99 per month for access to a single textbook for a minimum of four months.
News & Reading
Quora jumps into the subscription economy. Still not profitable from ads alone, Quora announced two new products that allow its expert creators to monetize their content on its service. With Quora+ ($5/mo or $50/yr), subscribers can pay for any content that a creator paywalls. Creators can choose to enable a adaptive paywall that will use an algorithm to determine when to show the paywall. Another product, Spaces, lets creators write paywalled publications on Quora, similar to Substack. But only a 5% cut goes to Quora, instead of 10% on Substack.
Utilities
Google Maps on iOS added a new live location-sharing feature for iMessage users, allowing them to more easily show your ETA with friends and even how much battery life you have left. The feature competes with iMessage’s built-in location-sharing feature, and offers location sharing of 1 hour up to 3 days. The app also gained a dark mode.
Security & Privacy
Controversial crime app Citizen launched a $20 per month “Protect” service that includes live agent support (who can refer calls to 911 if need be). The agents can gather your precise location, alert your designated emergency contacts, help you navigate to a safe location and monitor the situation until you feel safe. The system of live agent support is similar to in-car or in-home security and safety systems, like those from ADT or OnStar, but works with users out in the real world. The controversial part, however, is the company behind the product: Citizen has been making headlines for launching private security fleets outside law enforcement, and recently offered a reward in a manhunt for an innocent person based on unsubstantiated tips.
Funding and M&A
Square announced its acquisition of the “buy now, pay later” giant AfterPay in a $29 billion deal that values the Australian firm at more than 30% higher than the stock’s last closing price of AUS$96.66. AfterPay has served over 16 million customers and nearly 100,000 merchants globally, to date, and comes at a time when the BNPL space is heating up. Apple has also gotten into the market recently with an Affirm partnership in Canada.
Gaming giant Zynga acquired Chinese game developer StarLark, the team behind the mobile golf game Golf Rival, from Betta Games for $525 million in both cash and stock. Golf Rival is the second-largest mobile golf game behind Playdemic’s Golf Clash, and EA is in the process of buying that studio for $1.4 billion.
U.K.-based Humanity raised an additional $2.5 million for its app that claims to help slow down aging, bringing the total raise to date to $5 million. Backers include Calm’s co-founders, MyFitness Pal’s co-founder and others in the health space. The app works by benchmarking health advice against real-world data, to help users put better health practices into action.
YELA, a Cameo-like app for the Middle East and South Asia, raised $2 million led by U.S. investors that include Tinder co-founder Justin Mateen and Sean Rad, general partner of RAD Fund. The app is focusing on signing celebrities in the regions it serves, where smartphone penetration is high and over 6% of the population is under 35.
London-based health and wellness app maker Palta raised a $100 million Series B led by VNV Global. The company’s products include Flo.Health, Simple Fasting, Zing Fitness Coach and others, which reach a combined 2.4 million active, paid subscribers. The funds will be used to create more mobile subscription products.
Emoji database and Wikipedia-like site Emojipedia was acquired by Zedge, the makers of a phone personalization app offering wallpapers, ringtones and more to 35 million MAUs. Deal terms weren’t disclosed. Emojipedia says the deal provides it with more stability and the opportunity for future growth. For Zedge, the deal provides
….um, a popular web resource it thinks it can better monetize, we suspect.
Mental health app Revery raised $2 million led by Sequoia Capital India’s Surge program for its app that combines cognitive behavioral therapy for insomnia with mobile gaming concepts. The company will focus on other mental health issues in the future.
London-based Nigerian-operating fintech startup Kuda raised a $55 million Series B, valuing its mobile-first challenger bank at $500 million. The inside round was co-led by Valar Ventures and Target Global.
Vietnamese payments provider VNLife raised $250 million in a round led by U.S.-based General Atlantic and Dragoneer Investment Group. PayPal Ventures and others also participated. The round values the business at over $1 billion.
Downloads
Mastodon for iPhone
Fans of decentralized social media efforts now have a new app. The nonprofit behind the open source decentralized social network Mastodon released an official iPhone app, aimed at making the network more accessible to newcomers. The app allows you to find and follow people and topics; post text, images, GIFs, polls, and videos; and get notified of new replies and reblogs, much like Twitter.
Xingtu
@_666eveITS SO COOL FRFR do u guys want a tutorial? #fypシ #醒图 #醒图app♬ original sound – Ian Asher
TikTok users are teaching each other how to switch over to the Chinese App Store in order to get ahold of the Xingtu app for iOS. (An Android version is also available.) The app offers advanced editing tools that let users edit their face and body, like FaceTune, apply makeup, add filters and more. While image-editing apps can be controversial for how they can impact body acceptance, Xingtu offers a variety of artistic filters which is what’s primarily driving the demand. It’s interesting to see the lengths people will go to just to get a few new filters for their photos — perhaps making a case for Instagram to finally update its Post filters instead of pretending no one cares about their static photos anymore.
Tweets
Facebook still dominating top charts, but not the No. 1 spot:
Not cool, Apple:
This user acquisition strategy:
Maybe Stories don’t work everywhere:
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Apple’s RealityKit 2 allows developers to create 3D models for AR using iPhone photos
At its Worldwide Developers Conference, Apple announced a significant update to RealityKit, its suite of technologies that allow developers to get started building AR (augmented reality) experiences. With the launch of RealityKit 2, Apple says developers will have more visual, audio and animation control when working on their AR experiences. But the most notable part of the update is how Apple’s new Object Capture API will allow developers to create 3D models in minutes using only an iPhone.
