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APPLE IS SET TO EMBRACE AN IPHONE CHARGER CHANGE IT DIDN’T WANT

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The iPhone 14 Pro with current Lightning connectors.

Photographer: Nic Coury/Bloomberg
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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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