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Tim Cook
Source: Apple

Apple is holding its annual iPhone event on Tuesday, the company’s seventh virtual launch in a row due to the ongoing pandemic. The company is expected to introduce new iPhones and updates to its AirPods and Apple Watch, according to analysts.

Apple’s hype-filled fall launches are a signature quirk of the company. They garner worldwide media attention, millions of viewers on YouTube and Apple’s website, and set the stage for a holiday season marketing blitz when Apple’s sales are the highest.

All of Apple’s product segments have been on a tear this year as people continue to work from home. Last quarter, iPhone revenue was up 50% year-over-year, Mac revenue was up 16% year-over-year and iPad revenue was up 12% year-over-year. Its “other products,” business which includes devices like watches and AirPods, was up 40% year-over-year. Apple can keep the momentum going with a fresh slate of new products ahead of the holidays.

Last year, due to Covid, Apple revealed its new watches in September and then followed that event with an October iPhone 12 event. The iPhone 12 introduced an all-new design and 5G.

New iPads and MacBooks Pro laptops are due for an update this fall, too. It’s unclear whether Apple will pack all of its fall launches into one release event or if it will spread them out over multiple streaming events as it did last fall.

Here’s what Apple could launch on Tuesday.

iPhone

iPhone 12 Mini and iPhone 12 Pro Max.
Todd Haselton | CNBC

Apple’s most important product is the iPhone, accounting for half of Apple’s 2020 sales. The company has announced new models every September since 2012, until last year when iPhones were revealed in October.

In 2020, Apple released four iPhone models: a smaller $599 iPhone 12 mini, the $829 iPhone 12, the higher-end $999 iPhone 12 Pro and the $1,2099 iPhone 12 Pro Max. All of the iPhone 12s came with 5G connectivity and a new, more squared-off design.

Expect this year’s lineup to be similar to last year’s with the same screen sizes and prices. Research from TF Securities analyst Ming-Chi Kuo, a leading Apple analyst, suggests the big change this year could be a smaller notch cutout at the top of the iPhone’s screen, which holds the device’s facial recognition cameras. The size of the notch has remained the same since it was introduced in 2017.

The new iPhones could also have bigger batteries and a slightly heavier weight thanks to a new internal-space-saving design, according to Kuo. In previous years, new iPhones have come with camera and processor upgrades, and that’s almost certain to happen this year, according to Kuo.

We don’t know yet what Apple will call the new iPhones. Apple has named some previous devices “S” devices, which signify that they mainly have internal changes, which would fit in with this year’s expectations. That means it could be called the iPhone 12s, or it could be named the iPhone 13 if Apple decides the changes are enough to warrant it. We don’t know yet.

Apple Watch

Apple Watch Series 6 in blue
Todd Haselton | CNBC

Apple has released new Apple Watch models every September since 2016. It’s a key product in Apple’s wearables business, which accounted for 11% of Apple’s 2020 sales.

Last year, Apple introduced the high-end Series 6 and the mid-range Apple Watch SE. This year’s high-end Apple Watch is likely called the Apple Watch Series 7. Kuo predicted last year that the 2021 models would be a “significant form factor design change.”

The design will also include a slight increase in screen size, according to Bloomberg News, which would be equivalent to 16% more pixels on the watch’s display. Bloomberg said Apple will introduce new watch faces to take advantage of the larger screens, including one that would allow a user to see all 24 time zones simultaneously.

Some Apple Watch models may be in short supply due to production issues. Nikkei Asia said this month Apple delayed manufacturing because of assembly challenges. The report also suggested Apple could add blood-pressure sensing this year, but The Wall Street Journal said and Bloomberg have said the feature won’t come this year. Apple declined to comment on Watch production.

In past years, when Apple has had issues producing millions of devices ahead of a launch, it delayed the release date by weeks or months after the launch presentation. In 2017, for example, it announced the iPhone X in September but didn’t ship it until November.

