MacRumors

Apple's Wearables, Home, and Accessories category reached record revenue numbers in the second fiscal quarter of 2021 (first calendar quarter), hitting $7.8 billion, up from the $6.3 billion it earned in the year-ago quarter.

Wearables, Home, and Accessories growth revenue was up a total of 25 percent combined. Apple CEO Tim Cook said that wearables growth was up thanks to strong sales of the Apple Watch Series 6 and the Apple Watch SE.

Apple Watch continues to be popular with those new to the device, and during the quarter, 75 percent of people who purchased an Apple Watch had not owned one before.

Going forward, Apple expects the new second-generation Apple TV 4K and AirTag to drive Wearables, Home, and Accessories growth. Apple CFO Luca Maestri said that Apple is "excited about the future of this category.

As people continue to work and learn from home, Macs and iPads are selling in record numbers, according to Apple's latest earnings report for the second fiscal quarter of 2021 (first calendar quarter).

Apple's Mac category brought in $9.1 billion in revenue, up from $5.4 billion in the year-ago quarter. As for iPads, Apple saw iPad revenue of $7.8 billion, up from $4.4 billion in the year-ago quarter. The ‌iPad‌ saw its highest March quarter revenue record in nearly a decade, and the last three quarters have marked the best Mac sales ever.

According to Apple CFO Luca Maestri, "more than half" of the sales of Macs and iPads during the quarter were from customers who were new to the devices and had not previously owned one.

The second fiscal quarter of 2021 covers sales of the new Mac and ‌iPad‌ devices, covering sales of the impressive new M1 Mac machines that include the 13-inch MacBook Pro, MacBook Air, and Mac mini.

‌iPad‌ and Mac sales could continue to grow even more in the coming quarter following the launch of the new ‌M1‌ iPad Pro and iMac models.

Apple today announced financial results for its second fiscal quarter of 2021, which corresponds to the first calendar quarter of the year.

For the quarter, Apple posted revenue of $89.6 billion and net quarterly profit of $23.6 billion, or $1.40 per diluted share, compared to revenue of $58.3 billion and net quarterly profit of $11.2 billion, or $0.64 per diluted share, in the year-ago quarter.

Apple set new all-time records for Mac and Services revenue for the quarter, while overall revenue set a March quarter record.

Gross margin for the quarter was 42.5 percent, compared to 38.4 percent in the year-ago quarter, with international sales accounting for 67 percent of revenue. Apple also declared an increased dividend payment of $0.22 per share, up from $0.205 per share. The dividend is payable May 13 to shareholders of record as of May 10.

"This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us," said Tim Cook, Apple's CEO. "Apple is in a period of sweeping innovation across our product lineup, and we're keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we'll help bring onto the grid and our $430 billion investment in the United States over the next 5 years."

As has been the case for over a year now, Apple is once again not issuing guidance for the current quarter ending in June, as considerable uncertainty surrounding the global health situation's impact remains.

Apple will provide live streaming of its fiscal Q2 2021 financial results conference call at 2:00 p.m. Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Apple earnings call recap ahead...

1:39 pm: Apple's stock price is currently up nearly 4% in after-hours trading.

1:41 pm: Apple's revenue was up 54% year-over-year, and net income more than doubled. Mac revenue was up 70% to a new all-time record, while iPhone revenue was up 65%, likely thanks partly to a later launch for the ‌iPhone‌ 12 that pushed some purchases into the March quarter.

1:45 pm: Services revenue was up nearly 27% year-over-year to set a new all-time record, while iPad revenue was up almost 79%. Wearables, Home and Accessories revenue was up almost 25%.

1:47 pm: Apple's gross margin of 42.5% was the company's highest since the third fiscal quarter of 2012. Apple's gross margin has typically hovered in the 38% range in recent years.

1:54 pm: Apple increased its quarterly dividend by 7% to 22 cents per share, and the board of directors authorized an additional $90 billion for the company's share repurchase program. Apple CFO Luca Maestri says Apple generated $24 billion in operating cash flow for the quarter and the company returned nearly $23 billion to shareholders in the form of dividends and share buybacks.

2:00 pm: Apple's earnings call with analysts should begin momentarily. Expected on the call are Apple CEO Tim Cook and CFO Luca Maestri.

2:01 pm: The call is beginning.

2:03 pm: They are beginning with routine risk warnings about forward-looking statements.

2:03 pm: ‌Tim Cook‌: Good afternoon everyone — Apple is proud to report another strong quarter. We set new March quarter records for revenue and earnings.

2:03 pm: There is optimism consumers seem to have about good days ahead. Mac and Services delivered all-time record results, and March-quarter records for ‌iPhone‌ and Wearables/Home/Accessories.

2:04 pm: We saw very strong performance for ‌iPhone‌, up 66% year over year.

2:04 pm: Over the past year, 10's of millions of iPads and Macs have been deployed to help students and workers be productive from home.

2:05 pm: Mac revenue record. Last three quarters have been the best for Mac ever.

2:05 pm: Touting Apple Silicon and the release of the new iMac and M1 iPad Pro.

2:06 pm: Apple Watch Series 6 and SE led Wearable/Home/Accessories, and new AirTag and Apple TV devices should help drive growth.

2:06 pm: 27% year over year growth in Services, with new records for services across all geos.

2:06 pm: Mentioning Apple Podcasts Subscriptions and Apple Card Family as new initiatives.

2:07 pm: We continued to deploy industry-leading tools to protect users' fundamental right to privacy. Privacy nutrition labels and app-tracking transparency.

2:07 pm: Give users a choice over how data is used and shared across apps.

2:08 pm: ‌Apple TV‌+ got the first Oscar nomination, and Ted Lasso has won a number of awards.

