Google is making its last attempt to fight back against a historic effort by the US Department of Justice to break the tech giant's grip on online search, as the most significant antitrust trial in 25 years comes to a close in Washington. From a report: A federal court in Washington began hearing closing arguments on Thursday after a 10-week trial in which the DoJ accused Alphabet, the parent company of Google, of suppressing search rivals by paying tens of billions annually for anti-competitive agreements with wireless carriers, browser developers and device manufacturers. During the hearing on Thursday, John Schmidtlein, a lawyer from Williams & Connolly representing Google, sought to push back on claims that it had hindered rivals' efforts to gain a foothold in online search, and argued that users had plenty of alternatives.

Unsealed court documents revealed this week that Alphabet paid Apple $20bn in 2022 alone to be the default search engine for its iPhone and Safari browser on its other devices. "Google winning agreements because it has a better product is not a harm to the competitive process, even if it gives it scale to improve its product," Schmidtlein told the court. A lawyer for the government, Kenneth Dintzer, told the court that Google's "anti-competitive conduct harms competition and is self perpetuating." Defaults "are a powerful way to drive searches, otherwise Google wouldn't pay billions of dollars for them," he added.

Amit Mehta, the judge hearing the case, noted that search "today looks a lot different than it didâ 10 to 15 years ago. He pushed back on the DoJ's contention that the quality of search had suffered due to the lack of competition, although he also noted that only two "substantial competitors" had entered the search market in the past decade. "Doesn't that tell us all we need to know in terms of barriers of entry," he asked.

Apple is tweaking how it applies a new fee that can apply to iOS developers in the European Union as it continues to configure its approach to the bloc's Digital Markets Act (DMA): Developers of free apps will be able to avoid the fee entirely under changes it announced Thursday, which apply from today, while other developers earning under a certain revenue threshold will get longer before they have to pay Apple the fee. From a report: The so-called "core technology fee" remains opt in for iOS developers in the region, as Apple continues to offer its standard business terms, but those wanting to take up new entitlements the DMA has required Apple to offer -- such as allowing sideloading of apps, third party app stores, and support for alternative payment tech than Apple's own -- must agree to the set of business terms that include the CTF (as Apple calls it).

The fee remains under scrutiny in the region where the Commission, which enforces the DMA on Apple and other gatekeepers -- and opened its first investigations including on Apple in March -- is actively exploring whether the mechanism is enabling the iPhone maker to avoid its obligations to open up the App Store to competition, such as from third party app stores. But so far the EU hasn't prevented Apple from charging a fee.

Alphabet paid Apple $20 billion in 2022 for Google to be the default search engine in the Safari browser, according to newly unsealed court documents in the Justice Department's antitrust lawsuit against Google. From a report: The deal between the two tech giants is at the heart of the landmark case, in which antitrust enforcers allege Google has illegally monopolized the market for online search and related advertising. The Justice Department and Google will offer closing arguments in the case Thursday and Friday, with a decision expected later this year.

Google and Apple had hoped to shield the payment amount from public disclosure. At the trial last fall, Apple executives testified that Google paid "billions," without specifying a number. A Google witness later accidentally disclosed that Google pays 36% of the revenue it earns from search ads to Apple. Court documents filed late Tuesday ahead of the closing arguments mark the first public confirmation of the figures by Apple's senior vice president of services, Eddy Cue. Such numbers aren't disclosed by either company in their securities filings. The documents also revealed the importance of the payments to Apple's bottom line. For instance, in 2020, Google's payments to Apple constituted 17.5% of the iPhone maker's operating income.

Anthropic has released its Claude AI chatbot on the App Store, bringing the company's ChatGPT competitor to the masses. Compared to OpenAI's chatbot, Claude is built with a focus on reducing harmful outputs and promoting safety, with a goal of making interactions more reliable and ethically aware. You can give it a try here. 9to5Mac reports: Anthropic highlights three launch features for Claude on iPhone:

Seamless syncing with web chats: Pick up where you left off across devices.
Vision capabilities: Use photos from your library, take new photos, or upload files so you can have real-time image analysis, contextual understanding, and mobile-centric use cases on the go.
Open access: Users across all plans, including Pro and Team, can download the app free of charge.