AirPods

A man shows AirPods Pro at an Apple store on East Nanjing Road on October 30, 2019 in Shanghai, China. Apple’s new AirPods Pro with active noise cancellation are on sale on October 30 in China.
Wang Gang | VCG | Getty Images

AirPods are a key component of Apple’s wearables business, which accounted for over $30 billion in annual revenue in 2020, a 25% increase over the year before.

Although the product is growing in importance to Apple, the company hasn’t launched new AirPods since October 2019 when it introduced the higher-end AirPods Pro with a new design and noise canceling. The most recent regular $159 AirPods, without noise canceling, were announced in March 2019.

In a note to investors over the weekend, Kuo said Apple will launch new AirPods 3. He said Apple may continue to sell the current AirPods at a lower price. The re-design will likely make the AirPods look more like AirPods Pro, with a wider case and shorter stems, according to Bloomberg.

iPad

The 5th generation iPad mini
Todd Haselton | CNBC

If Apple announces new iPads, it will emphasize how important the product has become for the company as the Covid-19 pandemic forced people to work and learn from home and driving a boost in computer sales.

In the three quarters reported so far in Apple’s fiscal 2021, the company has reported $23.6 billion of iPads revenue, over a 39% increase from the same period last year.

Apple last updated the iPad Air, a mid-range option, with an edge-to-edge screen in September 2020. Apple’s also updated the chip in its least expensive iPad, a $329 tablet which it simply calls iPad, at the same event. Those are due for a refresh this fall, though it’s unclear if that will happen on Tuesday or at a second event. But the iPad Mini, last refreshed in March 2019, is most overdue for a refresh.

The iPad Mini could be getting a redesign by the end of the year to make it look more like its siblings, according to Bloomberg. The report said it won’t have a home button and will have a more square design like Apple’s iPad Air and Pro. That means it could have a fingerprint reader in the power button like the iPad Air, or Face ID like the iPad Pro.

Everything else

Tim Cook, CEO of Apple, speaks during an Apple Event on April 20th, 2021.
Source: Apple Inc.

This is a product event, so don’t expect any commentary from Tim Cook on recent controversies including its plan to scan iCloud uploads for illegal material, the recent mixed decision in the App Store lawsuit against Epic Games, or thoughts on the company’s decision to delay a return to in-office work until next year.

However, Apple sometimes uses its iPhone launches to highlight non-product projects the company is working on, such as its efforts to become carbon neutral across its supply chain in the next 10 years.

If Apple talks about its climate efforts, expect VP Lisa Jackson to address the audience. Past events also have included musical guests or celebrity appearances.

Apple sometimes releases new services at fall launches, such as Apple One, its bundle of subscription services, which launched last year. But the big update to iOS is announced in June, at the company’s developer conference, and is typically released to everyone in the fall.

There’s another wildcard. Apple’s biggest, fastest MacBook Pro laptop, the 16-inch model, hasn’t been updated since November 2019, and still sports Intel processors even as the company moves to its own chips in laptops and desktops.

However, in the past decade, Apple hasn’t launched new Mac computers at the same event as new iPhones. There may be a separate event in October or November if new Macs are in the fall pipeline.

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Just Eat shares soar 54% after Prosus offers to buy food delivery firm for $4.3 billion

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Just Eat shares soar 54% after Prosus offers to buy food delivery firm for .3 billion

Just Eat Takeaway said it was delisting its shares from the London Stock Exchange due to the “low liquidity and trading volumes” of its shares on the exchange.

Mike Kemp | In Pictures | Getty Images

European food delivery giant Just Eat Takeaway.com is poised to be acquired by Dutch technology investor Prosus in an all-cash deal worth roughly 4.1 billion euros ($4.3 billion).

The offer values Just Eat’s shares at 20.3 euros each, representing a premium of 63% when compared to the firm’s closing price on Friday.

Prosus, which is majority owned by South Africa’s Naspers, already holds a 28% stake in leading food delivery company Delivery Hero.

