MacRumors

Apple has told several Chinese social networking apps to disable their "tip" functions to comply with App Store rules, according to executives at WeChat and other companies.

The tip functions in Chinese messaging platforms are free to use and allow people to send authors and other content creators monetary tips through transfers to mobile wallet accounts. However, according to The Wall Street Journal, Apple has decided that tips are equivalent to in-app purchases – similar to buying games, music, and videos – therefore Apple is entitled to a 30 percent cut of every transaction.

On the other hand, Apple's App Store revenue in China overtook its U.S. App Store revenue in 2016 and became the biggest App Store market in the world. Making the tip function an in-app purchase in China's wildly popular chat apps would seem to be a sure-fire way to increase Apple's revenue. However, Apple's pressure on messaging platforms like WeChat is a risk and threatens to alienate huge Chinese companies.

Some social-networking apps have likened Apple's tactic to arm-twisting, according to The Wall Street Journal. Apple is said to have told chief executives at two companies that if they refuse to make the change, updated versions of their apps won't be made available and they could be kicked out of the App Store. "We don't charge anything as the platform, but Apple gets 30 percent for doing nothing," one of the executives reportedly fumed.

The annoyance stems from the way the tipping culture is viewed in China. Chinese app developers see tipping as fundamentally different from in-app purchases because users only tip voluntarily as a mark of appreciation when they consume content. But the biggest worry for Apple could be whether the Chinese government decides to intervene and side with the tippers.

One executive says his company is talking to the Ministry of Industry and Information Technology, a regulator, about whether Apple is imposing unfair rules by turning tipping into in-app purchases. MIIT says it isn’t involved. The People’s Bank of China, which regulates electronic payments, didn’t respond to a request for comment.

Apple has suffered at the hands of Chinese state regulators before. But Apple also risks frustrating China's biggest company Tencent Holdings Ltd, the developer of WeChat, which has 938 million active monthly users. The messaging service works almost like an operating system all of its own, boasting multiple mini-apps that allow users to pay bills, book hotels, browse media, and more, without ever having to leave the chat platform. The nature of the system itself could be a threat to Apple's app revenue, while WeChat is arguably more important to Chinese smartphone users than any individual phone brand – iPhone included.

WeChat is in talks with Apple to try to find a new solution to the tipping problem and come to an alternative agreement, according to people familiar with the matter.

In honor of Global Accessibility Awareness Day, which takes place tomorrow, Apple CEO Tim Cook sat down with three YouTubers to discuss the Accessibility features built into Apple's iOS and Mac devices.

Each of the three YouTubers, who met Cook at Apple's campus for coffee, have shared their conversations with the CEO on their respective YouTube channels. All three, including legally blind filmmaker James Rath, deaf advocate and vlogger Rikki Poynter, and actress Tatiana Lee, who was born with Spina Bifida, talked about the Apple products that they use in their daily lives. The three interviews can be watched below.

Apple is founded on giving people power to create things, to do things that they couldn't do without those tools. And we've always viewed accessibility as a human right. And so just like human rights are for everyone, we want our products to be accessible for everyone. And so it's a basic core value of Apple. We don't make products for a particular group of people. We make products for everybody.

We feel very strongly that everyone deserves an equal opportunity and equal access. So we don't look at this thing from a return on investment point of view -- I've been asked that before. The answer is no, I've never looked at that. We don't care about that.

In addition to Cook's meetings, Apple also recently published a series of "Designed for" accessibility videos, highlighting the different ways Apple's Accessibility features are used to make Apple devices available to everyone, and there's currently an Accessibility feature in the App Store promoting Accessibility apps.

Since October, Apple has had a detailed Accessibility website that demonstrates and promotes the extensive Accessibility options built into Apple products.

92 percent of iPhone owners that are "somewhat likely" or "extremely likely" to upgrade their smartphone in the next 12 months plan to purchase another iPhone, according to investment banking firm Morgan Stanley.

Apple's loyalty rate, up from 86 percent a year ago, is based on an April 2017 survey of 1,000 smartphone owners aged 18 and above in the United States. It's the highest iPhone retention rate recorded by Morgan Stanley since an all-time high of 93 percent set in September 2015, when the iPhone 6s launched.

An excerpt from Morgan Stanley analyst Katy Huberty's research note distributed today:

It's our belief that a maturing installed base that is accustomed to iOS and increased press around potential new technologies in the upcoming iPhone drove the strong year-over-year increase. Importantly, the rise in Apple's loyalty rates comes after Samsung, Apple's biggest competitor in the United States, introduced the Galaxy S8, which was available for pre-order starting March 30th. Apple's loyalty rate of 92% dwarfs that of all other vendors, with Samsung garnering a 77% retention rate, followed by LG (59%), Motorola (56%), and Nokia (42%).

Despite reports suggesting "iPhone 8" mass production could be delayed by months, Huberty said Morgan Stanley's Greater China Technology Research colleagues have "not yet seen delays in the supply chain" and still expect new iPhone production to start on time for most components, including the OLED display.