2:09 pm: Cook is discussing Apple's renewable energy commitments and investments in green energy efforts.

2:10 pm: Solar, wind, and more. Mentioning $200 million Restore Fund to help communities build sustainable industry and remove carbon from the atmosphere.

2:11 pm: Working to support minority app developers and to help build and scale those businesses.

2:11 pm: Apple will invest $430 billion in the US economy in the next five years.

2:12 pm: Now talking about challenges of COVID-19 and new lockdowns worldwide. "Instead of simply assuming the end is in sight, we at Apple are doing what we can to make it a reality."

2:13 pm: Thinking about what we felt at this time last year... thanks to researchers and scientists, we have reached new years of hopeful resolve.

2:14 pm: Luca is on now to reiterate the numbers from this quarter.

2:15 pm: Products gross margin was 36.1 percent. Services gross margin was 70.1 percent.

2:16 pm: ‌iPhone‌ revenue set a March quarter record, growing 66% year over year. Performance was consistently strong across the world. Set quarter records in most markets tracked.

2:16 pm: Active install base was a new all-time high. In the US, the latest survey from 451 research indicated customer satisfaction of more than 99% for the ‌iPhone‌ 12 family.

2:17 pm: $16.9 billion in Services, with all-time records for App Store, cloud services, music, video, advertising and payment services.

2:17 pm: Key drivers for services all continue to move in a positive direction.

2:17 pm: Installed base, transacting and paid accounts reached new all-tiem high, with paid accounts increasing double-digits in each geo.

2:18 pm: Up 40 million paid subs, 660-million paid subscriptions across all services. Up 145 million from a year ago, and 2x what they had 2.5 years ago.

2:18 pm: Apple Arcade expansion. Arcade originals and two entirely new categories, ‌App Store‌ Greats and Timeless Classics.

2:19 pm: Wearables/Home set new March-quarter record in every geographic segment. 75% of Apple Watch buyers were new to the product.

2:19 pm: All-time revenue record for Mac. Up 70% year over year. Grew strongly in each geographic segment.

2:19 pm: Enthusiastic customer response to ‌M1‌ Macs.

2:20 pm: ‌iPad‌ performance was outstanding, with revenue up 79%. Grew in every geographic segment, with all-time records in Japan and March record for the rest of Asia-Pacific.

2:20 pm: Surveys of US consumers from 451 Research measured satisfaction of 91% for Mac and 94% for ‌iPad‌.

2:20 pm: More than half of ‌iPad‌ and Mac buyers were new to the products.

2:21 pm: Delta Air Lines is putting ‌iPhone‌ 12 into the hands of all its flight attendants.

2:21 pm: Touting corporate adoption of Apple products.

2:22 pm: Total debt is $122 billion. Net cash of $83 billion.

2:23 pm: Return nearly $23 billion to shareholders during the quarter, including $3.4 billion in dividends and $19 billion to repurchase Apple shares.

2:23 pm: New allocation of $90 billion to share repurchases, plus increase in dividends and annual increases going forward.

2:25 pm: Given continued uncertainty around the world in the near term, we are sharing insights but not specific forecasts. June quarter revenues to grow strong double digits year over year, but we believe sequential revenue decline from March to June will be greater than prior years. First, due to later launch timing and strong demand, ‌iPhone‌ only achieved supply/demand balance during the March quarter. Steeper sequential decline than usual. Supply constraints will have revenue impact of $3-4 billion. GM between 41.5 and 42.5%. OpEx of $11.1-$11.3 billion. Tax rate around 14.5%.

2:25 pm: Q&A session starting.

2:27 pm: Shannon Cross: Big picture question on ‌iPhone‌. So many different things happening this cycle, 5G, pandemic, how are you thinking about the opportunity for refreshing the install base and attracting new customers, and are you seeing product lives shorten because of programs from carriers and Apple?

Cook: We saw double-digit increases on a year-over-year basis on both new-to-iPhone and upgraders. In March quarter, there was a record number of upgraders for a March quarter. We like what we see, it's early days of 5G. Different countries are in different points, but global penetration is still low. A lot of 5G upgrades will be in front of us, not behind us.

In China, things have moved quickly to 5G. They're moving quickly in the United States, but a lot of the other regions are slower to adopt and gain 5G coverage.

2:29 pm: Cross: Can you talk gross margin? That's higher than it's been in my memory at this point. Were there any offsets from higher components costs or logistics costs that were overshadowed by currency?

Luca: We guided to slightly lower levels than this quarter in June. We were up 270 basis points sequentially driven by cost savings, a strong mix on ‌iPhone‌ and in general across all product categories, and foreign exchange sequentially from December to March was favorable by 90 basis points. Those are the three major factors there.

Going into June, we will expect some level of deleverage, but offset by cost-savings. FX doesn't have much of an impact from March to June.

2:31 pm: Amit Daryanani: On services, I'd love to understand if mid-20% is the growth norm for services?

Luca: Services did better than we expected. It was stronger across the board. One of the things we noticed throughout COVID was that digital services have done very well and a couple of categories like AppleCare and Advertising were negatively affected. During March quarter we saw return to growth of ‌AppleCare‌ and we've reopened a lot of our stores during the quarter, and Advertising as consumer sentiment has improved and advertising is coming back. The combination of these factors has delivered strong performance during the March quarter. We don't provide specific guidance for product categories but in general, there are things we always look at through the services business, new paid accounts, new subscriptions, and is our install base continued to grow. When we look at these fundamental factors, we feel very good about it.

2:33 pm: Amit: Engagement with iPhones and Apple devices have gone up, but we don't see replacement cycles shrink or change. Does increased usage and replacement cycle not changing, if I'm using something more do I have to replace it more often?