Shares of Just Eat soared as much as 54% on Monday morning, notching a new 52-week high. The stock price was last seen trading 52.8% higher on the news.

Prosus shares fell 8.3%, tumbling to the bottom of the pan-European Stoxx 600 index, while Delivery Hero rose 5.4%.

“We are very excited for Just Eat Takeaway.com to join the Prosus group and the opportunity to create a European tech champion,” Fabricio Bloisi, CEO of Prosus and Naspers group, said in a statement.

“We believe that combining Prosus’ strong technical and investment capabilities with Just Eat Takeaway.com’s leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders,” Bloisi said.

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Just Eat

The offer comes after a rocky few years for Just Eat. Like many other food delivery companies, the company’s stock price collapsed in the wake of the coronavirus pandemic, which had initially boosted the firms as consumers turned to these platforms during lockdowns.

A stark shift in consumer habits since, however, led to a sharp deceleration in growth rates.

The Dutch multinational delisted from the London Stock Exchange late last year, citing an effort to “reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing.” The move made Amsterdam the firm’s sole trading venue.

In November, Just Eat Takeaway.com said it would sell its GrubHub arm to New York-based online takeout startup Wonder for $650 million — a huge discount compared to the $7.3 billion the firm paid for the U.S. food delivery app.

“Prosus fully supports our strategic plans and its extensive resources will help to further accelerate our investments and growth across food, groceries, fintech and other adjacencies. We are looking forward to an exciting future together,” Jitse Groen, CEO and founder of Just Eat Takeaway.com, said in a statement on Monday.

— CNBC’s Ryan Browne contributed to this report.

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Chinese medical devices are in health systems across U.S., and the government and hospitals are worried

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Chinese medical devices are in health systems across U.S., and the government and hospitals are worried

A popular medical monitor is the latest device produced in China to receive scrutiny for its potential cyber risks.  However, it is not the only health device we should be concerned about. Experts say the proliferation of Chinese health-care devices in the U.S. medical system is a cause for concern across the entire ecosystem. 

The Contec CMS8000 is a popular medical monitor that tracks a patient’s vital signs.  The device tracks electrocardiograms, heart rate, blood oxygen saturation, non-invasive blood pressure, temperature, and respiration rate.  In recent months, the FDA and the Cybersecurity and Infrastructure Security Agency (CISA) both warned about a “backdoor” in the device, an “easy-to-exploit vulnerability that could allow a bad actor to alter its configuration.”  

CISA’s research team described “anomalous network traffic” and the backdoor “allowing the device to download and execute unverified remote files” to an IP address not associated with a medical device manufacturer or medical facility but a third-party university — “highly unusual characteristics” that go against generally accepted practices, “especially for medical devices.”

“When the function is executed, files on the device are forcibly overwritten, preventing the end customer—such as a hospital—from maintaining awareness of what software is running on the device,” CISA wrote.

The warnings says such configuration alteration could lead to, for instance, the monitor saying that a patient’s kidneys are malfunctioning or breathing failing, and that could cause medical staff to administer unneeded remedies that could be harmful. 

The Contec’s vulnerability doesn’t surprise medical and IT experts who have warned for years that medical device security is too lax. 

Hospitals are worried about cyber risks

“This is a huge gap that is about to explode,” said Christopher Kaufman, a business professor at Westcliff University in Irvine, California, who specializes in IT and disruptive technologies, specifically referring to the security gap in many medical devices.

The American Hospital Association, which represents over 5,000 hospitals and clinics in the U.S., agrees. It views the proliferation of Chinese medical devices as a serious threat to the system. 

As for the Contec monitors specifically, the AHA says the problem urgently needs to be addressed. 

“We have to put this at the top of the list for the potential for patient harm; we have to patch before they hack,” said John Riggi, national advisor for cybersecurity and risk for the American Hospital Association.  Riggi also served in FBI counterterrorism roles before joining the AHA. 

