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    Apple quarterly earnings beat Wall Street expectations amid Trump trade policy chaos

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    Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations on Thursday.The tech giant reported revenue of $95.4bn, up more than 4% over last year, and earnings-per-share of $1.65 per share, up more than 7%. Analysts had predicted revenue of $94.5bn and earnings of $1.62. The company, worth $3.2tn, has beaten Wall Street’s expectations for the previous four quarters.Investors have been keeping their eyes on Apple as it prepared to report its financial results . The tech giant has been working to calm nervous analysts after Donald Trump levied sweeping tariffs on countries around the world that are likely to complicate supply chains for consumer electronics. Since the beginning of the year, Apple’s stock has slumped 16%.In early after-hours trading, the company’s stock dropped by more than 5%, likely due to its services division reporting revenue that missed Wall Street’s expectations, despite growth over last year. The division covers iCloud subscriptions and revenue from various licensing deals. Sales in China also missed estimates.Apple’s CEO, Tim Cook, remained positive, however, saying that the company was reporting “strong quarterly results, including double-digit growth in Services”.The iPhone maker is heavily reliant on Chinese manufacturing for its phones, tablets and laptops. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics.Cook spoke to senior White House officials around this time, according to the Washington Post. It was after these conversations that Trump announced his exception for consumer electronics. Apple’s stock rose 7% in the days after the announcement.However, it is unclear how lasting the reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption “temporary”, and even Trump later said on social media that there’s been no “exception”.The president has repeatedly said he wants to see more manufacturing in the US. In February, he met with Cook to discuss investing in US manufacturing. “He’s going to start building,” Trump said after the meeting. “Very big numbers – you have to speak to him. I assume they’re going to announce it at some point.”JP Morgan estimates costs would skyrocket for Apple if it moves production to the US, saying in a note this week that it could “drive a 30% price increase in the near-term, assuming a 20% tariff on China”. JP Morgan and other analysts have said Apple could continue to move more of its manufacturing to India, which only faces a 10% tariff.skip past newsletter promotionafter newsletter promotionApple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump’s tariffs and panic-buying by worried consumers. This comes as investors have expressed concerned about decreasing iPhone sales in China, the world’s biggest smartphone market. During its last earnings in January, Apple reported that iPhone sales fell by 11.1% in China in the first quarter and missed Wall Street’s expectations for iPhone revenue.In the short term, however, analysts say the tariff confusion could benefit Apple with people panic-buying its products in fear that prices will rise. “What remains to be seen in the longer term is how much of any increased cost will be passed on to consumers,” said Dipanjan Chatterjee, principal analyst for Forrester. “And if [consumers] will absorb these price increases without pulling back on demand for Apple products.” More

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      Trump Tariffs Could Raise iPhone Prices, But Affordable Options Remain

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      Even if gadget prices surge, we have plenty of cheaper options, like buying last year’s phone model instead of the latest and greatest.On Friday, amid a tariff-induced frenzy that drove hordes of consumers to panic-buy iPhones, President Trump announced a tariff exemption on electronics like smartphones and computers. For a moment, widespread anxiety about a potential $2,000 iPhone dissipated.But two days later, the Trump administration said smartphones and computers were likely to be hit with new tariffs targeting semiconductors, or chips. More expensive iPhones could come after all! Talk about whiplash.Don’t panic. Even if tariffs did cause the iPhone’s price to surge, we would have plenty of cheaper options, like buying last year’s phone model instead of the latest and greatest.The most important lesson we can learn from the turmoil: The only consistent way to save money on tech is to use devices for as long as possible, which requires maintaining them as you would a car, and upgrading only when you must.“Buy the best and drive it into the ground,” said Ramit Sethi, a personal finance expert. “Holding that item for longer will bring down the overall cost of ownership.”There remains lots of uncertainty around future costs of tech hardware in general. Nintendo this month canceled plans to start taking orders for its game console, the $450 Nintendo Switch 2, to evaluate the impact of tariffs on pricing and availability. Costs of some accessories, like phone chargers, power bricks and cases, have already risen on Amazon.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How Do the iPhone 16E and Google Pixel 9A Compare to More Expensive Models?

