Apple has reached a deal with French authorities to pay an undeclared amount of back-dated tax. While the amount isn't disclosed, French media suggest the sum is around $571 million (500 million euros). MacRumors reports: France has been working diligently to stop tech companies like Apple from exploiting tax loopholes in the country. The loopholes are said to have allowed Apple to "minimize taxes and grab market share" at the expense of Europe-based companies. French President Emmanuel Macron is one of the leaders behind the tax crackdown on international tech companies, with a goal of bringing a more unified corporate tax system across the nineteen euro area states.

As noted by iPhon.fr, Apple and French tax authorities reached the agreement for the payment of several years of unpaid taxes in December, according to French newspaper L'Expansion. The agreement followed a meeting in October between Apple CEO Tim Cook and President Macron, in which both reportedly agreed that a solution would ultimately be enacted by the European Union rather than France.

There are no 5G iPhones, and there probably won't be 5G iPhones for a while. But that isn't stopping Apple and AT&T: they are reportedly rolling out AT&T's fake "5G E" branding with its upcoming iOS 12.2 update. From a report: Much like when the two companies pulled this scam with 4G and LTE back in 2012, if you can't beat them, you roll out a software update to make it look like you did even though the phones and network are still exactly the same. Multiple users on Twitter are now reporting that they're seeing the new 5G E icon on devices running the latest iOS 12.2 beta 2, which was released earlier today. The new icon isn't there for everyone, presumably because it will only appear in cities where AT&T's 5G Evolution network -- the company's intentionally misleading name for its LTE network that it seems to hope customers will confuse for actual, next-generation 5G networks -- is active.

Grant Thompson, the teenager that reported the FaceTime bug last week, will be eligible for the Apple bug bounty program. "Apple's bug bounty system is typically invite-only and limited to specific categories of security flaws, like accessing iCloud account data or demonstrating ways for iPhone apps to escape the security sandbox of iOS," reports 9to5Mac. "It appears the company is making an exception here given the embarrassingly public nature of the case, although further details about the reward have yet to be discussed." From the report: The FaceTime bug that made waves as result of 9to5Mac's coverage last week was actually first reported to Apple by Grant Thompson and his mother in Arizona a week earlier. However, deficiencies in the Apple bug reporting process meant that the report was not acted upon by the company. Instead, the teenager made headlines when his mother shared their Apple communications on Twitter. Their claims were later proved to be legitimate.

Around January 22, Apple Support directed them to file a Radar bug report, which meant the mother had to first register a developer account as an ordinary customer. Even after following the indicated steps, it does not appear that Apple's product or engineering teams were aware of the problem until its viral explosion a week later. CNBC reports that an unnamed "high-level Apple executive" met with the Thompsons at their home in Tucson, Arizona on Friday. They apparently discussed how Apple could improve its bug reporting process and indicated that Grant would be eligible for the Apple bug bounty program.

2018 was the worst year ever for smartphone shipments, according to the latest figures from research firm IDC. It means Apple isn't the only company fighting to keep people interested in buying new phones every year. From a report: IDC said 1.4 billion smartphones were sold in 2018, marking a 4.1 percent decline for the year in an industry that's accustomed to rapid growth. In 2014, as well, 1.4 billion phones were shipped, which means the industry seems to have regressed about 5 years. Shipments shrank 4.9 percent for the fourth quarter of 2018, IDC said. Apple said earlier this week that iPhone revenues were 15 percent lower than last year. CEO Tim Cook said the strengthened dollar, an economic slowdown in China, lower subsidies on phones and its battery replacement program contributed to the drop in sales. Samsung phone shipments declined 5.5 percent and Apple's slipped 11.5 percent during the quarter, IDC said. But Huawei, which was able to capitalize on China, saw a 33.6 percent bump in shipments. Chinese vendors Oppo and Xiaomi also increased shipments, IDC said.

An anonymous reader shares a report: Contrary to popular Anglocentric belief, English isn't the world's most-spoken language by total number of native speakers -- nor is it the second. In fact, the West Germanic tongues rank third on the list, followed by Hindi, Arabic, Portuguese, Bengali, and Russian. (Mandarin and Spanish are first and second, respectively.) Surprisingly, Google Assistant, Apple's Siri, Amazon's Alexa, and Microsoft's Cortana recognize only a relatively narrow slice of these.