Cook: We're clearly seeing strong performance in both new to ‌iPhone‌/switcher component and upgraders. Upgrader was the best March quarter that we've had. That speaks to what you're seeing a lot. It's difficult with just this far into the cycle to make a statement about the cycle in general, we just launched mid-way through the Q1 period. We've only been operating for 4.5 months or so, but clearly we like what we see right now. If you look at how the ‌iPhone‌ did around the world, we had top 5 models of smartphone in the US. Top 2 in Urban China. 4/5 in Japan. Top 4 in UK. Top 6 in Australia. It was an across the board, in key countries, we did really well. 5G cycle is important and we're in the early days of it, frankly.

2:36 pm: Katy Huberty: Pretty unbelievable quarter and investors are going to ask about the sustainability of current demand trends as you lapse some of the benefits from COVID in Services and Macs. Don't guide or provide outlook beyond the next quarter, but can you talk about a high level, which segments do you see an opportunity or maintain strong revenue growth, vs where is it reasonable to see digestion as consumers shift spending priorities?

Cook: Look at different products, the compare that we're running to would be the Q2 of last year as the quarter that China would have entered a shutdown first and then the rest of the world entered a shutdown in the middle part of March. Part of the growth is comparison point there. That said, the results were fabulous across the board. Shortages that Luca spoke about in the color he provided on the future affect the ‌iPad‌ and Mac. Challenges in there. Challenges meeting demand that we have. Demand feels very strong right now, both on Mac side (‌M1‌ and work from home and remote learning) and on ‌iPad‌ you have (WFH and remote learning), and the product that we just announced is really killer. There's a lot of great things going. The strength of product cycle and trends in the marketplace. Where the pandemic will end, it seems like many companies will be operating in a hybrid mode, so it would seem that work from home and productivity from work from home will remain very critical. In wearables, the Watch had a fabulous quarter. We're still in early innings on the Watch. New to the Watch buyers are 3/4. This is a long way from being a mature market. Services by itself has really accelerated so all-in-all we feel very good.

2:39 pm: Katy: How should we think about revenue growth deceleration or are there supply disruptions during the quarter that might have drained component inventory?

Luca: In prepared remarks, we mentioned ‌iPhone‌ launching later than usual and supply/demand balance only in the March quarter so we'll have a sequential decline there. And then $3-4 billion in supply constraints on Mac and ‌iPad‌. For channel inventory, we did what we normally do. Reduce inventory on ‌iPhone‌, we exited within our target range, so I would say that on the inventory side we're pretty straightforward given the supply constraints on ‌iPad‌ and Mac we wish we had more inventory there but this is a function of high demand for all our products.

2:41 pm: Wamsi Mohan: Content offerings are at compelling price points, other providers are making price increases. How does pricing affect your offerings and updates on ‌Apple TV‌+ paid subs?

Tim: TV+ is going very well. As you know the objective and philosophy on TV+ is to create high-quality original content and to be one of the most desired platforms for storytellers. I see that happening day by day as we sign more shows and storytellers. To date, we've received the Apple Originals, 352 award nominations and 98 wins. This is from Oscar nominations to Emmy awards, Critics Choice Awards and all the rest. Some of our shows have gotten significant buzz like Ted Lasso and The Morning Show. We feel really good about where we are. We're not releasing subscriber numbers but we feel good about where we are. In terms of other services and pricing, I don't have anything to announce today. We try to give the customer a great value and we feel that we're doing that with the prices that we have and we'll see where we go from here.

2:43 pm: Wamsi: Sequential decline to June, are the supply constraints of the 3-4 billion impact included in that or is that in addition to the more than average sequential decline? What's driving supply constraints at subcomponent level?

Luca: Normal seasonality, what we're saying is that we believe the sequential decline this year is higher than normal. Timing of ‌iPhone‌ launch and high demand for ‌iPhone‌, plus $3-4 billion for supply constraints that we mentioned. The constraints come from semiconductor shortages that are affecting many industries and it's a combination of the shortages and the very high level of demand that we're seeing for both ‌iPad‌ and Mac. For Mac, the last three quarters of Mac have been the best ever in the history of the product. WFH and learning from home is great but it's also the innovation and creativity that we put in the products over the last couple quarters.

2:45 pm: Aaron Rakers: Congratulations on the quarter. As I think about ‌iPhone‌ 12 cycle, it would appear that the mix has been quite healthy. Can you give context to the mix this cycle vs prior cycles, is that mix sustainable? What's the mix within the iPhones and how that's driving gross margin?

Tim: ‌iPhone‌ 12, of the family, it's the most popular. We saw very strong sales of the Pro and Pro Max, and the revenue that you're seeing is a function of unit growth and revenue per unit growth.

Aaron: Can you give context on how that might have changed this cycle versus prior cycles? Is there a structural change that can be sustained?

Cook: We don't predict beyond internal use, but we're really happy with the results.

2:46 pm: Aaron: To supply constraints, it's hard to look beyond this quarter, but when might supply constraints ease? For industry in general overcoming some of the supply dynamics?

Cook: Most of the issue is legacy nodes, not just in our industry but other industries. In order to answer that question accurately, we would need to know the true demand from each player and how that changes over the next few months so it's difficult to give a good answer. We have a good handle on our demand but what everybody else is doing, I don't know. We will do our best, that's what I can tell you.

2:47 pm: Harsh Kumar: Question on semiconductor supplies, you beat by a substantial margin on top line. What went in your favor to secure that kind of supply that you can beat by that amount?

Tim: We did not have a material supply shortage in Q2. How did we do that? You collapse all your buffers and offsets. That happens all the way through the supply chain and that enables you to go a bit higher than what we were expecting to sell.

