Apple reported a record-breaking first quarter of 2025 with $124.3 billion in revenue and $36.3 billion in profit, or $2.40 per diluted share, driven by strong growth in its services business. That's "compared to revenue of $119.6 billion and net quarterly profit of $33.9 billion, or $2.18 per diluted share, in the year-ago quarter," notes MacRumors. From the report: Apple set all-time records during the quarter for total revenue, earnings per share, and services revenue. Total revenue was up 4 percent year-over-year, while earnings per share rose by 10 percent. Services, Mac, and iPad revenue figures were all up significantly year-over-year, while iPhone and Wearables saw small declines. Gross margin for the quarter was 46.9 percent, compared to 45.9 percent in the year-ago quarter. Apple also declared a quarterly dividend payment of $0.25 per share, payable on February 13 to shareholders of record as of February 10. "Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago," said Tim Cook, Apple's CEO. "We were thrilled to bring customers our best-ever lineup of products and services during the holiday season. Through the power of Apple silicon, we're unlocking new possibilities for our users with Apple Intelligence, which makes apps and experiences even better and more personal. And we're excited that Apple Intelligence will be available in even more languages this April."

In his latest Power On! newsletter, Apple analyst Mark Gurman called the company's new smart device "Apple's most significant release of the year because it's the first step toward a bigger role in the smart home." The device in question is rumored to be a new smart hub that could look like a HomePod with a seven-inch screen. Digital Trends reports: Gurman calls the new smart device a "smaller and cheaper iPad that lets users control appliances, conduct FaceTime chats and handle other tasks." It doesn't sound like the new hub will stand alone, though; Gurman goes on to say that it "should be followed by a higher-end version in a few years." That version should be able to pan and tilt to keep users in-frame during video calls, or just to keep the display visible as someone moves around the home.

[...] Other details are still known, like whether the device will use an original operating system. The overall plan is to make the new smart device the center of an Apple-based smart home and open the doors to a more conversational Siri.

TikTok is still not available for download from U.S.-based app stores, reports CBS News. So "Some fast-acting entrepreneurs are selling phones with TikTok preloaded on devices for thousands of dollars online." The Associated Press notes that New York-based Nicholas Matthews "listed an iPhone 14 Plus with TikTok for $10,000. As of Friday, Matthews said his highest bid was for $4,550."

Another example from The New York Times: An information technology engineer, Mr. Gustab listed his iPhone 15 Pro with TikTok downloaded onto it for $3,000 on Facebook Marketplace. That's about three times the cost of a brand-new iPhone 16 Pro. On Thursday night, he had an offer for $1,200, still more than almost every brand-new iPhone and nearly twice as much as a refurbished iPhone 15 Pro without TikTok.
Business Insider reports the search term iPhone TikTok "yielded more than 45,000 results" on eBay...

An anonymous reader quotes a report from Bloomberg: Apple executive Kim Vorrath, a company veteran known for fixing troubled products and bringing major projects to market, has a new job: whipping artificial intelligence and Siri into shape. Vorrath, a vice president in charge of program management, was moved to Apple's artificial intelligence and machine learning division this week, according to people with knowledge of the matter. She'll be a top deputy to AI chief John Giannandrea, said the people, who asked not to be identified because the change hasn't been announced publicly. The move helps bolster a team that's racing to make Apple a leader in AI -- an area where it's fallen behind technology peers. [...]

Vorrath, who has spent 36 years at Apple, is known for managing the development of tough software projects. She's also put procedures in place that can catch and fix bugs. Vorrath joins the new team from Apple's hardware engineering division, where she helped launch the Vision Pro headset. Over the years, Vorrath has had a hand in several of Apple's biggest endeavors. In the mid-2000s, she was chosen to lead project management for the original iPhone software group and get the iconic device ready for consumers. Until 2019, she oversaw project management for the iPhone, iPad and Mac operating systems, before taking on the Vision Pro software. Haley Allen will replace Vorrath overseeing program management for visionOS, the headset's operating system, according to the people.

Prior to joining Giannandrea's organization, Vorrath had spent several weeks advising Kelsey Peterson, the group's previous head of program management. Peterson will now report to Vorrath -- as will two other AI executives, Cindy Lin and Marc Schonbrun. Giannandrea, who joined Apple from Google in 2018, disclosed the changes in a memo sent to staffers. The move signals that AI is now more important than the Vision Pro, which launched in February 2024, and is seen as the biggest challenge within the company, according to a longtime Apple executive who asked not to be identified. Vorrath has a knack for organizing engineering groups and creating an effective workflow with new processes, the executive said. It has been clear for some time now that Giannandrea needs additional help managing an AI group with growing prominence, according to the executive. Vorrath is poised to bring Apple's product development culture to the AI work, the person said.