CISA reports that no software patch is available to help mitigate this risk, but in its advisory said the government is currently working with Contec. 

Contec, headquartered in Qinhuangdao, China,  did not return a request for comment. 

One of the problems is that it is unknown how many monitors there are in the U.S. 

“We don’t know because of the sheer volume of equipment in hospitals. We speculate there are, conservatively, thousands of these monitors; this is a very critical vulnerability,” Riggi said, adding that Chinese access to the devices can pose strategic, technical, and supply chain risks. 

In the short-term, the FDA advised medical systems and patients to make sure the devices are only running locally or to disable any remote monitoring; or if remote monitoring is the only option, to stop using the device if an alternative is available. The FDA said that to date it is not aware of any cybersecurity incidents, injuries, or deaths related to the vulnerability.

The American Hospital Association has also told its members that until a patch is available, hospitals should make sure the monitor no longer has access to the internet, and is segmented from the rest of the network.

Riggi said the while the Contec monitors are a prime example of what we don’t often consider among health care risk, it extends to a range of medical equipment produced overseas. Cash-strapped U.S. hospitals, he explained, often buy medical devices from China, a country with a history of installing destructive malware inside critical infrastructure in the U.S.  Low-cost equipment buys the Chinese potential access to a trove of American medical information that can be repurposed and aggregated for all sorts of purposes. Riggs says data is often transmitted to China with the stated purpose of monitoring a device’s performance, but little else is known about what happens to the data beyond that. 

Riggi says individuals aren’t at acute medical risk as much as the information being collected and aggregated for repurposing and putting the larger medical system at risk. Still, he points out that, at least theoretically, is can’t be ruled out that prominent Americans with medical devices could be targeted for disruption. 

“When we talk to hospitals,  CEOS are surprised, they had no idea about the dangers of these devices, so we are helping them understand.  The question for government is how to incentivize domestic production, away from overseas,”  Riggi said. 

Chinese data collection on Americans

The Contec warning is similar at a general level to TikTok, DeepSeek, TP-Link routers, and other devices and technology from China that the U.S. government says are collecting data on Americans. “And that is all I need to hear in deciding whether to buy medical devices from China,” Riggi said. 

Aras Nazarovas, an information security researcher at Cybernews, agrees that the CISA threat raises serious issues that need to be addressed. 

“We have a lot to fear,” Nazarovas said. Medical devices, like the Contec CMS8000, often have access to highly sensitive patient data and are directly connected to life-saving functions.  Nazarovas says that when the devices are poorly defended, they become easy prey for hackers who can manipulate the displayed data, alter vital settings, or disable the device completely.  

“In some cases, these devices are so poorly protected that attackers can gain remote access and change how the device operates without the hospital or patients ever knowing,” Nazarovas said. 

The consequences of the Contec vulnerability and vulnerabilities in an array of Chinese-made medical devices could easily be life-threatening.  

“Imagine a patient monitor that stops alerting doctors to a drop in a patient’s heart rate or sends incorrect readings, leading to a delayed or wrong diagnosis,” Nazarovas said. In the case of the Contec CMS8000, and Epsimed MN-120 (a different brand name for the same tech), warning from the government, these devices were configured to allow remote code execution by the remote server.  

“This functionality can be used as an entry point into the hospital’s network,” Nazarovas said, leading to patient danger.  

More hospitals and clinics are paying attention. Bartlett Regional Hospital in Juneau, Alaska, does not use the Contec monitors but is always looking for risks. “Regular monitoring is critical as the risk of cybersecurity attacks on hospitals continues to increase,” says Erin Hardin, a spokeswoman for Bartlett.  

However, regular monitoring may not be enough as long as devices are made with poor security. 

Potentially making matters worse, Kaufman says, is that the Department of Government Efficiency is hollowing out departments in charge of safeguarding such devices. According to the Associated Press, many of the recent layoffs at the FDA are employees who review the safety of medical devices. 

