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Feds Back Down In Apple iPhone Encryption Case

A federal court hearing over whether the Apple ( AAPL ) must help the government unlock an iPhone in a criminal investigation has been cancelled at the Justice Department’s request. Federal prosecutors had asked to postpone a court hearing scheduled for Tuesday in the U.S. District Court for the Central District of California in Riverside, Calif. They said an outside party on Sunday had demonstrated to the FBI a possible method for unlocking the iPhone in question. “If the method is viable, it should eliminate the need for the assistance from Apple … set forth in the All Writs Act Order in this case,” prosecutors wrote, according to Politico . The Justice Department asked the court for time to test the method of unlocking the phone. On Feb. 16, U.S. Magistrate Sheri Pym ordered Apple to provide “reasonable technical assistance” to the FBI to unlock an iPhone belonging to Syed Farook, one of the two now-deceased killers in the San Bernardino, Calif., shootings on Dec. 2. Apple has protested the ruling, saying that it would create a “back door” to bypass its security protections and thus threaten the personal data of millions of iPhone users. It said the government was overstepping its bounds by ordering Apple to write special software to hack its own smartphones. Earlier Monday at Apple’s spring product launch event, Apple CEO Tim Cook used the occasion to reinforce the company’s argument that it shouldn’t have to weaken its smartphone encryption. “We need to protect your data and your privacy,” Cook said. “This is an issue that affects all of us and we will not shrink from this responsibility.”    

Supreme Court To Hear Samsung Appeal After Nixing Apple Case

This month, the U.S. Supreme Court rejected Apple’s appeal of a case that branded the company anticompetitive. On Monday, the nation’s highest court delivered more bad news to Apple ( AAPL ) by agreeing to hear an appeal by rival Samsung that could end up reducing the damages that it was ordered to pay Apple in a patent infringement case. The Supreme Court on Monday said that it will review a lower court decision from last year that affirmed a jury’s damage award in a case that found that Samsung copied Apple’s patented iPhone designs. Samsung has been ordered to pay Apple $930 million in damages in the case. Part of the damage award is set to be reconsidered by a lower court this spring. The Supreme Court has agreed to hear Samsung’s arguments that the court improperly awarded $399 million — all of Samsung’s profit on phones found to infringe Apple’s designs — in damages to Apple. The Supreme Court is slated hear oral arguments in the case during its next term, which begins in October. In December, Samsung agreed to pay Apple $548 million, though it reserved the right to seek reimbursement if it had success at the high court. On March 7 , the Supreme Court refused to hear Apple’s appeal in a case that found the company orchestrated an illegal e-book price-fixing scheme. Apple was ordered to pay $450 million to e-book purchasers after it was found liable in the civil antitrust case, which was brought by the Justice Department.

Apple Targets Old Foe Microsoft With Smaller iPad Pro

Apple ( AAPL ) took aim at old rival Microsoft ( MSFT ) on Monday as it unveiled a new tablet computer that it believes can be a replacement for millions of older Windows notebook PCs still in use. Most headlines from the spring product launch event focused on the long-awaited new 4-inch iPhone SE. Apple also trotted out new software for iPhones and iPads (iOS 9.3), and new Apple Watch bands. The tech titan cut the starting price for its smartwatch to $299 from $349 as well. Apple investors were not excited by the no-surprise event. Shares flatlined, closing down 1 cent at 105.91 on the stock market today . But Apple sees a big opportunity with its new 9.7-inch display iPad Pro, joining the 12.9-inch model released last fall. Like its big brother, the smaller iPad Pro supports accessories like the Smart Keyboard and Apple Pencil. The addition of plug-in accessories like USB and SD card adapters make it even more of a PC replacement, Apple executives said. Apple began its media event Monday with a short video listing all of the company’s major products throughout its history. Apple will celebrate its 40th anniversary on April 1. So it’s fitting that Apple is taking on Microsoft, its chief rival from the early days of the PC, as it launched its latest iPad. Replace Your Windows Laptop Phil Schiller, Apple’s senior vice president of worldwide marketing, gave two reasons why Apple is coming out with a smaller iPad Pro. First, it will be a compelling upgrade to many people with older iPads, he said. To date, Apple has sold over 200 million iPads with a 9.7-inch display. That size device is optimal for portability and usability, he said. “There’s a second group of people we’d love to reach with this new iPad Pro: Windows users!,” Schiller said, prompting chuckles from attendees at the event. “The majority of people who come to an iPad Pro are coming from a Windows PC, a desktop or a notebook.” Many Windows PC users have not had a good reason to replace their old computers, he said. “There are over 600 million PCs in use today that are over five years old. This is really sad,” Schiller said. “These people could really benefit from an iPad Pro. And when they see the features, performance and capabilities of a product like the iPad Pro designed for our modern digital lifestyle, well, many of them will find it is their ultimate PC replacement.” Microsoft is going after the same notebook PC replacement market with its Surface tablet-notebook convertibles. Microsoft’s flagship Surface Pro 4 starts at $899, but has a 12.3-inch display and at least 128 GB of data storage. Microsoft stock rose 0.7% to 53.86. The new iPad Pro has a 64-bit A9X chip that rivals the performance of most portable PCs, Apple said. It also has a four-speaker audio system, a 12-megapixel rear-facing camera and a 5-megapixel FaceTime camera. It also boasts all-day battery life and support for the latest wireless cellular bands for fast connectivity. The iPad Pro starts at $599 for a 32-GB model. Pre-orders begin Thursday and it will go on sale March 31. The Smart Keyboard costs $149. “We believe that iPad is the perfect expression of the future of personal computing,” Apple CEO Tim Cook said. “We took a giant step in this direction last fall with the introduction of the 12.9-inch iPad Pro. And since then, many people are telling us that the iPad Pro has become their primary computing device.” After introducing the 9.7-inch iPad Pro, Cook said, “It’s time for you to replace that PC laptop.” ‘Aggressive’ iPhone SE Price Also going on sale March 31 is the iPhone SE. The new 4-inch smartphone will replace the two-year-old iPhone 5S. It includes upgraded components including an A9 processor, 12-megapixel camera and NFC technology to enable Apple Pay. The iPhone SE will start at $399 for a 16-gigabyte model. The biggest surprises at the Apple product event involved pricing, including the Apple Watch price cut and “very attractive starting price” for the iPhone SE, Drexel Hamilton analyst Brian White said in a report. The iPhone SE starting price is $50 less than the iPhone 5S it replaces, White said. “We believe this attractive price point for the iPhone SE could help Apple in developing countries, including the iPhone’s expansion in India and in Tier 3-5 cities (80-90% of China’s households) in China,” he wrote. S&P Global Market Intelligence analyst Angelo Zino called the pricing of the iPhone SE “aggressive” and said it could help the company better penetrate emerging markets and attract more Android smartphone users. Most analysts had expected a price of about $500 for the iPhone SE, FBR analyst Christopher Rolland said in a report. The iPhone SE “provides a more inexpensive migration choice for cost-conscious customers,” Rolland said.