Netflix plans to expand its cloud gaming offerings to include couch co-op and party games, according to co-CEO Greg Peters. The company will also continue developing narrative games based on its IP, despite recent leadership changes and the closure of its AAA game studio. The Verge reports: In the blog post, Netflix notes that it's a "limited" beta test, so it seems like this won't be available to too many people to start. (Netflix used that same "limited" language with the initial launch in Canada and the UK.) Like with the original test, the only two games available to stream are Oxenfree from Netflix's own Night School Studio and another game titled Molehew's Mining Adventure.

If you have access to the service, you'll need to download Netflix's special controller app for your iPhone or Android device to play the game on your TV. (Netflix says the streamed games work on "select devices," including Amazon Fire TV devices, Chromecast with Google TV, Roku devices and TVs, and more.) On the web, you'll be able to play games with a mouse and keyboard.

Apple's upcoming updates -- macOS Sequoia 15.3, iOS 18.3, and iPadOS 18.3 -- will enable Apple Intelligence by default on compatible devices, requiring users to manually disable it if undesired. From Apple's developer release notes: "For users new or upgrading to iOS 18.3, Apple Intelligence will be enabled automatically during iPhone onboarding. Users will have access to Apple Intelligence features after setting up their devices. To disable Apple Intelligence, users will need to navigate to the Apple Intelligence & Siri Settings pane and turn off the Apple Intelligence toggle. This will disable Apple Intelligence features on their device." MacRumors reports: With macOS Sequoia 15.1, macOS Sequoia 15.2, iOS 18.1, and iOS 18.2, Apple Intelligence was opt-in rather than opt-out, and users who wanted the feature needed to turn it on in the Settings app. Going forward, it will be enabled by default, and Mac, iPhone, and iPad users who do not want to use the feature will need to turn it off. The report notes that macOS Sequoia 15.3 introduces Genmoji, allowing Mac users to create custom emoji characters, and enhances Notification summaries with clearer indicators for AI-generated information.

Public releases of this and other software updates are expected next week, following today's release candidate versions.

Nokia accurately predicted the iPhone would revolutionize the smartphone industry in a confidential analysis prepared the day after Apple unveiled the device in 2007, according to internal documents recently released by Nokia's Design Archive at Aalto University in Finland.

The presentation praised the iPhone's touchscreen interface and recognized Apple's unprecedented control over carrier relationships, though it misjudged the importance of web browsing and Java support.

An anonymous reader quotes a report from CNN: Apple is temporarily pulling its newly introduced artificial intelligence feature that summarizes news notifications after it repeatedly sent users error-filled headlines, sparking backlash from a news organization and press freedom groups. The rare reversal from the iPhone maker on its heavily marketed Apple Intelligence feature comes after the technology produced misleading or altogether false summaries of news headlines that appear almost identical to regular push notifications.

On Thursday, Apple deployed a beta software update to developers that disabled the AI feature for news and entertainment headlines, which it plans to later roll out to all users while it works to improve the AI feature. The company plans to re-enable the feature in a future update. As part of the update, the company said the Apple Intelligence summaries, which users must opt into, will more explicitly emphasize that the information has been produced by AI, signaling that it may sometimes produce inaccurate results.

Meta CEO Mark Zuckerberg criticized Apple's innovation record and business practices in a Joe Rogan podcast interview on January 10, claiming the iPhone maker has not "invented anything great in a while" and is "just sitting" on its flagship product 20 years after Steve Jobs created it.

Zuckerberg accused Apple of using arbitrary App Store rules and 30% developer fees to offset declining iPhone sales. He also said Apple blocks competitors from accessing iPhone protocols, citing Meta's failed attempt to integrate its Ray-Ban smart glasses with Apple's connectivity features. The Meta chief also criticized Apple's $3,500 Vision Pro headset, calling it inferior to Meta's $300-400 device.

The Register's Connor Jones reports: Marc Rogers, DEF CON's head of security, faces tens of thousands of dollars in medical bills following an accident that left him with a broken neck and temporary quadriplegia. The prominent industry figure, whose work has spanned roles at tech companies such as Vodafone and Okta, including ensuring the story lines on Mr Robot and The Real Hustle were factually sound, is recovering in hospital. [...] Rogers said it will be around four to six weeks before he returns to basic independence and is able to travel, but a full recovery will take up to six months. He begins a course of physical therapy today, but his insurance will only cover the first of three required weeks, prompting friends to set up a fundraiser to cover the difference.

