ConnexionGoogle reveals NotebookLM app for Android & iPhone, coming at I/O 2025 [Gallery]
After teasing last month, Google today unveiled the design of the native NotebookLM app for Android and iPhone users.
more…Vue lecture
Spotify Submits iOS App Update With Out-of-App Purchase Options
Spotify today submitted an app update to Apple that will include information on Spotify plan costs and options to subscribe through weblinks without using the in-app purchase system. Spotify will not need to pay a fee to Apple when customers subscribe to the service using alternate payment methods in the Spotify app.
In a blog post announcing the changes, Spotify said that yesterday's ruling "delivers the benefits that all consumers deserve around the world," calling it a great day for Spotify users in the United States. Here's what Spotify says consumers will be able to do in the updated Spotify app:
Spotify said that it's "absurd" that it hasn't been able to offer these "basic services" to customers prior to now, and that "meaningful parts of Apple's anticompetitive barriers" have now been addressed, a change that is "long overdue."
According to Spotify, the decision could "unlock real opportunities for creators building their business and sharing their art with fans through Spotify." Publishers will soon be able to sell their audiobooks through the Spotify platform, for example.
Spotify, Epic Games, Patreon, and other app developers are submitting updates to the App Store with external purchase options. Apple has been ordered to allow developers to add links to external purchase options with no fee, "effective immediately."
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In a blog post announcing the changes, Spotify said that yesterday's ruling "delivers the benefits that all consumers deserve around the world," calling it a great day for Spotify users in the United States. Here's what Spotify says consumers will be able to do in the updated Spotify app:
- Can finally see how much something costs in our app, including pricing details on subscriptions and information about promotions that will save money;
- Can click a link to purchase the subscription of choice, upgrading from a Free account to one of our Premium plans;
- Can seamlessly click the link and easily change Premium subscriptions from Individual to a Student, Duo, or Family plan;
- Can use other payment options beyond just Apple's payment system--we provide a wider range of options on our website; and
- Going forward, this opens the door to other seamless buying opportunities that will directly benefit creators (think easy-to-purchase audiobooks)
Spotify said that it's "absurd" that it hasn't been able to offer these "basic services" to customers prior to now, and that "meaningful parts of Apple's anticompetitive barriers" have now been addressed, a change that is "long overdue."
According to Spotify, the decision could "unlock real opportunities for creators building their business and sharing their art with fans through Spotify." Publishers will soon be able to sell their audiobooks through the Spotify platform, for example.
Spotify, Epic Games, Patreon, and other app developers are submitting updates to the App Store with external purchase options. Apple has been ordered to allow developers to add links to external purchase options with no fee, "effective immediately."
Tag: Spotify
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Apple's Q2 2025 Earnings Call Takeaways
Apple held its earnings call for the second fiscal quarter of 2025 today (second calendar quarter), announcing revenue of $95.4 billion and net quarterly profit of $28.4 billion. During the call, Apple CEO Tim Cook spoke about tariffs, the App Store changes Apple is facing, device sales, and more.
We've rounded up the most interesting tidbits from the Q2 2025 earnings call below.
Cook was asked about some of the high-profile legal cases that Apple is facing right now, including the U.S. App Store changes that Apple was ordered to make yesterday, and how those legal cases might impact Apple's services business.
Cook repeated Apple's statement about complying and appealing, and didn't add much more beyond saying that the outcome is unclear.
Cook said that tariffs had a limited impact on the March quarter because Apple was able to optimize its supply chain and inventory. Apple is unable to entirely estimate the impact of tariffs on the June quarter because policies could change, but if everything stays as it is now, the tariffs will add $900 million to Apple's costs.
Cook declined to speak on pricing or whether elevated costs will be passed along to consumers.
Cook said that Apple is sourcing glass and Face ID modules from the United States, along with purchasing 19 billion chips from 12 states.
Cook said that Apple is "making progress" on the personal Siri features that the company announced at WWDC 2024. "We are making progress, and we look forward to getting these features into customers' hands," said Cook.
"It's just taking a bit longer than we thought," Cook added.
Cook said that during the March quarter, Apple saw year over year performance in countries with Apple Intelligence that was stronger than those countries where Apple Intelligence was not available.
Mac revenue grew 6.7 percent year over year, thanks to the new M4 MacBook Air and Mac Studio that came out during the quarter. The Mac install base grew to an all-time high, and Apple saw growth for upgraders and customers new to the Mac.
iPad revenue grew 15.2 percent year over year, with growth in every geographic segment. More than half of customers who purchased an iPad were new to the product. Apple debuted the M3 iPad Air and the iPad 11 during the quarter.
Wearables revenue dropped 4.9 percent year over year due to a difficult compare against the launch of the Apple Vision Pro in the year-ago quarter.
Apple's services revenue was up 11.6 percent year over year, an all-time revenue record, with strong performance across all categories. Apple TV+ set a new record for viewership during the quarter, and paid accounts and paid subscriptions grew double digits year over year. Apple now has more than 1 billion total paid subscriptions.
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We've rounded up the most interesting tidbits from the Q2 2025 earnings call below.
U.S. App Store Changes
Cook was asked about some of the high-profile legal cases that Apple is facing right now, including the U.S. App Store changes that Apple was ordered to make yesterday, and how those legal cases might impact Apple's services business.
Cook repeated Apple's statement about complying and appealing, and didn't add much more beyond saying that the outcome is unclear.
The case yesterday, we strongly disagree with it. We've complied with the court's order, and we're going to appeal. In the DoJ case you referenced with Google, that case is ongoing, and I don't really have anything to add beyond that.
We're monitoring these closely. But as you point out, there's risk associated with them. And the outcome is unclear.
Tariffs
Cook said that tariffs had a limited impact on the March quarter because Apple was able to optimize its supply chain and inventory. Apple is unable to entirely estimate the impact of tariffs on the June quarter because policies could change, but if everything stays as it is now, the tariffs will add $900 million to Apple's costs.
Cook declined to speak on pricing or whether elevated costs will be passed along to consumers.
US Investment
Cook said that Apple is sourcing glass and Face ID modules from the United States, along with purchasing 19 billion chips from 12 states.
Apple Intelligence Siri Features
Cook said that Apple is "making progress" on the personal Siri features that the company announced at WWDC 2024. "We are making progress, and we look forward to getting these features into customers' hands," said Cook.
"It's just taking a bit longer than we thought," Cook added.
Apple Intelligence Impacting iPhone Sales
Cook said that during the March quarter, Apple saw year over year performance in countries with Apple Intelligence that was stronger than those countries where Apple Intelligence was not available.
Mac
Mac revenue grew 6.7 percent year over year, thanks to the new M4 MacBook Air and Mac Studio that came out during the quarter. The Mac install base grew to an all-time high, and Apple saw growth for upgraders and customers new to the Mac.
iPad
iPad revenue grew 15.2 percent year over year, with growth in every geographic segment. More than half of customers who purchased an iPad were new to the product. Apple debuted the M3 iPad Air and the iPad 11 during the quarter.
Wearables, Home and Accessories
Wearables revenue dropped 4.9 percent year over year due to a difficult compare against the launch of the Apple Vision Pro in the year-ago quarter.
Services
Apple's services revenue was up 11.6 percent year over year, an all-time revenue record, with strong performance across all categories. Apple TV+ set a new record for viewership during the quarter, and paid accounts and paid subscriptions grew double digits year over year. Apple now has more than 1 billion total paid subscriptions.
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Tim Cook responds to Apple product price increase possibility
During Apple’s tariff-heavy earnings call today, CEO Tim Cook addressed concerns about how trade policy could impact product pricing — but his careful wording may have said more than he intended.
more…Spotify has just submitted its app update including links out to the web for payment, here’s how it will change the experience
Following the Apple vs Epic ruling this week, developers are racing to take advantage of their new ability to link out to their own website to collect payments from user, with Apple no longer able to force them to use its in-app purchase system.
Spotify has just announced that it has submitted its app update to Apple for approval, including these changes. In a blog post, it details how it has been able to make the user experience better for users upgrading from free to paid memberships.
more…Tim Cook Explains How Tariffs Are Impacting Apple's Business
Apple CEO Tim Cook today provided some insight into how the tariffs levied by U.S. president Donald Trump have affected its business, and the future impacts that Apple is expecting should tariffs continue.
Cook said that tariffs had a limited impact on the March quarter as Apple was able to optimize its supply chain and inventory. Apple can't entirely estimate the impact of tariffs on the June quarter due to uncertainties, but with no changes, the tariffs will add $900 million to Apple's costs. From Apple's earnings call:
Apple is already sourcing more than half of iPhones sold in the United States from India, while Macs, iPads, AirPods, and the Apple Watch come from Vietnam. For the June quarter, Cook said that Apple expects the majority of iPhones sold in the U.S. to have India as a country of origin, while Apple will continue sourcing other products from Vietnam. Apple will source devices from China for the rest of the world.
Cook said that Apple's operational team has "done an incredible job around optimizing the supply chain and the inventory," and that Apple plans to continue to do those things to the degree that it is able to.
The 20 percent tariffs that Trump put in place earlier this year are the tariffs that are primarily impacting Apple, as many Apple products have been exempted from the 125 percent reciprocal tariffs. Some products, though, such as accessories, are subject to the total 145 percent tariffs.
Cook said that he doesn't know what will happen with the Section 232 investigation that will eventually see tariffs applied to semiconductors, a change that will impact Apple.
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Cook said that tariffs had a limited impact on the March quarter as Apple was able to optimize its supply chain and inventory. Apple can't entirely estimate the impact of tariffs on the June quarter due to uncertainties, but with no changes, the tariffs will add $900 million to Apple's costs. From Apple's earnings call:
Now let me walk you through the impacts of tariffs in the March quarter, and give you some color on what we expect for the June quarter. For the March quarter, we had a limited impact from tariffs as we were able to optimize our supply chain and inventory.
For the June quarter, currently, we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter. However, for some color, assuming the current global tariff rates, policies and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs. This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter.
Apple is already sourcing more than half of iPhones sold in the United States from India, while Macs, iPads, AirPods, and the Apple Watch come from Vietnam. For the June quarter, Cook said that Apple expects the majority of iPhones sold in the U.S. to have India as a country of origin, while Apple will continue sourcing other products from Vietnam. Apple will source devices from China for the rest of the world.
Cook said that Apple's operational team has "done an incredible job around optimizing the supply chain and the inventory," and that Apple plans to continue to do those things to the degree that it is able to.
The 20 percent tariffs that Trump put in place earlier this year are the tariffs that are primarily impacting Apple, as many Apple products have been exempted from the 125 percent reciprocal tariffs. Some products, though, such as accessories, are subject to the total 145 percent tariffs.
Cook said that he doesn't know what will happen with the Section 232 investigation that will eventually see tariffs applied to semiconductors, a change that will impact Apple.
