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Home Blog Page 3436

How To Change Apple Pay Developer Policy, Not With Court But Innovation

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The laws of nations shape markets and commerce. And companies advance via business models they operate on. Yes, the US Supreme Court has normalized Apple Pay with an external link – “In the wake of the U.S. Supreme Court’s rejection to hear Apple’s appeal in its protracted legal battle with Epic Games, the tech giant has unveiled a series of substantial adjustments to the App Store Guidelines” – but Apple has also covered its flanks with a new “tax” – “Developers using alternative payment platforms will be subject to a commission of 12% if they are part of the App Store Small Business Program and 27% for other apps”.

Check carefully, there is no alternative: companies do not innovate only to disarm and even courts cannot make that happen.  The only solution to what people call an “unfair” Apple Pay policy is to create a better product than Apple.

Good People, what is the difference between 12 and a dozen? Ask the new Apple Pay policy! Poor Epic Games, you just made some lawyers richer for largely nothing.

Get me right, I am not into those activism. The New York Times refused to pay Twitter but expected people to pay for its content. Microsoft Office did not allow many things until Google Doc came. And Yahoo Mail was terrible with 4MB space until Gmail was launched. Simply, there is a way to put companies in line, and using courts and lawyers rarely deliver any transformational real change, as when you close one, they open another flank. To get real change, a new basis of competition is required and that is the message Apple Pay policy will listen to.

Apple Reverses App Store Guidelines, Allows External Link Payment Following Supreme Court Decision in Epic Games Battle

Global Consensus Emerging on AI Regulation – Microsoft CEO Satya Nadella

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In an interview at the prestigious World Economic Forum in Davos, Switzerland on Tuesday, Satya Nadella, the CEO of Microsoft, shared his perspective on the evolving global consensus surrounding artificial intelligence (AI).

Despite recognizing the diversity in regulatory approaches across different jurisdictions, Nadella pointed at the imperative for global coordination, the establishment of standards, and the implementation of apt guardrails for the burgeoning field of AI.

Engaging in a thoughtful conversation with Klaus Schwab, the Chairman of the World Economic Forum, Nadella articulated the importance of a global regulatory approach to AI, stating, “I think a global regulatory approach to AI is very desirable because I think we’re now at this point where these are global challenges that require global norms and global standards.”

He emphasized the necessity of such unified efforts to effectively confront challenges, enforce regulations, and advance crucial research in the field of AI.

“Otherwise, it’s going to be very tough to contain, tough to enforce, and tough to quite frankly move the needle even on some of the core research that is needed,” Nadella added. “But that said, I must say, that there seems to be a broad consensus that is emerging.

Highlighting Microsoft’s pivotal role in the AI industry, Nadella brought attention to the substantial investments the company has made in OpenAI, a key player in the development of AI technologies. Microsoft’s total contributions, amounting to a staggering $13 billion, exemplify the company’s unwavering commitment to propelling advancements in AI.

Furthermore, Nadella pointed out that OpenAI’s technologies have been seamlessly integrated into Microsoft’s Office, Bing, and Windows products, showcasing the broad applicability of AI across diverse domains.

Nadella acknowledged the global momentum behind the push for consensus on AI rules, citing a significant milestone achieved at an AI safety summit in the U.K. Here, world leaders came together and agreed to collaborate on establishing global standards and frameworks for the safe development of AI.

The Microsoft CEO noted the significance of rigorous evaluations, red teaming, and safety measures, particularly in the context of large language models.

“If I had to sort of summarize the state of play, the way I think we’re all talking about it is that it’s clear that, when it comes to large language models, we should have real rigorous evaluations and red teaming and safety and guardrails before we launch anything new,” said Nadella. Red teaming is a term describing the testing of AI vulnerabilities.

“And then when it comes to applications, we should have a risk-based assessment of how to deploy this technology.”

