<ul class="summary-list"><li>Apple will pay between $310 million and $500 million to settle a class-action lawsuit.</li><li>The lawsuit was over "batterygate," a scandal where Apple was accused of decreasing the performance of older phones.</li></ul><p>Do you remember <a href="https://www.businessinsider.com/apple-batterygate-500m-lawsuit-settlement-2017-iphone-intentional-slowdown-2020-3" target="_blank" rel="noopener">"batterygate?"</a> In 2020, lots of iPhone users <a href="https://www.businessinsider.com/apple-batterygate-iphone-scandal-settlement-2020-7" target="_blank" rel="noopener">filed claims</a> as part of an Apple settlement related to the slowdown of older iPhones.</p><p>Years later, payouts are finally going to be sent out.</p><p>Batterygate started when Apple users began accusing the company of purposefully <a href="https://www.businessinsider.com/apple-batterygate-how-older-iphones-slowed-down-and-why-its-a-big-deal-2017-12#q-what-has-apple-said-2" target="_blank" rel="noopener">slowing down older iPhones with aging batteries.</a></p><p>In 2017, people began to catch on to the fact that some <a href="https://www.businessinsider.com/apple-slowing-down-iphones-with-old-batteries-geekbench-2017-12" target="_blank" rel="noopener">performance issues</a> were related to their batteries. After some iPhone owners had their batteries replaced, they noticed that performance-related issues were resolved, according to data from <a href="https://www.geekbench.com/blog/2017/12/iphone-performance-and-battery-age/" target="_blank" rel="noopener nofollow">Geekbench.</a></p><p>Later that year, Apple admitted to throttling the performance of older phones. Apple said it slowed down the impacted phones because, as <a href="https://www.businessinsider.com/apple-explains-why-older-iphones-appear-to-be-slowing-down-2017-12" target="_blank" rel="noopener">ph</a><a href="https://www.businessinsider.com/apple-explains-why-older-iphones-appear-to-be-slowing-down-2017-12" target="_blank" rel="noopener">one batteries</a> get older, there is a risk of the phone suddenly shutting down. It was a major scandal for the company, and resulted in multiple lawsuits that were eventually folded into a class-action lawsuit.</p><p>Rather than continue pouring money into a pricey legal battle, Apple reached a settlement (denying any wrongdoing) and agreed to pay <a href="https://www.smartphoneperformancesettlement.com/" target="_blank" rel="noopener nofollow">$310 - $500 million,</a> depending on the number of claims filed.</p><p>Each person who submitted a claim will see a payment of around $65, <a href="https://www.mercurynews.com/2023/08/11/apple-to-pay-up-to-500-million-to-iphone-users-after-judge-nixes-final-appeal/" target="_blank" rel="noopener nofollow">The Mercury News reported</a>.</p><p>If you were eligible for a payout, you had file a claim before October 6, 2020, meaning it's now too late if you missed the deadline. </p><p>The iPhones affected under the class action lawsuit include the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus, and SE. Only those who experienced a decrease in speed and performance were eligible to file claims, and the phones had to have been owned before 2018.</p><p>An Apple spokesperson didn't immediately respond to Insider's request for comment on the payouts ahead of publication.</p>

Some iPhone owners will soon be getting around $65 from Apple over its 'batterygate' scandal

<ul><li><keyword id="6354427" type="General" weightage="20" keywordseo="apple" source="Orion">Apple</keyword> has been fined in the past for slowing down old iPhones.<br /></li><li>It has since added an option to disable this feature, but some users report this still does not improve the speed of their iPhones.<br /></li><li>Now, changing the <keyword id="6354606" type="General" weightage="20" keywordseo="iphone" source="Orion">iPhone</keyword> region to France reportedly makes old iPhones faster.<br /></li></ul>Apple’s decision to throttle old iPhones and slow them down because of battery wear and tear has been controversial, with the company being fined by France’s competition watchdog for this practice, as well as several US states which led to a <a href="https://www.washingtonpost.com/technology/2020/11/18/apple-fine-battery/">$113 million settlement</a>.<br /><br />Now, a new <a href="https://www.gizchina.com/2021/08/23/old-iphones-become-faster-if-you-change-the-region-to-france/">report</a> suggests that changing the region to France makes old iPhones faster. This suggests that Apple doesn’t throttle iPhones in France, as a response to the country’s competition watchdog’s investigation and subsequent fine.<br /><br />Earlier, Apple had revealed that it slows down old iPhones in order to preserve their battery life, prioritising it over performance. Apple’s critics have argued that this is planned obsolescence – a practice of artificially limiting the useful life of a product in order to push users to purchase a new one.<br /><br />However, the company maintains that this is done to prevent iPhones from rebooting under heavy load.<br /><br />While Apple did not pay any fine for slowing down iPhones in China, it was forced to lower the prices of its replacement batteries.<br /><br />Apple has since added an option called ‘Battery health’ in Settings, allowing users to toggle the option to throttle performance based on the health of the battery. However, some reports suggest that despite this, old iPhones continue to be slowed down.<br /><br />This is where changing the region to France reportedly helps. If you are experiencing slowdowns on your <keyword id="1612965" type="General" weightage="20" keywordseo="old-iPhone" source="Orion">old iPhone</keyword>, here’s how you can change the region to France and see if this helps in speeding up your device.<br /><br /><ul><li>Open Settings and tap on your name.<br /></li><li>Tap Media &amp; Purchases.<br /></li><li>Tap View Account.<br /></li><li>Now, tap Change Country or Region.<br /></li><li>Change the location to France.<br /></li></ul>Follow the on-screen instructions to finish the process, and reboot, once done.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/tech/news/apple-watch-series-7-release-date-price-features-and-everything-we-know-so-far/articleshow/85450261.cms">Apple Watch Series 7 release date, price, features and everything we know so far</a><br /><br /><a href="https://www.businessinsider.in/tech/news/a-group-of-apple-employees-built-a-website-for-colleagues-to-share-stories-of-harassment-and-discrimination/articleshow/85576861.cms">A group of Apple employees built a website for colleagues to share stories of harassment and discrimination</a><br /><br /></strong><a href="https://www.businessinsider.in/tech/news/the-next-iphone-will-have-insane-amounts-of-storage-packed-into-a-familiar-slim-design-heres-what-to-expect-from-apples-next-gen-smartphone-/articleshow/85535337.cms"><strong>The next iPhone will have insane amounts of storage packed into a familiar slim design. Here's what to expect from Apple's next-gen smartphone.</strong></a><br />

Slow iPhone? Changing the region to France reportedly makes old iPhones faster

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58875be4ee14b6c7148b95ef-2219/undefined" border="0" alt="Tim Cook" data-mce-source="Getty/Justin Sullivan" /><p class="source"><span>Getty/Justin Sullivan</span></p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/apple">Apple</a> faces government investigations and a class-action lawsuit over a software update that slowed down some iPhone processors.</li><li>Apple says that the software was designed to improve the user experience and prevent unexpected shutdowns in older phones.</li><li>Now, Apple has set aside some money to pay to resolve these issues, according to a recent company filing. </li></ul><p>As 2017 turned to 2018, Apple faced a swell of consumer anger. </p><p>Users had claimed for years that Apple slowed down their older iPhones through software updates. When one maker of benchmark software <a href="https://www.businessinsider.com/apple-slowing-down-iphones-with-old-batteries-geekbench-2017-12">produced data and analysis</a> that showed that a few notable software updates did seem to slow down the iPhone's processor, criticism exploded.</p><p>Apple said that the processor slowdown was related to aging batteries, and that the processor throttling software was introduced to prevent older iPhones from shutting down unexpectedly. But there was a lot of consumer anger, leading to <a href="https://www.businessinsider.com/apple-iphone-battery-explanation-might-cost-company-in-court-2018-1">class-action lawsuits</a>, and even <a href="https://www.businessinsider.com/apple-responds-to-report-that-us-government-is-investigating-iphone-battery-slowdown-2018-1">investigations</a> from the US Department of Justice and the Securities and Exchange Commission.</p><p>Now, Apple says in a recent SEC filing that it has set aside some money to pay for the litigation as a contingency.</p><p>"Apple believes that its iPhones were not defective, that the performance management feature introduced with iOS updates 10.2.1 and 11.2 was intended to, and did, improve customers' user experience, and that the Company did not make any misleading statements or fail to disclose any material information," Apple said in <a href="https://www.sec.gov/Archives/edgar/data/320193/000032019319000010/a10-qq1201912292018.htm">the 10-Q filing</a>. "The Company has accrued its best estimate for the ultimate resolution of these matters."</p><p>Apple declined to comment when asked by Business Insider the monetary value of that estimate.</p><p>While there are a lot of minor news stories about Apple bugs and issues with its latest products, there are some signs that Apple's battery saga could end up being material to the company's massive bottom line.</p><p>As part of its apology, Apple offered discount battery replacements to some iPhone users, which was pointed to by Apple executives as <a href="https://www.businessinsider.com/apple-blames-weak-iphone-sales-partly-on-battery-replacement-offer-2019-1">one reason for its sales miss</a> during this past holiday season. Apple replaced 11 million batteries during 2018, up from the 1-2 million it would expect to replace during a typical year, <a href="https://daringfireball.net/linked/2019/01/14/iphone-batteries-and-apples-quarterly-miss">according to Apple blogger John Gruber</a>.</p><p>There is also <a href="https://www.courtlistener.com/docket/6431809/in-re-apple-inc-device-performance-litigation/">a class-action lawsuit</a> that is starting to progress, as Apple notes in its filing. While class-action lawsuits like that often take years to work through the courts, previous class-action suits have resulted in <a href="https://www.nytimes.com/2014/11/22/technology/judge-approves-450-million-settlement-in-apple-e-book-case.html">$450 million judgments</a> against the iPhone maker. </p><p>So it's not surprising that Apple is setting aside money to pay for litigation surrounding the processor-throttling update. The filing also noted a lawsuit related to VirtnetX over patents and the battle with Qualcomm as other contingencies. </p><p>Here's the full language from Apple's filing: </p><p style="padding-left: 40px;"><em>iOS Performance Management Cases</em></p><p style="padding-left: 40px;">"Various civil litigation matters have been filed in state and federal courts in the U.S. and in various international jurisdictions alleging violation of consumer protection laws, fraud, computer intrusion and other causes of action related to the Company's performance management feature used in its iPhone operating systems, introduced to certain iPhones in iOS updates 10.2.1 and 11.2. The claims seek monetary damages and other non-monetary relief. On April 5, 2018, several U.S. federal actions were consolidated through a Multidistrict Litigation process into a single action in the U.S. District Court for the Northern District of California. In addition to civil litigation, the Company is also responding to governmental investigations and requests for information relating to the performance management feature. The Company believes that its iPhones were not defective, that the performance management feature introduced with iOS updates 10.2.1 and 11.2 was intended to, and did, improve customers' user experience, and that the Company did not make any misleading statements or fail to disclose any material information. The Company has accrued its best estimate for the ultimate resolution of these matters."</p>     <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/why-your-phone-smartphone-stops-working-when-its-cold-2016-10">The science behind why your phone shuts down when it's cold outside</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/klvoq5zR-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Apple is squirreling away money to pay for lawsuits related to its iPhone 'batterygate' throttling scandal