Apple noted during its developer address that one of the most difficult parts of making great AR apps was the process of creating 3D models. These could take hours and thousands of dollars.
With Apple’s new tools, developers will be able take a series of pictures using just an iPhone (or iPad, DSLR or even a drone, if they prefer) to capture 2D images of an object from all angles, including the bottom.
Then, using the Object Capture API on macOS Monterey, it only takes a few lines of code to generate the 3D model, Apple explained.
Image Credits: Apple
To begin, developers would start a new photogrammetry session in RealityKit that points to the folder where they’ve captured the images. Then, they would call the process function to generate the 3D model at the desired level of detail. Object Capture allows developers to generate the USDZ files optimized for AR Quick Look — the system that lets developers add virtual, 3D objects in apps or websites on iPhone and iPad. The 3D models can also be added to AR scenes in Reality Composer in Xcode.
Apple said developers like Wayfair, Etsy and others are using Object Capture to create 3D models of real-world objects — an indication that online shopping is about to get a big AR upgrade.
Wayfair, for example, is using Object Capture to develop tools for their manufacturers so they can create a virtual representation of their merchandise. This will allow Wayfair customers to be able to preview more products in AR than they could today.
Image Credits: Apple (screenshot of Wayfair tool))
In addition, Apple noted developers including Maxon and Unity are using Object Capture for creating 3D content within 3D content creation apps, such as Cinema 4D and Unity MARS.
Other updates in RealityKit 2 include custom shaders that give developers more control over the rendering pipeline to fine tune the look and feel of AR objects; dynamic loading for assets; the ability to build your own Entity Component System to organize the assets in your AR scene; and the ability to create player-controlled characters so users can jump, scale and explore AR worlds in RealityKit-based games.
One developer, Mikko Haapoja of Shopify, has been trying out the new technology (see below) and shared some real-world tests where he shot objects using an iPhone 12 Max via Twitter.
Developers who want to test it for themselves can leverage Apple’s sample app and install Monterey on their Mac to try it out. They can use the Qlone camera app or any other image capturing application they want to download from the App Store to take the photos they need for Object Capture, Apple says. In the fall, the Qlone Mac companion app will leverage the Object Capture API as well.
Apple says there are over 14,000 ARKit apps on the App Store today, which have been built by over 9,000 different developers. With the more than 1 billion AR-enabled iPhones and iPads being used globally, it notes that Apple offers the world’s largest AR platform.
Apple’s Object Capture on a Pineapple. One of my fav things to test Photogrammetry against. This was processed using the RAW detail setting.
More info in thread
pic.twitter.com/2mICzbV8yY
— Mikko Haapoja (@MikkoH) June 8, 2021
Apple’s Object Capture is the real deal. I’m impressed. Excited to see where @Shopify merchants could take this
Allbirds Tree Dashers. More details in thread
— Mikko Haapoja (@MikkoH) June 8, 2021
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Apple Music launches Spatial Audio and Lossless Audio, adds Spatial Audio playlists
Last month, Apple announced it would soon add lossless audio streaming and Spatial Audio with support for Dolby Atmos to its Apple Music subscription at no extra charge. That upgrade has now gone live, Apple announced this morning — though many noticed the additions actually rolled out yesterday, following the WWDC keynote.
The entire Apple Music catalog of 75+ million songs will support lossless audio.
The lossless tier begins at CD quality — 16 bit at 44.1 kHz, and goes up to 24 bit at 48 kHz, Apple previously said. Audiophiles can also opt for the high-resolution lossless that goes up to 24 bit at 192 kHz. Apple has said you’ll need to use an external, USB digital-to-analog converter to take advantage of the latter — simply plugging in a pair of headphones to an iPhone won’t work.
Apple Music subscribers will be able to enable the new lossless option under Settings > Music > Audio quality. Here, you’ll be able to choose the different resolutions you want to use for different connections, including Wi-Fi, cellular and download.
When you make your selection in Settings, iOS warns that lossless files will use “significantly more space” on your device, as 10 GB of storage would allow you to store approximately 3,000 songs at high quality, 1,000 songs with lossless or 200 songs with high-res lossless.
Image Credits: Apple
Meanwhile, Spatial Audio will be enabled by default on hardware that supports Dolby Atmos, like Apple’s AirPods and Beats headphones with an H1 or W1 chip. The latest iPhone, iPad and Mac models also support Dolby Atmos. Spatial Audio on Apple Music will also be “coming soon” to Android devices, Apple said.
To kick off the launch, Apple Music is today rolling out new playlists designed to showcase Spatial Audio. These include:
- Made for Spatial Audio
- Hits in Spatial Audio
- Rock in Spatial Audio
- Pop in Spatial Audio
- Hip-Hop in Spatial Audio
- Country in Spatial Audio
- Jazz in Spatial Audio
- Classical in Spatial Audio
Apple is also adding a special guide to Spatial Audio on Apple Music, which will help music listeners hear the difference. This will include tracks from artists like Marvin Gaye and The Weeknd, among others. And Apple will air a roundtable conversation about Spatial Audio featuring top sound engineers and experts, hosted by Zane Lowe at 9 a.m. PT today on Apple Music.
Because songs have to be remastered for Dolby Atmos specifically, these guides and playlists will help music fans experience the new format without having to hunt around. Apple says it’s working with artists and labels to add more new releases and the best catalog tracks in Spatial Audio. To help on this front, Apple notes there are various initiatives underway — including doubling the number of Dolby-enabled studios in major markets, offering educational programs and providing resources to independent artists.