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      With all the talk about tariffs driving up costs, the word “cheaper” should bring comfort to just about anyone. That’s why I’m delighted to share that the cheaper smartphone from Google has arrived, a few months after Apple released a somewhat cheaper entry-level iPhone — and that both products are very good.Google this week released the Pixel 9a, the $500 sibling of its $800 flagship smartphone, the Pixel 9. It competes directly with the $600 iPhone 16e released in February, the cheaper version of Apple’s $800 iPhone 16.Both of the new phones have the staples that people care most about — great cameras, nice screens, zippy speeds, modern software and long battery life. To cut costs, they omit some fancier extras, like advanced camera features.Is it a wise idea to save some bucks, or better to spend more on the fancier phones? To find out, I strapped on a fanny pack and carried all four phones with me for the last week to run tests.The upshot: As is often the case, you get what you pay for. The $800 phones are slightly better in terms of features and performance than the cheaper versions, and the $600 iPhone is faster and has a better camera than the $500 Pixel.But more important, the cheaper Pixel and iPhone were nearly indistinguishable from their $800 counterparts in several of my tests. In some cases, like battery life, the cheaper phones were even better.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Apple Plunges 9 Percent, Leading a Tech Sell-Off

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      Apple led a sell-off of tech stocks on Thursday, falling about 9 percent. Its drop was one of its steepest intraday declines since early 2019, when the company plunged 10 percent after it warned that iPhone sales in China would fall short of its expectations at the time.Wall Street analysts who follow the company have been looking for signs that Apple will be granted a tariff exemption by the White House, as it did when the Trump administration began its previous round of tariffs in 2018. But after President Trump’s news conference yesterday, there was no indication that Apple would receive any relief.As a result, many analysts were scrambling to update their forecasts on Apple’s profits. The company counts on the sale of devices for three-quarters of its nearly $400 billion in annual revenue, and it makes almost all of its iPhones, iPads and Macs overseas.The investment bank TD Cowen estimates that every 10 percent of tariffs on a product imported from China, India or Vietnam — where Apple does most of its manufacturing — would reduce the company’s profit by more than 3.5 percent. The Wall Street advisory said Apple could offset that profit decline with a 6 percent price increase for every 10 percent of tariff. Given that China is being hit with 54 percent tariffs and that it makes 90 percent of the world’s iPhones, the price of most $1,000 iPhones would jump to about $1,300. More

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      Did Apple Just Kill Social Apps?

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      This year, when Apple announced iOS 18, the latest version of its mobile operating system, most of the attention went to its slate of new artificial intelligence features.But a lesser-noticed change in iOS 18 — a tweak to an obscure feature that allows users to share their contact lists with various apps — may wind up being more important.That’s because “contact sync,” as the feature is known by some developers, has played a critical role in the growth of many social and messaging apps for the past two decades. It’s how apps like Instagram, WhatsApp and Snapchat were able to find their footing, by quickly connecting millions of iPhone users to people they already knew, and suggesting other users for them to follow. That early momentum helped kick-start their viral growth, propelling them to the top of the App Store charts.Now, some developers are worried that they may struggle to get new apps off the ground. Nikita Bier, a start-up founder and advisor who has created and sold several viral apps aimed at young people, has called the iOS 18 changes “the end of the world,” and said they could render new friend-based social apps “dead on arrival.”That might be a little melodramatic. I recently spent some time talking to Mr. Bier and other app developers and digging into the changes. I also heard from Apple about why they believe the changes are good for users’ privacy, and from some of Apple’s rivals, who see it as an underhanded move intended to hurt competitors. And I came away with mixed feelings.On one hand, I’m sympathetic to the uphill battle faced by any developer trying to build a new social app today. The contact sharing changes in iOS 18 will undoubtedly make it harder for some fledgling apps to break through. And in a world where it’s harder for smaller apps to succeed, incumbents like Facebook and Instagram — which already have network effects, and don’t have to ask existing users for permission to keep collecting their contacts — obviously stand to benefit.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Hey, Siri! Let’s Talk About How Apple Is Giving You an A.I. Makeover.

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      Apple, a latecomer to artificial intelligence, has struck a deal with OpenAI and developed tools to improve its Siri voice assistant, which it is set to showcase on Monday.Each June, Apple unveils its newest software features for the iPhone at its futuristic Silicon Valley campus. But at its annual developer conference on Monday, the company will shine a spotlight on a feature that isn’t new: Siri, its talking assistant, which has been around for more than a decade.What will be different this time is the technology powering Siri: generative artificial intelligence.In recent months, Adrian Perica, Apple’s vice president of corporate development, has helped spearhead an effort to bring generative A.I. to the masses, said two people with knowledge of the work, who asked for anonymity because of the sensitivity of the effort.Mr. Perica and his colleagues have talked with leading A.I. companies, including Google and OpenAI, seeking a partner to help Apple deliver generative A.I. across its business. Apple recently struck a deal with OpenAI, which makes the ChatGPT chatbot, to fold its technology into the iPhone, two people familiar with the agreement said. It was still in talks with Google as of last week, two people familiar with the conversations said.That has helped lead to a more conversational and versatile version of Siri, which will be shown on Monday, three people familiar with the company said. Siri will be powered by a generative A.I. system developed by Apple, which will allow the talking assistant to chat rather than just respond to one question at a time. Apple will market its new A.I. capabilities as Apple Intelligence, a person familiar with the marketing plan said.Apple, OpenAI and Google declined to comment. Apple’s agreement with OpenAI was previously reported by The Information and Bloomberg, which also reported the name for Apple’s A.I. system.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Beeper Messaging App Is Acquired as a Bet on a Regulatory Shift