Rogers has an impressive cyber CV. Beginning life in cybersecurity back in the '80s when he went by the handle Cjunky, he has gone on to assume various high profile roles in the industry. In addition to the decade leading Vodafone UK's cybersecurity and being the VP of cybersecurity strategy at Okta, as already mentioned, Rogers has also worked as head of security at Cloudflare and founded Vectra, among other experiences. Now he heads up security at DEF CON, is a member of the Ransomware Taskforce, and is the co-founder and CTO at AI observability startup nbhd.ai.

If you hadn't heard of him from any of these roles, or from his work in the entertainment biz, he's also known for his famous research into Apple's Touch ID sensor, which he was able to compromise on both the iPhone 5S and 6 during his time as principal researcher at Lookout. Other consumer-grade kit to get the Rogers treatment include the short-lived Google Glass devices, also while he was at Lookout, and the Tesla Model S back in 2015. "It's a sad fact that in the US GoFundMe has become the de facto standard for covering insurance shortfalls," Rogers said. "I will be forever grateful to my friends who stood it up for me and those who donated to it so that I can resume making bad guys cry as soon as feasibly possible."

The cybersecurity community has rallied together to support Rogers' fundraiser, which has accrued over $83,000 in donations. The goal is $100,000.

Indonesia will continue to block iPhone 16 sales despite Apple's planned $1 billion AirTag factory investment, as the facility does not meet local content requirements for smartphones, Industry Minister Agus Gumiwang Kartasasmita said on Wednesday. Indonesia banned iPhone 16 sales last year after Apple failed to meet rules requiring 35% locally-made components in smartphones sold domestically.

Complaints and ridicule have been mounting about mistakes by the iPhone maker's hyped feature, and its flaws risk a serious setback. Bloomberg: If you've seen any of Apple's marketing lately, you'll know the latest iPhone is billed as the first "built for Apple Intelligence." The "for" in that sentence is doing a great deal of work. It couldn't be "with" because Apple's AI features weren't ready when the device came out, and some are still yet to be released. The first were added to devices in iOS version 18.1, which came out in October.

These AI bells and whistles require users to physically opt in, and Apple has deemed the product in "beta" despite marketing it as the main reason to buy its latest device. "Hello, Apple Intelligence" is the message greeting visitors to Apple.com today. If you go into a store, it's what the sales representatives push most excitedly. But just like the Maps fiasco, Apple's AI isn't ready for the real world. Complaints and ridicule have been mounting. In December, a BBC notification was rewritten by Apple Intelligence to state falsely that Luigi Mangione, who has been charged in the killing of United Healthcare CEO Brian Thompson, had turned a gun on himself.

Last week, a summary crowned a darts champion before the match had started. Later the same evening, an alert falsely stated that Rafael Nadal had come out as gay. It's not just the BBC that's experiencing this issue. A New York Times headline was rewritten to suggest Israeli Prime Minister Benjamin Netanyahu had been arrested. "Nikki Glaser killed at Golden Globes," read another false summary. The mistakes have prompted the nonprofit Reporters Without Borders to call for Apple to "act responsibly" and remove the feature.

Apple Intelligence now requires 7GB of free storage per device, nearly doubling the original 4GB requirement from iOS 18.1. This is a result of new AI features like Genmoji, ChatGPT in Siri, and Image Playground. With further updates expected, storage demands could rise to 10GB per device. 9to5Mac reports: Per Apple's website, Apple Intelligence now requires 7GB of free storage. The same 7GB number applies whether you're using an iPhone, iPad, or Mac. But it also, since each product does its own on-device processing, adds up for multi-device use. If you want to use AI features across all three devices (which I'd assume most of us do), that's a grand total of 21GB of free space being used by Apple Intelligence. And unfortunately, if you're tight on storage, there's no way to reduce the requirement by disabling certain features.

Apple is offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, as the U.S. tech giant moves to defend its market share against rising competition from domestic rivals like Huawei. From a report: The four-day promotion, running from Jan. 4-7, applies to several iPhone models when purchased using specific payment methods, according to its website.

The flagship iPhone 16 Pro with a starting price of 7,999 yuan and the iPhone 16 Pro Max with a starting price of 9,999 yuan will see the highest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction. The discounts come as consumers remain cautious with spending amid China's slowing economy and deflationary pressures, with the country's consumer inflation hitting a five-month low in November.

Apple may be worth one and a half Googles now, but the world's most valuable company needs its relationship with the world's largest search engine to keep clicking. From a report: Such was evident Monday when Apple filed papers seeking to participate in the penalty phase of the Justice Department's antitrust case against Google. The search giant lost that case in August and is now battling the government over what remedies are appropriate. The DOJ has a long wish list that includes breaking the company up, forcing Google to make key search and user data available to potential rivals, and stopping the payments Google makes to partners such as Apple.