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/58827756f10a9a51098b9328-2400/ap17007069125538.jpg" alt="Tim Cook" data-mce-source="AP" /><p class="source"><span>AP</span></p></div><p></p></div></div></p><ul><li><strong>Apple made a rare public apology after the recent revelation that the company slowed down older iPhones through a software update.</strong></li><li><strong>Many Apple customers believe the slowdown is a violation of their trust. Apple says it is because of how older batteries work. </strong></li><li><strong>The apology is unsigned. It would mean a lot more to Apple customers if it came from CEO Tim Cook or another top Apple executive. </strong></li></ul><hr /><p> </p><p>Apple is embroiled in one of its most dire scandals in years, as the company was forced to admit that its software updates slow down old iPhones, confirming a long-held theory by iPhone users.</p><p>According to Apple, its software updates can make apps slow to launch, slow down the smoothness of scrolling through an feed, and take other performance hits.</p><p>Apple made<a href="https://www.apple.com/iphone-battery-and-performance/"> a rare public apology</a> on its website on Thursday about the issue, saying the reason for the software slowdown was to protect phones with older batteries, which can suddenly shut down.</p><p><a href="https://www.apple.com/iphone-battery-and-performance/">The public apology</a> is technically detailed, relatively candid, and comes with a year-long discount for replacement iPhone batteries.</p><p>But one thing it's missing is a signature: The apology comes "from Apple," and it's not signed by of its high-paid executives, like Apple CEO Tim Cook.</p><p>An apology like this one, which acknowledges a breach of trust with users, needs to come from a person, not a corporate communications department. There needs to be a human name on the apology, because humans behind the decision ultimately decided not to tell customers. </p><p>To date, no Apple executives have publicly commented on the scandal. Here's one question for them: When Apple's elite "executive team" met to discuss the update that would slow down older iPhones, did anyone bring up the possibility that the move could increase iPhone upgrade rates? </p><p>Making a public apology seems like part of the job responsibility for a CEO. Cook made <a href="http://www.businessinsider.com/apple-is-requiring-tim-cook-to-fly-private-from-now-on-2017-12">over $12 million in 2017</a>, and he flies on private jets furnished by Apple.</p><p>It seems like attaching his name to an apology is the least he can do for Apple users who now feel betrayed.</p><h2>Not the first time </h2><p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Apple" title_caption="One of Steve Jobs' famous letters to customers." class="zoomin" href="https://static-ssl.businessinsider.com/image/5a46750ab0bcd535008b77c9-960/screen shot 2017-12-29 at 120124 pm.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/5a46750ab0bcd535008b77c9-1250/screen shot 2017-12-29 at 120124 pm.png" alt="Thoughts on Flash" data-mce-source="Apple" data-mce-caption="One of Steve Jobs' famous letters to customers." data-link="https://www.apple.com/hotnews/thoughts-on-flash/" /></a><p class="source"><span><a href="https://www.apple.com/hotnews/thoughts-on-flash/">Apple</a></span></p><p class="caption">One of Steve Jobs' famous letters to customers.</p></div><p></p></div></div>Cook has signed letters on Apple's website before, so it wouldn't be unprecedented. </p><p>In February 2016, he <a href="https://www.apple.com/customer-letter/">posted</a> "A Message to Our Customers" on Apple's website. It's signed "Tim Cook." He felt that Apple users needed to hear from him why the company was resisting an order from the FBI to help it break the encryption on an iPhone used by a terrorist in the San Bernardino attacks. </p><p>It was a fair use of Apple's megaphone to communicate its position on an issue that directly affects it. On the other hand, most Apple users weren't directly impacted by the San Bernardino case - but there are millions of people with older iPhones now slowing down that may have been tempted to buy a new iPhone instead of replacing its battery, as Apple recommended in its apology earlier this week. </p><p>When Apple took away Google Maps on the iPhone and replaced it with the inferior Apple Maps for purely business reasons, not user experience reasons, <a href="http://www.businessinsider.com/tim-cook-apologizes-for-apple-maps-2012-9">Cook signed that letter</a> apologizing for the fiasco. Although it's not on the Apple website anymore, you can still see the URL: "<a href="https://www.apple.com/letter-from-tim-cook-on-maps/">letter-from-tim-cook-on-maps</a>."</p><p>Apple founder and late CEO Steve Jobs was also famous for writing lucid, jargon-free messages to Apple customers, which may have contributed to the closeness many early Apple users felt to the company.</p><p>Take one of his last letters, "<a href="https://www.apple.com/hotnews/thoughts-on-flash/">Thoughts on Flash</a>," which is still on Apple's website. Users at the time were upset that iPhones weren't going to run Adobe Flash, which powered many interactive websites at the time.</p><p>His writing is clear, direct, and honest. He acknowledges there are downsides to his decision, like the fact that iPhone users couldn't play Flash games. But ultimately, Jobs made a case that Flash didn't belong on mobile devices, an argument that's only seemed stronger in retrospect.</p><p>Compare that to Apple's <a href="http://www.businessinsider.com/apple-explains-why-older-iphones-appear-to-be-slowing-down-2017-12">first statement on the slowdown issue</a>, issued by a spokesperson, which has a lot of weasel words like the phrase "smooth out instantaneous peaks" for what it was really doing - throttling the top speed of older devices. </p><p>When a millionaire executive takes responsibility for a piece of communications to its customers, you get more honest and direct writing. Instead, Apple's leadership is hiding behind its brand. </p><h2>'There's been a lot of misunderstanding about this issue'</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a44b64b5124c90809b254b4-800/lg-display-says-did-not-supply-oled-panels-for-apples-iphone-x-this-year.jpg" alt="FILE PHOTO: An iPhone X is displayed on a table at an Apple store in New York, U.S., November 3, 2017. REUTERS/Lucas Jackson/File Photo" data-mce-source="Thomson Reuters" data-mce-caption="FILE PHOTO: An iPhone X is displayed on a table at an Apple store in New York" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">Apple's new $1000 iPhone X is fast - but for how long?</p></div><p></p></div></div>According to Apple, the reason its newer software updates slow down older iPhones is directly related to battery issues, and any outrage from customers is because they don't understand the issue. </p><p>"We know that some of you feel Apple has let you down. We apologize," someone at Apple wrote in its apology. "There's been a lot of misunderstanding about this issue, so we would like to clarify and let you know about some changes we're making."</p><p>According to Apple, the misunderstanding relates to changes Apple made in early 2017 to prevent unexpected device shutdowns. Batteries get worse over time, and after awhile, some older iPhones were randomly shutting down with 30% battery life left. </p><p>Here's a bit of perspective, though: Apple wouldn't have addressed the shutdown issue if it wasn't from pressure from the Chinese government. In late 2016, a Chinese consumer watchdog called the China Consumers Association started making noise about Apple's random shutdown issue.</p><p>Eventually, Apple said - again unsigned - that the battery issue only affected a "<a href="http://www.businessinsider.com/iphone-6-s-apple-battery-replacements-shutdown-bug-2016-11?r=UK&amp;IR=T">very small number</a>" of iPhones manufactured between September and October 2015, and offered battery replacements.</p><p>In fact, when Apple gave <a href="http://www.businessinsider.com/apple-statement-on-iphone-shutdown-issue-2016-12">additional details about this issue</a>, it was posted <a href="https://support.apple.com/zh-cn/HT207414">on Apple's Chinese website</a>. But the Chinese consumer watchdog <a href="http://www.zdnet.com/article/chinese-consumer-watchdog-demands-apple-to-replace-all-faulty-batteries/">continued to press the issue</a>, and asked for Apple to replace all faulty batteries. </p><p>Apple eventually made the software fix that slowed down phones with older batteries in early 2017. It didn't even tell customers that it had made the tweak, again, in an <a href="http://www.businessinsider.com/ios-1021-fixes-apple-iphone-shutdown-bug-2017-2">unsigned comment</a> from an Apple spokesperson. </p><p>Part of the reason why so many Apple customers feel betrayed by the revelations of the past two weeks, even going to far as to <a href="https://9to5mac.com/2017/12/29/apple-slowing-iphones-class-action-lawsuits/">start over 15 lawsuits</a>, is that it feels like Apple continues to hide things. Apple's traditional approach to public relations is only making it worse, and has made this entire narrative unclear dating back to 2016. </p><p>I personally believe Apple's explanation - there are difficult choices that need to be made when batteries get old, and Apple chose one that would optimize for as few shutdowns as possible. I think a lot more Apple customers would buy that explanation, too, if they heard it coming from Tim Cook. </p><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://read.bi/next-smartphone"><img src="https://media-bii.businessinsider.com/images/5a280fcaf914c360018b8485-320-180.jpg" style="margin-right:15px;width:150px;float:left !important;" /></a><strong>EXCLUSIVE FREE SLIDE DECK:</strong><br>The Next Smartphone by the BI Intelligence Research Team.<br><strong><a href="http://read.bi/next-smartphone">Get the Slide Deck Now »</a></strong></br></br></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/why-boeing-747-front-hump-2016-11">Here's why Boeing 747s have a giant hump in the front</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/x2Cqz9BA-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Tim Cook needs to take responsibility for Apple's battery scandal