Apple also said it will build music-authoring tools directly into Logic Pro. Later this year, the company plans to release an update to Logic Pro that will allow any musician to create and mix their songs in Spatial Audio for Apple Music.
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iPhone 12 mini Review: Tiny package, big bang
Reviewing the iPhone 12 mini and the iPhone 12 Pro Max at the same time has been an exercise in extremes. I noted in my earlier reviews of the iPhone 12 and iPhone 12 Pro that it was difficult to evaluate the middle of the lineup without having the extreme ends of the scale available to contrast them.
Now that I have had a chance to examine those extremes, I have come away incredibly impressed with the job that Apple has done on the whole lineup this year. These phones are extremely well sized, highly crisp from a design perspective and generously appointed with features. Aside from a handful of small items, there are no glaring examples here of artificial cliffs on the feature side or price side that attempt to push people upwards in the lineup. Something that has been the case in some years.
The most impressive of all of the iPhones 12 this year should be, by all rights, the iPhone 12 Pro Max. Its big screen and beautiful casing make it very attractive and it has the best camera I’ve ever seen in a phone.
But in my opinion, the iPhone 12 mini is the most attractive phone in the lineup. The dark horse that makes a strong case for itself outside of the “I just want a small phone” crowd.
The size
The iPhone mini is 20% smaller and 18% lighter than the iPhone 12 and about half the size of the iPhone 11. It really hits a nicely sweet note for fit, and the lack of a home button means that the screen can accommodate quite a bit more content on display at once.
Though my larger hands do feel a bit more comfortable on the iPhone 12, I am happy to report that the typing experience on the iPhone 12 mini is far superior to the 4.0” first generation SE. It even gets a leg up on the 4.7” iPhone SE introduced earlier this year because the screen is the same width but taller — letting it pull off the TARDIS trick of being smaller with a bigger screen. This allows the emoji keyboard toggle and the voice dictation button to drop out of the bottom row of keys, relaxing spacing on the return, space and number pad buttons. This additional size, especially for the spacebar, improves the typing experience measurably. The key spacing is a bit less generous than the iPhone 12, but this is a workable situation for typing.
If you look at this and an iPhone 11, because of the way that the screen is rendered, you’re going to see pretty much the same amount of content.
On top of an iPhone 12 Pro Max
Speaking of rendering, the iPhone 12 mini is scaled, which means that it is displaying at roughly .96 of its “native” screen resolution of 2340×1080. In my testing, this scaling was not apparent in any way. Given that the mini has a resolution of 476ppi in a smaller screen than the iPhone 12, which clocks in at 460ppi, that’s not too surprising — iPhones have been doing integral scaling for years with their magnification features, so Apple has plenty of practice at this. I didn’t notice any artifacting or scrolling, and most apps looked just fine proportionally, though some developers that do not take advantage of Apple’s native frameworks that support various screen sizes may have to do a bit of tweaking here and there.
The iPhone mini has a nice lightweight compactness to it. In order to get a read on its vibe I compared it to the iPhone 4S, which felt far denser, the iPhone 5, which felt a bit more airy, and the iPhone 5C, which still feels fun but cheap. It shares pedigree with all of these devices but feels far more assured and integral. The iPhone 12 design language doesn’t feel like multiple materials sandwiched together in the way that these earlier devices do. It feels grown, rather than made.
That integral quality does wonders when it’s such a small device because every millimeter counts. Apple didn’t cheap out on the casing or design and gave it an exterior to match its very performant interior.
The speaker and microphone grills, I’m sad to say, are asymmetric on the iPhone 12 mini. Ding.
And don’t think you miss out on anything performance related when you go to the mini. While it appears that either heat management, scaling or power management in general has made Apple tweak the processor ever so slightly, the benchmarks are close enough to make it a wash. There is zero chance you ever see any real-world difference between the iPhone 12 mini and any other iPhone 12.
For what it’s worth, the iPhone 12 mini has 4GB of RAM, same as the iPhone 12. The iPhone Pro and iPhone 12 Pro Max have 6GB. The biggest real-world effect of RAM that I have found on iPhone is less dumping of Safari tabs in the background, so if you’re a pro browser take that into account.
The iPhone 12 mini is basically identical in the photography department to the iPhone 12. You lose nothing, it’s a great camera. Nothing much to see there, though so I’m not spending any time on it. You will have a world-class phone camera, just no telephoto.
If you’re a camera-oriented iPhone user, your usage of the telephoto lens is probably the most crisp deciding factor between the iPhone 12 Pro and the iPhone 12. The lidar benefits are there, and they absolutely make a big difference. But not having a telephoto at all could be an easy make-or-break for some people.
Cribbing from my iPhone 12 Pro review here, one easy way to judge is to make a smart album in Photos on a Mac (or sort your photos using another tool that can read metadata) specifying images shot with a telephoto lens. If that’s a sizeable portion of your pics over the last year, then you’ve got a decision to make about whether you’re comfortable losing that option.
When I did this, just about 19% of my iPhone 11 Pro shots were taken with the telephoto lens. Around 30% of those were portrait shots. So for me, one in every five images was shot with that tighter framing. It’s just something I find attractive. I like a little bit more precise of a crop and the nice amount of compression (for closer subjects) that comes with the longer focal length.
You don’t get 4K/60fps video, but you still can shoot 4K/30fps Dolby Vision video in this super tiny device, which is wild. It’s more than I think any normal iPhone 12 mini user will ever need.
