Apple CEO Tim Cook greets customers purchasing Apple’s new iPhone 15 during a launch event at the Fifth Avenue Apple Store in New York City on Sept. 22, 2023.
Alexi Rosenfeld | Getty Images
Apple said on Saturday that it will issue a software update that would address customer complaints about the latest iPhone 15 models, released just over a week ago, running hot.
Apple said that the new iPhone models were running hot because of a combination of bugs in iOS 17, bugs in apps, and a temporary set-up period.
An Apple spokesperson told CNBC:
“We have identified a few conditions which can cause iPhone to run warmer than expected. The device may feel warmer during the first few days after setting up or restoring the device because of increased background activity. We have also found a bug in iOS 17 that is impacting some users and will be addressed in a software update. Another issue involves some recent updates to third-party apps that are causing them to overload the system. We’re working with these app developers on fixes that are in the process of rolling out.”
After Apple released the new iPhone 15 models earlier this month, user complaints on Apple’s forums, Reddit, and social media suggest that all four models can get hotter than expected during use. CNBC’s review of the new iPhone Pros also noted the iPhone 15 Pro Max got hot.
“I just got the iPhone 15 Pro today and it’s so hot i can’t even hold it for very long!” wrote one commenter on Apple’s forums.
Apple’s new high-end models, the $999 iPhone 15 Pro and $1,199 iPhone 15 Pro Max have a redesigned titanium enclosure with an aluminum frame to make them easier to repair. The problem with the new models overheating was not related to the titanium chassis design, Apple said.
Instead, Apple points to bugs with specific apps and a bug in iOS that can be fixed with software updates. Apple said that a forthcoming iOS 17 update to address the issue won’t reduce the performance of the devices.
Apple’s website says that users may notice phones feeling warmer when they’re set up from a backup, when they’re wirelessly charging, using graphics-heavy apps or games, or streaming high-quality video. Apple says that it’s normal for devices to be warm when they’re being heavily used, and if iPhones don’t display a temperature warning, they’re safe to use.
Still long lines
People wait in line to enter an Apple Store in New York, as the iPhone 15 is introduced, September 22, 2023.
Scott Mlyn | CNBC
So far, the new iPhones appear to be selling well, with ship times for the devices sometimes stretching out for weeks, and long lines appearing in front of Apple stores on launch day.
“Interestingly, lead times for the 15 Pro Max, 15 Plus and 15 are tracking more elevated relative to their predecessors (e.g., iPhone 14 Series), and the 15 Pro Max is boasting the highest lead time we have seen historically across all SKUs since we have been tracking lead time data,” JPMorgan analysts wrote in a note last week.
But one notable Apple supply chain analyst, Ming-Chi Kuo, said last week in a blog post that the iPhone 15’s heat problem could hurt sales.
Apple has faced high-profile launch issues in the past but they haven’t seriously impacted the company’s long-term outlook.
The iPhone 4, launched in 2010, had a design flaw that could lead to calls being dropped. Apple offered free cases to ameliorate the problem. In 2012, shortly after the launch of the iPhone 5, Apple CEO Tim Cook apologized for Apple Maps being buggy and unreliable. The iPhone 6 released in 2014 was criticized for bending under pressure.
Altimeter Capital CEO Brad Gerstner said Thursday that he’s moving out of the “bomb shelter” with Nvidia and into a position of safety, expecting that the chipmaker is positioned to withstand President Donald Trump’s widespread tariffs.
“The growth and the demand for GPUs is off the charts,” he told CNBC’s “Fast Money Halftime Report,” referring to Nvidia’s graphics processing units that are powering the artificial intelligence boom. He said investors just need to listen to commentary from OpenAI, Google and Elon Musk.
President Trump announced an expansive and aggressive “reciprocal tariff” policy in a ceremony at the White House on Wednesday. The plan established a 10% baseline tariff, though many countries like China, Vietnam and Taiwan are subject to steeper rates. The announcement sent stocks tumbling on Thursday, with the tech-heavy Nasdaq down more than 5%, headed for its worst day since 2022.
The big reason Nvidia may be better positioned to withstand Trump’s tariff hikes is because semiconductors are on the list of exceptions, which Gerstner called a “wise exception” due to the importance of AI.
Nvidia’s business has exploded since the release of OpenAI’s ChatGPT in 2022, and annual revenue has more than doubled in each of the past two fiscal years. After a massive rally, Nvidia’s stock price has dropped by more than 20% this year and was down almost 7% on Thursday.
Gerstner is concerned about the potential of a recession due to the tariffs, but is relatively bullish on Nvidia, and said the “negative impact from tariffs will be much less than in other areas.”
He said it’s key for the U.S. to stay competitive in AI. And while the company’s chips are designed domestically, they’re manufactured in Taiwan “because they can’t be fabricated in the U.S.” Higher tariffs would punish companies like Meta and Microsoft, he said.
“We’re in a global race in AI,” Gerstner said. “We can’t hamper our ability to win that race.”
YouTube on Thursday announced new video creation tools for Shorts, its short-form video feed that competes against TikTok.
The features come at a time when TikTok, which is owned by Chinese company ByteDance, is at risk of an effective ban in the U.S. if it’s not sold to an American owner by April 5.
Among the new tools is an updated video editor that allows creators to make precise adjustments and edits, a feature that automatically syncs video cuts to the beat of a song and AI stickers.
The creator tools will become available later this spring, said YouTube, which is owned by Google.
Along with the new features, YouTube last week said it was changing the way view counts are tabulated on Shorts. Under the new guidelines, Shorts views will count the number of times the video is played or replayed with no minimum watch time requirement.
Previously, views were only counted if a video was played for a certain number of seconds. This new tabulation method is similar to how views are counted on TikTok and Meta’s Reels, and will likely inflate view counts.
“We got this feedback from creators that this is what they wanted. It’s a way for them to better understand when their Shorts have been seen,” YouTube Chief Product Officer Johanna Voolich said in a YouTube video. “It’s useful for creators who post across multiple platforms.”
CEO of Meta and Facebook Mark Zuckerberg, Lauren Sanchez, Amazon founder Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX CEO Elon Musk attend the inauguration ceremony before Donald Trump is sworn in as the 47th U.S. president in the U.S. Capitol Rotunda in Washington, Jan. 20, 2025.
Saul Loeb | Via Reuters
Technology stocks plummeted Thursday after President Donald Trump’s new tariff policies sparked widespread market panic.
Apple led the declines among the so-called “Magnificent Seven” group, dropping nearly 9%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steepest drop since 2020.
Other megacaps also felt the pressure. Meta Platforms and Amazon fell more than 7% each, while Nvidia and Tesla slumped more than 5%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell about 2%.
The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a “declaration of economic independence” for the U.S.
Companies and countries worldwide have already begun responding to the wide-sweeping policy, which included a 34% tariff on China stacked on a previous 20% tax, a 46% duty on Vietnam and a 20% levy on imports from the European Union.
China’s Ministry of Commerce urged the U.S. to “immediately cancel” the unilateral tariff measures and said it would take “resolute counter-measures.”
The tariffs come on the heels of a rough quarter for the tech-heavy Nasdaq and the worst period for the index since 2022. Stocks across the board have come under pressure over concerns of a weakening U.S. economy. The Nasdaq Composite dropped nearly 5% on Thursday, bringing its year-to-date loss to 13%.
Trump applauded some megacap technology companies for investing money into the U.S. during his speech, calling attention to Apple’s plan to spend $500 billion over the next four years.