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a79f6de136ec53f008b46d3-2400/rtss7y3.jpg" alt="Tim Cook" data-mce-source="REUTERS/Toru Hanai" data-mce-caption="Apple CEO Tim Cook."><p class="source"><span>REUTERS/Toru Hanai</span></p><p class="caption">Apple CEO Tim Cook.</p></img></div><p></p></div></div><ul><li><strong>Apple responded to Senate questions about an extremely controversial software update that slowed down older iPhones.&#xa0;</strong></li><li><strong>In the letter, Apple says it is "exploring" giving a rebate to people who bought battery replacements at full price.</strong></li><li><strong>It also provides a detailed timeline of how it told customers about the software update.&#xa0;</strong></li></ul><hr><p>Apple provided additional details about its practice of slowing down certain older iPhones in a letter to Senate lawmakers released on Tuesday.&#xa0;</p><p>In the letter, Apple confirmed that the controverisal power management feature at the heart of the issue was released to iPhones in January - and yet, Apple confirms that it did&#xa0;<a href="http://fortune.com/2017/02/24/apple-iphone-6-battery-problem-2/">not publicly acknowledge the change&#xa0;</a>until a month later, on February 23, 2017.&#xa0;</p><p>Apple also says in the letter that it is "exploring" the possibility of giving money back to those customers who paid the full price of $79 for a replacement battery. In the wake of the battery scandal, Apple lowered the price for an iPhone battery replacement to $29. While the move was welcomed, it disappointed customers who paid the original price.</p><p>The letter, signed by Apple VP of public policy Cynthia Hogan, is dated February 2. It was sent in response to a January letter from the Senate Committee on Commerce, Science, and Transportation.&#xa0;</p><p><a href="http://www.businessinsider.com/apple-ceo-tim-cook-talks-publicly-about-on-iphone-batterygate-2018-1">Apple has been under intense fire</a> for a software update that slows down the CPU speed on certain iPhone models when their batteries wear down.&#xa0;</p><p>The company says that the reason for the software update is to prevent unexpected shutdowns when a battery cannot provide enough current for the iPhone's CPU.&#xa0;</p><p>But there is a lot of consumer anger around the software feature, particularly because it seems to confirm a long-time conspiracy theory that Apple slows down old iPhones to get people to upgrade to newer models.&#xa0;</p><p>"Apple's recent actions related to performance of iPhones with older batteries were based on providing our customers with the best experience," Hogan wrote.&#xa0;</p><p>"As we said publicly, we have never - and would never - do anything to intentionally shorten the life of any Apple product or degrade the user experience to drive customer upgrades," she continued.&#xa0;</p><h2>How Apple notified its customers&#xa0;</h2><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a78212e24d505691b8b4c58-1043/screen%20shot%202018-02-05%20at%20091644.png" alt="Girl iPhone X" data-mce-source="Tomohiro Ohsumi/Getty"><p class="source"><span>Tomohiro Ohsumi/Getty</span></p></img></div><p></p></div></div>When asked about the scandal on television last month, Apple CEO Tim Cook said that customers were told about the power management feature at the time.&#xa0;<p><span>"When we did put [the software update] out, we did say what it was, but I don't think a lot of people were paying attention," Cook told ABC News. "And maybe we should have been clearer, as well."</span></p><p><span>But in the timeline provided to the Senate, Apple acknowledges that the power management feature had been rolling out to customer iPhones for a month before it was added to the update's release notes or disclosed to the press.&#xa0;</span></p><p><span>"We first delivered this power management feature to iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, and iPhone SE as part of iOS 10.2.1, in January 2017," Hogan wrote.</span></p><p><span>"Once we verified that the feature was effective in avoiding unexpected shutdowns, we updated the iOS 10.2.1 ReadMe notes in February, 2017. Specifically, the iOS 10.2.1 ReadMe notes said that this update 'also improves power management during peak workloads to avoid unexpected shutdowns on iPhone," the Apple VP continued, also noting a press statement provided on Febuary 23 to several publications including Business Insider.&#xa0;</span></p><p>Republican Senator John Thune, who chairs the Senate Commitee on Commerce, Science, and Transportation, said in a statement that Apple has acknowledged that its initial disclosures of the software update "came up short."</p><p>"I appreciate Apple's response to my inquiry and the company's ongoing discussions with the committee," Thune said. "In those conversations, Apple has acknowledged that its initial disclosures came up short."</p><p>"Apple has also promised the committee some follow-up information, including an answer about additional steps it may take to address customers who purchased a new battery at full price," he continued.&#xa0;</p><h2><span>What's next</span></h2><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59f39296bcf93d46628b4d05-1024/gettyimages-863179486.jpg" alt="Apple Store" data-mce-source="Getty"><p class="source"><span>Getty</span></p></img></div><p></p></div></div>Apple said in its letter that the CPU-slowing feature is not needed in new iPhones, including the iPhone 8 and iPhone X, because of "hardware updates that allow a more advanced performance management system."</span></p><p><span>So newer iPhones should not suffer the same battery-related sluggishness that affects iPhones released between 2014 and 2017.&#xa0;</span></p><p><span>Apple also said on Tuesday that a future software update will give users metrics on how well their battery works, as well as the option to turn the power management feature off.&#xa0;</span><span>&#xa0;</span></p><p><span>Apple also says that its users were not forced to download the original update.&#xa0;</span><span>"All of our software updates are optional and the customer decides whether to update or not," Hogan wrote. However, Apple says in its statement that&#xa0;over 50% percent of active iPhones had installed the update on their phones by the time it disclosed the throttling.</span></p><p><span>A House committee also questioned Apple about the battery-related slowdown, and the company faces over 45 class-action lawsuits about the software update.&#xa0;</span><span>Apple also faces investigations from <a href="http://www.businessinsider.com/italian-antitrust-agcm-investigation-apple-samsung-slow-phones-2018-1">several international bodies</a> over how it disclosed the software update as well.</span></p><p><span>Apple didn't immediately respond to a request for comment.&#xa0;</span></p><h2>Read Apple's entire letter below:&#xa0;</h2><p>&#xa0;</p><div><p style=" margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block;">   <a title="View Apple Response to SCC Feb 2 2018 on Scribd" href="https://www.scribd.com/document/370897719/Apple-Response-to-SCC-Feb-2-2018#from_embed" style="text-decoration: underline;">Apple Response to SCC Feb 2 2018</a> by <a title="View Kif Leswing's profile on Scribd" href="https://www.scribd.com/user/224805620/Kif-Leswing#from_embed" style="text-decoration: underline;">Kif Leswing</a> on Scribd</p><iframe class="scribd_iframe_embed" title="Apple Response to SCC Feb 2 2018" src="https://www.scribd.com/embeds/370897719/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-Ix5kaL0fmO0Cmnerd6PB&amp;show_recommendations=true" data-auto-height="false" data-aspect-ratio="0.7729220222793488" scrolling="no" id="doc_5403" width="100%" height="600" frameborder="0"></iframe></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/elon-musks-boring-company-selling-500-flamethrowers-tesla-musk-2018-1">Elon Musk's The Boring Company sold out of these $500 flamethrowers</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/5bVMZdeq-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div></hr>

