Apple unveiled a series of new products Tuesday that showed how
it continues to center its marketing pitch on consumer privacy, at the
potential expense of other companies, while muscling into new markets pioneered
by much smaller competitors.
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In an hourlong infomercial that was streamed from its Silicon
Valley headquarters, Apple showed off a new high-end iPad and an iMac desktop
computer based on new computer processors that Apple makes itself. The company
also said it was redesigning its podcast app, which competes with companies
like
Spotify, to enable creators to charge for their shows. And it revealed the
AirTag, a $29 disc that attaches to key rings or wallets so they can be found
if lost.
But after its product show, Apple made other news that could
have far more significant, industrywide implications. The company said in a
news release that it planned to release highly anticipated iPhone software next
week with a privacy feature that worries digital-advertising companies, most
notably Facebook.
The feature will require apps to get explicit permission from
users before tracking them across other apps. As a result, when opening many
apps next week, owners of iPhones will see pop-up windows that ask them whether
to allow that tracking. Companies that rely on digital advertising are expected
to gather less data about users as people decline the tracking.
Apple and Facebook have been locked in a war of words over the
change, with Facebook arguing that it will hurt the digital advertising that
helps fund free internet services. Apple has said it is merely giving consumers
the right to choose whether to be tracked.
Companies like Facebook often rely on details about users and
their online behavior to show them advertising that is intended to be tailored
to their interests. If Apple’s changes strip the companies of that information,
advertisers could be less willing to spend money with them.
On Tuesday, Apple’s AirTag immediately drew criticism from Tile,
a company that for years has made similar devices for finding lost items. “We
welcome competition, as long as it is fair competition,” said CJ Prober, Tile’s
Chief Executive Officer (CEO). “Unfortunately, given Apple’s well-documented
history of using its platform advantage to unfairly limit competition for its
products, we’re skeptical.”
Tile has accused Apple of anti-competitive practices since Apple
began working on a competing product. Last year, Tile’s general counsel
testified to Congress that, shortly after reports that Apple was working on
similar gadgets surfaced, Apple pulled Tile’s devices from its stores and made
it more difficult for them to work with iPhones.
Tile’s general counsel, along with executives from Apple,
Google, Spotify and the dating company Match Group, is set to testify on
Wednesday at a Senate hearing on Apple’s and Google’s market power and control
over mobile apps.
“We think it is entirely appropriate for Congress to take a
closer look at Apple’s business practices,” Prober said.
Apple has faced scrutiny in recent years for its strict control
over its App Store, including Apple’s practice of forcing apps to use its
payment system, which allows it to collect a commission of up to 30 percent on
many app sales.
That policy has fueled a multibillion-dollar business, but also
brought Apple regulatory headaches, including Wednesday’s hearing and
legislative fights in several states. Next month, Apple is set to face off in a
trial against Epic Games, the maker of Fortnite, which is suing Apple over its
App Store policies.
As part of its announcements Tuesday, Apple said it was
redesigning its podcast app, which offers millions of shows, up from 3,000 when
Apple introduced the service 16 years ago. Starting next month, creators can
sell subscriptions to their podcasts, Apple said. It was unclear if Apple would
take a cut of those sales, but that has been its approach when pushing into new
industries, including in apps, music and news.
The subscription service will put Apple in even more direct
competition with Spotify, which has been working on its own podcast
subscriptions. Spotify has been a leading critic of Apple in recent years. The
music service’s business depends on reaching listeners through iPhones, putting
the company at Apple’s whim. Spotify has filed antitrust complaints against
Apple in Europe and has complained about the company to US regulators.
Apple also showed off a series of slimmer, faster and more
colorful iMacs. The desktop computers, which have 24-inch screens, range in
price from $1,300 to $1,700. Apple also unveiled its new iPad Pro, its
top-of-the-line tablet, with a sharper screen, faster speeds and the ability to
connect to 5G wireless networks. The iPad Pro will cost between $800 and
$1,100.
Apple’s other announcements on Tuesday included an update to its
branded credit card that would allow spouses to build credit together, and
improvements to its Apple TV devices, such as a new remote and faster processor
that will make video play more smoothly.
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