Apple has decided it won't bid on the digital rights to stream the NFL's "Thursday Night Football" package next season, according to Re/code.
The streaming rights to the NFL's Thursday evening games could have helped set the Apple TV apart from competing streaming boxes, but Apple reportedly felt the package "isn't enough to pull that off." Amazon, Facebook, Verizon, and Yahoo remain candidates in the bidding war to stream the Thursday evening games online, the report claims.
Yahoo could be a frontrunner to secure the digital rights, after paying an estimated $15 million to exclusively live stream a 2015 regular season game between the Buffalo Bills and Jacksonville Jaguars at London's Wembley Stadium.
The NFL currently offers a live streaming service called Game Pass, but the app does not include "Thursday Night Football," and its selection of games is limited compared to rival platforms MLB At Bat, NBA League Pass, and NHL GameCenter.
In February, the NFL announced that "Thursday Night Football" will air on CBS, NBC, and NFL Network in 2016 and 2017. CBS and NFL Network will televise the first half of the schedule, with NBC and NFL Network televising the second half.
Amazon has removed the ability to encrypt data on its consumer devices in the latest update to its Fire OS operating system.
The change effectively kills local encryption on the company's range of Fire tablets, Kindle e-readers and streaming media devices, leaving the data on these devices vulnerable to attacks and potentially accessible to thieves if the devices are stolen.
Kindle Fire, Fire Phone, Amazon Fire HD, and Amazon Fire TV Sticks are all affected after users accept the Fire OS 5 update. The Verge reports that Amazon forum members first flagged the encryption removal on February 21, before the change was picked up by Twitter user David Scovetta yesterday.
It's unclear why Amazon would choose to reduce the security of its devices, but the change is not a new development and was actually a decision made months ago, according to the company.
"In the fall when we released Fire OS 5, we removed some enterprise features that we found customers weren't using," an Amazon spokesperson stated to various press outlets. "All Fire tablets' communication with Amazon's cloud meet our high standards for privacy and security, including appropriate use of encryption."
The news comes amid Apple's high-profile dispute with the FBI over its refusal to comply with a court order compelling the company to create software that would unlock the phone of terror suspect Syed Rizwan Farook.
Dozens of technology companies, industry trade groups, and encryption experts have been submitting documents to support Apple, all catalogued on Apple's website. Yesterday, Amazon also put its name to an amicus brief in support of the company's stance.
Update: Amazon has pledged to restore disk encryption security protection to its mobile operating system after the firm reversed its stance over the weekend. "We will return the option for full disk encryption with a Fire OS update coming this spring," an Amazon spokesman told the BBC.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Video network Vimeo has released an update to its iOS app that brings an overhauled interface to improve content discovery and added support for iOS 9 features.
The redesign offers clearer navigation and adds 16 human-curated video content categories for users to explore, including Music, Animation, Documentary and Travel.
The update also takes advantage of devices running iOS 9, with an option added for picture-in-picture viewing and the benefit of Spotlight search integration.
Elsewhere, the uploading process has been modified to help video creators share their content quicker and easier than before, with new options to password-protect videos or hide them from public listings.
The app's sharing options have also been expanded to bring them in line with Vimeo's desktop web interface, allowing videos to be shared publicly, with select groups or only with people you follow.
Additionally, videos in the stream view now appear as thumbnails with descriptions instead of taking up the whole screen, while the new player window offers recommendations for what to watch next, as well as a simpler commenting system and a streamlined method of viewing videos offline.
Vimeo is available on the App Store as a free download for iPhone and iPad.
The iPhone at the center of the ongoing encryption dispute between Apple and the FBI may contain a "dormant cyber pathogen", according to the San Bernardino county District Attorney.
The curious claim appears in an amicus brief filed by Michael Ramos with a California court on Thursday. In the document, Ramos speculates that the iPhone used by terror suspect Syed Rizwan Farook "may contain evidence that can only be found on the seized phone that it was used as a weapon to introduce a lying dormant cyber pathogen that endangers San Bernardino's infrastructure."
The apparent threat is cited as a violation of California Penal Code Section §502, covering protections against tampering, interference, damage and unauthorized access to computer systems. The reference suggests Ramos believes that some sort of malware may be contained on the iPhone, but offers no justification for the claim, nor the odd nature of its wording.