Apple says it told customers it was slowing their iPhones from the beginning - but it just told Congress a different story

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a4565764aa6b5c7008b757a-2219/rtx3kx4j.jpg" alt="Tim Cook" data-mce-source="Reuters" data-mce-caption="Apple CEO Tim Cook bows at the opening ceremony of the fourth World Internet Conference in Wuzhen"><p class="source"><span>Reuters</span></p><p class="caption">Apple CEO Tim Cook bows at the opening ceremony of the fourth World Internet Conference in Wuzhen</p></img></div><p></p></div></div><ul><li><strong>Apple CEO Tim Cook on Wednesday made his first public comments on last year's iPhone battery scandal, where the company admitted that it was slowing down some devices with older batteries.</strong></li><li><strong>Apple had informed customers of the practice before it became a controversy, but they weren't paying attention, Cook said. </strong></li><li><strong>Still, Cook apologized, saying Apple could have explained more clearly what it was doing. </strong></li><li><strong>Cook also commented on Apple's announcement that it plans to hire 20,000 new workers and open a second campus, saying that only some of its new investments are due to the tax law passed last month.</strong></li></ul><hr><p><br>From Tim Cook's point of view, Apple customers shouldn't really have been surprised that the company was slowing down iPhones with older batteries, because the company had already told them it was doing so.&#xa0;</br></p><p>Cook addressed the battery controversy publicly for the first time Wednesday in a wide-ranging appearance on ABC News. Apple introduced the slowdown via software updates and has said its motive was to prevent phones from unexpectedly shutting down. Although Cook said Apple had been transparent, he apologized if anyone thought the company had ulterior motives for slowing phones and acknowledged that Apple could have done a better job explaining what it was doing.</p><p>"When we did put [the software update] out, we did say what it was, but I don't think a lot of people were paying attention," Cook told ABC News. "And maybe we should have been clearer, as well."&#xa0;</p><p>Apple acknowledged last month that it was throttling some iPhones to prevent them from turning off prematurely due to weakened batteries. The acknowledgement has drawn public criticism and even scrutiny from public officials.</p><p>The disclosure to which Cook apparently was referring was the <a href="http://www.businessinsider.com/ios-1021-fixes-apple-iphone-shutdown-bug-2017-2">release notes of the operating system update in question</a>, which Apple released early last year. In those notes, the company said it was making "improvements to reduce occurrences of unexpected shutdowns that a small number of users were experiencing with their iPhone."</p><p>When it acknowledged the slowdown last month, Apple explained that the batteries in some phones can no longer meet their peak power needs thanks to their age or repeated use. Apple rejiggered its operating system to slow down phones with these older, weaker batteries so that they don't tax them and force a shut down. In response to the controversy, the company has offered to replace users' batteries at a reduced price.</p><p>When the news broke that Apple was slowing down older phones, <a href="http://www.businessinsider.com/apple-battery-throttling-gives-customers-reason-to-distrust-2017-12">some Apple fans charged that the company was doing it</a> to get them to upgrade to newer iPhones. But Apple didn't have "some other kind of motivation" for slowing down older devices, Cook said. Still, he said, Apple wanted to "deeply apologize" if anyone thought that was the case.</p><p>Cook also discussed Apple's announcement Wednesday that it is paying $38 billion on its overseas cash and <a href="http://www.businessinsider.com/apple-building-new-campus-hiring-20000-new-employees-2018-1">plans to hire 20,000 workers and open a new campus</a>. The decision to hire so many new workers was only partially spurred by the tax law Congress passed and President Trump signed last month, he said.&#xa0;</p><p>"Let me be clear, there are large parts of this that are a result of the tax reform, and large parts of this that we would have done in any situation, Cook said.</p><p>Earlier on Wednesday afternoon, <a href="https://twitter.com/realDonaldTrump/status/953771038114045954">President Trump tweeted his personal appreciation of Apple</a> for its announced plans, asserting that they were all "a result of TAX CUTS."</p><p>Here's the full Cook interview, courtesy of ABC News:</p><div><iframe src="https://abcnews.go.com/video/embed?id=52419235" width="640" height="360" scrolling="no" style="border:none;"></iframe><br><a href="http://abcnews.go.com/">ABC Breaking News</a>  <a href="http://abcnews.go.com/Video">Latest News Videos</a></br></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/apple-stock-price-iphone-x-cycle-could-send-shares-tumbling-2017-12">The end of the iPhone X cycle could send Apple's stock tumbling</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/84XOCvwW-xjRU7l6Z.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div></hr>

Tim Cook says Apple told users it was slowing their iPhones, but adds, 'I don't think a lot of people were paying attention'

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a457e7fb0bcd51d198b745d-1900/ap773022439020.jpg" alt="TimCook2016" data-mce-source="AP" data-link="http://www.apimages.com/metadata/Index/Apple-iPhone-SE/b488d8cee2574364b97b2424ac119d62/12/0" /><p class="source"><span><a href="http://www.apimages.com/metadata/Index/Apple-iPhone-SE/b488d8cee2574364b97b2424ac119d62/12/0">AP</a></span></p></div><p></p></div></div></p><ul><li><strong>Apple apologized on Thursday for slowing down iPhones with older batteries. </strong></li><li><strong>The apology is extraordinary: Apple isn't apologizing for a hardware glitch or a software error; it's apologizing for a choice it consciously made.</strong></li><li><strong>Apple is adding new features to iOS to tell if your battery is healthy, which it should have had since the beginning. </strong></li><li><strong>It might be the most far-reaching apology Apple has had to make, and could result in a new way for the company to do business.</strong></li></ul><hr /><p><br />Apple's <a href="http://www.businessinsider.com/apple-apologizes-for-iphone-slowdowns-2017-12">apology on Thursday</a> was an extraordinary move for the company.</p><p>The iPhone maker just doesn't say, "I'm sorry," very often, so any apology at all is unusual. But even by those standards, the statement it issued regarding the slowing of iPhones with older batteries was an uncommon one - and it could have important implications.</p><p>Apple isn't apologizing for a hardware flaw, as it did with the <a href="http://www.telegraph.co.uk/technology/apple/7895612/Apples-Steve-Jobs-admits-we-are-not-perfect.html">Antennagate</a> controversy that plagued the iPhone 4. And it's not apologizing for lackluster software, as <a href="http://www.businessinsider.com/tim-cook-apologizes-for-apple-maps-2012-9">it did in 2012</a> when the launch of Apple Maps was a fiasco.</p><p>No, Apple is apologizing for something it did intentionally without telling customers about it. What Apple is apologizing for isn't a bug; it's a feature. </p><p>Now that it's been caught, Apple has basically been cornered into making the consumer-friendly moves it should have made in the first place. For the next 12 months, it will replace the batteries in customers' iPhones for $29 each, instead of the previous charge of $79. And its iOS operating system will get new features that will allow users to monitor the health of their batteries. </p><p>But more importanty that those particulars, the apology could fundamentally change a key piece of how Apple does business. </p><h2>iPhone 'glitches' could have been fixed by swapping the battery</h2><p>Many iPhone owners have upgraded their device because their older phone had gotten slow and buggy. Now, we know that in at least some cases - at least in the last year - merely swapping the battery could have fixed the problem, rendering it unnecessary to buy a new phone.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a457f084aa6b526008b7574-2400/gettyimages-102938126 1.jpg" alt="apple antennagate steve jobs 2010" data-mce-source="David Paul Morris/Getty Images" /><p class="source"><span>David Paul Morris/Getty Images</span></p><p class="caption">Steve Jobs apologizes for Antennagate in 2010.</p></div><p></p></div></div></p><p>Did Apple purposely keep the battery performance slowdown a secret to drive sales? Apple says no, that it was just trying to prevent phones from shutting down. You can read <a href="https://www.apple.com/iphone-battery-and-performance/">its apology</a> and decide whether that's credible. Either way, what matters is that Apple knew what it was doing and users didn't.</p><p>Now, having apologized, Apple is committed to giving users the information they need to decide whether to upgrade their phone or whether they can just get by with replacing their battery. I know at least one iPhone user who - after Apple's statement - now intends to swap batteries rather than buying a new device. </p><h2>This apology will be felt for years to come</h2><p>This incident - and Apple's response to it - stands apart from past scandals. Antennagate - which involved the iPhone 4's antenna losing signal strength when the phone was gripped a certain way - faded away after Apple offered customers with a free plastic shell for the phone that was supposed to address the problem and after it fixed the design flaw on the next model. Meanwhile, in response to the Maps controversy, Apple has slowly but steadily improved its navigation app so that it's no longer a huge embarrassment and is no longer the focus of customer ire.</p><p>But the implications of Apple's decision to add a battery monitoring feature to iOS are likely to endure. This information will be available on iPhones and iPads, for both current models and, presumably, future ones. Every up-to-date iPhone will carry the result of this apology from Apple for years to come. Apple can't back down - it's already essentially admitted that it made a mistake.</p><p>And yet, this whole battery-slowdown snafu could have a silver lining for the company. Assuming the data the battery monitoring feature shares is helpful and that the battery replacement program goes off without a hitch, Apple customers will be better informed and have better-functioning iPhones. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a4580214aa6b51d008b765e-2400/gettyimages-146177705.jpg" alt="scott forstall apple maps" data-mce-source="Justin Sullivan/Getty Images" data-mce-caption="Former Apple Senior VP Scott Forstall introduces Apple Maps in 2012. Apple Maps would go on to be a fiasco that Apple CEO Tim Cook would apologize for, with Forstall departing Apple soon after." /><p class="source"><span>Justin Sullivan/Getty Images</span></p><p class="caption">Former Apple Senior VP Scott Forstall introduces Apple Maps in 2012. Apple Maps would go on to be a fiasco that Apple CEO Tim Cook would apologize for, with Forstall departing Apple soon after.</p></div><p></p></div></div></p><p>Sure, Apple likely lost some goodwill. But the end result of previous fiascos show Apple has a way of bouncing back. Maybe this will serve as a positive lesson to Apple about the value of openness and transparency - things it has long lacked.</p><p>Or, <a href="http://www.businessinsider.com/live-apple-iphone-4-antennagate-press-conference-2010-7">as Steve Jobs put it when he apologized for Antennagate</a>: "So we do all this because we love our users. And when we fall short - which we do sometimes - we try harder. We pick ourselves up, we figure out what's wrong, and we try harder. And when we succeed, they reward us by staying our users, and that makes it all worth it."</p> <p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://read.bi/next-smartphone"><img src="https://media-bii.businessinsider.com/images/5a280fcaf914c360018b8485-320-180.jpg" style="margin-right:15px;width:150px;float:left !important;" /></a><strong>EXCLUSIVE FREE SLIDE DECK:</strong><br>The Next Smartphone by the BI Intelligence Research Team.<br><strong><a href="http://read.bi/next-smartphone">Get the Slide Deck Now »</a></strong></br></br></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/apple-stock-price-iphone-x-cycle-could-send-shares-tumbling-2017-12">The end of the iPhone X cycle could send Apple's stock tumbling</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/84XOCvwW-xjRU7l6Z.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Apple's battery apology could be its most important ever

