Alongside new iPhones and Apple Watches, Apple is releasing a new version of its AirPods Pro this month.
The 2nd Generation AirPods Pro with USB-C — a mouthful of a model name — don’t have any radical hardware changes. Apple replaced the proprietary Lightning port with a USB-C charger to match the rest of its lineup.
But a slew of software features launching alongside the new AirPods significantly change how noise-canceling on the wireless buds works in practice, and will make it much easier for AirPods Pro users to leave their earbuds in all day while navigating cities or talking to co-workers.
Apple has given the new features various names — Adaptive Audio, Conversation Awareness, Personalized Volume — but taken together, and using the default settings on a review unit of the new $249 AirPods, the upshot is that the device uses machine learning and artificial intelligence to turn down music when in a conversation or allow necessary nearby sounds into the headphones.
Instead of taking out your AirPods or turning off noise-canceling entirely when you’re navigating a treacherous street or having a conversation with a co-worker, users can now leave in their AirPods and rely on Apple’s software to intelligently decide what the user needs to hear.
Overall, the improvements are subtle but nice. They’re not a reason to upgrade AirPods if you have an older pair that’s working perfectly, but they are worth reaching for if you are getting new wireless headphones and know you don’t like to be constantly taking them in and out.
However, from a technological perspective, the new AirPods are exciting. Apple is using cutting-edge technology and its own customized chips to filter the world of sound through Apple’s hardware, and to augment or mute individual sounds to make your daily experience better, all powered by AI. Apple’s headphones are going far beyond the simple on-or-off noise-canceling features on competing devices.
The concept is not that far away from the “spatial computing” Apple introduced with the Vision Pro VR headset, which uses machine learning to integrate the real and computer worlds. Apple calls the AirPods a “wearable,” and reports it in the same revenue category as its Apple Watch. With its new adaptive features, the AirPods are more wearable than ever, and continue to be one of the company’s most intriguing product lines in terms of a look at the future of computing, even if they don’t get the same attention as the iPhone.
How it worked
While the adaptive technology isn’t quite seamless yet, it is a nice improvement over the blunter, muffling noise-cancellation setting that used to be the default on AirPods Pro. And it’s not only limited to the latest hardware — anyone with “second generation” AirPods Pro introduced last September can download software updates for their headphones and iPhone to enable them.
The new Adaptive mode ultimately blends chaotic street noise with the artificial quiet of active noise cancellation. Apple frames Adaptive Audio as a safety feature, so users don’t miss honks or disturbances when walking around cities. It’s subtle. You definitely feel like you’re still in a cocoon of quiet, but you don’t feel as if the whole world is muffled around you.
There’s a little chime when users turn it on, either through the Settings app when the earbuds are connected or through a shortcut by long-pressing the iPhone’s volume button in the Control Center.
Screenshot/CNBC
In practice, Adaptive Audio wasn’t perfect, but it’s an improvement over active noise canceling, which can be very isolating, and Apple’s transparency mode, which often amplifies extraneous noise (like the AirPods case clicking against car keys in my pocket). If I were to walk around cities, which I try to avoid for safety reasons, I would use Apple’s Adaptive mode.
But Bay Area BART station announcements made over a central speaker were still muffled, especially when I was listening to music, and that’s the sort of information I would like to hear. I still needed to turn off the headphones or take them out if I wanted to understand what they were saying, such as which train was coming into the station.
When walking in a dog park separated from a highway by a sound wall, Adaptive Audio let in more highway noise than active-cancellation mode, which wasn’t optimal. Later, when another person in the park was arguing about something and making a scene, I didn’t catch it by hearing it in Adaptive mode — I saw the dispute first. While many people use noise-canceling headphones to zone out those kind of disturbances, from a safety perspective, that’s something urban dwellers should be aware of in their vicinity.
Another key scenario for noise-canceling headphones is in the workplace, where workers who are headed back to the office are increasingly using them to try to simulate home office-like privacy or signal to co-workers they can’t talk.
It’s here where the Conversation Awareness feature will shine, allowing office grinders to hold quick conversations without taking out their AirPods. The feature effectively turns down your music or audio when it senses you’re taking part in a conversation. Instead of fumbling in settings to turn noise-canceling off or turn off the music, or taking the earbuds out of your ears, the software does it for you, and even amplifies the conversation a little bit.