"It sounds like he's making up these terms as he goes," said iPhone forensics expert Jonathan Zdziarski, speaking to Ars Technica about the filing. "We've never used these terms in computer science." Zdziarski believes that the amicus is simply designed to mislead the courts and manipulate a decision in the FBI's favor. "It offers no evidence whatsoever that the device has, or even might have, malware on it. It offers no evidence that their network was ever compromised."
The claim in the court filing is the first time that a law enforcement agency has alluded to what may be contained on the iPhone at the center of the federal investigation. It also runs counter to the FBI's main dispute with Apple that it requires assistance from the company precisely in order to ascertain its content.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Sixteen technology companies today teamed up to officially support Apple in its ongoing encryption dispute with the FBI, a copy of which has been shared by Apple. Twitter, Airbnb, eBay, LinkedIn, Square, Atlassian, Automattic, Cloudflare, GitHub, Kickstarter, Mapbox, Meetup, Reddit, Squarespace, Twilio, and Wickr filed an amicus brief [PDF] backing Apple's assertion that the FBI's use of the All Writs Act to force Apple to help the government unlock the iPhone used by San Bernardino shooter Syed Farook is both unprecedented and dangerous.
The government's demand here, at its core, is unbound by any legal limits. It would set a dangerous precedent, in which the government could sidestep established legal procedures authorized by thorough, nuanced statutes to obtain users' data in ways not contemplated by lawmakers."
The filing, which urges the court to vacate the government's motion to compel Apple to unlock the phone, argues that handling user data in a "safe, secure, and transparent manner" that protects privacy is of the "utmost importance" to protect consumers from hackers and other wrongdoers, while also recognizing the government's "important work" in law enforcement and national security. It says the companies oppose forced backdoors, but will continue to comply with "proper and reasonable" requests for data.
Dozens of technology companies, industry trade groups, and encryption experts have been submitting documents to support Apple, all catalogued on Apple's website. AT&T, Intel, and the Electronic Frontier Foundation filed separate amicus briefs this morning, as did the Consumer Technology Association in partnership with the Business Software Alliance [PDF], a group that includes Microsoft, Salesforce, Oracle, IBM, and Autodesk.
Other amicus briefs have come from Access Now and the Wickr Foundation, ACT/The App Association, the American Civil Liberties Union, and a group of cryptography experts including Jonathan Zdziarski.
More amicus briefs are expected to be filed throughout the day, including one from a consortium that includes Google, Nest Labs, Facebook, WhatsApp, Evernote, Snapchat, and Mozilla.
All "Friend of the court" or amicus briefs supporting Apple are due by Thursday evening to give Sheri Pym, the judge presiding over the case, time to read through them before a court hearing. Apple is set to face off against the FBI in court on Tuesday, March 22.
Update: As expected, another consortium of technology companies that includes Google, Amazon, Box, Cisco, Dropbox, Evernote, Facebook, Google, Microsoft, Mozilla, Nest, Pinterest, Slack, Snapchat, Whatsapp, and Yahoo has submitted an amicus brief in support of Apple.
Additional amicus briefs have been filed by the Center for Democracy & Technology, The Media Institute, Privacy International and Human Rights Watch, a group of 32 law professors, and a consortium including AVG Technologies, Data Foundry, Golden Frog, the Computer & Communications Industry Association, the Internet Association, and the Internet Infrastructure Coalition.
Five families of San Bernardino victims have filed in support of the FBI.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Back in February, Apple's Worldwide Developer Certificate, designed to verify third-party apps and services, expired, requiring Apple to issue a new certificate for developers to use.
As pointed out by TidBITS (via Ars Technica) a side effect of the replacement of the certificate causes older OS X installers to fail to launch. OS X installation files downloaded from the Mac App Store before February 14, 2016 and stored on a computer or USB drive are no longer functional. This includes installation files for OS X El Capitan and older versions of OS X like Mavericks and Mountain Lion.
Users who keep OS X installers on hand or have created USB install disks in case of emergencies should replace their files with new versions by re-downloading them through the Mac App Store using purchased history. TidBITS points out that some older versions of OS X, like Lion, will not be downloadable on newer machines. Users who can't replace an expired certificate can still use older installers by changing the dates on their machines.