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Tim Cook addresses Apple’s delay of personalized Siri features
During today’s earnings call with analysts, Apple CEO Tim Cook addressed the company’s delay of its more personal Siri features that were announced as part of Apple Intelligence last year. Cook assured analysts that the company is “making progress” on shipping these features to consumers…
more…Apple says Trump import tariffs will increase its costs by $900 million this quarter
On the quarterly earnings call today, Apple gave some color on the impact of tariffs on its business. Most notably Apple CEO Tim Cook said that in the current quarter, April through June, the company will see costs of about $900 million assuming the current tariff policy remains for the whole quarter.
Apple warned the figure could change — higher or lower — if administration changes tariff policy unexpectedly over the course of the quarter. It also said that costs in future quarters could be higher, still.
more…Tim Cook: Apple is 'Making Progress' on Apple Intelligence Siri Features
During today's earnings call covering the second fiscal quarter of 2025, Apple CEO Tim Cook acknowledged the Apple Intelligence Siri features that have been delayed. Cook said that Apple needs more time to ensure Siri meets its quality bar, but progress is being made.
Apple first unveiled the more personalized Siri features at WWDC 2024, and rumors suggested that the plan was to introduce them with an update to iOS 18. That didn't happen, and Apple earlier this year said that there would be a delay because more time was needed for development.
At this point, the new Apple Intelligence features will be held for iOS 19, and it is not yet clear if they will be in the first iOS 19 release or held for a later update. Apple's delay wording suggested that we could be waiting until 2026 for the functionality.
Behind the scenes, Apple made a number of changes to Siri leadership, moving AI chief John Giannandrea off of the project and instead turning to Mike Rockwell, who handled Vision Pro development.
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With regard to the more personal Siri features we announced, we need more time to complete our work on these features, so they meet our high quality bar. We are making progress, and we look forward to getting these features into customers' hands.
Apple first unveiled the more personalized Siri features at WWDC 2024, and rumors suggested that the plan was to introduce them with an update to iOS 18. That didn't happen, and Apple earlier this year said that there would be a delay because more time was needed for development.
At this point, the new Apple Intelligence features will be held for iOS 19, and it is not yet clear if they will be in the first iOS 19 release or held for a later update. Apple's delay wording suggested that we could be waiting until 2026 for the functionality.
Behind the scenes, Apple made a number of changes to Siri leadership, moving AI chief John Giannandrea off of the project and instead turning to Mike Rockwell, who handled Vision Pro development.
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Tim Cook explains why Apple isn’t worried about iPhone tariffs
Apple just reported its latest quarterly earnings, and as expected, CEO Tim Cook came prepared to discuss the US tariff situation. In a new CNBC article, Cook explains why Apple isn’t worried about potential tariff impacts on the iPhone and its other products.
more…Apple Reports 2Q 2025 Results: $24.8B Profit on $95.4B Revenue
Apple today announced financial results for the second fiscal quarter of 2025, which corresponds to the first calendar quarter of the year.
For the quarter, Apple posted revenue of $95.4 billion and net quarterly profit of $24.8 billion, or $1.65 per diluted share, compared to revenue of $90.8 billion and net quarterly profit of $23.6 billion, or $1.53 per diluted share, in the year-ago quarter. Services revenue reached an all-time high during the quarter, while earnings per share set a March quarter record.
Gross margin for the quarter was 47.1 percent, compared to 46.6 percent in the year-ago quarter. Apple's board of directors also authorized an additional $100 billion for share repurchases and declared an increased dividend payment of $0.26 per share, up from $0.25 per share. The dividend is payable May 15 to shareholders of record as of May 12.
Apple will provide live streaming of its fiscal Q2 2025 financial results conference call at 2:00 pm Pacific, and MacRumors will update this story with coverage of the conference call highlights.
Conference call recap ahead...
1:37 pm: "Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders," said Kevan Parekh, Apple's CFO. "And thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments."
1:38 pm: Apple's share price is down around 2.5% in after-hours trading following the earnings release, after rising about 0.4% in regular trading earlier today.
1:41 pm: iPad revenue was up 15.2% year-over-year while Services revenue was up 11.6%, Mac revenue was up 6.7%, and iPhone revenue was up 1.9%. Wearables, Home, and Accessories was the only product category to see a year-over-year revenue decline, dropping 4.9%.
1:44 pm: On a geographic basis, Japan led the way in revenue increase at 16.5% year-over-year, the rest of Asia Pacific excluding Greater China saw an 8.4% increase, the Americas saw an 8.2% increase, and Europe saw a 1.4% increase. Greater China was the only geographic segment to see a decline at –2.3%.
2:00 pm: Apple's earnings call should be begining momentarily. On the call should be Apple CEO Tim Cook and CFO Kevan Parekh.
2:01 pm: The call is opening with an introduction from Suhasini Chandramouli, Apple's head of investor relations, giving the standard notices about forward-looking statements.
2:02 pm: Tim is taking over for introductory remarks.
2:03 pm: "We are reporting $95.4 billion in revenue, up 5% from a year ago and at the high end of the range we provided last quarter. Diluted earnings per share were $1.65, up 8% year over year and a March quarter record. Services achieved an all-time revenue record, growing 12% over the prior year. Quarterly records were also set in the UK, Spain, Finland, Brazil, Chile, Turkey, Poland, India and the Philippines.
2:04 pm: He is also touting the impact Apple is making in the United States, including plans to spend $500 billion over the next four years and expanding facilities in a number of states. A new factory for advanced server manufacturing in Texas will open later this year.
2:05 pm: iPhone revenue was $46.8 billion, up 2% year over year. During the quarter, iPhone 16e was launched, including Apple's newest in-house designed modem. iPhone 16 and 16 Pro "continue to be a hit with our users."
2:06 pm: Mac revenue was $7.9 billion, up 7% year over year. New updates during the quarter included M4 MacBook Air. Mac Studio is "the most powerful Mac we've ever shipped."
2:06 pm: For iPad, revenue was $6.4 billion, up 15% from a year ago. iPad lineup "continues to help users learn, work, play and go wherever their imaginations take them. The new iPad Air with M3 combines powerful performance and exceptional portability." Tim is touting Apple Intelligence across all the devices.
2:08 pm: Wearables, Home and Accessories revenue was $7.5 billion, down 5% from a year ago. Apple Watch Series 10 and AirPods 4 with Active Noise Cancellation, as well as AirPods Pro 2 with the new hearing health features are some of the flagship items of the category, with Apple Vision Pro getting a shoutout as well, with that product now a year old.
2:08 pm: Two retail stores were opened in the quarter, with a new store in the UAE and India coming during this quarter, plus the online store in Saudi Arabia.
2:08 pm: Services reached an all-time revenue record of $26.6 billion, up 12% and reflecting strong performance across all categories.
2:09 pm: Apple TV+ set a record for viewership in the quarter, and the new F1 movie starring Brad Pitt hits theaters this summer. Apple TV+ has earned more than 2,500 award nominations and 560 wins.
2:10 pm: He mentions sports with Friday Night Baseball, MLS Season Pass and Formula 1 on the Apple Sports app.
2:10 pm: iOS 18.4 brings Apple Intelligence to more languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean and Simplified Chinese, as well as localized English in Singapore and India.
2:11 pm: "AI and machine learning are core to so many profound features we've rolled out over the years to help our users live a better day. It's why we designed Apple silicon with a neural engine that powers so many AI features across our products and third-party apps. It's also what makes Apple products the best devices for generative AI."
2:12 pm: He's touting Apple Intelligence extensively, but he's also noting that the "more personal Siri features" need more time to complete "so they meet our high quality bar. We are making progress and we look forward to getting these features into customers' hands."
2:12 pm: Apple continues to make progress on achieving carbon neutrality across the supply chain.
2:13 pm: Now he's addressing tariffs. "We had a limited impact in the March quarter, due to optimizations of our supply chain and inventory."
2:14 pm: For the June quarter, currently, we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter.
However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs. This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter.
2:14 pm: "As we look ahead, we remain confident, confident that we will continue to build the world's best products and services, confident in our ability to innovate and enrich our users' lives, and confident that we can continue to run our business in a way that has always set Apple apart."
2:15 pm: CFO Kevan Parekh is taking over, noting that there was a headwind of 2.5 percentage points from FX challenges, growing in the majority of markets.
2:16 pm: Gross margin was 47.1%, up 20 basis points sequentially, primarily driven by favorable mix. Product gross margin was 35.9%, while services gross margin was 75.7%.
2:16 pm: Net income was $24.8 billion, diluted earnings per share was $1.64, up 8% year over year and a March quarter record.
2:17 pm: iPhone active install base grew to an all-time high in total and across every geographic segment. iPhone was the top-selling model in the US, urban China, UK, Germany, Australia and Japan. 97% customer satisfaction.
2:17 pm: Mac revenue was $7.9 billion, up 7% year over year, with every geographic segment growing year over year. Mac install base grew to an all-time high, with growth for both upgraders and customers new to the Mac. Customer satisfaction was 95% in the US.
2:17 pm: iPad revenue was $6.4 billion, up 15% year over year, with a new all-time high in user base and more than half of customers purchasing an iPad new to the product. Customer satisfaction was 97% in the US.
2:18 pm: Wearables, Home and Accessories revenue was $7.5 billion, down 5%, against a difficult compare last year with the launch of the Apple Vision Pro and Apple Watch Ultra 2.
2:19 pm: Services revenue was $26.6 billion, up 12% year over year, comparable to the December quarter's growth rate when negative impact from FX is removed. Paid accounts grew double digits year over year, as did paid subscriptions. More than 1 billion total paid subscriptions.
2:19 pm: Apple Pay active users reached an all-time record, up double digits year over year.
2:20 pm: In the enterprise, KPMG rolled out iPhone 16 for all US employees. Strong Mac performance in enterprise. MacBook Air is standard computer for Nubank's thousands of employees.
2:21 pm: Regarding cash position, Apple ended the quarter with $133 billion in cash and marketable securities. $98 billion in total debt, with a net cash position of $35 billion. Returned $29 billion to shareholders, including $3.8 billion in dividends and equivalents, and $25 billion through open market repurchases of 108 million Apple shares. $100 billion in share repurchases have been authorized, with dividend increasing to 4% to 26 cents per share, with plans for annual increases in the dividend going forward.
2:22 pm: The color provided assumes that global tariff rates remain in effect as of this call, and that the global macro outlook doesn't worsen from today. Color at the total company level is still being provided. June quarter will grow low to mid single digits year over year. Gross margin between 45.5% and 46.5%, which includes estimated $900 million in tariff-related costs. OpEx to be between $15.3 and $15.5 billion. Tax rate around 16%.
2:22 pm: The Q&A session with analysts is beginning.
2:26 pm: Q: Re iPhone sourcing, you said 50% of US iPhones are currently sourced from India. Is your goal to expand that to 100%? How should we expect that to trend?
