Apple reported its strongest quarterly revenue growth since 2021, with iPhone sales jumping 13% and total revenue up 10%. CEO Tim Cook also announced increased AI investments and hinted at future acquisitions to accelerate Apple's AI roadmap. CNBC reports: "It was an exceptional quarter by any measure," Apple CEO Tim Cook told CNBC's Steve Kovach. Cook said that about 1% of the company's 10 percentage points of revenue growth could be attributed to customers buying more products to get ahead of potential tariffs. The company's most important business remains the iPhone, which saw 13% growth on an annual basis during the quarter to $44.58 billion in sales. Cook said that iPhone revenue was strong because the iPhone 16 is more popular compared to the iPhone 15 devices on sale last year at the same time. Cook said iPhone 16 sales were up "strong double digits" versus its predecessor. Cook specifically highlighted popularity among current iPhone users upgrading to a new one.

Apple's Mac business grew the fastest of any of Apple's units during the June quarter, growing nearly 15% to $8.05 billion in revenue. Apple released updated MacBook Air laptops, its best-selling Mac, just before the quarter started. The company's services business, which includes the company's warranties, content subscriptions, licensing deals with Google, and iCloud continued to grow to $27.42 billion in the period, a 13% increase. Cook highlighted growth in the company's iCloud subscriptions and said App Store revenue grew "double digits" during the quarter.

The two tougher spots in Apple's report were iPad sales and the company's other products division, which it sometimes calls its wearables. It consists of Apple Watch, AirPods, and other accessories. Revenue for iPad was down 8% to $6.58 billion, despite the company launching a low-cost iPad in March. Apple's wearables unit declined 8.64% to $7.4 billion during the quarter. Apple also saw success in China during the quarter, with sales rising 4% on an annual basis to $15.37 billion. Apple reports its sales from China, Hong Kong and Taiwan in the same unit. It's a reversal from the past two quarters, where Apple's China sales declined 2% in Apple's second fiscal quarter and 11% in the first quarter. Cook said a Chinese subsidy for some devices helped Apple in the region. "The subsidy does apply to some of our products, and it clearly helps," Cook said.

Apple began selling iPad repair parts to the public in late May following new right-to-repair legislation, but independent repair professionals say the pricing makes most repairs economically unviable. A charge port for an iPad Pro 11 costs $250 from Apple compared to less than $20 for aftermarket parts, Brian Clark of iGuys Tech Shop told 404 Media.

An iPad A16 digitizer costs $200 from Apple versus $50 from third-party suppliers, while the entire iPad A16 retails for $349. The iPad Pro 13 screen assembly costs $749. Jonathan Strange of XiRepair analyzed the parts catalog and found more than one-third of components cost too much for repair shops to use profitably, 404 Media reported Thursday. Strange calculates repair viability by adding $85 labor costs and 10% profit margin to parts prices, then comparing the total to half the device's retail cost.

Apple has lost its fourth AI researcher in a month to Meta [non-paywalled source], marking the latest setback to the iPhone maker's AI efforts. From a report: Bowen Zhang, a key multimodal AI researcher at Apple, left the company on Friday and is set to join Meta's recently formed superintelligence team, according to people familiar with the matter. Zhang was part of the Apple foundation models group, or AFM, which built the core technology behind the company's AI platform.

Meta previously lured away the leader of the team, Ruoming Pang, with a compensation package valued at more than $200 million, Bloomberg News has reported. Two other researchers from that group -- Tom Gunter and Mark Lee -- also recently joined Meta. AFM is made up of several dozen engineers and researchers across Cupertino, California, and New York. In response to the job offers from Meta and others, Apple has been marginally increasing the pay of its AFM staffers, whether or not they've threatened to leave, said the people, who asked not to be identified because the moves are private. Still, the pay levels pale in comparison with those of rivals.

schwit1 writes: The Apple Manufacturing Academy will be located in downtown Detroit and will be administered by Michigan State University.

The academy will offer workshops on manufacturing and artificial intelligence to small and medium-sized businesses, Apple said.

Trump has called for Apple to move iPhone production to the U.S. and is implementing tariffs that will likely raise the company's costs.

India has overtaken China to become the top source of smartphones sold in the US, after Apple shifted to assemble more of its iPhones in the South Asian country. From a report: In the quarter through June, India was the largest manufacturer of smartphones shipped to the US for the first time, accounting for 44% of the market, according to Canalys data. Vietnam, home to much of Samsung's production, came in second. China fell from having more than 60% of all estimated shipments a year ago to just 25%.

