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Showing posts with label Apple. Show all posts
Showing posts with label Apple. Show all posts
Apple to Pay $250 Million to Settle Misleading Advertising Lawsuit Over Its AI Features
Apple has agreed to pay 250 million dollars to settle a class action lawsuit in the United States accusing the company of misleading advertising related to artificial intelligence features promoted for the iPhone 15 and iPhone 16 lineup.
The lawsuit was filed in federal court in San Francisco and alleged that the company created a misleading impression regarding the immediate availability and actual performance of Apple Intelligence, Apple’s artificial intelligence platform.
According to the plaintiffs, Apple’s marketing campaigns encouraged millions of consumers to purchase new devices under the expectation that they would gain access to an advanced AI-powered version of Siri, features that ultimately did not arrive within the promised timeframe.
Users Could Receive Financial Compensation
The settlement still requires preliminary approval from a federal judge, but it includes compensation for customers in the United States who purchased iPhone 16 models or Pro versions of the iPhone 15 between June 10, 2024, and March 29, 2025.
Court documents indicate that eligible customers could receive between 25 and 95 dollars per device, depending on the total number of claims submitted during the settlement process.
Industry reports estimate that the agreement covers approximately 37 million devices sold across the United States, making it one of the most significant out-of-court settlements in Apple’s recent history.
Apple Denies Wrongdoing
Despite the size of the settlement, Apple has not admitted any legal wrongdoing or deceptive practices. The company maintains that since launching Apple Intelligence, it has introduced multiple AI-powered tools and improvements.Among the features highlighted by Apple are real-time translation tools known as Live Translations, along with new visual intelligence capabilities and expanded AI integrations within the iOS ecosystem.
Apple also argues that it continues developing new AI-driven experiences intended to strengthen Siri’s capabilities and compete more aggressively in the rapidly expanding generative AI market.
Apple Faces Growing Pressure in the AI Race
Over the past several years, Apple has faced criticism for moving more slowly than competitors in the development of generative artificial intelligence technologies.
Companies such as Google and Samsung have expanded their lead with devices that integrate advanced AI features, smarter virtual assistants, and productivity-focused automation tools.
Apple officially introduced Apple Intelligence during its 2024 Worldwide Developers Conference (WWDC), unveiling a new generation of features designed to transform Siri and compete with platforms like ChatGPT.
However, several of the most ambitious tools announced during the event experienced major delays, raising concerns among consumers, investors, and technology analysts.
Upcoming WWDC Event Will Be Closely Watched
The legal settlement becomes public only weeks before Apple’s next annual developer conference, scheduled for June 8.Analysts expect the company to unveil a more advanced Siri upgrade and additional AI-powered capabilities aimed at competing directly with the industry’s leading artificial intelligence platforms.
Pressure on Apple continues to grow as global adoption of generative AI tools accelerates, making the future of Apple Intelligence one of the company’s most important strategic priorities.
Apple Unveils iPhone 16 with AI Features, New AirPods and Watch Series 10
Apple (AAPL) unveiled a slate of new products during Monday's "It's Glowtime" event, including the iPhone 16 designed for artificial intelligence (AI) as the company bets on AI as a key driver of new phone sales.
The tech giant's presentation showcased several AI-powered features that will be available on iPhone 16, such as text and image generation, along with questions and commands the revamped Siri will be able to handle.
Apple's Future Powered by AI
Monday's event highlighted some previously announced features like Apple's new Image Playground AI image generator and the ability to create custom emojis with AI, while also debuting a number of new features.
The iPhone 16 will use a new, more powerful version of Siri and the A18 chip to better understand questions and commands, and be able to perform a wider range of tasks like summarizing emails, proofreading or changing the tone of blocks of text, and finding specific photos in user libraries.
The AI features will be offered as a free series of software updates, with Apple Intelligence launching in English next month, and other languages like Chinese and Spanish next year.
A new "camera control" button will also let users take pictures or change zoom or other settings while keeping a hand on the side of the phone, and access AI features like looking up a monument or location by taking a picture of it.
The iPhone 16 and 16 Plus will launch with prices starting at $799 and $899, respectively. The 16 Pro and Pro Max, featuring the largest iPhone displays ever, will start at $999 and $1,199, respectively. All four models, priced at the same point as last year's releases, will launch Sept. 20.
Apple Also Announces New AirPods, Watch Series 10
Apple also announced the Apple Watch Series 10, which features the largest display on an Apple smartwatch yet, launching Sept. 20 starting at $399, and $499 for a cellular-enabled version. The new watches will also come with a new operating system, with features like the Apple translate app's watch debut, improvements to the watch's charging times, and new health features like sleep apnea detection.Apple followed the watch announcement with AirPods 4, new earbuds with updates like head-nodding or shaking responses to notifications from Siri. The new AirPods will also launch Sept. 20 starting at $129, and $179 for the model with increased noise cancellation capabilities. The existing AirPods Pro model will also reduce background noise to protect a user's ears, and be usable as a hearing aid.
Apple shares were little changed, edging 0.2% lower to $220.34 in Monday afternoon trading after the event ended. They've gained over 14% since the start of the year.
Microsoft nearly overtakes Apple as most valuable company
Fueled by strong quarterly growth in its Azure cloud-computing business, Microsoft's shares jumped 4.2% to end at a record $323.17, elevating the software maker's market capitalization to $2.426 trillion, just short of Apple's $2.461 trillion valuation, according to Refinitiv data.
Apple's shares dipped 0.3% ahead of its report due after the bell on Thursday, with investors focused on how the global supply-chain crisis is challenging the company's ability to meet demand for its iPhones.
Microsoft's stock has rallied 45% this year, with pandemic-induced demand for its cloud-based services driving sales. Shares of Apple have climbed 12% in 2021.
Apple's stock market value overtook Microsoft's in 2010 as the iPhone made it the world's premier consumer technology company. The two companies have taken turns as Wall Street's most valuable company in recent years, with Apple holding the title since mid-2020.
In its report late on Tuesday, Microsoft forecast a strong end to the calendar year thanks to its booming cloud business, but it warned that supply-chain woes will continue to dog key units, such as those producing its Surface laptops and Xbox gaming consoles
Analysts on average expect Apple to report September-quarter revenue up 31% to $84.8 billion and adjusted earnings per share of $1.24, according to Refinitiv.
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