If you are in the middle of an OS X install and get tripped up by the expired certificate, Randy Singer offers a suggestion on how you can work around the problem quickly, without having to download a new installer:
1. In the OS X Installer, choose Utilities > Terminal. 2. Enter date 0201010116 and press Return. 3. Quit Terminal and continue the install.
That Terminal command sets your system date to 1 February 2016 -- before the certificate's expiration -- so the installer can continue. Once you have completed the installation, visit System Preferences > Date & Time to reset the system date.
Apple's certificate renewal process resulted in some problems for developers and Mac users back in November, as it caused multiple Mac App Store apps to display a "damaged" error and fail to open. Apple quickly addressed the issue and has helped developers transition to the new certificate.
Disney today announced that the newest film in the popular Star Wars saga, Star Wars: The Force Awakens, will be available on iTunes, Disney Movies Anywhere, and other Digital HD sources on Friday, April 1, several days ahead of a planned April 5 Blu-ray and DVD release.
Star Wars: The Force Awakens takes place 30 years after Return of the Jedi, pitting new characters like scavenger Rey and former stormtrooper Finn against Kylo Ren and the First Order. Mark Hamill, Harrison Ford, and Carrie Fisher also reprise their roles as Luke Skywalker, Han Solo, and Princess Leia.
Digital bonus features will vary by retailer, but may include behind-the-scenes interviews and details on the making of the film, the building of the BB-8 droid, deleted scenes, and more. Apple and Disney have not specified which features will be included with the iTunes version of the movie.
- Secrets of The Force Awakens: A Cinematic Journey - For the first time, discover the complete story behind the making of The Force Awakens, revealed through in-depth footage and exclusive interviews with the actors and filmmakers in this feature documentary - The Story Awakens: The Table Read - Cast members familiar and new reflect on the memorable day they all first came together to read the movie's script - Building BB-8 - See how the filmmakers brought the newest droid to the screen, creating an instant fan favorite in the Star Wars universe - Crafting Creatures - Watch movie magic as the filmmakers bring a cast of new creatures to life - Blueprint of a Battle: The Snow Fight - Go deeper into the epic, climactic lightsaber battle between Rey and Kylo Ren - John Williams: The Seventh Symphony - The legendary composer shares personal insights of his work on Star Wars and The Force Awakens - ILM: The Visual Magic of The Force - An insider's look into the remarkable digital artistry of the movie's visual effects. - Force For Change - Heroes come in all shapes and sizes. See how the Star Wars: Force for Change initiative has united Star Wars fans all over the globe to help others.
During a recent Xbox press event, ShackNews had an opportunity to speak with Oculus VR founder Palmer Luckey and asked him whether the company plans to implement Mac support for the Oculus Rift virtual reality headset.
In response to the question, Luckey said Oculus Rift support for the Mac was "up to Apple," and that the company needed to "prioritize higher-end GPUs." If Apple builds a machine that can handle the hardware, Oculus VR would "love to support Mac."
That is up to Apple and if they ever release a good computer we will do it. It just boils down to the fact that Apple doesn't prioritize high-end GPUs. You can a buy $6,000 Mac Pro with the top of the line AMD FirePro D700s and it still doesn't match our recommended spec. If they prioritize higher-end GPUs like they used to for awhile back in the day I think we'd love to support Mac.
Right now there's just not a single machine out there that supports it so even if we can support it on the software side there's just no audience of people that can run the vast majority of software out there.
The Oculus Rift, which is available for pre-order, will begin shipping out later this month to PC users. While Mac support was planned early on, work on a Mac version was halted once it became clear Mac machines would not have the graphics capabilities to power the headset.
As Luckey mentions, the Oculus Rift requires a computer with a powerful GPU. Oculus VR's recommended specs for the Rift include an NVIDIA GTX 970, AMD 290, or equivalent, because the Oculus Rift needs to render approximately 400 million shaded pixels per second. Mac machines, even the high-end ones, don't have the graphics power to handle that kind of system load.
On the raw rendering costs: a traditional 1080p game at 60Hz requires 124 million shaded pixels per second. In contrast, the Rift runs at 2160x1200 at 90Hz split over dual displays, consuming 233 million pixels per second. At the default eye-target scale, the Rift's rendering requirements go much higher: around 400 million shaded pixels per second. This means that by raw rendering costs alone, a VR game will require approximately 3x the GPU power of 1080p rendering.