2:48 pm: Harsh: With economy reopening here in the US, can we get thoughts on what you would expect for Macs and iPads in the second half of this year?

Tim: We don't guide to product level detail, and we're not guiding to the top level because of COVID. To Luca's point about shortages, those shortages primarily affect ‌iPad‌ and Mac. We expect to be supply gated, not demand gated.

2:50 pm: Krish Sankar: The greater China sales were very strong in March quarter. What drove the trend and what enabled that performance?

Tim: We were very pleased with our performance in China. Set March quarter revenue record. Revenue growth was broad across categories. Pleased by ‌iPhone‌ 12 response, and you have to remember that China entered the shutdown phase earlier in Q2 than other countries, so they were more affected in that quarter last year.

We had the top two selling smartphones and we're very proud of that, ‌iPad‌ and Mac both had enormously positive quarters with great strength across the board. Seeing strong reception to the new ‌iPad Pro‌ that we just announced. A lot of great comments. About two-thirds of people buying Mac and ‌iPad‌ were buying them for the first time, so attracting new customers in China.

2:52 pm: Krish: One of the concerns many investors have is because of overhang of regulatory risks. Do you think giving more public disclosure on services like ‌App Store‌ would help alleviate or do you think giving details... what do you think on services disclosure?

Tim: With regulatory and scrutiny, we have to tell our story and why we do what we do. We're focused on doing that. If we feel that more disclosure would help, we'd move in that direction. The ‌App Store‌ and other parts of Apple are not cast in concrete so we can move and are flexible with the times. Just a couple of quarters ago, we lowered the commission rate for small developers to 15%. That's an example of moving with the times and we've gotten a great reception for that. We continue to learn. Curating the ‌App Store‌ to get privacy and security that our customers want is very important and we have to convey that in a straightforward manner.

2:54 pm: Kyle McNealy: Growing ‌iPhone‌ sales can pull along Watch and AirPod sales, but through COVID that accessories do better in a physical store environment. Have you seen improvement in attach rate for Watch and AirPods in ‌iPhone‌ and can it get better from here?

Tim: We get a lot of benefit from our stores, when they're open and fully operational, we were in better shape for parts of Q2 than previously but we're still operating with limited operational model in many stores and some stores are still closed. Michigan and France, for example. It will take some amount of time but my view would be that as the stores get back up to speed, we should be able to increase some of the accessory sales. But I think we're doing fairly well at the moment so it's not something that we're not doing well. Online has been much more beneficial and productive than we would have guessed going into this.

2:55 pm: David Vogt: Early days, but any commentary or color from developers on App Tracking and what does initial feedback and data?

Tim: The focus is really on the user and giving the user the ability to make a decision about whether they want to be tracked or not. Putting the user in control, not Apple or another company. Feedback from users, both before it went live and after has been tremendous. We're really standing up on behalf of the consumer here.

2:56 pm: David: Can you discuss downloads and acceptance by the consumer? Opt-in or opt-out from consumer perspective?

Tim: It's not something that we would have predicted beforehand and even if it's very low for people who don't want to be tracked, it's worth doing because those people should make their own mind up whether they want to be tracked or not.

2:58 pm: Samik Chatterjee: Some of 5G iPhone upgrades are still in front of you and I assume Europe is in that category. What's driving exceptional growth here in Europe?

Luca: You're right, we had great performance in Europe, up 56%, and one of the geos where we saw results than even our own expectations. Strong double digits across every product category. ‌iPad‌ and Mac, they really were very strong. Again, Europe has been affected by lockdowns more than most parts of the world. The lockdowns have lasted longer than here in the US, Tim was mentioning there are places still where our stores are closed. Strong online business that has helped us, but working from home, learning from home, limited entertainment options, that has all played in our favor. Europe segment is very broad version of Europe because it includes Western Europe, doing very well, and then Eastern Europe and Middle East and even India is part of Europe. Those emerging markets have done incredibly well and significantly better than company average. In India, Russia, Middle East in general, it's very broad across product categories and across countries in Europe.

3:01 pm: Samik: What's the implication of the investment plans that you announced for the US for that $430 billion investment

Luca: We announced in 2018 that we were making a sizable commitment to the US, $315 billion in vestment over 5 years. During the last three years since then, we've overachieved on those commitments and felt it was the right time to update these types of investments. They span from investments directly at Apple for creation of new jobs at Apple over next five years in the US, and of course as our business has grown. Commitment to US suppliers grows over time and shows in higher numbers, but we've gotten into new businesses too. A lot of ‌Apple TV‌+ content is produced in the US. From OpEx standpoint, we're getting a lot of leverage. Sometimes our OpEx grows faster than revenue, and some cycles where the opposite happens. We want to continue to make the necessary investments in the business, and you will continue to see that we will continue to grow operating expenses on R&D side. That continues to be the core of the company.

3:01 pm: The call is complete. Thanks for joining us.

Popular cryptocurrency platform Coinbase appears to be working to make its Visa Debit Card, Coinbase Card, compatible with Apple Pay for purchases in stores, in apps, and online.

MacRumors has discovered evidence of upcoming ‌Apple Pay‌ support for Coinbase Card in the Coinbase app code in the form of a recently added image asset called "CardGoogleApplePay."

The company's Coinbase Card for the EU and UK has supported Google Pay since March 2020, but ‌Apple Pay‌ remains unsupported and Coinbase Card for the United States is yet to support either digital payments platform.

Coinbase has been in the news recently thanks to its IPO on April 14 which valued the company at over $80 billion at launch. Interest in the IPO resulted in Coinbase iOS app downloads spiking to over 386,000 downloads on April 19, more than double the number of typical daily downloads.

