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Apple lays down the gauntlet to the metaverse

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The new Apple Vision Pro headset will set buyers back $3,499
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Tech giant Apple has unveiled its first major product in more than seven years, a mixed-reality headset that might just deliver a terminal blow to the “metaverse”.

Silicon Valley rival Meta was so confident of it could create the metaverse — an idea of a 3D immersive internet — that it changed its name from Facebook in 2021 and began funnelling billions into the project.

But the idea has been hampered by fluffed launches, dodgy graphics, no clear path to profitability and a general feeling that few people know what it is.

Meta’s Reality Labs, the division helming its metaverse effort, has lost $4 billion so far and company chief Mark Zuckerberg has been increasingly talking up artificial intelligence rather than the metaverse.

During his presentation on Monday, Apple boss Tim Cook introduced the Vision Pro, a sleek headset resembling ski goggles.

It will allow the user to communicate, work, watch movies, listen to music — and even choose whether to be immersed or to keep an eye on the outside world.

Cook pointedly did not mention the metaverse once during the hour-long launch, with Apple promising instead the dawn of an era of “spatial computing”.

“Tim Cook has gone on record as saying that he doesn’t like using the word, he doesn’t think it has any real meaning,” said James Whatley, chief strategy officer at Diva, a marketing agency.

“The faster Meta can move away from that word, the better position they will be in combating Apple’s encroachment into the space.”

– ‘A believable vision’ –

Meta can argue that its product still has advantages over Apple’s newcomer. 

The first and most obvious is the price — Apple’s Vision Pro weighs in at a whopping $3,499, more than double the price of Meta’s top-of-the-range Quest Pro headset.

Tom Ffiske, who runs specialist newsletter the Immersive Wire, pointed out that Apple was clearly pushing a different strategy to Meta.

“Apple is not seeking to build a wide XR (extended reality) ecosystem with a cheaper device, like Meta with the Quest line-up,” he wrote.

“The company instead seeks to monetise an already lucrative subsection of its audience with high-margin subscriptions and software.”

And more broadly, he told AFP that Apple had such high levels of trust “that it legitimises a product category”.

Martin Peers of technology website The Information reckoned Apple had just made Meta look like BlackBerry, the defunct Canadian smartphone maker.

He wrote that Apple had “provided a believable vision of the long-term potential of augmented reality”, a space it was well positioned to dominate at Meta’s expense.

– ‘Real-world experiences’ –

The smooth launch of Apple’s headset, complete with an awestruck video declaring it to be “like magic”, has laid down a clear marker.

Users were shown enjoying “cinematic” movie experiences, scrolling 3D photographs and videos, moving through webpages with just a hand gesture while joining FaceTime calls, and linking up to games consoles.

“Apple has rightly, and in a very traditionally Apple way, rooted it in real-world experiences,” said Whatley.

He contrasted that with Meta’s vision of “making a 3D avatar of yourself with legs that that may or may not exist in a world where there’s nothing to do”. 

Yet analysts were still divided over whether such goggles will ever take off among the wider public.

Google has tried and failed, largely ending its Google Glass experiment this year.

Meta’s Quest headset has failed to break out from specialist users and gamers.

But both Ffiske and Whatley stressed that immersive technology is in its infancy and ultimately there will be enough room for two Silicon Valley giants.

“The Apple announcement will lift all boats in the tide, including Meta,” said Ffiske.

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Five things we learned at the China Auto Show

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The consumer tech giant is the latest entrant to China's cut-throat EV market, with its new SU7 model the star of the show
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One of China’s largest auto shows kicked off in Beijing on Thursday, with electric vehicle makers keen to show off their latest designs and high-tech accessories to consumers in the fiercely competitive market.

Here are the key developments from Auto China’s first day of action:

– Xiaomi –

The consumer tech giant is the latest entrant to China’s cut-throat EV market, with its new SU7 model the star of the show.

Less than one month after its launch, almost 76,000 pre-orders have been placed, Xiaomi said, an accumulation of orders that will take months to deliver given its current production capacity.

Xiaomi boss Lei Jun was swarmed at Auto China on Thursday by legions of loyal fans, eager to follow the entrepreneur’s every move around the convention complex.

– XPeng –

Among car giant Tesla’s main rivals in the Chinese market is XPeng, which announced plans to begin large-scale deployment of AI-assisted driving in its vehicles in May.

“The AI learns the driver’s habits and can then imitate their driving” and enhance security, company boss He Xiaopeng told an audience while presenting the X9, a seven-seater “so spacious it can accommodate five bicycles in its trunk”.

– CATL –

Also present at the show was Chinese battery giant CATL, founded in 2011 in the eastern city of Ningde and now the undisputed global leader in EV batteries.