With interest in virtual reality devices like the Oculus Rift picking up, Apple will need to focus more heavily on the graphics capabilities with Macs if it hopes to keep up with PC makers and avoid disappointing customers who want to use the latest technology and gaming peripherals. Rumors suggest Apple is even developing its own virtual reality headset, so there's a good chance the company is already well aware of the need for improved GPUs and working towards improvements.
Construction on Apple's second campus in Cupertino, California continues to progress as its completion date looms, and this month, further work has been done on the main ring-shaped building that spans 2.8 million square feet. Structural framing is nearing completion, and construction workers are preparing the solar panels that will be installed on the roof. More glass window panels have gone up, along with window canopies in some spots.
The large, curved sheets of glass that surround the building are designed to let employees look out over the campus, which will be covered in greenery. Apple is planning to include 80 percent green space on the campus, with a central garden, orchards, and several outdoor dining areas.
Apple CEO Tim Cook recently said the large mound of dirt in the center of the campus will not be removed, instead going towards landscaping that will support more than 7,000 trees. "Hard to know which is more beautiful, the building or that pile of dirt," he said.
The roof of the underground auditorium, where Apple will host events, is now in place, and work on a 100,000 square foot fitness center is underway. Solar panels are being added to the second of two parking garages, which will provide parking for more than 10,000 employees. Underground tunnels are in place for access to underground parking and other campus areas.
Construction on the campus is scheduled to be completed at the end of 2016, and Cook believes Apple will begin occupying the building at the beginning of 2017.
A new musical centering around the founding of Apple Computers by Steve Jobs is debuting this month in New York. Developed at the New York Musical Festival, the Musical Theatre Factory, and the New York Theatre Barn, "The Crazy Ones" is billed as "a thrilling new original pop-rock musical" that aims to depict Jobs' genius as well as his "very powerful demons."
In 1982, Steve Jobs was in control. His company, Apple Computer, was on top of the world: his products were changing the work and home life of hundreds of thousands of users every day, and he was exorbitantly, extravagantly rich. But something sinister was brewing underneath the surface - both at Apple, and in Steve's own mind. The Crazy Ones tells the story of the man behind the genius and how he strove to leave behind a legacy, despite some very powerful demons.
The music and lyrics were written by award-winning composer Zack Zadek with a book by Alexander Pototsky, who've been working together on the idea for The Crazy Ones for over two years. Their creation will finally see its debut on March 15 at Feinstein’s/54 Below in New York City. Those interested in attending can check out ticket pricing here.
This isn't the first time Steve Jobs' life has been the subject of dramatization outside of film -- last year it was announced that an opera depicting the Apple co-founder's life will debut in 2017.
Last week, we saw some conflicting designs for what the upcoming 4-inch iPhone 5se or SE might look like, based on information obtained from case manufacturers. With less than three weeks to go before the device's introduction, we're now seeing the first actual "iPhone SE" cases surface online, although it's clear these companies have yet to nail down just what the phone will look like.
iPhone 5se/SE case with iPhone 5s-like design including power button on top
As revealed in images obtained by MacRumors, distributors offering "iPhone 5se" cases for bulk purchase are carrying cases of both rumored designs, which include one very similar to the iPhone 5 or 5s design with the power button on the top and another more like the iPhone 6 design with rounded edges and the power button on the side.
iPhone 5se/SE case with iPhone 6-like design including power button on side
Early case leaks have historically been fairly accurate indicators of new iPhone designs, though there have been a few notable exceptions. With two distinct case designs still floating around this close to the iPhone SE's launch, it's clear there is still confusion over just what Apple intends to release.
Yesterday, we published our own take on one way to reconcile the conflicting rumors, combining a curved-edge front glass panel that has been a consistent feature of iPhone 5se/SE rumors with a metal chassis that has a bit of the iPhone 5s design aesthetic including glass antenna windows at the top and bottom of the device's back.
Apple Maps has been updated with new traffic data in Singapore and Malaysia, providing users with real-time updates about vehicular traffic in the neighboring southeast Asia countries. As usual, highly congested areas will have orange or red dotted lines along the roads to indicate that drivers may face delays.
Apple has yet to list Singapore or Malaysia under Apple Maps: Traffic on its iOS 9 feature availability website, but the page will likely be updated soon. Apple Maps traffic data is available in 30 other countries, including the U.S., Canada, Australia, New Zealand, Mexico, South Africa, China, and most of Europe.