The app is also capable of analyzing things that you show it like objects, images, and your environment.

"Tens of millions" of people are using technical workarounds to secretly access WhatsApp in countries where it is banned, the messaging platform's boss has said. From a report: "You'd be surprised how many people have figured it out," Will Cathcart told BBC News. Like many Western apps, WhatsApp is banned in Iran and North Korea and, intermittently, in Syria. And last month, China joined the list of those banning users from accessing the secure platform. Other countries, including Qatar, Egypt, Jordan and the United Arab Emirates, restrict features such as voice calls.

But WhatsApp can see where its users truly are, thanks to their registered phone numbers. "We have a lot of anecdotal reports of people using WhatsApp and what we can do is look at some of the countries where we're seeing blocking and still see tens of millions of people connecting to WhatsApp," Mr Cathcart told BBC News. China ordered Apple to block Chinese iPhone users from downloading WhatsApp from the AppStore in April, a move Mr Cathcart calls "unfortunate" -- although the country was never a major market for the app. "That's a choice Apple has made," he said. "There aren't alternatives. I mean, that is really a situation where they've put themselves in the position to be able to truly stop something."

Apple has confirmed reports [video link] of a software glitch causing some iPhone alarms to fail to play a sound.

Apple has poached dozens of AI experts from Google and has created a secretive European laboratory in Zurich, as the tech giant builds a team to battle rivals in developing new AI models and products. From a report: According to a Financial Times analysis of hundreds of LinkedIn profiles as well as public job postings and research papers, the $2.7tn company has undertaken a hiring spree over recent years to expand its global AI and machine learning team. The iPhone maker has particularly targeted workers from Google, attracting at least 36 specialists from its rival since it poached John Giannandrea to be its top AI executive in 2018.

While the majority of Apple's AI team work from offices in California and Seattle, the tech group has also expanded a significant outpost in Zurich. Professor Luc Van Gool from Swiss university ETH Zurich said Apple's acquisitions of two local AI start-ups -- virtual reality group FaceShift and image recognition company Fashwell -- led Apple to build a research laboratory, known as its "Vision Lab," in the city.

An anonymous reader shares a report: I paid a lot of money for the privilege of getting an Apple Vision Pro brand-new in February. All-in, with optical inserts and taxes, I financed a little over $3,900 for the 256GB version of the headset. A day or so ago, I made a mistake that I'm sure many early adopters are familiar with: I looked up how much it's been selling for on eBay. On Wednesday, a 1TB Vision Pro, complete with all the included gear, Apple's fluffy $200 travel case, $500 AppleCare Plus, and claimed to have been "worn maybe about an hour" sold for $3,200 after 21 bids. The listed shipping estimate was $20.30. Brand new, that combination is $5,007.03 on Apple's site for me.

Another eBay listing, this one with my headset's configuration (but sans optical inserts) went for just $2,600 -- again with most, if not all, of the included accessories. Several other 256GB and 512GB models sold for around that amount this week. The story is no different over on Swappa, a popular reselling site among Apple users. Bloomberg News, over the weekend: In related news, employees at some Apple retail stores are now being asked to fill out surveys after giving Vision Pro demonstrations to potential buyers. Apple wants to know if they were able to close a sale and get any feedback from the would-be buyer. Apple also wants to ensure employees are following the 20-minute demo script.

As I wrote last week, Vision Pro demand has dropped considerably at many Apple stores. One retail employee says they haven't seen one Vision Pro purchase in weeks and that the number of returns equaled the device's sales in the first month that it was available.

"South Korea is considering prohibiting the use of iPhones and smart wearable devices inside military buildings," reports the Defense Post, "due to increasing security concerns."