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      Automattic, the company behind WordPress.com, bought Beeper in an effort to build a system that works across Android and Apple devices.Beeper, the app that brought iPhone messaging features to Android smartphones, has been acquired by Automattic, the company behind WordPress.com, to support the development of a single service for sending and receiving chats from WhatsApp, Signal, LinkedIn and others.The deal, which is valued at about $125 million, was announced on Tuesday. It comes as regulators in Europe and the United States pressure the biggest tech companies to open their messaging services to third parties. Regulators believe doing so will make it easier for people to communicate with friends and family and to switch messaging providers.Automattic is betting that the changing regulatory environment will make people more interested in finding a unified messaging system like Beeper, said Toni Schneider, Automattic’s interim chief executive.Beeper is Automattic’s second messaging service acquisition. Last year, it bought Texts, an iPhone app that brings together messages from Instagram, iMessage and others. Mr. Schneider said Beeper and Texts employees would combine their systems into a single app that worked on iPhones and Android smartphones as well as computers.“Everyone has this problem where they say, ‘I know I had this conversation with this person, but I can’t remember where,’” Mr. Schneider said. “We think we can innovate a lot in this space.”Eric Migicovsky, who co-founded Beeper in 2020, said Beeper and Texts would deliver their combined service this year. The teams that built those companies will meet in two weeks in Portugal to begin that process.“The real thing we have been competing against was apathy about new experiences in chat,” Mr. Migicovsky said.Last year, Beeper released an app that offered Android phone users the ability to send encrypted messages and high-resolution videos to iPhones. The app added more than 100,000 users in three days before Apple blocked it by changing its iMessage system.Though a Justice Department lawsuit accusing Apple of maintaining an iPhone monopoly did not refer specifically to Beeper, the problems highlighted by Beeper’s conflict with Apple were mentioned in the complaint, which was filed in March. The department faulted Apple for making “iPhone users less secure than they would otherwise be” by “rejecting solutions” for smartphone messaging like those provided by Beeper.Beeper will soon be open to anyone who wants to download it after a testing period that limited the app to about 100,000 users, Mr. Migicovsky said. The company had 466,000 people on a waiting list. About 60 percent of its users are on Android smartphones.Automattic was an early investor in Beeper, which had raised $16 million from investors that included Y Combinator and Initialized Capital, Mr. Migicovsky said. Last week, Beeper’s 27 employees officially began work at their new company. More

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      U.S. Sues Apple, Accusing It of Maintaining an iPhone Monopoly

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      The lawsuit caps years of regulatory scrutiny of Apple’s wildly popular suite of devices and services, which have fueled its growth into a nearly $3 trillion public company.The Justice Department and 16 state attorneys general filed an antitrust lawsuit against Apple on Thursday, the federal government’s most significant challenge to the reach and influence of the company that has put iPhones in the hands of more than a billion people.The government argued that Apple violated antitrust laws by preventing other companies from offering applications that compete with Apple products like its digital wallets, which could diminish the value of the iPhone. Apple’s policies hurt consumers and smaller companies that compete with some of Apple’s services, according to excerpts from the lawsuit released by the government, which was filed in the U.S. District Court for the District of New Jersey.“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the government said in the lawsuit.The lawsuit caps years of regulatory scrutiny of Apple’s wildly popular suite of devices and services, which have fueled its growth into a nearly $2.75 trillion public company that was for years the most valuable on the planet. It takes direct aim at the iPhone, Apple’s most popular device and most powerful business, and attacks the way the company has turned the billions of smartphones it has sold since 2007 into the centerpiece of its empire.By tightly controlling the user experience on iPhones and other devices, Apple has created what critics call an uneven playing field, where it grants its own products and services access to core features that it denies rivals. Over the years, it has limited finance companies’ access to the phone’s payment chip and Bluetooth trackers from tapping into its location-service feature. It’s also easier for users to connect Apple products, like smartwatches and laptops, to the iPhone than to those made by other manufacturers.The company says this makes its iPhones more secure than other smartphones. But app developers and rival device makers say Apple uses its power to crush competition.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More