"Nevertheless, we remain conservative in our initial expectations for iPhone supply," the research note cautioned.

Morgan Stanley raised its price target for Apple's stock to $177 today, up from $161, given growing confidence in its 2018 fiscal year "supercycle" estimates, along with a greater mix of recurring, high-margin services revenue, and a larger cash balance with potential for repatriation in the United States.

Google today kicked off its annual I/O developer conference in Mountain View, California, beginning with a keynote where the company announced Google Assistant for iPhone, new Google Home features including the ability to stream Apple Music via Bluetooth, and new photo sharing features in Google Photos.

Google Assistant on iOS

As it was rumored earlier this week, Google today announced that its AI helper Google Assistant is out now for iOS as its own standalone app [Direct Link]. This way, users will be able to chat with Google and gain access to all of its interactive features without needing a Pixel or Android smartphone.

The company also revealed that Google Assistant will be gaining new chatbot abilities and integration with a new technology called Google Lens, which enhances a smartphone's camera with AI learning. As an example, Google showed a demo where a user took a picture of a business's sign, and gave them reviews, menu items, friend check-ins, and more. Other examples include the camera's ability to identify what a user is looking at, such as the species of a flower, or connecting to a Wi-Fi network by taking a picture of a sticker on a router.

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Apple Music executive and recording industry mogul Jimmy Iovine recently sat down for a wide-ranging interview with Music Business Worldwide, reflecting upon his desire for more people to start paying for music.

The spread of free music has proliferated since the earliest days of the internet, starting with shady peer-to-peer services like Napster and LimeWire and progressing to legal, ad-supported platforms like Spotify and YouTube. Iovine thinks it's wrong, and insists artists should get paid for their work.

However, he admitted that free music is "so technically good" that many people simply aren't willing to pay up. In fact, he said if Apple Music were to offer a free tier like Spotify, it "would have 400 million people on it" and make his job a lot easier. But that's not what he nor Apple believe in.

I’ve put my money where my mouth is: Beats Music didn’t have a free tier. Apple Music doesn’t have a free tier.

I’m not just talking it; I’m walking it. That’s why I aligned with Eddy and Tim and Steve. They thought the same way.

I think what’s going on [with free music] is wrong. I just do.

To change that, he said "you've got to put everything into making the experience for people who are paying feel special."

Iovine believes that "people who pay for subscriptions should be advantaged," something Apple Music aims to accomplish with a lineup of original content in the works, including Carpool Karaoke: The Series, Vital Signs, Planet of the Apps, and an upcoming documentary with Harry Styles.

In the beginning of Apple Music, I was very frustrated; I tried to fight [Spotify] and all those things.

Now all we can do is make Apple Music such a special place that people want to come and that will encourage more people [to subscribe].

Apple Music has also had exclusives with major artists such as Chance the Rapper, Drake, Frank Ocean, and Taylor Swift, and Iovine said those deals will continue occasionally, but he admitted that record labels "don't seem to like it."

Iovine continues to believe that Apple Music will be "on the forefront of popular culture," a sentiment he has echoed in many interviews.

Interview: "Musicians Taught Me Everything. Without Them, I'm Working On The Docks"

Apple's first iOS Developer Academy opened in Naples, Italy last October, providing 200 students with practical skills and experience to help turn their app ideas into reality and bring them to market on the App Store.

One of those students is a young Neapolitan man named Lucio, who left Naples for the United Kingdom to find a technology job, but was enticed to return to the city upon hearing about Apple's Developer Academy.

The Independent says after Lucio applied for the academy, he left his job at Starbucks so that he could study properly. He felt it was a risky move, but fortunately, he passed the test and joined the first year's class of students.

Lucio described the academy as the "opportunity of my life" and, nearly eight months later, said he would "totally recommend" the experience to anyone looking to come from elsewhere in the world.

“I was taking a risk, but this was the opportunity of my life,” he says. He had tried university already, and found it lacking because it had so little focus on student’s enjoyment and the work of actually solving problems and working with other people.

The Independent explains how Apple's Developer Academy has made Naples a more attractive city for young people to thrive in, after years of suffering from "brain drain" following an industrial decline.

“If you stay here you are part of an ecosystem that will continue to train developers,” says Giorgio Ventre, a professor at the University of Naples Federico II. “This is something that you do need if you want to open a company. You want to count on yourself - but you want to count on the skills you need to help your company grow. If you stay here you can find it.”

Apple is accepting applications for the Developer Academy's second year until May 31. Scholarships are available, and each student inducted receives a free MacBook and iPhone to use during the one-year program. Courses are held at the University of Naples Federico II in Naples suburb San Giovanni a Teduccio.

The academy will accept up to 400 students for the new academic year, twice as many as the first year. The program is open to students from across Italy and around the world, with Apple encouraging developers from the United Kingdom and elsewhere to apply in an effort to have a more diverse group of people.

Last year, Apple said it expects to expand its Developer Academy program to other countries around the world in the future.