Discussing the application of AI in specific sectors, Nadella proposed a risk-based assessment for deploying AI technology. He emphasized aligning industry-specific regulations with AI applications, stating, “If you’re deploying it in health care, you should apply health-care regulations to AI; if you’re deploying it in financial services, you should deploy the financial risks or considerations.”

When queried about the potential establishment of a global AI agency for regulating AI, Nadella expressed uncertainty. However, he noted that countries are actively engaging in discussions about applying similar safeguards to AI.

Despite the complexity of the issue, Nadella concluded on an optimistic note, saying, “So I think that, if we take even something as simple as that as a basis to build some consensus and norms, I think we can come together. So I’m hopeful.”

His optimism suggests a shared commitment among nations to navigate the complexities of AI regulation collectively.

Apple Reverses App Store Guidelines, Allows External Link Payment Following Supreme Court Decision in Epic Games Battle

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In the wake of the U.S. Supreme Court’s rejection to hear Apple’s appeal in its protracted legal battle with Epic Games, the tech giant has unveiled a series of substantial adjustments to the App Store Guidelines.

These changes, effective immediately, are a direct response to the outcome of the 2021 Apple vs. Epic trial, specifically targeting the anti-steering rules that had hitherto restricted developers from incorporating links to alternative payment systems within their apps.

The revised guidelines, initially tailored for dating applications in the Netherlands, now extend their reach to the United States. The primary alteration centers around the relaxation of anti-steering rules, permitting developers to include links to alternative payment methods. However, the caveat is that the app must continue to offer purchases through Apple’s In-App Purchase system.

Developers, eager to take advantage of this newfound flexibility, can apply for an entitlement allowing them to integrate buttons or links directing users to external purchasing mechanisms.

“Developers may apply for an entitlement to provide a link in their app to a website the developer owns or maintains responsibility for in order to purchase such items,” the guideline noted. “In accordance with the entitlement agreement, the link may inform users about where and how to purchase those in-app purchase items, and the fact that such items may be available for a comparatively lower price.”

Apple noted that this entitlement is exclusive to the iOS or iPadOS App Store on the United States storefront. In other storefronts, apps, and metadata may not include buttons, links, or calls to action redirecting customers to alternative purchasing mechanisms.

The guidelines stipulate that the link to an alternative payment platform should be displayed on a single app page navigated by the end user, excluding interstitials, modals, or pop-ups. It must occupy a dedicated location and should not persist beyond that page.

In an effort to assist developers in transparently communicating with customers about alternative in-app payment systems, Apple has provided templates. Examples include prompts like “For special offers go to [X],” “Lower prices offered at [X],” “To get [X%] off, go to [X],” and “Buy for [$X.XX] at [X].”

Despite these noteworthy changes, Apple is adamant about maintaining its commission structure. Developers using alternative payment platforms will be subject to a commission of 12% if they are part of the App Store Small Business Program and 27% for other apps.

The commission will apply to “purchases made within seven days after a user taps on an External Purchase Link and continues from the system disclosure sheet to an external website.”

Apple says developers will be required to provide an accounting of qualifying out-of-app purchases and remit the appropriate commissions.

This monumental decision follows the Supreme Court’s refusal to hear Apple’s appeal, upholding the original ruling and compelling the company to implement changes.

Epic Games CEO Tim Sweeney, responding to the news, took to X to highlight the far-reaching implications of this decision for developers and the broader app ecosystem.

“The Supreme Court denied both sides’ appeals of the Epic v. Apple antitrust case. The court battle to open iOS to competing stores and payments is lost in the United States. A sad outcome for all developers,” he said.

As the dust settles, these changes are expected to reshape the dynamics of app development and distribution, offering developers increased flexibility in their payment options within the Apple ecosystem.

However, Sweeney pointed out that “Apple has introduced an anticompetitive new 27% tax on web purchases,” noting that the company has never taken the anticompetitive step before.

