Google’s Antitrust Loss, Why Apple Doesn’t Just Build a Search Engine, and What Comes Next

By John Voorhees

Yesterday, Federal District Judge Amit Mehta issued a ruling in the U.S. Justice Department’s antitrust case against Google in favor of the government. Judge Mehta didn’t mince words:

Google is a monopolist, and it has acted as one to maintain its monopoly. It has violated Section 2 of the Sherman Act.

The Judge further explained his ruling:

Specifically, the court holds that (1) there are relevant product markets for general search services and general search text ads; (2) Google has monopoly power in those markets; (3) Google’s distribution agreements are exclusive and have anticompetitive effects; and (4) Google has not offered valid procompetitive justifications for those agreements. Importantly, the court also finds that Google has exercised its monopoly power by charging supracompetitive prices for general search text ads. That conduct has allowed Google to earn monopoly profits.

It’s a long opinion, coming in at nearly 300 pages, but the upshot of why Judge Mehta ruled the way he did is summed up nicely near the beginning of the tome:

But Google also has a major, largely unseen advantage over its rivals: default distribution. Most users access a general search engine through a browser (like Apple’s Safari) or a search widget that comes preloaded on a mobile device. Those search access points are preset with a “default” search engine. The default is extremely valuable real estate. Because many users simply stick to searching with the default, Google receives billions of queries every day through those access points. Google derives extraordinary volumes of user data from such searches. It then uses that information to improve search quality. Google so values such data that, absent a user-initiated change, it stores 18 months-worth of a user’s search history and activity.

If you’re interested in how web search works and the business deals that drive it, the opinion is a great primer. Plus, although the details already dribbled out over the course of the 10-week trial, there are lots of interesting bits of information buried in there for anyone interested in Apple’s search deal with Google.

Designing for Today’s App Interactions →

Linked By John Voorhees

Yesterday, Vidit Bhargava, the developer of LookUp, Word of the Day, and other apps, published an excellent story on Pixel Posts about designing for today’s app interactions. Vidit makes the excellent point that the way we use apps is changing. They’re no longer iPhone-only islands that are siloed off from other apps and devices. As Vidit explains:

Not only is the iPhone app not the center of a user’s interaction on the phone. It’s increasingly becoming one of the many parts of an ecosystem where apps are expected to scale both in terms of interface and functionality starting from something as small as an Apple Watch and going all the way up to an unbounded experience like Vision Pro.

Not only do apps exist in the larger ecosystem of products, they are constantly interacting and communicating between them.

I couldn’t agree more. Today, I expect apps to be available on every device I use and to let me move my data between apps.

Vidit also explores the practical effect of the evolution of apps, arguing that it no longer makes sense to start by designing for the iPhone. Instead, Vidit suggests that we:

…think of “apps” as clusters of actions that help us reach or present information, and carry out processes (i.e. other actions).

The post is full of practical examples that are worth browsing through and an exploration of how to effectively design for actions. Vidit’s apps are among the best-designed apps I use, so I consider this post is a must-read for developers, designers, and anyone who is interested in where app design is heading.

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The Latest from Magic Rays of Light, Comfort Zone, and MacStories Unwind

By John Voorhees

Enjoy the latest episodes from MacStories’ family of podcasts:

This week on Magic Rays of Light, Sigmund and Devon are joined by developer Devin Davies to chat about Crouton, summer movie snacks, and more. They also highlight the debut of Women in Blue and recap season one of Presumed Innocent.

This week, on Comfort Zone, Matt is leaving Unread, Chris is gaming on the go, and Niléane brings an addictive drug you can download from the App Store. Oh yeah, and there are several terrifying reveals, too.

This week on MacStories Unwind, I am joined by Devon Dundee to talk about media tracking strategies and share three TV series picks.

Apple Reports Q3 2024 Financial Results

By John Voorhees

Last quarter, Apple reported revenue of $90.8 billion, which was a 4% year-over-year drop. The decline reflected weak iPhone sales in China, which were somewhat mitigated by increases in the company’s services business.

Today, third-quarter earnings are out and Apple reported revenue of $85.8 billion, a 5% year-over-year gain.

Quarterly Revenue.

According to Apple CEO Tim Cook:

Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago. During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.

Revenue by region.

Going into today’s earnings call, Reuters reported that analysts expected a 2.2% decline in iPhone sales, which is substantially less than the 10.5% decline the previous quarter. The same report also explained that analysts expect the iPhone 16 to sell well this fall, driven, in part, by iOS’s upcoming artificial intelligence features.

Services revenue continues to grow.

This fall will be an interesting one for the iPhone. Many of the Apple Intelligence features that were shown off at WWDC are unlikely to ship with the iPhone 16. That could have a negative impact on the bump in iPhone 16 sales that analysts are expecting. However with iOS 18.1 already in developer beta, I expect Apple will be able to deliver enough of its promised AI features to keep Wall Street happy for another quarter.

Developers Claim Apple Arcade is ‘Directionless’→

Linked By John Voorhees

Earlier this year, Neil Long of mobilegamer.biz published an inside look at Apple Arcade from game developers’ perspectives. The story reflected developers’ frustration stemming from their interactions with Apple, project cancelations, declining revenue, and more. The story didn’t paint a pretty picture.