Google Assistant: With the addition of more than 20 new languages in January, the Google Assistant took the crown among voice assistants in terms of the number of tongues it understands. It's now conversant in 30 languages in 80 countries, up from 8 languages and 14 countries in 2017.
Apple's Siri: Apple's Siri, which until January had Google Assistant beat in terms of sheer breadth of supported languages, comes in a close second. Currently, it supports 21 languages in 36 countries and dozens of dialects for Chinese, Dutch, English, French, German, Italian, and Spanish.
Microsoft's Cortana: Cortana, which made its debut at Microsoft's Build developer conference in April 2013 and later came to Windows 10, headphones, smart speakers, Android, iOS, Xbox One, and even Alexa via a collaboration with Amazon, might not support as many languages as Google Assistant and Siri. Still, it has come a long way in six years.
Amazon's Alexa: Alexa might be available on over 150 products in 41 countries, but it understands the fewest languages of any voice assistant: English (Australia, Canada, India, UK, and US), French (Canada, France), German, Japanese (Japan), and Spanish (Mexico, Spain).
Samsung's Bixby: Samsung's Bixby -- the assistant built into the Seoul, South Korea company's flagship and midrange Galaxy smartphone series and forthcoming Galaxy Home smart speaker -- is available in 200 markets globally but only supports a handful of languages in those countries: English, Chinese, German, French, Italian, Korean, and Spanish.

A 13-year-old boy visiting family in Indiana has been charged with "intimidation", according to the Northwest Indiana Times: The boy allegedly said to Siri, iPhone's voice assistant, "I am going to shoot up a school," according to a news release from the Valparaiso Police Department. Siri then replied with a list of multiple Valparaiso schools near his location. The boy, identified as a Chesterton Middle School student, posted a screenshot of the inquiry and response on social media, which was reported to Chesterton police by the boy's social media contacts.

Chesterton police then contacted the Valparaiso Police Department, which launched an investigation into the possible threat. Valparaiso officers determined the boy made no direct threat to a specific person, school or school system and that he had no access to weapons -- ultimately stating the picture was posted on social media as a joke. "The threat is not believed to be credible at this time; however, these types of communications are taken very seriously by the Valparaiso Police Department and our community," police stated in a news release.
A 14-year-old was also taken into custody, and is also being held in a juvenille detention center, facing charges of intimidation and "criminal recklessness with a handgun" over related photographs with weapons.

"Come on kids. It isn't funny..." reads one comment on the police department's Facebook page. "How many of you are going to be detained before you realize it?"

"Thank you for taking it seriously, and prosecuting it accordingly," added another commenter. "'I was joking' is not a defense. Hopefully juvie knocks some sense into this kid."

"I hope he's prosecuted for this! Totally not funny and as a parent I'm taking any threats against schools serious!" reads another comment -- though at least one person directed their scorn somewhere else.

"Sounds like Siri needs to be re-programmed."

The Apple executive who led the Siri team since 2012 has been removed as head of the project in a sweeping strategy shift favoring long-term research. Apple Insider reports: The Information reports Apple executive Bill Stasior is no longer in charge of Apple's virtual assistant team, though the executive is still employed at the company. Apple SVP of machine learning and AI strategy John Giannendrea reportedly made the decision in an attempt to shift the Siri program toward research rather than incremental updates. Giannandrea is anticipated to start a search for a new head of Siri, the report said.

Hired by former Apple executive Scott Forstall to run point on Siri, Stasior was previously attached to Amazon's A9 search arm. Stasior's removal as head of Siri comes at a critical point in the voice-enabled assistant's timeline. The first AI assistant to see wide adoption thanks to its inclusion in 2011's iPhone 4S, Siri's capabilities have fallen behind competing systems marketed by Amazon and Google. Apple is looking to Giannandrea to rectify the situation. Hired early last year, Giannandrea previously worked on artificial intelligence projects at Google. In December, he was promoted to SVP and put in charge of Apple's AI and Machine Learning programs, including Core ML and Siri.