When it works, it’s great. I had a couple conversations with my wife with the AirPods in and Conversation Awareness on. We spoke as if I didn’t have $250 of technology in my ears, and when I went back to doing what I was doing before, the volume of my music automatically went back to normal levels.
But there’s one big catch to Conversation Awareness — it doesn’t engage when someone talks to you, it only starts when you open your mouth and say something. So I found myself missing the first thing that was said in several conversations, such as when a neighbor greeted me, or what the cashier said when I approached my favorite taco truck.
At the taco truck, I found myself regretting not taking out the AirPods. I did feel like I missed a little bit of context in the short exchange, and felt rude for keeping in my headphones. I heard and understood the key bits, such as the total price, but I did not feel it was the same real-time conversation as if I was just speaking without headphones.
Also, Conversation Awareness did not turn down my music five minutes later when the cashier called out my order for pickup. Ultimately, my order was wrong too, probably because I was distracted. But it’s easy to see how people will use the feature to order a cold brew without pausing their music.
There are other little quirks, too. I like to sing along to music when I’m alone. With Conversation Awareness on, the music gets turned down, leaving you to hear your own flat singing. Once, when I was working at my computer, I laughed, and the AirPods algorithm thought I was trying to speak. I also never realized how much I mutter to myself when I’m writing.
Personalized Volume uses machine learning to adjust the overall audio level, taking into account your historical preferences — for me, louder than is healthy — and the exterior noise. I only noticed it once, when it turned down the volume after I had jacked it up.
Taking all this into account, the new AirPods features might not be a reason to rush out and get the latest model, but they clearly show that Apple’s headphones are evolving to become something more sophisticated than small speakers.
Meta CEO Mark Zuckerberg appears at the Meta Connect event in Menlo Park, California, Sept. 25, 2024.
David Paul Morris | Bloomberg | Getty Images
Meta CEO Mark Zuckerberg slammed rival tech giant Apple for lackluster innovation efforts and “random rules” in a lengthy podcast interview on Friday.
“On the one hand, [the iPhone has] been great, because now pretty much everyone in the world has a phone, and that’s kind of what enables pretty amazing things,” Zuckerberg said in an episode of the “Joe Rogan Experience.” “But on the other hand … they have used that platform to put in place a lot of rules that I think feel arbitrary and [I] feel like they haven’t really invented anything great in a while. It’s like Steve Jobs invented the iPhone, and now they’re just kind of sitting on it 20 years later.”
Zuckerberg added that he thought iPhone sales were struggling because consumers are taking longer to upgrade their phones because new models aren’t big improvements from prior iterations.
“So how are they making more money as a company? Well, they do it by basically, like, squeezing people, and, like you’re saying, having this 30% tax on developers by getting you to buy more peripherals and things that plug into it,” Zuckerberg said. “You know, they build stuff like Air Pods, which are cool, but they’ve just thoroughly hamstrung the ability for anyone else to build something that can connect to the iPhone in the same way.”
Apple defends itself from pushback from other companies by saying that it doesn’t want to violate consumers’ privacy and security, according to Zuckerberg. But he said that the problem would be solved if Apple fixed its protocol, like building better security and using encryption.
“It’s insecure because you didn’t build any security into it. And then now you’re using that as a justification for why only your product can connect in an easy way,” Zuckerberg said.
Zuckerberg said that if Apple stopped applying its “random rules,” Meta’s profit would double.
He also took shots at Apple’s Vision Pro headset, which had disappointing U.S. sales. Meta sells its own virtual headsets called the Meta Quest.
“I think the Vision Pro is, I think, one of the bigger swings at doing a new thing that they tried in a while,” Zuckerberg said. “And I don’t want to give them too hard of a time on it, because we do a lot of things where the first version isn’t that good, and you want to kind of judge the third version of it. But I mean, the V1, it definitely did not hit it out of the park.”
“I heard it’s really good for watching movies,” he added.
Apple did not immediately respond to a request for comment from CNBC.