After launching the Echo over a year ago, today Amazon announced two new additions to the lineup of voice-controlled smart hubs that house the company's personal assistant Alexa. Users will now be able to purchase a more portable version of Echo with Amazon Tap, and even expand the device's power into other rooms with Echo Dot.
The $130 Amazon Tap is a more rugged, pick-up-and-go alternative to the original Echo, housing built-in Wi-Fi, Bluetooth, and the company's Alexa operating system. Instead of interacting with Alexa through always-on functionality, Amazon Tap requires users to tap the microphone button on the front of the speaker to access the service's voice commands. If connected to Wi-Fi or a mobile hotspot, users will be able to gain access to all of the normal, cloud-based features the Echo grants at home.
Amazon Tap
TechCrunch got a brief hands-on demo of Amazon Tap and came away largely satisfied with its sound quality and battery life:
Amazon demonstrated the sound quality to me before Tap went out today and I can say it did provide an impressive musical experience. Duel-firing Dolby speakers enable Tap to provide rich, 360-degree quality sound.
It’s also meant to tote around and comes with a pretty solid battery life for that purpose. A fully charged Tap will last for up to nine hours of playback or three weeks in standby mode.
Alternatively, Amazon also has created a new household expansion to Echo with Echo Dot. The small, palm-sized device will let users expand the capabilities of Echo to different rooms of their house for $90, or half of Echo's $180 price tag. Like the flagship Echo product, Echo Dot uses far-field voice recognition to respond to the inquiries of its user while simultaneously being able to detect commands specified towards it over other the din of a room.
Echo Dot
Echo Dot still may run into issues if it's asked to perform actions in a separate room, and having two Echo devices in the same location may also cause problems. "Dot is meant for one area at a time," according to Amazon.
No specific launch date was given for Amazon Tap or Echo Dot, but the company is attempting an interesting release plan for the latter device: users will only be able to buy the $90 Echo Dot from an Echo itself or Amazon Fire TV. The $130 Amazon Tap will be available through the company's traditional online marketplace.
Index has announced that it is upgrading clothing retailer American Apparel's point-of-sale systems to enable Apple Pay, Android Pay, and other NFC-based mobile payment services at its U.S. stores. The new systems will also include point-to-point encryption (P2PE) and EMV for Chip-and-Signature or Chip-and-PIN cards.
American Apparel, based in Los Angeles, California, is a popular wholesale provider of basic t-shirts and other clothing. As of September 2015, the company operated 227 retail stores in 19 countries, although many of its sales occur online. The retailer exited Chapter 11 bankruptcy in February 2016 with an approved restructuring plan.
American Apparel joins several other popular U.S. brands that have or will adopt Apple Pay by the end of 2016, including Crate & Barrel, Chick-fil-A, Au Bon Pain, Cinnabon, Chili's, Domino's, KFC, and Starbucks. Apple Pay is now available at more than 2 million retail locations in the U.S., U.K., Australia, Canada, and China.
Apple could be ready to move into its new 76,000-square-foot leased office space in San Francisco by late summer 2016, according to Reuters. The new office, located at 235 2nd Street in the city's expensive South of Market neighborhood, will reportedly have enough space for about 500 workers upon completion.
Apple currently has offices throughout the South Bay suburbs, including Cupertino, Sunnyvale, Santa Clara, and North San Jose, but some employees face an hour-plus commute along the heavily-trafficked Highway 101. Apple's new San Francisco office could help it recruit key employees who are reluctant to work outside of the city.
The iPhone maker's modest expansion into San Francisco follows several other tech companies and startups, including Google, Uber, and Yelp, and its new office will appeal to young workers that prefer the city's nightlife, public transportation, and overall lifestyle. Apple will share space with CBS Interactive, the main tenant.
Apple co-founder Steve Jobs advocated for a centralized campus that is "within walking distance of everyone," but increasing competition, lack of available office space in the South Bay area, and acquisitions like Beats and Topsy are likely driving forces behind its expansion beyond Silicon Valley.
“Apple’s attitude has always been that you have the privilege of working for Apple, and if you don’t want to do it, there’s someone around the corner who does,” said Matt MacInnis, a former Apple employee who worked on the company’s education business and is now CEO of Inkling, an enterprise technology company.