This week, Long is back with a follow-up story that cites anonymous developer sources, claiming that developers have to wait months for payments, Apple is slow and unresponsive to support requests and other inquiries, and the Vision Pro struggles to run ‘complex’ games.

The list of problems cited is long and worth reading in full because it has led some of Long’s sources to conclude that they’re symptoms of a more fundamental problem:

…[J]ust like last time, most developers agreed that Apple sees games and game developers as a ‘necessary evil’, and that Arcade appears to be directionless and lacking in support from the rest of the tech giant.

“Arcade has no clear strategy and feels like a bolt-on to the Apple company ecosystem rather than like it is truly supported inside the company,” said one source. “Apple 100% does not understand gamers – they have little to no info on who plays their games that they can share with developers, or how they interact with games on the platform already.”

It’s important to take the complaints of unnamed sources with a grain of salt. However, it’s impossible to look at what’s going on with Arcade and App Store gaming in general – which Brendon and I discussed on NPC: Next Portable Console this week – and not conclude that Apple needs to shake up its approach to videogames.

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The Latest from NPC: Next Portable Console

By John Voorhees

Enjoy the latest episodes from MacStories’ family of podcasts:

In the latest episode, Brendon and John go it alone without Federico with Powkiddy V10 follow-up, a report on Brendon’s first week with the Nothing CMF Phone 1 and a first look at the Ayn Odin2 Mini. Along the way, they also consider the less-than-stellar sales of AAA games on the iPhone, Analogue’s spendy aluminum Pocket, and the Xreal Beam Pro, before veering into a philosophical discussion of gaming on phones versus dedicated devices, comparing notes on their Miyoo Mini A30 setup experiences, and mulling over whether to start modding handhelds.

The Latest from Magic Rays of Light, Comfort Zone, and MacStories Unwind

By John Voorhees

Enjoy the latest episodes from MacStories’ family of podcasts:

This week on Magic Rays of Light, Devon is joined by guest co-host Jonathan Reed to discuss Jonathan’s first impressions of Apple Vision Pro, new Apple Original documentary series Omnivore, 72 Emmy Awards nominations for Apple Originals, and Devon’s experience seeing Fly Me to the Moon in theaters.

This week, Chris can finally talk about iPadOS 18, Niléane goes on a quest for great dynamic wallpapers, and Matt brought a tea kettle for some reason. Then they all say nice things about new browsers and Chris has a “visionary” new challenge.

This week, John decides to take the iPad-only travel plunge, and Federico advises on which gaming handhelds to bring on a trip.

Apple Announces New Immersive Video Content for the Vision Pro

By John Voorhees

Source: Apple.

Beginning today, Apple says it will begin releasing a series of films, documentaries, music, sports, travel, and other video content for the Vision Pro.

First up is ‘Hot Air Balloons,’ which will be available beginning at 6 PM Pacific today, and is part of a series dubbed Boundless. That will be followed in August by a new installment of Wild Life, and a new travel series called Elevated in September. Later this year, Apple will release an immersive concert experience with The Weeknd, a scripted short film called Submerged by director Edward Berger, a behind-the-scenes and court-side look at the 2024 NBA All-Star Weekend, and Big-Wave Surfing, part of a new sports series with Red Bull.

According to Tor Myhren, Apple’s vice president of Marketing Communications:

Apple Immersive Video is a groundbreaking leap forward for storytelling, offering Apple Vision Pro users remarkable experiences with an unparalleled sense of realism and immersion. From soaring over volcanoes in Hawaii and surfing huge waves in Tahiti, to enjoying performances by the world’s biggest artists and athletes from all-new perspectives, Apple Immersive Video revolutionizes the way people experience places, stories, sports, and more by making viewers feel like they’re truly there. It’s the next generation of visual storytelling, and we’re excited to bring it to more people around the world.

I’m really looking forward to these new immersive videos. There’s been a real dearth of content produced for the Vision Pro since its release, but with the device available in more countries, it’s great to see new content available for the growing audience.

Chris Lawley’s In-Depth Interview About Smart Script and Math Notes →

Linked By John Voorhees

Smart Script and Math Notes are two of the most notable features coming to iPadOS this fall. Both take advantage of the Apple Pencil and the iPad’s computer power to do a lot of complex work under the hood, which makes taking good-looking notes and working with numbers and equations feel natural.

Chris Lawley, co-host of Comfort Zone, sat down for an exclusive interview with Jenny Chen, an Apple engineering manager for input experiences, and Ty Jordan, an Apple system experiences product manager, to talk about both features in-depth for his YouTube channel. It’s an excellent interview full of little details you may have missed from the WWDC keynote:

When the new iPad Pros were released, I debated whether to buy an Apple Pencil Pro. I’ve never been a heavy user of the Apple Pencil, but I’m glad I bought one in the end. With features like Smart Script and Math Notes added to Quick Notes and the other Pencil features, my use has slowly crept up to the point where I’m now looking to find places where I can do even more with it.

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