Mark Zuckerberg’s announcement this week that Meta would pivot its moderation policies to allow more “free expression” was widely viewed as the company’s latest effort to appease President-elect Donald Trump.
More than any of its Silicon Valley peers, Meta has taken numerous public steps to make amends with Trump since his election victory in November.
That follows a highly contentious four years between the two during Trump’s first term in office, which ended with Facebook — similar to other social media companies — banning Trump from its platform.
As recently as March, Trump was using his preferred nickname of “Zuckerschmuck” when talking about Meta’s CEO and declaring that Facebook was an “enemy of the people.”
With Meta now positioning itself to be a key player in artificial intelligence, Zuckerberg recognizes the need for White House support as his company builds data centers and pursues policies that will allow it to fulfill its lofty ambitions, according to people familiar with the company’s plans who asked not to be named because they weren’t authorized to speak on the matter.
“Even though Facebook is as powerful as it is, it still had to bend the knee to Trump,” said Brian Boland, a former Facebook vice president, who left the company in 2020.
Meta declined to comment for this article.
In Tuesday’s announcement, Zuckerberg said Meta will end third-party fact-checking, remove restrictions on topics such as immigration and gender identity and bring political content back to users’ feeds. Zuckerberg pitched the sweeping policy changes as key to stabilizing Meta’s content-moderation apparatus, which he said had “reached a point where it’s just too many mistakes and too much censorship.”
The policy change was the latest strategic shift Meta has taken to buddy up with Trump and Republicans since Election Day.
A day earlier, Meta announced that UFC CEO Dana White, a longtime Trump friend, is joining the company’s board.
And last week, Meta announced that it was replacing Nick Clegg, its president of global affairs, with Joel Kaplan, who had been the company’s policy vice president. Clegg previously had a career in British politics with the Liberal Democrats party, including as a deputy prime minister, while Kaplan was a White House deputy chief of staff under former President George W. Bush.
Kaplan, who joined Meta in 2011 when it was still known as Facebook, has longstanding ties to the Republican Party and once worked as a law clerk for the late conservative Supreme Court Justice Antonin Scalia. In December, Kaplan posted photos on Facebook of himself with Vice President-elect JD Vance and Trump during their visit to the New York Stock Exchange.
Joel Kaplan, Facebook’s vice president of global policy, on April 17, 2018.
Niall Carson | PA Images | Getty Images
Many Meta employees criticized the policy change internally, with some saying the company is absolving itself of its responsibility to create a safe platform. Current and former employees also expressed concern that marginalized communities could face more online abuse due to the new policy, which is set to take effect over the coming weeks.
Despite the backlash from employees, people familiar with the company’s thinking said Meta is more willing to make these kinds of moves after laying off 21,000 employees, or nearly a quarter of its workforce, in 2022 and 2023.
Those cuts affected much of Meta’s civic integrity and trust and safety teams. The civic integrity group was the closest thing the company had to a white-collar union, with members willing to push back against certain policy decisions, former employees said. Since the job cuts, Zuckerberg faces less friction when making broad policy changes, the people said.
Zuckerberg’s overtures to Trump began in the months leading up to the election.
Following the first assassination attempt on Trump in July, Zuckerberg called the photo of Trump raising his fist with blood running down his face “one of the most badass things I’ve ever seen in my life.”
A month later, Zuckerberg penned a letter to the House Judiciary Committee alleging that the Biden administration had pressured Meta’s teams to censor certain Covid-19 content.
“I believe the government pressure was wrong, and I regret that we were not more outspoken about it,” he wrote.
After Trump’s presidential victory, Zuckerberg joined several other technology executives who visited the president-elect’s Mar-a-Lago resort in Florida. Meta also donated $1 million to Trump’s inaugural fund.
On Friday, Meta revealed to its workforce in a memo obtained by CNBC that it intends to shutter several internal programs related to diversity and inclusion in its hiring process, representing another Trump-friendly move.
The previous day, some details of the company’s new relaxed content-moderation guidelines were published by the news site The Intercept, showing the kind of offensive rhetoric that Meta’s new policy would now allow, including statements such as “Migrants are no better than vomit” and “I bet Jorge’s the one who stole my backpack after track practice today. Immigrants are all thieves.”
