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Photographer: Nic Coury/Bloomberg FacebookTwitterLinkedInEmailLink GiftGift this article Have a confidential tip for our reporters? Get in Touch Before it’s here, it’s on the Bloomberg Terminal Bloomberg Terminal LEARN MORE FacebookTwitterLinkedInEmailLink Gift By Mark Gurman September 3, 2023 at 3:00 PM GMT+2 Apple is set to shift its iPhone charging port from Lightning to USB-C after pushing back on such a change for years. Also: The company confirms the date of its Sept. 12 iPhone 15 event and aims to overhaul device production with 3D printers. Finally, Apple is developing a more laptop-like Magic Keyboard for the iPad and finishing up work on iOS 17. Last week in Power On: Apple plans a revamped iPad Pro to reignite sluggish tablet sales. Paid subscribers got to hear about plans for the iPhone SE and why Apple isn’t putting the latest chips in its non-Pro iPhones. THE STARTERS Expand Lightning and USB-C cables against an iPhone.Photographer: Jakub Porzycki/NurPhoto via Getty Images If Apple Inc. had its way, the iPhone would continue to use the current Lightning connector for the next few years — until the point when the company is ready to begin phasing out ports on its smartphones altogether. But the European Union forced its hand, requiring mobile device makers to use the USB-C standard by the end of next year. So Apple is now in the awkward position of embracing the very technology it didn’t want. When the company introduces the iPhone 15 on Sept. 12, USB-C connectors will appear on its four new phone models, as well as the AirPods Pro, and Apple will describe it as a major win for customers. Get ready to hear the myriad benefits of the change: * Customers will be able to use a single charging cable for iPhones, Macs and iPads. * It will bring breakthrough data transfer speed increases for the new high-end iPhone models. * Phones will charge faster in some instances. * And, finally, the phones will be compatible with chargers used by billions of non-Apple devices. Why will Apple be so upbeat about a change it didn’t ask for? That’s because the company has an iron-clad rule: When it’s introducing a new product or dealing with the media, it always wants to operate from a position of strength. Apple’s keynote presentation won’t mention the European Union or make reference to the many times over the past few years that it criticized the government’s decision to require USB-C. Back when it was still resisting the switch, Apple laid out a few arguments, including that the change would harm the environment — given that billions of obsolete cables may wind up in a landfill. Another rationale, floated by Apple marketing chief Greg Joswiak last year, is the potentially harmful precedent of governments influencing product design. Expand The shift from the iPod connector (right) to Lightning (left) in 2012.Photographer: Simon Dawson In this case, we’re talking about a relatively minor tweak (and it’s a switch that many users have been clamoring for), so the move isn’t that painful for Apple. The company also could have limited the USB-C switch to iPhones in Europe, but that would have created enough additional supply chain problems and consumer confusion that it probably wasn’t worth it. Still, there were definitely some drawbacks to making the change: * Apple stands to lose some licensing revenue from accessory makers that used Lightning. * It has to devote engineering resources and money to the switch. * Increased compatibility with the Android ecosystem may make it easier for customers to defect from Apple. * And there’s always the risk of a PR nightmare. When Apple shifted to Lightning in 2012, users cried foul. There also was outrage when the company removed the headphone jack in 2016. When accessory makers build third-party speakers, adapters, car accessories and other peripherals that include a genuine Lightning connector, they need to apply to Apple’s Made for iPhone (MFI) program for certification. That approval is necessary to be sold through Apple’s official retail channels, and the company charges money for the privilege. Over the last decade, a gigantic Lightning accessory ecosystem has built up globally, with Apple likely pulling in tens of millions of dollars per quarter from licensing fees. There have been indications that Apple plans to limit charging speeds and features on unapproved USB-C accessories — a move that would steer consumers toward MFI versions. But given how widespread USB-C peripherals are, the switch seems likely to reduce Apple’s income from royalties. In early 2022, I reported that Apple had begun testing iPhones internally with USB-C ports and that it was working on accessories and adapters to support a switch in 2023. The swap required a supply chain reshuffling, as well as changes to the iPhone itself and the device’s software. That’s money that could have been spent elsewhere. Expand iPhones on MagSafe chargers.Photographer: Brent Lewin/Bloomberg Though USB-C’s compatibility with other devices will be sold as a benefit, it has a downside for Apple. In a few years, iPhone 15 users will have an easier time switching to some hot new Android device because they’ll already have accessories that work with it. (In this same vein, that’s why Apple has refused to release iMessage for Android or support the RCS texting standard.) Lastly, Apple never wants a PR debacle, and the switch to USB-C has the potential to be just that. Customers will suddenly find that their hoards of cables, dongles, in-car chargers and other accessories no longer work with their new iPhone — unless they get an adapter. Sure, it’s been more then a decade since Apple last changed the charging port, back when the iPhone 5 launched with Lightning in 2012. But it’s unclear if most customers will consider that a good enough run. Apple will do its best to mitigate those concerns. It will include a USB-C cable in the box, and it’s been pushing MagSafe and other forms of inductive charging for several years. It also can make sure there are plenty of