Its factories produce more than a third of car batteries sold worldwide and are equipped in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.

Responding Thursday to one of the main criticisms of EVs — long charging times that restrict mobility — CATL announced a remedy: “Shenxing Plus”, an ultra-fast battery pack that the firm says earns one kilometre (0.62 miles) in range for every second of charging.

– Nio –

In contrast to much of the EV industry, Chinese automaker Nio focuses on battery-swap technology rather than recharging individual vehicles.

The Shanghai-based firm founded 10 years ago said Thursday it had accumulated nearly 2,500 battery swapping points across China.

Nio also presented its ET7, a sedan model the firm claims has a range of 1,000 kilometres.

– Tencent-Toyota alliance –

Japanese auto-making juggernaut Toyota also announced Thursday that it would join hands with Chinese tech and gaming giant Tencent in AI, a bid to capitalise on local consumers’ increasing appetite for advanced smart car features.

The cooperation will apply to Toyota vehicles sold in China, said Toyota, which like other foreign manufacturers, has struggled to keep up in the ultra-competitive market as the industry shifts to electric.

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US to give Micron $6.1 bn for American chip factories

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US lawmakers have approved billions of dollars to support the onshoring of semiconductor production
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Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, the White House said Thursday.

The award, to be announced by President Joe Biden as he travels to Syracuse, New York, is the latest in a series of efforts by Washington to bring semiconductor production back to the country.

The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence — both on national security grounds and in the face of competition with China.

The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.

The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.

The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.

The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.

Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.

The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.

– Supply chain shocks –

While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now — and “none of the most advanced ones.”

Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”

“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.

She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”

Chips are needed in powering everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.

But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.

The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the Covid-19 pandemic or in the event of a major geopolitical crisis.

“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer. 

“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.

Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.

According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.

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TikTok suspends rewards programme after EU probe

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TikTok Lite arrived in France and Spain in March allowing users aged 18 and over to earn points that can be exchanged for goods
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TikTok on Wednesday announced the suspension of a feature in its spinoff TikTok Lite app in France and Spain that rewards users for watching and liking videos, after the European Union launched a probe.

The popular video-sharing social media platform, owned by Chinese company ByteDance, said the suspension would remain  “while we address the concerns that they have raised”.

The European Commission’s top tech enforcer, Thierry Breton, said the EU investigation would continue, stating: “Our children are not guinea pigs for social media.”

TikTok Lite arrived in France and Spain — the only EU countries where it is available — in March. Users aged 18 and over can earn points to exchange for goods like vouchers or gift cards through the app’s rewards programme.

TikTok Lite is a smaller version of the popular TikTok app, taking up less memory in a smartphone and made to perform over slower internet connections.

The European Commission on Monday announced an investigation into TikTok Lite, and threatened to have the rewards programme suspended, raising concerns about the risk to users’ mental health.

The commission demanded TikTok provide more information by a Wednesday deadline, along with any defence against the threatened suspension.

Breton said in a statement that “our cases against TikTok on the risk of addictiveness of the platform continue”.

“We suspect that this (rewards) feature could generate addiction and that TikTok did not do a diligent risk assessment and take effective mitigation measures prior to its launch,” he said.

The probe is the EU’s second against TikTok under a sweeping new law, the Digital Services Act (DSA), that requires digital firms operating in the 27 nations to effectively police online content.

In February, the commission opened a formal probe into TikTok over alleged violations of its obligations to protect minors online.

– TikTok squeezed –

TikTok is also under pressure across the Atlantic.

A bill to ban TikTok cleared the US Congress after the Senate on Tuesday approved legislation requiring TikTok to be divested from ByteDance.

TikTok’s CEO, Shou Zi Chew, said the company would fight the law — which he said amounted to a ban — in US courts.

The European Commission has refused to comment on the United States’ move. Instead it has focused on the EU’s legal arsenal to bring big tech into line with its rules.

The move against the TikTok Lite rewards scheme was the latest instance of the EU flexing that legal muscle against online platforms.

It is also investigating tech billionaire Elon Musk’s X, the former Twitter, over alleged illegal content.

TikTok Lite users can win rewards if they log in daily for 10 days, if they spend time watching videos (with an upper limit of 60 to 85 minutes per day), and if they undertake certain actions, such as liking videos and following content creators.

TikTok is among 22 “very large” digital platforms, including Amazon, Facebook, Instagram and YouTube, that must comply with stricter rules under the DSA since August last year.

The law gives the EU the power to hit companies with heavy fines as high as six percent of a digital firm’s global annual revenues. Repeat offenders can see their platforms blocked in the EU.

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