Netflix today announced the launch of a new "Play Something" option that's designed to play content on the streaming service based on user habits.

The feature gives people who log into Netflix and aren't sure what they want to view an option to get to content quickly without endless scrolling.

There are times when we just don't want to make decisions. A Friday evening after a long work week. A fridge full of food but nothing jumps out. A family movie night where no one can agree. We've all been there.

Sometimes you just want to open Netflix and dive right into a new story. That's why we've created Play Something, an exciting new way to kick back and watch.

Netflix says that Play Something will offer a new series or film that's similar to something you've watched before, an episode or film you've seen but might want to watch again if it's been a long time, a series or film on your watch list, or an episode from a show that you've started but haven't finished.

Play Something can be accessed from the login screen when you're choosing a profile, from the main home screen, or from the navigation menu.

Netflix has been testing this feature with some users for the last several months, but it is now rolling out to everyone.

Apple today released a new 3E751 firmware update for the second-generation AirPods and the AirPods Pro, updating them from the prior 3A283 firmware that was released back in September.

Apple does not offer information on what's included in refreshed firmware, so we don't know what improvements or bug fixes the new firmware brings.

There's no standard way to upgrade the AirPods‌ software, but firmware is generally installed over-the-air while the ‌AirPods‌ are connected to an iOS device. Putting the ‌‌‌‌AirPods‌‌‌‌ in the case, connecting the ‌‌‌‌AirPods‌‌‌‌ to a power source, and then pairing the ‌‌‌‌AirPods‌‌‌‌ to an iPhone or an iPad should force the update after a short period of time.

You can check your ‌‌AirPods‌ or ‌‌AirPods Pro‌‌‌ firmware by following these steps:

• Connect your ‌AirPods‌ or ‌‌AirPods Pro‌‌ to your iOS device.
• Open the Settings app.
• Tap General.
• Tap About.
• Tap ‌‌‌‌AirPods‌‌‌‌.
• Look at the number next to "Firmware Version."

If we find notable changes after the firmware updates are installed, we'll share details, but the software likely includes performance improvements and bug fixes.

Prior to when Apple announced the AirTags, companies including Chipolo, VanMoof, and Belkin debuted products that are part of the Find My network accessory program, integrating directly with the ‌Find My‌ app so they can be tracked when lost.

Of the three companies, Chipolo has the most AirTag-like device, a Bluetooth item tracker called the ONE Spot. Chipolo will need to compete with the AirTags to get people to make a purchase, and the company has already started its advertising campaign.

In an email titled "Can you spot the difference?" that was sent to prospective customers, Chipolo said that the ONE Spot "Attaches directly to your keyring," with "no accessory needed," pointing out one of the benefits of its tracker compared to the AirTags.

AirTags are small, circular item trackers that have no attachment point and require a secondary accessory to attach to key rings and other items. Apple sells accessories starting at $29, which is the same price as the AirTag, essentially doubling the price. Some of Apple's accessories are even more expensive, topping out with a $449 Hermès Luggage Tag.

There are more affordable accessories and some situations, such as tucking the ‌AirTag‌ inside a bag, won't require an accessory, but Chipolo does have an edge with the built-in loop for those who want to use a ring to attach it to keys and other items.

Chipolo's ONE Spot won't be available for preorder for another two weeks and it's not shipping out until June, which puts it well behind the AirTags. AirTags will begin arriving to customers later this week.

Because it integrates with the ‌Find My‌ app, the ONE Spot works just like the ‌AirTag‌ and can be located alongside other Apple devices right in the ‌Find My‌ app. It does, however, lack a U1 chip for the Precision Finding feature that the AirTags offer. Chipolo has yet to announce pricing for the ONE Spot.

(Thanks, Perry!)

Just a week after Apple unveiled the AirTags, T-Mobile has announced the launch of the SyncUP TRACKER, an LTE-based tracking device that's designed to attach to items that are easily lost.

Because it connects to T-Mobile's LTE network, the SyncUP TRACKER does not need to be near a smartphone to be tracked over Bluetooth, so it can be tracked regardless of location. That means it is ideal for use with items that are separated from you, such as luggage when traveling by plane.

T-Mobile says that the SyncUP TRACKER can be "found virtually anywhere" and that it provides near real-time tracking and virtual boundary alerts even when it's located hundreds of miles away. Users can get notified when a SyncUP TRACKER moves out of range of a set boundary, there's an option to ring a lost item, and a built-in light sensor can detect light changes from light to dark so the device can tell if it's moved out of a backpack, locker, or other item.

Each SyncUP TRACKER can have a customizable profile with name and photo, plus there are options to customize how often it pings back to a smartphone in order to improve the TRACKER's battery life. SyncUP TRACKERs feature an IP67 water and dust resistance rating, and the built-in 900mAh battery lasts up to seven days before needing to be recharged.

Apple's AirTags last for up to a year on a single CR2032 battery, but T-Mobile's need to be recharged more often because LTE drains more battery life.

T-Mobile's SyncUP TRACKERs are priced at $60 each or $2.50 per month per device on a 24-month payment plan, and the data plan will cost $5 per month. At this price point and with a monthly fee, the SyncUP TRACKER has a specialized purpose and won't likely be direct AirTag competitor. Apple's AirTags are priced at $29 each and do not have a monthly fee.

In partnership with AT&T and Apple, U.S. airline Delta will equip every one of its over 19,000 flight attendants with an iPhone 12 to "enhance the travel experience for all passengers," it was announced today.

With an iPhone 12 in their possession, AT&T said Delta flight attendants will be able to use augmented reality to more accurately assess in-cabin inventory, to receive more immersive training for critical tasks, and more. Delta will continue to work with AT&T and Apple to come up with additional use cases to improve in-cabin service.