Apple says that the iPhone 12 mini’s battery life is better than the 4.7” iPhone SE, and that bore out in my testing. I got through a day easily, with maybe a few percentage points difference between the iPhone 12 mini and the iPhone 12. I didn’t have enough time to run a comparison against the battery king, the iPhone 11, but I doubt it would come anywhere near unseating it just from a physics perspective. This thing is small, so the battery pack is small and the processor is not being majorly throttled in any way. The iPhone 12 mini charges at 12W on a MagSafe charger on a 20W brick, rather than the full 15W because the smaller battery allows it to still hit the same percentage charging speed as the larger iPhones 12 while mitigating heat buildup — always a problem in a smaller chassis.
I did have a chance to try the iPhone 12 mini slip case and I thought it was well made and clever, though absolutely positively not for me. I use my iPhone too much to be sliding it into a sleeve and back out again; it would be an exercise in futility. But if you are in the market for this kind of case, I hold that the Apple version shows off the company’s earned expertise in leather. It’s well trimmed, it has nice edge finishing and a clever clasp.
It integrates Apple’s MagSafe magnet array to display a live clock on the OLED screen with a space for the ambient light sensor. The clock display is pretty clever. It has a lightly colored background that matches the leather color of the case using the same NFC trick as the silicon cases that display a color-matched ring when you put them on. The clock fades in two stages over a few seconds but will turn on when the ambient light sensor knows it’s not in your pocket and the motion coprocessor in the A14 senses movement.
So a quick lift will flip the time on and let you check it. It also still allows tap-to-wake in the clock window, showing you the color-matched time.
There’s also a hidden card slot for maybe one credit card or ID card inside the mouth of the case. Like I said, it’s not for me, but I can appreciate that a lot more is going on in this little case than meets the eye, and it shows off some of the sophistication that could be coming to other MagSafe accessories in the future.
The conclusion
In my iPhone 12/12 Pro review I noted my rubric for selecting a personal device:
- The most compact and unobtrusive shape.
- The best camera that I can afford.
And this is the conclusion I came to at the time:
The iPhone 12 Pro is bested (theoretically) in the camera department by the iPhone 12 Pro Max, which has the biggest and best sensor Apple has yet created. (But its dimensions are similarly biggest.) The iPhone 12 has been precisely cloned in a smaller version with the iPhone 12 mini. By my simple decision-making matrix, either one of those are a better choice for me than either of the models I’ve tested. If the object becomes to find the best compromise between the two, the iPhone 12 Pro is the pick.
Now that I have had both of those devices in my hand, I can say that my opinion hasn’t changed, but my definitions of the lineup have a bit.
Because the iPhone 12 mini has no appreciable compromises in feature set from the iPhone 12, I consider these one device with two screen sizes. Yes, this may feel like a “duh” moment, but I didn’t want to jump to this place without actually using the mini for an extended period. Most critically, I needed to get a feel for that typing experience.
The iPhone mini is by far the best value per dollar in Apple’s 2020 lineup. With this you get all of the power and advances of the iPhone 12, everything but the telephoto camera (and 60fps/4K video) of the iPhone 12 Pro and everything but the new sensor in the iPhone 12 Pro Max. Those additions will cost you anywhere from $300-$400 more over the life of your device if you choose to step up.
I’ve been thinking hard about what a clear break point would be between deciding on the iPhone 12 and the iPhone 12 mini. If you are someone who really likes or ergonomically needs a smaller screen, you’re being treated to a device with no compromises in core functionality. But if you’re not a “small boi” fan, then what is the deciding factor?
For me, it comes to this decision flow:
- Is the iPhone your only camera and do you use it constantly for images? Then choose the iPhone 12 Pro.
- Are you an iPhone photographer that regularly prints images or edits them heavily? Choose the iPhone 12 Pro Max.
- Are neither of those true, but it is true that the iPhone is your only mobile computing device? Go with the iPhone 12.
- If that’s not true and you regularly carry an iPhone alongside a laptop or iPad, then go with the mini.
Here, I even made you a handy flowchart if that kind of thing is your bag:
This is one of the best years ever for the iPhone lineup. The choices presented allow for a really comfortable picking routine based on camera and screen size with no majorly painful compromises in raw power or capability. These are full-featured devices that are really well made from end to end.
I hope that this template in sizing sticks around for a while as the powerful camera tech creeps its way down the lineup over time, invalidating at least the photography side of my flowchart above. Until then, this is still one of the better “small” iPhones Apple has ever produced, and certainly one with the least overall compromise.
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Microsoft updates its Endpoint Manager with improved macOS support and more
At its Ignite conference today, Microsoft announced a number of new features for the Microsoft Endpoint Manager, the company’s unified platform for managing and securing devices in an enterprise environment. The service, which combines the features of the Microsoft System Center Configuration Manager with the cloud-based tools of Intune, launched just under a year ago. Today’s updates build on the foundation the team created at the time and add improved macOS and iPad support, as well as new tools for connecting mobile devices to on-premises apps and additional productivity tools based on the date the company gathers from the service. The company is also making it easier for corporate IT departments to provision devices for employees remotely.
If anything, the pandemic has only accelerated both the growth of this business for Microsoft and the need for companies to manage their remote devices.
“It really is about bringing this cloud and all the intelligence that we had in Intune together with Config Manager and making it act as one,” Brad Anderson, Microsoft corporate VP for the Commercial Management Experiences team, told me. “And it’s been so fascinating to see how the pandemic accelerated people wanting and needing to use that. When the pandemic first hit — and as I go back to March 8th or 10th, in the U.S., the calls that I was having almost every day with CIOs centered around, ‘my VPN is overwhelmed. How am I going to keep all my systems updated?’ ”
Today’s announcements build on the work Microsoft has done on this service over the course of the last year. After launching support for scripting on macOS earlier this year, for example, the company today announced a new “first-class management experience on macOS” that brings deploy scripts, but also improved enrollment experiences and app lifecycle management feature, to the platform.
