Apple apologizes after outcry over slowed iPhones

Apple CEO Tim Cook stands in front of a screen displaying the IPhone 6 during a presentation at Apple headquarters in Cupertino, California October 16, 2014.

By Stephen Nellis

(Reuters) – Facing lawsuits and consumer outrage after it said it slowed older iPhones with flagging batteries, Apple Inc is slashing prices for battery replacements and will change its software to show users whether their phone battery is good.

In a posting on its website Thursday, Apple apologized over its handling of the battery issue and said it would make a number of changes for customers “to recognize their loyalty and to regain the trust of anyone who may have doubted Apple’s intentions.”

Apple made the move to address concerns about the quality and durability of its products at a time when it is charging $999 for its newest flagship model, the iPhone X.

The company said it would cut the price of an out-of-warranty battery replacement from $79 to $29 for an iPhone 6 or later, starting next month. The company also will update its iOS operating system to let users see whether their battery is in poor health and is affecting the phone’s performance.

“We know that some of you feel Apple has let you down,” Apple said in its posting. “We apologize.”

On Dec. 20, Apple acknowledged that iPhone software has the effect of slowing down some phones with battery problems. Apple said the problem was that aging lithium batteries delivered power unevenly, which could cause iPhones to shutdown unexpectedly to protect the delicate circuits inside.

That disclosure played on a common belief among consumers that Apple purposely slows down older phones to encourage customers to buy newer iPhone models. While no credible evidence has ever emerged that Apple engaged in such conduct, the battery disclosure struck a nerve on social media and elsewhere.

Apple on Thursday denied that it has ever done anything to intentionally shorten the life of a product.

At least eight lawsuits have been filed in California, New York and Illinois alleging that the company defrauded users by slowing devices down without warning them. The company also faces a legal complaint in France, where so-called “planned obsolesce” is against the law.

(Reporting by Stephen Nellis; Editing by Andrew Hay)

Apple sees its mobile devices as platform for artificial intelligence

An Apple employee showcases the augmented reality on an iPhone 8 Plus at the Apple Orchard Shop in Singapore September 22, 2017. REUTERS/Edgar Su

By Jess Macy Yu

TAIPEI (Reuters) – Apple Inc  sees its mobile devices as a major platform for artificial intelligence in the future, Chief Operating Officer Jeff Williams said on Monday.

Later this week, Apple is set to begin taking pre-orders for its new smartphone, the iPhone X – which starts at $999 and uses artificial intelligence (AI) features embedded in the company’s latest A11 chips.

The phone promises new facial recognition features such as Face ID that uses a mathematical model of a person’s face to allow the user to sign on to their phones or pay for goods with a steady glance at their phones.

“We think that the frameworks that we’ve got, the ‘neural engines’ we’ve put in the phone, in the watch … we do view that as a huge piece of the future, we believe these frameworks will allow developers to create apps that will do more and more in this space, so we think the phone is a major platform,” Williams said.

He was speaking at top chip manufacturer Taiwan Semiconductor Manufacturing Company’s 30th anniversary celebration in Taipei, which was attended by global tech executives.

Williams said technological innovations, especially involving the cloud and on-device processing, will improve life without sacrificing privacy or security.

“I think we’re at an inflection point, with on-device computing, coupled with the potential of AI, to really change the world,” he said.

He said AI could be used to change the way healthcare is delivered, an industry he sees as “ripe” for change.

Williams said Apple’s integration of artificial intelligence wouldn’t be just limited to mobile phones.

“Some pieces will be done in data centers, some will be on the device, but we are already doing AI in the broader sense of the word, not the ‘machines thinking for themselves’ version of AI,” he said referring to the work of Nvidia Corp, a leader in AI.

Global tech firms such as Facebook, Alphabet Inc, Amazon, and China’s Huawei are spending heavily to develop and offer AI-powered services and products in search of new growth drivers.

Softbank Group Corp, which has significantly invested in artificial intelligence, plans a second Vision Fund that could be about $200 billion in size, the Wall Street Journal reported on Friday.

At Monday’s event, TSMC Chairman Morris Chang described his company’s relationship with Apple as “intense.”

Williams said the relationship started in 2010, the year Apple launched the iPhone 4, with both parties taking on substantial risk.

He credited Chang for TSMC’s “huge” capital investment to ramp up faster than the pace the industry was used to at the time. Apple decided to have 100 percent of its new iPhone and new iPad chips for application processors sourced at TSMC, and TSMC invested $9 billion to bring up its Tainan fab in a record 11 months, he said.

 

(Reporting by Jess Macy Yu, additional reporting by Eric Auchard, Editing by Miyoung Kim and Adrian Croft)