The stark change comes as Apple ramped up its production in India and smartphone makers "frontload device inventories amid tariff concerns," Canalys researchers wrote. The volume of made-in-India devices more than tripled in the past quarter from a year earlier. Apple's iPhone shipments to the US declined by 11%, reflecting distortions to its usual pattern due to unusually high shipments to stockpile units earlier in the year.

Apple has released the first public betas of its upcoming operating systems with its new design language called Liquid Glass. The list of new betas includes iOS 26, iPadOS 26, macOS Tahoe 26, watchOS 26, and tvOS 26. The Verge's Jay Peters reports: The design language is inspired by visionOS and, as the name implies, features a lot of transparency. I felt it was a wild change to my iPhone when I tried the first developer beta, and Apple has already tweaked some of the translucency and changed how Control Center looks in subsequent betas.

The new operating systems also have an updated numbering scheme: they now all end with 26, taking cues from how the car industry names its cars after the following year. It's a simpler and better system, if you ask me, and it should make it easier to know if you're on the newest software.

Apple today announced AppleCare One, a insurance subscription service that covers multiple products under a single plan for $19.99 per month. The service protects up to three devices, with additional products costing $5.99 monthly each.

AppleCare One provides identical coverage to AppleCare Plus, including battery protection, unlimited accidental damage repairs, and priority support. The service accepts products up to four years old, compared to AppleCare Plus's 60-day enrollment window, though Apple requires older devices to be in "good condition" and may conduct diagnostic testing. Headphones must be less than one year old for eligibility. Theft and Loss coverage comes standard for iPhone, iPad, and Apple Watch. The service goes live tomorrow.

Apple is expected to avoid hefty daily fines from the EU by modifying its App Store policies -- allowing developers to direct users to external payment options and adjusting its fee structure. Reuters reports: The company last month said developers will pay a 20% processing fee for purchases made via the App Store, though the fees could go as low as 13% for Apple's small-business program. Developers who send customers outside the App Store for payment will pay a fee between 5% and 15%. They will also be able to use as many links as they wish to send users to outside forms of payment.

Apple made the changes after the EU antitrust enforcer handed it a 500 million euro ($586.7 million) fine in April, saying its technical and commercial restrictions prevented app developers from steering users to cheaper deals outside the App Store in breach of the Digital Markets Act. The company was given 60 days to scrap the restraints to comply with the DMA aimed at reining in Big Tech and giving rivals more room to compete. The European Commission is expected to approve the changes in the coming weeks, although the timing could still change, the people said. "All options remain on the table. We are still assessing Apple's proposed changes," the EU watchdog said.

Apple has filed a lawsuit against YouTuber Jon Prosser and Michael Ramacciotti for misappropriation of trade secrets related to iOS 26 leaks published earlier this year. The complaint alleges Prosser and Ramacciotti conspired to access a development iPhone belonging to Apple employee Ethan Lipnik, acquiring his passcode and using location-tracking to determine when he "would be gone for an extended period."

Apple claims Ramacciotti accessed Lipnik's device and made a FaceTime call to Prosser showing iOS 26 features, which Prosser recorded and used to create rendered mockups for his January, March, and April videos. Lipnik's employment was terminated, and Apple seeks an injunction against further disclosure plus damages.

Apple is facing pressure to shake up its corporate playbook to invigorate its struggling artificial intelligence efforts. From a report: Alarmed by a share slump that's erased more than $640 billion in market value this year and frustrated with delays in rolling out AI features, investors are calling for Apple to break with long-standing traditions to make a big acquisition and more aggressively pursue talent.

"Historically Apple does not do big mergers and acquisitions," said Citigroup Inc. analyst Atif Malik, noting that the last major deal was its takeover of Beats in 2014. But, he argues, "investors would turn more positive if Apple could acquire or invest a meaningful stake in an established AI provider."

Apple shares have fallen 16% this year while traders bid up the shares of peers like Meta, which is spending lavishly on AI. While Apple faces other problems, including its exposure to tariffs and regulatory issues, disappointment in bringing compelling AI features to its vast ecosystem of devices has become top of mind for investors.

Apple added the 2013 "Trash Can" Mac Pro to its vintage products list alongside the 2019 13-inch MacBook Air, 2019 iMac, 2018 iPad Pro models, and the 128GB iPhone 8. The cylindrical Mac Pro remained on sale until December 2019, when Apple replaced it with the redesigned "Cheese Grater" model.

Products typically reach vintage status five years after their last distribution date. The 2013 Mac Pro's radical cylindrical design prevented internal component upgrades and created thermal limitations that Apple acknowledged in 2017. "I think we designed ourselves into a bit of a thermal corner," Apple hardware chief Craig Federighi said at the time.