A: The existing tariffs that apply to Apple are based on the product's country of origin. For the June quarter, we expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch and AirPods sold in the US. China would continue to be the country of origin for the vast majority of total product sales outside the US.
For the June quarter, most of the tariffs that apply to us, relate to the February IEEPA related tariffs at 20%, for imports to the US of products with China as their country of origin. For 120% tariff, that covers certain categories including AppleCare and some accessories. That brings the total rate in China for those products to 145%.
The vast majority of our products including iPhone, Mac, iPad, Apple Watch and Vision Pro, are currently not subject to the global reciprocal tariffs from April. The Commerce Department has initiated a Section 232 investigation into imports of semiconductors and semiconductor manufacturing equipment and downstream products that contain semiconductors.
For June, we estimate the impact, assuming that the current global tariff rates, policies and applications don't change, to be $900 million. I don't want to predict the mix of production, but wanted to give you clarity for the June quarter on country of origin so you can use that for your modeling.
2:27 pm: Q: There were reports that Apple had pulled forward sales into the channel to get ahead of tariffs. Were sell-in and sell-through in the March quarter? Should they be aligned in the March quarter, and do you see any acceleration in hardware purchases or was behavior normal?
A: In terms of pull-forward in demand, if you look at the March quarter, we don't believe that we saw obvious evidence of a significant pull forward in demand in March due to tariffs. If you look at channel inventory from the beginning of the quarter to the end, unit channel inventory was similar, not only for iPhone but for the balance of our products. You will see that we did build ahead inventory and that's reflected in manufacturing purchase obligations that you'll see on the quarterly filing. I hope that answers all your questions.
2:29 pm: Q: If you'd told me on April 2 that your impact of tariffs was only $900 million, that'd be a pretty good outcome given the panic that ensued. I'm surprised it's that low, and I know that you gave a comment about the impact after the June quarter — can you give us an idea, is that a multiple? Can you give any guidance on if it's bigger or smaller or what.
A: I tried to give some information on country of origin which is currently the key factor in determining the tariffs that we're paying. I don't want to predict the future because I'm not sure what will happen with the tariffs, and there is this Section 232 investigation going on. June has the assumptions in it that I mentioned earlier.
2:32 pm: Q: With regards to China down 2%, you intuitively would have thought that there would have been an increased nationalism and perhaps it would have been worse than that. The trajectory there improving with subsidies benefited your competitors too. Can it keep improving given the geopolitical tensions?
A: Down 2% in the March quarter, we were roughly flat when you remove headwinds from foreign exchange. Channel inventory at the end of March was similar to where we started the quarter. The subsidies played a favorable impact on the results, it's difficult to estimate the precision as to how much but I think it was positive. Some products are included, some are not. Generally on iPhone, if something is priced above 6,000 RMB, it's not eligible and other products have different rules. I do think it helped, and it's helping others as well I'm sure.
iPhone was the key driver of the improvement sequentially. Hopefully that provides some color. The Mac, iPad and Watch are attracting a majority of customers new to that product. That continues to look quite good in China and iPhone was the top two models in urban China, and iPad was the top two tablets in urban China. Some positive nuggets there.
2:33 pm: Q: Appreciated the transparency around building ahead with inventory, will you continue to do that until we get clarity on the Section 232 investigation, and what's your philosophy on pricing and elevated costs that come through, whether to resellers or end consumers?
A: We are engaged on tariff discussions. We believe in engagement and we will continue to engage. On pricing, we have nothing to announce today, and the operational team has done an incredible job around optimizing the supply chain and the inventory, and we'll continue to do those things to the degree that we can.
2:34 pm: Q: On product gross margin, can you provide some color on factors that might have impacted product GM in the quarter, down sequentially on seasonal factors, but year over year decline as well. Any additional color would be helpful.
A: On sequential, we had decrease by 340 basis points sequentially driven by mix, seasonal loss of leverage, and foreign exchange, partially offset by cost savings. Year over year, down 70 BP, driven by a different mix and FX.
2:35 pm: Q: Talked about $900 million hit to product sales, what are the benefits to the June quarter and what would the impact be without them?
A: Wouldn't want to go through all of them, but the build-ahead in the manufacturing purchase obligations were helpful.
2:36 pm: Q: Do you expect Services growth to remain in the double digit range thorugh the back half of the year and how does Services stack up in the June quarter?
A: Low to mid single-digit improvement year over year, with FX to improve sequentially, but a slight headwind to revenue year over year, but we aren't providing category-levels of color today.
2:39 pm: Q: How should investors think about the gross margin trajectory as you source more from the US or other supply chain changes, including in India, how should those go into the cost structure?
A: We're excited about bringing more production to the US, as you know we've been very key in the TSMC project in Arizona and are the largest and first customer getting product out of that. That's the SoC that's coming out of there. We also have glass coming out of the US and the Face ID module. And loads of chips, some 19 billion coming out across 12 states, down to the resistor and capacitor level. Some of that is already built into the margins that Kevan has quoted and we don't forecast beyond the current quarter.
Re margin going forward, every product cycle is different. We've managed gross margin well, we've made good decisions. As we launch new products, they tend to have a higher cost structure than the products they replace. As we introduce new features and technologies, we have a track record of reducing cost structures over the life of the product.
2:40 pm: Q: Could you share color around what you have seen in developer behavior in Europe where there has been emergency of alternate app stores for a little more time, anecdotally or in your data, in terms of dev behavior large or small? Any color on what has actually happened?
A: It's embedded in our results. Embedded in the overall company color that was provided. As you know, the digital markets act went into effect in March of last year, so the DMA has been enacted for a bit over a year and there's been alternate app stores for some period of time of that. At this point, in Europe, it's embedded in the actuals. There may be more to come and so forth, but I don't want to predict beyond the current quarter.
2:43 pm: Q: Can you update us on your thoughts about your resiliency and redundancy following the changes you've talked about on the supply chain? Where's the supply chain 2-3 years from now and is there risk of export control issues? You quantified a $900 million hit from tariffs, but is there a hit from how you're thinking about demand backdrop holistically?
A: In terms of resiliency and risk, we have a complex supply chain, there's always risk in the supply chain and I wouldn't tell you anything different from that. What we learned some time ago, having everything in one location had too much risk with it. We have, over time, with certain parts of the supply chain, opened up new sources of supply. You could see that kind of thing continuing in the future.
Our best thinking is captured in the outlook we've provided. But the assumptions we made, assume that the global tariff rates and policies remain the same, and that the global macro outlook doesn't worsen from today.
Q: No quantifiable impact on demand to date, where we are over the last month?
A: Our best thinking is reflected in the range we provided.
2:44 pm: Q: You made a comment on Apple Intelligence making an impact on iPhone sales in the countries where it was available. Has that continued to play out in the broader number of countries as you've rolled that out?
A: During the March quarter, we saw year over year performance in countries with Apple Intelligence, it was stronger than those countries where Apple Intelligence was not available. Many of the upgrades you're referring to rolled out in April, which is Q3.
2:45 pm: Q: You've had opinions of consumers reacting to overall macro, and prefaced your guidance with macro remaining consistent... what's the reaction in how consumers are reacting to the macro at this point?
A: I'm not an economist so I start by saying that. From a total company point of view, our results accelerated sequentially to the 5% level and the US is the vast majority of the Americas segment and you can see how the Americas performed during the quarter. I don't want to try to predict what happens in the months from now but I'm quite pleased with the results from Q2.
2:47 pm: Q: How should we think about how much CapEx is in R&D, how much is in TSMC, Texas server, any color on the $500 billion in investment?
A: There's lots in all of it, but we're not giving out the exact split. As we expand facilities in different states, Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, Washington, there will be CapEx and OpEx involved in all of it. Standing up our server manufacturing in Texas will be through a partner, as we do with manufacturing, putting a fair amount in cost of goods sold to do that, some OpEx, some CapEx, so it's a bit of all of it.
2:48 pm: Q: A longer term philosophical question, you've spoken about AI on the edge, from iPhone and Mac angle, looking at AI on the edge, are the current smartphone and silicon specs good enough to reach LLM inference, how should we think about the evolution of edge devices here?
A: As you know, we're shipping an LLM on the iPhone 16 today. There are some of the queries used by our customers are on-device, and others are going to the private cloud where we mimic the security and privacy in the device into the cloud. Others, for world knowledge, use the integration with ChatGPT. We continue to be very excited about the opportunities here, we're very excited about the roadmap, and we are pleased with the progress that we're making.
2:51 pm: Q: I won't ask about tariffs. Given that you said new Siri is taking longer than you thought to deliver, what are some of the learnings you had from those delays, are they related to legacy software stack, organizational factors, or a matter of R&D spending? What are factors investors should look for at WWDC or beyond that Apple can deliver on the promises that it's made?
A: At WWDC, we've talked about a number of different features that would launch with iOS 18, we've released a slew of those from writing tools to seamlessly connecting to ChatGPT to image playground, image wand, visual intelligence, making movies of your memories with a prompt, AI-powered photo search, smart replies, priority notifications, the list goes on. Recently, we expanded it into different languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean, Simplified Chinese... but with regard to more personal Siri, we just need more time to complete the work so it meets our quality bar. There's not a lot of other reason for it, it's just taking a bit longer than we thought. We are making progress and are extremely excited to get the more personal features out there.
We make significant investments in our R&D, and we are making all the investments we think we need to enable our roadmap.
2:52 pm: Q: Hard to ignore some of the very high profile legal cases that touch on Apple, Google antitrust, Epic injunction, do you have ample ways to mitigate some of the negative impacts on Apple Services business that might come about in legal rather than commercial pressures?
A: The case yesterday, we strongly disagree with it. We've complied with the court's order and we're going to appeal. In the Google case, that's ongoing so I don't have anything to add. But as you point out, there is risk associated with them and the outcome is unclear.
2:55 pm: Q: I want to go back to the AI strategy a little bit. You talked about building your own foundational models, how important do you think it is for Apple to have its own models and dovetailed with that, how do you think about your data center footprint with Apple spending $3 billion a quarter relative to companies spending multiples of that? How does the strategy play out in your opinion?
A: On the data center side, we have a hybrid strategy. We utilitize third parties in addition to the data center investments that we're making. As I mentioned, in the $500 billion, there's a number of states that we're expanding in, some of those are data center investments. We do plan on making investments in that area and we're not gating it. We invest in the business first. We want to have certain models and we'll partner as well, so I don't view it as an all of one or all of the other, what's on device or what's in the Private Cloud Compute.
2:56 pm: Q: With the iPhone 16 e, internalizing your C1 modem, how do you see that modem strategy playing out?
A: We're excited to ship the first one and get it out there, we love to ship better products from a point of view of focusing on battery life and other things customers want. We've just started on that journey is how I would put it.
2:56 pm: The call is concluded!