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c215a11bd7730179308eaa7-1647/screen shot 2018-12-24 at 21017 pm.png" border="0" alt="Dan Morgan, a senior portfolio manager at Synovus Trust, in an appearance on " data-mce-source="Bloomberg/YouTube" data-mce-caption="Dan Morgan, senior portfolio manager at Synovus Trust" /><p class="source"><span>Bloomberg/YouTube</span></p><p class="caption">Dan Morgan, senior portfolio manager at Synovus Trust</p></div><p></p></div></div></p><ul class="summary-list"><li>The stock markets have tanked lately, and tech stocks have been hit particularly hard.</li><li>Not long ago, betting on the biggest tech companies was a winning strategy, but no more.</li><li>Going into next year, investors are going to have to be more selective about their tech bets, said Dan Morgan, a longtime tech backer.</li><li>Morgan's advice: Bet on the cloud.</li></ul><p>With the markets in turmoil, shedding loads of value seemingly by the day across the board, it's no longer a sure thing to bet on the tech sector or even its most prominent companies.</p><p>It used to be that investors could put some money in the famous FAANGs - Facebook, Apple, Amazon, Netflix, and Google parent company Alphabet - and be assured of doing well. But Apple and Google's stocks are down for the year, and Facebook's has fallen off a cliff. While both Amazon and Netflix's shares are still up for the year, they're way off their highs.</p><p><em><strong>Read this:</strong> <a href="https://www.businessinsider.com/stocks-look-set-to-rally-market-baffled-by-mnuchin-call-2018-12">Dow drops 640 points for the worst Christmas Eve trading day on record</a></em></p><p>What's more, Wall Street analysts are forecasting that the technology sector's profit growth rate will slow dramatically next year after being boosted by President Donald Trump's tax cut this year, said Dan Morgan, a long-time tech investor with Synovus.</p><p>Going into 2019, "you just have to be very discerning in the tech sector," said Morgan, a portfolio manager at Synovus Trust. He continued: "You have to do your homework and zero in on some of [the] trends."</p><p>So what's an investor to do? What are the big trends to watch?</p><p>Many tech sectors are looking uncertain right now, said Morgan. Although he's not predicting a recession next year, he does think economic growth will slow, and that will hit some areas harder than others.</p><p>The consumer sector in particular looks shaky right now, because many of the big companies face other obstacles in addition to a potential economic slowdown, he said.</p><p>Apple's stock, for example, is highly dependent on its ability to sell iPhones, and those <a href="https://www.businessinsider.com/apple-iphone-xr-weak-sales-revenue-2018-12">sales have started to decline</a>, he noted. Google and Facebook's business models, built around collecting highly personal information from consumers, have come under increasing scrutiny of late amid a series of privacy and other scandals.</p><p>Netflix and Amazon's stocks and businesses have held up, but both look to be the exceptions in the consumer technology sector that prove the rule, he said.</p><p>So Morgan's advice is to look to the cloud.</p><p>Spending on cloud services is growing at a rapid rate as businesses of all sizes increasingly shift their technology spending to them and away from their own data centers, Morgan said. The industry will soon see a $10 billion windfall from the US Defense Department, which is planning to move some of its own computing infrastructure to the cloud as part of its <a href="https://www.businessinsider.com/heres-why-amazon-is-heavily-favored-to-win-the-10-billion-jedi-contract-2018-10">Joint Enterprise Defense Infrastructure (JEDI) program</a>, he noted.</p><p>"That's an area that's still very strong," he said.</p><p>In fact, he thinks the prospects for the area are so good, his theme or 2019 is "roll into the cloud."</p><p><strong>With that in mind, here are Morgan's top picks in tech going into 2019:</strong></p>

A long-time investor shares his 3 picks for tech stocks to bet on in these tough times for the market