Apple also moved several AirPort devices to its obsolete list, including the second-generation AirPort Express and AirPort Time Capsules. The 2013 Mac Pro's radical design created thermal limitations that Apple acknowledged in 2017.

A federal judge has dismissed an antitrust lawsuit that accused Apple, Visa and Mastercard of conspiring to suppress competition in the payments network market and inflate merchant transaction fees.

U.S. District Judge David Dugan in Illinois ruled that merchants failed to provide sufficient evidence supporting claims that Apple illegally declined to launch a competing payment network to rival Visa and Mastercard.

The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses representing thousands of merchants, alleged the payment networks paid Apple hundreds of millions of dollars annually to avoid competition. Dugan found the plaintiffs offered only "a slew of circumstantial allegations" but permitted them to amend their complaint.

Apple plans to release its first Vision Pro upgrade as early as this year, according to Bloomberg. The updated $3,499 headset will feature an M4 processor, replacing the current M2 chip, and components designed to better handle AI tasks.

The company is also developing new straps to reduce neck strain and head pain from the 1.4-pound device. The Vision Pro launched in February 2024 but has sold only hundreds of thousands of units. Apple is working on a significantly lighter redesigned model for 2027, the report added.

BrianFagioli shares a report from NERDS.xyz: Apple is making a high-level leadership change that could significantly shape its future behind the scenes. The company has announced that longtime executive Jeff Williams will step down from his role as Chief Operating Officer later this month. His successor will be Sabih Khan, Apple's Senior Vice President of Operations and a key player in the company's global supply chain strategy. Williams isn't leaving Apple entirely just yet. He'll continue working closely with CEO Tim Cook for the rest of the year, overseeing Apple Watch and health initiatives, as well as leading the company's industrial design team until his retirement. After that, Apple's design team will report directly to Cook.

Khan's promotion is part of what Apple describes as a long-planned transition. Cook praised Khan as a "brilliant strategist" who helped Apple reduce its carbon footprint by over 60 percent, expand domestic manufacturing, and remain agile during global supply chain challenges. Khan has been with Apple for 30 years and took on a more prominent executive role in 2019. He has quietly helped the company build one of the most influential supply chains in the world.

Following a week of X and YouTube complaints, Apple has further reduced the transparency of its Liquid Glass design in the latest iOS 26 developer beta, making navigation bars, buttons, and tabs more opaque to improve readability. The Verge reports: "iOS 26 beta 3 completely nerfs Liquid Glass," AppleTrack developer Sam Kohl says in a post on X. "It looks so much cheaper now and feels like Apple is backtracking on their original vision." Others ask Apple to "stop ruining" Liquid Glass and call the new design a "step backwards." Some users in the beta found that the transparency level can vary depending on the app they're using.

This is still just a developer beta, so it's likely that Apple will continue to make tweaks before it releases iOS 26 to the public in September.

Apple displayed a full-screen ad for "F1 The Movie" in its TV app that linked directly to a web browser for ticket purchases without showing warning screens that the company requires other developers to include when directing users outside their apps.

The "Buy Tickets" button sent users to the F1 movie website in their default browser without confirmation dialogs or interstitial warnings. Apple mandates that third-party developers show scare sheets when linking out of apps to sell digital content, but considers movie tickets a "real-world experience" exempt from its In-App Purchase system.

Further reading: iPhone Customers Upset By Apple Wallet Ad Pushing F1 Movie.

"Apple quietly dropped a new AI model on Hugging Face with an interesting twist," writes 9to5Mac. "Instead of writing code like traditional LLMs generate text (left to right, top to bottom), it can also write out of order, and improve multiple chunks at once."

"The result is faster code generation, at a performance that rivals top open-source coding models." Traditionally, most LLMs have been autoregressive. This means that when you ask them something, they process your entire question, predict the first token of the answer, reprocess the entire question with the first token, predict the second token, and so on. This makes them generate text like most of us read: left to right, top to bottom... An alternative to autoregressive models is diffusion models, which have been more often used by image models like Stable Diffusion. In a nutshell, the model starts with a fuzzy, noisy image, and it iteratively removes the noise while keeping the user request in mind, steering it towards something that looks more and more like what the user requested...

Lately, some large language models have looked to the diffusion architecture to generate text, and the results have been pretty promising... This behavior is especially useful for programming, where global structure matters more than linear token prediction... [Apple] released an open-source model called DiffuCode-7B-cpGRPO, that builds on top of a paper called DiffuCoder: Understanding and Improving Masked Diffusion Models for Code Generation, released just last month... [W]ith an extra training step called coupled-GRPO, it learned to generate higher-quality code with fewer passes. The result? Code that's faster to generate, globally coherent, and competitive with some of the best open-source programming models out there.