Delta has equipped flight attendants and pilots with iPhones and iPads in the past. Apple has partnerships with several airlines, including American Airlines, which offers Apple TV+ as a free in-flight streaming option.

The Consumer Technology Association (CTA) today announced that CES 2022 will return to Las Vegas next year as an in-person event, but a digital component will remain. The conference will be held from January 5 through January 8.

While CES is returning to an in-person format, the CTA said that "digital audiences" will still be able to experience exhibits, conference sessions, keynotes, and product announcements from the show floor, as with the all-digital CES 2021. It's unclear if this means in-person attendance will be limited, as full details have yet to be released.

To date, some 1,000 companies have committed to showcasing their products and technologies at CES 2022, according to the CTA. Attendees can expect to see global brands including Amazon, AMD, AT&T, Mercedes-Benz parent company Daimler, Dell, Google, Hyundai, IBM, Intel, Lenovo, LG, Panasonic, Qualcomm, Samsung, and Sony, among others.

Apple has not had a booth at CES since the early 1990s, but the company's privacy chief Jane Horvath did appear at CES 2020 to debate the state of consumer privacy. Nevertheless, CES is still a notable event for the Apple ecosystem, as there are often several new products that incorporate technologies like HomeKit, AirPlay 2, and CarPlay.

Starting with the iOS 14.5, iPadOS 14.5, and tvOS 14.5 software updates released this week, apps must ask for permission before tracking your activity across other companies' apps and websites for targeted advertising purposes.

On an iPhone or iPad, users can manage tracking permissions on an app-by-app basis in the Settings app under Privacy > Tracking, and there is also an "Allow Apps to Request to Track" setting that applies to all apps. Each app that asks for permission to track while this setting is toggled off will be treated as if you tapped "Ask App Not to Track."

In a new support document, Apple said there are a few circumstances where the "Allow Apps to Request to Track" setting is grayed out, however, including:

• For users with child accounts or under age 18 by birth year, signed in with their Apple ID
• If your Apple ID is managed by an educational institution or uses a configuration profile that limits tracking
• If your Apple ID was created in the last three days

9to5Mac previously reported that some users are still seeing the toggle grayed out even when the first two circumstances listed above do not apply to them, suggesting that there could be a bug or other issue going on. Apple has yet to respond to requests for comment.

Some users suspect there might be a correlation between the "Personalized Ads" setting and whether "Allow Apps to Request to Track" is grayed out.

On devices with the "Allow Apps to Request to Track" setting grayed out, all apps that request to track are denied permission by default and cannot access the device's random advertising identifier, known as the IDFA, according to Apple. Apps are also not permitted to track your activity using other information that identifies you or your device, such as your email address, although this policy is not enforced at a technical level.

Apple recently shared a video with more details about its new App Tracking Transparency requirement for those interested in learning more.

In an report related to its ongoing investigation into Apple and Google app marketplace dominance, Australia's consumer watchdog has warned both companies that it wants consumers to have more choice when it comes to preinstalled apps on Apple and Android devices (via ZDNet).

Specifically, the Australian Competition and Consumer Commission (ACCC) wants Apple and Google to give users more control over the default apps in their respective mobile operating systems.

"There is a need for consumers to have more choice through an ability to change any preinstalled default app on their device that is not a core phone feature," the ACC said. "This would provide consumers with more control to choose the app that best meets their needs, and promote more robust competition in downstream markets for apps."

Apple already allows iOS users to choose third-party mail and web browsing apps over its native Mail client and Safari browser, but the ACCC wants to see the same level of choice applied to all pre-installed apps.

One of a number of proposed changes is the introduction of "choice screens" that allow consumers to choose between all first-party apps and third-party alternatives. The proposal is reminiscent of the prompt that iOS users in Russia see when first configuring a device to pre-install apps from a list of government-approved software.

Other proposals include the ability for developers to inform users of alternative payment options, and a means of preventing Apple and Google from using information collected about third-party apps to advantage their own competing apps. The watchdog warned the tech giants that regulation could be required if the concerns are not addressed.

The comments in the 165-page interim report are consistent with previous remarks made by the commission, which believes that Apple and Google hold a dominant position as app distributors which could be exploited by preferencing their own apps and payment platforms over third-party alternatives.

The report notes that outside of China, Android OS and Apple's iOS account for close to 100% of the market for mobile operating systems, with Google commanding 73% and Apple accounting for 27% of the market. In Australia, the split is more like 50/50.

"Apple and Google's dominance in mobile OS, combined with the control exerted over the app marketplaces permitted into their mobile ecosystems, means that the App Store and the Play Store control the key gateways through which app developers can access consumers on mobile devices," says the report.

The ACCC in March began assessing the basis for a formal probe into pre-installed software and pre-defined "default" choices on mobile devices, including Google being set as the default search engine on Apple devices. The app store report is just the latest development in the ACCC's ongoing Digital Platform Services Inquiry.

Apple is cutting production of its ultra-popular AirPods by around 25% to 30% due to a decrease in sales as a result of increased competition in the wireless earphone industry, according to a new report from Nikkei Asia.

According to the report, citing sources familiar with Apple's production plans, the tech giant now plans to produce only roughly 75 to 85 million units of AirPods for the remainder of this year. It had initially planned to aim for 110 million units.

Apple now expects to make between 75 million and 85 million units for 2021, compared with a previous production forecast of 110 million units.

"The most significant order reduction is for the second quarter toward the start of the third quarter," said one of the people familiar with the matter. "The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high ... and demand is not as strong as expected."

