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iPhone to share the spotlight with services at Apple's big event
By Glenn CHAPMAN
San Francisco (AFP) Sept 8, 2019

Apple: Security report on iPhone hack created 'false impression'
San Francisco (AFP) Sept 6, 2019 - Apple hit back Friday at a Google research report suggesting iPhones may have been targeted by a long-running hacking operation, calling it inaccurate and misleading.

Apple spokesman Fred Sainz said in a statement the research released by Google created a "false impression" that large numbers of iPhone users may have been compromised.

Sainz said that contrary to what Google claimed, the incident was a "narrowly focused" attack which affected "fewer than a dozen websites that focus on content related to the Uighur community, an ethnic minority in China.

"Regardless of the scale of the attack, we take the safety and security of all users extremely seriously," he wrote.

"Google's post, issued six months after iOS patches were released, creates the false impression of 'mass exploitation' to 'monitor the private activities of entire populations in real time,' stoking fear among all iPhone users that their devices had been compromised. This was never the case."

Researchers with Google's Project Zero security taskforce said last week that an "indiscriminate" hacking operation that targeted iPhones used websites to implant malicious software to access photos, user locations and other data.

"Simply visiting the hacked site was enough for the exploit server to attack your device, and if it was successful, install a monitoring implant," said Project Zero's Ian Beer.

Sainz said Apple believes that the website attacks were operational for roughly two months, not two years as Google implied.

"We fixed the vulnerabilities in question in February -- working extremely quickly to resolve the issue just 10 days after we learned about it," Sainz said.

"When Google approached us, we were already in the process of fixing the exploited bugs. Security is a never-ending journey and our customers can be confident we are working for them."

The iPhone will be front and center at Apple's upcoming media presentation even as the California tech giant steps up its efforts in content and services for its devices.

In its trademark, tight-lipped style, Apple disclosed little about its plans for Tuesday's event at its headquarters in the Silicon Valley city of Cupertino.

For years now, Apple has hosted events in the fall to launch new iPhone models ahead of the holiday shopping season.

Speculation is that Apple will introduce three upgraded iPhones, including "Pro" models, and a successor to its more affordable iPhone XR, as premium handset prices hover around $1,000.

Some analysts say services, subscriptions and online content will share the stage with the company's glitzy hardware as Apple seeks to shift its focus.

"I think it is going to be the first year the event is going to also be about services," Creative Strategies analyst Carolina Milanesi said.

"We might get to see what Apple looks like as a company when they are talking about services and hardware as one product."

Milanesi was curious to see whether Tuesday's presentation includes offers iPhone deals that "bundle" music, television or game services with new handsets.

"You have an opportunity to really bring value to the hardware with services," Milanesi said.

- TV+ turned on? -

Apple recently released a smartphone-generation credit card in the US and is keen to launch its TV+ streaming service before Disney goes live with a rival service in November.

Many wonder whether the launch of Apple TV+ will be among Tuesday's announcements.

With Hollywood stars galore, Apple unveiled streaming video plans along with news and game subscription offerings as part of an effort to shift its focus to digital content and services to break free of its reliance on iPhone sales.

The company also plans to launch a new game subscription service called Apple Arcade internationally by the end of this year.

Apple managed to grow its overall revenues, albeit by a modest one percent, to $53.8 billion, even as iPhone revenues plunged nearly 12 percent in the April-June period.

The company delivered strong growth from digital content and services that include its Apply Pay and Apple Music, along with wearables and accessories like the Apple Watch and Air Pods.

Some of those accessories could also get upgrades on Tuesday.

- China wild card -

Analysts warn that Apple still faces challenges as rivals chip away at the smartphone market, in which the iPhone's share is less than 12 percent.

As the iPhone maker refines its handsets, other makers are pushing into new areas such as 5G devices and folding smartphones.

Wedbush Securities analyst Dan Ives said in a note to investors that he expected a "trifecta of iPhone 11s" that will help the company "put a fence around" its user base.

About a third of the 900 million iPhone users around the world are in an upgrade "window," meaning a strong potential for handset sales, according to Ives.

"While China remains a wild card, we are bullish into Apple's future" in the coming year, Ives said.

China accounts for about 17 percent of Apple sales overall, and has tremendous room for growth, according to Techsponential analyst Avi Greengart.

The trade war between the US and China has complicated Apple's effort to gain ground in that market, where gains by local titan Huawei have come partly at the California-based company's expense.

"Apple needs Chinese consumers to treat the iPhone as a preferred premium brand at a tricky geopolitical moment," Greengart said.

"Huawei's premium smartphone, laptop, and tablet sales have been surging inside China partly based on nationalism as a response to the trade war with the US and specific US government actions against Huawei."


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