After resisting local government's mandates for years, Apple appears to have agreed to store Russian citizens' data within the country, a report says. From a report: According to a Foreign Policy report, Russia's telecommunications and media agency Roskomnadzor has confirmed that Apple will comply with the local data storage law, which appears to have major implications for the company's privacy initiatives. Apple's obligations in Russia would at least parallel ones in China, which required it turn over Chinese citizens' iCloud data to a partially government-operated data center last year. In addition to processing and storing Russian citizens' data on servers physically within Russia, Apple will apparently need to decrypt and produce user data for the country's security services as requested.

A new website exposes the extent to which Apple cooperates with Chinese government internet censorship, blocking access to Western news sources, information about human rights and religious freedoms, and privacy-enhancing apps that would circumvent the country's pervasive online surveillance regime. The Intercept: The new site, AppleCensorship.com , allows users to check which apps are not accessible to people in China through Apple's app store, indicating those that have been banned. It was created by researchers at GreatFire.org, an organization that monitors Chinese government internet censorship. In late 2017, Apple admitted to U.S. senators that it had removed from its app store in China more than 600 "virtual private network" apps that allow users to evade censorship and online spying. But the company never disclosed which specific apps it removed -- nor did it reveal other services it had pulled from its app store at the behest of China's authoritarian government.

Apple said Friday morning that it had a fix for a bug discovered in Apple's video and audio chat service FaceTime this week, which had allowed callers to access the microphone and front-facing video camera of the person they were calling, even if that person hadn't picked up. The security issue is fixed on its servers, the company said, but the iPhone software update to re-enable the feature for users won't be rolled out until next week. From a report: "We have fixed the Group FaceTime security bug on Apple's servers and we will issue a software update to re-enable the feature for users next week," Apple said in an emailed statement to BuzzFeed News. "We thank the Thompson family for reporting the bug. We sincerely apologize to our customers who were affected and all who were concerned about this security issue. We appreciate everyone's patience as we complete this process."

schwit1 shares a report from Bloomberg: An Apple hardware engineer was charged by the U.S. with stealing the iPhone maker's driverless car secrets for a China-based company, the second such case since July amid an unprecedented crackdown by the Trump administration on Chinese corporate espionage. Jizhong Chen was seen by a fellow Apple employee taking photographs Jan. 11 with a wide-angle lens inside a secure work space that houses the company's autonomous car project, about six months after he signed a strict confidentiality oath when he was hired, according to a criminal complaint in federal court in San Jose, California. Prosecutors said Chen admitted to taking the photos and backing up some 2,000 files to his personal hard drive, including manuals and schematics for the project, but didn't tell Apple he had applied for a job with a China-based autonomous vehicle company.

Apple has now shut down Google's ability to distribute its internal iOS apps, following a similar shutdown that was issued to Facebook earlier this week. From a report: A person familiar with the situation tells The Verge that early versions of Google Maps, Hangouts, Gmail, and other pre-release beta apps have stopped working today, alongside employee-only apps like a Gbus app for transportation and Google's internal cafe app. UPDATE: Apple has restored Google's Enterprise Certificate so its internal apps will now function.

A lawyer in Houston has filed a lawsuit against Apple over a security vulnerability that let people eavesdrop on iPhones using FaceTime. "His lawsuit, filed Monday in Harris County, Texas, alleges that Apple 'failed to exercise reasonable care' and that Apple 'knew, or should have known, that its Product would cause unsolicited privacy breaches and eavesdropping,'" reports CNBC. "It alleged Apple did not adequately test its software and that Apple was 'aware there was a high probability at least some consumers would suffer harm.'" From the report: The suit says that Williams was "undergoing a private deposition with a client when this defective product breached allowed for the recording" of the conversation. Williams claimed this caused "sustained permanent and continuous injuries, pain and suffering and emotional trauma that will continue into the future" and that Williams "lost ability to earn a living and will continued to be so in the future." The lawsuit also says that iOS 12.1, the latest major release of the iPhone operating system, was defective and "unreasonable dangerous" and that Apple "failed to provide adequate warnings to avoid the substantial danger" posed by the security flaw. Williams is seeking compensatory and punitive damages as a result of the exploit.