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b158db31ae6624c008b46e3-1516/screen shot 2018-06-04 at 120539 pm.png" border="0" alt="apple wwdc 2018, mac os" data-mce-source="Screenshot" /><p class="source"><span>Screenshot</span></p><p class="caption">At Apple's WWDC annual developer conference this week, Craig Federighi, the company's senior vice president of software engineering, answers the question of whether the iPhone maker plans to merge its iOS mobile operating system with its desktop operating system, macOS.</p></div><p></p></div></div></p><ul><li><strong>It is a time of great tech stagnation, in part due to the scandals that have rocked Silicon Valley over the last year. </strong></li><li><strong>Part of the stagnation, too, is that current technology is stalling out, and the next wave just isn't ready yet.</strong></li><li><strong>After a decade-plus of the tech industry causing near-constant disruption and turmoil, the lull is offering the world a much-needed break to consider how technology is affecting society and to try to figure out what to do about it.<br /></strong></li></ul><hr /><p><br />Apple's <a href="http://www.businessinsider.com/apple-wwdc-announcements-highlights-summary-2018-6">WWDC developer conference this week</a> marked the conclusion of the period each year when some of the biggest technology companies lay out their agendas for the future of their platforms.  </p><p>Compared with past years, the message from Silicon Valley was far more muted this time around. Last year, for example, Facebook, Google, Microsoft, and Apple were all focused on the next big things in technology, each in its own way <a href="http://www.businessinsider.com/apple-augmented-reality-versus-google-facebook-amazon-2017-6">laying the foundation for the inevitable death of the smartphone</a>.</p><p>This year, by contrast, the companies focused on important but decidedly less flashy topics including security, privacy, and their responsibility to their users and society.</p><p>There are a variety of reasons for the tech giants' reduced ambition. Facebook, Google, and Apple each spent much of the last 12 months in various states of crisis and are now trying to patch things up. Growth in the markets for the technology products that led to the rise of the current behemoths is slowing down to a crawl. And the next generation of technology gadgets and services isn't ready for prime time yet.</p><p>That may sound depressing and disappointing. After all, much of the excitement surrounding the tech industry stems from the bold visions of the future it often offers. But from where I'm standing, this lull is a good thing for the industry and the world.</p><p>Technologies under development right now could lead to some potentially terrifying changes. This boring period in the industry gives us the time and the attention to hold the tough conversations we need to have about where the industry and society are heading.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59baebce38d20d21008b64c6-2400/gettyimages-846198992.jpg" border="0" alt="iPhone X iPhone 8" data-mce-source="Justin Sullivan/Getty" /><p class="source"><span>Justin Sullivan/Getty</span></p><p class="caption">Growth in  the smartphone market is flattening out, despite the continued parade of new Apple iPhones.</p></div><p></p></div></div></p><p>It's clear from the past year's scandals in the industry that those conversations are overdue. Because there's growing concern about the tech industry's role in society. </p><p>Facebook was caught up in the <a href="http://www.businessinsider.com/report-cambridge-analytica-to-shut-down-2018-5">Cambridge Analytica scandal</a>, where as many as 87 million people had their data used improperly, and faced continuing fallout over its role in distributing Russian propaganda during the 2016 election. Google and its YouTube service saw criticism over their <a href="http://www.businessinsider.com/conspiracy-theories-signal-a-big-problem-for-youtube-and-facebook-2018-3">role in spreading hoaxes and conspiracy theories</a>. And Apple dealt with a storm of criticism over <a href="http://www.businessinsider.com/apple-batterygate-how-older-iphones-slowed-down-and-why-its-a-big-deal-2017-12">Batterygate</a>, its belated admission that it slowed down some iPhones with older batteries without informing users.</p><h2><strong>The future is slowing down</strong></h2><p>This concern is coming amid a transition time for the industry.</p><p>The first few slides of Kleiner Perkins investor <a href="http://www.businessinsider.com/mary-meeker-internet-trends-2018-full-slide-deck-2018-5">Mary Meeker's newest State of the Internet report</a> tell you everything you need to know, which is that overall, the growth in many of the most important tech products and services is flat-lining. Global smartphone shipment growth? Almost precisely flat. Global internet user growth? Flattening out, with a relatively meager 12% year-over-year-growth.</p><p>Additionally, both the <a href="https://www.techspot.com/news/72730-gartner-pc-market-continues-decline-but-idc-reports.html">PC market</a> and the tablet market are declining.</p><p>Oh, sure, there are some bright spots in tech. Meeker's report estimated that the installed base for the Amazon Echo line of smart speakers hit 30 million users by the end of 2017. Other technologies, including streaming video, smartwatches, and cryptocurrencies, are also growing in fits and starts.</p><p>But as big a number as it is, 30 million Echo users is a drop in the bucket when you compare it to the more than a billion devices in use running Apple's iOS software, and the more than two billion gadgets in use that run Google's Android.</p><p>Likewise, the total value of all the bitcoin in circulation - about $131 billion - sounds like a lot. But it's still less than a tenth of the US dollars in circulation in the form of coins and paper bills. And its less than one one-hundredth of the M2 money stock, a measurement of the amount US dollars in use that includes those held in savings accounts and mutual funds as well as in the form of travelers checks and checking accounts. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b1af65a1ae66222008b4b3b-750/5b0ed9401ae66245008b48c9-750.jpg" border="0" alt="mary meeker kleiner perkins caufield byers" data-mce-source="Mary Meeker and Kleiner Perkins Caufield &amp; Byers" /><p class="source"><span>Mary Meeker and Kleiner Perkins Caufield &amp; Byers</span></p></div><p></p></div></div></p><p>That's not to say that some of these newer technologies will never replace the old. It's just that right now, even though many of the older technologies are seeing stagnating sales or use, the Next Big Things aren't close to displacing them.</p><p>In other words, things are changing super slowly, and what we have now is roughly what we'll continue to have for a while to come.</p><h2>What's next isn't ready</h2><p>We've already gotten glimpses at what the next wave of technology will bring.</p><p>Many companies are focused on technologies that will immerse us in digital images. Facebook has bet big on virtual reality. It's already been selling its Oculus Rift VR headset and is promising big things for the next iterations of it. Microsoft, which is betting on both virtual and augmented reality, is already offering its HoloLens AR smart goggles. Google and Apple are both working hard to incorporate AR features into their smartphones. </p><p>At the same time, many tech companies are investing heavily in artificial intelligence and in trying to bring AI to consumers. Amazon and Google, in particular, have been going toe-to-toe with Alexa and Assistant, their respective smart voice assistants. </p><p>The problem is that so much of this forward-looking stuff just isn't that useful yet.</p><p>Oh, I have no doubt that Facebook CEO Mark Zuckerberg is right that by 2027 or so we'll have <a href="http://www.businessinsider.com/mark-zuckerberg-wants-to-replace-all-screens-2017-4">smart glasses that are as thin and light as a pair of normal sunglasses</a>. And I'd bet that Amazon will one day succeed in its quest to <a href="http://www.businessinsider.com/amazon-alexa-david-limp-star-trek-2017-7">turn Alexa into the superintelligent supercomputer from "Star Trek."</a></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59970414b0e0b593758b51f8-2400/mark zuckerberg facebook ar glasses.jpg" border="0" alt="Mark Zuckerberg Facebook AR glasses" data-mce-source="Getty" /><p class="source"><span>Getty</span></p><p class="caption">Mark Zuckerberg is pushing his company to one day develop smart glasses that look like regular old spectacles.</p></div><p></p></div></div></p><p>But back here in 2018, those cutting-edge technologies are still lacking.</p><p>Using augmented reality on a smartphone means waving your phone around and looking silly. Trying to use AR via smart glasses means dealing with some significant technical limitations - and looking even sillier. </p><p>Alexa and Assistant can be helpful at times, but they're not nearly as all-around useful as a smartphone or a computer.</p><p>Cryptocurrencies come with too many complications and too much overhead to be truly useful as a replacement for regular money.</p><p>And despite all of its own investment in AI, Facebook is staffing up with thousands of humans because artificial intelligence isn't nearly as good at detecting hate speech as good, old-fashioned people.</p><p>All of that stuff will probably get fixed one day. But right now, the result is that our older technologies are growing stagnant and our newer technologies aren't ready to replace them.</p><h2>The scandals are good</h2><p>Ultimately, though, this stagnation may prove to be beneficial. This slowdown in the tech industry has given the world a chance to take a breath. And we're already using that lull to consider the roll of tech in our lives.</p><p>The string of scandals at Facebook and Google were unequivocally bad, with user privacy and perhaps the fate of democracy itself put at risk by decisions made by those tech titans. But they've triggered real and important conversations about the role of these major technology companies in our lives. Even the companies themselves seem to agree that it's time for the broader society to play an active role in shaping how technology affects our country and the world, potentially even through government regulations.  </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59e67271ddd0631c008b4650-2400/microsoft hololens.jpg" border="0" alt="Microsoft HoloLens" data-mce-source="Getty" data-mce-caption="Microsoft is one of the many companies working on augmented reality tech with its HoloLens headset." /><p class="source"><span>Getty</span></p><p class="caption">Microsoft is one of the many companies working on augmented-reality technology with its HoloLens headset.</p></div><p></p></div></div></p><p>And with folks inside and outside the industry raising alarms about how our devices and apps are affecting us at a personal level - encouraging addiction-like behavior and even leading to depression among teens - there's growing discussion about "digital health." Companies including Google, Facebook, and Apple are starting to respond, giving us ways to measure and limit the time we spend with our various gadgets and services.</p><p>This is an opportune time to have those conversations. Because the next generation of tech devices and services could be even more dangerous. </p><p>When the smartphone dies and augmented reality devices replace it and we're all wearing our Apple AirPods all the time, the technology companies will have unprecedented access to our brains. When you wear a pair of Facebook's - or Apple's or Google's - smart goggles, you're going to be letting the company behind them determine what you see and hear. The company and the other tech giants will, in a very literal way, be controlling your perception of reality.</p><p>Now is the time to think through the implications of that control - and what could go wrong.</p><p>I'm hopeful. Now that we've started talking about how to fix our relationship with technology, I don't think we're going to stop the discussion anytime soon.</p><p>That's a good thing - as long as we all get on the same page before the next generation of tech is finally ready.</p>    <p class="tagline">Get the latest Google stock price<a href="http://markets.businessinsider.com/stock/GOOG-Quote"> here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/cookie-monster-talks-about-bitcoin-self-regulation-business-sesame-street-joy-of-cookies-book-2018-5">We spoke to Cookie Monster about bitcoin, cookies, and self-regulation</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/lgxLPusY-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The technology industry's lull is giving us a chance to consider its impact on society - while we still can

