And what that tells us about the fate of Apple in China... That meant I was almost certainly a secondary or even tertiary receiver of the phone — China’s gift-giving culture is all about regifting — but back then, the Apple brand carried enough cachet that my father’s friend still saw it as good enough to give a close friend’s daughter, if not quite prized enough to present to a business partner... the news just confirmed what we already knew: China’s domestic brands have made huge strides in the years since 2012, creating new features and products that take into account what Chinese users want, for a small fraction of the price. Apple, meanwhile, has mostly failed to localize or reinvent itself, on the assumption that global cachet would be enough.
The homegrown groundswell began with a little-known brand called Xiaomi, which burst onto the scene in the early 2010s as one of the first brands in China to have its own operating system, and offered high-speed processing on the cheap. At first it appeared to cater to a completely different market than Apple. Selling entirely online, Xiaomi offered both a low-end model — the Redmi for as low as 699 yuan (then under $150) — and a higher-end model that was still far cheaper than the cheapest iPhone (less than 2,000 yuan, then under $350).
But with time, the useful features on Xiaomi products, as well as those of its competitors like Huawei and OPPO, combined with the price, began to outweigh the increasingly limited glamour of the iPhone. I myself transitioned to a high-end Xiaomi from an iPhone in early 2014 after a young professional friend of mine, who worked in marketing in Shanghai, raved about the Xiaomi Mi Note, which is one of the big-screen models, or “phablets,” that have long been popular in China and East Asia, where many prefer the bigger screens — Huawei’s latest measures a whopping 7.2 inches — ideal for taking selfies and watching TV dramas. (Apple released its Plus series in late 2014 with larger handsets, which did send its sales shooting up in China — but also added $100 to an already expensive price tag.)
Apple also long resisted the rise of another important local feature: the dual SIM card system, a component that may sound boring but for Chinese people has become essential. In China, where many young people have never owned laptops, phones have become all-in-one devices — part television, part computer, part phone. Transitioning between two SIM cards on all other cell brands is a seamless process: one card for streaming and downloading at cheaper rates, the other one for making calls. Growing international tourism has also raised demand for phones that can accommodate a second, foreign SIM — and yet for years, Apple didn’t budge. The company finally gave in to the dual SIM card in the form of special models for China and Hong Kong last fall.
It’s telling that the main example of Apple localizing its products to China in the last few years was a special model gold-colored iPhone. First introduced in 2013, it was a clear play for the Chinese market, and was, admittedly, a huge hit on the mainland. Many joked that the gold iPhone was targeted at the tuhao, a recent term that roughly translates as “tasteless nouveau riche” and that mockingly refers to the wealthy who feel the need to show off. The color was even given the name tuhao jin, or tuhao gold.
But the allure of gold-colored plating — a feature focused not on user experience but aesthetics — goes only so far, it seems. And it may not be enough at this point to keep even the tuhao loyal. Huawei, China’s largest smartphone maker by market share, recently overtook Apple to move to second place globally. Its popularity among the wealthy and business class at home has shot up in recent years; its prices have been steadily rising as it shifts focus toward higher-end products. Many upper-middle-class Chinese who once owned iPhones have since switched to Huawei — including my dad.
So if I were a spymaster in the employ of a hostile foreign service, I’d devote some significant effort to penetrating one specific private institution: Fox News Channel.
.. It’s no secret that Fox News — specifically, shows such as “Hannity,” “Fox & Friends,” “Tucker Carlson Tonight” and “Justice with Judge Jeanine” — have outsize influence on the inner workings of how certain policies are carried out by the U.S. government.
.. Mediate recently argued that the most influential people working in the media today are “Fox & Friends” hosts Steve Doocy, Brian Kilmeade and Ainsley Earhardt, because “they have captured the President’s attention — which often then gets tweeted and covered by the media — the topics they cover essentially set the national agenda for the rest of the day.”
.. When Fox News broadcasts, the president often reacts impulsively. His tweet threatening North Korea with his “Nuclear Button” at 7:49 p.m. last Tuesday appeared to have been spurredby a Fox News segment on the very same topic that occurred 12 minutes beforehand
.. The Kremlin has indicated that Russian President Vladimir Putin reads Trump’s tweets and views them as official White House statements. Pakistan recently summoned the U.S. ambassador in Islamabad to account for Trump’s tweet bashing what he called the country’s “lies & deceit.”
.. Trump’s unfiltered Twitter feed provides world intelligence operatives with “a real-time glimpse of a major world leader’s preoccupations, personality quirks and habits of mind” — traits to be exploited in further dealings on the global stage.
.. A truly aggressive intelligence effort would not just monitor what’s being said on the network. It would target the on-air talent, as well as the folks behind the scenes who make the network’s programming possible: producers, bookers, associate producers, production assistants and the like.
.. Trump reportedly calls Sean Hannity after his show. If hostile foreign services compromise Hannity’s phone (or place a listening device in the room where Hannity takes his private calls), that could provide real-time intelligence on the American president and his thoughts.
.. For Russian intelligence, a systematic effort to threaten, coerce and co-opt journalists is a decades-old practice.
.. Kalugin wrote that the KGB’s Tumanov helped spread rumors and disinformation within Radio Liberty for years, turning staff against each other and identifying further potential targets for recruitment. He even had a hand in the bombing of Radio Liberty’s headquarters in Munich in 1981.
.. Compared to government workers, Fox employees would make easy targets.
.. Also, it’s television — full of trade secrets, big personalities and titanic egos. Most wouldn’t expect to be compromised by a hostile intelligence power, especially on American soil.
.. Few, if any, have the sort of counterintelligence training the U.S. government administers to people in sensitive positions
Apple’s newest iPhone is expected to have components that cost about 80% more than the components in the iPhone 7, including an edge-to-edge, organic light-emitting diode, or OLED, display, wireless charging and new sensors
.. If consumers take the new price points in stride, Apple and Samsung could widen their advantage over hundreds of smartphone rivals, many struggling to break even. Apple and Samsung claim nearly all the industry’s combined annual profits, with about 79% for Apple and 15% for Samsung
.. The two are defying the gravity that usually pulls consumer prices downward as innovation wanes and manufacturing costs fall. For example, average prices for TVs and laptops have fallen about 50% from their respective peaks over the past 15 years, to $467 for TVs and $598 for laptops
In Apple’s case, the evidence shows, the company has a patent for technology designed to prevent texting while driving, but it has not deployed it.
.. Generally, companies have taken the position that text-blocking technology is embryonic and unreliable. They argue that they cannot shut down a driver’s service without the potential of mistakenly shutting off a passenger’s phone or that of someone riding on a train or bus.
.. Even if the technology worked to perfection, would people accept having their service blocked? After all, the idea of mobile phone service is to let people communicate on the go.
.. Apple says it has taken other steps to address distracted driving. Its CarPlay integrates with some cars so drivers can use voice commands to control some functions of the car and the phone, including letting them orally compose text messages and listen to incoming ones. The technology, Apple says, “allows you to stay focused on the road.”
.. Further, she said, it wouldn’t make sense to turn off all phone functions, like maps or navigation, that drivers rely on.