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🫠 Apple TV+ is losing $1 billion every year
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- According to a new report, Apple TV+ is the only unprofitable Apple subscription service, losing over $1 billion every year, despite reaching around 45 million subscribers and spending billions on content since its 2019 launch.
- Apple TV+ accounts for less than 1% of U.S. streaming service viewership, and initial business plans anticipated losses between $15 billion and $20 billion over its first decade, contrasting Apple's usual financial prudence.
- Apple's services division saw revenue growth, but several offerings, including Apple Music and Apple Arcade, struggle with stagnant growth or low usage, often relying on the Apple One bundle to appear successful.
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💥 Nvidia to invest hundreds of billions in US manufacturing
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- Nvidia plans to invest hundreds of billions of dollars in US-based chip and electronics manufacturing over the next four years to reduce risks related to tariff threats.
- The company aims to manufacture its latest systems in the US by collaborating with suppliers like TSMC and Foxconn, aligning with other tech firms' US investment strategies.
- Additionally, Nvidia has acquired synthetic data firm Gretel for over $320 million to enhance its cloud-based AI services, addressing data scarcity and privacy issues.
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📱 EU orders Apple to open iOS to competitors
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- The European Union has mandated that Apple must allow third-party device integration with iOS, enhancing interoperability under the Digital Markets Act by specific deadlines, including for smartwatches and headphones.
- Apple is required to provide free access to nine previously restricted iOS features to developers and businesses, ensuring better compatibility of non-Apple devices with iPhones and improved transparency in handling requests.
- Despite Apple's opposition citing innovation hindrance and privacy concerns, the EU is determined to implement these rules, threatening significant financial penalties for failure to comply with the new regulations.
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💰 SoftBank acquires chip designer Ampere for $6.5 billion
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- SoftBank is acquiring chip designer Ampere for $6.5 billion, with the transaction expected to finalize in the latter half of the year.
- Oracle and Carlyle, the primary shareholders in Ampere, have agreed to relinquish their stakes, allowing Ampere to become an independent subsidiary of SoftBank.
- Ampere, which focuses on creating Arm-based processors for data centers, will maintain its operations in Santa Clara, California, and employ about 1,000 semiconductor engineers.
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👀 Apple reshuffles AI leadership to improve Siri
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- Apple is restructuring its leadership to enhance Siri, with CEO Tim Cook reportedly losing faith in AI head John Giannandrea's ability to develop the voice assistant.
- Mike Rockwell, who previously led the Vision Products Group, will now head the Siri team, while John Giannandrea will remain to focus on research and other AI technologies.
- Paul Meade will succeed Rockwell in leading the Apple Vision Pro team, having previously been in charge of hardware engineering for the same product line.
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