But the blog Apple Insider argues the move "has less to do with security and more to do with a poorly crafted mobile device management suite coupled with nationalism..." A report on Tuesday morning claims that the ban is on all devices capable of voice recording and do not allow third-party apps to lock this down — with iPhone specifically named... According to sources familiar with the matter cited by Tuesday's report, the iPhone is explicitly banned. Android-based devices, like Samsung's, are exempt from the ban...

The issue appears to be that the South Korean National Defense Mobile Security mobile device management app doesn't seem to be able to block the use of the microphone. This particular MDM was rolled out in 2013, with use enforced across all military members in 2021.

The report talks about user complaints about the software, and inconsistent limitations depending on make, model, and operating system. A military official speaking to the publication says that deficiencies on Android would be addressed in a software update. Discussions are apparently underway to extend the total ban downwards to the entire military. The Army is said to have tried the ban as well...

Seven in 10 South Korean military members are Samsung users. So, the ban appears to be mostly symbolic.
Thanks to Slashdot reader Kitkoan for sharing the news.

It's another speech-recognizing, AI-powered handheld device "about half the size of a phone," writes CNET. (Though the $199 device comes with a keyboard and a tiny 2.8-inch screen.) "The Rabbit R1 can identify items in its environment. Point it at a plant, and it can tell you what kind it is. Aim it at your lunch, and it can tell you what's in it.

"it also feels a bit like a novelty so far...." It can call an Uber, order dinner from Doordash, translate conversations, record voice memos, play songs from Spotify and more. Your phone can already do all of those things, but [CEO and founder Jesse] Lyu is promoting the Rabbit R1 as a faster and more natural way to do so... So far, the Rabbit R1 feels fun, fresh and interesting, but also frustrating at times. It intrigues me, but it also hasn't convinced me yet that there's room for another gadget in my life.... Many of the things it can do today feel smartphone-esque, like asking for the weather or playing songs on Spotify...

Visual search is the most interesting feature so far... It's pretty accurate for the most part so far. When I pointed it at my salad during lunch, it was able to tell me most of the ingredients. That's not what I asked. After all, who orders a dish without knowing what's in it? I asked the Rabbit R1 to tell me how many calories were in my lunch. While it couldn't provide the answer I wanted, I was impressed with its response... Overall, Rabbit R1's visual analysis worked pretty well for identifying things like plants and characters from pop culture. When describing my colleague's sneakers, the Rabbit R1 got the brand wrong...

So far, I've used the Rabbit R1 to take voice memos, translate speech from Spanish to English, and answer basic questions about things like weather forecasts. These features work as expected for the most part.
The article points out that Ray-Ban Meta Smart Glasses "also have multimodal AI, meaning the eyewear can 'see' what you see and tell you about it," and "you can already do something like this on your phone through Google's Gemini assistant on Android phones (or the Gemini section of the Google app for the iPhone).

"It's also very reminiscent of Google Lens, which has been around for years..."

An anonymous reader shared this report from the Times of India: Several Apple customers were inexplicably locked out of their Apple ID accounts Friday evening in a major service disruption, forcing them to reset their passwords across all devices and services. According to user reports on social media, the widespread outage began around 8 p.m. ET. People complained that they were abruptly signed out of their Apple IDs on Macs, iPhones, iPads, and other Apple devices.

When attempting to sign back in with their existing passwords, they received an error message preventing access... To regain access, users had to go through Apple's account recovery process to reset their Apple ID passwords. However, many reported difficulties even completing the reset process initially due to high demand...

The outage affected iCloud services like iCloud Drive, iMessage, FaceTime, and the App Store. Third-party apps and services that integrate with Apple ID sign-in were also disrupted for those impacted.

"Intel used to dominate the U.S. chip industry," writes CNBC. But now "it's struggling to stay relevant." Intel's long-awaited turnaround looks farther away than ever after the company reported dismal first-quarter earnings. Investors pushed the shares down 9% on Friday to their lowest level of the year. Although Intel's revenue is no longer shrinking and the company remains the biggest maker of processors that power PCs and laptops, sales in the first quarter trailed estimates. Intel also gave a soft forecast for the second quarter, suggesting weak demand... Intel is the worst-performing tech stock in the S&P 500 this year, down 37%.

