Where media and analysts could hold and try out the iPhone 15 on Tuesday after it was announced.
CNBC/Kif Leswing
Apple announced its new iPhones for 2023 on Tuesday at its headquarters in Cupertino, California.
This year’s models are called the iPhone 15. There are four new models, ranging from the entry-level iPhone 15 at $799 to the iPhone 15 Pro Max, which costs at least $1199.
I was able to hold and test out the new devices on Tuesday, and although most of this year’s improvements aren’t immediately noticeable to the untrained eye, there was one aspect of the new devices that made me go “wow.”
The new Pro devices are significantly lighter, thanks to their new bodies, which replaced steel with titanium. The moment I picked one up, I could immediately can tell that it’s way easier to hold and won’t weigh down my pockets as much.
It feels a lot lighter.
CNBC/Kif Leswing
In fact, I think the reduced weight is so significant that people with last year’s Pro phones — like me — should consider updating. After all, people hold their phones for hours a day. Even shaving off a little bit of weight makes it a much more pleasant experience.
Apple says that the 6-inch iPhone 15 Pro is 187 grams, or 9% lighter than last year’s model. The iPhone 15 Pro Max, with a bigger 6.7-inch screen, weighs 8% less.
Apple’s titanium is clearly titanium, but most people will put it in a case, and it is a fingerprint magnet.
CNBC/Kif Leswing
In the 2001 comedy “Zoolander,” one memorable gag spoofed cell phones by implying that they would get smaller and smaller until they were a tiny speck.
The iPhone and the rise of smartphones changed that, as people wanted bigger, brighter screens and longer battery life, and were willing to trade size and weight for a more useful device.
In fact, Apple’s “pro”-level iPhone with a 6-inch screen has been getting heavier every year since 2019, despite no major changes in the phone’s general shape. The light-and-small “mini” iPhones, introduced in 2020, haven’t been a success in terms of sales, and haven’t gotten an update in two years.
But the trend towards brick-like smartphones has firmly shifted this year with the iPhone 15. I don’t care for the very biggest Pro Max phones, even though they have bigger screens and more battery life, simply because they are so large and heavy. But this year’s model, with the lighter titanium body, was much more manageable from a heft perspective, and some people who had previously written off the most expensive devices may find themselves taking another look.
The weight is such a big deal that I think that some people will upgrade simply for the lighter weight. I’m considering it, even though $999 (or more, if you need more than 128GB of storage) for an iPhone 15 Pro is a lot of money, especially if you have a phone that works just fine — but at the very least, my pinky finger, which holds up my phone when I’m using it, will appreciate it.
Other notes from the iPhone 15 hands-on
The new Apple iPhone 15, with EU ordered USB-C charger, is displayed amongst other new products during a launch event at Apple Park in Cupertino, California, on September 12, 2023.
Nic Coury | AFP | Getty Images
This year’s colors don’t really pop. In particular, the titanium colors on the iPhone 15 Pros aren’t very bright and appear at a distance to look like shades of gunmetal.
Apple isn’t making leather and silicone cases anymore. They’ve been replaced by a new woven material case, which doesn’t really stand out. From a distance, it looks a lot like last year’s silicone.
The mainstream iPhone 15, which comes in two sizes, hasn’t changed that much on the outside from last year’s model. However, the bezels around the front have been smoothed, which is a nice touch.
The iPhone 15 gets the Dynamic Island, a feature that can show updating information at the top of the phone, where the front-facing camera is hidden.
CNBC/Kif Leswing
The entry-level iPhone 15 models also have the “Dynamic Island,” a software feature that hides the phone’s front-facing camera under the screen.
The iPhone 15 Pro Max did get a $100 price increase, now starting at $1,199 in the U.S., although you get more storage at the entry level.
CNBC/Kif Leswing
The button that has replaced the mute switch on the Pro phones has a very fun animation when you hold it down. I suspect most people will customize it to pull up the camera app quickly.
CNBC/Kif Leswing
USB-C is the default port on all the devices this year, and it’s glorious. Finally, someone with a Mac, iPhone, and wireless headphones will be able to charge them all with the same charger. People with Android phones will be able to borrow chargers from iPhone users and vice versa, and finding a way to juice up will just get a little bit easier for iPhone users.
Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.
There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.
It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”
Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.
More than ever, Microsoft counts on relationships with other companies to grow.
It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.
Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.
Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.
Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.
OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.
Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”
“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.
Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.
“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”
President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.
Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.
“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”
Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.
“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.
Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.
Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.
“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”
Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.
“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.
Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.
JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.
“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”
Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.
“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.
AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.
Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.
“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.
The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid.
“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.
AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.
Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.