This article, "Apple Reports 2Q 2025 Results: $24.8B Profit on $95.4B Revenue" first appeared on MacRumors.com
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For the quarter, Apple posted revenue of $95.4 billion and net quarterly profit of $24.8 billion, or $1.65 per diluted share, compared to revenue of $90.8 billion and net quarterly profit of $23.6 billion, or $1.53 per diluted share, in the year-ago quarter. Services revenue reached an all-time high during the quarter, while earnings per share set a March quarter record.
Gross margin for the quarter was 47.1 percent, compared to 46.6 percent in the year-ago quarter. Apple's board of directors also authorized an additional $100 billion for share repurchases and declared an increased dividend payment of $0.26 per share, up from $0.25 per share. The dividend is payable May 15 to shareholders of record as of May 12.
"Today Apple is reporting strong quarterly results, including double-digit growth in Services," said Tim Cook, Apple's CEO. "We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we've cut our carbon emissions by 60 percent over the past decade."As has been the case for over five years now, Apple is once again not issuing guidance for the current quarter ending in June.
Apple will provide live streaming of its fiscal Q2 2025 financial results conference call at 2:00 pm Pacific, and MacRumors will update this story with coverage of the conference call highlights.
Conference call recap ahead...
1:37 pm: "Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders," said Kevan Parekh, Apple's CFO. "And thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments."
1:38 pm: Apple's share price is down around 2.5% in after-hours trading following the earnings release, after rising about 0.4% in regular trading earlier today.
1:41 pm: iPad revenue was up 15.2% year-over-year while Services revenue was up 11.6%, Mac revenue was up 6.7%, and iPhone revenue was up 1.9%. Wearables, Home, and Accessories was the only product category to see a year-over-year revenue decline, dropping 4.9%.
1:44 pm: On a geographic basis, Japan led the way in revenue increase at 16.5% year-over-year, the rest of Asia Pacific excluding Greater China saw an 8.4% increase, the Americas saw an 8.2% increase, and Europe saw a 1.4% increase. Greater China was the only geographic segment to see a decline at –2.3%.
2:00 pm: Apple's earnings call should be begining momentarily. On the call should be Apple CEO Tim Cook and CFO Kevan Parekh.
2:01 pm: The call is opening with an introduction from Suhasini Chandramouli, Apple's head of investor relations, giving the standard notices about forward-looking statements.
2:02 pm: Tim is taking over for introductory remarks.
2:03 pm: "We are reporting $95.4 billion in revenue, up 5% from a year ago and at the high end of the range we provided last quarter. Diluted earnings per share were $1.65, up 8% year over year and a March quarter record. Services achieved an all-time revenue record, growing 12% over the prior year. Quarterly records were also set in the UK, Spain, Finland, Brazil, Chile, Turkey, Poland, India and the Philippines.
2:04 pm: He is also touting the impact Apple is making in the United States, including plans to spend $500 billion over the next four years and expanding facilities in a number of states. A new factory for advanced server manufacturing in Texas will open later this year.
2:05 pm: iPhone revenue was $46.8 billion, up 2% year over year. During the quarter, iPhone 16e was launched, including Apple's newest in-house designed modem. iPhone 16 and 16 Pro "continue to be a hit with our users."
2:06 pm: Mac revenue was $7.9 billion, up 7% year over year. New updates during the quarter included M4 MacBook Air. Mac Studio is "the most powerful Mac we've ever shipped."
2:06 pm: For iPad, revenue was $6.4 billion, up 15% from a year ago. iPad lineup "continues to help users learn, work, play and go wherever their imaginations take them. The new iPad Air with M3 combines powerful performance and exceptional portability." Tim is touting Apple Intelligence across all the devices.
2:08 pm: Wearables, Home and Accessories revenue was $7.5 billion, down 5% from a year ago. Apple Watch Series 10 and AirPods 4 with Active Noise Cancellation, as well as AirPods Pro 2 with the new hearing health features are some of the flagship items of the category, with Apple Vision Pro getting a shoutout as well, with that product now a year old.
2:08 pm: Two retail stores were opened in the quarter, with a new store in the UAE and India coming during this quarter, plus the online store in Saudi Arabia.
2:08 pm: Services reached an all-time revenue record of $26.6 billion, up 12% and reflecting strong performance across all categories.
2:09 pm: Apple TV+ set a record for viewership in the quarter, and the new F1 movie starring Brad Pitt hits theaters this summer. Apple TV+ has earned more than 2,500 award nominations and 560 wins.
2:10 pm: He mentions sports with Friday Night Baseball, MLS Season Pass and Formula 1 on the Apple Sports app.
2:10 pm: iOS 18.4 brings Apple Intelligence to more languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean and Simplified Chinese, as well as localized English in Singapore and India.
2:11 pm: "AI and machine learning are core to so many profound features we've rolled out over the years to help our users live a better day. It's why we designed Apple silicon with a neural engine that powers so many AI features across our products and third-party apps. It's also what makes Apple products the best devices for generative AI."
2:12 pm: He's touting Apple Intelligence extensively, but he's also noting that the "more personal Siri features" need more time to complete "so they meet our high quality bar. We are making progress and we look forward to getting these features into customers' hands."
2:12 pm: Apple continues to make progress on achieving carbon neutrality across the supply chain.
2:13 pm: Now he's addressing tariffs. "We had a limited impact in the March quarter, due to optimizations of our supply chain and inventory."
2:14 pm: For the June quarter, currently, we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter.
However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs. This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter.
2:14 pm: "As we look ahead, we remain confident, confident that we will continue to build the world's best products and services, confident in our ability to innovate and enrich our users' lives, and confident that we can continue to run our business in a way that has always set Apple apart."
2:15 pm: CFO Kevan Parekh is taking over, noting that there was a headwind of 2.5 percentage points from FX challenges, growing in the majority of markets.
2:16 pm: Gross margin was 47.1%, up 20 basis points sequentially, primarily driven by favorable mix. Product gross margin was 35.9%, while services gross margin was 75.7%.
2:16 pm: Net income was $24.8 billion, diluted earnings per share was $1.64, up 8% year over year and a March quarter record.
2:17 pm: iPhone active install base grew to an all-time high in total and across every geographic segment. iPhone was the top-selling model in the US, urban China, UK, Germany, Australia and Japan. 97% customer satisfaction.
2:17 pm: Mac revenue was $7.9 billion, up 7% year over year, with every geographic segment growing year over year. Mac install base grew to an all-time high, with growth for both upgraders and customers new to the Mac. Customer satisfaction was 95% in the US.
2:17 pm: iPad revenue was $6.4 billion, up 15% year over year, with a new all-time high in user base and more than half of customers purchasing an iPad new to the product. Customer satisfaction was 97% in the US.
2:18 pm: Wearables, Home and Accessories revenue was $7.5 billion, down 5%, against a difficult compare last year with the launch of the Apple Vision Pro and Apple Watch Ultra 2.
2:19 pm: Services revenue was $26.6 billion, up 12% year over year, comparable to the December quarter's growth rate when negative impact from FX is removed. Paid accounts grew double digits year over year, as did paid subscriptions. More than 1 billion total paid subscriptions.
2:19 pm: Apple Pay active users reached an all-time record, up double digits year over year.
2:20 pm: In the enterprise, KPMG rolled out iPhone 16 for all US employees. Strong Mac performance in enterprise. MacBook Air is standard computer for Nubank's thousands of employees.
2:21 pm: Regarding cash position, Apple ended the quarter with $133 billion in cash and marketable securities. $98 billion in total debt, with a net cash position of $35 billion. Returned $29 billion to shareholders, including $3.8 billion in dividends and equivalents, and $25 billion through open market repurchases of 108 million Apple shares. $100 billion in share repurchases have been authorized, with dividend increasing to 4% to 26 cents per share, with plans for annual increases in the dividend going forward.
2:22 pm: The color provided assumes that global tariff rates remain in effect as of this call, and that the global macro outlook doesn't worsen from today. Color at the total company level is still being provided. June quarter will grow low to mid single digits year over year. Gross margin between 45.5% and 46.5%, which includes estimated $900 million in tariff-related costs. OpEx to be between $15.3 and $15.5 billion. Tax rate around 16%.
2:22 pm: The Q&A session with analysts is beginning.
2:26 pm: Q: Re iPhone sourcing, you said 50% of US iPhones are currently sourced from India. Is your goal to expand that to 100%? How should we expect that to trend?
A: The existing tariffs that apply to Apple are based on the product's country of origin. For the June quarter, we expect the majority of iPhones sold in the US will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch and AirPods sold in the US. China would continue to be the country of origin for the vast majority of total product sales outside the US.
For the June quarter, most of the tariffs that apply to us, relate to the February IEEPA related tariffs at 20%, for imports to the US of products with China as their country of origin. For 120% tariff, that covers certain categories including AppleCare and some accessories. That brings the total rate in China for those products to 145%.
The vast majority of our products including iPhone, Mac, iPad, Apple Watch and Vision Pro, are currently not subject to the global reciprocal tariffs from April. The Commerce Department has initiated a Section 232 investigation into imports of semiconductors and semiconductor manufacturing equipment and downstream products that contain semiconductors.
For June, we estimate the impact, assuming that the current global tariff rates, policies and applications don't change, to be $900 million. I don't want to predict the mix of production, but wanted to give you clarity for the June quarter on country of origin so you can use that for your modeling.
2:27 pm: Q: There were reports that Apple had pulled forward sales into the channel to get ahead of tariffs. Were sell-in and sell-through in the March quarter? Should they be aligned in the March quarter, and do you see any acceleration in hardware purchases or was behavior normal?
A: In terms of pull-forward in demand, if you look at the March quarter, we don't believe that we saw obvious evidence of a significant pull forward in demand in March due to tariffs. If you look at channel inventory from the beginning of the quarter to the end, unit channel inventory was similar, not only for iPhone but for the balance of our products. You will see that we did build ahead inventory and that's reflected in manufacturing purchase obligations that you'll see on the quarterly filing. I hope that answers all your questions.
2:29 pm: Q: If you'd told me on April 2 that your impact of tariffs was only $900 million, that'd be a pretty good outcome given the panic that ensued. I'm surprised it's that low, and I know that you gave a comment about the impact after the June quarter — can you give us an idea, is that a multiple? Can you give any guidance on if it's bigger or smaller or what.
A: I tried to give some information on country of origin which is currently the key factor in determining the tariffs that we're paying. I don't want to predict the future because I'm not sure what will happen with the tariffs, and there is this Section 232 investigation going on. June has the assumptions in it that I mentioned earlier.
2:32 pm: Q: With regards to China down 2%, you intuitively would have thought that there would have been an increased nationalism and perhaps it would have been worse than that. The trajectory there improving with subsidies benefited your competitors too. Can it keep improving given the geopolitical tensions?