Meanwhile, the two best-performing stocks in the index are chipmaker Nvidia and Super Micro Computer, which has been boosted by surging demand for Nvidia-based artificial intelligence servers. Intel, long the most valuable U.S. chipmaker, is now one-sixteenth the size of Nvidia by market cap. It's also smaller than Qualcomm, Broadcom, Texas Instruments, and AMD. For decades, it was the largest semiconductor company in the world by sales, but suffered seven straight quarters of revenue declines recently, and was passed by Nvidia last year.
Intel's problems "are decades in the making," according to CNBC, suggesting that one turning point was Apple's decision not to use Intel's chips in its iPhone. Now nearly every smartphone built uses Arm chips built by Apple and Qualcomm, while Apple's huge orders for TSMC chips "provided the cash to annually upgrade the manufacturing equipment at TSMC, which eventually surpassed Intel." Around 2017, mobile chips from Apple and Qualcomm started adding AI parts to their chips called neural processing units, another advancement over Intel's PC processors. The first Intel-based laptop with an NPU shipped late last year.

Intel has since lost share in its core PC chip business to chips that grew out of the mobile revolution... Apple stopped using Intel in its PCs in 2020. Macs now use Arm-based chips, and some of the first mainstream Windows laptops with Arm-based chips are coming out later this year. Low-cost laptops running Google ChromeOS are increasingly using Arm, too...

AMD made over 20% of server CPUs sold in 2022, and shipments grew 62% that year, according to an estimate from Counterpoint Research last year. AMD surpassed Intel's market cap the same year.

An anonymous reader shares a report: Consumer Intelligence Research Partners is out with a report on how iPhone activations compare to Android in the US. The latest data shows a notable drop over the last year bringing Apple's US smartphone market share of new activations back in time six years. CIRP shared its new iPhone report on its Substack this morning. The firm notes that while it believes Apple's installed smartphone base is higher than the recent share of US smartphone activations, the latter has taken a dive.

As shown below, the metric peaked at 40% for Q1 and Q2 in 2023 with Apple seeing a decline to 33% of new smartphone activations in the US as of Q1 2024, says CIRP. That means 2 out of 3 new smartphone activations in the US are Android devices. Per CIRP's data, Apple hasn't seen numbers that low since 2017.

Apple's iPhone sales dropped sharply in China in the first quarter of this year as the company saw strong competition from domestic brand Huawei, according to a new report from market research firm Counterpoint Research. CNBC: Apple saw sales of its iPhones fall 19.1% in the first three months of the year, Counterpoint's data showed, as Chinese telecommunications and consumer electronics giant Huawei saw a resurgence in its smartphone business. The Shenzhen, China-based firm saw sales of its smartphones surge a whopping 69.7% in the first quarter, Counterpoint said.

Apple has stopped production of FineWoven accessories, according to reliable Apple leaker and prototype collector known as "Kosutami." From a report: In a post on X (formerly Twitter), Kosutami explained that Apple has stopped production of FineWoven accessories due to its poor durability. The company may move to another non-leather material for its premium accessories in the future. Apple introduced FineWoven, a soft fabric material, last year. The company claimed that the material is made of 68 percent post-consumer content and is overall more environmentally friendly compared to the company's previous line of leather accessories. As part of the introduction of FineWoven case, Apple also discontinued the use of leather for new Apple accessories. Reviewers didn't like FineWoven, calling it "bad. Like, really bad."

China ordered Apple to remove some of the world's most popular chat messaging apps from its app store in the country, the latest example of censorship demands on the iPhone seller in the company's second-biggest market. WSJ: Meta's WhatsApp and Threads as well as messaging platforms Signal, Telegram and Line were taken off the Chinese App Store Friday [non-paywalled link]. Apple said it was told to remove certain apps because of national security concerns, without specifying which. "We are obligated to follow the laws in the countries where we operate, even when we disagree," an Apple spokesperson said in a statement.