Kaufman laments the likely lack of government supervision on what is already, he says, a loosely regulated industry. A U.S. Government Accountability Office report as of January 2022, indicated that 53% of connected medical devices and other Internet of Things devices in hospitals had known critical vulnerabilities. He says the problem has only gotten worse since then. “I’m not sure what is going to be left running these agencies,” Kaufman said.

“Medical device issues are widespread and have been known for some time now,” said Silas Cutler, principal security researcher at medical data company Censys. “The reality is that the consequences can be dire – and even deadly. While high-profile individuals are at heightened risk, the most impacted are going to be the hospital systems themselves, with cascading effects on everyday patients.”  

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Substack boosts video capabilities amid potential TikTok ban

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Substack boosts video capabilities amid potential TikTok ban

Rafael Henrique | SOPA Images | AP

After posting almost 200 videos, amassing hundreds of thousands of followers and racking up millions of views, Carla Lalli Music is quitting YouTube. Substack is her new focus. 

Music is a cookbook author and food content creator, and she is shifting her focus to Substack, a subscription platform that lets creators charge users subscriptions for access to their content. Music told CNBC she came to that decision after earning more in one year of using Substack, nearly $200,000 in revenue, than she did by posting videos on YouTube since 2021. 

Music is the exact kind of content creator that Substack is trying to lure to its platform as TikTok’s future in the U.S. remains in limbo. 

San Francisco-based Substack launched in 2017 as a tool for newsletter writers to charge readers a monthly fee to read their content. The platform allows creators to connect to their followers directly without having to navigate algorithmic models that control when their content is shown, as is the case on TikTok, Google’s YouTube and other social platforms. Substack has raised about $100 million, most recently at a post-money valuation of more than $650 million, the company told CNBC.

This year, Substack has broadened its focus beyond newsletters, and on Thursday, it announced that creators can now post video content directly through the Substack app and monetize these videos.

“There’s going to be a world of people who are much more focused on videos,” Substack Co-founder Hamish McKenzie told CNBC. “That is a huge world that Substack is only starting to penetrate.”

Substack began this push after the social media landscape was thrown into flux as a result of the effective ban of TikTok in January that caused the popular Chinese-owned service to go offline for a few hours. TikTok was also removed from Apple and Google’s app stores for nearly a month. 

The disruption to TikTok in January happened as a result of a law signed by former President Joe Biden to force a sale of the Chinese-owned app or have it effectively banned in the U.S. On his first day in office, President Donald Trump signed an executive order extending TikTok’s ability to operate in the U.S., but that order expires on April 5. 

Days after TikTok went offline, Substack launched a $20 million fund to court creators to its platform.

“If TikTok gets banned for political reasons, there’s nothing to do with the work you’ve done, but it really affects your life,” McKenzie said. “The only and surefire guard against that is if you don’t place your audience in the hands of some other volatile system who doesn’t care about what happens to your livelihood.”

Moving beyond newsletters

McKenzie says that they are going after creators on competing social media platforms to start sharing their video content on Substack.

“Video-first creators, people who are mobile oriented, there’s a whole lot of new possibility waiting to be unlocked once they meet this model in the right place,” McKenzie said. 

Already, Substack has more than 4 million paid subscriptions with over 50,000 creators who make money on the platform, the company said. Substack says that 82% of its top 250 revenue-generating creators have already integrated audio or video into their content, reflecting a growing emphasis on multimedia content.

Prior to the video announcements, Substack allowed creators to post videos on the app to Notes, which is the platform’s front-facing feed format. But the feature did not allow creators to publish video content behind Substack’s paywalls. 

The update enables creators to put video content behind a paywall and it provides data on estimated revenue impact. It also allows them to track viewership and new subscribers.

Carla Lalli Music is a cookbook writer and food creator.

Carla Lalli Music

Our base case for TikTok is that it gets banned in the U.S.: Lead Edge Capital's Mitchell Green

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