A: Down 2% in the March quarter, we were roughly flat when you remove headwinds from foreign exchange. Channel inventory at the end of March was similar to where we started the quarter. The subsidies played a favorable impact on the results, it's difficult to estimate the precision as to how much but I think it was positive. Some products are included, some are not. Generally on iPhone, if something is priced above 6,000 RMB, it's not eligible and other products have different rules. I do think it helped, and it's helping others as well I'm sure.
iPhone was the key driver of the improvement sequentially. Hopefully that provides some color. The Mac, iPad and Watch are attracting a majority of customers new to that product. That continues to look quite good in China and iPhone was the top two models in urban China, and iPad was the top two tablets in urban China. Some positive nuggets there.
2:33 pm: Q: Appreciated the transparency around building ahead with inventory, will you continue to do that until we get clarity on the Section 232 investigation, and what's your philosophy on pricing and elevated costs that come through, whether to resellers or end consumers?
A: We are engaged on tariff discussions. We believe in engagement and we will continue to engage. On pricing, we have nothing to announce today, and the operational team has done an incredible job around optimizing the supply chain and the inventory, and we'll continue to do those things to the degree that we can.
2:34 pm: Q: On product gross margin, can you provide some color on factors that might have impacted product GM in the quarter, down sequentially on seasonal factors, but year over year decline as well. Any additional color would be helpful.
A: On sequential, we had decrease by 340 basis points sequentially driven by mix, seasonal loss of leverage, and foreign exchange, partially offset by cost savings. Year over year, down 70 BP, driven by a different mix and FX.
2:35 pm: Q: Talked about $900 million hit to product sales, what are the benefits to the June quarter and what would the impact be without them?
A: Wouldn't want to go through all of them, but the build-ahead in the manufacturing purchase obligations were helpful.
2:36 pm: Q: Do you expect Services growth to remain in the double digit range thorugh the back half of the year and how does Services stack up in the June quarter?
A: Low to mid single-digit improvement year over year, with FX to improve sequentially, but a slight headwind to revenue year over year, but we aren't providing category-levels of color today.
2:39 pm: Q: How should investors think about the gross margin trajectory as you source more from the US or other supply chain changes, including in India, how should those go into the cost structure?
A: We're excited about bringing more production to the US, as you know we've been very key in the TSMC project in Arizona and are the largest and first customer getting product out of that. That's the SoC that's coming out of there. We also have glass coming out of the US and the Face ID module. And loads of chips, some 19 billion coming out across 12 states, down to the resistor and capacitor level. Some of that is already built into the margins that Kevan has quoted and we don't forecast beyond the current quarter.
Re margin going forward, every product cycle is different. We've managed gross margin well, we've made good decisions. As we launch new products, they tend to have a higher cost structure than the products they replace. As we introduce new features and technologies, we have a track record of reducing cost structures over the life of the product.
2:40 pm: Q: Could you share color around what you have seen in developer behavior in Europe where there has been emergency of alternate app stores for a little more time, anecdotally or in your data, in terms of dev behavior large or small? Any color on what has actually happened?
A: It's embedded in our results. Embedded in the overall company color that was provided. As you know, the digital markets act went into effect in March of last year, so the DMA has been enacted for a bit over a year and there's been alternate app stores for some period of time of that. At this point, in Europe, it's embedded in the actuals. There may be more to come and so forth, but I don't want to predict beyond the current quarter.
2:43 pm: Q: Can you update us on your thoughts about your resiliency and redundancy following the changes you've talked about on the supply chain? Where's the supply chain 2-3 years from now and is there risk of export control issues? You quantified a $900 million hit from tariffs, but is there a hit from how you're thinking about demand backdrop holistically?
A: In terms of resiliency and risk, we have a complex supply chain, there's always risk in the supply chain and I wouldn't tell you anything different from that. What we learned some time ago, having everything in one location had too much risk with it. We have, over time, with certain parts of the supply chain, opened up new sources of supply. You could see that kind of thing continuing in the future.
Our best thinking is captured in the outlook we've provided. But the assumptions we made, assume that the global tariff rates and policies remain the same, and that the global macro outlook doesn't worsen from today.
Q: No quantifiable impact on demand to date, where we are over the last month?
A: Our best thinking is reflected in the range we provided.
2:44 pm: Q: You made a comment on Apple Intelligence making an impact on iPhone sales in the countries where it was available. Has that continued to play out in the broader number of countries as you've rolled that out?
A: During the March quarter, we saw year over year performance in countries with Apple Intelligence, it was stronger than those countries where Apple Intelligence was not available. Many of the upgrades you're referring to rolled out in April, which is Q3.
2:45 pm: Q: You've had opinions of consumers reacting to overall macro, and prefaced your guidance with macro remaining consistent... what's the reaction in how consumers are reacting to the macro at this point?
A: I'm not an economist so I start by saying that. From a total company point of view, our results accelerated sequentially to the 5% level and the US is the vast majority of the Americas segment and you can see how the Americas performed during the quarter. I don't want to try to predict what happens in the months from now but I'm quite pleased with the results from Q2.
2:47 pm: Q: How should we think about how much CapEx is in R&D, how much is in TSMC, Texas server, any color on the $500 billion in investment?
A: There's lots in all of it, but we're not giving out the exact split. As we expand facilities in different states, Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, Washington, there will be CapEx and OpEx involved in all of it. Standing up our server manufacturing in Texas will be through a partner, as we do with manufacturing, putting a fair amount in cost of goods sold to do that, some OpEx, some CapEx, so it's a bit of all of it.
2:48 pm: Q: A longer term philosophical question, you've spoken about AI on the edge, from iPhone and Mac angle, looking at AI on the edge, are the current smartphone and silicon specs good enough to reach LLM inference, how should we think about the evolution of edge devices here?
A: As you know, we're shipping an LLM on the iPhone 16 today. There are some of the queries used by our customers are on-device, and others are going to the private cloud where we mimic the security and privacy in the device into the cloud. Others, for world knowledge, use the integration with ChatGPT. We continue to be very excited about the opportunities here, we're very excited about the roadmap, and we are pleased with the progress that we're making.
2:51 pm: Q: I won't ask about tariffs. Given that you said new Siri is taking longer than you thought to deliver, what are some of the learnings you had from those delays, are they related to legacy software stack, organizational factors, or a matter of R&D spending? What are factors investors should look for at WWDC or beyond that Apple can deliver on the promises that it's made?
A: At WWDC, we've talked about a number of different features that would launch with iOS 18, we've released a slew of those from writing tools to seamlessly connecting to ChatGPT to image playground, image wand, visual intelligence, making movies of your memories with a prompt, AI-powered photo search, smart replies, priority notifications, the list goes on. Recently, we expanded it into different languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean, Simplified Chinese... but with regard to more personal Siri, we just need more time to complete the work so it meets our quality bar. There's not a lot of other reason for it, it's just taking a bit longer than we thought. We are making progress and are extremely excited to get the more personal features out there.
We make significant investments in our R&D, and we are making all the investments we think we need to enable our roadmap.
2:52 pm: Q: Hard to ignore some of the very high profile legal cases that touch on Apple, Google antitrust, Epic injunction, do you have ample ways to mitigate some of the negative impacts on Apple Services business that might come about in legal rather than commercial pressures?
A: The case yesterday, we strongly disagree with it. We've complied with the court's order and we're going to appeal. In the Google case, that's ongoing so I don't have anything to add. But as you point out, there is risk associated with them and the outcome is unclear.
2:55 pm: Q: I want to go back to the AI strategy a little bit. You talked about building your own foundational models, how important do you think it is for Apple to have its own models and dovetailed with that, how do you think about your data center footprint with Apple spending $3 billion a quarter relative to companies spending multiples of that? How does the strategy play out in your opinion?
A: On the data center side, we have a hybrid strategy. We utilitize third parties in addition to the data center investments that we're making. As I mentioned, in the $500 billion, there's a number of states that we're expanding in, some of those are data center investments. We do plan on making investments in that area and we're not gating it. We invest in the business first. We want to have certain models and we'll partner as well, so I don't view it as an all of one or all of the other, what's on device or what's in the Private Cloud Compute.
2:56 pm: Q: With the iPhone 16 e, internalizing your C1 modem, how do you see that modem strategy playing out?
A: We're excited to ship the first one and get it out there, we love to ship better products from a point of view of focusing on battery life and other things customers want. We've just started on that journey is how I would put it.
2:56 pm: The call is concluded!
Tag: Earnings
This article, "Apple Reports 2Q 2025 Results: $24.8B Profit on $95.4B Revenue" first appeared on MacRumors.com
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Apple reports Q2 2025 earnings with $95.4 billion in revenue
Apple has released its earnings report for fiscal Q2 2025. The company reports $95.4 billion in revenue during the three-month period. That compares to $90.75 billion during the same quarter a year ago. Wall Street expected $94.68 billion in revenue. Profit from revenue includes $24.78 billion.
more…Spotify, Patreon among major apps already working to bypass Apple fees
Yesterday’s big court ruling against Apple is opening the floodgates for developers to offer their own in-app payment options with no Apple fees. As a result, unsurprisingly major companies like Spotify, Patreon, and more have confirmed they’re hard at work preparing updates to bypass Apple’s payment system and 30% fee.
more…Patreon Planning iOS App Update to Skirt In-App Purchases
Patreon plans to update its iOS app with new functionality that will allow creators to accept payments from followers without having to pay Apple's in-app purchase fees, a Patreon spokesperson told The Verge.
In 2024, Apple forced Patreon to adopt support for the in-app purchase system, which meant that Apple started taking a 30 percent cut of all payments made to creators. Patreon gave creators the option of increasing their prices in just the iOS app, or absorbing the fee to keep prices the same across all platforms. Creators had to raise prices in the iOS app, lose money to pay Apple's cut, or encourage customers to subscribe on the web.
As of right now, Apple is still collecting a 30 percent App Store fee for all memberships purchased via Patreon for iOS, and for other digital goods purchased from Patreon shops.
Patreon does not have a timeline for when it plans to submit its app update with out-of-app payment options, and Apple also hasn't outlined exactly when it will change its App Store rules.
Apple has been ordered to stop restricting developers from informing customers about purchase options outside of an app in the U.S., and from collecting fees for out-of-app purchases.
The court said that it "will not tolerate further delays" and that the ruling, which was issued yesterday, was effective immediately.
This article, "Patreon Planning iOS App Update to Skirt In-App Purchases" first appeared on MacRumors.com
Discuss this article in our forums
This is a huge moment for creators and their businesses. The iOS app is the number one platform for fan engagement on Patreon, and we believe this ruling allows creators to get paid without giving Apple 30 percent. As a first step, we will submit an app update for review by Apple to enable payments outside of IAP so creators keep more from iOS based fan payments.
In 2024, Apple forced Patreon to adopt support for the in-app purchase system, which meant that Apple started taking a 30 percent cut of all payments made to creators. Patreon gave creators the option of increasing their prices in just the iOS app, or absorbing the fee to keep prices the same across all platforms. Creators had to raise prices in the iOS app, lose money to pay Apple's cut, or encourage customers to subscribe on the web.