Endpoint Manager now also supports Apple’s Shared iPad for Business functionality, and will help businesses deploy iPads to their users and allow them to log in with Azure Active Directory accounts. This gives users two separate portions on the device: one for work and one for everything else.
Another new feature is Microsoft Tunnel. This gives businesses a VPN that can cover the entire device or single apps to ensure that their employees’ devices are secure and compliant with their internal policy to access their networks.
“The key thing [with Microsoft Tunnel] is that this is all integrated into our conditional access,” Anderson explained. “And so when that VPN comes up, before access is granted to the data or to the apps, the conditional access engine that we’ve built inside of Microsoft 365 has that point of view on the trust of the identity and the trust of the device. That really is the key differentiator on that. I’ll tell you, between you and I, that one feature is probably the single feature that customers who are running another MDM and then the Microsoft Endpoint Manager — that’s the one they’re waiting for.”
Endpoint Manager now also supports the Windows Virtual Desktop (WVD) environment. That’s been a massive growth area for the company — one that has only been accelerated by the COVID-19 pandemic. As Anderson told me, the company saw 10x growth for WVD through the pandemic. “Now, Windows Virtual Desktop is that first-class citizen inside Microsoft Endpoint Manager. So you can manage your virtual endpoints just like you manage your physical endpoints. All your policies are applicable, all your apps are clickable. And it just makes it easier to be able to use that as one of the tools you have to empower your users,” he said.
Another area of Endpoint Manager, which may only seem tangentially related at first, is Microsoft’s Productivity Score. There are two aspects to this service, though: employee experience and technology experience. Productivity Score is meant to help businesses better understand how their employees are working — and identify areas where companies can improve. On the technology side, that also means understanding which apps crash, for example, or why laptops slow down.
“Here’s one of the key scenarios,” said Anderson. “We’ll get a call every once in a while that says, like, ‘hey, my users are all having a great experience with Office 365 but I’ve got a handful of users for whom it’s slow.’ More often than not, that’s a networking issue. And so every time a user, for example, opens a file or saves a file, opens an attachment, we get telemetry back that helps us understand the operations of that. We probably know when an ISP in the south of France sneezes, because Office 365 is so ubiquitous now.”
The other new feature here is what Microsoft calls Endpoint Analytics. With this, Microsoft can now provide businesses with detailed information about when apps on their employees’ devices crash — no matter whether that’s an internal app, a third-party service — or a Microsoft app.
In addition to these technology scores, Productivity Score is also getting new categories like meetings, so managers can see how many meetings their employees have, as well as a new teamwork category.
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What to expect from Apple’s hardware event
If this was a normal year, we would be settling in for an iPhone event right about now. This is, however, very much not a normal year. And while we are, in fact, getting an Apple hardware event tomorrow at 10 a.m. PT/1 p.m. ET, it’s looking entirely possible — even likely — that we won’t be getting much face time with the iPhone 12.
If the handset even makes an appearance at all. After all, Apple’s been pretty upfront about the months or so delay of its long-awaited 5G handset (shareholders, you know), owing at least in part to some supply chain issues. It follows, then, that the company is planning another event in the not so distant future.
As we’ve seen from Samsung, the move toward virtual events during the pandemic seems to have made companies a bit bolder about holding more events, without the the obligation of travel. What we can expect this time, however, are some refreshes to a couple of other Apple tent-pole products — namely, the Apple Watch and an old iPad favorite. There are a handful of other possibilities, as well, including service bundles and some additions to the AirPods line.
Let’s start with the best bets.
Apple Watch
Image Credits: Brian Heater
The “Time Flies” slogan is the clearest indication that we’re getting some Watch news. Again, in most years, we’d simply be able to look at the calendar. But this isn’t most years. A healthy combination of rumors, leaks and some of the new features from the latest version of watchOS give us a pretty healthy picture of what we’re in store for at tomorrow’s big event.
The Apple Watch Series 6 is likely to be the centerpiece of the show. One of the biggest pieces of news from the new model is actually a feature loss. The latest version of Apple’s ultra-popular wearable is expected to drop Force Touch, as support for the feature is out on watchOS 7. Such a move could help slim down the watch — or even more likely/hopefully leave room for more battery.
With the addition of sleep features in the new version of the OS, it behooves the company to find ways to make the device last longer on a charge, so users can wear it to bed. There are already some on-board power-saving features to track while the wearer sleeps, but a bigger battery would make a big difference — and help the company stay competitive on that front.
Otherwise, the device is set to continue Apple’s focus on health tracking improvements. That’s long been a key to the Watch’s success — and the success of wrist-worn devices, generally. Among the expected features is the addition of SpO2 tracking. The Apple Watch would be far from the first smartwatch to track blood oxygen levels, but the feature would come at a time when home tracking of health vitals feels all the more important.
Rumors also point to the addition of a low-cost model — specifically a new Watch designed to replace the Series 3, which has stuck around at $199. The product would answer the fair bit of demand for lower-priced smartwatches. That’s particularly the case during COVID-19, as users are looking for a reasonably priced entry into health tracking. That said, it seems likely that the lower-cost product won’t be nearly as sophisticated.
iPad
Image Credits: Apple
It seems likely there’s an iPad on the menu for tomorrow, too. The top candidate is the iPad Air, which saw its last refresh in March 2019. Rumors point to a significant reduction in bezels and a power button with Touch ID moved to the top of the device. Other features for the iPad Air 4 include a 10.8-inch display and Apple finally swapping the Lightning port for USB-C.