The payments to Apple alone now reportedly equate to about $20 billion annually, and make Google the default search engine on devices like the iPhone. Apple didn't confirm any specific amounts in its filing, but did say the company feels compelled to "protect its commercial interests." Analysts widely estimate that the payments from Google are nearly pure profit for Apple, given relatively little incremental cost to generate that revenue. For Apple, $20 billion is about 16% of the operating income reported for the company's fiscal year that ended in September.

Apple has started pulling its iPhone SE and iPhone 14 models from sale in Switzerland, signaling broader discontinuation across the European Union ahead of new USB-C charging requirements taking effect December 28.

The devices, which use Apple's proprietary Lightning port, disappeared from Swiss online stores today. Switzerland, while not an EU member, follows EU market rules. Apple-authorized resellers can continue selling existing stock until depleted. A new USB-C compatible iPhone SE is expected in March.

According to Bloomberg's Mark Gurman, Apple is no longer developing a hardware subscription service for iPhones that would let subscribers upgrade devices every year. Gurman first reported Apple's work on the service in 2022, noting it was delayed due to "software bugs and regulatory concerns." The Verge reports: While the hardware subscription service apparently won't see the light of day, Apple offers installment plans you can use to pay for an iPhone over time. The iPhone Upgrade Program spreads the payments of a loan for a new iPhone (and AppleCare Plus) over 24 months, and you can upgrade to a new phone after you pay the equivalent of 12 months. If you have an Apple Card, you can also pay for a new iPhone (and other Apple products) using Apple Card Monthly Installments.

An anonymous reader quotes a report from 9to5Mac: A new survey suggests that Apple Intelligence matters to iPhone buyers, but the majority say that the initial features add little to no value. It remains to be seen whether Genmoji and ChatGPT integration will change that view. Things are even worse for Samsung smartphones, with an even greater majority of owners saying they can't see much point in the AI features offered

A new survey by tech trade-in site SellCell found that AI is an important factor when choosing a new smartphone: "iPhone users showed relatively higher interest in mobile AI than Samsung users as almost half (47.6%) of iPhone users reported AI features as a 'very' or 'somewhat' important deciding factor when buying a new phone vs. 23.7% of Samsung users who said the same." "Smartphone users in general are unsatisfied with the existing AI features as the survey recorded 73% of Apple Intelligence users and 87% of Galaxy AI users stating the new features to be either 'not very valuable' or they 'add little to no value' to their smartphone experience," reports SellCell.

According to the survey, these are the most popular Apple Intelligence features:
- Writing Tools (72%)
- Notification summaries (54%)
- Priority Messages (44.5%)
- Clean Up in Photos (29.1%)
- Smart Reply in Mail and Messages (20.9%)

Apple is preparing a series of major design and format changes to its lineup of iPhones and potentially other products, according to WSJ, a bid to revive growth after years of offering largely incremental upgrades. From the report: Starting next year, Apple plans to introduce an iPhone that will be thinner than the approximately 8-millimeter profile of current models, said people familiar with the company's plans. The model is intended to be cheaper than Pro models, with a simplified camera system to reduce costs.

The company is also planning two foldable devices, the people said. A larger device, intended to serve as a laptop, would have a screen that unfolds to be nearly as large as some desktop monitors, at about 19 inches. A smaller model would unfold to a display size that would be larger than an iPhone 16 Pro Max, intended to serve as a foldable iPhone, the people said.

Both foldable designs have been in development for years, but some key parts weren't ready. Major challenges included improving the hinge, a mechanism that allows the device to fold and unfold, and the display cover, a flexible material protecting the foldable screen. Current foldable phones on the market aren't thin, light or energy-efficient enough to meet Apple's standards, which is why Apple has been slower to enter this segment, said Jeff Pu, an analyst with Hong Kong-based brokerage Haitong International Securities.

An anonymous reader quotes a report from MacRumors: Apple will begin making AirPods in India for the first time early next year, reports Bloomberg. Foxconn will make the wireless earphones at a factory near Hyderabad in Telangana state, beginning around Q1 2025. The factory has reportedly been making AirPods on a trial basis, with manufacturing set to ramp up quickly after production begins. It will make AirPods only the second major Apple product to be assembled in India after the iPhone.

The decision to set up production in India was requested by Apple back in 2023, according to a previous report. Foxconn officials apparently debated internally for months about whether to assemble AirPods due to the relatively low profit margins, but ultimately decided to go ahead with it to "reinforce engagement" with Apple. Indian Prime Minister Narendra Modi's government offers financial incentives to companies that produce wireless earphones and smartwatches locally, which influenced Apple's decision to move manufacturing there. The move is also part of Apple's plan to reduce its production reliance on China amid rising geopolitical tensions between the country and the United States.