adapters that convert Lightning to USB-C, helping make the transition as seamless as possible. But one headache seems unavoidable. Even if Apple includes a USB-C cord with every new iPhone, users will need a compatible charging brick. And that’s unlikely to be part of the package. Apple stopped putting chargers in iPhone boxes with the release of the iPhone 12 in 2020. The year before, the company included a charging brick with a USB-C port as part of the iPhone 11 Pro package. The iPhone 11s also had a brick, but one featuring an old-school USB 2 port — the same accessory that was included with earlier iPhones. That means anyone currently using a charger sold with an iPhone 11 or earlier model will need to buy a new brick that has a USB-C port (or buy a cable that converts USB 2 to USB-C). There are probably loads of people in that situation. And that’s really the main group — other than customers with lots of Lightning accessories — that will be most up in arms about the switch. THE BENCH Expand Stainless steel Apple Watch.Photographer: David Paul Morris/Bloomberg Apple plans to start 3D-printing its device enclosures to speed up manufacturing and improve sustainability. In what portends to be one of the most significant changes to Apple’s supply chain in years, the company is testing the use of 3D printers to manufacture the body of its devices. The system saves a large percentage of metal because the company will print the enclosure size it needs, rather than having to chop down huge slabs of material. The process requires high-end metals like stainless steel and titanium, so Apple is trying it out first this year with the steel Apple Watch Series 9. It aims to expand the effort to the titanium Apple Watch Ultra next year. One day, the approach could even come to iPhones and iPads. Expand iPad Pro with a Magic Keyboard.Photographer: Brendon Thorne/Bloomberg Apple plans a more laptop-like Magic Keyboard for the iPad. Last week, I wrote that Apple is planning a revamped Magic Keyboard — its combined keyboard and trackpad accessory — to launch alongside the next iPad Pros next year. We already know that the new accessory will have a larger trackpad to be more Mac-like, and now I’ve learned that the redesign will be even more extensive. For the first time on a Magic Keyboard, the top case — the area around the keyboard itself — will be aluminum, matching recent Mac laptops. The new approach will make the accessory feel more like a premium product, with the Mac’s aesthetic. The switch to aluminum also gives the keyboard a sturdier structure: The older, flimsier version was prone to bending and even tearing at the edges. I’m told that, when closed, the exterior shell of the Magic Keyboard will retain the cover material of the current model. It will also continue to have one USB-C port. Aluminum is a lightweight material, so the new model shouldn’t be much heavier. But I have to wonder if the change will lead Apple to raise the $300 starting price. Expand Apple’s iOS 17.Source: Apple Apple finishes up iOS 17. This past week, the company put out the eighth beta versions of iOS 17, iPadOS 17 and watchOS 10. The quick succession of releases for the sixth, seventh and eighth betas tells us that Apple is fast approaching the finish line. The company needs to complete the software in time to start installing it on iPhone 15 models coming off the assembly line. Indeed, I am told that, bearing any unforeseen circumstances, the company is considering the eighth beta test as the final version of iOS 17.0. And, in a shift from last year, it sounds like iPadOS 17.0 will arrive simultaneously with the new iPhone software. THE SCHEDULE Expand Photographer: Apple Inc. Sept. 12: Apple’s iPhone 15, watch and AirPods event. As we expected, Apple’s big September event is taking place on Tuesday the 12th. The presentation will provide the first look at the iPhone 15 and Apple Watch Series 9, as well as the second Ultra version of the watch. The event may not be quite as groundbreaking as Apple’s June unveiling of a whole new product category, the Vision Pro. But the iPhone and Apple Watch generate a lot more money, for now at least. Together, they account for the majority of Apple’s sales. Expand The Amazon HQ2 campus in Arlington, Virginia.Photographer: Nathan Howard/Bloomberg Sept. 20: Amazon’s annual new devices event. The e-commerce giant will be holding its annual new device showcase about a week after Apple’s. Look for a more muted set of announcements this time around, with nothing as attention-grabbing as the original Echo or Astro home robot. Behind the scenes, Amazon’s devices division is in turmoil, with sales declining and its chief poised to leave the company. The business hasn’t been as innovative lately and — like other parts of Amazon — had some layoffs. With all that going on, the products getting unveiled are probably going to be a bit more ho-hum. But this year’s event will have at least one wrinkle: In a shift, it will take place at Amazon’s second headquarters, or HQ2, in Arlington, Virginia. Expand The Google Pixel 7a smartphone.Photographer: David Paul Morris/Bloomberg Oct. 4: Google’s Pixel 8 and Pixel Watch 2 event. In case the Apple and Amazon events weren’t enough, Google has its product showcase planned for New York City in early October. Stay tuned for the second-generation Pixel Watch, new Fitbit-related announcements, and, of course, the Pixel 8 and Pixel 8 Pro phones. The heavily leaked Pixel 8 includes a new design for the camera bar on the back, a third-generation custom Google chip and new AI features for photography. POST GAME Q&A Q: What happened to Apple releasing a jumbo iPad (over 13 inches)? Q: What other features will the latest AirPods have besides a USB-C connector? Q: What do expect in terms of the iPhone 15 Pro’s colors? Email me, ask on the Power On Discord, or you can always send me a tweet or DM @markgurman. I’m on Signal at 413-340-6295; Wickr and Telegram at GurmanMark; or ProtonMail at markgurman@protonmail.com. 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