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5ada7a9c19ee861c008b46e3-2029/gettyimages-944377880.jpg" border="0" alt="facebook ceo mark zuckerberg" data-mce-source="Alex Wong/Getty Images" data-mce-caption="Facebook co-founder, Chairman and CEO Mark Zuckerberg awaits to testify before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC." /><p class="source"><span>Alex Wong/Getty Images</span></p><p class="caption">Facebook CEO Mark Zuckerberg</p></div><p></p></div></div></p><ul><li><strong>Pro-privacy regulations could have an unintended consequence: reinforcing Facebook's dominance.</strong></li><li><strong>New rules taking effect next month in Europe and ones being discussed in the US and elsewhere could throw up barriers to competitors and funnel more ad dollars to Facebook, a Morningstar analyst said in a new report.</strong></li><li><strong>Another analyst agreed the concern was "plausible," but said the new rules could also end up fundamentally changing the market.</strong></li></ul><hr /><p><br />Battered over privacy issues in recent weeks, Facebook faces tough new regulations in Europe and potentially elsewhere, including at home.</p><p>But rather than curtailing the social networking giant's power, the rules could leave it stronger than ever.</p><p>That's the take of Morningstar Equity Research analyst Ali Mogharabi. The new regulations could actually create hurdles that will be a bigger burden for potential competitors to Facebook than for Facebook itself, Mogharabi said in a research note Friday.</p><p>"Future regulations, such as the General Data Protection Regulation in Europe or some bills being proposed in the United States, are likely to create barriers to entry," he wrote. "This might actually make it harder for competing social networks to collect valuable user data to sell ads, and in turn may help Facebook maintain its dominant position as the social network of choice for advertisers."</p><p>Set to take effect next month, the European Union's General Data Protection Regulation (GDPR) promises to give European consumers more control over their private information. Following the Cambridge Analytica scandal, some US lawmakers <a href="https://www.cnet.com/news/privacy-imported-zuckerberg-hearings-get-congress-weighing-eu-style-regulations-to-protect-your-data/">are discussing putting in place similar rules</a>.</p><p>While some have seen such rules as a way to rein in Facebook, GDPR and similar potential regulations in the US could prove to be a financial windfall for the company, especially if they help weed out its competitors, Mogharabi said.</p><p>"Further regulations could limit Facebook's access to and/or utilization of user data, which could lower its <keyword id="35666" type="COMPANY" weightage="60" keywordseo="advertising">advertising</keyword> prices," he wrote. But, he added, "we think they could also ... help Facebook maintain its dominant position in the social network space, possibly resulting in higher Facebook ad prices as advertisers find even fewer digital alternatives."</p><p>The analyst estimates Facebook's stock, which closed regular trading Friday at $166.28, has a "fair value" of $198.</p><h2>Not everyone's convinced Facebook will benefit from the rules</h2><p>But other Facebook analysts aren't as optimistic about how the company will fare under new regulations. Instead, they argue that stricter privacy rules could precipitate a broader transformation in the market that may or may not work in Facebook's favour.</p><p>GDPR will likely cause "a general slowdown in digital spending in Europe," Pivotal Research Group's Brian Wieser said in his own research note Thursday. While Facebook "may very well grow its share, growth will likely slow along with the market share."</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5acd1b0a87826b2f008b4b6d-1855/facebook zuckerberg hearing senator richard blumenthal.png" border="0" alt="facebook zuckerberg hearing senator Richard Blumenthal" data-mce-source="Committee on the Judiciary" /><p class="source"><span>Committee on the Judiciary</span></p><p class="caption">Sen. Richard Blumenthal, D-Connecticut, is among the lawmakers who have been sharply critical of Facebook's data collection practices.</p></div><p></p></div></div>Wieser has been far more bearish on Facebook than Mogharabi and other financial analysts. He has a rare "sell" rating on the company's shares and a price target of $138.</p><p>Mogharabi's analysis of how Facebook might benefit from regulations is "plausible," Wieser told Business Insider. But, he added, the analysis is also "willfully optimistic."</p><p>GDPR and similar regulations will make it more difficult for Facebook and other companies to use customers' data. That could lead to an increased stream of ad dollars into Facebook, Wieser said. But it could also spark a broader shift in online advertising.</p><p>If advertisers see user-targeting through Facebook and similar services as increasingly difficult, they might fall back on older strategies, such as placing ads next to content - videos, articles, and the like - that itself is targeted at particular audiences. Traditional publishers can accommodate that kind of strategy, but Facebook can't, he said.</p><p>Similarly, you might see companies emerge that are "legitimately GDPR-privacy-friendly-by-design," Wieser said. These would be Facebook alternatives that wouldn't be reliant on user-targeted advertising and so wouldn't be constrained by GDPR or similar regulations. Such companies might also see a boost from increased consumer awareness of privacy issues, he said.</p><p>More radically, if the new regulations are accompanied by a sea change in attitudes towards public data sharing, Facebook and other social networking services may see their use and relevance diminish.</p><p>"They exist today, and something different could exist in the future. People can get tired of Facebook," Wieser said. "You can't take it as a given that it persists. It probably does, but it could just as easily fade away."</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/apple-iphone-battery-dead-replacement-difficult-hard-2018-3">Why Apple makes it so hard to get a new iPhone battery</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/6ZQ4SmH5-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The pro-privacy backlash against Facebook might actually make it even stronger

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54edc10069beddc93a6d7e19-1200-924/janet-yellen-283.jpg" alt="janet yellen" border="0"><p class="source"><span>REUTERS/Kevin Lamarque</span></p><p class="caption">Federal Reserve Chair Janet Yellen takes her seat to testify at a Senate Banking, Housing and Urban Affairs Committee hearing on "Semiannual Monetary Policy Report to Congress" on Capitol Hill in Washington, February 24, 2015.</p></img></div><p></p></div></div>Here is what you need to know.</p><p><strong>Chinese manufacturing is expanding. </strong><a href="http://www.reuters.com/article/2015/02/25/us-china-economy-pmi-idUSKBN0LT05Q20150225">HSBC Flash Manufacturing PMI climbed to 50.1 (49.7 previous), outpacing the 49.6 that had been forecasted.</a> Today's reading has the index back above the 50.0 expansion / contraction line and its best level in four months. China's yuan weakened by 0.1% to 6.2599 against the dollar, and it's near its weakest levels since October 2012. <strong> </strong></p><p><strong>Fed Chair Janet Yellen faces her second day of testimony on Capitol Hill. </strong><a href="http://www.businessinsider.com/fed-janet-yellen-humphrey-hawkins-testimony-feb-24-2015-2015-2">Yellen spent yesterday's session in front of the Senate Banking Committee fending off questions about Fed policy and 'Audit the Fed,'</a> and she's likely to hear more of the same today as she appears in front of the House Financial Services Committee.<strong> </strong></p><p><strong>Hewlett-Packard warned for 2015. </strong><a href="http://www.businessinsider.com/hp-reports-earnings-2015-2">The company announced it expects non-GAAP earnings per share of $0.84 to $0.88 per share, which was well below the $0.96 per share that analysts were looking for</a>. As for the quarter, results were mixed. EPS of $0.92 per share topped the $0.91 per share that analysts expected while revenues of $26.8 billion missed the forecasted $27.2 billion. <strong><br /></strong></p><p><strong>Global stock markets are mostly lower. </strong>China's Shanghai Composite (-0.6%) slid as traders returned to work following the extended Lunar New Year holiday. Meanwhile, Australia's ASX (+0.3%) outperformed on the heels of some better than expected data. European markets are lower across the board with Italy's MIB (-0.7%) pacing the decline.  <strong> </strong></p><p><strong>US economic data is light. </strong>Weekly MBA Mortgage Application fell 3.5%.<strong> </strong><span>New home sales are due out at 10am ET and crude oil inventories will cross the wires at 10:30am ET. Treasury will hold a $35 billion 5-year note auction at 1pm ET. <br /></span></p><p><strong>A judge has ordered Apple to pay $533 million for infringing patents. </strong>A jury ruled Apple's iTunes infringed on three of Smartflash's patents. Reuters reports, "<a href="http://www.reuters.com/article/2015/02/25/us-ip-apple-verdict-idUSKBN0LT0E720150225">The jury, which deliberated for eight hours, determined Apple had not only used Smartflash's patents without permission, but did so willfully.</a>" Apple will appeal the ruling.</p><p><strong>JPMorgan will close 5% of it branches over the next two years. </strong><a href="http://www.businessinsider.com/jpmorgan-will-close-300-branches-by-2017-2015-2#ixzz3SjmUyQnE">The announcement comes as part of a cost-cutting plan that aims to save the banking giant $1.4 billion.</a><strong> <br /></strong></p><p><strong>China is looking into ways to combat its property slowdown. </strong>Bloomberg reports, "<a href="http://www.bloomberg.com/news/articles/2015-02-25/china-said-to-prepare-measures-to-counter-housing-market-slump">The government could reduce down-payment requirements for second-home purchases," or, "let homeowners sell properties without paying sales tax after two years, down from five years.</a>"</p><p><strong>Britain's BBA Mortgage Approvals topped estimates. </strong>The number saw a reading of 36.4K, topping the 63.2K that was expected. The British pound is up 0.2% at 1.5490, and nearing its best levels of 2015.  </p><p><strong><strong>Brazil's Petrobras was cut to 'junk' at Moody's. </strong></strong>The scandal-plagued energy giant saw its credit rating lowered to 'Ba2' from 'Baa3.' Moody's explained in a statement, "<a href="http://www.businessinsider.com/afp-moodys-downgrades-ratings-for-scandal-hit-petrobras-2015-2">These rating actions reflect increasing concern about corruption investigations and liquidity pressures that might result from delays in delivering audited financial statements, as well as Moody's expectation that the company will be challenged to make meaningful reduction in its very high debt burden over the next several years</a>." </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/iphone-headphones-tricks-2015-2">14 things you didn't know your iPhone headphones could do</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="o2OGM3czpWcydnvhjbkDBd6feXPuExiD" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'o2OGM3czpWcydnvhjbkDBd6feXPuExiD',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