The report does not specify which AirPods specifically will see a production cut. Apple's current AirPods lineup includes the AirPods Pro, the second-generation standard AirPods with wireless charging, and the $550 over-ear AirPods Max. AirPods and AirPods Pro are expected to be upgraded this year, which Apple hopes will "stimulate sales," according to the report.

Towards the end of 2020, Apple updated its entire product lineup, ranging from new iPhones, iPads, Macs, Apple Watches, and more. The AirPods, which have dominated the wireless earphone market since their debut, was one of the only Apple products not to receive an upgrade towards the end of the year.

Apple is rumored to be working on third-generation AirPods with a design similar to the AirPods Pro but lacks "Pro" features such as Active Noise Cancelation. Apple analyst Ming-Chi Kuo says that production of the new AirPods will begin in the third quarter of the year.

In iOS 14.5, Apple has made some notable changes to its native Podcasts app. Some of these changes reflect the fact that Apple announced an optional paid podcast subscription service (beginning May 2021), while others are interface improvements to make it easier to find, follow, and listen to new episodes.

One example of these changes is the new Smart play button, which is designed to help you automatically start episodic shows from the latest episode and serialized shows from the beginning of each series. The Smart play button also display Resume if you've already listened to some of an episode but have yet to finish it.

Another notable change is in the Search tab, which now offers quick access to Top Charts and categories below the search input field, much like Apple Music search. Other tweaks include larger podcast artwork and a rejigged show page that has a more logical arrangement and is more aesthetically appealing.

Perhaps most importantly, the way you "subscribe" to shows and download episodes has changed. Keep reading to learn how.

How to Follow Shows

In previous versions of iOS, you could "subscribe" to shows in Apple's Podcasts app. But now that Apple offers a paid podcast subscription mode, it has removed the "subscribe" language from the app entirely and replaced it with Follow options, which should make things less confusing.

Despite the new terminology, following a podcast offers the same functionality as subscribing had before it. Namely, it means that you'll stay up-to-date with new show episodes as they're published and you'll be able to download them individually.

To follow a show, select one by browsing the Podcasts section, or search for one using the Search tab, then tap the plus (+) icon in the top-right corner of the Show's page.

To stop following a show, tap the tick icon and select Unfollow Show. You can also follow or unfollow shows by using the dropdown options that appear when you tap the More icon (three dots in a circle).

How to Automatically Download New Episodes

In previous versions of the Podcasts app, you had to add a show to your library before you could download new episodes. In iOS 14.5 and later, that's no longer the case, and you can download individual episodes right from a show's page.

To download an episode, tap the ellipsis icon (three dots) to the right of its card and select Download Episode from the pop-up menu.

Alternately, you can long press on an episode and the same pop-up menu will appear with the Download Episode option at the bottom. If the episode is already downloaded, the option appears as Remove Download instead.

If you're already following a show, you can turn off automatic downloads: Tap the tick icon at the top of a show page and select Turn Off Automatic Downloads. To turn them back on again, tap the down arrow icon that replaced the tick icon, and select Turn On Automatic Downloads.

Apple has signed a deal for a podcast focusing on pop culture icons Siegfried & Roy, reports Deadline. This will be one of Apple's first exclusive, original podcast offerings.

The Siegfried & Roy podcast will be exclusive to the Apple Podcasts app, and it comes as Apple is making a push into original podcast content. Apple recently announced plans to allow podcasters to collect subscription fees, and rumors last year suggested Apple was looking to buy exclusive podcast content to better compete with Spotify.

Apple already has The Zane Lowe Podcast Series and podcasts dedicated to original TV shows like "For All Mankind" but so far Apple's exclusive podcast offerings fall far behind competitors. Apple also recently inked a deal for "The Line," which is a true crime podcast and Apple TV+ series paring. Apple is planning a six-part non-fiction podcast and a four-part limited documentary TV show.

Siegfried & Roy is an audio-only experience and will not have an accompanying TV show. The Siegfried & Roy podcast was created by filmmaker Steven Leckhart, known for "Challenger: The Final Flight," and "What's My Name: Muhammad Ali."

Siegfried & Roy, for those unfamiliar, were a pair of magicians and entertainers who worked with white lions and tigers, putting on a show at the Mirage Resort and Casino in Las Vegas.

In 2003, Roy Horn was attacked by a white tiger named Montecore, with the tiger biting his neck and severing Horn's spine. He was seriously and permanently injured, suffering a stroke and impaired motor and verbal abilities. Horn claimed at the time that Montecore had been trying to save his life dragging him off the stage where he was performing, but other trainers claimed that Horn had mishandled the tiger. The Mirage show was ultimately shut down, and the two retired.

The podcast series will provide an in-depth look at Siegfried & Roy, deconstructing "the illusions they created, the empire they constructed, and what really happened on the night that a tiger ended their reign."

As Epic Games prepares for its upcoming bench trial with Apple, the company has today published depositions that it conducted with several executives, including current iTunes chief Eddy Cue and former software engineering chief Scott Forstall.

As someone involved with the App Store since its inception, Cue was asked many questions about how the store runs, and he was also queried on whether Apple once considered opening iMessage up to Android users. "At the time, I think we could have made a version [of iMessage] on Android that worked with iOS," Cue said. Cue had sent a message to other Apple executives in 2013 to recommend making an Android version of iMessage "an official project."

Others at Apple, such as Phil Schiller, were against adding the feature to Android because there wasn't a clear strategy on how to get Android users to adopt it. "I am concerned the iMessage on Android would simply serve to remove an obstacle to iPhone families giving their kids Android phones," Schiller wrote to Cue and others.

Cue said he did not agree that not having iMessage on Android created an obstacle to families giving their kids ‌iPhone‌ devices, and there's several additional paragraphs of dialogue in that conversation that are then redacted.