Now, MacInnis said, “they have to compete.”
Nevertheless, the majority of Apple's workforce will remain based in Cupertino. The company's spaceship-like Campus 2 project is scheduled to be completed in late 2016, and the 176-acre property will house some 13,000 employees. Apple previously said that it had more than 25,000 employees in the Santa Clara Valley.
Apple today created an official Twitter support account to provide customers with tips, tricks, and customer service regarding the company's product and services. One of the account's first tweets shares step-by-step instructions on how to turn lists into checklists in the stock Notes app on iPhone.
Many large companies provide customer service on Twitter in 140 characters or less, and it appears that Apple will directly respond to customer tweets as well. The account is currently set to accept Direct Messages, although Apple may choose to disable that option akin to some of its other Twitter accounts.
Apple continues to lack an official company presence on the popular microblogging service, although it does have some Twitter accounts for specific products and services like the App Store, Apple Music, iTunes, and Beats 1. Tim Cook, Phil Schiller, Eddy Cue, and many other executives also have personal accounts.
Apple is reportedly aiming to push up the debut of the OLED iPhone to 2017, reportsNikkei (viaAppleInsider). The move would see Apple make the switch to OLED a year earlier than previously estimated.
In December, Apple contacted LG and Samsung about the potential to ramp up OLED production in time for the 2017 iPhone. However, the OLED technology would likely be limited to a higher-end iPhone like the 7 Plus or the rumored iPhone Pro due to possible supply constraints.
Apple, who is reportedly close to a deal with Samsung for flexible OLEDs, has been interested in using curved OLED displays in future iPhones, but Nikkei notes that Apple's accelerated development may leave those plans temporarily stalled. Apple is apparently looking to quickly switch to OLED displays to juice iPhone sales, which analysts expect to stall.
In November, Nikkeireported that Apple expected to switch to OLED displays in 2018. Apple supplier Japan Display is planning for mass production of OLED displays for iPhones beginning in early 2018. Samsung and LG, however, are expected to provide the bulk of the OLED panel production, with Samsung planning to ramp up OLED production to 45,000 panels per month this year. The ever-reliable KGI Securities Ming-Chi Kuo reported in November that Apple was unlikely to fully adopt OLED displays until 2019.
Apple's ongoing fight with the FBI over whether the company can be compelled to help the government unlock the iPhone 5c used by San Bernardino shooter Syed Farook has brought the full range of Apple's privacy policies into the spotlight.
The details surrounding the case have made it clear that while Apple is unable to access information on iOS devices, the same is not true of iCloud backups. Apple can decrypt an iCloud backup and provide the information to authorities when ordered to do so via a warrant, as it did in the San Bernardino case.
In a piece posted on The Verge entitled "The iCloud Loophole," Walt Mossberg takes a look at Apple's iCloud backups and explains the reason why iCloud data can't be made as secure as data stored solely on an iPhone or iPad.
Apple is able to decrypt "most" of the data included in an iCloud backup, and an Apple official told Mossberg that's because the company views privacy and security issues differently between physical devices that can be lost and iCloud. With iCloud, it needs to be accessible by Apple so it can be used for restoring data.
However, in the case of iCloud, while security must also be strong, Apple says it must leave itself the ability to help the user restore their data, since that's a key purpose of the service. This difference also helps dictate Apple's response to law enforcement requests. The company's position is that it will provide whatever relevant information it has to government agencies with proper, legal requests. However, it says, it doesn't have the information needed to open a passcode-protected iPhone, so it has nothing to give. In the case of iCloud backups, however, it can access the information, so it can comply.
iCloud backups contain iMessages and texts, content purchase history, photos and videos, device settings, app data, voicemail password, and health data. Backups don't include information that's easily downloadable, such as emails from servers or apps, and while iCloud backup does encompass iCloud keychain, Wi-Fi passwords, and passwords for third-party services, that information is encrypted in a way that makes it inaccessible to Apple.
Mossberg suggests customers who don't want to upload data to Apple via an iCloud backup make local encrypted backups through iTunes using a Mac or PC, and he points out that other cloud storage services, like Dropbox, are no more secure.
Mossberg's full exploration of iCloud is available over at The Verge and is well worth reading for anyone interested in the security of data stored in the cloud.