Misc
All of those operating systems announced back at WWDC (iOS, macOS, watchOS, TVOS) should be coming out of beta any week now. This could be the event — though, again, with the possible addition of an iPhone event, we can’t say for sure. The company is also rumored to be launching “Apple One,” an offering that would bundle in some of its key subscription services, including Apple TV+ and Music. Additional bundles could feature Arcade and News+, along with additional iCloud storage.
Some additional longstanding rumors include AirTags, the company’s Tile-like device tracker that plays nicely with its Find My application. The hardware offering would make it easier to locate lost objects in a fashion similar to Find My iPhone. New AirPods could be on the docket as well. AirPods 3, AirPods Pro 2 and the long-awaited over-ear AirPods Studio all seem like reasonable possibilities.
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Apple goes to war with the gaming industry
Most gamers may not view Apple as a games company to the same degree that they see Sony with PlayStation or Microsoft with Xbox, but the iPhone-maker continues to uniformly drive the industry with decisions made in the Apple App Store.
The company made the news a couple times late this week for App Store approvals. Once for denying a gaming app, and the other for approving one.
The denial was Microsoft’s xCloud gaming app, something the Xbox folks weren’t too psyched about. Microsoft xCloud is one of the Xbox’s most substantial software platform plays in quite some time, allowing gamers to live-stream titles from the cloud and play console-quality games across a number of devices. It’s a huge effort that’s been in preview for a bit, but is likely going to officially launch next month. The app had been in a Testflight preview for iOS, but as Microsoft looked to push it to primetime, Apple said not so fast.
The app that was approved was the Facebook Gaming app which Facebook has been trying to shove through the App Store for months to no avail. It was at last approved Friday after the company stripped one of its two central features, a library of playable mobile games. In a curt statement to The New York Times, Facebook COO Sheryl Sandberg said, “Unfortunately, we had to remove gameplay functionality entirely in order to get Apple’s approval on the stand-alone Facebook Gaming app.”
Microsoft’s Xbox team also took the unusually aggressive step of calling out Apple in a statement that reads, in-part, “Apple stands alone as the only general purpose platform to deny consumers from cloud gaming and game subscription services like Xbox Game Pass. And it consistently treats gaming apps differently, applying more lenient rules to non-gaming apps even when they include interactive content.”
Microsoft is still a $1.61 trillion company so don’t think I’m busting out the violin for them, but iOS is the world’s largest gaming platform, something CEO Tim Cook proudly proclaimed when the company launched its own game subscription platform, Apple Arcade, last year. Apple likes to play at its own pace, and all of these game-streaming platforms popping up at the same time seem poised to overwhelm them.
Image Credits: Microsoft
There are a few things about cloud gaming apps that seem at odds with some of the App Store’s rules, yet these rules are, of course, just guidelines written by Apple. For Apple’s part, they basically said (full statement later) that the App Store had curators for a reason and that approving apps like these means they can’t individually review the apps which compromises the App Store experience.
To say that’s “the reason” seems disingenuous because the company has long approved platforms to operate on the App Store without stamping approval on the individual pieces of content that can be accessed. With “Games” representing the App Store’s most popular category, Apple likely cares much more about keeping their own money straight.
Analysis from CNBC pinned Apple’s 2019 App Store total revenue at $50 billion.
When these cloud gaming platforms like xCloud scale with zero iOS support, millions of Apple customers, myself included, are actually going to be pissed that their iPhone can’t do something that their friend’s phone can. Playing console-class titles on the iPhone would be a substantial feature upgrade for consumers. There are about 90 million Xbox Live users out there, a substantial number of which are iPhone owners I would imagine. The games industry is steadily rallying around game subscription networks and cloud gaming as a move to encourage consumers to sample more titles and discover more indie hits.
I’ve seen enough of these sagas to realize that sometimes parties will kick off these fights purely as a tactic to get their way in negotiations and avoid workarounds, but it’s a tactic that really only works when consumers have a reason to care. Most of the bigger App Store developer spats have played in the background and come to light later, but at this point the Xbox team undoubtedly sees that Apple isn’t positioned all that well to wage an App Store war in the midst of increased antitrust attention over a cause that seems wholly focused on maintaining their edge in monetizing the games consumers play on Apple screens.
CEO Tim Cook spent an awful lot of time in his Congressional Zoom room answering question about perceived anticompetitiveness on the company’s application storefront.
The big point of tension I could see happening behind closed doors is that plenty of these titles offer in-game transactions and just because that in-app purchase framework is being live-streamed from a cloud computer doesn’t mean that a user isn’t still using experiencing that content on an Apple device. I’m not sure whether this is actually the point of contention, but it seems like it would be a major threat to Apple’s ecosystem-wide in-app purchase raking.
The App Store does not currently support cloud gaming on Nvidia’s GeForce platform or Google’s Stadia which are also both available on Android phones. Both of these platforms are more limited in scope than Microsoft’s offering which is expected to launch with wider support and pick up wider adoption.
While I can understand Apple’s desire to not have gaming titles ship that might not function properly on an iPhone because of system constraints, that argument doesn’t apply so well to the cloud gaming world where apps are translating button presses to the cloud and the cloud is sending them back the next engine-rendered frames of their game. Apple is being forced to get pretty particular about what media types of apps fall under the “reader” designation. The inherent interactivity of a cloud gaming platform seems to be the differentiation Apple is pushing here — as well as the interfaces that allows gamers to directly launch titles with an interface that’s far more specialized than some generic remote desktop app.