Recalibrating for Trump
Zuckerberg, who has been dragged to Washington eight times to testify before congressional committees during the last two administrations, wants to be perceived as someone who can work with Trump and the Republican Party, people familiar with the matter said.
Though Meta’s content-policy updates caught many of its employees and fact-checking partners by surprise, a small group of executives were formulating the plans in the aftermath of the U.S. election results. By New Year’s Day, leadership began planning the public announcements of its policy change, the people said.
Meta typically undergoes major “recalibrations” after prominent U.S. elections, said Katie Harbath, a former Facebook policy director and CEO of tech consulting firm Anchor Change. When the country undergoes a change in power, Meta adjusts its policies to best suit its business and reputational needs based on the political landscape, Harbath said.
“In 2028, they’ll recalibrate again,” she said.
After the 2016 election and Trump’s first victory, for example, Zuckerberg toured the U.S. to meet people in states he hadn’t previously visited. He published a 6,000-word manifesto emphasizing the need for Facebook to build more community.
The social media company faced harsh criticism about fake news and Russian election interference on its platforms after the 2016 election.
Following the 2020 election, during the heart of the pandemic, Meta took a harder stand on Covid-19 content, with a policy executive saying in 2021 that the “amount of COVID-19 vaccine misinformation that violates our policies is too much by our standards.” Those efforts may have appeased the Biden administration, but it drew the ire of Republicans.
Meta is once again reacting to the moment, Harbath said.
“There wasn’t a business risk here in Silicon Valley to be more right-leaning,” Harbath said.
While Trump has offered few specific policy proposals for his second administration, Meta has plenty at stake.
The White House could create more relaxed AI regulations compared with those in the European Union, where Meta says harsh restrictions have resulted in the company not releasing some of its more advanced AI technologies. Meta, like other tech giants, also needs more massive data centers and cutting-edge computer chips to help train and run their advanced AI models.
“There’s a business benefit to having Republicans win, because they are traditionally less regulatory,” Harbath said.
Meta’s CEO Mark Zuckerberg reacts as he testifies during the Senate Judiciary Committee hearing on online child sexual exploitation at the U.S. Capitol in Washington, U.S., January 31, 2024.
Evelyn Hockstein | Reuters
Meta isn’t alone in trying to cozy up to Trump. But the extreme measures the company is taking reflects a particular level of animus expressed by Trump over the years.
Trump has accused Meta of censorship and has expressed resentment over the company’s two-year suspension of his Facebook and Instagram accounts following the Jan. 6 attack on the Capitol.
In July 2024, Trump posted on Truth Social that he intended to “pursue Election Fraudsters at levels never seen before, and they will be sent to prison for long periods of time,” adding “ZUCKERBUCKS, be careful!” Trump reiterated that statement in his book, “Save America,” writing that Zuckerberg plotted against him during the 2020 election and that the Meta CEO would “spend the rest of his life in prison” if it happened again.
Meta spends $14 million annually on providing personal security for Zuckerberg and his family, according to the company’s 2024 proxy statement. As part of that security, the company analyzes any threats or perceived threats against its CEO, according to a person familiar with the matter. Those threats are cataloged, analyzed and dissected by Meta’s multitude of security teams.
After Trump’s comments, Meta’s security teams analyzed how Trump could weaponize the Justice Department and the country’s intelligence agencies against Zuckerberg and what it would cost the company to defend its CEO against a sitting president, said the person, who asked not to be named because of confidentiality.
Meta’s efforts to appease the incoming president bring their own risks.
After Zuckerberg announced the new speech policy Tuesday, Boland, the former executive, was among a number of users who took to Meta’s Threads service to tell their followers that they were quitting Facebook.
“Last post before deleting,” Boland wrote in his post.
Before the post could be seen by any of his Threads followers, Meta’s content moderation system had taken it down, citing cybersecurity reasons.
Boland told CNBC in an interview that he couldn’t help but chuckle at the situation.
“It’s deeply ironic,” Boland said.
— CNBC’s Salvador Rodriguez contributed to this report.
Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.
“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.
Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.
“These two models could face shipping momentum challenges unless their design is modified,” he wrote.
Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.
There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”
Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.
Apple did not immediately respond to CNBC’s request for comment.