As of right now, Apple is still collecting a 30 percent App Store fee for all memberships purchased via Patreon for iOS, and for other digital goods purchased from Patreon shops.
Patreon does not have a timeline for when it plans to submit its app update with out-of-app payment options, and Apple also hasn't outlined exactly when it will change its App Store rules.
Apple has been ordered to stop restricting developers from informing customers about purchase options outside of an app in the U.S., and from collecting fees for out-of-app purchases.
The court said that it "will not tolerate further delays" and that the ruling, which was issued yesterday, was effective immediately.
Tag: Patreon
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Rumor Replay: iPhone 17’s AI upgrade, iOS 18.5, and Vision ‘Air’ release
This is Rumor Replay, a weekly column at 9to5Mac offering a quick rundown of the most recent Apple product rumors, with analysis and commentary. Today: iPhone 17 and 18 AI upgrades, ‘Apple Vision Air’ release timing, and iOS 18.5’s upcoming hidden features. Here are this week’s Apple rumors.
more…Google Rolling Out New AI Mode Tab for Search
Google today announced that it is starting to roll out a dedicated AI Mode tab for Google Search. A "small percentage" of people in the United States will start seeing the AI Mode option "in the coming weeks."
AI Mode is a feature that Google has been testing with its Labs feature. It is a dedicated search option like News, Images, and Shopping, providing AI answers to queries directly in the search interface. AI Mode uses Gemini 2.0, Google's core AI model.
In addition to starting to roll out AI Mode as a standard search feature, Google is bringing the AI Mode option to all U.S. users who want to try it through Google Labs.
AI Mode is similar to the AI summaries that Google provides for standard searches, but it cuts out typical search results entirely, providing only an AI-based answer that's pulled from different websites and data on the web.
Google is bolstering AI Mode with visual place and product cards that offer an option to tap to get more information. For restaurants, salons, and stores, these cards will provide information like ratings, reviews, hours, and store inventory.
There's also now a dedicated left-side panel that includes an AI history for returning to past searches for follow-up questions.
Separately, Google has also started testing ads for some third-party AI assistants. According to Bloomberg, Google's AdSense network is running ads in some chatbot conversations, and Google confirmed that AdSense for Search is available for websites that want to show ads in their conversational AI experiences.
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AI Mode is a feature that Google has been testing with its Labs feature. It is a dedicated search option like News, Images, and Shopping, providing AI answers to queries directly in the search interface. AI Mode uses Gemini 2.0, Google's core AI model.
In addition to starting to roll out AI Mode as a standard search feature, Google is bringing the AI Mode option to all U.S. users who want to try it through Google Labs.
The new AI Mode experiment in Search uses advanced reasoning, thinking and multimodal capabilities from Gemini to help with even your toughest questions. You can ask whatever's on your mind and get an AI-powered response with the ability to explore further with follow-up questions and helpful web links. AI Mode does the heavy lifting for you, intelligently organizing information and gives you easy-to-digest breakdowns.
AI Mode is similar to the AI summaries that Google provides for standard searches, but it cuts out typical search results entirely, providing only an AI-based answer that's pulled from different websites and data on the web.
Google is bolstering AI Mode with visual place and product cards that offer an option to tap to get more information. For restaurants, salons, and stores, these cards will provide information like ratings, reviews, hours, and store inventory.
There's also now a dedicated left-side panel that includes an AI history for returning to past searches for follow-up questions.
Separately, Google has also started testing ads for some third-party AI assistants. According to Bloomberg, Google's AdSense network is running ads in some chatbot conversations, and Google confirmed that AdSense for Search is available for websites that want to show ads in their conversational AI experiences.
Tag: Google
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Epic win against Apple, iPhone 17 air dummy models, iOS 19 rumors
Benjamin and Chance react to the huge developments in the Epic vs. Apple case, with Apple now compelled to allow free rein links out to the web, with no commission. Also this week, we get our best look yet at the super-slim iPhone 17 Air, there are intriguing rumors about iOS 19 and iPadOS 19, and Apple quietly launches a bizarre new microsite on its website.
And in Happy Hour Plus, understandably, Chance gives up on Mac support for HomePod audio output. Subscribe at 9to5mac.com/join.
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JIT enabler lands on App Store, likely unlocking Wii and Switch emulation on iOS
Despite Apple reversing its stance on console emulators in the App Store a year ago, GameCube and Wii emulators have largely remained absent from the iPhone and iPad — until now, perhaps.
more…iOS 19 multitasking upgrade sounds perfect for Apple’s foldables
Apple will unveil iOS 19 next month, bringing a big redesign, Siri with AI, an AirPods upgrade, and more. Rumors point to another key feature coming to iOS and iPadOS 19 that will be a perfect fit for next year’s new foldable iPhone and iPad: multitasking via ‘Stage Manager 2.0.’
more…Stripe shows developers how to bypass Apple’s in-app payment cut
Payments processor Stripe has published new documentation for developers looking to accept out-of-app payments for digital goods and subscriptions on iPhone and iPad.
The move follows a court ruling that bars Apple from preventing developers from directing users to web-based payment options from within their apps.
more…Epic Games targets Apple with zero-commission plan and App Store workaround
Less than 24 hours after Apple’s legal defeat over its App Store model, Epic Games is wasting no time. For starters, Fortnite is set to return to the iOS App Store in the U.S. next week. Under the court’s order, Apple can no longer block apps from directing users to the web to purchase digital content. I’s also barred from collecting a 27% commission on those web-based sales that originate from App Store apps.
Meanwhile, Epic Games has announced two new business moves — one of which takes direct aim at Apple’s in-app purchase revenue model.
more…Epic Games Setting Up Webshops for iOS Developers to Offer Users Out-of-App Purchases
Epic Games today announced plans for Epic Games Store Webshops, a feature that will allow developers to launch digital storefronts that are hosted by the Epic Games Store. With Apple's mandated App Store rule changes in the United States, developers will soon be able to direct customers to web shops to make out-of-app purchases, bypassing the in-app purchase flow.
The Epic Games Store will charge developers a 0 percent fee for the first $1,000,000 in revenue they collect per app per year, and after that, developers will need to pay Epic a 12 percent cut. The fees are applicable to all payments that are processed by the Epic Games Store. Epic Games also says that players that spend in Epic Webshops will be able to accrue 5 percent Epic Rewards on all purchases.
Many smaller games do not exceed $1 million in revenue per year, so the Epic Games Store Webshop could be a viable option for small and independent developers. Developers that earn more will likely want to set up their own payment options using online payment platforms like Stripe or Shopify for even lower fees.
Epic's announcement follows a ruling yesterday that will see Apple forced to make major updates to its U.S. App Store policies as part of an ongoing App Store dispute with Epic Games. Apple cannot prevent developers from directing customers to better deals outside of the App Store, nor can the company collect fees for these purchases, among other changes.
Apple was ordered to comply with the order immediately, and the court said that it "will not tolerate further delays." Apple said that it plans to implement the changes as ordered, though it will appeal the decision.
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The Epic Games Store will charge developers a 0 percent fee for the first $1,000,000 in revenue they collect per app per year, and after that, developers will need to pay Epic a 12 percent cut. The fees are applicable to all payments that are processed by the Epic Games Store. Epic Games also says that players that spend in Epic Webshops will be able to accrue 5 percent Epic Rewards on all purchases.
Many smaller games do not exceed $1 million in revenue per year, so the Epic Games Store Webshop could be a viable option for small and independent developers. Developers that earn more will likely want to set up their own payment options using online payment platforms like Stripe or Shopify for even lower fees.
Epic's announcement follows a ruling yesterday that will see Apple forced to make major updates to its U.S. App Store policies as part of an ongoing App Store dispute with Epic Games. Apple cannot prevent developers from directing customers to better deals outside of the App Store, nor can the company collect fees for these purchases, among other changes.
Apple was ordered to comply with the order immediately, and the court said that it "will not tolerate further delays." Apple said that it plans to implement the changes as ordered, though it will appeal the decision.
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Apple Pay Has a Mother's Day Offer
Mother's Day is coming up on Sunday, May 11, and you can save on a bouquet from the website 1-800-Flowers when you pay with Apple Pay.
Now through May 9, you can get $20 off a bouquet and select other merchandise when you spend at least $49.99 at 1-800-Flowers.com, or in the 1-800-Flowers app, in the United States. To qualify for the discount, the purchase must be completed with Apple Pay, and you must enter the promo code APPLEPAY at checkout.
"Brighten Mom's day with beautiful flowers and more," says Apple, in an email about the offer.
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Now through May 9, you can get $20 off a bouquet and select other merchandise when you spend at least $49.99 at 1-800-Flowers.com, or in the 1-800-Flowers app, in the United States. To qualify for the discount, the purchase must be completed with Apple Pay, and you must enter the promo code APPLEPAY at checkout.
"Brighten Mom's day with beautiful flowers and more," says Apple, in an email about the offer.
Related Roundup: Apple Pay
Related Forum: Apple Music, Apple Pay/Card, iCloud, Fitness+
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9to5Mac Daily: May 1, 2025 – Apple vs Epic injunction
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Apple Already Testing iOS 19.4 After Delaying Personalized Siri Features
A subset of Apple's software engineers started internal development of iOS 19.4 last month, according to the MacRumors visitor logs.
iOS 19.4 is expected to be released in March or April next year, so the software update is still nearly a year away. However, Apple develops both "Fall" and "Spring" versions of iOS each year, with our website's analytics logs indicating that both iOS 19.0 and iOS 19.4 are in active development within the company.
The start of iOS 19.4 development comes after Apple delayed its personalized Siri features until some point "in the coming year."
Apple first previewed the personalized Siri features during its WWDC 2024 keynote last June. The enhancements were initially expected to launch with iOS 18.4 a month ago, but they are now expected to arrive at some point during the iOS 19 cycle. Many well-connected Apple reporters and observers believe the features will not be available until 2026, so it is quite possible that they will launch as part of iOS 19.4 next year.
On the other hand, The New York Times last month said that Apple plans to roll out the revamped Siri this fall, but this report is an outlier for now. In this case, the features could debut as part of iOS 19 in September, or in iOS 19.1 in October.
All in all, the personalized Siri features should be available by iOS 19.4 at the latest, and the company is now working on that version.
Whenever they launch, the Siri upgrades will include understanding of a user's personal context, on-screen awareness, and deeper per-app controls. For example, during its WWDC 2024 keynote, Apple showed an iPhone user asking Siri about their mother's flight and lunch reservation plans based on info from the Mail and Messages apps.
The promised Siri upgrades will be powered by Apple Intelligence, which has faced a rocky rollout. Apple was hit with class action lawsuits in the U.S. and Canada over its delayed personalized Siri features, and the company recently complied with the National Advertising Division's recommendation to remove "available now" wording from the Apple Intelligence web page. Apple also had to disable notification summaries for news apps after some of the summaries generated false information, and it has yet to re-enable the feature.
