Apple counter-sues Epic -- 1/many. *thread from doc* @Apple@EpicGames
"Although Epic portrays itself as a modern corporate Robin Hood, in reality it is a multi-billion dollar enterprise that simply wants to pay nothing for the tremendous value it derives from the App Store."
Epic 'rakes in billions by taking commissions on game developers’ sales and charging consumers up to $99.99 for bundles of “V-Bucks.”'
"Epic has taken advantage of Apple’s support and services more than any other app developer for the past two years..
Fortnite has used 400+ of Apple’s unique API frameworks and classes (such as Metal), as well as five different versions of Apple’s Software Development Kit (SDK)"
"Each time Epic released a new season of Fortnite, Apple put it in the spotlight, providing free promotion and favorable tweets, ultimately sending over 500m marketing communications ... and even paying for a billboard in Times Square"
"When Apple rejected Epic’s request for a special deal, rather than abide by its long-running contractual agreements pursuant to which it has earned over $600 million, Epic resorted to self-help and subterfuge."
"Unbeknownst to Apple, Epic had been busy enlisting a legion of lawyers, publicists, and technicians to orchestrate a sneak assault on the App Store."
"In keeping with its self-serving narrative, Epic attempts to recast Apple’s conduct as “retaliation.” But the exercise of a contractual right in response to an open and admitted breach is not “retaliation”; it is the very thing to which the parties agreed ex ante."
"Apple is not a monopolist of any relevant market... For devices, platforms, and individual apps. Fortnite users can dance their Floss, ride their sharks, and spend their V-Bucks in no fewer than six different mobile, PC, and game-console platforms."
"That Apple wishes to continue curating its own App Store—rather than outsource the safety and security of Apple’s users to Epic—should come as no surprise, and it ensures that iOS apps meet Apple’s high standards for privacy, security, content, and quality."
"There is nothing anticompetitive about charging a commission for others to use one’s service. Many platforms—including Epic’s own app marketplace and Unreal Engine—do just that"
Ouch: "Epic’s intention is thus straightforward: It seeks free access to the Apple-provided tools that it uses and—worse yet—it wishes to then charge others for access to Apple’s intellectual property and technologies."
"This Court should hold Epic to its contractual promises, award Apple compensatory and punitive damages, and enjoin Epic from engaging in further unfair business practices."
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Microsoft’s Nadella says tech has entered a new era for productivity tools enhanced by AI.
Says we’ve been using AI on autopilot; now we’re making AI the co-pilot.
“We made a conscious design choice to put human agency both at a premium, and at the center of the product.”
“We believe this next generation of AI will unlock a new wave of productivity growth with powerful co pilots designed to remove the drudgery, from our daily tasks and jobs, freeing us to rediscover the joy of creation.” - @satyanadella
MSFT’s head of Office 365 says “your co-pilot for work” will “turn your words into the most powerful productivity tool on the planet,” aiding you in Word, Excel, PowerPoint, Outlook teams and more.
*new story* @Apple has captured Gen Z in the US so thoroughly that American teens fear being electronically ostracized if they don't own an iPhone.
A thread, augmented by me having fun with @midjourney_ai the last week. (Pls note these images are not used in the story!)
Gen Z now makes up 34% of iPhone owners in the US (vs. 10% at Samsung); 76% of iPhone owners are 18-34, per Attain.
Gen Z's preference for iPhone helps explain how Apple's share of the US market grew from 35% in 2019 to 50% in 2022 (as I wrote here: ft.com/content/75891d…)
The popularity of iPhone for Gen Z is a massive step-change.
The @Apple/@Samsung split is reasonably even for older generations, but shifts to 83% vs 10% for Gen Z, according to 451 Research (S&P).
Wider survey from Piper Sandler is even more stark: 87% of teens own an iPhone.
New story *thread*: Apple is taking steps to “decouple” from Alphabet, setting iOS on a course that would cut its alliance with Google Search, Google Maps, and the broader digital advertising world that CEO Tim Cook has called a “data-industrial complex built on surveillance.”
The iPhone maker has held an abiding grudge against the search giant ever since its Android operating system mimicked iOS in the late 2000s. Steve Jobs called Android “a stolen product,” declared “thermonuclear war,” and ousted Google’s then-CEO Eric Schmidt from the Apple board
The noise has died down considerably in the last 13 years, but behind the scenes Apple is still engaged in a “silent war”, say former employees.
The 3-front battle is in Maps, Search, and Advertising.
Another thread on my @FT series covering Apple’s China problem.
Disruptions from Zero-Covid at “iPhone City” are temporary. Far more significant is how the protests reminded the world that Apple increasingly finds itself beholden to America’s biggest geopolitical rival.
1/6
When Tim Cook was doorstepped by a reporter asking questions about China, he kept silent and changed direction. “It was the worst 45 seconds of Cook’s career.”
Many observers think Cook’s silence reflects how Apple’s reliance on China is its its biggest vulnerability
2/6
The operations that Apple orchestrates in China are so complex and massive — including factory hubs the size of western cities — that it is not clear it has any viable options beyond China to overhaul the way it rolls out $316bn worth of iGadgets each year.
Quick thread on my two-part @FT series covering Apple’s biggest conundrum: its China problem.
Apple manufacturers +95% of iPhones, AirPods, Macs and iPads in the country, which under Xi Jinping is increasingly authoritarian and estranged from the west.
1/6
Hardware-software integration has been critical to Apple since its founding, so when PC makers began outsourcing to Asia 40 years ago, Apple did not. But in the mid-90s Apple was nearing bankruptcy…
2/6
Tim Cook, brought in to run worldwide operations, found a hybrid solution: iGadgets would be made in China, but Apple would maintain obsessive control over the machinery, processes, and ingenuity associated with its manufacturing.
Apple plans to ~double its “Ad Platforms” workforce 17 months after it introduced sweeping privacy changes that hobbled @Meta@Snapchat@Twitter
Ad team is ~250ppl, per @linkedin.
On Apple’s careers website, it’s looking to fill 216 such roles, 4X the number in late 2020
Apple’s long-term ambitions are secret, but job ads lay out plans pretty clearly:
An ad for an engineering leader from Aug 24 describes how it wants to “build the most privacy-forward, technologically sophisticated . . . Supply (Marketplace) Platform and Demand Side Platform”.