Apple plans to launch iPhones with a more-powerful 3-D camera as soon as next year, stepping up the company's push into augmented reality, Bloomberg reported Wednesday. From the report: The rear-facing, longer-range 3-D camera is designed to scan the environment to create three-dimensional reconstructions of the real world. It will work up to about 15 feet from the device, the people said. Apple's new system uses a laser scanner, rather than the existing dot-projection technology which doesn't work as well over longer distances, according to the people, who asked not to be identified discussing unreleased features. That's just one of many new features -- including a third, more advanced camera, enhanced photo-capture tools and a more powerful chip -- that Apple plans to include in coming generations of iPhones, the people said.

[...] For 2019, Apple plans successors to the iPhone XS and iPhone XS Max -- code-named D42 and D43 -- and an update to the iPhone XR, said the people. The larger of the new high-end iPhones will have three cameras on the back, and other handsets could eventually come with the upgraded system, too, the people said. [...] Apple's next operating system update, iOS 13, will include a dark mode option for easier nighttime viewing and improvements to CarPlay, the company's in-vehicle software.

Facebook is not the only one abusing Apple's system for distributing employee-only apps to sidestep the App Store and collect extensive data on users. Google has been running an app called Screenwise Meter, which bears a strong resemblance to the app distributed by Facebook Research that has now been barred by Apple, TechCrunch reported Wednesday. From the report: In its app, Google invites users aged 18 and up (or 13 if part of a family group) to download the app by way of a special code and registration process using an Enterprise Certificate. That's the same type of policy violation that led Apple to shut down Facebook's similar Research VPN iOS app, which had the knock-on effect of also disabling usage of Facebook's legitimate employee-only apps -- which run on the same Facebook Enterprise Certificate -- and making Facebook look very iffy in the process. It needs to be pointed out that Google's app is relatively transparent about what it does and who runs it.

Reuters reports: A team of former U.S. government intelligence operatives working for the United Arab Emirates hacked into the iPhones of activists, diplomats and rival foreign leaders with the help of a sophisticated spying tool called Karma, in a campaign that shows how potent cyber-weapons are proliferating beyond the world's superpowers and into the hands of smaller nations. The cyber tool allowed the small Gulf country to monitor hundreds of targets beginning in 2016, from the Emir of Qatar and a senior Turkish official to a Nobel Peace laureate human-rights activist in Yemen, according to five former operatives and program documents reviewed by Reuters. The sources interviewed by Reuters were not Emirati citizens.

Karma was used by an offensive cyber operations unit in Abu Dhabi comprised of Emirati security officials and former American intelligence operatives working as contractors for the UAE's intelligence services. The existence of Karma and of the hacking unit, code named Project Raven, haven't been previously reported. Raven's activities are detailed in a separate story published by Reuters today. The ex-Raven operatives described Karma as a tool that could remotely grant access to iPhones simply by uploading phone numbers or email accounts into an automated targeting system. The tool has limits -- it doesn't work on Android devices and doesn't intercept phone calls. But it was unusually potent because, unlike many exploits, Karma did not require a target to click on a link sent to an iPhone, they said.

Facebook is at the center of another privacy scandal -- and this time it hasn't just angered users. It has also angered Apple. From a report: The short version: Apple says Facebook broke an agreement it made with Apple by publishing a "research" app for iPhone users that allowed the social giant to collect all kinds of personal data about those users, TechCrunch reported Tuesday. The app allowed Facebook to track users' app history, their private messages and their location data. Facebook's research effort reportedly targeted users as young as 13 years old.