10 things you need to know before the opening bell

<p><div class="KonaFilter image-container"><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5406f92a6bb3f73327fded2c-1200-800/rtr44q3l.jpg?maxX=800" alt="rabbit" border="0" width="800"><p class="source"><span>REUTERS/Pichi Chuang</span></p><p class="caption">A person stands in front of a 25.3-meter-long giant rabbit designed by Dutch artist Florentijn Hofman at an old aircraft hangar as part of the Taoyuan Land Art Festival in Taoyuan, northern Taiwan, September 3, 2014. </p></img></div><p></p></div>Good morning! Here's what you need to know. </p>
<p><strong>1)  Ukraine Cease-Fire Is Announced, But Is Nowhere To Be Seen. </strong>Ukrainian President Petro Poroshenko's press office said he'd reached a cease-fire agreement with Vladimir Putin. But a Kremlin representative said no such agreement was in place, and fighting continued in Ukraine's east. "Putin and Poroshenko in fact discussed the steps that would be conducive to a cease-fire between the militias and the Ukrainian security forces,"  Putin's press secretary Dmitry Peskov, <a href="http://ria.ru/world/20140903/1022566481.html" target="_new" class="icon ">RIA Novosti reported</a>. Russia cannot negotiate a cease-fire "because it is not a party to the conflict," he said according to <a href="http://www.marketwatch.com/story/russia-agreed-on-peace-process-not-cease-fire-kremlin-2014-09-03">MarketWatch</a>.</p>
<p><strong>2)  Obama Sending More Personnel To Iraq. </strong>The President has authorized an additional 350 military troops <span>"protect our diplomatic facilities and personnel in Baghdad, Iraq," according to a spokesman. "The decision was made at the recommendation of the Department of Defense and noted that additional forces will not serve in a combat role," <a href="http://www.nbcnewyork.com/news/national-international/273670781.html?_osource=SocialFlowTwt_NYBrand">NBC said</a>. "Additionally, the President will be consulting this week with NATO allies regarding additional actions to take against Islamist militants."</span></p>
<p><strong>3)  Apple In Crisis?</strong> BI's Jim Edwards argues that on the eve of one of the iPhone 6  announcement, the company now faces a crisis of confidence thanks to the celebrity hacking scandal. <a href="http://www.businessinsider.com.au/apple-six-hour-itunes-store-outage-2014-9">There was also an iTunes outage last night</a>. "T<span style="font-size: 15px; line-height: 1.5em;">rust is a huge part of the Apple brand. </span><span style="font-size: 15px; line-height: 1.5em;">People use Apple because its products "just work," and because all the hackers and malware tend to be on Windows and Android systems, not Apple's OS and iOS platform....</span><span style="font-size: 15px; line-height: 1.5em;">Now, Cook is in danger of seeing that trust slip away. He was just about to ask consumers to place </span><em style="font-size: 15px; line-height: 1.5em;">even more</em><span style="font-size: 15px; line-height: 1.5em;"> faith in iCloud, which will sit at the center of ambitious plans to extend Apple's mobile payments capabilities (through NFC and Touch ID), its online e-commerce strategy (through iTunes, the app stores and Beats), through improvements to its Mac operating system (OS X Yosemite will have an iCloud Drive storage system) and through Handoff, a new system that lets you switch your work between your Mac and an iPad seamlessly. </span><span style="font-size: 15px; line-height: 1.5em;">Instead of the tech media being filled with stories about how exciting this is all going to be, blogs are running </span><a href="http://www.businessinsider.com/how-to-switch-off-icloud-photos-2014-9">"how to" guides for people who want to switch off iCloud</a><span style="font-size: 15px; line-height: 1.5em;">."</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><strong>4)  Today's Bad Europe News.</strong> </span><span style="font-size: 15px; line-height: 1.5em;">According to </span><a href="http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-03092014-AP/EN/4-03092014-AP-EN.PDF">Eurostat</a><span style="font-size: 15px; line-height: 1.5em;">, retail sales fell 0.4% in the Euro area in June. For what it's worth, it's only the first time since January that this figure has declined. Meanwhile the purchasing managers' index for services firms fell to 53.1 in August from 54.2 in July, though it is still well above the crucial 50 level that marks an expansion in activity, <a href="http://on.ft.com/1BaY3Cl">reports the FT's Claire Jones.</a></span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><strong>5)  U.K. Services Growth Fastest In 10 Months.</strong> </span><a href="http://www.markiteconomics.com/Public/PressRelease.mvc/c376e02b9014499a8c402bdadf5f7451">The Markit/CIPS services purchasing managers' survey for Britain</a><span style="font-size: 15px; line-height: 1.5em;"> hit 60.5 in August, up from 59.1 in July</span><span style="font-size: 15px; line-height: 1.5em;">. </span><span style="font-size: 15px; line-height: 1.5em;">Samuel Tombs, senior UK economist at consultancy Capital Economics <a href="http://on.ft.com/YaO2aH">said per the FT</a> that the strength of the survey "provides reassurance" that the economic recovery is not losing pace and that "the UK is set for a period of strong, non-inflationary growth." Meanwhile analysts expect the Bank of England to leave rates unchanged at its policy meeting this week <a href="http://www.businessinsider.com/afp-bank-of-england-set-to-hold-rates-at-record-low-0.50-2014-9">according to AFP</a>.</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><strong>6)  Norway Oil Slowdown.</strong> Oil companies expect to invest 19% less<span> in Europe's largest oil producer in 2015 than 2014, according to a new survey. Norway has become increasingly dependent on oil revenues, and the slowdown is likely to hit the broader economy. </span></span><span style="font-size: 15px; line-height: 1.5em;">"</span><span style="font-size: 15px; line-height: 1.5em;">Lower oil-sector investments may limit overall growth and lead Norway's central bank to lower its expectations of future rates, as an economic slowdown would normally call for lower key rates to boost growth," <a href="http://www.marketwatch.com/story/norways-oil-sector-may-see-sharp-fall-in-spending-2014-09-03?link=MW_latest_news">Marketwatch's Kjetil Malkenes writes.</a> </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><strong>7.  Commerzbank CEO Calls For Common Bonds.</strong> Martin Blessing, the head of one of the world's largest banks, published an op-ed arguing Euro zone lenders should begin issuing Eurobonds to help boost the Euro. <a href="http://on.ft.com/YaZ7bz">FT</a>: "</span><span style="font-size: 15px; line-height: 1.5em;">The Commerzbank chief argued in the article that the European Central Bank's response to the crisis, which has involved buying government debt, and the bonds issued under the European Stability Mechanism bailout vehicle meant sharing debt burdens was 'already a reality.' </span><span style="font-size: 15px; line-height: 1.5em;">Mr Blessing, who has chaired the board of Germany's second largest bank since 2008, said on Wednesday that eurobonds 'would permanently establish the euro as a globally important currency, ensuring the sustained importance and competitiveness of Europe.'" <span>Germany's finance ministry quickly pushed back saying this would let peripheral countries off the hook from reforming their economies.</span></span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><span><strong>8.  LVHM Cuts Hermes Loose.</strong> </span>LVMH Moet Hennessy Louis Vuitton SA will devolve its $7.5 billion holding in Hermes International SCA after a French ruled in favor of the Birkin bag maker, Bloomberg's Andrew Roberts reports.</span><span style="font-size: 15px; line-height: 1.5em;"> LVHM "<span>will distribute the stake to its shareholders and institutional investors, leaving...holding company Groupe Arnault with an 8.5 percent interest, the Paris-based company" Bloomberg said. LVMH currently holds about 23 percent of Hermes. </span>Hermes had sued LVHM after they'd built up holdings that caught Hermes equity holders unawares. The resolution reduces "the speculative appeal of Hermes which goes back to being a normally traded company," one analyst told Bloomberg. Hermes shares fell 11% in Paris, while LVHM climbed 3.9%.</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><strong>9.  Data.</strong><span> All day we'll learn light vehicle sales for August. Consensus</span><span> is for an increase to 16.5 million SAAR in August from 16.4 million in July (Seasonally Adjusted Annual Rate). At 10 a.m. we get factory orders for July</span><span> consensus is for a 10.5% increase. And </span><span>at 2 p.m. we get the Fed's Beige Book survey of economic conditions. </span></span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><span><strong>10.  Markets.</strong> Stocks in Europe and U.S. futures surged on the Ukraine ceasefire announcement. Germany<span>'s DAX Index rose 1.2%. </span>London's FTSE climbed 0.9% <span>In Asia, Hong Kong's Hang Seng China Enterprises Index of mainland shares jumped</span><span> 3.2%, its biggest rally since November according to Bloomberg. Dow futures were up 74 points.</span></span></span></p>

You Searched For "iphone slowdown scandal" and got 12 results

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