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iOS 19.4 is expected to be released in March or April next year, so the software update is still nearly a year away. However, Apple develops both "Fall" and "Spring" versions of iOS each year, with our website's analytics logs indicating that both iOS 19.0 and iOS 19.4 are in active development within the company.
The start of iOS 19.4 development comes after Apple delayed its personalized Siri features until some point "in the coming year."
Apple first previewed the personalized Siri features during its WWDC 2024 keynote last June. The enhancements were initially expected to launch with iOS 18.4 a month ago, but they are now expected to arrive at some point during the iOS 19 cycle. Many well-connected Apple reporters and observers believe the features will not be available until 2026, so it is quite possible that they will launch as part of iOS 19.4 next year.
On the other hand, The New York Times last month said that Apple plans to roll out the revamped Siri this fall, but this report is an outlier for now. In this case, the features could debut as part of iOS 19 in September, or in iOS 19.1 in October.
All in all, the personalized Siri features should be available by iOS 19.4 at the latest, and the company is now working on that version.
Whenever they launch, the Siri upgrades will include understanding of a user's personal context, on-screen awareness, and deeper per-app controls. For example, during its WWDC 2024 keynote, Apple showed an iPhone user asking Siri about their mother's flight and lunch reservation plans based on info from the Mail and Messages apps.
The promised Siri upgrades will be powered by Apple Intelligence, which has faced a rocky rollout. Apple was hit with class action lawsuits in the U.S. and Canada over its delayed personalized Siri features, and the company recently complied with the National Advertising Division's recommendation to remove "available now" wording from the Apple Intelligence web page. Apple also had to disable notification summaries for news apps after some of the summaries generated false information, and it has yet to re-enable the feature.
Related Roundup: iOS 19
Tag: Apple Intelligence
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Deals: M4 iPad Pro $250 off, HomeKit Secure Video smart cam, Powerbeats Pro 2 $75 off, more
This morning we have up to $250 in savings on M4 iPad Pro configs joined by the ongoing all-time lows on the new iPad (A16) from just $299 and the M3 iPad Air lineup at $100 off across the board. We also have ongoing offers on AirPods 4 and AirPods Pro 2, as well as the entire M4 MacBook Air lineup, but today we are featuring some notable deals on the Eve smart gear – one of the best prices to date on its Siri-ready smart weather station, its HomeKit Secure Video smart cam, and its Siri-controlled HomeKit wireless smart lamp. All of that and and a deal on the new Powerbeats Pro 2 are waiting below.
more…Siri just keeps getting good news ahead of iOS 19’s big reveal
Not long ago, Siri couldn’t seem to catch a break. After Apple officially delayed the assistant’s big AI upgrades, several internal leaks highlighted just how bad things were behind the scenes. But now, the tides have seemingly turned, and Siri’s good news season is in full swing ahead of iOS 19’s big reveal.
more…Apple Must Pay Over $700 Million in Major Patent Damages Case
Apple has today been ordered to pay more than $700 million to the Texas-based cellular technology company Optis in a landmark UK patent ruling (via ipfray).
In London, the England and Wales Court of Appeal today ruled that Apple must pay a lump sum of $502 million to Optis Cellular Technology LLC for the use of standard-essential 4G patents in iPhones and iPads over a 14-year period spanning from 2013 to 2027. The decision marks a dramatic increase from the $56.43 million originally awarded by the High Court in 2023. In addition to the revised damages figure, the new judgment also includes interest, which could exceed $200 million, bringing Apple's total liability in the case to more than $700 million.
The dispute centers on whether Apple breached its obligations to license the patents on FRAND (fair, reasonable, and non-discriminatory) terms, which are required under international standards for the use of essential wireless technology. Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.
Apple had previously argued that the royalty rates proposed by Optis were excessive and not compliant with FRAND principles. In a statement provided to Reuters, Apple said "We are disappointed by this decision and plan to appeal."
The ruling is believed to be one of the largest patent damages awards in UK history. According to legal filings, Apple had previously expressed concern that an unfavorable royalty ruling could constitute grounds for exiting the UK market. While the company later walked back that position, the $700 million judgment moves the case significantly closer to that earlier worst-case scenario than had been anticipated following the High Court's original determination.
Apple can still petition the UK Supreme Court to review the case, but such appeals are usually granted only in limited circumstances, such as significant points of law or matters of public interest.
Update: Optis has issued a statement to MacRumors regarding the ruling:
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In London, the England and Wales Court of Appeal today ruled that Apple must pay a lump sum of $502 million to Optis Cellular Technology LLC for the use of standard-essential 4G patents in iPhones and iPads over a 14-year period spanning from 2013 to 2027. The decision marks a dramatic increase from the $56.43 million originally awarded by the High Court in 2023. In addition to the revised damages figure, the new judgment also includes interest, which could exceed $200 million, bringing Apple's total liability in the case to more than $700 million.
The dispute centers on whether Apple breached its obligations to license the patents on FRAND (fair, reasonable, and non-discriminatory) terms, which are required under international standards for the use of essential wireless technology. Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.
Apple had previously argued that the royalty rates proposed by Optis were excessive and not compliant with FRAND principles. In a statement provided to Reuters, Apple said "We are disappointed by this decision and plan to appeal."
Optis makes no products and their sole business is to sue companies using patents they buy. We will continue to defend against their attempts to extract unreasonable payments.
The ruling is believed to be one of the largest patent damages awards in UK history. According to legal filings, Apple had previously expressed concern that an unfavorable royalty ruling could constitute grounds for exiting the UK market. While the company later walked back that position, the $700 million judgment moves the case significantly closer to that earlier worst-case scenario than had been anticipated following the High Court's original determination.
Apple can still petition the UK Supreme Court to review the case, but such appeals are usually granted only in limited circumstances, such as significant points of law or matters of public interest.
Update: Optis has issued a statement to MacRumors regarding the ruling:
We're pleased the UK Court of Appeals has recognized and corrected a clearly flawed prior ruling and has made meaningful progress toward affirming the true value of our patents to Apple devices. In addition to ordering payment that exceeds $700 million with interest and fees, the Court has judged that "Apple's significant negotiating strength leads some parties to agree lower rates than would be agreed between a willing licensor/willing licensee" thereby gaining an unfair advantage. We will continue to ensure fair compensation for the Optis intellectual property that enables high-speed connectivity for millions of devices around the world."
Tags: Apple Lawsuits, United Kingdom
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Mark Zuckerberg Reflects on How Apple's Strict Rules Hurt Facebook
In the late 2000s, Facebook was a booming desktop web platform with a growing selection of third-party games and apps, including the viral sensation FarmVille. However, once the iPhone and other mobile devices became more popular, this started to change. In particular, Apple's closed-off App Store rules impacted the social network.
In a recent interview with Stratechery's Ben Thompson, Meta CEO Mark Zuckerberg briefly reflected on how the App Store's rules limited Facebook.
Specifically, he said that Apple not allowing Facebook to function as "a platform within a platform" on iOS contributed to the end of the FarmVille era:
Zuckerberg went on to reflect on his company's "deep bitterness" over Apple's policies:
Zuckerberg believes that mobile platforms like iOS should be more open, as desktop operating systems like macOS and Windows are.
With mounting litigation against Apple around the world, Zuckerberg might get his wish.
Apple's closed-off App Store rules have come under fire in recent years. Just yesterday, Epic Games landed a major victory against Apple, as a U.S. judge ruled that Apple violated a 2021 injunction that required it to allow app developers to direct customers to third-party purchase options on the web using in-app links. Effective immediately, Apple must stop impeding developers' ability to communicate with users, and it also must stop charging a 27% commission on purchases made via these in-app links.
Last year, the U.S. Department of Justice filed an antitrust lawsuit against Apple. The ongoing lawsuit alleges that Apple illegally maintains a monopoly in the smartphone market with the iPhone and the device's locked-down ecosystem.
Bit by bit, the walls surrounding Apple's infamous walled garden are beginning to come down.
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In a recent interview with Stratechery's Ben Thompson, Meta CEO Mark Zuckerberg briefly reflected on how the App Store's rules limited Facebook.
Specifically, he said that Apple not allowing Facebook to function as "a platform within a platform" on iOS contributed to the end of the FarmVille era:
Well look, the original Facebook platform was something that really just made sense for web, and it was sort of a pre-mobile thing. As the usage transitioned from desktop web to mobile, Apple basically just said, 'You can't have a platform within a platform and you can't have apps that use your stuff.' So that whole thing, which had grown to be a meaningful part of our business — I think by the time that we had our IPO in 2012, I think games and apps were about 20% of our business — but that basically just didn't have much of a future.However, Apple is not entirely to blame for this particular situation. In the early 2010s, Facebook itself decided to lock down access to some APIs and made other policy changes that affected the ecosystem of games and apps on its platform, as a result of growing privacy, security, and customer experience considerations.
Zuckerberg went on to reflect on his company's "deep bitterness" over Apple's policies:
[…] it was one of these things that I think it's really just an artifact of Apple's policies that I think has led to this deep bitterness around not just this, but a number of things where they've just said, 'Okay, you can't do these things that we think would be valuable,' which I think to some degree contributes to some of that dynamic between our company and theirs. I think that's unfortunate.In more recent years, Facebook was impacted by Apple's introduction of App Tracking Transparency, which limited targeted advertising on iOS.
Zuckerberg believes that mobile platforms like iOS should be more open, as desktop operating systems like macOS and Windows are.
With mounting litigation against Apple around the world, Zuckerberg might get his wish.
Apple's closed-off App Store rules have come under fire in recent years. Just yesterday, Epic Games landed a major victory against Apple, as a U.S. judge ruled that Apple violated a 2021 injunction that required it to allow app developers to direct customers to third-party purchase options on the web using in-app links. Effective immediately, Apple must stop impeding developers' ability to communicate with users, and it also must stop charging a 27% commission on purchases made via these in-app links.
Last year, the U.S. Department of Justice filed an antitrust lawsuit against Apple. The ongoing lawsuit alleges that Apple illegally maintains a monopoly in the smartphone market with the iPhone and the device's locked-down ecosystem.
Bit by bit, the walls surrounding Apple's infamous walled garden are beginning to come down.
This article, "Mark Zuckerberg Reflects on How Apple's Strict Rules Hurt Facebook" first appeared on MacRumors.com
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Mark Zuckerberg talks Apple and ‘deep bitterness’ around app policies
Apple’s developer relations are a major point of controversy at the moment following the court ruling related to Epic Games. Earlier this week, Mark Zuckerberg discussed Meta’s relationship with Apple in an interview that was just published at Stratechery. Here’s what he said.
more…Apple ordered to pay patent troll Optis $502M, despite threat to leave UK market
Apple has been ordered to pay Optis $502M for the use of standards-essential 4G patents in both iPhones and cellular iPads. Interest also has to be paid, bringing the total due to over $700M.