All of these platforms arrive after the company already launched Apple Arcade, a non-cloud gaming product made in the image of what Apple would like to think are the values it fosters in the gaming world: family friendly indie titles with no intrusive ads, no bothersome micro-transactions and Apple’s watchful review.
Apple’s driver’s seat position in the gaming world has been far from a wholly positive influence for the industry. Apple has acted as a gatekeeper, but the fact is plenty of the “innovations” pushed through as a result of App Store policies have been great for Apple but questionable for the development of a gamer-friendly games industry.
Apple facilitated the advent of free-to-play games by pushing in-app purchases which have been abused recklessly over the years as studios have been irresistibly pushed to structure their titles around principles of addiction. Mobile gaming has been one of the more insane areas of Wild West startup growth over the past decade and Apple’s mechanics for fueling quick transactions inside these titles has moved fast and broken things.
Take a look at the 200 top grossing games in the App Store (data via Sensor Tower) and you’ll see that all 199 of them rely solely on in-app micro-transaction to reach that status — Microsoft’s Minecraft, ranked 50th costs $6.99 to download, though it also offers in-app purchases.
In 2013, the company settled a class-action lawsuit that kicked off after parents sued Apple for making it too easy for kids to make in-app purchases. In 2014, Apple settled a case with the FTC over the same mechanism for $32 million. This year, a lawsuit filed against Apple questioned the legality of “loot box” in-app purchases which gave gamers randomized digital awards.
“Through the games it sells and offers for free to consumers through its AppStore, Apple engages in predatory practices enticing consumers, including children to engage in gambling and similar addictive conduct in violation of this and other laws designed to protect consumers and to prohibit such practices,” read that most recent lawsuit filing.
This is, of course, not how Apple sees its role in the gaming industry. In a statement to Business Insider responding to the company’s denial of Microsoft’s xCloud, Apple laid out its messaging.
The App Store was created to be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers. Before they go on our store, all apps are reviewed against the same set of guidelines that are intended to protect customers and provide a fair and level playing field to developers.
Our customers enjoy great apps and games from millions of developers, and gaming services can absolutely launch on the App Store as long as they follow the same set of guidelines applicable to all developers, including submitting games individually for review, and appearing in charts and search. In addition to the App Store, developers can choose to reach all iPhone and iPad users over the web through Safari and other browsers on the App Store.
The impact has — quite obviously — not been uniformly negative, but Apple has played fast and loose with industry changes when they benefit the mothership. I won’t act like plenty of Sony and Microsoft’s actions over the years haven’t offered similar affronts to gamers, but Apple exercises the industry-wide sway it holds, operating the world’s largest gaming platform, too often and gamers should be cautious in trusting the App Store owner to make decisions that have their best interests at heart.
If you’re reading this on the TechCrunch site, you can get more of my weekly opinions and notes on the news by subscribing to Week in Review here, and following my tweets here.
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Apple Pay and iOS App Store under formal antitrust probe in Europe
Apple is under formal investigation by antitrust regulators in European Union — following a number of complaints related to how it operates the iOS App Store and also its payment offering, Apple Pay.
The Commission said today that it has concerns that conditions and restrictions applied by the tech giant may be distorting competition in a number of areas, following a preliminary probe of the issues.
Back in March 2019, European music streaming service Spotify filed an antitrust complaint against Apple — railing very publicly against what it dubbed an “Apple tax”; aka the 30% tariff the tech giant applies on accepting payments in apps on its App Store. Spotify also accused Apple of impeding its business by applying arbitrary rules — such as making it harder to offer its own users discounts.
The Commission confirmed today that it’s looking formally into whether Apple’s rules for app developers on the distribution of apps via the App Store violate EU competition rules. It said the probe focuses on Apple’s mandatory requirement that app developers use its own proprietary in-app purchase system, as well as restrictions applied on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps.
As well as the very public complaint from Spotify, the Commission has received a similar complaint from an unnamed e-book/audiobook distributor related to the impact of the App Store rules on competition.
Two specific restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices will be investigated, per the Commission — namely [emphasis its]:
(i) The mandatory use of Apple’s own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP.
(ii) Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.
“Following a preliminary investigation the Commission has concerns that Apple’s restrictions may distort competition for music streaming services on Apple’s devices,” it writes in a press release. “Apple’s competitors have either decided to disable the in-app subscription possibility altogether or have raised their subscription prices in the app and passed on Apple’s fee to consumers.
“In both cases, they were not allowed to inform users about alternative subscription possibilities outside of the app. The IAP obligation also appears to give Apple full control over the relationship with customers of its competitors subscribing in the app, thus dis-intermediating its competitors from important customer data while Apple may obtain valuable data about the activities and offers of its competitors.”
Commenting in a statement, Commission EVP Margrethe Vestager — who heads up competition policy for the bloc — added: “Mobile applications have fundamentally changed the way we access content. Apple sets the rules for the distribution of apps to users of iPhones and iPads. It appears that Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices. We need to ensure that Apple’s rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books. I have therefore decided to take a close look at Apple’s App Store rules and their compliance with EU competition rules.”
Vestager’s reference to a “gatekeeper” role has specific significance as the Commission is currently consulting on updating regulations for digital platforms — including floating the possibility of ex ante regulation for platforms deemed to be gatekeepers vis-a-vis other suppliers. (In parallel, the Commission is consulting on updates to competition law that may allow it to intervene more swiftly in future, in instances where it suspects digital markets have ‘tipped’.)