These messaging apps, which allow users to exchange messages and share files individually and in big groups, combined have more than three billion users globally. They can only be accessed in China through virtual private networks that take users outside China's Great Firewall, but are still commonly used. Beijing has often viewed such platforms with caution, concerned that these apps could be used by its citizens to spread negative content and organize demonstrations or social movements. Much of the news China censors at home often makes it beyond the Great Firewall through such channels.

AltStore PAL has become one of the first alternative app marketplaces to launch in the European Union. Developed by Riley Testut, AltStore PAL is marketed as an open-source project designed to distribute apps from independent developers. MacRumors reports: At launch, it features two apps, including Testut's Delta game emulator and clipboard manager app Clip. Delta is also being simultaneously released in the App Store outside of the European Union, but it looks like EU customers will need to download it from AltStore. Testut says that once AltStore PAL is "running smoothly," third-party app developers will be able to submit their apps for distribution outside of the App Store. The app marketplace is designed to be decentralized with no directory, so developers will need to self-promote their apps and direct users to their websites to install an app through AltStore.

Distributing apps through AltStore is free of charge, but it is worth noting that apps that see more than one million first annual installs will need to pay Apple an 0.50 euro Core Technology Fee. App marketplaces have to pay the fee for every install with no free allowance, so AltStore is charged 0.50 euros each time it is installed. To afford the fee, Testut is charging 1.50 euros per year for AltStore PAL access. Testut has been working on AltStore PAL since Apple announced plans to support alternative app marketplaces in iOS 17.4. It is open to all apps, but Testut says that it makes the most sense for "smaller, indie apps that otherwise couldn't exist due to App Store rules." AltStore PAL is equipped with Patreon integration to allow developers to monetize their apps. Developers can offer their apps to just their patrons, and this method of distribution also allows for a sub-1 million cap on those who can subscribe to use an app.

According to Bloomberg's Mark Gurman, Apple's initial set of AI-related features in iOS 18 "will work entirely on device," and won't connect to cloud services. AppleInsider reports: In practice, these AI features would be able to function without an internet connection or any form of cloud-based processing. AppleInsider has received information from individuals familiar with the matter that suggest the report's claims are accurate. Apple is working on an in-house large language model, or LLM, known internally as "Ajax." While more advanced features will ultimately require an internet connection, basic text analysis and response generation features should be available offline. [...] Apple will reveal its AI plans during WWDC, which starts on June 10.

A crypto wallet maker claimed this week that hackers may be targeting people with an iMessage "zero-day" exploit -- but all signs point to an exaggerated threat, if not a downright scam. From a report: Trust Wallet's official X (previously Twitter) account wrote that "we have credible intel regarding a high-risk zero-day exploit targeting iMessage on the Dark Web. This can infiltrate your iPhone without clicking any link. High-value targets are likely. Each use raises detection risk." The wallet maker recommended iPhone users to turn off iMessage completely "until Apple patches this," even though no evidence shows that "this" exists at all. The tweet went viral, and has been viewed over 3.6 million times as of our publication. Because of the attention the post received, Trust Wallet hours later wrote a follow-up post. The wallet maker doubled down on its decision to go public, saying that it "actively communicates any potential threats and risks to the community."

Apple is opening up web distribution for iOS apps targeting users in the European Union starting Tuesday. Developers who opt in -- and who meet Apple's criteria, including app notarization requirements -- will be able to offer iPhone apps for direct download to EU users from their own websites. From a report: It's a massive change for a mobile ecosystem that otherwise bars so-called "sideloading." Apple's walled garden stance has enabled it to funnel essentially all iOS developer revenue through its own App Store in the past. But, in the EU, that moat is being dismantled as a result of new regulations that apply to the App Store and which the iPhone maker has been expected to comply with since early last month. In March, Apple announced that a web distribution entitlement would soon be coming to its mobile platform as part of changes aimed at complying with the bloc's Digital Markets Act (DMA). The pan-EU regulation puts a set of obligations on in-scope tech giants that lawmakers hope will level the competitive playing field for platforms' business users, as well as protecting consumers from Big Tech throwing its weight around.