“Developers can’t offer digital items more cheaply on the web after paying a third-party payment processor 3-6% and paying this new 27% Apple Tax,” he said.

Apple Beats Samsung, Secures Top Spot in Global Smartphone Shipments for the First Time

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In a landmark triumph, Apple has secured the top spot in global smartphone shipments for the first time, outpacing its long-standing rival Samsung, according to IDC’s Worldwide Quarterly Mobile Phone Tracker.

While acknowledging the preliminary nature of the data, a parallel report from Canalys reaffirms Apple’s dominance in smartphone shipments for the entirety of 2023. IDC’s figures indicate that Apple shipped a total of 234.6 million mobile devices, surpassing Samsung’s 226.6 million units. Xiaomi, Oppo, and Transsion complete the top five, shipping 145.9 million, 103.1 million, and 94.9 million smartphones, respectively.

This significant accomplishment marks a notable shift in the dynamics of the smartphone industry. IDC points out that Samsung last relinquished the top spot 13 years ago in 2010, with Nokia leading the market at the time. LG Electronics, ZTE, and Research in Motion (manufacturers of BlackBerry devices) rounded out the top five, with Apple conspicuously absent. This historical context underscores the industry’s rapid transformation over the past decade.

Nabila Popal, Research Director at IDC’s Worldwide Tracker team, commented on Apple’s exceptional position, stating, “Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever.” Popal attributes Apple’s ongoing success to the surging demand for premium devices, constituting over 20% of the market. Aggressive trade-in offers and interest-free financing plans have significantly fueled the appetite for these high-end devices.

However, Apple’s ascent to the top was not without formidable competition, primarily from other Android manufacturers such as Huawei, OnePlus, Honor, and Google. Huawei, in particular, poses a potential threat to Apple’s continued growth, especially in the crucial Chinese market. Despite facing US sanctions, Huawei exhibited resilience by incorporating an advanced 7nm processor capable of 5G speeds into its Mate 60 Pro smartphone.

Canalys highlighted the challenges Apple might face in the Chinese market due to Huawei’s “improving strength.” The report suggests that Huawei’s advancements, including overcoming US sanctions and integrating cutting-edge technology into its smartphones, could pose a hurdle to Apple’s expansion in China. The Chinese market, known for its scale and influence, remains a critical battleground for smartphone manufacturers.

While Apple’s global achievement is commendable, the broader smartphone market experienced a 3.2 percent decline in shipments in 2023 compared to 2022.

However, signs of recovery are evident. IDC reports an 8.5 percent year-on-year growth in shipments during the fourth quarter, and Canalys indicates an 8 percent growth after seven consecutive quarters of decline. These positive trends suggest a potential rebound in the smartphone industry, driven by technological advancements, shifting consumer preferences, and recovering global economies.

As Apple basks in the glory of this feat, the company remains cognizant of the challenges ahead, particularly in the competitive Chinese market. The smartphone industry is poised for further transformations and innovations, and Apple’s ability to scale through the challenges will significantly determine whether it will retain the top spot.

[Public Invitation] Winning In Nigeria, Africa With Startups Of The Future | Tekedia Unicorn Hour | Jan 20

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Tekedia Capital is excited to invite the general public to Tekedia Unicorn Hour – for the wealth of families and firms.  It is a free, open event, and everyone’s invited.  Details below:

  • Topic: Winning in Nigeria, Africa with Startups of the Future (with Q/A)
  • Date: Saturday, Jan 20, 2024
  • Time: 4-5pm WAT
  • Speaker: Ndubuisi Ekekwe
  • Venue: Zoom link

About Tekedia Capital: Tekedia Capital offers a specialty investment vehicle (or investment syndicate) which makes it possible for citizens, groups and organizations to co-invest in innovative startups and young companies in Africa and around the world. Capital from these investing entities are pooled together and then invested in a specific company or companies. To learn about Tekedia Capital, and possibly join the Syndicate, click here.