Wednesday, June 8, 2022

Axios Login: Apple's long game

Plus: Fewer videogame players | Wednesday, June 08, 2022
 
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By Ina Fried · Jun 08, 2022

Join Axios' Alexi McCammond and Tina Reed tomorrow at 12:30pm ET for a virtual event examining the impact of misinformation on public health and climate action. Guests include White House national climate adviser Gina McCarthy and the NIH's Eliseo J. Pérez-Stable. Register here.

⛔️ Situational awareness: Microsoft is considerably reducing its business in Russia, joining other leading tech companies who have scaled back operations amid the country's ongoing invasion of Ukraine, Bloomberg reports.

Today's newsletter is 1,078 words, a 4-minute read.

 
 
1 big thing: Apple is still playing the long game
Photo of iPhone screen with thumb of user scrolling between lock screen options

Screenshot: Apple WWDC keynote video

 

Apple-watchers viewing the company's Monday developer's conference keynote were disappointed that the company failed, once again, to unveil a world-changing new headset device, or even acknowledge that one was on the way, Axios' Scott Rosenberg writes.

They forgot a key principle Apple operates by: It never makes the first move in a new product category. Instead, it waits for just the right moment to bring that new product to a broad consumer market.

The big picture: It's a wide-open secret that Apple has been working on a headset or smart goggles product to serve as its entrant in the battle to define and control the next big platform after the smartphone.

  • The company has commissioned Hollywood directors such as Jon Favreau (a producer of "Prehistoric Planet" on Apple TV+) to create content for its goggles, the New York Times reported Saturday.

The long-rumored headset product has become a more urgent priority for Apple as its rivals have ramped up efforts in this area.

  • Facebook changed its name to Meta last year and is rebuilding its entire identity around a push into the 3D metaverse led by the company's VR headsets, like Quest.
  • Google was one of the first entrants into the augmented reality market with Glass. Microsoft's expensive HoloLens has been one of the more advanced contenders.

Yes, but: Apple has never rushed into a market just to be first.

  • The iPhone's unveiling came after years of successful — but not blockbuster — products from other firms in the cellphone-meets-computing category, such as those from Palm, BlackBerry and Danger.
  • Microsoft shipped tablets well before Apple's iPad launched.
  • The iPod arrived well after many other companies had tried to sell MP3 players — but failed to develop easy-to-use interfaces paired with generous storage.

Over the years, Apple, following the Steve Jobs playbook, has perfected the fine art of timing new products.

  • It seeks just the right moment when the power of the available chips, the cost of components and advances in materials combine to bring some new capability to life that might dazzle buyers.
  • If those stars don't align, the product doesn't ship. Apple is happy for other companies to take the "bleeding edge" blows.

The flip side to this is that Apple can go for long dry stretches without the release of a big-deal new device — and sometimes, despite the rumors, it never ends up pressing the launch button.

  • After long years of exploration, Apple never ended up shipping its own TV set, and now it probably never will.
  • Apple projects aimed at producing its own auto or autonomous vehicle have borne no substantial fruit to date.

All this caution can leave Apple at times appearing to tread water with relatively modest tweaks to its existing line.

  • That's how it looked Monday, as the company released a parade of incremental improvements and small tweaks to existing product lines.
  • Look! You'll soon be able to change the font on the clock on your iPhone lock screen! And here's yet another in a long list of Mac tools for organizing your open windows in ever more intricate ways!

Apple doesn't care that you're not impressed or that you're impatient. It will release its goggles when it's good and ready — not a minute, or a year, before.

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2. Gamer count in U.S. dips after pandemic surge
An illustration of a keyboard with red white and blue lights to resemble and American flag

Illustration: Aïda Amer/Axios

 

The number of Americans who play video games declined slightly in 2022, likely due to the phasing out of pandemic-oriented lockdowns, as Axios' Stephen Totilo reports.

Driving the news: According to fresh data from the Entertainment Software Association, 216 million Americans are playing video games at least one hour per week this year, compared with 227 million for 2021.

  • The 2021 figure is still an increase from early 2020's 214 million.
  • The latest U.S. Census figures, from July 2021, put the country's population at 332 million.

What they're saying: "We actually view it as a good thing, as people are getting out, people are enjoying life, but people are still enjoying games," ESA president Stanley Pierre-Louis told Axios.

  • Pierre-Louis said the slight drop lined up with assessments of big game companies. Many of those are reporting lower sales compared to during the worst of the pandemic but still elevated numbers from before COVID-19.

By the numbers:

  • 48% of U.S. gamers identify as female, up from 45% the year prior.
  • Also on the rise are parents who play games with their kids (77% of American parents, up from 55% two years ago).
  • The average age is 33, up from 31 (Pierre-Louis noted that there are once again more gamers 45 and up than those under 18).
  • U.S. gamers spend, on average, 13 hours playing each week.
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3. Short takes: Uber and Waymo bury the hatchet

1. Uber and Waymo announced a deal Tuesday that will see them working together in the world of autonomous truck driving.

  • The intrigue: The partnership comes only a few years after the two companies settled a fierce legal battle over allegations of corporate espionage. As the Verge opined, "Time really does heal all wounds."

2. IBM has begun laying off its entire Russian workforce as the company ends its operations in the country.

3. Twitter told employees it wants to increase its daily active users by a record 13 million people this quarter, Reuters reported.

  • Between the lines: The company wants to show Wall Street and would-be buyer Elon Musk that it still knows how to grow.
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4. Take note

On Tap

  • Apple's WWDC continues with sessions for developers online today through Friday.
  • Bloomberg is hosting a daylong tech summit in San Francisco (and online).
  • It's my mom's birthday. Happy birthday, Mom! (This counts as a card, right?)

Trading Places

  • Alex Kipman, co-creator of the HoloLens mixed reality headset, is leaving Microsoft. His departure is part of a broader reorganization but also comes after Insider reported on misconduct allegations made against Kipman.
  • Corporate finance platform Rho has hired former Airbnb and DOJ attorney Alexa Summer as its chief legal officer.

ICYMI

  • Ukrainian citizens are helping their army via smartphone apps, but the practice has blurred the line between civilians and combatants. (Wired)
  • The Jan. 6 committee is reportedly seeking Twitter employees' internal communications about moderating tweets related to the Capitol insurrection, and the social media giant is fighting the request. (Rolling Stone)
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5. After you Login

In a world filled with camouflaging stick insects, this little guy refuses to blend in. You do you, little bug!

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A message from Zscaler

Zscaler sets the standard for zero trust
 
 

Industry leaders and analysts agree that Zscaler offers the world's largest, easiest to use and most mature zero trust platform.

The takeaway: Reduce attack surface, cost and complexity with the Zscaler Zero Trust Exchange™ platform.

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