As of last summer, apps that collect that kind of data are against Apple's privacy guidelines. That means Facebook couldn't make this research app available through the App Store, which would have required Apple approval. Instead, Facebook apparently took advantage of Apple's "Developer Enterprise Program," which lets approved Apple partners, like Facebook, test and distribute apps specifically for their own employees. In those cases, the employees can use third-party services to download beta versions of apps that aren't available to the general public. Update: The Verge reports: Apple has shut down Facebook's ability to distribute internal iOS apps, from early releases of the Facebook app to basic tools like a lunch menu. A person familiar with the situation tells The Verge that early versions of Facebook, Instagram, Messenger, and other pre-release "dogfood" (beta) apps have stopped working, as have other employee apps, like one for transportation. Facebook is treating this as a critical problem internally, we're told, as the affected apps simply don't launch on employees' phones anymore. Update 2: Apple says it shut down Facebook's app before the social company could voluntarily shut it down -- contrary to an earlier statement by Facebook, in which it said it was shutting down the app.

Due to an economic slowdown in China and diminishing demand for new iPhones, Apple's profits in its most recent quarter were flat compared with a year earlier. "The disappointing financial performance had been expected since Jan. 2, when Apple, for the first time in 16 years, revised its forecast for the quarter," reports The New York Times. "But the announcement on Tuesday indicates a difficult road head for Apple, which just five months ago became the first company to be worth more than $1 trillion. The company said it expected between $55 billion and $59 billion in revenue in the current quarter, just below analysts' expectations for $59 billion. Apple's earnings per share were $4.18, beating analysts' expectations by a penny."

In addition to the quarterly earnings, Apple reported revenue of $84.3 billion, a decline of 5 percent from one year ago. "Revenue from iPhone declined 15 percent from the prior year, while total revenue from all other products and services grew 19 percent," Apple said in a press release. Analysts had estimated revenue of $83.97 billion and earnings of $4.17 per share. "While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter's results demonstrate that the underlying strength of our business runs deep and wide," said Tim Cook. Apple's active install base of 1.4 billion is "a great testament to the satisfaction and loyalty of our customers, and it's driving our services business to new records thanks to our large and fast-growing ecosystem," Cook said. The Verge adds: "iPhones account for 900 million of those devices. iPad revenues were up 17 percent against the year-ago quarter; Mac was up 9 percent; and Wearables/Home/Accessories were up by 33 percent."

An anonymous reader writes: Twitter user MGT7500 tagged the official Apple Support account in a January 20 tweet claiming that her 14-year-old son discovered a "major security flaw" that allowed him to "listen in to your iPhone/iPad without your approval." The user also tagged Tim Cook on the issue in a follow-up tweet on January 21."

Once the bug started making headlines on Monday, the Twitter user then shared additional tweets claiming that they had also emailed Apple's product security team over a week ago. A screenshot of the email was shared, and it appears the team did respond, but what they said is not visible in the screenshot. [...] All in all, there is evidence that Apple Support was tagged about an eavesdropping bug eight days before it made headlines, and if the rest of the tweets are truthful, the company was also alerted about the bug via several other avenues. The original story has been updated to include another example of a user -- John Meyer -- who has shared a video about the FaceTime bug that he says was recorded and sent to Apple on January 23.

Four new iPad models and a 7th-generation iPod Touch have been found in upcoming iOS 12.2, and seven new iPad models were discovered in the Eurasian Economic Commission Database, reports MacRumors. From the report: Developer Steven Troughton-Smith speculates that the iPad model numbers could be new iPad mini devices, which would be in line with rumors suggesting a new iPad mini 5 is in the works. According to Troughton-Smith, none of the iPads have Face ID, which is what we would expect as a new iPad mini is likely to be positioned as an affordable, lower-end device. There's also a reference to "iPod 9,1," which does not match up with any known iPod touch devices, suggesting it is a new next-generation model. The current sixth-generation iPod touch is "iPod 7,1," for reference. The iPod listed in iOS 12.2 does not appear to have Face ID or Touch ID, which is in line with the current iPod touch.

Previous rumors have indeed suggested Apple is working on a 7th-generation iPod touch, an iPad mini 5, and a new version of the lower-cost 9.7-inch iPad, which may actually be upgraded to 10 inches in its next iteration. There's been mixed information about what to expect from an iPad mini update. A case leak suggested a vertical camera and quad speakers, but a photo of an unreleased iPad mini, which could be the new iPad mini, featured an older A9 processor and a design that's similar to the fourth-generation iPad mini.