The court ruled in favor of the patent troll, despite an unconvincing attempt by Apple’s lawyer to claim that the company might withdraw the iPhone from sale in the UK if it was forced to pay …
more…Apple Watch Ultra 2 Drops to $729.99 on Amazon ($69 Off)
Amazon this week has a few models of the Apple Watch Ultra 2 available for $729.99, down from $799.00. Free shipping options provide an estimated May 6 delivery date, but Prime members can get it as soon as May 2 depending on your location.
Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
Overall, this is a solid second-best price on the Apple Watch Ultra 2. Deals on this version of the Apple Watch have been fairly rare in 2025, and we haven't seen a return of the all-time low price since the holidays.
There are five models of the Apple Watch Ultra 2 on sale for $729.99 right now on Amazon, including four Black models and one Natural model. These deals don't require any coupon codes and have been applied automatically on Amazon.
If you're on the hunt for more discounts, be sure to visit our Apple Deals roundup where we recap the best Apple-related bargains of the past week.
Interested in hearing more about the best deals you can find in 2025? Sign up for our Deals Newsletter and we'll keep you updated so you don't miss the biggest deals of the season!
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Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
Overall, this is a solid second-best price on the Apple Watch Ultra 2. Deals on this version of the Apple Watch have been fairly rare in 2025, and we haven't seen a return of the all-time low price since the holidays.
There are five models of the Apple Watch Ultra 2 on sale for $729.99 right now on Amazon, including four Black models and one Natural model. These deals don't require any coupon codes and have been applied automatically on Amazon.
- Black with Black Ocean Band
- Black with Black Trail Loop (M/L)
- Black with Black Trail Loop (S/M)
- Black with Dark Green Alpine Loop (Large)
- Natural with Navy Ocean Band
If you're on the hunt for more discounts, be sure to visit our Apple Deals roundup where we recap the best Apple-related bargains of the past week.
Deals Newsletter
Interested in hearing more about the best deals you can find in 2025? Sign up for our Deals Newsletter and we'll keep you updated so you don't miss the biggest deals of the season!
Related Roundup: Apple Deals
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MacRumors 2025 Blood Drive
MacRumors is pleased to announce our Sixteenth Annual MacRumors Blood Drive, throughout the month of May 2025. Let's save lives together by encouraging donations of blood, platelets, and plasma, and signing up as bone marrow and organ donors. While most blood drives are specific to a geographic location, our blood drive is online and worldwide. Anyone can participate.
Over the past 15 years, MacRumors Blood Drives have recorded donations of 1,565 units of blood, platelets, and plasma, cheered for donors, and celebrated new signups for the bone marrow and organ donor registries. We've heard from hundreds of forum members who donate or whose lives were saved by the donations of strangers.
This year's featured donor is user Linda+, who donates platelets every 2 or 3 weeks. Whether you're a regular donor like Linda+ or someone overcoming apprehension to donate for the very first time, we congratulate you.
After the MacRumors Blood Drive ends on May 31, continue recording your blood, platelet, and plasma donations, from June 2025 through next April 2026, on our Team MacRumors 2025-2026 page (instructions). We'll tally your donations and count them for the MacRumors 2026 Blood Drive next May.
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Over the past 15 years, MacRumors Blood Drives have recorded donations of 1,565 units of blood, platelets, and plasma, cheered for donors, and celebrated new signups for the bone marrow and organ donor registries. We've heard from hundreds of forum members who donate or whose lives were saved by the donations of strangers.
This year's featured donor is user Linda+, who donates platelets every 2 or 3 weeks. Whether you're a regular donor like Linda+ or someone overcoming apprehension to donate for the very first time, we congratulate you.
How to participate in the MacRumors Blood Drive
- If you are an eligible donor, schedule a blood, platelet, or plasma donation (FAQ) at any donation center near you. Post in the MacRumors 2025 Blood Drive! thread (not our news thread) to tell us about it. Also post if you sign up for the bone marrow registry (FAQ) or register as an organ donor. We'll add all registrants to our Honor Roll.
- If you aren't eligible to donate blood, such as for medical reasons, please encourage a friend or relative to make a donation, and let us know. If they donate, you'll both be added to our Honor Roll. Note that monogamous donors of any sexual orientation are now permitted to donate blood in the U.S., U.K., and Canada.
- Share our #MacRumorsBloodDrive message with friends, relatives, and followers. Help us thank the forum members who post in the MacRumors 2025 Blood Drive! thread.
After the MacRumors Blood Drive ends on May 31, continue recording your blood, platelet, and plasma donations, from June 2025 through next April 2026, on our Team MacRumors 2025-2026 page (instructions). We'll tally your donations and count them for the MacRumors 2026 Blood Drive next May.
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Severance-inspired keyboard could cost up to $699 – have your say [Video]
Apple might not really be able to sell you a Lumon terminal, but we noted earlier this month that you will be able to buy a Severance-inspired keyboard. The good news is that you now have a chance to have your say on the specs for the device (as well as see video demos) – the bad news is that it will cost up to $699 …
more…A senior Apple exec could be jailed in Epic case; it’s time to end this disaster
When the US Supreme Court upheld the court ruling in the Apple vs Epic Games case, I said that the iPhone maker’s response was clearly made in bad faith, and was effectively giving the middle finger to the judge in the case.
The judge has now officially confirmed this view. She has not only directly called out Apple for ignoring her ruling, but said that a senior Apple exec lied under oath, and referred the matter for prosecution …
more…Google Adds AI Image Editing and Home Screen Widgets to Gemini App
Google is rolling out AI-powered image editing capabilities to its Gemini app on iPhone, allowing users to modify both uploaded and AI-generated images directly within the app.
The new functionality enables background changes, object replacements, and element additions to existing photos. Users can upload personal images and prompt Gemini to generate variations, such as visualizing different hair colors or styles.
All images created or edited through Gemini will include invisible SynthID digital watermarking. Google says it is also testing visible watermarks for AI-generated content. The rollout is happening now and will expand to over 45 languages in the coming weeks, according to the company.
In another app improvement, Google told MacRumors that it is introducing Home Screen widgets for Gemini on iOS devices. The widgets provide immediate access to camera functions, file sharing, Gemini Live conversations, and microphone activation without opening the app. The widgets require iOS 17 or later and will be available to all eligible users by next week.
The standalone Gemini app launched for iPhone in November 2024, offering Dynamic Island integration and Gemini Live support as part of Google's effort to achieve feature parity with the Android version.
This article, "Google Adds AI Image Editing and Home Screen Widgets to Gemini App" first appeared on MacRumors.com
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The new functionality enables background changes, object replacements, and element additions to existing photos. Users can upload personal images and prompt Gemini to generate variations, such as visualizing different hair colors or styles.
All images created or edited through Gemini will include invisible SynthID digital watermarking. Google says it is also testing visible watermarks for AI-generated content. The rollout is happening now and will expand to over 45 languages in the coming weeks, according to the company.
In another app improvement, Google told MacRumors that it is introducing Home Screen widgets for Gemini on iOS devices. The widgets provide immediate access to camera functions, file sharing, Gemini Live conversations, and microphone activation without opening the app. The widgets require iOS 17 or later and will be available to all eligible users by next week.
Gemini's AI image editing features in action
The standalone Gemini app launched for iPhone in November 2024, offering Dynamic Island integration and Gemini Live support as part of Google's effort to achieve feature parity with the Android version.
Tag: Gemini
This article, "Google Adds AI Image Editing and Home Screen Widgets to Gemini App" first appeared on MacRumors.com
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iPhone Shipments Up 13% Amid Global Smartphone Market Slowdown
Apple achieved impressive 13% year-over-year growth in Q1 2025, shipping 55 million iPhones worldwide and increasing its global market share to 19%, up from 16% a year ago, according to the latest Canalys research.
Apple's performance is in stark contrast to the broader smartphone market, which recorded just 0.2% growth with 296.9 million units shipped globally.
Samsung maintained its lead with 60.5 million units and 20% market share, but it grew only 1% compared to last year. Xiaomi secured third place with 41.8 million units, followed by vivo and OPPO with about 8% market share each.
The U.S. smartphone market was a bright spot, growing 12% year-on-year, mainly driven by iPhone sales. According to Le Xuan Chiew of Canalys, "Apple proactively built up inventory ahead of anticipated tariff policies," which helped it lead the pack.
Apple has been diversifying production recently by ramping up iPhone manufacturing in India for both standard iPhone 15 and 16 models, as well as iPhone 16 Pro models. Ongoing fluctuations in reciprocal tariff policies are making Apple further shift U.S.-bound production to India to reduce exposure to future risks.
There was a lot of variation in regional demand in Q1. The U.S. market grew substantially and China benefited from government subsidies, but previously strong markets like India, Latin America, and the Middle East had notable declines.
Canalys expects the U.S. smartphone market to experience significant volatility over the next two to three quarters, due to inventory corrections and weakening consumer confidence in the face of fluctuating import tariffs.
This article, "iPhone Shipments Up 13% Amid Global Smartphone Market Slowdown" first appeared on MacRumors.com
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Apple's performance is in stark contrast to the broader smartphone market, which recorded just 0.2% growth with 296.9 million units shipped globally.
Samsung maintained its lead with 60.5 million units and 20% market share, but it grew only 1% compared to last year. Xiaomi secured third place with 41.8 million units, followed by vivo and OPPO with about 8% market share each.
The U.S. smartphone market was a bright spot, growing 12% year-on-year, mainly driven by iPhone sales. According to Le Xuan Chiew of Canalys, "Apple proactively built up inventory ahead of anticipated tariff policies," which helped it lead the pack.
Apple has been diversifying production recently by ramping up iPhone manufacturing in India for both standard iPhone 15 and 16 models, as well as iPhone 16 Pro models. Ongoing fluctuations in reciprocal tariff policies are making Apple further shift U.S.-bound production to India to reduce exposure to future risks.
There was a lot of variation in regional demand in Q1. The U.S. market grew substantially and China benefited from government subsidies, but previously strong markets like India, Latin America, and the Middle East had notable declines.
Canalys expects the U.S. smartphone market to experience significant volatility over the next two to three quarters, due to inventory corrections and weakening consumer confidence in the face of fluctuating import tariffs.
Tag: Canalys
This article, "iPhone Shipments Up 13% Amid Global Smartphone Market Slowdown" first appeared on MacRumors.com
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Apple warns iPhone users in 100 countries that they are victims of spyware
Apple has notified iPhone users in 100 countries that their devices have been infected with spyware, implying that it may be NSO’s Pegasus.
The company has warned victims to take it seriously, and to immediately take a number of security actions in response. One of the recipients has shared almost the entire message, the first time I can recall seeing more than a brief excerpt …
more…Apple Watch Series 11, Ultra 3, and SE 3: What to expect from the next releases
Apple may be planning to release three new Apple Watch models later this year. This is what we know so far about Apple Watch Series 11, Apple Watch Ultra 3, and Apple Watch SE 3.
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