‌Epic Games‌ also queried Cue about how Apple arrived at its original 30 percent cut, which was derived from Apple's aim to cut costs from brick and mortar stores that were charging 40 to 50 percent to distribute software. There "wasn't really any kind of ‌App Store‌" to compare to at the time, so Apple had to use other distribution methods as a guideline. "We wanted it to be cheap compared to anything that [app developers] had experienced before.

The lawyers from Epic were aiming to get Cue to explain whether there were any specific discussions around the breakdown of the 30 percent figure, such as SDK costs, but Cue said there wasn't.

We obviously monitor our costs and what are costs are in running Apple at different points and different locations and different pieces of it. So I'm sure there are people that are looking at the cost of doing things around it. As it relates to the 30 percent of like, here's our justification for doing that, no, I don't recall having a conversation like that.

Cue was asked whether Epic's decision to introduce its own direct payment method in the Fortnite app led to any security vulnerabilities on the ‌iPhone‌, a line of questioning that directly relates to Apple's argument that in-app purchases and ‌App Store‌ rules keep the ‌App Store‌ secure. "I don't recall anything," said Cue.

Other topics of conversation included scam apps that have defrauded customers, the possibility of web apps on Apple Arcade, and whether or not payment methods like credit cards or PayPal could introduce hardware vulnerabilities into the ‌iPhone‌, which Cue said wouldn't be possible, along with discussions about redacted emails.

As for Scott Forstall, Epic's questions focused on the development of the original ‌iPhone‌ and its operating system, which in the early days was based on OS X. Epic lawyers wanted to know whether Apple considered having an open software platform when developing iOS, as OS X was a more open platform.

On this particular question, it's a great example where the specificity matters. There were executives at Apple that thought we should never release the ability for third parties to do anything natively compiled applications.

There were executives who thought - and they thought we should just have web applications and - and then websites running with web standards inside of the browser or browsers on the platform, the browser. There were executives who thought we should have a hybrid model of some web technologies and some native abilities. And then there were executives who thought we should provide a platform to enable third parties to build fully native applications on the platforms.

Steve Jobs was the one who felt that iOS should never be opened up to third-party apps, and Forstall said he was the most vocal in calling for third-party app development in the ‌App Store‌. "This is discussions Steve and I had multiple times, heated ways," he said.

Forstall talked about native apps vs. web apps, which is of interest because one of Apple's arguments is that developers can create web apps on ‌iPhone‌. Forstall said that with the original ‌iPhone‌, Apple built its own native apps which were performing better than web apps. "We could tell using [the ‌iPhone‌] that they were not as good as performing as the built-in apps."

Even though there are arguments people can make and did make for using web technologies as the sole way for third parties to build apps, my experience was very clear that those apps would not be as good as native apps, and I wanted to have the best possible apps in the platform we could.

Forstall also covered topics that included jailbreaking, Apple's concern about viruses and malware when allowing third-party apps in the ‌App Store‌, early disputes with Facebook over links to web apps, a time in 2007 when Apple had not yet decided to limit third-party app distribution to the ‌App Store‌, and a mention by Steve Jobs that at its inception, the ‌App Store‌ wasn't designed to make money for Apple.

All of these topics are likely to resurface during the trial, which is set to begin on Monday, May 3. Epic's full deposition report is available below with the complete transcription of comments made by Cue and Forstall, along with testimony from Phillip Shoemaker, Adrian Ong, CK Haun, Eric Friedman, and Ron Okamoto.

With the launch of iOS 14.5 and watchOS 7.4, Apple introduced a feature that's designed to allow people wearing masks to unlock their iPhones with a paired and authenticated Apple Watch, alleviating the need to continually enter a passcode.

Apple has published a support document outlining how the feature works and the requirements that enable it to function. Apple says that the Apple Watch unlocking process is not using Face ID to recognize and authenticate you, so the same facial scan that allows ‌Face ID‌ to unlock your phone isn't happening here.

There are a specific set of requirements that allow the Apple Watch to authenticate your identity for unlocking an iPhone. You'll need an ‌iPhone‌ X or later with iOS 14.5 or later and an Apple Watch Series 3 or later with watchOS 7.4 or later, which must be paired together.

Both WiFi and Bluetooth need to be activated for communication between the ‌iPhone‌ and the Apple Watch, and the Apple Watch needs to have a passcode and wrist detection must be enabled. Unlock with Apple Watch needs to be expressly turned on for it to function, and you can find the feature in Settings > ‌Face ID‌ & Passcode.

For the Apple Watch to authenticate your identity the watch needs to be on your wrist and unlocked, and you need to be wearing a mask that covers both the mouth and the nose, presumably to signal to the ‌iPhone‌ to use the secondary unlocking method rather than ‌Face ID‌.

To unlock the ‌iPhone‌ with the Apple Watch, you need to wake your ‌iPhone‌ by raising it or tapping the screen, and then glance at it to unlock. The requirement to glance at the ‌iPhone‌ is meant to prevent the feature from working when you're not close by your ‌iPhone‌, and though not mentioned by Apple, there definitely seems to also be a proximity requirement because it will tell you if you're not close enough to your phone.

This is a feature that can allow someone else that's not you to unlock your ‌iPhone‌ if they're near you, have your ‌iPhone‌, and are wearing a mask, so enabling it should be done with caution if other people have access to your device and you're worried about security.

It's worth noting that Unlock with Apple Watch only works for unlocking the ‌iPhone‌. It does not verify identity for use with Apple Pay, passwords in Keychain, or password-protected apps, which will require either ‌Face ID‌ or your passcode.

Though not as secure as ‌Face ID‌, Unlock with Apple Watch is a convenient option for those who are tired of having to enter a passcode on their devices while wearing a mask.