Spotify welcomed the Commission’s action, writing in a statement:
Today is a good day for consumers, Spotify and other app developers across Europe and around the world. Apple’s anticompetitive behavior has intentionally disadvantaged competitors, created an unlevel playing field, and deprived consumers of meaningful choice for far too long. We welcome the European Commission’s decision to formally investigate Apple, and hope they’ll act with urgency to ensure fair competition on the iOS platform for all participants in the digital economy.
On Apple Pay, the Commission said a formal investigation of how it operates the payment tech will look at the “terms, conditions and other measures” Apple applies for integrating the payment solution in merchant apps and websites on iPhones and iPads; Apple’s limitation of access to the NFC functionality on iPhones for payments in stores; and allegations of “refusals of access to Apple Pay”.
Following a preliminary probe, the Commission said it is concerned Apple’s processes “may distort competition and reduce choice and innovation”.
It also notes that Apple Pay is the only mobile payment solution that is allowed to access NFC technology on iOS devices for making payments in stores.
“The investigation will also focus on alleged restrictions of access to Apple Pay for specific products of rivals on iOS and iPadOS smart mobile devices,” it added.
The Commission said it will carry out the investigations “as a matter of priority”, but there’s no set timeframe for how long this process might take.
EU antitrust investigations have tended to take a number of years from an announcement of a formal probe to a decision being reached. (Although, in an ongoing investigation against Broadcom, Vestager recently dusted off a tool to accelerate regulatory intervention — but as yet there’s no formal ‘statement of objections’ against Apple so it remains to be seen how this case will proceed, and whether regulators may seek to speed up any intervention.)
Reached for comment on the Commission’s announcement of the two antitrust investigations, Apple dubbed the complaints “baseless” — choosing to throw shade on the complainants by claiming these companies are after “a free ride, and don’t want to play by the same rules as everyone else”.
Here’s Apple’s statement on the two investigations in full:
Throughout our history, Apple has created groundbreaking new products and services in some of the most fiercely competitive markets in the world. We follow the law in everything we do and we embrace competition at every stage because we believe it pushes us to deliver even better results.
We developed the App Store with two goals in mind: that it be a safe and trusted place for customers to discover and download apps, and a great business opportunity for entrepreneurs and developers. We’re deeply proud of the countless developers who’ve innovated and found success through our platform. And as we’ve grown together, we’ve continued to deliver innovative new services — like Apple Pay — that provide the very best customer experience while meeting industry-leading standards for privacy and security.
It’s disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else. We don’t think that’s right — we want to maintain a level playing field where anyone with determination and a great idea can succeed.
At the end of the day, our goal is simple: for our customers to have access to the best app or service of their choice, in a safe and secure environment. We welcome the opportunity to show the European Commission all we’ve done to make that goal a reality.
Apple has had a number of run-ins with EU regulators over the years — including a probe of its acquisition of Shazam (which was later cleared); a major investigation of ebook pricing; and a probe of tax benefits in Ireland which saw it on the hook for $15BN.
French competition regulators also recently fined the tech giant $1.2BN for anti-competitive sales tactics. It’s also been fined $27M by French regulators this year for throttling old iPhones.
This report was updated with comment from Spotify
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Homeschooling startup Primer raises $3.7 million seed round led by Founders Fund
As parents across the country are tasked with managing their children’s schooling amid a pandemic, investors are betting on a homeschooling startup that’s aiming to provide parents with services that can simplify the process of giving their kids a tailored education at home.
Founder Ryan Delk says his startup Primer is building the “full-stack infrastructure” that parents need to homeschool their kids, an interactive suite of products that he hopes can “make homeschooling a mainstream option for families.”
His company shared funding details with TechCrunch, disclosing that his startup had closed a $3.7 million seed round led by Founders Fund . Other investors in the round include Naval Ravikant, Cyan Banister and Village Global.
As of 2016, about 2.4 million kids in the United States are homeschooled. Delk says that he’s been “stunned by the lack of infrastructure” available today for parents interested in homeschooling their kids. Delk was homeschooled by his parents from kindergarten through eighth grade, an experience he looks back on fondly, he says.
Primer isn’t offering a dedicated curriculum. So far, they’ve been building tools to help parents acquaint themselves with what’s out there. Primer has already rolled out a pair of free homeschooling resources for parents, including Navigator, a tool to help parents stay compliant with state regulations for homeschooling their kids, as well as Primer Library, a collection of free digital instruction materials.
Since launching its compliance and library tools late last year, the team has been prepping for their next launch, a series of interest-based communities that homeschoolers can join and participate in online. The communities will begin rolling out this August in time for a new school year. Delk says the team is hoping to launch about 5-7 different classes, spanning topics like “rockets, chess and baking,” with instruction from experts and interactions with other students. Primer hasn’t finalized pricing, but the team plans to charge a monthly subscription fee for membership to the communities.
Today, the startup is launching a waitlist for this feature. In a blog post, Delk notes that next year he hopes to launch “several more products that deliver everything parents need to give their children an exceptional homeschooling experience.”
Delk believes that there’s going to be a “huge influx” of new homeschoolers as shelter-in-place winds down and some parents find that homeschooling is something they’d like to pursue long-term. He notes that the products his team is creating are still pretty high-touch for parents and that it isn’t the right fit for everyone, much like homeschooling.
“It’s going to be very hands-on and we’re going to be upfront about that,” Delk says. “We are not building a plant-your-kid-in-front-of-an-iPad-for-six-hours product.”
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