Even more interestingly, Apple's model is built on top of Qwen2.5-7B, an open-source foundation model from Alibaba. Alibaba first fine-tuned that model for better code generation (as Qwen2.5-Coder-7B), then Apple took it and made its own adjustments. They turned it into a new model with a diffusion-based decoder, as described in the DiffuCoder paper, and then adjusted it again to better follow instructions. Once that was done, they trained yet another version of it using more than 20,000 carefully picked coding examples.
"Although DiffuCoder did better than many diffusion-based coding models (and that was before the 4.4% bump from DiffuCoder-7B-cpGRPO), it still doesn't quite reach the level of GPT-4 or Gemini Diffusion..." the article points out.

But "the bigger point is this: little by little, Apple has been laying the groundwork for its generative AI efforts with some pretty interesting and novel ideas."

Long-time Slashdot reader AmiMoJo shared this report from the Apple news blog 9to5Mac: iOS 26 is a packed update for iPhone users thanks to the new Liquid Glass design and major updates for Messages, Wallet, CarPlay, and more. But another new feature was just discovered in the iOS 26 beta: FaceTime will now freeze your call's video and audio if someone starts undressing.

When Apple unveiled iOS 26 last month, it mentioned a variety of new family tools... "Communication Safety expands to intervene when nudity is detected in FaceTime video calls, and to blur out nudity in Shared Albums in Photos." However, at least in the iOS 26 beta, it seems that a similar feature may be in place for all users — adults included.
That's the claim of an X.com user named iDeviceHelp, who says FaceTime in iOS 26 swaps in a warning message that says "Audio and video are paused because you may be showing something sensitive," giving users a choice of ending the call or resuming it.

9to5Mac says "It's unclear whether this is an intended behavior, or just a bug in the beta that's applying the feature to adults... [E]verything happens on-device so Apple has no idea about the contents of your call."

Apple's expansion in India has hit a snag as Foxconn has sent over 300 Chinese workers back to China, potentially reducing production efficiency just as mass manufacturing of the iPhone 17 begins. AppleInsider reports: It's not known why Foxconn has done this, nor is it clear whether workers have been laid off or redeployed to the company's facilities in China. The move, though, does follow Beijing officials reportedly working to prevent firms moving away from China. Those officials are said to have been verbally encouraging China's local governments and regulatory bodies to curb exports of equipment or technologies to India and Southeast Asia.

Overall, China has been making it harder for skilled labor to leave the country. It's not clear how any changes have specifically affected Chinese workers who had already left.What is clear is that Foxconn has used many experienced Chinese engineers as it attempts to rapidly expand in India. It's said, too, that Chinese managers have been vital in training Foxconn staff in India. Since that training has been ongoing for some years, and since at least most of Foxconn's production lines have been set up, it's said that there will not be an impact on the quality of manufacturing. But one source said the changes will impact efficiency on the production line.

Apple has filed (PDF) a lawsuit against former Vision Pro engineer Di Liu, accusing him of stealing thousands of confidential files related to his work on Apple's augmented reality headset for the benefit of his new employer Snap. The company alleges Liu misled colleagues about his departure, secretly accepted a job offer from Snap, and attempted to cover his tracks by deleting files -- actions Apple claims violated his confidentiality agreement. The Register reports: Liu secretly received a job offer from Snap on October 18, 2024, a role the complaint describes as "substantially similar" to his Apple position, meaning Liu waited nearly two weeks to resign from Apple, per the lawsuit. "Even then, he did not disclose he was leaving for Snap," the suit said. "Apple would not have allowed Mr. Liu continued access had he told the truth." Liu allegedly copied "more than a dozen folders containing thousands of files" from Apple's filesystem to a personal cloud storage account, dropping the stolen bits in a pair of nested folders with the amazingly nondescript names "Personal" and "Knowledge."

Apple said that data Liu copied includes "filenames containing confidential Apple product code names" and files "marked as Apple confidential." Company research, product design, and supply chain management documents were among the content Liu is accused of stealing. The complaint also alleges that Liu deleted files to conceal his activities, a move that may hinder Apple's ability to determine the full scope of the data he exfiltrated. "Mr. Liu additionally took actions to conceal his theft, including deceiving Apple about his job at Snap, and deleting files from his Apple-issued computer that might have let Apple determine what data Mr. Liu stole," the complaint noted.

Whatever he has, Apple wants it back. The company demands a jury trial on a single count of breach of contract under a confidentiality and intellectual property agreement Liu was bound to. It also asks the court to compel Liu to return all misappropriated data, award damages to be determined at trial, and reimburse Apple's costs and attorneys' fees.